HomeMy WebLinkAboutR-91-0030J-91-116
1/10/91
RESOLUTION NO. I I r 30
A RESOLUTION INSTRUCTING THE CITY MANAGER TO
REQUEST MIAMI CAPITAL DEVELOPMENT, INC.
(MCDI) THAT IT PROVIDE LOAN FUNDS TO 1830
ENTERPRISE, INC. (TEATRO MARTI) IN THE AMOUNT
OF $200,000 AT A FIXED RATE OF TWO PERCENT
(2%) INTEREST FOR FIVE (5) YEARS WITH A
BALLOON PAYMENT FOR THE SAME AMOUNT AT
MATURITY; FURTHER REQUESTING MIAMI CAPITAL
DEVELOPMENT, INC. TO ISSUE SAID LOAN IN
ACCORDANCE WITH THE LEGAL AND OTHER
CONDITIONS AS PRESCRIBED BY ITS LOAN
GUIDELINES WITH DISBURSEMENTS OF LOAN FUNDS
SUBJECT TO COMPLIANCE WITH ALL REQUIREMENTS
THAT MAY BE IMPOSED BY THE U.S. DEPARTMENT OF
HOUSING AND URBAN DEVELOPMENT (HUD).
WHEREAS, the City Commission is committed to economic
development and the expansion of rate and commerce in the City of
Miami; and
WHEREAS, the promotion of economic revitalization in the
neighborhoods of the City of Miami is an important part of the
City's economic development strategy; and
WHEREAS, the City Commission is requesting the City Manager
to request Miami Capital Development, Inc. to provide a $200,000
loan at a fixed rate of two percent (2%) for a five (5) year term
with interest only payments during the five (5) year term and a
balloon payment for the $200,000 at maturity to 1830 Enterprises,
Inc. (Teatro Marti) from its City of Miami Revolving Loan Fund;
and
WHEREAS, disbursement conditions will be subject to meeting
the requirements of the Davis -Bacon Wage Act as prescribed by HUD
regulations and the City will review and approve Miami Capital
Development, Inc.'s making said disbursements; and
WHEREAS, said loan will be part of Miami Capital
Development, Inc.'s loan portfolio (even though it is considered
as a pass -through loan); and
WHEREAS, the City of Miami will hold Miami Capital
Development, Inc. harmless in the event of default on this loan;
and
MION
MEET MEETING OF
JAN 10 1"
I
WHEREAS, Miami Capital Development, Inc. will receive the
interest from this loan to cover administrative expenses and all
principal payment(s) will be deposited and considered as part of
Miami Capital Development, Inc.'s City of Miami's Revolving Loan
Fund; and
WHEREAS, the City Commission is making its approval of said
loan proceeds to eliminate code violations identified by the City
of Miami and to make improvements to the exterior of the Marti
Theater Building; and
WHEREAS, the collateral provided for said loan will be a
third mortgage position on the property located at 420-424 S.W.
8th Avenue, Miami, Florida, said third mortgage being subordinate
to more than $260,000 of existing debt, subject to the condition
that the subject property have an equity value of not less than
$200,000 as evidenced by a written appraisal which is not more
than six (6) months old at date of closing;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY If
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. No funds shall be released until Miami Capital
Development, Inc. has a promissory note with an assignment of
mortgage, as well as any other documents that are deemed
necessary by it in order to secure the loan.
Section 3. Said loan shall be a part of Miami Capital
Development, Inc.'s loan portfolio and the City of Miami will
hold Miami Capital Development, Inc. harmless in the event of
default on this loan. Further, interest payments received on
this loan will be retained by Miami Capital Development, Inc. to
cover its administrative expenses. Principal payments will be
deposited in and considered part of Miami Capital Development
Inc.'s City of Miami Revolving Loan Fund.
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Section 4. The herein allocation is conditioned upon
compliance with federal guidelines.
Section 5. This Resolution shall become effective
immediately upon its adoption.
PASSED AND ADOPTED this loth day of January , 1991.
AXAiVIER L. SUAREZ MAYOR TT
MA TY HIRAI
&-Ow �- �-
CITY CLERK
COMMUNITY DEVEL024ENT REVIEW AND APPROVAL:
DEPARTMENT'OF COMMUNITY DEVELOPMENT
FINANCE DEPARTMENT REVIEW AND APPROVAL:
C GARCIA, DIRECTOR
DEPARTMENT OF FINANCE
MANAGEMENT & BUDGET REVIEW AND APPROVAL:
MANOHAR S , DIRECTOR
DEPARTMENT MANAGEMENT & BUDGET
PREPARED APPROVED BY:
RAFAEL 0. ' DIAZ
CHIEF ASSISTANT CI Y ATTORNEY
APPROVED AS TO FORM AND
CORRECTNESS:
JOIGE L. FEY
RNANDEZ
CI Y ATTO
ROD/pb/ebg/gmb/M2001
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91- 30