HomeMy WebLinkAboutR-95-0300J-95-329
4/10/95
RESOLUTION NO.
95- 300
A RESOLUTION AUTHORIZING THE DIRECTOR OF
FINANCE TO PAY GRANITE MANAGEMENT AND
DISPOSITION, INC., SUCCESSOR -IN -INTEREST TO
FIRST NATIONWIDE BANK, THE SUM OF
$300,000.00, IN EXCHANGE FOR A FULL AND
COMPLETE ASSIGNMENT OF ALL OF ITS RIGHT,
TITLE AND INTEREST IN THE REAL AND PERSONAL
PROPERTY LOCATED AT 1000 SOUTH MIAMI AVENUE,
F/K/A FIRE STATION NO. 4, INCLUDING, BUT NOT
LIMITED TO THE LEASE AGREEMENT BETWEEN THE
CITY OF MIAMI AND LADDER COMPANY NO. 4, LTD.,
THE NOTE AND MORTGAGE DOCUMENTS EXECUTED BY
THE LADDER COMPANY NO. 4, LTD., AND THE
SUBORDINATION AGREEMENT EXECUTED BY THE CITY
AND SUBJECT TO CONDITIONS AS SET FORTH
HEREIN; ALLOCATING FUNDS THEREFOR FROM THE
SELF-INSURANCE AND INSURANCE TRUST FUND.
WHEREAS, on November 4, 1985, the City of Miami entered into
a twenty (20) year Lease Agreement with two (2) five (5) year
extension options, with the successful proposer, Ladder Company
No. 4, Ltd., for the Adaptive Reuse of Historic Fire Station
No. 4 located at 1000 South Miami Avenue, Miami, Florida; and
WHEREAS, on September 23, 1986, to finance the restoration
of the property, Ladder Company No. 4, Ltd., obtained a loan from
First American Bank and Trust, which was later refinanced by
First Nationwide Bank on May 10, 1988, in the principle amount of
$950,000.00, and executed a note, mortgage, and other loan
documents, as security for the loan; and
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MEETUM OF
MAI'f 0 1 1995
Resolution No.
95- 300
WHEREAS, the City of Miami, pursuant to its commitment in
the Request for Proposals, and as stated in the Lease Agreement,
executed a Subordination Agreement to permit the successful
proposer to pledge its interest in the Lease Agreement in an
amount not to exceed $1,000,000.00; and
WHEREAS, Ladder Company No. 4, Ltd., defaulted on the Note,
resulting in foreclosure proceedings being instituted by First
Nationwide Bank against Ladder Company No. 4, Ltd., and all other
entities with an interest in the property, including the City of
Miami, in Dade County Circuit Court, Case No. 92-16250 CA 03; and
WHEREAS, Granite Management and Disposition, Inc., the
successor -in -interest to First Nationwide Bank is willing to
assign all right, title and interest in the real and personal
property, including the Lease Agreement, Note, Mortgage, and
Subordination Agreement, and provide the City of Miami with a
marketable and insurable title to the property, free and clear
and all claims, except the fee simple interest of the City of
Miami, and the facade easement of Dade Heritage Trust, to the
City of Miami in exchange for a payment of $300,000.00; and
WHEREAS, said Lease Agreement has up to twenty three (23)
years remaining with lease payments to the City of Miami
intentionally designed to be well -below market in consideration
for Ladder Company's large debt service; and
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95- 300
49.,
WHEREAS, the acquisition of the Lease Agreement by the City
of Miami, will extinguish it by operation of law, and enable the
City to re -bid the property at a more favorable market rate
through another Request for Proposals;
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 Director of Finance is hereby authorized
to pay Granite Management and Disposition, Inc., successor in
interest to First Nationwide Bank, the sum of $300,000.00, upon
the execution of an Assignment by Granite Management and
Disposition, Inc., of all of its right, title and interest in the
real and personal property located at 1000 South Miami Avenue,
Miami, Florida, f/k/a Fire Station No. 4,includin-d but not
limited to the Lease Agreement between the City of Miami and
Ladder Company No. 4, Ltd., the Note and Mortgage documents
executed by Ladder Company No. 4, Ltd., and the Subordination
Agreement executed by the City and subject to the condition that
Granite Management provide the City of Miami with a marketable
and insurable title to the property, free and clear of all
claims, except the interests of the City of Miami and Dade
Heritage Trust, with funds therefor hereby allocated from the
Self-insurance and Insurance Trust Fund.
95- 300
-3-
Section 3. This Resolution shall become effective
immediately upon its adoption.
PASSED AND ADOPTED this 1st day of May ,1995.
STEPHEN P. CLA , MAYOR
CITY CLERK
PREPARED AND'APPROVED BY:
WA REN BITTNER
SISTANT CITY ATTORNEY
APPROVED AS TO FORM AND
CORRECTNESS:
RISK MANAGEMENT REVIEW:
FRANK K. ROLLASON, DEPUTY CHIEF
CHIEF OF RISK MANAGEMENT
M5046/WB/bjr
NEC
ASSETS MANAGEMENT AND CAPITAL
IMP OVEMENT JECTS�
EDUARDO ROD GUEZ, f5IPXX.2bR
ASSETS MANA EMENT AND CAPITAL
IMPROVEMENT PROJECTS
BUDGETARAY REVIEW:
MANOHAR S. SURANA
ASSISTANT CITY MANAGER
95- 300
Honorable Mayor and Members
TO : of the City Commission
FROM :Cesar H. Odlo
City Manager
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM �Q
April 7, 1995
DATE :
J-95-32
FILE : L-92-23
SUBJECT : Resolution Authorizing Settlement
with Granite Management (FNB)
REFERENCES: City Commission Agenda
April 27, 1995
ENCLOSURES:
Attached is a proposed Resolution authorizing the Director of Finance to pay Granite
Management and Disposition, Inc., successor -in -interest to First Nationwide Bank (FNB), the
sum of $300,000.00 in exchange for an assignment of all of its right, title and interest in the Note,
Mortgage, Subordination Agreement and any other security agreement or instrument it holds on
the real and personal property located -at 1000 South Miami Ave., Miami, Florida, f/k/a Fire
Station No. 4, including the Lease between the City of Miami and Ladder Company No. 4, Ltd.
(Ladder Company).
Because of Ladder Company's default in its payments to FNB, FNB recently foreclosed
on its mortgage, which was secured by the City's Lease with Ladder Company. The principle
amount of the Note was $950,000.00. The money was lent to Ladder Company to build out and
restore the historic firehouse and equip a high quality restaurant. Thus, for its payment, the City
will not only be acquiring the lease, but it will also obtain title to all physical improvements to the
property, and all personal property therein.
The City's Lease with Ladder Company No. 4, Ltd., has up to 23 years remaining. The
rental payments due the City were intentionally designed to be well -below market in consideration
for the successful proposer's anticipated large debt service represented by the construction loan.
For a variety of reasons, including a governmental interference clause in the Lease, which Ladder
Company claimed was triggered by the construction of the Metro -Mover, the rent under the
Lease has not been paid to the City since August 1991 and has been the subject of continuous
litigation since as far back as 1990. Once acquired, the outstanding leasehold interest will
merge with the City's fee simple title and cease to exist. Thereafter, the City will be free to relet
the property, at a more favorable market rate through another Request for Proposals.
Finally, the settlement will bring to an end all of the pending litigation concerning this
property, which has plagued this project since 1990, and discouraged any potential investors.
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