HomeMy WebLinkAboutR-95-067311,
J-95-731
9/28/95 9 5_ 673
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
ENTER INTO AN AGREEMENT, IN A FORM ACCEPTABLE
TO THE CITY ATTORNEY, WITH THE COCONUT GROVE
LOCAL DEVELOPMENT CORPORATION ("CGLDC") FOR
THE DEVELOPMENT OF THE GOOMBAY PLAZA PROJECT
WITH FUNDS PARTIALLY PROVIDED BY A $2 MILLION
SECTION 108 LOAN GUARANTEE AND AN ECONOMIC
DEVELOPMENT INITIATIVE GRANT OF $300,000 FROM
THE U.S. DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT ("HUD"); FURTHER AUTHORIZING THE
CITY MANAGER TO EXECUTE AN AGREEMENT, IN A
FORM ACCEPTABLE TO THE CITY ATTORNEY, WITH
GROVITES UNITED TO SURVIVE ("GUTS") TO MODIFY
AND INCREASE THE CITY'S EXISTING FIRST
MORTGAGE POSITION ON THE PROPERTY SITE OF THE
PROPOSED PROJECT, FROM $271,976 TO
$2,271,976, TO REFLECT THE ADDITIONAL $2
MILLION LOAN GUARANTEE FROM HUD; DIRECTING
THE CITY MANAGER TO INSTRUCT THE FINANCE
DIRECTOR TO PERFORM MONTHLY AUDITS AND
MAINTAIN RECORDS ACCORDINGLY CONCERNING THE
USE OF SAID FUNDS BY CGLDC AND GUTS; FURTHER
REQUIRING THAT CGLDC AND GUTS COMPLY WITH ALL
PROCUREMENT REQUIREMENTS AS PRESCRIBED BY
CITY CHARTER AND CODE PROVISIONS.
WHEREAS, the City of Miami ("City") is committed to
assisting Coconut Grove Local Development Corporation ("CGLDC")
and Grovites United to Survive ("GUTS") to develop the Goombay
Plaza project for the benefit of the community; and
WHEREAS, the U.S. Department of Housing and Urban
Development ("HUD") has approved a $2 Million Section 108 Loan
Guarantee for said project; and
CITY COMMISSION
MEETING OF
SEP 2 P 1995
Resolution No.
95- 673
L
WHEREAS, HUD has also approved an Economic Development
Initiative Grant in the amount of $300,000 for the City of Miami
for said project; and
WHEREAS, GUTS is the owner of the property upon which the
project will be developed; and
and
WHEREAS, the City holds a first mortgage on the property;
WHEREAS, GUTS is willing to execute an agreement with the
City to increase the mortgage to reflect the $2 Million loan
guarantee; and
WHEREAS, CGLDC is willing to execute an agreement with the
City for the development of the project;
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!' to
enter into an agreement, in a form acceptable to the City
Attorney, with the Coconut Grove Local Development Corporation
("CGLDC") for the development of the Goombay Plaza Project with
i The herein authorization is further 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.
- 2 -
95- 673
� _1
funds partially provided by a $2 Million Section 108 Loan
Guarantee and an Economic Development Initiative Grant of
$300,000 from the United States Department of Housing and Urban
Development ("HUD").
Section 3. The City Manager is hereby authorized-/ to
execute an agreement, in a form acceptable to the City Attorney,
with Grovites United to Survive ("GUTS"), to modify and increase
the City's existing first mortgage position on the property upon
which the proposed project is to be developed to reflect the
additional $2 Million loan guaranteed by HUD.
Section 4. The City Manager is hereby directed to
instruct the Finance Director to perform monthly audits and
maintain records accordingly concerning the use of said funds by
CGLDC and GUTS.
Section 5. CGLDC and GUTS are hereby required to comply
with all procurement requirements as prescribed by City Charter
and Code provisions.
Section 6. This Resolution shall become effective
immediately upon its adoption.
PASSED AND ADOPTED this 28th day of September 1995.
STEPREN P. CLAR , MAYOR
ATTEST:
CITY CLERK
- 3 -
9.5- 673
PREPARED AND APPROVED BY:
OLGA RAMIREZ-SEI S
ASSISTANT CITY AtTORNEY
APPROVED AS TO FORM AND CORRECTNESS:
A. Q NN 0 S, III
CITY ATT EY
W271:csk:ORS:BSS
- 4 -
95- 6'73
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO Honorable Mayor and DATE SEP - 5 •1995 FILE
Members of the City Commission
SUBJECT : Resolution to Enter into
Agreement with Coconut Grove
Local Development Corporation
FROM : Ce o REFERENCES: and GUTS
City er
ENCLOSURES: City Commission Meeting
S�ntPmhp�1 d_1 A��i
RECOMMENDATION
It Is respectfully recommended that the City Commission approve the attached Resolution
authorizing the City Manager to enter into agreements with the Coconut Grove Local
Development Corporation (CGLDC) and Grovttes United to Survive (GUTS,) for the
development of the Goombay Plaza Project through a Section 108 Loan Guarantee of $2
million, and an Economic Development Initiative (EDI) Grant of $300,000.00 provided to the
City from the U.S. Department of Housing and Urban Development ("HUD.")
BACKGROUND
NET has analyzed the need to enter into agreement with Coconut Grove Local Development
Corporation and Grovites United to Survive for the development of the Goombay Plaza
Project for which the City will be provided with a HUD Section 108 Loan Guarantee and an
EDI grant.
The City's agreement with Coconut Grove Local Development Corporation is for the
purposes of developing the project since the agency will be the developer. The City's
agreement with GUTS will reflect the additional financing of $2 million guaranteed by the HUD
Section 108 to in effect revise the City's current first mortgage position of the GUTS
property, site of the project.
The City's first position mortgage will increase up to $2,272,000.00. Resolution 92-748
reduced the original loan amount to GUTS from $500,000.00 to $271,976.00. The balance
was transferred into a grant.
Approval of the attached Resolution is therefore recommended.
INTER -OFFICE MEMORANDUM
TO : Walter Foeman,
City Clerurbml
FROM
NET
Clerk
da, Director
September 15, 1995
DATE FILE
SUBJECT : Goombay Plaza Section 108
Items 10, 11, and 12 Public Hearing
REFERENCES: September 14, 1995
City Commission Meeting
ENCLOSURES:
Pursuant to the directive of the City Commission on September 14, 1995, enclosed, please
find a copy of the U.S. HUD Section 108 application of the Coconut Grove Local Development
Corporation, regarding Items #10, 11, and 12 for review by the public, if requested.
The public should be advised that copies of said application may be obtained at the
Department of NET, 300 Biscayne Boulevard Way, Suite 420, Dupont Plaza.
If you have any questions on this matter, please contact Ed Blanco, at 579-2463, ext. 111.
FClvh
Cmemos>foeman
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95 - 673
SECTION 108 LOAN APPLICA►.TION
SUBMITTED BY:
THE CITY OF MI.A►M19 FLORIDA
ON BEHALF OF
THE COCONUT GROVE LOCAL DEVELOPMENT CORPORATION
OCTOBER 29,1994
ZE
I� �
TABLE OF CONTENTS
1. Standard Form 424
2. City of Miami Motion M 93-667
3. Public Notice
4. Certification of Funding Sought
5. Application
6. Project Budget and Pro Forma
7. Environmental Review
8. Appendices
9. EDI Application and Approval
10. Project Designers and Participants
9 5 - 61! 3
.-J
STANDARD FORM 424
9r,- 67
ASSISTANCE
October 31, 1994
Aoplkant tdontifiat
city of V` mi, Goombay Plaza
v.c_nAt_
State Applicatkx, ntifiof
�fYPt Of t;UnMItT31pN
It RECEIVED GY STATE
Appllca(Ion Pro[pt>✓ICatlO+t
COnSttVCilOtl ❑ Co(uttuctlon
A. DAT! RECEIVED BY FEDERAL AGENCY
Federal Identifier
B-92-ED-12-0013
NonConstn�cton ❑
APPLICANT fNFORMATION
Name:
�fQa(liiatidnal ()flit:
if City of Miami
Sdtels (,give C;fy, county. IWO. and Lip rods):
tlaa w and tataphonw rA nitx f it the pat30n tO t>Q COntaC On nuttars kt"Ol•Ma
this,applicetion (orw Ina coda)
300 Biscayne Boulevard Way
t,uite 420
Frank Castaneda, Director
rliami, Florida 33131
Department of Community Development
FJt to£NTIFFCATION HUMBER (Ghjk
'r. TYPf W APrJCAAT: (enterappro(xia(a k1wIn box) C
3 7 5
A. SSsc. ts. tnoaoondanc scttoot ouc
1{ 5 9 6 0 0 0
e. County L $tats Conttotted kutitu6on of HiOhsr i�caR,K.p
cepal G uuniJ. Private Unity ty
E of APPLICAiiOlt
O. Townstyp K ktdun Tuba
j ❑ (Jaw )($ Cont:twation ❑ Revision
E. Intorstata L Lndividual
F. Wwrrxmidpal M. Profit D( anitatbn
ant
s-,ision, at lata tatter(:) in ba4aa): El ❑
approot
G SWcfal District ti t7tttet (Spac+fYl
E kvawe,se Award 6. Oeueaso Award C. U%Creasa Duration
1. t"E Of FEDERAL /.GEttCY:
4 Decrease Duration Other (Spaclly):
i
D}opartment of Housing and Urban Development
.TAL.OG OF FEDERAL DOW ESmc
1 i. DESCRSma TITLE Of APPLICANT'S PROJECT:
ASSISTANCE HWAGM to
j Supplemental Asslstanoe for Facit(t(es
E
Goombay Plaza--108 Loan Application
�t to Assist the Homeless
i ,REAS AFFECTED BY PROJECT (cities. carxtNas, :fates, ftc j:
f
ROPOSED PROJECT:
1A. CONGRESSIONAL DISTRICTS Of:
Oats EATa1Q Data
s. Applicant % b• Prom
!1J95 2/1J96
17,18,22 17
_!
MATED FUNOX
ta. IS APPLICATION SUBJECT TO REVIEW 5Y STATE OMOU7iVE ORDER 123U PROCSSST
al
.L YF& THO r_AT1VVAPPUCAT*N WAS MADE AVAXABLE TO THE
: 300,000 ED I .oa
1
101
STATE EXEClTTVE OROeR 12372 PROCESS FOR REVW=W ON:
2,000,000 Section
S
leant
DATE
e
b NO. 0 PROGRAM is NOT COVERED 6Y EO. 123T2
f .00
❑ OR PROGRASA HAS NOT BEFN S»CTED 6Y STATE FOR RE1llE'W
S 00
Y
f .00
ty
1,559,000
• am Income
f AO
17. ES THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT?
❑ Yes If -Yes.' attach an expltion. ❑ f10
ana
3,859,000
HE BEST OF FAY KNOWLEDGE AND BELIEF. ALL DATA tN THIS APPLICATIOILPREAPPUCATION ARE TRUE AND CORRECT. THE DOCUMENT HAS BEEN DULY
LED eY THE GOVERNING BODY OP THE APPLICANT AND THE APPLICANT VaLL COMPLY WITH THE ATTAcHEG ASSURANCES IF THE ASSISTANCE a AWARDED
Mama of Auttw(ited rl�prasontatve
Cesar H. Odi.o
b. Titlo
City Manager(305)
c. Telephone number
250-5400
I (we of Autho(lted Rep esantati.ry
e. Palo S.onod
d -drtroni Not wab1a
( Authorized for local Reproduction
a
S(anda(d Fo(m A24 (REV .1•881
P(ascr,bod by OµB ti(cuu( A•102
0 5 - 617r 3
tSTRUC` IONS CONCERNING LOBBYING AND DRUG—r-REB 410RF{pLACS REQUIRERNTS i
T.,obbyinci Certification - ParagrapkL 11
This certification is it material representation of fact upon
which reliance was placed when this trEanraetion was made. or
entered into. Submission of this certification is a prerequisite
for making or entering into thin transaction imposed by section
1352, title 31, U.S. Code. Any person who fails to file the
required certification shall be subject to a civil penalty of not
less than $10,000 and not more than $100,000 for each such
failure.
Drug -Free Workplace Certification -- Paragraph o
I. By signing and/or submitting this application or grant
agreement, the grantee is providing the certification
set, out in paragraph (o).
2. The certification set out in paragraph (o) is a material
representation of fact upon which reliance is placed when
the agency awards the grant. if it is later determined that
the grantee knowingly rendered a false certification, or
otheniise violates the requirements of the Drug --Free
Workplace Act, HUD, in addition to any other remedies
available to the Federal Government, may take action -
authorized under -the Drug -Free Workplace Act.
3. For grantees other than individuals, Alternate I
applies. (This i.s the information to which entitlement
grantees certify).
4. For grantees who are individuals, Alternate II applies.
(Not applicable to CDBG Entitlement grantees.)
5. Workplaces under grants, for grantees other than
individuals, need not be identified on the
certification. if known, .the3► may be identified in the
grant application. If the grantee does not identify
the workplaces at the time of application, or upon
award, if there is no application, the grantee must
keep the identity of the workplace(s) on file in its
office and make the information available for Federal
inspection. Failure to identify all known workplaces
constituter a violation of the grantee's drug -free
torkplace requirements.
G • Workplace i_dent-;if:ic itionn mus,: include the actual
address of buildings (or parts of buildings) or other
oitcn where work under the grant takes place.
Cat:egoricrtl deacri.pt:iontz finny !De used (o.g,, all
velliclec3 of a IttaC3G Lrann.l.t auziiority or State }lighway
(iepnx-Ltntent while .in ol)err,t:ion, State employeQa in eac?t
10cal uncinhlo\,merit offi-ce, pG_';:orinerG 111 concert llaiis
9 5 - G113
of radio o tationa) .
7. zf the workplace identified to the agency changeQ
during the performance of the grant:, the grantee shall
inforin the agency: of• the change (a) , if i.t ,prev.iously
identified the workplacca in queo :S_on ( rsed paragraph
f ive ) .
8. Definitions of terms in the Nonprocurement- Suspension
and Debarment common rule and Drug --Free workplace
common rule apply to this certification. Grantees'
attention is called, in particular, to the following
definitions from these rulers s
"Controlled substance" means a controlled substance in
Schedulers I through V of the Controlled Substances Act
(21 U.S.C.812) and as further defined by regulation (21
CFR 1308.11 through 1308.15);
"Conviction" means a finding of guilt (including a plea
of nolo aontendre) or imposition of sentence, or both,
by any judicial body charged with the responsibility to
determine violations of the Federal or State criminal
drug statutes;
"Criminal drug statute" means a Federal or non --Federal
criminal. statute involving the manufacture,
distribution, dispensing, use, or posseaaion of any
controlled substance;
"Employee" means the employee of a grantee directly
engaged in the performance of work under a grant,
including: (i) All "direct charge" employees; (ii) all.
"indirect charge" employees unless their impact or
involvement is insignificant to the performance of the
grant; and (iii) temporary personnel and consultants
who are directly engaged in the performance of work
under the grant and who are not on the grantee's
Payroll. This definition does not include workers not
on the payroll of the grantee (e.g., volunteers, even
if used to meet a matching requirement; consultants or
independent contractors not on the grantee's payroll;
or employees of subrecipients or subcontractors in
covered workplaces).-
95-
10
AITACTIMENT I -A
COMMUNITY DEVELOPI-TENT BLOCK GRANT
GRANTEE CERTIFICATIONS
In accordance with the Housing and Community Development Act of
1974, as amended, and with 24 CFR 570.303 of the Community
Development Block Grant regulations, the grantee certifies that:
(a) It possesses legal authority to make a grant submission and
to execute a community development and housing program;
(b) Its governing body has duly adopted or passed as, an official
act a resolution, motion or similar action authorizing the
person identified as the official representative of the
grantee to submit the final statement and amendments thereto
and all understandings and assurances contained therein, and
directing and authorizing the person identified as the
official representative of the grantee to act in connection
with the submission of the final statement and to provide
such additional information as may be required;
(c) Prior to submission of its final statement to BUD, the
grantee has:
1. Met the citizen participation requirements of
5570.301(b);
2. Prepared its final statement of community development
objectives and projected use of funds in accordance
with §570.301(c) and made the final statement available
to the public;
(d) It is following a detailed citizen participation plan which:
1. Provides for and encourages citizen participation, with
particular emphasis on participation by persons of low
and moderate -income who are residents of slum and
blighted areas and of areas in which funds are proposed
to be used, and provides for participation of residents
in low and moderate income neighborhoods as defined by
the local jurisdiction;
2• Provides citizens with reasonable and timely access to
local meetings, infornation, and records relating to,
the grantee's proposed use o; funds, as required by the
05- V?3
regulations of the Secretary, and relating to the
actual. use of funds under the Act;
3. Provides for technical assistance to groups -
representative of parsons of low and moderate income
that request such assistance in developing proposals
with the level and type of assistance to be determined
by the grantee;
4. Provides for public hearings to obtain citizen views
and to respond to proposals and questions at all stages
of the community development program, including at
least the development of needs, the review of proposed
activities, and review of program performance, which
hearings shall be held after adequate notice, at times
and locations convenient to potential or actual
beneficiaries, and with accommodation for the
handicapped;
5. Provides for a timely written answer to written
complaints and grievances, within 15 working days where
practicable; and
6. Identifies how the needs of non -English's peaking
residents will be met in the case of public hearings
where a significant number of non-English speaking
residents can be reasonably expected to participate;
The grant will be conducted and administered in compliance
with:
1. Title VI of the Civil Rights Act of 1964 (Public Law
88-352, 42 U.S.C. 52000d et seg.); and
2. The. Fair Housing Act (42 U.S.C. 3601-20);
It will affirmatively further fair housing;
It has developed its final statement of projected use of
funds so as to give maximum feasible priority to activities
which benefit low and moderate income families or aid in the
prevention or elimination of slums or blight; (the final
statement of projected use of funds may also include
activities which the grantee certifies are designed to meet
sther community development needs having a particular
:rgencv because existing conditions pose a serious and.
unmediate threat to the health or %.jelfare of the copuiunity,
and other financial resources are not available); except
that the aggregate use of CDDG funds received under section
106 of the Act., and if applicable, under section 108 of the
Act, during program year(s) 199 (a period
specified by the grantee consisting of one, two, or three
specific consecutive program years), shall principally
benefit persons of low and moderate income in a manner that
ensures that not less than 70 percent of such funds are used
for activities that benefit such persons during such period;
h) It has developed a community development plan, for the
period specified in paragraph (g) above, .that identifies
community development and housing needs and specifies both
short and long-term community development objectives that
have been developed in accordance with the primary objective
and requirements of the Act;
i) It is following a current comprehensive housing
affordability strategy (CHAS) which has been approved by HUD
pursuant to §570.306 and Part 91, and that any housing
activities to be assisted with CDBG funds will be consistent
with the CHAS;
j} It will not attempt to recover any capital costs of public
improvements assisted in whole or in part with funds
provided under section 106 of the Act or with amounts
resulting from a guarantee under section 108 of the Act by
assessing any amount against properties owned and occupied
by persons of low and moderate income, including any fee
charged or assessment made as a condition of obtaining
access to such public improvements, unless:
1• Funds received under section 106 of the Act are used to
pay the proportion of such fee or assessment- that
.relates to the capital costs of such public
improvements that are financed from revenue sources
other than under Title I of the Act; or
Z• For purposes of assessing any amount against properties
owned and occupied by persons of moderate income, the
grantee certifies to the Secretary that it lacks
sufficient funds received under section 106 of the Act
to comply with the requirements of subparagraph (1)
above;
(k) Its notification, inspection, tooting and abatement
procedures concerning load-basod paint will comply with
$570.60B;
(1) It will comply with the acquisition and relocation
requirements of the Uniform Relocation Assistance and Real
Property Acquisition Policies Act -of 1970, as amended, as
required under §570.606(b) and Federal implementing
regulations; and the requirements in 5570.606(c) governing
the residential antidis placement and relocation assistance
plan under section 104(d) of the Act (including a
certification that the grantee is following such a plan);
and the relocation requirements of 9570.606(d) governing
optional relocation assistance under section 105(a)(11) of
the Act;
(m) It has adopted and is enforcing:
1. A policy prohibiting the use of excessive force by law
enforcement agencies within its jurisdiction against
any individuals engaged in non-violent civil rights
demonstrations; and
2. A policy of enforcing applicable State and local laws
against physically barring entrance to or -exit from a
facility or location which is the subject of such non--
violent civil rights demonstrations within its
jurisdiction;
(n) To the best of its knowledge and belief:
1. No Federal appropriated funds have been paid or will be
paid, by or on behalf of it,, to any person for
influencing or attempting to influence an officer or
employee of any agency, a Member of Congress, an
officer or employee of Congress, or an employee of a
Member of Congress in connection with the awarding of
any Federal contract, the making of any Federal grant,
the making of any Federal loan, the entering into of
any cooperative agreement, and the extension,
continuation, renewal, amendment, or modification of
any Federal contract, grant, loan, or cooperative
agreement;_
2. If any funds other than Federal appropriated funds have
been paid or will be paid to an), per.s.on for influencing
or attempting to influence an officer or employee of .
any agency, a member of Congress, an officer or
employee of Congress, or an employee of a member of
Congress in connection with this Federal contract,
grant, loan, or cooperative agreement, it will complete
and submit Standard Form-LLL, "Disclosure Form to
Report Lobbying," in accordance with its instructions;
and
3. It will require that the language of _paragraph (n) of
this certification be included in the award documents
for all subawards at all tiers (including subcontracts,
subgrants, and contracts under grants, loans, and
cooperative agreements) and that all subrecipients
shall certify and disclose accordingly;
It will or will continue to provide a drug -free workplace
by:
1. Publishing a statement notifying employees that the
unlawful manufacture, distribution, dispensing,
possession, or use of a controlled substance is
prohibited in the grantee's workplace and specifying �
the actions that will be taken against employees for
violation of such prohibition;
2. Establishing an ongoing drug -free awareness program to
inform employees about -
(a) The dangers of drug abuse in the workplace;
(b) The grantee's policy of maintaining a drug -free
workplace; t
(c) Any available drug counseling, rehabilitation; and
employee assistance programs; and
(d) The penalties that may be imposed upon employees
for drug abuse violations occurring in the
workplace;
3. baking it a requirement that each employee to be
engaged in the performance of the grant be given a copy
of the statement required by paragraph l;
4. Notifying thy. employee in the statement required by
paragraph 1 that, as a condition of cm..pl.oymont undor
the grant, the employee will --
(a) Abide by the torms of the Gtatement; and
(b) Notify the employer in writing of hiu or liar
conviction for a violation of a criminal drug
statute occurring in the workplace no later than
five calendar days after such conviction;
5. Notifying the agency in writing, within ten calendar
days after receiving notice under subparagraph 4(b)
from an employee or otherise receiving actual notice
of such r
h conviction. Employers of convicted employees
must provide notice, including position title, to.every
grant officer or other designee on whose grant activity
the convicted employee was working, unless the Federal
agency has designated a central point for the receipt
of such notices.` Notice shall include the
identification number(s) of each affected grant;
6. Taking one of the following actions, within 30 calendar
days of receiving notice under subparagraph 4(b), with
respect to any employee who is so convicted -
(a) Taking appropriate personnel action against such
an employee, up to and including termination,
consistent with the requirements of the
Rehabilitation Act of 1973, as amended; or
(b) Requiring such employee to participate
satisfactorily in a drug abuse assistance or
rehabilitation program approved for such purposes
by a Federal, State, or local health, law
enforcement, or other appropriate agency;
7. Making a good faith effort to continue to maintain a
drug -free workplace through implementation of
paragraphs 1, 2, 3, 4, 5 and 6.
9 5 -- 6'� 3
f a. The grantee may inaert .i.n the apace provided below the
f site(a) for the performance of work done in connection
W.Lt}7 t}le apecific grantl
f
l
Place of Performance (Stroet addreaa, city, county,
state, zip code)
300 Biscayne Blvd. Way
Suite 420
Miami, FL 33131
Check if there are workplaces on file that are
not identified here; and
(p) It will comply with the other provisions of the Act and with
other applicable laws.
Signature
City Manager
Title �
Date
9 51 - 673
CITY OF NIIAMI MOTION M 93-667
95- E'3
ml
C -""Y OF NMI Mi �
CITY CLERK'S REPORT
"TING DATE: Octobor 3.4, 1993
41 A RESOLUTION WAIVING THE USE FEE, < OFFICE
SPACE AT THE MANUEL ARTIXE C01`; i;:`: i T Y CF:NTGR
FOR THE CATHOLIC C01011 NIlA-,,rRVIC!;S, INC.
LITTLE HAVANA OUTREACH OFFICE, FOR ;HE PERIOD
OF OC'1'UBER, 1993 THRO 1C3f� S�?�. :;L:i;?2, 1994, IN
AN A 14OUNT NOT TO FY-C�EED $5,377.56; .FURTHER,
{•IAIVING THE jl8E ' FEE rCR Ti:F CLOTHES
DISTRIBUT I0N,-�PACE AT `i'NE YA!':77 T, ARTIME
COMMUNITY bNTER FOR THE CATFiO-�IC CO:VMUNITY
SERVICE , INC., FOR THE PERIOD OF JANUARY,
1 99 'HROUGH SEPTEMBER, 159 , IN AN AMOUNT
NO TO EXCEED $742.50.
42 A MOTION GRANTING REQUEST BY REPRESENTATIVES
OF THE COCONUT GROVE LOCAL DEVELOPMENT
CORPORATION; FURTHER DIRECTING THE CITY
MANAGER TO ASSIST SAID GROUP IN DEVELOPING AN
APPLICATION TO BE SUBMITTED TO THEE FEDERAL
GOVERNMENT FOR A SECTION 108 LOAN IN THE
AMOUNT OF $1,986,500 IN ORDER TO DEVELOP THE
TIKI PROJECT, AND TO COME BACK WITH A REFINED
AND FINAL CONTRACT FOR THE, COMMISSION'S FINAL
CONSIDERATION AND APPROVAL.
31 A MOTION TO DEFER' CONSIDERATION OF AGENDA
ITEM 31 (A SCHEDULED DIS SSION REGARDING
WYNWOOD COMMUNITY EC OMIC DEVELOPMENT
CORPORATION AND THE .YYNWOOD FOREIGN TRADE
ZONE); FURTHER DEF BRING SAID ISSUE TO THE
OC'I'OBER 21, 199 CITY C0101ISSION MEETING;
FURTHER STIPUL ING-THAT IF THE CHAIRPERSON
OF .THE WYNWOO6COM14UNITY ECONOMIC DEVELOPMENT
CORPORATION' CAN AGREE TO THE CITY
COMMISSL-014' S TERMS, AS MORE FULLY OUTLINED
DURIN TODAY'S DISCUSSION OF THIS ITEi, THEN
THE ITY COMMISSION WILL SCHEDULE A SPECIAL
_-METING TO RESOLVE THIS ISSUE.
PAGE NO. 6
R 93-666
MOVED:
SECONDED:
ABSENT:
14 93-667
MOVED:
SECONDED:
ABSENTS
M 93-668
MOVED:
SECONDED:
UNANIMOUS
ALONSO
PLUMMER
DE YURRE
PLUMMER
DAWKINS
DE YURR1
PLUMMER
DAWKINS
95- 673
PUBLIC NOTICE
0
95-- 673A
CITY it tq i A1.111. !.UG0 t( Q. No 011t11 �
DEPARTMENT OF COMMUNITY DL•'VELOPMENT
NOTICE OF PUBLIC HEARING
THE CITY OF MIAMI WILL CONDUCT A PUBLIC HEARING TO DISCUSS THE
CONTENT OF THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
APPLICATION FOR SECTION 108 LOAN GUARANTEED, IN THE AMOUNT OF $2
MILLION TO SUPPORT GOOMBAY PLAZA A JOINT VENTURE BETWEEN COCONUT
GROVE LOCAL DEVELOPMENT CORPORATION AND GUTS A NEIGHBORHOOD -BASED
GROUP. PROJECT IS TO BE LOCATED AT THE INTERSECTION OF DOUGLAS
AND GRAND AVENUE.
COCONUT GROVE PUBLIC HEARING
DATE: TUESDAY, OCTOBER 25, 1994
TIME: 7:00 P.H.
PLACE: COCONUT GROVE HUMAN RESOURCES CENTER
3750 SOUTH DIXIE HIG11WAY
MIAMI, FLORIDA 33133
ALL INTERESTED PERSONS WILL BE GIVEN AN OPPORTUNITY TO COMMENT ON
CHE PROPOSED APPLICATION.
5
6
CERTIFICATION OF FUNDING SOUGHT
9 5 - 673
t.)'1'111ft___1'IIJ1I.1 1,rJi�.LI_ Gf1I11'?.r!,!i'f'I•:I 1•'tlhli)';
::1.'!'1,l.Ci.fT'1' f11:)tl.'.i3Y :.SSUIIES
i�tlU (.!:}:'1'11.'T.}:S THAT T'1'
HAS
I•iADF:
'01:'!."S 'P0 (}3'1'A1.11 FINANCING I'Qi:
T1113 hC 'IVITII;S DE')CRINJED
IN
'!.'ZITS
'1.,1:CATI.014 I ITIlOUT T1lE USE
OF LOAN GUARAN'Iu,, 'I'HA'P
I`i'
1-11m,
1411711id DOCUMENTATION OF SUCP
EFFORTS FOR THE TERi•i OF
THE
LOAN
RI N'PEE , AND THAT IT CANNOT
COMPLETE THE FINANCING CONSISTENT
14 THE TIMELY EXECUTION OF
THE ACTIVITIES DESCRIBED
IN
Tills
LICATION i;ITIiOUT SUCH GUARANTEE.
CESAR H. ODIO
CITY OF MANAGER
1 EST:
1Y HIRAI
' CLERK
5
6
7
S
1t
00
108 APPLICATION
9"- 6s3
SUMMARY OF SECTION 108 LOAN APPLICATION
The City of Miami is requesting a 108 loan of $2 million on behalf of the Coconut Grove
Local Development Corporation (CGLDC), a non-profit 501 (C)(3) community development
corporation's Goombay Plaza, a major economic development project within the West Coconut
Grove Target Area. We recently received approval for an Economic Development Initiative
(EDI) Grant for this project in the amount of $300,000 (see attached), and are submitting our
loan application in fulfillment of the requirements for the receipt of this grant.
The West Grove is a federally designated poverty area whose demographics reflect its
status as one of the poorest areas within the City of Miami, the nation's third poorest city. In
Coconut Grove over 40 percent of residents live below the poverty line, including over 60 percent
of children under 18. Violent crime and drug rates are approaclvng unprecedented levels,
matching the skyrocketing unemployment rate which has more than tripled in the last 10 years.
Not only are jobs scarce, but residents are under -qualified for available jobs as most have not
completed high school or received a high school equivalency degree. The Coconut Grove Target
Area, as a poverty area within one of the poorest cities in America, vitally needs this grant
assistance.
ECONOMIC AND PHYSICAL DEVELOPMENT
Based upon market and feasibility analyses conducted by Hamer, Siler & George and the
Chesepeake Group, the City of Miami and the CGLDC have designed the Goombay Plaza project
as a major component of their strategy to revitalize the West Grove community. Coconut Grove
is a historic black community of Caribbean/African-American heritage; this theme restaurant and
banquet facility will reinforce the historic roots of the community and provide key marketing
opportunities for tourism development, 60 percent of the retail trade area's base.
9 5 - 6, 3
6
7
8
1i
__J
,IOi3'I'RAINING, EMPLOYMENTAND OTHER OPPORTUNITIES
Goombay Plaza will provide over 100 jobs for area residents, as well as an on the job
training program to provide instruction and experience in the restaurant and hospitality industry
i
for residents. The employment structure of Goombay Plaza will be designed to enhance the
chances for advancement for the area's low and moderate income residents, and the job training
program will be geared towards broadening the employment opportunities for the area's residents
for the hospitality industry in all of South Florida, one of the area's most important and fastest
growing fields.
The 108 loan request is in the amount of $2 million to support the construction and other
preliminary costs associated with the project. The total budget is estimated at $3.6 million, with
additional funding coming from CGLDC, GUTS (Grovites United To Survive, Inc.), the City of
Miami's Off -Street Parking as well as in -kind contributions from community professionals and
businesses. The goal of the CGLDC is to secure minority contracts for a minimum of 50 percent
of the project.
Goombay Plaza represents a genuine community -based initiative, as the project was begun
by residents working closely with the CGLDC who pooled their own capital in order to acquire
deteriorated, absentee -owned property in the Nest Grove for development. The group, now
known as GUTS (Groveites United To Survive, Inc.), has set its goal as the protection and
revitalization of the West Grove Community through cooperative, careful redevelopment. The
group sees community ownership of development projects as an effective strategy for avoiding
gentrification and the other negative effects of development programs in which existing
communities are bought out and kicked out. The residents took a stand and put up their money,
some times their life savings, in order to ensure the survival of their community.
9 5 - 673
L
The restaur�int itself also seeks to capitalize on the strong sense of pride and history in the
community. The structure will be located at the site of the historic Tikki, a successful nightclub
during the heyday of the West Grove in the 1940's and 1950's, and the restaurant will highlight the
cultural history of the community with a theme based on the culinary, musical and artistic tradition
of the area's Caribbean and African -American residents.
The concept has been created and will be implemented by an experienced team of
financial, development, and restaurant specialists in accordance with the most recent trends in the
restaurant industry. Its uniqueness, however, will lie in the fact that the concept and the project
itself are solidly anchored to the heritage of the Nest Grove community. Goombay Plaza
represents a new strategy for development where projects are developed with the cooperation and
support of the community, designed to capitalize on the resources of the community for
inspiration and for success.
DESCRIPTION Oh ACTIVITIES
CGLDC initiated a demonstration project to achieve an unprecedented goal in community
redevelopment: the repurchase of community real estate assets through black family
capitalization. By helping formulate the Goombay Plaza development project and providing
technical advice, support, and assistance, CGLDC helped to incorporate Groveites United To
Survive (GUTS), a group of 20 black families from all walks of life who pooled $5,000 per
family. The $100,000 raised was utilized to leverage acquisitions of two significant properties
located at the major intersection of the West Grove community, that of Grand Avenue and
Douglas Road. With a loan to the group of $230,000, the City of Miami provided additional
capital for acquisitions.
The properties acquired include one lot which has been converted to green space, the 50-
year-old Tikki Club, a famous 15,000 square foot night club, and four adjoining lots to the rear of
these properties.
GUTS saw the revitalization of the Tikki in the form of Goombay Plaza as a key to the
redevelopment of the West Coconut Grove Community. They contracted CGLDC as their
developer and a team was assembled to develop the concept. Goombay Plaza while based on
historical traditions and fulfilling a repeatedly expressed need for an African American owned and
operated facility in the community, will also provide over one hundred jobs in the heart of the
West Grove Target Area and become a basic training ground for unskilled labor willing to enter
the restaurant and hospitality industry beyond traditional fast food restaurants.
The creation of Goombay Plaza, a 15,000 square foot restaurant with dining and banquet
facilities, follows the most recent national trends pointing towards the success of themed
restaurants. This trend can be clearly perceived in General Mills Olive Garden and China Coast
concepts as well as the venerable Chili's chain and the more recent Macaroni Grill and On the
Border. In all these chains, the architecture, decor, and fixturing convey a very focused image.
These elements, combined with competitively priced menus. have created the theme trend.
Goombay Plaza will be an establishment which will be themed on the African -American
culinary, musical, and artistic tradition. The intent is to reflect the breadth of the heritage,
covering the Caribbean (Bahamas, Haiti, Jamaica, Trinidad, etc.), from soul food to New Orleans
jazz, from African Art to the native paintings of Haiti. The restaurant will include African -
American decor and artifacts, a stage for music, dance shows, a bar, and a reasonable priced menu
with food from Jamaica, Bahamas, Trinidad and Tobago, as well as african-american southern
style cuisine. There will be a banquet hall to accommodate up to 300 people for catered
functions and meetings.
From the inception of the project, Goombay Plaza has involved nationally known
restaurant creators in the areas of conceptual design, menu creation and physical design.
Goombay Plaza will be implemented by an experienced team which was directly involved in the
creation of Tutu Tango, a Coconut Grove restaurant so successful that it is now being developed
as a national chain. These experts will develop Goombay Plaza with a strongly themed restaurant
providing quality food at reasonable prices in a festive atmosphere. The development team
includes Yaromir Steiner, of Steiner and Associates, and Constructa, US, developers of the highly
successful Cocowalk shopping area in the Coconut Grove Village Center.
Within the group of successful restaurant ideas, Goombay Plaza will be unique because it
will rely on the cultural resources of the surrounding community for its inspiration and its success.
05^ °`13
__,, -vay riaza capuauzes on the historic use of its own site, which was formerly a
popular attraction in the Grove, the reputation of the West Grove community as a regional
entertainment destination, the presence of the oldest Bahamian settlement in Florida, and the
area's need for a Black -owned restaurant and catering facility serving food and music in a decor
and manner consistent with African -American traditions. The fact that Goombay Plaza
successfully combines the resources and meets the needs of the community predicts success for
the project.
C, ?
ECONOMIC JUSTIFICATION
The use of the Section 108 program will offer the City of Miami a unique opportunity to
provide financial assistance to the Goombay Plaza development project located within the West
Coconut Grove Target Area. This community development project will address the needs of the
economically depressed community by providing 100 full-time equivalency jobs and job training
facilities in the hospitality and restaurant industry for community residents.
Without Section 108 funding, the City would not be able to provide financial assistance
necessary to complete the project. Florida Law prohibits the City of Miami from directly pledging
its own credit, becoming joint owner, stockholder, or giving, lending or using its taxing power to
aid any corporation. The Section 108 Loan program allows the City to use its Community
Development Block Grant Funding as security for a loan from the Federal Government, thus
giving the City the opportunity to borrow the amount required to offer significant support for the
Goombay Plaza project.
Because of the lending standards practices of banking institutions, it is virtually impossible
to obtain market loans for such projects located within Community Development Target Areas
such as West Coconut Grove. Because of this, the developer of the project, Coconut Grove
Local Development Corporation, has requested assistance from the City of Miami through the
HUD Section 108 loan program. The City has reviewed the information provided by the Coconut
Grove Local Development Corporation and has determined that the requested loan in support of
Goombay plaza is necessary and appropriate to support the community redevelopment strategies
being implemented in the West Coconut Grove Target Area.
95- wn
Compliance with 570.208: Job Creation
Goombay Plaza represents an important strategy for the revitalization of the West
Coconut Grove Target Area, a federally designated poverty area, as well as a model for effective
re0evelopment for similar inner city communities around the country. The destination Caribbean
and Southern -theme Restaurant, banquet facilities and Bahamian Straw Market will provide over
100 full time equivalency jobs for low and moderate income community residents as well as an
on-the-job training facility for the hospitality industry.
Over 40 percent of the residents of the West Coconut Grove Target Area live in poverty,
and the area's unemployment rate, already higher than the City's average, has tripled in the last 10
years. Many of the jobs created by Goombay Plaza will be on the entry level, providing excellent
opportunities for entry into the workforce for the area's unemployed, most of whom have not
attained a high school degree or its equivalent and who do not have the skills to compete for
available jobs. Not only will these jobs be available to them, but Goombay Plaza will also include
job training facilities that will help residents acquire the skills necessary to successfully pursue and
obtain other jobs within the restaurant and hospitality industry, one of the most successful
industries in the South Florida market.
There will also be opportunities for advancement and promotion within the employment
structure of Goombay Plaza for low and moderate income neighborhood residents, directly and
effectively addressing another national objective. The facility will be the largest minority -owned
and operated restaurant and small convention facility in the City of Miami, and with its
commitment to the revitalization of the West Grove community and population, it will provide
opportunities for advancement that may not otherwise exist for community residents.
El
570.702(b)(3) Proposed Repayment Schedule:
The Applicant's loan to the Developer stipulates a twenty (20) year term from date of
disbursement, with a two year moratorium on payment. For years three (3) through twenty (20),
interest and principal payments, amortized for a twenty year period, will be payable annually at a
six percent interest rate, with a balloon payment of the outstanding balance of $600,000 at the end
of the twentieth year.
The interest and principal payments for the Section 108 Loan will be paid by the
Developer or by subsequent corporations or persons if applicable. The applicant reserves the
right to pay interest as well as principal payments from any other source of funds available at the
Itime. Additionally, the Applicant reserves the right to acquire the assets of the Developer,
through foreclosure if necessary, and to liquidate the same in the event of a default on the
Developer's loan, and to utilize the proceeds of the liquidation sale to repay any other source of
Ifunding engaged to make interest and/or principal payments. Any deficiency which may result
shall be pursued by the Applicant against the Developer under the terms of the Loan Agreement
by and between the Applicant and the Developer.
Community Development Block Grant funds serve only as the guarantee to the US HUD.
The Applicant does not intend or expect to utilize CDBG funds for interest or principal payments
for repayment of the Section 108 Loan. The Applicant has reviewed the Developer's request and,
based upon the information presently available, believes that the proposed loan is appropriate to
further the redevelopment efforts of the Applicant in the Coconut Grove Community
Development Target Area.
Applicant shall obtain a first lien (mortgage) on the building improvements, furniture,
fixtures, equipment, and inventory located upon the premises now and during the loan term as
security for its loan.
I
1
C
05 67
PROJECT BUDGET AND PRO FORMA
TIKKI CLUB
P_ rojected_ Budget
Development Costs
Lands
Original Acquisitions
Grand Avenue Parcels
Additional Acquisition
Pre Development Costs
Schematic Design
Pre -Development Coordination
Project Supervision
Restaurant Design
Pre -development costs
Development Costs
Steiner and Associates
Development Costs
Restaurant Development Costs
Operating Capital
Inventory (Food and Beverage)
Prepaid Expenses:
Licenses
Insurance
Utility Deposits
Equipment:
Kitchen/Bar Equipment
Audio Visual Equipment
Smallwares
Communication Equipment
POS System
Uniforms
Furniture and Fixtures:
Furniture
Fixtures
Development Cost
Salaries and Wages
Training Expenses
Marketing and Promotion
C
$ 330,000
$ 370,000
$ 500,000
--------------------
$1,200,000
$ 32,500
$ 27,500
$ 24,500
$ 35,000
$ 178,000
--------------------
$ 297,000
$ 60,000
$ 290,000
--------------------
$ 218,000
$ 62,000
$ 5,000
$ 10,000
$ 35,000
S
200,000
$
68,000
$
30,000
$
8,500
$
45,000
$
3,000
$
100,000
$
80,000
$
25,000
$
12,000
-$
150,000
350,000
$1,051,500 :
9 5 - C'"' e
Construction Costs
S!-tell Construction
Sitework
Bones/Insurance
Contingency
TOTAL EXPENDITU
Sources
108 Loan
EDI
Other
Equity/grants/loans
GUTS Initial Investment
City Initial Loan
Easment Right Lease
Other City Grant
Voluntary Contributions
Private Placements
Total
780,000
S 88,500
$ 18,000
-------------------
$ 886,500
$ 74,000
RES $3,859,000
$2,000,000
$ 300,000
$ 430,000
$ 100,000
$ 230,000
$ 200,000
$ 170,000
$ 179,000
$ 250,000
---------------------
$1,559,000
$3,859,000
� - C I Y 3
RESTAURANT PRO FORMA
SALES
Food
$1,600,000
Beverage
$ 680,000
Merchandise
$ 120,000
$2,400,000
COST OF FOOD
Food
$ 400,000
Beverages
$ 130,000
Supplies
$ 90,000
($620,000)
$1,780,000
OTHER COSTS
Payroll (hourly)
$
500,000
Management Salaries
$
255,000
Taxes and Workers Comp.
$
72,000
($827,000)
$ 953,000
Equipment Leases
$
48,000
Utilities and Trash Removal
$
90,000
Rent
$
174,000
Administration
$
24,000
Professional Services
$
24,000
($360,000)
$ 593,000
Marketing Costs
$
240,000
Management Fee 5%
$
120,000
($360,000)
NET PROFIT (Before Taxes)
$ 233,000
ENVIRONMENTAL REVIEW
0 5 - W
U,:;, DEPARTMENT OF HOUSING AND URBAN DEVELO IMENT •
Community Development Block Grant, Rental RefiaWlltatlon
and Housing Development Grant Programs
ENVIRONMENTAL 'UVIEWS AT THE
ENVIRONMENTAL
REVIEW RECORD
PROJECT
COMMUNITY LEVEL
Goombay Plaza
Grant Number B-92-ED-12-0013
PROGRAM
Section 108 Loan Progr
HUD
CPD
3
L
PROJECT ABSTRACT
FORMAT U
ENVIRONMENTAL ASSESSMENT
From: 10/1/94 7b: 12/31/96
butte aryl Title of Cert b3ing Officer:
Cesar Odio
City Manager
Pzojert Nara--:
Goombay Plaza Project
Nara- of G%rmt-e
City of Miami, Florida
AFol.icatirn/Cram 1Affr4er
B-92-ED-12-0013
Origirel
its
T=tirns of .Fh3sical D?mlogrq7t(s): 3692 Grand Avenue
Coconut Grove
Department of Community Development
ass: 300 Biscayne Blvd. Way, Suite 420
Miami, FL 33131
Pmjs:.-t IL-pzesentatice: Frank Castaneda 7blep'rrie: 579-2461
Address: same as above
Proje.-t rnfboriar-icn: same as above 7Zep'cm: same as above
Adrxesg: same as above
Pmje~t -ck m De=ipticn:
C 60 FLTds Otins
(Proje7tel)
The project entails a 15,000 square foot restaurant with banquet
facilities.
��_ C",. 3.
Environmental
Assessment
Page
r
PROJECT DATA
PURPOSE OF THE PROJECT:
The Coconut- Greve Local Devel(7pment Corporatiori ("Developer" is
applying for a Section 108 loan of $2 .mil lion. to support the $3.61
million Goombay Plaza development project, a Caribbean-themed
15, 00:; square foot restaurant and banquet facility. The restaurant
will also include an area - performance and or a
for live 17ius_c r � a.f
Baha,�.ian-s;.yle _traw Market facility.
STATUS OF THE PROJECT:
Developer is completing pre -development phase of the project;
anticipated loan closing is 1/95 with construction being completed
by 12/95.
PROJECT AND AREA DESCRIPTION:
The project site is located in the Coconut Grove Communi _y
Devel opulent Target Area, a federally designate,J, poverty ar ea, in t "-.e
City of iliami. Goombay Plaza will be located at tfle intersecti_n
of ;rand Ave;,ue and Doi.Iglas Road, at the of. _i7e West Coconut
Grove :)usiness district.
The pro ject wi 11
anchor the redevel opnent a_ _ ,rig tine
Gr
iV3rll:t. C:oL`L''iaor.
h facadetic"C1gr3ill 15
�.Lli'L`'1":L__ �_ °_.^ 1 lla iritlellt
_evit._ IJ.zing ntilai i
bus 4rlr';_c.e- ac::ross
Sis_.
s1.te and d Si- a!
1 BuSi11eS_ ir1(:1.11)a._�..
, �'_ �ngi.l'"^ _
.=1?i
busir.e_;.s es i.C, i.�:e
nelry'rd?c, i.1Q::;d
e
rld ....
t17e _alerid... ar.
(Se_.. attachn��-:r;!:_
;.
Assessment
page
e --
PROJECT DATA
EXISTING CONDMONS AND TRENDS:
See City of Miami Neighborhood Development Plan
(Due for completion November 5, 1994)
y
PROJECT AND AREA MAPS AND PLANS:
See Attached
I
EnvirOn-mental
Assessment
Checklist of Appli• Mlle Statutes
and Regulations
project Name and Identification No. Goombay Plaza B-92-ED-12-0013
Statutory Checklist
`b `v e
Area of Statutory—negulatory I0 ' : 0
Compliance o
��`° �
_
(Precise citations for applicable ��oo c ti `o Qotc o
statutes and regulations are printed
on the back of this Checklist.
` OC
c
Reference to Notes Prmiding
Documentation Sources and
Correspondence
HISTORIC PROPERTIES -
g
See attached Exhibit A
PI,OODPLAIN MANALZWWT
t t r r
X
y
W92T.ANDS PROTECTION
r r I r
X
COASTAL AREAS PROTEC2IA9
X
I r r t
AND MANACEPZNr
WATER QUALITY:
SOLB SOURCE AQUIFERS
rt Ir
X,
ZMANCEP.?D SPECIES
X
r r r r
WILD AND SCENIC RIVERS
X
tt Ir
AIR QUALITY
X
rr tt
PARMLANDS PP=C-."ION
X
rr rt
NOISE
X
r t t t
P.UPWAY CL£A.R ZONES, CLEAR
rt rt
WYES !J'D ACCID% .T
X
POTENTIAL :�0SES
TR£RN.RL A,:G EXPL(.`^,Ilrt'
X
tt tt
SA ZARDS
'Attach eviurncr that required acrions have been tal:rn.
09 15 - V 3 paFe
Environmental
,assessment
page
Project Name and Identification No. Goombay Plaza B-92-ED-12-0013
1. Is project in compliance with applicable laws and
regulations? ® Yes ❑ No
2. Is an EIS required? ❑ 1'es ®No
3. A Finding of No Significant Impact IFONSII can be made. Project will not
significantly affect the quality of the human environment. ®Yes ❑ No
Prepared by Title
j D"avid J. Alexander Executive Director
i
Coconut Grove T, _ D . C.
s
f
i
i
i
i
i
i
I
I
fi
i
Date
nnt-nher 25., 1994
9 5 - C73
--J
Environmental
Assessment
page
project Name and Identification No. Goombay Plaza B-92-ED-12-0013
ENVIRONMENTAL REVIEW FINDING
On the basis of the environmental assessment of the above project I have made the following
finding.
A FINDING OF NO SIGNIFICANT IMPACT
I find that this project is not a major federal action which will have a significant effect on
the human environment and that a request to HUD for the release of project funds will not
require an Environmental Impact Statement.
October 26, 1994 Cesar Odic,
(Date)
City Manager
Sigiururv, Title and Addn= of 0wrifying Offker
A FINDING OF SIGNIFICANT IMPACT
I find that this project is a major federal action which may or will have a significant effect
on the human environment and that a request to HUd for the release of project funds will
require an Environmental Impact Statement.
(!:ete)
Si9rarvrr, 7irle and Add-r= of Certifying Oflicer
05— e�a
APPENDICES
9 15 - 6,73
L
EDI APPLICATION AND APPROVAL
0 5 - C1.
L
ECONOA/HC DEVELOPMENT INMATIVE
GRANT PROPOSAL
SUBMTMD BY:
THE crry OF MJAMI, FLORIDA
ON BEHALF OF
THE COCONUT GROVE LOCAL DEVELOPMENT CORPORATION
SEPTEMBER 16, 1994
(4t#fir of 'Mial2tt
CESAR H. ODIO
CITY MANAGER
September 15, 1994
R O. BOX 330708
MIAMI. FLORIDA 33233-0708
305-250-5400
FAX 305-285-1835
Mr. Paul Webster
Office of Assistant Secretary
Community Planning and Development
Department of Housing and Urban Development
1151 Seventh Street, SW Room 7180
Washington, D.C. 20410
RE: Economic Development Initiative Grant Application on behalf.
of Coconut Grove Local Development Corporation
Dear Mr. Webster:
The City of Miami is submitting this request based on the Notice
of Funding Availability (NOFA) and Program Guidelines for the
Economic Development Initiative (EDI) [Docket No. N-94-3801;.PR
3750-N-011 due on September 16, 1994 on behalf of the Coconut
Grove Local Development Corporation, a City sponsored CBO.
The proposed grant of $300,000 is to accompany a Section 108-loan
for $2 million to support Goombay Plaza, a. joint venture between
CGLDC and GUTS, a neighborhood -based group of investors..
The project will provide approximately 100 jobs for low and
moderate income community residents; it will allow -the community
to take advantage of existing tourist opportunities adjacent to
the project; and, it will provide an anchor for increasing
traffic which will benefit -existing area businesses. Goombay
Plaza is also a unique project in that the property owners, known
collectively as GUTS (Groveites United To Survive), represent an
unprecedented effort of black families pooling. their funds in
order to invest in the revitalization o-f their community.
We urge your strong consideration of support for this project, as
we feel it represents an effective strategy for redevelopment of -
the West Coconut Grove community.
i
Sincer y,
1
;Cesar H. Odio
City Manager
17 3
SUNIhit1RY OF SECTION 108 LOAN GUARANTEE APPLICATION TO BE SUBMITTED
The City of Miami is requesting an EDI grant of $300,000 in tandem with a 108 loan
of $2 million on behalf of the Coconut Grove Local Development Corporation, a non-profit
501 (C)(3) community development corporation's Goombay Plaza, a major economic
development project within the West Coconut Grove Target Area.
The West Grove is a federally designated poverty area whose demographics reflect its
status as one of the poorest areas within the City of Miami, the nation's third poorest city. In
Coconut Grove over 40 percent of residents live below the poverty line, including over 60 i
percent of children under 18. Violent crime and drug rates are approaching unprecedented
levels, matching the skyrocketing unemployment rate which has more than tripled in the. last
10 years. Not only are jobs scarce, but residents are under -qualified for available jobs as
i
most have not completed high school or received a high school equivalency degree. The
Coconut Grove Target Area, a poverty area within one of the poorest cities in America,
ironically is encircled by highly prized, upscale commercial and residential development.
17his community vitally needs this grant assistance. I
ECONOMIC AND PHYSICAL DEVELOPMENT
The City of Miami and the CGLDC have designed the Goombay Plaza project as a
major anchor component of their strategy to revitalize the West Grove community. Coconut
S Grove is a historic black community of Caribbean/African-American heritage; this theme
j restaurant and banquet facility will reinforce the historic roots of the community and provide
j key marketing opportunities for tourism development, the major industry in the surrounding
1
1
' area.
s
i
1 f
6 y
QY v 1
j0B TRAINING, EMPLOYMENT AND OTHER OPPORTUNITIES
Goombay Plaza will provide over 100 jobs for area residents, as well as an on the job
training program to provide instruction and experience in the restaurant and hospitality
industry for residents. The employment structure of Goombay Plaza will be designed to
enhance the chances for advancement for the area's low and moderate income residents, and
the job training program will be geared towards broadening the employment opportunities for
the area's residents for the hospitality industry in all of South Florida, one of the region's most
important and fastest growing fields.
The 108 loan request is in the amount of $2 million to support the construction and .
other preliminary costs associated with the project. The -total budget is estimated at $3.6.
million, with additional funding coming from CGLDC, GUTS, the City of Miami's Off -Street
Parking as well as in -kind contributions from community residents and businesses. The •goal
of the CGLDC is to secure minority contracts for a minimum of 50 percent of the project.
Goombay Plaza represents a genuine community -based initiative, as the project was .
begun by residents working closely with the CGLDC who pooled their own capital in order to
acquire deteriorated, absentee -owned property in the West Grove for development. The: .
group, now known as GUTS (Groveites United To Survive), has set its goal as the protection
and revitalization of the West Grove Community through cooperative, careful redevelopment.
The group sees community ownership of development projects as an effective strategy for
avoiding gentrification and the other negative effects of development programs in which
existing communities are bought out and kicked out. The residents took a stand and put up
their money, in several cases their life savings, in order to ensure the survival of their
community.
'V'7 3
L
The restaurant itself also seeks to capitalize on the strong sense of pride and history in
the community. The structure will be located at the site of the historic Tikki, a successful
nightclub during the heyday of the West Grove in the 1940's,.and the restaurant will highlight
the cultural history of the community with a theme based on the culinary, musical and artistic
tradition of the area's Caribbean and African -American residents.
The concept has been created and will be implemented by an experienced team of
financial, development, and restaurant specialists in accordance with the most recent trends in j
the restaurant industry. Its uniqueness, however, will lie in the fact that the concept and the
project itself are solidly anchored to the heritage of the West Grove community. Goombay
Plaza represents a new strategy for development where projects are developed with the
cooperation and support of the community, designed to capitalize on the resources of the
community for inspiration and for success.
1(
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PROJECT NARRATIVE
The City of Miami is applying for an EDI grant of $300,000 to supplement a Section
108 loan of $2 million to support the Coconut Grove Local Development Corporation's
? Goombay Plaza, a major economic development project within the West Coconut Grove
Target Area. The West Grove is a federally designated poverty area with the highest crime
and drug rates in the City of Miami. Over 40 percent of residents live in poverty, including
over 60 percent of those under 18. Jobs are scarce, as the economic infrastructure remains
undeveloped, and much of the community seems unable to release themselves from the cycle
of poverty in which they are caught. We believe that Goombay Plaza represents a viable
strategy for the economic redevelopment of this community..
The budget for this project is $3.6 million, with funding coming from CGLDC, GUTS,
the City of Miami's Off -Street Parking program, contributions from Iocal residents and
businesses, and the proposed section 108 loan. Without EDI grant assistance, however, the
economic feasibility of the Goombay Plaza project will be seriously impaired. Under the
proposed plan, EDI grant funds will be used to provide debt service during the critical start
up phase of the project. After this time, projected sales of the restaurant will allow for a debt
service payment of under 7 percent of the gross, allowing for a comfortable operating margin.
j Goombay Plaza represents a genuine community -based initiative, as the project was
begun by a group of community residents known as GUTS (Groveites United To Survive)
who pooled their resources to purchase deteriorating absentee -owned properties in the West
j Grove. GUTS seeks to protect the West Grove community and allow for cooperative
community redevelopment in which revitalization projects may be supported and owned by
community residents.
The project directly addresses several of the National Objectives for community
development. Goombay Plaza will provide approximately 100 jobs for low and moderate
income community residents, as well as on the job training facilities to expand the
opportunities for residents to find employment in the hospitality and restaurant industry, one
of the fastest growing fields in South Florida. Also, filling one of the major needs in South.
Florida for a black -owned iestauiant and banquet facility, Goombay Plaza will provide
opportunities for advancement for.low and moderate income residents that may not otherwise
exist.
Goombay PIaza has been thoroughly discussed and examined by all levels of the
community from initial conceptualization through dozens of public meetings and forums.. It
has been the subject of five public hearings by the Miami City Commission, and was
approved by that body in October of 1993.
The idea for the Goombay PIaza project was developed and will be implemented by
the CGLDC along with an experienced team of restaurant, development, and financial
specialists. It follows the recent trend of successful themed restaurants, but is unique in that
its caribbean/African-American theme reflects the heritage and culture of the surrounding
community. Goombay Plaza then provides opportunities not only for economic development
but for restoring the pride of community residents, empowering them to participate in and.
inspire the redevelopment of their own community.
air t-,, " (+ �� S
� 6 G
LEVEL OF DISTRESS
Goombay Plaza is designed• for implementation in the West Coconut Grove Target
Area, a federally designated poverty area located within the City of Miami. The Grove was
originally settled by Bahamian construction workers building the city almost 100 years ago,
but now that original black settlement has decreased in population and land size by over 70
percent. The remaining community is beset by extreme poverty and accompanying crime and
drug problems and presents a scene that is all too familiar in the inner cities throughout the
United States.
The community was brought to the nation's attention in a Newsweek article (see
attached) following a tennis star's arrest for possession of crack cocaine obtained in the West
Grove. It is described as an "old-fashioned black ghetto" and the question is asked, "Why
isn't this more infuriating?" While we agree that stricter law enforcement is needed, we see
this as only a part of the solution. If the economic and social conditions of community
residents are not addressed, stricter enforcement of laws.will not be sufficient.
Over half of the residents of the West Grove live in poverty, including more than 63
percent of the children tinder 18. Family and per capita income are significantly lower than
the City's average and single parent households are on the rise and now represent a majority
of the households with children. The community's unemployment rate is significantly higher
than the City's. average and has more than tripled in the last ten years, and a -large majority of
these unemployed have not completed high school or attained high school equivalency. As
reported in the Miami Herald rates of murder, robbery and other violent crimes in -the West
Grove Target. Area are among the highest in the city. Without facing the problems of
extreme poverty and the lack of resources by strengthening the economic infrastructure, all i
other solutions will be temporary and superficial.
The population has shrunken by 60% from 1970-1990, partly because of residents `
fleeing worsening crime and drug related violence and also due to federally sponsored and
private sector demolition of low income residential multi -family residential units. This has
caused the economic base to further contract and forced many marginal black -owned
businesses to sell their holdings to other operators with better access to private financing.
Typically, these new operators hire only elderly or part-time.labor. (�
A helplessness pervades area youth, who routinely turn to the illegal drug trade to
support themselves and their families as they see few alternatives. With exceedingly high
drop -out rates and lack of resources, a thriving drug market does present one of the -only
opportunities for employment open to them. The community is a drive-thru, open air .drug
marketplace, attracting patrons from up to 50 miles away. �I
Without significant efforts to address this community's problems, we will be forced to j
watch another generation grow up with a lack of access to opportunities for success, and
without the resources necessary to change their situation. Goombay Plaza is being developed
as a way to begin to channel negative trade to positive, to provide an anchor for jobs, and to iI
�1
encourage and attract traffic to shop for other than illicit goods. It represents the efforts of
unprecedented community reinvestment by and for the residents who are fed up with
continual deterioration. I
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e;v—
ZXTENT OF NEED FOR ASSISTANCE
For several years, the City of Miami and the Coconut Grove Local Development
Corporation, along with GUTS have been slowly investing in the acquisition for this projects,
but feasibility studies indicate that due to the location -based barriers, break-even points are
delayed further than for conventional projects. Requirements and projected costs clearly
indicate that without EDI assistance, the economic feasibility of Goombay Plaza will be
seriously impaired. Under the proposed plan, EDI funds will be utilized to provide debt
j service coverage during the critical 3 year start-up phase of the project, thereby relieving a
major barrier to the success of the project, with program income scheduled to provide the
balance of the funding for the remaining 12 year term.
Development Costs for this project are increased due to the nature and location of the
proposed site. Because of institutionalized disinvestment in the West Grove Target Area, the
i traditional methodology of development and acquisition costs versus final project value results
in appreciably lower appraised values due to the depression of the adjacent comparable real
estate. Traditional private sector financing therefore is not feasible.
Program Income projections are all based on Real Estate. Development Institute Date
Standard for the Hospitality Industry. In order to overcome the negative images and. criminal
activity concerns of the location, reinvestment of the program income in extensive marketing
programs and facility enhancements must occur during the critical start-up.period of years 1-3.
With EDI assistance, debt service will be defrayed during this crucial phase allowing for a
greater investment in the future of the project. Conservative projected sales of Goombay
Plaza are $2.4 million per year, allowing for occupancy costs, including debt service, of less
than 7 percent.
Proposed Budget
Land Costs $1,000,000
Pre -/Development Costs $ 671,000
Construction $1,938,000
Total $3,609,000
Proposed Funding Sources
Section 108 loan $2,000,000
EDI Grant $ 300,000
Equity $1,309,000
TOTAL $3,609,000
Underwriting Guidelines: Another unique aspect of Goombay Plaza is that the Development
Team consists of proven professionals with outstanding track ,records who are insistent that
the project cover all financial objectives that any standard market -rate development must
achieve. Financial projections of the 108 application therefore reflect a Business Plan and Pro
Formas which are market -driven with the specific location a primary consideration. In
addition, the CGLDC has already developed and is in the process of generating more than
$10 million in affordable housing and commercial development projects utilizing a mixture of
public and private sector financing.
`� N 0 17
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j THE EXTENT TO WHICH THE PROPOSED ACTIVITIES EFFECTWELY SUPPORT
IMPORTANT NATIONAL INTERESTS.
Goombay Plaza represents an important strategy for the revitalization of the West
Coconut Grove Area, as well as a model for effective redevelopment for similar inner-city
communities around the country. The destination Caribbean and Southern -theme Restaurant,
banquet facilities, and Bahamian Straw Market will provide over 100 direct and indirect full
time equivalency jobs for low and moderate income community residents as well as an on-
the-job training facility for the hospitality industry. The project will serve as one focal point
of the development efforts of the CGLDC, a neighborhood -based nonprofit organization j
serving the predominately low and moderate income. community. The success of this project
will promote the stabilization and revitalization of the West Grove community, becoming the
largest provider of jobs with the exception of the Public School and the illegal drug trade.
Over 40 percent of the residents of the West Coconut Grove Target Area live in
poverty, and the area's unemployment rate, already higher than the City's average, has tripled
in the last 10 years. Many of the jobs created by Goombay Plaza will be on the entry level,
providing excellent opportunities for entry in to the workforce for the area's unemployed,
most of whom have not completed a high school education or its equivalent and who do not
have the skills to compete for available jobs. Not only will these jobs be available to them,
but Goombay Plaza will also include job training facilities that will help residents acquire the 1�
skills necessary to successfully pursue and obtain other jobs within the restaurant and
hospitality industry, one of the most successful industries in the South Florida market.
There will also be opportunities for advancement'and promotion within the
employment sti-ucture of Goombay Plaza for low and moderate income neighborhood
residents, effectively achieving another national objective. The facility will be the largest
minority owned and operated restaurant_ nd' small convention facility in the City of Miami,
and with its commitment to the revitalization of the West Grove community and population it
will provide opportunities for advancement that may not otherwise exist for community
residents.
The property for the project was acquired by 20 area families (now incorporated as
Groveites United To Survive, or GUTS) who dreamt of renewing their neighborhood, of
making it a safe, viable community for their children and grandchildren. Goombay Plaza
therefore operates on a bottom line of community redevelopment, not profits, and represents
real community -based economic development. Projects such as this support national interests
in the provision of job opportunities for low income residents and redevelopment strategies
for impoverished community, but Goombay Plaza goes beyond these goals. It represents a
true community -based effort that avoids the problems of past government initiatives which
have relied on outside businesses to invest in and revitalize areas.
Goombay Plaza part of a comprehensive strategy for revitalizing the community while
insuring that community. ownership opportunities continue, that gentrification does not take
what is left of the West Grove and leave residents in a situation familiar to redevelopment
efforts across the county, where existing populations are "sold out, bought out and then
kicked out."
Goombay Plaza then supports a much broader sense of the important National interests
than narrow goals of job creation. The project seeks to reinvest in the pride and spirit of a
community, providing hope and a long term strategy and solutions from within.
Q C '� q
L
QUALITY OF THE PLAN
The Goombay Plaza project has been designed by the CGLDC in cooperation with the
City of Miami to achieve the following in the West Grove Target Area: 1) to halt the
deterioration and disinvestment, 2) to create jobs for low and moderate income residents, 3) to
expand the tax base, 4) to provide job training opportunities, :5) to overcome barriers to
participation for minorities in the visitor industry, 6) to promote commercial revitalization in
the business district, 7) to create business activity in vacant buildings to displace the illegal
drug trade, 8) to promote the safety of residents, visitors, and businesses through positive,
proactive security control of the physical environment, 9) to provide opportunities for
investment and participation for community residents, and 10) to provide a model for
successful development which can be replicated in other economically depressed communities.
Goombay Plaza will meet these goals, addressing the physical deterioration of the
community by revitalizing an important location in the history of the area, the old Tikki Club,
a popular night club in the Grove's heyday. It will face the community's worsening
conditions by helping instill a sense of pride in the heritage of the Grove by emphasizing the
food, music, art and entertainment of the Caribbean cultures.
Goombay Plaza will provide for the economic needs of the community directly,
expanding the tax base, development opportunities, and providing sorely needed jobs. The
project will create over 100 full-time equivalency jobs, but also will face the more
fundamental challenges. We recognize that with an undereducated and underqualified
population, simple job creation is not enough, so the project will also include a job -training
program to give residents necessary skills for competitive success in the hospitality and
restaurant industry. Opportunities for residents will not be limited to the 100 jobs in
Goombay Plaza, but will extend throughout the South Florida hospitality industry,• expanding
minority and low-income participation opportunities in one of the fastest growing and most
successful fields in the area.
From the inception of the project, Goombay Plaza has involved nationally known
restaurant creators in the areas of conceptual design, menu creation and physical design.
Goombay Plaza will be implemented by an experienced team which was directly involved in
the creation of Tutu Tango, a Coconut Grove restaurant so successful that it. is now being
developed as a national chain. These experts will develop Goombay Plaza in accordance with j
the most recent trends in the restaurant industry which point to the success of strongly themed
restaurants providing quality food at reasonable prices in a festive atmosphere,
But within this group of successful restaurant ideas, Goombay Plaza will be unique
because, it will rely on the cultural resources of the surrounding community for its inspiration
and its success. Goombay Plaza capitalizes on the historic use -of its own site, which was
formerly a popular attraction in the Grove, the reputation of the Greater Coconut Grove
community as a regional entertainment destination, the presence of the oldest Bahamian
settlement in Florida, and the area's need for a Black -owned restaurant and catering facility j
serving food and music in a decor and manner consistent with African -American traditions.
The total cost of development of the facilities will be approximately $3.6 million, $2
million of which will be from a section 108 loan, the rest from CGLDC, GUTS (a group of
Grove families dedicated to preserving their community), the City of Miami's Off -Street
Parking, as well as in -kind donations from area residents and businesses. Conservative
projected sales of Goombay Plaza are $2.4 million per year, allowing for occupancy costs
including debt service of less than 7 percent, allowing for a comfortable operating margin.
S_5-- '�3
THE CAPACITY OF THE PUBLIC ENTITY TO SUCCESSFULLY CARRY OUT THE
PLAN
The City of Miami has received Community Development Block Grant (CDBG) funds since
1975, It is presently in its 20th Program Year with a grant allocation for FY 1994-95 of
$13,681,000. Over the last 10 years, the City has also been able to generate over $20 million
in program income as a result of successfully administering the CDBG program. To date,
over $192 million in CDBG funds have been expended by the City on a myriad of programs
principally to benefit low and moderate income residents in eight so-called Target Areas, as
well, as on a Citywide basis.
The City of Miami is the third poorest city in the country among cities with a
population of less than 500,000; only Detroit and Laredo are considered poorer. Miami's
poverty rate is 32.5 percent. Despite these statistics, the City has been able to bring about
successful economic and community development in the poorest neighborhoods through i
housing activities, code enforcement, managing small ,business loans, and delivering social
services (including child-care, transportation for the elderly, meals programs, after -school
activities, recreational and educational projects, and job training.) In implementing these is
federally funded programs, the City has developed a high level of expertise in grants
management and project administration.
Among the specific projects and programs the City has administered to date are:
* Single and Multifamily Rehabilitation Loan Programs
* Emergency Shelter Grants ($1.5 million)
* Public Infrastructure Improvement Projects
* Community Facilities Development Programs
* New Housing Finance Programs
* Economic Development Programs
* Urban Development Action Grants
* HOME Grant Projects ($12 million),
* Housing Opportunities for Persons with AIDS (HOPWA) Grant ($10 million)
�- '73
A COMPREHENSIVE AND COORDINATED APPROACH TO REDEVELOPMENT
The Coconut Grove Local Development Corporation has exhaustively studied the West
Grove Community, both its resources and disadvantages, and we are implementing
development strategies in a comprehensive, holistic manner. Although CGLDC was chartered
as an economic development entity, the broad -based approach has proceeded.with emphasis in
the following key areas:
Residential Development: We believe that programs in this area can only be successful
through the stabilization of the declining residential community. Agency priorities were
formulated towards stopping the slide of residential property values while providing home-
ownership opportunities for low-income families. We have been successful in accomplishing
these goals through the development of two phases of our award -winning Grove Point
housing development which has provided home ownership for 32 low-income families.
Rehabilitation: Rehabilitation of single family homes was sorely needed in the West Grove '
and direct intervention by the City of Miami and CGLDC in 84 homes, over 20 percent of the
single-family homes in the area, has served to stabilize the local housing stock... CGLDC ,has
also assisted in the rehabilitation of several multi -family residential buildings, and has worked 10
with both private and public sector financial institutions to upgrade these units.. 1
Business and Economic Development: CGLDC provides technical assistance and support to
local businesses and has been successful in attracting over 10 businesses to the area.,
providing job opportunities and needed services for community residents. We are currently
under construction with our Small Business Incubator project, which will provide on -site
technical assistance and support to 9 developing businesses for a three to five year. start up.
period. We have also implemented a Cityof Miami facade program, renovating over 15
buildings along the Grand Avenue corridor and are planning to complete 10 more renovations
within the coming year.
Recapture of absentee ownershiQ: CGLDC initiated a demonstration -project to achieve an.
unprecedented goal n community redevelopment, namely repurchase of -community real estate
assets through black family capitalization. By helping formulate the .Goombay. Plaza,
development project and providing technical advice, -support and assistance, CGLDC helped to
incorporate Groveites United To Survive (GUTS), a group of 20 black families from. all walks.
of life who pooled $5,000 per family. The $100,000 raised was utilized to leverage.
acquisitions of two significant properties located at the major intersection of the West Grove
community, that of Grand Avenue and Douglas Road. With a loan to the group of $230,000,
the City of Miami provided additional capital for acquisitions.
The properties acquired were a Phillips 66 gas -station site, since demolished and,
converted to green space, the 50-year-old Tikki Club, a famous 15,000 square foot night club,
and four adjoining lots to the rear of these properties.
The Goombay Plaza project fits in to our comprehensive strategy by providing jobs,
opportunities for development of successful, community -owned businesses, as well as
providing an anchor for a viable business community. It's success will rely on -and contribute
to the successful redevelopment of the surrounding community, supporting and helping insure
the success of our other development initiatives.
Q5- E'73
INNOVATION AND CREATIVITY
Goombay Plaza represents a ,new concept in community development, one that offers a
resolution to the conflicts that normally occur between development projects and existing
communities. For too long, inner-city development strategies have ignored and marginalized
the residents of the very areas they were designed to help. We seek to avoid these problems
by assisting a project that is truly community -based, relying on the" resources, motivation and
ideas of community residents.
Inner city areas are often threatened by gentrification, particularly if they are bordered
by up -scale business and residential areas as is West Coconut Grove. Many times,
community development projects have served to encourage, rather than discourage these
forces, with a resulting displacement of the community. The CGLDC, however, sees its main
goals as community preservation along with development. Our efforts are tailored so that
residents are encouraged to reinvest and take ownership of their own community. Through
our housing programs and business development strategies we try to encourage community
ownership because we feel this is the only way to insure that the integrity of a community is
maintained.
Goombay Plaza represents a culmination of this innovative philosophy because it is
owned by the community. Twenty families organized a corporation called GUTS (Grovites
United To Survive) in order to invest in and protect their land and the land of their families
while seeking to develop it for the good of their community. The success of Goombay Plaza
and of the community are inextricably linked. This is not a typical urban renewal.project
coming from outside, but a project motivated from within. It is the ideal public/private
partnership, in that the private corporation involved is made up of community residents, with .
the benefit of the community at heart.
Goombay Plaza represents a creative solution in that it will not only provide
immediate job opportunities, but also will create on-the-job training programs so that skills
can be developed and opportunities for advancement will exist, both within the Goombay
Plaza employment structure and within any number of jobs available in the service/restaurant
industry. The provision of job opportunities, while an immediately tangible goal, often means
little if these opportunities are not accompanied by programs that make them accessible,.not
only available, for community residents. But, the advantages of Goombay. Plaza go- beyond
the area benefits, including the creation of over 100 jobs, the attraction of tourist traffic (the
largest ,South Florida industry), and the improvement of neighborhood conditions..It will .
show the community that it can create, support and maintain ownership of successful projects,
playing'a fundamental role in its own development.
The City of Miami, throughout the history of this project, has continuously supported
these development efforts and has been a committed source of financial support and technical .
assistance for CGLDC. Through the efforts of the City, U.S. HUD has also provided
technical assistance through regional offices in Jacksonville and through TONYA, a HUD
consultant organization. It appears that there is a general agreement from these entities that
this fresh, holistic approach to community development focusing on empowerment and
ownership, may lead to structural change in the declining economy of the West Coconut
Grove Target Area,
I - C'y3
11
ai11L'S Grove
Crack
ice: Why isn't this
infuriating?
?MON COCONUT GROVE TO MOST
iiamians and they'll think of the
kmwalk—a trendy, multilevel mall
round an ersatz Mediterranean pla-
n the chichi sidewalk tables of its
i Sci, in less time than it takes for a
rofutti to melt in the midday sun,
make the one -minute trip to anoth-
t-air bazaar —in the small park on
avenue. "Got boy, boy here," says a
of young black men as if they were
peanuts at the ballpark. "Boy,"
means heroin and is $15 a "cap,"
Ir capsule, enough "to keep you re -
wen or eight hours," says a 19-year-
nite buyer. Prefer crack cocaine
"girl") or pot? That's so prevalent
ters don t bother to hawk it. And
the Cocowalk mall, here you don't
we to get out of your car to do busi-
'he gold -chained merchants come
-1. "Hey, guys," one asks. "What do
,ne optimistic about the War on
ought to contemplate Coconut
the now infamous place where Jen-
apriWs•tennis career went up in
Last month. Under the eye of one of
-st aggressive law -enforcement sys-
t the nation, the Grove is a seeming
assment—a. veritable mEaketplace
al drug traffic known to all, yet shut
Iy no one. Even the squeegeemen on
tsewdys to Miami Beach get hassled
,y the ceps.
Grove is hardly unique; Boston
ssion Hill, Los Angeles has the Pico -
area and tourist guidebooks all but
Ie permanent "smoke -sellers" who
!ir trade in New York: City's Wash -
Square Park. But Coconut Grove is
more a contradiction because it in -
,some of Miami's most expensive
Mate, featuring the bayfront man-
nf Madonna and Sylvester Stallone.
weekends, its wild party scene at -
high -school and college kids to the
rid clubs along the main drag. De-
iese upscale, legal activities —maybe
.e of them —the Grove remains a hill-
: drug mart. "For a kid," says one
-earby Coral Gables High School,
:asier to score crack than beer.
Black Grove the guys don't ask,
:ee some ID'."
PHI LU PPE DI ED ERIQi
much else we can do': One
ps on nighttime patrol works
Fthe Coconut Grove
.zami map (inset)
The Black Grove is the old-fashioned
black ghetto, settled by Bahamians at the
turn of the century, that is wedged into a
fashionable Miami suburb. Many ofits esti-
mated 4,600 residents —about a quarter of
the Grove as a whole —are old-line middle-
class homeowners who resisted Yuppie
gentrification. But in a matter of yards
along Grand Avenue, the ambience goes
from quaint cottages to battle -scarred pub-
lic housing. And, aside from what amounts
to a bonder patrol that keeps places like
Cocowalk secure, the police stick to their
squad cars, leaving the dealers to run the
streets. "For two years, there was a crack
house right next to mine," says Melanie
Pasley-Thomas, a Black Grove activist "I
complained to the city and nothing hap-
pened. The only reason they're gone now is
that they finally burned themselves out"
`Middle-class druggies': Most of Coco-
nut Grove has accommodated itself to the
drug trade in its midst. Police officials
blame their limited showing on manpower
shortage and higher law -enforcement pri-
orities elsewhere —like keeping unsuspect-
ing tourists safe from crime. As in other
cities, Grove businessmen and wealthy
white homeowner groups protect them-
selves by hiring off -duty tops to ward off
break-ins and car theft —most of it by local
drug users. But if they want help from the
authorities, they're in trouble. "if I hadn't
told the police Jennifer Capriati was in that
hotel room, they wouldn't have done an -,-
thing," says Carmen Branagan. -,vbose 17-
year-old daughter was arrested in the Ca-
priati bust on. charges of heroin possession.
if it had just been my kid, they would have
laughed —another -bunch of .middle-class
druggies, partying in the Grove." The police
themselves don't deny they're largely impo-
.tentt "There's ..not much else we can do;'
.says spokesman Angelo Bitsis. At any one
time, about 20 cops patrol the Grove, but
only a handful :anywhere near the diug
mart. "We can't go in there like an occupy-
ing army," says one patrolman. In the Black
Grove itself Pasley Thomas says, the atti-
tude is "see no evil, speak no evil."
The most striking aspect of Coconut
Grove and other drug zones is their•seem
ing intractability. "We've created street -
level drug markets that become almost im-
possible. to police, ' says Prof. Lynn
Zimmer of Queens College in New York
City. Research by -New York's Vera Insti-
tute of Justice, shows that even massive,
assaults by police on drug marts win, few
lasting victories.. Nonetheless, Washington
is making noise about new efforts to crack
down on places like Coconut Grove. The
new chief of. the Drug Enforcement Ad-
ministration, Thomas Constantine, is ex-
•pected.to announce plans to shift the war
back to pushers in the streets. In the
Grove, they cant be very optimistic. Three
days after the Capriati arrest, federal
agents concluded a two-year investigation
with a dawn raid on two Grand Avenue -
based drug rings. By afternoon, the dealers
were back in the park.
SPENCER REISS and PETER KATEL in
Coconut Grovewith BRUCE SIIENIrz in New York
JUNE 13, 1994 NEWSWEEK 63
9) 5 - C
U
PROJECT DESIGNERS/PARTICIPANTS
Management Group, Inc.
Restaurant & Hospitality Consultants
Tgkki Project
Grand Avenue and Douglas Load
Coconut Grove, Florida
7814 NAV. 72nd Avenue • Miami, Florida 33160 • Phone: (305) 8874893 • 1�ax: (305) 887-1>23
CONTENTS
I. Ace Management Group Of Miami) Incorporated
IT. The Concept
Ill. Letter of Intent
V 3
kce Management Group of Miami, Incorporated
\ce Managerrrent Group of Miami, Inc. was founded in 1993 by its principals with the
Lntbition to create, develop and managed high volume, casual theme dining and
:ntertainment establishments. Ace Management Group of' Miami , Inc. consisting of Fred
:Ueda, Wesley A. Skyers, and Adrian E. Aymei cli are experienced casual theme
estaurateurs with a total of 25 years experience. Two of the three principals are long
true directors of the Florida Restaurant Association; Dade Chapter.
we Management is committed to excellence in the restaurant management profession,
ocruiting and hiring, bookkeeping and accounting, budgeting, system design and
nalysis, organizational development, personnel training, and menu formulation. In most
istances, a special team is formed to develop a comprehensive project evaluation. Each
roject is individually assessed and recommendations are tailored to meet the specific
Beds; thereby providing our clients with a diversity of input resulting in a better and
tore inclusive product. This comprehensive approach is consistent with Ace
7anagement's view that most problem resolutions or operational opportunities are
iultifaceted in nature.
roject Examples:
Jho's Songs' and Larry's Dalt's Restaurant
t. Lauderdale, FL Long Island, NY
1 Torito, Inc. Dalt's Restaurant
felbourne, FL Miami, FL
.G.I. Friday's Dalt's Restaurant
Ielboume, FL Atlanta, GA
.G.I. Friday's Dalt's Restaurant
Hand, FL Alexandria, VA
.G.I. Friday's Cafe Tu Tu Tango
oca Raton, FL Coconut Grove, FL
.G.I. Friday's Big City Fish
Dng Island, NY Coconut Grove, FL
G.I. Friday's Dan Marino's American Sports Bar & Grill
atlas, TX Coconut Grove, FL
0r, C173
The Concept
The "Tikki" Cale will offer an astonishing Val-ICty of multicultural events. It could be an
old style Colonial Caribbean Home, or using the existing building, add bright colors
windows and porches. It can be considered an entertainment style restaurant with live
shows an exotic background stage that can be viewed from booths, tables, and the bar.
Imagine blues, jazz, or reggae and calypso being played while people are eating as the
energy grows, people begin to dance. To enhance the guest* experience the use of an
exposition kitchen will allow guests to enjoy the culinary Cultru•es of at least a dozen
different nations. The display and sale of items such as arts and crafts, music
memorabilia, t-shirts, cookbooks, recipes, postcards, posters, flowers, etc... will be a
major part of this concept.
BUILDING: (new construction)
C 10,000 sq./ft. Colonial / English style home
• Wood exterior with detail design of arches
• Wood floor porch entrance with red brick steps
• Wood framed windows
• Outside patios with bright Caribbean colors
(use of existing building)
• Add arches
m Add windows and bright colored shutters
• Add patios
Install Atrium
• Design second floor interior with view of first floor and stage
• Colors: Bright Caribbean colors
INTERIOR DECOR:
• Dark wooden floors
• Soft briglit colored walls
• Primitive Afro-American and Caribbean paintings (slavery, construction, farming,
etc.)
• EnterIainment piClrlrCS
• Sports pictures
• furniture, banquets, tables, and chairs finished in dark colors
9 15 — C73
__j
STAG E:
• Multifunctional capability
• Rcd brick background
• Periodically challgllig themes
• Small dance Boor located hear stage
I3AR:
• Rustic and exotic design in a tropical setting
• Shack style ceiling and over -hang
• Beer cooler island display with wood triiinlning
• Artifacts for bar decor will be collected from guests
• Serving tropical drinks (Goombay Smash, Bahama A•lama, Rum Runner, Etc...)
MENU:
• Reasonably priced food
• From the Caribbean: Jamaican: Curry and jerk dishes
Bahamian: conch dishes, boiled fish, breads
Trinidad and Tobago: curry dishes, rottie
Afro-American: soul foods, BBQ
STYLE OF SERVICE:
• Full menu table service restaurant
• Fun, friendly, fast service by warm attractive people
ENTERTAINMENT:
• Live bands
• Music (reggae, jazz, blues, calypso, soul, Latin)
• Comedy shows
• Dance shows (tap dance, modern dance, Afro -Caribbean)
• Contests (guest involvement)
GIFT COUNTER:
• Sale of T-shirts, recipes, cookbooks, post cards, music, hand crafts, books, posters,
etc...
9L- W7
I
Rce
Management Group, Inc.
Restaurant & Iiotipitality Consultants
October 18, 1994
Local Development Corporation
Mr. David Alexander
3552 Grand Avenue
Miami, FL 33133
Dear Mr. Alexander,
Ace Managerent Group of Miami, Inc. are professional restaurateurs with a total of 25 years of
experience. It is our intention to collaborate with the Coconut Grove Local Development
Corporation in the conceptualization of the Tikki Cafe Project. Ace Management will work as a
liaison for architects, engineers, and the construction firm. We will also source, develop and
implement all of the following restaurant systems:
Product Planning and Development: Create, test, and develop all food and beverage items
for menu. We will source, develop, and implement inventory and cost systems. Along with
this we will set up daily reporting and accounting procedures.
Human Resources: Recruit, Hire, train, motivate, and develop all personnel including
management.
Public Relations: We will supervise media related issues throughout all phases of
construction. This will include project marketing, special events, promotional activities and
press releases.
Vendor Selection: We will select all vendors: food, beverage and others. Selection & set-up
of Point -of -Sale systems. Implementation of a "bidding" system for all purchases as well as a
structured and organized receiving system.
Entertainment: Select, coordinate, and schedule all entertainment.
Catering and Banquet: Planning, controlling, and implementing all aspects of functions
Further information on this projects available from Ace Management Group of Marta,
Incorporated.
Cordially,
\�reslc A. Skycrs `
President
7814 N.W. 72nd Avenue • Miami. Florida 33166 • Phone: (305) 8874895 • Fax: (305) "7-1528 v r _, C 7 3
+ A S S O C I A T E S
October 21, 1994
Mr. David Alexander
Executive Director
Coconut Grove Local Development Corporation
P.O. Box 330075
Miami, PI 33233-0075
Dear Mr. Alexander,
This letter is to confirm Steiner + Associates' commitment to the success of the Goombay. Plaza
development project. We have been involved in the process for several years now, and look forward to
moving towards completion once final financing has been secured.
We feel that this project represents a replicable model for true community redevelopment, in which the
historical and cultural assets of the community are leveraged into destination retail development owned
and operated by the community. In this approach the residents are empowered to take part in the
revitalization of their own community using assets exclusive to them.
Steiner + Associates is committing an in -kind donation in predevelopment coordination to the project,
and we look forward to working together with you and with the community toward its success.
Sincerely,
Uomir Steiner
YS/]c
,6173
1665 SOUTH BAYSHOR( DRIV( SUIT( 6Di M1a4t'. 1DA 13113 1EiE7ri'.. •r_`S PSI 4
October 21, 1994
Mr. David Alexander
Coconut Grove Local Development Corporation
P.O.Box 330075
Mianfi, FL 33233-0075
Dear Mr. Alexander:
This letter is to confirm Constructa's commitment as defined in our 6/3/93 agreement
and its amendment of 8/24/93, to participate in the Goombay Plaza development project. We
are looking forward to working on the project as we feel it will be a real asset for the West
Coconut Grove community and we serve as an anchor for successful redevelopment.
Constructa is dedicating in -kind development and construction supervision services to the
project, which we believe to be a replicable model for community -based redevelopment
projects in similar neighborhoods around the country.
We look forward to working together with you on this project for the benefit of Coconut
Grove and the City of Miami as a whole.
Sipcerely,
Jean -Marc Meunier
Executive Vice President
JMM/pb
n�. .� I.. !r :r •. � ��..� I: !� ��• I>: .-�: il• i11.. .. .. � ��.,., lI. i it :11-i, :i.`,;�. ','�. L�1 I'.i.� :1 )r �%. � • 617
I V v
deferred
24 October, 1994
Mr. David J. Alexander
Executive Director
COCONUT GROVE LOCAL DEVELOPMENT CORPORATION
P.O. Box 330075
Coconut Grove, Florida 33233-0075
Dear Mr. Alexander.:
This letter is to offer Deferred Compensation's participation in the
Goombay Plaza development project. We are committed to this project
because we feel it represents a positive opportunity for redevelopment
in the West Grove Community.
I Deferred Compensation will be dedicating in -kind investment and
I financial consulting services to the project in order to help offset
i expenses.
We believe that the Goombay Plaza project represents a true community -
based initiative which can serve as an anchor for the future revitalization
of the West Grove community.
1
We look forward to working together with you on this important project for
the benefit of the community as a whole.
r
1
I
i
Sincerel
le
i Lo w.s G. Wechsler
President
J - C7