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HomeMy WebLinkAboutR-87-0142J-87-149 2/11/87 M-86-1020 12/11/86 R-85-457 1/7/87 RESOLUTION NO. 87-142 A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, BETWEEN THE CITY OF MIAMI AND THE BAKEHOUSE ART COMPLEX, INC. WHICH PROVIDES AN ADDITIONAL NIFTY -FOUR THOUSAND DOLLARS ($54,000) IN FUNDS IN THE FORM OF A LOAN FROM TWELFTH (12TH) YEAR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS, THEREBY INCREASING THE EXISTING ONE HUNDRED AND FIFTY THOUSAND DOLLAR ($150,000) LOAN/GRANT PREVIOUSLY ALLOCATED FOR THE RENOVATION OF A VACATED BAKERY COMPLEX FOR USE AS A REGIONAL ARTIST WORKSHOP AND GALLERY. WHEREAS, the City Commission is committed to economic development and the expansion of trade and commerce; and WHEREAS, Resolution No. 85-457 authorized the allocation of one hundred and fifty thousand dollars ($150,000) to provide for the renovation of the Bakehouse Art Complex; and WHEREAS, Metropolitan T)ade County also provided funding in the amount of one hundred and fifty thousand dollars ($150,000); and WHEREAS, approximately eighty percent (80%) of the renovations has been completed; and WHEREAS, the project has experienced some severe cost overruns due to additional extensive electrical work needed as a result of vandalism at the Complex; and WHEREAS, Metropolitan Dade County has agreed, in donjunction with the City of Miami, to allocate an additional fifty-four thousand dollars to complete the Bakehouse Art Complex; and CITY COMMISSION MEETING OF FEB 12 1987 :SOLurION No. 87. 42 f MARKS: WHEREAS, City of Miami Commission approved Motion No. 86- 1020 authorizing the allocation of fifty four thousand dollars ($54,000) as a one time funding to the Bakehouse Art Complex, with funds from the Twelfth (12th) Year Community Development Block Grant Funds; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Manager is hereby authorized to enter into a contract If in a form acceptable to the City Attorney, with the Bakehouse Art Complex, Inc., which provides fifty four thousand dollars ($54,000) in funds for the continued renovation of the Bakehouse edifice. Section 2. The City Manager is hereby authorized to allocate fifty four thousand dollars ($54,000)2 from the Twelfth (12th) Year Community Development Block Grant Program (CDBG) for the additional renovations needed on the complex. PASSED AND ADOPTED this 12th day of February 1987. XAVIER L. SUAREK.,JMAYOR ATTEST: MATTY HIRAI, CITY CLERK PREPARED AND APPROVED BY: ROBERT F. CLERK CHIEF DEPUTY CITY ATTORNEY APPROVE)l A)( TO FORM AND CORRECTNESS: 'CIAI A. DOUGH TY ATTORNEY' TY 1 This contract provides for a loan at an interest rate of five percent (5%) with repayment in thirty (30) years, having an initial two (2) year moratorium period ballooning in seven (7) years. - 2 This is a vacated Bakery Complex for use as a regional artist workshop and gallery. 8 7-142 -2- 0 COMMUNITY DEVELOPMENT REVIEW AND APPROVAL: r' FRANK C STANEDA, DIRECTOR DEPARTMENT OF COMMUNITY DEVELOPMENT _g_ 57--142 CITY OF MIAM1. FLORIDA INTIER•OFFICE MEMCRANCUM To. Honorable Mayor and Members of the City Com scion FROM: ( 1 Cesar H. Odio City Manager RECOMMENDATION: is DATE: FILE: sueJECT; Resolution authorizing agreement with Bakehouse Art Complex, Inc. REFERENCES: ENCLOSURES: It is respectfully recommended that the City Commission adopt the attached' resolution authorizing the execution of an agreement in substantially the form attached hereto, between the Bakehouse Art Complex, Inc. and the City of Miami, for the purpose of completing the renovation of a vacated bakery complex, in the Wynwood target area, for use as a regional artist workshop and gallery in accordance with the terms and conditions as set forth therein. BACKGROUND: The Department of Community Development has analyzed the need to execute the attached agreement with the.Bakehouse Art Complex. The proposed agreement allocates an additional fifty-four thousand dollars ($54,000) as approved by Motion No. 86-1020, Prom the Twelfth Year Community Development Block Grant Fund (CDBGF). The Bakehousew Arts Complex project was awarded a one hundred and fifty thousand dollar ($150,000) grant by the City of Miami as part of its Eleventh (Ilth) Year Community Development Program. The terms of the new loan allocation will be in accordance with Metropolitan Dade County's contract terms. Said loan will be at an interest rate of five percent (5z) amortized over thirty (30) years, with a two (2) year moratorium which will balloon in seven (7) years. These funds will be used to complete the project which has experienced some severe cost overruns. These overruns are due to additional architectural and engineering drawings being needed and more extensive electrical work required because of vandalism at the complex and the prevailing Davis -Bacon wage requirements for construction work performed at the complex which also served to increase construction costs. The Bakehouse Art Complex, Inc. requires an additional one hundred and eight thousand dollars .($108,000) to sufficiently complete the project. This will also enable the organization to. obtain its Certificate of Occupancy which would allow them to start-up operations and collect rent from those tenants whom have leased space. The organization has leased approximately fifty percent (50%.) of the inside studio space and about fifteen percent (15%) of the outside shed space. I 8 7-142 . LA Honorable Mayor -and Members of the City Commission Page 2 Metropolitan Dade County has committed itself to providing fifty percent (50%) of the funds needed by the Bakehouse Art Complex to receive its Certificate of Occupancy. This commitment from Metropolitan Dade County is contingent upon the City's fifty percent (50%) participation. The Bakehouse Art Complex, Inc. is an eligible Economic Development activity under Community Development rules and regulations, not subject to any cap. Attachments: Proposed Resolution Z S 7-142