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HomeMy WebLinkAboutR-83-0484J-33-384 M83-?38 (3/13/83) RESOLUTION NO. S,3--4S4 A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT, IN SUBSTANTIALLY THE FORM ATTACHED, WITH THE SOUTH FLORIDA ECONOMIC DEVELOPMENT CORPORATION (SFEDC), PROVIDING A LOAN OF $50,000 FROM COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS TO SPONSOR A COMMUNITY FEDERAL CREDIT UNION PROGRAM WITH THE DADE-MODEL CITIES COMMUNITY FEDERAL CREDIT UNION IN CONFORMANCE WITH ALL APPLICABLE RULES AND REGULATIONS OF THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT'S COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM. WHEREAS, the City Commission, on March 18, 1983, passed Motion 83-238, authorizing and directing the City Manager to loan $50,000 to the "SFEDC" at a rate of three percent (3°,) for a five year period, said funds to be taken from the 8th year Community Development Fund; and WHEREAS, the "SFEDC" will use said loan to assist the Dade -Model - Cities Community Federal Credit Union carry out a credit union program within the Model Cities area of Dade County; and WHEREAS, the purpose of the program is to expand the number of member and non-member depositors in the Credit Union; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Manager is hereby authorized to enter into an agreement, in substantially the form attached, with the South Florida Economic Development Corporation (SFEDC), providing a loan of $50,000 from Community Development Block Grant funds to sponsor a Community Federal Credit Union Program with the Dade -Model Cities Community Federal Credit Union. Section 2. All SFEDC activities under the agreement shallbe in conformance with all applicable rules and regulations of the United States Department of Housing and Urban Development's Community Develop- ment Block Grant program. PASSED AND ADOPTED this 9th day of June , 1983. CITY COMMISSION MA"El!NG OF �i UN 9 1983qq ��?? RES�LUIr fv tiu. 83-48, !REMARKS. ATTEST: RALP�G.ONGIE, CITY CLEIM PREPARED AND APPROVED BY: ROBERT F. CLARK DEPUTY CITY ATTORNEY APPROVED AS TO FORM AND CORRECTNESS: JQVE R. 1,-ARCIA-PEDROSA qyrY ATTORNEY 1 Page 2 of 2 Maurice A. Ferr_e M A Y 0 R 83--484 L1 52 Howard V. Gary City Manager CITY OF MIAMI. FLORIDA INTEROFFICE MEMORANDUM `a'E May 2, 1983 r:LE s„a.E CONTRACT WITH SOUTH FLORIDA ECONOMIC DEVELOPMENT CORPORA- - ` TION aC M Charlotte Gallogly �, .. ' REFER E 14 C ES Director City Commission Agenda/ Department of Economic J INCC.OSURE-14ay 12, 1983 Development "It is recommended that the City Manager be authorized to enter into a contract with the South Florida Economic Development Corporation (SFEDC), providing a loan of $50,000 from 8th Year Community Development Block Grant funds for SFEDC to sponsor a community federal credit union program with the Dade -Model Cities Community Federal Credit Union." On March 18, 1983, the City Commission passed M83-238 "authorizing and directing the City Manager to loan $50,000 to the South Florida Economic Development Corporation (SFEDC) at a rate of three percent (3%) for a five-year period, said funds to be taken from the 8th Year Community Development Fund." The SFEDC will use the loan to purchase equipment needed by the Dade -Model Cities Community Federal Credit Union to operate in an efficient and effective manner. Equipment purchases shall in- clude, but not be limited to, data processing and other modern information storage and retrieval equipment. The purpose of the Credit Union is to attract depositors so that risk loans and ven- ture capital pools can be established to assist small businesses located in the "Model Cities" target area. Approval of the attached resolution is recommended. CG:JB:ju Attachment 83-484, 0 CITY OF MIAMI, FLORIDA ECONOMIC DEVELOPMENT CONTRACT THIS AGREEMENT, entered into as of the day of 1983 by and between the City of Miami, a political subdivision of the State of Florida, hereinafter referred to as the CITY, and South Florida Economic Developmenf`j . Corporation, Inc., hereinafter referred to as SFEDC, a corporate body fully organized and existing by virtue of the laws of the State of Florida as a non-profit corporation, having its princi- pal office at 6007 Northwest 7th Avenue, Miami, Florida 33127. WITNESSETH: WHEREAS, the City Commission, on March 18, 1983, passed Motion 83-238, authorizing and directing the City Manager to loan. Fifty Thousand Dollars ($50,000) to South Florida Economic Development Corporation, Inc. at a rate of three percent (3%) for a five year period, said funds to be taken from the 8th year Community Development Fund; and WHEREAS, the funds are to provide a financial assistance program to the Dade -Model Cities Community Federal Credit Union; and WHEREAS, this "Credit Union" is limited in its potential field of membership to residents, employers, and employees of the Model Cities Target Area, defined by the following boundaries: North (Northwest 79th Street, East (►Jorthwest 2nd Avenue), South Morthwest 37th Avenue) ; and WHEREAS, the SFEDC has been granted a Credit Union Charter by the National Credit Union Administration (NCUA) to participate in its Community Federal Credit Union Program as a sponsoring agency; and WHEREAS, the SFEDC is desirous of obtaining a loan from the CITY to expand the Credit Union's ability to attract more member and non-member depositors; and 83-4841 WHEREAS, the CITY has identified federal funds available through the 8th year Community Development Grant to provide a Fifty Thousand Dollars ($50,000) capitalization loan to SFEDC to assist the Credit Union. NOW, THEREF40RE, the CITY and SFEDC agree as follows: I. CONTRACT PROVISIONS i :3 A. Upon execution of this Agreement, the CITY shall promptly grant a loan to SFEDC in the sum of Fifty Thousand Dollars ($50,000) with interest to accrue at the rate of three percent (3%) per annum. SFEDC shall dispurse the total amount received from the City to the Dade -Model Cities Community Federal Credit Union Program within three (3) days of receipt of same from CITY. B. The loan principal plus all accrued interest shall become due (mature) at the end of a five-year period commencing with the issuance of the loan. SFEDC, shall make final payment of the principal, plus all accrued interest, to the City, within thirty (30) days from the date of maturity. C. This loan is to be made by the CITY to SFEDC for the sole purpose of assisting the Dade -Model Cities Community Federal Credit Union in implementing a Community Federal Credit,,Union Program as defined by the 14CUA. Specifically, this loan shall be used to capitalize the credit union by creating risk loans and venture capital pools to assist small businesses in low-income target areas within the City of Miami. Any other use of these funds is expressly prohibited. D. At six month intervals, SFEDC shall provide to the CITY a progress report on the activities and accomplishments of the "Credit Union". This report shall be in the format specified by the CITY's Department of Economic Development. -2- 83-484 U 0 2. CITY AUTHORIZATION For the purpose of this contract, the City of Miami's Department of Economic Development will act on behalf of the CITY in the fiscal and programmatic monitoring and control of this Agreement and will serve as the CITY's liaison to the SFEDC. 3. NON-OELEGABILITY It is understood and agreed that the obligations undertaken':; by SFEDC pursuant to this Agreement shall not be delegated to any other person or firm unless the CITY shall first consent in writing to the performance of such services or any part thereof by another person or firm. 4. CONSTRUCTION OF AGREEMENT The parties hereto agree that this Agreement shall be construed and enforced according to the laws,. statutes and case laws of the State of Florida. 5. SUCCESSORS AND ASSIGNS This Agreement shall be binding upon the parties herein, their heirs, executors, legal representatives, successors,- and assigns. 6. CONFLICT OF INTEREST No official or employee of the SFEDC may be admitted directly or indirectly to any share or part of this contract or to any benefits to arise from the same nor own or acquire any personal interest in any property, contract or proposed contract which would conflict with or relate to the performance, their duties or responsibilities under this contract. If any such person presently or in the future acquires, owns or controls any such share, benefit, or personal interest, he shall immediately disclose such interest to the CITY and other appropriate agencies. Upon such disclosure, such person shall not continue his participation unless it is determined by the CITY that his participation is not contrary to public interest. The SFEDC will comply with all Federal, State and local conflict of interest laws and requirement. -3- 83-484 7. CONDITIONS ON WHICH PAYMENT• IS CONTINGENT The SFEDC warrants that no person or selling contractor, or other organization has been employed or retained to solicit or secure this Agreement upon an agreement or understanding for a commission, percentage, brokerage or contingent fee. For breach or viola ion of this warrant, the CITY shall have the right to anull this Contract without liability or, in its discretion, to•' deduct from the contract, or otherwise recover the full amount of such commission, percentage, brokerage or contingent fee, or to seek such other remedies as legally may be available. 8. BONDING AND INSURANCE The SFEDC shall maintain during the term of this Contract, insurance and bonds acceptable to the City as specified below: A. Insurance coverages should reflect sound business -- practices as determined by the City of Miami. B. Prior to the disbursement of funds to the SFEDC, the CITY shall receive assurance that all -persons handling funds received or disbursed under this Contract are covered by Fidelity Insurance in an amount consistent with sound fiscal practice. C. The SFEDC shall furnish certificates of insurance and bonding to the CITY prior to commencing any activity under the Contract. Said certificates shall clearly indicate that the SFEDC is in strict compliance with all provisions of this Article relating to insurance. 9. NON-DISCRIMINATION SFEDC agrees that there shall be no discrimination as to race, sex, color, creed, national origin or physical handicap in connection with any operations under this Agreement. 10. AMENDMENTS The CITY may, at its discretion, amend this Agreement to conform with changes in applicable City, County, State and Federal laws, directives, guidelines and objectives. No amendments to this Agreement shall be binding on either party -a- 83-484 unless in writing and signed by both parties. Such amendments shall be incorporated as a part of this Agreement upon review, approval and execution by the parties hereto. 11. TERMINATION CLAUSE The:CITY, by giving written notice specifying the effective date, may terminate this Agreement in whole or in part for cause:;` which shall include: (1) Failure, for any reason, of SFEDC to fulfill in a timely and proper manner its obligation under this Agreement or with any directives as may become applicable from time to time, (2) Submission by SFEDC to the CITY, of reports that are incorrect or incomplete in any material respect; and (3) Ineffective or improper use of funds provided under this Agree- ment. Further, it is mutually agreed that SFEDC shall immediate- ly, upon demand by the CITY, cease and terminate any and all activities including but not limited to divesting itself and any subsidiary(s) of specific assets and or projects and, that. upon demand of the CITY, any and all accumulations thereon shall be delivered to the CITY and become the sole property of the CITY. 12. SIGNATORIES The legal representative(s) of this Agreement for SFEDC shall be the President and Vice President of the Board of Directors or any other person the Board designates by resolution. Said resolution will be attached and made a part of this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in their names by their duly authorized officers and the corporate seals to be affixed hereto, all as of the day and year first above written. WITNESS our hands and seals on this day of , 1983. SOUTH FLORIDA ECONOMIC DEVELOPMENT CORPORATION, INC., a Florida ATTEST: corporation not -for -profit By: Secretary President -5- 83-484 CITY OF MIAMI, a municipal ATTEST: corporation of the State of Florida By: RALPH G. ONGIE HOWARD V. GARY City Clerk City Manager APPROVED AS TO FORM AND CORRECTNESS: JOSE R. GARCIA-PEDROSA City Attorney BB/wpc/pb/042 -6- 83-484