HomeMy WebLinkAboutItem #33 - Discussion Itema
EXCEL MORTGAGE COMPANY
8o1 NORTHEAST 167TH STREET -SUITE 300
ri'ORTH MIA'MI BEACH, FLORIDA 33162
TELEPHONE (305) 653-4229
FAX (305) 653-S822
April 10, 1997
Mr. Raymond C. Fauntroy, Chairman
MARTIN LUTHER KING ECONOMIC
DEVELOPMENT CORPORATION
6116 N.W. 7th Avenue
Miami, Florida 33127
i
Mr. Elbert Waters, Director
City of Miami N.E.T.
444 S.W. 2nd Avenue
I Miami, Florida 33130
Re: Lots 1, 2, 3, 4, 5, 6 and 7, Lots 25 and 26 and the East 30
feet of Lot 8, in Block 1, of BAYAMI PARK, according to the
Plat thereof, recorded in Plat Book 13, at Page 68, of the
Public Records of Dade County, Florida a/k/a 6116 N.W. 7th
Avenue, Miami, Florida 33127 and adjoining addresses.
( Gentlemen:
In connection with arranging new first mortgage financing in the
I principal sum of $155,000.00 (repayable monthly at the rate of
12.50% based on a 25 year amortization with a 10 year balloon
maturity), this will confirm that we shall require a subordination
of the outstanding City of Miami mortgage grant encumbering the
premises.
Kindly arrange for delivery of the proposed Subordination
Agreement by the City of Miami so that we may review and approve
same. At this time, the name of the Lender (i.e., Mortgagee) for
j the new first mortgage should be left blank in the Subordination
i Agreement.
Thank you for your cooperation in this matter.
Very
er Fine, Vic PresidentI."��
1 General Counsel
lis°i7 __... }
,11 a
City Uerk
goo
MLKEDCO
MARTIN LUTHER KING ECONOMIC DEVELOPMENT CORPORATION
6116 N.W. 7th Avenue " Miami, Florida 33127 • Telephone (305) 757-7652 • Fax (305) 758-5777
April 18, 1997
Mr. Elbert L. Waters, Director
City of Miami -NET
444 S.W. 2ND Avenue
Miami, FL 33130
Dear Mr. Waters,
The letter is to follow-up on the telephone conversation held on April 17 regarding, the
MLK outstanding loan. The center of our discussion was the delinquency of this loan and
a payment arrangement that will give the City of Miami adequate assurance that MLK can
make monthly loan payments. Our dilemma is tliat the lender needs a subordination
agreement from the City of Miami to complete the loan. 'Ale understand that this matter
must be approved by the City Manager in addition to bein_, approved by the City of Miami
Commission.
The loan is $33,000 in airears. A tentative payment resolution would be to make a
$15,000 payment that would bring the loan to a current status and adding the remaining
balance to the end of the loan. MLK will continue to make monthly payments of $1,500
as per the loan agreement. I have enclosed a copy of the monthly revenues and expenses
which reflects our current occupancy rate of 70 %. 1 have also enclosed a copy of the
current rent roll with a description of the total available space. This arrangement is subject
to the approval of the City Manager, the City Commission, preparation of the
subordination agreement, and closili- of our loan with Excel Mortgage.
Additionally, I spoke with Mr. Ed Blanco and lie explained that he has completed the
resolution for discussion as a pocket item on the agenda for the April 24th Commission
meeting. Mr. Blanco informed MLK that lie needed your approval to move foiivard. I
sincerely hope that you will assist MLK in resolving this matter. It would be an additional
benefit if you could coordinate the approval of the resolution with Mr. Ed Blanco and the
City Manager.
I look forward to further con-espondence in the near future.
Sincerely,
La
Mark Pecke
Executive Director, MLKEDC
IF IT'S NOT YOU - WHO IF IT'S NOT NOW - WHEN IF IT'S NOT HERE - WHERE _WE ARE RESPONSIBLE F02 OU�C`OMU���r
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
EXECUTE A SUBORDINATION AGREEMENT, IN A FORM
ACCEPTABLE TO THE CITY ATTORNEY, FOR THE
APPROVED LENDER IN THE FINANCING OF A NEW
LOAN TO THE MARTIN LUTHER KING ECONOMIC
DEVELOPMENT CORPORATION, INC. (VILK) FOR THE
PURPOSE OF PAYING OFF THE FIRST MORTGAGE ON.
THE LINCOLN SQUARE OFFICE BUILDING, IN WHICH
THE CITY HOLDS A FOURTH MORTGAGE AND IS A
DEFENDANT ALONG NNITH MILK, IN FORECLOSURE
PROCEEDINGS BY THE FIRST MORTGEE, TACOLCY-
ECONOMIC DEVELOPMENT CORPORATION AND
ACCEPT A 515,000.00 PAYMENT FROM MLK ON THE
CURRENT S33,000.00 IN ARREARS ON THE CITY LOAN;
BEGLY MONTHLY PAYMENTS OF S1,500.00 AND
PROVIDE PAY?Y1ENT OF THE BALANCE IN ARREARS OF
S18,000.00 AT -NLATURITY OF THE LOAN IN FEBRUARY,
2010.
WHEREAS, approved by Resolution-82-601, in October, 1982, the City of IYfiami
provided a loan in the amount of S=100,000.00 to the Nfartin Luther Fang Economic Development
Corporation, Inc. for the purpose of assisting in the purchase of the Lincoln Square Office
Complex; and
WHEREAS, the City's loan to MLK is a fourth mortgage on the Lincoln Square Office
Complex and is inferior to the first mortgagee; and
WHEREAS, the first mortgage on the property was purchased by the Tacolcy
Economic Development Corporation (TEDC); a -rid
May-01-97 09:44A City of Miami - NET 305 579-2450 r.v�
,ti_�iEREAS, TEDC has requested payment of the outstanding balance due on the first
mortgage from N1LK; and
WHEREAS, TEDC filed for foreclosure for non-payment by MLK on February 13,
1997; and
WHEREAS, MLK has arranged for new financing in order to pay the balance of the
j first mortgage and pay the City $15,000.00 of the current $33,000.00 in arrears; and
WHEREAS, the approval lender on the new financing for M.I_K is requesting a
subordination of the City's loan.
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
hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section.
Section 2. The City Manager is hereby authorized to execute a subordination
agreement requested by the approved lender which will provide new financing to the Martin
Luther King Economic Development Corporation, Inc. (MLK) for the purpose of liquidating the
first mortgage on the Lincoln Square Office Complex located on N.W. 62"d Street and 7' Avenue
and accept a S15,000.00 payment from MLK on the current $33,000.00 in arrears on the City
loan; begin monthly payments of $1,500.00 and provide payment of the balance ,in arrears of
$18,000.00 at maturity of the loan in February, 2010.
Section 3. The subordination agreement further protects the City's existing fourth
mortgage on the property which could be extinguished if the first mortgage is foreclosed.
May-01-97 09:44A City of Miami - NET
Section 4. This Resolution shall become effective irrmediately upon its adoption.
PASSED AND ADOPTED this day of 11997.
ATTEST:
Y
WALTER J. FOEMAN, CITY CLERK
COMMUNITY DEVELOPMENT DEPARTMENT
REVIEW AND APPROVAL:
ELBERT L. WATERS, NTERIivI DIRECTOR
APPROVED AS TO DEPARTMENT OF FINANCE:
MICHAEL LAVIN, INTERIM DIRECTOR
PREPARED AND APPROVED BY:
OLGA RAMIREZ-SEIJAS
ASSISTANT CITY ATTORNEY
APPROVED AS TO FORM AND CORRECTNESS:
A. QUINN JONES, III, CITY ATTORNEY
<shared-resolutionsvh>mlksubordresol
C
JOE CAROLLO, MAYOR
o
MLK
MARTIN LUTHER KING ECONOMIC DEVELOPMENT
MONTHLY RENT ROLL AT 70% OCCUPENCY
RENTAL REVENUE- ACTUAL
ADDRESS
SQ. FT
CAA
860.00
6100 N.W. 7TH AVE
2,184.00
$4.73
TEENAGE PREGNANCY
1,144.00
6118 N.W. 7TH AVE
1,394,00
$9.85
MIAMI DADE WATER
1,302.40
6130 N.W. 7TH AVE
1,776.00
$8.80
PHASES OF LIFE INC.
1,083.00
6114 N.W. 7TH AVE
1,444;00
$9.00
J.E.S.C.A.
3,068.00
6102-04 N.W. 7TH AVE
4,332,00
$8.50
MODEL CITIES PYMT CTR
3,034.00
6112 N.W. 7TH AVE.
5,021,00
$7.25
"'ALL WILLIAMS INSURANCE
432.00
720 N.W. 62ND STREET
648.00
$8.00
jIMPLY FASHION INC
2,093.00
6140 N.W. 7TH AVE.
3,200.00
$7.85
H & R BLOCK
2,355.00
6120 N.W. 7TH AVE.
2,948,00
$9.59
22,947.00
TOTAL MONTHLY RENTAL REVENUE
$15,371.40
AVG. PER SCE. Fr. $8.04
OCCUPENCY RATE 70%
TOTAL RENTABLE SPACE 33,000 SQUARE FEET
THE MLK OFFICE COMPLEX HAS APPROXIMATELY 33,000 SQUARE FEET AVAILABLE FOR RENT,
CURRENTLY NINE ORGANIZATIONS OCCUPY 22,947 SQUARE FEET WITH 10,053 SQUARE FEET VACANT.
PRIEF ANALYSIS OF THE VACANT SPACE WOULD YIELD ADDITIONAL MONTHLY REVENUE AS FOLLOWS:
PESSIMISTIC 5,026,50
ACTUAL 6,735.51
OPTIMISTIC 8,796.38
MARTIN LUTHER KING ECONOMIC DEVELOPMENT CORPORATION HAS PROJECTIONS THAT
WILL INCLUDE $120,000 IN GRANT AND PRIVATE FUNDING.
Page 1
70%OCC
APRIL
MAY
JUNE
JULY
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
JANUARY
FEBRUARY
MARCH
APRIL
Y
JUNE
JULY
AUGUST
1997
1997
1997
1997
1997
1997
1997
1997
1997
1998
1998
1998
19981998
1996
1998
1998
PUBLIC AND GRANT SUPPORT
CAA
660.00
860.00
860.00
860.00
860.00
860.00
860.00
860.00
860.00
860.00
860.00
860.00
860.00
860.00
860.00
860.00
860.00
TEENAGE PREGNANCY
1,144.00
1.144.00
1,144.00
1.144.00
1,144.00
1,144.00
1.144.00
1.144.00
1.144.00
1,144.00
1.144.00
1,144.00
1.144.00
1.144.00
1.144.00
1.144.00
1.144.00
MIAMI DADE. WATER
1,302.40
1.302.40
1,302.40
1.302.40
1,302.40
1,302.40
1,30240
1.302.40
1.302.40
1.302.40
1.302.40
1,302.40
1,302.40
1,302.40
1,302-40
1.302-40
1.302.40
PHASES OF LIFE INC.
1,083.00
1.083.00
1,083.00
1.083.00
1.083.00
1.083.00
1.083.00
1.083.00
1.083.00
1.083.00
1,083.00
1,083.00
1.083.00
1,083.00
1.033.00
1.083.00
1.083.00
ALL WILLIAMS INSURANCE
432.00
432.00
432.00
432.00
432.00
432-00
432.00
432.00
432.00
432.00
432.00
432.00
432.00
432.00
432.00
432.00
432.00
J,E.S.C.A.
3.068.00
3.068.00
3.068.00
3,068.00
3.068.00
3,068.00
3.068.00
3.068.00
3.068.00
3.068.00
3.068.00
3.068.00
3,068.00
3,068.00
3.068.00
3.068.00
3.068.00
MODEL CITIES PYMT CTR
3.034.00
3.034.00
3,034.00
3,034.00
3.034.00
3.034-00
3.034.00
3,034.00
3,034.00
3.034.00
3,034.00
3,034.00
3.004.00
3.034.00
3.034.00
3.034.00
3.034.00
SIMPLY FASHION INC
2.093.00
2,093.00
2,093.00
2.093.00
2.093.00
2,093.00
2.093.00
2.093.00
2,093A0
2.093.00
2.093.00
2.093.00
2.093.00
2,093.00
2.093.00
2.093.00
2.093.00
H 8 R BLOCK
2.355.00
2.355.00
2.355.00
2.355.00
2,355.00
2.355.00
2.355.00
2.355.00
2.355.00
2,355.00
2.355.00
2.355.00
2.355.00
2.355.00
2.355.00
2.355.00
2.355.00
TOTAL RENTAL REVENUES
15.371.40
15.371.40
15.371.40
15.371.40
15.371.40
15.371.40
15,371.40
15.371.40
15.371.40
15.371.40
15.371.40
15.371.40
15.371.40
15,371.40
15.371.40
15.371.40
15,371.40
TOTAL REVENUE
15,371.40
15.371.40
15,371.40
15.371.40
15.371.40
15,371.40
15.371.40
15,371.40
15.371.40
15.371.40
15.371.40
15.371.40
15.371.40
15,371.40
15.371.40
15.371-40
15.371.40
MONTHLY EXPENSES
AFCO INS PREMIUM-BLDG INS
1,471.00
1.471.00
1,4-/im
1,471.00
1.471.00
1,471.00
1.471.00
1.471.00
1.471.00
1.471.00
1.471.00
1,471.00
lA71.00
1,471.00
7.47L00
; ;-i.G0
1471.00
SALARIES
2-26.00
2.426.00
2.426.00
2.426.00
2426.00
2.426.00
2426,00
2.426.00
2.426.00
2426.00
2.426.00
2,425 ^0
2.42600
2.426.00
2425.OG
1-125 0
2.425.C-0
PAYROLL TAXES
:50.00
450.00
450.00
450.00
450.00
450.00
450.00
450.00
450.00
450A0
450.00
450.00
450.00
450,C-0
45^30
5_._..
45G.00
PCA HEALTH PLAN
485.00
485.00
485.00
485.00
485.00
485.00
485.00
485.00
485.00
485.00
485.00
485.00
485.00
485,00
4In5 n-,-%
s"S:=C
4851�
TRULY NOLEN
60.00
60.00
60.00
60.00
60.00
60AO
60.00
60.00
60.00
60.00
60.00
6.00
60:30
60.00
50 0-0
60.C;�
60.00
CRYSTAL SPRINGS
21.00
21.00
21.00
21.00
21.00
21,C0
21.00
21.00
21.00
21.00
21.00
21.00
2,.00
21,C0
21.00
2t CO
21_00
SHARP ELECTRONIC INC.
136.G0
136.00
136.00
136.00
136.00
136,00
1.36.00
136.00
136.00
136.00
136.00
l36 00
13600
135.00
1.30 00
136 C0
135.00
COMBINED WASTE SVC
531.00
531.00
531.00
531.00
531.00
531,00
521.00
531.00
531.00
531.00
531.00
531 C-0
531.00
531.00
531.00
531.00
531.00
FRED6aAR, INC.
125.00
125.00
125.00
125.00
125.00
125.G0
125.00
125.00
125.00
125.00
125.00
i25 cG
25.00
125.00
17'J'1
125.00
GATE SECURITY
35.00
35.00
35.00
35.00
35.00
35.00
35.00
35.00
35.00
35.00
35.00
35.00
35.00
35.00
35.00
35 0
35.00
FL DEPT OF REVENUE
359.00
359.00
359.00
359.00
359.00
359.00
359.00
359.00
359.00
359.00
359.00
359.00
359.00
359.C•0
359 O0
3=g.Gc
359.00
OFFICE DEPOT
150.00
150.00
150.00
150.00
150.00
150.00
150.00
150.00
150.00
150.00
150.00
150.00
50,00
i50.00
75G.v0
150 v0
i50A0
FPL
260.00
260.00
260.00
260.00
260.00
260.00
260.00
260.00
260.00
260.00
260.00
260.00
260.00
260.00
260.00
260 00
2.30.00
SOUTHERN BELL
240.00
240.00
240.00
240.00
240.00
240.00
240.00
240.00
240.00
240.00
240.00
240.00
240.00
240.00
240,00
240.00
240.00
PITNEY BOWES
70,00
70.00
70.00
70.00
70.00
70.00
70.00
70.00
70.00
70.00
70.00
70.00
70.00
70.00
70 00
70.00
70.00
AT & T
53.00
53.00
53.00
53.00
53.00
53.00
53.00
53.00
53.00
53.00
53.00
53.00
53.00
53.00
53.00
53.00
53.00
METRO DADE WATER
460,00
460.00
460.00
460.00
460.00
460.00
460.00
460.00
460.00
460.00
460.00
460.00
460.00
460.00
460.00
460.00
460.00
COMPLETE BUSINESS SYSTEM
40.00
40.00
40.00
40.00
40.00
40,00
40.00
40.00
40.00
40.00
40.00
40.00
40.00
40.00
40.00
40.00
40.00
LUCENT TECHNOLOGIES
119,00
-
119.00
-
119.00
-
119.00
-
119.00
-
119.00
-
119.00
-
119.00
-
119.00
-
119.00
-
119.00
-
119.00
-
119.00
-
119.00
-
119.00
-
119.00
-
119.00
-
TOTAL MONTHLY EXPENSES
7.491.00
7A91.00
7,491.00
7AS1.00
7A91.00
7,491.00
7.491.00
7.491.00
7.491.00
7.491.00
7,491.00
7.491.00
7.491.00
7.491.00
7.491.00
7,491.00
7.491.00
INCOME BEFORE DEBT SERVICE
7,880A0
7,880.40
7,88Q40
7,880.40
7.880.40
7.880.40
7,880.40
7,880.40
7.880.40
7.880.40
7,880.40
7,880.40
7.880.40
7.880.40
7,880.40
7.880.40
7.880.40
ADJUSTED ATTG PMT
5.367.00
5,367.00
5,367.00
5,367.00
5,367.00
5,367.00
5.367.00
5,36700
5.367.00
5,367.00
5.367.00
5,367.00
5.367.00
5.367.00
5.367.00
5.367.00
5,367.00
NET INCOME
2.513A0
2.513.40
2.513.40
2,513.40
2.513.40
2.513.40
2.513.40
2,513.40
2.513,40
2.513.40
2.513.40
2.513.40
2.513.40
2.513,40
2.513.40
2,513-40
2,513.40
Page 1
PAYMENT
MORTGAGOR
TACOLCY 3,748.58
METRO-DADE 1,221.00
METRO-DADE 508.67
CITY OF MIAMI 1,500.00
METRO-DADE 437.00
TOTAL PAYMENT 7,415,25
MORTGAGOR
EXCEL MORTGAGE
1,690.06
METRO-DADE
1,221.00
METRO-DADE
508.67
CITY OF MIAMI
1,500.00
METRO-DADE
447.00
TOTAL PAYMENT
5,366.73
2,048.52
k
Page 1 p�,