HomeMy WebLinkAboutR-85-0742'UP
01/05/85 42
RESOLUTION NO,
A RESOLUTION AUTHORMNO THE CIty MANAtk tb
ACCEPT A Ob LOAN UNDER
NO ANDAND
BAN DEVELOPMENT
DEPARTMENT( ir HOU51ROGRAM NLGOTIAlt THE
SECTION 108 LOAN P ACREtMENTq to
CONTRACTS AND FURTHER
NECESSARY T H L LOAN PROGRAM,,
IMPLEMENT 11 NOTE FOR
AUTHORIJING A PROMISSORY
REPAYMENT Or SAID LOAN TO SAM A"t4ey-
WHEREA5, the City COMM' 88i0h approved Resolution No. 83-975
tizihq the City. MOhAOOt to prepare and submit an BPP"cat'oh
autho loan under the U.S, Department of I Housing And
for a $5j958t400 i
Urban Developme
granted to the City for Use
WHEREAS, the $5,958,400 loan was acts; and
as gap financing in Community Development PrOJ Resolution No.
Commission approved, by
WHEREASt y the Cit West Redevelopment Plan' and
82-75,j 9 the Southeast Overtown/Park purchase of
WHEREAS, the Commission has authorized the ment
several parcels in the Southeast overtown/Park West Redevelop
Project Area and have selected developers for Phase I of the
Project; and the public, and
WHEREAS, development of the project neneli s
WHEREAS, gap financing May be necessary for some project
developers; RE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
NOW, THEREFO
CITY OF MIAM19 FLORIDA: the City manager to
Section 1. The Commission authorizesf Housing and
accept a $5,958,400 loan from the U.S. Department 0
t under its Section 108 Loan Program and to
Urban Developmen
ssarcontracts and agreements to implement the
negotiate necey
loan program. Commission authorizes the execution of
Section The of said loan tO S,40 Agency
promissory note for the repayment dui 1985.
PASSE[) AND ADOPTED this --larth day of
Im
ATZESTMaurice A X=&& -
MI FIPTM --7
3 �u r i Ce
.13,u r t C
CITY COMM16610
y C 14EETINO OF
JOL 18 1915
REM*RhS
'Oft OP MtRMt, kL"i RIBA
iWtU4PPICR MIRMO14A DUM
ta. The Honorable Mayor bsft July ► 1485��
and Membet§ of the City C fhMisaidh
�U��EtT
Acceptance of HUD 8ectior
oan; City Cotttissicn
108 Lo
8�rgio Pereira Agenda July 18# 1985
t
��ia�: €t���pENrc�s:
City Manager
(1)
It is recommended that the City Coffitftission
adopt the attached resolutiOn authotiting the
City Manager to accept a $ 5, g58► 400 loan
under the U—S, Department ot mousin ana
Urban Development - SeCt'jo 1 1 Loan prngrat�
an - negotiate the necessary contracts and
agreements to its lenient the load. rog_r;
further authoria a prom sso y -note for the
repayment o said oan.
It is recommended that the City Commission adopt the attached
resolution to allow the City to accept the approved Section 108
Loan and to authorize the approval of a Promissory Note covering
the terms of the loan, including its repayment. The Section 108
Loan is not to be guaranteed by the general credit of the City,
Block
but it is to be guarateed by future Community Development
Grant (CDBG) entitlement funds coming to the City of Miami from
the U.S. Department of Housing and Urban Development.
Application for the Section 108 Loan was authorized by the City
Commission ( Resolution No. 83--975) and was filed in early 1985
and approved last May (1985). This loan will be used to acquire
additional properties within the Southeast Overtown/Park West
Redevelopment Project Area as part of the Phase I acquisition
(Parcel 44). This method of financing, and its specific
application to this project, was previously outlined in the Phase
I Financial Strategy, submitted to the Commission in June of
1984.
The proceeds of the Section 108 Loan will be used to acquire
parcels needed for the Arena component of the Biscayne Centrum
Complex, which was authorized by the Commission (Resolution 85-
394),
�7*
i
7�
mayor and City dommiggi6h =2Z.
July it 1985
The section 108 Loan is to be repaid within six years from time
of draw down with the prodeedt of a Tax Increment Revenue fond,
which will be issued At that time. Projections show that there
will be sufficient ihdtdadeg in tax revenues from the 8"the"t
Ovdrt6wn/Park West Kedevel6pmont Area, due to Phase I PtOJdct§
being C61ftPldtdd and from other developmoht activity anticipated,
to provide sufficient debt service Coverage ratios to comfortably
accompligh this retirement of the Section 108 Loan. Should the
tax increments fail to reach the required and anticipated level
within the six year periodt the Tax Increment Revenue Bond Issue
would heed to be sized at a reduced amount, In this cage, the
City would be able to utilize CD80 entitlement fuhdg to make up
any deficiencies. The City is not required to pledge any
resources beyond future CW30 funds as obligations toward
repayment.
85-742
F"A
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