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EDI Grant AgreementU.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, D.C. 20410-7000 JAN 3 0 200,'3 The Honorable David Dermer Mayor of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 Dear Mayor Dermer: This is in response to a request from the City of Miami Beach to amend its previously approved application for Economic Development Initiative (EDI) grant assistance. The Department of Housing and Urban Development approved a Section 108 Loan Guarantee commitment on August 10, 1995, to the City of Miami Beach in the amount of $14,870,000 (B-94-MC-12- 0014), and an Economic Development Initiative (EDI) Grant on September 30, 1994, in the amount of Si,000,000. On September, 27, 2000, the Department approved an amendment to the original Section 108 Loan Guarantee application and the EDI Grant application, to delete activities specified in the original application and substitute an activity in the amount of $4,000,000 in Section 108 Loan Guarantee assistance. On August 12, 2002, the City requested a second amendment to its application for EDI grant assistance. The amendment request would continue to fund the construction of the North Shore Youth Center as well as street improvements for urban renovation and neighborhood revitalization in the North Beach area. The street improvements, however, would no longer support the economic development activity of the previously identified private, for- profit business development that was to occur at a single, previously specified site. Instead, the street improvements will now be undertaken to provide a benefit to low- and moderate- income residents on an area basis in the North Beach area. Under the requested amendment, the EDI funds would be used to pay interest costs on the Section 108-guaranteed loan and to establish a debt service reserve. The amendment request to the EDI application is hereby approved. However, such approval is conditioned upon the City's execution of the enclosed amended and restated EDI grant agreement. If you accept the condition described above, please acknowledge your acceptance by signing in the space provided below. Please return this letter and three signed copies of the amended and restated EDI grant agreement, to: Paul Webster, Director Financial Management Division 451 7tn Street S.W., Room 7180 Washington, D.C. 20410. If you or any member of your staff have any questions concerning this matter, you may contact Mr. Webster at 202.708.1871 extension 4563 Very sincerely yours, Nelson R. Breg6n Deputy Assistant Secretary for Grant Programs Accl By:~ Enc. Signature David Dermer, Mayor Title r~ate APPROVED A.R TO FORM & LANGUAGE & FOR EXECUTION Grant No. B-98~ED-12-0015 ECONOMIC DEVELOPMENT (EDI) GRANT AGREEMENT U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT This Agreement is made and entered into by and between THE SECRETARY OF HOUSING AND URBAN DEVELOPMENT, acting by and through the Assistant Secretary for Community Planning and Development, ("HUD"), and the City of Miami Beach, Florida (the "Recipient"). 1. Backqround; Purpose. This Agreement is authorized by section 108(q) of the Housing and Community Development Act of 1974, as amended by section 232(a) of the Multifamily Housing Property Disposition Reform Act of 1994, codified at 42 U.S.C. 5308(q) (collectively, "the Act"). Pursuant to the Act, on August 16, 1994, at 59 FR 42066; HUD published a Notice of Funding Availability and Program Guidelines for the Economic Development Initiative (the "NOFA"), which set forth the terms and conditions under which units of general local government could apply for and receive grants under section 108(q) of the Act ("EDI Grants") and related section 108 loan guarantees from HUD for Economic Development Projects ("EDI Projects"), as defined in the NOFA. Pursuant to the NOFA, the Recipient has applied for, and HUD has approved, an EDI Grant for the Recipient. The purpose of this Agreement is to set forth the terms and conditions under which HUD will provide EDI Grant funds to the Recipient in connection with the Approved EDI Projects described in the Recipient's Approved Application, as further defined herein. The terms and conditions of the related Section 108 Guarantee (as defined in par. 3 hereof) are set forth in the Recipient's separate Section 108 loan guarantee application, Funding Approval, and Contract for Loan Guarantee Assistance. 2. Approved Grant Amount, Projects, and Uses of Funds. a. By execution of this Agreement on behalf of the Secretary in the space provided below, HUD agrees, subject to the terms of this Agreement, to provide EDI Grant funds in the amount of $1,000,000 ("EDI Grant"). b. This grant is approved for the following Approved BEDI Projects described in the Approved Application: Urban Improvements for Economic Development("Approved Project"). c. The EDI Grant funds shall be used by the borrower in connection with the Approved Projects for the following specifically Approved Uses ("Approved Uses") pursuant to the following: (i) (ii) Payment of interest on the Section 108- guaranteed obligations under 24 CFR §570.703(c); and Debt service reserve under 24 CFR §570.703(k) . EDI Grant funds used for the debt service reserve shall be deposited in account(s) established by the Recipient subject to the same terms and conditions required for the Loan Repayment Account and Loan Repayment Investment Accounts under paragraph 6 of the Contract (as defined in paragraph 3 of this Agreement.) 3. Relationship to Section 108 Loan Guarantee Application. This approved EDI Grant is based upon Section 108 loan guarantees, or additional guarantees, for the Approved Projects in an amount not less than 24,000.000 (the "Section 108 Guarantee"). The EDI Grant funds shall be deposited directly into the Loan Repayment Account (as that term is more fully described in paragraph 6 the Contract for Loan Guarantee Assistance for the Section 108 Guarantee). The Recipient's full application(s), or full amendatory application(s), for the Section 108 Guarantee in the above amount, has been approved by HUD's execution of HUD-7082 Funding Approval (~commitment") No. B-94-MC-12-0014. This Agreement is incorporated by reference in the Contract for Loan Guarantee Assistance ("Contract") bearing such commitment number, which was executed on September 28, 2000. EDI Grant funds may be disbursed by the Custodian at the direction of the Recipient for Approved Uses in a ratio not to exceed $1.00 of EDI Grant funds to 34.00 of Section 108 loan proceeds disbursed for approved activities. 4. Requlations; Approved Application. This Agreement will be governed and controlled by the following in effect as of the date of notification to the Recipient of award of this grant: the Act, the NOFA, and HUD regulations codified at 24 CFR Part 570 or incorporated therein (provisions for use of CDBG funds, to the extent applicable) (hereafter collectively referred to as the "Regulations"). The Recipient's application submissions, including the certifications and assurances and any documentation required to meet any grant award conditions, and including any amendments made in accordance with this Agreement, are hereby incorporated in this Agreement as finally approved by HUD (herein referred to as the "Approved Application"). Unless the context otherwise requires, a reference to "this Agreement" herein shall be deemed to include the Act, the Regulations, and the Approved Application. 5. Performance Aqreement of Recipient. By execution of this Agreement on its behalf in the space provided below, the Recipient agrees to carry out the Approved Project(s) on a timely basis and otherwise in compliance with this Agreement (including the Act, the NOFA, the Regulations, and the Approved Application, except as otherwise specifically provided in this Agreement). The Recipient agrees to assure, and to accept responsibility for, such compliance by any other entities to which it makes grant funds available for, or which it otherwise allows to participate in, the Approved Project(s) covered by this Agreement. 6. Release, Deposit, and Timinq of Expenditure of Grant Funds and Proqram Income. a. The Recipient agrees to comply with environmental review procedures under 24 CFR 570.200(a) (4) and 24 CFR Part 58 in order to obtain releases of grant funds under this Agreement. In particular, the Recipient must not commit local or Federal funds for the approved activities prior to obtaining HUD approval of its request for release of funds, except as provided in 24 CFR 58.22(c), 58.34 or 58.35(b). b. Notwithstanding any other provision of the Regulations or this Agreement, the Recipient may not withdraw grant funds from the U.S. Treasury on account of the EDI Grant under this Agreement until after execution on behalf of HUD of the Guarantee and Contract for Loan Guarantee Assistance for the applicable Approved Project described in paragraph 2 of this Agreement. c. This EDI Grant must be entirely withdrawn and expended for the Approved Uses for the Approved Projects on or before September 30, 2005. For EDI grant funds used for the Approved Use in paragraph 2.c. (ii) of this Agreement (debt service reserve), such EDI grant funds are deemed to be "expended" for purposes of this paragraph 6.c. when the grant funds are deposited in the Recipient's account referred to in paragraph 2.c. (ii). d. Ail program income from this EDI Grant is deemed to be program income of the Approved Project(s), which are jointly financed by the Section 108 Guarantee. The Recipient agrees that all such program income constitutes security for the repayment of the Section 108 Guarantee, and shall be initially deposited in, the Loan Repayment Account established by the Recipient, or its designated public agency, under paragraph 6 of the Contract(s) for Loan Guarantee Assistance for the Section 108 Guarantee, and shall be disbursed for the purposes and within the time period specified in said paragraph 6 of such Contract. Upon full and complete repayment of the Section 108 Guarantee, all such program income shall be used in accordance with 24 CFR 570.504. 7. Pre-Award Costs. Notwithstanding any other provision of the Regulations, the EDI Grant funds provided hereunder may be used to pay for costs incurred on or after the date of HUD execution of the Funding Approval committing funds for the applicable Approved Project under the Section 108 Guarantee, provided such costs otherwise comply with this Agreement. However, use of the EDI Grant funds to actually pay for such costs is subject to paragraph 6 of this Agreement. 8. Amendment; Record-KeeDing. a. This Agreement or the Approved Application may be amended only with the prior written approval of HUD. To request approval of an amendment, the Recipient shall attach the proposed revisions to the applicable pages of this Agreement or the Approved Application to a cover letter addressed as required below (see par. 11) for notices to HUD and signed by the Recipient's official representative for this grant. In considering proposed amendments to this Agreement or the Approved Application, HUD shall review, among other things, whether the amendment would have affected the ranking of the application in the year it was approved sufficiently to have resulted in the application not ranking high enough for funding, and whether the amendment is otherwise consistent with the Act, the Regulations, and the NOFA. Any increase in the amount of the approved EDI Grant represents a new grant obligation by HUD and must be documented by a formal amendment to this Agreement, or a new BEDI Grant Agreement, executed on behalf of the parties by officials with the authority to execute the original Agreement. b. The Recipient shall at all times maintain an up-to-date copy of its Approved Application, including all amendments approved in writing by HUD, and all drawdowns, deposits, and expenditures of grant funds and program income under this Agreement, in its files and available for audit or inspection by duly authorized representatives of HUD or the Comptroller General of the United States. 9. Default; Remedies. A default under this Agreement shall consist of any use of grant funds other than as authorized by this Agreement, any other noncompliance with this Agreement deemed material by HUD, or any misrepresentation or omission in the application submissions which, if known to HUD, would have resulted in this grant not being provided. If HUD determines that the Recipient is in default, HUD will give the Recipient written notice of this determination and the corrective or remedial actions proposed by HUD to cure the default or mitigate its effects, to the extent possible, and to prevent a continuation or recurrence of the default (the ,,initial notice of default"). Further description of the processes of audit, performance monitoring, and the corrective and remedial actions available to HUD which apply to grants under the Act, including this EDI Grant, is provided in 24 CFR 570, particularly Subpart O. No delay or omission by HUD in exercising any right or remedy under this Agreement shall impair HUD's ability to exercise such right or remedy or constitute a waiver of, or acquiescence in, any Recipient default. 10. Close-out. Except as may be otherwise specifically provided, close-out of this grant shall be subject to 24 CFR 570.509, or such close-out instructions as may hereafter be issued by HUD specifically for EDI Grants. 11. Notices. HUD notifications to the Recipient under this Agreement may be addressed to the Recipient's address as stated in the Approved Application, unless the Recipient otherwise notifies HUD in writing. Recipient notifications to HUD shall be to the Director of Community Planning and Development in the HUD Office having responsibility for CDBG programs of the Recipient, unless the Recipient is otherwise notified in writing by HUD. The Recipient's rights under this Agreement may not be assigned without the prior written approval of HUD. This Agreement constitutes the entire Agreement between the Recipient and HUD, and it may not be amended except in writing and executed by authorized officials of both HUD and the Recipient, as provided in paragraph 8. 12. Bindinq Aqreement. This Agreement is binding with respect to HUD in accordance with its terms upon execution by HUD in the space provided below, subject to execution on behalf of the Recipient. 13. Special Condition(s). There are no special conditions. [Rest of Page Intentionally Left Blank] This Agreement is hereby executed on behalf of the parties as follows: AT'ST: ~ (Signature) City of ]~a~i~Beach. Florida RE( (Signature) Robert Parcher David Dermer (Name) (Name) City Clerk Mayor (Title) (Title) APPROVED AS TO FORM & LANGUAGE A FOR EXECUTe# (Date) F59-6000372 Employer Identification Number (EIN) of Recipient SECRETARY OF HOUSING AND URBAN (Signature) Nelson R. Breq6n (Name) Deputy Assistant Secretary For Grant Proqrams (Title) JAN B 0 200~ (Date)