HomeMy WebLinkAboutR-98-0636J-98-646
6/23/98
RESOLUTION NO. v v - 636
A RESOLUTION AUTHORIZING AND DIRECTING
THE CITY MANAGER TO PARTICIPATE IN THE
PREPARATION OF THE FEDERAL EMPOWERMENT
ZONE ROUND II APPLICATION WITH MIAMI-DADE
COUNTY ("COUNTY") TO INCLUDE: (1)
ASSIGNING AND/OR HIRING ADDITIONAL STAFF
TO PROVIDE ASSISTANCE TO THE COUNTY IN
CONNECTION WITH THE EMPOWERMENT ZONE
PLANNING AND DESIGNATION PROCESS AND (2)
ENGAGING PROFESSIONAL CONSULTANTS
TO PROVIDE ADDITIONAL SUPPORT; ALLOCATING
COMMUNITY DEVELOPMENT BLOCK GRANT
("CDBG") FUNDS FROM ACCOUNT CODE
NOS. 799302.452323-270, 153001.452160-
270, 799210.459015-270, 799203.459016-
270, 194005.590605-270, 113009.590322-270
and 113009.590321-270 IN AN AMOUNT NOT TO
EXCEED $100,000 FOR PROFESSIONAL
CONSULTANT FEES AND CDBG FUNDS FROM
ACCOUNT CODE NOS. 799302.452423-010 AND
799210.459018-010 IN THE AMOUNT OF
$100,000 TO HIRE ADDITIONAL STAFF,
SUBJECT TO THE COUNTY AGREEING TO CERTAIN
TERMS AND CONDITIONS; AUTHORIZING AND
DIRECTING THE CITY MANAGER TO FORWARD A
COPY OF THIS RESOLUTION TO THE COUNTY
UPON ADOPTION THEREOF AND TO REQUEST THAT
THE BOARD OF COUNTY COMMISSIONERS ADOPT A
RESOLUTION AGREEING TO THE TERMS AND
CONDITIONS SET FORTH HEREIN; FURTHER
AUTHORIZING AND DIRECTING THE CITY
MANAGER TO NEGOTIATE AN INTERLOCAL
AGREEMENT WITH THE COUNTY MANAGER
PREDICATED ON SAID TERMS AND CONDITIONS.
WHEREAS, pursuant to the Taxpayer Relief Act of 1997,
the U.S. Department of Housing and Urban Development ("HUD")
CITY CpMU3Szon
MEETING OF
JUN 2 3 1998
Besolutian No.
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has been authorized to commence a nationwide competitive
process for the designation of an additional fifteen (15)
urban and five (5) rural Empowerment Zones; and
WHEREAS, the proposed second round Empowerment Zones
are expected to be designated before January 1, 1999, and
such designations will remain in effect for 10 years; and
WHEREAS, the proposed Empowerment Zone legislation
offers a number of direct and indirect benefits, including
Ten Million Dollars ($10,000,000.00) in annual Social
Services Grants for the 10-year period; and
WHEREAS, the Empowerment Zone application must be
submitted to the State of Florida on or before September 18,
1998 and to HUD on or before October 9, 1998, resulting in a
very short time frame for its preparation; and
WHEREAS, the City and County intend to prepare a joint
application similar to the application prepared and
submitted for the first round of Empowerment Zone
designations in 1994; and
WHEREAS, the City wishes to empower residents in the
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City of Miami by utilizing a number of benefits provided by
the Empowerment Zone Program;
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 City Manager is hereby authorized
and directed to participate in the preparation of the
Federal Empowerment Zone Round II Application with Miami -
Dade County ("County") by assigning and/or hiring staff and
engaging the services of professional consultants to provide
assistance to the County in connection with the Empowerment
Zone planning and designation process, subject to the
County's agreement with the following terms and conditions:
a. There will be two co-chairs representing the
public sector on the organizational body that has
been established for the designation of the proposed
Empowerment Zone. The City and the County will each
appoint a co-chair.
b. City staff will be members of the Empowerment
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Zone Strategic Planning Team and Technical
Committee, and all other sub -committees or task
forces.
C. The boundaries of the proposed Empowerment
Zone should include at least as many City residents
as in the 1994 application. Specifically, in the
1994 application, seventy-four percent (74%) of the
residents lived in the City.
d. Resource allocations, as reflected in the
Strategic Plan, should be approximately
proportionate to the percentage of City residents
within the Empowerment Zone.
e. Resources must be utilized within the
Empowerment Zone so that the beneficial effects of
programs and initiatives are not diluted.
Specifically, if the $100 million of Health and
Human Services Block Grant funds become available,
then these funds must be appropriated to primarily
benefit Empowerment Zone residents.
f. The City's representation on the Governing
Board of the Empowerment Zone should be in
proportion to the percentage of the area within the
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City of Miami that is included in the overall
Empowerment Zone.
g. The County will commit its discretionary
funds to all areas within the Empowerment Zone, on a
proportional basis.
h. The County will declare the Empowerment Zone
an "Area of Metropolitan Significance" for funding
purposes.
i. The City must review and take action on the
final application package for the designation of the
Empowerment Zone.
Section 3. Community Development Block Grant
("CDBG") funds in an amount not to exceed $100,000.00 for
engaging professional consultant(s) are hereby allocated
from Account Code Nos. 799302.452323-270, 153001.452160-
270, 799210.459015-270, 799203.459016-270, 194005.590605-
270, 113009.590322-270 and 113009.590321-270, and CDBG funds
in the amount of $100,000.00 to hire additional staff are
hereby allocated from Account Code Nos. 799302.452423-010
and 799210.459018-010.
Section 4. The City Manager is hereby authorized
and directed to forward a copy of this Resolution upon
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adoption thereof and to request that the Board of County
Commissioners adopt a resolution agreeing to the terms and
conditions set forth in Section 2 hereof.
Section 5. The City Manager is hereby further
authorized and directed to negotiate an Interlocal Agreement
with the County Manager predicated on the terms and
conditions set forth in Section 2 hereof.
Section 6. This Resolution shall become effective
immediately upon its adoption and signature of the Mayor'
PASSED AND ADOPTED this 23rd day of Sums, 1998.
ATTEST:
JOE CAROLLO, MAYOR
In accordance with Miami Code Sec. 2-36, since the Mayor did not lndir�nte
this legislation by signing it in the designated place pro�iic ,-�d.
becomes effective with the elapse of ten (10) days from the/.c
regarding sate, without the Mayor exercjft a toj
WALTER J. FOEMAN, CITY CLERK Wafter F y Oity Clerk
APPRpTED / RM AND CORRECTNESS
NDRO VILARELLO
ATTORNEY
W2655:csk:LKK
1/ 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.
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CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO Honorable Mayor and Members DATE June 16, 1998 FILE:
of the City Commission
SUBJECT: Empowerment Zone
Application Process
FROM: (ot`HW!rGsheaw REFERENCES : For City Commission
City Manager ENCLOSURES: Meeting of 6/23/98
Resolution
RECOMMENDATION:
The administration recommends the City Commission approve the attached Resolution
directing the City Manager to pursue a joint Empowerment Zone application with Miami -
Dade County under the conditions specified in the resolution that protect the interests of
the City of Miami. Further, the City Manager is directed to assign and/or hire additional
staff to assist this effort and to engage professional consultants to provide additional
support in an amount not to exceed $100,000 for professional consultant fees and $100,000
to hire additional staff.
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. These zones will benefit from a variety of new
tax incentives including: new tax-exempt bond financing of up to $230 million not subject
to state caps or size limits; and an increased Section 179 deduction (up to an additional
$20,000) which allows for a business deduction for qualifying property the year it is placed
in service. The existing federal incentives of welfare -to -work credit, work opportunity
credit, and environmental cleanup cost deduction will also be available to businesses with
the Empowerment Zone. This funding will be allocated over a ten-year period.
At a HUD Empowerment Zone Workshop the following information was provided:
• The Empowerment Zone application is due on October 9, 1998, a significantly
abbreviated time frame.
• Applicants for this new round of Empowerment Zones who already have Enterprise
Community status (the City is a part of the Miami -Dade Enterprise Community) must
be careful about eliminating any Enterprise Community census tracts from the
proposed Empowerment Zone.
• In addition to a maximum of three non-contiguous areas (with a combined population
of no more than 50,000), this new round of Empowerment Zones allows for up to three
additional non-contiguous developable sites (up to 2,000 acres in total).
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On June 5, 1998 a meeting with Ms. Cynthia Curry and Miami -Dade County's
Empowerment Zone Work Group was held. The concerns of the City's elected officials, as
voiced during the Empowerment Zone discussion item at the May 26, 1998 Commission
Meeting, were brought to the table. It was agreed that a joint resolution addressing these
concerns was the best vehicle to employ. The following narrative addresses a number of
relevant issues under consideration.
Conditions for Joint Application
A set of conditions have been formulated that will, if acted upon, protect the interests of
the City of Miami in a joint Empowerment Zone application with Miami -Dade County.
• Boundaries of the proposed Empowerment Zone should, at minimum, include as many
City residents as the 1994 application. Under that application's boundaries, 74 percent
of the residents were from the City of Miami.
• The City must be a major partner in the development of the Strategic Plan — the heart
of the Empowerment Zone application.
• Resource allocation, as reflected in the Strategic Plan, must be proportional to the
percent of City residents within the Empowerment Zone.
• Resources must stay within the Empowerment Zone so that the beneficial effects of
programs and initiatives are not diluted. Specifically, if the $100 million of Health and
Human Services Block Grant (HHSBG) funds becomes available, they must be
structured to benefit Empowerment Zone residents primarily.
• The Empowerment Zone Governance Board should have City designated
representation in proportion to the percentage of City residents within the
Empowerment Zone to insure that implementation will follow the Strategic Plan and
benefit City residents and businesses.
• Request that the County commit its discretionary funds to all areas within the
Empowerment Zone, on a proportional basis.
• Request that the County declare the Empowerment Zone an `Area of Metropolitan
Significance' for funding purposes.
• Review and take action on the final application for the designation of the
Empowerment Zone.
New Focus of Strategic Plan
In 1994, the economic development strategy focused on the two projected `twin engines'
of growth within the County, namely the Seaport and the Airport. In brief, the strategy
envisioned that rapid job growth in international trade related activities would provide
employment opportunities to residents of the Empowerment Zone. While this still should
remain the basis for the current Empowerment Zone's economic development strategy, it
needs to be more inclusive of business and economic development within the distressed
communities of the Empowerment Zone. The economic development strategy for the
Empowerment Zone application needs to be significantly community based. Backward
linkages from the robust growth in the international trade arena to the redevelopment of
City neighborhoods must play a key role.
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In 1994, the Strategic Plan allocated the bulk of the $100 million in HHSBG funds to
activities, primarily through the school system, that did not tie in directly with job creation
and economic development activity. This must be corrected in the current Empowerment
Zone application. The emphasis needs to be on funding activities that directly or indirectly
result in economic development and job creation in our communities in the near to
intermediate time horizon.
City Resoures
• The City will name a loaned executive for the duration of the Empowerment Zone
application process.
• The core of the City's Empowerment Zone Work Team with expertise in planning
business, economic and social development has been mobilized to represent the
interests of the City at all Empowerment Zone meetings and to regularly update the
Administration, the Mayor and the City Commission.
Needed Actions
• Support staff for the City's Empowerment Zone effort from the Departments of
Planning and Development, Community Development, Police, Fire, Public Works,
Information Technology, the Community Redevelopment Agency, and the Downtown
Development Authority, needs to be identified immediately.
• Support staff, perhaps the NET Code Enforcement Officers, needs to be mobilized to
identify and inventory vacant properties and abandoned building in the proposed
Empowerment Zone.
Proposals for Consideration
The City must consider what it can do to enhance the Empowerment Zone application and
leverage the $100 million of HHSBG funds should they become available. Some
preliminary suggestions are as follows:
• An Empowerment Zone Land Bank that would primarily foster economic and business
development needs to be created. Vacant City and County properties within the Zone
need to be made available for redevelopment purposes. This would include abandoned
properties on the List of Lands for which the County holds the tax certificates that are
referenced in the County's Urban Economic Revitalization Plan.
• The City should seriously consider adopting an ordinance that would allow City
businesses, possibly restricted to the Empowerment Zone, to access the property tax
abat;eent Vcentive of the State Enterprise Zone.
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