HomeMy WebLinkAboutR-97-0338R-97-0338
No Resolution on file
with the Clerk's Office.
See attached
supporting documents
and minutes for said
resolution.
May 7, 1997
97-338
Legis
Subordination by Deal Rehab & Liberty City
Corp.
Pendinglegislation 10:52 AM09/)2/2000
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO : Honorable Mayor & Honorable DATE May 7, 1997 FILE
Members of the Commission
SUBJECT pocket Item for 5/7/97
Commission Meeting
FROM Humberto Hernandez REFERENCES
Commissioner 6%ENCLOSURES
I would like to place the attached as a pocket item for the May 7, 1997 Commission
Meeting Agenda.
b7-- 338
H. Subordination request by Ideal Rehab, Inc, and Liberty City Improvement,
Corp.
CURRENT CITY POSITION
behind WASA and lst
CITY POSITION AFTER RESTRUCTURE
$ 565,000 behind 1st
$ 700,000
3rd mortgage (Miami Capital) $ 69,800* 3rd mortgage (Miami Capital) $ 47,300*
2nd mortgage (City of Miami)
$ 863,000
2nd mortgage ( City)
$ 763,000
1 st mortgage
$ 470,000
1 st mortgage
paid off
WASA lien
95,000
WASA lien
paid off
total indebtedness
$1,497,800
total indebtedness
$1,510,300
As a result of debt restructuring, total indebtedness for the project will increase by
$12,500. The City's direct exposure in the deal will be reduced by $100,000, while the
City retains 2nd position behind a mortgage only $50,000 higher than current debt senior
to the City's loan.
This project falls under category three (3) of the City's subordination requirements, a
copy of which is attached in Addendum I. This section of the Department's regulations
requires that an appraisal be obtained. However, appraisals submitted to Ocean Bank
indicate that value to be $1,663,000. According to the developer, certain conditions have
changed since the appraisal was obtained that would warrant a higher market value.
However, if we consider that the total indebtedness of the project will only increase by
$12,500 and that an emergency situation exists that threatens the well-being of the
projects' residents, the additional time and expense that will be involved in updating the
appraisals we currently have on hand may prove to be more costly than we anticipate at
this time.
Should you have any questions, please do not hesitate to contact me 579-6025.
97- 338