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Home My WebLink AboutR-21-0046City of Miami ;f Legislation Resolution: R-21-0046 File Number: 8444 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Final Action Date: 1/28/2021 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), DECLARING THE OFFICIAL INTENT OF THE CITY OF MIAMI ("CITY") TO ISSUE IN TRANCHE 2 BOTH TAXABLE AND TAX-EXEMPT GENERAL OBLIGATION BONDS PAYABLE FROM AD VALOREM TAXES PROVIDED THAT THE CAPITAL PROJECTS DEBT MILLAGE NOT EXCEED THE RATE OF 0.5935 MILLS IN ACCORDANCE WITH THE NOVEMBER 7, 2017 BOND REFERENDUM APPROVED BY THE VOTERS IN AN INITIAL EXPECTED NOT TO EXCEED TOTAL MAXIMUM PRINCIPAL AMOUNT OF FORTY MILLION DOLLARS ($40,000,000.00) IN ORDER TO, AMONG OTHER THINGS, REIMBURSE THE CITY FOR FUNDS ADVANCED BY THE CITY FOR CERTAIN EXPENSES INCURRED WITH RESPECT TO CAPITAL PROJECTS TO BE UNDERTAKEN BY THE CITY TO IMPROVE AFFORDABLE HOUSING WITHIN THE CITY'S LIMITS (COLLECTIVELY, "TRANCHE 2 MIAMI FOREVER AFFORDABLE HOUSING LIMITED AD VALOREM BONDS"), ALL AS INDICATED IN THE CITY MANAGER'S MEMORANDUM AND PROPOSED SEVEN (7) AFFORDABLE HOUSING STRATEGIES IN COMPOSITE EXHIBIT "A," ATTACHED AND INCORPORATED (COLLECTIVELY, "TRANCHE 2 STRATEGIES FOR AFFORDABLE HOUSING PROJECTS"); ESTABLISHING CERTAIN RELATED DEFINITIONS OF TERMS; AUTHORIZING CERTAIN FURTHER AND INCIDENTAL ACTIONS BY THE CITY MANAGER, DESIGNATED CITY OFFICIALS, AND DEPARTMENTS, IN CONSULTATION WITH THE CITY ATTORNEY AND SUCH OTHER APPROPRIATE OFFICERS, EMPLOYEES, AND AGENTS OF THE CITY AS NECESSARY, ALL AS REQUIRED FOR PURPOSES OF SECTIONS 103 AND 141-150 OF THE UNITED STATES INTERNAL REVENUE CODE OF 1986, AS AMENDED, THE LAWS OF THE STATE OF FLORIDA ("STATE LAWS"),THE CHARTER OF THE CITY OF MIAMI, FLORIDA, AS AMENDED ("CITY CHARTER"), AND THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED ("CITY CODE"), AND FOR COMPLIANCE THEREWITH; FURTHER AUTHORIZING RELATED AMENDMENTS TO THE CITY'S MULTI -YEAR CAPITAL PLAN AS NECESSARY. SPONSOR(S): Commissioner Ken Russell, Commissioner Jeffrey Watson WHEREAS, United States Treasury Regulations §1.150-2 ("Reimbursement Regulations") prescribes conditions under which proceeds of tax-exempt bonds, notes, or other obligations (collectively, "Bonds") used to reimburse advances made for capital projects and certain other related expenditures (collectively, "Original Expenditures") paid before the issuance of such Bonds will be deemed to be expended (or properly allocated to expenditures) for purposes of Sections 103 and 141-150 of the United States Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder, as amended (collectively, "IRS City of Miami Page 1 of 4 File ID: 8444 (Revision:) Printed On: 21812021 File ID: 8444 Enactment Number: R-21-0046 Code"), upon such reimbursement so that the proceeds so used will no longer be subject to requirements or restrictions under those sections of the IRS Code; and WHEREAS, certain provisions of the Reimbursement Regulations require that there be a declaration of official intent not later than sixty (60) days following payment of the Original Expenditures expected to be reimbursed from proceeds of Bonds and that the reimbursement occur within certain prescribed time periods after the Original Expenditures are paid or after the property, resulting from that Original Expenditure, is placed in service; and WHEREAS, the City Commission expects to provide for the issuance by the City of Miami ("City") of its Tranche 2 taxable and tax-exempt limited ad valorem bonds payable from ad valorem taxes provided that the capital projects debt millage not exceed the rate of 0.5935 mills in accordance with the November 7, 2017 bond referendum approved by the voters in an initial expected not to exceed total maximum principal amount of Forty Million Dollars ($40,000,000.00) in order to, among other things, reimburse the City for funds advanced by the City for certain expenses incurred with respect to capital projects to be undertaken by the City to improve affordable housing within the City's limits (collectively, "Tranche 2 Miami Forever Affordable Housing Limited Ad Valorem Bonds"), all as indicated in the City Manager's Memorandum and attached seven (7) Affordable Housing Strategies in Composite Exhibit "A," attached and incorporated (collectively, "Tranche 2 Strategies for Affordable Housing Projects"); and WHEREAS, the Laws of the State of Florida ("State Law"), Charter of the City of Miami, Florida, as amended ("City Charter'), and the Code of the City of Miami, Florida, as amended ("City Code"), also contain certain provisions relating to budgeting and Multi -Year Capital Plan amendments, procurement, bond issuance, and financial compliance applicable to the advance of City funds for the Tranche 2 Strategies for Affordable Housing Projects prior to the issuance of the Tranche 2 Miami Forever Affordable Housing Limited Ad Valorem Bonds; and WHEREAS, on January 11, 2021, the City's Finance Committee has recommended that the City move forward with this Resolution to advance funding for Tranche 2 Strategies for Affordable Housing Projects in anticipation of such advanced funding being reimbursed to the City by the future issuance of Tranche 2 Miami Forever Affordable Housing Limited Ad Valorem Bonds and on January 12, 2021, the City's Miami Forever Citizens Bond Oversight Board was provided an informational update on the Tranche 2 Strategies for Affordable Housing Projects; and WHEREAS, in connection with the City Manager's Memorandum and the Tranche 2 Strategies for Affordable Housing Project in Composite Exhibit "A," attached and incorporated, the City expects to make Original Expenditures that will be reimbursed from proceeds of the Tranche 2 Miami Forever Affordable Housing Limited Ad Valorem Bonds, as will be set forth in the future in the City Manager's subsequent Memorandum for Reimbursable Funds Advanced ("City's Manager's Reimbursement Memorandum"); and WHEREAS, in connection with the Tranche 2 Strategies for Affordable Housing Projects for this Resolution, the City Commission is considering a Tranche 2 Strategies for Affordable Housing Projects funding allocation with certain terms and conditions for the District 5 and Southeast Overtown/Park West Community Redevelopment Agency affordable housing project currently known as the "Sawyer's Landing/Block 55 Project" in an amount not to exceed Five Million Dollars ($5,000,000.00); City of Miami Page 2 of 4 File ID: 8444 (Revision:) Printed on: 21812021 File ID: 8444 Enactment Number: R-21-0046 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY MIAMI, FLORIDA: Section 1. Recitals and Findings. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as fully set forth in this Section. Section 2. Definitions. The following definitions apply to the terms used herein: "Reimbursement" or "Reimburse" means the restoration to the City of money temporarily advanced from its own funds and spent for Original Expenditures before the issuance of the Tranche 2 Miami Forever Affordable Housing Limited Ad Valorem Bonds evidenced in writing by an allocation on the books and records of the City that show the use of the proceeds of the Tranche 2 Miami Forever Affordable Housing Limited Ad Valorem Bonds to restore the money advanced for the Original Expenditures for the Tranche 2 Strategies for Affordable Housing Projects. "Reimbursement" or "Reimburse" generally does not include the refunding or retiring of Bonds previously issued and sold to, or borrowings from, unrelated entities. Section 3. Declaration of Official Intent. The City Commission hereby declares the City's official intent to issue both taxable and tax-exempt Tranche 2 Miami Forever Affordable Housing Limited Ad Valorem Bonds for Tranche 2 Strategies for Affordable Housing Projects in the expected not to exceed total maximum principal amount of Forty Million Dollars ($40,000,000.00) and, to the extent permissible under the IRS Code regarding the tax-exempt Tranche 2 Miami Forever Affordable Housing Limited Ad Valorem Bonds, use a portion of the tax-exempt Tranche 2 Miami Forever Affordable Housing Limited Ad Valorem Bonds to reimburse the City for funds advanced by it for Original Expenditures incurred and to be incurred with respect to the Tranche 2 Strategies for Affordable Housing Projects. This Resolution is intended as a declaration of official intent under United States Treasury Regulation § 1.150-2 as set forth in the City Manager's Memorandum and the seven (7) Tranche 2 Strategies for Affordable Housing Projects in Composite Exhibit "A," attached and incorporated, for future projects as approved by the City Commission in future public meetings and in the City Manager's Reimbursement Memorandum. Section 4. Incidental Actions. The City Manager, in consultation with the City Attorney and such other appropriate officers, employees, and agents of the City as necessary, is hereby authorized' to take such actions as may be necessary to carry out the purposes of this Resolution and the IRS Code and for compliance therewith. Section 5. Related Amendment of the City's Multi -Year Capital Plan. The City Manager, designated City Officials, and Departments are hereby authorized' to amend the City's Multi - Year Capital Plan to include the Tranche 2 Strategies for Affordable Housing Projects listed in Composite Exhibit "A," attached and incorporated, and the associated financing(s) for the City's contributions to the Tranche 2 Strategies for Affordable Housing Projects' funding through the Tranche 2 Miami Forever Affordable Housing Limited Ad Valorem Bonds as referenced in this Resolution with new project numbers to be determined by the City Manager; to comply with State Laws, the City Charter, and the City Code; and to require that future reallocations of funding sources be presented to City Commission from time to time in connection with said financings for the Trance 2 Strategies for Affordable Housing Projects pursuant to the future required bond resolutions authorizing each particular series of Tranche 2 Miami Forever Affordable Housing Limited Ad Valorem Bonds. ' The herein authorization is further subject to compliance with all legal requirements that may be imposed, including but not limited to, those prescribed by City Charter and City Code provisions. City of Miami Page 3 of 4 File ID: 8444 (Revision:) Printed on: 21812021 File ID: 8444 Enactment Number: R-21-0046 Section 6. Effective Date. This Resolution shall take effect immediately upon its adoption and signature of the Mayor.2 APPROVED AS TO FORM AND CORRECTNESS: 1 i ria i endez, Uy Httor iey 1/19/2021 2 If the Mayor does not sign this Resolution, it shall become effective at the end of ten (10) calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission. City of Miami Page 4 of 4 File ID: 8444 (Revision:) Printed on: 21812021