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HomeMy WebLinkAboutR-00-0413J-00-413 5/11/00 RESOLUTION NO. A RESOLUTION OF THE MIAMI CITY COMMISSION AUTHORIZING THE ALLOCATION OF FUNDS IN THE TOTAL AMOUNT OF $300,000 OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS TO PROVIDE ADMINISTRATIVE COSTS TO REESTABLISH A COMMERCIAL LOAN PROGRAM, AS OF MAY 1, 2000, TO STIMULATE BUSINESS DEVELOPMENT AND GROWTH IN THE CITY OF MIAMI, WITH SAID ALLOCATION INCLUDING INDIVIDUAL AWARDS OF $150,000 TO THE LITTLE HAITI CREDIT UNION, SUBJECT TO CERTAIN CONDITIONS, AND THE LATIN CHAMBER OF COMMERCE (CAMACOL) ; AND AUTHORIZING THE CITY MANAGER TO EXECUTE AGREEMENT(S), IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, WITH SAID AGENCIES. WHEREAS, the City Commission terminated its contractual relationship with Miami Capital Development in December 1999; and WHEREAS, the City Commission agreed that there is a need to reestablish a Commercial Loan Program to assist local businesses and stimulate business development and growth in the City; and WHEREAS, the Department of Community Development has developed a restructured Commercial Loan Program; and WHEREAS, the use of Community. Development Block Grant funds complies with all applicable rules, regulations or laws regarding same as approved by the Director of Community Development; CITY COMMISSION MEETING OF MAY 1 1 2000 �--olution No. o f(: u • • NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section. Section 2. The allocation of funds, in the total amount of $300,000, of Community Development Block Grant Funds is hereby authorized to the following agencies to provide administrative support to reestablish a Commercial Loan Program, as of May 1, 2000, to stimulate business development and growth in the City of Miami: AaencX Allocation Latin Chamber of Commerce $150,000 Little Haiti Credit Union 150,000 Total $300,000 Section 3. The herein allocation to the Little Haiti Credit Union shall commence as of July 1, 2000, and shall be subject to further approval by the City Commission. Section 4. The City Manager is hereby authorized" to execute agreement(s), in a form acceptable to the City Attorney, with the Latin Chamber of Commerce and Little Haiti Credit Union. �i The herein authorization is further subject to compliance with all requirements that maybe imposed by the City Attorney, including but not limited to those prescribed by applicable City Charter and Code provisions. jL Page 2 of 3 • PASSED AND ADOPTED this 11th day of ATTEST: • May , 2000. JOE CAROLLO, MAYOR In accordance with Miami Code Sec. 2-36, since the Mzyor did not Indio to approval of this legislation by signing it in the designated place provided, Bald legislaflon now becomes effective with the elapse of ten (10) days rorn the date of Commis n � � Von regarding same, without the Mayo(Aercising a y to. /� WALTER J. FOEMAN CITY CLERK APPROVZ1210 F KA'RMEY ILARELLO O 78:RCL:BSS AND CORRECTNESS J. Fbem4n, If the Mayor does not sign this Resolution, it shall become effective at the end of ten calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission. in .Page 3 of 3 0 0 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO: Honorable Mayor and DATE: MAY - 2 2000 FILE ers of the City Commission SUBJECT: Commercial Loan Program FROM: nal H. Warshaw REFERENCES: City Commission Agenda City Manager May 11, 2000 ENCLOSURES: RECOMMENDATION: It is respectfully recommended that the City Commission adopt the attached Resolution allocating a total of $300,000 of Community Development Block Grant Funds to provide administrative costs to reestablish a Commercial Loan Program to stimulate business development and growth in the City of Miami. BACKGROUND:. Historically, Miami Capital Development, Inc. (MCDI) has operated a Commercial Loan Program to assist local businesses and stimulate economic revitalization in the City of Miami. However, approximately a year ago, the City suspended the lending arm of MCDI and, as a result of an intense monitoring review of the Agency, in December 1999 the City severed its contractual relationship with MCDI. During City Commission deliberations relating to MCDI issues, it was agreed that an effective commercial loan program would be essential to serve as a catalyst to stimulate business growth and development to revitalize the City of Miami and create jobs for its citizens. An effective commercial loan program is an important vehicle to provide assistance to encourage the start-up and or expansion of local businesses. It was further agreed that it would also be critical that the standards of the lending institution reflect sound business standards and careful consideration should be given to any funding commitment made in this respect in the future. The Administration is recommending the reestablishment of a Commercial Loan Program that creates a public/private partnership intended to meet this objective. It is recommended that three (3) entities provide administrative support for the revised program. These entities will be responsible for: • Processing loan applications • Determining eligibility • Development of Business Plans • Provision of Technical Assistance • Preparation of Loan Packages 0- 4139 It is recommended that the three (3) administrative organizations be located in diverse geographical sectors of the City. In the northern area, it is recommended that the Administration negotiate with the Little Haiti Credit Union to provide administrative support. In the southern portion of the City, it is recommended that the Latin Chamber of Commerce (CAMACOL) serve as the administrative entity. The central area of the City would be served by the City of Miami Department of Economic Development and Real Estate. It is further recommended that the Haitian Credit Union 'and CAMACOL receive individual. allocations of $150,000 from program income received from the loan program previously operated by MCDI. _ The Department of Economic Development and Real Estate has already received CDBG funds to promote economic development activities in the City of Miami. In the restructured Commercial Loan Program, the Department of Community Development will be responsible for the full servicing of approved loans. All loan packages will be reviewed and approved by the Community Development Loan Committee and forwarded to the Financial Oversight Board for final approval. It is proposed that the maximum assistance available be limited to $50,000. The commercial loan pool will be provided through a revolving loan fund, with the original loan pool funded through the available balance of funds received through the previously funded MCDI program. Approximately $900,000 is available to begin the restructured program. All loan recipients must meet the national objectives of the CDBG Program. The scope of services for each loan package must specifically quantify the number of jobs to be created or retained as a result of the loan assistance provided by the City of Miami. Failure to satisfactorily address this criterion will result in immediate disapproval of the loan application. The proposed Resolution recommended for approval creates a restructured commercial loan program and allocates $300,000 to cover administrative costs to operate the program. SL JFLJGCW/DF ou- 41.3 PUBLIC NOTICE FOR SPECIAL CITY COMMISSION MEETING REGARDING COMMUNITY DEVELOPMENT ISSUES * ; utap Mito *'°f of ;Cri \�E^COY.FLp4�.r^' The Miami City Commission will hold a Special Meeting to discuss issues relating to Community Development. The Special Meeting will be held: Thursday, May 11, 2000 at 2:00 P.M. City of Miami Commission Chamber 3500 Pan American Drive Miami, Florida 33133 The Agenda for the Special Meeting is as follows: 1. Discussion on Funding History of the City of Miami Community Development Block Grant (CDBG) Program for the 19th — 25`h Program Years 2. Discussion and proposed resolution to revise the Citizen Participation Plan, including the abolishment of the Citywide Advisory Board 3. Discussion and proposed resolution on Planning Calendar for 26h Year CDBG activities 4. Presentation on Orchard Villas Model City Revitalization Project, including proposed legislation to adopt the plan in principle and allocating $100,000 of HOME funds to engage R.J. Heisenbottle Architects, P.A to develop a Master Plan for the area; allocating $1.5 million of 1999 HOME funds and $1.5 million of future 2000 HOME funds to develop affordable housing in the Model City Home Ownership Zone; and supporting the Miami -Dade County application to U.S. HUD for HOPE VI funding to redevelop the Liberty Square and Liberty Homes Public Housing Projects 5. Proposed resolution to modify Housing Loan Committee Membership by eliminating the seat previously held by Miami Capital Development Corporation and replacing it with a representative with private real estate lending experience; expanding the choice of City Departments from which the City Manager can appoint the Administration's representatives; and appointing Frank Rollason, Director, City of Miami Building Department, to fill the vacancy created by the retirement of Jim Kay, former Director of the City of Miami Public Works Department 6. Resolution proposing the reestablishment of a Commercial Loan Program to revitalize commercial corridors in the City of Miami Revitalization Districts; allocating $150,000 of CDBG funds to the Latin Chamber of Commerce to administer the program in the southern portion of the City and $150,000 of CDBG funds to the Little Haiti Credit Union to administer the program in the northern area of the City and designating the City of Miami Department of Real Estate and Economic Development to administer the program in the central area of the City 7. Discussion and proposed resolution to establish a concept for an enhanced Commercial Revitalization Program - 4 13 8. Discussion and proposed resolution to maintain the annual funding commitment of $225,000_ for a five year period to the Little Haiti Job Creation Project to create jobs and stimulate businesses in the Edison Little River area 9. Discussion and proposed resolution allocating $262,322 of HOME funds to the CRA to establish a homebuyer's pre -qualification program in the Southeast Overtown/Community Redevelopment area 10. Discussion and proposed resolution to replace $504,450 of SHIP funds with available HOME funds for related construction expenses for the the Allapattah Business Development Authority to develop the Ralph's Plaza Townhomes - Phase I project 11. Discussion and proposed resolution to deobligate $853,727 of 1996-97 and 1997-98 SHIP funds as follows and to reprogram said amount to fund the City of Miami Single Family rehabilitation and First Time Homebuyers' Financing Programs: Organization and Project Amount BAME Development Corporation of South Florida- New Hope/Overtown $100,000 Housing Project Jubilee Community Development Corporation - Jubilee Villas Housing Project 62,500 Model Housing Corporation - Villas Dr. Godoy Housing Project 62,500 DEEDCO, Inc. - Miami River Village Housing Project 100,000 St. John Community Development Corporation - Lyric Village Housing Project 114,150 Florida Housing Cooperative - Barcelona Place 414,577 Total Deobligation $853,727 12. Discussion and proposed resolution to deobligate $4.75 million of HOME funds allocated to the Urban League and LHL Housing Corporation to develop' the Northwestern Estates Housing Project and reallocating $3.1 from available 1976 General Obligation Housing Bond Program funds to said project for the purpose of resolving the finding identified in the Audit Report issued March 26, 1998 by the Office of the Inspector General 13. Discussion and proposed resolution allocating $3,587,693 of available HOPWA Funds as follows: Organization and Proiect Amount Economic Opportunity Family Health -Center - Long Term Housing $1,742,900 Miami -Dade Housing Agency - Long Term Housing 1,844,793 Total $3,587,693 14. Discussion and proposed resolution restructuring the HOPWA Program 15. Discussion and proposed resolution allocating $50,000 to the accounting firm of Sharpton, Brunson and Company to perform an audit and provide technical assistance on the HOPWA Program 16. Discussion on letter from U.S. HUD citing the City of Miami for not being in compliance with HUD standards in the expenditure of funds in its CDBG Line of Credit balances 17. Discussion and proposed resolution to fund previously authorized legislative commitments approved by the City Commission to the Community Redevelopment Agency (CRA) as follows: Project Authorizing Legislation Amount Historic Overtown Priority Business Corridor Resolution 98-592 $3,000,000 CRA/SEOPW Interlocal Agreement Commitment Ordinance 11736 2,000,000 0`0- 413 • • Proposed funding sources for the above allocations to meet CRA funding commitments: Project Amount Funding Source Historic Overtown Priority Business Corridor $3,000,000 Reprogramming of previously approved funds for CIP Projects CRA/SEOPW Interlocal Agreement Commitment $1,000,000 HOPWA FUNDS CRA/SEOPW Interlocal Agreement Commitment $1,000,000 Reprogramming of previously approved funds for CIP Projects Note: Said reprogramming of previously authorized CDBG funds to come from among the following CIP projects that are not in a position to be completed by September 30, 2000 as determined by the Assistant City Manager for Operations: African Square Park Improvements African Square Park Land Acquisition Allapattah Comstock Park Armbrister Park Building Renovations Athalie Range Park Athalie Range Park Playground Lighting Belafonte Park Improvement Charles Hadley Park Renovations Coconut Grove Minipark Renovation Curtis Park Improvements Dorsey Park Site Improvements Eaton Park Improvements Henderson Park Improvements Replacement Jose Marti Park Lemon City Day Care Park Little Havana Softball Field Merrie Christmas Park Handicap Access Miller Dawkins Park Renovations Moore Park Field Renovations Moore Park Renovations North Bay Vista Playground Reeves Park Riverside Park Playground Shenandoah Park Improvements Target Area Park Improvements Vinick Park Improvements West Buena Vista Park Renovations Williams Park Improvements Allapattah Sidewalk Replacement Coconut Grove Sidewalk Replacement Downtown Sidewalk Replacement Edison Little River Sidewalk Little Havana Sidewalk Replacement Manuel Artime Community Center Model City Sidewalk Replacement Overtown Sidewalk Replacement Tower Theatre Wynwood Sidewalk Replacement The proposed resolution also recommits $1.5 million of CDBG funds to previously approved CIP projects that can be completed by September 30, 3000 in accordance with the prioritization of previously approved CIP projects by the Assistant City Manager responsible for Operations and approval of the Department of Community Development. The proposed resolution also allocates $200,000 to the City of Miami Building Department for demolition activities to be carried out through September 30, 2000, from the reprogramming of previously authorized funds for Capital Improvement Projects 18. Discussion and legislation deobligating $500,000 of previously committed CDBG funds and $500,000 of previously committed HOME funds to the St. John Community Development Corporation for development of the Lyric Village Housing Project 19. Discussion and legislation regarding the Performing Arts/First Source Hiring Agreement Interested individuals are encouraged to attend this Special Meeting. The meeting site is accessible to the handicapped. (AD 0.0- 4.13