Loading...
HomeMy WebLinkAboutExhibit BCITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO: Honorable Mayor and Members DATE: December 20, 2016 Of the City Commission FROM: Daniel J. Alfonso City Manager SUBJECT: Declaration of Official Intent to Reimburse Certain Expenses Related to Bond Validation and Issuance for Miami Central Station Project REFERENCES: ENCLOSURES: On November 8, 2016, the City of Miami ("City") entered into the attached Interlocal Agency Agreement ("Interlocal Agreement") with the Southeast Overtown/Park West Community Redevelopment Agency ("CRA") and South Florida Regional Transportation Authority ("SFRTA") regarding the Miami Central Station portion ("Project") of the ongoing overall Tri-Rail Downtown Miami Link Project. That Interlocal Agreement requires the City to undertake the validation and issuance of tax exempt and/or taxable bonds for the Project after certain conditions set forth therein are met involving the Tri-Rail Downtown Miami Link and the Project coming onto the tax rolls, which is anticipated by the SFRTA to occur by January 1, 2018. As per Interlocal \Agreement Section 3.2, "In order for the City to issue the Special Purpose Improvement Bonds or such other credit facility, SFRTA shall have provided the City and the CRA written notice, with supporting written documentation, that: (a) the Tri-Rail Downtown Miami Link Project has been substantially completed and is operational and (b) portions of the Miami Central Station shall have been substantially completed and said improvements comprising the completed portions of the Miami Central Station or other improvements comprising the Project shall be assessed on the County Property Appraiser's tax rolls in an amount not less than One Hundred Fifty Million and No/100 Dollars ($150,000,000.00)." As per United States Treasury Regulations, proceeds of tax-exempt bonds, notes or other obligations used to reimburse advances made for capital and certain other expenditures paid before the issuance of such bonds will be deemed to be expended for purposes of Sections 103 and 141-150 of the Internal Revenue Service Code of 1986, as amended, and the regulations promulgated thereunder ("Reimbursement Regulations"). 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 the proceeds of Bonds. We are requesting approval of said Declaration of Official Intent Resolution to establish the date from which the City can be reimbursed from future bond proceeds for expenses to be incurred by the City for the initial process of validating a later issuance of Non -Ad Valorem Special Obligation Bonds ("Bonds") (or similar financing mechanism) including both taxable and tax exempt financing, as appropriate, in the amount not to exceed $18 million. Pursuant to the Interlocal Agreement, "The obligation of the CRA to make annual CRA Contribution to the City to pay debt service on the Special Purpose Improvement Bonds up to the annual amount of the Pledged Revenues will continue until the earlier to occur of (a) the payment in full of the Special Purpose Improvement Bonds; or (b) the expiration of the life of the CRA which is currently scheduled to occur on March 31, 2030, as same may be extended". Staff would expect Bonds to have a repayment schedule in accordance with the remaining life of the CRA at such time that the Bonds are issued. As per Interlocal Agreement, "The Special Purpose Improvement Bonds shall be supported solely by a pledge by the CRA to the City of the tax increment revenues actually received by the CRA derived solely from the Project, excluding land value, assessed under the tax folio numbers listed in the Interlocal Agreement as such folio numbers may be adjusted from time to time, after deducting therefrom: (a) the payments the CRA is required to make to the City and the County under the terms of the Interlocal Agreement between the City, the County, the CRA and the Omni CRA dated as of December 31, 2007("Global Agreement"); (b) allocation of administrative charges imposed by the County and the City (but not administrative charges associated with the operation of the CRA); (c) all allocable charges and/or payments to or for the benefit of the Children's Trust; (d) adjustment to the assessed value made by the City and/or the County as a result of challenges made to the assessed value; and (e) all payments the City and/or the CRA is required to make, if any, with respect to the loan ("Gran Central Loan") evidenced by that Loan Agreement dated January 20, 1988 ("Gran Central Loan Agreement") by and between Gran Central Corporation, a Florida corporation, and the City". Staff is currently in the process of selecting a consulting firm pursuant to the City's previously procured consultants pool to undertake the required independent third -party feasibility study and report necessary for the bond validation processes. Should you have any questions, please contact Mr. Fernando Casamayor, Chief Financial Officer, at 305-416-1009.