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HomeMy WebLinkAboutR-90-04613 J-90-487 E/7/'90 RESOLUTION NO. 9 0 - 461 A RESOLUTION APPROVING AN AMENDMENT TO THE AGREEMENT BETWEEN THE CITY AND ZAMINCO INTERNATIONAL, INC., REGARDING THE $5,400,000 COMMUNITY DEVELOPMENT "FLOAT LOAN" FOR THE RESTORATION OF THE FREEDOM TOWER; THEREBY EXTENDING THE TERMINATION DATE ONE YEAR FROM JUNE 29, 1990 TO JUNE 28, 1991 AND ACCEPTING AN IMMEDIATE PAYMENT TO THE CITY OF $1,200,000 AS PRINCIPAL AND $100,000 AS INTEREST; WITH QUARTERLY INTEREST PAYMENTS TO BE MADE ON THE REMAINING BALANCE; FURTHER INCREASING THE INTEREST RATE FROM ONE PERCENT (1%) TO SEVEN PERCENT (7%) FOR THE PERIOD OF THE EXTENSION ON THE BALANCE OF $4,200,000, WHICH IS TO BE SECURED BY A LETTER OF CREDIT FROM A LOCAL FINANCIAL INSTITUTION. WHEREAS, the City Commission approved Resolution No. 87-1104 on December 10, 1987, authorizing the provision of $5,400,000 of Community Development Block Grant Float funds to ZAMINCO International, Inc., for restoration of the Freedom Tower Building located at 602 Biscayne Boulevard; and WHEREAS, the "Float Loan" from the City to ZAMINCO International, Inc., expires June 29, 1990; and WHEREAS, ZAMINCO International, Inc., requested an extension of the due date of the loan because of financial difficulties; and WHEREAS, ZAMINCO International, Inc., is willing to provide a partial payment and agrees to pay a higher interest rate on the balance for the period requested; and WHEREAS, the request for the extension will be reviewed by the City to determine if it complies with Federal Regulations governing the Community Development Block Grant Float Loan Program; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Manager is hereby authorized to execute an amendment to the agreement between the City and ZAMINCO CITY COMMISSION 14EETING OF J U N 7 1990 90 - 461 KESOLUTHM ft. International, Inc., on the $5,400,000 Community Development Float Loan, to extend the expiration date for a period of one year from June 2.9, 1990 to June 28, 1991. Section 2. The extension of the due date set forth in the Agreement (the "Amending Agreement") shall require ZAMINCO International, Inc. to pay the City, upon the execution of this Amending Agreement, the sum of $1,200,000 as principal and $1.00,000 as interest. Section 3. ZAMINCO International, Inc. shall agree to an increase in the interest rate from one percent (1%) to seven percent (7%) for the period of the extension on the remaining balance of $4,200,000. Section 4. ZAMINCO International, Inc. shall agree to repay interest on the remaining balance on a quarterly basis with the first interest payment due three (3) months after the date of execution of the Amending Agreement and with interest payments being made every three (3) months thereafter until the loan is satisfied on June 28, 1991. Section 5. The herein authorized Amendment is approved subject to the determination by the City that the request for extension is in compliance with Federal Regulations governing the Community Development Float Loan Program. Section 6. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this _ 7lh day of City Clerk BUDGET DEPARTMENT APPROVAL: MANOHAR S. SU � , Director Department of u get XAVIER L.,SU*REZ, 990. 0 COMMUNITY DEVL,,OPMENT APPROVAL: i FRANK CASTANEDA, Director Department of Community Development -2- 90- 461 0 FINANCE DEPARTMENT REVIEW AND APPROVAL: CARLOS E. GARCIA, Director Department PREPARED AND APPROVED BY: ii�AE—L D� Assistant Ci/ty Attorney APPROVED AS TO FORM AND CORRECTNESS: `F JOR E FEgNANDEZ City Attorn y ROD/pb/M1558 -3- go`"' 461 J-90-487 6/7/90 RESOLUTION NO. 00- 461 A RESOLUTION APPROVING AN AMENDMENT TO THE AGREEMENT B EEN THE CITY AND ZAMINCO INTERNATIONAL, INC., REGARDING THE $5,400,000 COV14UNITY DE OPMENT "FLOAT LOAN" FOR THE - RESTORATION 0 THE FREEDOM TOWER; THEREBY EXTENDING THE RMINATION DATE ONE YEAR FROM JUNE 29 1990 T JUNE 28 1991 AND ACCEPTING {' AN IMMEDIATE AYMENT TO THE CITY OF__ - N $1,200,000 AS P INCIPAL AND r AS INTEREST; WITH QU RTERLY INTEREST PAYMENTS TO BE MADE ON THE EMAINING BALANCE; FURTHER INCREASING THE INT REST RATE FROM ONE PERCENT r/ ( 1 % ) TO SEVEN PERC NT ( 7 % ) FOR THE PERIOD OF THE EXTENSION ON T E BALANCE OF $4;19fl;fi69r j ti WHICH IS TO BE SECU ED BY A LETTER OF CREDIT FROM A LOCAL FINANCI INSTITUTION. WHEREAS, the City Commissio approved Resolution No. 87-1104 on December 10, 1987, authorizing the provision of $5,400,000 of Community Development Block Gra t Float funds to ZA1114INCO International, Inc., for restora ion of the Freedom Tower Building located at 602 Biscayne Boul WHEREAS, the "Float Loan" fr International, Inc., expires June 29, rd; and the City to ZAMINCO 90; and WHEREAS, ZAMINCO International, Inc\, requested an extension of the due date of the loan because of\financial difficulties; and WHEREAS, ZAMINCO International, Inc., is willing to provide a partial payment and agrees to pay a higher interest rate on the balance for the period requested; and WHEREAS, the request for the extension ill be reviewed by the City to determine if it complies with F deral Regulations governing the Community Development Block ant Float Loan Program; NOW, THEREFORE, BE IT RESOLVED BY THE COMMIS ON OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Manager is hereby authorizVd to execute an amendment to the agreement between the City \and ZAMINCO COMMISSION zrwG OF J �N 7 IM 00- 461 kt"10* VA.