HomeMy WebLinkAboutR-90-004011
J--89-1163
12/22/89
RESOLUTION NO. 90- W4®
A RESOLUTION AMENDING SECTIONS 1 AND 2 OF
RESOLUTION NO. 89-663, ADOPTED JURY 13, 1989,
WHICH HAD APPROVED THE ALLOCATION OF $200,000
FROM THE CITY`S MINI-UDAG LOAN POOL FUND TO
THE LITTLE HAITI PLAZA CORPORATION TO ASSIST
IN THE DEVELOPMENT OF THE LITTLE HAITI PLAZA.
SHOPPING CENTERS INCREASING THE FUNDING FROM
$200,000 TO $500,000; AND BY APPROVING A
SUBSTITUTE LOAN GRANTEE NAMELY, LITTLE HAITI
PLAZA JOINT VENTURE GENERAL PARTNERSHIP;
CHANGING THE INTEREST RATE OF LOAN TO THREE
(3%) PERCENT FROM YEAR TWO THROUGH YEAR FIVE
AND TO SIX (6%) PERCENT FROM THE 6TH THROUGH
THE 16TH YEAR AND PROVIDING FOR SAID LOAN TO
BE INTEREST FREE DURING CONSTRUCTION WITH THE
CITY AGREEING TO SUBORDINATE ITS POSITION TO
A MAXIMUM OF $1.5 MILLION IN LOANS, WITH A
NONTRANSFERABLE MORTGAGE; AND WITH THE
FURTHER CONDITION OF A REQUIRED INVESTMENT OF
$500,000 OF EQUITY PRIOR TO DISBURSEMENT OF
SAID LOAN PROCEEDS, AND RESERVING THE RIGHT
TO CALL THE LOAN IF THERE IS A CHANGE IN THE
MAJORITY INTEREST OF THE PARTNERSHIP AND/OR A
REFINANCING OF THIS DEBT.
WHEREAS, the City Commission adopted Resolution No. 89-663
on July 13, 1989, approving the allocation of $200,000 for the
Little Haiti Plaza Joint Venture General Partnership; and
WHEREAS, the City Commission also adopted Resolution
No. 89-665 on the same date approving an amendment to the 15th
Year Community Development Block Grant (CDBG) Final Statement,
authorizing the allocation of $1.5 million in the form of a
Community Development Float Loan for the Little Haiti Plaza Joint
Venture General Partnership; and
WHEREAS, the project required an additional $300,000 to be
provided from a Federal Urban Development Action Grant (UDAG)
which was not awarded and said sum therefore is not forthcoming;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
CITY COMMISSION
MEETING OF
— JAN11 •�1990
RESOLUTION flop
REMARKS:
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Section 1.
Sections
1 and 2
of Resolution No. 89-663,
adopted July 13,
1989, are
hereby
amended in the following
particulars:/
"Section 1. The City Manager is hereby
authorized to allocate $200,000 5500,�000 from the
City's Mini-UDAG Loan Pool Fund of the Community
Development Block Grant (CDBG) Program for the "bittl=
Haiti -piewe rpe!ebion Little Haim,_ plaza, Joint
Venture General Eartnershio", subject to securing all
other necessary financial commitments, to assist in the
development of the "Little Haiti Plaza Shopping
Center," with an agreement to be negotiated and entered
into at a later date.
Section 2. The loan to be provided shall .-
for a .. -• -
:.
Section 3. This Resolution shall become effective
immediately upon its adoption.
PASSED AND ADOPTED this llth day of January a 1990.
rz;
XAVIER L. SU Z, MAY -OR
CITY CLERK
Words and/or figures stricken through shall be deleted.
Underscored words and/or figures shall be added. The
remaining provisions are now in effect and remain unchanged.
D
11
COMMUNITY DEVELOPMENT REVIEW AND APPROVAL:
FRANK CA5TANEVA, DIRECTOR
DEPARTMENT OF COMMUNITY DEVELO
BUDGETARY REVIEW AND APPROVAL:
aYl
y
MANOHAR RANA, DIRECTOR
DEPARTMEN F BUDGET
FINANCI RTMENT REVIEW AND APPROVAL:
114V7
A / ol,
CARLOS E. GARCIA, DIRECTOR
DEPARTMENT OF FINANCIAL
APPROVED AS TO FORM AND CORRECTNESS:
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JOR E FERNA EZ IT
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CITY dK MIAMI. FI.OR.IDA
INTER -OFFICE MEMORANDUM 27
Honorable Mayor and Members J A N _ 2 19910
TO _ of the City Commission DATE Resolution Approvink"E
the Allocation of -
sUaACT $500,000 from the Mini.- -
�Iy UDAG Loan Pool for the
Little Haiti Plaza
FROM Cesar Odio REFERENCES Joint Venture General
City Manager Partnership
ENCLOSURES City Commission Meeting
January 11, 1989 -
RECOMMENDATION:
!; It is respectfully recommended that the City Commission approve
the attached resolution authorizing the allocation of $500,000
{ from the City's Mini-UDAG Loan Pool for the "Little Haiti.
Shopping Center Project", and amend Resolution No. 89-663 adopted
on July 13, 1989, which previously authorized a $200, 000 loan at
three (3%) percent amortized over 30 years with a call on year
i 15•
BACKGROUND:
The Department of Community Development has analyzed the need to
amend Resolution No. 89-663 and allocate $500,000 from the City's
Mini.-UDAG Loan Pool fund for said project with the following new
terms and conditions:
1) Interest free during construction (year 1).
2) Fifteen year term amortized over 30 years.
3) Three (3%) percent for years 2-5 and six (6%) percent
for years 6-16. Call on year sixteen.
4) An equity match of $500,000 must be invested first
before City funds are disbursed.
5 ) No majority interest in the joint venture shall be
sold, transferred, traded or conveyed to any outside
party without the written consent of the City of Miami
first being obtained.
6) The City will subordinate its position to a maximum of
$1.5 million dollars in loans.
7) Said mortgage for this loan shall not be transferable.
The increased amount of the previously approved loan along with
the above new terms, are required due to the unexpected decline
by the U.S. Department of Housing and Urban Development of the —
City`s application for an Urban Development Action Grant (UDAG)
in the amount of $300,000 on behalf of the Little Haiti Plaza —
Corporation.
Due to the importance of this project to the community, the City
should reconsider this new proposal and maintain the public
commitment required to redevelop the inner city neighborhood.
Attachment: Resolution