HomeMy WebLinkAboutAgenda Item Summary FormAGENDA ITEM SUMMARY FORM
File ID: #14592
Date: 09/05/2023
Commission Meeting Date: 09/14/2023
Requesting Department: Department of
Finance
Sponsored By:
District Impacted: All
Type: Resolution
Subject: Intent to Reimburse - Special Obligation Bonds - New Administration Building
Purpose of Item:
A resolution to update original Resolution No. R19-0256 which approves the City to
reimburse itself for the expenditures made in connection with the New City
Administration Complex.
Background of Item:
Resolution 19-0256 was adopted on June 27, 2019 declaring the City's intention to
issue tax-exempt special obligation bonds for a total maximum amount not to exceed
$150M dollars for a new administrative building located at 230 SW 3rd Street.
Subsequently, the Commission adopted Resolution 22-0218 approving the relocation of
the project to the former Melreese Golf Complex, located at 1802 NW 37 Avenue.
Therefore, a revised intent to reimburse resolution must be approved to reflect the
change in location and the increase of costs for a total amount not to exceed of $250M.
Budget Impact Analysis
Item is an Expenditure
Item is NOT funded by Bonds
Item is NOT Related to Revenue
Total Fiscal Impact:
N/A
Department of Finance
Office of Management and Budget
Office of Management and Budget
City Manager's Office
City Manager's Office
Legislative Division
Office of the City Attorney
Office of the City Attorney
City Commission
Office of the Mayor
Office of the City Clerk
Office of the City Clerk
Erica T Paschal
Donovan Dawson
Marie Gouin
Larry M. Spring
Arthur Noriega V
Valentin J Alvarez
Xavier Alban
Victoria Mendez
Maricarmen Lopez
Mayor's Office
City Clerk's Office
City Clerk's Office
Reviewed B
Department Head Review
Budget Analyst Review
Budget Review
Assistant City Manager Review
City Manager Review
Legislative Division Review
ACA Review
Approved Form and Correctness
Meeting
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Unsigned by the Mayor Completed
Signed and Attested by the City Clerk Completed
Rendered Completed
09/05/2023 9:20 PM
09/05/2023 10:01 PM
09/05/2023 10:15 PM
09/05/2023 10:16 PM
09/05/2023 10:16 PM
09/05/2023 10:19 PM
09/05/2023 10:24 PM
09/05/2023 10:43 PM
09/14/2023 9:00 AM
09/22/2023 3:37 PM
09/22/2023 4:15 PM
09/25/2023 11:08 AM
City of Miami
Legislation
Resolution
Enactment Number: R-23-0411
City Hall
3500 Pan American Drive
Miami, FL 33133
www.miamigov.com
File Number: 14592 Final Action Date:9/14/2023
A RESOLUTION OF THE MIAMI CITY COMMISSION DECLARING THE OFFICIAL
INTENT OF THE CITY OF MIAMI, FLORIDA ("CITY") TO ISSUE TAX-EXEMPT AND
TAXABLE SPECIAL OBLIGATION BONDS OR ANY OTHER FINANCING
MECHANISM ADVANTAGEOUS TO THE CITY ("FINANCING MECHANISM"), IN A
FORM ACCEPTABLE TO THE CITY ATTORNEY AND BOND COUNSEL, IN THE
EXPECTED TOTAL MAXIMUM AGGREGATE PRINCIPAL AMOUNT OF TWO
HUNDRED FIFTY MILLION DOLLARS ($250,000,000.00) IN ORDER TO, AMONG
OTHER THINGS, REIMBURSE ITSELF FROM THE PROCEEDS OF SUCH SPECIAL
OBLIGATION BONDS OR FINANCING MECHANISM FOR FUNDS ADVANCED BY
THE CITY FOR CERTAIN EXPENSES INCURRED WITH RESPECT TO THE
DEVELOPMENT, CONSTRUCTION, AND EQUIPPING OF A NEW CITY
ADMINISTRATION BUILDING AND RELATED PARKING FACILITIES, AND FOR
CERTAIN CAPITAL IMPROVEMENTS INFRASTRUCTURE PROJECTS RELATED
THERE TO BE LOCATED AT APPROXIMATELY 1802 NW 37TH AVENUE, MIAMI,
FLORIDA (COLLECTIVELY, "NEW CITY ADMINISTRATION COMPLEX PROJECTS");
ESTABLISHING CERTAIN RELATED DEFINITIONS OF TERMS; AND AUTHORIZING
CERTAIN FURTHER AND INCIDENTAL ACTIONS BY THE CITY MANAGER, IN
CONSULTATION WITH THE CITY ATTORNEY AND BOND COUNSEL, AND SUCH
OTHER APPROPRIATE OFFICERS, EMPLOYEES, AND AGENTS OF THE CITY, AS
THE CITY MANAGER DEEMS NECESSARY, ALL AS REQUIRED FOR PURPOSES
OF SECTIONS 103 AND 141-150 OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED; FURTHER AUTHORIZING RELATED AMENDMENTS TO THE CITY'S
MULTI -YEAR CAPITAL PLAN, AS MAY BE SUBSEQUENTLY AMENDED.
WHEREAS, United States Treasury Regulations §1.150-2 ("Reimbursement
Regulations") prescribe conditions under which proceeds of tax-exempt bonds, notes, or other
obligations ("Bonds") used to reimburse advances made for capital and certain other
expenditures ("Original Expenditures") paid before the issuance of such Bonds will be deemed
to be expended (or properly allocated to expenditures) for purposes of Sections 103 and 141-
150 of the Internal Revenue Code of 1986, as amended, and the regulations promulgated
thereunder, as amended (collectively, "IRS Code"), upon such reimbursement so that the
proceeds so used will no longer be subject to requirements or restrictions under those sections
of the IRS Code; and
WHEREAS, certain provisions of the Reimbursement Regulations require that there be a
declaration of official intent no later than sixty (60) days following payment of the Original
Expenditures expected to be reimbursed from proceeds of Bonds and that the reimbursement
occur within certain prescribed time periods after the Original Expenditures are paid or after the
property resulting from that Original Expenditure is placed in service; and
WHEREAS, on February 2, 2016, the City of Miami ("City") issued a competitive
solicitation via Request for Proposals No. 15-16-009 ("RFP") for the development of a 375,000
gross square foot new City administration facility with related parking facilities for both City
employees and the public visiting the facility in the greater number of (1) 1,200 parking spaces,
or (2) the parking requirements required by the Code of the City of Miami, as amended ("City
Code"), and Ordinance No. 13114, as amended, the Zoning Ordinance of the City of Miami,
Florida ("Miami 21"); and
WHEREAS, on December 8, 2016, the City Commission, pursuant to Resolution No. 16-
0611, approved the City Manager's and the RFP Selection Committee's recommendations to
select the top ranked bidder, Lancelot Miami River, LLC, an affiliate of Adler Group ("Lancelot'),
to build the new City administration facility and related parking facilities (collectively, "Project");
and
WHEREAS, on January 24, 2019, the City Commission passed Resolution No. 19-0050
(1) selecting the real property located at 230 Southwest 3rd Street, Miami, Florida ("New Site")
owned by Lancelot to be the site of the Project and (2) authorizing the City Manager to
undertake negotiations related thereto; and
WHEREAS, the City Commission, pursuant to Resolution No. 19-0255 on June 27,
2019, awarded under the RFP the acquisition of the New Site from Adler and the design,
development, construction, and installation of the Project; and
WHEREAS, the City Commission adopted Resolution No. R-19-0256 on June 27, 2019,
declaring the City's official intent to issue the Financing Mechanism, as defined below, in a form
acceptable to the City Attorney and Bond Counsel, in the total expected maximum principal
amount of One Hundred Fifty Million Dollars ($150,000,000.00) including costs of issuance and,
to the extent permissible under the IRS Code regarding the tax-exempt Special Obligation
Bonds, use a portion of the tax-exempt Special Obligation Bonds to reimburse the City for funds
advanced by it for Original Expenditures incurred and to be incurred with respect to the Project
at the New Site; and
WHEREAS, the City Commission, pursuant to Resolution No. 22-0218 adopted on June
9, 2022, the City Commission approved the relocation of the Project to the former Melreese Golf
Course Clubhouse, which is located on a portion of Folio No. 01-3132-000-0090 and located
generally at 1802 NW 37th Avenue, Miami, Florida 33125 ("Melreese Site"), and further
authorized the City Manager to negotiate the necessary and appropriate Amendments, in a form
acceptable to the City Attorney, with Lancelot for the development of the Project on the
Melreese Site; and
WHEREAS, the City Commission expects to provide for the issuance by the City of its
tax-exempt and taxable special obligation bonds or any other financing mechanism
advantageous to the City ("Financing Mechanism"), in a form acceptable to the City Attorney
and Bond Counsel, in a total maximum aggregate principal amount not to exceed Two Hundred
Fifty Million Dollars ($250,000,000.00) ("Special Obligation Bonds") including costs of issuance
for the purposes of financing the costs of the development, construction, and equipping of the
Project, and for certain capital improvements infrastructure projects related thereto to be located
at the Melresse Site (collectively, "New City Administration Complex Projects"); and
WHEREAS, the City Commission finds it is in the best interest of the City to update
Resolution No. R-19-0256 to reimburse itself for Original Expenditures made in connection with
the New City Administration Complex Projects; and
WHEREAS, in connection with the New City Administration Complex Projects, the City
expects to make Original Expenditures that will be reimbursed from proceeds of the Financing
Mechanism (including the Special Obligation Bonds) as will be set forth in the City Manager's
subsequent Memorandum for Reimbursable Funds Advanced ("City's Manager's
Memorandum"); and
WHEREAS, also in connection with the New City Administration Complex Projects, the
City desires to expeditiously improve and provide capital projects updates on multiple areas for
which the City has already determined funding considerations in its Multi -Year Capital Plan, as
may be subsequently amended ("Multi -Year Capital Plan"), and to amend the Multi -Year Capital
Plan, as set forth below to include the New City Administration Complex Projects and the
associated financing as referenced by this Resolution;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY
MIAMI, FLORIDA:
Section 1. Recitals and Findings. The recitals and findings contained in the Preamble to
this Resolution are adopted by reference and incorporated as fully set forth in this Section.
Section 2. Definitions. For the purposes of this Resolution, "Reimbursement" or
"Reimburse" means the restoration to the City of money temporarily advanced from its own
funds and spent for Original Expenditures before the issuance of the Special Obligation Bonds,
evidenced in writing by an allocation on the books and records of the City that shows the use of
the proceeds of the Special Obligation Bonds to restore the money advanced for the Original
Expenditures. "Reimbursement" or "Reimburse" generally does not include the refunding or
retiring of Bonds previously issued and sold to, or borrowings from, unrelated entities.
Section 3. Declaration of Official Intent. The City Commission hereby declares the
City's official intent to issue the Financing Mechanism, in a form acceptable to the City Attorney
and Bond Counsel, in the total expected maximum principal amount of Two Hundred Fifty
Million Dollars ($250,000,000.00) including costs of issuance and, to the extent permissible
under the IRS Code regarding the tax-exempt Special Obligation Bonds, use a portion of the
tax-exempt Special Obligation Bonds to reimburse the City for funds advanced by it for Original
Expenditures incurred and to be incurred with respect to the New City Administration Complex
Projects. This Resolution is intended as a declaration of official intent under United States
Treasury Regulation § 1.150-2 as set forth in the City Manager's Memorandum.
Section 4. Incidental Actions. The City Manager, in consultation with the City Attorney,
Bond Counsel, and such other appropriate officers, employees, and agents of the City as the
City Manager deems necessary, is hereby authorized' to take such actions as may be
necessary to carry out the purposes of this Resolution and the IRS Code.
Section 5. Related Amendment of the City's Multi -Year Capital Plan. The Multi -Year
Capital Plan is amended (i) to include the New City Administration Complex Projects and the
associated financing as referenced in this Resolution with new project numbers to be
determined by the City Manager and (ii) to require that future allocations or reallocations
of funding sources be presented to the City Commission from time to time in connection with
said financing and said New City Administration Complex Projects.
Section 6. Effective Date. This Resolution shall take effect immediately upon its
adoption and signature of the Mayor.2
1 The herein authorization is further subject to compliance with all legal requirements that may be
imposed, including but not limited to, those prescribed by applicable City Charter and City Code
provisions.
2 If the Mayor does not sign this Resolution, it shall become effective at the end of ten (10) 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.
APPROVED AS TO FORM AND CORRECTNESS:
ndez, City Httor
ey ) 9/5/2023