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Home My WebLink AboutR-12-0197City of Miami Legislation Resolution: R-12-0197 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 12-00484 Final Action Date: 5/10/2012 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), ACKNOWLEDGING THE INTENT OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("CRA") TO OBTAIN DEBT FINANCING, IN AN AMOUNT NOT TO EXCEED FIFTY MILLION DOLLARS ($50,000,000) ("CRA DEBT OBLIGATIONS"), TO FINANCE THE CRA'S REDEVELOPMENT ACTIVITIES AS SET FORTH ON "EXHIBITA", ATTACHED AND INCORPORATED; DELEGATING TO THE CRA THE AUTHORITY TO ISSUE AND SELL BONDS WITH RESPECT TO THE CRA DEBT OBLIGATIONS; DETERMINING AND ACKNOWLEDGING NO LIABILITY ON THE PART OF THE CITY OF MIAMI FOR REPAYMENT OF THE CRA DEBT OBLIGATIONS, FOR DISCLOSURES RELATED THERETO AND FOR CONTINUING COMPLIANCE RELATED THERETO AND REQUIRING THE CRA TO INCLUDE ALL SUCH LIMITATIONS AND INDEMNIFICATIONS IN ALL DOCUMENTS, INSTRUMENTS, AND INFORMATION RELATED TO THE CRA DEBT OBLIGATIONS. WHEREAS, the Southeast Overtown/Park West Community Redevelopment Agency ("CRA") is responsible for carrying out community redevelopment activities and projects within its designated redevelopment area ("Redevelopment Area") in accordance with its approved 2009 Redevelopment Plan ("Redevelopment Plan"); and WHEREAS, the Redevelopment Plan, at page 11, addresses the obligations of the CRA, in conformity with Chapter 163, Florida Statutes, including, but not limited to, preserving historic buildings, expanding the tax base, providing a diversity of housing options, and creating jobs within the Redevelopment Area; and WHEREAS, the Redevelopment Plan, at page 128, adopts the powers granted to the CRA in Chapter 163.370, Florida Statutes, wherein it states that the CRA shall be empowered "to apply for financing and to borrow money from the Federal Government, the State of Florida ("State"), Miami -Dade County ("County"), the City of Miami ("City") or other public or from private sources in the form of lands, bonds, grants, contributions, and any other form of financial assistance to be used for redevelopment activities."; and WHEREAS, the Redevelopment Plan, at page 2, states "[t]he 1982 Redevelopment Plan has not been effective in the redevelopment area, due to the lack of financing ability by the CRA and private enterprise."; and WHEREAS, the Board of Commissioners of the CRA determined that in order to facilitate the redevelopment of the Redevelopment Area, it is necessary, desirable, and in the best interest of the CRA to borrow money and to obtain debt in an amount not to exceed Fifty Million Dollars ($50,000,000) ("CRA Debt Obligations") to finance such redevelopment activities, which CRA Debt Obligations will be secured solely by a pledge of legally available tax increment revenues of the CRA City of Miami Page 1 of 4 File Id: 12-00484 (Version: 2) Printed On: 11/9/2017 File Number: 12-00484 Enactment Number: R-12-0197 and that the CRA shall be solely responsible for the repayment of the CRA Debt Obligations and for all required disclosures and continuing compliance related thereto; and WHEREAS, on November 8, 1990, the City on behalf of the CRA issued Community Redevelopment Bonds totaling $11,500,000.00 (the "1990 Bonds") for certain infrastructure improvements, acquisitions and clearing of certain real property and refinancing of a $5.9 million Section 108 Housing and Urban Development Promissory Note, with tax increment revenues being designated as a first pledge source of debt service on the 1990 Bonds; and WHEREAS, subsequently the tax increment revenues were insufficient to pay the total annual debt service and beginning on May 2000 the City and the CRA entered into a series of agreements whereby, among other things, the City agreed to pay an annual amount of $300,000.00 from the City's entitlement revenue ("Guaranteed Entitlement Revenue") from the State of Florida (the "Guaranteed Entitlement Payments") with respect to the 1990 Bonds; and WHEREAS, the 1990 Bonds mature in 2015 and have a current outstanding principal balance of approximately $1,170,000.00 and interest of approximately $259,250.00; andWHEREAS, the CRA intends to utilize a portion of the CRA Debt Obligations to repay the 1990 Bonds provided the City agrees to pay to the CRA the Guaranteed Entitlement Payments in the amount of $300,000.00 per year for 3 consecutive years which payments will be reduced by the amount of the interest savings achieved by the CRA in connection with the refinancing of the 1990 Bonds (i.e., if the interest savings to the CRA is $25,000.00 per year then the guaranteed entitlement payment from the City to the CRA shall be reduced by $25,000.00 per year); and WHEREAS, pursuant to CRA Resolution R-09-00012 adopted February 23, 2009 and the CRA follow-up discussions and directive of March 15, 2010, the CRA granted to the City a grant (the "Gibson Park Grant") and requested the City to fund (from the Sunshine State Loans) renovations, on a reimbursement basis, of Gibson Park within the Redevelopment Area; and WHEREAS, the CRA at this time owes the City a total of approximately $8,991,458.82 ($8,000,000.00 in principal amount and $991,458.82 in interest) on the Gibson Park Grant; and the CRA has agreed to pay same in accordance with the amortization schedule previously agreed upon between the City and the CRA; and WHEREAS, as a condition of proceeding with the CRA Debt Obligations, the CRA has agreed that the CRA's obligation with respect to the Gibson Park Grant shall be senior to and have priority over the obligation incurred by the CRA with respect to the CRA Debt Obligations provided that such senior position of the Gibson Park Grant does not hinder the CRA's ability to secure a bank loan with respect to the CRA Debt Obligations and in the event that making the Gibson Park Grant senior does in fact hinder the CRA's ability to secure a bank loan with respect to the CRA Debt Obligations, then the CRA's Gibson Park Grant shall remain in parity position with the bank loan with respect to the CRA Debt Obligations; and WHEREAS, in anticipation of such debt financing and the issuance of the CRA Debt Obligations, the Board of Commissioners of the CRA on April 30, 2012, pursuant to Resolution number CRA-R-12-0028, approved the priorities for the use of the proceeds from the CRA Debt Obligations and the intent of the CRA to obtain debt financing as set forth on Exhibit "A", attached and incorporated; and City of Miami Page 2 of 4 File Id: 12-00484 (Version: 2) Printed On: 11/9/2017 File Number: 12-00484 Enactment Number: R-12-0197 WHEREAS, the City Commission has been advised of the CRA's intent to obtain debt financing to be secured solely by a pledge of legally available tax increment revenues of the CRA, to issue the CRA Debt Obligations, the proposed priorities that will be funded from the CRA Debt Obligations, and that the CRA shall be solely responsible for the repayment of the CRA Debt Obligations and for all required disclosures and continuing compliance related thereto and related indemnification of the City therefore; and WHEREAS, pursuant to the Interlocal Cooperation Agreement dated March 31, 1983 between the City and the County, as amended and supplemented, including without limitation as amended by Amendments to Interlocal Cooperation Agreement dated November 15, 1990 between the City and the County, as further amended by Amendment to 1983 Interlocal Cooperation Agreement dated January 22, 2010 between the City, the County and the CRA (collectively, the "Interlocal Agreement"), the City was authorized to sell all bonds to finance the projects described therein and the City now desires to delegate to the CRA authorization under the Interlocal Agreement to sell bonds with respect to the CRA Debt Obligations; 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 adopted by reference and incorporated herein as if fully set forth in this Section. Section 2. The Miami City Commission acknowledges the intent of the CRA to obtain debt financing in an amount not to exceed Fifty Million Dollars ($50,000,000) ("CRA Debt Obligations") to finance the CRA's redevelopment activities as set forth on Exhibit "A", attached and incorporated. Section 3. The Miami City Commission agrees that in the event the CRA repays the 1990 Bonds out of the proceeds of the CRA Debt Obligations, that the City will pay to the CRA an annual amount of $300,000.00 from the City's Guaranteed Entitlement Revenue from the State of Florida which had been utilized by the City to repay the 1990 Bonds for three consecutive years which $300,000.00 payment will be reduced below $300,000.00 to the extent of any reduction in the annual debt service payment under the CRA Debt Obligations allocated to the repayment of the 1990 Bonds from its current level of approximately $42,000.00 per year. Section 4. The Miami City Commission acknowledges that the CRA Debt Obligations will be subordinate to the obligations of the CRA to the City with respect to the Gibson Park Grant provided that such senior position does not hinder the CRA's ability to secure a bank loan for the CRA Debt Obligations and that if the CRA determines that having the Gibson Park Grant be senior to the CRA Debt Obligations will hinder the CRA's ability to secure a bank loan for the CRA Debt Obligations, then the Gibson Park Grant shall be placed in a parity position with the bank loan financing the CRA Debt Obligations. Section 5. The Miami City Commission hereby delegates to the CRA authority under the Interlocal Agreement to issue and sell bonds with respect to the CRA Debt Obligations, subject to the provisions of Sections 6 and 7 below. City of Miami Page 3 of 4 File Id: 12-00484 (Version: 2) Printed On: 11/9/2017 File Number: 12-00484 Enactment Number: R-12-0197 Section 6. The City Commission determines and acknowledges no liability on the part of the City for repayment of the CRA Debt Obligations, for disclosures related thereto and for continuing compliance related thereto and requires the CRA to include all such limitations and indemnifications in all documents, instruments, and information related to the CRA Debt Obligations. Section 7. The CRA Debt Obligations shall not be and shall not be deemed to constitute debts, liabilities, or any other obligations of the City, the State, or any other political subdivision thereof, nor a pledge of the faith and credit of the City, the State, or any other political subdivision but shall be payable solely from the legally available tax increment revenues of the CRA as specifically pledged for such CRA Debt Obligations. Neither the City, the State, nor any other political subdivision thereof shall be obligated to pay the CRA Debt Obligations or any interest or premium thereon and neither the faith and credit nor the taxing power of the City as such taxing power relates to the City itself nor the taxing power of the State nor the taxing power of any other political subdivision thereof as it relates to such political subdivision itself, is pledged to the payment of the principal or of interest or premium on any of the CRA Debt Obligations. The issuance of the CRA Debt Obligations shall not directly, indirectly, or contingently obligate the City, the State, or any other subdivision thereof to levy or pledge any form of taxation whatsoever for the CRA Debt Obligations or make any appropriation for the payment of the CRA Debt Obligations. Furthermore, the CRA shall bear total responsibility for all disclosures and continuing compliance related to the CRA Debt Obligations and the CRA shall indemnify, hold harmless, release and defend the City, its elected officials, officers, directors, employees, agents and representatives from any and all liabilities, claims for damages, costs, or other financial, pecuniary, or other charges, orders, judgments, garnishments, liens, or alleged claims of any and all types whatsoever arising as a result of the CRA Debt Obligations. No documents, instruments, or information regarding the CRA Debt Obligations shall give rise to or result in, directly or indirectly, any financial, pecuniary or other liabilities of any type or kind of the City, its elected officials, officers, directors, employees, agents, or representatives nor subject the City, elected officials, directors, employees, agents, or representatives to any liability whatsoever. Section 8. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.{1} Footnotes: {1} If the Mayor does not sign this Resolution, it shall become effective at the end of ten 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 4 of 4 File Id: 12-00484 (Version: 2) Printed On: 11/9/2017