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HomeMy WebLinkAboutCRA-R-11-0065 12-15-2011 Cover MemoOmni Board of Commissioners Meeting December 15, 2011 OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE MEMORANDUM To: Board Chair Marc D. Sarnoff and Members of the CRA Board From: Pieter A. Bockweg Executive Director Date: December 9, 2011 File: 11-01175 Subject: First Payment for the Port Tunnel Loan References: Enclosures: Invoice, Legislation BACKGROUND: It is recommended that the Board of Commissioners of the Omni Redevelopment District Community Redevelopment Agency ("CRA") approve and adopt the attached Resolution authorizing the first payment, in an amount not to exceed Seven Million One Hundred Fifty Six Thousand Eight Hundred Ninety Three Dollars and Eighteen Cents ($7,156,893.18), to Wells Fargo, N.A., for the loan agreement, Florida Revenue Note, Series 2010 (Port of Miami Tunnel and Access Improvement Project) ("Loan Agreement"), by and between the City of Miami and Wells Fargo Bank, N.A. JUSTIFICATION: The City of Miami ("City"), Miami -Dade County ("County"), and the Florida Department of Transportation ("FDOT") are constructing a port tunnel ("Project") in order to reduce congestion in the Omni Redevelopment Area. The City entered into the Loan Agreement with Wells Fargo Bank, N.A. in the amount of $50 million for the Project. Section 5.4, page 87, of the 2009 Omni Redevelopment Plan states "the CRA's support of the Tunnel Project shall include direct support, indirect support, in -kind support, or such other activities as may be deemed by the CRA Board of Commissioners to advance this Project." In the Interlocal Cooperation Agreement dated December 31, 2007, between the City, the CRA, and the County, the CRA agreed to fund the City's contribution towards the Tunnel Project, up to Eighty Eight Million Dollars ($88,000,000), upon substantial completion through 2030. The CRA passed CRA-R-10-0074 authorizing a grant to the City in an amount not to exceed One Hundred and Sixty Thousand Dollars ($160,000), to assist in the payment to Wells Fargo, N.A. for a the Letter of Credit on the Project. The Loan Agreement has the first payment due on January 5, 2012. The City now seeks the CRA to issue the funds to Wells Fargo, N.A. in the form of a one-time payment, in the amount of Seven Million One Hundred Fifty Six Thousand Eight Hundred Ninety Three Dollars and Eighteen Cents ($7,156,893.18). FUNDING: Funds will be allocated from the Omni Tax Increment Fund, "Other Current Charge," Account Code No. 10040.920101.549000.0000.00000.