02-01-05 Item 4CITY OF SOUTH MIAMI
INTER - OFFICE MEMORANDUM
To: Mayor and City Commission Date: February 1, 2005
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From: Maria V. Davis AGENDA ITEM #
City Manager Re: Commission meeting February 1, 2005
Negotiation of loan on the
Van Smith Property (Hammock House)
RESOLUTION
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH
MIAMI, FLORIDA RELATING TO ACQUISITION OF THE "HAMMOCK HOUSE ";
AUTHORIZING THE CITY MANAGER TO NEGOTIATE A LOAN IN THE AMOUNT
USED TO ACQUIRE THE PROPERTY AND REIMBURSING VARIOUS BUDGET
ACCOUNTS WITH THE AMOUNT TRANSFERRED FROM THEM FOR THE
TRANSACTION.
BACKGROUND
On December 7, 2004, the City Commission approved resolution number 190 -04 -11969 to
authorize purchase of the property known as the "Hammocks House ". In order to expedite
closing of the purchase before the end of the year for tax purposes, funds for the transaction were
temporarily transferred from various budget accounts pending negotiation of a loan by the
Finance Director after returning from vacation.
The attached resolution is requesting your authorization to negotiate a loan in the amount of
$567,366.50 plus loan transaction fees with any qualified lending institution that offers the best
rate, to reimburse various budget accounts used to pay for the acquisition.
At the conclusion of the loan negotiation, I will forward the full loan documents for your review
and approval to complete the transaction.
RECOMMENDATION
Approval is recommended.
RESOLUTION NO.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF SOUTH MIAMI, FLORIDA RELATING TO ACQUISITION OF THE
"HAMMOCK HOUSE "; AUTHORIZING THE CITY MANAGER TO
NEGOTIATE A LOAN IN THE AMOUNT USED TO ACQUIRE THE
PROPERTY AND REIMBURSING VARIOUS BUDGET ACCOUNTS WITH
THE AMOUNT TRANSFERRED FROM THEM FOR THE TRANSACTION.
WHEREAS, the City Commission approved resolution number 190 -04 -11969 on December 7,
2004 to authorize the purchase of remainder of the property known as the "Hammock House "; and
WHEREAS, payment for acquisition of this property was made out of various budget accounts
in order to expedite the closing for tax purposes before the end of the year; and
WHEREAS, the City Administration wishes to negotiate a loan to replenish the various budget
accounts with the amount of $567,366.50 used to close the transaction.
NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF SOUTH MIAMI, FLORIDA THAT:
Section 1. The above whereas clauses are incorporated by reference.
Section 2. The City Manager is authorized to negotiate a loan with any lending institution
that offers the best rate in the amount of $567,366.50 plus related loan charges to replenish the city's
budget accounts and pay for the loan transaction fees associated with the purchase of the "Hammock
House."
Section 3. The City Manager is to negotiate a loan with a lending institution and shall bring
the loan documents by to the City Commission for final authorization and approval.
Section 4. This resolution shall take effect immediately upon approval.
PASSED AND ADOPTED this day of February, 2005.
ATTEST:
CITY CLERK
COMMISSION VOTE:
READ AND APPROVED AS TO FORM
CITY ATTORNEY
APPROVED:
MAYOR
Mayor Russell:
Vice Mayor Palmer:
Commissioner Wiscombe:
Commissioner Birts- Cooper:
Commissioner Sherar: