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HomeMy WebLinkAboutR-85-0823/l ,7-85-763 7/25/85 L , . RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, WITH MIAMI SAVINGS BANK (MSB) WHEREBY A FIVE MILLION DOLLAR CERTIFICATE OP DEPOSIT IS TO BE INVESTED ON AN ANNUAL BASIS FOR FIVE YEARS AS AN INCENTIVE FOR MSB TO ESTABLISH A BRANCH BANK IN THE OVERTOWN SHOPPING CENTER TO BE DEPOSITED AFTER THE BANK HAS OPENED AND WHEREBY THE ANNUAL REINVESTMENT OF SAID FUNDS SHALL BE CONDITIONED UPON THE CONTINUED OPERATION OF THE MSB BRANCH BANK IN THE OVERTOWN SHOPPING CENTER IN FULL COMPLIANCE WITH ALL APPLICABLE BANKING LAWS; FURTHER REQUIRING THAT INTEREST ON THE DEPOSIT SHALL BE REVIEWED ON A 30-DAY BASIS. WHEREAS, the City Commission is committed to the redevelopment of Overtown; and WHEREAS, the City Commission approved Resolution No. 84-875 on July 31, 1984 authorizing the City Manaqer to publish a Request for Proposal (RFP) for qualified full -service banks to establish a branch bank at the Overtown Shopping Center; further stating that the City shall make available Five Million Dollars to be invested as a Certificate of Deposit on an annual basis I after the opening of the branch bank in the Overtown Shopping Center; further stating that the annual reinvestment of said funds shall be conditioned upon the continued operation of the branch bank in the Overtown Shopping Center in full compliance with all applicable banking laws; and WHEREAS, the City published the RFP between August 15, 1985 and August 24, 1984; and WHEREAS, Miami Savings Bank (MSB) responded to the RFP on September 5, 1984; and WHEREAS, MSB filed an application on February 9, 1985 with the Comptroller of the State of Florida for approval of an Overtown Branch based upon informal commitments from the City and County to establish accounts; and Gl'1'i s,; Vlvuvu � �tt,�iy MEETING OF JUL 9L, 4SM3 1 WHEREAS, on April 5, 1985 the Comptroller of the State of. Florida approved the application made by MSR to establish a branch in Overtown; and WHEREAS, MSR has made preparations in order to proceed with establishing the branch in Overtown; and WHEREAS, a Five Million Dollar Certificate of Deposit will be made available for five years to MSB after it has opened its Overtown Branch; and WHEREAS, interest on the deposit is to be reviewed on a 30- day basis; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Mana4er is hereby authorized to execute an agreement, in a form acceptable to the City Attorney, with Miami Savings Bank (MSB) whereby a Five Million Dollar Certificate of Deposit will be invested on an annual basis for five years after the branch bank has opened in the Overtown Shopping Center and whereby the annual reinvestment of said funds shall be conditioned upon the continued operation of the MSB 9 Branch Bank in the Overtown Shopping Center in full compliance with all applicable banking laws and further requiring that r interest on the deposit is to be reviewed on a 30-day basis. PASSED AND ADOPTED this 25th day of JULY , 1985. Maurice A. Ferre MAURICE A. FERRE, MAYOR L� LPH G. ONGIE, CITY CLE APPROVED LUC IA CITY A71TORNEY RFC/rr/142 AND CORRECTNESS: 8u-ci2.3 ",rk CITY OF MIAMI. FLORIDA INTER -OFFICE MEMORANDUM 39 LC , TO Honorable Mayor and Members 04TE JT` 1 9 CLE: of the City Commission SUOJECT AWARD OF $5 MILLION CERTIFICATE OF DEPOSIT TO MIAMI SAVINGS BANK FROM REFERENCES Sergio Pere' a� C i 4y i 1a ►i a g Q`_ f�+`� ENCLOSURES �f It is recommended that the City Commission approve the attached resolution authorizing the City Manager to enter into an agreement, in a form acceptable to th-a Ci ty Attorney, with Mi ami Savings Bank (MSB) whereby a five Million dollar Certificate of Deposit is invested as an incentive for MSB to establish a branch bank in the Overtown Shopping Center and whereby the annual reinvestment of said funds shall be conditioned upon the continued operation of the MSB branch bank in the Overtown Shopping Center in full compliance with all applicable banking laws." On July 31, 1984, the City Commission approved Resolution No. 84-875 authorizing the City Manager to publish a Request for Proposal (RFP) for qualified full -service banks to establish a branch bank at the Overtown Shopping Center. The resolution also stated that the City shall make a $5 million five year Certificate of Deposit (CO) available upon the opening of the branch bank in the Overtown Shopping Center and that the annual reinvestment of said funds shall be conditioned upon the continued operation of the branch bank in the Overtown Shopping Center in full compliance with all applicable banking laws. In response to the RFP published between August 15, 1984 and August 24, 1984, Miami Savings Bank (MSB) has agreed to establish a branch in Overtown with the understanding that the City's $5 million Certificate of Deposit would be matched by a depository account with an average daily balance of 53 million in order t-, justify the establishment of the branch. Although the Caenty 'ias expressed an interest :n participating with the C i ty by astabl i sni ng the aeposi Cory account, ►iagoti ati ons involving the �.i:y, ,4S3 and the County have not been concluded. 8 V I(. Aj. Honorable Mayor and Members of the City Commission Page =2 It should be noted that the establishment of a branch bank at the Overtown Shopping Center is essential to the projected success of the shopping center and will provide banking services to Overtown residents Nhich nave not been available over the past sixty years. The attached resolution recommends that the Ci-y proceed with entering into an agreement with MSB whereby the $5 million Certificate of Deposit is established in spite of the unconcluded negotiations for a depository account from the County. This recommendation is significant in maintaining the interest of existing and prospective tenants at the Overtown Shopping Center. SP/CG/es Attachment 8 8 ram` ��ti u