Loading...
HomeMy WebLinkAboutR-85-1031A J-53-1013 RES();�!.. T I ON A RESOLUTION AUTHORISING THE CITY !`9ili:R TU LNTLF: INTO AIN' AGREEME-01T, IN ?% FUR. ACCEPTABLE TO THE CITY ATTORNEY, WITH THE ALLAPATTAH !ASa,r?;'IL.71, .: ..i,}, IN '. ? i A LOAN, f (_UE-:LD BY A FIRS': h9U^ I GhGt POSITION TO ASSIST IN THE; CU"�F'":'RI'CT10IN EXPANSION AND REHAB �_?.TATi'._)ti THE' LIVE AND E_F: L?`.'' Y1''1;,i-.-:.:L PkuPERTY LOCATED AT 3520 N. W. 17TH AVENUE: INTO A RLTA IL P'HARMAC:Y /MLDiCAL ARTS COMM ERC I A L COMPLEX:; REALLOCATING $300,000 OF TENTH YEAR COMMUNITY DEVELOP^ILNT E3LC)CP, GRANT FUNDS PRE','.' OUSLY APPROPRIATED BY RESOLUTION NO. 84-384 FOR THE P .: I' _ :'; I" ALLAPATTAH SH' i'PIt�G CEINTE:k PROJECT W.i',H SiiID ?.its ',006 TO BE LOANED TO THE: ALLAPATTiiH MEk,.Hi11,,:TS ASSOCIATIU!v, INC. AT A FIXED RATE; OF THREE PERCENT (3 0) FOB: TWENTY (20) 1'F.;1I?S FOR REDEVELOPMtEtiT OF SAID PRO, -EC," AtiU WITH N<) FUNDS BEING RELEASEb FOtt CONSTRUCTION AND/OR REDEVELOPMENT UNTIL THE: CITY HAS ACQUIRED A SECURED PROMISSORY NOTE WITH AN ASSIGNME.'T OF MORTGAGE TO THE CITY FROM AMA; FURTHER PROVIDING THAT A COMMITMENT FOR THE ADDITIONAL LOAN AMOUNT OF $225,000 FROM OTHER SOURCES MUST BE OBTAINED THAT OR THAT IT BE DEMONSTRATED TO THE CITY THAT THE SAID PROJECT CAN BE COMPLETED WITH PREVIOUSLY ALLOCATED FUNDS; FURTHER REQUIRING THAT THERM BE NO EXPENDITURE OF ANY MONIES GENERATED BY THE ACCUMULATION OF INTEREST FROM A SECONDARY LOAN OF SAID $300,000 UNLESS SUCH EXPENDITURE SHALL HAVE BEEN APPROVED BY THE CITY COMMISSION. WHEREAS, the City Commission is committed to economic development and the expansion of trade and commerce; and WHEREAS, the promotion of economic revitalization in the City of Miami neighborhoods is an important part of the City's development strategy; and WHEREAS, the City Commission passe.] Resolution No. 84-384, authorizing th.3 allocatio:i of $300,000 of Tenth Year Community Development Block Grant Funds as the City's match in the development of the proposed Allapattah Shopping Center, and WHEREAS, the AMA was unable to secure an Urban Mass Transit Grant for acquisition and development of the Allapattah Shopping i Center; and WHEREAS, the developer identified the N. W. 3Gth Street and N. W. 17th Avenue commercial corridor as an alternate commercial redevelopment site; and 7 WHEREAS, the intersection of N. W. 36th Street and N. W. 17th Avenue was once the hub for all commercial activity in the Allapattah area; and CI`i'Y COMMISSION MEETING OF OCT &.- .9T03 i WHEREAS, Al-lapattalh is a designated blighted area under R ' Section 163.340(8) of the Florida Statutes and the purpose of this project is to improve and rehabilitate the Allapattah area and to stimulate its economic development by the expansion and upgrading of a major retail business, creating additional_ jobs and stimulating additional commercial activity in the neighborhood; and WHEREAS, AMA will identify and obtain additional `ending from other sources in the amount of $225,43013; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Manager is hereby authorized and directed to execute an agreement, in a form acceptable to the City Attorney with the Allapattah Merchants Association (AMA), Inc. for a loan to AMA of $300,000 to construct, redevelop and expand the Live and Let Live commercial property located at 3520 N. W. 17th Avenue into a retail pharmacy/medical arts commercial k V complex. Section 2. $300,000 of Tenth Year Community Development i Block Grant Funds is hereby allocated as the funding source of the herein loan at a fixed rate of three percent (3%) for a i a period of twenty (20) years. i Section 3. No funds shall be released for construction, Y expansion and/or rehabilitation until the City has acquired a l secured promissory note with an assignment of mortgage to the City on the property and AMA has acquired a firm commitment for the additional $225,000 from other sources and/or can demonstrate to the City that the project can be completed with the previously allocated funds. Further, there shall be no expenditure of monies generated by the accumulation of interest from a secondary loan of the said $300,000 unless such expenditure shall have been approved by the City Commission. PASSED AND ADOPTED this 10th day of OCTOBER 1985 :�► T TTY HIRAI, CITY CLERK MAURICE A. FERRE MAURICE A. FERRE, MAYOR S" -1©31 k PREPARED AND APPROVED BY: ROBERT .JCL RK CHIEF DEPUTY CITY ATTORNEY APPROVED AS, 0 FORM AND CORRECTNESS: V17 LUCIA A. DOUGH RTY CITY ATTORNEY i f r 1 e I a I 8-ti- --1031 CITY OF MIA MI. FLORIDA 26 INTER -OFFICE MtMORANDUM TO Honorable Mayor and Members of the City Commission FROM Sergio Pereir City Manager DATE September 26, 1985 FILE SUBJECT. Authorization to Exe- cute a Contract Agree- ment with Allapattah Merchants Association REFERENCES ENCLOSURES "It is recommended that the City Commission approve the attached resolution reappropriating $300,000 of Tenth Year Community Development Block Grant funds previously allocated by the passage of Resolution No. 84-384, for the proposed Allapattah Shopping Center to the Allapattah Merchants Association, Inc. (AMA) for the purpose of assisting in the construction, expansion and rehabilitation of the Live and Let Live commercial property located at 3520 N.W. 17th Avenue. The $300,000 will be loaned to the Allapattah Merchants Association, Inc. at a fixed interest rate of 3% for twenty years, and secured by a first mortgage position. Further providing that no funds shall be released for construction and/or redevelopment until the City has acquired a secured promissory note with an assignment of mortgage to the City from AMA. Also, identifying a commitment for the additional loan amount of $225,000 and/or demonstrate that said project can be completed with funds allocated from the City; authorizing the City Manager to enter into an agreement with the Allapattah Merchants Association in a form acceptable to the City Attorney. The Allapattah Merchants Association, Inc. (AMA) has formally requested $300,000 of 10th Year Community Development Block Grant funds to assist in the redevelopment of the Live and Let Live project. These funds were previously allocated and approved by Resolution No. 84-384. Honorable Mayor and Members of the City September 26, 1985 Page 2 Commission As the City's economic arm in the Allapattah commercial corridor, AMA is further requesting to enter into a loan agreement with the City for said funds, for a period of twenty (20) years and at a fixed interest rate of three percent (3%). These funds will be secured by a first mortgage position held by the AMA. AMA will then loan the aforementioned funds to Live and Let Live at an interest rate of nine percent (9%). The revenue generated by AMA will be used to reinvest in the development of commercial properties located in the 36th Street business corridor. BACKGROUND: The Community Based Organizations (CBOs) have been the City's primary outreach vehicle to assist the various neighborhood commercial districts in addressing their economic development projects. The Allapattah Merchants Association (AMA) has been under contract with the City of Miami for the past four (4) years for the purpose of developing and implementing economic development projects in the N.W. 36th Street commercial corridor of the Allapattah target area. During the past three (3) years, the AMA has identified, coordinated and implemented various economic projects in the Allapattah commercial district. As part of its mandate from its board of directors, the AMA began to identify large-scale capital oriented project(s) that the organization could implement and/or manage and would enable them to become financially independent from the City. Within this context, the AMA and the City of Miami commissioned a market analysis and feasibility study for a proposed shopping center on the corner of N.W. 36th Street and 12th Avenue adjacent to the transit station. The study concluded that such a development was commercially viable. Based on the findings of the aforementioned study, Dade County and the City of Miami collaborated on the submission of a grant application to the Urban Mass Transit Administration (UMTA). In conjunction with the UMTA grant application, the City Commission approved the allocation of $300,000 in 10th Year Community Development Block Grant (CDBG) funds to be used as a local matching share. It was further approved that if the UMTA grant was not approved, then these funds could be used as equity capital by the AMA for the project. { To date, no grant award has been made by UMTA, nor has any of the six developers approved by the AMA, submitted a joint venture agreement or proposed package. :. I Honorable Mayor and Members of the City Commission September 26, 1985 _ Page 3 ISSUE: Inclusive in the aforementioned market study, the consultant also identified the feasibility of assisting merchants located in N.W. 36th Street and 17th Avenue corridor in rehabilitating and revitalizing their properties to tie in to any overall development that would occur in the area. Due to the delays that AMA has experienced in trying to obtain additional funding to secure the property adjacent to the 12th Avenue metrorail station, it has continued to identify other redevelopment opportunities that would also enhance the entire commercial district. Several of the businesses centered around the N.W. 36th Street and 17th Avenue corridor, formally requested that the organization concentrate its development efforts within the hub of this thoroughfare. As a result, the owners of the Live and Let Live drugstore approached AMA and requested assistance in the expansion and rehabilitation of its present facility. The drugstore which has operated in the community at the same location for the past fifty years and under the same management for seventeen years, wants to expand operations from 3,000 square feet to approximately 9,000 square feet. The proposed expanded facility will allow for a heterogeneity of merchandise including at-home medical equipment, and will house a Health Maintenance Organization (HMO) as well as provide office facilities for a number of medical specialists such as an optician, dentist, and gynecologist, none of which are presently located in the area. The expansion of the Live and Let Live project into a retail pharmacy/medical arts complex will: a) Create a stabilizing force to the immediate commercial business corridor, in particular to those businesses located in the 15-1800 blocks on N.W. 35th Street; i b) Create an infusion of new capital and attract additional private investment in the area; i c) Increase the tax base in the commercial area. i. �. U Honorable Mayor and Members of the City Commission September 26, 1985 Page 4 d) Create a minimum of twenty-five new and permanent jobs, thereby increasing the income of local residents by $250,000 per annum. e) Provide needed health care services and/or products to neighborhood residents. . The development of this project will demonstrate the effect of public -private ventures, and serve as a model to help the neighborhood continue to advance itself. FINANCING: The principals of Live and Let Live have committed as their equity investment, seventy-five thousand dollars ($75,000) in cash, and the land site on which the building presently exists. The property presently has no mortgage balances. Alliance National Bank has issued a letter of commitment granting one hundred and fifty thousand dollars ($1501000) for construction and rehabilitation of the Live and Let Live project. The total hard cash funding available for the redevelopment of _ this commercial property is indicated below: City of Miami $300,000 Alliance National Bank 150,000 Live and Let Live Principals 75,000 Total $525,000 Based on pre -construction bid cost estimates obtained by the AMA, it appears that approximately four hundred and fifty thousand dollars ($450,000) is needed to complete the project. RECOMMENDATION: The Department of Community Development has worked extensively with the AMA board of directors and staff to ascertain the feasibility of this project. It is recommended that the requested $300,000 previously allocated for the aforementioned shopping center project be specifically allocated to the development of the Live and Let Live project, which represents Honorable Mayor and Members of the City Commission September 26, 1985 Page 5 Phase I of redeveloping N.W. 36th Street and 17th Avenue, be re- allocated. The AMA will oversee the management and coordination of the project beginninc� with the construction phase. The following documents have been requested to substantiate the viability of the proposed project: (1) A complete business plan with detailed finan- cial projections; (2) A rendering of the Live and Let Live project after construction expansion and rehabilita- tion; (3) A certified appraisal of the Live and Let Live commercial property; (4) A contract agreement between the Live and Let Live principals for the proposed project; (5) A management by objectives construction timetable which delineates all activities and time frames associated with the development and completion of the project. It is recommended that the City Commission authorize the City Manager to execute a contract agreement between the AMA and the City of Miami, allocting $300,000 to assist in the redevelopment of the Live and Let Live Project. ma/cr i