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Home My WebLink AboutM-82-066014 MOM sm.. z i Suite 2M one Biscayne Tower Miami. Florida W131 (305)374-4111 July 5th, 1982 Mr. Howard Gary City Manager City Hall, City of Miami Florida Dear �r. 6C n Chief Emuthh off m ALAN TEALE. F.C.IS.. A.C.1.1.. M. InSL Am. Board of Goamon: W. DANA ROEHRIG.Chairman STEPHEN W. ARKY, Vice Chahimn FARRISBRYANT ARMANDO CODINA NICHOLAS L CROSS HARRY A. JOHNSTON. It FREDERICK B. KARL C.H. "SKIP" LONG. JR. VAN MASSEY ALLAN McCORKLE WILLIAM F. POE BUDDY JOE RICHARDS WILLIAM E. "BILi' SADOWSKI TED P. WITTNER During the past months we have kept City Hall advised of the progress made by the Exchange following the successful. arguments presented in 1980 by Mr. Maurice Ferre as Mayor for the Exchange to locate in Miami. I am now instructed to bring you completely up to date. At the last meeting of the Exchange Board 14 Syndicates were submitted for preliminary scrutiny together with 34 corporations seeking authori- zation as Exchange Brokers. This number is expected to grow steadily in the coming weeks. We are now located from July 1st at 245 S.E. 1st Street and the Exchange intends to open the Underwriting Chamber formally during; October. The Board has in the circumstances agreed to make reference to the question of interim finance, the possible need for which was foreseen in 1980 at the time of the location decision. Financing has so far been derived from the monies paid by the Founders Roll opened in 1981 and by the support of a number of Banks who have made a line of credit available. The two total $900,000 and to this we are now able to add fees and subscriptions being paid by the incoming Members: these should progres- sively total some $450,000. We will earn these over a period of some 9 months by which time we should be earning contributions based on Underwriting income. The concern of the Board, however, remains that a cash flow problem may arise during the early period of operation because of the inevitable n Mr. Howard Cary July 5, 1982 Page -2- higher outflow of funds that customarily affects new ventures during, this period. In illustration, a Statement of Expense for the two years ending December ... 31st and a projected budget for 1983 are attached. In the circumstances, the Board wishes to take precautions by seeking 4 standby credit from the City of $500,000 based on assurances of support given during the 1980 discussions. This would not be called upon if it can be avoided but knowledge of its availability would be valuable as reassurance to the Exchange and outside observers. ',The terms it is hoped would be made helpful to the Exchange by having a 10-year repayment period at a fixed and advantageous rate of interest. It is anticipated that the City would no doubt look for a civic con- sideration for the assistance. A number of plans for such participation in City amenities are already before the current Foard which are due to be taken over for development by the new Board due to be elected in August. For example, education and training plans have been commenced through local Universities whicH are to be enhanced. Further, the Exchange is involved in discussions for the creation of the City of Miami as a cohesive financial center. These examples which will be financed out of the profits earned by the Exchange also will be open to and brine beneficial results for the popula- tion generally. Discussion of additional similar projects suited to our skills and resources is pending and we would welcome cooperating with the City in this field as part of our overall contribution. Yours sincerely, 1, /c Alan eale, President Encl . *Fou Projection PROJECTED INCOME AND EXPENDITURE OVER 2 FORMATIVE YEARS FOR PERIOD JAN L981 TO DECEMBER 31992 *each projection reflects changing circumstances as Exchange builds INCOME EXPENDITURES Founders $400,000 Pa;rroll (inc. Membership Fees 450,000 taxes & Benefits $420,000 Bank Line of Rent 100,000 Credit 500,000 E.D.P. 150,000 Interest 6,000 Subscription etc. 15,000 Other 1,200 71-,357 Travel, P.R. and entertainment 100,000 Postage, etc. 16,000 Printing, etc. 60,000 Telephone etc. 30,000 Professional 30,000 General Office 35,000 $95 ,000 Funds anticipated to be available at year end $401,200 PROJECTED BUDGET 1983 INCOME EXPENDITURES Bt. forward $401,200 Payroll (inc. New Yembership taxes & Benefits) $750,000 fees 100,000 Interest 10,000 Rent 250,000 Other 10,000 E.D.P. 250,000 Contributions by Travel, P.R. and Members as entertainment 75,000 required 1,018,800 Postage etc. 15,000 Printing etc. 60,000 Total $1,540,0O0 Telephone, etc. 60,000 Professional 50,000 General 30,000 Total $1, 540 , 000 L] CW (:OR flum I June 25, 1982 Mr. Alan Teale Chief Executive Officer The Insurance Exchange of the Americas Suite 2800 One Biscayne Tower Miami, FL 33131 Dear Alan: 0 HOWARD V GARY cl'y klaneger I am sorry we were not able to get together Monday evening for dinner. In speaking with the City Manager regarding funding for the Insurance Exchange of the Americas, he requested that you provide the following materials for his review: 1. A letter drafted to Mr. Gary's attention requesting an appearance before the City Commission on June v*'22, 1982. The letter should describe the purpose for the funding request and the amount of funding requested. Additionally, the letter should describe the method by which the Insurance Exchange will re- pay the funds. The letter must be delivered to his office by noon, July Gth. I would suggest that you hold to Mayor Ferre's suggestion of the City loaning $500,000 to the Insurance Exchange to be repaid over a 10 year period at 13.3% interest. In exchange for this loan, the Insurance Exchange should be prepared to commit J of 1% of is profits to the City to be used for economic development purposes. 2. A line item budget should be attached to the letter. DEPUTMENT OF TRADF $ CUMNIFRU DEVELOPMENT I New World Tower, 100 N Biscone 61%d.. 91h floor/ Miami, Florida 33132 11051 579.33.0 Telex Su 152221 MIAED UT CHR,RLOTTF A GALIOCLY D,rerW* Mr. Alan Teale Page 2 June 25, 1982 a I will be happy to discuss this with you when you return to town. If you like, I will review your draft letter before forwarding it to Howard Gary. Sincerely, Charlotte Gallogly Director CG/es cc: Howard Gary • QV C031rj� fi M, W 0 June 25, 1982 Mr. Alan Teale Chief Executive Officer The Insurance Exchange of the Americas Suite 2800 One Biscayne Tower Miami, FL 33131 Dear Alan: 9 �u2 �J�c+ Z� �•� HUNAKD V GARY C0Y Rlaneger I am sorry we were not able to get together Monday evening for dinner. In speaking with the City Manager regarding funding for the Insurance Exchange of the Americas, he requested that you provide the following materials for his review: 1. A letter drafted to Mr. Gary's attention requesting an appearance before the City Commission on June 22, 1982. The letter should describe the purpose 94t4 for the funding request and the amount of funding requested. Additionally, the letter should describe the method by which the Insurance Exchange will re- pay the funds. The letter must be delivered to his office by noon, July 6th. I would suggest that you hold to :Mayor Ferre's suggestion of the City loaning $500,000 to the Insurance Exchange to be repaid over a 10 year period at 13.310 interest. In exchange for this loan, the Insurance Exchange should be prepared to commit j of to of is profits to the City to be used for economic development purposes. 2. A line item budget should be attached to the letter. CGEPAkTMFNT OF TRADF & C0."1-'.1FP.CF DEVELOPMENr ! New World Tower, 100 N Doxi.ne 5.%d., 9*,h Fi.�:: r hlijrni. Ft ride 33i3: (101) 579.1120 Te!eA No W221 &V It,) UT CHArLOM .1 GA.UOCLY. D.,e,tw Air. Alan Teale Page 2 June 25, 1982 I will be happy to discuss this with you when you return to town. If you like, I will review your draft letter before forwarding it to Howard Gary. Sincerely, Charlotte Gallogly Director CG/es cc: Howard Gary I