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Home My WebLink AboutR-96-0940J-96-1332 12/20/96 RESOLUTION N096 A RESOLUTION AUTHORIZING M&P INVESTMENTS HOLDING CORPORATION, AS SUCCESSOR BY MERGER TO EDWARD J. GERRITS, INC., TO ASSUME THAT CERTAIN LOAN FROM THE CITY OF MIAMI TO EDWARD J. GERRITS, INC., IN THE ORIGINAL PRINCIPAL AMOUNT OF $500,000; FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE SUCH DOCUMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, AS MAY BE NECESSARY TO ACCOMPLISH THIS PURPOSE. WHEREAS, on January 10, 1996, the City Commission adopted Resolution No. 91-21 authorizing a City loan to Edward J. Gerrits, Inc., in the amount of $500,000 ("the Loan"); and WHEREAS, said Loan was provided to assist Edward J. Gerrits, Inc., to reestablish its business in the Wynwood Neighborhood after it was destroyed in the civil disturbance of December 16, 1990; and WHEREAS, the Loan is evidenced by a Loan Agreement between the City and Edward J. Gerrits, Inc., which, among other things, requires the borrower to obtain the City's consent to any assignment of the Loan; and WHEREAS, Edward J. Gerrits, Inc. has merged with another corporation and is now called M&P Investment Holding Corporation; and CITY COM USSION MEETING OF DEC 2 3 1996 Resolution No. "�._... WHEREAS, it is necessary to obtain the City's consent to the assumption of the Loan by H&P Investment Holding Corporation; 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. A Loan from the City of Miami to Edward J. Gerrits, Inc., in the original principal amount of $500,000, is hereby authorized to be assumed by M&P Investments Holding Corporation. Section 3. The City Manager is hereby authorizedl/ to execute all such documents, in a form acceptable to the City Attorney, as may be necessary to accomplish this purpose. Section 4. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 23rd day of December , 1996. CAROLLO, MAYOR ATTEST. TER J. QFOE. CITY CLER 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. { - 2 - r CITY OF MIAMI, FLORIDA 3 a� INTER -OFFICE MEMORANDUM TO: Honorable Mayor and DATE : 12-20-1996 FILE Members of the City Commission SUBJECT Assumption of City Loan to Edward J. Gerrits, Inc. FROM ' REFERENCES Marquez City Commission Meeting of City Manager ENCLOSURES: : December 23, 1996 RECOMMENDATION: It is respectfully recommended that the City Commission approve the attached Resolution, authorizing the City Manager to execute such agreements or other documents that may be necessary to effectuate the assumption of the existing City loan to Edward J. Gerrits, Inc. by M&P Investment Holding Corporation which has merged with the old company. BACKGROUND: The Department of Community Development/NET has analyzed the need to effectuate the assumption of the City loan in the amount of five hundred thousand ($500,000) dollars to Edward J. Gerrits, Inc., by M&P Investment Holding Corporation which will now be responsible for repayment of the outstanding balance of three hundred fifty-four thousand, one hundred thirteen ($354,113.94) dollars and ninety-four cents as of December 1, 1996. On January 10, 1991 the City Commission passed Resolution 91-21, authorizing a loan of five hundred thousand ($500,000) dollars to Edward J. Gerrits, Inc., General Contractors to help re- establish the business within the Wynwood neighborhood, which was destroyed in the civil disturbance of December 16, 1990. The City has been informed that Edward J. Gerrits, Inc. will be dissolved as a Florida Corporation and the real property and other debt assumptions will be transferred to M&P Investment Holding Corporation, which will assume the balance of the City loan. F i g6 "40 . 1 11 20 December, 1996 City of Miami 444 SW 2nd Avenue Miami, Florida 33130 M & P INVESTMENT HOLWNG CORP. 3465 NW SECOND AVENUE MIAM1, FLORIDA 33127 Att: Edward Marquez City Manager RE: Edward J. Gerrits, Inc. Loan Balance 20 December, 1996, $354,113.94 Please be advised that Edward J. Gerrits Inc. request you transfer the loan approved by City Commission Resolution #91-21 in the current sum of $354,113.94 to M & P Investment Holding Corp. In calendar year 1996 Edward J. Gerrits, Inc. will be dissolved as a Florida Corporation, and the real property will be transferred to M. & P. Investment Holding Corp. which will assume the balance due to the City of Miami. Thank your in advance for your cooperation. M. & P. INVESTMENT HOLDING CORP. Z-61 Mi J. Gerrits President A 96 040 3 COMMUNITY DEVELOPMENT/NET REVIEW AND APPROVAL: LBERTJ'. WATERS, DIRECTOR COM[MUNrrY DEVELOPMENT/NET REVIEW AS TO ACCOUNTING AND TREASURY REQUIREMENTS: MICHAEL LAVIN# DIRECTOR DEPARTMENT OF FINANCE PREPARED AND REVIEWED BY: OLGA AMIREZ-SE S ASSI#ANT CITY TO EY APPROVED AS TO FORM AND CORRECTNESS: A,' 0 S' II CITY A Y QVXY W1337 BSS - 3 - N RESOLUTION NO. 0 -L ti A A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, WITH EDWARD J. GERRITS, INC., GENERAL CONTRACTORS, TO PROVIDE A LOAN IN THE AMOUNT OF $500,000 AT TWO PERCENT (2%) INTEREST RATE FOR A PERIOD.OF SEVENTEEN (17) YEARS TO BE SECURED BY A SECOND MORTGAGE ON THE PROPERTY DESCRIBED IN THE AGREEMENT AND BY CORPORATE GUARANTEE OF EDWARD J. GERRITS, INC.,'AND LIMITING ANY FIRST MORTGAGE ON SAID PROPERTY TO A MAXIMUM AMOUNT OF $400,000, WITH ALL DISBURSEMENTS TO BE MADE IN THE FORM OF DRAWS AS THE FUNDS BECOME NECESSARY FOR A NEW CORPORATE FACILITY IN THE CITY OF MIAMI TO REPLACE THE COMPANY BUILDING DESTROYED IN THE WYNWOOD CIVIL DISTURBANCE OF DECEMBER 16, 1990, AND TO THEREBY .HELP RETAIN THIS PROMINENT . BUSINESS IN THE. WYNWOOD ; NEIGHBORHOOD OF -THE CITY, WITH FUNDS THEREFOR' � ALLOCATED FROM THE TARGET AREA MINI-UDAG LOAN j POOL FUNDS OF THE COMMUNITY DEVELOPMENT BLOCK • GRANT PROGRAM. WHEREAS, the City Commission pis desirous of providing assistance to the businesses affected by the recent civil ' disturbance in the Wynwood neighborhood; and WHEREAS, one of the largest." -buildings destroyed in the Wynwood disturbance belonged to Edward J. Gerrits, Inc., General Contractors; and WHEREAS, Edward J. Gerrits, Inc., General Contractors, requires financial assistance in order to reestablish its bu snag in the Wynwood neighborhood; NOW,.THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OP' M=v FLORIDAs Section 1. The City Manager is hereby authorized to enter into an agreementy, in a form acceptable to the City Attorney, wit& Edward J. Gerrits, Inc., General Contractors, to -provide a loarr in the amount of $500,000 at two percent (2$) interest rate 'The herein authorization is further subject to compliance with: all requirements that may be imposed by the City Attorney'r including but not limited to those prescribed by applicable City Charter and Code provisions. k cm GO ION 1 MEETING OF z' J AN 10 IrM �� 21 y 4� 5 tot n *.clock os t 1 �........ �a i...•: L guaranty of Edward J. Gerrits, Inc., for the purpose oL eesletln� in the construction of a new corporate facility at 3465 Northwest 2nd Avenue, Miami, Florida, located in the Wynwood neighborhood, which facility Was destroyed in the civil disturbance of December 16, 1990. Section 2. The Agreement shall specify that the loan contemplated herein shall be secured by a second mortgage on property to be more particularly described in said Agreement and such property shall at no time be encumbered by a first mortgage that would exceed $400,000, and all disbursements of* loan proceeds shall be in the form of draws to ensure that such proceeds will be used for the purpose herein intended. Section 3. Funds for.the herein loan are hereby allocated from the Target area Mini-UDAG Loan Pool funds of the Community Development Block Grant Program. Section 4. This Resolution shall become effective immediately upon its adoption. SASSED AND ADOPTED this loth day January s XAVTER L. SU MhYrit ATTEST• MAT'1 HIRAI. CITY CLERK BUDGETARY -APPROVAL: MANOHAR S. U A, DIRECTOR DEPARTMENT GET FINANCIAL APPRO ALs f••• - C?!P.Lw E. GARCIA, DIRECTOR DEPARTMENT OF FINANCE PREPARED AND APPROVED BY: RAFAEL O. DIAZ CHIEF ASSISTANT CIT ATTORNEY ROD/pb/M1976 6` • COMMUNITY DEVE• PME T APPROVAL: FRANK/CASTXNPA, DIRECTOR DEPARTMENT OF COMMUNITY DEVELOPMENT APPROVED AS TO FORM AND CORRECTNESS: /• JOR E L. ANDEZ CIT ATTQRN 96.-9 4 0