HomeMy WebLinkAboutR-86-0794J-86-802
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A RESOLUTION AUTHORIZING THE CITY MANAGER TO
ENTER INTO AN AGREEMENT, IN A FORM ACCEPTABLE
TO THE CITY ATTORNEY, WITH THE ALLAPATTAH
MEDICAL PHARMACY BUILDING, INC. FOR A LOAN BY
THE CITY OF $300,000 TO BE SECURED BY A FIRST
MORTGAGE TO ASSIST IN THE CONSTRUCTION,
EXPANSION AND REHABILITATION OF THE LIVE AND
LET LIVE COMMERCIAL PROPERTY, LOCATED AT 3520
N. W. 17TH AVENUE, INTO A RETAIL
PHARMACY/MEDICAL ARTS COMMERCIAL COMPLEX;
USING FUNDS IN THE AMOUNT OF $300,000, FROM
TENTH (10TH) YEAR COMMUNITY DEVELOPMENT BLOCK
GRANT FUNDS, PREVIOUSLY COMMITTED TO THE
ALLAPATTAH MERCHANTS ASSOCIATION, INC. (AMA)
BY RESOLUTION NO. 85-1031, WHICH ALLOCATION '
IS HEREBY RESCINDED; WITH SAID $300,000 TO BE
LOANED DIRECTLY TO THE ALLAPATTAH MEDICAL
PHARMACY BUILDING, INC. AT A FIXED RATE OF
SIX PERCENT (6%) FOR TWENTY (20) YEARS FOR
REDEVELOPMENT OF SAID PROJECT AND WITH NO
FUNDS TO BE RELEASED FOR CONSTRUCTION AND/OR
REDEVELOPMENT UNTIL THE CITY HAS ACQUIRED A
SECURED PROMISSORY NOTE WITH AN ASSIGNMENT OF
MORTGAGE TO THE CITY FROM ALLAPATTAH MEDICAL
PHARMACY BUILDING, INC.; FURTHER PROVIDING
THAT A COMMITMENT FOR AN ADDITIONAL LOAN
AMOUNT OF $225,000 FROM OTHER SOURCES BE
OBTAINED OR THAT IT BE DEMONSTRATED TO THE
CITY THAT THE SAID PROJECT CAN BE COMPLETED
WITH AVAILABLE FUNDS.
WHEREAS, the City Commission is committed to economic
development and the expansion of trade and commerce; and
WHEREAS, the promotion of economic revitalization in the
City of Miami neighborhoods is an important part of the City's
development strategy; and
WHEREAS, the City Commission passed Resolution No. 85-
1031 allocating $300,000 to the Allapattah Merchants Association
in the form of a loan for the construction, expansion and
rehabilitation of the Live and Let Live Drug Store; and
WHEREAS, the Allapattah Merchants Association will be
unable to carry out its responsibilities associated with this
projects and
WHEREAS, the expansion of the Live and Let Live Drug
Store is still a viable community project for the economic
redevelopment of the Allapattah target area; and
WHEREAS, Allapattah is a designated blighted area under
Section 163.340(9) of the Florida Statutes and the purpose of
this project is to improve and rehabilitate the Allapattah area
and to stimulate its economic development by the expansion and
upgrading of a major retail business, creating additional jobs
and stimulating additional commercial activity in the
neighborhood; and
WHEREAS, Allapattah Medical Pharmacy Building, Inc. will
identify and obtain additional funding from other sources in the
amount of $225,000, or be able to demonstrate that the project
can be completed with a lesser amount before funds are disbursed;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE
CITY OF MIAMI, FLORIDA:
Section 1. That the City Manager is hereby authorized
and directed to execute a loan agreement, secured by a promissory
note and mortgage, in a form acceptable to the City Attorney,
with the Allapattah Medical Pharmacy Building, Inc. in the amount
of $300,000 to construct, redevelop and expand the Live and Let
Live commercial property located at 3520 N.W. 17 Avenue into a
retail pharmacy/medical arts commercial complex.
Section 2. $300,000 of Tenth (10th) Year Community
Development Block Grant funds is hereby allocated as the funding
source of the herein loan.l
Section 3. No funds shall be released for construction,
expansion and/or rehabilitation until the City has acquired a
secured promissory note with an assignment of first mortgage to
the City on the property and Allapattah Medical Pharmacy
Building, Inc. has acquired a firm commitment for an additional
$225,000 from other sources and/or can demonstrate to the City
that the project can be completed with available funds.
Section 4. The loan amount is $300,000 with a fixed
interest rate of six percent (6%) amortized over a period of
twenty (20) years, and secured by a first mortgage on the
property. Interest to be paid quarterly during construction
period, and principal and interest payments to commence after
completion of project and issuance of Certificate of Occupancy.
1 Th s is a reallocation of funds previously allocated and committed
to the Allapattah Merchants Association, Inc. by Resolution NO.
85-1031, which allocation is hereby rescinded.
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CITY Or MIAMI, rLOR,DA
INTER -OFFICE MEMORANDUM
17.:
TO, The Honorable Mayor and Members
of the City Commission
FROM: Cesar H* Odi
City Manager '
DATE: SEP 3 Q 1900 FILE:
SUBJECT: Authorization to Execute
an Agreement with the
Allapattah Medical Pharmacy
Building, Inc. for the Live
REFERENctmand Let Live Drug Store
Project
ENCLOSURES:
It is recommended that the City Commission
authorize the City Manager to enter into an
agreement with the Allapattah Medical
Pharmacy Building, Inc., for the Live and Let
Live Drug Store project, for the purpose of
providing a loan in the amount of $300,000
for a period of twenty (20) years, to assist
in the construction, expansion and
rehabilitation of the Live and Let Live
commercial property located at 3520 N.W. 17th
Avenue, with funds allocated from the Tenth
(loth) Year Community Development Block Grant
funds. Funding is to be secured by the.
customary loan agreements, first mortgage on
the property, assignment of leases, and note
approved as to form by the City Attorney.
The Allapattah Merchants Association, Inc. (AMA) had previously
requested $300,000 of Tenth (loth) Year Community Development
Block Grant funds to assist in the redevelopment of the Live and
Let Live Drug Store project. These funds were allocated and
approved by Resolution 85-1031.
The Allapattah Medical Pharmacy Building, Inc. is the for -profit
corporation of the Live and Let Live Drug Store project. It is
the legal entity in charge of funding, constructing and managing
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this project. Therefore, the City loan will be made to the
Allapattah Medical Pharmacy Building, Inc.
As one of the City's economic development community -based
organizations in the Allapattah neighborhood, AMA was to receive
$300,000 from the City for the purpose of providing a loan to
Allapattah Medical Pharmacy Building, Inc. of the Live and Let
Live Drug Store and assist in the redevelopment of the commercial
district along N.W. 36th Street and 17th Avenue. This
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represented Phase I of major redevelopment plans for the
Allapattah target area.
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On June 12, 1986, as per City Commission action, AMA was placed on
a six-month probationary period due to unsatisfactory contractual
performance. The Commission further instructed the City Manager to
conduct an administrative audit of AMA's 1985-86 contract and
further required that no disbursements of funds be made to the
organization until a satisfactory audit is received. This
probationary period is from July 1, 1986 until December 31, 1986,
at which time the contractor's performance will again be evaluated
and presented to the City Commmission for either contract extension
or termination.
In view of the fact that AMA received an unsatisfactory audit and
that the non-compliance issues cited have not been resolved, no
funds have been disbursed to the agency to date. Therefore, AMA
has been unable to retain its administrative staff and also has
been incapable of carrying out its responsibilities associated with
the Live and Let Live Drug Store project.
AMA was to receive a $300,000 loan at three percent (3%) for twenty
(20) years as authorized in Resolution No. 85-1031. Said funds
were to be loaned to the Allapattah Medical Pharmacy Building, Inc.
for the construction of the Live and Let Live Drug Store project.
The new resolution repeals Resolution No. 85-1031, effectively
removing AMA from any position in the project and allows for a
direct loan to the Allapattah Medical Pharmacy Building, Inc. for
the construction and permanent financing of the Center. This
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represents a major change in the terms of the loan by the
elimination of AMA which would have received permanent financing at
three percent (3%) and earned a profit on the transfer of funds to
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the project through another loan. The City will enhance its
position with the new agreement by receiving a six percent (6x)
interest rate and the funds will be disbursed on the basis of
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construction draws.
The terms of the new contract are as follows:
1) Principal amount of loan: $300,000.
2) Term of the loan is to be amortized over twenty (20) years
after completion of the project.
3) Interest rate to be fixed at six percent (6%) on the unpaid
balance.
4) Interest to be paid quarterly during construction, and
principal and interest payments due monthly after issuance of
the Shell Certificate of Occupancy on the unpaid balance.
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ril
The
honorable Mayor and Members
of
the City Commissin
Page
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5)
The loan is to be secured by a
first mortgage on the
property.
x
6)
The total cost of the project
will be approximately
$525,000.
Three hundred thousand dollar
loan ($300,000)from the
City of
Miami, one hundred and fifty
thousand dollar loan
($150,000)
from Alliance National Bank and
seventy-five thousand
dollars
($75,000) provided by the principals.
7) No funds will be released
until the developer can demonstrate
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that financing is available
to complete the project.
Based on the foregoing, it is
recommended that the City Commission
authorize the City Manager
to execute an agreement with the
Allapattah Medical Pharmacy Building, Inc. for the expansion and
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revitalization of the Live and
Let Live Drug Store project.
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