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HomeMy WebLinkAboutR-88-0905J-86-936 8/24/88 RESOLUTION NO. F38 %% &S A RESOLUTION AUTHORIZING THE CITY MANAGER TO UTILIZE FIVE HUNDRED SIXTY-FIVE THOUSAND DOLLARS ($565,000) OF THE. MONIES APPROPRIATED VIA THE, ECONOMIC DEVELOPMENT/PHYSICAL IMPROVEMENT PROJECT POOL FUND, AND ALLOCATED FROM THE SECOND ROUND OF THE TWELFTH (12TH) YEAR COMMUNITY DEVELOPMENT BLOCK GRANT FUND AND THE FIRST ROUND OF THE THIRTEENTH (13TH) YEAR FOR THE PURPOSE OF OBLIGATING FOR A SIX (6) MONTHS PERIOD FUNDING FOR ECONOMIC DEVELOPMENT PROJECTS IN ACCORDANCE WITH THE GUIDELINES SET FORTH, WITH THOSE ORGANIZATIONS NAMED BELOW, WHOSE PROJECT PROPOSALS WERE SELECTED BY THE ECONOMIC DEVELOPMENT/PHYSTCAL IMPROVEMENT PROJECT COMMITTEE, AND SUCCESSFULLY MEET THE SCORING REQUIREMENTS AND LEVERAGE AMOUNTS. WHEREAS, the City Commission is committed to economic development and the expansion of Trade and Commerce; and WHEREAS, Resolution No-s. 86-296, 86-636 and 87-411 established an Economic Development/Physical Improvement Funding Pool, with funds allocated from the second round of the Twelfth (12th) Year Community Development Block Grant and the first round of the Thirteenth (13th) Year Community Development Block Grant Fund in the amount of five hundred sixty-five thousand dollars ($565,000); and WHEREAS, funds awarded during this round was on a competitive basis in which each project/program was scored and evaluated on its neighborhood/commercial impact of job creation, business development and aesthetic enhancement; and WHEREAS, the City Commissions authorization of the financial coamitments to each of the projects listed below shall enable each organization to secure and finalize other financing commitments, contingent upon the terms specified; and WHEREAS, the City's commitment shall be for a six (b) •oggh period; and L-1 WHEREAS, the City'R financial commitment will he +subject to contract approval by the Commission prior to clnsing; NOW. THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MI AMI , FLORIDA- Section 1. The City Manager is hereby authorized to obligate for a six (6) month period funding for economic development projects, with the following organizations, for the amount specified for each, for the purpose of implementing it approved Economic/Physical Improvement projects in accordance with the conditional requirements and terms set forth with funds allocated from the Twelfth (12th) Year Community Development Block Grant: ORGANIZATION: Tacolcy Economic Development Corporation, Inc. (TEDC) TOTAL COST: $1.5 million TERM: City's allocated amount of one hundred fifty thousand dollars ($150,000). The ter4s for said loan will be moratorium of principal and interest from years one (1) through five (5); interest for year six (6) through ten (10) will be at three percent (3%); years eleven ( 11 ) through twenty-five (25) at six percent (6Z). Said loan will be amortized over thirty (30) years and all lenders will have a shared first position. ORGANIZATION: Allapattah Business Development Authority, Inc. (ABDA) TOTAL COST: $584,860 TERM: City of Miami (Loan) - One hundred ninety thousand dollars ($190,000). This preliminary commitment will enable ABDA to secure other public/private funds. At that time will come back to the Commission for approval of contract once all funding is secured. ORGANIZATION: Latin Quarter Cultural Arts Center TOT" COST: Approximately $700,000 TERM: City allocated amount of one hundred fifty thousand dollars ($150.000) is contingent upon all funding being secured. At which time will come back to the Commission for approval of term of City loans. This commitment is for six (6) months from date of Commission approval. A PASSED AND ADOPTED this 6th day of October , 198 ATTEST: NATTY HIR CITY CLERK AVIER SUA MAYOR , COMMUNITY DEVELOPMENT REVIEW AND APPROVAL: RANK A ANE A. DIRECTOR DEPARTMENT OF COMMUNITY DEVELOPMENT FINANCE REVIEW AND APPROVAL: (22-- CnOS GARCIA, DIRECTOR DEP RTMENT OF FINANCE MANAGEMENT b BUDGET REVIEW AND APPROVAL: OSOA� ff - MANOHAR S. SURANA, DIRECTOR DEPARTMENT OF MANAGEMENT & BUDGET PREPARED AND APPROVED BY: 64a 1'e RO ERT F. CLARK CHIEF DEPUTY CITY ATTORNEY APPROVED AS TO FORM AND CORRECTNESS: IN4L,11., . ERNA EZ CITY ATTORNEY -3- L7 CITY OF MIAMI. RLORICA INTER.OfrFICE MEMORANDUM .o Honorable Mayor and Member,; DATE -n -7 00 FILE of the City Commission Z.- ' - + 1900 SUNJECT Economic Development/ Physical Improvement Contract Selections rRoM Cesar H. Od i o s RfRERENC[S: r City Manager w ENCLOSURES. RECOMMENDATION! It is respectfully recommended that the City Commission adopt the attached resolution obligating for a six-month period funding for economic development project between the community based organization identified below and the City of Miami, for the purpose of implementing the approved project and/or program as selected by the Economic Development/Physical Improvement (EDPI) Project committee, in accordance with the terms and conditions set forth herein. BACKGROUND: The Department of Community Development (DCD) has analyzed the need to obligate funding for economic development proiects for organizations stated in the attached resolutions, pursuant to City Commission approval of Resolution No's. 86-296,86-636 and 97--411 which approved the Economic Development/Physical Improvement Fund, with funds allocated from the second (2nd) round )f the Twelfth (12th) Year Community Development Block Grant (CDBG) funds and the first (lst) round of the Thirteenth (13th) Year fund in an amount totalling five hundred sixty-five thousand dollars ($565,000). Proposed projects were solicited from both not -for -profit and/or for -profit entities and evaluated by the established committee. Programs And/or projects submitted for funding via said pool were evaluated and scored on established criteria as set forth in the Economic Development/Physical Improvement guidelines. A total of nine (9) projects were submitted totalling one million tour hundred thirty-four thousand five hundred dollars ($1,434,500) for this round. The projects proposals submitted, along with a description of the project and project cost are attached. ( Attachment "A") . Of the nine (9) proposals submittal the following projects bay* been selected by the committee and are being recolssso4ed for funding via Commission approval. They are as follows: Honorable Mayor and Members of the City Commission Page 2 ORGANIZATION: Tacolcy Economic Development Corporation, Inc, (TEDC) PROJECT TITLE/ The Marketplace at Edison/S1.5 million -TOTAL COST: PROJECT DESCRIPTION: This project entails the renovation of property at the corner of N.W. 1th Avenue and N.W. 62nd Street into a retail convenience and shoppers mall. The total development cost of said project will total approximately $1.5 million dollars. Approximately eighty (80) new permanent full and tor part-time jobs will be created. The City is proposing to allocate one hundred fifty thousand dollars $1 0,000 to TEDC as a loan in this project. Commitment is contingent upon securing all funding. No funds will be disbursed until all funding is secured and we will require a joint closing among all the lenders. These funds will be available for six (6) months from date of Commission approval. Staff will submit the contract for execution and loan disbursement to the City Commission for final approval before closing. TERM: City of Miami (Loan) - One hundred fifty thousand dollars ($150.000). The terms for said loan will be a moratorium of principal and interest from years one (1) through five (S); interest for year six (6) through ten (10) will be at three percent (3%); years eleven (tl). through twenty-five (25) at six perco*t 3 (6%). Said loan will be amortised ays thirty (30) years and all leadors have a shared first position. a" s # r n r a, yT f tK q4 Honorable Mayor and Members of the City Commission Page 3 Local Initiative Support Corporation (Loan) - One hundred seventy-five thousand dollars ($175,000) at five percent (5%) interest amortized over ten (10) years. In addition, seventy-five thousand dollar ($75,000) - Grant. Metropolitan Dade County (Loan) - One hundred seventy-five thousand dollars ($175,000) at five percent (5%) for first ten (10) years, ten percent (10%) for remaining fifteen (15) years. Tn Addition, one hundred forty thousand dollars ($140,000) - Grant. Office of Community Services (Grant) - Four hundred. thirty-five thousand dollars ($435,000). Business Assistance Center - Two hundred fifty thousand dollars ($250,000) at ten percent (1n%) for twenty (20) years. In addition, Business Assistance Center will make an equity injection of ninety thousand dollars ($90,000) in the project as part of its financing. ORGANIZATION: 411apattah Business Development Authority, Inc_. (ABDA) PROJECT TITLE/ Ralpheal's Plaza/$564,960 TOTAL COST: PROJECT DESCRIPTION: The construction and development of so 11,400 square foot comstercist retail/office complex, that will house nineteen (19) businesses and crest+e approximately fifty-four (54) new uRw subsidized ut�i t �RN"�, employment o � pp0 tt This project will be a p � public/R'�Z��i� mow-, , partnership between the local aoABbtp' based or anization and a : PrA, t* developer. e a1 X 6: Honorable Mayor and Members of the City Commission Page i No funds will be disbursed until all funding is secured and we will require a joint closing among all the lenders. These funds will be available for six (6) months from date of Commission approval. TERMS: The proposed terms of financing for the Ralpheal's Plaza Project is as follows: City of Miami (Loan) - One hundred ninety thousand dollars ($190,000). This preliminary commitment will enable ABDA to secure other public/private funds. At that time we will come back to the Commission for approval of contract once all funding is secured. Office of Community Services - Two hundred thousand dollar ($200,000) - (Grant). Application is pending; it was submitted August 29. 1988. Capital Sank (Loan) - Capital Bank is in the process of receiving their application" for two hundred eighteen thousand dollars ($218,800). These funds will be used for construction financing which will be rolled over into permanent financing. ORGANIZATION: Latin Quarter Cultural Center, Inc. PROJECT TITLE/ Latin Quarter Culture Center, Tac./ TOTAL COST: Approximately $700,000 PROJECT DESCRIPTION: This project entails the rehabilitation of a vacant and deteriorated buil4log located at 1508 S.W. gth Street. The facility will be used to coordiaatt national and international minority performances, musical and viouel Kati f.t£ events for presentation wit% s multtlinsual performance+. r .0 Honorable Mayor and Members of the City Commission Page S Approximately twenty-four (24) new permanent employment opportunities will be created for low/moderate - incnme persons. The private and foundation funds will be sought to complete funding of said project. Because of the projects cultural nature, it needs initial financial commitment in order to obtain additional funding. This project is in its infancy but when completed it will have a tremendous impact on the Latin Quarter. We will come back to the Commission for approval of contract once all funding is secured for project. The City of Miami's -funding commitment will be for The Market place at Edison, Ralpheal's Plaza and the Latin Quarter Cultural Center for six (6) months. No funds will be disbursed until the City Commission approves contract documents and all funding commitments are issued and a closing of all the tending parties occur concurrently. All of the aforementioned projects were determined to be the most suitable within the respective target areas, met the scoring requirements, and will have a significant economic impact in their respective target areas. Each of the above projects will result in a significant number of jobs being created and the leverage of additional public/private investment in the City of 4iami neighborhoods. Attached for your review is a copy of each project proposal submitted for review by the Economic Development/Physical Improvement Project Committee. i YI /; j dVi r,� .� A71 .� �.,t f7 ice. M PtOPOSED ECONOMIC DEVELOPMENT PHYSICAL IMPtOYEMENT PROJECT CITY TOTAL PROJECT COST OtGANIZA?IO//PtOJEC? DESCRIPTION Z�R= AM►MOUNT [&QUESTED MATCHING FUNDS $150,000 (Grant) $ 550,000 $ 700,000 Latin Quarter Cultural Center, Inc. Rehabilitation of a vacant and Little Havana deteriorated building located at 1508 S.W. 8th Street to coordinate national and international minority performing, musical and visual arts events, for presentation at the Latin Quarter Cultural Center of Miami, Inc. A key intent is multilingual performances. African American Chamber of Citywita $125,000 (Grant) $ 50,000 (Membership Dues) Commerce, Inc. trade between Florida To promote and Africian States by informing and educating businesses in how to conduct trade with Africa thereby increasing import/export Sales -Vend -All Enterprises, Inc. Cityw1do $ 25,000 (Grant) $ 2525,Services) A for -profit company that will (in -Kind place the "Wishing Well" device in locations, that will generate fonds. The device can ba rented out and/or leased to ocher organisations for extensive reveaoe collection. FACE 2 CITY TOTAL OEC�Ii�TIOS/TEOJECT 1EiCE1tT1O0 TAVAMT ALMA AMODET [EQOESTEE KATCRINQ ADS ?EOJECT COST $ 1,690,000 $ 1,840,000 Tacolcy Economic Development Inc. Edison Center/ $100,000 (Loan) $ 50,000 (Grant) Corporation, The rehabilitation and development Model City of the 28,000 square foot OIC Building located at the corner of N.W. 62nd Street and A.W. 7th Avenue in a retail multi -vendor marketplace. This project will create 133 permanent jobs, 40 temporary construction jobs and 38 entrepreneurship opportunities for area residents. Gabriel Security Corporation, Inc. $ 10,000 (Grant) $ 6,000 To provide training and jobs to ity Citywide of Miami residents as security guards both armed and unarmed. Overtown/Downtown $464,500 $19,068,869 $19,533,369 New Washington Heights Community Development Conference, Inc. $19,533,369 New Washington Heights Community ovorteva/ $464.500 $19,068,869 Development Conference, Iuc. Miami Arena/State Ylasa Project. 'fit= This project involves the reinforcement of a parking garage structure so that a hotel can be built in the above sir rights space. The garage will create new job opportunities. xC - Tics 3 Tso=ici r►ti�inio0 T=itlDi Isc. t oic sl" yauadt7+ t0�' r e f Ott f p04 iap T1oJz COi Itopi a s hcDontedQvsrto+n gbopp be 1 WC T�D$ �b0,0p0 io opts in th facility ~i1sbtYt CiTI atED S r e s -The „ a i t t, �� S 290.000 Center• asini sac up strwict detect son17 be ralk" insist To pa=chtse consi Kill loittrioi arouad t 1T0,000 (Grant) franchise) tbeT�py prevta c i e is and is,tell th teducin8 ApptQs rise Cnesite a fill sad/°ere Create tWeaty (2b) Will be ptrsaneot jobs flevelopstat ab Business of an All part a a o tity, Inc ct Autbo and Co foot coarercial g60 sent foOC that will Dev400 sq"atecosplex, es and tss � 394.s60 ietail/office en t19) busi tell OUT $190,p00 (9,0a0) house Ulu apptol-l"Idised esploy�ill c11, teatenew un_s"DsTbis PrOjitu ersblp &12atatts� oppor! "n, blic/pr 0 guaity wntt aatd bet ben tiOan and private o orb I ?ACE 4 CITY TOTAL TAR= Rtia AMOUNT RZQQRSTZD !MATCHING "WDS ?ROJZCT COST Overtowa $150,000 (Loan) $ 300,000 (Foundation) $150,000 (Rehab. Loan) ORGANIZATION/PROJZCT 99SCRIPTIN Carver Hotel Development Corporation Restoration of the Carver Hotel, located at 900 X.N. 3rd Avenue, which will house the Hotel, provide affordable rental housing and other hotel amenities. The restoration of the Carver Hotel will create ten (10) permanent full-time jobs. Income from said project will be from Hotel rental's, adult care program. 3 e�