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HomeMy WebLinkAboutR-89-06636/2C�H RESOLUTION 99_ (;.13 A RESOLUTION APPROVING THE ALLOCATION AND COMMITMENT OF $200,000 FROM THE C ITY' S MIN I- UDAG LOAN POOL FUND OF THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM, SUBJECT TO SECURING ALL OTHER NECESSARY FINANCIAL COMMITMENTS TO THE "LITTLE HAITI PLAZA CORPORATION," TO ASSIST IN THE DEVELOPMENT OF THE "LITTLE HAITI PLAZA SHOPPING CENTER, " FOR WHICH THE CITY WILL PROVIDE A 30 YEAR LOAN WITH A CALL PROVISION IN THE 15TH YEAR, AT THREE (3%) PERCENT INTEREST WITH A THIRD POSITION ON THE COLLATERAL MORTGAGE, THIS COMMITMENT TO BE VALID FOR SIX (6) MONTHS FROM DATE OF APPROVAL. WHEREAS, "Little Haiti Shopping Plaza Corporation," intends to finance construction of a "Little Haiti Shopping Center," comprising approximately 38,150 square feet of net leasable area and with 130-parking spaces; and WHEREAS, the proposed activity is expected to generate approximately 48 construction jobs and 123 full time permanent new jobs; and WHEREAS, the total cost of the project is $2,500,000 of which $300,000 is proposed to be funded from an Urban Development Action Grant from the U.S. Department of Housing and Urban Development; and WHEREAS, an additional $200,000 is requested from the Mini UDAG Program with Community Development Block Grant (CDBG) funds; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF M IAM I, FLORIDA: Section 1. The City Manager is hereby authorized to allocate $200,000 from the City's Mini-UDAG Loan Pool Fund of the Community Development Block Grant (CDBG) Program for the "Little Haiti Plaza Corporation," subject to securing all other necessary financial commitments, to assist in the development of the "Little Amended CITY COMMISSION MEETING OF JUL 13 1989 DN No, Q9 Ej 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 be for a period of 30 years with a call provision in the 15th year with an interest rate of three (3%) percent and a third position on the collateral mortgage. Section 3. This Resolution shall become effective immediately upon its adoption pursuant to law. PASSED AND ADOPTED this 13th day of CITY CLERK BUDGET DEPARTMENT APPROVAL: 60�t L i66e' DIRECTOR— DEPART;ENf OF BUDGET PREPARED AND APPROVED BY: Lit Q2�%L LEGISLATION DIVISION CHIEF Jul , 1989. COMMUNITY DEVELOPMENT APPROVAL: nEPARTt�EOF COMMUN NT ITY DEVELOPMENT FINANCE DEPARTMENT REVIEW AND APPROVAL: z.- DEPA MENT OF FINANCE APPROVED AS TO FORM AND CORRECTNESS: 5.M 0 V� 41 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM 1lonorable Mayor and Members TO of the City Commission Aoe--,,� Cesar H. Odio FROM City Manager RECOMMENDATION: DATE Resol ution Ypprovi p& the Allocation of SUBJECT $200,000 from the Mini- UDAG Loan Pool for the Little Haiti Plaza Shopping Center REFERENCES. City Commission Meeting ENCLOSURESi July 13, 1989 It is respectfully recommended that the City Commission approve the attached resolution authorizing the allocation of $200,000 from the City's Mini-UDAG Loan Pool for the "Little Haiti Plaza Shopping Center Project," to be developed by the "Little Haiti Plaza Corporation," a private for -profit Florida Corporation. The Principals of the corporation are Mr. Rafael Kabustin and Mr. Ringo Cayard, a private investor and marketing consulting respectively. BACKGROUND: The Department of Community Development has analyzed the need to allocate $200,000 from the City's Mini-UDAG Loan Pool fund of the Community Development Block Grant (CDBG) Program, for the "Little Haiti Plaza Shopping Center Project," for a 30 year loan with call provisions in the 15th year at three percent (3%) interest and a third position on the mortgage as collateral. This commitment will be valid for six (6) months from date of approval. This project will be developed by the "Little Haiti Plaza Corporation." which will also apply for an Urban Development Action Grant (UDAG), through the City of Miami, in the amount of $300,000 to assist in the financing of the project which will cost a total of $2.4 million to develop. The project will be located at 130 N.E. 79th Street in the Edison/Little River Neighborhood Community Development target area. The shopping center will be comprised of 46,572 square feet of new construction and 38,150 of rentable space with sufficient parking for 130 cars. Attachment: Resolution