Resolution 94-21084 sr-
RESOLUTION NUMBER .94-21084
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA,
AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE A RELEASE AND SATISFACTION OF SUBSIDY
AGREEMENT, IN SATISFACTION OF ALL TERMS AND
CONDITIONS OF THE SUBSIDY AGREEMENT, DATED
DECEMBER 10, 1990, FOR THE PINEAPPLE
APARTMENTS LOCATED AT 653 MICHIGAN AVENUE.
•
WHEREAS, on December 10, 1990 the City of Miami Beach entered
into a Subsidy Agreement with Morada Ventures, 'Inc. , and with
Citizens and Southern National Bank of Florida (Agreement) ; and
WHEREAS, the Agreement provided that the City would deposit
certain funds to make available an interest subsidy to encourage
the rehabilitation of the property, known as the Pineapple
Apartments, located at 653 Michigan Avenue, in return for which
assistance the owner agreed to offer certain of the units at
reduced rental rates for a period of years to make available
affordable housing; and
WHEREAS, Morada Ventures, Inc. and. Citizens and Southern
National Bank of Florida have complied in all material respects
with the terms and conditions of the Agreement, and the required
term of years for reduced rental rates has now elapsed; and
WHEREAS, the Administration requests that the attached Release
and Satisfaction of Loan Agreement be executed by the Mayor and
City Clerk.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and
City Commission hereby authorize the Mayor and City Clerk to
execute the attached Release and Satisfaction of Loan Agreement.
PASSED AND ADOPTED THIS 16th D, March , , 1994.
4111111111111111,
MAYOR
ATTEST:
F?„evv—,
CITY CLERK
FORM APP''O "ED •
LEG D riT.
BY
• Date 3 L/ "
\RESO\PINEAPPL RES
•
•
This instrument prepared by:
Lawrence Feingold, City Atty.
1700 Convention Center Dr.
Miami Beach, FL 33139
RELEASE AND SATISFACTION OF SUBSIDY AGREEMENT
The CITY OF MIAMI BEACH releases MORADA VENTURES, INC. and CITIZENS AND SOUTHERN
NATIONAL BANK,their successors and assigns from any and all obligations under the terms of that certain
agreement captioned: "Subsidy Agreement", dated the 10th day of December, 1990, and recorded on
December 21, 1990 In the Official Records of Dade County at O.R. 14830, Page 2628, which instrument
affects the following described real property:
Lots 15, Block 85, Ocean Beach Addition No. 3, according to the Plat thereof as recorded in
Plat Book 2, Page 81 of the Public Records of Dade County, Florida, also described as the
"Pineapple Apartments".
And satisfies any and all obligations under the terms of such instrument and does hereby direct the Clerk
of the Circuit Court, Dade County, Florida to cancel such instrument of record.
IN WITNESS WHEREOF, this Instrument has been execute. : is 3f day of March, '94.
CITY OF MI' /
By: Ail?
Seymour Gelb" ayor
1700 Convention Center Drive
Miami Beach, FL 33139
ATTEST:
(---EV.....,‘ ,........ik L ..T.S..„,_fv,,....._
RICHARD BROWN, CITY CLERK
STATE OF FLORIDA)
SS)
COUNTY OF DADE)
I hereby certify that on this day before me, an officer duly qualified to take acknowledgements
personally appeared SEYMOUR GELBER, as Mayor of the City of Miami Beach. Who is personally known
to me, and did/did not take an oath.
Witness my hand and official seal thisVi-}day of March, 1994.
—a �` a .i:j
NOTARY PUBLIC, State of Florid a -
Commission Ng
My Commission Expires: -= •
NOTARY PUBLIC,STATE OF FLOE/IDA.
MI COIs_'MXS ION EXPIRES:Feb.3,1995..
FORM APP 'r w E U BONIZEOB TE U NOTARY PUBLIC UND&8WIIUT5.
LEG ' ' .
Date
\RESO\PINEAPPLREL
, • ' •
1990 DEC ''' P1112: 59 9 OR 4 6 I " 19 •
are. 148304�2628 l� I j?9
REC.
SUBSIDY AGREEMENT
THIS AGREEMENT entered into this f1 day of December 1990, by and between The Citizens
and Southern National Bank of Florida, with its principal office at One Financial Plaza, Ft. Lauderdale,
Florida, hereinafter referred to as "Lender', and Morada Ventures, Inc., a Florida Corporation, whose
address is 1414 Collins Avenue, Suite 1, Miami Beach, Florida, hereinafter referred to as "Owner" who as
the legal owner of the property at 653 Michigan Avenue,Miami Beach,Florida,more particularly described
as the Pineapple Apartments, Lot 15, Block 85 of Ocean Beach Addition N°3, according to the Plat thereof
as recorded in plat book 2, page 81, of the Public Records of Dade County, Florida hereinafter referred
to as 'Project", and the City of Miami Beach, a Florida municipal corporation, having its principal office
at 1700 Convention Center Drive, Miami Beach, Florida, hereinafter called "City
WITNESSETH:
WHEREAS, the City has established a Multi-Family Rehabilitation Program, hereinafter referred
to as 'Program", designed to provide financial and technical assistance to.property owners of deteriorated
and substandard multi-family residential structures within the City of Miami Beach, Florida, for the
purpose of rehabilitating said structures; and
WHEREAS, the policies of said program are set forth in the Guidelines for the City of Miami Beach
Rehabilitation Programs hereinafter referred to as "Guidelines', adopted by the City Commission on
December 20, 1989,as they may be amended from time to time, are deemed incorporated by reference and
made a part of this Agreement; and
WHEREAS,Owner as the legal owner of the Project described above has agreed to rehabilitate said
Project in accordance with the Program; and
WHEREAS, a commitment letter was issued by the City on September 17, 1990, to provide interest
subsidy funds for the financing of the rehabilitation of the Project, said commitment letter is deemed
incorporated by reference and made a part of this Agreement; and
• WHEREAS, a commitment letter was issued by Lender on November 20, 1990, for the financing of
the rehabilitation of the Project; and
WHEREAS, Lender has agreed to make a loan,(the 'Loan") to Owner pursuant to said Program;and
WHEREAS, it is acknowledged and agreed that funds utilized for payment to Lender on behalf of
Owner derive from Community Development Block Grant funds appropriated to the City by the U.S.
Department of Housing and Urban Development under the Housing and Community Development Act of
1974, as amended, for the uses and purposes herein referred to and accordingly it is acknowledged and
- agreed this Agreement is entered into after compliance by the parties with all applicable provisions of
Federal, State and local laws, statutes, rules and regulations as they may apply to this Agreement which
certain of said regulations are incorporated herein as more fully set forth in Attachment A .
NOW,THEREFORE,in consideration of the mutual promises contained herein and in consideration
of the monies which are to be deposited by City with Lender which consideration is hereby acknowledged
by the parties, the parties do agree as follows:
(I) Any amendments, alterations, variations, will only be valid when they have been reduced
to writing and duly signed by the parties.
!.v _ •
, - 1 k-4 •• ).
f 1
Exhibit 1
•
k«.
14830n2629
(2) It is understood and agreed by and between the parties hereto that the Guidelines, as they
may be amended from time to time, represent the scope of services and responsibilities of
the parties under the Program and said parties agree to abide by and comply with their roles
and responsibilities under the Guidelines as set forth therein.
(3) City shall have the sole responsibility and obligation of interpreting the intent and purpose
of the Program and contract documents, exclusive of the rights and responsibilities of
Lender as set forth in Lender's loan application and established loan processing procedures.
(4) Rehabilitation of Project shall be done in accordance with the applicable codes,ordinances
and statutes of the City and Metropolitan Dade County.
•
(5) It is understood and agreed by and between the parties that none of the obligations of the
City assumed or created hereunder shall be general obligations of the City and none of the
same shall be enforceable against the City generally. Any and all obligations, liabilities and
commitments of the City hereunder, shall be limited to the interest subsidy of Sixty-Seven
Thousand Nine Hundred Seventy-Six Dollars ($67,976.00)specified herein. No other fiscal,
legal, equitable or contractual duty or obligation is assumed by the City, and Owner and
Lender by executing this Agreement so agree.
After this interest subsidy payment is expended by Lender according to the procedures set
forth herein, the City shall be automatically discharged from any and all obligations,
liabilities and commitments hereunder to Owner, Lender or any third person or entity
provided, however, that this Section shall not excuse the continued compliance by Owner
with the terms of this Agreement and the federal program requirements.Owner and Lender
for consideration of One Dollar ($1.00) and other good, valuable, separate and distinct
consideration, receipt of which is hereby acknowledged, hereby save and hold harmless,
indemnify and protect the City, its officers and employees from any and all obligations,
liabilities, commitments, actions, claims, causes of action, suits or demand arising or
accruing by virtue of this Agreement or the Project contemplated hereunder.
(6) In consideration for the performance of Owner and Lender of their roles and
responsibilities set forth in this Agreement, the City agrees to pay to Lender on behalf of
Owner, the sum of Sixty-Seven Thousand Nine Hundred Seventy-Six Dollars ($67,976.00),
as the total of interest subsidy payments as further provided for herein. Said total of
payments represents an amount estimated necessary by the parties to reduce the interest rate
on the Lender's Note ('Loan Rate') on the permanent loan in the amount of One Hundred
Ninety Thousand Dollars (S190,000.00) to be made to Owner by Lender, to Six percent (6%)
per annum ('Subsidized Rate'), for an estimated term of Ten (10) years, and as further set
forth in Attachment B .
(7) The amount of the interest subsidy payment indicated in Section 6 above will be disbursed
by the City to the Lender, after a Notice to Proceed is issued, and as follows:
During the construction phase,and not more often than once a month,a payment equivalent
to ninety percent (90%) of the percentage of work completed in the previous period (as
certified by the Owner's Inspector and a responsible officer of the Lender), multiplied by
the total interest subsidy as described in Section 6.above. The remaining(final) ten percent
(10%) of the interest subsidy payment shall be paid upon the completion, approval and
acceptance of the rehabilitation work and related documentation by all the governmental
agencies and authorities having jurisdiction over the Project, and as further set forth in
Chapter VI of the Guidelines.
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._: 1433142630
(8) The interest subsidy payments shall be deposited by Lender in an interest bearing Escrow
Account at one of its offices located in Dade County, Florida,at the maximum interest rate
available to Lender, and to be expended as follows:
Each month, starting on the first month after a Final Certificate of Occupancy has been
issued,and as Owner makes the required payments on the permanent loan,Lender will draw
from the Escrow Account (to the extent amounts on deposit in the Escrow Account are
sufficient) the amount of interest subsidy equal to the difference between the amortized
monthly payment of principal and interest based on the 'Loan Rate', and the amortized
monthly payment of principal and interest based on the 'Subsidized Rate'. Attachment 'B'
provides the method for calculating the interest subsidy payment.
Any unused balance of interest subsidy funds plus unused earnings therein shall remain in
the Escrow Account.
(9) On each month during the construction period, Lender shall provide to the City's
Community Development Division a signed statement from a duly authorized officer,
detailing: date of payment, amount paid, percentage of work completed, retainage, and
remaining balance in the construction fund.
(10) Every six (6) months,and for the term of this Agreement, Lender shall provide to the City's
Community Development Division, a report accounting for: the Escrow Account number,
name and location; monthly interest earned on the funds; monthly subsidy payment
expenditures and balances;and monthly amortization of the permanent loan.This statement,
to be signed by a duly authorized officer, must be submitted to the City's Community
Development Division by January 31 and July 31 of each year.
(I I) Upon written notice from the City of the expiration, lapse or default of this Agreement,
whichever occurs first, Lender shall remit, within thirty (30) days of such written request
by the City, all undisbursed interest subsidy funds and interest thereon, remaining in the
Escrow Account to the City.
(12) The funds provided by the interest subsidy payment under the provisions of this Agreement,
shall be used, in accordance to Sections 6 and 8 hereof, to reduce the interest rate on monies
borrowed to rehabilitate the property into a fourteen (14) unit apartment building to be
done in accordance with the application filed by Owner with the City, as such application
was approved under the Program, including the commitment issued by the City dated
September 17, 1990, which is made a part hereof.
(13) It is understood and agreed by Owner that for at least three (3) years beginning on the date
when a Final Certificate of Occupancy is issued, a minimum of Eight (8) units (51%) will
be occupied by low and moderate income households at affordable rents. Low and moderate
income households means all members in a household whose combined income does not
exceed the following levels (as of this date, but to be revised annually): 1 person, $20,350;
2 persons,S23,300; 3 persons,826,200.Monthly rents for units occupied by low and moderate
income households are considered affordable, if they do not exceed the Fair Market Rents
for the Section 8 Existing Housing Program (as of this date, but to be revised annually):
Efficiency $378; 1 bedroom $461, which are net of utilities.
(14) Owner shall deliver to the City's Community Development Division, by January 31 of each
year, its signed notarized report in form and substance acceptable to the City, to include
names of tenants, unit type, family income, rents charged, and occupancy factor of each
unit for that prior year.This report will continue to be required for five(5) years after the
date on which a Final Certificate of Occupancy is issued.
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•
r.Ec: 14830r263I
(15) It shall be deemed a default of this Agreement in the event that Owner and/or Lender do
not strictly comply with the terms,conditions,duties and procedures established herein for
obtaining City consent to assignment or transfer as defined by this Section. In the event such
consent is not obtained in the manner prescribed herein the City shall be entitled to declare
a default,cancel this Agreement and resort to its rights and remedies against the defaulting
party. Lender or Owner shall not assign any interest of this Agreement and will not transfer
any interest in the same without the prior written consent of City Manager upon
recommendation by the Loan Review Committee. In the event Owner is a corporation,
limited partnership or other incorporated or artificial business entity, a transfer of more
than ten percent (10%) ownership interest of its' stock by pledge, sale or otherwise; or if
Owner makes an assignment for the benefit of its creditors or uses this Agreement as
security or collateral for any loan besides the loan involved herein; or if Owner is
voluntarily or involuntarily a party to any bankruptcy or insolvency proceeding; or if
Owner has a receiver appointed over any of its properties; or if Owner does not satisfy in
full or appeal any judgment for the sum of S5,000(or more)within thirty(30)days from its'
rendition; or if Owner is involved in a bulk transfer of its business, then in that event each
of the foregoing actions will be deemed an assignment of this Agreement and require the
prior written consent of the City Manager upon recommendation by the Loan Review
Committee. In the event Owner is a trust, which includes without limitation a land trust and
a trust company, any change in the person or entity who is the trustee or any change in the
heirs or beneficiaries of such trust shall be deemed an assignment under this section and
require the prior written consent of the City Manager upon recommendation by the Loan
Review Committee. Regardless of the type of entity Owner is defined to be, a merger,
insolvency,bankruptcy,dissolution,consolidation,conversion, liquidation,or appointment
of a receivership for such Owner shall each be deemed an assignment of this Agreement and
will require the prior written consent of the City Manager upon recommendation by the
Loan Review Committee.
(16) Upon a default of a written indebtedness, including without limitation: a note, mortgage,
guarantee,and the Agreement,Owner waives notice,presentment and/or demand of default.
(1.7) For purposes of this Agreement and the documents referenced or incorporated within it, a
default shall include without limitation,the following acts or events of Owner,or its agents,
servants, employees, or contractors:
(a) Owner's failure to (i) commence work within thirty (30) days from the date of this
Agreement,or(ii)diligently pursue construction and timely complete.the project by
securing a Final Certificate of Occupancy in eight (8) months from the date of this
Agreement, or (iii) provide the documentation required to make the final payment
of the interest subsidy, as indicated in Chapter VI of the Guidelines, within forty-
five (45) days from the date when a Final Certificate of Occupancy is issued.
Work shall be considered to have commenced and be in active progress when, in the
opinion of the City's Community Development Division, a full complement of
workmen and equipment is present at the site to diligently incorporate materials and
equipment into the structure throughout the day on each full working day, weather
permitting.
•
(b) Owner's failure to comply with applicable building, fire, life safety, housing and
zoning laws, rules, regulations and codes.
(c) Owner's default on any of the terms and conditions of the note, mortgage, or other
loan document executed by Owner in favor of Lender.
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14 838rtZ63Z
RED.
(d) Owner's insolvency or bankruptcy.
(e) Owner's failure to maintain the insurance required by the City and/or Lender.
(f) Owner's failure to correct defects within a reasonable time as defined herein.
(g) Owner's breach of this Agreement or of the terms and conditions of the Guidelines
or applicable laws, rules and regulations pertaining hereto which are referenced by
this Agreement.
(h) Claims of lien not satisfied or bonded-off, in accordance with Florida Statutes,
within 60 days from the date of filing of any such lien.
(i) An assignment or transfer of this Agreement or any interest therein by Owner
and/or Lender which does not comply with the procedures set forth herein.
(18) In the event of a default, the City may, thirty (30) days after mailing to Owner, with copy
to the Lender, a notice of such default as set forth herein, automatically cancel and
terminate this Agreement without liability to any party to this Agreement. If the default is
not fully and satisfactorily cured within thirty (30)days of the City mailing notice of such
default to Owner, to the full satisfaction of the City Manager or his authorized designee,
at the expiration of said thirty(30)day period,this Agreement may,at the City's sole option
and discretion, be deemed automatically cancelled and terminated and the City fully
discharged from any and all liabilities,duties and terms arising out of or accruing by virtue
of this Agreement and the Project.
(19) In the event of a default, the City shall additionally be entitled to bring any and all legal
and/or equitable actions which it deems to be in its best interest in Dade County, Florida,
in order to enforce the City's rights and remedies against the defaulting party. The City
shall be.entitled to recover all costs of such actions including a reasonable attorney's fee.To
the extent allowed by law, the defaulting party waives its right to jury trial and its right to
bring permissive counterclaims against the City in any such action to the extent allowed by
law.
(20) Notices and demands: All notices, demands, correspondence and communications between
the City, the Owner and the Lender shall be deemed sufficiently given under the terms of
this Agreement if dispatched by registered or certified mail,postage prepaid,return receipt
•requested, addressed as follows:
If to the City: City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Attention: City Manager
with a copy to: City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Attention: Community Development Director
If to the Lender: The Citizens and Southern National Bank of Florida
One Financial Plaza
P. O. Box 5367
Ft. Lauderdale, Florida 33340
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•
kE�`'`:•. I483O42633
If to the Owner: Morada Ventures, Inc.
1414 Collins Avenue, Suite I
Miami Beach, Florida 33139
or to such address and to the attention of such other person as the City, the Lender or the
Owner may from time to time designate by written notice to the others.
(21) It is understood and agreed that Lender shall record this Agreement as part of the mortgage
and promissory note on the subject project with the Clerk of the County Court, Dade
County, Florida and shall furnish the City's Community Development Division with
certified copies of these recorded instruments within sixty(60)days of the execution of this
Agreement.
IN WITNESS WHEREOF, the Owner has caused this Agreement to be executed by its duly
authorized officer(s), the Lender has caused this Agreement to be executed by its duly authorized
officer(s),and the City has caused this Agreement to be executed by its duly authorized officer(s),
the day and year first above written.
THE PARTIES HERETO STATE THAT THEY HAVE CAREFULLY READ THE FOREGOING
AGREEMENT AND THE CITY OF MIAMI BEACH GUIDELINES FOR THE REHABILITATION ,
PROGRAMS,AND KNOW THECONTENTS THEREOF AND FULLY REALIZE THEIR MEANING AND
SIGN THIS AGREEMENT AS THEIR OWN FREE ACT.
(THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK)
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•
.:: 14838.C26341
WITNESS: OWNER: MORADA VENTURES,.INC.
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LENDER: THE CITIZENS AND
J ! l ) SOUTHERN NATIONAL BANK OF FLORIDA
( C. ( et'LiN,AI • .
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B Y: q-691/Li.91:47.1-L
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CITY OF MIAMI BEACH
//
(..-41�-1A.. (Y` •jCol�" LL� ,i - BY:
')1' MAYOR
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FORM APPROVED
• •
, ' ,� LE I. DEPT.
a 7i fat*. 1!.C.';sz.si.L.,i
ITY C BAP �/
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14830Q635 •
STATE OF FLORIDA
) SS: ,
COUNTY OF BROWARD )
Before me, the undersigned authority, personally appeared DENNIS SCHOLL, to me known to be
the person who executed the foregoing instrument, as PRESIDENT of MORADA VENTURES, INC.
Witness my hand and seal at Ft. Lauderdale, Broward County, Florida, this 1 �. day of
December, 1990.
•
NOTARY ;St of Florida
My Commission Expires: ^:. .. '••...•;,..• ,,`
STATE OF FLORIDA )
) SS:
COUNTY OF BROWARD ')
Before me, the undersigned authority,personally appeared ,.b..nt VZ ,
to me known to be the person who executed the foregoing instrument,as
of THE CITIZENS AND SOUTHERN NATIONAL BANK OF FLORIDA.
Witness my hand and seal at Ft. Lauderdale, Broward County, Florida, this �3 day of
December, 1990.
Ii l ... . • ..
NOTAR '_'r T , Smote df Florida✓r
.S
�; `
•
My Commission Expires: • • u: :
.�` Q L ti
STATE OF FLORIDA ) • ,,
) SS:
COUNTY OF DADE )
- Before me,the undersigned authority, personally appeared / 4/l /)/9CG.J
to me known to be the person who executed the foregoing instrument,as MAYOR of the CITY OF MIAMI
BI3ACH. ,��j�'s
1 Wftgess Ihy1 hand and seal at Miami, Dade County, Florida, this /3 day of December, 1990.
71
o, 0 .1. ( /
1 •. �` NO RY/ UBLIC, State of Florida
My Commission Expires:
NOTARY PIALIC STATE OF FLORIDA - 8 -
MY COMMISSION EXP. JAN.29,I994
BONDED IHRU GENERAL INS. UND,
•
I4830.62636 •
r.�i..
ATTACHMENT 'A'
OTHER FEDERAL REQUIREMENTS
As the City of Miami Beach is providing this funding through Federal Community Development Block
Grant and/or Rental Rehabilitation Program funds,all parties agree to comply with the following statutes,
regulations and executive orders,as they apply.These requirements are incorporated herein by reference.
1. Freedom of Information and Privacy Acts
- Freedom of Information Act (5 U.S.C. 552), and the Privacy Act of 1974 (5 U.S.C. 552a).
2. Equal Opportunity •
- Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d) and 24 CFR Part 1;
- Title VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601), as amended;
- Executive Order 11063, as amended by Executive Order 12259;
- Executive Orders 11246, 11265, 12138 and 12432;
- Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 170), as amended;
- Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), as amended;
- The Age Discrimination Act of 1975 (42 U.S.C. 6101);
- The Fair Housing Amendments Act of 1988.
3: Environmental Review
- The National Environmental Policy Act (42 U.S.C. 4321, et seq);
- The Council on Environmental Quality Regulations (40 CFR Parts 1500-1508);
- Environmental Review for the CDBG and the Housing Rehabilitation Programs(24 CFR Part 58);
- National Historic Preservation Act of 1966.
- National Flood Insurance Act of 1968 as amended by the Flood Disaster Protection Act of 1973.
4. Lead Based Paint
•
- Lead Based Paint Poisoning Prevention Act (42 U.S.C. 4801, et seq);
- HUD Lead Based Paint Regulations (24 CFR Part 35).
5. Asbestos
- Asbestos Regulations (40 CFR 61, Subpart M);
- U.S. Department of Labor Occupational Health and Safety(OSHA) Asbestos Regulations(29 CFR
191.1101).
6. Handicapped Accessibility
- Architectural Barriers Act of 1968 (42 U.S.C. 4151 and 24 CFR Part 41).
7. Labor Standards
- The Davis-Bacon Act (40 U.S.C. 276a) as amended;
- The Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333);
- Federal Labor Standards Provisions (29 CFR Part 5.5).
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•
kEC.
14830?CZ637
8. Grant Reeulations
- Community Development Bl,'ck Grants (24 CFR Part 570);
- Rental Rehabilitation Program (24 CFR Part 511).
ADDITIONALLY, ALL PARTIES AGREE TO COMPLY WITH ALL EXISTING FEDERAL,STATE AND
LOCAL LAWS AND ORDINANCES HERETO APPLICABLE, AS AMENDED.
(THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK)
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L 14830112638
ATTACHMENT "B"
METHOD OF CALCULATING THE INTEREST SUBSIDY PAYMENT
(SUBJECT TO LENDER'S NOTE RATE AND INTEREST PAID ON FUNDS)
APPLICATION N2 90-025
BUILDING ADDRESS: 653 MICHIGAN AVENUE
BUILDING NAME: PINEAPPLE APARTMENTS
APPLICANT: MORADA VENTURES, INC.
N°OF UNITS: 14
LOAN AMOUNT: $190,000
LENDER'S RATE ON LOAN: 11.50%
SUBSIDIZED RATE ON LOAN: 6.00%
DISCOUNTED RATE ON FUNDS 7.00%
AMORTIZATION TERM (YRS): 20
BALLOON AT (YRS): 10
A) AMORTIZED MONTHLY PAYMENT OF P & I REOUIRED FOR A TERM OF 20 YEARS
@ 11.50% - $2,026.22
@ 6.00% - $1,361.22
DIFFERENCE (SUBSIDY) - $665.00
PRESENT VALUE OF A SERIES OF 120 MONTHLY SUBSIDY PAYMENTS
OF $665.00 DISCOUNTED AT 7.00% IS $57.274.00
B) BALLOON PAYMENT REQUIRED AT THE END OF 10 YEARS
@ 11.50% - $144,116.78
@ 6.00% - $122,609.70 • -
DIFFERENCE (SUBSIDY) - $21,507.09
PRESENT VALUE OF A SINGLE FUTURE SUBSIDY PAYMENT
OF $21,507.09 IN 120 MONTHS AND DISCOUNTED AT
A RATE OF 7.00% IS $10.702.00
PRESENT VALUE OF THE INTEREST SUBSIDY CALCULATED
AT A DISCOUNTED RATE OF 7.00%:
$67.976 •
•
WORDED/N ON/CrAL RECORDS ROOK
OP DAOE COUNTY.FLORIDA.
RmCORu'ERIFIED
_ I I - Clark of Circuit&County •
Courts
•
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010
FAX: (305) 673-7782
COMMISSION MEMORANDUM NO. I86-w
TO: Mayor Seymour Gelber and DATE: March 16, 1994
Members of the City Commission
FROM: Roger M. Cant
City Ma
SUBJECT: AUTHORIZATION FOR THE MAYOR AND CITY CLERK TO EXECUTE A
RELEASE AND SATISFACTION OF LOAN AGREEMENT COVERING THE
PROPERTY AT 653 MICHIGAN AVENUE, KNOWN AS THE PINEAPPLE .
APARTMENTS
ADMINISTRATION RECOMMENDATION:
To adopt the attached Resolution authorizing the Mayor and City
Clerk to execute a Release and Satisfaction of Loan Agreement
acknowledging the fulfillment of the terms and conditions of the
agreement captioned "Subsidy Agreement", relating to the Pineapple
Apartments, located at 653 Michigan Avenue, Miami Beach.
BACKGROUND:
On December 10, 1990, the City of Miami Beach entered into an
agreement entitled: "Subsidy Agreement", with Morada Ventures,
Inc. , (owner) and with the lender, Citizens and Southern National
Bank of Florida . (Exhibit 1) .
Dennis Scholl is the President of Morada Ventures, Inc. The
agreement relates to the property located at 653 Michigan Avenue,
known as the Pineapple Apartments. The building consists of 14
apartments. The City's only obligation under this agreement was to
provide an interest subsidy payment in the amount of $67,976 from
the Federal Community Development Block Grant (CDBG) Program funds,
to Citizens and Southern National Bank to reduce the monthly
amortization payments on the $280,000 mortgage loan used to finance
the rehabilitation of the property. The subsidy amount has been
fully utilized, and the owner is now seeking to record a
satisfaction of the agreement.
ANALYSIS:
The City's obligation to the developer has been completed through
the payment of the original subsidy payment to Citizens and
Southern National Bank. The Developer has complied with his
obligations, by completing a satisfactory rehabilitation project,
and providing eight (8) units of affordable housing for the
required three year period.
A review of City and County records indicates that there are no
City code enforcement liens outstanding, and no unpaid water bills;
property taxes are paid through 1993.
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AGENDA _ {.( A
ITEM ((
DATE v IL- 9 ,-)
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COMMISSION MEMO
MARCH 16, 1994
PAGE 2
CONCLUSION:
It is recommended that the Mayor and City Commission adopt the
attached Resolution authorizing the Mayor and City Clerk to execute
the attached Release and Satisfaction of Loan Agreement
RMC/CAH
\RESOD NEAPPLMEM
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