HomeMy WebLinkAboutR-95-0861i
J-95-1007
11/28/95
RESOLUTION NO.9 8
61
A RESOLUTION, WITH ATTACHMENT, AUTHORIZING
THE CITY MANAGER TO PREPARE AND SUBMIT AN
APPLICATION TO THE UNITED STATES DEPARTMENT
OF HOUSING AND URBAN DEVELOPMENT (HUD), ON
BEHALF OF DADE FOREIGN TRADE ZONE, INC.,
(DFTZ) FOR SECTION 108 LOAN GUARANTEE
ASSISTANCE IN AN AMOUNT NOT TO EXCEED $4.5
MILLION ("SECTION 108 LOAN"), FOR THE PURPOSE
OF FINANCING THE DEVELOPMENT OF PHASE II OF
THE WYNWOOD FOREIGN TRADE ZONE COMPLEX;
AUTHORIZING THE CITY MANAGER AND THE CITY
ATTORNEY TO PREPARE THE NECESSARY
DOCUMENTATION PROCESS; FURTHER AUTHORIZING
THE CITY MANAGER TO EXECUTE AN AGREEMENT, IN
SUBSTANTIALLY THE ATTACHED FORM, WITH DFTZ
SETTING FORTH THE TERMS AND CONDITIONS UPON
WHICH DFTZ WILL BE PERMITTED TO RECEIVE THE
SECTION 108 LOAN GUARANTEE ASSISTANCE
WHEREAS, the City of Miami, Florida is committed to
assisting private investments that will create new jobs and
remove slum and blight in the designated Community Development
Target Areas; and
WHEREAS, the Wynwood Foreign Trade Zone Complex is located
within the Wynwood target area; and
WHEREAS, the proposed project is a privately initiated
effort which will revitalize approximately 16 acres to create an
industrial park and free trade zone on the site and provide low
and moderate income individuals with employment opportunities;
("Project"); and
ATTACHMENT (Si
:CONTAINED
L
CITY COMbUSSION
MEETING OF
DEC 0 7 1995
Resolution No.
95- 861
WHEREAS, it is quite difficult to finance the Project
through the conventional financing means; and
WHEREAS, the City, on behalf of Dade Foreign Trade Zone,
Inc. ("DFTZ"), the Project's developer, received Section 108 Loan
Guarantee` Assistance in the amount of $5.5 million for the
financing of the development of Phase I of the Project; and
WHEREAS, DFTZ has requested additional Section 108 Loan
Guarantee Assistance in the amount of $4.5 million ("Section 108
Loan") for the purpose of financing the development of Phase II
of the Project; and
WHEREAS, repayment of the HUD Section 108 Loan shall be made
from revenues generated by the Project; and
WHEREAS, DFTZ will collateralize the Project in accordance
with HUD guidelines, so as to minimize the impact on future
Community Development Block Grant allocations, which must be
pledged as collateral for said Loan; and
WHEREAS, the proposed Agreement with DFTZ, attached hereto,
sets forth the terms and conditions upon which DFTZ will be
permitted to receive the Section 108 Loan.
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the
i
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
prepare and submit an application to the United States Department
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95- 861
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of Housing and Urban Development, on behalf of Dade Foreign Trade
Zone, Inc., for Section 108 Loan Guarantee Assistance, in an
amount not to exceed $4.5 million, for the purpose of financing
the development of Phase II of the Wynwood Foreign Trade Zone
Complex.
Section 3. The City Manager and the City Attorney are
hereby authorized to prepare the necessary documentation to
complete the application process.
Section 4. The City Manager is hereby further authorized to
execute the Agreement with Dade Foreign Trade Zone, Inc., in
substantially the attached form, setting forth the terms and
conditions upon which DFTZ will be permitted to receive the
Section 108 Loan Guarantee Assistance.
Section 5. This Resolution shall become effective
immediately upon its adoption.
PASSED AND ADOPTED this 7th day of December 1995.
STEPVEN P. CLAR , MAYOR
ATTEST:
WALTER F'iRkAN
CITY CLERK
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PREPARED AND APPROVED BY:
LINDA KELLY KEARSQIN
ASSISTANT CITY ATTORNEY
LKK/pb/W449
APPROVED AS TO FORM AND
CORRECTNESS: 10
A!
CI
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95-- 861
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AGREEMENT
This Agreement is made entered into this day of
1995 by and between the City of Miami, a municipal
corporation ("City") and Dade Foreign Trade Zone, Inc., a Florida
corporation ("DFTZ").
WHEREAS, DFTZ is the developer of the Wynwood Foreign Trade
Zone in the City of Miami; and
WHEREAS, the City has on behalf of DFTZ, for the purpose of
constructing the Wynwood Foreign Trade Zone, applied for a
$5,500,000 Section 108 loan with HUD (the 11$5,500,000 HUD Loan");
and
WHEREAS, the DFTZ and City desire to apply for an additional
$4,500,000 Section 108 loan with HUD, subject to certain terms and
conditions contained herein;
WHEREFORE, the parties agree as follows:
1. City shall, in cooperation with DFTZ, use its best
efforts to immediately apply for a $4,500,000 Section 108 loan with
HUD (the 114,500,000 HUD Loan"). At the option of DFTZ the
application for the said the $4,500,000 HUD Loan shall be either an
amendment to the $5,500,000 HUD Loan application or a new loan
application for $4,500,000.
2. In the event the $4,500,000 HUD Loan is approved by
HUD, DTFZ agrees to the following conditions:
a. DFTZ shall not draw any funds from the
$4,500,000 HUD Loan until it has entered into bona fide leases with
third party tenants for aggregate space at the Wynwood Foreign
Trade Zone of at least 77,500 square feet at an average rental rate
of no less than $5.00 per square foot.
b. The land recently purchased by DFTZ from the
Bank of India and legally described in Exhibit A hereto shall be
encumbered by a first mortgage in order to secure the repayment of
the $4,500,000 HUD Loan.
3. This Agreement shall be interpreted and enforced in
accordance with the laws of the State of Florida.
4. In the event of any litigation concerning the
interpretation or enforcement of this Agreement, the prevailing
party shall be entitled to be paid its reasonable attorney's fees
and court costs from the losing party.
95- 861
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95- 861
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM '
TO The Honorable Mayor and DATE November 29, 1995 FILE
Members of the City Commission
SUBJECT
Wynwood Foreign Trade
Zone Complex
FROM : REFERENCES:
Ces
City er ENCLOSURES:
Recommendation
It is recommended that the City Commission adopt a resolution which authorizes the
City Manager to prepare and submit an application to the United States Department of
Housing and Urban Development (HUD), on behalf of Dade Foreign Trade Zone, Inc.,
for Section 108 Loan Guarantee Assistance in an amount not to exceed $4.5 Million for
the purpose of financing the development of phase Il of the Wynwood Foreign Trade
Zone Complex; and further authorizing the City Manager and the City Attorney to
prepare the necessary documentation process and execute an agreement, in substantially
the attached form, with DFTZ setting forth the terms and conditions upon which DFTZ
will be permitted to receive the Section 108 Loan Guarantee Assistance.
Background
Due to the commitment by the City of Miami in assisting private investments that will
create new jobs and remove slum and blight in designated Community Development
Target Areas like Wynwood, the location of the Wynwood Foreign Trade Zone
i Complex.
i
The City of Miami will fulfill their commitment to these Target Areas by becoming
involved in the proposed project which is a private initiate effort which will revitalize
approximately 16 acres to create an industrial park and free trade zone on the site and
provide low and moderate income individuals with employment opportunities. Due to
the difficulty in financing this Project through the conventional means, The City, on
behalf of Dade Foreign Trade Zone, Inc., the Project's developer, received Section 108
Loan Guarantee Assistance in the amount of $4.5 million ("Section 108 Loan") for the
purpose of financing the development of Phase H of the Project; and DFTZ will
collateralize the Project in accordance with HUD guidelines. Therefore, I respectfully
request that the City Manager be authorized to prepare and submit an application to HUD
and to also execute an agreement, in substantially the attached form, with DFTZ setting
forth the terms and conditions upon which DFTZ will be permitted to receive the Section
108 Loan Guarantee Assistance.
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