HomeMy WebLinkAboutR-91-0028RESOLUTION NO. J 1_ -- 8
A RESOLUTION APPROVING THE CAPITALIZATION OF
THE DUE PRINCIPAL AND INTEREST FROM THE
COCONUT GROVE PLAYHOUSE, INC., LOAN IN THE
AMOUNT OF $200,000 AND, CONDITIONALLY
CONVERTING SAID LOAN INTO A GRANT OF $50,400
A YEAR FOR FIVE YEARS REPRESENTING THE CITY'S
FINANCIAL CONTRIBUTION TO THE COCONUT GROVE
PLAYHOUSE, INC.; FURTHER CONDITIONING THE
HEREBY WAIVER OF THE PAYMENT OF PRINCIPAL AND
INTEREST TO BE RESCINDED WITHIN NINETY (90)
DAYS IN ACCORDANCE WITH THE CALL PROVISIONS
OF THE EXISTING AGREEMENT AND FURTHER
STIPULATING THAT THE COCONUT GROVE PLAYHOUSE,
INC. WILL NOT REQUEST ADDITIONAL FUNDING FROM
THE CITY DURING THE TERM OF THIS LOAN;
FURTHER PROVIDING THAT ALL OTHER TERMS AND
CONDITIONS OF THE AGREEMENT REMAIN IN EFFECT.
WHEREAS, the City Commission adopted Resolution No. 86-498
on June 26, 1986, approving an operating capital loan to the
Coconut Grove Playhouse, Inc.; and
WHEREAS, the Coconut Grove Playhouse, Inc., provides a
valuable service to the community through the production and
presentation of professional arts and educational activities; and
WHEREAS, the City is committed to supporting and promoting
programs, organizations and projects that benefit the community;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The City Manager is hereby authorized to
capitalize the due principal and interest from the existing loan
to the Coconut Grove Playhouse, Inc., in the amount of $200, 000
and convert said loan into a grant, as provided herein.
Section 2. The principal and interest due would require a
payment of $50,400 a year for five years at an interest rate of
ten percent (10%), the South Florida Prime rate determined on
November 30, 1990, which is hereby conditionallly waived and
represents the City's financial contribution of $50,400 a year
for five (5) years totaling $252,000.
CITY COMMISSION
MEE'iMIG OF
JAN 10 1991
I MOW=ft91-- 281
Section 3. The waiver for payment of principal and interest
may be rescinded by the City for any reason and or violations of
the terms of the existing loan agreement.
Section 4. The Coconut Grove Playhouse, Inc., shall neither
request nor receive City funds during the term of this loan.
Section 5. All other terms and conditions set forth in the
existing agreement remain in effect.
Section 6. This Resolution shall become effective
immediately upon its adoption.
PASSED AND ADOPTED this 10th day of January , 1991.
XAVIER L. SUZ,R�Z,
ATTE
mATW HIRAI, CITY CLERK
COMMUNITY DEVELOPME APPROVAL:
FRANK CASTS DA, IRECTOR
DEPARTMENT OF COb5RJ9ITY DEVELOPMENT
PREPARED AND APPROVED BY:
ALBE T.1. E 8. 5MITH
CHIEF ASSISTANT CITY AT RNEY
APPROVED AS TO FORM AND CORRECTNESS:
L. F3RNANDEZ, CITY ATTORN
AQJ/gfa-/-MI956
CITY OF MIAMI, FLORIDA
INTEROFFICE MEMORANDUM
TO: Honorable Mayor and Members
of the City Commission
FROM
Cesar H. Odi
City Manager
RECOMMENDAT I ON :
DATE JAN 21991 FILE
A Resolution Approving
SUBJECT : the Waiver for payment
of the Coconut Grove
Playhouse, Inc., loan of
$200,000
REFERENCES:
City Commission Meeting
ENCLOSUREb f January 10, 1991
It is respectfully recommended that the City Commission adopt the
attached resolution, approving the capitalization of the due
principal and interest for the existing Coconut Grove Playhouse,
Inc., loan of $200,000, waiving repayment of said loan by
converting the loan into a grant with the condition that the
waiver may be rescinded by the City within ninety (90) days for
any reason in accordance with the existing agreement.
BACKGROUND:
The Department of Community Development has analyzed the need to
convert the existing City loan to the Coconut Grove Playhouse,
Inc., into a grant by capitalizing the due principal and
interest, in which the interest rate will be ten percent (10%) as
per the South Florida Prime determined on November 30, 1990, and
waiving the repayment of approximately $50,400 a year for five
(5) years representing the City contribution to the Coconut Grove
Playhouse which totals $252,000. The City may_• -rescind this
waiver at any time and it is further stipulated that the Coconut
Grove Playhouse, Inc., can not request and will not receive
additional funding during the term of this loan.
The City had originally provided an operating capital loan in the
amount of $200,000 in 1987, to assist the Playhouse through some
financial difficulties and enable it to continue with normal
operations.
Requiring the Playhouse to repay this loan may jeopardize its
current financial condition and could have an adverse affect on
the level of operations. In addition the City had also been
contributing an average of $70,000 annually to the Playhouse
which it will no longer be able to provide. Therefore, the
waiver of this loan in effect represents the City's continuing
contribution to the Playhouse.
Attachment: Resolution
to I C#V-." I �--t
91-- 28