HomeMy WebLinkAboutR-94-0104'
J--94-122
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RESOLUTION NO. 0 4 " 104
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A RESOLUTION AUTHORIZING THE CITY
MANAGER TO RESTRUCTURE THE LONG TERM
DEBT OBLIGATIONS OF THE SOUTHEAST
OVERTOWN/PARK WEST COMMUNITY
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REDEVELOPMENT DISTRICT ("DISTRICT");
FURTHER AUTHORIZING THE CITY MANAGER TO
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DRAW DOWN FUNDS FROM THE CITY'S UNITED
STATES DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT ("US HUD") SECTION 108 LOAN, IN
AN AMOUNT NOT TO EXCEED $5 MILLION, SAID
FUNDS TO BE USED ALONG WITH FUNDS
AVAILABLE IN THE DISTRICT'S TRUST FUND TO
MAKE A TENDER OFFER TO 1990 TAX INCREMENT
REVENUE BOND HOLDERS FOR THE PURPOSE OF
REDUCING ANNUAL DEBT SERVICE; FURTHER
AUTHORIZING THE ENGAGEMENT OF AN
INVESTMENT BROKER TO ASSIST THE CITY
HEREIN ABOVE TRANSACTIONS.
WHEREAS, a significant decline in real estate assessments in Downtown
CITY COMMISSION
MEETING OF
FEB 1 .7 1994
Pmoiudon No.
94 104
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WHEREAS, the net present value of the tax increment revenues from the
Property, at fifty percent (50%) occupancy for the remaining term of the Bonds, was
estimated to be $4.0 million; and
WHEREAS, Dade County offered the District $2.0 million for the loss of
tax increment revenues from the Property; and
WHEREAS, the United States Department of Housing and Urban
Development approved an $8.0 million Section 108 Loan ("HUD Loan") for the District,
prior to the issuance of Bonds; and
WHEREAS, the interest rate for the HUD Loan is lower than the prevailing
coupon for the outstanding Bonds; and
WHEREAS, since the Bonds are not refundable until 2001, the City may
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opt to make a tender offer to the bondholders; and
WHEREAS, the proposed strategy to redeem Bonds by using the HUD
Loan proceeds is expected to reduce the annual debt service significantly;
NOW, THEREFORE, BE IT RESOLVED BY THE CO1VIl1iIISSION OF
THE CITY OF N4IAN% FLORIDA:
SECTION 1. The recitals and findings contained in the Preamble to this
Resolution are hereby incorporated by reference thereto and adopted as if fully set forth in
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this Section.
04- 104
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s ASSISTANCITy ATTORNET
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