HomeMy WebLinkAboutR-96-0534J-96-979
7/1 1 /96
RESOLUTION NO. 9 6- 534
A RESOLUTION, WITH ATTACHMENT, AUTHORIZING THE
CITY MANAGER TO WORK OUT A MODIFCATION TO THE
LOAN COMMITMENT MADE BY MIAMI CAPITAL
DEVELOPMENT, INC. (MCDI), TO MR. JIHAD S. RASHID, FOR
FALAH ENTERPRISES, INC., DATED APRIL 18, 1996, TO
PROVIDE A ONE -TIME -ONLY WORKING CAPITAL LOAN, IN
THE AMOUNT OF $42,400.00, FROM THE MCDI MICRO -
ENTERPRISE LOAN FUND AND OTHER CONDITIONS AS
HEREIN SPECIFIED; FURTHER AUTHORIZING MCDI TO
APPROVE SAID LOAN IN ACCORDANCE WITH THE
APPLICABLE ECONOMIC DEVELOPMENT GUIDELINES FROM
THE U.S. DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT (USHUD).
WHEREAS, the City Commission is desirous of promoting and encouraging
economic development and commercial revitalization in the City's neighborhood target
areas; and
WHEREAS, the City Commission provided financial assistance to small businesses
within neighborhood target areas through the Community Development Block Grant
Program and the City's lending entity, Miami Capital Development, Inc. (MCDI); and
WHEREAS, FALAH Enterprises, Inc. (FALAH) applied for a business loan from MCDI
which was approved, subject to certain conditions as stated in MCDI's letter of
commitment dated April 18, 1996; and
WHEREAS, the City Commission wishes to provide a loan to FALAH and has
instructed City staff and MCDI to extend a one -time -only working capital loan; and
ATTACHMENT `S).
%CONTAINED
CITY COMMISSION
MEETING OF
J U L 1 1 1996
Resolution No.
96- 534
WHEREAS, FALAH is a small business operating in the designated Coconut Grove
community development target area; and
WHEREAS, the Coconut Grove target area has not been the recipient of many
business loans from either the public or private sector;
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 work out a modification to
the loan commitment, dated April 18, 1996, from MCDI to Mr. Jihad S. Rashid (Rashid) of
FALAH, to provide a one -time -only working capital loan, in the amount of $42,400.00,
from the Micro -Enterprise Loan Fund of MCDI.
i
Section 3. The City Manager is further authorized to negotiate a reduction of the
original Miami Capital loan from $50,000.00 to $42,400.00, and the City will forgive the
existing indebtedness of Rashid, in the amount of $3,602.00, from a previous City loan
i
and will further participate in the commercial facade rehabilitation for FALAH, in an amount
not to exceed $4,000.00, and in accordance with guidelines of the Citywide Commercial
Facade Program.
Section 4. FALAH agrees to accept the financial and technical assistance
available through the Small Business Assistance Center at Florida International University
and Tools for Change.
96- 534
Section 5. MCDI is hereby instructed to approve the modified new loan in
accordance
with applicable economic
development guidelines of
U.S. Department of
Housing and
Urban Development with
funds allocated from the
Micro -Enterprise Loan
Program.
Section 6. This Resolution provides for a one -time -only loan to FALAH and
FALAH agrees that further financial assistance from MCDI or the City of Miami will not be
sought.
Section 7. In addition to the hereinabove stipulations, the MCDI loan
commitment will also be modified as to collateral, contingencies and other conditions to
facilitate the prompt execution of the loan.
Section 8. The requirement for placing a second mortgage on residential property
located at 3127 New York Street, Coconut Grove, Florida, is specifically deleted. All other
terms and conditions remain unchanged.
Section 9. The
City Manager and MCDI are
hereby authorized'
to
execute the
necessary documents, in
a form acceptablbe to the
City Attorney, for
the
purposes as
herein set forth.
Section 10. This Resolution shall become effective immediately upon its adoption.
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.
i 3-
9E- 53/1
PASSED AND ADOPTED this 11 th day of July, 199E
ATTEST:
WALT F EMAN
CITY CLERK
APPROVED AS TO FORM AND CORRECTNESS:
''. ;_X -,
A.* QUINN JONES, II"
CITY ATTORNEY
W 1034:CSK:ROD
-4-
GORT, VICE -MAYOR
96- 534
MIAMI CAPITAL DEV"ELOPAIEN rt INC.
DUPONT PLAZA CENTER o 300 BISCAYNE BLVD. WAY • SUITE 614
MIAMI, FLORIDA 33131-2207 . TEL: (305) 358-1025 {�
July 1996
Mr. Jihad S. Rashid
FALAH ENTERPRISES, INC.
3692 Grand Avenue
Coconut Grove, Florida 33133
Re: Loan Approval - Our Ref. (L#985/96) CITY
Dear Mr. Rashid:
MIAMI CAPITAL DEVELOPMENT, INC. (hereafter referred to as MCDI) is
pleased to confirm the availability of a $42,400.00 Forty -Two
Thousand Four -Hundred Dollars) loan to FALAH ENTERPRISES, INC.
(hereafter referred to as the borrower), subject to the following
terms and conditions to wit:
BORROWER: Falah Enterprises, Inc.
GUARANTORS: Mr. Jihad S. Rashid & Mrs. Aisha Rashid, his
wife
(Unlimited Guarantor)
PRINCIPAL: $42,400.00 - U.S. DOLLARS
PURPOSE: Working Capital Loan
RATE: Three percent (3.0%)
REPAYMENT: Month 1 through month 84 payments of $560.24
(Principal & Interest), due on the first of
every month. Starting with first payment due
on September 1, 1996 until maturity.
COLLATERAL & CONTINGENCIES
Security Interest under the Uniform Commercial Code
(UCC-1) on all Corporate Assets now owned and thereafter
acquired.
96- 53
In the event proceeds of the loan are used for working capital
needs such as inventory acquisition, payment of salaries, accounts
payable, and other accrued expenses related to the operation of the
business, at any time during the life of the loan, MCDI reserves
the right to request, in writing, a detailed breakdown of the use
of the working capital proceeds.
SPECIAL CONDITIONS
1. Borrower will provide MCDI with proof of commercial insurance.
The premium paid shall be non-refundable and the policy shall
be non -cancelable for said period. MCDI shall be listed as
Loss Payee on the policy. Borrower shall also provide MCDI
with a non -cancelable Insurance Policy on the life of Mr.
Jihad S. Rashid for an amount of not less than $25,000.00 with
MCDI designated as beneficiary and assignee.
2. Borrower will have thirty (30) days, after the closing date to
provide MCDI with proof of Commercial Insurance for fixed
assets acquired through the proceeds of this loan. Proof of
insurance shall be in the form of an issued policy paid in
advance for a period of no less than one year, with MCDI
listed as a Loss Payee. The premium paid for the Insurance
Policy shall be non-refundable and the policy shall be non -
cancelable for said period.
3. The insurance policy shall be subject to MCDI's approval and
shall have a provision for notification to the loss payee, or
assignee in the event of cancellation and/or non payment of
premium and any other defaults.
4. MCDI's representatives shall have unlimited access during
_normal business hours, without need to give notice, to
Borrower's and Guarantor's accounting books, records, reports,
correspondence and premises where inventory, supplies and
other assets are stored. .
5. Borrower shall not declare or pay dividends to stockholders
without the written consent of MCDI. In addition, all
stockholders loans shall be subordinated in favor of MCDI.
6. The Borrowers must provide MCDI with a copy of the payroll
registry, and Family Income and Size Certification form -
(supplied by MCDI) signed by each employee on a yearly basis.
Both the payroll registry and the Family Income and Size_
<-,? - 96-
borrower has retained 2 jobs and created 4 jobs within a two
year period of the drawdown date. Furthermore 51% of the jobs
created must be available to low/moderate income families, and
the borrower will provide training for any position requiring
special skills or education. Prior to loan closing, the
Borrower must submit documentation acceptable to MCDI
evidencing the retention of 2 jobs and the planned creation of
4 jobs. Acceptable documentation shall include, but not be
limited to, a" Comment Memorandum" from the City of Miami
Neighborhood Jobs Program Office based on a review of the
Borrower's Business Plan for Compliance with Job Creation
Goals and First Source Hiring Requirements.
In addition to the requirements stated above, Borrower's
receiving City of Miami's funds, shall, in the hiring of
employees, comply with the City of Miami's First Source Hiring
Ordinance, as approved by the City Commission on July 24, 1986
via Resolution No. 86-855. This First Source Hiring Ordinance
requires that every employment opportunity first be given to
the unemployed and under -employed. More specifically, all jobs
created as a result of contracts for facilities, services,
and/or all receipts of Grants and Loans are subject to first
being filled by participants in the City of Miami's training
and employment programs, and/or thereafter by other residents
of the City of Miami.
7. In the event that any of the loan proceeds are being used for
acquisition of real property, no funds -shall be disbursed
until MCDI has received and accepted written inspections of
the property conducted by inspectors acceptable to MCDI. Such
inspections shall include but not be limited to termites,
roof, electrical, plumbing, mechanical, etc.
OTHER CONDITIONS
1. Borrower's President, Jihad S. Rashid, shall be devoted "full
time" to the management of the borrowing business as long as
such business is indebted to MCDI. Conversely, Mr. Rashid
shall not accept any outside employment, full or part-time,
during the life of this loan.
2. MCDI shall be provided with a certified copy of the Borrower's
Articles of Incorporation, By-laws of the Corporation and
Certificate of Good Standing.
_ 96- 534
3. In the event the loan proceeds are being used for the
acquisition of real property, or a Commercial Property is
being offered to MCDI as collateral for this loan, the
Borrower shall, prior to closing, provide MCDI with a Phase I
environmental audit on the subject property acceptable to MCDI
which has been prepared by a company or agency acceptable to
MCDI.
4. In the event Borrower is leasing the premises in which it is
conducting its business, a Landlord Subordination of Lien
shall be submitted in MCDI's favor.
5. In the event that any portion of the loan proceeds are to be
used for construction the Borrower must meet the requirements
of the Davis -Bacon Act, as amended.
6. Borrower shall retain the services of a Accountant who is
acceptable to MCDI. Such undertaking shall be formalized by
an Engagement Letter signed by the Borrower and the
Accountant, which provides for quarterly interim statements
and annual Financial Statements validated by Internal Revenue
Service Tax Returns. Quarterly statements shall be received by
MCDI not later than thirty (30) days after the end of each
quarter; annual financial statements shall be received by MCDI
not later than ninety (90) days after the close of the Fiscal
Year. The Engagement Letter must specifically state the scope
of the work to be performed by the Accountant; at the very
minimum, the Borrower and the Accountant must ensure that
sufficient bookkeeping work is performed to ensure that the
Borrower's accounting system provides meaningful and reliable
accounting/financial data which both, the Borrower and MCDI,
need for the continuing management and evaluation of the
business. Borrower's principal(s) and guarantor(s) shall
provide MCDI with annual Personal Financial Statements,
validated by Internal Revenue Service Personal Tax Returns, no
later than ninety (90) days after the close of the calendar
year.
7. Borrower shall not assume other loans or be a guarantor for
others or himself, without the written consent of MCDI, except
for normal suppliers' trade credit and/or short term (less
than one year) working capital loans.
/4/- 96 - 534
8. No change in ownership of Borrower or Principals) business
purpose shall take place during the term of this loan without
the written consent of MCDI. Borrower also agrees not to
consolidate with, or merge into, any other entity or person
nor sell any of its stock to any other entity or person
without the written consent of MCDI.
9. Failure to pay any principal and/or interest on this
obligation, taxes when due, bankruptcy or similar proceedings
or any violation of any of the terms and conditions, as set
forth in this Commitment Letter, shall cause this loan to be
in default and the full amount of principal and interest shall
become due and payable immediately.
10. In the event there is another lender(s) or investor(s)
participating with MCDI in this financing, MCDI's loan is
contingent upon formal approval of the loan or equity
injection provided by the other lender(s) or investor(s).
Drawdown date on MCDI's loan cannot be earlier than drawdown
date on the participating lender(s) or investor(s).
11. Disbursement of funds will be based on the availability of
funding.
12. Borrower will pay all costs and expenses, anticipated to
include but not limited to, Documentary Stamp taxes,
Mortgagee's title policy, credit investigations, searches and
legal fees. Should any funds have to be held in escrow after
the loan take down date, an additional escrow fee may be
necessary to be paid out of the funds held in escrow for the
services of the escrow agent. Legal fee of MCDI's counsel
will be to of the loan amount with a minimum of $500.00 for
all loans under $50,000.00.
13. Borrower is not to move business location from within the
designated target area as represented in MCDI's Application.
.Any relocation within the designated target area must be
approved in writing by MCDI. In the event that, without.prior
written approval, the Borrower relocates to an area outside
MCDI's designated target areas, such action will cause this
loan to be in default and the full amount of principal and
interest shall become due and payable immediately.
14. MCDI, at its sole and exclusive discretion, may extend and/or
modify this Commitment provided that the original commitment
is accepted and executed by the Borrower and Guarantor (s). All
requests for extensions of this Commitment must be made in
writing and submitted prior to its expiration date explaining
96- 53
why the additional time is needed. If MCDI decides to extend
this Commitment, it may request that the Borrower provide such
additional information as deemed necessary, such as but not
limited to financial statements of both the business and its
principal (s).
15. This Commitment shall automatically expire sixty (60) days
from the date of this letter and Miami Capital Development,
Inc. shall have no further obligation hereunder. Your
attention is therefore called to the fact that it is incumbent
upon you to gather all required documentation, perform all
acts and fulfill all prerequisites, as soon as possible, so
that this loan will close prior to said termination date.
Pursuant to the City of Miami's Resolution No. , this
Commitment Letter supersedes the previous Commitment
Letter dated April 18, 1996, which is hereby rescinded,
and shall be valid until September 8, 1996 provided
that all terms and conditions are continuously met
including, but not limited to, tax, legal compliance and
all agreed upon exceptions. The referred City of Miami
Resolution No. , dated is hereby attached for
reference purposes.
If you are in accordance with these terms and conditions, kindly
countersign the enclosed copy of this letter and return, within
fifteen (15) days of the date of this letter, to Mr. Pablo Perez -
Cisneros, Executive Director (MCDI) with one non-refundable check
in the amount of: (a) One Hundred & Fifty ($150.00) Dollars,
payable to our Attorneys, KOPPEN & WATKINS, PARTNERS & ASSOCIATES,
P.A., which will be applied against future closing cost; Failure to
return this executed commitment letter and the required check
within fifteen (15) days of the date of this letter will result in
the automatic cancellation of this loan commitment.
Sincerely,
MIAMI CAPITAL DEVELOPMENT, INC.
l�
Pablo Perez -Cisneros
Executive Director
City of Miami Concurrence:
Elbert L. Waters
Direct r, City of Miami NET
96-- 5:
ACCEPTED BY: FALAH ENTERPRISES, INC.
Jihad S. Rashid, Presiden
ACCEPTED BY: As Unlimited Guarantors
Jihad S. Rashid (Unlimited Guarantor)
Aisha Rashid (Unlimited Guarantor)
-7
DAYMENT
DATE
2 96
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Fallah Enterprises, Inc.
BEGINNING LOAN BALANCE: $42,400.00
NUMBER OF PERIODS: 84
PERIOD TYPE: Monthly
ANNUAL INTEREST RATE PAID 3.2311)
PAYMENT AMOUNT: $560.24
PRINCIPAL
PAID
$454.24
$455.38
$456.51
$457.66
---------------
$1,S23.79
$1,823.79
$458.80
$459.95
$4G1.10,
$462.25
$463.40
$464.56
$465.72
$466.89
$468.06
$469.23
$470.4e
$471.58
---------------
$5,S81.94
$7,405.73
INTEREST
TOTAL
LOAN
PAID
PAYMENT
BALANCE
$106.00
$560.24
$41,943.76
$104.86
$560.24
$41,490.38
$103.73
$560.24
$41,033.87
$102.58
$560.24
$40,576.21
$417.17
$2,240.96
$40,576.21
$417.17
$2,240.96
$40,576.21
$101.44
$560.24
$40,117.41
$100.29
$560.24
$39,657.46
$99.i4
$563.24
$391196.36
$97.99
$560.24
$3S,734.11
$96.84
$560.24
$38,270.71
$95.68
$560.24
$37,SOG.15
$94.52
$560.24
$37,340.43
$93.35
$560.24
$36,a73.54
$92.18
$560.24
$36,405.48
$91.01
$560.24
$35,936.25
$89.84
$560.24
$35,465.S5
$88.66
$560.24
$34,994.27
------------------------------
$1,140.94
---------------
$61722.88
$34,994.27
$1,558.11
$8,963.84
$34,994.27
r-
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96- 5:344
='AYMENT
DATE
J 98
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_ 98
3 98
98
I" 98
J 98
98
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99
99
99
99
99
99
99
99
99
99
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100
100
100
100
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100
100
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Fa.11ah Enterprises, Inc_.
PRINCIPAL
PAID
$472. 75
$473. 94
$475. 12
$476. 31
$477. 50
$478. 69
$479. 89
$481. 09
$482. 29
$483. 50
$484. 71
$485. 92
---------------
$5, 751. 71
$ 13, 157. 44
$487. 13
$488. 35
$489. 57
$490. 80
$492. 02
$4 3. `5
$494. 49
$495. 72
$496. 96
$498. 20
$499. 45
$500. 70
------------
$5, 926. 64
$19, 084. 08
$501 . 95
$503. 21
$504. 46
$505. 72
$506.99
$508. 26
$509. 53
$510. 80
$512. 08
$513. 36
$514. 64
$515. 93
---------------
$6, 106. 93
$25, 191. 01
INTEREST
RAID
$87. 49
$ 8 1. 1 2
$83. 93
$82. 74
$81. 55
$80. 35
$79. 15
$77. 95
$76. 74
$75. 53
$74. 32
$971. 17
529.
$73. 11
$71.89
$70. 67
$69. 44
$68. 22
$66. 99
$65. 75
$64. 52
$63. 28
$62. 04
$60. 79
$59. 54
$796. 24
C 5 ��
$3, 3cJ. J�
$58. 29
$57. 03
$55. i8
$54. 5`
$53. `5
$51. 98
$50. 71
$49. 44
$48. 16
$46. 88
$45. 60
$44. 31
$615. 95
$3, 941. 47
q
TOTAL
PAYMENT
$560. 24
$560. 24
$`.,60. 24
$560. 24
$560. 24
$560. 24
$560. 24
$560. 24
$560. 24
$560. 24
$560. 24
$560. 24
---------------
$6, 722. 88
$ 15, Gab. 72
$560. 24
$560. _4
$560. 24
$560. 24
$560. 24
$560. 24
$560. 2L
$560. 24
$560. 24
:6560. 24
$560. 24
$560. 2 4
---------------
$67722. 88
$227409. 60
$560. 24
$360. 24
$560. 24
$560. 24
$560. 24
$560. 24
$560. 24
$560. 24
$560. 24
$560. 24
$560. 24
$560. 24
---------------
$6, 722. 88
$291132. 48
LOAN
BALANCE
U4 5`1. 52
$34, 047. 55
$ 33, 572. 46
$33, 096. 15
$32 , 618. 65
$32, 139.96
$31, 66k7. 07
$31, 178.98
$30,696.69
$30, 213. 19
$29, 728. 48
$29, 242. 56
---------------
$29, 242. 56
$29, 242. 56
$28, 755. 43
$28, 267. 08
$27, 777. 51
$27, 286. 71
$26, 794. 69
$26, 301. 44
$25, 806. 95
$25, 31 1 . `3
$24, 814. 27
$24, 316. 07
$23, 816. 62
$23, 315. 92
---------------
$23, 315. 92
$23, 315. 92
$22, a13. 97
$22, 310. 76
$21, 806. 30
$21, 300. 58
$20, 793. 59
$20, 285. 33
$19, 775. 80
$19, 265. 00
$ l a, 752. 92
$18, 239. 56
$17, 724. 92
$17, 208. 99
---------------
$17, 208. 99
$17, 20a. 99
96-- 53
AYt=LENT
DATE:
J 101
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3 101
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102
102
102
102
102
102
102
102
102
102
102
102
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103
103
103
103
103
103
103
103
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Fallah Enterprises, Inc.
PRINCIPAL
PAID
$517.22
$518. `,1
$519.81
$521. 1 1.
$522. 41
L.J. It.
$25. 02:'
$526. 34
• $527. 65
$528. 97
$ 5 3 0 . is 9
$531. 62
---------------
$67 292. 67
$31, 4W. 6S
c-••
C ti
4.28
$535. 62
$536. 96
$538. 30
$539. 64
$540. 99
c c
.J L. .JJ
$ 543. 70
$545. 06
$546. 4c
$547. 79
---------------
$61484. 06
$37, 967. 74
$549. 16
$ 550. 5 3
$551. 91
$ 553. `9
$554. 67
$556. 06
$357. 45
$559. 19
_._._--_______.-_-
$4, 432. 26
$ 42, 400. 00
INTEREST
PAID
$ 43. 02
$41. 73
$40. 43
`Ji39. 1..
$37.83
$36. 52
$ ..y5_
�.J �J . 1.`.L
$33. 90
$32. 59
$,31. 27
$29. 93
$28. 62
---------------
$430. 21
$4, 371. 68
$2 7. 29
$25. 96
$24. 62
$23. 28
$21. 94
$20. 60
$19. 25
$17.89
$ 16. 54
$13. 18
$ 13. 82
`•n 1 2. 45
$238.82
$4, 610. 50
$11. o8
$9. 71
$8. 33
$6. 95
$5. 57
$4. 18
$2. 79
$1.40
__...,- .,_-_,-__,..-
$50. 01
$4, 660. 51
TOTAL
PAYMENT
$560. 24
$560. 24
$560. 24
$560. 24
$560. 24
$560. 24
$560. 24
$560. :4
$560. 24
$560. 24
$560. 24
$560. 24
�t
$6, 722. 88
$ 35, 855. 36
$560. 24
$560. 24
$560. 24
$560. 24
$560. 24
$560. `4
$560. 24
$560. 24
$560. 24
$560. 24
$560. 24
$560. 24
---------------
$6, 7W. 88
$42, 578. 24
$560. 24
$560. 24
$560. 24
$560. 24
$560. 24
$560. 24
$560. 24
$560. 59
.__.______--,_...__._-
$4, 482. 27
$47, 060. 51
LOAN
BALANCE
$ 16, 691. 77
$ 16, 173. 26
$15, 6:: 3. 43,
$15,132.34
$14, 609. 93
$14, 086. 21
$13, 561. 19
$ i 3, 034. 85
$ 12, 507. 20
$1 1, 978. 23
$1.1, 447.94
$10, 916. 32
$10, 916. 32
$10, 916. 32
$10, 383. 37
$9, 849. 09
$9, 313. 47
$8, 776. 51
$8, 230. 21
$7, 698. 57
$7, 157.58
$6, 615. 23
$6, 071. 53
$5, 526. 47
$4, 980. 05
$ 4, 432. 26
---------------
$ 4, 432. 26
$ 4, 432. 26
$3, 883. 10
$ 3, 332. 57
$2, 780. 66
$ 2, 227. 3 /
$1, 6 72. K
$1, 116.6/-
$559.1
$0. 0t,
$0. 04
$0. 01
96-- 53
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MAN ER
TO WORK OUT A MODIFICATION OF T LOAN
COMMITMENT MADE BY MIAMI CAPITAL
DEVELOPMENT, INC. (MCDI) TO MR. J ID RASHID
FOR FALAH ENTERPRISES, INC. DATED APRIL 18, 1996,
TO PROVIDE A ONE TIME ONLY WORKING CAPITAL
LOAN IN THE AMOUNT $42,400.00 FROM THE MICRO -
ENTERPRISE LOAN FUND OF MCDI; FURTHER
AUTHORIZING MCDI TO PROCEED AND APPROVE
SAID LOAN IN ACCORDANCE WITH APPLICABLE
ECONOMIC DEVELOPMENT GUIDELINES FROM THE
U.S. DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT (HUD).
WHEREAS, the City Commission is desirous of promoting and encouraging economic
development and commercial revitalization in the City's neighborhood target areas; and
WHEREAS, the City Commission provided financial assistance to small businesses
within neighborhood target areas through the Community Development Block Grant Program
and the City's lending arm, Miami Capital Development, Inc. (MCDI); and
WHEREAS, FALAH Enterprises, INC. applied for a business loan with MCDI, Inc.,
which was approved subject to certain conditions as stated in MCDI's commitment letter of
April 18, 1996; and
WHEREAS, the City Commission is desirous of providing a loan to FALAH Enterprises,
Inc. and has instructed City staff and MCDI to work out a one time only working capital loan;
and
96- 53
WHEREAS, FALAH Enterprises, Inc. is a small business operating in the designated
Coconut Grove Community Development target area; and
WHEREAS, the Coconut Grove Community Development target area is an economically
disadvantaged area requiring economic development assistance; and
WHEREAS, the Coconut Grove Community Development target area has not been the
recipient of many business loans from either the public or private sector.
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 fourth in this Section.
Section 2. The City Manager is hereby authorized to work out a modification of the loan
commitment of April 18, 1.996, provided by Miami Capital Development, Inc. (MCDI) to Mr.
Jihad Rashid of FALAH Enterprises, Inc. in order to provide a one time only working capital
loan in the amount of $42,400.00 from the Micro -enterprise Loan Fund of MCDI, Inc.
Section 3. The City Manager is hereby authorized to negotiate a reduction of the original
loan amount from $50,000.00 to $42,400.00 for which the City will forgive the existing
indebtedness of Mr. Rashid to the City in the amount of $3,602.00 from a previous City loan and
also cover the cost of the commercial facade request up to $4,000.00 for FALAH Enterprises,
Inc. in accordance with the guidelines of the citywide commercial facade paint program.
Section 4. FALAH Enterprises, Inc. agrees to accept the financial and technical
assistance available through the Small Business Assistance Center at Florida International
University and Tools For Change.
J6-
4
I
Section 5. MCDI) is hereby instructed to proceed and approve the modified new loan in
accordance with applicable Economic Development Guidelines of U.S. Department of Housing
and Urban Development. MCDI shall fund this loan through its allocation budgeted under the
Micro -enterprise Loan Program.
Section 6. Due to the fact that this Resolution allows for a one time only loan to FALAH
Enterprises, Inc., FALAH Enterprises, Inc. agrees that it shall not ask for any further financial
assistance either from Miami Capital Development, Inc. nor from the City of Miami.
Section 7. In addition to the herein described amount reduction and the one time only
provision, the referred MCDI loan commitment is also to be modified as to its collateral and
contingencies and other conditions/provisions in order to facilitate the prompt execution of same.
The requirement of a second mortgage on residential real estate located at 3127 New York Street,
Coconut Grove, Florida is specifically deleted; all other terms and requirements are to remain
unchanged and shall be complied with.
Section 8. The City Manager and MCDI are hereby authorized to execute the necessary
documents, in a form acceptable to the City Attorney, to effectuate said purposes set fourth
herein.
Section 9. This Resolution shall become effective immediately upon its adoption.
PASSED AND ADOPTED this day of - )1996.
ATTEST:
WALTER J. FOEMAN, CITY CLERK
, MAYOR
96-- 534
PREPARED AND REVIEWED BY: APPROVED AS TO FORM AND
CORRECTNESS:
A. QUINN JONES, III
ASSISTANT CITY ATTORNEY CITY ATTORNEY
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96 - 53