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HomeMy WebLinkAboutPre-Legislationo� City of Miami Legislation 2f 9p Resolution: R-09-0298 File Number: 09-00608 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Final Action Date: 6/18/2009 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING THE CITY OF MIAMI DEPARTMENT OF COMMUNITY DEVELOPMENT'S ECONOMIC DEVELOPMENT LOAN FUND PROGRAM POLICIES, TO PROVIDE BUSINESSES WITH FINANCIAL ASSISTANCE TO SUPPORT THE RETENTION AND CREATION OF JOBS FOR LOW TO MODERATE INCOME CITY OF MIAMI RESIDENTS, AS DESCRIBED IN EXHIBIT "A", ATTACHED AND INCORPORATED; AUTHORIZING THE CITY MANAGER TO EXECUTE THE NECESSARY DOCUMENTS FOR THE IMPLEMENTATION OF SAID PROGRAM. WHEREAS, pursuant to Resolution No. 08-0688, adopted December 11, 2008, the City Commission approved the allocation of future Community Development Block Grant (CDBG") Program Income funds to include Housing and Economic Development activities as deemed necessary by the City Manager; and WHEREAS, the City of Miami ("City") established the Economic Development Loan Fund ("EDLF") Program which will be administered by the Department of Community Development ("CD"); and WHEREAS, the EDLF program is designed to fill the financing gap between private debt financing and private equity and funds are provided to create economic benefit through increased revenues and the creation and retention of jobs in the City; and WHEREAS, the EDLF Program is available to businesses located or planning to locate within the City boundaries and priority will be given to businesses in the Neighborhood Development Zones; and WHEREAS, the EDLF Program policies will ensure that all commercial loans provided by CD are consistent with Federal regulations and all eligible businesses are treated equally in the evaluation and terms of the loans; and WHEREAS, the Administration requests the approval of the EDLF Program Policies which will provide businesses with financial assistance to support the retention and creation of jobs for low to moderate income City residents, as described in Exhibit "A", attached and incorporated; 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. The City's CD EDLF Program policies which will provide businesses with financial assistance to support the retention and creation of jobs for low to moderate income City residents, as described in Exhibit "A", attached and incorporated, are approved. City of Miami Page I of 2 File Id. 09-00608 (!Version: 1) Printed On: 10/10/2018 File Number. 09-00608 Enactment Number: R-09-0298 Section 3. The City Manager is authorized{1} to execute the necessary documents for the implementation of said program Section 4. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.{2} Footnotes: {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 Code provisions. {2} If the Mayor does not sign this Resolution, it shall become effective at the end of ten 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. City of Miami Page 2 of 2 File Id. 09-00608 ((version: 1) Printed On: 10110/2018 CITY OF MIAMI Economic Development Loan Fund Program GUIDELINES, FORMS, SCOPE OF WORK, ATTACHMENTS bty of Wtorn - deWrtmeni oaf Community Development Last Revision: June 2009 Economic Development Loan Fund ("EDLF") Program Lending Policies and Guidelines The City of Miami has established an Economic Development Loan Fund ("EDLF") Program in accordance NNrith the goals and objectives outlined herein. The EDLF Program, which -gill be administered by the City of Miami ("City") Department of Community Development ("CU), will be capitalized using Community Development Block Grant C`CDBG") funds authorized under 24 CFR 570. Purpose The goal of the Economic Development Loan to provide businesses with financial assistance to support the retention and creation of jobs f6flow to moderate income City residents. The EDLF Program is designed.. to fill the financing "g`qp between private debt financing and private equity. Funds are provId6d* to create economic b6iefit through increased revenues and the creation and the retention ofjobs ,.in the City. Eligible Area The EDLF Program is available to businesses s of the City. Priority will be given to'biisint described in the 2009-2014 City of Miam!Goi Loans are, Evalu,#&d"Bas6d'- , 'on a Praj tvX • Financial viabill."—i. • Pot'N". create or fetai� jobs marm • Magement • Coiffb ity erono act or pldnn,.ing to locate within the bound&ies the Neighborhood Development Zones as 'U Plan and/or Special Target Areas. • Capacitylorverage fun §(from other sources • Potential to infflghse wind economic development 0 Ability to repay * Readiness to proceed Eligible Use of Funds and Activities Loan funds can be used for: • Purchase and Installation of machinery-, equipment, furniture, Cx-tures • Leasehold improvements or expansions • Technolom, infrastructure • Renovation, improvement and expansion • inventory Note: The use of funds for construction activat es such as -renovation, improvement and expansion will trigger a requirement that preva ln'g--,vages be paid for all labor (Davis Bacon Wage Rates). " Ineligible Use of Funds Funds cannot be used for the purpose of.-, . • Paying off a creditor or creditors of the applicant,who are adequately secured and are in a position to susfa7m%fl ss • Providing furias r distri' �vn or payirierifto the owner, partners, or shareholder of the applicant.: --__ of rY a4 L,i.'S+�:.:'3•r_ f%3=cz='i:F'5{�f,'r • Pang of any tax • Refinarcloans made • Projects Eligibility Criteria company. with the City's economic development program, A business may qualify for consideration provided it meets the following criteria: • Business is located or locating within the boundaries of the City of Miami. 2 • Business and/or Principals demonstrate that financing is not othem ise available on terms or conditions that would permit completion and/or successful operation or accomplishment of the project activities to be financed. • Business is an equal opportunity employer. • Business is not relocating j obs, except where the loan applicant is forced to relocate due to circumstances beyond their control (i.e. government intervention, building demolition, etc.). • Project involves no negative environmental impacts • Project impacts an adequate number of jobs, as` -I efneaI created and/or retained for low to moderate income people. • All applicants shall grant City of Mann` sesidents hiring pr any jobs created as a result of the loan. Loan Job 24 CFR 209 (b)(1)(i), to be oRer all applicants for guidelines and policies as they 1 time, permanent job for every .ined must be made available to ler Section 8. loan closing if loan is not used for rehabilitation or leasehold improvements or the total project does not include rehabilitation or leasehold improvements. • Jobs must be created within eighteen (18) months of the loan closing if loan is used. for rehabilitation or leasehold improvements or six (6) month after the completion of the rehabilitation/improvements, whichever is less. 3 Job Retention • The applicant must give details on why the borrowed funds are required to retain the jobs and demonstrate that without the assistance, the jobs would be lost. Loan Amount Minimum: $20,000.00 Maximum: $80;000.00 • A HUD environmental review must be cor' r cted and completed prior to disbursin6 funds. City of Miami t to exceed the Lger than seven rs y case basis a, based on the Luirements will Special Target Areas Special Target Areas as defined in the City of Miami Consolidated flan or approved by the City of Miami Commission for this loan program may have different from thee ones detailed above. 4 Application Fee There will be a non-refundable application fee of $100.00. This application fee must accompany the loan application package. The application fee will be cashed when the package is accepted for underwriting, Program Requirements: • Applicants and their spouses shall sign Unlimited Guaranties, even if the spouse is not part of the Company requesting the funds. • Commercial Insurance Policies naming the City of Miami as loss payee in an amount acceptable to the City of Miami Risk Department. All policies shall provide the City with mandatory 30 days written notices in cases of cancellation or material change. 4i. gjy- , M.�4" .:. • Unless otherwise approved by the lousing and Loan Commiitee and/or the City of Miami Commission, all loans will require collateral position of any :and all real property or equipment pledge as security for the • Loans for equipment will require IJCC-1 filings. `":::;•:. • Once the loan is closed, recipient limy n8i"p1bdge, trance ;hypothecate, encumbrance or dispose of anyassurrphased, in'�w.hole or ul . arr, witla'arlds from the City of Miami, 4.7 without the vat - approV, l from the iiy f Ivliaini '; • The City of Miainay impose late fees ifthe business does not pay on a timely manner. =...> . - r,i.:;.e�%I;•�. yin... :':. .Js.?6�i�,�y'" &4:: xwz.. .. e • L a > %iciness apes no?, et its mil'um- Vim, employment requirements, then the City shall cit71'the loanpa a le wi IMB0 days. ;;: -T•, Non-recom mended Loans will general,j, be recommended for approval for the following reasons: • If the requestedffliands.at otherwise available on reasonable terms: a) From the"oal at a fair price of assets not required by the applicant in the conduct of its business or not reasonably necessary to its potential growth, b) Through the use of personal credit and/or resources of the owner, partners, management, or principal stockholders of the applicant, c) From other Government agencies which provide credit specifically for the applicants' type of business, or d) From other known sources of credit; 9 For unsatisfactory credit history during the Iast twelve (12) months. • If a bankruptcy was discharged during the last twenty four (24) months. • If the loan will provide funds for speculation in any hind of property, real or personal, tangible or intangible; • If the applicant is a charitable institution or non-profit enterprise, except for cooperatives which carry on a business activity for the purpose of obtaining pecuniary benefit for their members in the operations of their otherwise eligible small business concern; • If the applicant is a newspaper, book publishing :,company, magazine, or similar enterprise; • If any of the gross income of the applicant; (or' any oVifs .,principal owners) is derived from gambling activities, except for those siiiall firms whi6lz4`.obtaizz less than one third of their gross income from income or commission from the sale;:f official state lottery tickets under a state license; • If the purpose of the loan is business of lending or invest of financing investments not • If the purpose of,;the.xoan is to • If the Appiicai�or its"'pr de funds to an, enterprise prim gaged in the to any otlaervv%se eligible enterprise for the purpose t s.sential to thejignterprise. the acq --tion of real property or land. to U City of Miami. • If t4e:.Applicant andlor, i#s-;principals have:; been debarred from doing business with fed m.. runty oz local government S.'f f • proceeds oftlaeoan une used for moving an eligible business when the move is soI'"for the purpos obtarg the benefits of borrowing from the EALF. Appeal Process Applicants will have 16'business days from the receipt of the letter not recommending the loan to appeal the decision. The applicant can provide additional documents at that time for consideration of the underwriting committee. If the loan is not recommended a second time, there will be no further appeal entertained from the applicant. :.1 Loan Approval All loans made strictly under the policies of the EDLF program 'Aill be recommended for approval by the Housing and Commercial Loan Committee. If the Housing and Loan Committee denies a loan application, the applicant -101 be advised in writing -Aith an explanation as to why the loan was denied. All loans not meeting the EDLF program guidelines will require an additional approval by the City Commission. VA