HomeMy WebLinkAboutM-97-0545CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO: Honorable Mayor and Member DATE: July 23, 1997 FILE:
of the City Commission
SUBJECT: Pocket Item for 7/23/97
Commission Meeting
Humberto Hernandez
FROM:
Commissioner REFERENCES:
ENCLOSURES:
I would like to bring as a pocket item on the July 23, 1997 Commission Meeting the
following item:
A new proposal by Ideal Rehab Inc. for:
Subordination agreement between City of Miami, Miami Capital Development
Corporation, and Ocean Bank.
.97- 545
C`
(1,1ttir of ffliaml, 4flvriba
��
44
P.O. BOX 330708
'F
MIAMI, FLORIDA 33233-0708
T
NUMBER MI DEZ y�
13O5) 250-5380
COMMISSIONER
FAX (306) 250.5388
July 11, 1997
Mr. Robert G. Beatty
150W. Flagler Street, Suite 1815
Miami, Florida 33130
SUBJECT: NEW PROPOSAL FOR:
SUBORDINATION AGREEMENT BETWEEN CITY OF MIAMI,
MIAMI CAPITAL DEVELOPMENT CORPORATION, AND OCEAN
BANK.
Dear Mr. Beatty:
Sentra Properties has submitted this new proposal offering additional collateral to
improve the City's position in the refinancing of Ideal Rehab Inc. and Liberty City
Improvement Corp. that was approved last month by the Commission.
There is a property located at 1130-1142 N.W. 2nd Avenue owned by Overtown
Improvement Corp.
The property has three (3) mortgages that are as follows:
First Mortgage with Popular Bark of Florida for about 889,000.
Second Mortgage with Mrs. Luz Cordova for $1,000,000 dated March 25, 1988,
filed on May 13, 1988 under Clerk's File No. 88R-168431 recorded in Official
Records book 13679 page 466 Public records of Dade County Florida and
encumbering the property.
Third Mortgage with City of Miami for about $600,000.
Last year, on April 30, 1996 the $1,000,000 Mortgage owned by the Cordoba family was
subordinated to the Popular Bank loan that was used to pay the $100,000 that the City
received at that time.
9-7- 545
That mortgage was subordinated as per the attached copy but has not been assigned to
any party.
As Sentra Properties understands the Liberty City refinancing is considered not to have
sufficient equity if the city increases its subordination by $200,000 as was requested.
Thus, after extensive consultation with the owners of that $100,000,000 mortgage, they
have agreed to assign the $100,000,000 mortgage to the City of Miami to improve their
equity position on the Liberty City refinancing.
As shown in the attached first page of the last MAI appraisal on the property the value of
the property is $1,785,000 which proved an ample cushion for the City's increased
subordination of $200,000.
I will appreciate your approving this increased collateral offer as soon as possible due to
the emergency of the situation.
Sincerely,
Humberto Hernandez
Commissioner .
HHtyd
C:/ Word/hhdoddeari. cod
9?- 545