RESOLUTION 84-17774 RESOLUTION NO. 84- 17774
A RESOLUTION OF THE CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AUTHORIZING AN AMEND-
MENT TO AND EXTENSION OF A PROMISSORY NOTE IN
THE ORIGINAL PRINCIPAL AMOUNT OF $3,000, 000
DATED MAY 6, 1974, AS AUTHORIZED PURSUANT TO
RESOLUTION NO. 74-14312 WHICH WAS AMENDED BY
RESOLUTION NO. 74-14328, WHICH WAS LATER AMENDED
BY RESOLUTION NO. 74-14348; PROVIDING FOR THE
PAYMENT OF THE REMAINING BALANCE OF SAID
PROMISSORY NOTE; AMENDING THE RATE OF INTEREST
PAID ON SAID PROMISSORY NOTE; AUTHORIZING THE
MAYOR TO EXECUTE AN AMENDMENT AGREEMENT WITH
RESPECT TO THE FOREGOING; AUTHORIZING OTHER
RELATED ACTION AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Miami Beach, Florida ( the "City" )
prior to 1974 instituted condemnation proceedings in the United
States District Court, in and for the Southern District of
Florida, against certain land involved in said proceedings,
entitled City of Miami Beach vs . Charles P. Landt, etc. , et al . ,
being Case No. 73-926-Civ-JLK; and
WHEREAS, the jury impanelled to try the issue, found and
returned a verdict of Five Million Two Hundred Sixteen Thousand
Dollars ( $5 , 216, 000 ) ; and
WHEREAS, judgment was duly entered for said amount
against the City, and the owners of said parcel of land were
entitled to a further judgment representing attorneys ' fees and
other court costs and charges; and
WHEREAS, the City Attorney, Special Counsel John
Farrell, Mr . S. Z . Bennett, the City' s Real Estate Consultant,
and the City Manager , at that time recommended that said verdict
and judgment be accepted as final and that no appeal was taken
therefrom; and
WHEREAS, it was determined that the best interests of
the City required the acceptance of said recommendation; and
WHEREAS, the City had set aside funds for the purpose of
acquiring the subject property, but the funds so provided were
insufficient to satisfy and discharge said judgment , and it was
necessary, in order to satisfy and discharge said judgment, and
the lien created thereby, to borrow funds for said purpose, and
WHEREAS, the Miami Beach First National Bank (now
Flagship National Bank of Miami ) made the offer most advantageous
to the City to make such loan, secured by a lien upon the land
which was the subject matter of said condemnation suit; and
WHEREAS, the Miami Beach First National Bank agreed that
the interest rate on said loan would be reduced in the event that
the City agreed that a mortgage on an additional parcel of land
known as Tract "B" , Indian Beach Corporation Subdivision, was
given as further security for said loan; and
WHEREAS, the City Council of the City deemed it to be in
the best interest of the City to obtain such loan from said Miami
Beach First National Bank in the sum of Three Million Dollars
($3,000,000 ) for a term of ten years, at a rate of interest of 5-
1/4 percent per annum, said loan to be made on the basis of a 20-
year amortization factor , with the annual payments during the
term of said loan of approximately Two Hundred Forty-Three
Thousand Dollars ($243,000) with the tenth annual payment being
One Million Eight Hundred Eighty-Four Thousand Dollars
($1,884,000) , said loan and mortgage to be payable in whole or in
part at any time before maturity without penalty, and adopted
Resolution No. 74-14312, on March 20, 1974, authorizing execution
of a certain promissory note ( the "Note" ) and mortgage secured by
a first mortgage lien on the property acquired in the aforesaid
condemnation proceedings and a second mortgage lien upon Tract
"}r, Indian Beach Corporation Subdivision (which aforementioned
first and second mortgage liens are hereinafter referred to as
the "Mortgage" ) ; and
WHEREAS, on April 3, 1974, the City Council of the City
adopted Resolution No.74-14328 providing that as and for further
security the City covenanted and agreed to pledge its revenues
from other than ad valorem taxes and to set up and appropriate in
its annual budget and appropriation resolution for expenditure in
each year of the period during which said obligation would be
outstanding and unpaid, amounts from such non-ad valorem tax
revenues sufficient to make the payments called for by said Note
as the same became due and payable and further covenanted and
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agreed that its Finance Director would be authorized and directed
annually to segregate sufficient funds from the City' s said non-
ad valorem tax revenues and to pay from such segregated funds all
payments called for by the Note as the same became due and
payable; and
WHEREAS, the City Council of the City on April 17, 1974
adopted Resolution No. 74-14348 amending Resolution No.74-14328
in order to amend the payment provisions of the Note; and
WHEREAS, the remaining balance of $1,883, 410. 41 became
due and payable on June 6, 1984; and
WHEREAS, Flagship National Bank of Miami , the present
holder of the Note, has agreed to an amendment and extension of
the indebtedness evidenced by the Note, and the City has
determined that it is in the best interests of the City and its
inhabitants and taxpayers that the Note be amended and extended.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA:
SECTION 1. The amendment and extension of the Note, for
a term not to exceed five ( 5) years and at a rate not to exceed
seventy per cent ( 70%) of the prime rate, from time to time, of
Sun Bank of Miami , and upon such other terms and conditions as
may be satisfactory to the City Manager and the City Attorney, is
hereby authorized, and the Mayor, or in his absence, the Vice-
Mayor, is authorized and directed to execute documentation
evidencing such amendment and extension.
SECTION 2 . The Mayor and all officials and officers of
the City are hereby directed to take any and all action and
execute any and all documents necessary to effectuate the purpose
of this resolution.
SECTION 3 . This resolution shall be effective
immediately upon its adoption.
PASSED and ADOPTED this 20th day of June, 1984.
ve-
-----mss..
M yor
Attest: •
fORMAPPRQ'JED
\ .
City Clerk
LEGAL DEPT
_3_ _1;241 8'474
We.
ORIGINAL
RESOLUTION NO. 84-17774
(Authorizing an amendment to an extension
of a promissary note in the original prini-
cipal amount of $3,000,000 dated May 6
1974, as authorized pursuant to Resolution
no. 74-14312 which was amended by Res. #
74-14328, which was later amended by Res. #
74-14348; providing for the promissory
note; amending the rate of interest paid
on said promisory note; authorizing with
respect to execute an amendment agreement
with respect to the foregoing; authorizing
other related action and providing an
effective date)