HomeMy WebLinkAbouthistory of itemTransferring $3 million to Peninsula Edison Plaza, LLC for
the redevelopment of Edison Marketplace
History of Item
On November 10, 1982, the City Commission approved Resolution No. 82-1075
allocating $400,000 in Community Development Block Grant (CDBG) funds to the
Belafonte Tacolcy Center, Inc. for the renovation of the 46,000 square foot structure, for
which the City holds a Promissory Note dated May 10, 1983.
In an effort to revitalize Edison Plaza, Belafonte Tacolcy Center, Inc. and Tacolcy
Economic Development Corporation, Inc., its development affiliate, formed Edison
Marketplace Group, LLC ("Marketplace Group"), a joint ownership, to redevelop the
Center and to implement an economic development strategy in the Edison Center
Business District. This new entity combined their respective parcels of more than five
acres expanding the property to 81,400 sq. ft.
This new center will be developed and managed by Peninsula Edison Plaza, LLC
("Peninsula"), a subsidiary corporation of Peninsula Developers, Inc. on a long-term
ground lease of $50,000.00 annually. Marketplace Group and Peninsula acknowledges
and agrees that the ground lease will serve as a mortgage and security agreement for the
property to be used as collateral.
The estimated cost of developing the new center is $12,300,000. Peninsula is requesting
an additional $3,000,000 from City of Miami to finance the redevelopment of Edison
Marketplace. Predevelopment financing from other sources has been secured as follows:
Miami- Dade Empowerment Trust, Inc.
$1,000,000
Miami -Dade Office of Community and Economic Development
Block Grant (OCED)
$700,000
Miami- Dade County — The Task Force on Urban Economic
Revitalization
$7,200,000
City of Miami (approved 11/10/82)
$400,000
Total
$9,300,000
Peninsula, as managing company, has secured approval of the Final Plat, the Class II
Permit and has identified and secured letters -of -intent from an anchor tenant and other
tenants for more than 75% of the new center spaces. Edison Plaza is to be demolished
and construction of the new and larger center is scheduled for January 2005.
The redevelopment of the Edison Plaza will not only create job opportunities for low and
moderate income City residents but it will also stimulate economic growth for the Liberty
City community. Peninsula has agreed to create a minimum of 98 full time jobs for City
of Miami residents.
In order to facilitate and expedite the completion of this project, the City will subordinate
and defer loan payment until Edison Marketplace receives a Certificate of Occupancy.
The unpaid balance of the existing loan ($400,000) will be tacked on to the requested
loan of $3,000,000 totaling it to $3,400,000 with the clear understanding that loan
repayment will only be subordinate to the $7.2 million from Miami- Dade County — The
Task Force on Urban Economic Revitalization.
Thus, the $3,400,000 will be in the form of a Ioan to Peninsula Edison Plaza, LLC at a
rate of 3% payable in 20 years. Repayment shall be interest only on the outstanding
principal balance for the first 36 months from the date that Edison Marketplace receives
the Certificate of Occupancy. Beginning on the 37th month, the loan will be repaid in 204
equal and consecutive monthly payments of principal and interest, based on a 20 year
amortization.