RESOLUTION 89-19673 RESOLUTION NO. 89-19673
A RESOLUTION OF THE CITY COMMISSION OF THE CITY
OF MIAMI BEACH AUTHORIZING THE MAYOR TO EXECUTE
A REINSTATEMENT AGREEMENT AMONG GENERALBANK,
A FEDERAL SAVINGS BANK, THE CITY OF MIAMI
BEACH, BARNETT BANK OF SOUTH FLORIDA, N.A. ,
YRBIT, S. A. AND JOSE A. HERRERA, INDIVIDUALLY,
RELATING TO THE PALM COURT APARTMENTS LOCATED
AT 309 23RD STREET, MIAMI BEACH, FLORIDA.
WHEREAS, YRBIT, S.A. ("Mortgagor") , is the long term lessee of
the following described property:
Lots 7 and 8 and the East 39 feet of Lot
9 in Block 3 of Ocean Front Property of
the Miami Beach Improvement Co.
Subdivision according to the plat thereof,
recorded in Plat Book 5, pages 7 and 8,
of the Public Records of Dade County,
Florida (the "Property") , and
WHEREAS, on or about May 20, 1987, Generalbank, a Federal
Savings Bank ("General") , the City of Miami Beach ("City") and
Mortgagor entered into a Subsidy Agreement (the "Subsidy
Agreement") , and
WHEREAS, on or about May 5, 1988, General, the City,
Mortgagor, Barnett Bank of South Florida, N. A. ("Barnett") and
Jose A. Herrera entered into a Consent to Leasehold Mortgage,
Default Notification Agreement and Ratification of Subsidy
Agreement (the "Consent Agreement") , and
WHEREAS, the Consent Agreement provided in Paragraph 12
thereof that the construction on the property was to be completed
on or before November 1, 1988, and
WHEREAS, Paragraph (19) (a) of the Subsidy Agreement also
provided, as such paragraph was amended by the Consent Agreement,
that the construction on the property was to be completed on or
before November 1, 1988, and
WHEREAS, on or about November 2, 1988, the City issued a
Notice of Default letter providing thirty (30) days for cure of the
default or the City would terminate the Subsidy Agreement and the
Consent Agreement and seek the recovery of all interest subsidy
funds, and
1
WHEREAS, on or about December 16, 1988 the City terminated the
Subsidy Agreement for failure to cure the default, and
WHEREAS, on or about January 9, 1989, General requested an
extension of time for recall of the interest subsidy funds, and
WHEREAS, by subsequent correspondence the City extended the
recall date to May 15, 1989, and
WHEREAS, the City of Miami Beach Building Department issued
its Certificate of Completion for the propertyon May15, 1989, and
WHEREAS, on or about April 14, 1989 General requested
reinstatement of the Subsidy Agreement, and
WHEREAS, the City is willing to reinstate the Subsidy
Agreement subject to the terms and conditions set forth therein.
WHEREAS, the City Manager recommends execution of the attached
Reinstatement Agreement and the City Attorney has approved it as
to form.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA that the Mayor is hereby
authorized to execute the Reinstatement Agreement attached hereto
among Generalbank, a Federal Savings Bank, the City of Miami Beach,
Barnett Bank of South Florida, N. A. , Yrbit, S.A. , and Jose A.
Herrera, Individually.
PASSED and ADOPTED this 26th day of July , 1989.
/ "I"
'►•YOR
ATTEST:
L.9d)
FORM APPROVED
CITY CLERK
LEGAL DEPT,
070389
sy
Date
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2
REINSTATEMENT AGREEMENT
This Reinstatement Agreement entered into this 28th day of
July , 1989, 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, individually.
WITNESSETH:
WHEREAS, MORTGAGOR is the long term lessee of the following
described property:
Lots 7 and 8 and the East 39 feet of Lot 9 in
Block 3 of Ocean Front Property of the Miami
Beach Improvement Co. Subdivision according to
the plat thereof, recorded in Plat Book 5,
pages 7 and 8, of the Public Records of Dade
County, Florida (the "Property") , and
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, encumbering MORTGAGOR's leasehold interest
in the property, and
WHEREAS, on the 20th day of May, 1987, GENERAL, the CITY and
MORTGAGOR did enter into a Subsidy Agreement (the "Subsidy
Agreement") , which agreement was recorded in Official Records Book
13293 , at Page 3385 of the Public Records of Dade County, Florida,
and
WHEREAS, on or about the 5th day of May, 1988 , GENERAL, the
CITY, MORTGAGOR, BARNETT and JOSE A. HERRERA entered into a Consent
to Leasehold Mortgage, Default Notification Agreement and
Ratification of Subsidy Agreement (the "Consent Agreement") , which
agreement was recorded in Official Records Book 13685, at Page 290
of the Public Records of Dade County, Florida and
WHEREAS, BARNETT is the owner and holder of that certain
1
Leasehold Mortgage dated the 17th day of May, 1988 , executed by
MORTGAGOR in favor of BARNETT, recorded in Official Records Book
13 685 at Page 266 of the Public Records of Dade County, Florida,
and
WHEREAS, the Consent Agreement provided in Paragraph 12
thereof that the construction on the property was to be completed
on or before November 1, 1988, and
WHEREAS, Paragraph (19) (a) of the Subsidy Agreement also
provided, as such paragraph was amended by the Consent Agreement,
:hat the construction on the property was to be completed on or
before November 1, 1988 , and
WHEREAS, on or about November 2 , 1988, the City issued a
Notice of Default letter providing thirty (3 0) days for cure of the
default or the City would terminate the Subsidy Agreement and the
Consent Agreement and seek the recovery of all interest subsidy
funds, and
WHEREAS, on or about December 16, 1988 the City terminated the
Subsidy Agreement for failure to cure the default, and
WHEREAS, on or about January 9, 1989 , GENERAL requested an
extension of time for recall of the interest subsidy funds and
WHEREAS, by subsequent correspondence the City extended the
recall date to May 15, 1989, and
WHEREAS, the City of Miami Beach Building Department issued
its Certificate of Completion No. 88046 on May 15, 1989, and
WHEREAS, on or about April 14 , 1989 GENERAL requested
reinstatement of the Subsidy Agreement, and
WHEREAS, the parties wish to reinstate the Subsidy 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 . The parties hereby agree that the Subsidy Agreement is
reinstated retroactive to the date of termination.
3 . The City agrees to disburse the remaining undisbursed
2
interest subsidy funds at such time as the MORTGAGOR complies with
the following:
a. Submittal to the City and approval by the City of
all documentation satisfactory to the City for compliance with
Federal Labor standards.
b. Provide the City documentation acceptable to the
City that the Property is free and clear of mechanics,
materialman' s or any other type of lien or obligation relating to
the construction.
c. Submittal to the City of an implementation plan
acceptable to the City for rehabilitation of the commercial space
on the Property and approval of such plan by the City' s Loan Review
Committee.
The failure of the Mortgagor to provide the above
documentation to the City within thirty (30) days of execution of
the Reinstatement Agreement by all parties, may, at the option of
the City, be declared a default of the Subsidy Agreement.
4 . Except as modified herein and except as modified by the
Consent Agreement, the terms and conditions of the Subsidy
Agreement shall continue in full force and effect.
5. 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 26th day of July , 1989 .
Witnessed By: GENERALBANK,
a F eral Savings Bank
As I s: ---(r)r br Vi e1.i
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ATTEST:
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CITY CLERK -7/ ,//i�
BA: ETT BA K OF ' OUTH FLORIDA, N.A.
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RBIT,YRBIT, S.A.
V a Pannian corporation
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By: 1
/ JO ' A. HERRERA,' \President
,1 (... )
, ..epet ( ____a-Ki.A,ut,
,:5-, /0t J S A. HERRERA Individually
STATE OF FLORIDA)
) ss:
COUNTY OF DADE )
BEFORE M , the undersigned authority, personally appeared,
oe I1 e V4 11/tY71Ve., as a Vice President of GENERALBANK, a Federal
Savings Bank, who, being first duly sworn, acknowledged before me
that he executed the foregoing instrument for the purposes therein
expressed.
WITNESS my hang and official seal at said County and State,
this /)day of -0,v(7 , 1989 . _ [
'2?______ ZZ' ________
NOTARY PUBLIC, State of Florida
My Commission Expires:
STATE OF FLORIDA)
) ss:
COUNTY OF DADE )
BEFORE ME, the undersigned authority, personally appeared,
A`-c, T ,..cA as Mayor of THE CITY OF MIAMI BEACH,
who, being first duly sworn, acknowledged before me that he
executed the foregoing instrument for the purposes therein
expressed.
WITNESS my hand and official seal at said County and State,
this 3W- day of 13 , 1989 .
4c/(^
NOTARY PUBLIC - State of Florida
My Commission Expires -
MAW/
xpires - F O 1i'1W F U&;.C S tt,r i:! F L'D 1 ti WA
iff CLN;f1S5{O t?.LJ. kfT...!'.!,!4i
4 Ba►Jzu wmi UE FNAL INS. c'rr_:.
STATE OF FLORIDA)
ss:
COUNTY OF DADE )
BEFORE ME, the undersigned authority, personally appeared,
JA-co P L ,� �_�I as a V i`c (2,-( <<,(r��.,� of BARNETT BANK
OF SOUTH FLORIDA, N.A. , who, being first duly sworn, acknowledge
before me that he executed the foregoing instrument for the
purposes therein expressed.
WITNESS my hand apd official seal at said County and State,
this day of , 1989.
NOTARY T i BLIC - ;te of Florida
My Commission Expires: N R_
STATE OF FLORIDA)
) ss:
COUNTY OF DADE )
t3EFORE 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.
WITNESS my hand and official seal at said County and State,
this -7 day of Sv y , 1989 .
te
NOTARY - State of Florida
My Commission Expires
NOTARY PUBLIC STATE OF FLORIDA
IlY CaliliSSION EXP.NOV.22,1992
BONDED 1' i:';.! ..A?INS.UND.
070689
5
COMMISSION AGENDA
SUMMARY
REINSTATEMENT OF THE SUBSIDY AGREEMENT FOR
THE PALM COURT APARTMENTS
The Rental Rehabilitation Program provides an interest subsidy
payment, to buy down the interest rate on loans, for the
rehabilitation of multi-family rental apartments.
On May 20, 1987 , the City entered into a Subsidy Agreement with
General Bank and YRBIT, S.A. , for the purpose of providing
financial assistance on the rehabilitation of the Palm Court
Apartments at 309 23rd Street. Subsequently, additional funds were
provided by Barnett Bank, and a Consent Agreement was executed on
May 5, 1989.
Both Agreements required that the rehabilitation of the property
be completed on or before November 1, 1988, but such deadline was
not met by the owner. The City started the default procedures, and
on December 16, 1988, the Subsidy Agreement was terminated, and the
return of the interest subsidy funds was requested. On January 9,
1989, General Bank requested an extension of time for the return
of the funds and the City agreed to the same. By subsequent
correspondence the City extended the recall date to May 15, 1989 .
On April 14, 1989, General Bank requested the reinstatement of the
Subsidy Agreement by the City, and on May 15, 1989, a Certificate
of Completion was issued by the City's Building Department.
ADMINISTRATION RECOMMENDATION:
The City's Loan Review Committee has reviewed and approved the
Reinstatement Agreement. The Administration recommends the approval
of the Reinstatement Agreement, and that the Mayor and City Clerk
be authorized to execute such document.
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S*iINCORP!ORATED -orVA CA TIONLANIS U. S. A. w`M
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OFFICE OF THE CITY MANAGER CITY HALL
ROB W.PARKINS 1700 CONVENTION CENTER DRIVE
CITY MANAGER TELEPHONE: 673-7010
COMMISSION MEMORANDUM NO. '31 Ct ri
DATE: July 12 , 1989
TO: Mayor Alex D•, • • and
Members o e City Com •s- •
‘`jib•"
OM: Rob W. P. ins
0
City ,Manager .,
SUBJECT: REINSTAT v OF THE SUBSIDY AGREEMENT FOR THE PALM COURT
APARTMENTS
The City, through the Rental Rehabilitation Program, provides
owners of multi-family rental apartments, funds for financing
improvements to their properties.
On May 20, 1987 , the City entered into a Subsidy Agreement with
General Bank and YRBIT, S.A. , for the purpose of providing
financial assistance on the rehabilitation of the Palm Court
Apartments at 309 23rd Street. Subsequently, additional funds were
provided by Barnett Bank, and a Consent Agreement was executed on
May 5, 1989.
Both Agreements required that the rehabilitation of the property
be completed on or before November 1, 1988 , but such deadline was
not met by the owner. The City started the default procedures, and.
on December 16, 1988 , the Subsidy Agreement was terminated, and the
return of the interest subsidy funds was requested. On January 9 ,
1989, General Bank requested an extension of time for the return
of the funds and the City agreed to the same. By subsequent
correspondence the City extended the recall date to May 15, 1989 .
On April 14, 1989, General Bank requested the reinstatement of the
• Subsidy Agreement by the City, and on May 15, 1989 , a Certificate
of Completion was issued by the City' s Building Department.
ADMINISTRATION RECOMMENDATION:
The Administration, having received the endorsement of the City' s
Loan Review Comittee, recommends the approval of the Reinstatement
Agreement, and that the Mayor and City Clerk be authorized to
execute such document.
RW P/j e f
I
AGENDA
ITEM a_...,.2.4._ A,
---2-2 ,,-q--
DAT E
ORIGINAL
RESOLUTION NO. 89-19673
Authorizing the Mayor to execute a rein-
statement agreement among Generalbank, a
federal savings bank, the City of Miami
Beach, Barnett Bank of South Florida, N.A.
Yrbit, S.A. and Jose A. Herrera, individ-
ually, relating to the Palm Court Apart-
ments located at 309 - 23rd Street, Miami
Beach, Florida.