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HomeMy WebLinkAboutSummary FormAGENDA ITEM SUMMARY FORM FILE ID: /a -60 7 f(5, Date: July 13, 2012 Commission Meeting Date: 7/26/2012 Type: ® Resolution Requesting Department: Final -lee District Impacted: All Ordinance ❑ Emergency Ordinance Discussion Item Other Subject: Series 1.990 Bonds Defeasance Purpose of Item: Law Department Matter ID No. A resolution of the Miami City Commission, with attachments, authorizing the City Manager , after consultation with the City Attorney and Bond Counsel, to execute any and all notices, agreements, and other documents necessary to effectuate the redemption on October 1, 2012, of all of the City's outstanding Community Redevelopment Revenue Bonds, Series 199D; Appropriating not to exceed $1,229,975.00 from the fiscal year 2011-2012 previously budgeted amounts from Account Numbers, 28001,162000,771000, 28001.162000.772000, and 28001.162000.534000 to pay all principal, interest, and costs/fees related to the redemption of the Series 1990 Bonds. Background Information: See attached background information sheet. Budget Impact Analysis NO Is this item related to revenue? YES Is this item an expenditure? If so, please identify funding source below. General Account No: Special Revenue ACcount No: ClP Project No: NO Is this item funded by homeland Defense/Neighborhood Improvement Bonds? 28001.162000.771000; 28001.162000.772000; 28001,162000.534000 Start Up Capital Cost: Maintenance Cost: Total Fiscal Impact: CIP If using or receiving capita funds Grants iv Purchasing '"2� Chief -3< Final Approvals (SIGN AND DATE) Budget~=mac` Risk Management, Dept. Directo City Manager Page 1 of 2 Background Information: • The City of Miami (the "City") on November 1, 1990, on behalf of the Community Redevelopment Agency of City (the "CRA:') issued its $11,500,000 original principal amount of City of Miami, Florida Community Redevelopment Revenue Bonds, Series 1990 (the "Series 1990 Bonds") which remain outstanding in the principal amount of $1,170,000.00 • The Series 1990 Bonds were issued to fund the acquisition of certain real property located in the South East Overtown/Park West area within the City and the improvement thereof to facilitate the construction and development of multi -family residential facilities, commercial development and public improvements constituting a redevelopment project, the construction of certain public improvements and the repayment of a loan made by the U.S. Department of Housing and Urban Development to the City (collectively, the "Project"), and to reimburse the City for certain expenditures previously incurred by the City in connection with the Project • As of October 1, 2002, the Series 1990 Bonds are subject to optional redemption at the option of the City, in whole at any time, or in part on any interest payment date, being any April 1 or October 1 ("Interest Payment Dates"), by lot and at a redemption price of one hundred percent (100%) of the principal amount thereof, together with accrued interest to the date of redemption • The Finance Director has recommended that it is in the City's best interest to save future interest payments and call all remaining outstanding Series 1990 Bonds on the next Interest Payment Date, which is October 1, 2012 • The Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency on June 25, 2012 pursuant to Resolution No. CRA- R-12-0045 has authorized an amount not to exceed $492,143 to be paid to the City to repay with principal and interest for the redemption of the Series 1990 Bonds • The. City has previously budgeted additional amounts necessary to accomplish such .redemption in the debt service reserve and in a settlement payment with the CRA related to certain CRA properties (see CRA Resolution 12-0045) $1,229,975.00 Total Defeasance Less 437,832.00 Paid from Debt Service Reserve 300,000.00 Paid from State Shared Revenue (City) 492,143.00 Paid from CRA 0.00 Page 2 of 2