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Letter from Raul Aguila , , OFFICE OF THE CITY ATTORNEY ~~tf~V'~ ([) F L o R o A MURRAY H. DUBBIN City Attorney Telephone: TeJecopy: (305) 673-7470 (305) 673-7002 May 29, 2001 Burton Harrison 109 4th Terrace Rivo Alto Isle Miami Beach, Florida 33139 Via Facsimile (305) 672-5133 Re: Bass Museum Pledge Agreement / Assignment of Pledges Schedule of Pledges and Grants Requested, dated February 13,2001 Dear Burt: As you know, pursuant to Paragraph 6 of the above-referenced Agreement, the Friends of the Bass Museum, Inc. (Friends) are to provide the City's Finance Director with a certified audit, representing the total amount of the Pledges and a reconciliation of all payments received against such Pledges, through the date of delivery. We are in receipt of the Schedule of Pledges and Grants, dated February 13,2001, and prepared by Celia Suarez, Certified Public Accountant, on behalf of the Friends. Pursuant to my meeting with Finance Director Patricia Walker today, regarding Ms. Suarez's February 13,2001 document, we would respectfully request you or your designee's responses to the following pending questions: 1. Pursuant to Paragraph 3 of the Agreement, the Friends committed to raising $2,294,678.00 as its contribution towards the Bass Museum Restoration/Expansion Project; this amount would be remitted to the City via a contribution of Pledge Agreements to be assigned to the City, and through payment of cash on-hand, upon execution of the Agreement, in the amount of $459,092.001. The balance due on the Pledges, as reflected in Ms. Suarez's February 13, 2001 Schedule, totals $604,891.00. Therefore, based on the Pledges at issue in the Agreement and referenced in Ms. Suarez's document, as well as the anticipated cash on-hand, the 1 This amount represents a credit, in the amount of $98,908.00 for the purchase of furniture, fixtures, and equipment and signage, from the original number of $558,000.00. 1700 Convention Center Drive -- Fourth Floor -- Miami Beach, Florida 33139 /' '" Friends are only providing a total of $1,162,891.00 to the City, toward their obligation. In reviewing the above with Ms. Walker, we show an outstanding balance due of$I,132,603.00, with regard to the Friends outstanding commitment (i.e. $2,294,678) pursuant to the Agreement. How will the remaining balance of the Friends' commitment, as set forth above, be satisfied? 2. Notwithstanding the above, we are aware that the Lesieur Foundation Pledge stipulates that the Friends is to receive a one-sixth interest in the net income of the Foundation, which is estimated to be in excess of $50,000 per year, in perpetuity. Using the income from this Trust, however, the outstanding balance of$I,132,603.00 would be satisfied in 22.6 years. What other sources do the Friends anticipate using to satisfy the outstanding sum within a more reas<fnable (i.e. shorter) timeframe? Should you have any questions or comments regarding the above, please refer your questions directly to Ms. Walker. Additionally, please be advised that Assistant City Manager Mayra Diaz Buttacavoli has placed the matter of the audit on the Finance and Citywide Project Committee meeting on May 30, 2001, at 3:00 p.m., in the City Manager's Small Conference Room. On a personal note, my best regards to you and Lydia. ~trulY yours, d~(j /) : f---- Raul J. ~~i~ First Assistant City Attorney cc: Commissioner Nancy Liebman yMayra Diaz Buttacavoli, Assistant City Manager Patricia Walker, Finance Director Diane Camber, Director of Bass Museum of Art Peter McElwain, Asst. Director of Bass Museum of Art RJA\kw F:\A TTO\AGUR\LETTERS\HARRISON.BR2 2 OFFICE OF THE CITY ATTORNEY - 1700 CONVENTION CENTER DRIVE - MIAMI BEACH, FLORIDA 33139