94-21173 RESO Incomplete
RESOLUTION NUMBER
94-21173
A RESOLUTION OF THE MAYOR AND CITY COMMISSION APPROVING
AND AUTHORIZING SETTLEMENT OF A DEFAULT UNDER THE SUBSIDY
AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND ESPLANADE
ASSOCIATES, LTD., AND SOUTHEAST PROPERTIES GROUP, INC. AS
GENERAL PARTNER, DATED OCTOBER 25, 1988, COVERING THE
PROPERTY AT 1569-1575 MICHIGAN AVENUE & 934 16TH STREET,
KNOWN AS THE ESPLANADE APARTMENTS, SUCH SETTLEMENT IN THE
AMOUNT OF $18,083.10; FURTHER AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE THE ATTACHED RELEASE AND
SATISFACTION OF THE SUBSIDY AGREEMENT, TO BE HELD BY THE
CITY ATTORNEY'S OFFICE UNTIL RECEIPT OF THE $18,083.10
SETTLEMENT AMOUNT, WHICH SHALL BE DUE AND PAYABLE ON OR
BEFORE AUGUST 1, 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 October 25, 1988, the City of Miami Beach entered
into a Subsidy Agreement (the Agreement) with Esplanade Associates,
Ltd., a Florida Limited Partnership (Owner), and with the lender,
Pan American Mortgage Corporation, in the amount of $61,947 for
rehabilitation of the property at 1569-1575 Michigan Avenue and 934
16th Street, also known as the Esplanade 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, a voluntary or involuntary declaration of
bankruptcy is an event of default under the Agreement, and shall
result in repayment of all or a portion of the original subsidy;
and
WHEREAS, the Owner voluntarily filed for a declaration under
the Federal Bankruptcy Act; and
WHEREAS, the Federal regulations governing the repayment of
subsidy funds provide that for projects containing less than 25
units, the amount of the original subsidy to be repaid must be
prorated; and
WHEREAS, the portion of the Property assisted by the
Rental Rehabilitation Program (RRP) contains 12 units; therefore,
pursuant to a settlement reached with the Owner, the prorated
amount of $18,083.10 will be repaid to the City on or before August
1, 1994; and
I
I
,
i
WHEREAS, the Owner has agreed to cure the default under the
Agreement by repaying the funds to the City as required by the
Federal regulations; and
WHEREAS, upon receipt of the afore stated payment for the
Property, 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 the default under the Agreement, and shall not release the
Owner, nor act as a bar to any of the City's rights or remedies
therein, from any liability for payment to the City of other liens
on the Property.
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 Subsidy Agreement between the City and Esplanade Associates,
Ltd., and Southeast Properties Group, Inc. as General Partner,
dated October 25, 1988, covering the property at 1569-1575 Michigan
Avenue and 934 16th Street, known as the Esplanade Apartments, such
settlement in the amount of $18,083.10 and further authorizing the
Mayor and City Clerk to execute the attached Release and
Satisfaction of the Subsidy Agreement, to be held by the City
Attorney's office until receipt of the $18,083.10 settlement
amount, which shall be due and payable on or before August 1, 1994.
PASSED AND ADOPTED THIS
1st
June
, 1994.
ATTEST:
~~ A E-.~~~~
, CITY CLERK -
fORM APPROVED
LEGt,L DEPT.
By
Tvs:>
r"2(-'~
Date
RElEASE AND SATISFACTION OF SUBSIDY AGREEMENT
The CITY OF MIAMI BEACH releases ESPLANADE ASSOCIATES, LTD, SOUTHEAST PROPERTIES GROUP,
INC., as General PJrtner, and NCNB NATIONAL BANK OF FLORIDA, their successors and assigns frum any
and all obligdtluns under the terms of that certain agreement captioned: "Subsidy Agreement", dated the 27th lid','
of January, 1987, dnd recorded on February 2,1987 in the Official Records of Dade County at O,R, 13167, Page
172, which instrument affects the following described real property:
Esplanade Aparbnents, lots 9, 10, 11, and 12, Block 63, Lincoln Subdivision, according to the Plat
thereof as recorded in Plat Book 9, Page 69, of the Public Records of Dade County, Florida.
and satisfies any Jnd all obligations under the terms of such Subsidy Agreement only, Jnd does hereby direct the Clerk
of the Circuit Court, Dade County, Florida to cJncel such instrument of record.
IN WITNESS WHEREOF, this instrument has been executed on this _ day of
,1994.
CITY OF MIAMI BEACH
By:
Seymour Gelber, Mayor
1700 Convention Center Drive
Miami Beach, FL 33139
ATTEST:
RICHARD BROWN, CITY CLERK
STATE OF FLORIDA)
SS)
COUNTY OF DADE)
I hereby certify that on this day before me, an officer duly qualified to take acknowledgements personally
appeared SEYMOUR GELBER, as Mayor of the City of Miami Beach, who is personally known to me, Jnd did/did
not take an oath.
Witness my hand and official seal this _ day of
,1994.
NOTARY PUBLIC, State of Florida
Commission NO
My Commission Expires:
This instrument prepared by:
Laurence Feingold, City Attorney
1700 Convention Center Drive
Miami Beach, FL 33139
RIAdsk2\a :\esplande ,rei
~.
LAW OFFICES OF
SHAPIRO AND WElL
SUITE: fSOe
:~ ~:- (-. -: '
~'}\.j
C' ..... ,.-, -
'" , I".
16e6 "9TH STREE.T CAUSE.W""
MIA)!I BEACH, FLORIDA 3314\
;'c.\":'
;.,'~' .......:-::,
r cf r.C_,
1\L.:....._.\. .
(~05) ,ee.-238li
TE:LE:COPIE:R (305) e85-8779
HERBERT S SI-4APlRO
AI..50 ..EM.E- 0' Nt. "0'.... ...1lII
May 11, 1994
ftoIlURR..V 8 WElL, JR
A"'SO ...I[M.I[" 0' ....SS..CMuSITTS ......
JOH.... P F'ULLER
0" COUHSIll..
Ms. Shirley Taylor-Prakelt
Division of Housing and Community Development
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
RE: Windsor Plaza Associates. ltd.
Dear Ms. Taylor-Prakelt:
As you know, the undersigned represents Windsor Plaza Associates, Ltd., the owner of the
property at 1320 Drexel Avenue, wherein Mr. Robert Sherman is the General Partner.
In regard to the property, Mr. Sherman proposes to repay to the City of Miami Beach,
$143,061.00, which sum represents the full amount of the rental rehabilitation funds disbursed
on this project. The repayment is for the release of the multi-unit residential rehabilitation
loan agreement that has been filed in the Public Records of Dade County, Florida, which is
dated March 13th, 1985 between the City of Miami Beach for itself and as agent for the United
States Department of Housing and Urban Development, and Windsor Plaza Associates, Ltd.
You have advised Mr. Sherman that approval is required from the City of Miami Beach
Commission in regard to the foregoing. We request that you seek Commission approval
forthwith.
Also as discussed, the repayment will be made out of the initial sales of condominium units
in the project. We don't expect that you would release the agreement prior to your full
payment, however we plan to schedule enough closings together to repay the sum at one time.
We expect to finalize the closings no later than July 15th, 1994.
To properly arrange all the foregoing, we request that this matter be brought up, if possible,
at the May 18th Commission Meeting.
)0
Ms. Shirley T .lvlor-Prakelt
May 11, 1994
Page Two
Furthermore, as discussed, we would like to obtain an assignment of the interest of the City
of Miami Beach as we intend to pursue collection of the unused portion of the rental
rehabilitation funds; to wit, the sum of $43,367.72. These sums were never disbursed by
International Savings and Loan, the authorized Lender fo~ the project. International Savings
and Loan was taken over by the R.T.C., which had the subsidy account. As I understand it,
under the rental rehabilitation subsidy program, if the project is in default, the balance of the
unused funds are to be turned over to the City. Since our proposition is to pay the City in
full, we would like an assignment of the City's interest in these funds.
Thank you for your anticipated cooperation.
Very truly yours,
,/
,/ /;:/
V
JOHN FULLER
JF:rc
Ene.
f:\ WP5 t\ WORK\REAL _ EST\ W1NDSORUt
11
. " .... l:':'_
-~ ,:. -: -_ -: ::1
_E_
ESPLANADE ASSOC" LTD
1569-1575 MICHIGAN AVENUE
rvnAMI BEACH, FLORIDA
May 24, 994
City Of Miami Beach
C/O Ms. Shirley Taylor-Prakelt
1700 Convention Center Drive
Miami Beach, Florida
RE: ESPLANADE APARTMENTS
1569-1575 MICHIGAN AVENUE
934 -16m STREET. MIAMI BEACH. FL.
900 -16TH STREET. MIAMI BEACH, FL.
Dear Ms, Taylor-Prakelt:
It WIS a pleasure meeting with you and Mr. Aguila at your offices today, This letter shaH
confirm that the propenies referenced above will be released from the City of Miami
Beach's Multi Family Rehab Subsidy Programs and all of the long term obligations, The
following address will be released:
RENTAL REHABD.JT A nON PROGJtAM:
1569-1575 Michigan Avenue. 934 16th Street, Miami Beach.
The City of Miami Beach and the partnership have agreed that in consideration for the
release on the property above, the partnership will pay and the City of Miami Beach will
accept the partial repayment of the interest subsidy moneys in the amount of S 18,083.10,
This would be the a remedy for the release of a long tenn obligation. This remedy is
described in the regulations for projects with less than 25 units. and states that the entire
amount of assistance, less TEN (10%) PERCENT of the subsidy amount will be deducted
from the subsidy for each full year after the completion of the project. The balance of the
subsidy funds after the project is in default will be repaid to the City of Miami Beach.
It wu agreed that the project stan date will be the date the certificate of occupancy was
received. And the default date is the dale the partnership filed for Bankruptcy, I have
enclosed the letter from the Bankruptcy Courts which will establish the default date,
12
~
Page 2 of2
ESPLANADE ASSOC, L ro,
The calculation are 8S show below;
Start Date:
January I, 1987
Default Date:
February 1, 1994
Subsidy Amount:
S 61,974,00
Subsidy Per Year: (S 61,974,00 /10 years) S 6, 197,40
Subsidy Per Day: (S6,197.40/365 Days) S 16,98
Years & Days in Compliance:
7 years & 30 Days
Years & Days in Non- Compliance: 2 years & 335 Days
Total Amount of Subsidy to be repaid during Non-Compliance; S 18,083.10
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
900 16th STREET. MIAMI BEACH
The agreement shall also include the relealle of both short and long tenn obligation of the
CaOG ponion of the subsidy agreement which the City of Miami Beach also disbursed
funds on the address propeny shown above and the partnership agrees to repay the monies
outstanding on or before August I. 1994.
I am happy that we have been able to resolve the repayment and the release of the subsidy
agreement today. I look forward to the city commission meeting on June 1. 1994 at which
time we should receive final approval on this property.
Sinc~ .,
t' ---I &-." .. -_..,---
/~~'-C' - - _. -.----------
Robert ShenTWl for
Esplanade Assoc" Ltd.
cc: Mr. Raul Aguila. Esq.
City Attorney Office Via Fax (305) 673-7002
13
CITY OF MIAMI BEACH
MEMORANDUM
FROM:
May 26, 1994
Roger M. Carlton, City Manager ~~
Shirley Taylor-Prakelt, Director~)
Housing & Community Development Division
DATE:
TO:
STJBJECT:
Your Questions Concerning the Settlement on the
Windsor Plaza and Esplanade Multi-family
Rehabilitation Projects - Agenda Item C-4-B
At the request of Harry Mavrogenes, Assistant City Manager I am
submitting the following information to address your questions
regarding the Agenda items on above subject:
1) "Are the buildings vacant or will this lead to displacement of
tenants?" - The Windsor Plaza has been vacant for several months.
The Esplanade Project contains l2 units of which 6 are currently
occupied. The City's action in satisfying the default does not
affect the tenants. According to the owner's representative, Bob
Sherman, they anticipate initiating the process to refinance the
property for condominium conversion in August, 1994. The time-
frames and the procedures for tenant notification are included in
the attached FAX transmittal from Robert Sherman. State statutes
govern the rights of the tenants during condominium conversions.
2) liDo the owners owe the City other money - liens, fees, etc.?" -
Yes, there are existing code enforcement liens/fire violation fines
in the approximate amount of $112,000 on the Windsor Plaza. Mr.
Sherman is appealing the amount at the Special Master Hearing set
for June 9, 1994. Raul Aguila from the City Attorney's office is
working on this matter with Bob Sherman and there has been full
disclosure. Mr. Sherman is aware that the amount determined by the
Special Master must be paid to the City.
Per Raul Aguila, the code enforcement/fire liens are separate from
the requirements of the City's subsidy. (They are separate liens
against the property.) It is my understanding that only the
Special Master can determine the amount of the code lien at this
point.
Once the Ci ty receives payment in full for the Multi - family
Rehabilitation Program subsidy, all statutory requirements of the
Program have been met. Therefore, the release and satisfaction of
the Subsidy Agreement can be executed.
11
Further, Raul advises that this action does not release the owner
from any liability for payment to the City of code enforcement
liens, fire code violation fines, license fees or other liens on
the property; these liens remain outstanding on the property.
Therefore, they shall remain as a "cloud" on the title of the
subject property until such time as they are satisfied.
3) "Can we assess administration fees ?" - No, this is a recovery
of funds from a default position and is in essence a settlement out
of court. Federal regulations do not permit the funds to be used
for such purpose.
4) "ls there a prepayment clause/penalty?" No, Federal
regulations prescribe the formula to be followed for repayment to
the City in case of noncompliance.
STP : j m
cc: Harry S. Mavrogenes, Assistant city Manager
l~
rJ ), l r~ I 11 -, L_ l f : rJ j
. J:J'J:J 'J.)r~
d.1t:L
f-c.GE r~:
Facsimile Cover Sheet
To: Ms. Shirley Taylor-Prakelt
Company: City of Miami Beach
Phone: 673-7260
Fax: 673-7772
From: Mr. Robert Sherman
Company: Sherman properties, Inc.
Phone: 531-5315
Fax: 531~2180
Date: OS/28/94
Pages Including this
cover page: 4
Comments:
eelr Shlrtey,
As per our convenseUon this momlnO. plea. ftnd enclosed a d...ft of the letter which needs to
be sent to ell of tne tenantS at any property that Intends to convert to a condOminium.
11\15 letter needS to be sent certlfted mill Ind notice must be retumed by certlfted mall In order
for the letter to be enforced.
Pf10r to this lett<< being 18ft we must ftnt refinance t.... property and recIIve the consent of the
lendee'to convert the property as well as tOe other stepl nac:esury to ftn.IIJe the detllls of the
trI,.aIon.
It Ia not antlclPMed thlll the flrst step will tlk' place before August of 1 * on the 12 unit
bultdlng. wIh the actual convnon letter not being sent out until september 1814.
The,. currently exists today only slx of the tenants occupying the 12 unit building with remaining
units being vlCllnt.
The 30 unit bulldlno 18 full and the conversion of seme would not be converted III ttlls time.
If the,.. should be eny other questIOn. pie.. feel free to cell upon me.
Robert Shennan
16
,- ......' Jr '.
t'l_Jt_,,- j
f) JI l (j) L :l 1L 1 . "J!
I j _, J __J ~' _J
ESPLANADE ASSOCIATES, LTD.
1301 Dade Boulevard
Suite 103
Mlaml Beach, FL 33139
Telephone: (305) 531-5315 Fax: (305) 531-2180
Dear Tenant:
RE: . Apartme"t #-
Miami Beach, FL JJ1J9
These apartment.s art beillg comltrted to condominium by Esplmwde Associates. Lid., a
Florida LImited Part~rship. lhe developer.
J. YOU MAY REMAIN AS A RESIDENT UN11L mE EXPIRA TION OF YOUR
RENTAL AGREEMENT. FURTHER. YOU MAY EXTEND YOUR RENTAL
AGREEMENT AS FOllOWS:
a. If you have contmuously been a resilknt of these apartmenl.J .rl,,,
,he last 180 days mid your rental agreement npi"s during 1M IleXt
270 days. you may extend your "n/Q/ agreemellt JOt' up to 270 days
after the datI of this notice.
b. If you have not betn a continuous reslcknl of these apartments for the
laYt 180 days, and your ""wl agreemlnl npiru during the IIat 180
days, you may e:ttend your rental agr'IIment Jor up to J 80 days after
tM day of this notice.
c. IN ORDER FOR YOU TO EXTEND YOUR RENTAL AGRUMENT. YOU
MUST GIVE 11lE DEYELOPER WRllTEN N017CE W117fIN 45 DA YS
AFTER mE DATE OF 11lIS NOnCE.
2. IF YOUR RENTAL AGREEMENT EXPIRES IN THE NEXT 45 DAYS:
YOII may e%lend your "ntal agreement for up to 43 days after the da~ of this
IIOI;ce while )'Of' decide whether to extend)'Oll' rental agreement Q.f explained
above. To do so, )10" "",st "otify thI tkveloper I" writlltg. fOIl will the" have
lhe full 43 Jays to declM wMther to extend your renlDl agrteIM," aY
explained ahow.
1'1
3, During the extension of your rclltal agreement you will still be charged the
same rent that you are "OW payi"g.
4. YOU MAY CANCEL YOUR RENTAL AGREEMENT AND ANY EXTENSION
OF WE RENTAL AGREEMENT AS FOllOWS:
a, If your rental agreement began or waY extended or renewed after May 1.
J 980 and yovr rental agreement, tncluding extensiorlS and renewals has
all unexpired term 0/180 day.s or le.s.s. you may c:ancel your renlal
agreement upoll 30 days' written notice aid mow. Also. upon 30 days'
written notta you may callCel any atemion of tM rental agrtemellt.
b. If your rental agreement 11M not begun or waY not ate,..d 01' renewed
after May I, 1980, yov may not cancel the rental agreement without the
con.wnJ 0/ the developer. If yout relltal agreement, including exlellsiolls
aid renewals. 11M CUI urJexpired lerm oj 1 BO days Of' less, you may.
however. upon 30 days' written nol;ce cancel any extension of lhe rlmlal
agreemen/.
5. All notices must M giW" in writing and Jent by mail. retum receipt requested.
or de/lwred in person to the ikve/oper at this addres:f: 1301 Dade Boulevard.
Suit, 103. MiamI, Beach, FL 33139.
6. If you haw cor.tinuously been a ,.,si",,,t of the. apartments during 1M last
IBO days:
a. You haw the right to purcha.w your apartmenl and will haW 45 days
(after mailing or dlliwry of purchcue information 10 p) 10 dectde
whether to purchcue. If you do not buy the .nit at that price and lhe
wlit is IDler offered at a lowr price, you will htm the opportunity 10
buy 1M unit at 1M lower price. However. In all ewnts )'011' right to
purchase lhe unit endt wMn the rent/JI agreement or any at'lLfiOfI of
the r,ntalagreement ends. or when you waiw Ihis righl In wrlt"rg.
b, Within 90 days you will be prot'ided purcllMe informallOl' relating 10 your
apa1'f1Mnt. illcluding tM price of your unit and lhe condition of lhe
bNIldJng. If you do not rec:eiw this ilffomtation within 90 day&. your
rental agreemen, and any m.JUJon will be exterdd I Jay for ,ach day
ow, 90 days until you an glwn the purclrasl i1Jj'ormI1Iion. If you do 110'
want this rental agre'mlnt allMon, you must notifY the developer ill
writlllg.
It-\
U__-,' "- '.' L L
7. If you have airy question regarding this corrversiOl' or 1M Co"domil,ium Act,
you may contact the developer. Esplanade Associates, Ltd., a Florida Umiled
Partlfership, at (30$) $31-5315 Of' you may contact,hI sta" agency which
regulates condominiums: The Division of Florida Land Sales and
Condominiums, The Johns Building, 715 South Brorrough Street, Tallahassee,
Florida 32301; Telephol,e Number (904) 478-0744.
Very truly your5,
ESPLANADE ASSOCIATES, LID.
A Florida Limited Partnership
By
Robert Sherman, Ge"eral partntr and
SOUTHEAST PROPER17ES, GROUP,
INC., Q Florida CorporaI/o"
General partner
RS/mp
shermalaltenanl3.esp
l~