HomeMy WebLinkAboutR-98-0307J-98-308
3/16/98
RESOLUTION NO. 9 8 "- 307
A RESOLUTION ACCEPTING THE SUM OF $91,368.18 IN
FULL PAYMENT AND SATISFACTION OF CITY LOAN NO.
177-612005, IN THE ORIGINAL PRINCIPAL AMOUNT OF
$150,000, MADE BY THE CITY TO TACOLCY ECONOMIC
DEVELOPMENT CORPORATION ON SEPTEMBER 28, 1989,
PURSUANT TO RESOLUTION NO. 88-905, TO FINANCE
CERTAIN RENOVATIONS TO THE PROPERTY LOCATED AT
6200 N.W. 7'H AVENUE AND KNOWN AS THE EDISON
MARKETPLACE; FURTHER AUTHORIZING THE CITY
MANAGER TO EXECUTE SUCH DOCUMENTS AS MAY BE
APPROVED BY THE CITY ATTORNEY FOR THESE
PURPOSES.
WHEREAS, pursuant to Resolution No. 88-905, adopted by the City Commission on
October 6, 1988, the City of Miami made a loan to the Tacolcy Economic Development
Corporation (TEDC), in the original principal amount of $150,000, which is evidenced by a
Promissory Note from TEDC to the City dated September 28, 1989 (the "Loan"); and
WHEREAS, the Loan proceeds were applied to assist in the renovation of the property
located at 6200 N.W. 7`h Avenue and known as the Edison Marketplace (the "Property"); and
WHEREAS, TEDC has paid the City the total sum of $37,378.12, in quarterly payments
of principal and interest in the amount of $2,875.24 each, since January 1995, through the date
hereof, and
Ci=Y COIy MSION
MEETING OF
MAR 2 4 1998
Resolution No.
98- 307
WHEREAS, the Loan matures on October 1, 2014 and accrued no interest during the first
five years of its term; and
WHEREAS, TEDC wishes to sell the Property and is required to payoff the Loan in
connection therewith; and
WHEREAS, TEDC has offered to prepay the Loan, at a discount amount of $91,368.18,
and the City wishes to accept said offer
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
incorporated herein as if fully set forth in this Section.
Section 2. The City hereby accepts the sum of $91,396 in full payment and satisfaction
of City Loan No. 177-612005, in the original principal amount of $150,000, made by the City to
Tacolcy Economic Development Corporation on September 28, 1989, pursuant to Resolution
No. 88-905, to finance certain renovations to the property located at 6200 N.W. 7th Avenue and
known as the Edison Marketplace.
Section 3. The City Manager is hereby authorized to execute such documents as may be
approved by the City Attorney for these purposes.
307
2
Section 4. This Resolution shall become effective immediately upon its adoption.
PASSED AND ADOPTED this 24thday of March 1998.
JOE CAROLLO, MAYOR
ATTEST:
WALTER J. FOEMAN, CITY CLERK
CITY CLERK'S OFFICE
COMMUNITY DEVELOPMENT DEPARTMENT
REVW AND �OVAL:
E
GWENDOL N C. WARREN, DIRECTOR
DEPARTM[tNT OF COMMUNITY DEVELOPMENT
PREPARED AND APPROVED BY:
OL RA.MIREZ-SE AS,
ASSISTANT CITY ATTORNEY
W2395:csk:ORS
APPROVED AS TO FORM AND
CORRECTNESS:
J(3EL EDWARD�' ��IA�WELL
INTERIM CIT ATTORNEY
In accordance with Miami Code Sec. 2-36, since the Mayor did not indicate approval of
this legislation by signing it in the designated place provided, said legislation now
becomes effective with the elapse of ten (10) days f om the date of Commission action
regarding same, without the Mayor exercising o.
Walt J oe a , City Clerk
3
8 -- 307
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO : Honorable Mayor and Members of the
City Commission
FROM
Jose Garcia -Pedrosa
City Manager
RECOMMENDATION:
CA=16
DATE : March 2 4, 19 9 8 FILE
SUBJECT Tacolcy Economic Development
Corporation Loan Repayment
Request
REFERENCES:
ENCLOSURES: City Commission Meeting
of March 24, 1998
It is respectfully recommended that the City Commission approve the attached resolution,
authorizing the City Manager to accept an offer from Tacolcy Economic Development
Corporation (TEDC) in the amount of $91,368.18 to prepay an existing City loan of
$150,000 provided in September, 1989. Staff analysis has indicated that the City loan
expires in the year 2014, allowing for a minimal inflation factor, and has a present value of
$ 87,192.96.
BACKGROUND:
On October 6, 1988, the City approved Resolution R88-905, authorizing a loan in the
amount of $150,000 to TEDC for the renovation of the property, located at 6200 N.E. 7`h
Avenue (Edison Marketplace).
The term of the City loan is twenty-five years, expiring in October, 2044. Interest and
principal were deferred for the first five years. TEDC has been making quarterly
payments of $2,875.24 since 1995, which total $37,378.12 to date. The existing
outstanding balance of the loan is $150,989.54.
TEDC is considering selling the Edison Marketplace property and is therefore interested
in liquidating the City's first mortgage. From the City's perspective, it may be more
beneficial to accept the prepayment offer now. than to wait until expiration of the loan in
2014.
98-- 307
Honorable Chairman and
Members of the City Commission
Page 2
Acceptance of this proposal could provide an additional $91,368 of program income
available as a supplement to the reduced level of funding the City is expected to receive
from U.S. HUD in the 24`' Year Community Development Block Grant Program (1998-
1999).
JGP:C C:E ajg
cc:
[Memosjgl<Pedrosa2>
08- 307
Section 4. This Resolution shall become effective immediately upon its adoption.
PASSED AND ADOPTED this
day of - , 1998.
JOE CAROLLO, MAYOR
ATTEST:
WALTER J. FOEMAN, CITY CLERK
CITY CLERK'S OFFICE
C0N04UNITY DEVELOPMENT DEPARTMENT
REVIEW AND APPROVAL:
GWENDOLYN C. WARREN, DIRF,(TOR
DEPARTMENT OF COMMUNITY DEVELOPMENT
PREPARED AND APPROVED BY:
PI /1 _
OLq4 RAMIREZ-S AS, �/
AS STANT CITY A ORNEY
W2395:csk:OP,S
APPROVED AS TO FORM AND
CORRECTNESS:
zo'�5'
/��- Wz 5! z — � x
JOEL EDWLL
INTERIM C ATTORNEY
3 98- 307
tool
File Desk Money Tax Analyze Portfolio Net Worth Reports Help
<F1>•Help
INFLATOR/DEFLATOR
After 14 years of 4.00 % inflation (deflation,
if negative), here's what $150,990.00 will be
worth in today's dollars: $87,192.96
Said differently, in 14 years you will require
$261,465.83 to buy what $150,990.00
bought today.
CONSUMER PRICE INDEX
$1.00 in the year 1979 is the rough
equivalent of $2.01 in 1994.
<F7> Clear Fields
<Esc>•Back up
10:45:OOa
98- 307
a [ "I<.Vlst. 1 L< VL lVl'iit VL V LisVA I'JLL 1 1
CORPORATIO,
'5)757-3737
LORENZO SIMMONS December 17, 1997
rMweIYT
OMS
CLIKTon t. PrrlTs
Mr. Frank Castaneda, Director
R� BROWN
FIRST vice CILAMPIMON
Community Development
City of Miami
MATTHM NICHOLS
SECOM IACE CHAMI RSON
444 S.W. 2"d Avenue
MOM FLORENCE
sECRErARY
Miami, Florida 33130
DIRECTORS
,ACM LOVE MARSHALL RE: CITY of Miami — Loan # 177-612005
CAROLE AM TAYLOR
Dear Mr. Castaneda:
We are requesting that you consider our offer of $91,368.18, to prepay the
above -captioned loan. The amount of our offer is based on the
outstanding balance as of January 1, 1998, in the amount of $150,989.54.
As you know, this loan will not expire until October 1, 2014.
Unfortunately, it is a painful truth that in recent years there has been no job
growth in the Edison Center Business District. We are committed to doing
our part to rectify this situation. To that end, we plan to redevelop the site
so that we can provide more job opportunities and hopefully create an
investment momentum to attract other businesses to the area.
We understand that like us, you too are dedicated to economic revitalization
in Liberty City through increased availability of both commercial and
housing goods and services. We would greatly appreciate your support
and ask that you do your best to respond to this request by January 5, _
1998.
If you have any questions or require any additional information, please do
not hesitate to contact me. -
Sincerely.
s
Lorenzo Simmons
President
LS/dh
cc: Ed Blanco, City of Miami
J:OFC/CASTENEDAANGS
645 N.W. 62NO STREET, SUITE 300, MIAMI, FLORIDA 33150 • FAX (305)757-5856
98- 307
TDI - COM 12/17/97
COM - MORTGAGE BAL. 1/1/98
$150,989.54
CAP RATE 11 %
PERIOD
CURRENT PI AT
RATE
AMOUNT
ACC.
BAL
1
$ 11,500.96
0.9009
$10,361.21
$
10,361.21
2
11,500.96
0.8115
9,333.03
$
19,694.24
3
14,069.20
0.7312
10,287.40
$
29,981.64
4
14,069.20
0.6578
9,254.72
$
39,236.36
5
14,069.20
0.5935
8,350.07
$
47,586.43
6
14,069.20
0.5346
7,521.39
$
55,107.83
7
14,069.20
0.4817
6,777.13
$
61,884.96
8
14,069.20
0.4339
6,104.63
$
67,989.59
9
14,069.20
0.3909
5,499.65
$
73,489.24
10
14,069.20
0.3522
4,955.17
$
78,444.41
11
14,069.20
0.3173
4,464.16
$
82,908.57
12
14,069.20
0.2858
4,020.98
$
86,929.54
13
14,069.20
0.2575
3,622.82
$
90,552.36
14
3,516.47
0.2320
815.82
$
91, 368.18
W
O
J-811-9:16
R/24/RA
RCSOLUTION NV.
A RFSOLUT1 ON AUTHOR Ill CIC: THE Cl TY MANAGER TO
UTILI Z.F, FIVF. ItUNItREit SIXTY-T,I VE I-H0USAN1)
001.4ARS ($565,000) OF THE MONIES APrROrRIAIr D
VIA THF. F.CONCiIfiC DF,VF.1.0r,H1.Nr/PIIYSiCA1,
TMrROVFMENT PRO.TF.CT 1`001. FUND, ANU At.Lt)CAVED
FROM 7111', SECOND ROUND OF THE TWF.I.FTll (12TH)
YEAR COCiMtiNITY DEV1•LOPMENT BLOCK GRANT FUND
AND TIlLFiRs,r ROUND OF Tlif. TIITRIltf.tvT1l (1117fl)
YEAR FOR THF. TtiRPil':I: uF 0B1.I GA I' i Nt: FOR A :i X
(6) MONTHS PERIOD PUNOING FoK ECON<.trilt;
pT3VFLUPMFNT PR0.1F.CTS TN AC CORT)ANCF. WITH THF.
t UIDELINES 5F.T FORTH , WTrlt Til()SF.
ORGANIZATIONS NAMFT) RF.1.OW W110!"f. PRoircI
PROPOSALS WERE SF.1.F.C.TF,D AY Tr1F. F.CONOM7C
DFVRIXPh1F.Nr/PilYSir.A1. tMPROVEMENI PROJP:C'1'
COMMITTFF, AND SUC(;FNSFULLY MZY.1" THE SCORING
RFQ111RF.Ml:NTS ANT) LEVERACF AMOUNTS.
WHEREAS, the C1 ry Commt s•41()n I comml tted to C•conomf c
tirvrinpmrnt And 'tlln OKpan4i+,it 1.1 Trade nn,l C„otntNtce; attd
W11YRF_A5, Rcanlucion Nn'a. 86-296, 86-636 nnti 87.411
crtnh11911P(I An F.cnnpmIr Dnvelni) Ill t•ttt/Fhyvirnl improve -moat. Funding
P001, WIIIt fondv nIIncnto(i from the Aerorl9 tnund of rh(r 'rw,,lfrit
(17th) Yettr Commttnit:y i)evclnI,mrnt R1ACk C.VAnr And'i11•• f/rr.t round
of the Tit ITtretit h (13th) Yeir Cnill munI.ty lt(,v.rloltment R1nck GrAnt
fund In tht Amount (A f ve hundrerd alxI y -r ive thou iit0 dnI IAr"i
($565,00U); Anti
WHEREAS, fundit nwnrdr(1 daring ihlz round -Wa•t on A
cnmp01tItive 1)nnIR In Which enclt projeer(/titopt Am wai nrnr(I.d And
evelunl:ed on its neiRhbotlittod/rnm-nercial nrr (if Job
im
r �.1 ctentIon,
bit" l ne Sa dCVel npmcnt And Argt lie [ and
Wlir..RFAS, the Clty (:itmmiax{(tnr AUtl►oriz.tt.inh of the flnAnClal
cnmmI tMil. nt r, to r:1(; It yr the ),I (>)ucts l l ai (•,i below tstin I l PnAhI t?_
each or ItnnlzAtIoo tit n(•ruro and tlnnotIt(, rIitattcijig
rnmmtt.m(•ntit, , contlnt,enr t,p,+,t tit(• (vrtne tt1,r,:1 1,1—i; An,i
W)tERF,AS, the City"s cnmmirmt•nt PhaII h,- for A n I K (.h) month
petIntl ; nn,l
-(A1'Y COMMISSIt),
MUTING OF
OCt a Q)c3 t 30'7
tt!V1t tIT ON No.�l�r
i ��
L7HF.REAS, rhr C(ty - A fIroasts. I II cotntnI Iloss. nl will ho tauhlect it)
contritt•r npprovaI by the <:,,m.nI t.I,,it p r 1 7 Iv 1011rtRl
NOW, THF.RY.FORF., RI' IT Rr.!<OLVKD BY THf•: COMMISSION OF TIIF.
CITY OF MIAMI, FLORIDA:
Sec-tIon I Tit Clty ManayPr 1!: hereby nntlt„rizod t„
nitllgttte rttr n A1x (6) mt+nth pQrIoi f In,ttng f,+t vc„Isola
lr
dt!vclopmrnt: Isrn_)rrts, with the foIlowIny orRnniZAttonR, rctr t11r
amounts apecified for ench, fut the Pitl+v•,r „f implrits ••nitn9 1t .
approved Ea on„too tc/lltyvlrnl Imp I„vomrrtt 1) -, to in etc, ,t41nncc
vItIt thn cnndIIInI%AI requirements and term: rot forth WIth funds
Allocnted from the Two IfrIt (12tIt) Yeec- CitcnrtlpniLy L' 6?10pine lit
Rlock (.rAIts l ;
ORGANIZATION: Tnrnlc-y Rcnnnmtc tit- Ioptneitt CoIIt0rnttnn,
Inc. (TLI)C)
TOTAL COST: $1.5 m1111vn
TRRH: C(ty'n• AI Incnted AMnutlt or one hnttdred f f f t y
thouann(I dollnrn ($150,000). 7'Itct terms for
staid loan wit be M0rArnrinnl of I,rinrll,AI and
Interest f rom years ut)t• ( 1 ) tlit ntty,lt f ivI-
lnterenL f„c year %In (6) thtouylt--ten (10)
r wIi1 hr nr three prtt'ent (3X); yv.1rr. rlrven
( 1 I) I ltrttt+pIt twonty—i Sae (25) nI. it I K ItrrCelli
(fir), S.7tti 1 0 A n bi I he Amore lzrd Over
A thitty (30) yrnrs anti n11 1Pndsit ta WIIi have it
,;�k}' c� altered Lirvr pnettian.
"< ORGANIZATION: Allapattah Buninoss n,- vrloptnent Ali t11or1Ly,
inc. (ARt)A)
TOTAL COST: $581,1118ftn
TP.RH: CI t n1 Mi nml -
y (Corn) one hnndrod ninety
Lit ouenttd dctIliars (51901000). Thi a
?' prelIfni rtery ,:otnmitmtrnt ..III enrtble ADUA to
t
nv.curft olhr•r public•/prlvnLe funds. At t),aL
time wtII come bark It, the C.vramltt!tlon for
apItroto 01 conttA,-1 ,tnc r Al l r,1n,ling 1A
secured.
ORGANIZATION: LAtln Qnartor Cultt:rni Atts Center
TOTAL CAST: Approximntt•ly $700,000
TF.RH: C1ty aIIornt-rd amount or one IsundIeit fifty
thost !tnnot dollars (5150 r100) ill conringent
upon nil fttn,lIng bet.+ig securA,'. At which
tone w I I I come bn,it 111 Iltr C"mmlrston for
Apprt,vis nr ttrto 01 C:Ity 10"isq. ThIm
c-otnmltm,•nt, la for 131'x (4) m"itthPt rtoun dArA of
't• CnMilo 1 •rt 1 ttn kppr0vAl
98
;it9aT
307
PASSF.D AND ADOPTED t bt v 61.It AAy of Ch. t.ci�t��r�.t^^- , 1913H)^
-
/ MAYOR
ATTEST:
HATTY H1RA
C i TY CLERK
COMMIINTTY DEVELOPMENT RRV11?W AND APPROVAL:
ji
RANK A6ffANF. A, DtRF:c:TOR
DF.PARTMP.NT OF COMMUNITY DEVr•,Lu1'MENI'
FINANCE. REVIEW AND -APPROVAL'
G�
C R . S GARCiA� UI,Kr.t:TUR
DP_P RTME.Nf OF FT NANf.I7.
MANAGFHENT h Rl1DC-ET RFVIF.W AND APPROVAT.:
TtANONAR S.~SUKANA, "tt►RfCTOR
DEPARTMENT OF MANAt:F?1HNT b ADUt:F.'f
PREPARFn AND APPROVF.n BY
RO F.RT F. CI.ARK
6ilEF DF.P117Y C71Y AITORNF.Y
APPROVED AS TO FORM AND CORRF%'I'Nl•:ri$;
JORGE 1.. F.RNA.1)F7. C`>
CITY ATTORNEY
l91d
9 - 307
—� cIC
Schedule
TACOLCY DEVELOPMENT, INC.
and
TACOLCY ECONOMIC DEVELOPMENT, INC.
AMOUNT: $150,000.00
PLACE: MIAMI, FLORIDA
DATE: be*- 4.)
FOR VALUE RECEIVED, the undersigned jointly and severally
promise(s) to pay to the order of the City of Miami, a Florida
Municipal Corporation, (herein called the "CITY"), acting by and
through its Department of Community Development, or its
successors, the sum of one hundred fifty thousand dollars and
no/100 dollars ($150,000) [hereinafter referred to as "CITY
LOAN"] in lawful money of the United States, together with
interest thereon at the rate of three percent (3%) to six per
cent (6%) per annum amortized over 30 years and called on year
twenty-five (25), in like lawful money from the date hereof until
maturity, on the principal balance outstanding from time to time.
Such principal and interest shall be due and payable as follows: -
During the first five years of the Loan Term,
the City Loan shall bear interest at the rate
of three percent (3%) per annum, provided',
however, that all principal and interest
payments shall be deferred for such initial
five (5) year period (the "Deferral Period").
The amount due-, and payable during the
Deferral Period shall be added to the
principal balance of the City Loan. During
years six (6) through ten (10), the City Loan
shall bear interest at the rate of three
percent (3%) per annum and during the
remaining portion of the Loan Term, the City
Loan shall bear interest at the rate of six
percent (6%) per annum. Payments under the
City Loan shall be due and payable quarterly,
commencing three (3) months after the end of
the Deferral Period and continuing every
three (3) months thereafter until the entire
principal balance and all accrued but unpaid
interest is due and payable in full.
The undersigned reserve(s) the right to prepay at any time,
all or any part of the principal amount of this Note without the
payment of penalties or premiums. Except as provided below, all
quarterly installment payments on this Note shall be credited as
of the due date, thereof without adjustment of interest because
paid either before or after such due date.
IN THE EVENT the undersigned shall fail to pay the interest
on, or principal amount of this Note when due, and if such
failure continues until the date the next installment payment
under this Note becomes due and payable, the outstanding
principal balance of this Note, together with accrued interest
and late charges, shall become due and payable, at the option of
the City, without notice to the undersigned. Failure of the City
to exercise such option shall not constitute a waiver of such
default.
No default shall exist by reason of nonpayment of any
required installment of principal and/or interest (so long as the
amount of prepayments already made pursuant hereto equals or
98- 307
exceeds the amount of the required installments.) If
quarterly installment of principal and/or interest due <
payable under this Note is not paid during the quarter wh:
includes the due date of such installment, then the undersigi
shall pay a late charge equal to five percent (5%) of the amoi
of each quarterly installment which is past due and rema:
unpaid during the quarter (or part thereof) following the moi
such installment is due. If this Note is Aduced to judgemei
such judgement shall bear interest at a rate of ten percent (1(
per annum.
IF suit is instituted by the City to recover on this Nol
the undersigned agree(s) to pay- all costs of such collectl
including reasonable attorney's fees and court costs.
The Agreement between the undersigned and the City dal
i,rh he ✓ 2-S 1989, hereby incorporated into and made
part hereof.
IN WITNESS WHEREOF, this Note has been duly executed by
undersigned, as of its date.
ATTEST:
TACOLCY DEVELOPMENT, INC.
�1/LvR,P6_ Ty SECRETA P SID T
ATTEST:
X,Z/-q0RP0F T S CRETARY
TACOLCY ECONOMIC DEVELOPMENT
CORPORATI , INC.
By: Q"�46'
PRESID T
LKK/pb•'M061
98- 30 1