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Home My WebLink AboutM-90-0904CITY OF MIAMI, FLORIDA INTER; All 4MfRU M 49 1990 OCT 29 Ali 10: *:9 i TO Cesar H. Odio DATE October 26, 1990 FILE City Manager SUBJECT Schedule of Discussion Item for 11/8/90 S�jCommission Meeting j FROM REFERENCES Victor H. De Yurre Commissioner ENCLOSURES. Please schedule a discussion item for November 8, 1990 City Commission Meeting regarding both Economic and Housing Development Programs Proposals for Pequena Habana. Thank you. cc: Honorable Mayor and Members of the Commission Aurelio Perez-Lugones, Legislative Administrator t(q-r 90- 904 90, 905 ., P 02 OCT- i T--9�0 WKD lie 1 •4a M = AM I CHAP r T'AL F& . CC%2 M i�ti.lMt C�A.3'X'1'111f• iX:'3�T:t.Olt"�lr:N'!`� i:VC". 'it • Q300 "INVAN'Nle tZs.� s►. �ti"n�• - St•ra-K 014 A11,%M1, F1.01411M tt.UU1•12207 - TX.1,1 (.303) 313$-1020 / )*'nxt (303) 030.3001 Sine* the approval, of the Little Hnvsr+a/Latin Quarter Development Plan in 1084 the City of Miami has been pureuing a multi-jeoeted strategy to stimulate redevelopment :.n the Little, Havana ores. Today, Some six (6) years otter the plan's Adoption, the Little Havana area continues to exhibit a number of physical and socital maladies which have inhibited its transformation into r anowaaae of Hispanic ouiture in Miami which would attract visitors and tourists on a twenty-four hour boss;ie and help to revitalises the neighborhood. Tn an e9fort to tatimulate the redevelopment of the Little Havana areal MCDI is proposing to implement a Little Kavans Ouvineve Development Program IrwHBDP) on behalf of the city of Miami. The Purpose of the LHBDP is to aggressively promote the retention at outstinv and the attraction of new business investment into the Little Havana area. This program will provide financial assistsnoe to busineasea located or feasting into the 4ittle Havana area for the principal Purpose of tinanaing the acquisition or improvement of real property essential to the operational or oxpanvton needs of the bueinegV. The program will provide direct ,Loans: of up to Sion_._ Oho. at a fixed interest rate of MY for a fixed term not to exoeod Ll yeera. in-stees- much an this program is designed to encourage the davelopmor,t or peas s of 3 90- 904 90•- 90.q Or-T-2rS—SO0 F R I IOCT— i T--90 WM V 1 0 t +4T tl i AM l r P . 0 4 CAPi T^I- P.08 improvement of real estate, no more than &W& of the loan provided by MCQX can be used for working capital purposes or other faxed-saoat needs (e.g* machinery, equipment, etc.). ZU of the loon must be "rod, for busineee-related real estate aequiattion and/or improvement. .Moreover, In order to facilitate private bank participation in the redevelopment of the Little Havana area, all loans under this program must be matahod/leveraged as folXowso (af l.00na up to 030,000 must be matched on a •one to one" 41:1) bmais by a bank loony and (b) ioano over 050,000 must be matched on o "two to one" (2:1f basis by a bank loan (e.g. 62 in bank money for every ii loaned by MCDr). To reduce the risk of the bank's participation, HCDi will subordinate its loan to the bank. This program will be funded for a total of $10000,000 byt (a$ "reaerving" 0200#000 1n Community Development Block grant (0000) funds already •lloeeted to "CD1 for the City of Miami !!evolving Loan rued, and (b) ro-allocating an additional b600,000 of CDDO (undo to HCDI'se City of Miami Revolving Loan Fund. It is projected that this special Impoct program will result in the implementation of 10 business development projects, at on average of •100,Oeo each from MCDr, involving the acquisition and/or improvement of retal proportion in the Little Havana area. Booed on tho required leverage ratio, this program will attract privet* funds of 01 million - 02 million (not including the businesse owners's equity injeotion), for a total public/private economic investment in commareial real estate development of 02.0 million - •3.0 million, page 2 of 3 .3 90- 904 90-- 905 OCT-26— 90_ FR I _ B �i 4 P . 0S 4 OCT— 1 T—?4) WIt i] 1 0 ► 47 PIT o3m 2 f"Ar. 3 •rdL- P'. atr1 ;n offering olio proposal IKCDS fully recognizes the magnituda e4 the pjjQrt required to Malta the Little Havens redevelopment projeet e auecaue. Thereforop in addition to funding thw LH8VPj MCDT reeounives that the City of Miami most continue to support redevelopment efforts in Uttle Havana by= (1) Promoting the development of nov and thi rehabilitation air existing single and multi-Somily housing to keep pace with the area's population growth and to attreat middle and upper income# and younswr houneholde. (2) Relieving the critical shortage of parking Which in inhibiting commercial development in the area. (3) Providing necessary Xntrastrueture smprovemente to further enhance the development potential of the area. (4) Providing funds for commercial rehabilitation act°.vitiew at below market rates te.g. building facade treatment, building tnterLor renovations, eto.) (5) Developing and implementing marketing/promotional programn to i.mprovo the area's image and to encourage redevelopment and Investment. TECeR. I10- iT-sO Page 3 of 3 90-- 904 90- 905