94-21322 Reso
RESOLUTION NUMBER 94-21322
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
APPROVING AND AUTHORIZING SETTLEMENT OF A
DISPUTED PAYMENT IN LIEU OF TAXES BETWEEN THE
CITY OF MIAMI BEACH AND THE HOUSING AUTHORITY
OF THE CITY OF MIAMI BEACH, RELATING TO THE
PROPERTY AT 200 ALTON ROAD, KNOWN AS THE
REBECCA TOWERS NORTH, SUCH SETTLEMENT IN THE
AMOUNT OF $28,500, AND FURTHER AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE THE ATTACHED
RELEASE AND SATISFACTION OF INDEBETEDNESS.
WHEREAS, the Housing Authority of the city of Miami Beach
(Housing Authority) is exempt from the payment of real estate and
personal property taxes; and
WHEREAS, the City of Miami Beach agreed with the Housing
Authority to provide municipal services to the properties of the
Housing Authority under an Agreement approved by the Mayor and City
commission by Resolution No. 78-15670, passed on July 19, 1978; and
WHEREAS, that Agreement regarding the Rebecca Towers North
Building, located at 200 Alton Road, provides for the payment of an
annual fee equal to ten per cent (10%) of the Shelter Rent charged
by the Authority in respect to the Project during such fiscal year,
or $9,500.00, whichever amount is the lesser, to be paid in lieu of
property taxes; and
WHEREAS, in July 1990, the City's Internal Audit Department
examined City records and could find no evidence that such payments
were made for the years from 1978 through 1984; and
WHEREAS, the Housing Authority has disputed the existence of
this debt, and has asserted that it has previously paid such
charges, although it has been unable to provide documentary
evidence of such payment(s); and
WHEREAS, the Housing Authority has offered to pay to the city
the amount of $28,500.00, representing one-half of the disputed
amount, to settle this dispute in full, on or before October 1,
1994; and
WHEREAS, the City in a spirit of cooperation, wishes to settle
this matter in an amicable fashion; and
WHEREAS, upon receipt of the aforestated payment, in
settlement of the debt under the Agreement, the city will provide
the attached Release and Satisfaction of Indebedness (Release),
evidencing satisfaction of the Housing Authority's obligation under
the Agreement; and
L_
WHEREAS, the attached Release shall only release the Housing
Authority as to its debt under the Agreement for the years from
1978 through 1984, and shall not release the Housing Authority, nor
act as a bar to any of the city's rights and remedies therein, from
any liability that the Housing Authority may have as to payment to
the City of any other indebtedness.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and
city commission approve and authorize settlement of a debt under
the Agreement between the City and the Housing Authority of the
City of Miami Beach, dated July 19, 1978, covering annual payments
in lieu of property taxes, for the property located at 200 Alton
Road, known as the Rebecca Towers North, such settlement in the
amount of $28,500; and further authorizing the Mayor and City Clerk
to execute the attached Release and satisfaction of Indebtedness,
to be held by the city Attorney's office until receipt of the
$28,500 settlement amount, which shall be due and payable on or
before October 1, 1994.
PASSED AND ADOPTED THIS 22nd
DAY OF
Se tember
, 1994.
ATTEST:
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CITY CLERK
CITY OF
MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
COMMISSION MEMORANDUM NO. ~f Cc -qr.f
TO:
Mayor Seymour Gelber and
Mambers of the City Commission
FROM: RogerM.carlt-1\...n I -
City Manager 'f\~
September 22, 1994
DATE:
SUBJECT: RESOLUTION AUTHORIZING SETTLEMENT OF A DEBT UNDER THE CITY'S
AGREEMENT WITH THE HOUSING AUTHORITY OF THE CITY OF MIAMI
BEACH (HOUSING AUTHORITY) FOR THE PAYMENT IN LIEU OF TAXES
FOR THE PERIOD OF 1978 THROUGH 1984, IN THE AMOUNT OF
$28,500 ; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO
EX~CUTE A RELEASE AND SATISFACTION OF INDEBTEDNESS BETWEEN
THE CITY AND THE HOUSING AUTHORITY UPON RECEIPT OF THE
AGREED-UPON PAYMENT
ADMINISTRATION RECOMMENDATION:
It is recommended that the Mayor and City commission adopt the
attached Resolution authorizing settlement of a disputed debt under
the "Agreement for Payments in Lieu of Taxes" entered into on July
19, 1978, for the Rebecca Towers North Apartments, located at 200
Alton Road. Further, it is requested that the Mayor and city Clerk
be authorized to execute the attached Satisfaction of Debt upon
receipt by the City of the agreed-upon payment in full.
BACKGROUND:
The Housing Authority of the City of Miami Beach, under the Statutes
of the State of Florida, is exempt from all real and personal
property taxes. However, in recognition of the costs of the
municipal services utilized by the tenants of the Rebecca Towers
North Apartments, the Housing Authority and the City, negotiated an
agreement entitled: "Agreement for Payments in Lieu of Taxes",
entered into on July 19, 1978. This Agreement provides that an
annual payment of the lesser of: ten percent (10%) of the shelter
rents, or $9,500 should be paid to the city annually. The Agreement
~as approved by Resolution Number 78-15670, passed and adopted on
July 19, 1978.
The City's Internal Auditor prepared a report on July 16, 1990, and
a follow-up report on July 9, 1992 stating that no record could be
located of payments of the annual fees due to the City under this
Agreement for the period from the inception of the agreement, July
19, 1978, through June 30, 1984.
19
DATE
~-l-G
9 - 22-q~
AGENDA ITEM
COMMISSION MEMO
SEPTEMBER 22, 1994
PAGE 2
This report reads, in pertinent part, as follows:
"A City Internal Audit (Report of July 16, 1990) covering the
period July 19, 1978 through June 30, 1990 revealed that the
Miami Beach Housing Authority, Inc. could not provide
documentary proof of ever making any of the required annual
payments of $9, gOO. 00. An examination of city financial
records showed no evidence that such payments were ever
received. Internal Audit determined that a total of
$104,500.00 was due the city. The Housing Authority's escrow
agent, Sun Bank in Orlando admitted the error and sent the City
a check for $28,500.00 in March 1990 covering the period 1987
through 1989. On July 9, 1990, the bank sent an additional
$19,000.00 for the 1985 and 1986 years. A bank official
explained that her records only went back as far as 1985. The
City received a total of $47,000.00 of the $104,500.00 and
Internal Audit took the position that the remaining amount of
$57,000.00 (six annual payments of $9,500.00 each) for the
period July 19, 1978 through June 30, 1984 is still owed and
must be paid by the Miami Beach Housing Authority, Inc. The
Authority was sent a City Bill on July 12, 1990, and even with
the subsequent involvement of Bea Calstein, the bill still
remains unpaid."
ANALYSIS:
City staff has been working closely with the Housing Authority on
the renewal of terms of an Inter-Local Agreement. Toward this end,
the City and the Housing Authority have discussed the terms of the
outstanding debt under the Agreement on Payment in Lieu of Taxes.
Staff from the City's Housing and Community Development Division has
successfully negotiated the payment of $28,500.00 or 50% of the
disputed amount due for the period from 1975 through 1984 under the
Agreement as a final settlement of the outstanding debt.
The Executive Director of the Housing Authority has cooperated fully
in resolving this matter, and is anxious to comply with the payment
requirements.
Upon receipt of the payment for the above described settlement, the
City will provide a Release and Satisfaction Indebtedness to the
Housing Authority, to evidence satisfaction of the obligation under
the Agreement.
J ."
20
COMMISSION MEMO
SEPTEMBER 22, 1994
PAGE 3
CONCLUSION:
It is recommended that the Mayor and city commission adopt the
attached Resolution authorizing settlement of disputed debt under
the "Agreement for payments in Lieu of Taxes", and authorizing the
Mayor and City Clerk to execute the attached satisfaction of Debt,
upon receipt by the City of the agreed-upon payment in full.
RMC/CAH
Attachments
~ 0""
; 21
.
RELEASE AND SATISFACTION OF INDEBTEDNESS
WHEREAS, the Housing Authority of the City of Miami Beach (Housing AuthorRy) is exempt from
the payment of real estate and personal property taxes; and
WHEREAS, the City of Miami Beach agreed wRh the Housing AuthorRyto provide municipal services
to the properties of the Housing Authority under an Agreement approved by the Mayor and City Commission
by Resolution No. 78-15670, passed on July 19,1978 (Agreement); and
WHEREAS, that Agreement regarding the Rebecca Towers North Building, located at 200 Mon
Road, provides for the payment of an annual fee equal to ten per cent (10%) of the Shelter Rent charged
by the Authority In respect to the Project during such fiscal year, or $9,500.00, whichever amount is the
lesser, to be paid in lieu of property taxes; and
WHEREAS, In July 1990, the City's Internal AudR Department examined City records and could find
no evidence that such payments were made for the years from 1978 through 1984; and
WHEREAS, the Housing Authority has disputed the existence of this debt, and has asserted that
R has previously paid such charges, although R has been unable to provide documentary evidence of such
payment(s); and
. WHEREAS, the Housing Authority has offered to pay to the City the amount of $28,500.00,
representing one-half of the disputed amount, to settle this dispute In full, on or before October 1, 1994; and
WHEREAS, the City in a splrR of cooperation, wishes to settle this matter in an amicable fashion;
and
IN WITNESS WHEREOF, The CITY OF MIAMI BEACH releases the HOUSING AUTHORITY OF THE
CITY OF MIAMI BEACH, their successors and assigns from the obligation for payment of the sum of
$9,500.00 per year for the period from July 19, 1978 through July 30, 1984, under the terms of that certain
agreement captioned: 'Agreement for Payment in Lieu of Taxes', dated the 19th day of July, 1978, and
approved by Resolution No. 78-15670 of the Mayor and CRy Commission of the CRy of Miami Beach,
Florida:
200 Ahon Road, also known as Rebecca Tower North.
And satisfies any and all financial obligations under the terms of such instrument and does hereby direct
the Director of Finance of the CRy of Miami Beach to record this obligation as fully paid in the Records of
the CRy.
By:
994.
IN WITNESS WHEREOF, this instrument has been executed on
ATTEST:
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