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RESOLUTION 90-19885 RESOLUTION NO. 90-19885 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA PLEDGING THE PUBLIC SERVICE TAX LEVIED BY THE CITY PURSUANT TO SECTION 166 . 231, FLORIDA STATUTES, TO THE EXTENT PROVIDED HEREIN AND ON A BASIS SUBORDINATE TO CERTAIN OTHER OBLIGATIONS SECURED BY SUCH TAXES, TO THE PAYMENT OF THE MIAMI BEACH RE- DEVELOPMENT AGENCY TAX INCREMENT REVENUE BONDS, SERIES 1989 . WHEREAS, pursuant to Resolution No. 81-89 adopted on June 21, 1989 and Resolution No. 87-89 adopted on November 15, 1989 (collec- tively, the "Bond Resolution") , the Miami Beach Redevelopment Agency (the "Agency") intends to issue not exceeding $7 , 000 , 000 o f Tax Increment Revenue Bonds, Series 1989 (together with additional bonds issued under the Bond Resolution, the "Bonds") to finance the acquisition of certain land and the construction of certain related infrastructure improvements in the area of the City of Miami Beach, Florida (the "City") designated as the "South Pointe Redevelopment Area" (the "Project") , all for redevelopment purposes in accordance with the provisions of Chapter 163 , Part III , Florida Statutes, as amended; WHEREAS, on December 20, 1989, an Amended Final Judgment was entered in the Circuit Court of the 11th Judicial Circuit in and for Dade County, Florida against the City and the Agency in Stephen Carner, et al v. City of Miami Beach, et al. Cases No. 85-35879 CA- 19 and No. 86-10965 CA-19 (such amended Final Judgment and any other judgments against the Agency in connection with these cases are hereinafter collectively referred to as the "Final Judgment") ; WHEREAS, as a result of the Final Judgment, in order to improve the marketability of the Bonds, it has been determined that additional security should be pledged for the payment of the Bonds until such time as the Final Judgment has been satisfied of record or vacated and not subject to further appeal; and, in connection therewith, the Agency has requested the assistance of the City; and WHEREAS, because of the importance of the Project to the economic development of the City, the City is willing and desires to provide such assistance by pledging the available Public Service Tax levied by the City pursuant to Section 166 . 231, Florida Statutes (the "Public Service Tax") to the payment of the Bonds, but only to the extent provided herein and on a basis subordinate to certain other obligations secured by such tax. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: 1. This resolution is adopted pursuant to Chapters 163 and 166, Florida Statutes, and other applicable provisions of law. 2 . As further security for the payment of the Bonds, the City hereby pledges, but only in the manner and subject to the limitations contained herein, the available Public Service Tax in an amount sufficient to make up shortfalls in the Debt Service Reserve Account established under the Bond Resolution (the "Debt Service Reserve Account") on a basis subordinate to the pledge thereof for the benefit of the Dade County, Florida Special Obligation and Refunding Bonds (Miami Beach Convention Center Project) Series 1987A and Special Obligation Bonds (Miami Beach Convention Center Project) Series 1987B (collectively, the "Senior Bonds") and on a parity with the pledge thereof for the benefit of the City' s Subordinate Special Obligation Bonds, Series 1989 (the "Parity Bonds") . Such Public Service Tax so pledged is hereinafter referred to as the "Supplemental Revenues" . • If at any time the amounts held on deposit in the Debt Service Reserve Account shall be less than the Reserve Account Requirement (as defined in the Bond Resolution) , but only if such shortfall is the result of a successful legal proceeding against the Trust Fund Revenues (as defined in the Bond Resolution) arising out of the Final Judgment, the City shall immediately deposit with the Trustee sufficient Supplemental Revenues to make up such shortfall. The pledge hereunder shall automatically terminate and the Supplemental Revenues shall be released hereunder at such time as the Final Judgment (i) has been satisfied of record or (ii) vacated and not subject to further appeal; provided, however, that such pledge shall remain in effect until such time as any shortfalls described in the preceding paragraph have been fully funded. 3 . The City does hereby covenant that so long as the pledge hereunder remains in effect, it will not use or pledge the Public Service Tax or the Supplemental Revenues, except for the current pledge and use thereof in connection with the Senior Bonds, the Parity Bonds and as provided and permitted in this Resolution, nor repeal or amend Ordinance No. 87-2574, enacted by the City on July 15 , 1987, as supplemented, pursuant to which the Public Service Tax is levied in any manner which would adversely affect the priority or payment of the Bonds or the rights of the holders thereof. Notwithstanding the foregoing, the City may (i) further pledge the Public Service Tax on a parity or subordinate basis to the Bonds without limitation or (ii) utilize the Public Service Tax for any other lawful purpose without limitation. In the event, however, that the Supplemental Revenues are necessary to meet any funding requirements hereunder, the Public Service Tax shall only be used for such other lawful purposes after the City satisfies the applicable funding requirements in connection with the Senior Bonds, the Parity Bonds, the Bonds and any additional existing parity pledges. Supplemental Revenues shall be allocated among parity obligations on a pro-rata basis as such obligations become due and payable. 4 . Nothing in this resolution shall be construed as consti- tuting a pledge of the City' s ad valorem taxing power or of its full faith and credit, but shall be a limited obligation of the City payable solely from the revenues pledged hereunder. 5. The officers, agents and employees of the City are hereby authorized and directed to do all acts and things required of them for the issuance of the Bonds by the Agency and perfection of the pledge hereunder. 6. This resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 17th day of January, 1990 . VICE-MAYOR ATTEST: //j FORM APPROVED City DEPT.ity Clerk Y Date ///2/90 - 2 - • Neetgete Fecie4 FLORIDA 3 3 1 3 9 4;,-;*\.$ 45 ,,ll *.INCORP;ORATE I*" �- ••r C TI NL A ND U. S. A. � � A A U OFFICE OF THE CITY MANAGER CITY HALL ROB W.PARKINS 1700 CONVENTION CENTER DRIVE CITY MANAGER TELEPHONE: 673-7010 l _6 CC COMMISSION MEMORANDUM NO, DATE: January 17, 1990 TO: Mayor Alex Dao - and Members of t. • City Co i• • FROM: Rob W. Par ' s v City Manager �., SUBJECT: CONDITIONAL S ONDARY PLEDGE ON TAX INCREMENT BONDS The City Commission in Resolutions #89-19650 and #89-19807 approved the issuance of not more than $7 ,000,000 in Tax Increment Revenue Bonds by the Miami Beach Redevelopment Agency. The Redevelopment Agency had planned on this issuance to occur in mid December; however, the joint verdict with the Amended Final Judgement on the Carner-Mason litigation issued December 20, 1989, has delayed this from occurring. The buyer of these Bonds, Merrill Lynch Funds, was concerned that even though Florida Statutes 163. 395 excluded Agency monies or property from attachment, there had been no court test of that statute. As additional security on the Bonds, we have proposed and the buyer has agreed to a Secondary Pledge of the Public Service Tax which could only be called on if the Tax Increment Revenues were attached to satisfy the Final Judgement. This item was recommended for Commission approval on January 2, 1990, and reported to the Commission on January 3, 1990. Administrative Recommendation The Administration recommends that the City Commission approve this Resolution placing a Conditional Secondary Pledge of the Public Service Tax to the repayment of the Tax Increment Revenue Bonds. RWP:RJN:sw 4�7 AGENDA ITEM DATE I 1/Jai ORIGINAL RESOLUTION NO. 90-19885 Pledging the public service tax levied by the City pursuant to Section 166.231, Florida Statutes to the extent provided herein and on a basis subordinate to cer- tain other obligations secured by such taxes, to the payment of the M.B. Redevelopment Agency Tax Increment Revenue Bonds, Series 1989.