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HomeMy WebLinkAboutR-85-0673I J-85-647 RESOLUTION NO. 85"""673. A RESOLUTION AUTHORIZING THE CITY MANAGER TO AMEND, IN A FORM SATISFACTORY TO THE CITY ATTORNEY, THE MEMORANDUM OF AGREEMENT DATED SEPTEM13ER 13, 1982 BETWEEN THE CITY ui f'ilriir�l Ai+u CHE MARTIN LIITHER KING ECONOMIC DEVELOPMENT CORPORATION (MLKEDCO) FOR THE PURCHASE OF THE 1 LINCOLN SQUARE OFFICE COMPLEX WHEREBY THE SCHEDULE OF PHASING OUT ADMINISTRATIVE FUNDING TO MLKEDCO OVER THE PERIOD OF 1983 To 1986 15 EXTENDED TO A PERIOD TO BE DETERMINED BY A SCHEDULE TO BE SUBMITTED BY MLKEDCO BY SEPTEMBER 30, 1985 WHICH MUST BE ACCEPTABLE TO THE CITY ANU WHEREBY MLKEDCO WILL EMPLOY THE SERVICES OF A LEASING OF A LEASING AGENT AND COMPLETE ITS AUDIT. s WHEREAS, MLKEDCO has entered into a contract with the City of Miami Department of Economic Development and with the State of Florida Department of Veteran and Community Affairs to coordinate economic development activities within the Model City area; and WHEREAS, the Department of Economic Development has mandated IALKEDCO to undertake, as part of its 19B2 work program, an economic development project within the Edison Center Business District that will enable MLKEDCO to become financially independent from the City; and WHEREAS, MLKEDCO has purchased the Lincoln Square Office Complex in the Edison Center business district of the Model City area, hereinafter referred to as THE PROJECT, in an effort to become financially self-sufficient and, thereby continue to provide economic development services; and WHEREAS, the CITY has determined that THE PROJECT is financially feasible and the cash generated from operations will } gradually [over a three (3) year period] supplant the administrative funds now earmarked for MLKEDCO to be otherwise utilized; and WHEREAS, Model City is a designated blighted area under Section 163.340($) of the Florida Statutes and the purpose of this project Is a public purpose to improve and rehabilitate the r Model City area and to stimulate its economic development by the in CITY C0NIvI::,tC � -1- MEETIIIG x r JUN 20 1985 ... RESOM IGN Nu. 85. 6'73.. , :::, ------------ acquisition and upgrading of a major neighborhood office complex by a neighborhood organization, creating additional jobs and stimulating additional commercial activity in the neighborhood; and WHEREAS, the CITY allocated $400,000 from the Community Development Block Grant Contingency Funds to THE PROJECT; and WHEREAS, the City of Miami Commission authorized a contract between the CITY and MLKEDCO by Resolution No. 82-601 passed and adopted on June 24, 1982; and WHEREAS, the contract was executed on September 13, 1982; and WHEREAS, Article III of the Memorandum of Understanding states that "... As a consequence of this loan, the CITY shall begin to phase out the funding of MLKEDCO's economic development operations according to the following funding schedule: January 1983 = $37,500, 1984 = $25,000, 1985 = $12,500, 1986 = $0."; and WHEREAS, the CITY wishes to see MLKEDCO become self- sufficient in an orderly manner. NOW THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Commission hereby authorizes the City Manager to amend, in a form satisfactory to the City Attorney, the Memorandum of Agreement dated September 13, 1982 between the City of Miami and the Martin Luther King Economic Development Corporation (MLKEDCO) whereby the funding to MLKEDCO will be phased out in accordance with a schedule to be submitted by MLKEDCO by September 30, 1985 which must be acceptable to the City. Section 2. The MLKEDCO will employ the services of a leasing agent,by July 15, 1985. Section 3. The MLKEDCO will have its audit completed by July 31, 1985. A n -2- 85 , V / 3..- PASSED AND ADOPTED this 20th day of TunP f 1985• ATTEST: LPH ONGIE, CITYY CLE� PREPARED AND APPROVED CYCt �L % �liC CG ROBERY F."CLARK, CHIEF DEPUTY CITY ATTORNEY APPROVED FORM A14D CORRECTNESS: LOCI DAUG ERTY, CITY ATTURNEY 9 Maurice A. Ferre MAUHICE A. FERRE, MAYOR -3 - 85-673.-, 1% 1 AMKNDMh:NT NO. 1 An Amendment, entered i nl.0 1-his _---- (fay of , 1985 Ln an ai;r•ee►ner►L dn1,ed t.en►l)t�i I i, 198,-' between the City of Miami, referred to as the "CIT'Y", and Martin Luther Kint; VoonomiDevel1, ►;()rImi.at, ioil (MLKEI)CO), hereinafter ref erred to as Lhe "CONTRA►:Tr11i" . WHE-RI,:A:3, MI.KEI)c:rt has entered inUo a contract with the City of Miami Department. ref' V'c()nomic Di,,velopffienl, and with the State of Florida Department, of Veteran and 1,om►nunit,y Affairs to coordinate economic development acLiviti.es within the Model City area; and WHEREAS, the Department of Economic Development has mandated MLKEDCO to undertake, as part of its 1982 work program, an economic development project within the Edison Center Business District that will enable MLKEDCO to become financially independent from the City; and WHEREAS, MLKEDCO lids purchased the Lincoln Square Office Complex in the Edison Center business district of the Model City area, hereinafter referred Lo as THE PROJECT, in an effort to become financially self sufficient and, thereby, continue to provide economic development services; and WHEREAS, the CITY has determined that THE PROJECT is financially feasible and the cash generated from operations will gradually (over a three (3) year period] supplant the CITY IS funding of MLKEDCO thereby allowing the use of these funds now earmarked for MLKF�DCO to be otherwise utilized; and WHEREAS, Model City is a designated blighted area under Section 163.3+10(8) of the Florida Statutes and the purpose of this project is a public purpose to improve and rehabilitate the Model City area and to stimulate its economic development by the acquisition and upgrading of a major neighborhood office complex by a neighborhood organization, creating additional jobs and stimulating additional commercial activity in the neighborhood; and WHEREAS, the C [TY has a]. Located $1I001000 from the 8th Year Community Development 131.oc;k Grant Contingency Fund to THE PROJECT; and 1 85-673.. IN WIIEREAS, the C; i Ly rrf' Ili ami. Commission authorized a contract between Lhe CITY and MLKE'DCO by Resolution No, 82-601 passed and adopted on June r''rl , 1982; and WIIEREAS, Lhe contract was executed on September 13, 1982; and WHEREAS, Article LIT of the Memorandum of Understanding states that "...As a consequence of this loan, the CITY shall begin to phase out the funding of MLKEDCO's economic development operations according to the following funding schedule; January 1983 = $37 , 500 , 19811 = $25 , 000 , 1985 = $12 , 500 , 1986 = $0 . "; and WHEREAS, the CITY wishes to see MLKEDCO become self- sufficient in an orderly manner. I'll Eli EFORE, in mutual consideration of the covenants made herein and in the agreement of which this is an Amendment, the pat -Lies hereto understand and agree as follows: 1. Article III shall be amended to read that "... As a consequence of this loan, the CITY shall begin to phase out the funding (-)f' M1,KEDCO's economic development operations in accordance with a schedule submitted by MLKEDCO by September 30, 1985 which shall be .re1)t1able Lo the City's Department of Economic Deve Loprnent" . 2, Article III shall be further amended to read "MLKEDCO shall employ a leasing agent by July 15, 1985." 3. Article III shall be further amended to read "MLKEDCO will. have i.Ls audit eompl.eted by July 31, 1985." IT 1-3 FORTHER IIIII)I;R31'001) AND AGREED THAT ALL. THE 'PERMS AND CO111)[1,101JS UIl'1'11[NL,D UNDER THE ORIGINAL AGREEMF.IJT DATED SEPTEMBER 13, 1983 BETWEEN THE' CITY AND 111,1KEDCO SIIALI, REMAIN IN FULL FORCE AND INFECT WI'.111011'1' MODIFICATION, EX(:EP'I AS iIEREIN PROVIDED. IN WITNESS WHERE10FI Lite parties hereto have caused this instrument to be executed by the respective parties thereunto duly authorized. -2- r, 8S-6'73. , IN I WHERI:.AS, Lhe Ci 1,y oI' Ili arni. Commission authorized a contract; between Lhe CITY and ML.KE:DCO by Resolution No, 82-601 passed and adopted on ,June 211, 1982; an(I WHEREAS, the eontracL was executed on September 13, 1982; and WHEREAS, Article TIT of the tlemorand Um of Understanding states that "...As a consequence of this loan, the CITY shall begin to phase out the funding of MLKEDCO's economic development operations according to the following funding schedule; January 1983 = $37,500, 19811 = $25,000, 1985 = $12,500, 1986 = $0.11; and WHEREAS, the CITY wishes to see M1,KEDC0 become self - sufficient in an orderly manner. THEREFORE, in mutual consideration of the covenants made herein and in the agreement of which this is an Amendment, the parties hereto understand and agree as follows: 1. Article IIL shall be amended to read that " . . . As a consequence o[' this loan, the CITY shall begin to phase out the funding of M1,KEDCOcs economic development operations in accordance with a schedule submItLed by MLKEDCO by September 30, 1985 wit icir shall 1)e pilabLe to the City's Department of Economic Development". 2, Article III shall be further amended to read "MLKEDCO shall employ a leasing agent by July 15, 1985." 3, ArLicLe Ill shall be further amended to read ''MLKEDCO will have i.Ls audit compleLed by July 31, 1985." IT [S FURTHER IINDFAIS'1'001) AND AGREI?I) TIJAT ALL THE. 'PERMS AND CMID[TIONS 01IT1,TNED tltJlrEll THE OR[GI.NAI, AGREEMENT DATED SEPTEMBER 13, 1983 BETWEEN THE,, CITY ANIr 141,KE,UCO SHALI, REMAIN IN FULL FORCE AND EFFECT WITHOUT MODIFICATION, Ei1(JEPT AS HEREIN PROVIDED. IN WITNESS WIIERI?OF, the parties hereto have caused this instrument to be executed by the respective parties thereunto duly authorized. -2- r 85-6'73 GITY OF MIAMI, a municipal c orpnr-ation of the State of F(.��r-icla ATTE'5T: RALf'll r;. tJN(',Ii.,- c:I {"Y �,(,I RK,------------ - Ir�J{'i;It{,fIiA AI'1'{;SC: r;l?NHiA+:I'(1R: MIAMI-DADS. CHAMBER Of, COMMERCE (-'1s1-;5IDEN'T (CORPORATE SEAL) GUARANTEE I, , in consideration of the City of Miami's execution of the foregoing, Amendment, the undersigned, guarantee the performance of the terms and conditions in said Agreement required to be performed by the Contractor including but not limited to the provisions relating to default, assurances and certifications. Dated this day of 198_ By WITNESS: APPROVED AS TO FORM AND CORRECTNESS: LUCIA A. DOUGIEE:R'TY, CITY A'T'TORNEY /ec I an individual individually 0 85-673 U, CITY OF MIAM1, FLORIDA INTER -OFFICE MEMORANDUM TO Honorable Mayor and Members of the City Commission FROM Sergio Perei a City Manager DATE Jude 19, 1985 FILE SUBJECT. Amendment to the Contract Between the City of Miami and the Martin Luther King Economic Development REFERENCES- Corporation (MLKEDCO) ENCLOSURES. "It is recommended that the City Commission approve the attached Resolution authorizing the City Manager to amend, in a form satisfactory to the City Attorney, the Memorandum of Agreement dated September 13, 1982 between the City of Miami and the Martin Luther King Economic Development Corporation (MLKEDCO) for the purchase of the Lincoln Square Office Complex { whereby the schedule of phasing out administrative funding to MLKEDCO over the period of 1983 to 1986 is extended to a period to be determined by a schedule to be submitted by MLKEDCO by September — 30, 1985 which shall be acceptable to the City and whereby MLKEDCO will employ the services of a -- leasing agent and complete its audit," On September 13, 1982, the City of Miami entered into an agreement with the Martin Luther King Economic Development Corporation R` (MLKEDCO) whereby a loan in the amount of $400,000 was advanced to MLKEDCO at an annual rate of 3%permitting MLKEDCO to acquire the L; Lincoln Square Office Complex located at 62nd Street and Northwest 7th Avenue. This .loan was authorized by Resolution No. 82-601 passed and adopted by the City Commission on June 24, 1982. Article III of the Memorandum of Agreement calls for funding to MLKEDCO to be phased out in accordance with "... the following funding schedule: January, 1983 = $37,500, 1984 = $25,000, 1985 = .' $12,500, 1986 = $0.11 At the time that this article was included as part of the contract regarding the Lincoln Square Office Complex, it was anticipated that CommunityDevelopment Block Grant funds would not be needed after the 1985 fiscal period. However, MLKEDCO has experienced a delay in the completion of improvements and the lease - up of space in the Complex. An analysis by this department 85-673. I I �h pt Honorable Mayor and Members of the City Commission Page No. 2 shows that this delay is represented by $120,000 in expenses required to appropriately maintain the Complex versus revenues of only $86,592 resulting in a deficit of $33,707 for calendar year 1985. We anticipate that MLKEDCO could have all available space in the Complex improved and leased by January 1, 1986 if a leasing agent is hired. If this occurs, revenues are projected to be $157,093 with expenses of $123,909 resulting in a surplus of $34,229. The attached resolution requires that MLKEDCO employ a leasing agent by July 15, 1985, have an audit completed by July 31, 1985 and submit a schedule by September 30, 1985 outlining the revised projected revenue and expense schedule for the Lincoln Square Office Complex for City approval so that City funding to MLKEDCO may be phased out. 85-6'73. .