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HomeMy WebLinkAboutR-91-0009i J-91-18 12/26/90 RESOLUTION N009 A RESOLUTION AUTHORIZING THE CITY ATTORNEY TO INITIATE APPROPRIATE LEGAL PROCEEDINGS AND CIVIL ACTION AGAINST ALVESTER MARTIN, PAUL BANNERMAN AND OLIVER GROSS D/B/A INTREPID THREE COMPANY, INC. TO RECOVER LOAN FUNDS IN THE AMOUNT OF $11,825.00 RECEIVED BY SAID INDIVIDUALS THROUGH THE MODEL CITY SMALL BUSINESS DEVELOPMENT PILOT LOAN PROGRAM. WHEREAS, the Miami City Commission is committed to the economic development and the expansion of trade and commerce in the City of Miami; and WHEREAS, the City Commission adopted Resolution No. 87-923 authorizing the establishment of the Small Business Development Pilot Program in Model City; and WHEREAS, the aforementioned loan recipients have received $30,000 from the Model City Small Business Development Pilot Program; and WHEREAS, the loan recipient has made payments totalling $18,175.00 to -date; and WHEREAS, Alvester Martin, Paul Bannerman and Oliver Gross, owners of Intrepid Three Company, Inc., have defaulted on their Promissory Agreement with the City of Miami and payment is more than 60 days past due; and WHEREAS, said loan funds were provided to assist loan recipients in maintaining and completing its contract requirement with the City's Department of Public Works; and WHEREAS, Intrepid Three Company, Inc. has defaulted on contract B-2974-A, with the Department of Public Works by its failure to perform and abandoning the project; CITY COMMMSION NJfEEt'ING OF J AN 10 1991 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 Attorney is hereby authorized to initiate appropriate legal proceedings and civil action against Alvester Martin, Paul Bannerman and Oliver Gross d/b/a Intrepid Three Company, Inc. to recover loan funds in the amount of $11,825.00 received by said individuals through the Model City Small Business Development Pilot Program. Section 3. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this loth day of AT S MYnTY HIRAI CITY CLERK COMMUNITY DEV ENT EVIEW AND APPROVAL: FRANK CASTAN-tDAf DIRECTOR DEPARTMENT OF COMMUNITY DEVELOPMENT PREPARED AND APPROVED BY: ALB I E B. SMITH CHIEF ASSISTANT CITY ATTORNEY APPROVED AS -TO, JORGE L: FER CITY ATTORNE AQJ/gfa/gmb/M1953 Z ANQ CORRECTNESS: Janua XAVIER . L . \SUARE 1991. CITY OF MIAMI, FLORIDA INTEROFFICE MEMORANDUM CA 12 TOHonorable Mayor and Members DATE : JAN - 21991 FILE ' of the City Commission Authorization to Initiate SUBJECT: Default Proceedings FROM: Cesar H. Odi REFERENCES: Alvester Martin, Paul Bannerman, City Manager Oliver Gross d/b/a Intrepid ENCLOSURES: Three Company, Inc. RECOMMENDATION It is recommended that the City Commission authorize the City Manager to advise the City Attorney to proceed in initiating default proceedings as it relates to the Model City Small Business Development Pilot Program against loan recipients Alvester Martin, Paul Bannerman, and Oliver Gross owners of Intrepid Three Company, Inc. to recover the City's loan funds in the amount of $14,095.00. BACKGROUND On August 1, 1990, Alvester Martin, Paul Bannerman and Oliver Gross owners of Intrepid Three Company, Inc. received a $30,000 loan via the Model City Small Business Development Pilot Program and executed a Promissory Agreement with the City of Miami, outlining the terms of said loan. The loan made to Intrepid Three Company, Inc. through the Model, City Small Business Development Pilot Program, was. -based on the company's need for working capital to satisfy its contractual agreement with the City's Department Public Works. This agreement with the Department of Public Works called for Intrepid Three Company, Inc. to rehabilitate the City of Miami's Fire Stations No. 4 and 5. Based on Intrepid Three Company, Inc.'s total contract amount with the Department of Public Works, Intrepid Three Company, Inc. assigned its right to any earned contract proceeds to the Department of Community Development to satisfy its loan obligation. On November 9, 1990, the Department of Public Works notified Intrepid Three Company, Inc. that it had defaulted on its contract agreement. Specifically, Intrepid Three Company, Inc. failed to perform, abandoned the project and left the Fire Stations in disarray. C /�' aZ —' 91- 09 �4\ The Honorable Mayor and Members of the City Commission Page 2 r Therefore, as a result of the above action, Intrepid Three Company, Inc. has defaulted on its agreement with the Department of Community Development. To —date, the Department of Community Development has received payment totalling $18,175.00 However, there is still an outstanding amount due of $11,825.00 ($30,000 18,173=$11,825). In accordance with the aforementioned Promissory Agreement between the Department of Community Development and Intrepid Three Company, Inc., default exist by reason of nonpayment inasmuch as no funds are available and/or due and payable to Intrepid as outlined in its agreement with the Department of Public Works. Based on the above information, we are therefore requesting that the City Commission authorize the City Manager to proceed with legal action against Alvester Martin, Paul Bannerman, and Oliver Gross d/b/a Intrepid Three Company, Inc. to recover the City's funds. /gj d *71 91-- 09