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HomeMy WebLinkAboutR-89-0513A J-89-529 5/15/89 c RESOLUTION NO. �' _0513 A RESOLUTION AUTHORIZING THE CITY MANAGER TO AMEND THE ECONOMIC DEVELOPMENT AGREEMENT'/ DATED DECEMBER 14, 1988, BETWEEN THE CITY OF MIAMI AND MIAMI CAPITAL DEVELOPMENT, INC. (MCDI); FOR THE PURPOSE. OF ALLOCATING $190,000 FOR ITS ADMINISTRATIVE EXPENSES AND $1 MILLION DOLLARS FOR ITS REVOLVING LOAN FUND , FOR THE PERIOD OF JULY 1, 1988 TO JUNE 30, 1990 WITH FUNDS THEREFOR BEING ALLOCATED FROM THE FIFTEENTH (15TH) YEAR COMMUNITY DEVELOPMENT BLOCK GRANT FUND. WHEREAS, the City Commission is committed to economic development and the expansion of trade and commerce; and described as follows: WHEREAS, on May 11, 1989, the City Commission approved Resolution No. 89--388 which included an allocation to Miami Capital Development, Inc.; and WHEREAS, $190,000 was allocated for administrative and operative expenses; and WHEREAS, it is in the interest of the City that Miami Capital Development, Inc.'s Revolving Loan Fund activities should be continued and expanded for the purpose of economic development; and WHEREAS, $1 million was allocated for the purpose of implementing the Revolving Loan Fund Program; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section I. The City Manager is hereby authorized to amend a contract'Uated December 14, 1988, in a form acceptable to the City Attorney, with Miami Capital Development, Inc. Section 2. The City Manager is hereby authorized to allocate $190,000 to Miami Capital Development, Inc. from the Fifteenth (15th) Year Community Development Block Grant Program for said administrative operations. 1/ The herein authorization is further subject to compliance with all re— quirements that may be imposed by the City Attorney as prescribed by applicable City Code provisions. CITY COMMISSION MEETING OF JUN 7 1989 RESOLUTION No. i3 Section 3. The City Manager i.s hereby authorized to allocate $1. million dolI.ars to Miami Capital Development, Inc. from the Fifteenth (15th) Year Community Development Block Grant Fund for the purpose of continuing its Revolving Loan Fund Program. Section 4. Prior to the City disbursing any funds to Miami Capital Development, Inc., it shall utilize principal income to fund approved loans from the Revolving Loan Fund and interest income shall be used to cover Administrative cost. Section 5. It is further understood that all the terms and conditions outlined under the original agreement will remain in full force without modification except as herein stated. I�l Section 5. This Resolution shall become effective immediately upon its adoption pursuant to law. PASSED AND ADOPTED this 7th day o Ju r 1989. off.• XAVIER L. Ze MAYOR ATTE t MATTY HIRAI CITY CLERK i COMMUNITY -DEVELOPMENT REVIEW AND APPROVAL: FRANK/'CA�TANEDA, DIRECTOR DEPARTMENT OF COMMUNITY DEVELOPMENT PREPARED AND APPROVED BY: ROBERT F. CLARK CHIEF DEPUTY CITY ATTORNEY APPROVED AS TO FORM AND CORRECTNESS: i fi�40EL;j R EZ CITYAT0RN Y /gjd -3- M CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM Honorable Mayor and Members To of the City Commission C, FROM: Cesar H. Odio City Manager RECOMMENDATION . DATE : M All i 3 � 1989 FILE : Resolution authorizing the City SUBJECT Manager to amend the Miami Capital Development, Inc. (MCDI) Contract.Agreement REFERENCES : ENCLOSURES: It is respectfully recommended that the City Commission approve the attached resolution authorizing the City Manager to amend the current agreement with Miami Capital Development, Inc. (MCDI) as authorized by Section 2.4 of said agreement. The purpose of this amendment is to allocate Administrative and Revolving Loan Funds for the 1989-1990 program year. These funds are appropriated in the Fifteenth (15th) Year Community Development Block Grant (CDBG) Program Fund. BACKGROUND: The Department of Community Development (DCD) has analyzed the. need to amend the current economic development agreement with Miami Capital Development, Inc. in order to 'provide Administrative and Revolving Loan Funds for the operation of its functions as the City's quasi -public lending agency to provide business development and loan packaging services, technical and managerial assistance and loan funds to small and/or disadvantage businesses located.in the City of Miami. During the 1989-1990 program year, $190,000 will be allocated for Miami Capital Development, Inc.'s administrative expenses. $1 million dollars will be allocated for the continued implementation of the agency's Revolving Loan Fund program. /gjd M, AMENDMENT NO. 1 MIAMI CAPITAL DEVELOPMENT, INC. (MCDI) An Amendment to the Agreement dated December 14, 1988, between the City of Miami, herein after referred to as the "CITY" and CONTRACTOR (MCDI) hereinafter referred to as the "CONTRACTOR". WHEREAS, the City Commission approved Resolution No. 88-641 on July 14, 1988 for provision of economic services and loan fund activities, and WHEREAS, Article 2.4 of said Agreement authorizes the modification of said Agreement in a form mutually agreed upon by the CITY and the CONTRACTOR; and WHEREAS, Article 4.2 Item 2 of said Agreement stipulates the amount of administrative funding allocated to the CONTRACTOR during the current contract period; and WHEREAS, Article 2.3 of said Agreement stipulates the amount of loan funds allocated to the CONTRACTOR during the current period; and WHEREAS, Article 6.1 entitled General Assurances and Certifications is amended to include a tenth item outlining the CONTRACTOR'S adherence to addition Federal Regulations; and WHEREAS, Article 4.2 entitled Method of Funding is amended to add a third clause which defines the expenditure and income received from payment of loans; and WHEREAS, Article 7.2 allows the automatic renewal of the aforementioned dated Agreement; and WHEREAS, the CONTRACTOR is in good standing with the CITY. THEREFORE, IN MUTUAL CONSIDERATION OF THE COVENANTS MADE herein and in the Agreement of which this is an Amendment, the parties hereto understand and agree as follows: El ri Section 1. That Articles 2.3 and 4.2 Item 2 respectively of. this Agreement between the parties, above stated, is hereby _i amended to allow for the following provisions: a) administrative funds in an amount not to exceed $190,000 be allocated to the ={{ CONTRACTOR for the Fifteenth (15th) Year Community Development Block Grant year beginning July 1, 1989 through June 30, 1990; b) $1 million dollars be allocated to the CONTRACTOR for the continuation of its Revolving Loan Fund program. Section 2. The CITY and CONTRACTOR mutually agree to the continuation of said Agreement as outlined in Article 7.2 for a _j period not longer than June 30, 1990 l !` Section 3. Article 6.1 is amended to include provision ®'. Number 10 stating the following: } It will comply with the requirements and standards of ®' OMB Circular No. A-87, "Principles of Determining Costs Applicable to Grants and Contracts with State, Local and Federally recognized Indian Tribal Governments"; ®` OMB Circular No. A-128, "Audits of State and Local 1 Governments" (implemented at 24 CFR Part 44); OMB Circular No. A-122 "Cost Principles for Non -Profit Organizations, with Sections of 24 CFR Part 85 "Uniform Administrative Requirements for Grants and Cooperative i a? N Agreements to State and Local Governments, and with attachments to OMB Circular No. A-110 listed at 24 CFR i Part 570.502 "Community Development Block Grant" Final Rule (Page 3-3 and J-4) Federal Register, September 6, 1988. Section 4. The CONTRACTOR shall use its principal rt f' income for any new loans approved prior to requesting a loan drawdown from its City allocation. Further, the CONTRACTOR i shall use its interest income to cover a percentage of its administrative expenses during the 1989-1990 fiscal period. -2- ""'' 131, t Section 5. It is further understood that all terms and conditions outlines under the original Agreement will remain in full force and effect without modification except as herein stated. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed by the respective official thereunto duly authorized. WITNESS our hands and seals on this , 1989. ATTEST. MATTY HIRAI CITY CLERK ATTEST: CORPORATE SECRETARY d ay of CITY OF MIAMI, a municipal Corporation of the State of Florida BY: CESAR H. ODIO CITY MANAGER CONTRACTOR: MIAMI CAPITAL DEVELOPMENT, INC. BY: PRESIDENT (CORPORATE SEAL) APPROVED AS TO FORM AND CORRECTNESS: JORGE L. FERNANDEZ CITY ATTORNEY 5/15/89 /gjd L LE