HomeMy WebLinkAboutItem #33 - Discussion ItemCITY OF MIAMI, FLORIDA 25
INTER -OFFICE MEMORANDUM
TO: The Honorable Mayor and DATE : 1 2 1999 FILE:
Member of the City Commission SUBJECT:
FEBr GD
Empowerment Zone
FROM. Donal Warshaw REFERENCES: Discussion Item on February 23, 199.9
City Manager City Commission Meeting
ENCLOSURES:
At the February 23, 1999 City Commission meeting, members of the administration will
be presenting a report on the status of the Empowerment Zone. Information will be
provided, which will include the status of the governing board, the funding and the
potential programs to be available under the grant.
DHW/DB/hr
c: Erdal Donmez, Director, Real Estate and Economic Development
4 7.�
CITY OF MIAMI
EMPOWERMENT ZONE PROGRAM
2/22/99
INTRODUCTION
On January 13, 1999, Vice -President Gore announced that our community was one of just
fifteen selected for designation as an urban Empowerment Zone from a competitive pool
of 119 applicants. This determination reflects the strength of the proposal submitted, at
the heart of which was a Strategic Plan that focused on maximizing economic
development opportunities in the Zone.
BACKGROUND
On April 16, 1998, Vice President Gore announced a nationwide competition to designate
15 new urban Empowerment Zones to create jobs and business opportunities for residents
of economically distressed communities. Soon after, the City of Miami began the process
of applying, with Miami -Dade County and the Cities of Homestead and Florida City, for
Empowerment Zone designation. An intensive effort followed as the Strategic Plan —the
application's heart —was prepared. A diverse cross-section of community representatives
took part in this process. Contributing greatly to the strength of the application was the
City Commission's adoption of a resolution on September 8, 1998, to commit $25
million in Section 108 Loan Guarantees for the Empowerment Zone.
Importantly for the City, the Strategic Plan submitted to HUD in October reflected that
the proposed Zone would have the same boundaries as in the 1994 Empowerment Zone
application (see Attachment 1). This area includes parts of Allapattah, Downtown, East
Little Havana, Model City, Overtown and Wynwood (see Attachment 2). Under this
arrangement, 74 percent of Empowerment Zone residents are from the City of Miami.
CURRENTSTATUS
As outlined in the Strategic Plan, the governance structure for the Empowerment Zone
will be an independent non-profit entity to be called the Empowerment Trust. The Trust
will be responsible for allocating the anticipated $93 million in federal funds over the
next ten years.
The Empowerment Trust will be comprised of a Board of Directors and whatever staff
the Board deems necessary for the implementation of the Strategic Plan. The Board will
consist of 31 members. Of these, four will be the Mayors of the participating
municipalities (Miami, Miami -Dade County, Florida City, and Homestead). Eleven
members will be jointly appointed by the Mayors. The remaining 16 members will be
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City of Miami
Empowerment Zone Program, page 2
2122199
Empowerment Zone residents elected by Neighborhood Assemblies made up of
Empowerment Zone residents. Of these 16 members, 10 will be from the City of Miami.
The Mayors will be permanent members of the Trust; the remaining 27 members will
serve three-year staggered terms. As the eleven appointed Directors rotate off the Board,
replacements are to be appointed by the Mayors. As the 16 Empowerment Zone residents
rotate off the Board, replacements are to be elected from the Neighborhood Assemblies.
Two meetings among the four Mayors took place in February for the purposes of
incorporating the Empowerment Trust and selecting an interim President/CEO for the
Trust. At the second meeting, on February I 1 th, 1999, the Mayors approved Articles of
Incorporation (see Attachment 3), which were filed on February 12, 1999, and agreed to
hire Cynthia Curry of CWC & Associates as interim President/CEO.
NEXT ACTION
Several tasks are to be completed in the near future. First, the Mayors of Miami, Miami -
Dade County, Homestead, and Florida City must appoint 11 members to the
Empowerment Trust. The Mayors are also responsible for the organization of
Neighborhood Assemblies within their jurisdictions. Once established, the Assemblies
will elect 16 resident members to the Empowerment Trust. When all 31 Board Members
have been selected, the offices of Chairman, Vice -Chairman, and Secretary/Treasurer will
be filled and By-laws will be adopted.
Other tasks to be completed include the execution of a Memorandum of Agreement
between U.S. HUD and the Empowerment Trust, after which the Trust may draw down
the $3 million allocated by Congress to the Zone for FY 1999. At this point,
implementation of the Strategic Plan can begin to move forward. The search for a
permanent President/CEO may also begin at this time.
BENEFITS
As a result of this designation, our community will benefit from a variety of tax and other
financial incentives, including:
• New tax-exempt bond financing of up to $130 million not subject to state caps or size
limits. This incentive will be an important source of lower interest rate financing for
larger projects.
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Empowerment Zone Program, page 3
2122199
• $3 million in Social Services Block Grant funds during the first year with an anticipated
$10 million annually for years 2-10, pending Congressional approval.
• A new tax deduction for environmental cleanup costs that will allow a business to
deduct the full amount of "qualified environmental cleanup costs" in the year the cost was
incurred. This will help remove one of the obstacles to the redevelopment of
contaminated properties.
• Annual tax incentives for hiring residents from Empowerment Zone neighborhoods of
up to $5,000.
C An increased Section 179 tax deduction (up to an additional $20,000 per year) which
provides for a business deduction for a `qualified zone property' the year it is placed in
service. This incentive applies primarily to the purchase of equipment and will be useful
to small and medium-sized businesses that are in an expansion mode.
• Preference points on many federal grant applications that will improve the City's ability
to obtain additional funds.
CITY PARTICIPATION
The Department of Real Estate and Economic Development (RE&ED) has been
designated as the responsible City department for the Empowerment Zone. One senior
staff member will oversee the City's participation in the Empowerment Zone, and one
professional staff member will be designated to work exclusively on Empowerment
Zone -related issues. RE&ED will be responsible for the coordination of all Neighborhood
Assembly activities within the City of Miami and will serve as a liaison to each
Assembly.
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ATTACHMENT 1
Miami -Dade County
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Federal Empowerment Zone
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ATTACHMENT 3
PnRAZIQN
OF
1' il"g-QA►DE EhMWERMENT TRUSTS INC.
The undersigned hereby associate themselves to form a corporation not.for•profit for IN purpose
Ofctmducting their business and promoting the purposes hereinafter stated, under the provisitm:; of part I
of Chapter 617 of the Florida Statutes, and for these purposes to adopt the following Articles of
Incorporation:
The name of the corporation is Miami -Dade Empowerment Trust, Inc. located at 1 St) S.E. aid Avenue,
Suite 913. Miami, Florida 33131,
1. This not -for -profit corporatlon is organized for the following purposes:
To leverage private, public and non-profit sector funding, commitments and existing initiatives
for the maximum Impact In transforming the Empowerment ial Zone into thriving renters of
economic, socand civic activity.
To oversee and direct the day-to-day administration and implementation of the Empowerment: One
Community One Goal® Creating lobs and Businesses for the Miami -Bade Urban Community
Strategic Plan.
To catalyze economic ,growth through the creation of businesses and jobs in tht. ,�liaml-Dade
Empowerment Zone.
to To create opportunities within the Empowerment Zone for Zone residents prosperity by facilitating access to and from to transition tiom poverty
sustainahle communities. the workplace and fostering the creation of
To foster inclusion of members of our diverse community in the cultural. recreationa I. educational
and economic life of our community through local supportive services.
To enhance the educational attainment of Empowerment Zone residents.
To develop the capacity of Empowerment Zone residents to plan. ,trimplement and manage
att-gic plans for developmcnt in the Empowerment Zone,
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To equip Empowerment Zone residents with the skills necessary to take responsibility for creating
and sustaining change.
To ovemw and dirtwt the dry to day administration and implementation of the Rederul Gntorprlao
Community Strategic Plan as may be requested subject to the mutual agreement of USI 11 D. the State
of Florida, Miami -Dade County, and the cities of Miami, Homestead and Florida City.
2. The Corporation is organized and shall be operated exclusively for purposes for which a corpor ttlon not.
for•ptvfit may be formed under the laws of the State of Florida, the purposes within the meaning orsection
501(cX3) of the Internal Revenue Code of 19S4, as amended (hereinafter the "Code") and the Regulations
themnder, and not for uni ptx ui' profk or financial pin.
3. The Corporation shall have the power, either directly or Indirectly, either alone or in conjunct !on or
cooperation with others, to do any and all lawful activities which may be necessary, useful, suitrtbie,
desirable, or proper for the ftrthenuice, accomplishment, fostering. or attainment of any or all of the
purpose for which the Corporation is organized, and to aid or assist other organizations whose activities are
such as to fbrther, accomplish, foster, ar attain arty of such purposes.
4, Notwithstanding anything herein to the contrary, the Corporation may exercise any and all, but no other,
powers as are In Mrtherance of the exempt purposes of organization set forth in Section 501(c)(3 ) of the
Code and its Regulations as the same now exist, or as they may be hereafter amended from time to time.
Section I. Power. The Corporation shall have the power:
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(a) ,Cu awn, acquire, convey, exchange, lease, mortgage, encumber, transfer upon truss, .or
otherwise dispose of, all property, real or personal. Except that any real property owned.
acquired, conveyed, exchanged, leased or mortgaged by the Miami -Dade Empowerment Trust,
too. shall be located within the boundaries of the Empowerment Zone unless approved by a 2/3
majority of the Regular Members ofthe Board of (Directors;
(b) To contract debts and to secure the payment or performance of its obligations.
(c) To receive and administer (Including the submittal of all required reports) federal, saute ind
local government funding designated for Empowerment Zones and Enterprise Communities.
(d) To receive property by Sits, devise, or bequest; subject to the laws regulating the tram•fer of
property by will or trusts, and otherwise to acquire and hold all property, real or per4r,nal,
Including; shares of stock, bonds and securities of other corporations.
(a) To enter into contracts with any person, rM asaociadon, corporation, municipality, county,
state, nation or other body politic, or with any colony, dependency, or agency of any of the
foregoing.
(t) To conduct any and all fund raising efforts and campaigns deemed necessary, including mail
campaigns, appeals through mass media, distribution of literature and other programs
(g) To hire a President dt CEO to conduct the day-to-day administration and implementation of the
Empowerment: One Community One Goal® Creating Jobs and Businesses for the m iami.Dade
Urban Community Strategic Plan.
(h) To perform every act necessary or proper for the accomplishment of the objects and purposes of
the corporation or for the protection and benefit of the corporation.
Section 2. Limitatiuns of Powers. Notwithstanding any of the powers of this corporation through d.4 Articles
of Incorporation. By -Laws. or the laws of the State of Florida, the following limitations of powt:r, shall
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(a) This Corporation is organized and shall be operated exclusively for the purposes contAned In
Article it of these Articles of Incorporation,
(b) No part of the Income or principal of the Corporation shall inure to the beneftt of or lie
distributed to any member, director. or ofl'tcer of the Corporation, or arr<y other private individual In.
such fashion as to constitute an application of tbnds not within the purpose of exempt tari%nizations
described In Section 501(c) of the Code. However, reimbursement for expenditures shall not be
deemed to be a distribution of income or principal.
(c) In the event of the complete or partial liquidation or dissolution of the Corporation whether
volunury or Involuntary, no member, director, or officer shall be entitled to any distribution or
division of the Corporation's property or Its proceeds, and the balance of All money and other
property received by the Corporation from any source, after the payment of all debts and obligations
of the Corporation, shall be used or distributed subject to the order of the Circuit Court (if' the State
of Florida. as.provided by law, exclusively for the purposes within those hereinabove s4K torah and
within the intent of Section 501(c)t3) of the Code and its Regulations as the same now exists or as
they may be hereafter amended from time to time.
ADVISORY GRO rTc
This not -for -profit corporation shall have four permanent Advisory Groups and As many Ad -hot: .!-Jvisorry
groups as may from time to time be deemed necessary by the Bard of Directors. Advisory Gmups shall.
within their respective areas of responsibility, make recommendations to the Board of Director. which
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recommendations shall be deliberated and voted upon by the Board of Directors. The responsibilities of the
Efour permanent Advisory Groups are set forth below:
K (a) Education Workforce tit Business Partnwshlp: responsible fbr monitoring the commitnwrit of 3,000
jobs and ensuring that Empowerment Zone residents are connected to them;
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(b) Financing, Trade and investment Group: responsible for monitoring the nearly $400 million in
I flnancial and other commitments dedicated to the Miami -Dade Empowerment Zone in thu first two
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years and responsible for monitoring any additional financial commitments over the ten yL%r
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Empowerment Zoic designation period,
(a) Physical Planning and Development Group: responsible for monitoring the coordination with
regional planning orga"tions and public and private development groups that conduct
A development within the Zone and Developable Sites; and
e. (d) Social Services Coordination and Evaluation Group: responsible for monitoring the planning of
social service investments, identification of "best practices" and the performance evaluslion of
organizations fended by the Empowerment Trust, Inc.
Membership in the Advisory Groups shall be open to all Miami -Dade County residents and shell be subject
to any other eligibility criteria which may be delineated in the By -haws.
} ARTICLE V
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'PERM F E=32NCE
This Corporation shall exist perpetually unless sooner dissolved according to law.
AR ICLE !rI
INC MRAT®RS
The names and addresses of the Incorporators of the Corporation are:
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The honorable Alex penelas, Mayor, Miami -Dade County
I I 1 Nanhwnt I" Street, Suite 2910. Miami. FL 33121
The Honomble Joe Carollo, Mayor, City of Miami
3300 pan American Drive. Miami. PL 33133
The Honorable Steve Shiver, Mayor, City of Homestead
790 Homestead Boulevard. Homestead, FL 33030
The Honorable Otis T. Wallace, Mayor, City of Florida City
404 West Palm Avenue, P.O. Box 3001, Florida City, FL 33034
Sectit►n 1. The initial Directors of this Corporation shall be the Incorporators and shall be referred to as
the "Incorporating Board of Directors."
Section 2. After filing these Articles of Incorporation, the Incorporating Board of Directors shall make
eleven joint appointments.
Sectiun 3. 'rhe Incorporators shall organize and/or designate Neighborhood Assemblies within the
Empowerment Zone population areas (Liberty City/Model City, Core Zone and Homestead/Floricla City).
Thereafter. theNeighbmhood Assemblies shall elect sixteen Regular Members of the Empowerment Trust,
Inc. Board of Directors as provided in the By -Laws. The number of Directors may be changed from time to
time in accordance with the By -Laws.
Sectite 4. After the Incorporating Board of Directors has made appointments and organized and/or
designated Neighborhood Assemblies within the Empowerment Zone population areas which have elected
sixtcrn Regular Members of the Empowerment Trust, Inc. Bard of Directors. persons who shall he
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intarestrd in tirthoring the purposes of the Corporation through partw ation 1.
the C"I'Poratien ahall be 91161ble for membership In ACCordAnCe with the terrnS Andprovisions of the By -Laws,
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Section 1.
. The metnb'ers of the Board of Dlcecton shall bl elected or appointed in the manner and h
office'
fm such terns as the B -I,Aws Q� ' Y shAtl provide.
Section 2. The Board of Dirwors shall hold meetings at Such time and
proecriba place as the $y-1,awmay
Section 3. All decisions of the Hoard of Directors shall be made by
'members of the Board present At the rtioeting, unless otherwise r simple majority vote of the
Provided in these Articles of Incorporation or
the By -Laws.
QEFIC
Sectioo i • the affIcers of the Board of Directors of the Miatni-Dade Empowermr
Chair nt irust, I���:, shall be
l�n. Vice -Chairperson and Cltairpenon Elect, Secretary/ Treasurer, and such other otiiccr, or
assiatent offers as may be necessary. No two or more GMces may be held by the same er
p son.
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5eotlon 2. The uflicera shall be elected annually by the Board of Directors at such time and In reach tnt►nnet
xe provided In the By -Laws.
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The afrairs of the Corporation are to be Managed by a President & CEO with such administrative and
clerical gaff as may be necessary. The President and CEO shall have day-to-day authority in operotiona
hUins tiring, and the corporation's Anttttcos.
The By -Laws may be adopted, Amend
ed, Altered, or rescinded by a two-thirds (2!3) t'tu4jority vcae of the
members of the Board of Directors present at any regular meeting of the Directors or at any spacial meeting
of the Directors called for that purpose. Any such adoption, amendment, alteration, or rescission must be
ratified by at least twenty-five (25) percent of the regular members.
Amendments to these Articles of Incorporation may be proposed by any member and must be adapted by a
3/3 majority vote of the regular members.
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WV 40:r0 66-QL-93A
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I, The principal office of this Corporation shall be located at 150 S.E. V Avenue, Suite 913, Miami, Florida
33131. The location may be changed Rent time to time to such place within the State of Florida as the Board
of Directm may deternilnb.
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Z. The Initial Registered Agent of this Corporation shall be Cynthia W. Curry. The Initial Registered
Office shall be 150 S.E. Zae Avenue, Suhe 913, MI&mL Florida 33131.
Section 1. The annual meeting of members of the Board of Directors shall be held at such time and In such
manner as the By -Laws shall provide.
Section Z. The Corporation may provide in its By -Laws for regular meetings and special meetin , of
members, in addition to the annual meeting of members, and for due notice of all meetings of mvmber.s,
Section 31 Fifty-one percent of members shall constitute it quorum for the holding of any meeting of
members.
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WV 40:00 66-tZ-03d
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This Corporation may be dissolved by the Hoard of Directors by two-thirds vote of the members present at a
meeting held for such purposes. Upon the dissolution of the Corporation, the Hoard of Directs shall, after
nuking provisions for the payment of all liabilities of the Corporation, dispose of all the assets or the
Corporation exclusively fir purpose or purpasas not inconsistent with the purposes for which the
Corporation is organized.
IN WITNESS WHEREOF, we, the undersigned subscribing incorporators, have hereunto
set our hands and seals this 12th day of February, 1999, fbr the purpose of forming this Corporation not-for-
proRt under the laws of tits State of Florida.
The Honorable Alex Penelas
Mayor, Miami -Dade County
Incorporator
The Honorable Steve Shiver
Mayor, City of Homestead
Incorporator
onoa—Joe lrnliob a
yor,Cy of M iami
Incorporator
The Honorable Otis f, Waliace
Mayor, City of Florida City
Incorporator
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HaWnS been named in thus Article of Incorporation to accept service of process fbr the within -stated
" Corporation, at the place designate! therein, I hereby agree to act in this capacity and I further 3prce to
comply with the provisions of all statutes relative to the proper and complete peribrMneo of my duties.
Dated this 12th day of February, 1999
k W. Cttt'ry
Reputed Agent
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