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HomeMy WebLinkAboutM-87-0861V a a CITY OF MIAMI. FLORIDA INTER -OFFICE MEMORANDUM �O Honorable Mayor and Members DATE of the City Commission SUBJEC' Cesar H . Od i o REFERENCES City Manager ENCLOSURES September 28, 1987"`E Small Business Development Pilot Program As per your Instructions at the September 24, 1987 meeting with members of the Liberty City Business Emergency Financial Assistance Committee and other concerned citizens of Miami, I have conducted an extensive review of Miami Capital Development, Inc.'s loan guidelines and practices and have had Coopers and Lybrand verify loan information in an attached letter. _ We are recommending that $250,000 be earmarked for a pilot program In the Model City Target Area that differs significantly from the Miami Capital Development. Inc.'s proposal dated September 24, 1987. This program emphasizes 1) more flexible loan eligibility requirements; 2) the expeditious processing of loan applications; and 3) a technical assistance program to enhance the opportunity for the development of participating businesses. If this program is successful in achieving Its objectives, we will seek to expand It to other target areas of the City of Miami by applying for additional Federal funds. This program, to be known as the Small Business Development Pilot Program (SBDPP), will feature the following innovative measures: a) reduce length of loan application to two (2) pages; b) reduce processing time of loan to a maximum of fifteen (15) working days (from the time that completed application Is approved by the Screening Comma ttee) ; c) streamline steps to be taken to process a loan; d) provide for community Input from the Model City Target Area in the loan process; e) provide for a low Interest rate of 3 percent; f) stipulate a six month moratorium on principal and Interest; g) reduce collateral requirements to the extent of business assets only; h) waive business Insurance requirements; and 1) provide for an extensive technical assistance program (to Include market research) that corresponds to the drawdown of loan funds and assists the business to operate effectively. L.-" 1 -a _a 0 Honorable Mayor and Members of the City Commission 4 Page 2 September 28, 1987 The loan guidelines that we have developed specifically for this pilot program are attached. It should be noted that existing businesses that satisfy the loan requirements of Miami Capital Development Inc.'s (MCDI) regular loan programs will not be eligible to participate In this program. Once the loan application is completed, we are proposing a significantly streamlined three (3) step procedure for the processing of loans under this pilot program. As previously mentioned, It is anticipated that the maximum length of time required to process a loan (from the time that completed application Is submitted to the Screening Committee) will be fifteen (15) working days. Finally, In order to effectively Implement this program Immediately, the following actions are required at this time: 1) Authorization to adopt this pilot program, including the proposed loan guidelines; 2) Authorization to designate $250,000 MCDI funds for the purposes of establishing this program; 3) Allocation of an amount not to exceed $30,000 from Community Development Block Grant Funds for the purposes of: 1) employing an independent minority CPA firm to assist in preparing and analyzing the loan application package; and 2) employing consultants that may be necessary for technical assistance services that may be too specialized for City of Miami staff to provide; 4) Selection by members of the City Commission of five representatives to serve on the Loan Committee; 5) Authorization for City of M i am i to contact the "Big 8" CPA firms, local public/private agencies, private >= businesses, etc. to assist in this effort. =' r �► SMALL BUSINESS DEVELOPMENT PILOT PROGRAM GUIDELINES a) BUSINESS LOCATION: To be eligible, businesses must be located within the City of Miami boundaries of the Model City Target area; b) PURPOSE OF LOAN: Inventory and/or physical fixtures/equipment or any other business purpose which Is satisfactory to the Loan Committee; c) AMOUNT OF LOAN: 1) If business Is In existence for at least 1 year will be eligible for a minimum loan _ of $3,000 and a maximum loan of $20,000; 2) businesses that have been In existence for at least three years will be eligible for loans up to $76,000; d) INTEREST RATE: Fixed at 3 percent; e) TERM OF LOAN: 1) for businesses receiving loans In amounts from $3.000 to $20,000, term Is 3-5 years; 2) for businesses receiving loans from $20,000 to $75,000, term is up to 10 years; f) REPAYMENT: Loans to have six (6) month moratorium on principal and Interest; g) COLLATERAL: Business assets only. No loans will be rejected on the basis of Insufficient collateral only; h) BUSINESS INSURANCE: If business can demonstrate that It can not purchase Insurance at a reasonable price, this requirement will be waived; I) TECHNICAL ASSISTANCE: The loan will be conditioned on the applicant consenting to receive the recommended technical assistance to be provided by the City of Miami. Department of Community Development. Those businesses who do not meet the minimum screening criteria will be referred to the proper technical assistance program and once capable of meeting the screening requirements, may - be reconsidered should funds still be available In the t program; 7. j) DISBURSEMENT OF FUNDS: To be determined. by l.oAn Committee, and based on a schedule of programmed technical 4 assistance activities to be provided to buslness. Funds will be deposited Into escrow account and will be: disbursed as approved by the City of Miami Department of Community Development In accordance with the recommended technical assistance program. ; g riy 5'�_ . .. ..... _ . .,-' .-. ., ... ...- .,. 1::,R . _ .... . . . , .,, e::_.,.k ,}. Ki . j •%X. .L`kri.:£hY°LI '9.ZS:Ir �e S- ��YK h — STREAMLINED THREE (3) STEP PROCEDURE OF PROCESSING OF LOANS FOR SMALL BUSINESS DEVELOPMENT PILOT PROGRAM STEP 1 - of Miami Ittee (to receive staff support from Cit: a) Composed of one (1) representative from each of the following Model City based organizations: 1) Martin Luther King Economic Development Corporation 2) Miami -Dade Community College Entrepreneurial Institute 3) Mlaml-Dade Chamber of Commerce 4) Liberty City Business Emergency Financial Assistance Committee 5) Edison Center Merchants Association b) Functions to Include the following: 1) Develop criteria to be used in screening loan applicants 2) Review application for completeness 3) Interview loan applicant 4) Issue recommendation on loan applicant based on established screening criteria 5) Submit recommendation to loan committee STEP 11 - Independent Minority CPA Firm a) Functions to Include the following: 1) Review of loan application package 2) Perform site visit 3) Issue recommendation on use of funds 4) Issue recommendation on technical assistance required by business 5) Subm i t recommendation to loan commi ttee STEP III - Loan Committee a) Composed of five (5) Individuals to be selected by the City Commission b) Review loan package and decide award of loan. If application Is not approved, business may reapply to this program once they have fulfilled the technical assistance recommendations. �yJtT t 4 1 �yTi�'. 44 September 26, 1987 Mr. Cesar Odio City Manager City of Miami 3500 Pan American Drive Coconut Grove, Florida 33133 Dear Mr. Odio: U1 In response to the information requested at the September 24, 1987 meeting with representatives of the Liberty City Business Emergency Financial Assistance Committee and other concerned citizens, we are enclosing the following materials% 1. Schedule A - Summary of Loans by Ethnic Group. 2. Schedule B - Summary of Loans disbursed by Target Area. 3. Schedule C - Combined Summary of Loans disbursed by Ethnic Group and by Target Area. 4. Schedule D - Summary of Loans Disbursed of $50,000 and over and under $50,000 by Ethnic Group and by Target Area. 5. Detailed report by Target Area showing each individual loan, including Borrowers' name, business address and other in- formation. 6. 7. Legal opinion issued by State Attorney Janet Reno (dated 12-2-86) on the $300,000 Garden Cove Loan. Copy of Page Nos. 26, 27 and 28 of the September 30, 1985 General Accounting Office Report, entitled, "Federal Funds Promised, Provided, and Used in Dade County, Florida, After The May 1980 Civil Disturbances". It is important to note that Page No. 26 stipulates, "We found that MCDI had loaned out the entire $4,800,000 grant and was using repayments of principal and interest to make additional loans. As of February 28, 1985, 72 loans totaling $4,860,437 had been approved". t} Fre/./ b,: nnv %LRt Miami Caput Development inc. 311 Nwh000 131h Torroa, Mkwa, f1mWo 33132,1621 Tel, PPSI 354.1025 a�- ass h ,Nkfa�a`, .. y.._.....,t ` ..,.... -,_ r 3:. :.r;E....tcv.......«✓ix�e:"sGSiri��Nn'�"�4..i'. Mr. Cesar Odio Page 2 September 26, 1987 We would be pleased to furnish you with any additional in- formation that you may require. Sincerely yours, �_*- - XZ7-' r. Pablo Perez -Cisneros Executive Director PPC; tpc Enclosures SCHEDULE A MIA.MI CAPITAL DEVELOPMENT, INC. SUMMARY OF LOANS BY ETHNIC GROUP AUGUST 31 1987 No. of Loans g A.'nount % BLACK 90 62.5 $ 4,590,739 44.0 HISPANIC 33 22.9 3,599,750 ANGLO 34.5 17 11.8 1,350,000 CHIVESE 12.9 - 2 1.4 100,000 OTHERS • 9 2 1`4 Ea?,000* 7.7 TOTAL 144 100 $ $10,440,489 100 $ K- � ^'}A *2 Loans to Insurance Exchange multi-. ethnic syndicates. of America which h is comprised of Ez yd s ni'� i `u: Btiti Y� to k - -._- y' ,....=w r7'�d'�"�1£•1-u?�a`Ji�lli" eve' 4....�.a. ._ SCHEDULE B MIAMI CAPITAL DEVELOPMENT, INC. SUMMARY OF LOANS DISBURSED BY TARGET AREA AUGUST 31, 1987 Area No. of Loans $ By Area Amount $ By Amount 00 Coconut Grove 2 1.4 $ 50,000 0.5 _ 01 Little Havana 1 0.7 300,000 2.9 02 Downtown 11 7.6 11707,000 16.3 7 4.9 365,000 3.5 03 Overtown 04 Wynwood 6 4.2 720,000 6.9 _ 05 Allapatah 11 7.6 8358800 8.0 06 Model City 26 18.1 934,000 9.0 07 Edison Little R. 31 21.5 1,628 439 15.6 'u 08 Carol City 11 7.6 372,000 3.6 4 09 Opa Locka 8 5.5 904,500 8.6 ' w 10 West Little R. 29 20.2 2,548,750 24.4 13 Perrine 1 0.7 75,000 0:7 TOTAL 144 100.0 $101440,489 10001 . f h � s M 9 _ .. . . - 1 d` e► . ` lk SCHEDULE C MIAMI CAPITAL DEVELOPMENT, INC. COMBINED SUMMARY OF LOANS DISBURSED BY ETHNIC GROUP AND BY TARGET AREA AUGUST 31, 1987 Total Loans Black Hispanic Anglo Chinese other No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount Oil Coconut Grove 2 50,000 2 50,000 01 Little Havana 1 300,000 1 300,000 R,.. 02 Downtown 11 1,707,000 5 354,500 4 552,500 2 800,000 7 365,000 7 365,000 03 -Orertown M Lynwood 6 720,000 1 150,000 3 400,000 2 170,000 ,04 D5. �►llapatah 11 835,800 2 35,800 9 800,000 tl� yodel City 26 934,000 23 7090000 3 225,000 `-_ 7 Hdfson Lithe R. 31 1,628,439 20 lt072,939 2 45,Soo 7 410,000 2 ioo,000 }v 11 372,000 8 350,000 3 22,000 Carol City iD,p , ocka 904,500 $ 7 604,500 1 300,000 Y 29 2,5488750 15 899,000 10 1,4041750 4 2458000 fe D at Little R. i 75,000 1 75,000 - *r 144 10r440,489 90 4,590,739 33 3,599,750 17 1,350,000 2 100,000 2 800',000 s 1D►T,A'L 100$ :100! 62.5% 44% 22.9$ 34.59$ 11.8$ 12.9$ 1.4$ 0.9$ I.4$ 7.7$ r �' lA*n.Yr� y'v `-r✓" 3 u w 90W ,z i u Fo A I 6 1 i I V $50,000 AND OVER Coamut Grove Kittle Havana Downtown (1) Overtown (1) Wy mood (1) Allapatah Model City (3) Edison Little R. (8) Carol City (3) SCHEDULE b SE ' OF IDANS bISHUiSW OF $50, 000 AND OVER AND U1= $500000 BY ETHNIC GROUP AND 9Y TARMT AVA HISPANIC MGM C HINESE (1) 300,000 225*000 (4) 5528500 (2) 800,000 260,000 150,000 .(2) 3750000 (2) 170,000 (7) 730,000 355,000 (2) 200,000 858,337 (1) 300,000 (2) 100,000 229,000 Opa Lodca (5) 541,500 (1) 300,000 West Little R. (9) 762,000 (8) 1,367,750 (4) 245,000 Perrine (1) 75,000 _ TOTAL (31) 3,380,837 (23) 3,400,250 (10)1,215,000 (2) 100,000 (2) 800,000 - UNDER $50,000 oxmut grove (2) 50,000 Little Havana DownboMn (4) 129,500 Overbom (6) 105,000 s. WMuiood (1) 258000 r Allapatah (2) 35,800 (2) 70,000 Model City (20) 354,000 (1) 258,000 Edison Little R. (12) 214,602 (2) 45, 500 (6) 110, 000 Carol City (5) 1218000 (3) 22,000 Opa Lodca (2) 630000 r; West Little R. (6) 137,000 (2) 37,000 ' Perrine Tw`A1'+ (59) 10209,902 (10) 199, 500 (7) 135, 000 ., Y, �eel.v.s. ,_ .' .... .':... . :. ':.'y '" - :�' .. :. .: ':a:...._.. ...___ •, ._..._. y_ ..» ._ ,..z•.,,e=e-.Y 2"�bu._i.3 ..a r..... : ,tea ��r���•h3:.Ys 'L�{7,M� ,.. _ INC. nIANI STAT Ai1°IXAL g REPORT DEYELOPNEK AS OF &VO C 21.. l$' $Z Target Area Amount of Loan a '.. 1ta .,t:-,d Address .__ Ethnic aa►. Clasp I-$2 IiidoDxy, . fit Hat B Q 8 Coc. ,rove 30, 000 3749. Grand Avenue . S-iQ-82 Hidany Fit Bar 8 Q B Qx.Grave 20,000 3749 Grand A%%MM 3k, �i. 'C s � t K;V1,Lei Source of Balance Funds Outstanding Status HUD 28,604 Atty. 19,585 Atty. 11 11 maw ..ana &acres* ',bi '`�'roer , Ethnic Target Awount Source of Balance • 0. �n ' Close Area of Loan Runde Outstanding Statue $ (buege H i. 1301 Sw l Street Lit.IJay. 300,000 m!►i 265 94 s S C�srent • i S+ '. 7 i 4� ZY 1 Y ` n MI, AUZ-QUXAL- DEVE1 AOM uT *s-- . BTATUB AIRPORT AS OF AUg sT 3 + UZ 4i 4 ter of Loan VDIMM `SMd' Addrfoo of Borrower Bthnio Target et Amount Source of Balance Class Area of Loan Funds Outstanding Statue Ofteber Club B 1018 NW 2nd Avrinus► Doamtwon 10 000 90727 AttDrney 24455tSE )At� of Ante�cion Other Downtown 5000000 COM. Dev. 360, 000 Current - i BS Ins�a�nq�e S�oohrnga of America Other DO ntoown 300, 000 . 245 Si let street 2490941 Current Rayuell (blip. B 460 M 2nd Avenue Downtown 40,500 OIXd 42,168 Ctirrent i4tewti Seafood and ear H 401 KW-ayne 81vd., Suite 216 I95,000 Bayside 1950000 Current 408a,1ys8irds lvd. Suitte 5�� • 143 e Downtom 35,000 Ba ide Ys 35 000 current t ,4irS7 Pete's Pint& n i Bar, Inc. Biscye Blvd., Sate 112 B 44,000 eaysfee 44,000 Current � 4, IM An= hot70e, Inc. oayn 401 eis• Blvd., Suite 210 H 69,50 0 Bayside 69,500 i Current � j0-!'7 8avat�nih 5�ntilea 4b1 Bisatyne alvr'!.. Suite 200 a Downtown 225, 000 Ba yside 225,000 current r i DwInts Wa Tmvsrn-on- tI Dvwntom 213• 000 Hayside 213,000 Ctirrent :Si*aayn• Blvd., Suite 242 W{{ LL 3-30-V I& Spaghetwia I=. H 401 Biscayne Blvd., Suite 212 tit: S-07T -W YbC1dyS iielierS InC. H 401 Biscayne Blvd., Suite 236 use.° t Y 5 dkt x 066:, i, .a..YJ+ Downtown 75,000 Sayside 75,000 current Downtown 25,000 Bayside -0- 03 mtitted not Disbursed 11 11 '9• �. Date of Lem Memo and Address of Borrower Ethnic Class Target Area Amount of Loan ot=/82 Two Butchers Supermarket a Ovr.Twn 20,000 2060 NY 2nd Avenue iI22/S2 TV* Butchers Supermarket B Ovr.Twn 10.000 2060 XV 2nd Avenue 10/22142 Pop's Cleaners 8 Ovr.Twn 20,000 13W MW 3rd Avenue 10122142 Pop's Cleaners B Ovr.Twn 10,000 1337 Hof 3rd Avenue 4129/83 14 Street Liquor i Package,Storm B Ovr.Twn 20,000 148-138 NM 14th Street 14 Street Liquor i Packages Store,- 8 Ovr.Twn 25,000 148-138 KM 14th Street Super Save ` Supermarket B Ovr.Twn 260,000 1490 MM 3rd Avenue Si191'6? Moor** s. Orocery B Ovr.Twn 25,000 122 NM Loth street 1 Source Balance Status of Funds Outstanding 8DA 9.562 Atty jo HUD 1,420 Atty FDA 17,116 Atty HUD 7,161 Atty HUD 20,000 Current HUD 25,000 Current COf! 239,767 Atty COM -0- Approved not. diet. MhAhI INCH C+I,�PI?AL�D_EYELOP_UE T. , STATUS REPORT AS OF AUGUST 31, 19A7 Date Name and Address Ethnic Target Amount `'' Hof' Loan of Borrower Clams Area of Loan u 1+/7l�1 Terminal Fabrics Co. A 120 NW 25th Street 713/65 Purpleheart Manufacturing 8 SS NE 24th Street - WAG/" Seminole Awning Co. 2350 NW 2nd Avenue 3120167 T i R Store Fixtures H 2700 Miami Avenue �} <N. 31201417 T i R Store Fixtures H 2700 N.,Miami Avenue " 3iii+/S7 Pinelli, Ina. H 2626 MW 2nd Avenue ; S/20/89 Miami Power Boat Inc. A 2101 NW Miami Court y 4 ttx,• i 'a1 *iiltla tt, }} A ' i � I III I ' Y Fj..�����'I' I'! Iyyli�ti `41°l l i g? 33,�{t 4 1 it ['. 'i 'at'.b.`rF'+4E A.. '!d'S•7r.!+> >r ., -. .. _ it �iV,l.•,.I, .�'l� ��Ialfi��Muf�i'II��R§F�'idi.L i$.�,i�,� '+ rx4S a , Source Balance Statue of Funds Outstanding WynMood 100,000 HUD 72,137 Current WynMood 1500000 con 93,732 30 WynMood 70,000 COM 68,924 Current WynMood 250,000 COM 230,000 Current WynMood 23,000 COM 25,000 Current WynMood 125,000 COM 123l Current- wynwood 3001000 COM _0 not Disb. t '' 3 MIAMI COITAL DEvc_r.na .ENT. INC. M: STATUS REPORT AS OF AUQUST 32. 1987 fRi• Date Naae and Addreea Ethnic Target Amount Of Loan of Borrower Class Area of Loan at10 11120/81 Charles May P. A. B (16580 SW 103 Plea*) Res. 1400 NM 36th St. • 207 11/20/81 Charles Kay P. A. B 116580 SW 103 Place) Res. 1400 NM 36th St. ♦207 ' 6/9l82 Atlantic Wholesale H 1161 NM 36th Street 9124f82 Eno Flooring t Furn. Inc. N 3408 NW 17 Avenue b0� ' W2 M Eno Flooring i Furn. Inc. H 3408 NW 17 Avenue 6✓6!$3 AIA Paint A Auto Shop H 2005 NM 10th Avenue 7.`29183 Construction Catering H 2472 NM 21ot Terrace il'9�/84 Trujillo t Bonn H 1260 NM 22 Street VfVW85 American Fruit a Produce H � 1344 RW 23rd Street ` s 4�►"24187 Hairstyles by Mr. Ralph B 3731 NM 17th Avenue 7, NOW11ne Products H .10370,SM,184tA Terrace Source Balance Status of Funds Outstanding Allop. 11,500 EDA 6,881 Current Allap. 24,300 HUD 68 Current Allap. 75,000 HUD 55,432 Atty Allap. 70,000 HUD 50,100 Atty Allep. 45,000 EDA 37,351 Atty Allop. 25,000 EDA 10,179 60 Allep. 130,000 EDA A2, 080 Current Allap. 200,000 CON 157,067 Current Allap. 50,000 CON 33.146 Current Allep. 50,000 COM -0- Approved not diab. Allap. 220,000 EDA -O- Approved not dieb. I I ■ } y i �►Z/87 American Saving Machine H Alinp. • 130.000 HUD 130,000 Curran � 2295 NM 20th Street i 7120#4117 American Sewing Machine H Allap. 75# 000 HUD 75, 00o Currant I r 2293 NM 20th Street - f Y L a S ti Ss„➢ nt.`rrx' ' t y!} 1 ICI I II i r II I I i rt�rt• ��etTAL DC1YfrL.QPMf�,MT. • .....T..8 gCpOgT As or AUGUST 31. 19g7 , t Ethnic Target Amount Source of Balance das+rr . Mase .nd� Addr*0 Statue !r.:. of 6orrorer Class Area of Loan Fund. Outstanding A,n�Diy/�1 Entertain*ent Galore g Mod, Cty 20v 000 EDA lA, 041 Atty 2 .. 62r2S' *W . 7th Avenue ,i1►�i/i g Mod. city Eddie's Drugs 20, 000 EDA Paid oft lOD1 Nw 34th Street 131��#3 g Mod. Cty 30, 000 HUD 21,743 Atty Crewack 760 jww street' g hod. cty 7,000 HUD 5,149 Atty ,,�'.�,�►� .:Robbie. a Discount Nwnue kk' g Mod. Cty 5,000 HUD 5,000 Atty Ml+1~, itobbi•' s Discount '10' .NM 7th 'Avenue ,Robb,W e Discount 8 Mod. C* V 10.000 Atty r f 7� 1 Nw 7tb4venue Aberty Flovers by Tullis 8 Mod. Cty 20, 000 HUD 1i, 326 Atty NM ' 17th` Avenue g Mod. Cty 9, 000 EDA -0- Paid off Daniel Ross, 9tf . NN "'tl► `Avenue r � niel Mdas g iMod. Cty 25,000 EDA -0- Paid off h 1►venue {� ' Paid off �3 g�►s Dsv� A Mod. cty 2s, o0o HUD -0- �itreet 1i.� Fi lrw III I �, ;� 1 I � Ky I i!. F�t'.. • • _. } I i � ��I I !I r „i ��'Nlil 191��'�`,, 1�TaiJq.����!"r`6�i��i��P•r�Y�d�u'�+�ac��4�w��.,sre..� ;� E; •'_ _ — — . i -- - ,_, .. �" ►� Jeckeoe►'s ,;ltsrkeR Avenue B Had. Cty 20,000 ;:NM .12th • rim -• : 8 Mod. Cty 15,000 Oil 3m :NM 12th Avenue, :'.p13 h �/!a. iiel�lltt.�ii at Mi+3Mli . a Mod. Cty 10,000 10d3 7flt 34th, Street 114 Debric Inc. B Mod. Cty 40,000 {; 46s0 NM 7th Avenue 7126143 Creole Fried Chicken B Nod.Cty 230,000 6700 to 7th Avenue 7✓2g/$3 Creole Fried Chicken 0 Mod. Cty 35,000 6700 NN 7th Avenue 1143 Robbie•s Discount B hod.Cty 13,000 7101 NM 7th Avenue &WO/M Jackson's Market B Mod. Cty 15,000 3M MM 12th Avenue 3laiW►34 Porter Oil Inc. 8 Mod. Cty 16,500 1073 MN 34th Street W44 , Porter, :011 Inc. 0 Mod. Cty 16, SOO 873 NM 34th Street 91!'i:1/i4 Jey'+r 1 Drugs Ina. A Mod. Gty l3O, 000 1426 MM 34th Street ' M *Tlp Draw, Ina. A Nod. Cty 50,000 1+498 -1t11 ' 3+4th Street ' Alx it *al Press Ina. 8 Mod. Cty so, O00 y x;� 34th Street a F ,lonrors ,by Tullis. B Mod. Cty 10,000 ; 4 iiP 17t'A" Avenue CDA 20,000 Atty HUD 15.000 Atty HUD -0- Paid off HUD 40,000 Atty HUD -0- Paid a!t HUD -0- Paid off EDA 13,542 Atty EDA 150000 Atty HUD 11,427 Current con 11,426 Current CON 122,252 Current CON 24,742 Current con 46,378 Atty HUD 7,376 Atty U ot,: MAIAM , Ina. 6 Mod. Cty 20, 000 708 MW .6 ►d , !root Illi7 E. so Inc. . 6 Mod. Cty 30,000 708 KV : 6i" ttiredt 7�I1W r ;, Ioternatioaal Car Mash 8 Had. Cty 172,357 2498 NN;51 Street • a Y - e� 5 !4 r� f IMMUNE EDA -O- Feld •tt EDA 28.704 Current COM -O- Coee tted, not dleburwed P] Fm 10/1♦82 Lou Cousins Book/Record Shp B Ed. Lt. Riv 12,850 EDA 6,308 Atty 7858 NM 2nd Avenue I -11/19/82 ICayard ' Enterprines B Ed. Lt. Riv 50,000 HUD 26,544 Current 6220 M. Miami Avenue 1"f 12/9/82 General Furniture Mtq. H Ed. Lt. Riv 20,500 HUD 19,074 Current 7125 NM 6th Avenue 5/13/83 AA Coffee Service A Ed. Lt. Riv 25,000 356 ME 80th Street 9 7/28,/83 Cart Parts Inc. A Ed. Lt. Riv 15,000 378 ME 56th Street 8/31/83 Michelle Shoe Repair B Ed. Lt. Riv 10,000 4734 HE 2nd Avenue 9 11/1,7183 Lemon City Market H Ed. Lt. Riv 25,000 6212 HE 2nd Avenue w: D ` 11130/83 Belafonte Taooloy Ctr. B Ed. Lt. Riv 250,000 645 KM 62nd Street i 300 1219163 Leasa Industries CH Ed. Lt. Riv 50,000 6103 AM 6th Court 1219 /83 Lea Iwa Industries CH Ed. Lt. Riv 50, 00 6103 NM 6th Court + } 213184 Clinic 54/Dr. H. Hall B Ed. Lt. Riv 50,000 ix t 54. NB 54th Street Z/17�1! Sabir Converting Co. B Ed. Lt. Riv 34,202 m + 7245 SIC. 4th Avenue x i '�.ii'9i'� Alpha Business Service B ird. Lt. Riv 89,837 } 6270., i1C . 2nd Avenue i sysn �".rs Yi�.aL �� � ������I ��,i ,�'P�+�� I .'������I��`���i, .����r'�, q G�+�!'SI�R�� IF'hbfl!'+�i5�p"�r��4��'��ta#� .•r�rza;�� r _ i_ I�s� i HUD HUD EDA EDA EDA EDA EDA EDA HUD EDA r 14,414 3, 496 9,544 -0- 200, 227 28,662 35,331 27, 483 17,920 87,137 Current Current Atty Paidoff Current Current Current Current Atty Atty I I ». i� Date i 41c.�a1t� NIANT CAPITAL $ZAT S REPORT Nave and Address of Borrower DEVELOPMF, AS Ethnic Class L INC. OF AUGUST 31, 1987 Target Amount Area of Loan Source of Funds Balance Outstanding » Status 30'':�i#1 Cheryl •r Day Care 8 Ed. Lt. Riv 40,000 EDA 8,278 Current 200'NM'47th Street . _ 2l51$2 Cayard Enterpririme Inc. ® Ed. Lt. Riv 105,000 EDA 53,685 Current 6220 N. Miawi A-.enue ' 310042'` ' n1chellw Shoe Repair B Ed. Lt. Riv 7,000 EDA 5.526 Atty 4734 HE 2nd Avenue Y 31*9082- Michelle Show -Repair B Ed. Lt. Riv 13,000 HUD 10.805 Atty 4734 HE 2nd Avenue 3i/ M2 Clean' Envtronuent B Ed. Lt. riv 7,000 HUD -0- Paidoff 150 MW 68th Terrace 3i 'ii►82 Ciean Environsent B Ed. Lt. Riv 3,000 EDA -0- Paid off 130 NM 68th Terrace 8113�82 Football Sandwich Co. A Ed. Lt. Riv 18,000 EDA 6,032 Current 8484 HE 2nd Avenue If 61131412 Football Sandwich Co. A Ed. Lt. Riv 7,000 HUD -0- Paid off 8484 HE 2nd Avenue r. �123/82 Joel Polliard 8 Ed.Lt.Riv 20,400 EDA -o- Paid off 3062 HE 2nd Avenue 8125/82 Joel Polliard 8 Ed. Lt. Riv 40,000 HUD -O- Paid off 5062 ME 2nd Avenue fs� 1' #�► SS Cheryl's. Day Care 8 Ed. Lt. Riv 15,000 HUD 3,347 Current roy5 a 2M NM 47th ' Street it ii82 L*o Cousins Book/Record Shp B Ed. Lt. Riv 12.150 HUD 5,678 Atty 7858 AW 2nd Avenue 11119184 Innocent Fabrique g Ed. Lt. Riv 158.500 ., 6999 NE 2nd Avenue ' 312185 Radiator 'King A Ed. Lt. Riv 30, 000 .,; .. 201 W..37th Street l'i7/86 Cecile Day Care Ctr 6 Ed. Lt. Riv 60, 000 _ ...... _.- 183 -HE 57th - .Street 316186 - -Gordon Cove Properties A Ed. Lt. Riv 300,000 6281 HE 2nd Avenue s:. 1130187 Cart Part• Inc. A Ed. Lt. Riv 15,000 378 HE 56th Street 4122/87 Comprehensive Health Ctr. B Ed. Lt. Riv 95,000 w 185 HE 84th Street j2O/87 Meireke Discount Muffler H Ed.Lt.Riv 95,000 625 HE 79th Street A Ed. Lt. Riv 42,000 '71_13 f&7 Radiator King 201:NM 37th Street t s � s -rrx t � II X 1 i I COM 811839 Current con 24,970 Current EDA 53,380 Current COM 300,000 Atty HUD 13,755 Current. EDA 94.134 Current COM -0- Approved not dab. COM -0- Approved not dieb. I STATUS �(j� E'APITAL REPORT DEVELOPMENT, AS OF AUGUST INC. 31. 1987 • ftaasr"and Address Ethnic Target Amount Loan Source of Funds Balance Outstanding Status of Borrowor Class Area of _. 1�dversai market B Carol city 10,000 EDA 16,384 Attorney U020 W 37 Ct. Siam& Fish Market I1 Carol Citj 10,000 7,871 Attorney 4605 IN 199 Street CarOl City 64,500 EDA 39,690 Current F - B- 2 power Grocery 3602 NW 183 St II Carol City 8,000 EDA Paid Off Paid Off ` Hydm Cleaners 3460 NW 171 Terr. i 3-�6,82 Cleaners (same as above) H Carol city 4,000 ITUD Paid Off Attorney i y:1.4;isa=pea �nbezarises B Carol City 20,000 2M 19,728 Attorney 10587 NW 27 Avenue rpServioes B Carol City 94,500 DA 74,433 Current i7475 NW 27 Avenue 1on 1l�e Os] large B Carol City 40,000 EC4L 34,345 Attorney rtt3 18379 NW 27 Avenue B Carol City 70,000 EDA 20,421 Current 3 K i H amoety 36t)0 Zlt+t 191 ` Street B Carol Cibf 28,000 MA 28,000 Attorney -8-N2 R 6-P, Inc. 3613 NW 191 Street y Cau+o1 ty Produce Ci B Coral City 35,000 EDA 11,791 Current 36'l'4 :�1W 183 Street 1 - t .. y ., i.. N � 4 •rtu 5 � .l +a •••• aa..t�i�]�'ii�rivF�.:att`.n':{n3A.M ..J'�rt 1 - - :.: ......'.. ..... '. r*art .�•�s•T�� DEyEL&P-HE! . IN4L An or AHOUSI 21- c. source of Balance Ethnic Target Amount use& and Addrees, statue :�rii.; .• Claaa' Area of Loan Funds outstanding o of Morro+� r Lodca 50,000 47,945 Attorney E,--��ei s Opa- EDA 14310 NW 22 Avenue 214, 610 Attorney Opa-Lxka 216,500 �► 1431.0 NM 22 Avenue paid off g Opa-I�oc3c3 50, 000 EDA -0- 14eav W Autmwdve 1635S NW 27 Avenue 9, 845 Current 8undu park' tutu 8 �-�a 32,000 E. 16nQ NW 27th XVNIue 200, 227 Current 6~-316 ► 2 { 300, 000 E aq S,pe�iul tt A Opa-j=ka DA 236p iA! i50'Street 101,724 Attorney �,..„ 8 pI,ocka 125, 000 EDA 2155-S9 !fit 16a'st rest Current t: < e �-� 31,000 EnA 13, se2 2190 Ali' earn lwMM... r mA 100,000 AttorneY H Opa_,� 100, 000 163SS Nd 27 `�►ve�e d. i Yyg j1o'' MIAMI C PITAL DEVELOPMENT. INC. sTATo u poffiff AS OF AUGUST 31. 1987- MaND and Address Ethnic Target Amount ea►;�,_ -' Class Area of Loan : 8 of,*. Borrower Source Balance Status of Funds Outstanding ' 11I?i/Si AMrican Genluna Auto Parts H w. Lt. Riv 70, 000 EDA 52,350 Current 27" 11w 34th Street , l +tr 2 'To 'Tell the Truth Inc. 8 w. Lt. Riv 30, 000 EDA 26,482 Atty 3525 Mw 79th Street i�0y8 Montpollier Printing Co. N w. Lt. Riv 175, 000 EDA 68, 518 Current 350 NM 54th Street . 2�2 e.''W.T,andsoaping B W.Lt.Riv. 15,000 EDA -0- paid off 2330 VN 56th Street a 21119182 Uniwr�'sal Osn. welding Co. B w. Lt. Riv 50, 000 EDA 38, 138 30 Z3gp Nw 78th Street B w. Lt. Riv 50,000 EDA 33,146 Atty 3+iZ6/tZ William Fine Co. 2300 Mw 79th Street My Place Fish' i Poultry 8 w. Lt. Riv iS, 000 EDA 10, 408 Atty ar�lis2 23M Mw 79th Street N W. Lt. Riv 255, 000 EDA 119,956 Current Csieteluw'Transamerioa T 3553 NM 44st Street °« B w. Lt. Riv 40, 000 EDA 3.710 Atty Orr �yrtr. Man.geaent :r sGW Mw 27th Avenue t ' s g w. Lt. Riv 60,000 EDA 49,250 Current _ r l► tlnligi4t" Indoor- Outdoor t Z469 •Mw 76th Street r w. Lt. Riv 20, 000 EDA -O- Paid off 1r4.4 Truck N 33"s:'Mw ..49th Street �} + H w. Lt. Riv 295# 000 EDA 200, 818 Curren! "Avenue tf f, w. Lt. Riv 17, 000 EDA 12, 046 Atty III M 1'� Ikip Tj'tli"�Y3Srf�J%�'J,✓ .. ;.r .,":;=. _ .. y _ 616162 Mullings Electric. S W.Lt.Riv 20,000 EDA 8,005 Atty 9600 RW 27th.Avenue W244F42 19ddie•s. Tavern i. Rest. a W. Lt. Riv 75,000 EDA 75,000 Atty 2433 RM 34th Street 10l1M2 Seabreeze Hosiery A W. Lt. Riv 70,000 EDA 46,690 Atty a 6700' XW 37th* Avenue 10122,*62 Sip tight S W.Lt.Riv 70,000 EDA 70,000 Atty 2700 NW79th Strut 11110M Trade Litho H W.Lt.Riv 50,000 EDA -4- Paid off 3201 Nit 37th Avenue aIifAO/62 Trade Litho H W. Lt. Rl.v 122,750 EDA -0- Paid off 3201 RW 37th Avenue I. 11Z3163 Design Decor by Sort Lerner A W.Lt.Riv 73,000 EDA 36,691 30 3330 MW 67th Street 1119183 Design Decor by Sort Lerner A W.Lt.Riv 50,000 EDA -b- Paid off 3330 MW 67th Street ` .. 3111M Ted's Hip Shop 8 W.Lt.Riv 60,000 EDA 51,191 Current g_ .,.. 3079 MW 79th Street IQ/ll/63 Tropicana Paper i Printing H Wrirt.Riv 17,000 HUD 16,379 Atty 2801 MW 33th Street 1i►l:3/63 Tempo Heavy Hauling Inc. B W.Lt.Riv 112,000 EDA 102,058 Current 2W KW 76th Street f41� American Not. Mg. CO. N W.Lt.Riv 230, 000 EDA 197,173 Atty 38M MW 32nd Avenue J, A W. Lt. Riv 50,000 BOA 19,806 41291M SA r�ot uStreet 30" XM9th g M. Lt. Riv IOS, 000 BOA 102,132 " 11l2fila4 NullinQr i Son 9i00•KW,.27tb Avonue .` leper Auto Shop g M.Lt.Riv 180,000 £OA 90,78? 1311ilN 23&1- RW 72nd Street K W. Lt. Riv 130, 000 BOA 149. 219 l�'ir187 Crlatslua Tranosaerios 2SSS'- *W, 41at Street g W. Lt. Riv 40,000 £OA '0 7/lif/i7 xaparial Auto Shop 2S8i MW 72nd Street . ut k y 4.f G mil 994. Current Atty Current Current Approved. not Blob. MiSM4 CAPI?A�- ncv�G_OPR4'riT.- IltCL - �' s�'PQ S AQ OF At�GIS? 31 1'98Z Source of Balance Nome anClose Area of Loan d Address Btbnio Forgot Amount Funds outstanding �. �Di►N O Loan of Sorrover H Perrino 75,000 EDP► 19,791 status Current RI it n . ,.cvr r:i.No . 61A,s A110+evCV ,,.. i1 MUNI. ROWDA 33125 C1 December 2, 1986 11:1-FJ'1 OM! 0111) X •. A . The Honorable Miller J. Dawkins / Vice Mayor The City of Miami P. O. Box 330708 �• Miami, Florida 33233-0708 Dear Vice Mayor Dawkins: Pursuant to your letter dated October 22, 1986 reference Miami Capital Development Incorporated (M.C.D.I.), please be advised of the following. Ile have reviewed the controls and evaluation report prepared by the accounting firm of Sharpton, Bruson and Company, the internal audit report on M.C.D.I. prepared by the City of Miami, Department of Internal Auditing, dated July 21, 1986, and Mr. Pablo Perez-Cisngros` response to the City Manager dated October 24, 1986. We have found no evidence that requires further investigation by our office, nor the filing of criminal charges. The matters addressed by the audit, including excessive tX��!'t•�liUt'4S 'lor c.;oiri-1 si:Lvi-:rs; use of l:.�l::�`;,nrS, :•di�ll'� to complete job objectives, improper separation of accounting functions and inconsistent financial data provided by loan PP recipients are administrative violations that should be addressed by M.C.D.I. Directors and the City of Miami. f' 'The conflict of interest issue •listed as . fir•�iry 'o. • 9 on ?Sr. 'OiI .ibris `• July 21; 1986 Widiolranduia to* the'Cl y ` 1,rrasor was addressed ,gn• Page 5 of 1•Sr. Juan del 'Ce'rro`s response to the City Manager dated October 24, 19860 and we find no violation of Florida Statutes, nor City of Miami ordinances. ` r, Cox f oOM is • 3 CA lraL It � I y ' e.+g'".f«r.t:.MM t r—a 4x n e appreciate ►our bringing this ;natter qo��r Ik attention and should you have Ally questions or reuire .any additional information, pleaSe feel free to contact us. Sincerely, JANET RENO State Attorney G'�:OAGE R. HAVENS, Clef Criminal Investigations Division State Attorney's Office GRH/ms cc: {iSr:_.p31j],o..P.e,cQ71 :��.��c�.C'.s M •i • w • '� fad t� i Yf .•yet- i.� s �NZr• { S � (j �y,t+y'.t���y'��;}j�2y1 �� ( " 7 RE, 17T BY THE U S. neral Accounting Office �F deral Funds Promised, Provided, And Used In Dade County, Florida, After The May 1980 Civil Disturbances In May 1980, widespread rioting erupted in Dade County. Florida. resulting in considerable damage in several black communities. In June 1980. President ' Carter said that the federal government would help rebuild the areas most heavily damaged. GAO tried to i determine the exact amount of federal assistance _ promised, provided, and spent. Considerable confusion existed in 1980--and still exists --concerning the exact amount of federal funds pro- mised to the Dade County area for riot relief. Announce- ments about federal commitments were made at different times in different places by different officials. Some commitments were based on anticipated actions —such as congressional appropriations, receipt of eligible loan applications, and reprogramming funds from other areas —which did not take place or which resulted in lower amounts being available than antici- pated. Furthermore. I I officials and residents did _ not always clearly u �erstand what was being pro- mised, the amounts svolved. and the purposes for which the funds were intended. GAO estimates that about $116 million in federal funds y was promised and about $70.6 million spent after the riots, Y L . 1 n- Y SEPT EMBER 30.1906 ; # -'Y 4 fie_ ,r _ APPENDIX V APPENDIX V In March and April of 1981, EDA approved grants totaling $5 million to MCDI to establish a direct revolving loan fund. The fiscal year 1980 supplemental appropriations act provided EDA $5 million for direct loans in areas of south Florida affected by the civil disturbances. Subsequently, at EDA's request, the House and Senate Appropriations Committees approved the reprogramming of these funds to provide $4,8000000 as a revolving loan fund grant and $200,000 in a technical assistance grant. The first grant was used to establish a revolving fund to provide loans for working capital, fixed assets, and guaranteed loans to businesses already in or willing to locate, reestablish, or expand in the communities affected by the May 1980 riots (target areas as defined by local officials). Repayments of principal were to be recycled into the fund for use in making additional loans. Interest collected could be used for making additional loans or for administrative expenses. The technical assistance grant was used for MCDI's administrative expenses related to the revolving loan fund. Additional administrative expenses were covered by interest collected and contributions from local governments. Special targeting criteria and financing policies The administrative plan for the EDA Revolving Loan Fund Grant Program, dated March 1984, outlines elements of the program. MCDI concentrates its efforts on minority areas with high unemployment as well as underemployed rates. The administrative plan stipulates that the average size of a loan should be about $50,000 and that no individual loan should be for more -than $2400,000. Analvsis of the loan portfolio We analyzed MCDI's EDA Revolving Loan Fund Portfolio as of February 28, 1985, to determine how the funds were distributed by ethnic group, amount of.1oan, and status;of loan amounts and whether funds_wer* spent in:the_target_areas. Ne_found.thgt,, Our':analysts' showed that blacks, received 50 (690) of the loan, totaling $2, 641, 687 ;- (569) , Hispanics tece1ved 14 . (19t) totaling $1,555,750 (31i), whites'=eceived'6 (80) totaling $563*000 0 21), and other ethnic groups received 2 (30) totaling $100#000 (2t). The average loan to blanks was $52#8340 to Hispanics was $111,125, to whites was $930833, and to other ethnic groups was $50#000. (See table v.2.) APPENDIX V V Taber M®I EDA Revolving Loan Fund Portfolio -- APPENDIX V Summary of Loan Amounts by Ethnic Groups (Feb. 28, 1985) Number of loans Ethnic group Number Percent Total value Average Maximum Minimum White 6 (8) $ 563,000 $ 93,833 $300,000 $18,000 Black 50 (69) 2,641,687 52,834 250,000 3,000 Hispanic 14 (19) 1,555,750 111,125 295,000 81000 Other 2 (3) 100,000 50,000 50,000 501000 Zbtal 7M (M $ . 860, 437 67,506 . Of the $4,112,672 total outstanding balance as of February 28, 1985, 37 loans totaling $2,401,962 were current and 35 loans totaling $1,710,710 were delinquent. The loan delinquency rate was 56 percent for blacks, 50 percent for ' whites, and 29 percent for Hispanics. (See table V.3.) Tal" V.3 H= tap MWIVLM tam Pend Porcfol3a— Stmo of DAsU .Um tam Ammmts by 2thntc Grvtx (Fab. 28. 1989) ELM& Ruin CUMMt D:litigueot TOW ilabar Mae of 16 a Suba"I Awavy hmdoan ltinla of lam Subtotal Maim ?odes !Caro Nabar of )ors Qwunc tints 3 5 L%,-92 $43,&% S 75.09D 512,SU 3 $ 359.616 $119,V2 $259,926 $19.690 6 $ 01,20b USA .22 -1,=,A% 51.9 7 2i ,= 0 26 1.00,W4 37,339 214,610 5.5i6 30 - 2,2%,90B dapdc 10 976.3U 97,11A253.799 1.1?6 6 305,5M . 76.396 245,V3 •7,V1 li 1X9,9n Odra 2 lb.%3 49.272 N.570 42M . 0 0 .0 0 0 2 Further anslysis,showed that.26 of the total loans (36 percent) had. been transferred to MCDI's attorneys for collection attempts or foreclosure. Also, 16 of the borrowers (22 percent) had gone out of business. Based on' -Information provided by MCDI, we determined that all of the loans were approved for.,borrowers establishing.or, having .businesses' in the `target area., However, one .borrower moved outside the, target' area after''receivia % a $40,000 loan. s,. 1 27 h xi 1r k• i , :: ram- APPENDIX V APVDE3t IZ V Development of an economic adjustment plan In September 1980, EDA approved a $100,0®® grant to the City of Riamii to prepare an economic adjust plan In response to the May 1980 riots. '1hloe total project cost, Including local contributions, was $125,000. 21m' City used the EDA funds, to hire a consultant, Janus Assw iates of lhashningtton, D.C., tto develop a plan. In MW 1981, Janus provided a detailed economic adjustment plan for the City of Miami and Dade County. This plan provided information on the economic and demographic profile of the entire area and a community assessment including barriers to development, opporttunities, and challenges of the target areas affected by the riot. The report identified goals, objectives, strategies, and recommendations that the City of Miami and Glade County used to develop project proposals for funding with aM% grantts. In June 1981, the City of Miami and m►aide dices mtty submitted mittted as preapplicatio . for economic adjustment fundto ML. The preapplication listed 14 projects that could be funded with an EDA grant of $5 nillion. The IML Atlanta Regional staff reviewed each recawmended project and concluded that two had merit for future funding consideration. 2bese were the industrial part and a shopping center project. The firstt project involved constructing a sever system, water lines, amd street paving for an industrial part. The second involved renovating and developing a deserted Pantry Pride shopping center. Three of the projects had received EDL anal for funding before EWs rewlcw of the preapplication document. These were the $5 =illiiou revolving loan food, a bond guarantee fund, and the Overtotm Shopping center project. aOL officials said the remaining nine projects could be funded by other federal agencies, local governments, or the private sector. "M city of Mimi and Dade Counnntty submitted grant applications fat the industrial part and the Pantry Prfale rmow called ®disom Plaza) projects, which were fuondedl by =A. Zs_tablishmen =of Contractors Trafafnr9 aa" m p - w I ont, lnc. ,, Revolving Won IVW In Septsaber 1980, ZM appzoved a ¢400,000 grant to Daft Coontty totestanhliisfn h a wori9 capital and bona guaramnt�e= pswguaan foot ninwritty contractoCs. 2be total cost of the project was $83i,p08, iuluding local city and county watching fosds total" "364r000. 22 k _