HomeMy WebLinkAbouthistory of itemTRANSFERRING CDBG FUNDS FROM CLOSE OUT ACTIVITIES TO
GOODWILL INDUSTRIES OF SOUTH FLORIDA, INC.
HISTORY OF ITEM
Goodwill Industries of South Florida Inc. was founded in 1959 and currently provides
rehabilitation, training and employment services to people with disabilities and other
special needs population in order to help them become competitively employed and self
supporting citizens, The individuals served generally have physical, mental and
emotional problems. The large majority are poor and often face multiple barriers to
employment. They generally cannot make the transition to independence without help.
Since 1981, Goodwill Industries' leadership vision changed to one of an entrepreneurial
concept; thus creating four divisions: Donated Goods, Apparel and Flag Manufacturing,
Service contracts and Commercial Services. Due to this vision, Goodwill Industries was
able to reduce its dependence on public funding from 39% to 7% and has a proven strong
track record of economic development and job creation in the Allapattah area.
AlIapattah has a high level of poverty. Within a three-mile radius of Goodwill's main
facility, some 267,000 individuals live on $10,845 a year — 32% below the poverty level.
96,002 households with an average income of $21,141.
Goodwill Industries is requesting funds to purchase and fully equip a building that is
located adjacent to Goodwill Industries' headquarters (2121 NW 21 Street) in the
Allapattah area. The building will be utilized to operate two Goodwill Industries stores.
One store will sell general merchandise (clothing, household, shoes, house wares, books,
furniture and other items); the other store will design, manufacture and sell flags and
banners on a national scale.
Development of this facility will accomplish three important purposes: First, it will create
200 new jobs in two years and a total of 400 jobs in three years for City of Miami
residents. Second, it will generate revenues to support the cost of operating a program at
the Goodwill Industries adjacent, main facility. In ten years, it will serve a total of 2,168
different individuals to be employed from the combination of full time hires by Goodwill
Industries and also placements into competitive community employment- 75% of the
2,168 served will be City of Miami residents. Third, it will generate a large volume of
sales activity bringing in new business helping further economic development in
Allapattah.
The cost of the building and equipment is $4,265,700. Closing of the building purchase
for the $2,000,000,00 is expected to be by December 1, 2004.
The project is divided into two phases- short range and long range. The short range is for
two years and will start upon completion and inauguration of the two stores, which will
be on or before July 1st, 2005. In this phase, 200 new full time jobs will be created for
City of Miami residents. There will be 80 jobs created the first year then the remaining
120 in the second year. The long range phase carries the plan to 10 years and will also
start on July 1, 2005. In this phase, a total of 2,168 different individuals will be employed
from the combination of full time hires by Goodwill Industries and also placements into
competitive community employment- 75% of the 2,168 will be City of Miami residents.
The $2,000,000 will be a loan with an interest rate of 0% payable in 20 years. Goodwill
Industries will begin making payments six months from the date of loan document
execution.