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Res. No. 042-03-11591RESOLUTION NO.42-03-11591 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI,FLORIDA RELATING TO LOAN REPAYMENT;AUTHORIZING THE CITY MANAGER TO USE 6.5 MILLION DOLLAR PARKING GARAGE LOAN PROCEEDS UP TO AN AMOUNT NOT EXCEEDING $267,112.50 AS NEXT PAYMENT FOR THE $6.5 MILLION PARKING GARAGE LOAN SCHEDULED FOR MAY 1,2003; PROVIDING AN EFFECTIVE DATE. WHEREAS,theCityCommissionapprovedordinance number 4-02-1772 on 16th of April 2002 for the City to obtain a $6.5 million dollar -loan to construct amixeduseparkinggarageandshoppingcenterinthedowntownbusinessdistrict; and WHEREAS,theCityusedaportion of theloanproceedtoprovidealoanto MarkRichmondpropertieswiththeagreementthatMr.RichmondrepaystheCity ona semi-annual basis,asperagreed schedule,foraperiod of thirtyyears;and WHEREAS,inadditiontothefirstpaymentreceivedfromMr.Richmond, theCityusedaportion of theloanproceedtomakethefirstpayment of $150,809.11 toFloridaMunicipalLoanCouncillastyearNovember;and WHEREAS,Mr.RichmondhasadvisedtheCitythathewillnotbemaking thepayment of $102,571.20totheCityatthenextscheduledduedate of April1, 2003;and WHEREAS,thenextpayment of theloantoFloridaMunicipalLoan Council inthe amount $267,112.50 isdueonthefirst of May,2003. NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI,FLORIDA THAT: Additions shownbyunderlininganddeletionsshownbyovorstriking. Page 2 of Res.No.42-03-11591 Section1.TheCityManagerisdirectedtopayan amount not exceeding 6.5 million dollar parking $267,112.50fromthe garage loan proceeds toFloridaMunicipalLoan Councilasthenext scheduled payment forthe$6.5million parking garageloan. Section2.Thisresolutionshalltakeeffectimmediatelyuponapproval. PASSED AND ADOPTED this18th day of March,2003. ATTEST:APPROVED: CITY CLERK (J READ AND APPROVED AS TO FORM; CITY ATTORNEY Page 2 of2 /(^o ^L L^ MAYOR COMMISSION VOTE: Mayor Feliu: Vice Mayor Russell: Commissioner Wiscombe: Commissioner Bethel: Commissioner McCrea: 5-0 Yea Yea Yea Yea Yea CITY OF SOUTH MIAMI INTER-OFFICE MEMORANDUM ******************************************************************** To:Mayor andCity Commission Date:March 13,2003 From:Sandy Youkilis Afa/AGENDA ITEM #_zf Acting City Manag^[/}Re:Commission meeting Mar.18,2003 Repayment of $6.5million Parking garageloan ******************************************************************* REQUEST A RESOLUTION OFTHE MAYOR ANDCITY COMMISSION OFTHE CITYOFSOUTHMIAMI,FLORIDA RELATING TO LOAN REPAYMENT;AUTHORIZING THECITYMANAGERTOUSE UP TO AN AMOUNT NOT EXCEEDING $267,112.50 AS NEXT PAYMENT FORTHE$6.5MILLION PARKING GARAGE LOAN SCHEDULED FOR MAY 1,2003;PROVIDING AN EFFECTIVE DATE. BACKGROUND The attached resolution is requesting your authorization for the City Manager to pay the Florida Municipal Loan Council through Wachovia Bank an amount not exceeding $267,112.50 as the next payment scheduled for May 1,2003 on the $6.5 million parking garage loan.Last year,the City Commission approved ordinance number 4-02-1772 for the City to obtain a loan to construct a mixed-use parking garage retail facility in the downtown area.Upon receipt of the loan,the City gave a $2.4 million loan to Mark Richman Properties,to be repaid over a thirty year period.According to the terms ofthe loan agreement,Mr.Richman was supposed to pay the City twice a year as per the attached payment schedule. Mr.Richman next scheduled payment to the City was supposed tobe $102,571.20 in April 1, 2003 to defray our next loan payment.However,Mr.Richman has advised us that he is going to default his next payment,leaving the City to find alternatives to pay the total bill.At this time, we have two sources thatwecantapintoforthe next repayment.They areas follows: a)Use of Cityreserve b)Use of theloanproceed. Ifwe decide tousetheCity reserve,we will be reducing its current balance of $1,200,000 by any amount that we pay on the loan.We will also need to amend the attached resolution to give the City Administration authorization to appropriate the amount needed.On the other hand,if the loan proceed is used,the unused balance of the loan will reduce by the amount withdrawn, thereby leavinglesseramountoftheloanfor future use. RECOMMENDATION Approvalis recommended. Attachments SAY/FIN FLORIDA MUNICIPAL LOAN COUNCIL LOAN AMOUNT:6.5MILLION PURPOSE:73rd ST PARKING GARAGE PROJECT SOURCES:None PAYMENT DATE AMOUNT PAID WITHDRAWALS AMOUNT MRP PAYMENTS TOTALS 1 Oct-02 150,809.11 1 2,464,354.52 62,251.10 2 128,734.90 3 46,227.26 4 17,418.18 5 100,934.54 6 5,618.00 7 43,130.80 1 150,809.11 7 2,806,418.20 62,251.10 USE OF PROCEEDS 73rd ST PARKING GARAGE PROJECT: VENDOR AMOUNT DESCRIPTION Mc Ardle,Perez &Escoto,PA 2,464,354.52 Loan to Mark Richmond Properties Nagin,Gallop,Figueredo 73,389.62 Legal Fees Arquitectonica International 172,893.67 Design,Construction &Consulting Services Miami Dade Water &Sewer 200.00 Utility Fee Agreement Delta Surveyors 3,200.00 Parking Lot Survey Wingerter Laboratories 3,148.88 Soil Tests Florida Real Estate Decisions 331.00 Mailing Labels &List First Union National Bank 88,558.01 Bond Proceeds-(Part of 1st Payment) Miami Dade Fire Dept.342.50 Flow Test Permit &Plans Review 73rd ST PARKING GARAGE PRJ.TOTAL 2,806,418.20 EXHIBIT D $6,500,000 FloridaMunicipalLoan Council,Series2002A South Miami NET DEBT SERVICE SCHEDULE Date Principal Coupon Interest Total P+I 11/01/2002 -.162,112.50 162,112JO 5/01/2003 105,000.00 3250%162,112.50 267,112J0 11/01/2003 --160,40625 160,40625 5/01/2004 105,000.00 3.750%160,40625 265,40625 11/01/2004 --158,437JO 158.437J0 5/01/2005 110,000.00 5.000%158,437.50 268,437JO 11/01/2005 --155,687JO 155,687JO 5/01/2006 115,000.00 5.000%155,687JO 270,687JO 11/01/2006 --152,812.50 152,812JO 5/01/2007 120,000.00 4.000%152,812.50 272.812J0 11/01/2007 --150,412.50 150,412.50 5/01/2008 125,000.00 4.000%150,412JO 275,412.50 11/01/2008 --147.912J0 147,912JO 5/01/2009 130,000.00 4.000%147,912.50 277,912.50 11/01/2009 --145,312.50 145,312.50 5/01/2010 135,000.00 4.000%145,312.50 280,312JO 11/01/2010 --142,612JO 142.612J0 5/01/2011 140,000.00 4.125%142,612-50 282,612.50 11/01/2011 --139,725.00 139,725.00 5/01/2012 150,000.00 5.000%139,725.00 289,725.00 11/01/2012 -♦135,975.00 135,975.00 5/01/2013 155,000.00 5.500%135,975.00 290,975.00 11/01/2013 --131,712JO •131.712J0 5/01/2014 165,000.00 5.500%131J12J0 296.712J0 11/01/2014 --127,175.00 127,175.00 5/01/2015 175,000.00 5.500%127,175.00 302,175.00 11/01/2015 --122^62.50 122,3 62JO 5/01/2016 180,000.00 5.500%122,362.50 302.362J0 11/01/2016 --117,412JO 117.412J0 5/01/2017 190,000.00 5.500%117,412JO 307,412.50 11/01/2017 --112,187JO 112,187JO 5/01/2018 200,000.00 5.500%112,187JO 312,187JO 11/01/2018 --106,687JO 106,687JO 5/01/2019 215,000.00 5.500%.106,687 JO 321,687JO 11/01/2019 -•100,775.00 100,775.00 5/01/2020 225,000.00 5.000%100,775.00 325,775.00 11/01/2020 --95,150.00 95,150.00 5/01/2021 235,000.00 5.000%95,150.00 330,150.00 11/01/2021 --89275.00 89275.00 5/01/2022 250,000.00 5.000%89,275.00 339275.00 11/01/2022 -•-83,025.00 83,025.00 5/01/2023 260,000.00 5.000%83,025.00 343,025.00 11/01/2023 --76,525.00 76,525.00 5/01/2024 275,000.00 5.000%76J25.00 351,525.00 11/01/2024 --'69,650.00 69,650.00 5/01/2025 285,000.00 5.000%69,650.00 354,650.00 11/01/2025 --62J25.00 62,525.00 5/01/2026 300,000.00 5.000%62,525.00 362,525.00 11/01/2026 --55,025.00 55,025.00 5/01/2027 315,000.00 5.000%55,025.00 370,025.00 11/01/2027 --47,150.00 47,150.00 5/01/2028 335,000.00 5.125%47,150.00 382,150.00 11/01/2028 -38,565.63 38J65.63 5/01/2029 350,000.00 5.125%38J65.63 388,565.63 11/01/2029 --29,596.88 29,596.88 5/01/2030 365,000.00 5.125%29,596.88 394,596.88 11/01/2030 --20243.75 20243.75 5/01/2031 385,000.00 5.125%20243.75 405243.75 11/01/2031 --10,378.13 10378.13 5/01/2032 405,000.00 5.125%10,378.13 415,378.13 *Payment dates of April20andOctober20 are thedue dates fortheBorrowerBasic Payments. Date 10/01/2002 04/01/2003 10/01/2003 04/01/2004 10/01/2004 04/01/2005 10/01/2005 04/01/2006 10/01/2006 04/01/2007 10/01/2007 04/01/2008 10/01/2008 04/01/2009 10/01/2009 04/01/2010 10/01/2010 04/01/2011 10/01/2011 04/01/2012 10/01/2012 04/01/2013 10/01/2013 04/01/2014 10/01/2014 04/01/2015 10/01/2015 04/01/2016 10/01/2016 04/01/2017 10/01/2017 04/01/2018 10/01/2018 04/01/2019 10/01/2019 04/01/2020 10/01/2020 EXHIBITA MRP PROPERTIES PAYMENT SCHEDULE Payment $62,251.10 ~- $102,571.20- $61,596.00 $101,916.00 $60,840.00 '$103,080.00 $59,784.00 $103,944.00 . $58,680.00 $104,760.00 $57,758.40 $105,758.40 $56,798.40 $106,718.40 $55,800.00 $107,640.00 $54,763.20 $108,523.20 $53,654.40 $111,254.40 $52,214.40 $111,734.40 $50,577.60 $113,937.60 $48,835.20 $116,035.20 $46,987.20 $116,107.20 $45,086.40 $118,046.40 $43,080.00 $119,880.00 $40,968.00 $123,528.00 $38,697.00 $125,097.60 $36,537.60 S* 15 04/01/2021 $126,777.60 10/01/2021 $34,454.40 04/01/2022 $130,281.60 10/01/2022 $31,881.60 04/01/2023 $131,721.60 10/01/2023 $29,385.60 04/01/2024 $134,985.60 10/01/2024 $26,745.60 04/01/2025 $136,185.60 10/01/2025 $24,009.60 04/01/2026 $139,209.60 10/01/2026 $21,129.60 04/01/2027 $142,089.60 10/01/2027 $18,105.60 04/01/2028 $146,745.60 10/01/2028 $14,809.20 04/01/2029 $149,209.20 10/01/2029 $11,365.20 04/01/2030 $151,525.20 10/01/2030 $7,773.60 04/01/2031 $155,613.60 10/01/2031 $3,985.20 04/01/2032 $159,505.20 16