HomeMy WebLinkAboutSummary FormDate: 6/2/14
AGENDA ITEM SUMMARY FORM
FILE ID:
14-00468
Requesting Department: City Manager's Office
Commission Meeting Date: 6/12/14 District Impacted: 5
Type: ® Resolution n Ordinance n Emergency Ordinance n Discussion Item
n Other
Law Department
Matter ID No.
Subject: Resolution authorizing an Interlocal Agreement with the Florida Development Finance Corporation
Purpose of Item:
Resolution authorizing an Interlocal Agreement with the Florida Development Finance Corporation
("FDFC") in connection with the issuance by the FDFC of its not to exceed $30,000,000 Educational
Facilities Revenue Bonds, the proceeds of which are to be loaned by FDFC to Miami Arts, Inc.,
Miami Arts Wynwood, LLC and one of more affiliates thereof, for the financing, refinancing,
acquisition, construction, renovation, and equipping of an approximately 200,000 square foot facility
to be owned by borrowers and operated as a Charter School known as Miami Arts Charter School.
Background Information:
See attached supplement.
Budget Impact Analysis
NO Is this item related to revenue?
NO Is this item an expenditure? If so, please identify funding source below.
General Account No:
Special Revenue Account No:
CIP Project No:
NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost:
Maintenance Cost:
Total Fiscal Impact: $
CIP
Final Approvals
(SIGN AND DATE)
Budet
If using or receiving capital funds
Grants
Purchasing
Chief
c/3/1/-
Risk Management
Dept. Director
City Manager)
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Background Information:
The Florida Development Finance Corporation ("FDFC") is a body corporate and politic created and existing
under the laws of the State with powers under the Florida Development Finance Corporation Act of 1993
(such Act, as now or hereafter amended, is herein referred to as the "FDFC Act") and is authorized pursuant
to the FDFC Act and Chapter 159, Part II, Florida Statutes (collectively, the "Acts"), to issue industrial
development revenue bonds.
The FDFC Act and the Florida Interlocal Cooperation Act of 1969 (Part I of Chapter 163, Florida Statutes, as
amended) (the "Interlocal Act") provide that any other public agency (as defined in the Interlocal Act) may
enter into an Interlocal Agreement in order to permit the FDFC to function within the corporate limits of
such public agency.
Miami Arts, Inc., Miami Arts Wynwood LLC, and other affiliates (together with its subsidiaries and
affiliated entities, collectively, the "Borrowers"), a Florida non-profit corporation which currently operates a
charter school educational facility located within the City of Miami has assessed the educational needs of the
area, and has determined that the provision of funds by FDFC to the Borrower will assist in providing
educational facilities for the residents of the City of Miami.
FDFC has determined and recommended by its corporate authorization and the City agrees with such
determination and recommendation, that there is a need to provide funds for the financing, acquisition,
construction, renovation, and equipping of an educational facility for the Borrower; and FDFC and the
Borrower have requested the City to assist in accordance with the Interlocal Act.
The Borrower has requested that FDFC serve as the issuer of its not to exceed Thirty Million Dollars
($30,000,000.00) Educational Facilities Revenue Bonds (Miami Arts Charter School Project), Series 2014
(the "FDFC Bonds") to be issued to: (A) finance or refinance the cost of (or reimburse the Borrowers for
prior expenditures related to) acquisition, construction, renovation and equipping of an approximately
200,000 square foot educational facility to be operated as a charter school known as the Miami Arts Charter
School, located at 95 NW 23rd Street, Miami, Florida 33127; (B) finance the cost of the acquisition of the
land on which the Project is located; (C) fund necessary reserves; (D) fund capitalized interest on the Bonds;
and (E) pay costs associated with the issuance of the Bonds (collectively, the "Project").
FDFC is now desirous of assisting the Borrowers in financing or refinancing the cost of (or reimburse the
Borrower for prior expenditures related to) the Project through loaning the proceeds of the Bonds to provide
funds to the Borrowers for the Project. It is deemed desirable by both FDFC and the City of Miami that
FDFC and the City enter into this Interlocal Agreement in order to assist the Borrowers in financing and
The Borrowers have shown FDFC that they will be financially responsible and capable and willing to fulfill
their obligations including the obligations to make the debt service payments in the amounts and at the times
required, and the obligation to finance, refinance, acquire, construct, renovate, and equip the Project at their
own expense; and
Title to the Project shall be in the Borrowers and neither FDFC nor the City of Miami shall have any title or
interest therein and none of FDFC, the City and the State of Florida or any political subdivision of each shall
in any way be obligated to pay the principal, premium, if any, or interest on the FDFC Bonds as the same
shall become due, and the issue of the FDFC Bonds shall not directly, indirectly, or contingently obligate
FDFC, the City, the State of Florida, or any political subdivision of each to levy or pledge any form of
taxation or to make any appropriation from ad valorem taxation revenues for their payment.
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