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Home My WebLink AboutR-96-0111J-96-358 2/29/96 RESOLUTION NO. 96 - 111 A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, WITH MIAMI CAPITAL DEVELOPMENT, INC., WHEREBY THE CITY AGREES TO ACCEPT THE REDUCTION OF MIAMI CAPITAL DEVELOPMENT INC.'S CITY REVOLVING LOAN FUND'S RECEIVABLES BY $199,201.48 AND RELEASE MIAMI CAPITAL DEVELOPMENT, INC. FROM ITS REPORTING OBLIGATION TO THE CITY WITH REGARD TO OUTSTANDING LOANS MADE TO MIAMA RIVER GROUP, INC. IN SAID AMOUNT, IN LIEU OF REPAYMENT OF SAID LOANS, THE PROCEEDS OF SAID LOANS HAVING BEEN EXPENDED ON PUBLIC FACILITIES IMPROVEMENTS TO FORT DALLAS PARK; RELEASING MIAMA RIVER GROUP, INC. FROM ITS OBLIGATION WITH REGARD TO SAID LOANS; FURTHER, INSTRUCTING THE CITY MANAGER TO GRANT TO MIAMA RIVER GROUP, INC. AN ABATEMENT OF THE MINIMUM GUARANTEE PAYMENT REQUIRED UNDER THE LICENSE AGREEMENT BETWEEN MIAMA RIVER GROUP INC. AND THE CITY, IN AN AMOUNT NOT TO EXCEED $55,798.52, WHILE MAINTAINING THE REQUIREMENT FOR PAYMENT BASED ON PERCENTAGE OF GROSS RECEIPTS; FURTHER, AUTHORIZING THE CITY MANAGER TO EXECUTE THE NECESSARY DOCUMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, TO EFFECTUATE SAID PURPOSES SET FORTH HEREIN. WHEREAS, the City Commission is desirous of promoting and encouraging economic development in the City's neighborhood target areas; and WHEREAS, the City Commission provides financial assistance to businesses within neighborhood target areas through the Community Development Block Grant Program through its lending arm, Miami Capital Development, Inc. ("MCDI"); and CITY COMMISSION MEETING OF FEB 2 9 1996 Resolution No. 96- 111 WHEREAS, Miama River Group, Inc., doing business as Ft. Dallas Restaurant, ("Miama River Group"), the operator of a restaurant (the "Restaurant") located in the Downtown Neighborhood Target Area of the City, requested and obtained financial assistance from MCDI's City Revolving Loan Fund (the "RLF") in the form of three loans (the "Loans")in the total amount of $230,000 for the construction of a restaurant, park and river dock in Fort Dallas Park (the "Park"), a City park designated as a historic site; and WHEREAS, the Loans are evidenced by three (3)loan agreements, two of which are dated October 8th, 1992 and one dated July 29, 1988, executed by Miama River Group, as borrower and Bijan Nahkjavan and Farhan Rouhani, as guarantors (the "Guarantors");and WHEREAS, due to unforeseen circumstances, which include but are not limited to: (1) higher than anticipated costs of maintenance for the Park due to its designation as a historic site; (2) changes to the South Florida Building Code and construction price increases resulting therefrom; (3) obstructions and delays in the completion of the Brickell bridge; (4) construction of the Metrorail station; (5) ongoing reconstruction of the street in front of the Park; (6) capital improvements; and (7) dilution of investment, the repayment of the remaining balance of the Loans by Miama River Group would lead to the financial collapse of the Restaurant; and 2 96" fit WHEREAS, the use of the proceeds of the Loans in the construction of public facilities improvements to the Park constitutes a valuable improvement to the City's property; and WHEREAS, the successful continuity of operation of the Restaurant would result, not only in the continuing provision of a valuable service to the general public and of jobs to low and moderate income local residents, but would also serve as a catalyst for further revitalization of the City of Miami's Downtown Neighborhood Target Area; and WHEREAS, the City Commission wishes to mitigate Miama River Group's and Guarantors' undue financial burden in order to make the continuing operation of the Restaurant financially feasible; 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 an Agreement, in a form acceptable to the City Attorney, with MCDI whereby the City agrees to accept the reduction of MCDI's RLF's receivables by $199,201.48 and release MCDI from its reporting obligation to the City with regard to outstanding Loans in said amount, in lieu of repayment of the Loans, the proceeds 1 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, 3 06 W 111 of the Loans having been expended on public facilities improvements to the Park. Section 3. Miama River Group is hereby released from its obligation with regard to the Loans. Section 4. The City Manager is hereby instructed to grant to Miama River Group an abatement of the Minimum Guarantee Payment required under the License Agreement between Miama River Group and the City, in an amount not to exceed $55,798.52, while maintaining the requirement for payment based on Percentage of Gross Receipts. Section 5. The City Manager is hereby authorized to execute the necessary documents, in a form acceptable to the City Attorney, to effectuate said purposes set forth herein. Section 6. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 29th day of February 1996. STEPIEN P. CLARK, MAYOR ATTEST: TER J . �' , MAN CITY C ERK PREPARED AND REVIEWED BY: ' IRMA M. ABELLA ASSISTANT CITY ATTORNEY W792:IMA:csk 4 APPROVED AS TO FORM AND CORRECTNESS: . rig A NN 0 S, I I CITY TT EY A- III SIJAN NAIUMVAN 2601 BALISSEE STREET COCONUT GROVE, FLORIDA 33133 December 26, 1995 Honorable Mayor, Stephen P. Clark THE CITY OF MIAMI Pan American Drive Miami, Florida 33133 Re: LOANS FROM MIAMI CAPITAL DEVELOPMENT INC., AND RENTAL OF CITY PROPERTY Dear Honorable Mayor: I, Bijan Nakhjavan, owner of the Miami River Group d/b/a Ft. Dallas Restaurant, located at 64 S.E. 4th Street in the 'City of Miami (your tenant). We are requesting of the elected officials of the City of Miami that they place on the agenda the following proposal in order to pay the three (3) outstanding loans provided by MCDI to Ft. Dallas Restaurant for working capital ($6,150.10) and purchase of fixed assets ($43.051.38)(equipment) in a' manner acceptable to MCDI and to compensate Bijan for dollars paid by him in City's property, for renovation, replacement and repairs directly related to the renovation of a City Park and Historic Site. ($150,000) We are asking the City for relief from the MCDI's $150,000 loan, which may be accomplished by deobligating funds allocated by the City to MCDI and a payment for the balance due on the other two (2) loans, $49.201.48 as well as a rent credit of $55,798.52, which represents dollars reinvested in the City property to cover damage, repair and replacement maintenance and capital improvements related to the Metro Mover construction, the Brickell Avenue Bridge and the closing of the street in front of the Park The above mentioned request is not unusual, the City directly assisted a similar project on May 25, 1995, a $135,000 loan given to Peoples Drugs (Lewis Bar B-Q) by the City, with CDBG funds, was converted into a grant, as a financial relief. From the positive perspective, Bijan is providing a valuable service to the City of Miami, by managing, maintaining and caring 1 for a City property, (City Park - Historic Site) providing needed jobs to low and moderate income people, and have made a serious investment in that property, showing very little return for his money. In the other hand, if Bijan is forced to leave, not only the investment of the last six years will be gone, but also the property runs the risk of becoming a slum and blighted area. The breakdown on the number will be as follows: $150,000 to MCDI from Deobligated Funds previously allocated to MCDI .3 $ 50,000 to MCDI from and Interest 3 $55,798.52 to Bijan's Restaurant as a rent credit to pay Principal Therefore, we are hereby requesting your asking the City Manager to place this item at your earliest convenience in the City Agenda so the proper resolution can be considered. Your favorable consideration to this appeal is hereby requested. Sincerely, 131 j an Nakhj avan -- > CC: Honorable Commissioner Miller Dawkins Honorable Commissioner Wilfredo Gort Honorable Commissioner J. L. Plummer Honorable Commissioner Joe Carollo Mr. Cesar Odio, City Manager Pablo Perez -Cisneros, MCDI 2 9G-- 111 BIJAN NAKEJAVAN 2601 HALISSEE STREET COCONUT GROVE, FLORIDA 33133 January 6, 1996 Pablo Perez -Cisneros, Executive Director Miami Capital Development Inc. 300 Biscayne Boulevard, Suite 614 Miami, Florida 33133 Re: MIANA RIVER GROUP —YOUR LETTER DATED DECEMBER 11, 1995 ref. L#1483/95 CITY RLF Dear Mr. Perez -Cisneros: In response to your letter of above references enclosed please find a copy of letter dated December 26, i995 to Mayor Stephen P. Clark, which is self explanatory. Our request for additional time to pay you until this item is either. approved or denied by the City Commission is hereby solicited. We thank you for your understanding. Sincerely, Bijan Nakhjavan cc: Honorable Commissioner Miller Dawkins Honorable Commissioner Wilfredo Gort Honorable Commissioner J. L. Plummer Honorable Commissioner Joe Carollo Mr. Cesar Odio, City Manager Mr. Juan A. del Cerro, President, MCDI 3