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HomeMy WebLinkAboutR-96-0804J-96-1 171 10/24/96 9 �O�? — 8 ® 4 RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO SUBMIT AN ECONOMIC DEVELOPMENT INITIATIVE (EDI) GRANT APPLICATION, IN THE AMOUNT OF $450,000, ON BEHALF OF DADE EMPLOYMENT AND ECONOMIC DEVELOPMENT CORPORATION, INC. (DEEDCO), TO U. S. HUD FOR DEEDCO'S COMMERCIAL REVITALIZATION i PROJECT, LOCATED ON 79T" STREET IN THE LITTLE HAITI NEIGHBORHOOD, WITH THE CONDITION THAT DEEDCO HAVE METROPOLITAN DADE COUNTY SUBMIT THE SECTION 108 LOAN GUARANTEE COMPONENT, IN THE - AMOUNT OF $650,000, ON DEEDCO'S BEHALF, TO U. S. ! HUD, FOR SAID PROJECT; AUTHORIZING THE CITY MANAGER TO EXECUTE THE NECESSARY DOCUMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, FOR THIS PURPOSE, j i BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Manager is hereby authorized to submit an Economic Development Initiative (EDI) Grant application, in the amount of $450,000, on behalf of Dade Employment and Economic Development Corporation, Inc. (DEEDCO), to U.S. HUD ' for DEEDCO's commercial revitalization project, located on 79`h Street in the Little Haiti neighborhhod, with the condition that DEEDCO have Metropolitan Dade County submit the Section 108 Loan Guarantee component, in the amount of $650,000, on DEEDCO's C behalf, to U.S. HUD for said project. E f { {i 1 i i i i r Section 2. The City Manager is further authorized to execute the necessary documents, in a form acceptable to the City Attorney', for this purpose. Section 3. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 24th day of October, 1996, 0E CAROLLO, MAYOR ATTEST: 4ALTER T FO N CITY CLERK PREPARED AND APPROVED BY: ' k? RAKkLl- : DIAZ DEPUTY CITY ATT /RNEY i APPROVED AS TO FORM AND CORRECTNESS: i' A. 1pIN S, III CITY ATT EY W1203:CSK The herein authorization is fuirther subject to compliance with all requirements that may be imposed by the City Attorney, including but not limited to those prescribed by applicable City Charter and Code provisions. i i 2- 96.m804 w t� CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM Honorable Mayor and Members October 24, 1996 TO of the City Coma} Atoll DATE: FILE i , ! SUBJECT: Pocket Item VtX1fc FROM: �d'�Will Gy)ort REFERENCES: Vice7ayor ENCLOSURES: ' Attached please find a copy of a letter that was sent to my office by Ms. Bernice Butler, Executive Director of the Dade Employment and Economic Development Corporation, Inc. (DEEDCO). I would like to bring this matter up as a pocket item at the October 24, 1996, City Commission meeting. i DEEDCO is requesting the City's support for an Economic Development Initiative (EDI) Grant ($450,000) to U.S. HUD, with the proviso that DEEDCO obtain support and approval of the required Section 108 Loan Guarantee ($650,000) from Metropolitan Dade County. I would ask the City Administration to please provide the Commission with their recommendation on this issue. Thank you for your cooperation. WG/kk DATAJDEDCO•PI I cc: Merrett Stierheim, Interim City Manager 'f A. Quinn Jones, City Attorney Walter Foeman, City Clerk I i _I t i i 96- `04 C�,DE 2VPLOY'.tE,IT � 5C' lAlc� DrTIFZP a ..., IC; �51* !-LEE"o Y!li'C7 i OFF,CkR$ i UL.'E M. J!!LL!AY5 - Chiirpr,::.n October 17, 1996 PaTPICIA ALC '7= ti '. co•Cna rc?rsan GOMM. HEI.iN L MIJ.F•R 55c:ra:yy vice Mayor Wilfredo Gort City of Miami Par dm9n!drlin Dear Vice Mayor Gott, r't5vv): •Erar,:u7 Please find attached a fax front ,ong!,ess'nrornan Carrie Meek encouraging submission of the .CG.anorn;c Deyebgment in.lative grant application by the City of Miami on behalf of DEEDCO's 79Fh Street commercial revitalization project. As well, you will also find ,+cMOCAS attached a project summary sheet for the 70th Street endeavor, We will be calling GCAUrHr 3nKF;I1 later this afternoon to schedule a meeting with you to discuss putting approval of the il-ArL pF ANCE._.rrlwU A.71GE19 ;:IAA Economic Development lnitiaL�e grans; portion of the project on the agenda l "pocket SoAN.;CNZ3 item" for the October 24th Commission Meeting. I i JOAN PATHEIJ,A i YP,G > AYN Thank you for any assistance that you m?y be able to provide, CAESAR PI111.1 IPS 11054.YF! FJPA,1?M,3 REV. JAMES `irISH i Sipcrely, ©ERtdICE a. [3UTLF.A CXuCUIIV2 GivJc:g( Bernice Butler t= executive Director 1 { <i ' + i { ) i i i f } 96- 804 Bayside Officer Center • 141 N E, Third At,e. • Suite 591) . naram,, FL 331 - Tnl., ., Lin,. .. f•7ne, r. -�-� n.Prl1„ _ - ,•TAr, r--r nnnn r:AHfil� P. MEEK Plnoe Respond To: l�rlCurncr,Fo�o� i, ,• y�. AGICA.Mq. wr.,w► QFrM Sv04jn coMMVrTr-s ONC WA3H!Nt)rofi OC 206'5 BU 6nGT \ tna11s5-%O0 12:21 22A" 177 tax t;t7!nMl'REE OV GOVERNMENT REFoRm 2! Wr..6r F.1.4w $7(,FET �,�Atin,r a1�a4rI2�Ir,Nr t � Cea of j� ' �1tY? , r� r� 37t i9' C , "a sVcna�.im''e ]f� �+yc * ,y 9G51 ray-a�i1 NATONAIECUNWAI:GflOW7il, One 0( 133%cp aelltatibr5 i3()51381•i�'BFAX NATURAL REGOUPCV:5, AN- REGVLArOAY AFFAIRS POSTAL SiRVICF t'C dsijingtoq, " �15-4 t7 October 17, 1996 Mr. Merret Stieeheim Interim City Manager, City of Miami 3500 Panamerican Drive Miami, FL 33133 Dear Mr. Stierheirn; I write in strong ;LIpport Of the 79th Street commercial revitalization project initiated by DEEDCO for the Little Haiti area brty/p.en N,E. 1 st and 2nd Avenues, anti I urge the support of the City of Miami for this project, understand that, although the City of N1111ami administration, as well as Mayor Caroilo's offica, aver",halmingly support the project, there is concern over haw the City of Miami's support of this project may affect its debt obligation level given the currant fiscal emergency. DEEDCO is proposing a ioint effort bat-,r/een the Laity of Miami and Metro Dade County and has prepared and submitted the Economic Development Initiative (r=Dl) grant application in conjunction with Mr. E)bart 'v�'aters' department. The FDI grant application requires tllat a Section 108 application for the same project also be submitted, However, DEEDCO is asking %letropolitan Dade County to submit this po( ion of the package in consideration of the City of Miami's current financial status. Thus, the City of Miami can submit the Ebl grant applica.iort on I�EEi7CO's behalf without affecting or increasing its debtor debt obligation level. Should the City of Miami not submit the EDI grant application on DEEDCO';; behalf, it will adversely affect the viability of this project and ultimately tho City of Miami's ability to collect additional tax revenues from a bolstered '79th street comrneryial corridor in the future. This is a window of opportunity/ for the City of Miami to further its redevelopment needs and to build a brighter future in one of its neediest neighborhoods, I strongly urge your support and assistance in this matter. Thank you for your kind ottontion to this important matter. t Sincerely, CARRIE P. MEEK Member of Congress 9 b— 804 na,,t[o pH..^.cvttcD nrfA 1i PROJECT SUNUMARY N, E. 79TH STREET MEDICAL CILENIC/OFFICE BI.,DG. This application cor rDI 5caru its. ti,e ar"�C'unt '%f 5450,000 is tc r:nal�le DEEDC(-, tc develop a 10,00 square foot MZ,Ji..ta! _-li„ic/ot'ice bldg,. t!� be b%ate..J in the 100 - Nock on the north side of N.E. 9th St;cet in a neigh"orn;.od referred to as Little Iiaiti. This application will be co:nplemente:i by :he required submission of tre Section 108 Loan Guarantee request in the amount of S650,000. The clinic «'nuld be located on a 45, 114 - Nuare fj,ct site and have an ;area of 10,000 square feet of •,vhich bet%veen 6,000 at:d 4,CC0 %= o!.4_ be occupied by Dr. Rudolph tiL� sa; a general practitioner, and the balmcc ��fou!J `%e used foi radiology service provided by University of NUanii)lackson Nfemoriil Hospital dor:tors. The justification for this project is rvotold- the benefit to the locai community cat' the medical services; and, the stimulant a quality facility such as this would provide to ittrther redevelopment in the community. Alt.,ough sotne job creation night result, it is not a significant factor. Dr, Moise currently has a medicai clinic just north of gals Site at 113 NE 34th Street. At 2500 sf, it is overcrowded arid too Si hall to provide. the full range of Services needed in the community and there is no space for UNI's radiology certer, Also, the 79th Street site is a more convenient location for his patients. Al nong the radioio�,-y scr- ices to be provided by the UM site are rnanunograrrs. Current],;;, local residents are being referred to :flare -expensive cadiology departments at hospitals or centers, none of which are conveniently located to the neighborhood. As many residents must rely on public transportation, their distance is a particular problem. Dr. Moise has previously considered build).ng a r,ew clinic but determined that it -was nut financially feasible. Our numbers suggest that :1'e conibinc-d cost of purchasing and clearing the land and constructing the clinic will drive the project cost tip to approximately 51,200,000. Conventional financing with a market interest rate of appromimately 10% results in monthly payments of approximately 58,E?Ors to cover the debt ser�'ice alone, Even without the additional operating costs, the project is untenable. In this scenario, Dr. Moise would also be required to provide approximately $110,000 in equity, a sure that cne would have to seriously consider investing insuch a deteriorated and blighted area. The second scenario assumes a lower rate of 6 percent available through Section luS. The latter also assumes EDI funding in place of the equity required in conventional financing and CDBG funds to purchase the land. Dr. Moise is only willing to commit to leasing the clinic space if the monthly base rent can be kept to approximately 53,000. to $4000 Therefore, keeping the debt service dawn .vith a lower rate and other public incentives is essential to this project. The rnost recent census data shows that ` Uttle Hair is one of the poorest neighborhoods in one of the poorest cities in the nation. This project is vitally needed, r:uscrti,bamiec=791h.doc t2 96- 804