11-27-07 Revised Item 7CITY OF SOUTH MIAMI
INTER - OFFICE MEMORANDUM
South Miami
AU- America City
I I I I if
2001
To: The Honorable Mayor Feliu and Members of the City Commission
Via:
From:
Date:
Yvonne S. McKinley, City Manager
Eliza Rassi
Finance Director
November 13, 2007
N I M_ N
Agenda Item No.:.
Subject: Resolution to authorize the City Manager to negotiate an interest rate and
enter into a short term loan agreement (bridge loan) with the Florida
League of Cities Municipal Loan Council to allow construction of the
municipal parking garage project to continue during the period of time the
City secures a loan from the FMLC next bond issue.
Resolution: A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF SOUTH MIAMI, FLORIDA, RELATING TO
FINANCE; AUTHORIZING THE CITY MANAGER TO
NEGOTIATE A BRIDGE LOAN FOR AN AMOUNT NOT TO
EXCEED $1,000,000 NET AND A PERMANENT LOAN FOR
AN AMOUNT NOT TO EXCEED $1,000,000 NET, FOR THE
COMPLETION OF CONSTRUCTION OF A PUBLIC
PARKING GARAGE LOCATED AT S.W. 73RD STREET, FOR
REFINANCING THE PROPERTY, WHICH CONSTITUTES
MARK RICHMAN PROPERTIES CONTRIBUTION TO THE
PROJECT; AND PROVIDING FOR AN EFFECTIVE DATE.
Backup Documentation:
❑ Resolution
D Florida Municipal Loan Council Revenue Bond Program
Application
❑ Resolution 169 -07 -12554
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RESOLUTION NUMBER:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF SOUTH MIAMI, FLORIDA, RELATING TO FINANCE;
AUTHORIZING THE CITY MANAGER TO NEGOTIATE A BRIDGE
LOAN FOR AN AMOUNT NOT TO EXCEED $1,000,000 NET AND A
PERMANENT LOAN FOR AN AMOUNT NOT TO EXCEED $1,000,000
NET FOR THE COMPLETION OF CONSTRUCTION OF A PUBLIC
PARKING GARAGE LOCATED AT S.W. 73RD STREET FOR
REFINANCING THE PROPERTY WHICH CONSTITUTES MARK
RICHMAN PROPERTIES CONTRIBUTION TO THE PROJECT; AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, on October 11th, 2007 the Mayor and City Commission approved Resolution no.
169 -07 -12554 authorizing the City Manager to pay $300,000 from its Undesignated Fund
Contingency Cash Reserve; and
WHEREAS, and parking garage project is near completion and the City desires not to
delay it any further; and
WHEREAS, the Mayor an City Commission authorized the City Manger to seek a loan form the
Florida League of Cities in an amount of $1,000,000 and reimburse the undesignated contingency
$300,000 and the remainder to be used for completion of the parking; and
WHEREAS, it is in the best interest of the City to secure a bridge loan as soon as possible.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF SOUTH MIAMI, FLORIDA:
3. Section 1. The City Manager and the City Attorney are authorized to make application to
the Florida Municipal Loan Council and to negotiate the interest rate and the terms and conditions for
a bridge loan and a permanent loan for the purposes and the amounts stated in the "Whereas" clauses.
The loan documents shall be presented to the Mayor and the City Commission and shall not take
effect until approved ed by the City Commission a required by the city charter
Section 3. This resolution shall take effect immediately upon approval.
PASSED AND ADOPTED this _day of 2007.
ATTEST: APPROVED:
CITY CLERK
READ AND APPROVED AS TO FORM:
CITY ATTORNEY
MAYOR
Commission Vote:
Mayor Feliu:
Vice -Mayor Wiscombe:
Commissioner Birts:
Commissioner Palmer:
Commissioner Beckman:
APPLICATION
FLORIDA MUNICIPAL LOAN COUNCIL REVENUE BOND PROGRAM
Administered by the Florida League of Cities, Inc.
DATE: November 06,2007
BORROWER: City of South Miami, FL
Nagin, Gallop & Figuerddo
CONTACTNAME: Eliza Rassi CITYATTORNEY: Luis Figueredo
ADDRESS: 6130 Sunset Dr. ADDRESS: 18001 Old Cutler Rd., Ste. 55(
Rnnth Miami, FL 33143 Miami, FL. 33157 -6416
PHONE: 'in5 668 -3861 PHONE: -in5 —R54-5353
FAX: 305 663 -6346 FAX: 305 - 854 -5351
E -MAIL: erassincityofsouthmiami.neSE -MAIL'
ANTICIPATED DATE FUNDING IS NEEDED: December, 2007
ESTIMATED PROJECT FUNDS NEEDED: $ 1., 000,, 000.00 net.
NEW MONEY AND /OR REFUNDING: New
MATURITY: Thirty Years (30)
SECURITY FOR LOAN:
DESCRIPTION OF PROJECT: Parking Garage Completion
IS THE PROJECT TO BE OWNED BY THE BORROWER AND USED FOR A
GOVERNMENTAL PURPOSE?
DO YOU HAVE ANY OTHER OUTSTANDING DEBT SECURED BY THE SAME
REVENUES AS THIS LOAN?
DOES CHARTER REQUIRE THAT THE ISSUANCE OF DEBT BE APPROVED
THROUGH ADOPTION OF A RESOLUTION OR AN ORDINANCE: Yes
IF PURPOSE OF LOAN IS FOR REFUNDING OUTSTANDING DEBT, PLEASE LIST -
THE FOLLOWING & PROVIDE A COPY OF OUTSTANDING LOAN DOCUMENTS.
Current Amount Outstanding $ Date of Issuance
Purpose of the loan
Amount of Remaining Proceeds, if any
Prepayment Penalty, if any
Maturity Date
RESOLUTION NO.: 1 6 9_ n 7_ 1 2 s S a
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF SOUTH MIAIVII, FLORIDA, RELATING TO
UNDESIGNATED CONTINGENCY CASH RESERVE FUND;
AUTHORIZING THE CITY MANAGER TO ISSUE PAYMENTS
REQUIRED UNDER THE CONSTRUCTION AGREEMENT
WITH MRP FOR CONTINUING CONSTRUCTION COSTS AND
TO RECONSTRUCT THE ROADWAY AND SIDEWALK FOR
THE AREA SURROUNDING THE MUNICIPAL PARKING
GARAGE LOCATED AT SW 73RD STREET AND SW 58TH
COURT; TO EXPEND THE FUNDS AS PROVIDEDUNDER THE
CONSTRUCTION PROCESS ESTABLISHED BY THE CITY OF
THE MUNICIPAL PARKING GARAGE; AND TO REPLACE
THE FUNDS TAKEN FROM THE UNDESIGNATED
CONTINGENCY CASH RESERVE FUND BY OBTAINING A
LOAN FROM THE FLORIDA LEAGUE OF CITIES, WHICH
LOAN SHALL BE REPAID BY THE CITY FROM THE
REVENUES RECEIVED, BY THE CITY FROM THE USE OF
THE PARKING GARAGE UPON OPENING; PROVIDING FOR
AN EFFECTIVE DATE.
WHEREAS, the Mayor and City Commission of the City of South Miami
previously approved the completion of the' design of the municipal parking garage
located at SW 73rd Street and SW 58`h Court; and
WHEREAS, pursuant to the Settlement Agreement between the City of
South Miami and Mark Richman Properties, and pursuant to the loan agreement
for the construction of the municipal parking garage, the City was to secure the
project funding for the completion of the project; and,
WHEREAS, due to a delay in the construction of the garage project that
resulted from litigation the prior administration and prior finance director used the
project funds earmarked for the construction of the project to make principal and
interest payments due on the loan, and,
WHEREAS, the portion of the project funds used to pay principal and
interest needs to be replaced in order to complete the construction of the garage
project; and,
Additions shown by underlining and deletions shown by ems.
Pg. 2,Res. No. 169 -07 -12554
WHEREAS, to maximize the use of the parking garage for the, residents
and businesses along Sunset during the holiday season, the City desires to
complete the final phase of construction prior to November 2007; and,
WHEREAS, the final requirements under the construction process, requires
finishing touches on the municipal parking garage, and completion of the re-
construction of the roadway, to include the additional street, curbs, sidewalks,
streetlights and landscaping improvements that are not part of the original scope of
work of the garage project, as agreed; and
WHEREAS, City Commission on October 2fld, 2007, by acclamation,
authorized the continued construction of the roadway in order to complete
construction as proposed in the timetable; and
WHEREAS, in order to pay the vendors for this final portion of the
construction, the City Commission pursuant to Article II (D)(1), authorizes the
expenditure of non - budgeted funds; and,
WHEREAS, it is in the best interest of the City to timely complete the
construction of the parking garage and to seek a loan from the Florida League of
Cities, which loan will be used to pay back the undesignated contingency cash
reserve, and which loan shall be repaid by using the City's revenues from the
operating parking garage over the term of the loan.
NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA;
Section 1: The City Manager is authorized to pay the final $300,000 in
construction costs for the Municipal Parking Garage located at SW 73rd Street and
SW 58b Court from the undesignated contingency cash reserve that has a current
balance of $1,915,608. Thereafter, upon completion of the garage, the City shall
seek a loan from the Florida League of Cities, which loan, if authorized, will be
used to pay back the undesignated contingency cash reserve. The loan shall be
repaid by using the City's revenues from the operating parking garage.
Section 2: That as part of the settlement agreement, Mark Richman
Properties will be responsible for repaying the loan proceeds, except the $300,000.
Section 3: That this resolution shall take effect immediately upon
approval.
Page 2 of 3
Pg. 3 Res. No. 169 -07 -12554
PASSED AND ADOPTED this -6ky of October, 2007.
RE D AS TO RM:
Luis R. o,
OFFICE OF CITY ATTORNEY,
NAGIN, GALLOP & FIGUEREDO, P.A.
Page 3 of 3
wit
Im
Ty •
COMMISSION VOTE:
5 -0
Mayor Feliu:
Yee,
Vice Mayor Wiscombe:
Yea
Commissioner Birts:
Yea
Commissioner Palmer.
Yea
Commissioner Beckman:
Yea