HomeMy WebLinkAboutR-89-0431RESOLUTION NO. 89--431
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
APPROVE A REQUEST FROM THE AIRPORT SEVEN
5040 LIMITED PARTNERSHIP FOR RESCHEDULING
THE DUE DATE FROM JANUARY 31, 1989 TO
SEPTEMBER 30, 1989 OF THE FIRST PAYMENT OF
$80,818.699 IN THE REPAYMENT OF THE AIRPORT
SEVEN URBAN DEVELOPMENT ACTION GRANT (UDAG),
AND TO ACCEPT AN ADDITIONAL SIX PERCENT (6%)
INTEREST PAYMENT BY SAID FIRM ON SAID AMOUNT
FOR SUCH EXTENDED TIME.
WHEREAS, Airport Seven 5040 Limited Partnership was provided
with an Urban Development Action Grant (UDAG) from the City in
the amount of $1,407,306; and
WHEREAS, Airport Seven 5040 Limited Partnership devel-oped
the Airport Seven Office Building with the assistance of the
City's UDAG; and
WHEREAS, repayment of the UDAG Loan was scheduled to begin
January 31* 1989 with principal and interest payments in the
amount of $80,818.59 per year; and
WHEREAS', Ai.rport Seven 5040 Limited Partnership has
indicated that it would be unable to provide the first payment by
the scheduled date of January 31, 1989 due to financial
constraints; and
WHEREAS, the Company has requested a rescheduling of the dote
date on the UDAG repayment from January 310 1989 to September 30;
1989, and has agreed to pay the City six percent (6%) on said
amount;
NOW, THEREi: ORE; BE - IT RESOLVED BY THE COMMISSION OF THE C ITY
OF. M IAM I, FLORIDA: y
Section 1. The City Manage r is hereby authorized to aPProx
the request from the Airport Seven 60.40 limited Partnership
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the due date for submission of the first payment of $a0,8I86� A
the repayment of the Airport' ._,se
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Development action Grant (UDAG) Loan be rescheduled from January
31, 1989 to September 300' 1989; and that an additional six
percent (b%) interest payment by said firm be accepted for such
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
Honorable Mayor and Members DATE: MAY - S 1989 FILE
t° of The City Commission
sueJECT: Resolution Approving a:
Deferment of Payment
from the Airport Seven
City UDAG Loan
FROM : Cesar. H. O d i 0 REFERENCES
City Manager Commission Agenda Item
ENCLOSURES :May 115 1989
RECOMMENDATION:
It is respectfully recommended that the City Commission adopt the,, -
attached resolution authorizing the City Manager to approve a
request from Airport 5040 Limited Partnership to allow for a
rescheduling of the date; in which the first repayment of .,.the.
_ Airport Seven Urban Development Action Grant (UDAG) Loan of $1.4
million dollars; is due from January 31; 1989. to September 30,.
1989 and during which the City will receive six percent
interest on the scheduled payment of $80;818.59.. Airport 5040 ,
Limited Partnership must pay $80,818.59 per year for 13 years. Exyz
BACKGROUND:
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The Department of Community Development has analyzed the need to ys;
reschedule the date in which the first payment of the, Airport
Seven UDAG is due; from January 319 1989 to September 30, 1989.
The Airport 5040 Limited Partnership was originally scheduled to
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make the first payment of principal and interest in the amount -'of'
$80;818.59 on January 31, 1989. The Company informed the City ,
that it would be unable to provide the first payment due.to,the
unexpected shortfall in revenues. Unfortunately the .,building s
lost its anticipated major tenant representfbg a significant ;t
reduction _in operating income. Accordingly; this experiegce
resulted in, a negative impact on the company;'s abi 1 i ty ..to cover#
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expenses and debt service. �.
`i Currently; Airport Seven is 86% occupied with `aerre`ral pewenantS ;>' .
(ar moving in within the last six months. The .company does prQ�e4-V
an increase:: -in revenues for the 1989 fiscal _.,'year;• ReschedNi;n�,rz —
:the "dui ,'date for the , fi'rsa: ;payment will. "allow AirQ9rtY S¢4p�`r.
={ L.imited;, sufficient :time; to, generate the income and cas;f! f1tt1� _
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reyui red.. to meet its obl .gati on.. to the City.k"M _
Axtachmen, _
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- Resol.uti on
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