2009-27051 ResoRESOLUTION N0. 2009-27C~:~1
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA DECLARING
THE OFFICIAL INTENT OF THE CITY OF MIAMI BEACH,
FLORIDA TO ISSUE TAX-EXEMPT BONDS IN ORDER TO,
AMONG OTHER THINGS, REIMBURSE ITSELF FROM THE
PROCEEDS OF SUCH BONDS FOR FUNDS ADVANCED BY
THE CITY FOR CERTAIN EXPENSES INCURRED WITH
RESPECT TO A PARKING GARAGE PROJECT; AND
AUTHORIZING CERTAIN INCIDENTAL ACTIONS.
WHEREAS, United States Treasury Regulations prescribe conditions under which procceds of
bonds, notes or other obligations used to reimburse advances made for certain expenditures paid before
the issuance of such obligations, 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 (collectively, the "Code), so that upon such reimbursement the
proceeds so used will not further be subject to requirements or restrictions under those sections of the
Code; and
WHEREAS, certain provisions of those regulations require that there be a declaration of official
intent not later than 60 days following payment of the expenditure expected to be reimbursed from
proceeds of such obligations, and that the reimbursement occur within prescribed time periods after the
expenditure is paid or after the property is placed in service; and
WHEREAS, in connection with a parking garage project cominonly referred to as the "Purdy
Garage," including the acquisition of land therefor, the construction of the garage and related
appurtenances (collectively, the "Project"), to be financed with tax-exempt bonds (the `Bonds") to be
issued by the City of Miami Beach, Florida (the "City"), the City has incurred and expects to incur
expenses for which the City has advanced and will advance internal funds; and
WHEREAS, to the extent permissible under the Code, the City intends to reimburse itself for such
advances from a portion of the proceeds of the Bonds.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA:
Section 1. Definitions. The following definitions apply to the terms used herein:
"Reimbursement" or "reimburse" means the restoration to the City of money temporarily
advanced from its other funds and spent for capital expenditures (and certain other types of expenditures
qualifying under the Reimbursement Regulations, including any issuance costs for Reimbursement Bonds)
before the issuance of the Reimbursement Bonds, evidenced in writing by an allocation on the books and
records of the City that shows the use of the proceeds of the Reimbursement Bonds to restore the money
advanced for the original expenditure. "Reimbursement" or `reimburse" generally does not include the
refunding or retiring of bonds previously issued and sold to, or borrowings from, unrelated entities.
MIAMU4238793.1
"Reimbursement Bonds" means Bonds the proceeds of which are to be used for reimbursement of
such capital or other qualifying expenditures paid before issuance of the Bonds.
"Reimbursement Regulations" means Treasury Regulations Section 1.150-2 and any amendments
thereto or superseding regulations, whether in proposed, temporary or final form, as at the time applicable,
prescnbing conditions under which the proceeds of Reimbursement Bonds when allocated or applied to a
reimbursement will be treated as expended for all or any purposes of Sections 103 and 141 to 150 of the
Code.
Section 2. Declaration of Official Intent. The City hereby declares its official intent to issue the
Bonds in the expected maximum principal amount not to exceed $28,000,000, a portion of the proceeds
of which will, to the extent permiss~le under the Code, be used to reimburse the City for funds advanced
by it for expenses incurred and to be incurred with respect to the Project. This Resolution is intended as a
declaration of official 'intent under Treasury Regulation § 1.150-2.
Section 3. Incidental Action. The appropriate officers of the City are hereby authorized to take
such actions as may be necessary to carry out the purpose of this Resolution and the Code.
Section 4. Effective Date. This Resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED this 22ndday of April , 2009.
(Seal)
City Clerk
Robert Parcher
Mayor
Matti Herrera Bower
APPROVED AS TO
FORM & LANGUAGE
2
MIAMV4238793.1
COMMISSION ITEM SUMMARY
Condensed Title
A resolution declaring the official intent of the City Of Miami Beach, Florida to issue tax-exempt bonds in
order to, among other things, reimburse itself from the proceeds of such bonds for funds advanced by the
city for certain expenses incurred with respect to a parking garage project; and authorizing certain inc~lental
actions.
Kev Intended Outcome Suor~orted:
Improve Parking Availability; Increase Commercial Service Options
Supporting Data - 2007 Survey: 77% of residents rated availability of parking across Miami Beach as too
little or much too little.
Issue: Shall the Mayor and City Commission approve the Purchase and Sale Agreement?
Item Summary/Recommendation: The Mayor and City Commission authorized and approved an
agreement with the Scott Robins Companies, Inc., Purdy Partners, LLC, Purdy partners 1919, LLC, and 1849
Purdy Partners, LLC, to acquire certain air rights, and a portion of the land, for the development of parking
garage (The "Purdy Garage") with ground floor retail at their December 10, 2008 meeting.
The City has incurred and expects to incur expenses for which the City has advanced and will advance
internal funds in connection with the Purdy Garage, including the acquisition of land, air rights, and design and
construction of the garage and related appurtenances (collectively, the "Project"), which is expected to be
financed with tax-exempt bonds (the "Bonds") to be issued by the City of Miami Beach, Florida (the "City'). The
City intends to reimburse itself for such advances from a portion of the proceeds of the Bonds.
In the attached Resolution, the City hereby declares its official intent to issue the Bonds in the expected
ma~timum principal amount not to exceed $28,000,000, a portion of the proceeds of which will, to the extent
permissible under the Internal Revenue Code of 1986, as amended, and the regulations promulgated
thereunder, be used to reimburse the City for funds advanced by it for expenses incurred and to be incurred
with respect to the Project.
The Administration recommends that the Mayor and Commission hereby adopt the resolution declaring the
official intent of the City of Miami Beach, Florida to issue tax-exempt bonds in order to, among other things,
reimburse itself from the proceeds of such bonds for funds advanced by the city for certain expenses incurred
with respect to a parking garage project; and authorizing certain incidental actions.
Adviso Board Recommendation: N/A
Financial Information:
Source of Amount Account
Funds: 1 N/A
2
3
OBPI Total
Financial Impact Summary: None
City Clerk's Office Legislative Tracking:
Patricia D. Walker, Chief Financial Officer
~ Department Director ~ n Assistant City Manager ~ City Manager ~
m MIAMIBEACH
AGENDA ITEM C'~ L
DATE y-aa~o 9
m MIAMIBEACH
City of Miami Beaeh, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
To: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: April 22, 2009
sug1ECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA DECLARING THE OFFICIAL INTENT OF
THE CITY OF MIAMI BEACH, FLORIDA TO ISSUE TAX-EXEMPT BONDS IN
ORDER TO, AMONG OTHER THINGS, REIMBURSE ITSELF FROM THE
PROCEEDS OF SUCH BONDS FOR FUNDS ADVANCED BY THE CITY FOR
CERTAIN EXPENSES INCURRED WITH RESPECT TO A PARKING GARAGE
PROJECT; AND AUTHORIZING CERTAIN INCIDENTAL ACTIONS.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The Mayor and City Commission authorized and approved an agreement with the Scott
Robins Companies, Inc., Purdy Partners, LLC., Purdy partners 1919, LLC., and 1849
Purdy Partners, LLC. to acquire certain air rights, and a portion of the land, for the
development of parking garage (The "Purdy Garage") with ground floor retail at their
December 10, 2008 meeting.
The City has incurred and expects to incur expenses for which the City has advanced
and will advance internal funds in connection with the Purdy Garage, including the
acquisition of land, air rights, and design and construction of the garage and related
appurtenances (collectively, the "Project"), which is expected to be financed with tax-
exempt bonds (the "Bonds") to be issued by the City of Miami Beach, Florida (the "City").
The City intends to reimburse itself for such advances from a portion of the proceeds of
the Bonds.
In the attached Resolution, the City hereby declares its official intent to issue the Bonds
in the expected maximum principal amount not to exceed $28,000,000, a portion of the
proceeds of which will, to the extent permissible under the Internal Revenue Code of
1986, as amended, and the regulations promulgated thereunder , be used to reimburse
the City for funds advanced by it for expenses incurred and to be incurred with respect to
the Project.
CONCLUSION
The Administration recommends that the Mayor and Commission hereby adopt the
resolution declaring the official intent of the City of Miami Beach, Florida to issue tax-
exempt bonds in order to, among other things, reimburse itself from the proceeds of
such bonds for funds advanced by the city for certain expenses incurred with respect to
a parking garage project; and authorizing certain incidental actions.
JMG/PDW
T:\AGENDA\2009\April 22\Consent\Parking Bonds -Declaration Of Intent -.Doc