HomeMy WebLinkAboutExhibit ACity of Miami
Resolution R-16-0563
Legislation
City Hall
3500 Pan American Drive
Miami, FL 33133
www.miamigov.com
File Number: 1230 Final Action Date: 11/17/2016
A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S),
DECLARING THE OFFICIAL INTENT OF THE CITY OF MIAMI, FLORIDA
("CITY") TO ISSUE TAX-EXEMPT AND TAXABLE SPECIAL OBLIGATION
BONDS IN THE EXPECTED TOTAL MAXIMUM PRINCIPAL AMOUNT OF
FORTY-FIVE MILLION DOLLARS ($45,000,000.00) IN ORDER TO, AMONG
OTHER THINGS, REIMBURSE ITSELF FROM THE PROCEEDS OF SUCH
SPECIAL OBLIGATION BONDS FOR FUNDS ADVANCED BY THE CITY FOR
CERTAIN EXPENSES INCURRED WITH RESPECT TO CERTAIN CAPITAL
IMPROVEMENTS PROJECTS AT THE MIAMI MARINE STADIUM AND THE
ASSOCIATED WELCOME CENTER AND MUSEUM COMPLEX;
ESTABLISHING CERTAIN RELATED DEFINITIONS OF TERMS; AND
AUTHORIZING CERTAIN FURTHER AND INCIDENTAL ACTIONS BY THE
CITY MANAGER, IN CONSULTATION WITH THE CITY ATTORNEY AND
BOND COUNSEL, AND SUCH OTHER APPROPRIATE OFFICERS,
EMPLOYEES, AND AGENTS OF THE CITY, AS THE CITY MANAGER DEEMS
NECESSARY, ALL AS REQUIRED FOR PURPOSES OF SECTIONS 103 AND
141-150 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED;
FURTHER AUTHORIZING RELATED AMENDMENTS TO THE CITY'S MULTI-
YEAR CAPITAL PLAN PREVIOUSLY ADOPTED SEPTEMBER 6, 2016 AS
SUBSEQUENTLY AMENDED.
WHEREAS, United States Treasury Regulations §1.150-2 (the "Reimbursement
Regulations") prescribe conditions under which proceeds of tax-exempt bonds, notes or other
obligations ("Bonds") used to reimburse advances made for capital and certain other
expenditures ("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 Internal Revenue Code of 1986, as amended, and the regulations promulgated
thereunder, as amended (collectively, the "IRS 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 ("Commission") of the City of Miami, Florida ("City")
expects to provide for the issuance by the City of its tax-exempt and taxable special obligation
bonds in a total principal amount not to exceed Forty -Five Million Dollars ($45,000,000.00)
(collectively, "Special Obligation Bonds") for the purposes of financing the costs of certain
capital improvements projects at the Miami Marine Stadium and associated welcome center and
City of Miami Page 1 of 3 File ID: 1230 (Revision:) Printed On: 10/17/2023
File ID: 1230 Enactment Number: R-16-0563
museum complex (collectively, the "Miami Marine Stadium Capital Renovations and
Improvements Projects") in order to provide necessary capital upgrades for the Miami Marine
Stadium itself and interrelated facilities; and
WHEREAS, in connection with the Miami Marine Stadium Capital Renovations and
Improvements Projects, the City expects to make Original Expenditures that will be reimbursed
from proceeds of the Special Obligation Bonds as will be set forth in the City Manager's
subsequent Memorandum for Reimbursable Funds Advanced ("City's Manager's
Memorandum"); and
WHEREAS, in connection with the Miami Marine Stadium Capital Renovations and
Improvements Projects, the City desires to expeditiously improve and provide capital projects
updates on multiple areas for which the City has already determined funding considerations in
its Fiscal Year 2016-2017 Multi -Year Capital Plan adopted September 6, 2016 pursuant to City
Commission Resolution No. 16-0445, as subsequently amended ("Multi -Year Capital Plan"), by
amending the Multi -Year Capital Plan, as set forth below to include the Miami Marine Stadium
Capital Renovations and Improvements Projects and the associated financing as referenced by
this resolution;
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
Special Obligation Bonds, evidenced in writing by an allocation on the books and records of the
City that shows the use of the proceeds of the Special Obligation Bonds to restore the money
advanced for the Original Expenditures. "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 Commission hereby declares the City's
official intent to issue the tax-exempt and taxable Special Obligation Bonds in the total expected
maximum principal amount of Forty -Five Million Dollars ($45,000,000.00) and, to the extent
permissible under the IRS Code regarding the tax-exempt Special Obligation Bonds, use a
portion of the tax-exempt Special Obligation Bonds to reimburse the City for funds advanced by
it for Original Expenditures incurred and to be incurred with respect to the Miami Marine
Stadium Capital Renovations and Improvements 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.
Section 4. Incidental Actions. The City Manager, in consultation with the City
Attorney and Bond Counsel, and such other appropriate officers, employees and agents of the
City as the City Manager deems necessary, are hereby authorized to take such actions as may
be necessary to carry out the purposes of this Resolution and the IRS Code.
Section 5. Related Amendment of the City's Multi -Year Capital Plan. The Multi -Year
Capital Plan is amended: (i) to include the Miami Marine Stadium Capital Renovations and
City of Miami Page 2 of 3 File ID: 1230 (Revision:) Printed on: 10/17/2023
File ID: 1230 Enactment Number: R-16-0563
Improvements Projects and the associated financing as referenced in this resolution, with new
project numbers to be determined by the City Manager; and (ii) to require that future
reallocations of funding sources be presented to City Commission from time to time in
connection with said financing and said Miami Marine Stadium Capital Renovations and
Improvements Projects.
Section 6 . Effective Date. This Resolution shall take effect immediately upon its
adoption and signature of the Mayor.
APPROVED AS TO FORM AND CORRECTNESS:
ria i
ndez, City 'ttoriey
10/18/2016
1 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 3 of 3 File ID: 1230 (Revision:) Printed on: 10/17/2023
CITY OF MIAMI
INTER -OFFICE MEMORANDUM
TO: Honorable Mayor and Members DATE: October 18, 2016
of the City Commission
FROM: Daniel J. Alfonso SUBJECT: Financing for Renovation and
Marra r`] // Capital Improvements of the
Miami Marine Stadium
The City Commission Meeting has discussed renovating and improving the Commodore Ralph E. Munroe
Marine Stadium (the "Miami Marine Stadium") for several months. As such, City staff has prepared a
preliminary scope of work and cost estimate including, but is not limited to: renovating the form,
materials, features and character of the stadium as it appeared in its original likeness during the 1960s,
potential removal of inconsistent and/or unsafe structural features, structural repairs or replacement of
the upper -structure and substructure, incorporation of new systems (electrical, mechanical, lighting, sound,
and plumbing), Americans with Disabilities Act accessibility, restoration or replacement of the stadium
seating, removal of asbestos material as necessary, construction of a new Welcome Center and Museum.
We are requesting approval to begin the process of issuing a Non -Ad Valorem Special Obligation Bond (or
similar financing mechanism) including both taxable and tax exempt financing as appropriate, in the
amount not to exceed $45 million. Staff would expect the bond to have a repayment schedule of 15 to 20
years and pledge funds from any available Non -Ad Valorem sources (such as the Local Government Half -
cent Sales Tax Program) with a covenant to budget and appropriate to repay the debt service from the
General Fund (in accordance with Florida Statute Section 218.64(4)) and other State Statutes.
Staff is currently working on an analysis of all revenues and expenses on Virginia Key that will be presented
along with the Declaration of Intent to finance and reimburse on the November 17, 2016 agenda.
Should you have any questions, please contact Christopher Rose, Budget Director, at 305-416-1500.
OMB-17001
CITY OF MIAMI
INTER -OFFICE MEMORANDUM
TO: Honorable Mayor and Members
of the City Commission
FROM: Daniel J. Alfonso
City Manag
DATE: October 28, 2016
SUBJECT: Analysis of All City -Collected
Revenues and Expenses on
Virginia Key
As discussed at the October 27, 2016 City Commission Meeting, please find attached an analysis of all
City -Collected revenues and expenses on Virginia Key in association with financing the renovation of the
Commodore Ralph E. Munroe Marine Stadium (the "Miami Marine Stadium") and a calculation of debt
service costs.
As you can see, there are revenues and expenses in both the Parks Department and the Real Estate and
Asset Management Department as well as debt service expenses for the $16 million already approved for
financing at the Flex Park at the Marine Stadium. Prior to the implementation of the Flex Park, overall
revenues collected by the City on Virginia Key were just over $4.3 million and expenditures by the City were
$2.264 million. The flex park added revenues of $1.03 million and expenses of $1.487 million, which
includes a conservative annual debt service payment of $1.065 million (4 percent level debt for 25 years,
with 2 percent issuance cost).
In addition, the expected financing of $45 million at 4 percent level debt for 25 years, with 2 percent
issuance cost would cause a conservative annual debt service payment of $2.996 million to be paid by non -
ad valorem revenues in the general fund.
Should you have any questions, please contact Christopher Rose, Budget Director, at 305-416-1500.
OMB-17002
Virginia Key Revenue and Expense Analysis
Before Flex Park
Added
Current Situation
Parks
Revenue
$394,000
$0
$394,000
Expense
$1,438,000
$341,000
$1,779,000
Difference
-$1,044,000
-$341,000
-$1,385,000
Real Estate and Asset Management
Revenue
$3,946,000
$1,030,000
$4,976,000
Expense
$826,000
$81,000
$907,000
Difference
$3,120,000
$949,000
$4,069,000
Debt Service
Revenue
$0
$0
$0
Expense (Estimated)
$0
$1,065,000
$1,065,000
Difference
$0
-$1,065,000
-$1,065,000
Overall
Revenue
$4,340,000
$1,030,000
$5,370,000
Expense
$2,264,000
$1,487,000
$3,751,000
Difference
$2,076,000
-$457,000
$1,619,000
*Estimated Cost of Debt Service for the Marine Stadium
$45 million at 4% level debt for 25 years, with 2% issuance cost would be
an annual debt service payment of $2.996 million.
Amount
16,000,000
No. of Years
25
Rate
4.0%
Each Payment
$1,065,000
Total Payments
26,625,000
Interest Paid
10,625,000
1 2006
2 2007
3 2008
4 2009
5 2010
6 2011
7 2012
8 2013
9 2014
10 2015
11 2016
12 2017
13 2018
14 2019
15 2020
16 2021
17 2022
18 2023
19 2024
20 2025
21 2026
22 2027
23 2028
24 2029
25 2030
Amount
45,000,000
No. of Years
25
Rate
4.0%
Each Payment
$2,996,000
Total Payments
74,900,000
Interest Paid
29,900,000
1,065,000 1 2006
1,065,000 2 2007
1,065,000 3 2008
1,065,000 4 2009
1,065,000 5 2010
1,065,000 6 2011
1,065,Q00 7 2012
1,065,000 8 2013
1,065,000 9 2014
1,065,000 10 2015
1,065,000 11 2016
1,065,000 12 2017
1,065,000 13 2018
1,065,000 14 2019
1,065,000 15 2020
1,065,000 16 2021
1,065,000 17 2022
1,065,000 18 2023
1,065,000 19 2024
1,065,000 20 2025
1,065,000 21 2026
1,065,000 22 2027
1,065,000 23 2028
1,065,000 24 2029
1,065,000 25 2030
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
2,996,000
26,625,000 74,900,000
A RESOLUTION OF THE VIRGINIA KEY ADVISORY BOARD ("BOARD")
RECOMMENDING THAT THE MIAMI CITY COMMISSION ("CITY
COMMISSION") AUTHORIZE THE CITY MANAGER TO ISSUE TAX-EXEMPT
AND TAXABLE SPECIAL OBLIGATION BONDS IN THE EXPECTED TOTAL
MAXIMUM PRINCIPAL AMOUNT OF FORTY-FIVE MILLION DOLLARS
($45,000,000.00) FOR THE PURPOSE OF FUNDING THE RESTORATION OF THE
MIAMI MARINE STADIUM AND THE DEVELOPMENT OF THE SURROUNDING
AREAS CONSISTENT WITH THE ORIGINAL VIRGINIA KEY MASTER PLAN AS
PRESENTED TO THE CITY COMMISSION BY THE UEL ON DULY 22, 2010;
REQUESTING THAT PLANS FOR EXPENDITURES RELATED TO THE
RESTORATION OF THE MIAMI MARINE STADIUM AND THE DEVELOPMENT
OF THE SURROUNDING AREAS BE BROUGHT BEFORE THE BOARD FOR
RECOMMENDATIONS FROM THE BOARD AND THE PUBLIC; FURTHER
DIRECTING THE BOARD LIAISON TO FORWARD A COPY OF THIS
RESOLUTION TO THE OFFICIALS STATED HEREIN.
WHEREAS, the City of Miami ("City") will be presenting before the Miami City
Commission ("City Commission") at the October 27, 2016 City Commission meeting a
resolution declaring the official intent of the City to issue tax-exempt and taxable special
obligation bonds in the expected total maximum principal amount of forty-five million
dollars ($45,000,000.00) in order to, among other things, reimburse itself from the
proceeds of such special obligation bonds for funds advanced by the City for certain
expenses incurred with respect to certain capital improvements projects at the Miami
Marine Stadium and the associated welcome center and museum complex; and
WHEREAS, the same resolution being presented before the City Commission at
the October 27, 2016 City Commission meeting further authorizes certain further and
incidental action by the City Manager, in consultation with the City Attorney and Bond
Counsel, and such other appropriate officers, employees, and agents of the City as the
City Manager deems necessary; and
WHEREAS, the City Manager presented and discussed the purpose and effect of
the resolution before the Virginia Key Advisory Board ("Board") at the Board's regular
meeting on October 25, 2016;
NOW, THEREFORE, BE IT RESOLVED BY THE VIRGINIA KEY
ADVISORY BOARD OF THE CITY OF MIAMI, FLORIDA:
Section 1. 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. The Board recommends that the Miami City Commission authorize
the City Manager to issue tax-exempt and taxable special obligation bonds in the
expected total maximum principal amount of forty-five million dollars ($45,000,000.00)
for the purpose of funding the restoration of the Miami Marine Stadium and the
development of the surrounding areas consistent with the original Virginia Key Master
Plan as presented to the City Commission by the UEL on July 22, 2010.
Section 3. The Board further requests that plans for expenditures related to
the restoration of the Miami Marine Stadium and the development of the surrounding
areas be brought before the Board for recommendations from the Board and the public.
Section 4. The Board Liaison is directed to forward a copy of this Resolution
to the members of the City Commission, Mayor Tomas Regalado, City Manager Daniel J.
Alfonso, and the City Clerk.
Section 5. This Resolution shall become effective immediately upon its
adoption.
PASSED AND ADOPTED THIS 25th DAY OF OCTOBER, 2016.
Gregory W. Bush, Chairman Y
Esther Alonso Luft Y Blanca Mesa Y
T. Spencer Crowley Absent for Vote Gary Milano Y
Guy Forchion Y Joe Rasco Y
Kevin Kirwin Ex-Officio Vinson Richter Y
Stephen Kneapler Absent Daniel Rotenberg Ex-Officio (Absent)
Lynn B. Lewis Y Robert Vernon Y