Ord. No. 04-02-1772ORDINANCE NO.4-02-V772
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF SOUTH MIAMI,FLORIDA,RELATINGTO 73rd STREETRETAILAND
PARKING GARAGE CONSTRUCTION FUNDS,AUTHORIZING THE
NEGOTIATION OF A LOAN IN AN AGGREGATE AMOUNT NOT TO
EXCEED $8,000,000 FROM THE FLORIDA MUNICIPAL LOAN COUNCIL;
APPROVING THE EXECUTION AND DELIVERY OF A LOAN AGREEMENT
WITH THE FLORIDA MUNICIPAL LOAN COUNCIL;APPROVING THE
EXECUTION AND DELIVERY OFA BOND PURCHASE AGREEMENT;
APPROVING THE EXECUTION AND DELIVERY OF A DISCLOSURE
AGREEMENT;PROVIDING CERTAIN OTHER MATTERS IN CONNECTION
WITH THE MAKING OF SUCH LOAN;PROVIDING FOR ORDINANCES IN
CONFLICT;SEVERABILITY AND PROVIDING AN EFFECTIVE DATE.
WHEREAS,participating governmental units(the "Members")have createdtheFlorida
MunicipalLoanCouncil(the"Council")pursuanttoacertainInter-local Agreement andpursuantto
Chapter 163,PartI,FloridaStatutes,forthepurpose of issuingitsbondstomakeloansto
participating governmentalunitsforqualified projects;and
WHEREAS,the City of South Miami,Florida,amunicipal corporation,isdulycreatedand
existing pursuant to the Constitution andlaws of the State of Florida (the "State");and
WHEREAS,theCityfindsanddeclaresthatthereisasubstantialneedforthe financing or
refinancing of qualifyingprojectspermittedby Florida StatutesandtheStateConstitution;and
WHEREAS,theCitypossessestheabilityto finance suchprojectsonitsown,buthas
determined thatapooled financing program involving alimitednumber oflocal governmental units
which regularly undertakeprojects requiring significant debt financing withintheState of Florida
wouldprovideforlowcost financing or refinancing of suchprojectsthrougheconomies of scale,
administrativesupportandaccesstoexpertiseinaccessingthecapitalmarkets;and
WHEREAS,itis anticipated thatthebenefits ofapooled financing bytheCitywithalimited
number ofgovernmentalunitsthroughthe Florida Municipal LoanCouncilmaybeobtainedthrough
promisestorepayloansunderthe program andsupportedbya general covenanttobudgetand
appropriateforsuchpurpose,byaspecificpledge oftaxesorrevenuesorbyageneral obligation;and
WHEREAS,bypoolingtherespective financial needs of thesecertainvarious local
governmentalunits,theCitywillbeabletoaccess additional marketsandexpectstoreceivethe
benefits of lower interest rateson more favorabletermsassociated with suchalargescalefinancing
with such benefits beingobtainedforandinuringtotheCity;and
WHEREAS,theCouncilisintheprocess of issuingitsFloridaMunicipalLoanCouncil
Revenue Bonds,Series 2001A (the "Bonds")andis seeking to make loans(the"Loans")to
governmental units;and
WHEREAS,itishereby determined thataneedexiststoborrowfundsto finance the
acquisition,development,andconstruction of a mixed-use facility ofretailandparkinggarageinthe
downtownbusinessdistrictas previously approvedbytheCity Commission;and
WHEREAS,itisdeterminedtobeinthebestinterest of theCityto borrow fundsfromthe
Councilfromthe proceeds of theBondstofinancethecost of theProject.
NOW THEREFORE,BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF SOUTH MIAMI,FLORIDA asfollows:
SECTION 1.AUTHORITY.ThisOrdinanceisadoptedpursuanttoChapter166,Florida
Statutes and other applicableprovisions of law.
SECTION 2.PROJECT.Therefinancing and/or financing of the construction of the
parking garage andretailfacilityishereby approved.
SECTION 3.NEGOTIATED LOAN,Duetothecomplicatednature ofthefinancingand
theability oftheCounciltoaccessadditionalmarketsandfor the Citytoreceivethebenefits oflower
interestratesandissuancecosts,itisherebydeterminedthatitisinthebest interest oftheCitythat
the Loan totheCitybemadefromthe proceeds of theBonds,as opposed totheCity borrowing
funds pursuant toapublicsale.
SECTION 4.LOAN AMOUNT.Theamount of theLoan of theCityevidencedbythe
Loan Agreement shall not exceed $8,000,000.Such Loan shallbemadeata discount whichshall
includea pro-rata portion of costs of issuanceincurredbytheCouncil together withapro-rata
portion of areservefundsuretycostandtheLeague of Citiesadministrativefeesandotherongoing
costsandshallbearinterestandshallberepayableaccordingtothetermsandconditionssetforthin
theLoanAgreementauthorizedpursuanttoSection5 hereof withsuchchanges,insertionsand
omissions asmaybeapprovedbytheCityManager.Theredemptionprovisions,ifany,relatingto
suchLoanshallbeasprovidedintheLoanAgreement.
SECTION 5.AUTHORIZED OFFICERS.TheCityManagerisherebyauthorizedand
directed toexecuteand deliver aLoan Agreement to evidence theLoan,tobeenteredintobyand
betweentheCityandtheCouncil.
Further,theCityManagerisherebyauthorizedanddirectedtoexecuteanddelivera
Continuing DisclosureAgreement concerning compliance withexistingorproposedrules of the
SecuritiesandExchange Commission concerning continuing disclosurebythe City,tobe entered into
byandbetweentheUnderwriter,theCityandtheCouncil.
SECTION 6.RATES.TheCityManagerisherebyauthorizedtoapprovethe final rates of
interest ontheBonds,andthe redemption provisions thereof,if any,onbehalfofthe Borrower.The
Ord.No.4-02-1772
CityManagerisherebyauthorizedanddirectedtoexecuteanddeliveraBondPurchaseAgreement,
tobe entered intobyand between the Underwriter,theCityandtheCouncil.
SECTION 7.INDENTURE.TheCityhereby acknowledges and consents totheBonds
beingissuedpursuanttoaTrustIndenture(the AIndentureE)tobeexecutedbytheCouncilanda
bankor trust companytobeselectedas Trustee,bytheCouncil.
SECTION 8.OTHER INSTRUMENTS.TheCity Manager ishereby authorized and
directedtoexecuteanyand all certificationsorotherinstrumentsordocumentsrequiredbythis
Resolution,theLoanAgreement,theTrustIndentureoranyotherdocumentrequiredbythe Council
asaprerequisiteorpreconditiontomakingtheLoan(includingbutnotlimitedtotheexecution ofall
tax documents relatingtothetaxexempt status of theLoan),andanysuch representations and
agreements madethereinshallbedeemedtobemadeon behalf of theCity.Allactiontakentodate
bytheCity Manager in furtherance oftheissuance ofthe Bonds andthemaking of theLoanishereby
approved,confirmed andratified.
SECTION 9.ADDITIONAL INFORMATION.TheLoan Agreement shallnotbe
executed and delivered unless anduntiltheCityhas received all information required by Section
218.385,Florida Statutes.
SECTION 10.ADDITIONAL TERMS.Pursuant to subsequent resolution,theCitymay
establishsuchadditionaltermsasitmaysodeterminetobeinthebest interests of theCity.
SECTION 11.SEVERABILITY If any section,clause,sentence orphase ofthisordinance
isforanyreasonheldinvalidor unconstitutional bya court of competent jurisdiction theholding shall
notaffectthevalidity of theremainingportions of thisordinance.
SECTION 12.REPEALER Allordinancesorparts of ordinances inconflictwithprovisions
of thisordinanceisherebyrepealed.
SECTION 11.EFFECTIVE DATE.This Ordinance shall take effectimmediatelyuponits
adoption.
PASSED AND ADOPTED this 16th day of April ^2002.
ATTEST:
CITYCLERK Q,MAYOR
1st Reading -4/2/02
2nd Reading -4/16/02 COMMISSION VOTE*S-0READANDA^PROvfeo AS TO FORM:Mayor Robainaf'Yea
I.&<S=r 6^£Vice Mayor Russell:Yea
CITY ATTORNEY Commissioner Feliu:Yea
Commissioner Bethel:Yea
Commissioner Wiscombe:Yea
3
Ord.No.4-02-1772
*m»CITY OF SOUTH MIAMI
INTER-OFFICE MEMORANDUM
To:MayorandCity Commission Date:March 29,2002
nFrom:Charles D.Scurr /?a /j I Re:AGENDA ITEM #
City Manager ///jj^J C^7'Commission meeting April 2,2002
Funding for the 73rd Street
Retailand Parking Garage facility
REQUEST
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF SOUTH MIAMI,FLORIDA,RELATING TO73rd STREET RETAIL
AND PARKING GARAGE CONSTRUCTION FUNDS,AUTHORIZING THE
NEGOTIATION OF A LOAN IN AN AGGREGATE AMOUNT NOT TO
EXCEED $8,000,000 FROM THE FLORIDA MUNICIPAL LOAN COUNCIL;
APPROVING THE EXECUTION AND DELIVERY OF A LOAN
AGREEMENT WITH THE FLORIDA MUNICIPAL LOAN COUNCIL;
APPROVING THE EXECUTION AND DELIVERY OF A BOND PURCHASE
AGREEMENT;APPROVING THE EXECUTION AND DELIVERY OF A
DISCLOSURE AGREEMENT;PROVIDING CERTAIN OTHER MATTERS IN
CONNECTION WITH THE MAKING OF SUCH LOAN;AND PROVIDING
AN EFFECTIVE DATE.
BACKGROUND &ANALYSIS
OnNovember19,2001,theCityapprovedaLeaseAgreementwithMarkRichmanProperties,Inc.for
the development ofa mixed-use parking garage with retail space on 73rd Street in downtown South
Miami.January22,2002,theCityapprovedtheselection of Arquitectonicatodesignthefacility.Since
thattimeaseriesof meetings havebeenheldwiththe architects,developers andlending institutions.
TheCityisnowpreparedtogo forward withtherevenuebondfinancingenvisionedfortheproject.The
Citywillbeusingthe Florida League of CitiesMunicipalLoanPool.Thisisthesame source usedfor
the Murray Park financing.
Themost current estimate forthe project is$7,575,000withthe breakdown asfollows:
BuildingShell-20,000squarefeet@$50.00/sq.ft.$1,000,000
ParkingSpaces-350spaces@ $10,000.00/space 3,500,000
SiteWorkpreparation 500,000
ArchitecturalandEngineering (10.0%)500,000
Construction Manager atRisk(1.5%)75,000
Testing.Inspections,etc.100,000
Revenue LosstotheCity of South Miami 150,000
Richman Refinancing 1,000,000
Contingency -City of South Miami 250,000
Contingency -Richman 500,000
Total 7,575,000
It should be noted that the proposed facility would include approximately 350 parking spaces.Earlier
discussions had focused on 250 spaces with the ability to add additional levels of parking ata future date.
It has become clear that the addition of spaces inthe future would be impractical and very expensive and
would probably require closing the facility during the construction period.It is,therefore,recommended
that one additional level of parking be added at this time,bringing the total spaces to 350.This will
accommodate a comfortable level of future demand.The height of the facility willbewell under the56-
foot height limit.The City Attorney's office has prepared revised financial projections (Attached).
The ordinance before you is requesting approval for an open-amount not to exceed $8,000,000 to allow
for any additional funds that might be needed for the construction and avoid the delay in obtaining the
funds when needed.In order totake advantage of the lower interest rate available through the source the
City administration is recommending,we will be applying for the full amount of the construction cost.
However,the City will be responsible for approximately $4,4000,000 -$5,000,000 of this amount and
Mr.Richmanwillbe responsible forthe remaining amount.
Itis recommended that theCity proceed in obtaining the construction funds from the Florida Municipal
Loan Council.Thisisthe same agency that is funding the construction ofthe multi-purpose center phase
II.This council administers a loan program with a variable rate revolving loan pool uniquely designed for
Florida local governments.Funding for the program is through aAAA rated tax-exempt bond issue
administered bythe Florida League of Cities on behalf of local governments in order to achieve better
economies of scale.The program was created pursuant to Chapter 163,part 1,of Florida State statutes,
for the purpose of issuing the bonds.Some of the advantages of using this funding source include:
a)Pre-payment of loan ona 30-day notice,without penalty.The City gets the benefit of long-term
taxexempt funding withashort pre-payment option.
b)Substantially lower cost of financing than traditional financing alternatives.
c)Historically lower rate of interest compared to other fixed rates financing instruments.
Because of theIRS rules and regulations,the portion of the loan amount pertaining to retail operations
willbetaxableandtheparking garage non-taxable.
The attached ordinance authorizes theCity Manager toenterintoan agreement withthe Florida
Municipal Loan Council on behalf of the City to obtain funding inthe maximum amount of $8,000,000.
The repayment ofthe loan will be from Mr.Richman's payments to the City and revenues from parking
garage operation.
Approval ofthe ordinance will allow theCityto stay on schedule and move into design and construction.
Approvalisrecommended
South Miami Parking Structure Pro Forma
Income
Parkingmeters(250 spaces)est.$2.75perday(365 days)-3%annualincrease
DecalParking (100 spaces)$30permonth-3%annual increase
Ticketrevenueest.$12 per day-10%of meters ticketeddaily.
Gross Income
Expenses
O&M=$210 per space peryear-3%annual increase.
Utilities cost per space-$60
Maintenance cost per space-$60
Insurance cost per space-$30
Supplies cost per space-$18
Miscellaneous cost per space-$12
Administrative cost per space-$30
Net before debt service
City's share ofdebt-5million@4.75%-30 years
Net Income
Year 2 Year 3 Year 4 YearS
$250,937.50 $258,465.63 $266,219.59$274,206.18
$36,000.00$37,080.00 $38,192.00$39,337.00
$109,500.00 $112,785.00$116,168.55$119,653.61
$396,437.50 $408,330.63 $420,580.14 $433,196.79
$73,500.00 $75,705.00 $77,976.15$80,315.43
$322,937.50 $332,625.63$342,603.99$352,881.35
$312,988.44 $312,988.44 $312,988.44 $312,988.44
|$9,949.06 |$19,637.19 |$29,616.55 |$39,892.91 |
Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
$282,432.37 $290,905.34 $299,632.50 $308,621.47 $317,880.12'$327,416.52
$40,517.00 $41,732.00 $42,983.00 $44,272.00 $45,600.00 $46,968.00
$123,243.21 $126,940.51 $130,748.73 $134,671.19 $138,711.32 $142,872.66
$446,192.58 $459,677.85 $473,364.22 $487,564.66 $502,191.44 $517,257.18
$82,724.90 $85,206.64 $87,762.84 $90,395.73 $93,107.60 $95,900.83
$363,467.68 $374,371.20 $385,601.38 $397,168.93 $409,083.84 $421,356.36
$312,988.44 $312,988.44 $312,988.44 $312,988.44 $312,988.44 $312,988.44
|$50,479.24 |$61,382.76 |$72,612.94 |$84,180.49 |$96,095.40 |$108,367.92 |
MIAMI DAILY BUSINESS REVIEW
PublishedDaily except Saturday,Sunday and
LegalHolidays
Miami.Miami-DadeCounty,Florida
STATE OF FLORIDA
COUNTY OF MIAMI-DADE:
Beforetheundersignedauthoritypersonally appeared
O.V.FERBEYRE,whoonoath says that she isthe
SUPERVISOR,LegalNoticesofthe Miami Daily Business
Review f/k/a Miami Review,adaily(exceptSaturday,Sunday
and Legal Holidays)newspaper,published at Miami in Miami-Dade
County,Florida;thattheattachedcopyofadvertisement,
beingaLegal Advertisement ofNoticeinthematterof
CITY OF SOUTH MIAMI
PUBLIC HEARING 4/16/2002
in the XXXX Court,
waspublishedinsaidnewspaperinthe issues of
04/05/2002
Affiant furthersaysthatthesaid Miami Daily Business
Review isanewspaperpublishedat Miami insaid Miami-Dade
County,Florida andthatthesaidnewspaperhas
heretofore been continuously publishedinsaid Miami-Dade County,
Florida,eachday(exceptSaturday,SundayandLegal Holidays)
and has been entered as second class mail matter at the post
officein Miami insaidMiami-DadeCounty,Florida,for a
period ofoneyearnext preceding the first publication ofthe
attachedcopyof advertisement;and affiant further saysthatshe
hasneitherpaidngrpromisedanyperson,firm or corporation
any discount,rebate,comrnissionvor refundforthepurpose
ofsecuring ttsfs adverJislrnent for publication inthesaid
newspape
.UFHCIAL NOTARYSEAL "~O.V.FERBEYRE personally knowrfANB&T LLERENA
NOTARY PUBLIC STATE OF FLORIDA
COMMISSION NO.CC 912958
MY COMMISSION Fvp.njNE 23.2CQ4
CITYOFSOOTH MIAMI
NOTICE OF PUBLIC HEARING
Commission meeting Tuesday.W™^%^conM**U*-the City Commission Chambers,6130 bunsei unve.iu
lowing described ordinance(s):
AN ORDINANCE OF THE MAYOR AND,CITY COMMISSION
PROVING THE EXECUTION,^^^1 eXEcuTION
SMSBrb
DATE
S*d ordinances can be Inspected in the City CM.'.O***Mon*»•
Friday during regular ollice hours.
,nquiries coram*these Items Mould be directed to me City Manag-
er's office at:663-6338.
ALL interested parties are invited to attend and will be heard.
RonettaTaylor,CMC
CityClerk
City of South Miami
Pursuant to Florid.Statutes 286.0.05,™*£Z*»fi$ffiliemifapersondecidesto^^SSSLU
dence upon which the appeal is to be based.02-3-59/25l5A4M
4/5