HomeMy WebLinkAboutItem #40 - First Reading OrdinanceJ-86-165
2/13/86
ORDINANCE NO.
AN ORDINANCE AUTHORIZING THE ISSUANCE OF UP
TO FORTY MILLION DOLLARS ($40,000,000) OF
SPECIAL CONSTRUCTION REVENUE NOTES OF THE
CITY OF MIAMI, FLORIDA, CONTINGENT UPON THE
STRUCTURING OF A PROGRAM THAT MEETS THE
REQUIREMENT FOR TAX EXEMPTION IN THE FEDERAL
INTERNAL REVENUE CODE; IDENTIFYING THE
MANAGING UNDERWRITER OF SAID ISSUE AND FIXING
THE TERM OF SAID NOTES; AUTHORIZING THE USE
OF A COLLATERAL FUND SECURED BY A PLEDGE OF
CERTAIN FRANCHISE PAYMENTS; AND PROVIDING FOR
THE TAKING OF SUCH FURTHER ACTION AS MAY BE
NECESSARY IN CONNECTION WITH THE ISSUANCE OF
SAID NOTES.
WHEREAS, the City of Miami, Florida (hereinafter, the
"City"), has heretofore approved in principle the Southeast
Overtown/Park West Community Redevelopment Plan (hereinafter, the
"Overtown Project") and the issuance of not exceeding Forty
Million Dollars ($40,000,000) aggregate principal amount of
revenue notes therefor, pursuant to Resolutions Nos. 82-755 and
85-402, respectively; and
WHEREAS, uncertainty exists with respect to the status of
federal tax legislation applicable to housing development such as
that contemplated by the Overtown Project and by the Scattered
Site Housing Development Program (hereinafter, the "Scattered
Site Program"); and
WHEREAS, the City is desirous of taking quick action with
respect to issuing such debt for the Overtown Project and the
Scattered Site Program, as soon as federal tax legislation should
permit;
NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. Contingent upon the structuring of a program
that meets the requirement for tax exemption in the Federal
Internal Revenue Code, the Commission hereby authorizes the
issuance of up to Forty Million Dollars ($40,000,000) of special
construction revenue notes by the City (hereinafter, the "Notes")
for the purpose of providing financing to construct single-family
residences as part of Phase I of the Overtown Project and as part
of the Scattered Site Program, which is initially designated for
the City's Community Development Target Areas of Allapattah,
Model City, Wynwood, Little Havana and Overtown and which may be
extended to such other areas as the Commission may hereafter
designate.
Section 2. The Notes, if issued, shall be awarded to L.
F. Rothschild, Unterberg, Towbin on the basis of a negotiated
sale, the Commission having determined upon the recommendation of
the City Manager, that competitive bidding does not provide the
degree of flexibility required to structure the provisions of the
Notes in the current unsettled climate of the municipal
a
securities market.
t
Section 3. The Commission hereby authorizes the use of a
fund, to be created with the proceeds of obligations secured by a
pledge of certain payments received by the City from Southern
y
Bell Telephone Company, its successors and assigns, pursuant to
Ordinance No. 9064, in order to enable the City to purchase
unsold housing units, if any, financed with the proceeds of the
Notes, from such institution as shall provide credit enhancement
for the Notes, upon such terms and conditions as the Commission
may hereafter determine.
Section 4. The Notes shall be fully registered; shall
mature within three (3) years of the date of issuance thereof;
and shall bear interest, be subject to redemption and have such
other provisions as shall be provided by the Commission by
resolution adopted prior to the issuance of the Notes, which
resolution may provide such details by approval of a trust
indenture.
Section 5.
The officers, employees and
agents of the
City are hereby
authorized and directed to do all
acts and things
i
necessary to carry into effect the provisions of
this ordinance.
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PASSED ON
FIRST READING BY TITLE ONLY this
} it-h day of
5
9
February
1986.
PASSED AND ADOPTED ON SECOND AND FINAL READING BY TITLE ONLY
this day of , 1986.
XAVIER L. SUAREZ, MAYOR
ATTEST:
MATTY HIRAI
CITY CLERK
PREPARED AND APPROVED BY:
ROBERT F. CLARK
CHIEF DEPUTY CITY ATTORNEY
Y
AP :ASORM AND CORRECTNESS:
3 • /
j
'y.
LUCIA A. DOUG ERTY
CITY ATTORNEY
RFC/rr/054