96-21910 RESO
RESOLUTION NO. 96-21910
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA (THE "CITY") AUTHORIZING AND
DIRECTING THE CITY TO PROVIDE A LOAN TO THE MIAMI BEACH
REDEVELOPMENT AGENCY ("AGENCY"), PURSUANT TO THE
ATTACHED PROMISSORY NOTE, IN THE AMOUNT OF FIVE MILLION
FIVE HUNDRED THOUSAND DOLLARS ($5,500,000.00) FOR CERTAIN
EXPENSES TO BE INCURRED BY THE AGENCY WITH RESPECT TO
AGENCY IMPROVEMENTS, WHICH LOAN IS TO BE REPAID FROM
THE PROCEEDS OF THE ISSUANCE OF TAX INCREMENT REVENUE
BONDS.
WHEREAS, the Miami Beach Redevelopment Agency (the "Agency") desires to implement
certain improvements on property located within the City Center/Historic Convention Village
Redevelopment and Revitalization Area; and
WHEREAS, the Agency has declared its official intent to issue tax increment revenue bonds
(the "Bonds") to finance the improvements; and
WHEREAS, the cost of all or a portion of the improvements may need to be funded prior
to the issuance of the Bonds; and
WHEREAS, the Agency does not have the resources to fund these improvements prior to
the issuance of the Bonds; and
WHEREAS, the Agency desires to borrow up to $5,500,000.00 from the City of Miami
Beach, Florida (the "City"), pursuant to the promissory note attached hereto and incorporated herein,
to pay for the costs of these improvements prior to the issuance of the Bonds.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA that:
Section 1. The City is authorized and directed to lend the Agency up to
$5,500,000.00, pursuant to the promissory note attached hereto and incorporated herein, in
connection with the costs of implementation by the Agency of certain improvements on property
located within the City Center/Historic Convention Village Redevelopment and Revitalization Area.
Section 2. The City Administration and the City Attorney's office are authorized
to take any and all necessary actions to effectuate the purpose of this Resolution.
Section 3.
This Resolution shall take effect immediately upon its passage.
PASSED and ADOPTED this 6th day of
ATTEST:
~ ftM<<LA
CITY CLERK
AIT\kw
c:wpwin60\resos\5mill.res
Attachment
fORM APPROVED
LEGAL DJPT. _
By iUt ~
Date S l -'6
2
CITY OF
MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
OFFICE OF THE CITY MANAGER
TELEPHONE: (305) 673-7010
FAX: (305) 673-7782
COMMISSION MEMORANDUM NO.
\ ~ 4 - '1.lo
March 6, 1996
To:
Mayor Seymour Gelber and
Members of the City Commission
From:
Jose Garcia-Pedrosa ~
City Manager Y"
Subject:
Resolution Authorizing the Loan of up to $5.5 Million to the Redevelopment
Agency to be Repaid from the Issuance of Tax Increment Revenue Bonds
Administrative Recommendation
The Administration recommends that the Mayor and City Commission adopt this resolution.
Background
The Administration of the Redevelopment Agency anticipates that a portion of the projects to be
funded from the issuance of Tax Increment Revenue Bonds will need to be funded prior to the
issuance of those Bonds. Without the proceeds of the bond issuance, the funds available to the
Redevelopment Agency are limited. The accompanying resolution will allow the Agency to borrow
up to $5.5 million from the City which will be repaid from the proceeds ofthe Tax Increment Bonds
which are anticipated to be issued in May, 1996. The resolution provides for the City to earn interest
at the prime rate monthly on this loan until repaid.
Conclusion
As this is a short term loan from the City to the Agency, the Agency is paying an interest rate equal
to or greater than the City can earn and it will allow the project to move forward, the loan to the
Agency should be approved.
JGP/RJN/cp
Agenda Item R '1 5
Date 3-10- ql.c
PROMISSORY NOTE
$5,500,000.00
MIAMI BEACH, FLORIDA
, 1996
FOR V ALUE RECEIVED, the undersigned, the Miami Beach Redevelopment Agency, a
public body corporate and politic ("Maker"), promises to pay to the order of the City of Miami
Beach, Florida, a Florida municipal corporation ("Payee"), at its offices at 1700 Convention Center
Drive, Miami Beach, Florida or at such other address in the United States of America as may be
specified in writing from time to time by holder hereof, the principal sum of FIVE MILLION FIVE
HUNDRED THOUSAND AND NO/loo DOLLARS ($5,500,000.00) (the "Loan"), or such lesser
principal amount as is outstanding, payable together with interest thereon from the date hereof at the
rate of PRIME per annum upon the unpaid balance from time to time outstanding until maturity,
same being payable, in lawful money of the United States of America, as follows:
The entire principal balance of the Loan together with all accrued and
unpaid interest on the Loan shall be due and payable in full on March
5, 1997.
The rate of PRIME per annum, as referenced above, shall be adjusted each month and shall
be the PRIME rate as stated in The Wall Street Journal on the first business day of the month. The
principal of this Note may be prepaid in whole or in part at any time and from time to time without
penalty or premium.
By virtue of this Note and subject to the conditions of this Note, Payee is creating a line of
credit in favor of Maker and Maker may draw upon this line of credit as often as it chooses as long
as the outstanding principal balance under this Note does not exceed Five Million Five Hundred
Thousand and NOlloo Dollars ($5,500,000.00) at any given time.
If default is made under this Note which default continues for a period of thirty (30) days
following written notice to the Maker, then at the option of the holder hereof, the entire outstanding
principal sum, together with all accrued and unpaid interest shall become immediately due and
payable.
Presentment for payment, demand notice of dishonor, protest and notice for protest are
hereby waived by all makers and endorsers hereof, together with all other requirements to hold each
of them liable as Makers and endorsers.
Any and all amounts payable under this Note shall be secured solely by Net Trust Fund
Revenues, as defined in Miami Beach Redevelopment Agency Resolution No. 150-94, adopted
January 5, 1994 (the "Resolution"). Such security, as referred to in the preceding sentence, is junior,
inferior and subordinate in all respects to the bonds issued pursuant to the Resolution as to lien on
and source and security for payment from the Net Trust Fund Revenues, as defined in the Resolution,
and in all other respects.
NUANU BEACH REDEVELOPMEN
a public ody corporate and politic
BY:
ATIEST:
R,~ p~
Robert Parcher, Secretary
AIT:kw
c:wpwin60\ait\promnote.rda
FORM APPROVED
REDEVELOPMENT AGENCY
GENERALCOU~ELI/ l
By Ail /(lJ~
7_r _~
Date ,.J t>
2
PROMISSORY NOTE
$5,500,000.00
MIAMI BEACH, FLORIDA
,1996
FOR VALUE RECEIVED, the undersigned, the Miami Beach Redevelopment Agency, a
public body corporate and politic ("Maker"), promises to pay to the order of the City of Miami
Beach, Florida, a Florida municipal corporation ("Payee"), at its offices at 1700 Convention Center
Drive, Miami Beach, Florida or at such other address in the United States of America as may be
specified in writing from time to time by holder hereof, the principal sum of FIVE MILLION FIVE
HUNDRED THOUSAND AND NO/lOO DOLLARS ($5,500,000.00) (the "Loan"), or such lesser
principal amount as is outstanding, payable together with interest thereon from the date hereof at the
rate of PRIME per annum upon the unpaid balance from time to time outstanding until maturity,
same being payable, in lawful money of the United States of America, as follows:
The entire principal balance of the Loan together with all accrued and
unpaid interest on the Loan shall be due and payable in full on March
5, 1997.
The rate of PRIME per annum, as referenced above, shall be adjusted each month and shall
be the PRIME rate as stated in The Wall Street Journal on the first business day of the month. The
principal of this Note may be prepaid in whole or in part at any time and from time to time without
penalty or premium.
By virtue of this Note and subject to the conditions of this Note, Payee is creating a line of
credit in favor of Maker and Maker may draw upon this line of credit as often as it chooses as long
as the outstanding principal balance under this Note does not exceed Five Million Five Hundred
Thousand and NOll 00 Dollars ($5,500,000.00) at any given time.
If default is made under this Note which default continues for a period of thirty (30) days
following written notice to the Maker, then at the option of the holder hereof, the entire outstanding
principal sum, together with all accrued and unpaid interest shall become immediately due and
payable.
Presentment for payment, demand notice of dishonor, protest and notice for protest are
hereby waived by all makers and endorsers hereof, together with all other requirements to hold each
of them liable as Makers and endorsers.
Any and all amounts payable under this Note shall be secured solely by Net Trust Fund
Revenues, as defined in Miami Beach Redevelopment Agency Resolution No. 150-94, adopted
January 5, 1994 (the "Resolution"). Such security, as referred to in the preceding sentence, is junior,
inferior and subordinate in all respects to the bonds issued pursuant to the Resolution as to lien on
and source and security for payment from the Net Trust Fund Revenues, as defined in the Resolution,
and in all other respects.
MIAMI BEACH REDEVELOPMEN
a public body corporate and politic
BY:
ATTEST:
R6~ p~
Robert Parcher, Secretary
FORM APPROVED
REDEVELOPMENT AGENCY
GENERAL COU EL
AIT:kw
c:wpwin60\ait\promnote.rda
By
l
Date
3-b -~
2