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HomeMy WebLinkAboutR-92-0175n 11 J-92-188 3/2/92 1-5 RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO APPLY TO THE FLORIDA LEAGUE OF CITIES FOR A LOAN IN AN AMOUNT NOT TO EXCEED $5,000,000 FOR THE PURPOSE OF RECONSTRUCTING MIAMARINA AT BAYSIDE; FURTHER AUTHORIZING THE CITY MANAGER TO TAKE THE NECESSARY ACTION TO SECURE SUCH LOAN FUNDS, SUBUECT TO THE REVIEW AND APPROVAL OF ALL FINAL LOAN DOCUMENTS BY THE CITY COMMISSION. WHEREAS, the Miamarina facility at Bayside is in need of extensive repairs, which may be accomplished by the reconstruction of the facility; and WHEREAS, the Directors of the Departments of Finance and Parks and Recreation have explored various methods of financing such a project; and WHEREAS, the Florida League of Cities' First Municipal Loan Program was identified as one of the preferred sources for financing said proposed project; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section. CITY COMI XISSION MEETING OF m1� R 1 2 1992 Resolution No. 92-- 175 Section 2. The City Manager is authorized to apply to the Florida League of Cities, directly or through the City's Department of Off Street Parking, for a loan in an amount not to exceed $5,000,000 for the purpose of reconstructing Miamarina at Bayside. Section 3. The City Manager is hereby authorized to take the necessary actions to secure such loan funds, subject to the review and approval of all final loan documents by the City Commission. Section 4. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 12th day of •e G AATT Y HIRAI CITY CLERK FINANCIAL REVIEW: CARLOS GARCIA, DIRECTOR FINANCE DEPARTMENT PREPARED AND APPROVED BY: XAVIER L cn 1992. IIAREZ, MAYOR APPROVED AS TO FORM AND CORRECTNESS: RAFAEL DIAZ A. QUfNN J S, III DEPUTY CITY ATTORNEY CITY ATT EY ROD:osk:M2841 CITY OF MIAM1. FLORIDA 22 INTER -OFFICE MEMORANDUM To Honorable Mayor and Members of the City Commission FROM Cesar H. Od City Manage DATE F E B 2 '7 1992 FILE . SUBJECT Resolution Approving Loan Application REFERENCES: ENCLOSURES: It is respectfully recommended that the City Commission adopt the attached resolution authorizing the City Manager to apply to the Florida League of Cities for a loan in an amount not to exceed $5,000,000 for the purpose of reconstructing Miamarina at Bayside, and further authorizing necessary actions to secure such review and approval of all final Commission. the City Manager to take the loan funds, subject to the loan documents by the City As a result of the improper reconstruction of Miamarina at Bayside in 1987, the City has been involved in litigation with the contractor, architect and engineer for this project. Although such litigation has not been resolved yet, it is recommended that a process to reconstruct the facility be initiated. The marina's poor physical condition has kept usage at very low levels in spite of the prime location of this facility. A new marina constructed in accordance with appropriate standards should prove to be a successful enterprise fund operation for the City. The Finance Department recommends obtaining a loan from the Florida League of Cities' First Municipal Loan Program to finance the cost of reconstruction. The Florida League of Cities Program offers very attractive terms since the original bonds were sold prior to the passage of the restrictive 1986 Tax Reform Act. The funds are at a variable rate, which currently approximates 4.5%. Although the bonds mature in 1995, the League has indicated that they plan to refinance these bonds so that the City will be able to amortize repayment of principal beyond 1995. Commission approval of this loan application would preserve Florida League of Cities funds already allocated to the City's Department of Off Street Parking which may not be utilized by that department. Once all loan documents are finalized this transaction will be brought back to the City Commission for final approval-. 92-- 175