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HomeMy WebLinkAboutM-95-0542sr ` WOW i O!"L lab, Aft A A 0"W=P0111 P.O. So�3300�75* oconu�Grov�eFlorl�da=�33-007�5, 05) U6-3095 �6*ax: (305) "6-9932 June 8, 1995 Commissioner Miller Dawkins CITY HALL 3500 Pan Am Drive Miami, Florida 33133 Dear Commissioner Dawkins: Thank you for meeting with our Executive Director, David Alexander, to discuss the economic development initiatives that we are putting forth in the West Grove. We greatly appreciate your efforts to support our economic development programs as outlined in the attached proposal. The initial demonstration area is bounded by Plaza Street to Douglas Road on Grand Avenue. On behalf of our Board of Directors, I am requesting your support for the funding of the following project: Project Amount Small Business Incubator $180,000 3611 Rehabilitation (CDBG) $ 75,000 Total $255,000 As you may know, our application to the Citywide Board was rejected which has incapacitated our projects and plans for the. community. We are counting on your support in this matter. Thanking you, Sincerely, ichard Holton President RH/sk y. 'a !! 4 A Non Profit Corporation for Economic Development ,i1,+� YM COCONUT GROVE MODEL BLOCK PROGRAM -- This program combines and collaborates into one City block on both sides of the Grand _Avenue corridor between Plaza Street and Douglas Road, the redevelopment capabilities of the Coconut Grove Local Development Corporation. Programs include code enforcement, commercial revitalization, commercial facade and CDBG funding combined with private sector loans. As a CHDO, CGLDC is also able toconducta multi -family rehabilitation program on this block. Overview:. In 1990, representatives from the City of Miami's Planning Department, led by Margarita Genova Cordova and Joe McManus, requested that CGLDC formulate a comprehensive revitalization plan to focus on.the area immediately adjacent to the area's major redevelopment project - the Goombay Plaza project. This was, at the: time, the center of t-right and violent crime in t1Ye target area. CGLDC, with the assistance of the Planning Department, conducted a survey of needs for each property on the model block. Properties that were vacant or seriously dilapidated were slated - for acquisition by the CDC for either renovation or demolition . in accordance with condition and habitability. Occupied properties were proposed for renovation and upgrade of the commercial facade. - Ed Wright of Wright Schindler & Assoc. , the original architect hired passed away after completing the design on one building. Neil Hall of The Architects Hall. Inc . , was hired to replace h i m and the project commenced. The result was a comprehensive design theme wh-ich featured design solutions to recurring problems in the area, as follows: * Waist high ceramic tiled exterior walls to combat scuff marks * Removal of iron grills from exterior surfaces Replacement of angled doorways creating niches for trash. and loitering * h interior Extensive use of glass witroll dawn security grills to allow easy viewing and light * Removal of concrete eyebrows and replacement with small canvas awnings * Liberal use of contrasting colors to increase visibility * Upgrade and modernization of signage in the retail areas Code compliance and upgrading for all commercial buildings Development of convenience off street parking facilities to encourage and increase trade Reconstruction of building parapets adding variety and highlighting individual structures * Promote design to generally provide a more user friendly shopping area and soften the way structures are perceived V 5— 542 MODEL BLOCK COCONUT GROVE LOCAL DEVELOPMENT CORPORATION 3659-61 GRAND AVENUE APARTMENTS BUSINESS PLAN NARRATIVE STATEMENT OF PURPOSE: The purpose of this plan is to provide a financial proposal for the rehabilitation of a mixed use building and to request a grant in the amount of $75,000 for the rehabilitation of three stores from CDBG funding. CGLDC is currently applying for CHDO funding in the amount of $145,000 for the residential rehabilitation program. BUSINESS STRUCTURE: CGLDC, is a non-profit 501C(3) community development corporation which is 100% owner of a mixed use building containing five one bedroom apartments and three stores. The building was purchased with a grant from the City of Miami There is no outstanding mortgage on this property. Currently three of the five apartments are tenanted, and one store is vacant. CGLDC is currently receiving rental income of approximately $200.00 per month for each unit. STATEMENT OF NEED: CGLDC has been actively engaged in the redevelopment of this project for one year. The building contains numerous code violations and the CGLDC has had to replace the entire roof upon acquisiton. CGLDC is requesting a CHDO grant for rehab of the apartments which is currently under consideration. PRINCIPALS: The principals are, as follows: a: A thirty-one member Board of Directors, representing a cross section of the businesses and residents concerned with economic and housing development in the Coconut Grove Target Area. b. The Executive Director of the CGLDC, David J. Alexander, who is charged with implementing this project. RATIONALE: This project is the culmination of a process which has identified certain business needs and opportunities relevant to the Grand Avenue business corridor of the target area. Over a three year period, a vacant building has been purchased and interior demolished to provide leasing opportunities for sma11 businesses at reasonable cost in order to attract and expand minority owned business presence in the target area. 95- 542 x+ ' ;r 2 _ "These properties were acquired in support of the Goombay Plaza redevelopment project and one lot will provide access and egress to the Miami Department of Off Street Parking's lot located on Florida Avenue. This will route vehicle traffic into the project from Grand Avenue, in keeping with the promises made to our community. This building contains three stores of approximately 800 sq.ft. each, which require gut rehabilitation and new storefronts designed under the model block architectural program. Construction will require the upgrading of the entire building to comply with current code standards. FINANCING PROPOSAL: CGLDC is requesting a grant in the amount of $75,000, to complete the rehabilitation of this project. TECHNICAL ASSISTANCE: This building contains two existing businesses already receiving technical assistance from the CGLDC. This third business will be relocated from a building to be demolished to make way for the Goombay Plaza redevelopment project. THE FOLLOWING IS A LIST OF EXISTING TENANTS: NAME TYPE OF BUSINESS Commercial: Moss Unisex Hair Design Salon Holsey's Deli Fastfood Restaurant M & M Beauty Box Salon Residential: The following tenants are qualified as very low income: Vacant Apt. #1 Willie Williams Apt. #2 Vacant Apt. #3 Wanda Jones Apt. #4 Jacqueline Barner Apt. #5 542 3 _ The commercial units currently rent for $225-$275.00 per month. The apartments rent for $200--$205.00 per month. Two of the _apartment 'un i is are vacant and w i 11 be rehab i l i tated f i rst i n order to relocated the tenants within the building. The commercial spaces will require the temporary closure of the businesses while construction is in progress BUDGET: i Residential 5 one bedroom apartments @ $25,000 each = $125,000 Parking lot with french drain 20,000 Commercial 3 stores at $25,000 each $ 75,000 Total Project Cost $220,000 Proposed Sources CHDO funds $145,000 CDBG 75,000 Total $220,000 9 5 6 542 Jwj� 'P` MODEL BLOCK COCONUT GROVE LOCAL DEVELOPMENT CORPORATION SMALL BUSINESS INCUBATOR PROJECT BUSINESS PLAN NARRATIVE STATEMENT OF PURPOSE: The purpose of this plan is to provide -a- financial proposal and an operating guide to assist in the. analysis of financial feasibility for the purpose of requesting grant funding -^gin the amount of $180,000 to refinance this project and to underwrite final development and completion of construction. BUSINESS STRUCTURE: CGLDC, is a non-profit 501C(3) community development corporation which is 100% owner of a for profit subsidiary corporation Coconut Grove Ventures Incorporated, the owner of record of the subject commercial property. To date, Coconut Grove Ventures has borrowed $102,000 from MCDI and $92,000 from a private sector Bank. MCDI has subordinated to the Bank's first mortgage. CGLDC has_guaranteed these loans as the parent of Coconut Grove Ventures. STATEMENT OF NEED: CGLDC has been actively engaged in the development of this project for four years. In each year -we have requested City of Miami assistance under the CDBG grant process. The Board of Directors decided to start the project with the belief that refinancing with grant funds would be forthcoming. PRINCIPALS: The principals are, as follows: a. A thirty-one member Board of Directors, representing a cross section of the businesses and residents concerned with economic and housing development in the Coconut Grove Target Area. b.. The Executive Director of the CGLDC, David J. Alexander, who is charged with implementing this project. RATIONALE: This project is the culmination of a process which has identified certain business needs and opportunities relevant to the Grand Avenue business corridor of the target area. over a three year period, a vacant building has been purchased and interior demolished to provide leasing opportunities for small businesses at reasonable cost in order to attract and expand minority owned business presence in the target area. 95- 542 These businesses are typically positioned for immediate expansion of their client base through marketing efforts of the CGLDC to the greater Coconut Grove community. It is envisioned that within three years, these businesses will be capable of entering the market through traditional means serving low/moderate income families in the area. Because of the unique location of the target area, and ongoing commitments through private sector business organizations and the Chamber of Commerce, CGLDC is working to build,a service sector bridge between the minority business community and the majority business communities of the area. The business mix has been carefully evaluated to idLMtify business need categories existing in the current market and to fill these needs through encouragement, assistance and support of the minority businesses. FINANCING PROPOSAL: CGLDC is requesting a grant in the amount of $180,000, to complete the construction and implementation of this project. This grant is an opportunity for the City of Miami to make an - impact through a project which will attract eight new small businesses to this community and create approximately twenty-six jobs for low and moderate income individuals. It will encourage micro enterprise development of minority owned businesses through a community development corporation generally regarded as one of the most productive in the State. TECHNICAL ASSISTANCE: The purpose of the proposed Small Business Development Center project is to provide the opportunity to small minority businesses to work in a small business environment where direct services may be rendered for administrative, business and technical assistance to each center participant. Businesses will be screened- and referred to MCDI and other sources of financing for small business development, The CGLDC has structured its business plan to accommodate a wide range of services to businesses which have been recipients of its on -going technical assistance for a minimum of one year. The project will develop a tandem training program for neighborhood Youth from the ages of 16 to 21 to prepare for employment opportunities presented to the CGLDC from participating businesses. INNOVATION: The project departs from previous business development activities, in that, it provides administrative and technical assistance to white collar.businesses on an on -site facility where businesses can be closely monitored and be given the opportunity to defray operating costs during their business expansion riod. � _ � 4-9 �Ru 441A 3 - MARKET EXPANSION & INTEGRATION: The project also pre -selects up to 10 businesses with the potential to benefit from market expansion and integration into the mainstream Coconut Grove economy which has heretofore operated separately from the adjacent, minority community of the West Grove. The over 3,000 residents of the West Grove is a virtually untapped market, this in addition to the 16,000 residents and 400 businesses in the East Grove which is an ideal expansionary target and which we intend to tap by integrating these small businesses into ;this mainstream. This does not take into consideration the adjacent market of Coral Gables. BUSINESS DEVELOPMENT ASSISTANCE: The development center will offer on -site, aggressive business development to participating businesses for three (3) years, after which these businesses will be replaced with other businesses. This will be done through the use of in-house promotional telephone contact to our 34 affiliated organizations, media and radio advertising and promotion, the circulation of flyers and other promotional material as well as City, County and State solicitation. The CGLDC's on -going business development project will, however, continue to offer technical assistance to neighborhood businesses and relocating businesses. Technical assistance takes the forms of management background assessment, the preparation of business plans, market studies, feasibility studies, financial counselling and advisement, assistance in the establishing professional legal and accounting services. For several years, the CGLDC has been working with private sector businesses in the Coconut Grove/Coral Gables area to formulate and implement a method of providing business opportunities for minorities in the target area. The task was simply to provide reliable services from minority owned businesses, where the CGLDC could act as a liaison and reference. In the case of problems between the businesses, as a mediator. The project commenced July 1993. Currently 8 businesses have signed leases, including: 2 retail businesses, a janitorial and cleaning service, two offices for a construction company. Construction began and the interior has been demolished with funds from the CGLDC budget. The project will raise the matching funds primarily through community contributions, as well as through the organization's annual fundraising events. 95-- 542 4 THE FOLLOWING IS A LIST OF PROSPECTIVE TENANTS: NAME TYPE OF BUSINESS MYOUSHI, INC. Ethnic Calendars ENVIRO-TECH Industrial/Office Cleaners CLEANING RAMMAR UNITED, INC. Copier Sales & Service LANCEWOOD CONSTRUCTION CO. Building Contractors RASTA &'PASTA Public Relations/Marketing MAP & CO., INC. Construction Management PANZEGNA, INC. Retail Clothing ALL ABOUT EYES, TOO Retail Optician 555— 542 5 CGLDC/SBIP PROFORMA BUDGET AMOUNT Sources MCDI Loan $102,500 United National Bank Loan - $ 93,000 CGLDC,Equity/Grants $ 72,340 Commercial Facade $ 12,000 Total' $279,840 Uses: Acquisition $ 90,000 Soft Costs $ 13,000 Hard Costs $153,000 Fixtures $ 24,400 Holding Costs $ 16,340 Reserve $ 29,600 Total $326,340 Use of Proceeds: City of Miami Grant $180,000 Less: UNB Loan Repayment $ 93,000 Total $ 87,000 Less: Cost To Complete $ 86,035 Balance $ 965 95- 54 2 1/ COCONUT GROVE MODEL BLOCK PROGRAM This program combines and collaborates into one City block on both sides of the Grand Avenue corridor between Plaza Street and Douglas Road, the redevelopment capabilities of the Coconut Grove Local Development Corporation. Programs include code enforcement, commercial revitalization, commercial facade and CDBG funding combined with private sector loans. As a CHDO,_CGLDC is also able to conduct a multi -family rehabilitation program opthis block. Overview: I In 19-90, representatives from the City of Miami's Planning Department, led by Margarita Genova Cordova and Joe_ McManus, requested that CGLDC formulate a comprehensive revitalization plan to focus on the area immediately adjacent to the area's major redevelopment project - the Goombay Plaza project. This was, at the time, the center of blight and violent crime in the target area.1. CGLDC, with the assistance of the Planning- Department, conducted a survey of needs for each property on the model block. Properties -that were vacant or seriously dilapidated were slated for acquisition by the CDC for either renovation or demolition in accordance with condition and habitability. Occupied properties were proposed for renovation and upgrade of the commercial facade. Ed Wright of Wright Schindler & Assoc., the original architect hired passed away after completing the design on one building. Neil Hall of The Architects Hall Inc., was hired to replace him and the project commenced. The result was a comprehensive design theme which featured design solutions to recurring problems in the area, as follows: Waist high ceramic tiled exterior walls to combat scuff marks * Removal of iron grills from exterior surfaces * Replacement of angled doorways creating niches for trash and loitering * Extensive use of glass with interior roll down security grills to allow easy viewing and light * Removal of concrete eyebrows and replacement with small _ canvas awnings Liberal use of contrasting colors to increase visibility * Upgrade and modernization of signage in the retail areas * Code compliance and upgrading for all commercial buildings * Development of convenience off street parking facilities to encourage and increase trade * Reconstruction of building parapets adding variety and highlighting individual structures Promote design to generally provide a more user friendly shopping area and soften the way structures are perceived 9-�