HomeMy WebLinkAboutR-83-10280- r
T-83-933
A RESOLUTION ALLOCATING THE AMOUNT
Or $3,117..29 FROM THE SPECIAL
PROGRAMS ANI) ACCOU14T CONTINGENT FUND
TO THE COCONUT GROVE LOCAL, DEVELOP-
MENT CORPORATION (CGLDC) TO SATISFY
THE FINANCIAL OBLIGATIONS 01---' CGLDC
WITH REIMBURSEMENT TO THE CITY OF
P-1IANII ON OR BEFORE JANUARY 1, 1984.
WHEREAS, the promotion of economic revitalization in the
neighborhoods of the City of Miami is an important part of the
Citv's economic development strategy; and
WHEREAS, the City Commission is committed in assisting and
supporting the City of Miami's neighborhood economic 3evelopment
programs; and
1111EP.EAS, the City Commission is desirous of continuing the
neighborhood economic development program; and
NHEREAS, the City Commission adopted Motion 83-627, on July
18, 1983, which authorized the City Manager to execute a Contractual
Agreement allocating $37,750 to the CGLDC from the ninth year
Community Development Block Grant Funds (CDBG); and
WHEREAS, the CGLDC is requesting an allocation in the amount of
$3,117.29 to satisfy a Federal tax lien and levy placed on the
Corporation by the IRS due to non-payment of payroll taxes for the
third and fourth quarter tax periods in 1981; and
WHEREAS, the CGLDC is required to generate $12,250 of its ninth
year funding amount ($37,750) by January 1, 1984 pursuant to said
Agreement; and
WHEREAS, the CGLDC will be able to reimburse the City of Miami
$3,117.29 on or before January 1, 1984 from the monies it is required
to generate under said Agreement; and
CITY COMMISSION
M- EETING OF
R 0 V 16 1983
b
1aIIEREAS, the City of Miami hereby recognizes and supports the
efforts of the CGLDC in fulfilling its financial obligations;
NOW TIiEREFORE BE IT RESOLVED BY THE COMMISSION OF THE CITY OF
MIAMI, FLORIDA:
Section 1. The amount of $3,117.29 is hereby allocated `rom
the Special Program and Accounts Contingent fund, to the CCLI:)C,I./for
the purpose of satisfying the financial obligations of CGLDC.
Section 2. The CGLDC shall reimburse the City in the amount
of $3,117.29 at no intereston or before January 1, 1984, from monies
generated by CGLDC as required and in compliance with the 9th year
Economic Development Contract Agreement with the City of Miami.
PASSED AND ADOPTED this
ATTEST:
f�
LPH'G. ONGIE, CITY CLE
PREPARED AND APPROVED BY:
16th day of November , 1983
:aurice A. Ferre
MAURICE A. FERRE, MAYOR
ROBERT F. CLARK, DEPUTY CITY ATTORNEY
APPROVED AS TO FORM AND CORRECTNESS:
JOSE R. GARCIA-PEDROSA, CITY ATTORNEY
1/ l:( [-UC titands for Coconut Grove Local Development Corporation.
63-1028
35 CITY OF ""A.11, FLORIDA
INTER -OFFICE MEMORANDUM
%:o%-.ard V. Gar.
Cit•, %Ianzcer
lqsm Charlotte Galiogly
Director
DATE October 17, 1983 <<'-E
SUBJECT Recorr►endatien To Allocate
funds To The Coconut Grove
Local Development Corporation For
REFERENCES The Purpose Of Satisfying Out-
standing Federal Tax Obli-
ENc�osuREs gationS.
Department, ofF Economic Dev.
0
"It is recommended that the City n c
Commission approve the attached -±rn
resolution allocating $3,117.29 " ``3
from the Special Programs and
Account Contingent Fund to the - -_
Coconut Grove Local Development
Corporation (CGLDC) to satisfy _
the Financial Obligations of
CGLDC with reimbursement to the -�
City of Miami on or before t
January 1, 1984.
On July 18, 1983, the City Commission passed Motion 83-627 authorizing
the City Manager to execute a contractual agreement allocating
$37,750 to the CGLDC from the ninth year Community Development Block
Grant funds (CDBG). One of the contractual responsibilities of the
Corporation is to generate $12,250 of its ninth year CDBG funding
amount by January 1, 1934.
On October 4, 1983, the Coconut Grove Local Development Corporation
received a Federal Tax Lien and Levy in the amount of $4,117.29 from
the Internal Revenue Services (IRS). The CGLDC failed to pay its
corporate payroll taxes for the third and fourth quarter tax periods
in 1981. Its a result of the levy, all property, property rights,
credits, money and bank accounts have been frozen by the IRS.
To date, the Corporation has received two reimbursements from the
City of Miami. A check in the amount of $603.69, which represents
the balance due to the Corporation from the eighth year contract
period, was issued on October 12, 1983. Also, on October 12, 1933
the Corroration received a reimbursement check for the 9th year
contract period in the amount of $7,040.97.
83--1028
Ho�va rd V . Gary
October 17, 1983
Page #2
The money received by the Corporation for the close-out of the 8th
year contract period ($603.96) as well as monies reimbursed for the
9th year contract period ($7,040.97), cannot be used to pay out-
standing tax obligations. Please note that Community Development
funds are federal monies, which cannot be used to pay IRS liens
or levys.
On October 3, 1983, the CGLDC paid the IRS $1,000.00 towards the
amount due on the federal tax lien. Therefore, I am recommending
that the City allocate to CGLDC, $3,117.29 ($4,117.29-$1,000.00) to
pay off its outstanding tax obligation to the IRS. The CGLDC will
repay the City with monies generated by the Corporation as required,
and in compliance with the 9th year economic development contract.
Upon Commission approval, a number one check in the above stated
amount will be issued to the Corporation. The Department of Economic
Development will require that the Board of Directors sign a promisory
note for the amount allocated before the check is released.
CG/MYA/es
Attachment
83-1028