HomeMy WebLinkAboutR-80-0347lk
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RESOLUTION NO. H O- 3 4 7
A RESOLUTION AUTHORIZING THE. CITY MANAGER.
TO ENTER INTO AN AGREEMENT WITH THE MIAMI
CAPITAL DEVELOPMENT INC. FOR THE PURPOSE
OF INSTITUTIONALIZINC, A FINANCIAL ASSISTANCE
PROGRAM ON BEHALF OF THE CITY OF MIAMI WITH
GENERAL FUNDS IN THE AMOUNT OF $38,770
APPROPRIATED FROM THE BUDGET OF THE DEPART-
MENT OF TRADE & COMMERCE DEVELOPMENT
WHEREAS, the City of Miami Commission is commited to
economic development and trade and commerce growth; and
WHEREAS, prior to developing economic development
policies, there was a need to conduct an in-depth evaluation
of the financial services needs in the City; and
WHEREAS, on May 22, 1979, through Resolution No. 79-325,
the City of Miami, through the Department of Trade & Commerce
Development, awarded a contract to the firm National. Urban
Development Services Corporation to prepare a Community Economic
Development Demonstration Project for the City of Miami; and
WHEREAS, said report has been reviewed and endorsed by
the City's Advisory Council on Trade and Commerce Development; and
WHEREAS, said report was accepted and endorsed by the
City Commission through Resolution No. 80-52; and " , ;^'r tiy�CX
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IT tM NO.
WHEREAS, the City Commission has approved a 6th Year
Community Development Budget which includes funds for carrying
out the financial services recommended in said report, beginning
on July 1, 1980, and
WHEREAS, there is a need, prior to commencement of opera-
tions, to set up office space, incur capital expenditures, train
staff and organize this Financial Assistance Program.
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE
CITY OF MIAMI, FLORIDA:
CITY COMMISSION
MEETING OF
MAY 311'J30
Moumon na..._
'7
Section 1. The City Manager is hereby authorized to enter into
an agreement with the Miami Capital Development Inc. for the purpose
of institutionalizing a financial assistance program on behalf of the
City of Miami with general funds in the amount of 538,770 appropriated
from the budget of the Department of Trade & Commerce Development.
PASSED AND ADOPTED THIS 8TH day of MAY , 1980.
MAURICE A. FERRE
MAURICE A.. FERRE, MAYOR
EST:
RAILPIT G. ONGIE, CITY CLE
P PARED AND AP ROVED BY:
if MICHAEL HAYG , ASSISTANT CITY ATTORN
APPBWMV AS TO..W•9aUL AND CORRECTNESS:
. KNOX, JR.,% CITY A
u J U.P PP. r `9,/C
DJ��!
80-347
14
Joseph R. Grassie
City Manager
Julio A. Castano, Director
Department of Trade & Comme e
Development
April 28, 1980
City of Miami/Miami Capital
Development Inc. Agreement
" It is recommended that the attached
agreement be executed between the City
of Miami and Miami Capital Development
rDr)r-? T 11V Inc. The Miami Capital Development Inc.
proposes to institutionalize a financial
{-fir Il_..i"S assistance program to expand the City's
''�(`J� business base and promote economic de-
velopment projects."
The Miami Capital Development Inc.,is a private, not -for -profit corpora-
tion organized under Florida Statutes and would provide business develop-
ment and financial packaging services exclusively to the City of Miami
under a delegate agency contract.
The reason for an immediate start-up is that Miami Capital Development
Inc. should be operating by July 1, the date set for the neighborhood
groups to begin their economic development contracts. It is understood
that Nliami Capital Development Inc. will utilize the proceeds from these
contracts as follows:
Rent (1st month security & deposit) 5,630
Professional Services (Legal, Accounting, Training) 15,000
Furniture 10,640
Equipment (Typewriters, Calulators) 6,000
Telephone (Installation & deposit) 1,500
TOTAL 538,770
The Miami Capital Development Inc., proposes to act as principal tool
to integrate business development efforts and provide the basis for a
meaningful partnership between the public and private sector, in support
of the City's citywide and neighborhood economic development activities.
The principal. objective of the corporation is the facilitation of busi-
ness development in the City of Miami through the provision of financial
assistance to entrepi-eneurs.
The basic functions of the corporation will he to identify and develop
business opportunities, formulate a program plan based uz)on identified
opportunities, package business deals, work with merchants; and neigh-
borhoods development organizations, and develop financial z)roorams and
mechanisms to support business development.
JAC:vh
80-347
MEMORANDUM OF AGREEMENT
The City of Miami and toe Miami Capital Development Inc., have
entered this Memorandum of Agreement this day of ,
1980, as a basis of understanding to institutionalize a financial
assistance program on behalf of the City of Miami.
Now, therefore, the City of Miami and the Miami Capital Development
Inc., do mutually agree as follows:
I. DEFINITIONS
CITY--------------------------- City of Miami
MCDI--------------------------- kliami Capital Development Inc.
II. SCOPE OF SERVICES
It is understood that the MCDI will utilize the proceeds of
these contract for the following:
A. Execute lease on space. „SU PP _ ` THE
B. Finance initial operating expenses and ,' `^��J1rin,.;' ' 'r
capital expenditures. Q�� v�..
III. MAXIMUM COMPENSATION
For the expenditures described under SECTION II of this AGREEMENT,
MCDI may be reimbursed for no more than $38,770.
IV. METHOD OF PAYMENT
Requests for payment from MCDI for the project shall be transmitted
to the Department of Trade & Commerce Development and shall be
accompanied by sufficient supporting documentation.
V. TIME OF PERFORMANCE
This AGREEMENT shall bu deemed effective as of May 9, 1980. It
will be deemed completed by June 30, 1980.
VI. PERFORMANCE REQUIREMENTS
Responsibility for letting contract(s) and affirmative action re-
quirements will be assumed by the MCDI. Any and all agreements
entered into by the MCDI will adhere to all federal requirements.
Materials and documents produced as a result of this AGREEMENT
become the property of the City of Miami.
80-347
r
VII. ASSIGNABILITY
MCDI agrees to give notification, in writing, to the CITY
of any proposed consultant contracts. Any work or services
subcontracted shall be subject to each provision of this
AGREEMENT. None of the work or services shall be subcon-
tracted or reimbursed without the prior written approval of
the CITY. MCDI shall insure that consultant rates of com-
pensation do not exceed the rates specified in 570.200 (g)
(3) of the code of federal regulations.
VIII. REPORTING REQUIREMENTS
MCDI shall keep Department of Trade & Commerce Development
informed of their activities.
IX. AUDIT AND INSPECTIONS
At any time during normal business hours, records shall be
made available to the City Internal Audit or authorized re-
presentative, and representatives of the Federal Government
to audit, examine and make audits of all contracts, invoices,
materials, payrolls, records of personnel, conditions of
employment and other data relating to all matter covered by this
AGREEMENT. Said documents and records shall be maintained by
the agency not less than three (3) ears after the termination
Of this AGREEMENT.
X. AMENDMENTS
The CITY and the MCDI may, at their discretion, amend this
AGREEMENT at any time to conform with any contingencies which
may require such amendment. Amendments, if required, shall be
incorporated in writing to this AGREEMENT upon review, approval
and execution by the parties hereto.
XI. TERMINATION
This Memorandum of Agreement may be terminated by either party
at any time upon submission of thirty (30) days written notice
if there is:
1. ineffective or improper use of funds;
2. failure to comply with the terms of contract;
e 40
3. submittal of incorrect or incomplete reports; and
4. occasion wherein the implementation of the contract
is rendered impossible or unfeasible.
X11. CONFLICT OF INTEREST
The MCDI covenants that no person under its employ who presently
exercises any functions or responsibilities in connection with
funded activities has any personal financial interest, direct
4
or indirect, in this AGREEMENT. The Board further covenants
that, in the performance of this AGREI:fIrNT, no person having i
f
such conflicting interest shall be employed. Any such interest,
on the part of the MCDI or its employees, must be disclosed in
writing to the CITY. The MCDI, in the performance of this AGREE-
MENT, shall be subject to the more restrictive law and/or guide-
lines regarding conflict of interest promulgated by Federal, State
or local government.
XIII.
ASSURANCES AND CERTIFICATIONS
1. No person in the United States shall, on the grounds of
race, color, creed, national origin, sex, marital status or
physical handicap, be excluded from participation, in, be denied
the benefits of, or be otherwise subjected to discriminntion
under any program or activity for which the MCDI receives funds
rT1under
this AGREEMENT, and it will immediately take any measures
=
necessary to correct any such discrimination and to ensure that
such discrimination cannot occur in the future.
2. The MDCI will establish safeguards to prohibit employees
from using their positions for a purpose that is, or gives
the appearance of being motivated by desire for private gain
for themselves or others, particularly those with whom they
have family, business or other ties.
With specific reference to this AGREEMENT:
1. MCDI will comply with Title VI of the Civil Rights Act
of 1974, Title VIII of the Civil Rights Act of 1968, and
Executive Orders 11246 and 11046, and Section 3 of the Housing
and Urban Development Act of 1968, as amended and incorporated
herein by reference.
1
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2. MCDI will comply with Title VI of the Hatch Act as
amended January 1, 1975, which limits the political activities
of employees and uncorporated herein by reference.
3. MCDI will comply with the Anti -Kickback Act, Title
XVIII, U.S.C. Section 874, and provisions of the Federal Labor
Standards, Title XXIX, and incorporated herein by reference.
4. MCDI will comply with the regulations and requirements
of the Office of Management and Budget Circular A-1021 "Uniform
Administrative Requirements for Grants -in -Aid to State and Local
Governments" and Federal Management Circular 74-4, "Principles
for Determining Costs Applicable to Grants and Contracts with
State and Local Governments."
XIV. SIGNATORIES
IN WITNESS WHERLOF the City of Miami and the Miami Capital
Development Inc. have entered into this AGREEMENT as of the date
first above written.
ATTEST:
CITY CLERK
WITNESS
WITNESS
CITY OF MIAMI, a municipal
corporation of the State
of Florida
By•
CITY MANAGER
APPROVED AS TO FORM AND CORRECTNESS:
GEORGE F. K27OX, JR., CITY ATTORNEY
MIAMI CAPITAL DEVELOPMENT INC.
( -r .-
RD LL 0W77
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(A 00RP0RA'-7 CN t:^ i FOR Pr,0FIT)
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The undersigned sutscribers to these articles of Incorporation, natural
persons competent to contract, hereby form a corporation not for profit under
the laws of the State of Florida.
ARTICLE I
NAME
The name of this corporation is MIAMI CAPITAL DEVELOPMENT 2�
ARTICLE II
PURPOSES F%..) LL0��',
(A) This corporation is organized exclusively for charitable and educa-
tional purposes which include promotion of community welfare by: (i) lessen-
ing of neighborhood tensions, (ii) lessening discrimination and (iii) combating
community deterioration by promoting and fostering the economic development
of the City of Miami. In furtherance of there purposes the corporation
intends to engage in the following types of activities:
(1) Making investments in, and loans to, corporate or other
business entities with monies which are directly or indirectly
attributable to funds provided by the City of Miami and other funds
provided by the United States, the State of Florida or any agency
or instrumentality of any of the foregoing, with funds generated by
the repayment of the principal amount and accrued interest thereon
of any loans made with such funds, or any dividends or other
distributions paid to the corporation by any entity in whicn the
corporation has an ownership interest, and with any funds con-
tributed to the corporation by any individual or entity;
LAW Cry •t Or PAWL .��':'� /. Bt'!:T
(2) Prnvid;n! essistance fcr ind , i..._ ='ugs anc! or;ani-
` ..ap♦ nni trons in pla. ,C anV
projects; •
(s) Providing professional assistance and ccunseling of all
types, including business planning for individuals, organizations
and their members where such counseling rr,ay be necessary for the
economic development of low income or low employment areas;
(4) Acting as an intermediary, where appropriate, between
various economic development programs and between organizations
and individuals which may be involved in any, c-;.acity in economic
development;
(5) Acquiring charitable contributions and assistance capital
including seed money, which may be necessary for successful
economic development projects-; and
(6) Engaging in such other activities as the Board of
Directors shall from time to time approve, provided that in no event
shall this corporation be operated for purposes other than those
permitted under Section SC1(c)(3) of the Internal Revenue Code of
1954 or corresponding sections of .any prior or future law.
(B) The corporation shall have the power, either directly or indirectly,
either alone or in conjunction or cooperation with others, to do any and all
lawful
acts and things and
to engage in any
and
all lawful
activities which
may be
necessary, useful,
suitable, desirable
or proper
for
the furtherance,
accomplishment, fostering or attainment of any or all of the purposes for
which the corporation is organized, and to aid or assist other organizations
whose activities are such as to further accomplish, foster or attain any of
such purposes. Such activities shall include, but shall not be limited to,
acceptance of gifts, grants, devises or bequests of funds, or any other
property from any public or other governmental body and any private person,
including but, not limited to, private and public foundations, corporations and
individuals.
(C) Notwithstanding anything herein to the contrary, this corporation
may exercise any and all, but not other, powers as are in furtherance of the
exempt purposes of organizations set forth in Section 501(c)(3) of the
Internal Revenue Code of 1954 and its regulations as the. same now exist, or
as they may be nere-after amended from time to time.
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Lavr OFFICES CF P&W6. Lan_'f
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(C) No part of the income cr principa; c* this corpsratio^ snail inure to
the benefit of or De distributed t_ any member, airectcr or officer of the
corporation or any other privgte individual in such a fpshion cs tc constitute
an application of funds not within the purpose of exempt orcanizations
described ' in Section 501(c)(3) of the Internal Revenue Code of 1954. How-
ever, reimbursement for expenditures or the payment of reasonatle compensa-
tion for services rendered shall, not be deemed to be a distribution of income
or principal.
(E) in the event of the complete or partial liquidation or dissolution of
the corporation, whether voluntary or involuntary, no member, director or
officer shall be entitled to any distribution or division of the corporation's
property or its proceeds, and the balance of all money and other property
received by the corporation from any source shall, after the payment of all
debts and obligations of the corporation in accordance with Chapter 617 of the
Florida Statutes, be distributed and paid over by the Board of Directors to
the City of Miami for public purposes.
(F) The corporation does not contemplate receiving any pecuniary gain
or profit, incidental or otherwise.
(G) No substantial part of the activities of the corporation shall be the
carrying on of propaganda or otherwise attempting to influence legislation,
and the corporation shall not participate in, or intervene in, directly or
indirectly, (including the publishing or distribution of statements) any politi-
cal campaign on behalf of or in eppesition to any candidate for public office.
ARTICLE III
MEMBERSHIP
�
CCU,M
�J
OLLow,y
Those persons elected to the Board of Directors shall be the members of
this corporation land shall remain as members for the term of their positions
as Directors.
ARTICLE IV
TERM OF EXISTENCE
This corporation is to exist perpetually.
LAN orrlct& er GAOL. LANPV !. BCiLCY '
The initial address of the principal office of the corporation in the State
of Floridr is: Penthouse, Peninsula Feaeral Building, 200 Southeast First
Street, Miami, Florida 3-3131, and the . initial registered agent is Peninsula
Registered Agents, Inc.
The Board of Directors may from time to time move the principal office to
any other address in the City of Miami.
ARTICLE VI
• SUBSCRIBERS
The dames and addresses of the persons signing these Articles of Incor-
poration as subscribers are:
Burton A. Landy 200 S.E. 1st Street
Helena Kempner Kobrin
Robert G. Beatty
Miami, Florida 33131
200 S.E. 1st Street
Miami, Florida 33131
200 S.E. 1st Street
Miami, Florida 33131
ARTICLE VII
MANAGEMENT
The affairs of the corporation will be managed by its Board of Directors
and by its officers pursuant to the authority given them by the Board of
Directors. The officers of the corporation shall be a President, Vice Presi-
dent, Secretary and Treasurer. Any two or more offices may be held by the
same person except the offices of President and Secretary.
— , ,
ARTICLE VIII
INITIAL OFFICERS �
4 '
The following named persons shall serve as officers of this corporation
for a period of one (1) year or until their successors are appointed:
{
W.R. Ellis Oresicent
• Roosevelt Thomas Vice-Oresident
Juar, gel Cerro. Treasurer
Director of the City of Secretary
Miami Department of Trade
& Commerce Development
AFTICLE IX
BOARD OF DIRECTORS
(A) The Board of Directors snail have general management of the prop-
erty, business affairs and concerns of the Corporation and shall consist of
not less than three (3) and not more than twernty-three (23) directors, the
exact number tG be fixed by the Board.
(B) The composition of the Board of Directors small be as follows:
9 Directors rsh::ll be chosen f;-orn the private business
and financial community;
E Directors shall be chosen from the City of Miami's
community development target areas (one from each);
and
6 Directors shall be representatives of the City of
Miami: a member of the Miami City Commission, a
representative of the ' City Manager's office, the
Director of the Department of Planning, the Director
of the Department of Trade and Commerce Develop-
ment, the Director of the Business Development
Division of the Department of Trade and Commerce
Development, and the Director of the Department of
Community Development.
(C) The Board shall elect an Executive Committee of not less than
seven (7) to carry on the affairs of the corporation on a day-to-day basis.
The officers of the corporation shall serve on the Executive Committee. The
remaining three members shall be elected: one from the private and financial
community group of Directors, one from the community development target
area group of Qirectors, and one from the City of Miami representatives
serving on the Board of Directors.
(D) The initial Board of Directors shall consist of four (4) members.
The names and post office addresses of the members of the initial Board of
Directors, who shall serve for a period of two (2) years, are:
"SLIPPORTIVC'
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LL..�
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_.,:. rrrlcrs or r-AUL LANL'v & OCILCT
FrowT.lf,t r pr1.'N**JI• rr^rRAL E./11''-I.' .'�C 5 C r1FriT !t":.CUT.MIi►wi_rLOG1D• 32131 0 TrL(3e513l.t .4L 00
N
Y/�i�Q�•O�r ✓Er3r.�1C^1 �{ TiOoe
Sri;e 901
W. R. Ellis
P.O. Sox 529900
1kami, Florida 33152
Roosevelt Thomas
P.O. Box 248106
Coral Gables, Fiorica 33124
Juan Del Cerro
7210 NAN', 46th Street
Miami, Florida 33166
ARTICLE X
ELECTION OF OFFICERS AND DIRECTORS
The Officers and Directors of the Corporation shall be elected at the
annual meeting by the existing Board of Directors according to the proce-
dures set forth in the By -Laws.
ARTICLE XI
BY-LAWS
The
By -Laws of
the corporation may
be
made, altered
or rescinded by
the vote
of two-thirds
(2/3) of the members
of
the Board of
Directors.
ARTICLE XII
AMENDViENTS
Amendments to the Articles of Incorporation may be proposed by any
Directors or Officers of the Corporation and may be adopted by the vote of
two-thirds (2/3) Hof the members of the Board of Directors. Upon an amend-
ment to the Articles of Incorporation being adopter, the amendment shall be
filed with the Department of State in the manner providee by law.
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J.aw Ornt.�: Or P&WL. LAhCT 6 e[1._?1
PChTaOUb[,Ff►..r4_i/i• t e:.LCir,: iC•L 5 C r.r.5T Q1QrrT,Mi,69,1. 3131 - TEL t3G613_e-9300
Ifs WITNESS WHERE0F, the under:izr-ed raver subscribed to these
Articles of Incorporation at Miami, Dade county, Florida, this day of
April , 1980.
0
STATE OF FLORIDA )
) SS
COUNTY OF DADE )
Fi���clvF, r,�ci NER K05RIN
BEFORE MiE, a Notary Public authorized to take acknowledgments in the
State and County set forth above, personally appeared BURTON A. LANDY,
known to me and known by me to be the person who executed the foregoing
Articles of Incorporation, and he acknowledged before me that he executed
these Articles of Incorporation.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal, in the State and County aforesaid, this day of April,
1980.
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STATE OF FLORIDA )
) SS
COUNTY OF DADE )
NGTARt /PUBLIC
State of/Florida at Large
My Commission Expires:
67 A--f rr-: X PATt Of Fick" At W&3
wins FU. it tssi -
ti TW GU UA 114. L#CLtwVT W
BEFORE ME, a Notary Public authorized to take acknowledgments in the
State and County set forth above, personally appeared HELENA KEMPNER
KOB R I N1, known to me and known by me to be the person who executed the
foregoing Articles of incorporation, and he acknowledged before me that he
executed these Articles of Incorporation.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal, in the State and County aforesaid, this St>- day of April,
1980.
NOTARY PUBLIC
State of Florida at Large
My Commission Expires:
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' STATE OF FLORIDA )
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COLIN I N• OF DARE
WE a Nc ar F ', a tc «.e ckn-twietnments in the
E_FvF:lr .., t y IiG iC autRor;ze.. .a a. .
State ane County set fortn aoove
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ersonal;y a ,�=r-:T G. B .�.TTY
p p,,e�:rec hC. ,
kno►,•n to me and knco n by- me
to to the person wno :he foregoing
Articles of Incorporation, and
he acknowleaned before me that he executed ■
these Articles of Incorporation.
IN VOTNESS % HEFEOF, I
have hereunto set my hand and affixed my
officiaJ seal, in the State and
County aforesaid, this 8day of
198U.
NOTARY /PUBLIC
State of s-iorida at Large
.My Commission Expires:
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�Sed'S:r :•{::I C:#1,K Mai . 44G;Za,+G>�
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MIAMI CAoIT41 r)FVFI.^at',. T
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Pursuant to Chapter 607.034 of the Florida Statutes, the following is
submitted, in compliance with said Act:
That MIAMI C:.PITAL DEVELOPMENT II:C. desiring to
organize under the laws of the State of Florida with its principal toffj;: , as
a�
indicated in the Articles of Incorporation, at the City of Miami i;• 'County of
Dade, State of -Florida, has named Peninsula Registered Agents,
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at 200 S.E. 1st Street, City of Miami, County of Dade, State of ?-rcrica,
its agent to accept service of process within this State. y
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A C K N 0 W L E D G ME N T
Having been named to accr'rt service of process. for the above stated
corporation, at place dt.:;i;tr•,ated in this- Certificate, I here -by agree to act in
this capacity and 8grr•r_- to comply with the provision of said Act relative to
keeping open said office.
Dated this Sth dry cf t.pril, 1980.
_ -tc rOd '^.: s, Inc.
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"SUPPORTIVE
DOCUMENTS
FOLLOW"
C C
March 10, 1980
•
Mr. Julio A. Castano
Director
Department of Trade & Commerce
Development
100 N. Biscayne Boulevard
Suite 901
Miami, Florida 33132
Dear Mr. Castano:
G
Enclosed you will find the proposal from Miami Capital De-elopment
Corporation to provide the City of Miami, professional services
to implement a financial assistance program to e,.-oand the City's
business base and promote development projects.
The Miami Capital Development Corporation is requesting the surf
of $200,000 for the first year of operation, July 1, 1980 to
June 30, 1981.
The requested S200,000 will be utilized for persr ei, coerating
expenses and capital expenditures. The sta_f of 'tiami Capital De-
velopment Corporation will be comprised, when fuliv staffed, of one
Director, four Financial Analysts and two Secretaries.
We are also requesting the sum of S50,000 for a orepar.atory peric'e,
in order to meet the projected costs of establishinq the adrii.nis-
trative structure to implement a citywide financial assistance pro-
gram.
The requested $50,000 will be utilized to 1) Finance organizational
legal costs, 2) hire a director and two support staffpersor.s, 3)
finance initial operating expenses and capital expenditures for
office equipment and furniture, and 4) provide training for the Bout:
of Directors and staff of the Corporation.
If you have any questions, please do not hesitate to call. on us.
Sincerely,
�LI SI C T1`,T, DE��;: CP,tiIEN'i' COkPOR��'�ION
an del Cerro
Treasurer
JCsmf
Enclosure
1P
PROPOSAL TO PROVIDE PROFESSIONAL SERVICES
TO THE CITY OF MIAMI
DO;" U
FO L LUVV "
Miami Capital Development Corporation
March, 1980
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"SUPPORTIVE
DOCU��" _ !",
1. PROPOSED WORT: PROGRAM FOLLOW„
The Miami Capital Development Corporation proposes to
provide to the City of Miami, professional services to
implement a financial assistance program to expand the
City's business base and promote economic development
projects. The Miami Capital Development Corporation is
a private, not -for -profit corporation organized under
Florida Statutes and would provide business development
and financial packagina services exclusively to the City
of Miami under a delegate agency contract.
The Miami Capital Development Corporation proposes to act
as a principal tool to intec_rate business development efforts
and provide the basis for a meaningful partnership between
the public and private sectors in support of the City's
citywide and neighborhood economic development activities.
The principal objective of the corporation is the facilita-
tion of business development in the City of Miami through
the provision of financial assistance to entrepreneurs.
The basic functions of the corporation will be to identify
and develop business opportunities, formulate a program plan
based upon identified opportunities, package business deals,
work with merchants and neighborhoods development organiza-
tions, and develop financial programs and mechanisms to
support business de ,elcj;-_ent. In short, the corporation will
be a flexible financing mechanism with professional business
development planning an:: packaQinc staff capability. The
corporation will implement a financial assistance prograr,,
designed to encourage b,.:siness and eccnor.,ic development pro-
jects within the City o` •;iami by securing a greater utiliza-
tion and coordination of existing financing programs (e.g.
SBA 502 Loan Program, EDA direct loans and loan guarantees,
SBA 301 (d) SBIC,'IN,ESBIC Program, etc.) as well as by develop-
ing innovative and creative financing techniques designed to
generate a maximum degree of leverage with local private
sector resources.
The Miami Capital Development Corporation is managed by a
Board of Directors (not to exceed 23 members) comprised of
nine members from Miami's business and financial community,
eight members from City of miami's Community Development
Target Areas and six representatives of the City of Miami.
Through wholly owned suLsidiary organization, Miami
Citywide Development Corporation, the Miami Capital Develop-
ment Corporation will function as an elegible SBA 502 Local
Development Company. The Miami Citywide Development Corpora-
tion will be governed by a Board of Directors of at least
25 members comprised of the seven -member Executive Committee
of Miami Capital Development Corporation, and the remaining
18 will be selected by these seven members.
"'8®- 2 4 7
.
Doc
II. PROGRAM OBJECTIVES v L 0 0r7!
The objectives of the Miami Capital Development Corporation
are:
In Broad Community Terms
1. To identify, develop and maximize market and business
opportunities which create jobs, entrepreneurial opportu-
nities, income and tax revenue for the City.
2. To reverse economic decay and deterioraLtion in needy areas
through business development and neighborhood revitaliza-
tion programs.
3. To create the economic and physical environment conducive
to private investment in the City of Miami.
In Specific Economic and Business Development Terms
1. To create new businesses and expand existing businesses
with the City of Miami by providing the necessary business
packaging, financial planning and financial mechanisms.
2. To revitalize neighborhood commercial areas within Miami
through a program which emphasizes working with merchants
to improve store mix, store quality, and the physical
appearance of neighborhood commercial areas. The Miami
Capital Development Corporation will support such programs
with financial assistance to the merchants group and to
individual businesses.
3. To create a balanced economic and business development
program plan which forms the basis for determining the
scope and nature of the corporation's business and finan-
cial assistance programs.
4. To increase economic opportunities for minority and dis-
advantaged individuals in Miami by assisting individual
minority businesses, operating revitalization programs in
minority neighborhoods, and by encouraging various forms
of minority participation in larger development projects.
III. PROGRAM PLAN/MIX
The program plan and mix proposed by MCDC reflects the basic
assumptions underlying the approach to the project, the stated
objectives, criteria and strategy of the organization, and the
opportunity identification and economic planning process. The
projects have been prioritized by kind, size, and geographic
location. With respect to kind, they contain minority businesses,
small and medium-sized enterprises and identify opportunities
for broader participation in larger projects. They represent
efforts to retain and expand businesses, assist in developing
international trade, downtown projects, and will emphasize neigh-
borhood commercial revitalization activities.
The actual figures by kind of project shown in the sample
break -down as follows:
Kind
Minority
Neighborhood
International
Downtown/Participation
Retention/Expansion
Number
18
9
2
Total 40*
IL;' r c r•�...
!
* Total adds up to more than 32 packages due to double
counting.
As to size of projects, the business financings break -down
as follows:
Up to $100,000 18 $ 900,000
$100,000 to $250,000 9 1,350,000
Over $250,000 5 2,000,000
Total 32 $4,250,000
Geographically the projects have been identified as either
downtown or neighborhood, or in some cases special areas
such as garment center, waterfront, etc.
The program plan and mix has been predicated on a maximization
of opportunities, federal resources, local resources, leveraging
of private investment and involvement of both the private and
community sectors. Each of these elements will make an impor-
tant contribution to the productivity of the organization and
the character, quality and direction of its activities and public
image.
IV. BUDGET REQUEST --PREPARATORY BUDGET
The Miami Capital. Development Corporation is requesting the
sum of $50,000 in order to meet the projected costs of esta-
blishing the administrative structure to implement a citywide
financial assistance program. Attached is a preparatory
budget which delineates the projected expenditures.
The requested $50,000 will be utilized to 1) finance organiza-
tional legal costs, 2) hire a director and two support staff -
persons, 3) finance initial operating expenses and capital
expenditures for office equipment and furniture, and 4) provide
training for the Board of Directors and staff of the Corporation.
«'. RTIV t.
SUP
DOr' j �. r L NT '-%
Zvi
FOLLOW"
MIAMI CAPITAL DEVELOPMENT CORPORATION
PREPARATORY BUDGET
PERSONNEL
TOTAL COST
(1) Director
$ 7,500
(1) Financial Analyst
4,250
(1) Secretary
3,000
SUB -TOTAL PERSONNEL
$14,750
200 Fringe
2,950
TOTAL PERSONNEL
$17,700
OPERATING EXPENSES
Rent
$ 5,634
Office Supplies
2,000
Rental Equipment
2,000
Transportation Expense
500
Trave & Per Diem
1,500
Professional Servs. (legal, acctg., etc.)6,000
Parkins
250
Books, Publications & Memberships
200
Post ac;(
352
Telephone & Telegraph
4,000
Insurance
1,600
Printinc & Binding
1,500
Miscellaneous
500
TOTAL OPERATING EXPENSES
$26,036
CAPITAL EXPENDITURES
Office Equipment and Furniture
$ 60264
Purchase
TOTAL CAPITAL EXPENDITURES
$ 6,264
TOTAL BUDGET
$50,000
JH:zd:4/8/80
f
V. BUDGET REQUEST --FIRST YEAR
The Miami Capital Development Corporation is requesting the
sum of $200,000 for the first year of operation.
The requested $200,000 will be utilized for personnel, operating
expenses and capital expenditures. The staff of Miami Capital
Development Corporation will be comprised, when fully staffed,
of one Director, four financial Analysts and two Secretaries.
VI. AGENCY ZATION, AL STRU -17URE
Enclosed are the Articles c: Incorporation of Miami Capital
Development Corporation and Miami Citywide Development Corpo-
ration.
``s
MIAMI DEVELOPMENT CORPORATION
BUDGET
PERSONNEL TOTAL COST
(1) Director $ 30,000
(4) Financial Analyst 70,000
(2) Secretaries 22,500
SUB -TOTAL PERSONNEL $122,500
20% Fringe $ 24,500
TOTAL PERSONNEL
OPERATING EXPENSES
Rent
$ 22,536
Office Supplies
2,000
Rental Equipment
5,000
Transportation Expense
1,500
Travel 6 Per Diem
2,464
Professional Servs. (legal, acctg.,
etc.) 3,000
Parking
2,500
Books, Publications and Memberships
500
Postage
500
Telephone & Telegraph
3,000
Insurance
2,000
Printing & Binding
11000
Miscellaneous
1,000
TOTAL OPERATING EXPENSES
CAPTTi-.L EXPENDITURES
Office Equipment & Furniture
$ 6,000
Purchase
TOTAL CAPITAL EXPENDITURE
TOTAL BUDGET
JH:zd:4/8/80
$147,000
$ 47,000
$ 6,000
i