Loading...
HomeMy WebLinkAboutSEOPW-CRA-R-01-0079ITEM 9A SEOPW/CRA RESOLUTION NO. SEOPWCRA—GJ-- 79 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING THE EXECUTIVE DIRECTOR TO CLOSE THE FANNIE MAE LOAN IN ACCORDANCE WITH THE TERM SHEET PROVIDED BY FANNIE MAE, UNDER THE TERMS AND CONDITIONS ACCEPTABLE TO THE CITY ATTORNEY. WHEREAS, the Southeast Overtown/Park West Community Redevelopment Agency (the "CRA") is responsible for carrying out community redevelopment activities and projects in the Southeast Overtown/Park West Community. Redevelopment Area established pursuant to the CRA Redevelopment Plan, and WHEREAS, the CRA desires to authorize the Executive Director to close the Fannie Mae Loan in accordance with the term sheet provided by Fannie Mae, under the terms and conditions acceptable by the City Attorney. WHEREAS, the CRA Board of Director's have authorized the Community Redevelopment Agency to borrow $1,200,000 from Fannie Mae (the "Fannie Mae Loan") on such terms and conditions as are set forth in the term sheet provided by Fannie Mae under cover letter dated May 11, 2001, a copy of which is attached as Exhibit A, and further authorizes the Executive Director to enter into a loan agreement and execute such documents as may be necessary or requested in connection with the closing of the Fannie Mae Loan. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to the Resolution are incorporated herein as if fully set forth in this Section. Section 2. The CRA Board of Directors authorizes the Executive Director to enter into a loan agreement and execute such documents as may be necessary or requested in connection with the closing of the Fannie Mae Loan, under terms and conditions acceptable by the City Attorney. Section 3. The CRA Board of Directors hereby directs the Executive Director to include in each annual budget of the CRA for the next four years, starting with the budget for fiscal year ending 2002, three line items allocating tax increment revenues received by the CRA in connection with the Southeast Overtown Park West redevelopment areas as follows: a. A line item which establishes a reserve for annual principal payments of ATTACHMENT Ml CONTAINED $300,000; b. A line which establishes a reserve for accrued but unpaid interest; and c. A line item which establishes a reserve in an amount equal to 20% of the foregoing first and second line items (the "Additional Reserve") Sid imiCRC► 0 1 79 ITEM 9A SEOPW/CRA The Board of Directors further acknowledge that the foregoing three line items shall have priority overall other CRA budget uses for tax increment revenue except for debt service related to the 1990 Community Redevelopment Bonds for so long as any amounts are outstanding under the Fannie Mae Loan. Section 4. The Board of Directors authorizes the Executive Director to reallocate the annual amount budgeted for the Additional Reserve after the required annual payment of principal and interest pursuant to the terms of the Fannie Mae Loan. Section 5. This resolution shall be effective upon its adoption. PASSED AND ADOPTED this 25th day of June, 2001. Teele, Jr., Chairman Walter J. F City Clerk 01- 79 EXHIBIT A I'IHT 14 CYJkJ1 1CJ•CJ( rf\ ���--v � r'uvii� ��rn._. -•-•. •- ---- - ---- . i FannieMae May 11., 2001 Via Facsimile and U.S. Mail Mr. Dipak Parekh Executive Director City of Miami Community Redevelopment Agency 300 Biscayne Way Blvd. Suite 430 Miami, Florida 33131 Soutk"Swm Regional Officc 950 Easr Pacts Ferry Road Suirc 1900 AflanO, GA 30326-1161 404 39s boon Re: $1,200,000 Term Loan -- City of Miami Southeast Overtown Park West Redevelopment Agency Dear Mr. Parekh: We have had the opportunity to review the preliminary information you have provided to us in connection with your request for a $1,200,000 term loan (the "Proposed Loan") to be provided by the Fannie Mae American Communities Fund ("ACF") to the City of Miami Southeast Overtown Park West Redevelopment Agency ("Borrower"). After review of the preliminary information we are pleased to inform you that, subject to the following, ACF is interested in further pursuing the Proposed Loan. The attached term _-yet sets forth a preliminary summary of the terms and conditions we would like to discuss in connection with the Proposed Loan. The term sheet does not contain all of the terms essential to closing the Proposed Loan but rather will serve as the basis for future discussions. This letter and the term sheet constitute a letter of interest only. Either party is free to discontinue discussions or negotiations at any time. Please note that the term sheet is subject to review and approval by the ACF Investment Committee, which may modify the terms set forth in the term sheet or impose additional terms and conditions. If you would Iike to continue discussions based on the terms contained in the term sheet, please sign the enclosed copy of this letter where indicated below. In addition, please also sign the third page of this letter indicating your agreement to the confidentiality provisions set forth therein. Please return the M:IFOMR DoevM a1Ts\eraletterOfMtent_doc Ust Revised: IWO 1 1-IH I 1'y GCJYJl 1 CJ • Vl. 1 �� � ��.Y � � w v. a � i �� w_ 0 Page 2 of 3 fully signed letter to me on or before May 18, 2001. Only the confidentiality provisions impose any legally binding obligation on any party to this letter. If you have any questions, or if you would like to discuss any item set forth in this letter, please call me at 404-398-6145 as soon as possible. We look forward to working with you on this transaction. Sincerely, Fannie Mae American Communities Fund By: X.�Zv/ Name: Russell G. Foster Title: Community Development Director READ AND AGREED TO: City of Miami Southeast Overtown Park West Redevelopment Agency By: Name: Title: **This letter of intent and the attached term sheet is provided solely as a basis for discussion and is subject to change. It should not be construed as a binding commitment, but merely presented for your review and consideration" • Page 3 of 3 Confidentiality As a condition to and in consideration of Fannie Mae American Communities Fund's continuing discussions relating to the Proposed Loan, the parties hereby agree that any information provided (whether oral or written) by Fannie Mae to Borrower shall be treated as confidential by Borrower, its affiliates and their respective employees and agents and shall not be disclosed by Borrower, its affiliates and their respective employees and agents in any manner other than to lenders, partners, attorneys, consultants, and employees whose work, advice, consent or approvals are necessary to carry out the Proposed Loan or whose financial interests may be affected by the Proposed Loan; provided that all such persons shall be bound by the terms of this paragraph as if they had signed a copy of this letter of interest, and Borrower shall be directly responsible for any breach of such confidentiality provisions by any such persons. It is further understood and agreed that the Proposed Loan (and all of the terms of this letter of interest, as well as the negotiations related hereto and thereto) shall not be disclosed to the general public, and that no publicity or information relating to the same of any nature whatsoever be issued or provided in any manner to the press or any other parties until Fannie Mae shall agree to the content thereof and the timing of such disclosure(s). READ AND AGREED AS TO THE CONFIDENTIALITY PROVISIONS: City of Miami Southeast Overtown Park West Redevelopment Agency By: _ Name: Title: WFOSTER D0C1JMENTSkcca1e=0fintcnt.doc Iasi RcviwA: 3/2&0I i �� (Mj,_L 01- '79 MAY 14 2001 19:13 FR F"IE MAE 4043986285 TO 913053724646 P.02104 i TERM SHEET 1. Borrower: City of Miami Southeast Overtown/Park West Community Redevelopment Agency (the " CRA") 300 Biscayne Way Blvd. Suite 430 Miami, Florida 33131 Borrower is a quasi -governmental agency formed under the laws of the State of Florida 2. Project/Development: New Arena Square Apartments 3. Loan Amount: $1,200,000 4. Loan Type: Term Loan 5. Recourse: Full Recourse 6. Terms: a) Maturity Date/Term: Four year term b) ]interest Rate: Fixed; Rate not to exceed Prime + 1% c) Standby Fee: N/A d) Loan Origination Fee: 1/2% or $6,000 e) Payments/Principal Repayment: The Loan shall amortize over four years with annual payments of interest and principal which payments shall be mad upon the earlier to occur of (1) forty- five (45) days after the receipt of TiF revenue by the CRA or (2) three (3) days after each anniversary date of the closing of the Loan. 1) Prepayment: The Loan may be prepaid at any time without penalty. °* This term sheet is provided solely as a basis for discussion and is subject to change, it should not be construed as a binding commitment, but merely presented for review and consideration." 0 1 - SEOPW1 MHY 14 Z001 1 y; 16 FK F HNN I t M4_- I U y1Sk�J� lL4b4b F'. f� 1/t�4 • • 7. Collateral: $300,000, to be deposited in an account for the benefit of Fannie Mae and in which Fannie Mae will have a security interest. 8. Primary Repayment Source: Tax increment revenue received by the CRA from the City of Miami and Miami -Dade County for the Southeast Overtown/Park West ("SLO/PW") Redevelopment Area. 9. Additional Conditions: 1) The CRA shall provide Fannie Mae with detailed written reports (tbe "Reports") regarding the financial condition of the tax base of the SEO/PW Redevelopment Area on a semi-annual basis. The Reports shall include, but not be limited to the following: a) The total tax increment generated by the SEO/PW Redevelopment Area; b) The names of the top 20 payers of real estate taxes within the SEO/PW redevelopment area and the amount of the taxable value of their property. Changes in the real estate ownership from the prior reporting period should be noted; and c) Any pending real estate tax appeals from the top 20 owners of real estate property within the SEO/PW redevelopment area, including the number of appeals and the projected impact on tax increment receipts. 2) The CRA will covenant that it will not issue any bonds, notes or other obligations with a lien on tax increment revenue superior or on parity with the CRA's obligations under this Loan. 3) The CRA shall include in its annual budget for the next four years three line items allocating tax increment revenue received by the Fannie Mae, in order to repay the Loan as follows: ** This term sheet is provided solely as a basis for discussion and is subject to change; it should not be construed as a binding commitment, but merely presented for review and consideration." tmy SRUW /C1 4 01— � 11'iT j�'1 GYJv.Jj j7• l�l rR rl"N y1V 1C 1 �� YVYJ JOVGOJ 1 V JIJVJJI LY V"'.V I .""I J-t a) The first line item shall establish a reserve for annual principal payments of $300,000; b) The second line item shall be a reserve for accrued but unpaid interest, and c) The third line item shall establish a reserve in an amount equal to 20% of the foregoing first and second line items. Upon receipt by Fannie Mae of the required annual payment of principal and interest, the CRA shall be permitted to reallocate the amount in the third line item for other uses. The foregoing three line items shall have priority over all other CRA budget uses for tax increment revenue except for debt service related to the 1990 Community Redevelopment Bonds. This requirement shall be incorporated into the Loan documents and shall remain in place so long as any amounts are outstanding under the Loan. In addition the CRA shall include the foregoing as part of the resolution adopted by the Board of ComTnissioners authorizing this transaction. 10. CIosing Date: This loan must close on or before Friday, June 8, 2001, unless mutually agreed to by Fannie Mae and the CRA. 01- 79 This term sheet is provided solely as a basis for discussion and is subject to change; it should not be construed as a binding commitment, but merely presented for review and consideration." x:W TOTAL PAGE . e4 w-: r� EXHIBIT A • SEOPW/CRA n u �J • Hon. Vice -Chairman Winton and Members of the CRA Board Carlos Gimenez, City Manager Dipak Parekh. Executive Director. CRA Alex Vilarello. City Attorney William Bloom. CRA Special Counsel Arthur E. Teele, Jr. Chairman. CRA May 3, 2001 Arena Square Apartments Project: 1023 NW 3r'j Avenue. Owned by New Arena Square Apartments North and South. Ltd. Principal owner/owners rep: Solomon Yuken. Memorandum dated May 3, 2001 r � This memorandum will memoralize numerous previous discussion and board actions and further to express my concern about the lack of formality, structure, and the absence of documentation on the part of the CRA in the CRA's dealings with the subject property. BACKGROUND As you are aware, through personal relationship in Washington and with local Fannie Mae representative (Shallie Jones), in 1999 Fannie Mae made an informal commitment to me as Chairman of the CRA to provide $5MM410MM to support CRA development activities in Miami. At the CRA's request, Fannie Mae has formalized and implemented a $750,000 equity participation in the Poinciana Village Phase III project (24 units). As a result of this funding. the project was immediately restarted and ribbon cutting was held on November 15, 1999. At the CRA Board of Director's meeting held on December 18. 2000 via resolution SEOPW/CRA R-00-136, Fannie Mae publicly confirmed a $1.17 MM loan commitment to the CRA Board of Directors for the fundine of certain aspect of the redevelopment of the subject project (Total project cost approximately $6MM). Further the resolution authorizes the Executive Director to provide Encore Builder (the "Developer") up to $1.17 MM conditioned, among other things, to formalize an agreement with the Developer. Specifically. the $1.17 MM loan to the CRA, in turn is a grunt to the Developer, is to be used to totally redesign the facade, entrance ivays, enhance h2htin and security and to build out a street level commercial ace abutting 3r`' Avenue (D.A. Dorsev Wav) Implicit in this resolution is for the CRA Executive Director and CRA Special Counsel to carry out the Board's intent by approving the plans and drawings from the Developer to protect the CRA investment, and ensure compliance- of the CRA's goal and objectives regarding affordable commercial space for tenants. In addition, upon the completion of the project, the existing commercial tenants, or their assignees, are to be afforded the right to a long term lease (10 year lease) at the cun-ent term and conditions. However, a number of the affected tenants have complained wind provided sufficient evidence and public statements that their rights have not been adequately documented nor protected. (CRA staff corroborates these concerns) SEOPW/CRA Of particular note, the Developer has indicated their willingness to submit plans for approval • to the CRA provided the CRA can review, comment and return same within a very quick time to avoid and prevent "governmental" delays. In an open meeting of the CRA, I assured the Developer that the CRA review will be in the normal turn around time, and the CRA would not delay the project. I further stated in the record that such delays may in fact waive the CRA's right to review if not done in a timely manner. REQUESTED ACTION Citv of Miami By copy of this memorandum, I am specifically and respectfully requesting the following from the City of Miami Manager: 1. To facilitate the CRA's formal review in the plans and building review processes. 2. That a joint City/CRA project team be established for the project, through Certificate of Occupancy, under the leadership of an appropriate City official. 3. That an appropriate City staff person provide a status report at each CRA Board meeting commencing Monday, May 21, 2001 at 5:30 pm at the Miami Arena (VIP room) 4. To coordinate directly with the CRA Executive Director, CRA Consulting Engineer (designated in writing) and City Attomey'and with reference to #2 above, to include in the coordination loop, my designee as Chelsa Arscott whom can be reached at (305) 250-5390 or via email at carscotL0 c1.miami.H.Lis and to also include any such person designated by Board member Joe Sanchez, should he choose to designate any such person. 5. Accept my appreciation for your consideration and action of 1-4 above. CRA Executive Director, and Citv Attornev 1. To immediately appoint, upon receipt of this memorandum, an owners representative/consulting engineer for this project, from the eligible City of Miami Bid List, to represent the CRA in all phases of this project and to interface both with the City, the Developer, joint City/CRA project team and the CRA Board. The following firms are eligible (1) Kunde, Sprecher & Associates, Inc., (2) Corzo Castella Carballo Thompson Salman, P.A., (3) CarlanKillam consulting Group, Inc. (4) Metric Engineering, Inc. (5) H.J. Ross Associates, Inc. and (6) Milian, Swain & Associates, Inc. 2. In the past, I have specifically requested that we not utilize the current CRA Consulting Engineer because of the workload and time sensitive nature of this project: we must have.a single focus on this project. 3. That the principal or your written designee attend all meetings with the City and the joint City/CRA project team and work closely with theDeveloperwith the view of avoiding any delays attributable to the CRA or the City while at the same time maintaining a constant vigil to ensure that the CRA policies are respected and that the funding is protected. 4. That your offices cause that the joint City/CRA project team leader appear before the CRA Board to provide a status report until the project is completed 5. To cause the written documentation between the CRA and the Developer to be approved by the Board on May 21, 2001 and to be executed by the CRA Executive Director no later May 31. 2001. SEOPW/CRA , • CRA Board 1. Requesting that CRA Board take note of this memorandum and am requesting that Board Member Sanchez accept on designation as subcommittee Chairperson of the subject project. In this role, if accepted, Commissioner Sanchez, or his designee, will be kept informed by both City and CRA staff with regards to this project, and further will have informal coordination with Fannie Mae. 4--.1 a/J/ Cc: City Man r Attn: Assista t ity Manager John Jackson, Director of Public Works Ana Gelabert, Director, Planning and Zoning Hector Lima. Director, Building Department Walter Foeman, City Clerk Solomon Yuken, New Arena Square Apartments North and South, Ltd. Katrina Wright, Fannie Mae CRA Consulting Eneineer • C� S E� OPW/CRA Q,-- 79 • Commissioner Joe Sanchez • C:T, 01= 1i �J'Z.Jr1 • 1.NTCR-0FFICE NIEN10RANDUM May 3, 2001 Arthur E. Teele, Jr: Chairman, CRA Is' Memorandum Reference: Arena Square Apartments Project: 1023 NW 3"' Avenue. Owned by New Arena Square Apartments North and South. Ltd. Principal owner/owners rep: Solomon Yuken Please find attached a memorandum detailing the background information and requested tasks on the referenced project. I am respectfully requesting that you accept a designation.as Chairperson of a committee. to be established, to monitor the referenced project represented by Mr. Solomon Yuken. This appointment represents an opportunity for you to begin to interface with our Fannie Mae partner. In light of the recent City Commission action designating the next homeownership zone to be in your district. I think you will find this opportunity quite beneficial. Warmest regards. Cc: Hon. Vice -Chairman Winton Hon. Members of the CRA Board Dipak Parckh, Executive Director, CRA Alejandro Vilarello, City Attorney William Bloom. Special Counsel, CRA Walter Foeman, City Clerk SEOPW/GZA 01- "9 art Puilbrrs, ;4Jr#. 2921 N.W. 6th Ave. Miami, FL 33127 iTel. (305) 571-8353 Fax (305) 571-8357 Dear Gloria: Re: New Arena Suare 2191 N.W. 3` Avenue 255 N.W. 21 S` St. 268 N.W. 11`h St. Here are copies of the plans as requested, I'm sorry about the delay we were not able to get all the copies due to a failure in the printing office. You are nevertheless getting a copy of each permitted 'set. Your expeditious review will be greatly appreciated. Thank you, r Braulio Gutierrez, Pres. SE®PW/CR9 a 0tl 7� • u • 11 City ofMiami Community Redevelopment Agency To: Salomon Yuken Cc: Arthur E. Teele, Jr., Chairman From: Dipak M. Parekh, Executive Directo Date: May 14, 2001 Re: New Arena Square Apartment North and South LTD. Thank you very much for the plans delivered on Friday, May 11, 2001. 1 forwarded these plans to Cesar Calas at H. J. Ross Associate's, Inc. Please be aware that the CRA has to approve the plans prior to their being submitted to the City of Miami. If you have any additional questions, please feel free to contact me at (305) 579-3324. Thank again. SEOPW/CRC 01_ 79 N • RESOLUTION NO. SEOPW/CRA R-00-98 A RESOLUTION OF INTENT OF THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY ("CRA"). TO AUTHORIZE THE OWNER OF THE ARENA SQUARE APARTMENTS, JOINTLY WITH THE CRA, TO DEVELOP A PLAN FOR A $900,000.00 GRANT TO THE ARENA SQUARE APARTMENTS BASED ON A FIVE TO ONE LEVERAGE RATIO TO PAY FOR IMPROVEMENTS TO THE ARENA SQUARE APARTMENTS IN A MANNER CONSISTENT WITH THE THIRD AVENUE BUSINESS CORRIDOR AND THE OVERTOWN CHARRETTE SUBJECT TO THE IMPLEMENTATION OF AFFORDABLE HOUSING DEED RESTRICTIONS WITH RESPECT TO THE ARENA SQUARE APARTMENTS. WHEREAS, the City of Miami approved and adopted the Southeast • Overtown/Park West Community Redevelopment Plan pursuant to Resolution Nos. 82-755 and 85-1247 (the "Redevelopment Plan"); and WHEREAS, the CRA is responsible for carrying out community redevelopment activities and projects in the Southeast Overtown/Park West Redevelopment Area (the "Redevelopment Area") established pursuant to the Redevelopment Plan; and WHEREAS, the CRA desires that the owner of the Arena Square Apartments, jointly with the CRA, develop a plan for a $900,000.00 grant to the Arena Square Apartments based on a five to one leverage ratio to pay for improvements to the Arena Square Apartments in a manner consistent with the Third Avenue Business Corridor and the Overtown Charrette subject to the implementation of affordable housing deed restrictions with respect to the Arena Square Apartments. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are incorporated herein as if fully set forth in this Section. ��- 0 S0F,W 1 GRh?, — SEOPW/CRA 0 79 • • Section 2. The Board of Directors of CRA hereby authorizes the • owner of the Arena Square Apartments, jointly with the CRA, to develop a plan for a $900,000.00 grant to the Arena Square Apartments based on a five to one leverage ratio to pay for, improvements to the Arena Square Apartments in a manner consistent with the Third Avenue Business Corridor and the Overtown Charrette subject to the implementation of affordable housing deed restrictions with respect to the Arena Square Apartments. Section 3. The resolution shall be effective upon its adoption. PASSED AND ADOPTED on this 25th day of September, 2000. Arthur E. Teele, Jr., Chairman Z G man, City Clerk APPROVED AS TO FORM AND CORRECTNESS: Holland & Knight LLP CRA Legal Counsel IAMI #972505 vl • SEpPY0 _ SPOPW/CRA 2 01-� d ® ITEM 1113 SEOPW/CRA RESOLUTION NO. SEOPW/CRA 0 0 D A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY ("CRA") (1) APPROVING THE CONSTRUCTION OF EIGHTEEN TOWN HOUSES A ON THE PROPERTY KNOWN AS P-I AND (2) FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO ADVERTISE THE BID AND CHOOSE THE MOST RESPONSIVE BIDDER FOR THE CONSTRUCTION 'OH PHASE I ATTACHED HEREIN AS EXHIBIT A WITH THE FUNDING SOURCE OF $800K FROM CDBG HOME FUNDS, AND (3) CHOOSING THE SAME RESPONSIVE BIDDER FOR THE CONSTRUCTION OF PHASE 24 SUBJECT TO LOAN APPROVAL IN THE AMOUNT OF $1.1 MM FROM FANNIE MAE. WHEREAS, the City of Miami approved and adopted the Southeast Overtown/Park West Community Redevelopment Plan pursuant to Resolution Nos. 82-755 and 85-1247 (the "Redevelopment Plan"); and WHEREAS, the CRA is responsible for carrying out community redevelopment activities and projects in the Southeast Overtown/Park West Redevelopment Area (the "Redevelopment Area") established pursuant to the Redevelopment Plan; and WHEREAS, the CRA desires to approve the construction of eighteen Town Houses on the property known as P-1 and WHEREAS, the CRA desires to authorize the Executive Director to advertise the bid and choose the most responsive bidder for the construction of Phase I attached herein as Exhibit A with the funding source of $800k from CDBG HOME Funds, and WHEREAS, the CRA desires to choose the same responsive bidder for Phase I to do the construction of Phase 2-4 subject to loan approval in the amount of $1.1MM from Fannie Mae. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF MIAMI, FLORIDA SEOPW1C.JLP 00- 1.37 SEOPW / CRA 01- 79 r � ® ITEM 1113 SEOPW/CRA Section 1. The recitals and findings contained in the Preamble to this Resolution are incorporated herein as if fully set forth in this Section. Section 2. The Board of Directors of CRA hereby approves the construction of eighteen Town Houses on the property known as P-1. Section 3. The Board of Directors of CRA hereby authorizes .the Executive Director to advertise the bid and choose the most responsive bidder for the construction of Phase I attached herein as Exhibit A with the funding source of $800k from CDBG HOME Funds. Section 4. The Board of Directors of CRA hereby approves the same responsive bidder for Phase I to do the construction of Phase 2-4 subject to loan approval in the amount of $1.1MM from Fannie Mae. Section 5. The resolution shall be effective upon its adoption. PASSED AND ADOPTED on this 181b day of December, 2000. Arthur E. Teele, Jr., Chairman SP.OPW/CRh 0 0 - 137 SEOPW/CRA J_,, 7ZY APR-30-2001 12:39 CITY CLERKS OFFICE 305 BS8 1610 P.02i27 • L] J-01-212 3/20/01 RESOLUTION NO. A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO EXECUTE A REVOCABLE LICENSE AGREEMENT. ("AGREEMENT"), INSUBSTANTIALLY THE ATTACHED FORM, WITH NEW ARENA SQUARE NORTH & SOUTH, LTD. ("LICENSEE") FOR THE' USE OF APPROXIMATELY 1,167 SQUARE FEET OF SPACE IN THE OVERTOWN SHOPPING CENTER LOCATED AT 1490 NORTHWEST 3RD AVENUE, SPACE 210, MIAMI, FLORIDA FOR ADMINISTRATIVE OFFICES ON A MONTH -TO -MONTH BASIS, WITH LICENSEE PAYING 56.50 PER SQUARE FOOT TO THE CITY OF MIAMI, EQUALING $632.13 MONTHLY PLUS STATE USE TAX, IF APPLICABLE, WITH TERMS AND CONDITIONS SET FORTH IN THE AGREEMENT. WHEREAS, the City of Miami ("City") is owner of real property located at 1490 Northwest 3rd Avenue, Space 110, Miami, Florida, also known as the Overtown Shopping Center; and WHEREAS, the City Commission is committed to economic development within the target areas of the City of Miami, and particularly the continued development of the City -owned Overtown Shopping Center; and WHEREAS, Neck Arena Square North & South Ltd. wishes to enter into a Revocable License Agreement with the City for use of space SIE®PW/CRA s t -! f CPD ED Crry COMMSMON SING OF MAR 2 9, 2001 APR-30-2001 12:39 CITY CLERKS OFFICE 3e5_6-3o loio in the overtown Shopping Center to relocate 'its administrative offices in support of its development practices in the Overtown community, subject to the terms and conditions set forth in the Revocable License Agreement; 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 Manager is authorized!' to execute a Revocable License Agreement, in substantially the attached form, with New Arena Square North & South, Ltd. ("Licensee") for the use of approximately 1,167 square feet of space in the Overtown Shopping Center located at 1490 Northwest 3Id Avenue, Space 110, Miami, Florida for administrative offices on a month -to -month basis, with Licensee paying $6.50 per square foot to the City of Miami, equaling 5632.13 monthly plus state use tax, if applicable, with terms and conditions set forth in the Agreement. Section 3. This Resolution shall become effective immediately upon its adoption and -signature of the Mayor.?! The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney, including but not limited to those prescribed by applicable City Charter and Code provisions. 8� If the Mayor does not sign this Resolution, it shall become effective at the end of ten calendar days ,from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission. SE®F'W/CRA 2 S Page 2 of 3 APR-30-2001 12: 39 CITY Ci_ Ekk: ur r • e • PASSED AND ADOPTED this 29th day of March 2001. i 0 i II JOE CAROLLO, MAYOR sires, h Mayor not lndicaSe a pmwal of In sOCo�d3nce with i:�l,a.�n� Coda Sec. 2-3s, .. the yo (~, this In%lation by it In the designa►ed p! provided, said lenislaaon be?co r, 4il i\: Y-e;-N v'e -Nzpr.9 of ten ( n df m the to O CCttlmissIG n regardin sa a, %r.:Ilvul why May a {Si ► Y 40. ATTE,$T : Waxer J. Foe�r�ily Clbrk WALTER FOEMAN - CITY CLERK �► APPROVED A 0`4RM AND ORRECTNESS :Z/ ,J TT'A DR VILARELLO ATTORNEY v75132:LB:BSS Page 3 of 3 SEOPW/CRA 01- 4 .- 269 tr E J • r� REVOCABLE LICENSE AGREEMENT ISSUED BY THE CITY OF MIAMI TO NEW ARENA SQUARE NORTH & SOUTH LTD. FOR THE OCCUPANCY WITHIN THE PROPERTY LOCATED AT 1490 NORTH WEST THIRD AVENUE, SPACE 110 MIAMI, FLORIDA SEOPW/CRA a - A9 01- 269 CONTENTS 1. PURPOSE 1 2. OCCUPANCY AND USE PERIOD 1 3. CONTINUOUS DUTY TO OPERATE 2 4. INTEREST CONFERRED BY THIS AGREEMENT 2 5. MONTHLY FEE 2 6. LATE FEE 3 7. RETURNED CHECK FEE 3 8. SECURITY DEPOSIT 4 9. INCREASE OF SECURITY DEPOSIT 4 10. ADJUSTMENT TO MONTHLY FEE AND SECURITY DEPOSIT 5 11. CONDITION OF THE PROPERTY AND MAINTENANCE 5 12. SERVICES AND UTILITIES 6 13. ALTERATIONS, ADDITIONS OR REPLACEMENTS 7 14. VIOLATIONS, LIENS AND SECURITY INTERESTS 7 15. CITY ACCESS TO FACILITY 8 16. INDEMNIFICATION AND HOLD HARMLESS 9 17_ INSURANCE 9 18. NO LIABILITY 11 19. TAXES AND FEES 12 20. CANCELLATION BY REQUEST OF EITHER OF THE PARTIES WITHOUT CAUSE 12 21. TERMINATION BY CITY MANAGER FOR CAUSE 12 22. NOTICES 12 23. ADVERTISING 13 24. COMMON AREAS 14 25. OWNERSHIP OF IMPROVEMENTS 14 26. SURRENDER OF AREA 14 27. SEVERABILITY 15 28. NO ASSIGNMENT OR TRANSFER 15 29. NONDISCRIMINATION 15 2 Of- 269 SEOPW/CRA Q.- 79 • 30. AFFIRMATIVE ACTI% 31, MINORIT'YIWOMEN BUSINESS UTILIZATION 32. WAIVER OF JURY TRIAL 33. WAMR 34. AMENDMENTS AND MODIFICATIONS 35. COURT COSTS AND ATTORNEY(S)' FEES 36. COMPLIANCE WITH ALL LAWS APPLICABLE 37. ENTIRE AGREEMENT 38. RADON GAS 39. APPROVAL BY THE OVERSIGHT BOARD 3 SEOPW/ o i -- 15 16 16 16 16 16 17 17 IS �18 269 REVOCABLE LICENSE AGREEMENT This Revocable License Agreement ("Agreement") is made this day of 2001, between the City of Miami (the "City") a municipal corporation of the State of Florida and New Arena Square North & South Ltd., a for profit limited partnership organized under the laws of the State of Florida (the "Licensee"). NOW, THEREFORE, in order to carry out the intent as expressed herein and in consideration of the mutual agreements subsequently contained, the City and Licensee agree as follows: 1. PURPOSE. The City is the owner of real property and improvements thereon at 1490 NW 3rd Avenue, Miami, Florida, also known as the Overtown Shopping Center (the "Property"). The City has determined that approximately 1,167 square feet of space within the Property (the "Area") commonly known as Space 110, which is depicted in Exhibit "A" attached hereto and made a part hereof, is not needed at this time by any of the City's offices or departments. The. City has expressed its desire to assist the Licensee in accomplishing its purpose and in furtherance thereof authorizes the Licensee to occupy and use the Area under the conditions hereinafter set forth. The use of the Area is strictly limited for its administrative offices to provide support for its development practices, and is not to be used for any other purpose whatsoever (the "Permitted Use"). Any use of the Area not authorized under the Permitted Use must receive the prior written consent of the City Manager. This consent can be withheld for any or no reason, including, but not limited to additional financial consideration. 2. OCCUPANCY AND USE PERIOD. This Agreement shall commence on the date upon which the City Manager executes this Agreement (the "Effective Date") and shall continue until the first to occur of the following: a) cancellation or termination by the express written agreement of the parties • hereto; or SEOPWf 01- 269 f- • 0 b) cancellation or termination by request of any of the parties hereto, subject to • the notice provisions of "Cancellation By R.eauest of Either of Th Parties Without Cause". and "Termination By City Manager For Cause". 3. CONTINUOUS DUTY TO OPERATE Licensee, at all times during Licensee's use of the Area shall: 0 occupy the Area upon the Effective Date and shall thereafter continuously conduct operations in the Area in accordance with the terms of this Agreement; (ii) maintain an active status as a general and limited partnership: and (iii) from time to time, furnish the City with current disclosure information with respect to the identity of the general and limited partners of Licensee's partnership. 4. INTEREST CONFERRED BY THIS AGREEMENT. Licensee agrees that this Agreement has been issued by the City to authorize Licensee to occupy the Area solely for the limited purpose of operating its office operations therein and no other purpose. The parties hereby agree that the provisions of this is Agreement do not constitute a lease and the rights of Licensee hereunder are not those of a tenant but are a mere personal privilege to do certain acts of a temporary character and to otherwise use the Area subject to the terms of this Agreement. No leasehold interest in the Area is conferred upon Licensee under the provisions hereof and Licensee does not and shall not claim at any time any leasehold estate or ownership interest in the Area by virtue of this Agreement or its use of the Area hereunder. Additionally, Licensee does not and shall not claim at any time any interest or estate of any kind or extent whatsoever- in the Area by virtue of any, expenditure of funds by the Licensee for improvements, construction, repairs, partitions or alterations to the Area which may be authorized by the City. 5. MONTHLY FEE. In consideration for this Agreement, Licensee agrees to pay to the City for the use of the Area the rate of $6.50 per square foot for a Monthly Fee in the amount of Six Hundred Thirty Two and 131100 Dollars ($632.13) plus State Use Tax, 'if applicable, which shall be paid in advance and in full on the first day of each' month, without notice or demand (the • "Monthly Fee"). Payments shall be made payable to "City of Miami" and sball be mailed to 2 SEOPW/cCRA O U I - �1 269 • • • nd hF Finance tment Miami Florida 33130, or such other 444 S.W. 2 Avenue, 6 Floor, Fina Depaz , address as may be designated from time to time. 6. LATE FEE. In the event any installment of the Monthly Fee is not received by the City within five (5) days after it becomes due, Licensee shall pay to City a late charge of ten percent (10%) of the amount due. Such late fee shall constitute additional fees due and payable to City by Licensee upon the date of payment of the delinquent payment referenced above. Acceptance of such late charge by City shall not, constitute a waiver of Licensee's violations with respect to such overdue amount nor prevent City from the pursuit of any remedy to which City may otherwise be entitled. 7. RETURNED CHECK FEE. In the event any check is returned to the City as uncollectible, the Licensee shall pay to City a returned check fee (the "Returned Check Fee") based on the following schedule: Returned Amount Returned Check Fee $00.01 - 50.00 $20.00 $50.01 - 300.00 $30.00 $300.01 • 800.00 $40.00 OVER $800 5% of the returned amount. Such returned check fee shall constitute additional fees due and payable, to City by Licensee, upon the date of payment of the delinquent payment referenced above. Acceptance of such returned check fee by City shall, in no event, constitute a waiver of Licensee's violations with respect to such overdue amount nor prevent City from the pursuit of any remedy to which City may otherwise be entitled. 8. SECURITY DEPOSIT. Licensee shall deposit with City the sum of One Thousand Eight Hundred Ninety Six and 39/100 dollars ($1,896.39) (the "Security") as guarantee for the full and faithful performance by Licensee of all obligations of Licensee under this Agreement or in 3 SEOPWiR 0 'A "� connection with this Agreement. Licensee shaIl pay the Seely Deposit commencing on the Effective Date of this Agreement along with the Monthly Use Fee payment due on the Sfirst of the month. If Licensee is in violation (as provided in "Termination by City Manae`er For Cause") beyond any applicable notice or cure period, the City may use, apply or retain all or any part of the Security for the payment of W any fee or other sum of money which Licensee was obligated to pay but did not pay, (ii) any sum expended by City on Licensee's behalf in accordance with the provisions of this Agreement, or Gii) any sum which City may expend or be required to expend as a result of Licensee's violation. Should the City use, apply or retain all or any part of the Security, the Licensee shall reimburse the amounts used, applied or retained within thirty (30) days of written notice by City. The use, application or retention of the Security or any portion thereof by City shall not prevent City from exercising any other right or remedy provided for under this Agreement or at law and shall not limit any recovery to which City may be entitled otherwise. Provided Licensee is not in violation of this Agreement, the Security or balance thereof, as the case may be, shall be returned to Licensee upon the termination of this Agreement or upon any later date after which Licensee has vacated the Area in the same • condition or better as existed on the Effective Date, ordinary wear and tear excepted. Upon the return of the Security (or balance thereof) to the Licensee, City shall be completely relieved of liability with respect to the Security. Licensee shall not be entitled to receive any interest on the Security. 9. INCREASE OF SECURITY DEPOSIT If Licensee is in default under this Agreement more than two (2) times within any twelve (W month period, irrespective of whether or not such default is cured, then, without limiting City's other rights and remedies provided for in this Agreement or at law or equity, the Security shall automatically be increased by three (3) times the Security then in place. This increase shall be paid by Licensee to City forthwith on demand. 10. ADJUSTMENT TO MONTHLY FEE, LATE FEE, AND SECURITY DEPOSIT Commencing twelve months from the Effective Date, or on the first day of the following month if the Effective Date is not on the first of the month, and every twelve months thereafter (the "Anniversary Date(s)"), Licensee agrees that the Monthly Fee and • 4 SE®PW/ G _ 01- 269 • i Security shall be increased by five percent (5%) of the Monthly Fee and Security • respectively, in effect for the immediately preceding Agreement Year. For purposes of this Agreement, Agreement Year shall mean any period of time consisting of twelve (12) consecutive calendar months commencing on the Effective Jute and each anniversary thereafter. On each Anniversary Date the Licensee shall remit payment to the City for the increased amount in Security. Nothing in this paragraph shall be construed to grant Licensee the right to use or occupy the Area for a term greater than on a month"to-month basis. 11. CONDITION OF THE PROPERTY AND MAINTENANCE. A. Licensee accepts the Area "as is", in its present condition and state of repair and without any representation by or on behalf of City, and agrees that City shall, under no circumstances, be liable for any latent, patent or other defects in the Area. Licensee, at its sole cost, shall maintain the Area in good order and repair at all times and in an attractive, clean, safe and sanitary condition and shall suffer no waste or injury thereto. B. Licensee shall be responsible for all repairs to the Area required or caused by Licensee's use of any part thereof without limiting the generality of the foregoing, Licensee is specifically required to replace all light bulbs and ballasts as needed, and make repairs W to the portion of any pipes, lines, ducts, wires or conduits contained within or serving the Area; (ii) to windows, plate glass, doors and any fixtures or appurtenances composed of glass; (iii) to Licensee's sign, if applicable; (iv) to the Area or the Property when repairs to same are necessitated by any act or omission of Licensee or the failure of Licensee to perform its obligations under this Agreement. C. Licensee agrees to make all changes necessary to the Area at Licensee's sole cost and expense in order to comply with all City, County and ' State building code requirements for Licensee's occupancy thereof. D. If Licensee installs any electrical equipment that overloads the lines in the Area or the Property, City may require Licensee to make whatever changes to the lines as may be necessary to render same in good order and repair, and in compliance with all applicable legal requirements. E. If, in an emergency, it shall become necessary to make promptly any repairs • or replacements required to be made by Licensee, City may reenter the Area and proceed S SEOPWiCRA" forthwith to have the repairs or replacements made and pay the cost thereof. Within thirty (30) days after City renders a ball therefore, Licensee shall reimburse City for the cost of making the repairs. 12. SERVICES AND UTILITIES. Licensee shall pay for all utilities, including but not limited to, electricity, water, stormwater fees, gas, telephone, garbage and sewage disposal used by Licensee during its occupancy of the Area, as well as all costs for installation of any lines and equipment necessary. Licensee, at its sole cost, shall install all utilities required for its use and install separate utility_ meters required thereby and shall be billed directly by the applicable utility company for such services. Until such time that Licensee's actual water and sewer consumption may be calculated, Licensee agrees to pay to the City, in addition to its Monthly Fee, an amount of $_50 per square foot or Forty Eight Dollars and 63/100 ($48.631 per month plus State Use Tax, if applicable ("Water Fee"). This amount shall be paid in advance and in full on the first day of each month, without notice or demand. Licensee shall pay to the City the first installment of the Water Fee on the first (1=t ) day of the month following the Effective Date of this Agreement and thereafter on the first (lit) day of each and every month that Licensee continues to occupy and use the Area. The City reserves the right to interrupt, curtail or suspend the provision of any utility service, including but not limited to, heating, ventilating and air conditioning systems and equipment serving the Area, to which Licensee may be entitled hereunder, when necessary by reason of accident or emergency, or for repairs, alterations or improvements in the judgment of the City desirable or necessary to be made, or due to difficulty in obtaining supplies or labor, or for any other cause beyond the reasonable control of the City. The work of such repairs, alterations or improvements shall be Prosecuted with reasonable diligence. The City shall in no respect be liable for any failure of the utility companies or governmental authorities to supply utility service to Licensee or for any limitation of supply resulting from governmental orders or directives. Licensee • shall not claim any damages by reason of the City's or other individual's interruption, a 6 SEOPW/CRAi 0 01- 79 curtailment or suspension of a utility service, nor shafthe Revocable License or any of Licensee's obligations hereunder be affected or reduced thereby. Licensee, at its sole cost, shall provide cleaning services for the Area. Licensee, at its sole cost and expense, shall hire a pest control company, as needed, to insure that the Area will at all times be in a clean and sanitary condition and free from vermin. Licensee agrees to provide any and all security it deems necessary to protect its operations and equipment. Licensee shall insure that all appropriate equipment and lights have been turned off and appropriate doors locked at the close of operations within the Area each day. 13. ALTERATIONS, ADDITIONS OR REPLACEMENTS. Except in the event of an emergency, Licensee shall not make any repair or alteration required or permitted to be performed by Licensee without first receiving the written approval of the City Manager, which- approval may be conditioned or withheld for any or no reason whatsoever, including a condition to pay additional fees if .such alteration will affect the cost of services being provided by the City. If City approves such request, no repair or alteration shall be commenced until plans and specifications therefore shall have been submitted to and approved by the City Manager. In the event of an emergency, Licensee shall reasonably proceed to perform such repair work and shall immediately notify the City of such work, 14. VIOLATIONS, LIENS AND SECURITY INTERESTS. Licensee, at its expense and with due diligence and dispatch, shall secure the cancellation or discharge of or bond off same in the manner permitted by law, all notices of violations arising from or otherwise in connection with Licensee's improvements or operations in the Area which shall be issued by any public authority having or asserting jurisdiction. Licensee shall promptly pay its contractors and materials men for all work and labor done at Licensee's request. Should any such lien be asserted or filed, regardless of the validity of said liens or claims, Licensee shall bond against or discharge the same within fifteen (15) calendar days of Licensee's receipt of notice of the filing of said encumbrance. In the event Licensee fails to remove or bond against said lien by paying the full amount claimed, Licensee shall pay the City upon demand any amount paid out by i • r SEOPwiC.A. 9 -- 269 NJ ,� City, including A y Is costs, expenses and reasonable®ttorneys' fees. Licensee further agrees to hold City harmless from and to indemnify the City against any and all claims, demands and expenses, including reasonable attorney's fees, by reason of any claims of any contractor, subcontractor, material man, laborer or any other third person with whom Licensee has contracted or otherwise is found liable for, in respect to the Area. Nothing contained in this Agreement shall be deemed, construed or interpreted to imply any consent or agreement on the part of City to subject the City's interest or estate to any liability under any mechanic's or other lien asserted by any contractor, subcontractor, material man or supplier thereof against any part of the Area or any of the improvements thereon and each such contract shall provide that the contractor must insert a statement in any subcontract or purchase order that the contractor's contract so provides for waiver of lien and that the subcontractor, material man and supplier. agree to be bound by such provision. 15. CITY ACCESS TO FACILITY. City and its authorized representative(s) shall have at all times access to the Area. City will maintain a complete set of keys to the Area. Licensee, at its sole cost and expense, may duplicate or change key locks but not until first receiving written approval _ from the Director of Asset Management (hereinafter referred to as "Director") for such work. In the event Licensee changes key locks as approved by the Director, Licensee, at its sole cost and expense, must also provide a copy of said keys to the City. The City shall have access to and entry into the Area at any time to (a) inspect the Area, (b) to perform any obligations of Licensee hereunder which Licensee has failed to perform after written notice thereof to Licensee, Licensee not having cured such matter within ten (10) days of such notice, W to assure Licensee's compliance with the terms and provisions of this Agreement and all applicable laws, ordinances, rules and regulations and (d) for other purposes as may be deemed necessary by the City Manager in the furtherance of the City's corporate purpose: provided, however, that City shall make a diligent effort to provide at least 24-hours advance notice and Ucensee shall have the right to have one or more of its representatives or employees present during the time of any such entry. The City shall not be liable for any loss, cost or damage to the Licensee by reason of the exercise by the City of the right of entry described herein for the purposes listed above. The making g 0 � 269 s>✓O��iC� • of periodic inspection or the failure to do so shall not to impose upon City any liability of any kind whatsoever nor relieve the Licensee of any responsibility, obligations soor liability assumed under this Agreement. 16. INDEMNIFICATION AND HOLD HARMLESS. The Licensee shall indemnify, hold harmless and defend the City from and against any and all claims, suits, actions, damages or causes of action of whatever nature arising during Licensee's use and occupancy of the Area, for any personal injury, loss of life or damage to personal property and/or real property sustained in or on the Area, by reason of or as a result of Licensee's use or operations thereon, and from and against any orders, judgments or decrees which may be entered thereon, and from and against all costs, attorney's fees, expenses and liabilities incurred in an about the defense of any such claims and the investigation thereof; even if the claims, costs, liabilities, suits, actions, damages or causes of action arise from the negligence or alleged negligence of the City, including any of its employees, agents, or officials. Licensee further acknowledges that, as lawful consideration for being granted the right to utilize and occupy the Area, Licensee, on behalf of himself, his agents, invitees and employees, does hereby release from any legal liability the City, its officers, agents and employees, from any and -all claims for injury, death or property damage resulting from Licensee's use of the Area. 17. INSURANCE. Licensee, at its sole cost, shall obtain and maintain in full force and effect at all times throughout the period of this Agreement, the following insurance coverage: A. Commercial General liability insurance on a Comprehensive General liability coverage form, or its equivalent, including premises, operations and contractual coverage's against all claims, demands or actions for bodily injury, personal injury, death or property damage occurring in .or about the Area with such limits as may be reasonably requested by the City from time to time but not less than $1,000,000 per occurrence combined single limit for bodily injury and property damage. The City shall be named as Additional Insured on the policy or policies of insurance. s 9SEOPW./CRA:, 1- 269 Off.- 79, __ _ __ __ _ _-.. � ru urri`c 305 858 1610 P.172 B. Automobile liability insurance covering all owned, non -owned and hired vehicles used in conjunction with operations covered by this agreement. The policy or policies of insurance shall contain a combined single limit of -at least $500,000 for bodily injury and property damage. The requirements of this provision will be waived upon submission of a written statement from Licensee that no automobiles are used to conduct business. C. "All Risk" property insurance against loss or damage by fire, windstorm, with such endorsements for extended coverage, vandalism, malicious mischief, flood and special coverage, insuring 100% of the replacement cost of Licensee's improvements, fixtures, equipment, furniture and all other personal property -in and about the Area. This requirement may be waived provided that Licensee executes a full release holding the City harmless for any damages incurred by Licensee due to the above mentioned causes as defined in a standard All Risk policy. D. Worker's Compensation in the form and amounts required by State law. E. The City's Department of Risk Management, reserves the right to reasonably amend the insurance requirements by the issuance of a notice in writing to Licensee. The Licensee shall provide any other insurance or security reasonably required by the City. F. The policy or policies of insurance required shall be so written that the policy or policies may not be canceled or materially changed without thirty (30) days advance written notice to the City. Said notice should be delivered to the City of Miami, Division of Risk Management, 444 SW 2 Avenue, 91h Floor, Miami, Florida 33130, with copy to City of Miami, Office of Asset Management, 444 SW 2 Avenue, 3rd Floor, Miami, Florida 33130, or such other address that may be designated from time to time. G. A current Evidence and Policy of Insurance evidencing the aforesaid required insurance coverage shall be supplied to the Office of Asset Management of the City at the commencement of the term of this Agreement and a new Evidence and Policy shall be supplied at least twenty (20) days prior to the expiration of each such policy. Insurance policies required above shall be issued by companies authorized to do business under the laws of the State, with the following qualifications as to management and financial strength: the company should be rated "A" as to management, and no less than class "X" as to financial strength, in accordance with the latest edition of Best's Kev $atine Guide, 10 SEOPW / C'1RA: or the company holds a valid Florida Certificate of Authority issued by the State of Florida, Department of Insurance, and is a member of the Florida Guarantee Fund. Receipt of any documentation of insurance by the City or by any of its representatives, which indicates less coverage than required, does not constitute a waiver of the Licensee's obligation to fulfill the insurance requirements herein. In the event Licensee shall fail to procure and place such insurance, the City may, but shall not be obligated to, procure and place same, in which event the amount of the premium paid shall be paid by Licensee to the City as an additional fee upon demand and shall in each instance be collectible on the first day of the month or any subsequent month following the date of payment by the City. Licensee's failure to procure insurance shall in no way release Licensee from its obligations and responsibilities as provided herein. 18. 1 NO LIABILITY. In no event shall the City be liable or responsible for damage to the personal property, improvements, fixtures and/or equipment belonging to or rented by Licensee, its officers, agents, employees, invitees or patrons, including without limitation, damages • resulting from fire, steam, electricity, gas, water, rain, vandalism or theft which may leak or flow from or into any part of the Area, or from the breakage, leakage, obstruction or other defects of the pipes, sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures of the Area, or from hurricane or any act of God or any act of negligence of Licensee, its officers, employees, agents, invitees, or patrons or any person whomsoever whether such damage or injury results from conditions arising at or about the Area or upon other portions of the Property or from other sources. 19. TAXES AND FEES. Licensee shall pay before any fine, penalty, interest or costs is added for nonpayment, any and all charges, fees, taxes or assessments levied against the Area and/or against any occupancy interest or personal property of any kind, owned by or placed in, upon or about the Area by Licensee, including, but not limited to, ad valorem taxes. In the event Licensee appeals a tax or fee, Licensee shall immediately notify City of its intention to appeal said tax or fee and shall furnish and keep in effect a surety bond of a responsible and substantial surety company reasonably acceptable to City or other security reasonably fDPW/ CRA 0 • satisfactory to City in an amount sufficient to pay one hundred percent of the contested tax or fee with all interest on it and costs and expenses, including reasonable attorneys' fees, to be incurred in connection with it. 20. CANCELLATION BY REQUEST OF EITHER OF THE PARTIES WITHOUT CAUSE. Either party may cancel this Agreement at any time by giving Written notice to the non-cancehng party thirty (30) days prior to the effective date of the cancellation_ 21. TERMINATION BY CITY MANAGER FOR CAUSE.. ' If Licensee in any manner violates the restrictions and conditions of this Agreement, then, and in the event, after ten (10) days written notice given to Licensee by the City Manager within which to cease such violation or correct such deficiencies, and upon failure of Licensee to do so after such written notice within said ten (10) day period, this Agreement shall be automatically canceled without the need for further action by the City. 22. NOTICES. All notices or other communications which may be given pursuant to this Agreement shall be in writing and shall be deemed properly served if delivered by personal service or by certified mail addressed to City and Licensee at the address indicated herein or as the same may be changed from time to time or for purposes of canceling this Agreement, the City may serve notice by posting it at the Area. Such notice shall be deemed given on the day on which personally served, or if by certified mail, on the fifth day after being posted or the date of actual receipt, whichever is earlier: CITY OF MIAMI City of Miami City Manager 444 SW 2nd Avenue, 10th Floor Miami, FL 33130 e LICENSEE New Area Square North & South Ltd. Attention: Solomon Yuken 1023 NW 3rd Avenue Miami, Florida 33136 12 SEOPW/CRA 0j_-" . 91- 269 COPY TO City of Miami City of Miami Asset Management Division City Attorney 444 SW 2 Avenue, Suite 325 444 SW 2 Avenue, 9�h Floor Miami, FL 33130 Miami, FL 33130 23. ADVER.TISING. Licensee shall not permit any signs or advertising matter to be placed either in the interior or upon the exterior of the Area without having first obtained the approval of the Director, which approval may be withheld for any or no reason, at his/her sole discretion. Licensee shall, at its sole cost and expense, install, provide, and maintain such sign, decoration, advertising matter or other things as may be permitted hereunder in good condition and repair at all times. Licensee must further obtain approval . from all governmental authorities having jurisdiction, and must comply with all applicable requirements set forth in the City of Miami Code and Zoning Ordinance. Upon the cancellation of this Agreement, Licensee shall, at its sole cost and expense, remove any sign, decoration, advertising matter or other thing permitted hereunder from the Area. If any part of the Area is in any way damaged by the removal of such items, said damage shall be repaired by Licensee at its sole cost and expense. Should Licensee fail to repair any damage caused to the Area within ten (10) days after receipt of written notice from City directing the required repairs, City shall cause the Area to be repaired at the sole cost • and expense of Licensee. Licensee shall pay City the full cost of such repairs within ten (10) days of receipt of an invoice indicating the cost of such repairs. Licensee hereby understands and agrees that the City may, at its sole discretion, erect or place upon the Area an appropriate sign indicating City's having issued this Agreement. .24. COMMON AREAS. Licensee shall have the nonexclusive right (in common with other occupants of the Property) to use the Common Areas of the Property identified as "Common Area" in Exhibit "A" attached hereto and made a part hereof, for the purposes intended, subject to such rules and regulations as City may establish from time to time_ 13 SEOPW/CR.A 01— 269 21/2 25. OWNERSHIP OF IMPROVEMENTS. As of the Effective Date and throughout the Use Period, all buildings and improvements thereon shall be vested in City. Furthermore, title to all Alterations made in or to the Property, whether or not by or at the expense of Licensee, shall, unless otherwise provided by written agreement, immediately upon their completion become the property of the City and shall remain and be surrendered with the Property. 26. SURRENDER OF AREA. In either event of cancellation pursuant to "Cancellation By Request Of Either Of The Parties Without Cause" or "Termination By City Manaeer For Cause", or at the expiration of the time limited by the notice, Licensee shall peacefully surrender the Area broom clean and in good condition and repair together with all alterations, fixtures, installation, additions and improvements which may have been made in or attached on or to the Area. Upon surrender, Licensee shall promptly remove all its personal property, trade fixtures and equipment and Licensee shall repair any damage to the Area caused thereby. Should Licensee fail to repair any damage caused to the Area within ten (10) days • after receipt of written notice from City directing the required repairs. City shall cause the Area to be repaired at the sole cost and expense of Licensee. Licensee shall pay City the full cost of such repairs within ten (10) days of receipt of an invoice indicating the cost of such required repairs. City may require Licensee to restore the Area so that the Area shall be as it was on the Effective Date. In the event Licensee fails to remove its personal property, equipment and fixtures from the Area within the time limit set by the notice, said property shall be deemed abandoned and thereupon shall become the sole personal property of the City. The City, at its sole discretion and without liability, may remove and/or dispose of same as City sees fit, all at Licensee's sole cost and expense. 27. SEVERABILITY. Should any provisions, paragraphs, sentences, words or phrases contained in this Agreement be determined by a court of competent jurisdiction to be invalid, illegal or otherwise unlawful under the laws of the State of Florida or the City, such provisions, paragraphs, sentences, words or phrases shall be deemed modified to the extent necessary 14 01- 269 0 79 in order to conform with such laws, and the same may be deemed severable by the City, and in such, event, the remaining terms and conditions of this Agreement shall remain unmodified and in full force and effect. 28. NO ASSIGNMENT OR TRANSFER. Licensee cannot assign or transfer any privilege of occupancy or use granted to it by this Agreement. 29. NONDISCRIMINATION. Licensee shall not discriminate as to race, color, religion, sex, national origin, age, disability or marital status in connection with its occupancy and use of the Area and improvements thereon. 30. AFFIRMATIVE ACTION. Licensee shall have in place an Affirmative Action/Equal Employment Opportunity Policy and shall institute a plan for its achievement which will require that action be taken to provide equal opportunity in hiring and promoting for women, minorities, the disabled and veterans. Such plan will include a set of positive measures which will be taken to insure nondiscrimination in the work place as it relates to hiring, firing, training and promotion. In lieu of such a policy/plan, Licensee shall submit a Statement of Assurance indicating that its operation is in compliance with all relevant Civil Rights laws and regulations. 31. MINORITY/WOMEN BUSINESS UTILIZATION. Licensee shall make every good faith effort to purchase/contract fifty-one percent (51%) of its annual goods and services requirements from Hispanic, Black and Women businesses/professionals registered/certified with the City Office of Minority/Women Business Affairs. Such lists will be made available to the Licensee at the time of the issuance of the Agreement by the City and updates will be routinely provided by the City's Office of Minority/Women Business Affairs. 15 S]E0FW/CRA . - ��; . al- 269 32. WAIVER OF JURY TRIAL. The parties hereby knowingly, irrevocably, voluntarily and intentionally waive any • right either may have to a trial by jury in respect of any action, proceeding or counterclaim based on this Agreement, or arising out of, under or in connection with this Agreement or any amendment or modification of this Agreement, or any other agreement executed by and between the parties in connection with this Agreement, or any course of conduct, course of dealing, statements (whether verbal or written) or actions of any party hereto. This waiver of jury trial provision is a material inducement for the City and Licensee entering into the subject transaction. 33. WAIVER. No failure on the part of the City to enforce or insist upon performance of any of the terms of this Agreement, nor any waiver of any right hereunder by the City, unless in writing, shall be construed as a waiver of any other term or as a waiver of any future right to enforce or insist upon the performance of the same term. 34. AMENDMENTS AND MODIFICATIONS. No amendments or modifications to this Agreement shall be binding on either party unless in writing, signed by both parties and approved by the City Manager. The City Manager is authorized to amend or modify this Agreement as needed. 35. COURT COSTS AND ATTORNEY(S)' FEES. In the event it becomes necessary for the City to institute legal proceedings to enforce or interpret the provisions of this. Agreement, Licensee shall pay the City's court costs and attorney's fees through all trial and appellate levels. Licensee acknowledges that Florida law provides for mutuality of attorney's fees as a remedy in contract cases and specifically and irrevocable waives its right to collect attorney's fees from the City under applicable laws, including specifically, but not limited to Section 57.105, Florida Statutes. It is the express intent of the parties hereto that in no event will the City be required to pay Licensee's attorney's fees and court costs for any action arising out of this Agreement. In the event that Licensee's waiver under this section is found to be invalid then Licensee agrees that the City's liability for Licensee's attorney's fees and court costs shall not exceed • n _ 16SEOPW/CRA 0 269 01- 79 the sum of $100.00. In the event that the waiver and limitations contained herein are found to be invalid, or are otherwise not upheld, then the provisions of this Section shall become null and void and each party shall be responsible for its own attorney's fees and costs. 36, COMPLIANCE WrM ALL LAWS APPLICABLE. Licensee accepts this Agreement and hereby acknowledges that Licensee's strict compliance with all applicable federal, state and local laws, ordinances and regulations is a condition of this Agreement, and Licensee shall comply therewith as the same presently exist and as they may be amended hereafter. This Agreement shall be construed and enforced according to the laws of the State of Florida. 37. ENTIRE AGREEMENT. This instrument and its attachments constitute the sole and only agreement of the parties hereto and correctly sets forth the rights, duties and obligations of each to the other as of its date. Any prior agreements, promises, negotiations or representations not expressly set forth in this Agreement are of no force or effect. This Agreement is the result of negotiations between the parties and has been typed/printed by one party for the convenience of both parties, and the parties covenant that this Agreement shall not be construed in favor of or against either of the parties. 38. RADON GAS. Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from your county public health unit. User may, have an appropriately licensed person test the Property for radon. If the radon level exceeds acceptable EPA standards, the City may choose to reduce the radon level to an acceptable EPA level, failing which either party may cancel this Agreement. • 17 sEO�A� O 1— 269 01— �r .� e • 39. APPROVAL BY THE OVERSIGHT BOARD. The State of Florida has appointed an Emergency Financial Oversight Board (the "Oversight Board"), which is empowered to review and approve all pending City of Miami contracts. As a result, contracts shall not be binding on the City until such time as they have been approved by the Oversight Board. Attestation of this Agreement by the City Clerk shall constitute evidence of approval by the Oversight Board. IN WITNESS WHEREOF, the parties hereto have executed this Agreement of the day and year first above written. ATTEST: Walter Foeman City Clerk APPROVED AS TO INSURANCE REQUIREMENTS: Mario Soldevilla Division of Risk Management CITY OF MTAMT, a municipal corporation of the State of Florida By: Carlos A. Gimenez City Manager APPROVED AS TO FORM AND CORRECTNESS: Alejandro Vilarello City Attorney Is - 269 SEOI?W/r- 0- 79 WITNESS: • Signature Print Name Signature Print Name • • LICENSEE: 0 New Arena Square Corporation, as General Partner of New Arena Square North & South Ltd. Signature Print Name Print Title 19 SE&W/C , 01- 71,9 9j.- 269 U] 0 0 • 07UTOWN SUOPPING CENTER 1490 NW 3rd Avenue hiaxi, Florida ,An K WC - A, X 'n c -If 7 CA'AWr-:" 4 329 f let. 2 * p '495 tp 7 31% ti 19,265 sf . 1,167 sf 3.422 1,505 sf 4.412 1,593 of _-**� AZ.." 41.031 5.265 sf 0-63Z I t. XI: Jjj;4 A .9-A Tit sg6pw/cp,A' 01- 79 I clan TOTAL P.2 Feb-2B-01 03:57P P.02 • ENCORE BUILDERS INC. 2921 NW 61'Fi AVE. MIAM1, FL. 33127 NEW ARENA SQUARE NORTH & SOUTH, Ul-D 275 N.W. 10"' ST. & 268 N.W I I"' ST.MIAMI, Ff. 33136 PROPOSED CONSTRUCTION SCHEDi1LE COMMENCEMENT DATE 03-15-2001 PROJEC IED COMPLETION DATE 12-31-2001 3-15 TO 8-3� P14ASE ONE BUILDING FRONTING 3' AVE_ FROM IOST. TO 11ST. 3-15 TO 3-25 PEDESTRIAN PROTEC711ON CORRIDOR ALONG 3RD. AVE. WITH METAL SCAFFOLDS AND PLYWOOD ROOF DECK. 3-20 TO 4-20 INTERIOR DEMOLITION AND GUTTING OF COMMERCIAL AREA AND TWO UPPER FLOORS OF APARTMENT'S AS PER PLANS AND SPECS. • 3-25 TO 4-25 EXCAVATION AND SITE IMPROVEMENT TO ACCOMMODATE THE EXPANSION OF EXISTING COMMERCIAL SPACE. 4-25 TO 6-30 CONSTRUCTION OF NEW STORE FRONTS, NEW MAJESTIC ENTRANCE ON 3v" AVE. NEW BUILDING FASADE ON 3RD AVE AS PER DESIGN PLANS & SPECS. 6-110 8-31 COMPLETION OF BUILDDNG STORES & APARTMENT'S. 4-20 TO 12-31 PHASE TWO BUILDING FRONTING I I ST & GENERAL. CONDITIONS 11-30-2001 SITE UTILITIES 4-20 TO 11-30 ARQUITECI' RAL 3-25 TO 6-30 STRUCTURAL 4-30 TO 10-30 PLUMBING 5-30 TO 10-30 ELECTRICAL 6-15 TO 10-30 MECHANICAL 6-30-2001 ROOFING 9-30 TO 9-15 FIRE ALARM 6-30 TO 10-30 ELEVATORS 11-30'TO 12-15 ROAD & WALKS 10-15 TO 1 1-30 SITE IMPROVEMENTS 11-30 TO 12-15 LANDSCAPE I 1-30 TO 12-15 FINAL CLEAN UP 12-15 TO 12-30 i COMPLETION & FINAL INSPECTIONS SEOPW/CRA 0- 79 Feb-28-01 03:57P P.03 • U J 01-01 TO 6-30-2002 PHASE THREE BUILDING FRONTING 10 ST-& GENERAL. CONDITIONS 01-01 TO 1-15 DEMOLITION 01-01 TO 1-30 STRUCTURAL 01-30 TO 4-30 PLUMBING 01-30 TO 4-30 ELECTRICAL 2-15 TO 5-15 MECHANICAL 3-31-2002 ROOFING 3-30 TO 4-15 FIRE ALARM 5-01 TO 5-30 SITE IMPROVEMENTS 5-30 TO 6-15 LANDSCAPE 5-30 TO 6-15 FINAL CLEAN UP 6-15 TO 6-30 COMPLETION & FINAL INSPECTIONS SEOPW / C", • CITY OF MIAMI, FLORIDA • ITEM 9A INTER -OFFICE MEMORANDUM DATE: June 2S Chairman Teele and , 2001 FILE: Members of the CRA Board FROM : Dipak M. Parekh -9 Executive Director RECOMMENDATION SUBJECT: Arena Square Apartments / Fannie Mae Loan REFERENCES: ENCLOSURES Resolution & Backup Documents It is recommended that the Board of Directors of the Southeast Overtown/Park West Community Redevelopment Agency (the "CRA") authorize the Executive Director to close the Fannie Mae Loan in accordance with the term sheet provided by Fannie Mae, under the terms and conditions acceptable to the City Attorney. BACKGROUND • The CRA Board of Director's have authorized the Community Redevelopment Agency to borrow $1,200,000 from Fannie Mae (the "Fannie Mae Loan") on such terms and conditions as are set forth in the term sheet provided by Fannie Mae under cover letter dated May 11, 2001, a copy of which is attached as Exhibit A, and further authorizes the Executive Director to enter into a loan agreement and execute such documents as may be necessary or requested in connection with the closing of the Fannie Mae Loan. Funding Source: Fannie Mae Loan Account Number: N/A SEOPw/CRA .ini-t��-mow_ _�•.._ , l-.,. ...._�. .. ._. :�� ...� .ni-. __- i�iG r". Y.JG/aj . ' . i • t ITEM 11A SEOPW/CRA Or6(nu) RESOLUTION NO. SE.OPW/CRA C-10 � t` s A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY (-CRA-) PROVIDING A GRANT OF $1.17MM TO THE NEW ARENA SQUARE APARTMENTS AND FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO ENTER INTO AN AGREEMENT WITH SALOMEN YUKEN, OWNER OF NEW ARENA SQUARE APARTMENTS IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, SUBJECT TO THE LOAN APPROVAL FROM FANNIE MAE. WHEREAS, the City of Miami approved and adopted the Southeast Overtown/Park West Community Redevelopment Plan pursuant to Resolution Nos. 82-755 and 85-1247 (the "Redevelopment Plan"); and . WHEREAS, the CRA is responsible for carrying out community redevelopment activities and projects in the Southeast Overtown/Park West Redevelopment Area (the "Redevelopment Area") established pursuant to the Redevelopment Plan; and WHEREAS, the CRA desires to provide a grant of $1.17 MM to the New Arena Square Apartments and further authorizing the Executive Director to enter into an agreement with Salomon Yuken, owner of New Arena Square Apartments in a form acceptable to the City Attorney, subject to the loan approval from Fannie Mae. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT- AGENCY OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are incorporated herein as if fully set forth in this Section. Section 2. The Board of Directors of CRA hereby authorizes the CRA to provide a grant of $1.17 MM to the New Arena Square Apartments and further authorizing the Executive Director to enter into an agreement with Salomon Yuken, owner of New Arena Square Apartments in a form acceptable to the City Attorney, subject to the loan approval from Fannie Mae. Section 3. The 70"" 4cc upon its adoption. ,,,, SEOPW/CRAB t 01- 79 ITE IIA SEOPW�CRA PASSED AND ADOPTED on this 180' day of December, 2000. Arthur E. Teele, Jr., Chairman ATTEST: Walter J. Foeman, City Clerk APPROVED AS TO FORM AND CORRECTNESS: , s Alejaxk&o Vilarello City Attomey MOPWIMN- ti 01— �� FLA / cr3 • EXMITA SBOPWIaLk 0 0 -- 136 SEOPW/CRA 79 Or , /i * 1071 # �c�oc " � Q..1; SEOPW AND OMNI/CRA CITY CLERK' S REPORT MEETING DATE: November 20, 2000 Page No. 11 ITEM 19 A MOTION OF THE BOARD OF DIRECTORS OF SEOPW/CRA M-00-122 THE COMMUNITY REDEVELOPMENT AGENCY MOVED: SANCHEZ ("CRA") AUTHORIZING THE EXECUTIVE SECONDED: GORT DIRECTOR TO APPLY FOR A LOAN FROM UNANIMOUS FANNIE MAE CORPORATION FOR THE ARENA SQUARE APARTMENTS PROJECT AS WELL AS OTHER ELIGIBLE PROJECTS PERMISSIBLE TO THE CRA UNDER FANNIE MAE GUIDELINES; FURTHER DIRECTING THE EXECUTIVE DIRECTOR OF THE CRA TO BRING SAID ISSUE BACK FOR CONSIDERATION, REVIEW AND POSSIBLE APPROVAL BY THE CRA BOARD OF DIRECTORS AT THE SPECIAL MEETING OF DECEMBER 2000. Direction to the CRA Executive Director: by Board Member Sanchez that within two weeks from this date, the loan application must be filed with Fannie Mae Corporation. Note for the Record: During deliberations of this motion, the Board mentioned a Special Meeting to be held on December 14, 2000. At the end of the CRA meeting, the Board scheduled a Special Meeting for December 18, 2000. ITEM 22 A RESOLUTION OF THE BOARD OF DIRECTORS SEOPW/CRA R-00-123 OF THE COMMUNITY REDEVELOPMENT OMNFCRA R-00-62 AGENCY (" CRA") APPROVING THE CRA TO MOVED: SANCHEZ DISPLAY SIGNS ON ALL ONGOING CRA SECONDED: REGALADO PROJECTS IN THE REDEVELOPMENT AREA. UNANIMOUS • o SEOPW/C 01- 79 0 • u • r� FannieMae May 112 2001 Via Facsimile and U.S. Mail Mr. Dipak Parekh Executive Director City of Miami Community Redevelopment Agency 300 Biscayne Way Blvd. Suite 430 Miami, Florida 33131 Southeastern Regioaal Office 950 East Paecs Ferry Road Suitc 1900 Arlanla, GA 30326-1161 404 398 6000 Re: $1,200,000 Term Loan — City of Miami Southeast Overtown Park West Redevelopment Agency Dear Mr. Parekh: We have had the opportunity to review the preliminary information you have provided to us in connection with your request for a S1,200,000 term loan (the "Proposed Loan") to be provided by the Fannie Mae American Communities Fund ("ACF") to the City of Miami Southeast Overtown Park West Redevelopment Agency ("Borrower'"). After review of the preliminary information we are pleased to inform you that, subject to the following, ACF is interested in further pursuing the Proposed Loan. The attached term sheet sets forth a preliminary summary of the terms and conditions we would like to discuss in connection with the Proposed Loan. The term sheet does not contain all of the terms essential to closing the Proposed Loan but rather will serve as the basis for future discussions. This letter and the term sheet constitute a letter of interest only. Either party is free to discontinue discussions or negotiations at any time. Please note that the term sheet is subject to review and approval by the ACF Investment Committee, which may modify the terms set forth in the term sheet or impose additional terms and conditions. If you would like to continue discussions based on the terms contained in the term sheet, please sign the enclosed copy of this letter where indicated below. In addition, please also sign the third page of this letter indicating your agreement to the confidentiality provisions set forth therein. Please return the MAFOSTER DOCUMEMt =a1OW06-1 doc LaA Rxvised: 3/n/01 SEOPW/cif 01— 79 • • Page 2 of 3 • fully signed letter to me on or before May 18, 2001. Only the confidentiality provisions impose any legally binding obligation on any party to this letter. If you have any questions, or if you would like to discuss any item set forth in this letter, please call me at 404-398-6145 as soon as possible. We look forward to working with you on this transaction. Sincerely, Fannie Mae American Communities Fund By: If�7�1'w Name: Russell G. Foster Title: Community Development Director READ AND AGREED TO: City of Miami Southeast Overtown Park West Redevelopment Agency By: Name: Title: *•This letter of intent and the attached term sheet is provided solely as a basis for discussion and is subject to change. It should not be construed as a binding commitment, but merely presented for your review and consideration.' * SEOPW/CRA 01- 791 • Page 3 of 3 • • • Confidentiality As a condition to and in consideration of Fannie Mae American Communities Fund's continuing discussions relating to the Proposed Loan, the parties hereby agree that any information provided (whether oral or written) by Fannie Mae to Borrower shall be treated as confidential by Borrower, its affiliates and their respective employees and agents and shall not be disclosed by Borrower, its affiliates and their respective employees and agents in any manner other than to lenders, partners, attorneys, consultants, and employees whose work, advice, consent or approvals are necessary to carry out the Proposed Loan or whose financial interests may be affected by the Proposed Loan; provided that all such persons shall be bound by the terms of this paragraph as if they had signed a copy of this letter of interest, and Borrower shall be directly responsible for any breach of such confidentiality provisions by any such persons. It is further understood and agreed that the Proposed Loan (and all of the terms of this letter of interest, as well as the negotiations related hereto and thereto) shall not be disclosed to the general public, and. that no publicity or information relating to the same of any nature whatsoever be issued or provided in any manner to the press or any other parties until Fannie Mae shall agree to the content thereof and the timing of such disclosure(s). READ AND AGREED AS TO THE CONFIDENTIALITY PROVISIONS: City of Miami Southeast Overtown Park West Redevelopment Agency By: Name: Title: KTOSTM DOCUMRM\CraleU=rinanc.doc Lau Revise: 3/28I01 SEOPW/CRA °. rN)I 1-4 2601 15- 1.3 Fk r—kiI iE rjIr • 1464.3966zas 1O0 �J'1JF77.J lC4p40 r' . FJL/b4 • i 1. Borrower: City of Miami Southeast Overtown/Park West Community Redevelopment Agency (the "CRA") 300 Biscayne Way Blvd. Suite 430 Miami, Florida 33131 Borrower is a quasi -governmental agency formed under the laws of the State of Florida 2. Project/Development: New Arena Square Apartments 3. Loan Amount: $17200,000 4. Loan Type: Term Loan S. Recourse: Full Recourse 6. Terms: a) Maturity Date/Term: Four year term b) Interest Rate: Fixed; Rate not to exceed Prime + 1% c) Standby Fee: N/A d) Loan Origination Fee: 1/2% or $6,000 e) Payments/Principal Repayment: The Loan shall amortize over four years with annual payments of interest and principal which payments shall be mad upon the earlier to occur of. (1) forty- five (45) days after the receipt of TIF revenue by the CRA or (2) three (3) days after each anniversary date of the closing of the Loan. 1) Prepayment: The Loan may be prepaid at any time without Penalty •* This term sheet is provided solely as a basis for discussion and is subject to change; it should not be construed as a binding commitment, but merely presented for review and consideration." 0 1 — 7 9 Sl1OP VC /CRA I'" i j. 't G[J1:J1 15. 1.J ir% Vr-1c. I IJ 71.>tJJ-J 1 G•;0440 r . uJ/ 6-4 C 7. Collateral: $300,000, to be deposited in an account for the benefit of Fannie Mae and in which Fannie Mae will have a security interest. 8. Primary Repayment Source: Tax increment revenue received by the CRA from the City of Miami and Miami -Dade County for the Southeast Overtown/Park West ("SEO/PW") Redevelopment Area. 9. Additional Conditions: 1) The CRA shall provide Fannie Mae with detailed written reports (the "Reports") regarding the financial condition of the tax base of the SEO/PW Redevelopment Area on a semi-annual basis. The Reports shall include, but not be limited to the following: a) The total tax increment generated by the SEO/PW Redevelopment Area; b) The names of the top 20 payers of real estate taxes within the SEO/PW redevelopment area and the amount of . the taxable value of their property. Changes in the real estate ownership from the prior reporting period should be noted; and c) Any pending real estate tax appeals from the top 20 owners of real estate property within the SEO/PW redevelopment area, including the number of appeals and the projected impact on tax increment receipts. 2) The CRA will covenant that it will not issue any bonds, notes or other obligations with a lien on tax increment revenue superior or on parity with the CRA's obligations under this Loan. 3) The CRA shall include in its annual budget for the next four years three line items allocating tax increment revenue received by the Fannie Mae, in order to repay the Loan as follows: ** This term sheet is provided solely as a basis for discussion and is subject to change; it should not be construed as a binding commitment, but merely presented for review and consideration." cl k—W/CRA 0 0 a) The first line item shall establish a reserve for annual principal payments of $300,000; b) The second line item shall be a reserve for accrued but unpaid interest; and c) The third line item shall establish a reserve in an amount equal to 20% of the foregoing first and second line items. Upon receipt by Fannie Mae of the required annual payment of principal and interest, the CRA shall be permitted to reallocate the amount in the third line item for other uses. The foregoing three line items shall have priority over all other CRA budget uses for tax increment revenue except for debt service related to the 1990 Community Redevelopment Bonds. This requirement shall be incorporated into the Loan documents and shall remain in place so long as any amounts are outstanding under the Loan. In addition the CRA shall include the foregoing as part of the resolution adopted by the Board of Commissioners authorizing this transaction. 10. Closing Date: This loan must close on or before Friday, June 8, 2001, unless mutually agreed to by Fannie Mae and the CRA. This term sheet is provided solely as a basis for discussion and is subject to change; it should not be construed as a binding comrnitment, but merely presented for review and consideration." _ ► - o . i SEOP / CRA WW TOTAL PAGE.e4 �a