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HomeMy WebLinkAboutR-92-035541 4 J--A2-428 . 5i28i92 355 RESOLUTION NO. A RESOLUTION AUTHORIZING MIAMI CAPITAL DEVELOPMENT, INC. TO REVIEW ITS LOAN AGREEMENT WITH GARCES COMMERCIAL COLLEGE ("COLLEGE"), AND SUBJECT TO A DETERMINATION BY MIAMI CAPITAL DEVELOPMENT, INC. THAT THE COLLEGE HAS ADEQUATE COLLATERAL TO SECURE THE LOAN, AND THAT THE APPROPRIATE UNIFORM COMMERCIAL CODE FORMS TO SECURE COLLATERAL WHICH SHALL PLACE MIAMI CAPITAL DEVELOPMENT, INC. IN FIRST SECURED POSITION HAVE BEEN OBTAINED; FURTHER EMPOWERING MIAMI CAPITAL DEVELOPMENT, INC.'S BOARD OF DIRECTORS TO CONSIDER AN AMENDMENT TO SAID LOAN AGREEMENT WHICH WOULD THEREBY PROVIDE FOR THE REMAINING PRINCIPAL BALANCE OF $178,695.21 TO BE REPAID IN 96 MONTHLY INSTALLMENTS OF $2,096.00 AT THREE PERCENT (3%) ANNUAL INTEREST, COMMENCING AUGUST 10, 1992. WHEREAS, Resolution No. 85-677, adopted on June 20, 1985, authorized Miami Capital Development, Inc. to enter into a loan agreement (the "Agreement") dated July 10, 1985 which granted Garoes Commeroial College a loan in the amount of $300,000; and WHEREAS, the balance of said loan will have been reduced to $178,695.21 by July 10, 1992 and a balloon payment will come due on said date; and WHEREAS, due to economic conditions, Garoes Commercial College's very existence will be threatened by having to make such a balloon payment; and CITY COMMISSION MEETING OF MAY 2 8 1992 Resolu im No. 92- 355 - f WHEREAS, the City Commission has determined that the survival of Garoes Commercial College is in the best interest of the City of Miami by virtue of the vital employment training it 3 provides; and WHEREAS, the Commission wishes to authorize Miami Capital 4 — Development, Inc.'s Board of Directors to grant a repayment i� extension to Garoes Commercial College, subject to a determination by the Board that the College possesses adequate - s collateral and subject to the execution of the appropriate i E Uniform Commercial Code forms to secure the collateral, placing Miami Capital Development, Inc. in first secured position, and amending said Loan Agreement with Garoes Commercial College by ► changing the repayment terms on the remaining principal balance of $178,695.21 to 96 monthly installments of $2,098.00 at three percent (3%) annual interest, commencing August 10, 1992; 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. Miami Capital Development, Inc. is hereby - authorized to review its loan agreement with Garoes Commercial } College, and subject to a determination by Miami Capital Development, Inc. that the College has adequate collateral to secure the loan, and that the appropriate Uniform Commercial Code Forms to secure collateral which shall place Miami Capital Development, Inc. in first secured position have been obtained. -� -2- . $ 92- 355 s Section 3. Miami Capital Development, Inc. Is $oard of Directors is further empowered by the City Commission to consider an amendment to said loan agreement which would thereby provide for the remaining principal balance of $178,695.21 to be repaid in 96 monthly installments of $2,096.00 at three percent (3%) annual interest, oommenoing August 10, 1992. Section 4. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 28th day ojt/") 1992. ATTB MA HIRAI City Clerk PREPARED AND APPROVED BY: XAVIER, SUAREZ, MAYOR APPROVED AS TO FORM AND CORRECTNESS: -,RKFA9L 0. DIAZ Af Q I ES, Deputy City Att ey City At ey ROD/pb/osk/bss/M2969 j •� - 92- 355 i May 26, 1992 The Honorables Mayor and Commissioners Miami City Commission 3500 Fan American Drive Miami, Florida Honorable Sirs and Madam: TAMES W*V40LLEGE 1301 S.W. 1st. STREET MIAMI, FLORIDA 33135 TEL: 643-1044 5385 N.W.36th STREET MIAMI SPRINGS, FLORIDA 33166 TEL: 871-6535 As you are aware on July 10, 1985 Garces Commercial College received a loan in the amount of $300,000.00 at 3% interest, amortized over a fifteen year period at $2,071.77 per month. However, a balloon payment of $178,249.59 at the end of the 7th year would be due. Henceforth, our current dilemma, although GCC has kept its payment in a timely manner and is up to date, we unfortunately can not make the required balloon payment, due to cutbacks in Federal Program, as well as funds. We regret the inconvenience, and would like the opportunity to continue to meet our loan obligation with Miami Capital, therefore, we propose that the City allow GCC to pay the balance of this loan over the remainder of the amortization period (8 years) at the same rate and stipulations outlined in the agreement. Garces history, excellent standing and valuable service to the community over the past 31 years, merits a favorable consideration of this request. If you have any questions or need additional information, kindly contact me at your earliest convenience. S cerely, Gabriel L. T rres Director GLT/11 cc: Cesar Odio, City Manager Submitted into the public record in connection with item A_ on c La $ :� Matty Hirai City Clerk 92- 355