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HomeMy WebLinkAboutR-86-0136J-86-99 RESOLUTION NO.' y ) A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, WITH THE, NORTHEAST MIAMI CHAMBER OF COMMERCE (NEMCC), INC. FOR A LOAN OF $165,000 TO ASSIST IN THE PURCHASE AND REHABILITATION OF A COMMERCIAL PROPERTY LOCATED AT 232- 248 N.E. 79TH STREET/7821 N.E. 2NO AVENUE, FROM THE 7TH YEAR COMMUNITY DEVELOPMENT BLOCK GRANT, AT A FIXED RATE OF THREE PERCENT (3%) FOR FIFTEEN (15) YEARS WITH NO FUNDS BEING RELEASED FOR THE PROJECT UNTIL THE CITY HAS ACQUIRED A PROMISSORY NOTE FROM NEMCC; FURTHER PROVIDING THAT THE ADDITIONAL FUNDS NECESSARY FOR THE PURCHASE AND REHABILITATION OF THE PROPERTY, IN THE AMOUNT OF $435,000 IS OBTAINED FROM OTHER SOURCES; FURTHER REQUIRING THAT THERE BE NO EXPENDITURE OF ANY MONIES, IN EXCESS OF THE AMOUNT REQUIRED FOR DEBT SERVICE, UNLESS SUCH EXPENDITURES SHALL HAVE BEEN APPROVED BY THE CITY COMMISSION. 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 purpose of this project is to improve and rehabilitate the Edison/Little River area and to stimulate its economic development by the expansion and upgrading of a commercial property, creating additional jobs and stimulating new commercial activity in the neighborhood; and WHEREAS, NEMCC has identified and can obtain additional funding from other sources in the amount of $435,000; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Manager is hereby authorized and directed to execute an agreement, in a form acceptable to the City Attorney, with the Northeast Miami Chamber of Commerce CITY COMMISSION MEETING OF FEB 13 IM IUN No. 8 6 " 3 6 i 0 (NEMCC), Inc. for a loan to NEMCC of �165,000 to purchase and rehabilitate the commercial property located at 323-248 N.E. 79th Street/7821 N.E. 2nd Avenue. i Section 2. $165,Ej4)Q of the 7tl► Year Community Development Block Grant is hereby allocated as the funding source of the s herein loan at a fixed rate of three percent (30 for a period of fifteen (15) years. Section 3. No funds shall be released for the purchase and/or rehabilitation until the City has acquired a promissory note from NEMCC and has a firm commitment for the additional $435,000 from other funding sources. Further, there shall be no expenditure of any monies, in excess of the amount required for debt service, unless such expenditures shall have been approved by the City Commission. Section 4. The City will also require that fifty percent (50%) of the income from any syndication be applied toward y repayment of the loan. These conditions will remain in force until the loan is repaid in full. PASSED AND ADOPTED this 13th day of FEBR1ARY _ 1986. XAVIER L. SUAREX,/MAYOIT- ATTES `a MAdMY HIRAI, CITY CLERK PREPARED AND APPROVED BY: PVRfOE—AT CL CHIEF DEPUT ITY ATTORNEY APPROVED AS TO FORM AND CORRECTNESS: 1 ..-If I 1&,e 10'10W�49a IA A. DOUGHERTY CITY ATTORNEY w,86-13t; - ' PROMISSORY NOTE $165,000 Place: Miami, Florida Date: , 1986 FOR VALUE RECEIVED, the undersigned jointly and severally promise(s) to pay to the order of the CITY OF MIAMI, a Florida Municipal Corporation, (herein called the "CITY"), acting by and through its Department of Community Development, or its successors, the sum of One Hundred Sixty Five Thousand and No /100 Dollars ($165,000) [hereinafter referred to as "CITY LOAN"] in lawful money of the United States, together with interest thereon at the rate of three per centum (3%) per annum in like lawful money from the date hereof until maturity, on the principal balance outstanding from time to time. Such principal and interest shall be due and payable as follows: Principal payment shall be deferred in year one (1) and two (2) beginning March 31, 1986. Interest only shall be due and payable in equal quarterly installments of $1,237.50 for the first two years with the first quarterly payment due on June 30, 1986. Thereafter, principal and interest shall be due and payable in equal quarterly installments of $4,410.58 commencing on June 30, 1988 until June 30, 2001. The undersigned reserve(s) the right to prepay at at any time, all or any part of the principal amount of this Note without the payment of penalties or premiums. Except as provided below, all quarterly installment payments on this Note shall be credited as of the due date thereof without adjustment of interest because paid either before or after such due date. IN THE EVENT the undersigned shall fail to pay the interest on, or principal amount of this Note when due, and if such failure continues until the date the next installment payment under this Note becomes due and payable, the outstanding principal balance of this Note, together with accrued interest and late charges, shall become due and payable, at the option of the City, without notice to the undersigned. Failure of the City to exercise such option shall not constitute a waiver of such default. No default shall exist by reason of nonpayment of any required installment of principal and/or interest (so long as the amount of prepayments already made pursuant hereto equals or exceeds the amount of the requir-1 installments.) If any f quarterly installment of principal and/or interest due and s payable under this Note is not paid during the quarter which includes the due date of such installment, then the undersigned shall pay a late charge equal to five percent (5%) of the amount of each quarterly installment which is past due and remains unpaid during the quarter (or part thereof) following the month such installment is due. If this Note is reduced to judgement, such judgement shall bear interest at a rate of 6% per annum. IF suit is instituted by the City to recover on this Note, the undersigned agree(s) to pay all costs of such collection including reasonable attorney's fees and court costs. The Agreement between the undersigned and the City dated , 1986, hereby incorporated into and made a part hereof.