04-06-04 Item 13CITY OF SOUTH MIAMI
INTER- OFFICE MEMORANDUM
To: Mayor and City Commission Date: April 6, 2004
From: Maria V. Davis AGENDA ITEM #
City Manager Re: Commission meeting Apr. 6, 2004
Repayment of $6.5 million
Parking garage loan.
RESOLUTION
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 AN
AMOUNT NOT EXCEEDING $265,500 FROM THE LOAN PROCEEDS
AS THE NEXT INSTALLMENT PAYMENT FOR THE $6.5 MILLION
PARKING GARAGE LOAN SCHEDULED FOR MAY 1, 2004;
PROVIDING AN EFFECTIVE DATE.
BACKGROUND
The attached resolution requests your authorization for the City Manager to pay the Florida
Municipal Loan Council, through Wachovia Bank, an amount not exceeding $265,500 as the
next payment scheduled for May 1, 2004 on the $6.5 million parking garage loan. Two years ago,
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 of the loan agreement, Mr. Richman makes payment to the
City twice a year as per the attached payment schedule.
Mr. Richman's next scheduled payment to the City is due to be received by April 1, 2004 in the
amount of $101,916.00. If this payment is received, it will be used to defray the next loan
repayment thereby reducing the amount needed from the loan proceeds.
RECOMMENDATION
Approval is recommended.
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RESOLUTION NO.
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 AN
AMOUNT NOT EXCEEDING $265,500 FROM THE LOAN PROCEEDS
AS THE NEXT INSTALLMENT PAYMENT FOR THE $6.5 MILLION
PARKING GARAGE LOAN SCHEDULED FOR MAY 1, • 2004;
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Commission approved Ordinance number 4 -02 -1772 on April 16,
2002 for the City to obtain a $6.5 million dollar — loan to construct a mixed use parking garage
and shopping center in the downtown business district; and
WHEREAS, the City used a portion of the loan proceeds to provide a loan to Mark
Richman properties with the agreement that Mr. Richman repays the City on a semi - annual basis,
as per agreed schedule, for a period of thirty years; and
WHEREAS, in addition to the payments received from Mr. Richman, the City has used a
total of $356,346.75 from the loan proceeds to make repayment of the loan to Florida Municipal
Loan Council through November 2003; and
WHEREAS, the next payment scheduled to be received from Mr. Richman in October is
$101,916 which will reduce the amount of the loan proceeds needed to make the next scheduled
payment due in May 2004.
NOW THEREFORE ' BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA THAT:
Section 1. The City Manager is authorized to pay an amount not exceeding $265,500
from the $6.5 million loan proceeds to Florida Municipal Loan Council as the next scheduled
payment for the parking garage loan.
Section 2. This resolution shall take effect immediately upon approval.
PASSED AND ADOPTED this day of April, 2004.
ATTEST:
CITY CLERK
APPROVED:
Resolution /Installment payment of Parking Garage Loan 4/6/04 mtg.
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READ AND APPROVED AS TO FORM
CITY ATTORNEY
Resolution /Installment payment of Parking Garage Loan 4/6/04 mtg.
COMMISSION VOTE:
Mayor Russell:
Vice Mayor Palmer:
Commissioner Wiscombe:
Commissioner Birts- Cooper:
Commissioner Sherar: