HomeMy WebLinkAboutR-83-0144J-83-74
RESOLUTION NO. 83-14,(4,
A RESOLUTION AUTHORIZING THE CITY
MANAGER TO NEGOTIATE AND EXECUTE
A LOAN AGREEMENT WITH DALLAS PARK
ASSOCIATES, LTD., FOR THE PURPOSE
OF PROVIDING INTERIM FINANCING
IN THE AMOUNT OF $4.2 MILLION OF
8TH YEAR COMMUNITY DEVELOPMENT
BLOCK GRANT FUNDS FOR THE PURCHASE
OF FURNISHINGS, FIXTURES, EQUIP-
MENT AND MATERIALS NECESSARY FOR
THE DEVELOPMENT OF A DELUXE
EXECUTIVE HOTEL TO BE KNOWN AS
THE RIVER PARC HOTEL.
WHEREAS, the City Commission adopted Resolution No. 82-290,
dated April 1, 1982, approving the 8th Year Community Development
program; and
WHEREAS, as part of this program the concept of a $5 million
Community Development float program was approved; and
WHEREAS, a Community Development Block Grant float is a
financing mechanism which provides short term loans using programmed,
yet unspent, Community Development Block Grant funds for eligible
Community Development Block Grant activities, and
WHEREAS, the funds loaned under this program will be
protected by stand-by commitments or letters of credit, and
WHEREAS, principal and interest will be returned to the
Community Development Block Grant program within a year's time for
eligible activities, and
WHEREAS, City of Miami staff is in the process of negotiating
loan
a A agreement with Dallas Park Associates, Ltd., for $4,200,000, and
WHEREAS, City of Miami staff is of the opinion that a
mutually beneficial agreement can be reached.
CITY COMMISSION
MEETING OF
F E B 10 1983
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE
CITY OF MIAMI, FLORIDA:
Section 1. The City Manager is authorized to negotiate and
execute a loan agreement with Dallas Park Associates, Ltd., for the
purpose of providing interim financing in the amount of $4.2 million
of 8th year Community Development Block Grant funds for the purchase
of furnishings, fixtures, equipment and materials necessary for the
development of a deluxe executive hotel to be known as the River
Parc Hotel.
PASSED AND ADOPTED this 10th day of February , 1983.
ATTEST:
RalpW G. Ongie, City Cle
PREP
APPROVED BY:
Deputy City Attorney
APPROVED AS TO FORM AND CORRECTNESS:
ose R. Garcia -Pedrosa
City Attorney
Maurice A. Ferre
Mayor
2.
83-JL44
j
34 A
Howard V. Gary
City Manager
.4, e x",-
Dena Spillman
Director
Community Development
February 2, 1983
Community Development Float
City Commission Meeting -
February 10, 1983
It is recommended that the attached
resolution be approved, authorizing
the City Manager to negotiate and
execute a loan agreement with Dallas
Park Associates, Ltd., in the amount
of $4,200,000 for providing interim
financing for the purchase of fur-
nishings, fixtures, equipment and
materials necessary for the develop-
ment of a deluxe executive hotel to
be known as the River Parc Hotel.
The City Commission, as part of the Community Development process,
approved in concept a $5 million Community Development float pro-
gram as a way to mitigate the impact of federal cuts.
The Community Development Block Grant float is a financing mechanism
which provides short-term loans using programmed yet unspent, Commu-
nity Development Block Grant funds, for eligible Community Development
Block Grant activities. The funds under this program will be pro-
tected by stand-by commitments or letters of credit, and the loans
will cover a period of one year or less.
The principal and interest derived from this loan will be returned
to the Community Development program in a year's time or less, and
such interest will be utilized to fund new activities eligible under
the Community Development Block Grant program.
The City of Miami is in the process of negotiating an agreement with
Dallas Park Associates, Ltd., for $4.2 million for the purpose of
providing interim financing for the purchase of furnishings, fixtures,
equipment and materials necessary for the development of a deluxe
83-144
Howard Gary
2/2/ 83
page 2
executive hotel to be known as the River Parc Iiotel. The interest
rate on the loan will fluctuate with the prime rate. At a prime
rate of llo, our interest will be 5.3%. If the prime rate falls
below that, then the interest rate will be in the same proportion
to the prime rate as5.356' is to 11%. In return for a low interest
rate, the developer will work with the City of Miami's Overtown
Job Training Program in order to recruit Overtown residents for
permanent jobs in the hotel industry.
/c r _
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