HomeMy WebLinkAboutR-89-1109J-89-1136
11/3U/89
RESOLUTION NO. F?9-1109
A RESOLUTION AUTHORIZING THE CITY
ATTORNEY TO INITIATE APPROPRIATE LEGAL
PROCEEDINGS AGAINST MS. MARY CLOZIE AND
MS. VELMA SCOTT, D/B/A GRAND DISCOUNT
BEAUTY SUPPLIES, TO RECOVER LOAN FUNDS
IN THE BASE AMOUNT OF $9,249.45 TO SAID
INDIVIDUALS VIA THE CITYWIDE 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 adapted Resolution No. 88-743
authorizing the establishment of the Citywide Small Business
Development Pilot Program; and
WHEREAS, Ms. Mary Clozie and Ms. Velma Scott, owners of the
Grand Discount Beauty Supplies, have defaulted on their
Promissory Agreement with the City of Miami; and
WHEREAS, the aforementioned loan recipients have received'
$9,249.45 from the Citywide Small Business Development Pilot
Program; and
WHEREAS, it has been alleged by one of the loan recipients
that said loan was fraudulently obtained;
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.
CITY COMMISSION
MEETING OF
DEC 7 09
imm 89-1109
Section Z. The City Attorney is hereby authorized to
initiate appropriate legal proceedings against Ms. Mary Clozie
and Ms. Velma Scott, d/b/a Grand Discount Beauty Supplies, to
recover loan funds in the base amount of $9,249.45 to said
individuals via the Citywide Small Business Development Pilot
Loan Program.
Section 3. This Resolution shall become effective
immediately upon its adoption.
PASSED AND ADOPTED this 7th day of
ATTEST:
MATTY -IiIRAI
CITY CLERK
COMMUNITY DEVELOPMENT REVIEW AND APPROVAL:
/L5/ , J G L'
FRANK CASTANEDA, DIRECTOR
DEPARTMENT OF COMMUNITY DEVELOPMENT
PREPARED AND APPROVED BY:
ALBERTINE B. SMITH
CHIEF ASSISTANT CITY ATTORNEY
APPROVED AS TO FORM AND CORRECTNESS:
Z1OR I:. FERR
CITY ATTORNEY
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December
MAYOR
, 1989.
CA=24CITY OF MIAMI. FLORIDA
INTER -OFFICE MEMORANDUM
Honorable Mayor and Members
T� of the City Commission DATE NOV or."7 1989 FILE
Authorization to Initiate
sueJEcl
Default Proceedings
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Cesar H. Odio REFERENCES Mary Clozie b Velma Scott
City Manager d/b/a Grand Beauty
ENCLOSURES Discount & Supply
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 Citywide Small Business
Development Pilot Program against Mary Clozie and Velma Scott
d/b/a Grand Beauty Discount Supplies to recover the City's loan
funds.
BACKGROUND
On February 27, 1988, Ms. Mary Clozie and Ms. Velma Scott, owner
of Grand Beauty Discount Supplies and loan recipients of $10,000
via the Citywide Small Business Development Pilot Program entered
into a Promissory Agreement with the City of Miami. As of
September, 1989 the aforementioned loan recipient has defaulted
on the agreement per the following terms:
ITEM NO. DEFAULT PROVISION
10 If the borrower is a corporation, should it
be dissolved, or if the borrower(s) is a
partnership, should the partnership be
dissolved, wound up or liquidated;
14 Should the borrower be convicted of any
offense involving theft, dishonesty, fraud or
moral turpitude;
A total of $9.249.45 has been disbursed to the loan recipients
from an approved amount of $10,000.
Specifically, Velma Scott a partner in the corporation, alleges
that subsequent to submitting the loan application to the Coconut
Grove Local Development Corporation, Inc. (CGLDC) she informed
the agency that she was no longer a partner in the business.
However, CGLDC, submitted said application to the Citywide Small
Business Loan Committee for action. The Loan Committee approved
the loan for $10,000. Mary Clozie proceeded with the loan
closing without informing either the CGLDC or the City of Miami
that she and Velma Scott were no longer partners in the business.
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Honorable Mayor and Members
of the City Commission
Page 2
In order that the loan could be obtained, Mary Clozie and another
individual impersonating as Velma Scott met With the Department
of Community Development staff for the closing and disbursement
of funds from the aforementioned loan program.
The documents required for closing has been properly filed with
both the Clerk of the County Court and the State of Florida.
Therefore, both Mary Clozie and Velma Scott are financially
liable for the repayment of said loan.
Velma Scott has proceeded to initiate legal action against Mary
Clozie, via the State Attorney's Office, on the grounds of
forgery, false impersonation, dishonesty and theft.
Based on the above information, we are requesting that the City
Commission authorize the City Manager to proceed with legal
action against Mary Clozie and Velma Scott to recover the City's
funds allocated for the aforementioned business.
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