98-22707 RESO
RESOLUTION NO. 98-22707
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA AUTHORIZING THE CITY TO
EXTEND THE MATURITY OF THE CITY'S LOAN IN THE AMOUNT OF
TWENTY MILLION DOLLARS ($20,000,000.00) TO THE MIAMI BEACH
REDEVELOPMENT AGENCY, PURSUANT TO THE PROMISSORY NOTE
ATTACHED HERETO AND INCORPORATED HEREIN.
WHEREAS, the Miami Beach Redevelopment Agency (the "RDA") has entered into an
agreement with MB Redevelopment, Inc., an entity affiliated with Loews Hotels Holding
Corporation, which requires the RDA to fund certain monies in connection with the Loews Miami
Beach Hotel project (the "Hotel") and the public parking garage project (the "Public Garage") at 16th
Street between Collins and Washington Avenues; and
WHEREAS, a portion of the monies for such funding were proposed to be obtained in
connection with a Section 108 guaranteed loan in the amount often million dollars ($10,000,000.00)
from the U.S. Department of Housing and Urban Development; and
WHEREAS, as of the current date, neither the City of Miami Beach, Florida (the "City")
nor the RDA has received those funds; and
WHEREAS, construction on the Hotel and the Public Garage has already started; and
WHEREAS, it is the desire of the City and the RDA that development and construction of
the Hotel and Public Garage proceed expeditiously; and
WHEREAS, the City desires to continue to provide a line of credit in the amount of twenty
million dollars ($20,000,000.00) to the RDA, in order to allow the RDA to meet its funding
obligations concerning the Hotel, the Public Garage and other projects, such as the African-
American owned hotel project; and
WHEREAS, the RDA has previously borrowed money pursuant to that line of credit; and
WHEREAS, the RDA expects to have sufficient bonding capacity to issue bonds on or
before August 1, 1998 in order to repay any amounts owed pursuant to the promissory note, attached
hereto and incorporated herein; and
WHEREAS, the promissory note, a copy of which is attached hereto and incorporated
herein, contains the terms of the line of credit; and
WHEREAS, it is necessary and desirable to extend the maturity date of said promissory note
to August 1, 1998.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA that:
Section 1. The City is authorized to extend the maturity date of its loan to the
RDA, dated November 20, 1996 and the amount of twenty million dollars ($20,000,000.00) under
a line of credit to August 1, 1998. Such extension shall be accomplished by typing or otherwise
reproducing the following notation on the bottom of the original of the existing Promissory Note and
having said notation executed by the City and the RDA, respectively:
"Notwithstanding anything to the contrary contained in this Promissory Note, the
date on which this Promissory Note shall be due and payable is hereby extended from April
17, 1998 to August 1, 1998, and all other conditions of this Promissory Note shall remain
in full force and effect.
CITY OF Mu:tM BEACH
BY: '!I!l
Neisen O. Kasdin, Mayor
fu:r~~~
Robert Parcher, City Clerk
The Miami Beach Redevelopment Agency hereby agrees to the extension of the
maturity date of the foregoing Promissory Note to August 1, 1998 and agrees that all other
conditions of this Promissory Note shall remain in full force and effect.
MIAMI BEACH REDEVELOPMENT AGENCY
Neisen O. Kasdin,
BY:
~TTE:r flU~
Jkl Parcher, Secretary"
Section 2. The Mayor and City Clerk are hereby authorized and directed to execute
the notation of the extension of the Promissory Note, as set forth in Section 1 hereof, and to do
all things and execute all documents necessary to carry out the intent of this Resolution.
F: \ATTO\LEVL\RESOf;.ORD\20MILL2. RES
2
Section 3.
This Resolution shall take effect immediately upon its adoption.
PASSED and ADOPTED this 1st day of
April
,1998.
MAyo11
ATTEST:
~rP~
CITY CLERK
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
l/ti ~1L
City Attorney
~'}Y
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\ci.miami-beach.fl.us
COMMISSION MEMORANDUM NO. 2. \ l- 9 8'
TO:
Mayor Neisen O. Kasdin and
Members of the City Commission
DATE: April 1, 1998
FROM: Sergio Rodriguez
City Manager
SUBJECT: Resolution Au orizing the City to Extend the Maturity Date to August 1, 1998
for Its Loan to the Miami Beach Redevelopment Agency Dated November 20,
1996 in the Amount of $20 Million
Administration Recommendation:
Adopt the Resolution.
Funding:
Funding to repay this loan, and all accrued interest, will be provided from the proceeds of a Miami
Beach Redevelopment Agency - City Center (the" RDN') bond issue expected to be closed on or
before August 1, 1998.
Background:
In November 1996, the City provided a line of credit in the amount of twenty million dollars
($20,000,000) to the RDA, for a period of eighteen (18) months, in order to allow the RDA to meet
its funding obligations concerning the Loew's Miami Beach Hotel (the "Hotel"), the Public Garage,
and other projects such as the African-American owned hotel project. To date, the RDA has drawn
ten million five hundred thousand dollars ($10,500,000). The RDA expects to draw down the
balance of nine million five hundred thousand dollars ($9,500,000) to fund the acquisition of the
Shorecrest Hotel property for the African-American Hotel project and to pay the remaining amount
for the construction of the Public Garage.
Analysis:
An underwriting team has been selected and the RDA expects to have sufficient bonding capacity
to issue bonds on or before August 1, 1998 in an amount sufficient to repay all of the amounts
owed pursuant to the promissory note.
Conclusion:
It is recommended that the City Commission authorize the extension of the maturity date to August
1, 1998 for its loan to the RDA. This action will allow the RDA to continue to meet its funding
obligations concerning the Hotel, the Public Garage, and other projects and have sufficient time
to issue bonds to repay the amounts due to the City.
s~lv
241
AGENDA ITEM K l C
DATE 4- -{- 9 'g
ADDENDUM TO PROMISSORY NOTE
Notwithstanding anything to the contrary contained in this Promissory Note, the
date on which this Promissory Note shall be due and payable is hereby extended from April
17, 1998 to August 1, 1998, and all other conditions of this Promissory Note shall remain
in full force and effect.
CITY OF MIAMI BEACH
'diAl
Neisen O. Kasdin, Mayor
BY:
APPROVED AS TO
FORM & lANGUAGE
& FOR EXECUTION
ATTEST:
~6- flU~
Robert Parcher, City Clerk
1~ty~~LL 1F
The Miami Beach Redevelopment Agency hereby agrees to the extension of the
maturity date of the foregoing Promissory Note to August 1, 1998 and agrees that all other
conditions of this Promissory Note shall remain in full force and effect.
MIAMI BEACH REDEVELOPMENT AGENCY
19i1
Neisen O. Kasdin, Chainnan
BY:
ATTEST:
"
APPROVED AS TO
FORM & LANGUAGE
& FOR EXeCUnON
ieoiJfA.!: tfz:7t
Generol r('t~~~r.:! (/J~t'J.~~~{ O{': :~\~E:
~1' p~
Rol)ert t'ar-;her, Secretary
f', \ATTO\ ~ \lU:.SO~IlO\ ~OM I u.... ADD
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i, h"OScJrr PARC!?Ef.-t CItY. Clark ('i Cit:; cf
M;"m~l Bood'1,. f-1M1a~, do hereby ('..~r:.if'1 !t1~;i
the et-ove ar.d 'fof.,:;~J)!ng is.-il'true <1 ;1d ';lJr,~ct
copy of the oi:@nal ther~f on tile in d:IS
office.'".'
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V\lITNI;SS, my hand and 'the-s')al o(s~id City
thJs2~/'tJay of ,41..1 ~ A.D. 19 ~ r~. 7'
. l' .
ROBERT PARCHER
_~C5erf< ~the City of Miami ~each. Florida
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