HomeMy WebLinkAboutSubmittal-Robin Jones Jackson-Memo from Bond CounselSubmitted into the public_
record for item(s) _ 9 6.110
Bryant on 7-23-,.015. CityClerk
Miller Attorneys at Law
0 101 North Monroe Street
( J i l`[a Suite 900
\.l M L• Tallahassee, FL 32301
Tel 850.222.8611
Fax 850.222.8969
July 22, 2015
The Honorable Mayor and Members
of the City Commission of the City of Miami
Daniel J. Alfonso, City Manager
Victoria Mendez, City Attorney
Miami, Florida
Re: $84,540,000 City of Miami, Florida Tax -Exempt Special Obligations Parking
Revenue Bonds, Series 2010A (Marlins Stadium Project) and
$16,830,000 City of Miami, Florida Taxable Special Obligation Parking
Revenue Bonds, Series 2010B (Marlins Stadium Project)
Ladies and Gentlemen:
We have acted as bond counsel in connection with the issuance by the City of Miami,
Florida (the "City") of the $84,540,000 City of Miami, Florida Tax -Exempt Special Obligations
Parking Revenue Bonds, Series 2010A (Marlins Stadium Project) (the "Series 2010A Bonds) and
$16,830,000 City of Miami, Florida Taxable Special Obligation Parking Revenue Bonds, Series
2010B (Marlins Stadium Project) (the "Series 2010B Bonds" and, together with the Series 2010A
Bonds, the "Series 2010 Bonds"), and in such capacity, we have been requested by the City to
advise the City as to whether the adoption and implementation of Resolution File No. 15-00698
to be considered by the City on July 23, 2015 (the "2015 Resolution"), is in compliance with the
requirements of Resolution No. R-09-0509, adopted by the City on October 22, 2009, as
subsequently amended and supplemented (the 'Bond Resolution") and the Tax Compliance
Certificate executed by the City on July 29, 2010 (the "Tax Certificate"). In providing this
advice, we have reviewed the 2015 Resolution, the Bond Resolution, the Tax Certificate, and
other records and proceedings of the City as we deemed necessary.
The operative provisions of the 2015 Resolution confirm that the portion of the Marlins
Stadium Project financed with the proceeds of the Series 2010A Bonds (the "Tax -Exempt
Project") is complete, and direct the unspent original sale proceeds and investment earnings
thereon in the amount of $9,279,296.73 (the "Unspent Proceeds") be transferred to the Sinking
Fund Account of the Debt Service Fund for the Series 2010A Bonds and used to pay interest on
the Series 2010A Bonds. In addition, the 2015 Resolution allocates a portion of the interest
Atlanta • Jacksonville . Miami • Orlando • Tallahassee • Tampa • Washington, D.C.
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City Commission
July 22, 2015
Page 2
payments made on the Series 2010A Bonds in fiscal year 2013 and all of the interest paid on the
Series 2010A Bonds in fiscal years 2014 and 2015 to the proceeds of the Series 2010A Bonds,
providing an allocation of the expenditure of the remaining proceeds of the Series 2010A Bonds
to this interest expense.
Section 5.11 of the Bond Resolution requires that at the time the Tax -Exempt Project is
complete and all costs of the Tax -Exempt Project have been paid or otherwise provided for, any
funds then remaining in the Series 2010A Construction Account in the Construction Fund be
transferred to the Sinking Fund Account of the Debt Service Fund for payment of the Series
2010A Bonds and the Series 2010A Construction Account be closed. The financial information
of the City provided as back-up for the 2015 Resolution demonstrate that the Unspent Proceeds
represents costs savings on the construction of the Tax -Exempt Project, and in accordance with
the Bond Resolution and the Tax Certificate, such monies cannot be used to pay for the Series
2010B Project costs (the "Taxable Project"). In addition, the City has represented that all funds
held in the Series 2010A Construction Account have been invested at a yield less than the yield
of the Series 2010A Bonds. Treasury Regulations § 1.148-6(d)(3)(ii)(A)(6) provides that it is a
permitted expenditure of unexpected excess sale proceeds and investment proceeds to pay
principal or interest on the issue. The funds being reallocated and expended by operation of the
2015 Resolution are the monies currently on deposit in the Series 2010A Construction Account,
which consist of unexpected excess sale and investment proceeds arising as a result of
unexpected cost savings in the Tax -Exempt Project. Treasury Regulations § 1.148-6(d)(1)(iii)
allows an issuer to allocate available funds to expenditures for a period up to 5 years after the
date of issuance of the related series of bonds. The allocations made by the 2015 Resolution are
being made within such 5 year period.
Based on a review of the Bond Resolution, the obligations undertaken by the City under
the Tax Certificate and applicable Treasury Regulations, we advise the City that the adoption
and implementation of the 2015 Resolution would be in compliance with the Bond Resolution
and Tax Certificate.
Respectfully submitted,
BRYANT MILLER OLIVE P.A.
Submitted into the public
record for item(s) (l 9. J &
on7-�3- `e?OIJ City Clerk