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HomeMy WebLinkAboutCRA-R-10-0020 Cover Memo 3-25-2010SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE MEMORANDUM To: Board Chair Richard P. Dunn II Date: March 15, 2010 File: 10-00369 and Members of the CRA Board From: James H. Viilacorta •3 Executive Director Subject: Resolution Directing the Negotiation of a Grant Agreement with Camillus House, Inc, to Assist with the Construction of a New Facility at 1603 N.W. 7th Ave, Miami, FL. References: Enclosures: Supporting Documentation; Legislation BACKGROUND: It is recommended that the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency ("CRA") approve and adopt the attached Resolution directing the Executive Director to negotiate a grant agreement, in a form acceptable to Special Counsel, with Camillus House, Inc. ("Camillus"), to assist with its construction of a new facility at 1603 N.W. 7th Avenue, Miami, Florida. Camillus is requesting a grant, in an amount not to exceed $10,000,000, payable at the rate of $2,000,000 per year for a period of five (5) years, commencing Fiscal Year 2011 and ending Fiscal Year 2016. The Executive Director is further directed to present any proposed grant agreement to the Board for its consideration, and if satisfactory, approval and award. Camillus intends to move its main center for treatment services to 1603 N.W. 7th Avenue, Miami, Florida. The New Camillus House Campus will encompass seven buildings totaling approximately 382,000 square feet, and contain a total of 340 beds ("Project"). Per Camillus, the Project will consist of two (2) phases and will create approximately 450 construction -related jobs and 100 new permanent jobs. Camillus has represented that 70% of the construction workers hired will be from Miami -Dade County, and priority hiring will be given to low-income residents living within a 5 mile radius of the Project. Camillus has stated that all permanent workers are to earn the living wage for Miami -Dade County, with the average employee earning $40,000 plus benefits. The total projected cost of the New Camillus House Campus is $81,600,000. Camillus House is requesting $10,000,000 in grant assistance from the CRA. The CRA's total contribution will be used to repay a $19,205,000 gap loan used to fund the cost of construction. JUSTIFICATION: The Camillus House building at 726 N.E. 1st Avenue, Miami, Florida, is deteriorated, operating beyond its capacity, and is contributing to the blighting conditions in the Park West neighborhood. Relocating Camillus will immediately improve conditions in the Park West neighborhood. Section 2, Goal 6, at page 11, of the 2009 Southeast Overtown/Park West Community Redevelopment Plan, as amended, lists "[i]mproving the quality of life for residents of the Redevelopment Area," as a stated redevelopment goal. This Resolution accomplishes this goal.