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HomeMy WebLinkAboutR-89-0523J-89-531 5/30/89 RESOI.IITION NO. 89"—"r]P`a�.. A RESOLUTION AUTHORIZING THE CITY ATIORNEY TO INITIATE APPROPRIATE LEGAL PROCEEDINGS AND CIVIL ACTION AGAINST ALFRED & MARY LLOYD, D/B/A ALF'RED LLOYD & SOTS, TO RDOC M IX)AN FUNDS IN THE AMOUNT OF $22, 675.54 F" SAID INDIVIDLY S IN CONJUNCTION WITH THE MODEL CITY SMALL BUSINESS DEVIIAPMMU PILOT IXQAN PROGRAM, UPON INSTRUCTION FROM THE CITY MANAGER. WHEREAS, the City of Miami Commission is ccanmitted to the economic developmnt and the expansion of trade and commerce in the City of Miami; and WHEREAS, the City Camdssion adopted Resolution No. 87-923 authorizing the establishment of the Small Business Development Pilot Program in Model City; and WfERi3AS, Alfred and Mary Lloyd, owners of Alfred Lloyd & Sons, have defaulted on their Promissory Agreement with the City of Miami; and WHEREAS, the aforementioned loan recipients have received $22,675.54 frcm the Small Business Development Pilot Program; and WHEREAS, the loan recipients are over 180 days past due on their loan with the City of Miami; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MUM, FUORIDA: Section 1. The City attorney is hereby authorized to initiate appropriate legal proceedings and civil action against Alfred and Mary Lloyd, d/b/a Alfred Lloyd & Sons, to recover loan funds in the amount of $22, 675.54 from said individuals in conjunction with the Model City Small Business Development Pilot Loan Program, upon instruction from the City Manager. Section 2. This Resolution shall become effective immediately upon its adoption pursuant to law. CITY COMMISSION MEETING OF JUN 7 1989 ON No. 89-523 _.", PASSED AND ADOPTED this 7th day of XAVT.ER i. SU r mg; 0 R ATTE MA TY HIRAI CITY CLERK COMMUNITY DEVELO3 MBNT ,REVIEW AND APPROVAL: FRANK-CASTANEDA, DIRECTOR DEPARTMENT OF COMMUNITY DEVELOPMENT PREPARED AND APPROVED BY: ROBERT F. CLARK CHIEF DEPUTY CITY ATTORNEY APPROVED AS TO FORM AND CORRECTNESS: DO GE &,: FE�NANDEZ CI Y ATTORNEY bss/Ml075 /gjd 1989. M, CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO. Honorable Mayor and Members of the City Commission FROM: Cesar H. Odio City Manager RECOMMENDATION l I , OATS: MAY 3 V 19Vq FILE: Authorization to Initiate SUBJECT: Default Proceedings REFERENCEs:Alf red & Mary Lloyd d/b/a Alfred Lloyd & Sons ENCLOSURES: 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 Alfred & Mary Lloyd d/b/a Alfred Lloyd & Sons to recover the City's loan funds. kj BACKGROUND On May 11, 1988, Mr. & Mrs. Alfred & Mary Lloyd owner of Alfred Lloyd & Sons and loan recipients of $22,675.54 via the Model City } Small Business Development Pilot Program entered into a `j Promissory Agreement with the City of Miami. As of December 1, 1989 the aforementioned loan recipients has defaulted on their agreement per the following terms: ITEM NO. DEFAULT PROVISION 1 Should there be a default in the punctual. and full payment of interest or an installment of principal due hereunder; or 3 Bankruptcy proceedings be instituted by or against any maker of this note. 7 Shall the maker(s) close down, abandon and/or relocate his business outside the corporate limits of the Model City target area. j 12 Should the borrower fail to accept Technical Assistance provided by the City or fail to } make financial records available to City staff for review upon notification; or ,i A total of $22,675.54 has been disbursed to the loan recipients from an approved amount of $22,675.54. These funds were used to purchase liability contractual and bonding insurance. ��'7V "'� Honorable Mayor and Members of the City Commission Page 2 The recipient's first loan payment was due on January 1, 1989. To -date, we have not received any loan payments from Alfred Lloyd & Sons. In addition, the loan recipients have filed for bankruptcy under Chapter 7, both personally and corporately. Based on the above information, we are therefore requesting that the City Commission authorize the City Manager to proceed with legal action against Alf. red Lloyd & Sons to recover the City-s funds allocated to the aforementioned business. /gjd