HomeMy WebLinkAboutR-79-01577
i
"SUPPORTIVE
DOCUMENTS
FOLLOW" BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI,
RESOLUTION No. 79-157
A RESOLUTION ACCEPTING THE ATTACKED
"FINANCIAL CONCEPT" FOR THE CITY OF
MIAMI/UNIVERSITY OF MIAMI JAMES L.
KNIGHT INTERNATONAL CENTER AND
GARAGE AND AUTIIORIZ.ING TIIE CITY MANAGER
TO PROCEED WITII TIIE CONCEPT AS OUTLINED
FOR TIHL SALE OF LEASE REVENUE OBLIGATIONS
FLORIDA:
Section 1. The City Manager is hereby authorized to
direct Municipal Leasing Corp. and Smith Barney, Harris Upham to
proceed with the work necessary to finance and underwrite the
Conference Convention Center and Garage.1/
Section 2. The City Manager is hereby authorized to
direct the City's Bond Counsel, Brown, Wood, Ivey, Mitchell and
Petty, to proceed with the preparation of the necessary legal
instruments respecting the financing for consideration by the
Commission.
Section 3. The City Manager is hereby authorized to
retain a nationally recognized Certified Public Accountant firm
specializing in hotel and hospitality accountancy and feasibility
to verify the financial viability and revenue projections for hX
I '
Conference/Convention Center and the hotel.1/ "DOCUMENT,,
ITEM NO..
Section 4. The City Manager is hereby authorized to
cause to be completed as promptly as practicable plans, specifica-
tions and contract documents for advertising for competitive bids
a General Construction Contract or Contracts with a guaranteed
maximum price for the completion of construction of said Conference
Convention Center
Section 5. The City Manager is hereby authorized to
renegotiate the existing Construction Management Service Agreement
and submit to the Commission the renegotiated terms with the
Construction Manager, Miami Center Associates, Inc.
1/ City of Miami/University of Miami James L. Kni
International Center
CITY COMMISSION
MEETING OF
ht MAF -9 1171
RESOLUTION NO.Thi�
Section 6. The City Manager is directed, upon the
completion of the work authorized above to bring to the Commission
the fully developed financial concept, based upon the legal
requirements and financial considerations necessary for approval
by the Commission.
PASSED AND ADOPTED this 8 day of MARCH 1979.
TEST:
T
RAL PH G. ONGIE, CITY CLERK
PREPARED AND APPROVED BY:
/azcc_
ROBERT F. CLARK, ASSISTANT
CITY ATTORNEY
APPROVED AS TO FORM AND CORRECTNESS
ECRGE F
TORNEY
2
/s/ MAURICE A. FERRE
MAURICE A. FERRE, MAYO R
A
ro: Joseph R. Grassie
City Manager
FROM:
/,dimes J7 -i Connolly/
Projec�C Director//
Convention Cente±
CI r I" 111At11. Ft OR'C),».
1NTER•i.`;=�,=1r ",iCt•K_-) Af•1O1.1 ,1
March 2, 1979
Conference/Convention Center and
Garage - Financial Concept
P EF E:H ENC E5
Financial Concept
The City Commission, at the Meeting of December 14, 1978, directed
the City Manager to proceed with developing a Financial Plan for
raising the funds required to complete the construction of the
City's Conference/Convention Center and Garage using revenues due
to the City from the Developer from the operation of the Center's
Hyatt Regency Miami Hotel.
Discussions have been held with Municipal Leasing Corp.; Smith
Barney, Harris Upham; and our Boad Counsel, Brown, Wood, Ivey,
Mitchell and Petty. As a result of these meetings, the means for
providing the necessary funds using "Lease Revenue Notes", has
been determine.
Attached herewith is the outline of the "Financial Concept".
It is the opinion of James E. Gunderson, Director of Finance, that
of the various means of financing available, the Financial Concept
as outlined here, is the most advantageous to the City in terms of
time and financing costs.
Attached also is the financial forecast for the Convention Center
Garage based upon prevailing parking rates in the immediate area
of the Conference/Convention Center and the operating expenses as
forecast by the Off -Street Parking Authority's Consultant, Conrad
Associates East.
JJC/mm
"SUPPORTIVE
DOCUMENTS
FOLLOW
0,294.4wee‘selt.e.,41-
/,ate 7 ,r7
„+
"FINANCIAL CONCEPT”
•
- .••• .. d ♦...i . - •
CITY OF MIAMI/UNIVERSITY OF MIAMI
JAMES L. KNIGHT INTERNATIONAL
CENTER AND PARKING GARAGE
It is requested that the City Manager proceed to negotiate with Smith
Barney, Harris Upham and Co., and Municipal Leasing Corporation for the
issuance of lease revenue notes in accordance with letter dated February 15,
1979, of Brown, Wood, Ivey, Mitchell and Petty.
Such financing will be as follows:
(a) SHORT TERM NOTES - Notes in the amount of $8 Million secured by
Developer's (Miami Center Associates, Ltd.) obligation pursuant
41111
to agreement dated April 20, 1978, and University of Miami
obligation pursuant to agreement dated April 1, 1977, wherein
Developer agrees to pay the sum of $5 Million upon opening of
the hotel and Convention Center, and University agrees to pay
the sum of $2,500,000 as construction progresses. It is contem-
plated that the University payments will be invested and the
interest therefrom added to the $2,500,000 principal which will
liquidate this $8 Million indebtedness in its entirety within
30 months.
(b) PARKING GARAGE - It is anticipated that the development cost of
the 988-car parking garage (approximate), including land acqui-
sition, will aggregate $8 Million. Revenue from the parking
garage will be sufficient to retire lease revenue notes issued
in the above amount, and thus will be self-liquidating over
25 years.
• • • • • • .••se . - a •••.. - .•.-•.• - • .rV.F •• w f'• . M. .
"Su
DOCUME 1
FOLLOW,
0.
(c) CONVENTION CENTER - Based upon current estimates of costs,
it is anticipated the $15,000,000 will be needed to complete
the Convention Center. Revenues from the hotel, projected to
be received pursuant to the aforementioned agreement between
the Developer and City, should be sufficient to amortize this
indebtedness in its entirety over a twenty-five year period.
Such revenues in the early years may not be sufficient to meet
the lease revenue note requirements by an amount of approximately
$3,500,000 and, therefore, it is recommended by Smith Barney and
Municipal Leasing that such sum be added to the aforementioned
$ft,000,000 to pay debt service in the early years.
Cost of note issue and interest expense is estimated not to exceed
$2 ,000 ,000 .
As above, total self-liquidating twenty-five year financing of $20,500,000
is anticipated.
Income and expenses of the operation of the Convention/Conference Center
are expected to be equal and, therefore, no financing is required.
Financing proposed, as outlined above, must be legally and validly issued
pursuant to Sections 3 and 36 of the City's Charter.
It is respectfully requested that the City Manager be authorized to pro-
ceed with the plan as outlined for the sale of lease revenue notes.
FOLLOV,"
... • . • • • 0 •. -l.0i. e- .. -... • . M._ .►..•I.. -. w r • -..... ..
CITY OF MIAMI/ CONFERENCE/CONVENTION CENTCR
Construction Disburse'+•nt and income Projections
Based on $28.5 Million Pinancina. 25 Years, 7 7/8%
Contingency Debt
Constr. Consult. FFE Sub Note Funds/Funds Interest Rent Cash Service
Month %Disb. Disb. Amts. Admin. 4 Pre -open Total Payments In /Available Income Income Flow Reserve
1-2-3 1.0 260 580 60 15 915 3,850/ 3,850 83 3,018
4-5-5 3.5 910 420 60 15 1,405 3,018 56 1.669
4/711 7 1.3 338 50 20 5 413 28,500/30,169 245 30,001 1.640
8 1.4 364 50 20 5 439 30,001 244 29,806
9 2.0 520 50 20 5 595 1,750/31,556 256 31.217
10 2.6 676 SO 20 5 751 31,217 254 30,720
11 3.0 780 50 20 10 860 30,720 25u 30,110
12 3.7 962 50 20 10 1,042 30,110 245 29,312
13 4.2 1,092 50 20 10 1,172 29,312 238 28,378
14 4.3 1,118 50 20 10 1,198 29,378 231 27,411
15 4.5 1,170 50, 20 10 1,250 27,411 227 26,384
16 5.0 1,300 50 20 15 1,385 26,384 214 25,213
17 5.2 1,352 50 20 15 1,417 25,213 205 23,981
18 5.3 1,378 50 10 15 1,403 23,981 195 22,713
4/80 19 5.4 1,404 50 20 15 1,489 2,244 20,469 166 19,146 ,1,600
20 5.6 1,456 50 20 15 1,541 19,146 156 17,761
21 5.4 1,404 50 20 25 1,499 2,623/20,384 166 19,050
22 5.3 1,378 50 20 100 1,548 19,050 155 17,657
23 5.4 1,404 50 20 100 1,574 17,657 143 16,226
24 5.9 1,534 50 20 100 1,704 16,226 132 14.654
25 5.7 1,482 50 20 500 2,052 14,654 119 12,721
1 26 4.8 1,248 50 20 500 1,810 12,721 103 11.007
27 3.9 1,014 50 20 500 1,584 11,007 89 9,512
28 3.0 780 50 20 500 1,350 9,512 77 8.239
29 1.8 468 50 20 500 1,038 8,239 67 7,268
3/81 30 0.8 208 50 20 500 778 7,268 59 6,549
4/81 2,244 8,000/12,305 100 12,405
10,244 12,405 1,209 535 3,470 1.975
4/82 1,990 3,470 338 700 2,518 2,167
4/1,990 2,518 245 676 1,649 2,379
4/04 1,990 1,649 160 1,013 833 2,611
4/85 1,990 833 81 1,165 89 2,866
4/86 1,990 89 9 1,326 2.300
4/87 1.990 2,300 224 1,463 1,997
4/1.990 1.907 195 1,606 1.808
4/09 0 1,990 1.800 176 1,763 1.757
I 4/901 1,757 171 1,927 1.865
Ij 4/92 over 1,990
4/92
"SUPPORTIVE
DOCUMENTS
FOLLOW"
March 2. 1979
11111 V11i 111 11111111 1111.ii
Projections for Conference/Convention Center Garage
1980 1981 1982 1983 1984
1985
Projected Revenue (1) $ -0- $ 761,839 $ 989,847 S1,183,741 $1,333.266 S1,426,594
Projected Operating Expense -0- 291,300 306,100 320,900 335,700 350,500
Projected Net Revenue
Debt Service on Parking
Surplus or (Deficit)
-0- 470,539 683,747 862,840 997,566 1,076.094
630,000 630,000 763,556 763,556 763,566 763,566
(2)
$(630,000) ($159,460) (79,808) 99,285 234,000 312,528
Debt Service Coverage 1.13x
1.31x 1.41x
(1) Parking Garage No. 5 - Based upon buildup factors of 70%, 85%, 95% for fiscal years 1981
through 1985 respectively with inflation at 7% per year.
(2) The capitalized interest and interest earned on the bond proceeds before they are expended,
will cover this amount for the fiscal year 1980.
(3) Debt service based upon 7.825% interest only first two years, then level debt service until
paid in 23 years thereafter. (25 year bond issue)
P
PROJECTED INCOME
988 Space Garage
(1979 Dollars)
Short Term (day) 200 x 2.25 x $1.20/day x 250 days = $135,000
All day 540 x 4.00 day x 250 days = 540,000
Monthly 200 x $49.00/mo. x 12 months = 117,600
Hotel Guests 50 x $4.00/day x 300 days = 60,000
(24 hours)
Hotel Guests 50 x $3.25/day x 300 days = 48,750
(overnight)
Short Term 80 x $1.00/day x 250 days = 20,000
(evening)
All day (weekend) 100 x $3.25 x 50 = 16,250
Short Term 150 x $1.20 x 50 = 9,000
(weekend)
Special events 4,000
Total projected income $950,600
Average income per space = $962/space/year.
Based on parking rates currently in existence at 150 S.E. 2nd. Ave.
Note: One Biscayne charges $4.80 per day vs this projection of $4.00
and Burdines Gar. charges 65C per hour project herein.
"SUPPORTIVE
DOCUMENTS
FOLLOW"
Estimated Annual Operating Expenses
Staff Cost -
Manager 1 @ $12,000/yr $12,000
Cashiers 5 @ $10,000/yr 50,000
Cashiers (part-time) 2 @ $5,000/yr 10,000
Maintenance Man 1 @ $9,600/yr 9,600
Bookeeper 1 @ $10,000/yr 10,000
Sub -total $91,600
Fringe benefits and payroll taxes
25% of salaries 22,900
Total Personnel Cost $114,500
Contractual Services
Security $44,000
Elevator Maintenance 14,000
Parking Equipment Maintenance 4,000
Telephone 1,200
Electricity 30,000
Water 2,000
Miscellaneous Maintenance 5,000
Other Expenses -
Uniforms and laundry
Tickets and expendable supplies
Miscellaneous
$ 1,200
5,000
3,000
$100,200
$ 9,200
Total estimated annual operating cost - Scheme A-1 $223,900
Add for Scheme A-2 23,000
Total estimated annual operating cost - Scheme A-2 $246,900
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BROWN, WOOD, iVEY, MITCHELL & PETTY
ONE LIeER?v PLAZA, NEw YORK, N. Y. 10006
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C•a0t
Mr. Janes J. Connolly
Project Director
Of_'ice of the City Manager
3500 Pan American Drive
,Miami, Florida 33133
Dear Jir::
February 15, 1979
•
Re: Proposal for Financing Convention
Center Improvements
catzt ■roc.Do ta+
•
• I have reviewed the proposal (the "Proposal"), dated
January 24, 1979, pertaining to the financing of the Con-
vention Center improvements submitted to the City by
Municipal Leasing Corporation and Smith
Sarn Harris Uph
am
& Co. Incorporated (the "Corporations"). In addition
to my
telephone discussion with you, I have di.cussed the Proposal
with Jim Gunderson, Phillip Norton, at your suggestion, and
Richard Miller. Based upon the Proposal, such discussions
and my examination of the applicable constitutional, statutory
and case law, I have prepared this letter and the attached
Suggested Procedure for Financing the Convention Center
Improvements, dated February 14, 1979, for your consideration.
Both the letter and the procedure are intended for discussion
purposes among the interested parties and changes within
the legal boundaries may certainly be made.
It may be helpful to highlight and support some of
the more important steps set forth in the attached Suggested
Procedure.
Under Section B the construction of the Convention. Center
improvements (the "Project") ,.ill be undertaken by the
City. The City has entered into an agreement as of February
3, 1977 with Ferendino, Grafton, Snillis, Candela, a Florida
corport'_on of architects, engineers and planners (the "Archi-
tect Firm"). The Architect Firm has agreed to render :he
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"SUPPORTIVE
DOCUMENTS
FLLOW"
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necessary professional and technical services for planning,
design and full time inspection and supervision of a project
which includes the construction of the Convention Center. I
assume such contract is in force.
The Code of the City of ,,;�_^:i including the Charter,
requires that contracts for public work; cr improvements roe: ements of the
City be awarded by the Ce. mission to the lowest responsible
bidder upon the basis of competitive b_ .'1:_..c in0 tha,, cans
in such contracts be b: ec ✓ to the approval of the Commission
(Charter § 53, 4; Cede, § 16-20) . Also, any ac:.'ee:-ent
between the City and the Corporations and any ccnstr,;ction
contracts must be harmcn_:::d and made ccmpatitle with the
acere,.._nts between the City and the U _ s' t of and
the City and !•._a..._ Center ;.sscciates Limited (the " e` e_cter").
Provisions in such a"reenorts which are of cue st=ona..le l ec al t ty
should be revised or omitted. In this connection, in the
agreement with the De : elor _- , Section 8.2 v' _x C S 1i n�' l: y. G
cont.~ in the Developer and/or its Hotel er over orc-
gramminr the exhibit hall, the ballrocn• and the pre -function
area in the Convention Center and Section 8.5 imposing an
unlimited financial obl ya✓ion on the City to repair and
reconstruct, may be of questionable leFaiity, necessitating
further consideration.
Section C of the attached SUS ~es✓ed Procedure pertains to
the security for the construction loan and the lone term
loan. It is proposed that the construction loan will be
secured by a pledee of the ,,2,500,000, plus earninzs, to
be placed in escrow by the University of ?,:iani and the 85,000s 000
n. ens
to be provided by the Develco r under certain conditions. . In
d .,
the event such money should be insufficient, the additional
money may have to be provided from revenues. of the City lawfully
available therefor, other than ad valorem tax revenues. It.may
be possible to include an amount in the long terra loan for
the purpose of making up 'any deficiency in the funds available
to pay the construction loan.
The long term loan, under the suggested procedure, is
to be secured by a pledge of the revenues derived from or
in connection with the Project, i.e., the Convention Center.
In addition, the City will covenant to make up any deficiency
in such revenues through the application of other funds of
the City, exclusive of ad valorem tax revenues, lawfully
available therefor.
•
:Fvt!tt'17F5i411370r'•:ai
"SUPPORTIVE
DOCUMENTS
FOLLOW"
fr-
u
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Section 3(6) of the City Charter may have a bearing on
the le _ -1 power of the City tc rl -_, J- money from om the general
funds of. the City for mai.:-In7 up any de_ _c_ ... ;n ccr.r-c-
tion with both the construct::n ic._.. and the1 term ic-a_..
This charter provision authorises the City y "to 'sorrow o.. morn
for the erect. -ion, construction and fu:'I-'.=ch of public
build_r.: , ho: pit. _ls, city office build_n_s
city halls and cthtr mun c' _._' structures". r e Section
authorizes the City to tl•_dte ...e net revenues derived ed from
any such buildings and the land upon which they stand. It
may issue certificates of indebtedness secured by the net
receipts from the use or rental of the buildi. ='s. It further
provides as follows:
5Jut no tax shall ever b=
monies taken or diverted fro!'. th= ':"e.n.erai
funds of the city for th= payment of such
indebtedness created under this section.
If the Convention Center be c: c a ^ __ _ ,'dng with':
'J
the meaning _n_ng of Section 3(6) of the pity Charter, the ouost _on
is raised as to whether the above -quoted 1a. a--e would permit
the use of s eneral funds of t.`re City for the payment of any
loans made by the City to finance the Convention Center,
unless it is determined that the Convention Center is being
undertaken and financed under other proves=ens of the Charter
and that Section 3(6) of the City Charter is not applicable.
I have not had sufficient time to determine fin:=17y the lecal
question thus presented but I am inclined to ..el__... that
Section 3(6) is not applicable.
In order to evidence the Con ter'": 1c3r. it may be advis-
able tc issue a revenue obligation in a ne7 ._atle bearer
form. Perhaps revenue bonds or some other form of obligation
may be delivered to the Corporations upon the delivery of the
long ter:., loan proceeds by the Corporations to the City.
The City under the constitution and statutes of Florida
and its City Charter is authorized to construct and finance
the Convention Center improvements as set forth in the proposal
and the attached Suggested Procedure. One of the constitutional
restrictions that must be observed is Section 10 of Article VIII
of the Constitution which'bars the City from g;; ins- 1en din`
or using its taxing power or credit to aid any corporation or
«SI I PP,1nTt_VE
P_1 r„•
t , ]
J ; �. R i
February: 14, 1979
Suggested Procedure for
Financing the Convention
Center Improverents
A. The City and 'olunic_ - al Leasing Corporation and Smith
Barney, :'.arris Upham & Co. Incorporated (such corporations
being herein called the "Corporations") shall enter into
an agreement nt providing for the completion and the financ r
of the Convention Center, seating fcr'th the duties and obl_-
gav_cns and the r _ - : s and privileges of the City and of
the Corporations.
B. Construction of the Convention Center improvements (the
"Project") by the City.
I. The City shall cause detailed plans, drawings,
specifications and contracts to be prepared for
the construction of the Project.
a. The plans and spec _f�ct_cns shall be in such
detail and the contract shall be in such form
as to pro: ide for what is comparable to a turn;,.ey
job, obviating to the fullest e::tent practicable
clams of contractors s for additional ecrrensa-
tion, to assure a firm contract price.
II.
IV.
V.
The City o shall advertise for and t,:;e bids bid .S 1 Cr the
Project with the understanding that the bids will
be held open for a period of at least 30 days (or more)
pending the consummation of the financing.
The Corporations shall agree to cause to be provided
to the City
a. A construction loan of $8,000,000, more or less,
to pay the cost of the Project; and
b. a long term loan for $10,000,000, rore or less.
Contemporaneously with the closing on the construction
loan, the City shall award the construction contract or
contracts and shall authorize the commencement of word:.
a.
Surety bonds equal to 1007• of the contract price
shall be provided to cover payment of labor and
materials and timely performance of the contract.
Ccnter:poraneously w_th the award, the Corporations shall
cause to be deposited with a trustee in a construction
fund of the City, for investr:ent and disbursement, the
•
anount of the construction loan.
C. The City shall adopt such ordinances or resolutions
authorizing the exec'-:t..ioa of the awith the
Corporations, the cor.str'.:c ion loan any .,he lone -term
loan and the trust agreement or other _e a_ instruments
as shall be required for secll_'_nthe ^_c' structior loan
and
the long .� term loan and the i ._ :.,i;anoo o: such oblations
or other evidence of in:'o .t do =.=s as mey to e fir' od upon
between the City and the Co: pcl'at_on and providinic the
te....s and conditions of the City ' s ob _ —ions evidencing
such loans.
The security for the constructicn lean shall be s:ec_-
= ied and shall include,
a. a pledge of the $.2,500,000, includinz the earnings
thereon, placed in escrc;w by the .:r.iversity of
Miami;
.10
b. a pledge of the S5,000,000 which the Developer •
shall agree to pay to the City;
c. such revenues, if any, as may be required to
supplement the t.;o payments in items a and b,
derived by the City from cr in co.^.::ect _cn with the
Project, includi. _ rental and c_.,__ payments by
the Developer and any other , receipts ..s or
other revenues of the City, exclusive of ad valorem
taxes, lawfully available tire= e fcr;
d. the granting, if necessary, by the City to the
Corporations, or their nc;::inee, of certain rights
to the Project, including- a ri;:ht cf possession
and use of the Project to be exercised in the event
the City defaults in the repayment of the construc-
tion loan, such possession to be retained until the
default is cured.
III. The security for the long term loan shall be specified
and shall include
G.
t.
.:._.... ..� -.....v_
a pledge of the revenues derived from om or in connec-
tion with the Project, includ'n= rents and other pay-
ments that shall be made by the Developer to the
City;
a covenant by the City to provide, for the purpose
of making up any deficiency in such revenues. ether
income, receipts and revenues City,
of ad valorem ta::ea as shall_ :_.:`_'u11;' ave4'atle
to the City therefor; "SUPPORTIVE
DOCUMENTS
FOLLOW"
c. provisions for the trustee cr
to take posoession of .he
the event of a der .u, t in
principal, nterest cr rade-
the obii 'at icns issued ty t:
possession and op -ration of
Center to be ccrt...,ed un:
the is c�: Citycured.
a receiver
:n
payment o1 the
.,ion pre..._u:. cr
City, such
he Convention
the d 'au? o'
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other entity or person, with certain exceptions not herein
pertinent. Under Section 2(b) of Article -, _ of the
constitution, the City is anted Ecv rh =ntal, corporate and
proprietary powers to enable it to conduct municipal ^cve_ n-
ment, perform municipal functions and rend-_ r.ur:cIpal
services and may exercise any power for municipal purposes
.oses
except as otherwise provided by law.
Sect/on 4 C_`' Artic'= V1li of tb_ ccnstitutIcn the
City is _.rite' broad ho:,._ rule Lac;; s and this is ImP7=mented
under the 1.:unic_1_--a1 Home ui_ Powers Act, Ch,-. t=_ _66 of
the Florida Statutes ..nnc a..ad. This Act vests b: - .. moo, ers
respect_. the undertakin and fina:c_. of :__s. U.'::
Sect_cr. _6E.101 the ter... "o_ cIect" is brca± - ;__ to
embrace any capita' e. sc rid _— 1. _.rues :'fb i. o h the City shall deem to be
made for a public Du" Under Section _E6. _1 the C=ty -s
given the authority to borrow money, , con.,_ -ct 1_ _ any issue
bonds „cr any oatiit1 or o::: '_' p ,je—t 'cr th= P=0==c e_-
nitted by the State constitution, and :.._y �l.'-_= the funds,
credit, ✓ property and taxi. pc-.;er of the manic _ G__ y for the
payment
f .. This iJ ino _ the
G�,� ll. of such and bonds. IJ Cis:1
issuance .ce of revenue bonds which are pay abl> from _ __ , enues •
other than ad valor =m t _..es a!?d which do not y._`C_e Crcti=rty,
credit or general ta.. re:cnuc-s (Cuectc.^. 1E.101(L), -'lorida
Statutes Annotated).
Under Section 3 of the City Charter the City is authorised
to contract debts, borrow money, ma::e _nd issue evidences
of indebtedness, sp_.nd City money for all lawful purposes,
acquire real or personal property cr any estate cr interest
therein, dispose of property, and otherwise promote the
general welfare and i_over-:r.ent, trade, commerce or industries
of the City or its inna, i.,ants.
Based on my review of the law, I believe that the City
has sufficient 1e a1 authority tc enter into an a_reenent
with the Corporations for financing the construction of
the Convention Center improvements as outlined in the
attached Suggested Procedure and this letter.
JG:f:Z
Enc.
Sincerely,
Joseph
G
"SUPPORTIVE
DOCUMENTS
FOLLOW"
CITY OF MIAMI/UNIVERSITY OF MIAMI JAMES L. KNIGHT INTERNATIONAL CENTER
Capitalization and First Year (1981) Projections $(000)
• Convention Center and.Gar.age
University City
of Miami of Miami
Miami Center
Associates
Gen. Ob.Bond 4,200 Equity 6,000
Virginia K. Sale 5,300 Mortgage 26,000
Source RDA Grant 4,373 32,000
of J.L.Knight Found. Lease Revenue Dev.
Funds 2,500 Bond 36,500 Coni.rb. (5,300)
Interest Accrued 4,471 Total 26,700
Total 54,844
)isposition
of
Funds
Univ. of Miami
Conf.Center
2,500
Funded Reserve 4,943 4.
Land 5,750
Conv.Center
34,401 Hyatt 26,700
Regency
Miami
F U. of Miami
Space 2,500
Garage _7,250
54,844
Bond
Funded Reserve
Reserve (C.I.F.)
1,640
4,943
Interest 335
Hotel Perf. Rent 285 U. of M. Lease Payment 2,700
Hotel Facil. Rent 250 Dev. Contr. 5,300
Conv.Ctr Sales 500 11 Yr. Int on $8,000 390
Gross C.Ctr Events 257 Funded Res. Int. 482
Revenues Gar.. Retail 84
Parking 'gar. 762
Total 2,138 13,815
Oper. & Conv.Ctr 500
Maint. Gar.Retail. 28
Costs Parking Gar. 291
619
Net Revenue 1,319
Debt Net Revenue 1,319
Service Funded Reserve 1,555
Revenue Bond Repayment 2,874
Short Term Loan Repayment
"SUPPORTIVE
DCCUMENTS
FOLLOW"
(1,555)
8,000 * (8,000)
Reserve Balance 4,260 1,975
CITY OF MIAMI/UNIVERSITY OF MIAMI JAMES L. KNIGHT INTERNATIONAL CENTER
Convention Center and Garage
Hotel Hotel Conv. Conv.C. Garage Total to Total to
Performance Facility Center Special Retail Parking Enterprise City General
Year Rent Rent Sales Events Rent Garage Fund Taxes Fund
1979
1980
1981 285 250 500 257 56 762 2,110 264 264
1982 433 267 535 275 60 990 2,560 291 291
1983 590 286 572 295 65 1,184 2,990 320 320
1984 701 306 612 315 69 1,133 3,336 351 351
1985 837 328 655 337 73 1,426 3,656 386 386
1986 976 351 701 360 78 1,526 3,992 424 424
1987 1,088 375 750 386 84 1,633 4,316 453 453
1988 1,205 401 802 413 90 1,748 4,650 485 485
1989 1,333 429 859 442 96 1,870 5,029 519 519
1990 1,467 460 919 492 103 2,001 5,442 556 556
Year
CONVENTTON CENTER AND GARAGE
Annual Projected P .,n71 Expenditures and Debt Service
Gross Conv. Parking Net Debt Debt Funded Bond
Revenue Center Garage Revenue Service Service Reserve Int. Reserve
Conv.C. Garage Diff. Account Income (C.I.F)
1979 6,549 1,640
1980 2,244 630 (2,874) 630 638 1,800
1981 2,110 500 291 1,319 10,244 630 (9,555) 12,943 872 1,975
1982 2,560 535 306 1,719 2,244 764 (1,289) 4,260 415 2,167
1983 2,990 572 321 2,097 1,990 764 (657) 3,386 330 2,379
1984 3,336 612 336 2,388 1,990 764 (366) 3,059 298 2,611
1985 3,656 655 350 2,651 1,990 764 (103) 3,254 317 2,866
1986 3,992 701 375 2,916 1,990 764 162 3,469 338 3,145
1987 4,316 750 401 3,165 1,990 764 411 3,969 387 3,452
1988 4,659 802 439 3,418 1,990 764 644 4,767 465 3,789
1989 5,029 859 459 3,711 1,990 764 957 5,896 574 4,158
1990 5,442 919 492 4,031 1,990 764 1,277 7,428 4,563
"SUPPORTIVE
DOCUMENTS
FOLLOW"
ailtittsi)i,grek.rer
miami...
.110110...iworldenter
March 7, 1979
Mayor of City of Miami and Commissioners
City of Miami
P.O. Box 330708
Miami, FL 33133
Dear Mayor and Commissioners:
On Monday, March 5th, the Convention Center Subcommittee of the New
World Center Action Committee reviewed the financial plan and progress of
the City of Miami/University of Miami James L. Knight International Center
and Parking Garage.
After a thorough analysis of the plan and program, the Chamber agrees that
it is economically sound, and we believe, in the best interests of the City of
Miami.
We recommend to the Commission expeditious action on the financing
program so that the project can move forward. It is our understanding that
the Private Developer's financing is contingent upon the City having
sufficient funds with which to build the facility, and it would appear that
these funds can be made available through this process.
Further, it is our understanding that there is an agenda item for the award
of the Foundation Work for the complex, and we recommend to the
Commissioners the award of this contract in order to maintain the
continuity of the project.
The completion of this project has been a long standing policy of the GMCC;
approved and encouraged by the Board of Governors and Executive
Committee at various times.
Sincerely,
ter Freeman
Executive Vice President
LF/1m
Greater Miami Chamber of Commerce • 1200 Biscayne Boulevard • Miami, Florida 33132 • (305) 374-1800