CAO 01-23 HOME Investment
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CITY OF MIAMI BEACH
OFFICE OF THE CITY ATTORNEY
MEMORANDUM
SUBJECT:
Jorge M. Gonzalez
City Manager
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Murray H. DubbAr VI ~ Il,vt....---
City Attorney I \~ \,~~
HOME Investment Partnership Program Agreement - The Waterway Village, 1945
Calais Drive
CAO No. 01-23
TO:
FROM:
DATE:
December 6; 2001
Pursuant to your request of December 4, 2001, I have researched the issue of whether a
conflict of interest would exist were Ekon Development to submit a bid as contractor for the
rehabilitation of property which is the subject of a HOME program rehabilitation funding grant. For
the reasons stated more fully below, a conflict of interest would exist.
Under the facts provided, Nicholas Ekonomou, president and owner of Florida Fair Housing
Corporation, an entity which has received HOME program funds) seeks to bid as a contractor as
owner and principal ofEkon Development and Management Corp. to undertake rehabilitation of the
Waterway Village. Pursuant to 24 C.F.R.g 85.36 (which federal regulation serves as the applicable
conflict of interest rule in the procurement of property and services by a subrecipient of the HOME
funds) the following is provided:
...llQ employee, officer or agent of the ~rantee or sub-~rantee shall participate in
selection, or in the award or administration of a contract supported by federal funds
if a conflict of interest, real or apparent, would be involved. Such a conflict would
arise when:
(i) ~ employee, officer or agent, [or]
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(iv) an organization which employs, or is about to employ, any of
the above,
) On July 26, 2000 Florida Fair Housing Corp. entered into a HOME Investment Partnership
Program Agreement with the City for the acquisition and rehabilitation of the Waterway Village,
1945 Calais Drive, Miami Beach.
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has a financial or other interest in the firm selected for award. ... (Emphasis added.)
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The subject federal regulations are thus clear in prohibiting Mr. Ekonomou as an officer of the sub-
grantee of the subject HOME funds from having a financial interest in the firm selected for the award
to do the subject rehabilitation. Accordingly, Mr. Ekonomou is prohibited from participating in the
selection of or in the award or administration of the ~ubject contract, given the fact that he has a
financial interest in the Ekon firm which is bidding for the award.
cc: Robert Middaugh, Assistant City Manager
Miguel Del Campillo, DDHPS Director
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