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93-20971 Reso RESOLUTION NUMBER 93-20971 A RESOLUTION OF THE MAYOR AND CITY COMMISSION AUTHORIZING THE ADMINISTRATION TO PROCEED WITH THE MOSAIC MUSEUM'S REQUEST FOR A LOAN IN THE AMOUNT OF $500, 000 FROM RESORT TAX FUNDS TO ASSIST IN THE RENOVATION OF CONGREGATION BETH JACOB AS A PERMANENT HOME FOR THE MOSAIC COLLECTION. WHEREAS, the City of Miami Beach is supportive of the efforts by Mosaic, Inc . to renovate the facility known as Congregation Beth • Jacob located at 301 Washington Avenue to become a permanent home of the Mosaic collection; and WHEREAS, Mosaic, Inc . has requested a loan in the amount of $500, 000 to facilitate renovations in a timely manner; and WHEREAS, said funds are available and may be accessed from Resort Tax funds and will be fully repaid within ten years in accordance with the terms described in the attached memorandum. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that : 1 . The Mayor and City Commission hereby authorize the Administration to proceed with the Mosaic Museum' s request for a loan from Resort Tax Funds in the amount of $500, 000, based on terms expressed in the memorandum attached hereto as "Exhibit A" . 2 . Any loan agreement between t - ity and Mosa ' c, Inc . shall be reviewed and approved by the Mayo and City Commssion. PASSED AND ADOPTED this 17A day of No e;be, 1993 . Ad\ 4 MAYOR ATTEST: FORM APPROVED LA / EPT. CITY CLERK EG` �� �9O By d �! RMC/MD: svh Date 7/ / /6^ / _.3 ` . 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. - ,.3 TO: Mayor Seymour Gelber and DATE: November 17 , 1993 Members of the City Commission FROM: Roger M. City Manage SUBJECT: AUTHORIZATION TO PROCEED WITH THE MOSAIC MUSEUM'S REQUEST FOR A $500, 000 LOAN FROM THE CITY OF MIAMI BEACH TO FURTHER ASSIST IN RENOVATION OF THE CONGREGATION BETH JACOB AS A PERMANENT HOME FOR THE MOSAIC COLLECTION. ADMINISTRATION RECOMMENDATION: The Administration recommends authorization to proceed with the Mosaic Museum' s request for a $500, 000 loan -from the City of Miami Beach to complete renovation of the Congregation Beth Jacob as a permanent home for the Mosaic collection. BACKGROUND: In Commission Memorandum No. 531-93 , dated September 22, 1993 , a copy of which is attached, the request for a loan in the amount of $500, 000 was discussed and referred to the Finance Committee for review. At the October 12, 1993. meeting, the Finance Committee authorized the Administration to proceed to discuss this matter • with representatives of Mosaic, Inc .. and present a conceptual plan to the Commission on the terms and conditions of this loan. On November 3 , 1993, the Administration met with representatives of Mosaic, Inc. to discuss the terms of this loan. The conceptual plan consists of a loan in the amount of $500, 000 from Resort Tax Funds . Mosaic, Inc . will obtain pledges and a Letter of Credit as guarantees to the City insuring repayment of the loan. A ten year loan with an adjustable rate of interest was proposed with 4% interest only payment the first year, 5% interest plus $25, 000 principle payment the second year, and the payment for the remaining eight years to consist of interest at prime not to exceed 8% with a principle amount at $59, 375 per year. Pending Commission approval-of this concept, the City will initiate preparation of loan documents . These documents will be submitted to the Commission for approval at the December 15, 1993 meeting. CONCLUS I ON: This loan will enable the museum to be completed no later than December 1994 . It is an appropriate use of Resort Tax Funds to develop tourism-related facilities such as the Mosaic Museum and, in this case, those funds will be repaid with interest . RMC/MD/sh Attachments g7 AGENDA ITEM 1 l lllJ/J��VJJ • DATE HIr793