HomeMy WebLinkAboutR-82-0385Y,
RESOLUTION NO. 8 2- 3 8 5
A RESOLUTION GIVING NOTICE OF THE CITY
COMMISSION'S INTENT TO SUPPORT MARTIN
LUTHER KING ECONOMIC DEVELOPMENT CORPO-
RATION'S (MLKEDC) EFFORTS TO ATTAIN
FINANCIAL INDEPENDENCE; FURTHER GIVING
NOTICE OF THE CITY COMMISSIONS INTENT TO _
BECOME INVOLVED IN THE ACQUISITION OF
THE LINCOLN SQUARE OFFICE COMPLEX LOCATED
AT 7TH AVENUE AND 62ND STREET IN THE
MODEL CITY COMMUNITY.
WHEREAS, the Martin Luther King Economic Development
Corporation has entered into a contract with the City of
Miami Department of Trade and Commerce Development and with
the State of Florida Department of Veteran and Community
Affairs to coordinate economic development activities in the
Model City Area; and
WHEREAS, the revitalization of the Model City Edison
4 Center Business District is recommended in the Miami Compre-
hensive Neighborhood Plan 1976-1986; and
i
WHEREAS, the Department of Trade and Commerce Develop-
ment has encouraged MLKEDC to undertake as part of their
1982 work program, an economic development project within
the Edison Center business district that will enable them
to become financially independent from the City; and
WHEREAS, in the wake of the May, 1980 civil distur-
bances, the Lincoln Square project proposed is in general
conformance with the Economic Adjustment Plan for riot
affected areas;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE
CITY OF MIAMI, FLORIDA:
Section 1. The City Commission hereby gives notices
of its intent to support Martin Luther King Development
Corporation's (MLKEDC) efforts to attain financial indepen-
dence and, further, hereby gives notice of its intent to
become involved, with MLKEDC, in the acquisition of the Lin-
coln Square Office Complex located at 7th Avenue and 62nd
Street in the Model City Community.
CITY COMMISSION
MEETING OF
MAY 1 1 1982
" 82-3
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5
PASSED AND ADOPTED this llth day of May 1982.
Maurice ,A.. Ferre
MAURICE A. FERRE, Mayor
ATTEST: PREPARED AND APPROVED BY:
RALEF G. ONGIE 0 L E. MAXWELL
ity Clerk ", sistant City Attorney
APPROVED AS TO FORM AND CORRECTNESS:
i
GEORGE F. KNOX, JR.
City Attorney
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CITY OF MAMI. FLORIDA �•
55' (V-JTER-0FF!CF_ IAEMORANDUM
TO: Howard V. Gary "'Art May 5, 1982 FfLE:
City Manager
Martin Luther King Economic
Development Corp. Contract with
City for Equity Investment in
Purchase of Lincoln Square Project
J e W. McManus REFEPf N-�
cting Director For City Commission Meeting of
Planning Department rklc:csunr-May 11, 1982
It is recommended that the City Commis-
sion approve a resolution of intent to
subsequently authorize the Manager to
execute a contract between the City of
Miami and Martin Luther King Economic
Development Coproration (MLKEDC) re-
garding the City's Equity Investment of
$400,000 and Protit Sharing Plan in the
Lincoln Square Office Complex. The
Equity Investment will be appropriated
from Uth Year Community Development
Block Grant contingency funds pending
successful environmental review pur-
suant to HUD standards. The funds will
be utilized by MLKEDC to acquire and
take title to the Lincoln Square pro-
perty located in the Model City Com-
munity, assuming successful contract
negotiations.
MLKEDC has a contract with the City of Miami, Department of Trade
and Commerce Development and a contract with the State of Florida
Department of Veteran and Community Affairs to coordinate economic
development activities within the Model City community. The De-
partment of Trade and Commerce Development has strongly recommended
to MLKEDC that their 1982 Business Plan include the identification
of an income producing economic development project that will enable
this organization to become financially self sufficient. The pro-
ject identified by MLKEDC is the acquisition of the Lincoln Square
Office Complex of some 31,000 square feet of leasable space lo-
cated on the southwest corner of the NW 7th Avenue and NW 62nd
Street intersection.
Under the management of the present owners the property is operat-
ing significantly below its potential. The Planning Department
has conducted a detailed existing property investment analysis
which indicates that, based on certain conditions to be stipu-
lated in the agreement, the acquisition of this office complex
can be a financially feasible operation.
82 -385
Howard V. Gary Page 2 May 5, 1982
The City will share in the profits of this operation (without
sharing title to the property) as compensation for the equity in-
vestment made on behalf of MLKEDC. For each and every dollar of
cash flow from operations before taxes and depreciation earned in
excess of $50,000, 25� will revert back to the City. Assuming the
City authorizes the resale of Lincoln Square property, the City
shall receive 100% of the first $400,000 of after tax cash flow
from reversion only and 250 of any amount of said cash flow earned
in excess of $400,000.
This project is in general conformance with the Economic Adjustment
Plan for Civil Disturbance Areas and in conformance with the Miami _
Comprehensive Neighborhood Plan for the Edison Center Business Dis-
trict.
It is requrested that this resolution be scheduled for the City
Commission Meeting of May 11, 1982.
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'.82-385