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<br />~_.- <br /> <br /> <br />City of Sunny Isles Beach <br />18070 Collins Avenue <br />Sunny Isles Beach, Florida 33160 <br /> <br />(305) 947-0606 City Hall <br />(305) 949-3 1 13 Fax <br />(305) 947-2150 Building Department <br />(305) 947-5107 Fax <br /> <br />City Commission <br />Norman S. Edelcup, Mayor <br />Lewis J. Thaler, Vice Mayor <br />Gerry Goodman, Commissioner <br />Roslyn Brezin, Commissioner <br />George "Bud" Scholl, Commissioner <br /> <br />A. John Szerlag, City Manager <br />Hans Ottinot, City Allorney <br />Jane A. Hines, CMC, City Clerk <br /> <br />MEMORANDUM <br /> <br />FROM: <br /> <br />The Honorable City commissio~ <br /> <br />Hans Ottinot, City Attorney I1fJ, \j <br /> <br />TO: <br /> <br />DATE: <br /> <br />November 6,2008 <br /> <br />RE: <br /> <br />Approving Amended and Restated Promissory Note - Regalia Holdings, LLC. <br /> <br />RECOMMENDATION <br /> <br />It is recommended that the City Commission approve the attached Resolution. <br /> <br />REASONS <br /> <br />Pursuant to Resolution Nos. 06-Z-1 02 and 2006-891, Regalia Holdings, LLC. purchased 54,385 square <br />feet of transfer of development rights ("TDRs") at a price of $4,500,206.86 from the City. At the time <br />of obtaining the building permit for the development project, Regalia provided the City with a payment <br />of $3,214,592.94 for the utilization of 38,847 square feet of the TORs for the project. Upon making <br />the aforementioned payment, Regalia advised the City that it would not utilized all the TORs <br />purchased for the project. As such, Regalia requested a payment plan for the remaining 15,538 square <br />feet of TORs. The price for remaining TORs was determined to be $1,285,614.12. As part of a <br />negotiated settlement, the City and Regalia executed a promissory note whereby Regalia agreed to pay <br />the outstanding balance of $1,285,614.12 on or by October 1, 2008. Regalia further agreed to pay <br />interest on the outstanding balance at a rate of 7.0%. <br /> <br />Unable to make full payment on the promissory note by October 1, 2008, Regalia requested a six (6) <br />month extension to make full payment on the note. As consideration for this request, Regalia provided <br />the City with a payment of $120,000 for interest on the note that has accrued up to October 1, 2008. <br />Under the Amended and Restated Promissory Note, Regalia will be provided with a six (6) month <br />extension (up to March 31, 2009) and will be required to pay interest at a rate of 7.5%. Interest <br />payments are required to be made on a quarterly basis with the first payment due on December 31, <br />2008. If Regalia fails to pay the outstanding note, the City has the authority to revoke its building <br />permit. <br /> <br />Agenda Item I 0 :\ <br />Date ~l ~ .0'1 <br />