09-21-04 Item 12CITY OF SOUTH MIAMI
Q INTER- OFFICE MEMORANDUM
To: Mayor and City Commission Date: September 21, 2004
From: Maria V. Davis 21e AGENDA ITEM #_/1W
City Manager Re: Commission meeting Sept. 21, 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 TO EXCEED $159,500 FROM THE LOAN PROCEEDS
AS NEXT PAYMENT FOR THE $6.5 MILLION PARKING GARAGE
LOAN SCHEDULED FOR NOVEMBER 1, 2004; 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 $159,500 as the next
payment scheduled for November 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 October 1, 2004 in
the amount of $60,840.00. 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 TO EXCEED $159,500 FROM THE
LOAN PROCEEDS AS NEXT PAYMENT FOR THE $6.5
MILLION PARKING GARAGE LOAN SCHEDULED FOR
NOVEMBER 1, 2004; PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Commission approved ordinance number 4-02-1772 on 16th
of April 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 proceed 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 $522,979.87 from the loan proceed to make repayment of the loan to
Florida Municipal Loan Council through April 2004; and
WHEREAS, the next payment scheduled to be received from Mr. Richman on
October 1, 2004 is $60,840.00 which will reduce the amount of the loan proceed needed
to make the next scheduled payment due in November 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
$159,500 from the $6.5 million loan proceed 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 September, 2004.
ATTEST:
CITY CLERK
READ AND APPROVED AS TO FORM:
CITY ATTORNEY
APPROVED:
MAYOR
COMMISSION VOTE:
Mayor Russell:
Vice Mayor Palmer:
Commissioner Wiscombe:
Commissioner Birts - Cooper:
Commissioner Sherar:
SUMMARY OF PARKING GARAGE LOAN
TRANSACTIONS TO DATE
LOAN AMOUNT
6,500, 000. 00
AMOUNT WITHDRAWN FOR DIRECT
TRANSACTIONS
(3,403,298.76)
INTEREST & PREMIUM EARNED
254,704.27
COST OF ISSUANCE
(124, 721.80)
DEPOSIT FOR INTEREST PAYMENT
641,313.91
DEPOSIT FOR PRINCIPAL PAYMENT
210,000.00
LOAN PRINCIPAL PAYMENT
(210, 000.00)
LOAN INTEREST PAYMENT
(657, 829.68)
CURRENT AVAILABLE BALANCE 6104
3,210,167.94