HomeMy WebLinkAboutR-90-0951J-90-1011
11/27/90
RESOLUTION NO. 9 0" 961
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
EXECUTE AN AGREEMENT, IN A FORM ACCEPTABLE TO
THE CITY ATTORNEY, WITH MIAMI CAPITAL
DEVELOPMENT, INC. (MCDI), FOR THE PURPOSE OF
MANAGING AND ADMINISTERING A $1,000,000
LITTLE HAVANA BUSINESS DEVELOPMENT PROGRAM;
REALLOCATING $200,000 IN MCDI'S SIXTEENTH
(16TH) YEAR COMMUNITY DEVELOPMENT BLOCK GRANT
REVOLVING LOAN FUND PROGRAM FOR SAID LITTLE
HAVANA BUSINESS DEVELOPMENT PROGRAM; FURTHER
ALLOCATING AN ADDITIONAL $800,000 FROM THE
ECONOMIC DEVELOPMENT/PHYSICAL IMPROVEMENT
PROJECT POOL FUND (MINI-UDAG) FOR SAID LITTLE
HAVANA BUSINESS DEVELOPMENT PROGRAM.
WHEREAS, the City Commission is committed to economic
development and a multifaceted strategy to stimulate
redevelopment in the Little Havana target area; and
WHEREAS, on April 12, 1990, the City Commission approved
Resolution No. 90-300 and appropriation Ordinance No. 10727 which
included an allocation to Miami Capital Development, Inc. of
$690,000 to increase its existing revolving loan fund; and
WHEREAS, the City Commission adopted Resolution No. 86-914,
establishing the Economic Development/Physical Improvement
Project Pool Fund (Mini-UDAG) for the purpose of providing
financial assistance to not -for -profit and/or for -profit entities
in its neighborhood commercial areas; and
WHEREAS, it is in the interest of the City that Miami
Capital Development, Inc.'s revolving loan fund activities should
continue and be expanded for the purpose of economic development;
and
WHEREAS, the monies reallocated from Miami Capital
Development, Inc.'s revolving loan fund in the amount of
$200,000, together with the additional $800,000 from the Economic
Development/Physical Improvement Project Pool Fund (Mini-UDAG)
CITY COMMISSION
MEETING OF
DEC 6 1990
90- 951
will be used to create a $1,000,000 revolving loan fund for
business development in the Little Havana target area; and
WHEREAS, said business development program will be
implemented by Miami Capital Development, Inc. on a match basis,
with loan requirements, terms and conditions, as prescribed by
the City of Miami and Miami Capital Development, Inc.;
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
execute an agreement, in a form acceptable to the City Attorney,
with Miami Capital Development, Inc. (MCDI) for the purpose of
managing and administering a $1,000,000 Little Havana Business
Development Program.
Section 3. An amount of $200,000 of the previously
appropriated $690,000 to Miami Capital Development, Inc., from
its Sixteenth (16th) Year Revolving Loan Fund Program is hereby
reallocated to be used for the Little Havana Business
Development Program.
Section 4. An amount of $800,000 from the City of
Miami's Economic Development/Physical Improvement Project Pool
Fund (Mini-UDAG), is hereby allocated to Miami Capital
Development, Inc.'s Sixteenth (16th) Year Revolving Loan Fund,
with said funds to be used for the Little Havana Business
Development Program.
Section 5. Miami Capital Development, Inc. shall
administer the Little Havana Business Development Program, and in
conjunction with the City of Miami, establish the requirements,
terms and conditions of the program.
-2- 90-- 951
Section 6. This Resolution shall
immediately upon its adoption.
PASSED AND ADOPTED this 6th
ATTE :
e.
MATT HIRAI, CITY CLERK
become effective
day Deceniber 1990.
VIER L. SUAR , MAYQh
COMMUNITY' DEVELOPMENT REVIEW AND APPROVAL:
FRANK CASTAN A D ECTOR
DEPARTMENT OF COMMUNITY DEVELOPMENT
FINANCE DEPARTMENT REVIEW AND APPROVAL:
CARLOS CIA, DIRECTOR
DEPARTMENT OF FINANCE
BUDGETARY REVIEW AND APPROVAL:
rAl-I
oNd URANA, DIRECTOR
DEPART . OF BUDGET
PREPARED AND APPROVED BY:
r
AL ERTI B. I
CHIEF ASSIS60T CITY ATTORNEY
APPROVED AS TO FORM AND CORRECTNESS:
1 % A A t
JO
EGE L . Fj3RN.
CITY ATTO EY
M1918
3_
90- 951
CITY OF MIAMI. FLORIDA
INTER -OFFICE MEMORANDUM
TO Honorable Mayor and Members
of the City Commission
FROM. Cesar H. Odio
City Manager
RECOMMENDATION:
12
DATE NOV Z 71990 FILE
Agreement with Miami Capital
SUBJECT Development, Inc. to implement
the Little Havana Business
Development Program
REFERENCES.
ENCLOSURES'
It is respectfully recommended that the City Commission adopt the
attached Resolution authorizing the City Manager to enter into an
agreement, in a form acceptable to the City Attorney, between
Miami Capital Development, Inc. (MCDI) and the City of Miami, for
the purpose of implementing the Little Havana Business
Development Program (LHBDP) and allocating $1,000,000 in
accordance with the terms and conditions as set forth herein.
$20.0,000 to be reallocated from Miami Capital
Development, Inc.'s Sixteenth (16th) Year Community
Development Block Grant Revolving Loan Fund;
$800,000 to be allocated f rom Economic Development
Physical.Improvement Projects Pool (Mini-UDAG) to Miami
Capital Development, Inc. for the Little Havana
Business Development Program.
BACKGROUND:
The Department of Community Development (DCD) has analyzed the
need to execute an agreement with Miami Capital Development, Inc.
in order to implement the Little Havana Business Development
Program per Motion No. 90-904 approved on November 8, 1990 by the
City Commission.
Miami Capital Development, Inc. recommends and staff concurs that
the City Commission approve the Little Havana Business
Development Program as per attached proposal submitted by Miami
Capital Development, Inc.
Igid
AbAmi C&PITAxr 171JVET OPMENTs INC.
DUPONT PLAZA CRNTER • 300 l31FiCAY'NE 13i vn. WAY 0 SUITE 614
biIAMI, FLORMA 33131-2207 • Tmz,*. (300) 308-1.020
Proposal for a Little Harvang 8ueminese Development_ Program (LHBDP
to b• implemented by Miami Capital. Oeveloflmwnt, Ina, MCDI
Since the approval of the Little Havana/Latin Quarter Development
Ilan in 1984 the City of Miami has been pursuing a. multi -faceted
strategy to stimulate redevelopment in the Little Havens area. Today,
some six (6) years after the plan's adoption, the Little Havana area
continues to exhibit a number of physical and social maladies which
have inhibited its transformation into a vhowcase of Hispania culture
in Miami which would attract visitors and tourists on a twenty-four
hour basis and help to revitalize the neighborhood.
In an effort to stimulate the redevelopment of the Little Havana
area, MCDI Le proposing to implement a Little Havana Business
Development Program (LHBDP) on behalf of the City of Miami. The
purpose of the LHBDP is to aggressively promote the retention of
existing and the attraction of new business investment into the Little
Havana area. This program will provide financial assistance to
businesses located or locating into the Little Havana area.. for the
principal purpose of financing the acquisition or improvement of real
property essential to the operational or' expansion needs of the
business.
The program will provide direct ,loans of up to $1O0.0o0. at a fixed
interest rate of 6,A for a fixed term not to exceed 11years. These
' !d!
1
loans are only available for business -related real estate acquisition
end/or improvement. Moreover, in order to'facilitate private bank
partiaipati.on in the redevelopment of the Little Havana area, all loans
under this program must be matched/Leveraged as followal (a) loans up
to S5O,000 must be matched on a "one to one" (i:l) basis by a bank
loan; and (b) loans over $50,000 must be matched on a "two to one"
(2%1) basis by a bank loan (e.g. $2 in bank money for every $1 loaned
by MCDI. To reduce the risk of the bank's participation, MCDI will
subordinate its loan to the bank.
This program will be funded for a total of 81,000,000 by% (a).
"reserving" 0200,000 in Community Development Block Grant (CDEG) funds
already allocated to MCDI for the City of Miami Revolving Loan Fund,
and (b) the City of Miami's; appropriation of an additional $800,000 of
CDBG funds to MCD11a City of Miami Revolving Loan Fund. It is
projected that this special impact program will result in the
implementation of 10 business development projects, at an average of.
$100#000 each from MCDI, involving the acquisition and/or improvement
of real properties in the Little Havana urea. Based an the required
leverage ratio, this program will attract private funds of 41 million -
02 million (not including the business owners's equity injection), for
a total public/private economic investment in commercial real estate
development of 02.0 million - 03.0 million.
In offering this proposal MCDI fully recognizes the magnitude of the
3
effort required to make the Little Havana redevelopment project a
i
atucceaw. Therefore, in addition to funding the LHBDP, MCDI recognizes
} that the City of Miami must continue to support redevelopment efforts
t
f 1n little Havana by:
j 90-- '951
a
(1) Promoting the development of new and the rehabilitation of
existing single and multi -family housing to keep pace with the
area's population growth and to attract middle and upper
income, and younger households.
(2) Relieving the critical shortage of parking which In inhibiting
commercial development in the area.
(3) Providing necessary infrastructure improvements to further
enhance the development potential of the area.
(4) Providing funds for commercial rehabilitation activities at
below market rates (e.g. building facade treatment, building
interior renovations, eta.)
(5) Developing and implementing marketing/promotional programs to
improve the area's image and to encourage redevelopment and
investment.
TEGSR./11-9-90