HomeMy WebLinkAboutR-86-0498RESOLUTION NO. 86-4:98
A RESOLUTION AUTHORIZING THE CITY
MANAGER TO ENTER INTO AN AGREEMENT IN
A FORM ACCEPTABLE TO THE CITY
ATTORNEY, WITH THE COCONUT GROVE
PLAYHOUSE, INC., FOR THE PURPOSE OF
PROVIDING A LOAN IN THE AMOUNT OF
$200,000 FOR A PERIOD OF SEVEN (7)
YEARS TO ASSIST IN PROVIDING OPERATING
CAPITAL NECESSARY TO MAINTAIN THE
PLAYHOUSE OPERATIONS; FURTHER
AUTHORIZING THE USE OF COMMUNITY
DEVELOPMENT BLOCK GRANT FUNDS IN
ACCORDANCE WITH CERTAIN TERMS AND
CONDITIONS, AS DESCRIBED BELOW.
WHEREAS, the Coconut Grove Playhouse, Inc. is a member of
the State theater system and operated as an artistic institution
by an independent, not -for -profit, citizen board, headquartered
in the City of Miami, and is committed to the expansion and
economic revitalization of the Coconut Grove area and the City of
Miami; and
WHEREAS, the Coconut Grove Playhouse, Inc. provides a
valuable service to the community by promoting development
through the production and presentation of professional arts and
educational activities; and
WHEREAS, the promotion of economic revitalization in the
City of Miami neighborhoods is an important part of the City's
development strategy.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF MIAMI,
FLORIDA:
Section 1. The City Manager is hereby authorized to
provide an operating capital loan to the Coconut Grove Playhouse,
Inc., in the following terms and conditions:
1. Principal of loan: $200,000.
2. The loan will be interest free for the first two
years. Thereafter, the interest rate will be at the
average rate of South Florida Prime for the respective
quarter.
3. Term of loan shall be for a period of seven (7) years.
4. Moratorium of principal payments for the first two
years. ! CITY com-MISSION
MEETING OF
JUN 2R8�jsm
lut;
5. Quarterly payments of principal in the amount of
$10,000 from year three (3) to year seven (7) of the
loan, plus accrued interest.
6. During the term of the loan, the City of Miami shall
receive a minimum of one hundred (100) free tickets to
the final dress rehearsal of each production
performance at the Playhouse and two hundred -
(200) free tickets to actual performances of each
production.
7. The loan shall be collateralized through means deemed
satisfactory and acceptable to the City Manager.
Section 2. $200,000 of Community Development Block Grant
funds is hereby authorized for use as the funding source of the
herein mentioned loan.
PASSED AND ADOPTED this 26th day of JUNE 1986.
XAVIER L. SbWREZ, MAYOR
ATTES
MAT7Y HIRAI, CITY CLERK
PREPARED AND APPROVED BY:
eoeva -721, &a1c"4
ROBERT F. CLARK
CHIEF DEPUTY CITY ATTORNEY
APPRO)IEIY AR TO FORM AND CORRECTNESS:
DOUGHERTY
CITY
6G-499,
CITY OF MIAMI. FLORIDA 14
INTER -OFFICE MEMORANDUM
To. Honorable Mayor and Members OATE: JUN 1 81986 FILE:
of the City Commission
SUBJECT: Coconut Grove Playhouse
Loan
Cesar H. Odio
FROM; /� REFERENCES:
City Manager
ENCLOSURES:
It is recommended that the City Com-
mission authorize the City Manager to
enter into an agreement with the
Coconut Grove Playhouse, Inc., for the
purpose of providing a loan in the
amount of $200,000 for a period of
seven (7) years to assist with the
operating capital necessary to maintain
its current level of activities with
funds allocated from the Community
Development Block Grant Program.
On June 12, 1986, the City Commission authorized the City Manager
to negotiate an agreement with the Coconut Grove Playhouse, Inc.,
subject to certain terms and conditions to be approved by the
Commission, for the purpose of providing a $200,000 working
capital, loan.
The specific terms recommended are as follows:
1): Principal of loan: $200,000
2) Pursuant to City Commission instruction, the loan will
be interest free for the first two (2) years, thereafter
the interest rate of the loan shall be at the average of
the South Florida Prime for the respective quarter.
3) Term of the loan shall be for a period of seven (7)
years.
4) Moratorium of principal payments for the first two
years.
5) Quarterly payments of principal in the amount of •$10,000
from' year three ( 3 ) to year -seven ( 7 ) of the loan plus
accrued interest.
Honorable Mayor and Members
of the City Commission
Page 2
6) Pursuant to City Commission request, the City of Miami
will receive a minimum of two hundred (200) free tickets
for each production at the Playhouse. It is recommended
that the City accept one hundred (100) tickets for the
final dress rehearsal of each production and one hundred
fifty (150) free tickets for actual performances of each
production. The Playhouse has offered to provide two
hundred (200) tickets for the final dress rehearsal.
These tickets are normally free and given away to the
public. It is recommended that the Playhouse provide an
amount of one hundred fifty (150) tickets to actual
performances, in addition to the one hundred (100) for
the final dress rehearsal, since part of the total
theater experience is attending actual performances.
The tickets can be divided throughout all performance
dates. It was the City Commission's request that the
free tickets be given, to individuals who normally would
be unable to attend the theater.
7) In addition, the Commission requested that the loan be
secured by sufficient collateral. However, the Coconut
Grove Playhouse, Inc. reported that it would be unable
to provide collateral due to the fact that the
organization has no corporate assets. Under this
condition, should the $200,000 be approved as an
unsecured loan, the City would have no recourse in the
event of a default.
It is therefore recommended that, in order to maximize
the public benefit of the loan, the Playhouse provide a
maximum of fifteen (15) rent-free days per year during
the seven (7)-year term of the loan for use by non-
profit organizations presenting artistic productions
suitable for the Playhouse. Aside from the rent, the
presenters would have to pay all other costs associated
with using the Playhouse. Dates would be restricted to
those days when the Playhouse is not used for house
productions.
Considering that the Coconut Grove Playhouse, Inc. has no
corporate asset to pledge, and that the Commission authorized the
City Manager to negotiate an agreement for said funds, staff
recommends approval of the loan, with the terms and conditions
previously mentioned and that the City Commission waives the
collateral requirement previously requested.
CHO/EB/zi
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