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HomeMy WebLinkAboutM-88-0942■ P CITY OF MIAMI. FLORIDA INTER43IFFIC[ MEMORANDUM TO Mr. Aurelio Perez Wgam Legislative Administrator FROM Vice Mayor Rosario 7�el I DATE: r 26, 1988 PILE: Su•jacT Agenda/October 6, 1988 Cayard & Associates REFERENCES' ENCLOSURES: 1 F1rlosed is a proposal from Cayard & Associates, Inc., regarding the establishment of a credit union for the Little Haiti comn3nity. Please place the matter on the agenda for the October 6, 1988 meeting. Thank you. 7s C Ca and & Associates Inc. y , ICommunity/Govemment Affams Consultants August 23, 1988 City of Miami Office of the Vice Mayor 3500 Pan American Drive Miami, Florida 33133-0708 ATTN: Vice Mayor Rosario Kennedy Dear Vice Mayor Kennedy: Due to the expansion and growth of the Little Haiti Community, (which is in the City of Miami), there is a need for the establishment of a Credit Union. Thus, enclosed is a copy of the proposal for such endeavor which will be of a great benefit to the economic development of this community. This Credit Union will be operating as a non-profit orginization, for the purpose of encouraging thrift amoung its members, creating a source of credit with fair and reasonable rates of interest, and providing an opportunity for its members to use and control their ecomonic resources on a democrat basis in order to improve their economic and social conditions. Furthermore, this proposal is requesting funds in the amount of $110,416.00 for the organizational phase of the.projeet to include demographic and monetary survey, business plans, legal structure, accounting, and public relations, and that the Credit ! Union will serve between 2,500 and 5,000 members in its first ! year, and between 6,000 and 10,000 members during the next four years. It would be greatly appreciated if you would contact this office upon receipt of this letter, so that we may arrange a mutual date and time to discuss this matter at greater length. Your cooperation in reviewing this proposal will be appreciated and I look forward to hearing from you in the near future. VePRD ly u , CND SS IATES, INC. RYARD Pekt low ii.E. 6-1th Strcet, Suite 101 ytiami, Florida 3308' 0 PROPOSAL FOR THE ESTABLISHMENT OF A CREDIT UNION LITTLE HAM MIAMI, FLORIDA iY t Ham, ;i y � f 1 t � i JLAir-Mr-I'll VC IJDJCl.7LVG, SOCIO-ECONOMIC JUSTIFICATION BASIC CONCEPT BEVEhITS TO MEMBERS CREDIT UNION DEFINED LITTLE HAITI OVERVIEW SALIENT FACTS ON HAITIAN COMMUNITY ECONOMIC DEVELOPMENT PRIMARY COMMERCIAL AREA PROPOSED NAME OF CREDIT UNION PROPOSED LOCATION PROPOSED SERVICES FIELD OF MEMBERSHIP MANAGEMENT, STAFFING 6 MEMBERSHIP PLAN OF OPERATION PROJECT DEVELOPMENT TEAM FUNDING REQUIREME1VT FOR ORGANIZATIONAL PHASE PROJECT TIME TABLE Iwirm'I'll � 3 S S 5 6 7 9 10 In 1! 11 11 12 12 13 14 16 17 R & R LEGER & ASSOCIATES, INC. Worldwide Financial & Marketing Consulting Services INTRDWCTORY STATDMNT The following proposal has been prepared by R A R Leger & Associates, Inc. for the purpose of.seeking initial funding for the organization of a credit union in Little Haiti, a non-profit corporation in nrocess of farmation. The contents of this report remains the sole property of R & R Lever S Associates, Inc. until implementation of the proposed project. No part thereof shall he reproduced by any means without its written consent. The proposal does not constitute in any way an offering to sell stack or participation in the proposed corporation. IF AN OFFER OF .ANY SECURITY OR PARTICIPATION IN THIS PROJECT IS MADE SUBSEQUENT TO THE PRESENTATION OF THIS REPORT, IT WILL BE ONLY THROUGH AN INVESTMENT PROSPECTUS ACC01:PANIED HY PERTINENT OPINION OF LEGAL AND TAX COUNSELS. The cooperation of Michael D. Lozoff, Attorney, Daniel Arty, Certified Public Accountant, Cayard & Associates, Public Relations and Community Affairs Specialist, Roger Aiamby, Director of HACAD, Henri Robert LaMothe, Director of Haitian Task Force, and Georges Daniel, Vice -President of the Haittan—American Chamber. of Commerce, 1.8 hereby acknowledged viith +zrsrttude for their services and contributed eff'irts which have brought ibc{it 0* decision to proceed with this credit anion project. j R & R LEGER & ASSUCLAT1.5, i► Co Miami, Florida August 8, 1948 # M.yir 4 ; .r 13310 S.W. 128 Street! Miami. Florida 33186 i (305) 232.431. �nF . k , 4 .rr3�fb'fx- , r�aS�i��[+h.�•ri< b .,i ' r"m. Z EIMCUTIOE SUMKAR2 NATURE OF PROPOSAL: Request for initial funding for the organization of a credit union in Little Haiti, an area 3 miles north of Downtown Miami, with a black dominated population of about 180,000 including some 40,000 Haitians. APPLICANT: Freedom Financial Association, Inc., a non-profit corporation in process of formation, whose name is to be changed to FREEDOM CREDIT UNION or LITTLE HAITI CREDIT UNION, upon approval of state charter. OBJECTIVES: To organize a non-profit cooperative society for the purposes of creating a common bond among community members and of operating a community oriented credit union for the benefit of a limited field of membership. OPERATING CONCEPT: * To encourage thrift among its members and create a source of credit at fair and reasonable rates, and to provide all its members the opportunity to pool their savings together, borrow from such pool, and invest together. * To open membership to everyone in the community and ensure that members shall be the only owners of the Association. * To make decisions democratically, on the basis of one meember, one vote. * To operate at cost by returning net surpluses on a patronage or use basis. SOCIO-ECONOMIC JUSTIFICATION: In any given community, savings can be considered as a major factor of economic progress since it opens the door to the development of consumer credit, a prime condition for the integration of community members into the nation's economic system. AREA BOUNDARIES: The Little Haiti area is located within the following boundaries: I-95 to the west, Little River to the north, Biscayne Boulevard to the east, and the Airport Expressway to the south. HEADQUARTER LOCATION The Corporation will be ideally located in the new Caribbean Marketplace Building, which will also house the Haitian Task Force, The Haitian -American Chamber of Commerce, and some 24 retail stores specializing in Caribbean products. PROPOSED SERVICES: While specific services to be offered by the credit union will be determined by the survey to be undertaken of membership needs, a limited range of financial, counseling, and other community services, will be offered on a gradual basis. Among those are savings accounts, check cashing, bill paying services, money transfers, consumer loans, credit cards, etc. FIELD OF MEMBERSHIP: 4embership is open to everyone in the community. Therefore, its field shall correspond geographically to the designated program area as delineated by the physical boundaries and shall include persons who reside or work in the specified area, their relatives, and all others allowed by state regulation, 0 BENEFITS TO MEMBERS b COMMUNITY: Benefits include a guarantee that savings are insured up to certain amounts, membership card and certificate, member recognition, monetary benefits, prestige to belong to a strong organization, self -advancement, group insurance, discounts in cooperating establishments, and just as important is the self-satisfaction of members vying with each other in expressing their faith and enthusiasm in consumers' cooperation as a means of restructuring and developing the life of their community. PROJECT DEVELOPMENT TEAM: * R & R LEGER 6 ASSOC., INC., Financial & Marketing Consultants * CAYARD b ASSOC., Public Relations and Project Promotion * LAW OFFICES OF MICHAEL D. LOZOFF, Legal Counsels * DANIEL ARTY, Partner LEVINE, COHEN, FEUR 6 CO., CPA All of the members of the development team are Haitian and/or Haitian - American except for Mr. Lozoff, legal counsel, who has been selected because of his renown specialization and experience in credit unions. MANAGEMENT 6 MEMBERSHIP: A steering committee formed by five members chosen among the most prominent community leaders shall constitute a leading group for the initial recruitment of about 400 sponsors for the project and to assure its successful launching. It is estimated that the organization could count between 2,500 and 5,000 members during its first year of operation and reach possible membership of 7,500 to 10,000 on a stabilized basis. A Board of Directors consisting of no fewer than five directors is to be elected and shall serve without pay in the manner prescribed by the bylaws. The board hires and supervises management, may appoint an Executive Committee, and shall elect from their own number Executive Officers. PLAN OF OPERATION: A complete plan of operation and detailed policies shall be established in accordance with the Florida Credit Union Act Statute 657.250 in order to "assure the fair, reasonable, expeditious, and equitable administration of the corporation."- The plan shall be submitted for the proper approval of the State of Florida Department of Banking and Finance. FUNDING REQUIREMENT FOR ORGANIZATIONAL PHASE: * Demographic survey * Marketing survey * Business plan * Legal Organization * Accounting * Marketing 6 Public Relations * Printing 6 Miscellaneous * Project Coordination TIME TABLE FOR ORGANIZATIONAL PHASE: 8 months $ 3,250 28,416 17,500 20,000 51000 20,000 5,000 11,250 $1100416 3 •ram-� . �, 'i�:•�. , ,. a t '. �. .�j�►� � �.!• � r � :.. Ob :jh A, li -A 4.^`• 1/ , •"�''w('' — 'gT 1 ,' 1, 1• r� •''!:• t -• ►� �%F 1'i � I .. �, _ _ '� - �•�' ', .!; •'� ' i� ,ram°. tt+ �• ,'.�'�•'�, •� ' � �•�•. 1• fK ,♦ • 1W 1 ►. ' i ''"� 1c,-' •V,`�F,••*r• ..� �•�..' � ,++ �Ar• �• � � � , r �" : . •- 1�,. (Tw '+^+ 1+ I .lam' y +• :.,I' �t� •� L• :C ' 'Ji '� ., "„r�''' {. c r. i.ly,••z _ _'�-•�•. �:• .1�:7' �'•a•,.i �• �• S► a L`• • Irtso, � st�t '1 •• _fir 1: • • • 1 4y�.4.i t� :. 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" +• i= _ y , =� i ~�i' ���.•Y�� •�'.;L„1� �`'S i (.{'f•t".'�. .'!: "J_4.c•C[_i_. •cf j�i �u' ,�: !_,�.. � ����:' ► �'a.i �r• ,1 +� �'�a }_6+, 4+f1"<+!- �•�'..,.'✓; � �'�� �Y ��-5 c �i' �itiL� i' � �. � : t l � •� . � : � ! 4 ����/t WM ftt �J�',�t+t•.q�ly�t,�, v,.,� �!� "�•x `*•pia °•�y �'1 �" q��r7i�} .•,•-�i' Y }' �7�t.,�wl. t ,,•1 ���'�.� N�' ��} �••.` ` �I' �iY'�'�' 1� t+,• i �, .j� ►T •1,'1►f,�'L �-+i�L•�• • t�• -. � w'rll� '�" 7 ► •fJ� �"f 7�•• ••Y � •� ~•'•.1�'�� .LiJ'• .����.:�J11 `Y ►'. �` tc .:,�•T L l� �► ��L i ' •, _ .1.• �1� i,'�1•,/•S �S L•?`,r'I�' � •�c,: �t +�"1� ��L'•*��,i.�.�i. , � �♦��J lfil:�i��: R ��`�� r 414 PROPOSAL FOR THE ESTABLISHMENT OF A CREDIT UNION L I T T L E H A I T I MIAMI, FLORIDA �• �x A Y�, z �t�` �`�. r r � tt( � ♦ ��. � f F III s � r� - f '. y { rr'L ,��f d� � J .�'i' • G ab "yt , If,�/'''y�� 'ty`: - f}i 0 PROPOSAL FOR THE ESTABLISHMENT OF A CREDIT UNION L I T T L E H A I T I MIAMI, FLORIDA STATEMENT OF OBJECTIVES: * To organize a non-profit cooperative society for the purpose of operating a community oriented credit union for the benefit of a limited field of membership in the area known as Little Haiti. * To provide such membership with the services needed at the lowest economically practicable net cost in the form and quality desired. SOCIO-ECONOMIC JUSTIFICATION: In his book "American Cooperatives", Jerry Voorhis, former U.S. Congressman and Executive Director of the Cooperative League, rightfully describes 'SAVINGS' as "The gateway to all economic progress for families, for communities, for nations. Man has never taken a step in economic progress unless he first sets aside the savings that could make that step possible."(1) According to Voorhis, the opposite side of the savings coin is borrowing. If people will save together - pool their savings and their credit - then they can borrow together and invest together. This is the cooperative principle applied to finance. (2) BASIC CONCEPT: To insure that the basic objectives of the credit union are met, customers and users of the proposed services shall also be the owners, and the only owners of the business. BENEFIT TO MEMBERS: ' SENSE OF PRIDE in establishing a common bond among community members and answering a common economic need in providing a range and quality of services not available through existing similar organizations or institutions. MATERIAL GAINS AND ADVANTAGES in receiving a range of services tailored for their socio-economic conditions with the confidence inspired by a non-profit organization essentially dedicated to and controlled by community members. MEMBERSHIP CARD AND CERTIFICATE giving members physical evidence of their social membership in the credit union and entitling them to benefits thereof. MEMBER RECOGNITION in credit unions monthly bulletin for members who have made a special contribution to the association or to the community. MONETARY BENEFITS, as any income produced form t:a credit union's operation, is returned to member customers in proportion to their use. PRESTIGE TO BELONG TO AN ORGANIZATION, state chartered and regulated, whose members are acting jointly for common benefit. SELF ADVANCEMENT, through continuous consumer educational programs (1) AMERICAN COOPERATIVES, Jerry Voorhis, p. 111 (2) Ibid., p. 113 17 PROJECT TZMZ TABLE AND FUNDING DETAILS: mom 1 2 3 4 5 6 7 Q DEMOGRAFRIC 3250 0 0 0 0 0 0 0 MARKIT SURVEY 8436 14800 5180 0 0 0 0 0 BUSINESS PLAN 7500 2500 2500 2500 2500 0 0 0 LEGAL SET-UP 10000 0 0 0 0 0 0 10000 ACCOUNTING 0 0 2500 0 0 0 0 2500 MARKETING-P.R. 6000 2000 2000 2000 2000 2000 2000 2000 PRINT 4 MISC. 2500 0 0 0 2500 0 0 0 COORDINATION 2500 1250 1250 1250 1250 1250 1250 1250 TOTAL/PERIOD $40186 $20550 S13430 $5750 S8250 S3250 S3250• $15750 TOTAL ORGANIZATIONAL EXPENSES: TIME PERIOD: $110,416 8 MONTHS h•� iit 3- •N ��a�n �{N � s SENSE OF ACCOMPLISHMENT because each member is both an owner of the association and a consumer of the services it provides. PEACE OF MIND in knowing that all deposits are guaranteed and insured by official and/or governmental agencies up to the amount regulated by law. OTHER BENEFITS such as term life insurance, low cost group travel opportunities, magazine subscription, discounts in cooperating establishments, participation with other cooperatives, etc... SELF—SATISFACTION of members vying with each other in expressing their faith and enthusiasm in consumers' cooperation as a means of restructuring and developing the life of their community. CREDIT UNION DEFINED: A credit union is defined in the FLORIDA CREDIT UNION ACT as "a cooperative, non—profit association, for the purposes of encouraging thrift among its members, creating source of credit at fair and reasonable rates of interest, and providing an opportunity for its members to use and control their resources on a democratic basis in order to improve their economic and social condition." It should be stressed that cooperatives are consumer —owned, customer —owned, patron —owned businesses that belong lock, stock, and barrel to the same people who use their services. Called "utopian socialism" by some,"philanthropic paternalism" (3) by others consumers cooperative have, nevertheless, experienced a considerable success among consumers desirous to organizing in order to regain a measure of control over their economic destiny. Cooperative action was seen as the little person's chance in a world of bigness. At present, there are about 16,500 credit unions in the U.S.A. with about 42 million members, holding nearly SO billion dollars in outstanding loans. They owe their success to the basic principles of the organization which were first adopted in 1844 by the EQUITABLE SOCIETY OF ROCHDALE PIONEERS, in Rochdale, England. These principles, called the Rochdale Principles (4), guarantee that a cooperative will: * Open its membership equally to all * Hake decisions democratically, on the basis of one member, one vote • Operate at cost by returning net surpluses on a patronage or use basis * Limit returns on investment capital with emphasis on service rather than profit * Educate its members and employees in the cooperative way * Cooperate with other cooperatives (3) THE CREDIT UNION MOVEMENT, ORIGINS 4 D6VELOPM9XT 1$50-1970.,.P. 1 (4) GUIDE TO BUILDING CONSUMER COOPERATIVES, University of wiseohsia 4h 7 When it is considered that a cooperative enterprise is one whose purpose is to provide its members and users with needed goods or services at the lowest economically practicable net cost and in the form and quality desired, it can easily be understood how such a project could fulfill the aspirations and needs of the Little Haiti community which is striving to improve the socio-economic conditions of its population consisting of such a large percentage of Haitian immigrants. LITTLE HAITI OVERVIEW: The community, situated about 3 miles north of Downtown Miami, is bound by I-95 on the west, the Little River Canal on the north, Biscayne Boulevard on the east, and the Airport Expressway on the south. The area, originally designated as Lemon City, was best known as Edison -Little River, before being surnamed LITTLE HAITI when it experienced a marked revival in it-s residential and commercial sectors with the settling of the Haitian immigrants. The currently estimated population is approximately 180,000. Like the Cuban migration, which in the 1960s and 1970s, turned an area of central Miami into "LITTLE HAVANA", the Haitian migration which started with the political oppression of the Duvalier regime and rapidly escalated in the 1970s turned major parts of the area in what is known today as LI':TLE'HAITI. Among the 1 million Haitians who have fled their country, approximately 110,000 settled -in South Florida and about 40,000 in Little Haiti. According to the INS, (Immigration b Naturalization Services) about 17,000 Haitians statewide obtained permanent residency in 1987 through a special program established under the 1986 Immigration Reform and Control Act. Among -those are residents of•Little Haiti who used to live underground and who can now come forward and live legitimate lives and better contribute to society as law-abiding citizens. The Haitian population in Little Haiti represents one of the largest single known concentration of Haitians in the United States and probably one of the oldest and most well established known urban Haitian communities. For this reason, the development of this community is and should be of prime importance for its political and civil leaders because of the considerable impact of the success or failure of an orderly and planned integration of an important segment of the population which was originally received and viewed with great skepticism and certain hostility, to say the least. In a report entitled "DEMOGRAPHY, SOCIAL STATUS, HOUSING AND SOCIAL NEEDS OF THE HAITIAN POPULATION OF EDISON-LITTLE RIVER" prepared by BEHAVIORAL SCIENCE RESEARCH INSTITUTE, Coral Gables, Florida for Metro Dade County and the City of Miami and dated February 1983, the economic consultants conclude their study in stating: "If the Haitian Community evolves like most other urban immigrant communities in America since the late 18009, upwardly -mobile Haitians will leave Little Haiti as fast as their capacity to assimilate (or at least, to obtain employment and housing) will allow them."(5) (5) DEMOGRAPHY, SOCIAL STATUS, HOUSING, AND SOCIAL NEEDS O! THE HAITIAN POPULATION OF EDISON-LITTLE RIVER, Behavioral Science Research Institute, p. 66 0 P s� IL a "It would be reasonable to expect that in time, the Haitian population in Edison -Little River will actually decline in size, and that the housing may deteriorate further, even as the Haitian population in Dade County becomes more numerous and better off economically ... The decline in the quality of the Haitian community remaining in Edison -Little River could further affect other parts of the neighborhood. Edison -Little River could become more than an overcrowded neighborhood in transition, a jumping-off place for Haitians in Dade County on their way to economic self- sufficiency. WITHOUT INTERVENTION, EDISON-LITTLE RIVER COULD BECOME A HAITIAN SLUM."(6) Well, assessing the situation in 1988, one has to acknowledge that the behavioral attitude of the Haitian community in the area has been favorably surprising, to say the least. Although the area is characterized by its high unemployment rate, its overcrowded housing, and a high percentage of residents who, up until recently were undocumented aliens, the community is kept relatively clean and is recognized.for its remarkably low crime rate. It is undeniable that in spite of the adverse image which has unfairly, but severely affected the Haitian community, it has imposed itself for its discipline, its law-abiding behavior, its dedication to work, and its immense desire to learn the language and the customs of the host city. Like the Cubans who have preceeded them, Haitians are grateful for having been able to flee persecution, repression, chronic misery and a political system which has purposely kept most of them in the dark age of malnutrition, ignorance, economic and intellectual slavery. The Haitians in Little Haiti are part of a demographic revolution taking place in the area; the new immigration laws have removed the constant fear of deportation and the sometime inhuman abuses of some unscrupulous employers. The civic organizations such as the Haitian American Democratic Club led by Jacques Despinosse, The Haitian Refugee Center led by Reverend Gerard Jean-Juste, The Haitian -American Community Association of Dade (HACAD), The Haitian Task Force, The Haitian American Chamber of Commerce, The Haitian Catholic Center, The Haitian Council for the Arts, The Haitian Doctors Association, the community's radio stations and newspapers, the City, County and State officials, all have made an incredible effort to create the atmosphere which has allowed the Haitians to achieve this "Haitian miracle" in a foreign environment. Part of the credit should uncontestably go to Monsignor Edward McCarthy of the Miami Diocese, Father Wensky, all the members of the Catholic, Protestant, Baptist, Episcopalian churches and all other religious denominations, the County and City commissioners, the Mayors of Miami and Metro -Dade, all of whom have contributed all of their available resources to assist the.Haitians in their dramatic fight for survival, freedom, and the respect of their human dignity and rights. (6) DEMOGRAPHIC, SOCIAL STATUS, HOUSING AND SOCIAL KZCDS Or HAITIAN POPULATION OF EDISON-LITTLE RIVER, Behavioral Scion" Research Institute, P. 66> a� P P E SALIENT FACTS ON TODAY-S HAITIAN COMMUNITY IN LITTLE HAITI: A few years ago, Haitians were the "boat people", "asylum seekers" or "economic migrants", as labeled by David Simcoz, Director of the Washington based Center for Immigration Studies. Most of them were oppressed, illiterate, unskilled, and deprived of the most basic elements of human dignity. They came on precarious vessels, from rural localities and small towns of Haiti. They sold or hypothecated all their possessions to buy their way to freedom. Even with such sacrifices, the proceeds were most of the time inadequate to satisfy the insatiable and the everly increasing demands of the purveyors of liberty, their Haitian brokers, and their foreign partners, with their sophisticated network of accomplices in all echelons of the business and official world. Giving up after long bargaining sessions which were always one-sided, they had to resort to something which could sound incredible in this twentieth century: an ingenious COOPERATIVE FOR FREEDOM under which several relatives, friends, church brothers or sisters, and/or members at large of their village or rural communities jointly pledge, sell valuable possessions such as land, properties, goats, cattle, and pigs to contribute to the departure of only one of them, with the only understanding, -a verbal agreement- that the lucky one selected will do his or her utmost to send for the others as soon as humanly possible. Yes, Haitians have in the 1970s and 1980s developed and refined a new concept of COOPERATIVE out of necessity, and out of their instinctive and traditional desire for freedom. In 1804, their ancestors had to purchase their independence from France, although they had won their liberty through a heroic war. The price was high. Like in loanshark transactions, with interest always compounding at an increased rate at each maturity, the principal of the debt was painfully reduced. It took nearly 146 years to extinct such an ignoble debt contracted out of despair when the leading countries at the time endorsed the action of France to discourage, in no uncertain fashion, any further movement of independence anywhere in the world. It was a vain effort, since it is well known that upon becoming the second independent nation of this continent after the United States, the first act of Haiti was to show its solidarity to the oppressed nations of the world. And to that effect, it provided all the support required to Simon Bolivar to liberate Venezuela first and to spread thereafter the historical revolutionary movement which was to free the entire continent. This sad, but sublime page of the Haitian history would not have its place in this memorandum if it was not to show that Haitians have always been seeking freedom, because of their intense love and respect for liberty in their blood. It came from a proud heritage preserved over the generations through a series of incredible sacrifices. This by itself can explain why the Haitian population in Little Haiti has been so responsive to tho opportunities it has received with job training, education, housie►g, rehabilitative health care and self sufficiency. They know more than anyoft else that one cannot be "half slave, half free" and that complete freedom can only be achieved when human dignity equates education and seat sufficiency. The Haitians have come to realize that while America is a "free" country, this does not imply that it costs nothing to live in it. �a t uk L E The following data and statistics, excerpted from the study undertaken by the Behavioral Science Research Institute in 1983, are eloquent: Despite unemployment rates four times higher than Dade County averages and twice as high as for Dade blacks, the Haitians show no greater dependence on welfare, Social Security, and other forms of poverty aid than the Dade County community at large. Proportionately fewer Haitians receive Social Security than any other group in Dade County. ' * Almost one-half of the Haitian population described itself as fluent in English; an additional one-third have rudimentary skills. This is clearly an indication of a strong inclination for education among the Haitians: 45% of all Haitians are enrolled in school of one sort or another, including 32Z of the adults. * 95% of the Haitians of school age are enrolled in schools, including 90% between the ages of 16 and 19. By contrast, only 70". of the Dade County population between 16 and 19 is enrolled in school. * Despite health problems and high rates of pregnancy, the Haitians in Edison - Little River are not totally dependent on public health care. Less than 30% go to Jackson Memorial Hospital; half go to private clinics. * Teenage pregnancies are low. * Substantial numbers of Haitians in Edison -Little River are acquiring property, educating their children, learning English and in other ways indicating a commitment to become part of the Miami/Dade County community. * The Haitian population is extraordinarily young, with a wean age of 24.3 years. 24% of the population is under the age of 10; 22% is between 10-24;. 29% between 25-35; 25% over 35. ECONOMIC DEVELOPMENT: Since 1975, the number of small businesses has 'increased from approximately 34 to around 300, mainly in the service sector and most recently small factories, dress shops, furniture, and cabinet makers. MEDIA: Some 50 radio programs in Creole keep. the population abreast of the situation in the homeland. This is justified by the fact that about 95% of households in Little Haiti have.left their families behind. PRIMARY COMMERCIAL AREA: The Little Haiti primary commercial area is located along 54th Street between N.W. 2nd Avenue and N.E. 2nd Avenue and along N.S. 2nd Avenue from 54th to 62nd Streets. The new Caribbean Marketplace being developed by the Haitian Task Force is situated on 59th Street and N.E. '2nd Avenue. Xg- modeled after the famous "iron -market" in Port -Au -Prince. ; # Y �n A 3,n r, 11 PROPOSED NAME OF THE CREDIT UNION: "FREEDOM CREDIT UNION" While Florida Statute 657.004 dealing with general provision pertaining to credit unions stipulates that no person shall use the words credit union or represent itself, in its advertising or otherwise, as holding itself out as a credit union except under specific conditions, the proposed name is submitted with the clear understanding that it only reflects a chosen appellation of an association to be formed and not of an existing organization. PROPOSED LOCATION: The association shall be ideally located in the Caribbean Marketplace on 59th Street and N.E. 2nd Avenue, in the heart of Little Haiti. PROPOSED COMMUNITY SERVICES: Specific services to be offered by the Credit Union will be determined by the survey of the community needs to be undertaken. The following is a partial listing of typical services considered appropriate and which could be offered to the community on a progressive basis, subject, of course, to budgetary constraints and subject to final determination of membership needs, and other pertinent requirements of regulating governmental agencies: 1—FINANCIAL SERVICES * Savings * Check cashing, money orders, money tranfers * Bill paying services, utility and other reoccuring obligations * Direct deposit of Social Security checks * Consumer loans and automobile loans * Credit Cards * Checking Accounts 2—COUNSELING AND OTHER COMMUNITY SERVICES * Member financial counseling: budget preparation, money management * Member/consumer education programs * Home —owner counseling: resident purchasing, renting and leasing, mortgage information * Food stamp distribution * Stimulation and development of cooperative activities including, but not limited to, art/craft cooperatives with special emphasis on youth centers. * Stimulation and development of a "Cottage Industry" in the community, under a cooperative format, in order to give work to those who are confined to their homes for a variety of reasons. (This particular aspect of the Credit Union Program can be of considerable value in a community where over 10,000 people are unemployed). * Mailbox,.photocopying, and fax services 3—COMMUNITY DEVELOPMENT Periodic contact with representatives of civic and religious organizations, Economic Development Administration, the Com anity Services Administration, the Department of housing and Urban Development, State, County and Municiple government representatives, This liaison will ensure a united effort for an effective devel.opmat of the community. El FIELD OF MEMBERSHIP: The Credit Union will serve the total community of Little Haiti. Therefore, its field of membership shall correspond geographically to the designated program area and shall include persons who reside or work in the specified area, their relatives and all others allowed by state and/or federal regulations. MANAGEMENT, STAFFING, MEMBERSHIP: STEERING COMMITTEE: A steering committee formed by five members chosen among the most prominent community leaders shall constitute a leading group for the initial recruitment of about 400 sponsors for the project and to assure its successful launching. MEMBERS: Depending upon the motivation which can be generated within the community, the Association could count 2,500 to 5,000 members during its first year of operation, and reach a possible membership of 7,500 to 10,000 thereafter on a stabilized basis. Whatever the exact amount, the figures are impressive and the impact on the community should be considerable. As in most cooperatives, each member gets only one vote. With their vote, members establish goals to guide and direct the cooperative's efforts. They adopt, amend, and revise bylaws; they elect directors, delegating authority to them to develop policy and evaluate management performance. BOARD OF DIRECTORS: The Corporation shall have a Board of Directors consisting of no fewer than five directors to be elected from the members in the manner prescribed in the bylaws. It is the Board's responsibility to safeguard member interest. The Board hires and supervises management. They interpret the goals developed by the membership and develop policies to ensure that the cooperative achieves its goals. EXECUTIVE COMMITTE: The Board of Directors may appoint an Executive Committee which may be authorized to act foor the Board in all respects, subject to such conditions and limitations as prescribed by the Board. The Executive Committee shall be composed of the Executive Officers. EXECUTIVE OFFICERS: The Board of Directors shall elect from their own number a President; one or. ;a more Vice -Chairmen, or one or more Vice -President, a Treasurer, and a Secretary. The Treasurer and the Secretary may be the same individual. The terms of the Executive Officers shall be one year, or until their eucCassers are chosen and have duly qualified. 1 �;, s P 13 PLAN OF OPERATION: A plan of operation shall be established in accordance with the Florida Credit Union Act Statute 657.259 to assure the fair, reasonable, expeditious, and equitable administration of the corporation. The plan of operation shall be approved by the Board of Directors and submitted to the Department of Banking and Finance. "The plan of operation, and any amendments thereto, shall become effective upon approval in writing by the department, which shall approve or disapprove any proposal within 60 days after the proposal is received by the department. "All member credit unions shall comply with the plan of operation, amendments thereto, and any rules adopted by the department under this part. "The plan of operation shall: a) Require that every credit union authorized by certificate of organization by the department, excepting only those specifically exempted by statute, shall maintain membership in the corporation. Failure to meet the standards and qualifications of full membership within the terms of a provisional guaranty certificate shall constitute a ground for revocation of the certificate of organization by the department. b) "Establish the procedure whereby all of the powers and duties of the corporation.will be performed. c) "Establish the procedures for handling assets of the corporation. d) "Establish the amount and the method of reimbursing members of the Board of Directors for reasonable and necessary expenses incurred by them as members of the Board of Directors. e) "Establish procedures by which claims against insolvent credit unions, which are required to be filed with the receiver or liquidator, are to be referred to the corporation. No claim shall be filed with the corporation unless the same is properly filed with the liquidator. The liquidator shall periodically submit a list of all claims filed to the corporation for its consideration, approval, and payment. f) "Establish the terms of office of members of the Board of Directors and the places and times for meetings of the Board. g) "Establish the procedures for records to be kept of all financial transactions of the corporation and its agents and the Board of Directors. h) "Contain any additional provisions necessary or proper for the execution of the powers, functions, and duties of the corporation consistent with this part."(7) (7) FLORIDA STATUTE 657.259 FROJECT DEVELOPMENT TEAM: The concept has been developed by Robert Leger, President and Senior Consultant of R 6 R Leger b Associates, Inc., Miami, Florida. He is a Haitian citizen with 25 years of continuous experience in financial i marketing consulting, specializing in economic feasibility studies. His considerable experience covers a large spectrum of the most diverse projects in various fields and industries such as development of construction systems 6 prefabrication, agricultural, agro industrial and horticultural projects, large timber producers'cooperative, shipping, transportation, housing, real estate development and commercial construction, hotels, restaurants b food processing, metal fabrication; processing 6 recycling, mortgage banking and development of second mortgage programs, hydroponic and aqua culture, industrial fishing, port development, large scale educational program, housing for the elderly and Adult Congregate Living Facilities, etc... These activities spanned over 60*countries in the Caribbean, North America, Latin America, Europe, and Africa. The following team has been assembled by Robert Leger to develop this highly desirable community project: R 6 R LEGER S ASSOCIATES, INC: Robert Leger, President & Senior Consultant; Project Coordinator Giovanni Riccardi, Industrial Engineer; Project Planning b Development Florence Leger Riccardi, Project Research and Marketing Survey Lisa Leger Mangones, Data Processing Consultant * Demographic and marketing surveys * Financial and economic studies * Project coordination CAYARD 6 ASSOCIATES Ringo Cayard, Senior Partner * Project promotion, marketing, and public relations * Membership drive * Planning, development b implementation of grant programs and subsidized financing. LAW OFFICES OF MICHAEL D. LOZOFF Michael D. Lozoff, Attorney * Preparation of bylaws and incorporation of non-profit association * Filing of Credit Union charter application * Development of all membership and operating policies as required to comply with state and/or federal regulations * Legal counsel to Credit Union and representation before state and/or federal agencies LEVINE, COHEN,.FEUR 6 COMPANY, Certified Public Accountants Daniel Arty, CPA, Partner in charge of project * Compilation of projected financial statements to submitted to state and/or federal agencies * Tax and accounting counsel It should be. noted that all the tea4.members are Haitians American with the exception of the legal counsel, who has because of his renown specialisation in credit union. be and/or Kateis been $910aW J1. ,. t EI a Mr. Losoff, attorney for the project, specializes in credit unions, and has been instrumental in the formation of most unions currently operating ,in Miami, among which: • Miami Federal Employee Credit Union (Federal Government Employees in Miami) • Homestead Air Force Ease • Southern fell • Professional Gulf Association (PGA) • Florida Credit Union League • Miami Firemen • International Longshoremen Besides, Mr. Lozoff serves as legal counsel for these and other credit unions, and is the author of material and practical strategies presented at numerous workshops in the industry. He was selected to be a member of the team for the formation of this credit union in Little Haiti because of his high credentials as one of the foremost experts in credit unions in South Florida, and also because of his long and outstanding working relationship with certain team members. E] A.. a_ x, •;lF .� 1-' it R'tK'* xa'= ,�G� r a e c _ '� .R r 6* Is FUNDING REQUIREMENT FOR ORGANIZATIONAL PHASE: DEMOGRAPHIC SURVEY $ 3,250 MARKETING SURVEY $ 26,416 BUSINESS PLAN $ 17,500 Data Analysis Product/Service Mix Comsiunity Benefits Marketing Strategy Field of Membership Management Description/ Boundaries of proposed PSA (Primary Service Area) Aerial Photograph of the PSA and Surrounding Area Banks, Thrift Institution Offices, and Businesses in the PSA Revenue Forecast Project Time Table Projected Operating Expenses Proforma Income Statement Budget Sensitivity and Breakeven Analysis Determination of Capital Requirement Financial Projections Projected Cash Flow Proforma Opening Balance Sheet LEGAL ORGANIZATION $ 20,000 Incorporation of Non -Profit Organization Preparation & Filing of Application for State Charter Development of Plan of Operation, Procedures b Policies .ACCOUNTING $ 5,000 Consultation during project organization Compilation Report of projected balance sheets, statements of operations, and changes in capital accounts at the end of the opening week and as of the end of the first -three years of operations. MARKETING AND PUBLIC RELATIONS $ 20,000 Assistance during project development a Program promotion and organization of comsunity meting# Liaison with community media including radio airing ties Request.for financial assistance and/or grants for the rs organizational and operating phases ;kK, PRINTING 6 MISCELLANEOUS PROJECT COORDINATION TOTAL ORGANIZATIONAL 9( {'. 9 0 0 0 0 0 0 0 , .. 0 0 A'