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Home My WebLink AboutR-81-02280 0 RESOLUTION NO. 8 1 2 8 A RESOLUTION AUTHORT7.ING THE CTTY MANAGER TO EXECUTE THE ATTACHED AMENDMENT TO Till: CONTRACT DATED JUNE. 25, 1980 BE"I*WEEN "fill: CITY OF MIAMI AND I`1TAMI CAPITAL DEVELOT"VIENT, INC. , 1414ERE.BY AN ADDITIONAL AMOUNT OF $50,000 IS ALLOCATED TO COVER ADDITIONAL, ADMINISTRATIVE COSTS TO BE TNCURRED IN THE IMPLE;MENTATION OF TIIE PRO- GRAM, WT TH FUNDS ALLOCATED THEREFOR FROM THE — COMMUNITY DEVELOPMENT BLOCK GRANT (6TH YEAR). wllEluAS, the City Commission is committed to economic development and trade and commerce growth; and WHEREAS, on .Lune 6, 1980, through Resolution No. 80-400, the Citv of Miami awarded Miami Capital Development, Inc. the amount of $200,000 for the purpose of implementing a financial assistance program on behalf of the City; and I�HERI:AS, there is the need to allocate an add itionTl S50,000 to cover additional administrative expenses to be incurred in the implementation of the program; NOW, THERI'A'ORE, L'1: IT It1:SOL\'ED BY THE COI,1I.11SSI0N OF THE CITY OF MIAMI , F1.OR11)A: Section 1. The City 'Ianaeer is herehv authorized to execute the attached Amendment to the contract dated June 25. 1980 between the Citv of Miami and Miami Capital Development, Inc., whereby an additional $50,000 is allocated to cover additional administrative costs to be incurred in the imple- meiltation of the program, with Rinds herehv allocated therefor from the Community Development Block Grant (6th Year). 1981. PASSED ANDADOi''fI:D this 18 day of MARCH , MAURICE A. FERRE "l A Y O R A'I"f 1i S AON(,I E, c11,y cI.l. -- A 1) 1) 110 V 1' 1) AS TO FO)RI.1 AND CORRECTNESS: ACT 1 NC C I TV AT fORNEY D0c`_ FOB ' f NT I!,VLIJEX NO AR 1 "8181 2; 8 ......... 0 if CITY Or MIAMI. 'LORIDA INTER -OFFICE TO: Richard L. Fosmoen City Manager FgoM Julio A. Castano, Director Department of Trade & Comm r e Development I,./ nAT` March 5, 1981 F'`E t Additional Allocation of $50,000 to Miami Capital Development, Inc. "EFLacNCES _ ,�:_C Sti RCS "It is recommended that the attached Resolution and Amendment be presented to the City Commission for approval of an additional allocation of $50,000 to Miami Capital Development, Inc. for additional administrative costs with funds from the Community Development Block Grant (6th year)." This additional $50,000 in funding will be utilized to provide for one additional Financial Analyst staff position and to cover administrative and legal costs related to the operation of Miami Citywide Development, Inc. (a subsidiary financing organization of Miami Capital Development, Inc.) which is an eligible entity under the existing Section 502 and the new Section 503 programs of the U.S. Small Business Administration. The funding will also be used to defray the costs of training for the professional staff of P4iami Capital Development, Inc. as required relative to the City of Miami's designation as a participant in the nationwide federally sponsored Neighbor- hood Business Revitalization Program. Please be advised that the allocation of an additional $50,000 to Miami Capital Development, Inc. from Sixth -Year CDBG funds has been discussed with Dena Spillman at a meeting on January 14, 1981 and approved by her. I am requesting that this item be placed on the City Commission Agenda at your earliest convenience. JAC/es -'? : I I Ij 1L� DOS,'_.' � li •' f � V. c ft AMENDMENT AMENDMENT of Agreement made and entered into this day of , 1981, by and between the CITY OF MIAMI, hereinafter referred to as the "CITY" and MIAMI CAPITAL DEVELOP- MENT, INC., hereinafter referred to as the "CONTRACTOR". WITNESSETH that the CITY has heretofore entered into an Agreement with the Contractor on June 25, 1980 for the develop- ment of a program for financial assistance and business devel- opment to small business in support of the CITY's economic de- velonment activities, and WHEREAS, this Agreement is in full force and effect; and WHEREAS, the parties are desirous of entering into this Amendment to provide additional funds in the amount of Fifty Thousand Dollars ($50,000) to cover additional administrative expenses to be incurred in the implementation of the program; VOW, THEREFORE, the parties hereto agree as follows: 1. The CITY shall reimburse the Contractor for the actual expenditures incurred in connection with additional administra- tive costs, as outlined on the attached Budget Estimate, Exhibit "A" and incorporated by reference herein, in an additional amount of Fifty Thousand Dollars ($50,000) to that amount previously allocated under the June 25, 1980 Agreement. 2. All other terms, conditions and understandings under the June 25, 1980 Agreement shall remain in full force and effect. WITNESS our hands and seals on this day of 1981. CITY OF MIAMI, a municipal core. ATTEST: of the State of Florida By RALPH G. ONGIE, CITY CLERK CITY MANAGER Its IdPPORTI\! FL'-'% r'j„ 81 • 0-28 L::{TTTT3TT A ,-lTA•1T C'AE'IT':1L bT:`.'T I,?F' tF:;3T, TNr'. Additir,naI P'., 'T `t for Achni ni ;tr,iti Fxi P-r;onnand B(,nofit;,�i�� Tra in in:r N(,i rhk c)rhr, d i?1i:: i nc F. i tat izatir,n Program - NatiUn i! [)eVn1nI}mt>nt cp'.1nC11 Acl ortisina Lri, a ? cm is of r`rG`(Iuc4 na a l)rn ur on ;t>rvi cc s f )r local di_ tri1)uti.n; F r e s s r a s- s rc.mOtlon i <'VC'nts �1J n <<Sup�GrTI�'E ► s oc� t��: L D F o LLoti MIAMI CAPTTAL DF.VF.LOPMF.NT, INC. BACKGROUND: Soon after the City created the Department of Trade & Commerce Development and potential new businessmen, local ones looking For expansion and investors began pouring through its doors, we began noticing an increasing demand for financial assistance, specially From small and medium sized businesses. In order to realistically consider which of the various financial as- sistance mechanisms possible would best suit Miami, we contracted the Nation- ally renowned firm of National Urban Development Services. Said firm came back to us with the recommendation of a non-profit corporation, intimately tied in to the City, which would be capable of: l) Assisting businesses in "packaging" loan requests to local banks, ?) Utilizing federal programs, such as SBA, to secure loan guarantees to those businesses which would qualify, and 3) attracting local and outside funds to capitalize itself for the purpose of offering direct loans. The mechanism recommended was basically the same being presently utilized by other major municipalities nationally. Miami Capital Development, Inc. was thus born. Tt has one client: The City of Miami. In its contractual arrangement, the City "refers" to MCDT clients requesting financial assistance. MCDT's Board of Directors include members of the City's Advisory Council. on Trade & Commerce Development (Bill Ellis, President; Roosevelt Thomas, Vice President; Juan del Cerro, Treasurer); City Development staff (Dena Spillman, .Tim Reid, .Julio Castano, Tony Crapp, Howard Gary) a City Commissioner, Armando Lacasa, and other community_ repre- sentatives from the City's target areas. The professional staff of MCDT includes persons who :are experienced in finance, real estate, planning and business development. ACCOMI'LISlRTATS : Miami Capital Development, Inc. began operating during the time of the civil disturbance in Miami, which proved to be a time of great need for they services which it ronders. During that time Miami Capital Development, Inc. processed disaster loan pacicago" totalling $850,`21.00. To date 'ii.ami Wpital Development, Inc. has packaged approximately 48 loans comprising of A mixture of local businesses such as Trade, Manufacturing and Service oriented. Of this mi="re, 23 are Trade related businesses, of these,13 loans have been :approved and 10 are in process. Manufacturing concerns ;amount to 8 with 1 loan approved :and 7 loans in process. The remaining: balance of 17 involves Service oriented firms with 11 leans ,approved :and ti loans in process. <<�tj ry _, (% TlVE FULU�J 81 f In total, during the first 8 months cif operation, Miami Capital Develop- ment, Inc. has surpassed its planned expectations considerably. It has received approval of 25 packages totallint; $7,235,098 and it has 23 loans in process totalling $20,685,250. These figures represent not only a substantial amount of money secured for our local businesses, it also represents 541 new jobs created and 309 jobs which have been preserved. The statistical indicators unconditionally speak to the value of the kinds of services which ?Miami Capital Development, Inc. provide to the City of ;Miami. Miami Capital Development, Inc. has applied for a fi4.8 million Revolving Loan Fund Grant from the Economic Development Administration. The primary objective of the Revolving Loan Fund Program will be to make loans to on -going small -minority businesses in the riot affected areas. Miami Citywide Development, Inc, which is a subsidiary of Miami Capital Development, Inc., has been certified as a Local Development Company (LDC) by the Small Business Administration (SBA). This certification as an LDC provides Miami Citywide Development, Inc. with the opportunity to make long term fixed asset financing loans under the 502, and 503 SBA programs. On September, 1980 the National Development Council of Washington, DC designated Miami a Neighborhood Business Revitalization (NBR) City. This is a joint program of the Department of Housing & Urban Development, the Department of Commerce and the Small Business Administration Program, and has as its goal the revitalization of the commercial sector through a comprehensive local approach. Miami Capital Development, Inc has been the agent of the City in implementing NBR objectives locally. In the 6 months the \BR Program has been operational in Miami, the Citv is being ranked second otit of 27 participating municipalities nationwide.