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HomeMy WebLinkAboutR-85-0287J-85-239a 3/6/85 rr/057/D-T 85�28 RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER -' TO AMEND, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, THE MEMORANDUM OF AGREEMENT DATED JULY 20, 1983, BETWEEN k'F BELAFONTE TACOLCY CENTER, INC. (BTC) AND }' THE CITY OF MIAMI SO THAT THE TERMS OF THE PROMISSORY NOTE, DATED MAY 10, 1983 IN THE AMOUNT OF $400,000, BETWEEN BTC AND THE CITY, WILL BE MODIFIED TO DEFER THE DUE DATES FOR ALL PAYMENTS UNDER SAID NOTE BY SEVENTEEN (17) MONTHS WITH ALL OTHER TERMS OF THE AGREEMENT REMAINING UNCHANGED. WHEREAS, on July 22, 1982 the City Commission adopted Resolution No. 82-636 which approved and confirmed the City Manager's acceptance of an $800,000 joint grant award to the Belafonte Tacolcy Center, Inc. (BTC) and the City of Miami for the acquisition and development of the Edison Plaza Shopping Center; and _ WHEREAS, on November 10, 1982 the City Commission adopted Resolution No. 82-1075 authorizing a loan agreement between BTC and the City whereby an additional $400,000 in long term, loan interest funds would be provided to BTC for the acquisition and development of the Edison Plaza Shopping Center; and t WHEREAS, on July 20, 1983 the City Manager executed a ?; Memorandum of Agreement between BTC and the City which outlined certain terms regarding the $800,000 grant and the $400,000 loan; and WHEREAS, Article II-B of the said Memorandum of Agreement provides for a Promissory Note for the $400,000 loan; and WHEREAS, the Promissory Note calls for the first interest payment to be made on the last day of November, 1983 and the last principal and interest payment to be made on the last day of August 2023; and CITY COMMISSION MEETi"C' ";: MAR 421 *85 Q�J RESOLD i ,,). REMARKS a< - WHEREAS, BTC has requested that the terms of repayment of the $400,000 loan be modified such that the first payment will be due on the Last day of April, 1985; and �M WHEREAS, the City Commission is willing to provide for _- the modification as requested by BTC; =s_ NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE R CITY OF MIAMI, FLORIDA: 5=` Section 1. The City Manager is hereby authorized to amend, in a form acceptable to the City Attorney, the i Memorandum of Agreement dated July 20, 1983 between Belafonte Tacolcy Center, Inc. (BTC) and the City of Miami whereby the terms of the Promissory Note, dated May 10, 1983 in the amount of $400,000, between BTC and the City, may be modified such that the due dates for all payments may be deferred by seventeen (17) months such that the due date of the first interest payment may be changed from the last day of November, 1983 to the last day of April, 1985 and the due date of the last principal and interest payment may be changed from the last day of August, 2023 to the last day of January, 2025 with all other terms of the Agreement remaining unchanged. PASSED AND ADOPTED this 21 day of March , 1985. ATTEST: RALAM ONGIE, CITY C PREPARE APPROVED BY: ROBERT F. CLARK CHIEF DEPUTY CITY ATTORNEY APP AND CORRECTNESS: Maurice A. Ferre M A Y O R ss-287. CITY OF MIAMI, FLORIDA 72 INTER -OFFICE MEMORANDUM w - I ' TO: Randolph B. Rosencrant2 DATE: March 1, 1985 "FiIE; City Manager SUBJECT: AMENDMENT TO THE MEMO- RANDUM OF AGREEMENT DATED JULY 20, 1983 BETWEEN THE FROM: ^ REFERENCEs: BELAFONTE TACOLCY CENTER, Charlotte Gallogl ��b� INC. AND THE CITY OF MIAMI Director ��-� ENCLOSURES: Department of Economic Develop en "It is recommended that the City Commission approve the attached Resolution authorizing the City Manager to amend, in a form acceptable to the City Attorney, the Memorandum of Agreement dated July 20, 1983 between the Belafonte Tacolcy Center, Inc. (BTC) and the City of Miami whereby the terms of the Promissory Note, dated May 10, 1983 in the amount of $400,000, between BTC and the City may be modified such that the due dates for all payments may be deferred by seventeen (17) months such that the first interest payment may be changed from the last day of November, 1983 to the last day of Apri 1 , 1985 and the due date of the last principal and interest payment may be changed from the last day of August, 2023 to the last day of January, 2025 with all other terms remaining unchanged. On July 22, 1982, the City Commission authorized the City Manager by Resolution Number 82-636 to submit a grant application to the United States Department of Commerce/Economic Development Administration (EDA) jointly with the Belafonte Tacolcy Center, Inc. (BTC) to acquire and renovate the Pantry Pride building located at N.W. 62nd Street and N.W•. 6th Avenue. The City Commission also expressed its intent by way of Resolution Number 82-1075 to meet the cash match requirement of EDA of $400,000 if the grant was approved and to accordingly enter into an agreement with BTC. 55--287. i- Randolph B. Rosencrantz Page 2 Upon OTC's purchase of the Pantry Pride property, which was to become known as the Edison Plaza Shopping Center (EPSC), BTC executed and delivered to the City a promissory note dated May 10, 1983 in the amount of $400,000 evidencing a mortgage on the property. This $400,000 loan was initially represented by a Memorandum of Agreement dated May 10, 1983 executed between BTC and the City. This agreement- was -superseded by- a --Memorandum -of--- Agreement dated July 20, 1983, also executed by BTC and the City. The terms of the promissory note required BTC to make payments as follows: 1. The first installment was due and payable on the last day of November, 1983 in a per diem amount of $33.33 which is multiplied by the number of days included in the period commencing on the day on which the maker of this Note (BTC) begins construction on the project; 2. The second installment was due and payable on the. last day of February, 1984 in the amount of $3,000 with interest due and payable thereafter in equal quarterly installments of $3,000 on the last day of May, August, November and February in each succeeding year through May, 2003; and 3. Principal and interest payments would then commence on the last day of August, 2003 with equal quarterly installments of $6,721.50 due then and thereafter on the last day of November, February, May and August of each succeeding year until the last day of August, 2023. The construction phase of the EPSC did not commence until December 24, 1983, therefore BTC was unable to satisfy its interest payment requirement as outlined in the promissory note. BTC's failure to make the required interest payments are a direct result of the delay in commencing the construction phase of the project. However, the promissory note clearly states that a default shall exist by reason of non-payment of any required installment of principal and/or interest if the non-payment continues until the due date of the next installment payment. 85-28'7 r._j Randolph B. Rosencrantz Page 3 BTC and its agent, Tacolcy Economic Development Corporation, are aware of the provisions outlined An its loan and promissory note agreements and a modif:ication.to these. provisions.- has . been requested. It i-s ' therefore recommended. -that -the -City -Commission amend1 the• terms , !,--� = of the Memorandum of -Agreement ••between, ---BTC and the City 'of -Miami, whereby the terms of the promissory note dated May 10,- 1983 in the amount of $400,000 between BTC and the City may be modified such that the due dates for all payments- may be deferred by seventeen (17) months whereby the due date of the first interest payment may 5e changed from the last day of November, 1983 to the last day of April, 1985 and the due date of the last principal and interest payment may be changed from the last day of August, 2023 to the last day of January, 2025 with all other terms remaining unchanged. CG/SP/MA/es Attachments 85-287, :A AMENDMENT An Amendment to a Memorandum of Agreement dated July 20, 1983, between the City of Miami and the Belafonte Tacolcy Center, Inc. WHEREAS, on July 22, 1982 the City Commission adopted Resolution Number 82-636 which authorized the City Manager to submit an $800,000 joint grant application between Be-lafonte Tacolcy Center, Inc. (BTC) and the, City of M-iami to the United States Department of Commerce/Ec-onomic Development Administration (EDA) for the acquisition and development of the Edison Plaza Shopping Center; and WHEREAS, on November 10, 1982 the City Commission adopted Resolution Number 82-1075 which approved and confirmed the City Manager's acceptance of an $800,000 joint grant award to BTC and the City of Miami for the acquisition and development of the Edison Plaza Shopping Center and expressed the intent of the City Commission to meet the cash match requirements of EDA by way of a $400,000 loan and accordingly authorized the City Manager to enter into an agreement with BTC; and WHEREAS, on May 10,-1983 the City Manager executed a Memorandum of Agreement between BTC and the City which was subsequently superseded by a Memorandum of Agreement dated July 200 1983; and WHEREAS, Article II-B of the Memorandum of Agreement dated July 20, 1983 provides for a Promissory Note for the $400,000 loan; and WHEREAS, the Promissory Note calls for the first interest payment to be made on the last day of November, 1983 and the last principal and interest payment to be made on the last day of May, 2003; and E WHEREAS, 0*4'C and its agent-, Tacol c? Economi cc Devel-opmeht Corporation, desire that the terms of repayment of the $400,000 loan be modified such that the first payment will be due on the last day of April, 1985; and WHEREAS, the City Commission is willing to provide for the modification to the terms of repayment of the $400,000 loan. THEREFORE , in mutual consideration of the covenants made herein, and in the agreement of which this is an Amedment, the (parties hereto- understand and agree as follows: I. Article II is hereby amended to add the following: "E. This Memorandum of Agreement dated. July 20, 1983 is hereby amended such that the due dates for all payments required by a Promissory Note dated May 10, 1983 may be deferred by seventeen (17) months such that the due date of the first interest payment may be changed from the last day of November, 1983 to the last day of April, 1985 and the due date of the last principal and interest payment may be changed from the last day of August, 2023 to the last day of -January, 2025 with all other terms' remaining unchanged. This amendment shall be represented by a new Promissory Note which references this Memorandum of Agreement." WITNESS our hands and seals on this of , 1985. ATTEST: day CITY OF MIAMI, a municipal Corporation of the State —of Florida 8y XALPR• CITY MANAGER CONTRACTOR: Belafonte Tacolcy Center, Inc. orpora a Secretary By President (CORPORATE SEAL) WHEREAS, O%C and i is agent-, Tacol C!4 Economic Devetopmeht Corporation, desire that the terms of repayment of the $400,000 loan be modified such that the first payment will be due on the last day of April, 1985; and WHEREAS, the City Commission is willing to provide for the — modification to the terms of repayment of the $400,000 loan. THEREFORE , in mutual consideration of the covenants made herein, and in the agreement of which this is an Amedment, the parties hereto- understand and agree as follows: 1. Article II is hereby amended to add the following: "E. This Memorandum of Agreement dated. July 20, 1983 is hereby amended such that the due dates for all payments required by a Promissory Note dated May 10, 1983 may be deferred by seventeen (17) months such that the due date of the first interest payment may be changed from the last day of November, 1983 to the last day of April, 1985 and the due date of the last principal and interest payment may be changed from the last day of August, 2023 to the last day of.January, 2025 with all other terms" remaining unchanged. This amendment shall be represented by a new Promissory Note which references this Memorandum of Agreement." WITNESS our hands and seals on this day of , 1985. ATTEST: RALPH U. UNGIL, CITY CLERK Corporate Secretary CITY OF MIAMI, a municipal Corporation of the. State -of Florida By CITY MANAGER CONTRACTOR: Belafonte Tacolcy Center, Inc. By President (CORPORATE SEAL) 85-287: GUARANTEE I, , in consideration of the City of Miami * s execution o he foregoing Agreement, the undersigned, guarantee the performance of the terms and conditions in said Agreement required to be performed by the Grantee including but not limited to the provisions relating to default, assurances, and certifications. Dated this day of 1985. an individual By IndIVIdual ly APPROVED AS TO FORM AND CORRECTNESS: tr1[Nr.W:Mfill 1l4:14:a�yrr�►.�ru�:a;�� 85--2137,