HomeMy WebLinkAboutItem #22 - Discussion ItemCITY C - rLORI04
oNTER•OFFICE %1EMORANDUM.
The Honorable Mayor and
Members of the City
Commission
Howard V. Gary
City Manager
March 17, 1983 ",,`
Update On Meeting With Miami
Capital Development, Inc.
Pursuant to your request, I conducted a meeting with City staff
and Messrs. del Cerro and Anderson from Miami Capital Development,
Inc. (MCDI) to discuss the contents of the Department of Economic
Development's memorandum to me dated January 26, 1983 on MCDI and
to resolve the various evaluation report findings.
I am pleased to report that we were able to reach agreement on the
resolution of the various items with the exception of three issues.
Specifically, we have agreed to take the following actions to
resolve our differences and to assure that MCDI is properly
directed:
1) The City will provide MCDI with a statement of MCDI's purpose
and priorities to assure that MCDI meets the needs of the
minority business community and most specifically, the Black
business community. Once this issue is resolved, I will
request that the Mayor convene a meeting with major bankers
in Miami to review MCDI's purpose and role in developing an
economic infra -structure for the minority business community
and to identify both the economic and social advantages of
supporting and investing in MCDI to promote economic development
on a community -wide basis.
2) MCDI agreed to restructure and reconstitute its Board of
Directors to assure proper representation and involvement
of the private sector in soliciting private capital investments
from the local business community.
3) MCDI agreed to convene Board of Directors meetings on a monthly
basis to assure that the Board sets policy for the corporation.
4) The City agreed to monitor MCDI on a quarterly basis as opposed
to a monthly basis but this change does not preclude on -site
visits by City staff or the City requesting information about
corporate activities which could be generated at any time.
5) MCDI agreed to revise its Work Program in accordance with
direction from the Department of Economic Development beginning
The Honorable Mayor and r1embers
of the City Commission
Page 2
with the new contract period (7/l/83-6/30/84) so that contrac-
tual compliance can be quantitatively and qualitatively evaluated.
6) MCDI agreed to hire qualified personnel in order to upgrade
the ability of its staff.
7) The City and MCDI will redraft the contract for the new
contract period to address each of the issues identified in
the Department of Economic Development's memorandum dated
January 26, 1983.
8) MCDI agreed to implement the 17 separate loan guidelines
recommended by the National Development Council (NDC).
9) MCDI agreed to establish different loan policies and procedures
for small and large loans.
10) MCDI agreed to release funds within thirty (30) days after
loans have been approved by the Loan Committee.
11) MCDI agreed to establish a Work -Out Committee for loans and
defaults.
12) MCDI agreed to redirect its marketing efforts to concentrate
on key business individuals in the economic development process.
13) MCDI agreed to change its Loan Portfolio Guidelines to assure
that approved loans generate significant numbers of jobs and
expand a substantial number of businesses.
14) MCDI agreed to expand its role to include a greater emphasis
on SBA loan programs and other federal programs and to establish
a production schedule to significantly increase the number of
loans to the business community.
There are three policy issues which we were not able to agree on
which I believe should be discussed at the March 18th Commission
meeting. Specifically, they are as follows:
1) The City should request that the by-laws of Miami Capital
Development, Inc. be changed to state that the City represen-
tatives will serve as ex-officio members of the Board of
Directors and of the Executive and Loan Committees as opposed
to voting members.
The Honorable Mayor and Members
of the City Commission
Page 3
2) The administrative staff should be under the direct supervision
of the City Manager or my designee.
3) The City should approve, prior to hiring, all appointments made
by MCDI to professional and managerial positions.
Once these remaining issues are resolved, I will direct City staff
to work with MCDI to finalize the recommended actions.