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HomeMy WebLinkAboutLetter2LAW OFFICES OF STEVEN MISHAN, P.A. Steven Mishan, Esq Steven@mishanlaw.com January 30, 2008 848 BRICKELL AVENUE SUITE 1100 MIAMI, FLORIDA 33131 TELEPHONE 305-577-5999 FACSIMILE 305-374-5356 TOLL FREE (877) 577-5999 CERTIFIED MAIL RETURNED RECEIPT REQUESTED Model Housing Cooperative, Inc. 782 N.W. LeJeune Rd. Suite 3 Miami, FL 33126 Attn: Mr. Robert Godoy Re: Model Housing Cooperative, Inc. Gentlemen: Silver, Garvett & Henkel, P.A. Of Counsel c®pY This office represents SunTrust Bank with regard to its $3,000,000.00 secured mortgage loan consisting of a first mortgage on the condominium project located at 1475-1479 West Flagler Street, Miami, Florida 33125. The project is long overdue and the forbearance agreement dates have expired. There have been several meetings to discuss the state of the project and when SunTrust Bank could expect to the see the project completed and closings begin to take place. At the last meeting, Maria Rodriguez -Porto of the Dade County advised that she was going to authorize disbursements to pay the interest expense at SunTrust Bank which had been delinquent for December,2007 and January, 2008. While those disbursements did in fact take place, the funds were insufficient to pay the late fees which had arisen and therefore the loan remains in a delinquent position. Ms. Porto also advised that her funds had been exhausted and that no further interest reserve or expense will be paid by Miami Dade County. The February 1, 2008 interest payment is due on Friday of this week and there are no funds available to pay for interest or necessary change orders to comply with city and/or county code requirements. We are aware that this matter will be coming before the City of Miami Committee on February 22, 2008 and possibly there may be authorized sufficient funds to pay for the interest charges as well as funding the change orders to complete the project. Nevertheless, even with these possible disbursements by the City of Miami the project has not received a TCO and a completion date is nowhere in sight. SunTrust Bank has cooperated and extended its loan as far as possible. In order to avoid a formal declaration of default, SunTrust Bank requires that the following take place during February 2008; 1. The City of Miami must approve the new funding at their February 22, 2008 meeting to include funds to complete the project and carry SunTrust interest for the months of February, March and April 2008 and that the February interest and accrued late fees be funded immediately after the meeting. 2. The developer and his contractor must obtain a TCO during February 2008 and in particular in or about February 22, 2008. 3. The developer must submit fully approved buyers ready to close in such a number that SunTrust judges sufficient to schedule closings by a reasonable date certain; the buyers must be approved by the City of Miami as required for closings and loan commitments must be submitted to SunTrust Bank evidencing that these approved buyers are ready and able to close. 4. The developer must pay for the general liability premium from January 26, 2008 to January 26, 2009 in the sum of $2901.84. SunTrust fully hopes that the developer will accomplish these items with the assistance of the city and the county within the dates indicated. In the event that these matters are not accomplished, SunTrust Bank will regrettably transmit a formal notice of default before the end of February, 2008. ly, en Mishan cc: SunTrust Bank Mark Vasani Miami Dade County, 111 NW First Street, Miami, FL 33128 Attention: Cynthia Brannen CERTIFIED MAIL RETURNED RECEIPT REQUESTED Maria Rodriguez -Porto Miami Dade County, 111 NW First Street, Miami, FL 33128 CERTIFIED MAIL RETURNED RECEIPT REQUESTED Attention: George Mensa, Project Director City of Miami, 444 SW Second Avenue, Miami, FL 33130 CERTIFIED MAIL RETURNED RECEIPT REQUESTED