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HomeMy WebLinkAboutCover MemoCITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO : FROM : The Honorable Mayo MAR 1 7 2004 DATE : FILE : Mes of The C y Commissio Allocation of funds from the c.‘, SUBJECT : District 5 Little Haiti Job Creation Pilot Project Joe A u a REFERENCES : City Commission Agenda City a ager ENCLOSURES: April 8, 2004 RECOMMENDATION: It is respectfully recommended that the City Commission adopt the attached Resolution allocating Community Development Block Grant (CDBG) Funds from the District 5 Little Haiti Job Creation Pilot Project set -aside in the amount of $90,000 to Tarpun Bay USA, Inc. in the form of a five (5) year deferred, forgivable loan with the provision that the funds be used to create and maintain new employment opportunities for residents of the Little Haiti neighborhood for a period of five (5) years, subject to the submission of evidence of available financing to complete the project; and further authorizing the City Manager to enter into an agreement with said business for said purpose, in a form acceptable to the City Attorney, subject to applicable City Code provisions. BACKGROUND: On April 14, 1998, the City Commission adopted Resolution No. 98-402.1 allocating $225,000 of CDBG funds representing the first installment of a five-year commitment to implement the Little Haiti Job Creation Project as a special initiative to meet the unique needs of businesses in Little Haiti and to create jobs for neighborhood residents. On May 1, 2001, the City Commission approved the creation of the District 5 Little Haiti Job Creation Pilot Project and adopted project guidelines. The purpose of the project, as identified in the guidelines, is to provide one-time deferred, forgivable loans to businesses in the Little Haiti Community Revitalization District with the goal of providing job creation opportunities for low and moderate -income residents in the Little Haiti Community through business expansion and retention activities. The program design includes the following eligible activities: • Upgrade and expansion of facilities • Correction of code violations on commercial properties • Improvements to meet ADA standards • Infrastructure Improvements (i.e. lighting, draining, parking, etc.) • Facade Improvements To qualify for the deferred, forgivable loan, an area business must create a minimum of one (1) new, full-time job for each increment of $15,000 and the maximum grant available will be $90,000. Opportunities remain available to eligible businesses until funds authorized through the five (5) year commitment have been depleted. On January 24, 2002, the City Commission approved member appointments to the District 5 Little Haiti Job Creation Pilot Project Advisory Board. On March 4, 2004, the Advisory Board voted to recommend City Commission approval of the allocation of CDBG funds in the amount of $90,000 to Tarpun Bay USA, Inc. For each $15,000 in funding, the program must create and maintain one (1) new employment opportunity for residents of the Little Haiti neighborhood for a period of five (5) years. Furthermore, this approval is subject to the following provisions: (i) applicant must provide evidence of available financing to complete the project, (ii) the project must receive U.S. HUD approved environmental clearance, and (iii) the project must meet all applicable local, State and Federal regulations. New Jobs Funded Agency / Project Created Amount Beginning Balance: District 5 Little Haiti Job Creation Pilot Project $ 474,863 Allocation to: Tarpun Bay USA, Inc. 6 $ 90,000 Remaining Balance: District 5 Little Haiti Job Creation Pilot Project $ 384,863 It is recommended that the City Commission adopt the attached Resolution allocating CDBG Funds from the District 5 Little Haiti Job Creation Pilot Project set -aside in the amount of $90,000 to Tarpun Bay USA, Inc. in the form of a five (5) year deferred, forgivable loan with the provision that the funds be used to create and maintain new employment opportunities for residents of the Little Haiti neighborhood for a period of five (5) years, subject to the submission of evidence of available financing to complete the project; and further authorizing the City Manager to enter into an agreement with said business for said purpose, in a form acceptable to the City Attorney, subject to applicable City Code provisions. The proposed Resolution re -allocates CDBG grant funds and does not have a budgetary impact on the General Fund. L'MH/BGR