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HomeMy WebLinkAboutR-97-0722J-97-699 9/30/97 RESOLUTION NO. 9 7 ` 7.22 A RESOLUTION, WITH ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO AN EXISTING LOAN AGREEMENT, DATED JUNE 23, 1995, IN SUBSTANTIALLY THE ATTACHED FORM, WITH MIAMI/BAHAMAS GOOMBAY FESTIVAL IN COCONUT GROVE, INC., TO EXTEND THE MATURITY DATE OF SAID LOAN AND MODIFY THE TERMS OF REPAYMENT OF THE PRINCIPAL . BALANCE OF $57,802.12. WHEREAS, the City made a loan to Miami/Bahamas Goombay Festival in Coconut Grove, Inc., in the principal sum of $57,802.12, as evidenced by a Loan Agreement dated June 23, 1995; and WHEREAS, Miami/Bahamas Goombay Festival in Coconut Grove, Inc. has defaulted under the Loan Agreement by failing to pay the loan as of July 5, 1995, as required by said Loan Agreement; and WHEREAS, on May 7, 1997, the City Commission adopted Resolution No. 97-307, directing the City Manager to review and make a recommendation related to the repayment of the principal loan amount; and WHEREAS, the City Manager recommends that Miami/Bahamas Goombay Festival in Coconut Grove, Inc. pay the City $7,000.00 of the principal balance of $57,802.12, simultaneously with the execution of the herein Amendment to Loan Agreement which will require the payment of the remaining principal balance of $50,802.12 in forty-eight (48) monthly installments of $1,058.38, until paid in full; 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 authorized1/ to execute an Amendment to an existing Loan Agreement, dated June 23, 1995, in substantially the attached form, with Miami/Bahamas Goombay Festival in Coconut Grove, Inc., to extend the maturity date of said loan and modify the terms of repayment of the principal balance of $57,802.12. Section 3. This Resolution. shall become effective immediately upon its adoption. i� The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney, including but not limited to those prescribed by applicable City Charter and Code provisions. . - 2 - 9 22 PASSED AND ADOPTED this 14th day of October , 1997. ATTEST: JOE CAROLL , MAYOR WALTER J. , CITY CLERK PREPARED AND APPROVED BY: P OLGA IREZ-SEI S ASSI&TANT CITY AttO EY APPROVED AS TO FORM AND CORRECTNESS: A ./ 4I CITY A TORN Y W1900:BSS 0 - 3 - 97- 722 AMENDMENT TO LOAN AGREEMENT This Agreement is entered into as of the 29°i day of May, 1997, by and between the City of Miami, a municipal corporation of the State, of Florida (the "City"), and Miami/Bahamas Goornbay Festival in Coconut Grove, Inc_, a Florida not -for profit corporation (the "Borrower" ) WITNES SETH WHEREAS, the City made a loan to the Borrower in the principal sum of $57,802.12 (the "Loan"), which is evidenced by a Loan Agreement date June 23, 1995 (the "Loan Agreement"), and WHEREAS, Borrower has defaulted under the Loan Agreement by failing to pay the Loan on July 5, 1995, as provided therein; and WHEREAS, Borrower has requested an extension of the maturity date of the Loan and a modification of the terms for repayment of same, WHEREAS, on , 1997, the City Commission of the City of Miami adopted Resolution No. 97- , agreeing to extend the maturity date of the Loan and to modify the terms of its repayment, in accordance with, and subject to the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the City, the parties agree as follows: 1. Initial Payment: Simultaneously with the execution of this Agreement, Borrower shall pay to the City the sum of $7,000, to reduce the principal balance of the Loan. 2. Repayment Schedule: Borrower agrees to repay to the City the principal balance of the Loan in 48 monthly installments of $1,058.39, commencing on the first day of 1997, and thereafter, on the day of each month until paid in full. 3. Interest: The City hereby waives the payment of Interest under the Loan, provided, however, that in the event Borrower shall fail to make a payment, when due, then the entire Loan shall bear interest at the highest rate permitted by law, and, at the City's option, shall become immediately due and payable. Except as specifically provided herein, all of the terms and provisions of the Loan Agreement shall remain in effect. IN WITNESS WHEREOF, City and Borrower have executed this Agreement as of the date first above written. ORS:Goombav Festival Loan Amendment.doc 9 0— 722 K 9500g46 46 0 Name: Corporate Secretary ATTEST By: WALTER J. FOEMAN City Clerk APPROVED AS TO FORM AND CORRECTNESS wo A. QUINN JONES III City Attorney %;� Miami/Bahamas Goombay Festival in Coconut Grove, a Florida not -for profit Corporation Bv: Name: Title: President CITY OF MIAMI, a municipal corporation of the State of Florida By: EDWARD MARQUEZ City Manager APPROVED AS TO INSURANCE REQUIREMENTS By: MARIO SOLDEVILLA Assistant Director, Risk Management ORS:Goombay Festival Loan Amendment.doc 97- 722 TO FROM 0 _ CITY OF MIAMI, FLORIDA 6 33 INTER -OFFICE MEMORANDUM Honorable Mayor and Members of the City Commission 1 Edward M IQu� City Manager RECOMMENDATION: DATE: OCT 2 FILE: SUBJECT: Loan Agreement with Miami/Bahamas Goombay Festival REFERENCES: ENCLOSURES: City Commission Agenda It is respectfully recommended that the City Commission adopt the attached resolution, amending a loan agreement with Miami/Bahamas Goombay Festival in Coconut Grove, Inc., dated June 23, 1995, in order to extend the maturity date and modify the terms of repayment of the principal sum of $57,802.12. BACKGROUND: On June 23, 1995, the City of Miami entered into a loan agreement with Miami/Bahamas Goombay Festival in Coconut Grove, Inc., in the principal amount of $57,802.12. The terms of the Agreement require that the loan be repaid before July 6, 1995. The organization failed to repay the loan as provided by said Agreement. On May 7, 1997, the City Commission adopted Resolution No. 97-307, instructing the City Manager to work out an agreement related to the repayment of the loan. The Administration met with representatives of the Miami/Bahamas Goombay Festival and it was agreed that they pay the City an initial amount of $7,000.00 and the balance be repaid in 48 monthly installments of $1,058.38 until paid in full. Attachment: Proposed Resolution <shared-memosvh>mayorcc26 97- 722 1 _ Witia Df 'ffliamv ELBERT L. WATERS * IILI'/ IIILII *'� Director O � FC0., FV, May 29, 1997 Mr. William R. Rolle, Executive Director Miami Bahamas Goombay Festival in Coconut Grove, Inc. P. O. Box 330052 Miami, Florida 33133-0052 Dear Mr. Rolle: EDWARD MARQUEZ City Manager On June 23, 1995, the City of Miami executed a Loan Agreement with your organization in the amount of $57,802.12 to be used for payment of City of Miami services and fees related to the 1995 Goombay Festival. According to the terms of said Agreement, your organization agreed to repay the loan on or before July 5, 1995, with the proviso that any amounts not paid when due would accrue interest at the highest rate permitted by law. On May 22, 1997, City of Miami staff met with you to discuss the repayment of said loan to the City of Miami. After extensive discussion, it was agreed that you will pay the principal amount of $57.,802.12 by making an initial payment of $7,000 and to repay the balance of $50,802.12 in 48 monthly installments of $1,058.38, interest free. We are hereby accepting your initial payment of $7,000 with the understanding that you agree to modify your existing loan agreement in accordance with the terms set forth in the preceding paragraph, and that you agree to sign any and all documents required by the City of Miami in order to execute said modification. It is requested that you sign below, accepting the terms set forth in this letter. Sincerely, Elbert LWaters, Interim Director Department of Community Development William R. Rolle,-Exe6utArve, Director Miami Bahamas Goombay Fe8fival, in Coconut Grove, Inc. cc: Aaron Weeks, Chief of Staff Robert Nachlinger, Assistant City Manager DEPARTMENT OF COMMUNITI DEVELOPMENT 444 S.W. 2nd Ave., 2nd Floor Miami, Florida 33130.'t305) 416-2080iFax: (305) 416-2090 3 Mailing Address: P.O. Box 330708.Miami, FL 33233-0708 9 7 ^ 722 f E 0 .- f ",- MMER SPENDS THE WINTER '63.460 660 R4 Lr) CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM Edward Marquez, City Manager DATE May 22, 1997 FI;.E Through: Robert Nachlinger Assistant City Manager SUBJECT : Miami/Bahamas Goombay Festival Loan rRON1 Elbert L. • aters, Interim Director REFERENCES Community Development Department ENCLOSURES: On May 7t , 1997, the City Commission granted certain approvals to the Miam/Bahamas Goombay Festival Committee, contingent upon repayment of an existing loan in the principal amount of $57,802.12, which was used for the payment of City services during the 1995 Miami/Bahamas Goombay Festival. The borrower agreed to repay the loan before July 6", 1995, and, if defaulted, any amount .not paid at that time would accrue interest at the highest rate permitted by law. Today, at your directive, we met with representatives of the Miami/Bahamas Goombay Festival Committee, namely, Mr. William Rolle, Executive Director and Ms. Dorothy Lee, a member of the Board of Directors. Also present at the meeting was Assistant City Attorney Olga Ramirez-Seijas, Mr. Louie Brennan and Jose Matas from the Department of Budget, Espe Avalos, Special Events Coordinator of my staff. After extensive discussion, the Miami/Bahamas Goombay Festival representatives agreed to make an initial payment of $7,000 and to repay the balance of the loan, $50,802.12 in 48 monthly installments at $1,058.38, interest free. It is recommended that the existing loan agreement be modified to reflect the aforementioned repayment arrangement and the default interest be waived, since the organization does not have the financial means to repay the loan in a more expeditious manner. ELW/bd c: Olga Ramirez-Seijas, Assistant City Attorney Luie L. Brennan, Management Analyst Supervisor Jose Matas, Accountant Supervisor Espe Avalos, Special Events -6or . ator LApprov d/Disapprovec g7-- 722 7