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Home My WebLink AboutR-87-1104J-87-1070 12/7/87 RESOLUTION NO. N7-1.104 A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT IN A FORM ACCEPTABLE TO THE CITY ATTORNEY BETWEEN THE CITY AND ZAMINCO INTERNATIONAL, INC., FOR THE _— PROVISION OF UP TO FIVE MILLION FOUR HUNDRED THOUSAND DOLLARS ($5,400,000) IN COMMUNITY - DEVELOPMENT BLOCK GRANT FLOAT FUNDS, IN THE -_ FORM OF A LOAN FOR A TWO (2) YEAR PERIOD AT ONE PERCENT (1%), FOR THE RESTORATION OF THE BUILDING CALLED FREEDOM TOWER LOCATED AT 602 BISCAYNE BOULEVARD. WHEREAS, the Community Redevelopment Act of 1969, as amended, requires in Chapter 163.360 that a community redevelopment area shall not be planned or initiated unless the governing body has, by resolution, determined such area to be a slum area, or a blighted area, or a combination thereof, and designated such area as appropriate for a community redevelopment project; and WHEREAS, by Resolution R-1677-82, the Board of Dade County Commissioners determined that the area where the Freedom Tower building is located may be established as a separate community redevelopment area for tax increment financing purposes; and WHEREAS, Zaminco International, Inc. has requested that a Community Development Block Grant Float Loan in the amount of $5.4 million be made available for the restoration project of the designated Freedom Tower building; and CITY COMMISSION MEETING OF DEC 10 1987 3N No. 137-11 AT low WHEREAS, Zaminco International, Inc., as borrower, has agreed that the loan agreement with the City stipulate all of the terms and documents required by the City's attorneys to close the transaction; and WHEREAS, City staff has reviewed the Zaminco International, Inc. proposal for need and eligibility with all applicable regulations and recommends that such a loan be made; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Manager is hereby authorized to execute _ on behalf of the City, in a form acceptable to the City Attorney, an agreement between the City of Miami and Zaminco International, - Inc. for the provision of up to a $5.4 million loan from Community Development Block Grant Float funds for the restoration of the building designated as the Freedom Tower, located at 602 Biscayne Boulevard, subject to the approval of the City Attorney as to form and correctness, said loan to be for a two (2) year period at one percent (1%) with a fee to be charged the firm for said Float Loan at a cost factor to be applied which shall be as justfied and approved by the City Manager. -2- i37-1104 PASSED AND ADOPTED this 10th day of December , 1987. - ti- XAVIER L. SLYrREZ, MAYOR ATTEST: MATTY HIRAI, CITY CLERK ITY DEMQPMENT REVIEVf\AND APPROVAL: ANK CASTANEDA, DIRECTOR PARTMENT OF COMMUNITY DEVELOPMENT FINANCE REVIEW AND APPROVAL: On,, CAR L GARCIA, DIRECTOR FINAN DEPARTMENT BUDGETARY REVIEW AND APPROVAL: DEPT. OF MANAGE T AND BUDGET PREPARED AND APPROVED BY: 1"-La IOct L ROBERT F. CLARK CHIEF DEPUTY CITY ATTORNEY APPROVEPY Aye TO FORM AND CORRECTNESS: "Va.in L7. CITY ATTO _3 97-1104 "1 01'41� CITY OF MIAM1, FLORIDA INTER -OFFICE MEMORANDUM TO. Honorable Mayor and Members of the City Commission FROM: Cesar H. Odi ��,j City Manager RECOMMENDATION: DATE: + + '� j' s ^►;.�.� PILE: +� I�Ui SUBJECT Proposed Resolution Pertaining to the Freedom Tower REFERENCES: ENCLOSURES: It is respectfully recommended that the City Commission adopt the attached resolution providing $5,400,000 in Community Development Block Grant Float funds, for the restoration of the Freedom Tower building, located at 602 Biscayne Boulevard. BACKGROUND: The Department of Community Development has prepared the appropriate legislation pertaining to the following: Zaminco International, Inc., who recently purchased the Freedom Tower Building, has requested that a CDBG Float Loan in the amount of $5.4 million be made available to make feasible the restoration of that structure. Zaminco International. as borrower, has agreed that the loan agreement with the City stipulate all of the terms and documents required by the City's attorneys. This loan is made utilizing federal funds and, as such, is subject to all federal regulations. Attachment: Proposed Resolution -97-1104 12 C!jttt'l -of '41i.t-1111i [RANK +CASIANWA November 16, 1907 Mr. Ilugh Wiedman, project. Administrator Zaminco int:ernat:ionnl, Inc. 21000 N.F. 28kh Avenue, Suite 201 Miami, Florida 33100 Iles FRP.RIX)M TOWER RFSIIAIIi[.ITATION FUNDS Ct9Alt 11. 0010 CIIy Manager The City of Mlaami is considering a community i)evelopmertt: Float. of Elve million four hundred tiaouR:and r1ol.l:►rs ($5,400,000) for a period of two (2) years at one percent (1%) inLerest conditioned on the following: Guarantee t Thnt 7aami.nco obtain an irrevocable letter of credit from a rnted bank gatarnni.p.Atng the rul.l five million four haandr, ed khousand dollars ($5,400,000) with a forty-eight. (40) hour call rrovi.sion on behalf of City. Mhkhod of 1)ishursemen1;s DiAhurnemetlks wilt be made uhitintnh A1A forms as %be renovations progress. Federal Regul►at:ions t Thin loran is made_ utilizing federal funds rant], as Ruch, is stlb ject to all federal regulntions, including psayment: of t)avin-Ilrron salnrieF; ko connkrut.l:irna workers. No draw will be disbursed uutll contractor can demonst.rnt:p. tint: such wnges have been paid for the pnrticular draw. Call Provisiont The .I.n ata wi.l.l. be ror n two (2) yenr tier i.nfl, biO. 1A. rnn 1►r.,, cn iAr4l by the Ctty' rear any rennon with forhy- eight: (49) hours notice. Project. Comple.1-ions' The devt?top#-r masAt demonntratP thltt n t t ruu►1s n re In 1►trace to romptoke 1:1111.n prn.jerA. prior to nny d i nb.tr. nemrn t.. 5 97 -1 a4 Mt-. !high Wiedman pa19e t:wo November 16, 1907 Uut: or- locket ExpensUs: Cuban Museum: First Source Agreement: The developer, no- cl.osing, will. be responsible for pnying any out of pocket expenses incurred by the City for this loan. The developer will locate a Cuban Museum nt the rreedom Tower at no COW: 1:0 the City. The developer w.t.1.1 be required t:o sign a rtrst Source Agreement with the City that will. make the City the first source of referrals for new jobs c ren t:ed from 01e connt.r.ttct:intt or from the use of the created office s1»ce. Together with the Note and Letter of Cr.ed.tt, borrowers must enter into a Loan Agreement with the City at.ipul.ating at]. of the farms of the lonn and any and all documents required by the City's attorneys to close this transaction. This commitment also requires rattricntion by the City Commin ssion. Staff will be preseting thl.s .item nt the December Commission meeting. Sinceret /C fart astaneda, Director Department of Community Development: rC/rjf cc: Herbert J. bailey, Assistant City Manager Raphael Suarez -Rivas, Assistant City Attorney (DD P4 7-1104