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HomeMy WebLinkAboutR-03-0511J-03-457 05/14/03 RESOLUTION NO. 0 3 " 51 1 A RESOLUTION OF THE MIAMI CITY COMMISSION AUTHORIZING THE PAYMENT IN THE SUM OF $1,000,000 TO ST. JOHN COMMUNITY DEVELOPMENT CORPORATION, IN FULL AND COMPLETE SETTLEMENT OF ANY AND ALL CLAIMS AND DEMANDS AGAINST THE CITY OF MIAMI AND SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY, IN THE CASE OF THE CITY OF MIAMI AND SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY VS. LYRIC VILLAGE HOUSING, INC. AND ST. JOHN COMMUNITY DEVELOPMENT CORPORATION, IN THE CIRCUIT COURT OF THE ELEVENTH JUDICIAL CIRCUIT IN AND FOR MIAMI-DADE COUNTY, FLORIDA, CASE NO. 00-30414 CA (13), UPON DELIVERY OF A RELEASE FOR THE CITY OF MIAMI AND SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY (CRA), ITS PRESENT AND FORMER OFFICERS, AGENTS AND EMPLOYEES FROM ANY AND ALL CLAIMS AND DEMANDS; ALLOCATING FUNDS FROM THE CITY'S GENERAL FUND INDEX CODE 001.000, IN THE SUM OF $195,000, HOME FUNDS INDEX CODE 198008.063615.4.339, IN THE SUM OF $665,417.32, CDBG FUNDS INDEX CODE 799126.457275.6.979, IN THE SUM OF $85,000, AND THE WAIVER AND RELEASE OF OUTSTANDING LIENS IN THE SUM OF $54,582.68. WHEREAS, The City of Miami and Community Redevelopment Agency ("CRA") filed a declaratory judgment action against Lyric Village Housing, Inc. ("LVHI") and St. John Community Development Corporation ("St. John CDC"), in the Circuit Court of the Eleventh Judicial District, Case No. 01-25455 CA (09), in Miami, Miami -Dade County, Florida; and CITY COON MEETING OF MAY 2 2 2093 Resow:ioa,. 03- 511 WHEREAS, LVHI and St. John CDC have filed counterclaims against the City of Miami and the CRA in connection therewith; and WHEREAS, the above claim has been investigated by the City Attorney's Office pursuant to Section 18-232 of the Code of the City of Miami, Florida, as amended, which created the City of Miami's Self -Insurance and Insurance Trust Fund and said Office recommends that the claim and lawsuit be settled for the sum of $1,000,000; 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 payment in the sum of $1,000,000 is authorized to St. John CDC, in full and complete settlement of any and all claims and demands against the City of Miami and Southeast Overtown/Park West Community Redevelopment Agency, in the case of City of Miami and Southeast Overtown/Park West Community Redevelopment Agency vs. Lyric Village Housing, Inc. and St. John Community Development Corporation, in the Circuit Court of the Eleventh Judicial Circuit in and for Miami -Dade County, Florida, Case No. 00-30414 CA (13), upon delivery of a Release for the City of Miami and the CRA, its present and former officers, agents and employees from any and all claims and Page 2 of 3 03- 511 demands, with funds allocated from the City's General Fund, Index Code No. 001.000, in the amount of $195,000, HOME Funds, Index Code 198008.063615.4.339, in the sum of $665,417.32, CDBG Funds, Index Code 799126.457275.6.979, in the sum of $85,000, and the waiver and release of outstanding liens in the sum of $54,582.68. Section 3. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.!' PASSED AND ADOPTED this ATTEST: 16PRISCILLA A. qHOWSON 1 CITY CLERK APPROVED ORNEY V VI -m 22nd day of May 2003. ANUEL A. DIAZ, M D CORRECTNESS:% 1' 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. Page 3 of 3 03- 511 CA -9 CITY OF MIAMI CITY ATTORNEY'S OFFICE MEMORANDUM TO: Mayor and Members of the City Commission FROM: Alejandro Vilarello, City Attorney DATE: May 15, 2003 RE: Proposed Resolution for City Commission Meeting — May 22, 2003 City of Miami and Southeast Overtown/Park West Community Redevelopment Agency v. Lyric Village Housing, Inc. and St. John Community Development Corporation, Inc., in the Miami -Dade Circuit Court Case No. 00-30414 CA (13). The attached proposed Resolution seeks authorization for the settlement of all claims against the City of Miami and its officers, agents and servants, and Southeast Overtown/Park West Community Redevelopment Agency ("CRA") in the above -referenced case in the amount of $1,000,000. This matter arises out of a request for proposal issued on or about June 20, 1996, for the redevelopment of a certain property. On August 9, 1996, the CRA selected Lyric Venture, a general partnership between Lyric Village Housing, Inc. (LVHI) and St. John Community Development Corporation, Inc., as a successful respondent to the RFP and on or about October 28, 1996, the City Commission of the City approved Lyric Venture as a successful proposer with respect to the property. The City and the CRA contend that (i) the parties who executed the Purchase Agreement, the Development Agreement, the Mortgage and the.Note lacked the requisite authority to bind St. John CDC, Lyric Venture and the CRA and (ii) the CRA, St. John CDC and Lyric Venture never performed under the Purchase Agreement, the Development Agreement, the Mortgage or the Note. Title to the property was never conveyed by the CRA to St. John CDC nor have St. John CDC, LVHI and Lyric Venture ever developed the property as contemplated by the RFP and the Development Agreement. St. John CDC contends that the City and the CRA prevented Lyric Venture's performance by failing to convey title to the Property to St. John CDC as contemplated by the Purchase Agreement. The City and CRA filed a declaratory judgment action in the Circuit Court of the 111' Judicial Circuit in and for Miami -Dade County, Florida, and LVHI and St. John CDC have filed counterclaims against the City and the CRA. 03- bit The City Attorney's Office and the Risk Management Division have investigated and evaluated this case and have approved the recommendation of this settlement. Funds are available from the City's General Fund in the sum of $195,000.00, Index Code No. 001.000; HOME Funds in the sum of $665,417.32, Index Code No. 198008.063615.4.339; CDBG Funds in the sum of $85,000.00, Index Code No. 799126.457275.6.979; and the waiver and release of outstanding liens in the sum of $54,582.68. Attachment(s) W878:egq:KRM c: Joe Arcola, City Manager Elvi G.Alonso, Agenda Coordinator 03- bit