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HomeMy WebLinkAboutAgenda Item Summary FormAGENDA ITEM SUMMARY FORM File ID: #4919 Date: 11/05/2018 Commission Meeting Date: 11/15/2018 Requesting Department: Department of Housing and Community Development Sponsored By: District Impacted: Type: Resolution Subject: Amend - City of Miami Economic Development Loan Funds Program Policies Purpose of Item: AUTHORIZING AN AMENDMENT OF THE CITY OF MIAMI'S DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT'S ("HCD"), ECONOMIC DEVELOPMENT LOAN FUND'S ("EDLF") PROGRAM POLICIES TO INCLUDE ASSISTANCE IN CONVERTING EXISTING BUSINESSES' OWNERSHIP STRUCTURES TO EMPLOYEE -OWNED OWNERSHIP STRUCTURES, MAINLY THROUGH WORKERS' COOPERATIVES, AS DESCRIBED IN EXHIBIT "A," ATTACHED AND INCORPORATED; AUTHORIZING THE ALLOCATION OF FUTURE COMMUNITY DEVELOPMENT BLOCK GRANT ("CDBG") PROGRAM INCOME TO THE EDLF PROGRAM SUBJECT TO THE AVAILABILITY OF FUNDS, BUDGETARY APPROVAL AT THE TIME OF NEED, AND AUTHORIZATION FROM THE CITY'S HOUSING AND COMMERCIAL LOAN COMMITTEE ; FURTHER AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE, ANY AND ALL NECESSARY DOCUMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, FOR SAID PURPOSES. Background of Item: Pursuant to Resolution No. 09-0298, adopted June 18, 2009 the City Commission approved the Economic Development Loan Fund ("EDLF") program Policies, to provide business with financial assistance to support the retention and creation of jobs for low to moderate income City of Miami residents. The City's EDLF Program, which is administered by the Department of Housing and Community Development ("HCD"), is available to certain businesses located or planning to locate with the boundaries of the City. The City was invited to participate in a Shared Equity in Economic Development Fellowship Program ("SEED") by the National League of Cities, a Washington, DC, not for profit corporation, and the Democracy at Work Institute, a California not for profit corporation. SEED encourages cities to develop strategies that create broad -based business ownership opportunities for low -wage workers, women, immigrants, people locked out of the job market, and communities of color. The City seeks to generate said opportunities by assisting in the creation of sustainable employee- to- owner conversion cooperatives. The models have proven to be an effective tool for creating and maintaining sustainable, dignified jobs, generating wealth, improving the quality of life of workers. By funding the EDLF Program with future Community Development Block Grant ("CDBG") program income, HCD will be able to assist businesses by the constant road work in our community in order to continue to operate and retain jobs. Amending the EDLF Program policies will ensure that all commercial loans provided by HCD are consistent with Federal regulations and all eligible businesses are treated equally in the evaluation and terms of the loans. The City Administration recommends the approval of the amendment of the City's EDLF Program Policies, as described in Exhibit "A," attached and incorporated, and the approval of the allocation of future CDBG program income to the EDLF Program. Budget Impact Analysis Item has NOT an Expenditure Item is NOT Related to Revenue Item is NOT funded by Bonds Total Fiscal Impact: N/A Special Revenue Account No: TO BE DETERMINED Department of Community Review Completed Office of Management and Office of Management and City Manager's Office City Manager's Office Legislative Division Office of the City Attorney Office of the City Attorney Office of the City Attorney City Commission Office of the Mayor Office of the City Clerk Office of the City Clerk Reviewed B and Economic Development 10/25/2018 11:14 AM Budget Luis Hernandez -Torres Budget Christopher M Rose Sandra Bridgeman Nikolas Pascual Valentin J Alvarez Richard Appleton Barnaby L. Min Victoria Mendez Maricarmen Lopez Mayor's Office City Clerk's Office City Clerk's Office George Mensah Budget Analyst Review Budget Review Assistant City Manager Review City Manager Review Legislative Division Review ACA Review Deputy City Attorney Review Approved Form and Correctness Meeting Signed by the Mayor Department Head Completed Completed Completed Completed Completed Completed Completed Completed Completed Completed Signed and Attested by the City Clerk Completed Rendered Completed 10/25/2018 12:04 PM 10/25/2018 2:43 PM 10/25/2018 6:34 PM 10/26/2018 9:59 AM 10/26/2018 10:13 AM 10/30/2018 12:28 PM 10/30/2018 4:05 PM 11/01/2018 6:52 PM 11/15/2018 9:00 AM 11/26/2018 3:25 PM 11/26/2018 3:57 PM 11/26/2018 3:58 PM City of Miami Legislation Resolution Enactment Number: R-18-0505 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 4919 Final Action Date:11/15/2018 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AUTHORIZING AN AMENDMENT TO THE CITY OF MIAMI'S ("CITY") DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT'S ("HCD") ECONOMIC DEVELOPMENT LOAN FUND'S ("EDLF") PROGRAM POLICIES TO INCLUDE ASSISTANCE IN CONVERTING EXISTING BUSINESSES' OWNERSHIP STRUCTURES TO EMPLOYEE -OWNED OWNERSHIP STRUCTURES, MAINLY THROUGH WORKERS' COOPERATIVES, AS MORE PARTICULARLY DESCRIBED IN EXHIBIT "A," ATTACHED AND INCORPORATED; AUTHORIZING THE ALLOCATION OF FUTURE COMMUNITY DEVELOPMENT BLOCK GRANT ("CDBG") PROGRAM INCOME TO THE EDLF PROGRAM SUBJECT TO THE AVAILABILITY OF FUNDS, BUDGETARY APPROVAL AT THE TIME OF NEED, AND AUTHORIZATION FROM THE CITY'S HOUSING AND COMMERCIAL LOAN COMMITTEE; FURTHER AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ANY AND ALL NECESSARY DOCUMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, FOR SAID PURPOSES. WHEREAS, pursuant to Resolution No. 09-0298 adopted on June 18, 2009, the City Commission approved the Economic Development Loan Fund ("EDLF") Program policies to provide businesses with financial assistance in order to support the retention and creation of jobs for low to moderate income City of Miami ("City") residents; and WHEREAS, the City's EDLF Program, which is administered by the Department of Housing and Community Development ("HCD"), is available to certain businesses located or planning to locate within the boundaries of the City; and WHEREAS, the City was invited to participate in a Shared Equity in Economic Development Fellowship Program ("SEED") by the National League of Cities, an Illinois not -for - profit corporation, and the Democracy at Work Institute, a California non-profit corporation; and WHEREAS, SEED encourages cities to develop strategies that create broad -based business ownership opportunities for low -wage workers, women, immigrants, people locked out of the job market, and communities of color; and WHEREAS the City seeks to generate said opportunities by assisting in the creation of sustainable employee -to -owner conversion cooperatives; and WHEREAS, SEED will equip the City with resources, tools, and technical assistance expertise by creating and supporting pathways to employee ownership models; and WHEREAS, the models have proven to be an effective tool for creating and maintaining sustainable, dignified jobs, generating wealth, improving the quality of life of workers, and promoting community and local economic development, particularly for people who lack access to business ownership or even sustainable work options; and WHEREAS, by funding the EDLF Program with future Community Development Block Grant ("CDBG") program income, HCD will be able to assist businesses affected by the constant road work in our community in order to continue to operate and retain jobs; and WHEREAS, amending the EDLF Program policies will ensure that all commercial loans provided by HCD are consistent with Federal regulations and all eligible businesses are treated equally in the evaluation and terms of the loans; and WHEREAS, the City Administration recommends the approval of the amendment of the City's EDLF Program policies, as more particularly described in Exhibit "A," attached and incorporated, and the approval of the allocation of future CDBG program income to the EDLF Program subject to the availability of funds, budgetary approval at the time of need, and authorization from the City's Housing and Commercial Loan Committee; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this section. Section 2. An amendment to the City's HCD's EDLF's Program policies to include assistance in converting existing businesses' ownership structures to employee -owned ownership structures, mainly through workers' cooperatives, as more particularly described in Exhibit "A," attached and incorporated, is authorized. Section 3. The allocation of future CDBG program income to the EDLF Program subject to the availability of funds, budgetary approval at the time of need, and authorization from the City's Housing and Commercial Loan Committee, is authorized Section 4. The City Manager is authorized to negotiate and execute any and all necessary documents, in a form acceptable to the City Attorney, for said purposes. Section 5. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.2 APPROVED AS TO FORM AND CORRECTNESS: ndez, ity Httor 1 The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney, including but not limited to, those prescribed by applicable City Charter and City Code provisions. 2 If the Mayor does not sign this Resolution, it shall become effective at the end of ten (10) calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission.