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HomeMy WebLinkAboutSubmittal-Overview of Jungle IslandOVERVIEW OF JUNGLE ISLAN SUBMITTED INTO ThE PUBLIC RECORD FOR FTEM ON December 8th, 2011 Status Summary O The City is responsible as a guarantor for 80% of HUD Section 108 loan for Parrot Jungle in the amount of $25 million. (County responsible for 20° ® Current principal balance of the loan is $15 560,000 with City's participation at S 12,448,000 ® The County & City's interest are subordinated to th interest of a private lender. O Currently Parrot Jungle is not in default of any obligation to the City, but is responsible for refinancing settlement costs ri City Clerk Synopsis of Development Effor 11/07/95 09/26/96 09/09/98 The relocation and the expansion of Parrot Jungle was approved by voters of the City of Miami ("City") throug referendum. Through Resolution 96-671, the City formally approved a Lease and Development Agreement with Parrot Jungle for the relocation and expansion of the Parrot Jungle Project. The Joint Participation. Agreement between Miami -Dade County ("County") and the City for the Section 108 Lo Guarantee Application was executed, whereby agrees to assume 80% of the loan. Lease Agreement Synopsis Lease Agreement Executed: September 2, 1997 Possession Date: October 1, 2000 Grand Opening of Jungle Island: June 28, 2003 Lease Agreement Term: 45 years (September 30, 2045 end date) Options to Renew: One, 15-year Option Rent Structure: Greater of the Minimum Annual Rent or Percentage Ren Minimum Annual Rent: (i) $200,000 for Lease Years 1 and 2 & $300,000 for Lease Years 3 and 4 $400,000 for each and every Lease Year (iii) Rent Escalation: On the first day of the 10th lease year and every 10 year thereafter, the Minimum Rent shall increase by greater of: CPI (with 30% cap $100,000. Rent during option period is adjusted based upon appraisal. Percentage Rent: 5% of Gross Revenue up to 6% of Gross Revenue • Lease Rent Deferral Rent Deferral: 4th Lease Amendment - deferred rent effective Apri 2009 through March 31, 2013 Rent Deferral Structure: $400,000 per annum deferred for an aggregate of $1,900,00 payable on December 31, 2020 Parrot Jungle is still responsible for paying all state fees (State of Florida Trustees of the Internal Improvement Fund If Parrot Jungle pays its HUD loan in full on or before August 1, 2020, then the deferred rent minus S800,000 shall convert to a permanent abatement with the S800,000 to be paid by December 31, 2020 HUD Section 108 Commitments 11/24/03 07/10/07 07/28/07 The City and County jointly executed a letter to US for consideration to approve the substitution of the Ci guarantor for 80% loan guarantee for the Parrot Jungle Section 108 loan. The City Commission authorized the Manager to execute agreements providing for the City's assumption of 80% o the County's liability to HUD under the Section 108 loan Parrot Jungle. The City and the County execute the Participation Agreement and the Amended Pledge Agreement and forward to US HUD for their execution. Agreement includes a deferral of Parrot Jungle's obligation to pay HUD loan until 2/1/2012. Amount paid by City on behalf of Parrot Jun* * . . ... . . . CityC Public -Sector Debts Development Agreement Amendment: $17,277,403 (8O% City/20% Cou. -Due in monthly installments between Jan. 2020 to Jan 2030) HUD Loan (Refinanced): s$15, 560, 000 (CDBG Backed: City 80%, County -Jungle Island obligated to make first payment August 2012 ($1.5iii+/-) City -granted Rent Deferral (April 2009 to March 2013) : $ 1,900,000 (+/ -Deferred to December 2020 Note Payable to the City (Property Tax): $ 366,658 (Remaining Balance -Due in monthly installments between September 2009 to August 2013) Other Debts to County Parrot Jungle HUD Loan Payment Obligations_. Alternating "Interest" (February) and "Interest+Principle" (August payments continue through August 2019.