195-95 RDA
RESOLUTION NO.
195-95
A RESOLUTION OF THE CHAIRMAN AND THE MEMBERS
OF THE BOARD OF THE MIAMI BEACH REDEVELOPMENT
AGENCY RATIFYING CITY COMMISSION AUTHORIZATION
TO SUBMIT AN AMENDED APPLICATION FOR A GRANT
UNDER THE ECONOMIC DEVELOPMENT INITIATIVE
(EDI) AND A SECTION 108 LOAN GUARANTEE FROM
THE U.S. DEPARTMENT OF HUD (HUD) UNDER TITLE I
OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT
OF 1974, AS AMENDED, IN ACCORDANCE WITH THE
DIRECTIVE FROM HUD DATED JANUARY 26, 1995 AND
WHICH INCLUDES A REQUEST FOR THE WAIVER OF
CDBG PRE-AGREEMENT COSTS IN THE AMOUNT OF
$1.13 MILLION, IN ORDER TO ASSIST IN THE
FINANCING AND DEVELOPMENT OF THE LOEWS HOTEL
PROJECT AND TO ESTABLISH A REVOLVING LOAN FUND
(RLF) FOR ECONOMIC DEVELOPMENT WHICH INVOLVES
MINORITY BUSINESSES.
WHEREAS, on September 15, 1994 the City of Miami Beach
submitted an application for assistance under the Economic
Development Initiative (EDI) in the amount of $1.9 million to
assist in the financing and development of two hotel proposals
located in the City Center/Historic Convention Village
Redevelopment Area; and
WHEREAS, the City was notified on October 5, 1994 by the
U.S. Dept. of Housing and Urban Development (HUD) that the City's
application for an Economic Development Initiative (EDI) grant was
awarded in the amount of $1 million; and
WHEREAS, receipt of EDI funds is contingent upon the City
submitting a formal application under the Section 108 Loan
Guarantee Program; and
WHEREAS, the City's application indicated that the
financing necessary for the two hotels was $12.67 million with $10
million earmarked for the acquisition of the Royal Palm and
Shorecrest Hotels (for the proposed site of the HCF hotel project)
and $2.67 million for the Loews hotel project; and
WHEREAS, a Notice of Funds Availability (NOFA) was
published for the Economic Development Initiative (EDI) from the
U.S. Department of HUD, announcing the availability of grants and
establishing a deadline of September 16, 1994 for submission; and
WHEREAS, subsequent to the award of the EDI grant it was
discovered that between the Royal Palm and Shorecrest hotels, the
relocation liability under the Federal Uniform Relocation Act could
exceed the $1 million potential grant; and
WHEREAS, the City asked HUD if they would permit an
amendment to the EDI grant application and subsequent Section 108
Loan application and if they would extend the City's submission
deadline to February 9, 1995; and
WHEREAS, U. S. HUD has now provided the City with written
guidance governing the submission of the amended EDI grant/Section
108 Loan application a copy of which is attached hereto as Exhibit
"A"; and
WHEREAS, HUD has determined that the City may now apply
for a Section 108 Loan of up to $14.87 Million of which $8.87
million would be for the proposed Loews Hotel proj ect and $6
million would be used to establish a Revolving Loan Fund (RLF) for
Economic Development which involves minority businesses; and
WHEREAS, HUD has determined that the City may now submit
an amended EDI grant application in the amount of $1 million of
which $400,000 would be for the proposed Loews Hotel project and
$600,000 would be used to establish the Revolving Loan Fund (RLF)
for Economic Development which involves minority businesses; and
WHEREAS, as described in HUD's letter they are willing to
consider from the City a request for a waiver of the regulations to
incur CDBG program related pre-agreement costs of up to 1.13
million for the Loews Hotel project thereby permitting the City to
pledge future CDBG funds for repayment of funds borrowed to carry
out the project; and
WHEREAS, this amended EDI grant/Section 108 Loan
application must be submitted to HUD on or before February 9, 1995;
and
WHEREAS, the Section 108 Loan has as collateral the
current and future CDBG program funds.
NOW THEREFORE BE IT RESOLVED BY THE CHAIRMAN AND MEMBERS
OF BOARD OF THE MIAMI BEACH REDEVELOPMENT AGENCY that the Miami
Beach Redevelopment hereby ratifies the actions of the Mayor and
City Commission authorizing the submission of an amended
application for a grant under the Economic Development Initiative
(EDI) and a Section 108 Loan Guarantee from the U.S. Department of
Housing and Urban Development (HUD) under Title I of the Housing
and Community Development Act of 1974, as amended, in accordance
with the directive from the U.S. HUD dated January 26, 1995 and
which includes a request for the waiver of CDBG pre-agreement costs
in the amount of $1.13 million, in order to assist in the financing
and development of the Loews Hotel project and to establish a
Revolving Loan Fund (RLF) for Economic Development which involves
minority businesses.
PASSED AND ADOPTED THIS
CHAIRMAN
FORM APPROVED
REDEVELOPMENT r~CENCY
GENERAL COU~~=::
ATTEST:
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SECRETARY
By
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