96-22077 RESO
RESOLUTION NO. 96-22077
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA APPROVING
A LOAN TO THE WOLFSONIAN FOUNDATION, INC., IN
THE AMOUNT OF $500,000.00 FOR A TERM OF SIX (6)
MONTHS AND SECURED BY A FIRST MORTGAGE ON
THE MIAMI BEACH WOMAN'S CLUB PROPERTY
LOCATED AT 2401 PINE TREE DRIVE, MIAMI BEACH,
FLORIDA, APPROPRIATING FUNDS FOR SAID LOAN
FROM BOND FUND NO. 351, AUTHORIZING A WORK
ORDER FOR SAID APPROPRIATION FROM BOND FUND
NO. 351, AND AUTHORIZING THE CITY ATTORNEY'S
OFFICE AND ADMINISTRATION TO PREP ARE ANY AND
ALL NECESSARY DOCUMENTS FOR EXECUTION BY THE
MAYOR AND CITY CLERK TO MEMORIALIZE AND
FACILITATE THE LOAN.
WHEREAS, the Wolfsonian Foundation, Inc. is the owner and operator of the W'olfsonian
Museum (the "Museum") at 1001 Washington Avenue, Miami Beach, Florida; and
WHEREAS, due to circumstances beyond its control, the Museum has experienced
significant financial needs that it has been unable to meet; and
WHEREAS, the Museum has recently implemented an austerity plan, including the
reduction of staff and other expenses, but continues to lack the cash necessary to remain Jpen in the
upcoming months; and
WHEREAS, the Wolfsonian Foundation, Inc, its Board of Trustees, Executive Committee,
members, and staff are requesting a loan from the City of Miami Beach, in the amount of
$500,000.00, in order to avoid having to close the Museum this summer; and
WHEREAS, the Museum is a significant cultural institution and is a valuable asset to the
City of Miami Beach and its continued operation is important to the City's welfare and its efforts to
attract tourists and visitors; and
WHEREAS, the requested loan will permit the Museum to remain open while the City's loan
will be secured through a first mortgage on The Miami Beach Women's Club property located at
2401 Pine Tree Drive, Miami Beach, Florida which was appraised in February, 1995 at $~ 60,000.00;
and
WHEREAS, funds for the loan to the Museum are available from Bond Fund No. 351.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA as follows:
1. A loan to the Wolfsonian Foundation, Inc. in the amount of $500,000.00 for a term
of six (6) months and secured by a first mortgage on The Miami Beach Women's Club property
located at 2401 Pine Tree Drive, Miami Beach, Florida, is hereby approved;
2. Funds for said loan are hereby appropriated in the amount of $500,000.00 from Bond
Fund No. 351;
3. A work orfjer is hereby authorized for said appropriation from Bond Fund No. 351;
and
4. The City Attorney's Office and Administration are authorized to prepare any and all
necessary documents for execution by the Mayor and City Clerk to memorialize and facilitate the
loan.
PASSED and ADOPTED THIS
day of
1996.
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ATTEST:
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CITY CLERK
FORM P,PPROVED
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CITY OF
MIAMI BEACH
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CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
COMMISSION MEMORANDUM NO. ~ 03- q ~
TO:
Mayor Seymour Gelber and
Members of the City Commission
DATE:
Jdy 3, 1996
SUBJECT:
Jose Garcia_pedrot!a
City Manager
RESOLUTION PROVING LOAN TO THE WOLFSONIAN
FOUNDATION, INC. IN THE AMOUNT OF $500,000,
SECURED BY A FIRST MORTGAGE ON THE MIAMI
BEACH WOMAN'S CLUB PROPERTY LOCATED AT 2401
PINE TREE DRIVE, MIAMI BEACH, FL
FROM:
RECOMMENDATION:
Approve the Resolution.
BACKGROUND:
The Wolfsonian Foundation, Inc. is the owner and operator of the Wolfsonian Museum at 1001
Washington A venue, Miami Beach, Florida. Due to circumstances beyond their clmtrol, the
Museum has experienced significant financial needs that it has been unable to meet. (St: e attached
one-page forecast of 1996 cash needs, showing the cash-flow short-fall being experienced.) An
austerity plan, recently implemented, included the reduction of staff and other expens ~s, but the
institution lacks the cash to remain open in the next few months. The Wolfsonian, it:; Board of
Trustees, Executive Committee, members, and staff are requesting a loan in the amount of $500,000
to avoid having to close the door of the museum this summer.
The Wolfsonian is a significant cultural institution that is a valuable asset to this community. Its
continued operation is important to the City's welfare and to our efforts to continue to attr,lct tourists
and visitors.
The requested loan will permit the Wolfsonian to remain open, while the City's money will be well
secured through a first mortgage on a piece of property, the Woman's Club, which was appraised last
February at $860,000.
CONCLUSION:
The secured loan to the Wolfsonian is in the City's best interest and should therefore be approved.
JGP:pp
f:cmgr/$all/comm-mem. 96/wolfsonian. 703
DATE
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AGENDA ITEM