RESOLUTION 88-19237 RESOLUTION NO. 88-19237
A RESOLUTION OF THE CITY COMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING A CONSENT AND
RATIFICATION OF SUBSIDY AGREEMENT FOR THE
REHABILITATION OF THE PALM COURT APARTMENTS
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI
BEACH:
WHEREAS, the City of Miami Beach, on May 20, 1987, entered into a
subsidy agreement with YRBIT, S.A., a Panamanian corporation, and General
Bank, a federal savings bank formerly known as General Federal Savings and
Loan Association, for the purpose of providing an interest buy-down on a loan for
the rehabilitation of the property known as the Palm Court Apartments and
located at 309 23rd Street, Miami Beach; and
WHEREAS, the Subsidy agreement provides that the construction phase of
the property was to be completed within twelve (12) months from the date of the
agreement; and
WHEREAS, YRBIT, S.A. has requested that the completion time for
sandblasting and painting the exterior walls of the building be extended to thirty
(30) days after the date of the Consent of Subsidy Agreement, and that the
completion time of the total project be extended to November 1, 1988; and
WHEREAS, Yrbit, S.A. and General Bank have requested the City to
consent to a second leasehold mortgage;
NOW THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, that the attached "Consent to
Leasehold Mortgage, Default Notification Agreement and Ratification of Subsidy
Agreement" be hereby approved and adopted. Further, that the City Commission
authorizes the Mayor and the City Clerk to execute such consent and any other
documents necessary to carry out the rehabilitation of the Palm Court
Apartments.
PASSED and ADOPTED this 4 fi 1., day of May , 1988
Pr Fr;
Attest:
FOvM APPROVEDc)7,k_
CITY CLERK
LEGAL DEPT.
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OFFICE OF THE CITY MANAGER CITY HALL
ROB W.PARKINS 1700 CONVENTION CENTER DRIVE
CITY MANAGER TELEPHONE: 673-7010
(3g COMMISSION ION MEMORANDUM NO. `
DATE: May 4, 1988
TO: Mayor Alex Daoud and
Members of the City Commission
FROM: 'Rob W. Parkins
City Manager
SUBJECT: CONSENT TO MODIFICATION OF THE SUBSIDY AGREEMENT FOR THE
REHABILIATION OF THE PALM COURT APARTMENTS
The City operates a Rental Rehabilitation Program designed to provide financial and
technical assistance to property owners of deteriorated and substandard multi-unit
apartrrients, for the purpose of rehabilitating said structures.
On May 20, 1987, the City entered into a subsidy agreement with YRBIT, S.A., a
Panamanian corporation which owns the Palm Court Apartments at 309 23rd Street,
for the purposes of providing an interest subsidy payment to buy down the interest rate
on a loan to be made by General Bank for the rehabilitaiton of the property. During
the construction phase, additional funds were needed because of extensive structural
work, additional electrical work required by Florida Power & Light Company and also
for sprinker systems. The securing of these additional funds and the extent of such
improvements have delayed the completion of the work as scheduled.
In order to be in compliance with the terms of the City's subsidy agreement, and also
with those requirements of the private lenders, the owner of the property has
requested that the construction period be extended to November 1, 1988, and that the
attached "Consent to Modify the Subsidy Agreement" be approved and executed by the
City. No additional funds from the City will be required.
ADMINISTRATION RECOMMENDATION:
The Administration recommends the approval of the "Consent to Leasehold Mortgage,
• Default Notification Agreement and Ratification of Subsidy Agreement," and that the
Mayor and City Clerk be authorized to execute such document and any other
documents necessary to carry out the rehabilitation of the property.
RWP/nkm
23
AGENDA - - Q./
ITEM
DATE 4-2'n
CONSENT TO LEASEHOLD MORTGAGE,
DEFAULT NOTIFICATION AGREEMENT
AND RATIFICATION OF SUBSIDY AGREEMENT
THIS CONSENT TO LEASEHOLD MORTGAGE, DEFAULT NOTIFICATION
AGREEMENT AND RATIFICATION OF SUBSIDY AGREEMENT entered into this 5 t h
day of May , 1988, by and between GENERALBANK, a Federal Savings
Bank formerly known as GENERAL FEDERAL SAVINGS AND LOAN ASSOCIATION
("GENERAL"), the City of Miami Beach, a Florida municipal corporation (the "CITY"),
BARNETT BANK OF SOUTH FLORIDA, N.A. ("BARNETT") and YRBIT, S.A., a
Panamanian corporation (the "MORTGAGOR") and JOSE A. HERRERA, who, together
with MORTGAGOR is jointly referred to as "BORROWER".
A. WHEREAS, MORTGAGOR is the owner and holder of a leasehold interest
on the Property, as hereinafter defined, by virtue of that certain lease more particularly
described on Exhibit "A" attached hereto and made a part hereof (the "Lease").
B. WHEREAS, GENERAL is the owner and holder of that certain mortgage
dated May 20, 1987, executed by MORTGAGOR in favor of General Federal Savings and
Loan Association of Miami, recorded in Official Records Book 13286, at Page 1060, of
the Public Records of Dade County, Florida (the "General Mortgage"), encumbering
MORTGAGOR'S leasehold interest in the property more particularly described on Exhibit
"B" attached hereto and made a part hereof (the "Property").
C. WHEREAS, on the 20th day of May, 1987, GENERAL, the CITY and
MORTGAGOR did enter in a Subsidy Agreement (the "Agreement"), which Agreement was
recorded in Official Records Book 13293, at Page 3385 of the Public Records of Dade
County, Florida.
D. WHEREAS, the Agreement provides, among other things, that completion
of the construction on the Property was to be completed within twelve (12) months from
the date of the Agreement.
E. WHEREAS, the General Mortgage and specifically, Paragraph 27 thereof,
provides that MORTGAGOR may not further encumber the Property without GENERAL's
prior express written consent.
F. WHEREAS, BORRROWER has requested that BARNETT extend a loan (the
"Loan") to BORROWER to provide additional funds for the completion of the construction
on the Property, which Loan shall be secured by, among other things, a leasehold
mortgage encumbering BORROWER's leasehold interest in the Property (the "Leasehold
Mortgage"), which Leasehold Mortgage shall be a second Mortgage on MORTGAGOR's
leasehold interest on the Property inferior to the General Mortgage.
- Page 1 -
G. WHEREAS, MORTGAGOR has requested that the CITY consent to the
Leasehold Mortgage.
H. WHEREAS, BARNETT is agreeable to entering into the Loan with
BORROWER, provided that GENERAL modify the terms of the General Mortgage and
consent to the Leasehold Mortgage, and provided that the CITY execute this Agreement
to evidence its consent to the Leasehold Mortgage and extend the time for the completion
of construction on the Property to November 1, 1988, and extend the time for completion
of sandblasting and painting of the exterior walls of the building to thirty (30) days after
the date of this Consent Agreement.
NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged by, it is agreed between the parties as
follows:
1. The foregoing recitations are true and correct and are incorporated herein
as if set forth in their entirety.
2. GENERAL represents and warrants that, as of the date hereof,
MORTGAGOR and/or BORROWER are not in default under the terms and provisions of
the General Mortgage or the Note secured thereby, and that as of the date hereof,
GENERAL has not received from the Lessor under the Lease, any notices of any defaults
by MORTGAGOR under the terms and provisions of the Lease.
3. The CITY represents and warrants that, as of the date hereof,
MORTGAGOR and/or GENERAL are not in default under the terms and provisions of the
Agreement.
4. GENERAL hereby agrees to provide BARNETT with written notice of any
default by MORTGAGOR and/or BORROWER under the General Mortgage or the Note
secured thereby. GENERAL by its execution hereof, hereby agrees that BARNETT shall
have a reasonable period of time after its receipt of such notice within which to cure any
such defaults.
5. In the event BARNETT cures any such defaults on behalf of MORTGAGOR
and/or BORROWER, the General Mortgage and the Note secured thereby shall be
reinstated and shall continue in good standing.
6. GENERAL further agrees to provide BARNETT with written notice upon
its receipt of any notices of any defaults by MORTGAGOR under the Lease received by
GENERAL.
. The CITY hereby agrees to provide BARNETT with written notice of any
default by MORTGAGOR and/or GENERAL under the Agreement. The CITY, by its
execution hereof, hereby agrees that BARNETT shall have thirty (30) days after its
receipt of such notice within which to cure any such defaults.
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8. In the event BARNETT cures any such defaults on behalf of MORTGAGOR
and/or GENERAL, the Agreement shall continue in good standing.
9. Notwithstanding anything contained herein to the contrary, BARNETT shall
not be obligated to cure any defaults or to perform any actions on behalf of or for
BORROWER or MORTGAGOR or GENERAL under the General Mortgage or Note or under
the Agreement.
10. All notices to be given pursuant to this Agreement shall be deemed given if
hand delivered or sent by certified mail to the parties as follows:
IF TO GENERAL FEDERAL: 1200 Ponce de Leon Blvd.
Coral Gables, Florida 33134
Attn: Eric Weinstein, Vice President
IF TO BARNETT: 701 Brickell Avenue
Miami, Florida 33131
Attn: Olimpia Elias, Assistant Vice President
IF TO MORTGAGOR/BORROWER: YRBIT, S.A.
a Panamanian corporation and
JOSE A. HERRERA
c% JOSE A. HERRERA
1848 N.W. 16th Street
Miami, Florida 33125
IF TO CITY: CITY OF MIAMI BEACH
1700 Convention Center Drive
Miami Beach, Florida 33139
Attn: City Manager
11. GENERAL, by its execution hereof, does hereby consent to the Leasehold
Mortgage and agrees that same shall not constitute an event of default under the General
Mortgage.
12. The CITY, by its execution hereof, does hereby consent to the Leasehold
Mortgage, and hereby extends the time for completion of the construction on the Property
to November 1, 1988, and completion of the sandblasting and painting of the exterior
walls of the building to thirty (30) days after the date of this Consent Agreement, and
agrees that same shall not constitute an event of default under the Agreement.
13. All terms, covenants, conditions, representations and warranties contained
herein, shall survive the execution hereof and shall be binding upon and inure to the
benefit of the parties hereto, their heirs, personal representatives, successors and assigns.
IN WITNESS WHEREOF, the parties hereto hereunto affixed their hands and seals
this 5 tf1ay of May , 1988.
Witnessed By:
GENERALBANK,
a Federal Savings Bank
i
y
BY: h
As Its: Vice President
j
1
1
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.
fOtM APPROVED
LEGAL DEPT.
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CITY o H
Date -57.f: gl
W,/,) Byoe
Attest : As NS: Mayor
City Clerk 5/5f88
BARNETT BANK OF SOUTH FLORIDA, N.A.
By:
As Its:
YRBIT, S.A.,
a Panamanian corporation
•
JOSE A. HERRERA, President
ts.pt.
CMovu,u,
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JOSS- . HERRERA, hid dually
244.—
STATE OF FLORIDA )
)ss:
COUNTY OF DADE )
BEFORE ME, the undersigned authority, personally appeared,
as a Vice President of GENERALBANK, a Federal
Savings Bank, who, being first duly sworn, acknowledged before me that s/he executed
the foregoing instrument for the purposes therein expressed.
WITNESS my hand and official seal at said County and State, this day of
1988.
NOTARY PUBLIC, State of Florida
My Commission Expires:
STATE OF FLORIDA )
)ss:
COUNTY OF DADE )
BEFORE ME, the undersigned authority, personally appeared,
A (€ 0a614 as a fitaV0/- of THE CITY OF
MIAMI BEACH, who, being first duly sworn, acknowledged before me that s/he executed
the foregoing instrument for the purposes therein expressed.
WITNESS my hand and official seal at said County and State, this S day of
__11/2_4 , 1988.
ecer--":NOTARY PUBLIC, State of Florida
My Commission Expires: r
NOTA 0Y rU!MC ",I. C7 FL7!
NY COMM= S='�� E;+ . 1 2 ,
11 4\ ��
BONDED TNRU GENEPAL b.. .
- Page 4 -
STATE OF FLORIDA )
)ss-
COUNTY OF DADE )
BEFORE ME, the undersigned authority, personally appeared,
as a of BARNETT BANK
OF SOUTH FLORIDA, N.A., who, being first duly sworn, acknowledged before me that
s/he executed the foregoing instrument for the purposes therein expressed.
WITNESS my hand and official seal at said County and State, this day of
1988.
NOTARY PUBLIC, State of Florida
My Commission Expires:
STATE OF FLORIDA )
)ss:
COUNTY OF DADE )
BEFORE ME, the undersigned authority, personally appeared, JOSE A. HERRERA,
individually and as the President of YRBIT, S.A., a Panamanian corporation, who, being
first duly sworn, acknowledged before me that he executed the foregoing instrument for
the purposes therein expressed.
.ivit_
WITNESS my hand and official seal at said County and State, this 5t-day of
, 1988.
6,44t ) C . A\. . i _i )
NOTARY PUBLIC, to of Florida
My...Commission Expires;_
t niA nY i"n iC S S I+c CF f•!f1RIDA ••
rY c,;;A;n'vA is X P. V:7 15,1°91 .
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LRC/aa37/0406-25
ORIGINAL
RESOLUTION NO. 88-19237
(Approving a consent and ratification of
sibsidy agreement for the rehabilitation of
the Palm Court Apartments)