HomeMy WebLinkAboutMemo - SEOPW CRACity of Miami Board of Commissioners Meeting
July 23, 2015
SOUTHEAST OVERTOWN/PARK WEST
COMMUNITY REDEVELOPMENT AGENCY
INTER -OFFICE MEMORANDUM
To: City of Miami Commissioners
Date: June 9, 2015 File:
Subject: Resolution Approving Cash Collateralized
Line of Credit for the SEOPW CRA.
From: Clarence E. Woods, III References:
Executive Director
Enclosures: Supporting Documentation; Legislation
RECOMMENDATION:
It is recommended that the Board of City Commissioners ("Board") adopt the attached resolution approving the
Southeast Overtown/Park West Community Redevelopment Agency ("CRA") establish a Cash Collateralized
Line of Credit in an amount not to exceed $75,000 with Florida Community Bank. The Cash Collateralized Line
of Credit will secure grant funds to supplement funding allocated by the CRA to the rehabilitation of Town Park
Plaza North 475 N.W. 19th Street, Miami, Florida (Folio No. 01-3136-083-0870) and will mature eighteen (18)
months from the date of the promissory note.
BACKGROUND:
Town Park Plaza North ("TPPN") is a 20-building, 169-unit affordable housing complex in the Redevelopment
Area, The condition of TPPN poses significant risk to the health and safety of its occupants, and in turn,
extensive rehabilitation is needed, as evidenced by structural cracks, unsecured railings, deteriorating plumbing,
rotting wood, and outdated electrical wiring.
In response to these conditions, the CRA allocated funding from its General Fund to rehabilitate TPPN. In an
effort to assist the CRA with leveraging its funding support of the TPPN rehabilitation project, the Board of
Commissioners of the CRA, authorized the Executive Director to apply for funding from Federal Home Loan
Bank of Atlanta ("FHLB-Atlanta") and was later awarded a grant in the amount of $150,000, for the rehabilitation
of 15 owner -occupied units in Town Park Plaza North. The rehabilitation of TPPN began in March 2015 and we
expect the project to be completed within three (3) years.
A provision of the FHLB-Atlanta award requires the CRA to establish a Cash Collateralized Line of Credit in an
amount not to exceed $75,000, with Florida Community Bank, a local member of FHLB-Atlanta. Pursuant to the
terms of the Cash Collateralized Line of Credit Agreement, the line of credit will mature eighteen (18) months
from the date of the promissory note.
JUSTIFICATION:
Section 163.400(1)(d), Florida Statutes, allows a community redevelopment agency "to borrow money and apply
for and accept advances, loans, grants, contributions, and any other form of financial assistance from ... any
source,"
The CRA is required to annually submit its budget to the City of Miami pursuant to Article VI, paragraph 6.1(b) of
the Interlocal Cooperation Agreement, dated March 1, 2000, between the City of Miami, the Southeast
Overtown/Park West Community Redevelopment Agency, and the Omni Redevelopment District Community
Redevelopment Agency, as revised and amended. This Resolution commits Tax Increment Funds revenues in
excess of one year; as such the CRA is required to submit the proposed expenditure to the City of Miami for
approval.