HomeMy WebLinkAboutR-85-0478-
J-85-397a
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RESOLUTION N0.
A RESOLUTION ACCEPTING THE RECOMMENDATION OF
THE CITY MANAGER FOR THE SELECTION OF
CAN-AMERICAN REALTY CORPORATION AS DEVELOPER
FOR THE DEVELOPMENT OF PARCEL 37 WITHIN THE
SOUTHEAST OVERTOWN/PARK WEST REDEVELOPMENT
PROJECT PHASE I; AUTHORIZING AND DIRECTING
THE CITY MANAGER AND CITY ATTORNEY TO
NEGOTIATE A CONTRACT WITH THE PROPOSER; AND
FURTHER DIRECTING THE CITY MANAGER TO PRESENT
THE NEGOTIATED CONTRACT TO THE CITY COMMIS-
SION AS SOON AS PRACTICABLE FOR CONSIDERATION
AND APPROVAL BY THE CITY COMMISSION PRIOR TO
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THE EXECUTION THEREOF.
1
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WHEREAS, the City Commission by Resolution No. 82-755,
approved in principle, the Southeast Overtown/Park West
Redevelopment Plan; and
WHEREAS, by Resolution No. 84-893 the City Commission
authorized the City Manager to issue a Request for Unified
'
Development Project Proposals for the Southeast Overtown/Park
West Redevelopment Project Phase I; and
6.
WHEREAS, the City Commission selected Touche Ross & Co. as
the certified public accounting firm and appointed members of a
review committee; and
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WHEREAS, the request for proposals for the unified develop-
s
ment project contained specific evaluation criteria to be used by
the certified public accounting firm and the review committee;
and
WHEREAS, proposals for the development of Parcel 37 were
submitted by Can -American Realty Corporation and Cruz Development
Company in response to the request for proposals on December 14,
1984 the published date for receipt of proposals; and
WHEREAS, the certified public accounting firm developed a
-` model to evaluate the viability of the development teams and
their ability to maintain prices at proposed levels, the
viability of the proposed financing strategies, the viability of
- the proposed projects, and the short and long-range economic and
CITY COVIMISSION
MEETING Cj'r'
MAY 9 1985
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fiscal return to the City and rendered its written report to the
City Manager; and
WHEREAS, the review committee received the presentations of
the proposers and, after extensive analysis and discussion of the
proposals, rendered a written report to the City Manager con-
taining an evaluation of each proposal based on the specific
evaluation criteria included in the request for proposals; and
WHEREAS, the review committee adjudged two development teams
as equally superior with respect to their proposals for the
development of Parcel 37; and
WHEREAS, the development teams were equally ranked by the
certified public accounting firm; and
WHEREAS, the City Manager, taking into consideration the
findings of the certified public accounting firm and the evalua-
tions of the review committee, recommends the acceptance of the
proposal from Can -American Realty Corporation for the development
of Parcel 37; and
WHEREAS, on April 11, 1985, the City Commission accepted the
recommendation of the City Manager for the selection of
developers for parcels 24, 25, 36, 45, 46, 55, and 56;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The recommendation of the City Manager is
accepted and Can -American Realty Corporation is selected to
develop parcel 37 in the Southeast Overtown/Park West Redevelop-
ment Project Area Phase I.
Section 2. The City Manager and the City Attorney are
hereby authorized and directed to negotiate a contract with the
aforementioned development team.
Section 3. The City Manager is further directed to
present the negotiated contract to the City Commission as soon as
practicable for consideration and approval by the City Commission
prior to execution thereof.
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fiscal return to the City and rendered its written report to the
=' City Manager; and
WHEREAS, the review committee received the presentations of
k:.
the proposers and, after extensive analysis and discussion of the
proposals, rendered a written report to the City Manager con-
taining an evaluation of each proposal based on the specific
evaluation criteria included in the request for proposals; and
WHEREAS, the review committee adjudged two development teams
as equally superior with respect to their proposals for the
development of Parcel 37; and
WHEREAS, the development teams were equally ranked by the
certified public accounting firm; and
WHEREAS, the City Manager, taking into consideration the
findings of the certified public accounting firm and the evalua-
tions of the review committee, recommends the acceptance of the
proposal from Can -American Realty Corporation for the development
of Parcel 37; and
WHEREAS, on April 11, 1985, the City Commission accepted the
recommendation of the City Manager for the selection of
developers for parcels 24, 25, 36, 45, 46, 55, and 56;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The recommendation of the City Manager is
accepted and Can -American Realty Corporation is selected to
develop parcel 37 in the Southeast Overtown/Park West Redevelop-
ment Project Area Phase I.
Section 2. The City Manager and the City Attorney are
hereby authorized and directed to negotiate a contract with the
aforementioned development team.
Section 3. The City Manager is further directed to
present the negotiated contract to the City Commission as soon as
practicable for consideration and approval by the City Commission
prior to execution thereof.
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PASSED AND ADOPTED this 9th day of May i 1985.
TEST: Maurice A. Ferre
'.1 ? MAURICE A. FERRE, Mayor
RA PH G. ONGIE
` City Clerk
PREPAREa AND APPROVED BY:
-v .na ". JG Gp
Assistan it Attorney
AP OVED Tp F M AND CORRECTNESS:
City Attorney
RNS/wpc/pb/209
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I
tI" OF MIAMI, PLORIOA
INTER-cF'FIct MEMORANDUM
To. The Honorable Mayor and DATE. April lit 1985 FILM
Members of the City Commission I`
SUBJECT: S.E. Overtown/Park West !
Developer Selection
_ City Commission Agenda
PRO": Sergio Pereira REFERENCES: April 18 1985 r
City Manager •�
ENCLOSURES: ( 55 )
It is recommended that the City Commission
approve the attached resolution selectin
a developer for Parcel 37 of the Southeast
Overtown Par- West Project pursuant to pro-
cedures established or Unified Development
Projects (UDPs) and to authorize the City
Manager to initiate the preparation of dis-
position agreements with said developers.
The recommended development firm for Parcel
37 is the Can -American Realty Corporation.
On July 31, 1984, the Miami City Commission approved Resolution
No. 84-893 authorizing the issuance of a request for proposals
for a Unified Development Project (UDP) for the Southeast Over-
town/Park West Phase I Redevelopment Area, establishing a Selec-
tion Review Committee, and appointing Touche Ross and Company to
analyze the financial feasibility of the proposals.
On December 14, 1984, the City of Miami received 20 proposals
from nine developers for Phase I development. The Selection
Review Committee met on January 2, 8, 22, 31, and February 13,
1985, to review the proposals. On February 13th the committee
report was submitted to the Manager for review. Touche Ross &
Co. completed their financial evaluation of competing redevel-
opment proposals and submitted their report on January 30, 1985.
On April 11, 1985, the City Commission approved the selection of
developers for seven of the nine parcels in the Phase I redevel-
opment area. Parcel-37 was held in abeyance until the Commission
had additional time to review the proposals, and Parcel 44 will
be reviewed in June when additional documentation will be avail-
able concerning the sports arena.
The selection of developers for Phase I redevelopment is the cul-
mination of over two years of work by the City with the assis-
tance of Dade County. The proposals recommended for approval
Lido
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Mayor and Commission -2" April 12, 1985
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meet the objectives of the redevelopment program, which is to
create a residential community within the downtown area geared
for moderate -income families with some provision for low-income r
residency, and to provide the impetus for the revitalization of
the Overtown community.
In planning for and seeking development proposals for Phase I of
this project, the City has been concerned that true and substan-
tial involvement of minorities be achieved. We are especially
pleased with the level of minority participation in the proposals
recommended. All of the recommended developers have committed to
adhere to the participation goals established for the project,
and this has been impressively exceeded by most. Almost all the
development teams, including the general partners and support
professionals, have minorities among the lead individuals. Of
special note is the Circa/ Barnes a/ Sawyer group, which includes
representation of a former project area property owner from Over -
town and minority individuals as equity participants. The Cruz
Development Company is a minority -owned firm.
I. Project Background
Phase I of this project is focused on public investment adjacent
to -the Overtown Metrorail Station and along the 9th Street Mall.
A nine -block Transit Station Impact Area has been designated
as the location where public investment will be concentrated.
This has been approved by the Miami City Commission (Resolution
No. 83-972) and the Dade County Commission (Resolution No.
R-1006-84). This area was selected due to its strategic location
adjacent to the Overtown Metrorail Station and the Downtown Gov-
ernment Center. Redevelopment within this area will maximize
benefits to both the Park West and Overtown portions of the pro-
ject area and leverage previous capital improvement expenditures
plus committed public funds (Urban Initiatives Project).
There are feasible development opportunities along the nine
blocks surrounding the proposed 9th Street Mall and the Overtown
Metrorail Station. Market forecasts indicate that this nine -
block area is capable of supporting the development of approxi-
mately 2,000 residential units and 250,000 sq.ft. of commercial
space, to be phased in over a five-year period. The development
program will be geared for moderate -income housing for families
with an income range of $15,000 to $50,000. The development mix
is predicated upon the identified market potential for the area
(Hammer, Siler, George Associates analysis).
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Mayor and Commission -3-
II. Solicitation of Developers
April 12, 1985
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A concerted effort has been made to promote and market the South-
east Overtown/Park West project area since the establishment of a
project office in September 1982. A significant effort was made
to attract developers locally, nationally, and internationally.
Major marketing activities have included:
-- Distribution of 900 marketing folders nationwide to
potential developers, investors, etc.
-- Distribution of 300 copies of the Phase I Request For
Proposals nationwide.
-- Publication of two editions of �Pro remi�ss, the Southeast
Overtown/Park West newt ttter, distribution of 1,500 and
3,000 respectively.
-- Preparation of numerous articles and press releases con-
cerning the project. Information concerning the project
has been printed in local and national publications.
-- Hiring of a marketing consultant to assist in preparing a
market strategy for the project.
-- Sponsoring a developers conference on April 30, 1984, at
the James L. Knight International Conference Center,
attended by more than 200 people; and a presubmission
conference held on August 30, 1984, with 60 persons in
attendance.
-- Appearances on local television, radio broadcasts, and
before civic and business groups to promote the project.
-- Distribution of over 1,000 flyers nationally promoting the
project and development opportunities. Placed advertise-
ments in the Wall Street Journal, the National Real Estate
Investor Magazine and the local newspapers.
-- Hosting a conference/workshop for minority contractors on
August 9, 1984, at the City Administration Building.
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I Mayor and Commission
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April 12, 1985
III. Response to the Request for Proposals
r Written proposals were submitted by the following nine
development teams:
Affordable Housing Corporation
666 llth Street N.W., Suite 1103
Washington, D.C. 20005-4542
Can American Realty Corporation
1117 Marquette Avenue, Suite 200
Minneapolis, MN 55403-2457
Circa/Barness/Sawyer
628 W. Rittenhouse Street
Philadelphia, PA 19144
Cruz Development Company
10 Fairway Street
Mattapan, MA 02126
The Decoma Venture
Suite 700
1110 Brickell Avenue
Miami, FL 33131
Indian River Investments II, Ltd.
1023 N.W. Third Avenue
Miami, FL 33136
New Washington Heights Community
Development Conference, Inc.
Culmer/Overtown Neighborhood
Service Center
1600 N.W. 3rd Avenue
Miami, FL 33136
Stocks Construction Florida
299 Alhambra Circle, Suite 512
Coral Gables, FL 33134
Walter Sweating & Associates, Inc.
5825 Sunset Drive, Suite 210
Miami, FL 33143
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Mayor and Commission
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SMART OF PtOPOSALS FOR PHASE I OEVELOPNERT
April 12, 1985
Parcel
Residential
Commercial
Number
Proposer's Name
Units
Sq.Ft.
24
(a) Cruz Development
386 R
30,000
(b) Stocks Construction
350 R
15,000
(c) Can -American Realty Corp.
350 R
30,000
25
(a) Cruz Development
199 R
15,875
36
(a) Cruz Development
221 C
25.000
(b) Affordable Housing Corp.
174 C
20,000
37
(a) Cruz Development
386 R
30,000
(b) Can -American Realty Corp.
350 R
30,000
44
(a) Affordable Housing Corp.
304 C
20,000
(b) Halter Sweeting i Assoc. Inc./
248 C
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Angles, Esteban (joint venture)
(c) Circa/Barness/Sawyer
426 C
--
(d) Decoma Venture
•- Centrum
Arena •-
45
(a) Affordable Housing Corp.
46 C
--
(b) Circa/Barness/Sawyer
225 C
33,800
46
(a) Indian River Investments II Ltd.
152 C
--
(b) Affordable Housing Corp.
484*C
20,000*
55
(a) Affordable Housing Corp.
484*C
20,000*
(b) Circa/Barness/Sawyer
150 R
14. C
292
41.800
56
(a) Circa/Barness/Sawyer
91 R
60 C
151
63,200
(b) New Washington Heights
--
200 Room
Community Development Conference
Hotel
1/30/95 *Combination of parcels 55 and 46 R a Rental C • Condominium
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Mayor and 'Commission
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W. Report of_theSelection Review Committee
April 12, 1985
On February 13, 1985, the Phase I Selection Review Committee sub-
mitted their report to the City (note attachment). The Selection
Review Committee held interviews with each of the development
teams for each of their submissions (20 interviews) and exten-
sively reviewed each of the proposals.
The Selection Review Committee recommended the following devel-
opers for Phase I development:
Parcel No. 24
Developer:
Cruz Development Company
Uses Proposed:
386 Rental Units
30,000 Sq.Ft. Commercial
Space
425 Parking Spaces
Parcel No. 25
Developer:
Cruz Development Company
Uses Proposed:
199 Rental Units
15,875 Sq.Ft. Commercial
Space
220 Parking Spaces
Parcel No. 36
Developer:
Cruz Development Company
Uses Proposed:
221 Condominium Units
25,000 Sq.Ft. Commercial
Space
248 Parking Spaces
Parcel No. 37:
A tie, with two
developers equally ranked.
Developers
Can -American Realty Corporation
Cruz Development Company
Uses Proposed:
Can -Am:
350 Rental Units
30,000 Sq.Ft. Commercial
space
395 Parking Spaces
Cruz:
386 Rental Units
30,000 Sq.Ft. Commercial
Space
425 Parking spaces
Parcel No. 44:
Housing Use
Developer:
Circa/Barness/Sawyer
Uses Proposed:
426 Condominium Units
430 Parking Spaces
Sports Arena Use
Developer:
Oecoma Venture
Uses Proposed: Sports Arena (See Oecoma Proposal)
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Mayor and Commission
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April. 12-, 198S
Parcel No. 45
Developer:
Circa/Berness/Sawyer
Uses Proposed:
296 Condominium Units
33,800 Sq.Ft. Commercial
275 Parking Spaces
Parcel No. 46
Developer:
Indian River Investments
II, Ltd.
Uses Proposed:
152 Condominium Units
152 Parking Spaces
Parcel No. 5S
Developer:
Circa/Berness/Sawyer
Uses Proposed:
160 Rental Units
142 Condominium Units
41,800 Sq.Ft. Commercial
425 Parking Spaces
Parcel No. 56
Housing Use
Developer:
Circa/Berness/Sawyer
Uses Proposed:
91 Rental Units
60 Condominium Units
63,200 Sq.Ft. Commercial
Space
215 Parking Spaces
Parcel No. 56
Hotel Use
Developer:
No recommended developer.
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Mayor and Commission
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April 12, 1985
The committee evaluated developers in terms of their abilities to
develop individual parcels for which they submitted proposals,
based only upon the evaluation criteria established by the City
Commission and included in the RFP. However, since the results
of the evaluations and rankings include recommendations for two
developers for multiple parcels, it was recommended that the City
Manager further evaluate the developers' capabilities for doing
these multiple parcels before making final recommendations to the
City Commission. Touche Ross & Co. has prepared this analysis
and has concluded that these firms have the financial capability
to undertake multi -parcel development (note attachment).
The committee has attached to its recommendations some important
considerations that they believe are crucial tc. a successful pro-
ject implementation:
1. The financing data submitted with the recommended Phase I
development proposals show that most of the projects are not
feasible without additional public subsidies and special
financing programs. It is, therefore, important that the
City move uig_ckly to conclude the selection process and help
the developers secure this assistance. Federal budget deci-
sions and 1985 tax legislation may reduce or eliminate some
of these subsidies in the very near future.
Even though federal funding for Urban Development Action
Grant (UDAG) projects is in place until the end of the cur-
rent federal budget year (and appears to stand a reasonable
chance of being continued in the next year), UDAG assistance
is not assured. Miami does not rank high under the current
UDAG eligibility criteria relating to distress and impaction,
which favors older northeastern industrial cities. Congress
is now considering changes in the eligibility formulas that
might help Miami's standing, and those changes could be in
effect by the time our project application is reviewed.
2. The committee sees a need for the City to act as a master
coordinator for the timing, phasing, and marketing of devel-
opment on individual parcels. This is important for the
creation of an initial critical mass to give the area market
appeal to the first prospective renters and homebuyers. Mas-
ter coordination can also insure that initial construction
will not be concentrated in a single location in the Phase I
area but will occur on a more balanced basis on several par-
cels. Adjustments in the stated construction timetables for
the individual parcels may need to be made.
3. The City must also assume an active role in insuring design
compatibility, particularly among those adjacent parcels
Undertaken by different developers.
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V. Financial Analysis
s I
Touche Ross & Co. prepared an independent financial analysis of each of the 20 development proposals, pursuant to the procedures Ir
established for unified Development projects, which was utilized
by the Selection Review Committee in their review. The Touche
Ross & Co. analysis consisted of an evaluation of the developers'
financial strength as well as the project proposals. The ele-
ments reviewed include:
-- the viability of the development teams and their ability to
secure financing and maintain prices at proposed levels;
-- the viability of the proposed financing strategies;
-- -the viability of the proposed projects; and
-- the short- and long-range economic return to the City.
Based on this analysis, the following parcel ranking was estab-
lished. ( It should be noted that a total score of less than 70
on a particular parcel indicated the lack of project viability.)
TOUCHE ROSS A CO. RANKING BY PARCEL
PARCEL
FIRST
SECOND
THIRD
024
Cruz
Can -Am
Stocks
(96)
(88)
(82)
025
Cruz
(97)
036
Cruz
Affordable
(97)
(57)
037
Cruz
Can -AN
(94)
(94)
0"
C/B/S
Oecoma
Affordable
(95)
(55)
(55)
#45
C/B/S
Affordable
(90)
(SS)
046
I.Rirer
Affordable
(73)
(58)
055
C/B/S
Affordable
(94)
(55)
056
C/B/S
New Wash.
(97)
(45)
FOURTH
W.Sweetinq
(46)
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Mayor and Commission
VI. Developer Recommendations
�10
April 12, 1985
Taking into consideration the recommendations of Touche Ross &
Co., a certified public accounting firm, and the Phase I Selec-
tion Review Committee, the following developer is recommended
for redevelopment of Parcel 37, pursuant to the procedures for
Unified Development Projects, as set forth in the City of Miami
Charter Section 53(c) (ranked by preference per parcel):
Parcel No. 37: (1) Can -American Realty Corporation
(2) Cruz Development Company
The first -ranked developer is the preferred choice and the other
listed developer should be considered only if the City is unable
to negotiate a disposition agreement with a first -ranked devel-
oper. These recommendations are consistent with the Touche Ross
& Co. financial evaluation and the Selection Review Committee
report. Information concerning Parcel 37 is attached for your
review. It should be noted that both the Can -Am and Cruz Devel-
opment responses to the RFP were determined by the Law Department
to be complete.
Both Touche Ross & Co. and the Selection Review Committee ranked
Can -American Realty Corporation and Cruz Development as equally
qualified. we are recommending Can -American for the development
of this parcel based on the overall benefit to the project of
having multiple developers which will lessen the impact on the
project if a developer defaults. The Can -Am project design,
amenities, interior -block parking arrangement and security plan
were all given high marks. To achieve the lowest possible rents,
Can-Am's financial plan requires a very large front-end public
subsidy. Should this be impossible, Can -Am also listed financing
schemes that could substitute for HoDAG or UDAG subsidies to keep
rental rates to marketable levels. The Can -Am organization has
a substantial net worth and has recent successful experiences in
the development of similar, UDAG-supported, projects in Minnea-
polis and Baltimore, and it is already heavily involved in real
estate development in Florida. Can -American Realty Corporation,
in its =espouse to the RFP, did not provide detailed information
on minority participation but stated that it would meet the pro-
ject goals. In their response to the RFP, Can -Am provided an
example of an affirmative action program that they developed for
a project in Minneapolis and indicated that they would do the
same for this project (note attachment). Detailed information
supplementing previously submitted information on minority
participation was provided at the public hearing for developer
selection (note attachment).
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ATTACHKEn 1
Excerpt from the Touthe Ross & Company
Financial Evaluation of Competing
Redevelopment Proposals, January 30, 1985
soUTFIEAST OVERTOWN/PARK WEST
REDEVELOPMENT PROJECT
FINANCIAL EVALUATION
OF
COMPETING REDEVELOPMENT PROPOSALS
January 30, 1985
ToucheRoss &Ca
85-4 78,
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Soutbeast Overtow pork west Redevelopumt
Financial Evaluation
Project Viability
A. Pro.;ect Reasonable
• Occupancy i yr. 1 i 2
• Phasing/1st year
• Construction Cost/S4. Ft.
• Pricing/8ase Year
Subtotal
1. Financing Strategy
• Interest rate
Level/type
- Achievaoility
• Method (Y/N)
Subtotal
C. Developer Viability
A i story
- Yet Worth
• Financial Record
No litigation
No bankruptcy
Suototal
Return to City
A. Measurable (Y/N)
ft Lana lease
- Tax revenue
Subtotal
L quantitative Return
• NPV (Scaled lest to Want)
• Increrntal Tax Rev.
Tian horizon
Subtotal
C. Ressonaoleness (Y/N)
allD TOTAL
TOTAL
CAM
POINTS
CRYZ
ANMCAN
AVAILABLE
DEVELOPMENT
REALTY COW
6
3
6
a
6
8
g
8
8
11
i
I1
33 '
28
32
t
1
1
2
2
Z
9
9
4
12
12
12
7
7
7
6
7
3
3
3
4
4
4
21
20
21
S
5
10
5
3
2
10
14
lff:-1
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Parcel ft. 3
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I
Seethaut Ovate/hok Writ Redevelopment
Financial Evalustton
Project Viability
A. araiect Romania
• Occupancy s yr. 1 i 2
• Phasin4/ist year
• Construction C4st/S4. Ft.
• Pricing/ease Year
Subtotal
1. Financing Strategy
- Interest rate
• Level/type
• Achieve llity
• MOWN (Y/N)
Subtotal
C. Oevelop�or Viability
- History
• Yet North
Financial Record
No litigation
No ban nptcy
Subtotal
Return to City,
�►. Koasuesblo (YlN)
Lana lam
- Tax revenue
Subtotal
L quantitative Return
NPV (Scaled nest to Worst)
• Incremental Tax Rev.
• Time Horizon
Subtotal
C. Roasonaoleness WN)
AMC TOTAL
TOTAL
CAN
Points
CMZ
A1ERIC'AN
AVAILABLE
OEyEL� T
REALTY LW.i -
5
3
5
8
6
8
9
8
8
11
1
11
33 '
28
32
1
1
1
2
2
2
9
9
9
12
12
1Z
7
7
7
6
7
3
3
3
4
44
21
20
21
5
5
10
5
3
2
10
14
panel No. 3 M
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p,TtAcmcm 2
E%CetPt from the Repot Of the Seleetiou as
Review comittee ou Deve-11"Pseut
phase I Redevelopment Areat Yebtuary 1985
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SOUTiIEAST OVERTOWN/PARKWEST
. REDEVELOPMENT PROJECT
REPORTOF THE
SELECTION REVIEW COMMITTEE
DEVELOPMENT PROPOSALS
PHASE I REDEVELOPMENT AREA
FEBRUARY 1985
85--476 -
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wnereny the selection Revzou
developers of equal ranking.
Equally
Ranked
Developer:
Proposal:
Private
investment:
Financing
Plan:
ttee
Can -American Realty Corporation
350 Rental Units. (Number of units affordable to
low and moderate income families varies, depending
upon financing plan alternatives.)
30,000 square feet commercial space.
Parking for 395 cars.
$21,256,625
This project utilizes graduated payment tax exempt
bonds for permanent mortgage !inancing and
syndication -raised equity. The project requires
the commitment of $7,000,000 loan of supplemental
public assistance from UDAG or SoDAG or other
sources to be invested and utilized, with
earnings, as a declining subsidy to achieve the
proposed affordable rents during the first 15
years of the project. (This would make nearly all
units affordable to low and moderate income
families.) Loan is to be repaid from resale
proceeds or future cash flows. An alternative to
the public -source loan was also proposed, whereby
bond holders can convert to equity positions in
years where project income cannot support full
interest payments. Under this plan, rental rates
would have to be higher.
Minority
Involvement: Construction hiring and contracting at 50 percent
minority. No other involvement identified at this
time.
Equally
Ranked
Developer:
Proposal:
Cruz Development Company
386 Rental Units, with at least 58 units
affordable to low and moderate income families.
30,000 square feet commercial space.
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f
Parking for 435 cars.
Private
Investment: $29,545,144
Financing
Plan: This project utilizes tax exempt rate permanent
mortgage financing available through the Dads
County Affordable Rental Housing Program and
syndication -raised equity. The project requires
the commitment of $911,327 in supplemental public
assistance from UDAG, HoDAG, CDBG or other sources
to achieve a debt service coverage of 1.2:1 for
years 3 through 6 inclusive. This would be repaid
from subsequent project cash flows or from net
proceeds at time of sale.
Minority
involvement: General partnership proposing development is 100
percent minority -owned. Construction hiring is to
be 50 percent minority, with contracting to be 30
percent minority.
By a tie vote, Cruz Development Company (Cruz) is equally
s:
preferred by the committee for Parcel 37. Cruz has an
h
established team that has experience in working together. It
..
has been involved in inner-city residential rental development
elsewhere. The principals have a substantial combined net worth
and will sign personally, if necessary, to secure financing.
Their proposed construction company and local architects have
reputations for good work. The development design shows good
building arrangements, larger than minimum unit sizes and more
h'=
than the minimum required parking spaces. :Minority involvement
is excellent and well-defined.
By a tie vote, Can -American Realty (Can -Am) is equally
preferred by the committee for Parcel 37. The project design,
amenities, interior -block parking arrangement and security plan
were all given high marks. To achieve the lowest possible
rents, Can-Am's financial plan requires a very large front-end
public subsidy. Should this be impossible, Can -Am also listed
financing schemes that could substitute for HoDAG or UDAG
subsidies to keep rental rates to marketable levels. The Can -Asa
organization has a substantial net worth and has recent
successful experiences in the development of similar projects
in Minneapolis and Baltimore, which were UDAG-supported, and it
is already heavily involved in real estate development in
Florida.
IComposite committee rank scoring shoot follows this page.
1 =15-
85-4'76 _.
10
A
MAU' VOTING SwLa'G'"�0:1
C
:n the voting balow, ooMittee member3 were a3k94 to rank their top choice
as "1" and their second ':voice as "2". A "'" received 2 oint3 and R "2"
received one point. ; or same parcels, the :ommittae voted separately to
not recommend the proposal receiving the :over pout scow.) ?or parcels
or land use .ategoriese shers there was only one proposal beiag evaluated,
committee members used "Recommend" or "Not Recommend" instead of "t" or
"2". If a majorit7 of the committee voted "Recommend", the developer was
recommended, and if the committee majority voted "'Ut lecommend", the
ieveloper was not recommended.
?ARCEL :10. 37 l:+:tD CO USE A:EGORY: b4us�1WA O
DEVELOPER
4AN - AM
DVISLOPER
G� y
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HUNT
y
1
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is
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".1G': RECOe D"
For Parcels 44 and 36, the comaittda 3ep4:s; ! :and •:ses.
-16-
85-4 (£ . -
P
Y
N
EXPERIENCE
OF TEAM
FINANCIAL
CAPABILITY
FINANCIAL
RETURN
PROJECT
OESIGH
MINORITY
PARTICIPATIO
Cw^NFORMANCE
TO PROGRAM
PRIORITY
RANKING
CONTIGUOUS
PARCELS
EXPERIENCE
OF TEAM
FINANCIAL
CAPABILITY
• i
RECORD OF COMMITTEE RANKING ON PARCEL It PROPOSALS
FOR EACH EVALUATION CRITERIA LISTED IN PART IV
DEVELOPER- CRUL DEVELOPMENT COMPANY
RUMITCH GORDON GREEN HUNT PRESTANO
REEVES FLETCHER GEREAUX MACBErn
MWIFF
KUmtravu
I
mow,Lim
, t
DEVELOPER: CAN-AMERICAN REALTY CORPORATION
RUVITCH GORGON GREEN HUNT PRESTANO REEVES FLETCHER GEREAUX MACBETH MCGRIFF RODRIGUEZ
FINANCIAL
RETURN
I
PROJECT
DESIGN 1 1
MINORITY A i
PARTICIPATIONO '
CONFORMANCE ;; !
TO PROGRAM {i
PRIORITY
RANKING
CONTIGUOUS !I
PARCELS
— J. 1
2
2
Z 1
I
85-4'76 -
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ATTACHMENT 3
Can -American Realty Corporation Minority
Participation Plan, December 14, 1984.
H CA i-Ai•?a',ICAN ^IZA:.aY C3RPO:ZATI0ir .
,i SCJT:I'ZAST OVE:TOWN /2ARI: ,:EST
APARCEL 37
REDEVELOP::ENT PROPOSAL '
DECUIBER 14, 14304
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85-4178_.
P
4
RICHARD S. KAHN, 32, Vice President. Mr. Kahn is also Vice
President of Can -American Corporation. He is in charge of all
development activities for the Can -American Group in the
Minneapolis area and Southeast Florida, as well. Prior to
joining the Can -American Group in 1976, Mr. Kahn was employed by
the Minnesota Housing Finance Agency for three years. Mr. Kahn
holds a Bachelor of Arts Degree from Carleton College, and a
Juris Doctorate from William Mitchell College of Law.
MARK K. JOSEPH, 45, Vice President. Mr. Joseph is also President
of Shelter Development Corporation Limited, which is a subsidiary
of Can -American Realty. Since 1975, he has been in charge of all
development activities for the Can -American Group in the
Baltimore area. Since 1973, Mr. Joseph has been a partner in the
Baltimore law firm of Gallagher, Evelius & Jones. From 1971 to
1973, he served as an assistant to the Mayor of Baltimore and the
City Development Coordinator, and was Deputy Housing Commissioner
for the Baltimore City Department of Housing and Community
Development during the years 1968 to 1971. Mr. Joseph holds a
A.B. Degree from Brown University and an L.L.B. from Harvard Law
School.
ARNI C. THORSTEINSON, 35, Treasurer. Mr. Thorsteinson is also
Executive Vice President of Shelter Corporation of Canada Limited
ft, and of Shelter Holdings, and is Treasurer of Can -American
Corporation. Prior to joining Shelter in 1976, Mr. Thorsteinson
was employed by Richardson Securities of Canada, initially as a
financial analyst and later as an underwriting executive. His
background includes real estate finance and equity investments.
Mr. Thorsteinson holds a Bachelor of Commerce Degree from the
University of Manitoba and was awarded the designation of Charted
Financial Analyst in 1974.
1W.
3(1) Minority Participation Plan
By agreement with the City of Minneapolis and a community
organization, our Seven Corners Apartments project was built in
accordance with an Affirmative Action Plan which incorporated
minority employment and subcontracting goals considerably in
excess of the usual goals for City -assisted projects. Attached
(Section 16) is a copy of this Affirmative Action Plan and an
excerpt from the Construction contract on that project which not
only compelled the contractor to comply with our Plan, but also
gave us a meaningful mechanism for enforcing the contractor's
compliance. We propose to do exactly the same for this Project,
incorporating the goals set forth in the Request for Proposals.
3-3
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The time available for preparing our proposal has not been
sufficient to put into place the kind of minority participation
in the non -construction side of the Project, including equity
ownership, that the City would deem appropriate (no rent -a-
citizens). We fully intend to ultimately meet or exceed the
City's goals and expectations for minority participation.
3-4
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85-4'78__.
F
AFFIRMATIVE ACTION PLAN
FOR
SEVEN CORNERS HOUSING PARTNERS
Revised 7/29/82
85-4'78, _
I. A.
I. B.
I. C.
I. D.
I. E.
I.
I.
I.
I.
I.
I.
F.1
F.2
G.1
G.2
H.
I.
A.
B.
C.
SEVEN CORNERS HOUSING PARTNERS
1906 NpC Tower
7900 Xerxes Avenue South
Minneapolis, Minnesota 55431
Phone (612) 835-1865
TABLE OF CONTENTS
Table of Contents . . . . . . . . . . . . . . 1
Description of Work/Economic Forecast 2
Organization of Company/Relationship with
Subcontractors . . . . . . . . . . . . . . . 3
Equal Opportunity/Affirmative Action Policy
Statement - June 16, 1972 . . . . . . . . . . 4
Designation of EEO Officer/Implementation
Responsibilities . . . . . . . . . . . . . . . 6
Dissemination Methods - Internally. 9
Dissemination Methods - Externally. 10
Recruitment - Procedures. . . . . . . . . . . . 10
Recruitment - List of Recruitment Sources . . . 10
Employee/Staff EEO/AA Orientation . . . . . . . 21
EEO Grievance Process . . . . . . . . . . . . . 22
Goals
for
Construction Workers. . . . . . .
. . 23
Goals
for
Non -Construction Workers.
24
Women
and
Minority Business tW/MBE) Goals
25
Internal Audit Progress Reporting System. . . . 26
Subcontractors . . . . . . . . . . . . . . . . . 27
Signatures . . . . . . . . . . . . . . . . . . . 28
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A
SEVEN CORNERS HOUSING PARTNERS
1906 NFC 'Tower
7900 Xerxes Avenue South
Minneapolis, Minnesota 55431
Phone (612) 835-1865
I. B. DESCRIPTION OF WORK/ECONOMIC FORECAST
Pursuant to a Contract for Sale and Development of Certain
Land and an Urban Development Action Grant Agreement, Seven
Corners Housing Partners, a Minnesota limited partnership, will
construct a 248-unit rental housing project on a site in
Minneapolis. The project is expected to start construction this
Fall, and be completed in the Spring of 1984.
Seven Corners Housing Partners does not presently have any
employees, and does not anticipate hiring any employees in the
future.
The Project will be known as Seven Corners Apartments.
85-4'76
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SEVEN CORNERS HOUSING PARTNERS
1906 NFC Tower
7900 Xerxes Avenue South
Minneapolis, Minnesota 55431
Phone (612) 835-1863
I. C. ORGANIZATION OF COMPANY/RELATIONSHIP WITH SUBCONTRACTORS
Seven Corners Housing Partners is a Minnesota limited
partnership.
The Project will be constructed by an independent general
contractor, pursuant to a construction contract. There will be
no direct relationship between the owner and any subcontractor.
Seven Corners Housing Partners
1% 1% 9 8%
Can -American Realty West Bank CDC Investor Limited
Corporation, General General Partners
Partner Partner
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85-476._.
SEVEN CORNERS HOUSING PARTNERS
1906 NFC Tower
7900 Xerxes Avenue South
Minneapolis, Minnesota 55431
Phone (612) 835-1865
I. D.
It is the policy of Seven Corners Housing Partners (the
"Company") to take Affirmative Action to ensure that women,
minorities, and handicapped persons are adequately represented at
all levels of Company employment. The Company is committed to
affirmatively seeking out, addressing and remedying the effects
of present and past discrimination that may present barriers to
the full employment -of these persons. This will include
establishing reasonable goals and timetables for the hiring and
' promotion of women and minorities.
t.
It is the policy of the Company to ensure nondiscrimination
in recruiting, application, selection, hiring, placement, job
assignments, training, compensation, benefits, promotions,
upgrading, disciplinary actions, transfers, layoffs, recalls,
terminations, educational opportunities, employee social and
recreational programs, Company facilities and service, Company
sponsored activities and other conditions of employment,
regardless of race, color, creed, religion, ancestry, national
f`; origin, sex, affectional preference, handicap, marital status,
' status with regard to public assistance, Vietnam era veteran
. status, or age.
It is the policy of the Company to comply with all
r applicable Equal Employment Opportunity/Affirmative Action laws
' and regulations promulgated at the Federal, State, or Local
level, specifically including the Minneapolis Civil Rights
Ordinance (CH 139.10 - 139.60; CH 141.10 - 141.80), Title VII of
the Civil Rights Act of 1964, and Chapter 363 of Minnesota
Statutes.. It shall be considered a violation of this policy for
any person to retaliate against a person for pursuing his/her
rights under this policy, opposing acts he or she reasonably
feels violate this policy, or cooperating with investigations
into alleged violations of this policy.
It is the policy of the Company to prohibit harassment
because of the race, sex, or national origin of any employee,
applicant for employment, or subcontractor.
Any employee not complying with this Policy Statement or the
Company's Affirmative Action Plan shall be subject to
disciplinary actions. Any contractor of the Company not in
compliance shall be subject to legal sanctions.
-4-
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SEVEN CORNERS HOUSING PARTNERS
1906 NFC Tower
7900 Xerxes Avenue South
Minneapolis, Minnesota SS431
Phone (612) 835-1865
I. D. EQUAL OPPORTUNITYIAFFIRMATIVE ACTION POLICY
Further, it is the policy of the Company to take affirmative
action to ensure using the goods and services of minority and
female business enterprises in the community.
To implement this policy, the Company has developed a
comprehensive plan of action. This plan sets goals and
timetables for the hiring and promotion of women and minorities.
This plan shall have priority in all personnel actions and
management decisions. Good faith efforts toward the attainment
of these goals shall be considered in the performance appraisals,
merit increases, promotions and retention of all Company managers
and supervisors.
The Company's Equal Employment Opportunity Officer shall
have full authority and the Company shall commit the necessary
resources, both human and financial, for the administration of
the Company's Affirmative Action Plan.
The President and all other officers of the Company are
individually and collectively committed to implementing this
policy and the Company's Affirmative Action Plan.
SEVEN CORNERS HOUSING PARTNERS
By: Can -American Realty
Corporation, General Partner
Garrett G. Carlson, President
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SEVEN CORNERS HOUSING PARTNERS
1906 NFC Tower
7900 Xerxes Avenue South
Minneapolis, Minnesota 55431
Phone (612) 835-1865
I. E. DESIGNATION OF EEO OFFICER/IMPLEMENTATION RESPONSIBILITIES
Seven Corners Housing Partners fully endorses the principal
_
of Equal Employment Opportunity as ,set forth in the Company's
Policy Statement.
'=
Richard S. Rahn is hereby appointed as Equal Employment
{
Officer, with full authority for the administration of the
Company's Affirmative Action Plan. All policies and procedures
of this Company will be analyzed on a continuing basis to ensure
that the full spirit and intent of our stated policy is being
adhered to in every respect.
k:
The Company is committed to a firm and just policy of Equal
Employment
Opportunity, and the Company expects the cooperation
of every employee of this Company.
Any deviation or willful departure from this concept of fair
::.
and equitable treatment for all employees will be reported
}}'
directly to me and may be cause for dismissal. Any person who
believes he or she has been discriminated against on the basis of
race, color, creed, religion, ancestry, national origin, sex,
-:i
affectional preference, handicap, marital status, status with
regard to public assistance, Vietnam era veteran status, or age,
should contact the Equal Employment Opportunity Officer.
Richard S. Kahn is designated Company EEO Officer. His
responsibilities include, but are not limited to, the following:
I. Developing policy statements, Affirmative Action
Programs, internal and external communication techniques.
2. Assisting in the identification of problem areas.
3. Assisting line management in arriving at solutions to
problems.
4. Designing and implementing audit and reporting systems
that will:
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SEMEN CORNERS HOUSING PARTNERS
1906 NFC Tower
7900 Xerxes Avenue South
Minneapolis, Minnesota 55431
Phone (612) 835-1865
I. E. DESIGNATION OF EEO OFFICER/IMPLEMENTATION RE;
A. Measure effectiveness of the Company's program.
B. Indicate need for remedial action.
C. Determine the degree to which the goals and
objectives are progressing.
D. Maintain and review necessary records.
5. Serving as liaison between the Contractor and
enforcement agencies.
6. Serving as liaison between minority organizations,
women's organizations, handicapped organizations, and community
action groups concerned with employment opportunities of
minorities and women serve as to recruit minorities.
7. :seeping management informed of latest developments in
the entire equal opportunity area.
8. Giving assistance to managers and supervisors in the
establishment of appropriate goals and timetables.
`+3
9. Participating by active involvement with local minority
organization, women's organizations, handicapped organizations,
community action groups, and community service programs.
10. Auditing of Training Programs, hiring and promotion
patterns to remove impediments to the attainment of goals and
timetables.
11. Discussing the EEO Program regularly with managers,
supervisors, and employees to assure that the policies and
procedures are being adhered to.
12. Reviewing qualifications of all employees on a
continuing basis to assure that minority, female, and handicapped
employees are given full opportunities for transfers and
promotions.
13. Counseling all employees regarding career development
and promotion potential.
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$' SEVEN CORNERS HOUSING PARTNERS
ftw a
1906 NFC Tower
7900 Xerxes Avenue South
Minneapolis, Minnesota, 55431
Phone (611) 835-1865
i. E.
I
ON OF EEO OFF
ICER/IMPLEMENTATION RESPONSIBILITIES
14. Insuring that posters are properly displayed.
15. Insuring that all facilities, including Company housing,
are desegregated.
16. Insuring that minority, female, and handicapped
employees are afforded a full opportunity and are encouraged to
participate in Company -sponsored educational, training,
recreational and social activities.
17. Insuring that supervisors understand that their work
performance will be evaluated on the basis of their EEO efforts
and results, as well as other criteria.
18. Insuring that supervisors understand it is their
responsibility to take actions to prevent harassment of employees
placed through affirmative action efforts.
19. Insure that all salaries, wages, hiring, layoffs,
promotions, transfers, fringe benefits, opportunities for
training, opportunities for overtime, demotions are decided upon
without regard to race, religion, color, national origin, sex,
creed, ancestry, affectional preference, handicap, marital
status, status with regard to public assistance, Vietnam era
veteran status, or age.
20. Thoroughly investigate any worker's or applicant's
complaint of discrimination.
21. Encourage minority contractors and subcontractors to
submit bids for the Project. Give special attention to those who
recruit from the local community.
22. Counsel and assist minority craftsmen who are potential
subcontractors and subcontractors on securing bonds, writing
' contracts, making competitive bids, and keeping necessary legal
and financial records.
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SEVEN CORNERS HOUSING PARTNERS
1906 NFC Tower
1900 Xerxes Avenue South
Minneapolis, Minnesota 55431
Phone (612) 833-1865
I. F. DISSEMINATION METHODS
1. INTERNALLY
1. The Company's policy statement will be contained in the
Company policy manual which is updated annually.
'
2. All Company publications and annual reports will contain
-�
an EEO statement.
I.
Ar
3.. Quarterly meetings will be conducted with executive,
management and supervisory personnel to explain intent of policy
and individual responsibility for effective implementation,
making clear the attitude of the chief executive officer.
4. Each supervisor will be responsible for communicating
'
the policy to each employee under his or her supervision, at
least semi-annually, and a report of this action taken will be
entered into the EEO Officer's file.
x~an1rGX a.
5. EEO will be a part of all employee orientation and
}
training programs.
r:
6. Company representatives will meet with union officials
'era.
at least annually to inform them of the corporation EEO policy.
7. A nondiscrimination clause will be included in all union
agreements.
8. Company internal publications will be used to Iive
publicity to EEO progress, such as significant minorityfemale
promotions.
9. EEO policy will be posted on all bulletin boards.
10. When employees are featured in a product or consumer
advertising, employee handbooks or similar publications both
minority and non -minority men and women employees will be
' pictured.
11. The Company will communicate to all employees the
existence of the employer's Affirmative Action Program and make
the program available to them so they can avail themselves of its
benefits.
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85-4'7F__
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SEVEN CORNERS HOUSING PARTNERS
1906 NFC Tower
7900 Xerxes Avenue South
Minneapolis, Minnesota 55431
Phone (612) 835-1865
I. F. DISSEMINATION METHODS - Continued
2. EXTERNALLY
1. Effective immediately, recruiting sources will be
informed orally and in writing of Company policy, stipulating
that these sources actively recruit and refer minorities, women,
s and handicapped persons for all positions.
2. The EEO clause will be placed in or attached to all
purchase orders, leases, and contracts covered by Executive Order
11246, as amended, and its implementing regulations.
3. Minority, women's and handicapped organization,
community agencies, community leaders, secondary schools and
qUW colleges will be notified of Company policy, in writing.
4. The Company will communicate to prospective employees
the existence of the employer's Affirmative Action Program and
make the program available to prospective employees so they can
avail themselves of its benefits.
fto
5. When employees are pictured in consumer or help wanted
advertising, both minorities and non -minorities, men and women
should be shown.
6. Written notification of Company policy will be sent to
all subcontractors, vendors, and suppliers certifying policy.
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SEVEN CORNERS HOUSING FARTMERS
1906 NFG Tower
7900 Xerxes Avenue South
Minneapolis, Minnesota 55431
Phone (612) 835-1865
I. G. RECRUITMENT
I. PROCEDURES
The Company will contact protected class oriented
organizations on a regular basis, making known any present and
projected future job openings. All such organizations shall be
strongly encouraged to identify prospective applicants for all
lobs. Job opening advertisements, with an "EEO Employer W/M/H"
egend, will be placed in protected class oriented media,
including: La Voz, The Circle, LaRoza, Spokesman, and Courier.
2. LIST OF RECRUITMENT SOURCES
Please refer to attached list.
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SEVEN CORNERS HOUSING PARTNERS
1906 NFC Tower
7900 Xerxes Avenue South
Minneapolis, Minnesota S5431
Phone (612) 835-186S
I. G. RECRUITMENT
i 1. PROCEDURES
The Company will contact protected class oriented
organizations on a regular basis, making known any present and
projected future job openings. All such organizations shall be
strongly encouraged to identify prospective applicants for all
jobs. Job opening advertisements, with an "EEO Employer W/M/H"
legend, will be placed in protected class oriented media,
including: La Voz, The Circle, LaRoza, Spokesman, and Courier.
2. LIST OF RECRUITMENT SOURCES
Please refer to attached list.
-il-
85-47fi.
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• RECRUITHENT.RESOURCES
Saearls Romans Therapy Collective •
Kathy Winecoff
2619 Garfield Soutb
Minneapolis. MN 55408 '
872-8866
YWCA (Career Clinic)
Kathy Adam
1130 Hicollet Avenue
Minneapolis, M SS403
332-OSO1
Womens Component
(Urban League)
Brenda Reid
1210 Glenwood Avenue North
Minneapolis. MN SS405
.r 374-2S30 •
Chrysalis
Kathryn Ssymoniak •
2104 Stevens Avemn South
Minneapolis, M S5404
371-0118
Working Opportunities for Women/Displaced Homemakers-
Marita Honer
2344 Hicollet Avenue. Suite 240
Minneapolis. MI SS409
874-6636
Minnesota "omens Center •
Anne Truax ,
322 Walter Ubrary
if7 Pleasant Street Southeast
Minneapolis, 1N SS45S
MIN
Marie Collins
r3rd 'Floor Unemployment
341-7410
., CIIMT (Center for Humanism 3 Resource Training)
Nancy Cosgriff •
123 East Grant Street 11210
Minneapolis, !N 55403
(Wesley Temple Building - by Auditorium)
171-9100 -12-
r +
•
An
�z
Minneapolis kosen for better Job!
Ruby WI l son
Pov4erhorn Community Council
2636 Portland Avenue South
Miftnespol is, Mtf $1407
X 8900
Lesbian Resource Center
2104 Stevens Avenue South
Minnespolis, MIf SS404
$71-2601
3'-
I
f AGOG (All the Good Old Girls)
Patti Gepner Etkin
Y; 640 East Grant Street
•EW Minnespolis, MN SS404
37S-9496
t '
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., M ACK
Afro=AA. Studies Department•
Tani Ziegler
University of Minnesota
214 Social Sciences building
Minneapolis$ KH 55455
373-0143
TV,
s
The War
Randy Barber
`
R
1913 P1 ymouth Avenue North
Minneapolis. M SS411
t
521-36S1 .
Sabathani Conwnitr Center
Clarissa Walker
3801.• 1st Avenue South
,..
Minneapolis. HN 55409
fir. 3
827-3981
Y°
Phyllis Wheatler Community Center
Clarene Porter
T'
919 Fremont Avenue North
Minneapolis, HN SS411
374-4342
,-
Minneapolis Urban League -LEAP
s�
Nary Abed
nY:
1210 Glenwood Avenue
M
Minneapolis, NN S540S
k
374-2530
i
Orthodox Baptist Church
Reverend Andreas
—
1018 Russell Avenue Nortli
Minneapolis, W SS411
-
521-2501
=-
Southside LEAP.
• Eric Smaller
409 East 38th Street
Minneapolisj-W SS409
$27-1789
f
=
NAACP .
Hobart Mitchell '
P.O. Box 15082
., Minneapolis. Of S5415
-14-
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85-4'76
H
PLUCK (CohUhtled)
tipl$. Urban IAA&Ue (main office)
sbtt Johnson
Gleason cover
1121 l2th Ave. me*
S5411
85-476
•
;c
CH 1 CA`a0
4 Chicano Studies Department
Erlando Hinojosa-Smith
g` tMiversitr of Minnesota •
' 489 Ford Hall
m •
Minneapolis. MN SUSS •
373-9797
Centro- Cultural Chicano Inc. •
Done Vargas
• Augustin "Willie" Dowinques
3300 Olson Highway
f,. Minneapolis. MN SS411
374-2996
r_
8574'76
h&r aptMont of Amerlegh Indian Studies
John Clark
812 Social Science building
Minneapolis, M SS455
373-0146
Branch-1
Sister Joan Connors
.1308 East Franklin
Minneapolis. mN SS404
870-1886
STA
John Hartinsin
IS South Sth Street
Minneapolis, Hai S5402
72S-2936
0
Indian Neighborhood Club
Joe Bedeau
180S Portland Avenue
Minneapolis. MN S5404
Anishinabe Longhouse
Fen Bedeau (JudyL)
1016 Newton Avenue North
Minneapolis, M SS411
S21-22SI
American Indian Services
Dave Sand
73S East Franklin
Minneapolis, MN SS404
871-2175
Minneapolis Regional Native American Center
Ben White/Bob Pendleton
IS30 East Fianklin
Minneapolis,, MN S5404
• 871-740S ext. 38
Division -of Indian Works
Rosalie Brown Thundqr
3045 Park Avenue..
Minneapolis, 14H SS403
327-1795
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tY.
Minnesota Chippewa tribe
Lloyd tafave
.r 2344 Nicollet Avenue
Minneapolis, MN SS404
871 •S940
Little Earth of United Tribes
• Artley Slcenandore-
2501 Cedar Avenue Southe
Minneapolis, MN SS404
729-9361
Indain Health Board
Norrine Smith/JOAnne.Barr
249S - 18th Avenue South
Minneapolis. HN S5404•
721-742S
' Branch III
Dick Mitchell
loth b Chicago .
Minneapolis, MR SS401
37S-9476 •
ZM
Minnesota Indian Affairs
=r Inter Tribal Board
= Francis Felix •
-�` North 360 Creggs Midway Building
#a 1821 University Avenue '
St. Paul, tX 55104
296-3611
American Indian Chemical Dependency Diversion Project
Sharon Shapiro/Herb San
--= 809 B: Franklin
Minneapolis, MN SS404
871.4836
Upper Midwest Indian Center
�^ Emily Peaks •
• 2113 M. Broadway
Minneapolis,.101 55411
522-4436
American Indian Student Culture Center
204 Jones Hail
27 Pleasant Street Southeast
Minneapolis, MM S5455
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i
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_.d...: •j
L 1y C •
r
_
pact Center
Otto Mirgau/George•Munsey
!,
1101 - 3rd Avenue South
Minneapolis. M 55404
34866293
Catholic 1lelfarf
Virginit Birkner
=Y
404 South 3th Street
Minneapolis. MN $3404 ,
340-7500
'
Women Helping Offenders
Stanley Hatcher
1422 pest Lake
Room 204
S5408
Minneapolis. MH
824.0741
,.:.
HIRED '-
4
John George
1009 Hicollet Hall
Minneapolis. M SS403
:
x 8S50 ,
Urban Coalition
_
Earl Craig '
mt
1009 Nicollet !fall
' Minneapolis. NN . SS403 '
n: X 8550
Pilot City •
Jeanne Pettiford/Corey Kissel
-� 131S Penn Avenue North
Minneapolis. MN SS411
X 4 700
TCOIC ,
INS Olson Memorial Highway •
Aiternier Cook '
Minneapglis..NN S5411
5 r 377.41SO •'
Dunwoody Industrial Institute
John Hanson -
618 Wayzata Blvd:
Minneapolis. M S5403 '
374-SB00
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Occupational Skills training Center
Cave JaSSeri/Olga Yunis/to: Lundy
1006 best take
Minneapolis, MN S1408
x 4031
Pillsbury -Waite Neighborhood Services
Wendy saver
720 East 26th Street
x
Minneapolis$ MN SS404
•
a71-21oi
Comunity Cixrrer Center
Betty Olson
Fair School
391S Adair Avenue North
.
Minneapolis, W SS422
S46-0466
Minority Resource Center
r
302 Eddy Nall
;-
192 Pillsbury Avenue Southeast
University of Minnesota
:.
Minneapolis, MN SS6SS
373-7947
.;
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SEVEN CORNERS HOUSING PARTNERS
1906 NFC Tower
7900 Xerxes Avenue South
Minneapolis, Minnesota 53431
Phone (612) 835-1865
1. H. EMPLOYEE/STAFF EEO/AA ORIENTATION
The Equal Employment Opportunity Officer shall be
responsible for training all employees on EEO/AA matters. All
aspects of the Company's Equal Opportunity Policy and Affirmative
Action Plan will be thoroughly reviewed at employee meetings held
at least quarterly, and quarterly internal distributions of
written materials.
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SEVEN CORNERS HOUSING PARTNERS
1906 NPC Tower
7900 Xerxes Avenue South
Minneapolis, Ninsnesota 55431
Phone (612) 835-1865
It. A. GOALS FOR CONSTRUCTION WORKERS
The Company does not anticipate ever, having any employees in
trades positions.
All subcontractors of the Company shall be contractually
obligated to establish the following minimum goals for their
trades positions:
1. 5% women - skilled and unskilled
2. 15% minorities - skilled
3. 15% minorities - unskilled
Preference shall be given to residents of the Cedar -
Riverside neighborhood. However, neighborhood preference shall
not pre-empt the goals for minority and women participation. It
is estimated that at the maximum periods of activity,
approximately 75 construction workers will be employed on the
site.
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M.
SEVEN CORNERS HOUSING PARTNERS
1906 NFC Tower
7900 Xerxes Avenue South
Minneapolis, Minnesota 55431
Phone (612) SSS-1965
II. B. GOALS FOR NON -CONSTRUCTION WORKERS
The Company presently has no employees, and does not plan to
hire any.
85-4"Pfi
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SEVEN CORNERS HOUSING PARTNERS
1906 NFC Tower
7900 Xerxes Avenue South
Ninneapolis, Minnesota 55431
Phone (612) 835-1865
I. I. EEO GRIEVANCE PROCESS
Applicants for Company employment, present employees, part
and full time employees, temporary or permanent employees, and
persons terminated from Company employment have a right to file a
grievance with the Equal Employment Opportunity Officer when they
feel their employment or potential employment has been adversely
affected because of race, color, creed, religion, ancestry,
national origin, sex, affectional preference, disability, marital
status, status with regard to public assistance, Vietnam veteran
status, or age.
All grievances are handled in an expeditious manner.
Investigations are objective. Federal, state and local court and
administrative decisions are used as guides in these
investigations. All information in the case files is
confidential unless properly subpoenaed by a court or
administrative body. Individuals will not be subject to
discipline or discrimination in terms and conditions of
employment as a result of using the grievance procedure.
The grievance procedure is initiated by the filing of a
complaint with the Equal Employment Opportunity Officer. If the
Equal Employment Opportunity Officer is unable to resolve the
complaint on an informal basis, he or she shall make a thorough
investigation of the matter. On the basis of such investigation,
he or she shall make a written report to the President of the
Company, including a recommended disposition. The President
shall review such report, and take such action as he or she deems
appropriate. No more than 30 days shall elapse from the date the
complaint is filed and the date a final resolution is made by the
President.
In addition to the above, each employee shall receive a
periodically updated form, listing the administrative agencies
they have a right to file a complaint with concerning an alleged
discriminatory act, and any applicable time limits for such
filings.
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SEVEN CORNERS HOUSING PARTNERS
1906 NFC Tower
7900 Xerxes Avenue South
Minneapolis, Minnesota 55431
Phone (612) 835-1865
It. C. WOMEN AND MINORITY BUSINESS (W/MBE) GOAL
The Company will work with the City's Women and Minority
Business Office to establish goals for the Project before any
bids are solicited or contract negotiations commence. The
Company agrees to incorporate the agreed upon W/14BE goals in the
approved Affirmative Action Plan.
f
The Company's proposed goal for the utilization of
minority -owned and woven -owned businesses is 207.. No more than
5% (equal to 25% of the 20% goal) with any one such subcontractor
shall be counted towards the goal. Preference shall be given to
neighborhood subcontractors, but such preference shall not pre-
empt the goals for women and minority participation.
�r
fi
The Company shall contact protected class oriented
organizations and the City of Minneapolis to obtain lists of
W/MBEs. Letters will be sent out to all identified W/MBEs
describing the nature of the Company's present and anticipated
future projects. These letters shall solicit a response,
a'
indicating whether the W/MBEs would like to be personally
contacted to discuss a specific participation in any Company
,.,._
project. Periodic 'follow-ups and further solicitations shall be
made.
All subcontractors of the Company shall also be
contractually obligated to establish the same goals for W/MBE
utilization among their subcontractors, as those adopted by the
Company. In addition, by contractual provisions, the Company may
elect to impose monetary penalties on its subcontractors for
their failure to comply with the provisions of this Plan.
All W/MBE firms to be counted toward the W/MBE goals must be
I certified by the City of Minneapolis W/MBE Office.
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s
SEVEN CORNERS HOUSING PARTNERS
1906 NFC Tower
7900 Xerxes Avenue South .
Minneapolis, Minnesota S5431
Phone (612) 835-1865
III. INTERNAL AUDIT PROGRESS REPORTING SYSTEM
The effectiveness of the Company's Affirmative Action Plan
shall be measured by the degree to which it achieves Its AA
goals. The Equal Employment Opportunity Officer shall be
obligated to monitor all Company employment activities
(recruiting, hiring, promotion, and firing) and 'A/MBE utilization
4
at all times. Quarterly reports shall be submitted to the
President of the Company for his or her review, with
recommendations noted thereon for any necessary remedial acttons.
The Company shall submit monthly and other reports, as
necessary, to the City for the purpose of the City's assessing
the Company's compliance with its Contractual Agreement, the
Affirmative Action Plan, and the City Ordinance.
f°
If and when the utilization of women and minority businesses
or women and minority employees is below the goals established in
the Company's Affirmative Action Plan, the Company will notify
the appropriate City EEO Compliance Agency and Prov.de a written
explanation of the reasons why the utilization has fallen below
the goals.
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SEVEN CORNERS HOUSING PARTNERS
r:
1906 NFC Tower
7900 Xerxes Avenue South
Minneapolis, Minnesota 53431
Phone (612) 835-186S
Iv. SUBCONTRACTORS
The Company will notify all subcontractors, including the
operator of the Hotel, of their responsibility for Equal
Opportunity and Affirmative Action under this Plan, and will hold
subcontractors fully accountable for compliance, including
sanctions where appropriate.
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SEVEN CORNERS HOUSING PARTNERS
1906 NN Tower
7900 Xerxes Avenue South
Minneapolis, Minnesota 55431
Phone (612) 83S-1865
VI. SIGNATURES
SEVEN CORNERS HOUSING PARTNERS
By: Can -American Realty.
Corporation, General Partner
Garrett G. Carlson, President
By.
Richard S. Kahn, Equal Employ-
ment Opportunity Officer
MINNEAPOLIS AFFIRMATIVE ACTION
By
Its Director
MINNEAPOLIS CIVIL RIGHTS DEPARTMENT
By Its Director
.028-
85-476
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p.
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AI F1I:F".AI tYf ACTION PLAN
J /
SirN-OFF
This is to ar.knowled!ne that an affirmative action
plan has becu al+N+•oved for the . SEYEH.LORHELI-:—
APARTMENTS Project as requirod by Chapter 139.S0
of the tiinneapol is Code of Ordinances.
This plan will be available for review at
SEVEN
TUCORwNE, y_ilpUSl
1?0-UFC rOWWJR 7900 XERXES AVE. SO.
Address of Company
and at the Minneapolis department of Civil Rights (348-7736)
and at the I•tinneapol i s Affirmative Action Mananement
4_ Program (348-6601).
a
tie r0ct 'tCils. Aff: fiction Ftc+�t. Prod.
CC:
-.�i0� rer, i+pT . Dept. 9 C,i vi 1 R� gFits
85-4'7f
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t
ARTICLE 3.
THE CONTRACTOR'S DUTlrS AND STATUS
a
----The -Contractor accer+ts the relationship of trust and
confidence established between him and the Owner by this
Agreement. He covenants with the Owner to furnish his best skill
and judgment and to cooperate with the Architect in furthering
the interests of the Owner. He agrees to furnish efficient
business administration and superintendence and to use his best
efforts to furnish at all times an adequate supply of workmen and
materials, and to perform the Work in the best way and in the
most expeditious and economical manner consistent with the
interests of the Owner.
..
aw
3.2. The Contractor, prior to the issuance of the Owner's start
order, shall provide the Owner with a payment bond and a
performance bond, in a form satisfactory to the Owner and the
Lender, each in the amount of the Guaranteed Maximum Cost stated
in Article 5.
3.3.1. The Contractor shall be responsible for complying with
all affirmative action and equal opportunity requirements
applicable to the Project, specifically including the
requirements set forth in the Owner's Affirmative Action Plan
filed with the City of Minneapolis, the provisions of which are
Incorporated herein by this reference. The Contractor shall also
be solely responsible for ensuring compliance with such
requirements by all of its subcontractors.
3.3.2. The Contractor shall provide the Owner with duplicate
copies of all reports issued to the City of Minneapolis with
respect to the Owner's Affirmative Action Plan (the "Plan") at
the same time all such reports are submitted to the City. Such
duplicate copies shall be delivered to:
Richard S. Rahn
Can -American Realty Corporation
7900 Xerxes Avenue South, Suite 1906
Minneapolis, MN 55431
Jeanie LaBore
Seven Corners Community Housing Corporation
2000 South Fifth Street
Minneapolis, MN 55454
The Contractor agrees to provide the Owner or its designee
reasonable access to the site to monitor performance under this
Section 3.3.2 and to verify the accuracy of the Contractor's
reports. Failure to comply with the aforesaid Plan may result in
the Owner imposing, in its sole discretion, liquidated damages of
up to $1,000 per week of non-compliance. Submission of a
compliance report with suhstantial and material erroneous
information may result in the Owner imposing, in its sole
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85-4'7f
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3 ATTACR UXT 4
Can -American Realty Corporation Minority
t� Participation Plan, March 290 1985.
CAN-AMERICAN REALTY CORPORATION
MINORITY PARTICIPATION PLAN
t
I
PARCEL 37
SOUTHEAST OVERTOWN/
PARK WEST
_y
JEM
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CAN-AMSRiCAN REALTY CORPORATION j
I
Minority Participation Plan Par
Parcel 31 of the Southeast Overtown/Park
West_Redeyelooment Proiect Phase L_
Can -American Realty Corporation of Minneapolis
("Can -American") has a demonstrated history of commitment to
the development and implementation of affirmative action
plans. These affirmative action plans incorporate minority
employment and subcontracting goals into the development of
inner-city and distressed area, mixed use and residential
projects.
Because of the unique undertaking of the City of Miami
in its Southeast Overtown/Park West Redevelopment Plan,
Can -American feels it is particularly committed to exceeding
the usual goals for city assisted projects. This commitment
translates into an effort to fully integrate the concerns and
objectives of Miami's black community into meaningful
participation in this redevelopment project.
Can -American and its development partners for this
undertaking (the "Can -American Group"), propose to meet or
exceed the City of Miami's established goals for the Park West
portion of the project area which includes Parcel 37; the
proposed Can -American development site.l Through the
lCan-American Proposal ("Proposal") Section 3 p. 4 r
85--4'78
i
e
implementation of its minority participation plan, the
Can -American Group will meet or exceed the following minority
participation goalss
(1) twenty-five (25%) percent black construction
goal in city sponsored activities;
(2) twenty-five (25%) percent black contracting
goal;
(3) twenty-five (25%) percent black construction
hiring goal;
(4) twenty-five (250) percent black retail space
ownership goal;2 and
(5) fifty (508) percent black permanent hiring
goal.3
Further, the Can -American Group will comply with all
applicable federal, state and local fair housing and
affirmative action legislation and regulations, including the
City of Miami Code Section 18-73, and City of Miami Resolution
No. 83-297 adopted April 6,'1983.4
2Southeast Overtown/park West Request for Proposals
("R.F.P.") p. 50 and Proposal section 3, p. 4
} 3Proposal section 11, p. 79
4R.F.P. p. 50 and Proposal section 16, p. 4
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85-4'76
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While it is not specifically required for the Park
'. west portion of the project area, the Can -American Group
proposes to include as a part of this minority participation !
a plane, an equity participation program for local black
p p P 9
4.
a investsent involvement and ownership of the project,
Demonstrated Record of Minority Participation
As outlined in its submission, Can -American together
with affiliated companies owned and operated by the same group
of individuals since 1974, has been responsible for the
development of two thousand five hundred and sixty-eight
(2,568) subsidized housing units. in each instance
Can -American has demonstrated an aggressive compliance with all
federal, state and local affirmative action requirements.6
Can -American is particularly proud of one of these
development projects, the Seven Corners Apartments Housing
Project. This development represents a two hundred and
forty-eight (248) unit, UDAG-financed, rental housing project,
located in the Cedar -Riverside neighborhood of Minneapolis
(originally a federal new -town -in -town project). The project
was developed in partnership with a neighborhood non-profit
corporation in 1983 and 1984. Can -American now manages
SProposal section 31 p. 4
6Proposal section 1, p. 1
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the project. Mortgage and equity proceeds totaled 21.4 million
dollars.?
in all respects, Seven Corners Apartments comes
closest to what the Can -American Group hopes to accomplish in
Southeast Overtown/Park west. Seven Corners is located in a
neighborhood adjacent to downtown Minneapolis, which has long
been targeted as a high -priority redevelopment area by the
City. it is economically feasible only by virture of
substantial financial assistance from the City and from HQO tin
the form of an urban development action grant). Seven Corners
offers highly affordable rents for people of modest means.8
Under an agreement with the City of Minneapolis and a community
organization, the Seven Corners Apartments Project was built in
accordance with an affirmative action plan which incorporated
minority employment and subcontracting goals considerably in
excess of the usual goals for city assisted projects.
The construction contract on the Seven Corners project
not only compelled the contractor to comply with the
affirmative action plan, but also contained a meaningful
mechanism for enforcing contractor compliance. On the Seven
7Proposal section i, p. 3
BProposal section 1, p. 4
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6
Corners _._ora ect,_ __failurebv a _contractat to____fulfill minorit
involvement _coals was __cause_ for default. The. Can -American
Group proposes to do exactly the same with the Southeast
Overtown/Park West Parcel 37 Redevelopment Project, in addition
to incorporating the goals set forth in the Request For
Proposa18.9
rarcei it mLnuritY rarticipazion program
Because of the importance of the Southeast
Overtown/Park West Redevelopment Project to Miami's black
community, the Can -American Group will make the fullest
commitment for black involvement in this development process as
is possible. The Can -American Group, as a principal element -of
this proposal will implement a Minority Participation Plan
which will contain the following features%
(1) local black minority equity participation,
through solicitation of investment in the development costs and
ownership of the Project, from individuals in the local black
community;10
(2) the achievement of at least twenty-five
(25%) percent black construction contracting in the overall
development project;
9Proposal section 3, p. 3 and section 12, pp 33-34
1Oproposal section 3, p. 4
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85-476
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(3) a commitment to achieve a twenty-f ive (256)
+r
percent black professional contracting goal, involving black
professionals in all aspects of the project development-
(4) the achievement of at least twenty-five
(256) percent black construction hiring=
(5) a commitment to achieve a twenty-five (256)
percent black retail space ownership goal in the project's
proposed thirty thousand (30,000) square feet of commercial
spacesll and
(6) the achievement of at least a fifty (50%)
percent black permanent hiring goal for the maintenance and
operation of the project.12
Black Equity Participation
The Can -American Group has made a commitment to accept
equity participation investments from individuals in the local
black community. At this time Can -American has entered into a
preliminary agreement with Mr. Otis Pitts for his 15% equity
investment in the development costs and ownership of this
project. Mr. Pitts will share with Can -American proportionally
in the cash flow and tax benefits of this project, as well as
in the profit of any subsequent sale of the same.
11R. F. P. p. 50 and Proposal section 31 p. 4
12Proposal section 11, p. 79 and section 16, p. 10
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85-4'76
9
D
40
Attendant to his investment are the normal commercial risks and
losses of a development project of this nature.13
Black Construction Contracting
The Can -American team proposes to target at least
twenty-five (250) percent of the value of contracts for the
construction of this project to black contractors and
subcontractors. in order to achieve this goal, the
Can -American team proposes to employ the following
techniquess14
(1) the targeting of specific trades for
competitive bidding among black subcontractors;
,. (2) the facilitation of joint venture agreements
�4t between black contractors and established contractors for the
s•
performance of a single construction contract; and
(3) the active solicitation of black contractors
and subcontracts for bidding on all project contracts.l5
Black Professional Contracting
The Can -American Group, in its efforts to reach or
exceed a twenty-five (25%) percent black professional
13proposal'section 3, p. 4
14proposal section 16, p. 8
15Proposal section 3, pp 3-4
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85--4'7Fs
contracting goal, has directed its local law firm of Fine
Jacobson Schwarts Nash Block a England, P.A., to joint venture
s. with local black attorney Ximmberly L. Parker for the
performance of legal services to the project. Ms. Parker has
reached an agreement in this regard to perform twenty-five
(251) percent of the local legal services required by the
project. The Can -American Group will continue to make every
effort to involve blacks in each area of professional services
required by this development project.l6
Black Construction Hiring
The Can -American Group will, in all solicitations or
a, f advertisements for employees, state that all qualified
r
applicants will receive consideration for employment without
regard to race, color, religion, sex, or national origin.
Can -American and its partners will comply with all federal,
state and local laws regarding fair labor hiring practices.
Equal employment opportunity provisions will be included in
each labor union contract, collective bargaining agreement, or
.." other contract or understanding, with a requirement that all
sub -contractors report to the general contractor on a daily
MW basis for the immediate assessment of goal achieveirent. Copies
�" of these provisions shall be posted as notices in conspicuous
16proposal section 3, pp 3-4
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85-47b
1
3
places available to employees and applicants for employment.
In addition, equal employment opportunity provisions wilt be
included in each contract or purchase order and will be
required in the inclusion of each subcontract entered into by
any of its contractors or vendors. In the event of
non-compliance, the_Can-American Grouo reserves the riaht to
cancel, terminate or suspend, in whole or in part.any contract
or agreement held by the non -complying -party. The Can -American
Group will actively pursue through the established local
mechanism appropriate, the solicitation of applications from
black construction workers.17
Black Retail Space Ownership
In response to its commitment to reach a twenty-five
(25%) percent black retail space ownership goal for this
project, Can -American will target twenty-five (251) percent of
the retail space available in the project for black ownership
and actively pursue local black enterprise for such occupancy
and ownership. Mr. Pitts, with his real estate development
experience will assist in this effort.18
175ee Proposal section 12, pp 33-34 and section 16, pp 8
and 31 - Article 3
18Proposal section 3, pp 3-4
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85-4'78
I.
. black__PerManent___Mirin
Canadian financial Mousing Corporation of Minneapolis,
Minnesota will be responsible for the management and operation
of the project upon completion. Canadian financial an
affiliate of Can -American, will be responsible to the
Can -American team for the implementation of a fifty (500)
percent black hiring goal. Hiring practices as outlined in the
construction hiring section of the Minority Participation Plan
will be implemented for the permanent hiring of individuals,
for the maintenance and operation of the project.19
19Proposal section 11, p. 79
7261E
032285/6/AT
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