HomeMy WebLinkAboutR-91-0012J-91-14
12/26/90
RESOLUTION NO. y1. 12
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
EXECUTE AN AGREEMENT, IN A FORM ACCEPTABLE TO
THE CITY ATTORNEY, WITH THE PRINCIPALS OF
Z-MART DISCOUNT DEPARTMENT STORE, INC., IN AN
AMOUNT NOT TO EXCEED $200,000, FOR THE
PURPOSE OF REHABILITATING, RENOVATING AND
PURCHASING INVENTORY FOR THE Z-MART DISCOUNT
DEPARTMENT STORE LOCATED AT 1100 NORTHWEST
54TH STREET; FURTHER PROVIDING FOR THE
ALLOCATION OF FUNDS IN THE AMOUNT OF $200,000
FROM THE COMMUNITY DEVELOPMENT BLOCK GRANT
FUND (MINI-UDAG PROGRAM).
WHEREAS, the City Commission is committed to economic
development and the expansion of trade and commerce; and
WHEREAS, the promotion of economic revitalization in the
neighborhoods of the City of Miami is an important part of the
' City's economic development strategy; and
WHEREAS, a major department store, in the Liberty City
neighborhood, has closed thereby impacting the availability of
goods, services and employment in the target area; and
WHEREAS, the Black Economic Development Coalition (a/k/a
Tools for Change) has assisted in the preparation of a business
package to secure financing for the proposed Z-Mart Discount
Department Store, Inc. in Liberty City; and
WHEREAS, the proposed location will be 1100 Northwest 54th
Street, and will occupy 63,000 sq. ft. of space; and
WHEREAS, the proposed owners of the Z-Mart Discount
Department Store, Inc. are minority entrepreneurs; and
WHEREAS, the total project cost is approximately $1,763,000;
and
WHEREAS, the Z-Mart Discount Department Store, Inc. will
employ approximately 80 persons and have an annual payroll of
$652,000; and
WHEREAS, the City of Miami will provide in the form of a
loan, $200,000 from the Community Development Block Grant - Mini-
• �x
AMSYDED
BY 3 �'
CITY COMMISSION
-, MEETING OF
JAN 10 1991
i
UDAG Program fund, to the principals of Z-Mart Discount
Department Store; and
WHEREAS, the allocated sum of $200,000 will be made
available, contingent upon the terms specified herein; and
WHEREAS, the City of Miami's commitment shall be for a six
(6) month period;
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 and hereby adopted by reference
thereto and incorporated herein as if fully set for the in this
Section.
Section 2. The City Manager is hereby authorized to execute
an agreementi/, in a form acceptable to the City Attorney, with
Z-Mart Discount Department Store, Inc., for the purpose of
working capital, fixed assets, and purchasing inventory for
Z-Mart Discount Department Store, Inc., located at 1100 Northwest
54th Street.
Section 3. The amount of $200,000 is hereby allocated to
the Z-Mart Discount Department Store, Inc. from the City's
Community Development Block Grant-Mini-UDAG Program fund.
Section 4. The City Manager is hereby authorized to
obligate and encumber for a six (6) month period, funding for the
Z-Mart Discount Department Store, Inc., subject to ccn.ditional
requirements and terms stated herein:
Organization: Z-Mart Discount Department Store, Inc.
Total Cost: $1,763,000
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.
Terms: City's allocated loan amount shall be
$200,000, repayable by being amortized
over ten (10) years. The loan shall bear
interest at a rate of six percent (6%)
annually. Further, there will be a
moratorium on principal and interest
during one year.
Section 3. This Resolution shall become effective
immediately upon its adoption.
PASSED AND ADOPTED this loth day of JanuM& _, 1991.
ATT"_ 1-0011,
MATTY-HIRAI
CITY CLERK
COMMUNITY DEV-BL- ENT REVIEW AND APPROVAL:
FRANK WTA.NWA, DIRECTOR
DEPARTMENT OF COMMUNITY DEVELOPMENT
FINANCE DEPARTMENT REVIEW AND APPROVAL:
6 Z-;eL 2 — -
CARL . GARCIA, DIRECTOR
DEPARTMENT OF FINANCE
BUDGETARY REVIEW AND APPROVAL:
i
MANOHAR S A, DIRECTOR
DEPARTMEN BUDGET
PREPARED AND APPROVED BY:
j.
ALBERTINE B. SMITH
CHIEF ASSISTANT CITY TTORNEY
APPROVED�S TO FORM AND CORRECTNESS:
DRGE L. ERNANDEZ
ITY ATTO NEY
AQJ/gfa/M1955
XAVIER Ll SU
- 3 - 91- 12
Ej
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
CA=15
Honorable Mayor and Members
To: of the City Commission
FROM : Cesar H. Odi
City Manager
''Pt "-
RECOMMENDATION:
DATE : JAN - 21991 FILE :
Resolution authorizing the
susiECT: City Manager to enter into
contract with Z-Mart Discount
Department Store, Inc.
REFERENCES:
ENCLOSURES:
It is respectfully recommended that the City Commission adopt the
attached Resolution authorizing the execution of a contract
agreement, in a form acceptable to the City Attorney, between the
City of Miami and Z-Mart Discount Department Store, Inc., for the
purpose of rehabilitating the proposed store and purchasing
inventory, in accordance with the terms and conditions as set
forth herein.
BACKGROUND:
The Department of Community Development (DCD) has analyzed the
need to obligate funding in the amount of $200,000 to the
principals of Z-Mart Discount Department Store, Inc. The Black
Economic Development Coalition (BEDC) (a/k/a Tools for Change)
has assisted three (3) minority entrepreneurs who are former
Zayre/Ames Store Managers, in securing the space vacated by Ames
Department Store (formally Zayres) located at 11.00 N.W. 54th
Street. In addition to acquiring the lease, the Black Economic
Development Coalition and Z-Mart principals have also obtained
financing commitments for the renovation and operation of the
proposed department store.
Z-Mart Discount Department Store, Inc., will occupy 63,000
sq. ft. and employ approximately 80 persons and have an annual
payroll of $625,000. Z-Mart Discount Department Store, Inc. will
primarily serve the trade area bounded by N.W. 32nd Avenue on the
West, North Miami Avenue on the East, N.W. 20th Street on the
South, and N.W. 95th Street on the North.
C A-1S -/
91- 12
t f,
Honorable Mayor and Members
of the City Commission
Page 2
Financing for the proposed Z-Mart Discount Department Store will
be a combination of public/private financing. A breakdown is as
follows:
* Commercial Bank Loan (SBA Guaranteed) $ 833,000
* Commercial Bank Line of Credit 275,000
* Miami Capital Development, Inc. 300,000
* City of Miami 200,000
* Owners Equity Injection 125,000
TOTAL $1,733,000
The City of Miami's loan commitment will be based on the
following terms:
Loan Amount: $200,000
Interest Rate: 6% per annum
Maturity: 10 years from first disbursement
Amortization: 10 years
Moratorium: 1 year moratorium - principal and
interest
Due to the stringent and unfavorable loan requirements imposed by
the Business Assistance Center (BAC) on this project, the City's
financial commitment replaces that of the Business Assistance
Center, thereby providing Z-Mart Discount Department Store, Inc.
an opportunity to be successful.
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