94-21172 RESO Incomplete
RESOLUTION NUMBER
94-21172
A RESOLUTION OF THE MAYOR AND CITY COMMISSION APPROVING
AND AUTHORIZING SETTLEMENT OF A DEFAULT UNDER THE MULTI-
FAMILY RESIDENTIAL REHABILITATION LOAN AGREEMENT BETWEEN
THE CITY OF MIAMI BEACH AND WINDSOR PLAZA ASSOCIATES,
LTD., DATED MARCH 13, 1985, COVERING THE PROPERTY AT 1320
DREXEL AVENUE, KNOWN AS THE WINDSOR PLAZA APARTMENTS,
SUCH SETTLEMENT IN THE AMOUNT OF $143,061, AND FURTHER
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE
ATTACHED RELEASE AND SATISFACTION OF THE MULTI-FAMILY
RESIDENTIAL REHABILITATION LOAN AGREEMENT AND SETTLEMENT
AGREEMENT, RESPECTIVELY, BOTH TO BE HELD BY THE CITY
ATTORNEY'S OFFICE UNTIL RECEIPT OF THE $143,061
SETTLEMENT AMOUNT, WHICH SHALL BE DUE AND PAYABLE ON OR
BEFORE JULY 15, 1994
WHEREAS, the city, through
Development Division, administers
affordable housing programs; and
the Housing and community
various Federally funded
WHEREAS, the Multi-family Rehabilitation programs provide the
financial assistance necessary to undertake rehabilitation of
buildings in order to provide decent, safe and sanitary affordable
rental housing for low- and moderate income individuals; and
WHEREAS, the funding for these programs comes from the U.s.
Department of Housing and Urban Development (HUD); and
WHEREAS, on March 13, 1985, the city of Miami Beach entered
into a Multi-unit Residential Rehabilitation Loan Agreement (the
Agreement) with Windsor Plaza Associates, Ltd., a Florida Limited
Partnership (Owner), and with the lender, International Savings and
Loan Association, in the amount of $143,061, for rehabilitation of
the property at 1320 Drexel Avenue, also known as The Windsor Plaza
Apartments (the Property); and
WHEREAS, the City, through the Federally funded MUlti-Family
Rental Rehabilitation Program (RRP), provided funds to rehabilitate
the Property; and
WHEREAS, under the Rental Rehabilitation Program (RRP)
statutes and regulations, the Owner is required to maintain the
units in rental use for a ten (10) year period and may not convert
to condominiums and a failure to do so results in repayment of all
or a portion of the original subsidy; and
WHEREAS, the Owner failed to maintain the Property as a
rental use property and in fact proposes to convert to
condominiums; and
WHEREAS, the Federal regulations governing the repayment of
subsidy funds provide that for projects containing 25 or more
units, the full amount of the original subsidy must be repaid to
the City; and
WHEREAS, the Property contains 29 units, therefore requlrlng
that the full subsidy, in the amount of $143,061, be repaid to the
City; and
WHEREAS, the Owner has agreed to cure the default under the
Agreement by repaying the funds to the City on or before July 15,
1994, as required by the Federal regulations; and
WHEREAS, upon receipt of the aforestated payment, in
settlement of the default under the Agreement, the city will
provide the attached Release to the Owner evidencing satisfaction
of the Owner's obligation under the Agreement; and
WHEREAS, the attached Release shall only release the Owner as
to its default under the Agreement, and shall not release, nor act
as a bar to any of the City's rights and remedies therein, from any
liability that the Owner may have as to payment to the city of code
enforcement liens, fire code violation fines, license fees or other
liens on the property, as memorialized in the attached Settlement
Agreement.
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 default under
the Multi-family Residential Rehabilitation Loan Agreement between
the City and Windsor Plaza Associates, Ltd., dated March 13, 1985,(
covering the property at 1320 Drexel Avenue, known as the Windsor
Plaza Apartments, such settlement in the amount of $143,061, and
further authorizing the Mayor and city Clerk to execute the
attached Release and Satisfaction of the MUlti-Family Residential
Rehabilitation Loan Agreement and Settlement Agreement,
respectively, both to be held by the City Attorney's office until
receipt of the $143,061 settlement amount, which shall be due and
payable on or before July 15, 1994.
PASSED AND ADOPTED THIS 1st DAY OF
June
ATTEST:
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CITY CLERK
Date
SETTLEMENT AGREEMENT
This Agreement, made and entered into this _ day of , 1994, by and
between the City of Miami Beach, a municipal corporation (hereinafter referred to as City),
and Windsor Plaza Associates, Ltd., a Florida Limited Partnership, (hereinafter referred to as
Owner):
WITNESSETH
WHEREAS, on March 13, 1985, the City of Miami Beach entered into a Multi-Unit
Residential Rehabilitation Loan Agreement (the Agreement) with Windsor Plaza Associates,
Ltd., a Florida Limited Partnership (Owner), and with the Lender, International Savings and
Loan Association, in the amount of $143,061.00 (the Subsidy), for rehabilitation of Apartments
at 1320 Drexel Avenue, also known as The Windsor Plaza apartments (the Property); and
WHEREAS, the City, through the Federally funded Multi-family Rental Rehabilitation
Program (RFP), provided funds to rehabilitate the Property; and
WHEREAS, under the Rental Rehabilitation Program (RFP) statutes and regulations, the
Owner was required to maintain the units in rental use for a ten (10) year period and may not
convert to condominiums, with a failure to do so resulting in repayment of all or a portion of
the original Subsidy; and
WHEREAS, the Owner failed to maintain the Property as a rental use property and in
fact proposes to convert to condominiums, thus resulting in a default under the Agreement;
and
WHEREAS, the Federal regulations governing the repayment of subsidy funds provide
that for projects containing 25 or more units, the full amount of the original subsidy must be
repaid to the City; and r;I)
WHEREAS, the Property conta~9 units, therefore requiring that the full Subsidy, in
the amount of $143,061.00, be repaid to the City; and
WHEREAS, pursuant to settlement negotiations between the City and the Owner to
cure the default under the Agreement and amicably settle this matter in a manner not only
satisfactory to the City, but also to the United States Department of Housing and Urban
Development (HUD), the provider of the funds, the Owner has agreed to cure the default
under the Agreement, subject to the terms and conditions set forth below.
NOW THEREFORE, in consideration of the mutual covenants herein contained, and
other good and valuable consideration, the receipt of which is hereby acknowledged, the
parties agree as follows:
1) Owner agrees to cure the default under the Agreement by repaying the full
Subsidy amount therein, in the amount of $143,061.00, on or before July 15,
1994.
2) Upon receipt of the aforestated Subsidy payment, the City shall provide Owner
with an executed copy of a Release and Satisfaction of Subsidy Agreement, as
conditionally approved by the Mayor and City Commission on June 1, 1994;
an unexecuted copy of same is attached hereto and incorporated herein.
3) Notwithstanding the foregoing, the attached Release and Satisfaction of Subsidy
Agreement (Release), when executed, upon receipt of payment in full by
Owner, shall only evidence satisfaction of Owner's obligations under the
Agreement, and shall in no way evidence satisfaction or release of any
obligations or duties that Owner presently has as to certain Notice of Liens filed
against Owner by the City of Miami Beach, Code Enforcement Board (Case
Nos. 92-12, 92-116 and 92-302) nor shall the attached Release act as a bar or
waiver, in any way, to the City's rights to enforce and/or administer payment or
collection of same.
4) The parties declare that all of the terms and conditions as set forth herein are
material terms and conditions and any breach thereof shall be considered a
material default of this Settlement Agreement and shall render the settlement
outlined herein, and as conditionally approved by the Mayor and City
Commission on June 1, 1994, null and void.
IN WITNESS WHEREOF, the parties hereto have caused these presents to be signed by
the respective duly authorized officers, and the respective corporate seals to be affixed this
day of ,19_
CITY:
Mayor
City Clerk
OWN ER:
WINDSOR PLAZA ASSOCIAT,.fS, LTD.
/'
Bv:/l
ATTEST:
Secretary
Print Name and Title
RJNcnm
RJAdsk 1 \Windsor.agt\6-8-94
Corporate Seal
D8I8
2
SETTLEMENT AGREEMENT
This Agreement, made and entered into this _ day of , 1994, by and
between the City of Miami Beach, a municipal corporation (hereinafter referred to as City),
and Windsor Plaza Associates, Ltd., a Florida Limited Partnership, (hereinafter referred to as
Owner):
WITNESSETH
WHEREAS, on March 13, 1985, the City of Miami Beach entered into a Multi-Unit
Residential Rehabilitation Loan Agreement (the Agreement) with Windsor Plaza Associates,
Ltd., a Florida Limited Partnership (Owner), and with the Lender, International Savings and
Loan Association, in the amount of $143,061.00 (the Subsidy), for rehabilitation of Apartments
at 1320 Drexel Avenue, also known as The Windsor Plaza apartments (the Property); and
WHEREAS, the City, through the Federally funded Multi-family Rental Rehabilitation
Program (RFP), provided funds to rehabilitate the Property; and
WHEREAS, under the Rental Rehabilitation Program (RFP) statutes and regulations, the
Owner was required to maintain the units in rental use for a ten (10) year period and may not
convert to condominiums, with a failure to do so resulting in repayment of all or a portion of
the original Subsidy; and
WHEREAS, the Owner failed to maintain the Property as a rental use property and in
fact proposes to convert to condominiums, thus resulting in a default under the Agreement;
and
WHEREAS, the Federal regulations governing the repayment of subsidy funds provide
that for projects containing 25 or more units, the full amount of the original subsidy must be
repaid to the City; and t
WHEREAS, the Property contai~9 units, therefore requiring that the full Subsidy, in
the amount of $143,061.00, be repaid to the City; and
WHEREAS, pursuant to settlement negotiations between the City and the Owner to
cure the default under the Agreement and amicably settle this matter in a manner not only
satisfactory to the City, but also to the United States Department of Housing and Urban
Development (HUD), the provider of the funds, the Owner has agreed to cure the default
under the Agreement, subject to the terms and conditions set forth below.
NOW THEREFORE, in consideration of the mutual covenants herein contained, and
other good and valuable consideration, the receipt of which is hereby acknowledged, the
parties agree as follows:
1) Owner agrees to cure the default under the Agreement by repaying the full
Subsidy amount therein, in the amount of $143,061.00, on or before July 15,
1994.
2) Upon receipt of the aforestated Subsidy payment, the City shall provide Owner
with an executed copy of a Release and Satisfaction of Subsidy Agreement, as
conditionally approved by the Mayor and City Commission on June 1, 1994;
an unexecuted copy of same is attached hereto and incorporated herein.
3) Notwithstanding the foregoing, the attached Release and Satisfaction of Subsidy
Agreement (Release), when executed, upon receipt of payment in full by
Owner, shall only evidence satisfaction of Owner's obligations under the
Agreement, and shall in no way evidence satisfaction or release of any
obligations or duties that Owner presently has as to certain Notice of Liens filed
against Owner by the City of Miami Beach, Code Enforcement Board (Case
Nos. 92-12, 92-116 and 92-302) nor shall the attached Release act as a bar or
waiver, in any way, to the City's rights to enforce and/or administer payment or
collection of same.
4) The parties declare that all of the terms and conditions as set forth herein are
material terms and conditions and any breach thereof shall be considered a
material default of this Settlement Agreement and shall render the settlement
outlined herein, and as conditionally approved by the Mayor and City
Commission on June 1, 1994, null and void.
IN WITNESS WHEREOF, the parties hereto have caused these presents to be signed by
the respective duly authorized officers, and the respective corporate seals to be affixed this
day of , 19
CITY:
Mayor
City Clerk
Secretary
WIND?~\P~,ASSO~7'
By: Itfl ~~
Presi~ent / Pkr14~~~'
ft4at (;)f)~~/, ~
Print Name and Title
OWNER:
ATTEST:
RJNcnm
RJAdsk 1 \Windsor.agt\6-8-94
Corporate Seal
2
SETTLEMENT AGREEMENT
This Agreement, made and entered into this _ day of , 1994, by and
between the City of Miami Beach, a municipal corporation (hereinafter referred to as City),
and Windsor Plaza Associates, Ltd., a Florida Limited Partnership, (hereinafter referred to as
Owner):
WITN ESSETH
WHEREAS, on March 13, 1985, the City of Miami Beach entered into a Multi-Unit
Residential Rehabilitation Loan Agreement (the Agreement) with Windsor Plaza Associates,
Ltd., a Florida Limited Partnership (Owner), and with the Lender, International Savings and
Loan Association, in the amount of $143,061.00 (the Subsidy), for rehabilitation of Apartments
at 1320 Drexel Avenue, also known as The Windsor Plaza apartments (the Property); and
WHEREAS, the City, through the Federally funded Multi-family Rental Rehabilitation
Program (RFP), provided funds to rehabilitate the Property; and
WHEREAS, under the Rental Rehabilitation Program (RFP) statutes and regulations, the
Owner was required to maintain the units in rental use for a ten (10) year period and may not
convert to condominiums, with a failure to do so resulting in repayment of all or a portion of
the original Subsidy; and
WHEREAS, the Owner failed to maintain the Property as a rental use property and in
fact proposes to convert to condominiums, thus resulting in a default under the Agreement;
and
WHEREAS, the Federal regulations governing the repayment of subsidy funds provide
that for projects containing 25 or more units, the full amount of the original subsidy must be
repaid to the City; and 1f1J
WHEREAS, the Property contai~ units, therefore requiring that the full Subsidy, in
the amount of $143,061.00, be repaid to the City; and
WHEREAS, pursuant to settlement negotiations between the City and the Owner to
cure the default under the Agreement and amicably settle this matter in a manner not only
satisfactory to the City, but also to the United States Department of Housing and Urban
Development (HUD), the provider of the funds, the Owner has agreed to cure the default
under the Agreement, subject to the terms and conditions set forth below.
NOW THEREFORE, in consideration of the mutual covenants herein contained, and
other good and valuable consideration, the receipt of which is hereby acknowledged, the
parties agree as follows:
1) Owner agrees to cure the default under the Agreement by repaying the full
Subsidy amount therein, in the amount of $143,061.00, on or before July 15,
1994.
2) Upon receipt of the afore stated Subsidy payment, the City shall provide Owner
with an executed copy of a Release and Satisfaction of Subsidy Agreement, as
conditionally approved by the Mayor and City Commission on June 1, 1994;
an unexecuted copy of same is attached hereto and incorporated herein.
3) Notwithstanding the foregoing, the attached Release and Satisfaction of Subsidy
Agreement (Release), when executed, upon receipt of payment in full by
Owner, shall only evidence satisfaction of Owner's obligations under the
Agreement, and shall in no way evidence satisfaction or release of any
obligations or duties that Owner presently has as to certain Notice of Liens filed
against Owner by the City of Miami Beach, Code Enforcement Board (Case
Nos. 92-12, 92-116 and 92-302) nor shall the attached Release act as a bar or
waiver, in any way, to the City's rights to enforce and/or administer payment or
collection of same.
4) The parties declare that all of the terms and conditions as set forth herein are
material terms and conditions and any breach thereof shall be considered a
material default of this Settlement Agreement and shall render the settlement
outlined herein, and as conditionally approved by the Mayor and City
Commission on June 1, 1994, null and void.
IN WITNESS WHEREOF, the parties hereto have caused these presents to be signed by
the respective duly authorized officers, and the respective corporate seals to be affixed this
day of ,19_.
CITY:
Mayor
City Clerk
OWNER:
OATES, LTD.
ATTEST:
Secretary
Print Name and Title
RJNcnm
RJAdsk 1\Windsor.agt\6-8-94
Corporate Seal
2
CITY OF
MIAMI
BEACH
CTY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH "'LORiDA 33'39
OFFICE OF THE CITY MANAGER
TELEPHONE: (305) 673-7010
FAX: (305) 673- 7782
COMMISSION MEMORANDUM NO. ~05-CJV
TO:
Mayor Seymour Gelber and
Members of the City Commission
DATE:
June 1, 1994
FROM:
Roger M, C
City Manager
SUBJECT:
RESOLUTIONS AUTHORIZING SETTLEMENT OF DEFAULTS UNDER THE
CITY'S FEDERALLY FUNDED MULTI-UNIT REHABILITATION PROGRAMS,
FOR: WINDSOR PLAZA APARTMENTS (1320 DREXEL AVENUE), IN THE
AMOUNT OF $l43,06l, AND ESPLANADE APARTMENTS, (1569-1575
MICHIGAN AVENUE &: 934 16TH STREET), IN THE AMOUNT OF
$18,083.10; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK
TO EXECUTE RELEASE AND SATISFACTION OF THE RESPECTIV~
AGREEMENTS BETWEEN THE CITY AND THE OWNERS UPON RECEIPT OF THE
AGREED-UPON PAYMENTS
ADMINISTRATION RECOMMENDATION:
It is recommended that the Mayor and City Commission adopt the
attached Resolutions authorizing settlement of defaults under the
City administered Multi-family Housing Rehabilitation Program
Subsidy Agreements for the Windsor Plaza Apartments , located at
1320 Drexel Avenue, and the Esplanade Apartments located at 1569
and 1575 Michigan Avenue/934 16th Street. Further, it is requested
that the Mayor and City Clerk be authorized to execute the Release
and Satisfaction of Agreements upon receipt by the City of the
agreed-upon payments in full.
BACKGROUND:
The City, through the Housing and Community Development Division,
administers various federally funded affordable housing programs.
The Multi-family Rehabilitation programs provide the financial
assistance necessary to undertake rehabilitation of buildings in
order to provide decent, safe and sanitary affordable rental
housing for low and moderate income individuals. The City has
offered this financial assistance for the past ten (10), years
resulting in the successful renovation of over 1,000 units of
rental housing.
The funds for these programs come directly to the City from the
U. S. Department of Housing and Urban Development (HUD). The
guidelines for these programs require that the buildings be
maintained in rental use for a specified period of time. The
City's Subsidy Agreements include stipulations requiring repayment
to the City if the owner fails to perform requirements of the
Agreement.
In the event of a default, the federal regulations provide that: a)
the subsidy amount be repaid in full if the project contains 25 or
more units and, b) if a project contains less than 25 units, only
a prorated portion of the subsidy must be repaid. (The regulations
provide the formula for repayment.)
1
AGENDA
ITEM
r-~-A
,
DATE~
COMMISSION MEMO
JUNE 1, 1994
PAGE 2
Under the Rental Rehabilitation Program (RRP) , the owner must
maintain the units in rental use for a 10 year period and may not
convert to condominiums. Failure to do so results in repayment of
all or a portion of the original subsidy.
ANALYSIS:
The owners of two (2) buildings that were renovated through this
program were notified that the projects were in default of the
obligations under their respective agreements. Staff from the
City's Housing and Community Development Division and the City
Attorney's office have successfully negotiated the return of the
full amount of the subsidy payments as provided under the
agreements and as provided by the federal regulations.
The owners' representative has cooperated fully in resolving this
matter, and is anxious to comply with the repayment requirements.
The specific projects and the repayment terms are as follows:
. Windsor Plaza Apartments - 1320 Drexel Avenue: On March 13,
1985, the City of Miami Beach entered into an agreement
entitled: "MULTI -UNIT RESIDENTIAL REHABILITATION LOAN
AGREEMENT", with Windsor Plaza Associates, Ltd., a Florida
Limited Partnership (owner) , and with the lender,
International Savings and Loan Association in the amount of
$143,06l.
The City, through the federally funded Multi-Family Rental
Rehabilitation Program (RRP) , provided funds to rehabilitate
the referenced property in the amount of $143,061. The
terms for this repayment are articulated in the attached
letter from the owner's attorney.
The owner failed to maintain this building in its rental use
and proposes to convert to condominiums. Therefore, since
this project contains more than 25 units, the full amount of
the subsidy will be repaid to the City on or before July 15,
1994.
. Esplanade Apartments - 934 16th Street/1569 and 1575 Michigan
Avenue: On October 25, 1988, the City of Miami Beach entered
into an agreement entitled: "SUBSIDY AGREEMENT", with
Esplanade Associates, Ltd., a Florida Limited Partnership
(Owner), and with the lender, Pan American Mortgage Corp. The
Agreement relates to the property located at 900 16th Street
which was funded through the Federal CDBG Program as well as
934 l6th Street/ 1569 and 1575 Michigan Avenue, funded through
the RRP program. (Separate buildings were funded through
different federal programs - both CDBG and HUD-authorized RRP
funds were used for the renovation of these properties) .
The RRP program, which has a federal prohibition against
condominium conversion for a 10 year period, provided
financing in the amount of $61,947.
The owner of this property has filed a petition in Bankruptcy
Court under Chapter 11 of the Federal Bankruptcy Act. Filing
such a petition constitutes a default of the City's Agreement.
Therefore, since this project contains less than 25 units,
only a prorated portion of the subsidy, in the amount of
$18,083.10, will be repaid to the City on or before August 1,
1994. The terms for this repayment are articulated in the
attached letter from the General Partner. (The CDBG
provisions of the subsidy have been fully satisfied.)
"
-
COMMISSION MEMO
JUNE 1, 1994
PAGE 3
The owners have agreed to cure the defaults under each of the
Agreements by repaying the funds to the City as required by the
federal regulations. Upon receipt of the payments for the above
described projects, the City will provide the standard Releases of
Lien to the owners, which will evidence satisfaction of the owner's
obligation thereunder.
CONCLUSION:
It is recommended that the Mayor and City commission adopt the
attached Resolutions authorizing settlement of defaults under the
Mul ti _ family Rehabil i tation Program Subsidy Agreements and
authorizing the Mayor and City Clerk to execute the attached
Release and Satisfaction of Loan Agreements, upon receipt by the
city of the agreed-upon payments in full
RMC/STP/me
Attachments
3