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01-24-1940 Special Meeting1. MINUTES OF THE MEETING op MIAMI.SHORES.VILLAGE COUNCIL JANUARY 24, 1940 A special meeting of the Council of Miami Shores Village was held on Wednesday evening, January 24, 1940 at 7:30 P. M. This meeting was called by Mr. Miliedge and Mr. Stockdell to consider what action the Council should take in regard to the Golf Course in view of the statements made to the Council by the Works Projects Administration officials at the conference of Friday, January 12, 1940. The Council was then definitely informed by the Federal Government that unless the Village puts itself in a position to own, control and operate the Golf Course for the public benefit that the Village will have to repay to the Federal Governement the $158,000.00 grant. Present were John J. Lindsey, Mr. W. Meade Stockdell, Mr. Stanley Miliedge, Mr. George Holt and the Village Manager. Mr. Lindsey, acting as Chairman, called the meeting to order after which Mr. Miliedge made the following motion: "1 move that the Council propose to Bessemer Properties the following solution in regard to the Golf Course. That the Village guarantee to Bessemer Properties the interest on the first mortgage held be Bessemer which shall be enlargedto include the money actually spent by Bessemer Properties on the Golf Course project. That Bessemer Properties render to the Village the control and management of the Golf Course for ten years from date of completion of the course. That the revenue of the course above operating expenses, if it exceeds the amount of the interest on the entire indebtedness to Bessemer, be applied solely to the payments of claims of creditors Page 2 1-24-40 who have furnished material and ecuipment for the project or as said claims have been otherwise provided for by the Village to be used to reimburse the Village to the extent of such claims paid,and that when these creditors have been retired or the equivalent of said claims repaid to the Village from said proceeds of the Golf Course that the entire net earnings of the Golf Course be applied on the principal payments of the Bessemer mortgage. That the Village Attorney be authorized to negotiate with Bessemer Properties if this basic proposal is accepted to work out the necessary details." MR. STOCKDELL: The money taken in should be accounted for and deducted from the amount of the mortgage. MR. LINDSEY: That would come in working out all details that Stanley has included in the motion. MR. MILLEDGE: I will try to explain the general idea of the plan and solution. MR. LINDSEY: I want this meeting recorded accurately. As to the suggestion that the revenues already taken in by the Golf Course be accounted for, that would come within the motion made by Mr. Milledge if, as and when the necessity of negotiations have been reached. If we can agree in principal the details can be worked out. I would like to be enlightened on this point - is it proposed that the interest due Bessemer Properties will be guaranteed from the general revenue of the Village? MR. MILLEDGE: Mr. Hawkins made the remark to the govern- ment people that if we would guarantee the interest on their loan and mortgage that they would be willing to turn the Golf Course over to us. MR. LINDSEY: I have been informed of that by persons other Page 3 1-24-40 than the Council. MR. STOCKDELL: Is that correct? MR. MILLEDGE: It is correct as to my recollection. Did you second the motion? MR. STOCKDELL: I second the motion. MR. LINDSEY: For the purpose of discussion we want to adhere to parliamentary procedure. I think it is a matter of common knowledge that I have insisted throughout this Golf Course project the incurring of no more than $10,000.00 and interest against the general revenue and taxing powers of the Village and I have wanted at all times to confine the Golf Course to the Golf Course revenue. If it can be worked out by a vote of the people I think that it should be re- quired, that the general revenue and taxing powers of the Village can be pledged to guarantee for ten years the interest on the monies actually spent by Bessemer Properties without concern of the Works Progress Administration. I would be in favor of submitting that to the qualified electors of the Village. I might make further suggestion. We do not have a full Council but there is a quorum present. That in working out the details it might here be suggested that the naming of the person or persons who would act for the Village be referred to the WPA and I will be personally willing to abide by their decision in the matter of naming the person or persons who will act on behalf of the Village in the administration of the Golf Course project during the period of time. MR. MILLEDGE: I will agree with that. I think both of you gentlemen know what my views on this are. That we are up against a propositioh in which to my opinion is going to cost the Village $158,000.00 to the Federal Government for which we will get absolutely Page 4 1-24-40 nothing unless some prompt steps are taken to put that Golf Course in a position which the WPA Administration officials have told us mutt be done in order to avoid a recapture suit. It seems to me the point of dollars and cents stands out. It would make more sense to guarantee for a ten year period the interest on the Bessemer mortgage. It seems that in all probability the Golf Course will earn at least that amount. And if that plan is put into operation we have guaranteed to the Federal Goverment to what they consider the life of the project, the ownership and control of the Golf Course and we will get rid of that threatening liability. And in all probability it will not result in any drain on the tax payers of the Village. But even if the Golf Course should not earn the sum of the interest, the taxing power of the Village will still be less and we will not have to pay the government $158,000.00. MR. STOCKDELL: It seems to me that time is essential here. That the government is not going to wait for a solution due to the fact that the creditors are starting to sue us now. Mr. Hulse had a report this morning that would cause a recapture suit immediately. We should take the responsibility on ourselves, and I have talked to people who run Golf Courses and two told me they were satisfied and we could easily pay the interest on this thing. It will be a paying proposition. We should take the responsibility on ourselves under those conditions to keep the tax payers from paying out more money. MR. LINDSEY: As far as I am concerned I am willing to do anythig that can be done to work this problem out. As far as I am concerned I will resign from the Council if it will prevent addi- tional litigation and difficulties to those that have arisen. I am Page 5 1-24-40 willing to take any responsibility that is placed on me. In casting this vote I suggest that the Village Attorney be instructed immediately to transmit to Bessemer Properties and the WPA,as represented by Mr. Hulse, a transcript of this meeting. Upon roll call the motion was unanimously carried. MR. HOLT: We all received aletter from Mr. Hall, and the Mayor called my office today and suggested that I ask Mr. Hall that in view of the meeting tonight if the notice of lien could be held un- til after this meeting. The attorney for Renuart said he would with- hold notice of the lien. Mr. McCall said Mr. Hulse told him if these liens are honored it was his opinion that the WPA would close the Golf Course and stop all operations over there. MR. LINDSEY: That is the reason I am attending this meeting tonight. As soon as the transcript of the meeting is given to you, see that it gets the proper use. MR. MILLEDGE: It seems to me, however, that the Village difficulty in'connection with the mortgage is not the only difficulty which we have which might involve a recapture suit by the Federal Government, but claims of the creditors against the property would have the same result. It seems to me that we should attempt at this meeting to make to the creditors a specific proposal which, if accepted by them, would obliterate the necessity of their filing a foreclosure of lien action against the Golf Course project. MR. LINDSEY: I anticipate that a transcript will be sent to Bessemer Properties before sun down tomorrow. I am of the opinion that if we receive cooperation from Bessemer and some creditors who loaned money with the assurance that Bessemer was behind the project, we will be able to work the matter out in principal by Friday morning. page 6 1-24-40 We should adjourn the meeting now and see what the reaction of Bessemer is. MR. STOCKDELL: Shall we meet Friday morning on this action? MR. LINDSEY: We can depend on a reaction from this meeting. MR. MILLEDGE: We have made no specific proposal to the creditors. It seems to me that in view of the threat of immediate action by the Federal Government that the Council should transmit to the creditors some basic proposal in a detailed plan under which we could assure the creditors that they would get their money without the necessity of involving the Golf Course in litigation. MR. LINDSEY: I will be willing to do anything that is legally possible to be 'done, If the Council under the charter and the Golf Course set up. can give any assurance to the creditors within itself I believe that the only remedy is to have the payment of the debts without litigation approved by the vote of qualified electors or await the result of litigation and all this will be thrashed out. I certainly hope litigation will not be necessary, but I do not think we can go much further. We can get the response of the WPA after what has transpired tonight. MR. MILLEDGE: The motion already passed in regards to the solution of the Bessemer mortgage itself is subject to the action of the voters at a specific election. If the Council would assure the creditors paymint it would probably be subject to the same pro- visions. It would only be a question of the Council's willingness to pass the necessary legal requirements. That is the basic principal determined on by the Council tonight. Page 7 1-24-40 MR. LINDSEY: If we receive a favorable response to the basic prindpals submitted or as may be amplified or elaborated on in the future I think we can favorably, correctively and theoretically work out some plan by which we can pay the creditors and I will be very much inclined to do that. The meeting was then adjourned. As Village Xana:-r and Cl k APPROVED BY THE COUNCIL: Mayor