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HomeMy WebLinkAboutLegislationCity of Miami Legislation Resolution City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 06-01332 Final Action Date: A RESOLUTION OF THE MIAMI CITY COMMISSION AUTHORIZING THE CITY MANAGER TO NEGOTIATE AN AGREEMENT WITH MIAMI-DADE COUNTY ("COUNTY"), SUBJECT TO THE APPROVAL OF THE MIAMI CITY COMMISSION, TO ESTABLISH A MECHANISM PURSUANT TO WHICH THE CITY MAY RELEASE THE COUNTY FROM UP TO EIGHTY PERCENT (80%) OF THE COUNTY'S OBLIGATION TO THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ("U.S. HUD") UNDER THE SECTION 108 LOAN TO PARROT JUNGLE AND GARDENS OF WATSON ISLAND, INC.; FURTHER AUTHORIZING THE CITY'S PAYMENT TO THE COUNTY THE SUM OF $1,356,731, REPRESENTING EIGHTY PERCENT (80%) OF THE SECTION 108 LOAN PAYMENT DUE BY THE COUNTY TO U.S. HUD ON AUGUST 1, 2006; ALLOCATING FUNDS FROM GENERAL FUNDS. WHEREAS, pursuant to a Development Agreement dated April 20, 2000 ("Development Agreement"), between Miami -Dade County ("County"), Parrot Jungle and Gardens of Watson Island ("Parrot Jungle") and the City of Miami ("City"), the County made a Section 108 loan to Parrot Jungle, in the original principal amount of Twenty -Five Million Dollars ($25,000,000) to facilitate the financing of the development of the Parrot Jungle and Gardens of Watson Island Project ("Loan"); and WHEREAS, the Development Agreement and a Joint Participation Agreement ("JPA") between the City and the County dated September 9th, 1998 require the City to replace the County as the guarantor of 80% of the Loan, upon satisfaction of certain conditions set forth therein, including the conditions that the Loan must be current and no event of default is in existence and that the loan documents securing the Loan must be assigned to the City; and WHEREAS, the Loan is not current, certain conditions contained in the Development Agreement relating to Parrot Jungle's obligations have not been performed and the United Stated Department of Housing and Urban Development ("U.S. HUD") has not yet approved a mechanism to allow the City to replace the County as guarantor of 80% of the Loan; and WHEREAS, on July 18, 2006, the County adopted Resolution No. 916-06 authorizing a new loan to Parrot Jungle, in the amount of $4,701,782, to cover the amounts advanced by the County for Loan repayments through February, 2006, deferring Parrot Jungle's payments on the Loan until 2012, subject to the City's approval, and authorizing the County Manager to negotiate the City's assumption of eighty percent (80%) of the Loan.; and WHEREAS, on July 18, 2006, the County adopted Resolution No. 915-06, authorizing the County Manager to enter into negotiations with the City and the Omni and SEOPW CRAs (collectively, the CRAs"), concerning the terms set forth in the attachments to said resolution; and WHEREAS, the City wishes the County to consider certain additional terms relating to the CRAs; City of Miami Page 1 of 2 Printed On: 7/24/2006 File Number: 06-01332 and WHEREAS, the County has requested the City to contribute eighty percent .(80%) of the loan repayment amount due to U.S. HUD in August, 2006; WHEREAS, the City wishes to reach an agreement with the County regarding the repayment of the Loan and the CRAs; and WHEREAS, in a showing of good faith to negotiate the aforementioned agreement, the City wishes to contribute to the County the sum of $1,356,731, representing 80% of the Loan repayment amount due to HUD in August, 2006; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this Section. Section 2. The City Manager is authorized{1} to negotiate an agreement with the County to establish a mechanism pursuant to which the City may release the County from up to eighty percent (80%) of the County's obligation to HUD under the Section 108 loan to Parrot Jungle and Gardens of Watson Island, Inc. Section 3. The City is authorized{1} to pay to the County the sum of $1,356,731, representing 80% of the Loan repayment amount payable by the County to U.S. HUD in August, 2006, with funds allocated from General Funds. Section 4. This Resolution shall become effective immediately upon its adoption and signature of the Mayor and shall expire in the event an agreement is not reached and brought back to the City Commission for approval by , 2006.{2} APPROVED ' S T!, FJ; AND CORRECTNES -- „7/ JORGE L. F RNA CITY ATTO ' NEY Footnotes: {1 } The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney, including but not limited to those prescribed by applicable City Charter and Code provisions. {2} If the Mayor does not sign this Resolution, it shall become effective at the end of ten calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission. City of Miami Page 2 of 2 Printed On: 7/24/20045