2000-23796 RESO
RESOLUTION NO.
2000-23796
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING THE FINANCING STRATEGY FOR
THE RENOVATION OF THE BAYSHORE AND NORMANDY SHORES GOLF
COURSES AND CLUBHOUSES AND AUTHORIZING THE FINANCE DIRECTOR
TO TAKE ALL NECESSARY ACTIONS SUBJECT TO THE FINAL APPROVAL
OF LOAN DOCUMENTS BY THE MAYOR AND CITY COMMISSION.
WHEREAS, on October 20, 1999, the Mayor and City Commission approved the overall
plan for the renovation of the Bayshore and Normandy Shores Golf Courses and Clubhouses and
authorized the Administration to develop a plan to provide the necessary financing to implement the
project; and
WHEREAS, accordingly, the Administration would recommend that the City obtain a loan
from the City of Gulf Breeze, Florida, Local Government Loan Program, in an amount currently
estimated to be between $14,000,000 and $15,000,000; and
WHEREAS, of this proposed amount, approximately $10,000,000 will be used to fund the
improvements to the Bayshore Clubhouse and Golf Course; and $5,000,000 will be used to fund the
Normandy Shores Clubhouse renovations and Golf Course improvements; and
WHEREAS, the Administration recommends the afore stated program because it provides
the lowest estimated cost of financing to the City and, accordingly, the Administration would request
approval for the proposed financing strategy, all as more specifically detailed in the attached
Commission Memorandum, dated February 9, 2000, and attached and incorporated hereto as Exhibit
"A"; and
WHEREAS, the Administration would further request authorization for the Finance Director
to take any and all necessary actions to obtain this financing, subject to final approval of loan
documents by the Mayor and City Commission.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA that the Mayor and City
Commission herein approve the financing strategy for the renovation ofthe Bayshore and Normandy
Shores Golf Courses and Clubhouses and authorize the Finance Director to take all necessary actions
subject to the final approval of loan documents by the Mayor and City Commission.
PASSED and ADOPTED this 9th day of February, 2000.
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APPROVED Ac; "f ()
FORM & LANGU/;/',:
& FOZ,UTION
, .;t:-1- <:2_ ?>
rty Attorney ,
AiU~tt P{U~
CiTY CLERK
MAYOR
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
htlp:\\ci .miami-beach. fl.us
COMMISSION MEMORANDUM NO. 13 b -00
TO:
Mayor Neisen O. Kasdin and
Members of the City Commission
Lawrence A. Levy \ ~
City Manager ~
DATE: February 9, 2000
FROM:
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING THE FINANCING
STRATEGY FOR THE RENOVATION OF THE BAYSHORE AND
NORMANDY SHORES GOLF COURSES AND CLUBHOUSES AND
AUTHORIZING THE FINANCE DIRECTOR TO TAKE ALL NECESSARY
.. ACTIONS SUBJECT TO THE FINAL APPROVAL OF LOAN DOCUMENTS
BY THE MAYOR AND CITY COMMISSION
ADMINISTRA TION RECOMMEND A TION:
Adopt the resolution.
ANALYSIS:
On October 20, 1999 the Mayor and City Commission approved the overall plan for the renovation
of the Bayshore and Normandy Shores Golf Courses and Clubhouses and authorized the
Administration to develop a plan to provide the necessary financing to implement the project.
The Administration is recommending that the City obtain a loan from the City of Gulf Breeze,
Florida, Local Government Loan Program in an amount currently estimated to be between
$14,000,000 and $15,000,000. Of this amount approximately $10,000,000 will be used to fund the
improvements to the Bayshore Clubhouse and Golf Course and $5,000,000 will be used to fund the
Normandy Shores Clubhouse renovations and Golf Course improvements. Additionally, $750,000
of the recently approved General Obligation Bond will be used to supplement the Gulf Breeze Loan
funds for the Clubhouse project at Normandy Shores.
This program is recommended because it provides the lowest estimated cost of financing to the City.
The Gulf Breeze Loan Program has offered to pay certain issuance costs for the City for the
$5,000,000 portion for the Normandy Shores Golf Course improvements.
AGENDA ITEM
R1G
2.-9 -0 0
DATE
In addition, the Program has made a sufficient amount of pre-1986 Bond Funds available to cover
the cost of the improvements for the Bayshore Golf Course. These improvements have private
activity implications because of the proportion of revenues expected to be generated from the
proposed use of "or pay" contracts with hotels. This type of financing provides the City with funds
at tax exempt interest rates that would otherwise be at taxable rates and will represent a savings of
between 150 and 200 basis points on approximately $10,000,000 of the loan.
Attached is a debt service schedule which reflects a $15,000,000 loan over a 20 year term using a
level debt service structure. This structure is flexible, subject to approval of the insurer of the bonds,
and will be adjusted to best match the proposed net operating income available for the debt service
payments generated by the courses. The amount of the loan will be adjusted to the final estimated
project cost prior to the date of pricing. Interest rates will be determined at the date of pricing and
will be at tax exempt rates. The City will offer a covenant to budget and appropriate the debt service
from any legally available non-Ad Valorem revenues as the security for the loan. Based on the
feasibility consultant's analysis it is anticipated that the net operating income from the two courses
will be sufficient to cover the debt service on an annual basis.
The Administration is requesting approval for this financing strategy and authorization for the
Finance Director to take all necessary actions to obtain this financing subject to the final approval
of loan documents by the Mayor and City Commission.
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CITY OF GULF BREEZE, FLORlDA
LOCAL GOVERNMENT LOAN PROGKAM
CITY OF MIAM/BEACH REVENUE BONDS
(PRIVA TE Ie PUBLIC PUKPOSEJ
DEBT SERVICE SCHEDULE
O.le Pnneil'al Coupon In!acs1 TOlal r+! FISCAL 10TAL
3/01/2000 . . . -
4/01/2000 - 68,665.:50 65.66330 .
10/01/2000 250,000.00 4000% .1 I ,!I79.75 661,979.75 730,64!.05
4/01/2001 . . 406,97!l.75 406,979.73 -
10/01/2001 440,000.00 ".100% 406,919.75 846,979.75 1,255,959.50
4/01/2002 . - 397,959.15 397,959.75 .
10/01/1002 .60,000.00 4.630\1 !91,9S9.75 851,959.75 1,155,919.50
./olncos . . 3&7,310.15 587,3] 0.75 .
10/01/1003 480,000.00 ...130% 387,810.15 867,310.75 1,25-4,621.50
4/01/ZeO. . 375,95&.15 315,958.75 .
10/01/1004 50S ,000.00 4.350% 375,958.75 &80,958.75 1,256,917.50
4/01/2.OOS . - 363,711.50 363,712.50 -
10/0111005 525.000.00 4.9S0'l(, :563,712.50 8M,712.50 1,252,425.00
4/01/Z0a6 . . SPO,718.75 350.718.75 -
10/01/2.006 555,000.00 5.050% 330,71&.75 905,718.75 1,256,4:\7.50
4/01/2007 . . 336,705.00 536,705.00 -
10/01/2.007 585,000.00 S.13O% 356,705.00 911,705.00 1,2S8.410.oo
4/01/2008 - . !11,699.75 -'21,699.75 .
10/0112008 il5,OOO.00 5.2()O'l(. 321,699.75 936,699.75 1,25&,399.50
4/01/2009 - - 305,709.75 305,709.75 .
10/011Z009 6<15,000.00 5.270'K :505,709.75 950,709.75 1,236,419.50
4/01/2010 . . 214,714.00 ZS&,714.oo .
10/01/2010 675.000.00 5.11"'" 288.714.00 963,714.00 1,252,418.00
4/01/2011 . . %70.725.25 270,725.23 .
10/01tZ011 715,000.00 !l.~60. 270.725.25 945,72S.25 1,156,450.50
4/01/2012 . . 251.205.75 251,105.75 .
101011Z0U 750,000.00 5.SS0" 25\,205.75 1,001,205.75 1,251,<111.50
4/01/2013 . . 230.468.25 230,46&.25 .
10/01/2013 795,000.00 5.6"'" 230,.68.25 \ ,025,4 68.25 1,255,936.50
<1/0\12014 . . 20S,oU.OO 208,0119.00 -
10/01l20\~ &40,000.00 5.720% 2011,089.00 \ ,04&,089.00 1,256,178.00
4/01/2015 . - 184,0105.00 1&4,065.00 .
10/0t/2015 U5,ooo00 U~ 184,065.00 1,069,065.00 1,253,130.00
4/01/2016 . . 1Sll~OO.oo 15&,400.00 .
10/0112016 935,000.00 6.000li 158,400.00 1.093,400.00 1,251,SOO.00
4/01/2017 . . 130.!50.o0 130,.150.00 -
10/0112017 995,000.00 6.~ 130,350.00 1,125,350.00 1,205,700.00
<I/Ot/20111 . . 100,500.00 100,500.00 .
1 % 11201 S l,OSOpoo.oo 6.000" 100,500.00 1,\ 50,500.00 \,2S1POO.OO
4/01/%019 .. . 69,000.00 69,000.00 -
10/01/1019 1,115,000.00 6.000% 69,000.00 1,184,000.00 1 ':55.000.00
<1/01/2020 . . 55,550.00 55,550.00 .
10/01/2020 1,135,000.00 6.000" 35,550.00 1,220,550.00 1,256,100.00
Total 15,000,000.00 . 10,821.281.05 251128,187.05 .
ISSUE S1.JHMAAY: PRIVI.TE & PU!!UC PURPOSE
YIELD STAnsncs
Bond Year 00llan~.................."""'-'-''''''''''''''''''''''''''''
AvcrtA3" wc.....................................................................
AYel'll8C Coupon......-........-...........................................
$190,2<10.00
1%.683 YCArs
5.6919011710
NCllnlcl'l!Sl C~t (Nlel.....................................................
Tl'Ilc Inlerctl Cast mC) ....................................................
IlOnd Yield for /u'bitr~ Purposa...................................
AlIl...:lu1ive Co.II (A1C).................................................
5.7549869%
5,7S3<142S'll.
5.78311873%
5.9256515'Jl.
IRS ro\U\l\ 6038
Nct Interest C091................................................................
WClshted Average M.luril;f..........................................
5.7195551:"
12..599 VCllrs
WIWA.W R. IfOUGff ~ ca . CC
fIJbIic Fi1l'I/U%
File s Mi.mi/JCJI.sf-GlILI1J8ZE-/lEV.lsmc $u",muy
2/3/2000 3:081'/1/
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02/03/00
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ISSUE SUMMARY; PRIVATE' PUBLIC PURPOSE
CITY OF GULF BREEZE, FLORIDA
LOCAL COVERNMENT LOAN PROGRAM
CITY OF MlAMI BEACH REVENUE BONDS
(PRlVA TE & PUBLIC pUllPOSE)
PROJEcr SUMMARY
Delivered 03/01 /2000
SOUR-CES AND USES OF FUNDS
I'Br Amount of llonds..........................................m............................... ............................
TOTAL sOullCtS...........................................................................m ..... ...........................
Total Uncl.erwri1l:1'S DiJc:ount (0.800%)....................,.....................................................
Co5ls of wuallCc.... ........................... ..................... ............,.. ....m . ... ....................... ...........
Gross Bond In.,ur:mcc Premium (<16.7 bp)................m..................................................
Deposit 10 Pl.'ojcet ColU\1'IICtion Fund................................................................................
~U.ndll'1S Amou.nt............................... .........................,............... ..... ........................ .........
TOT Ai USES........................................................................................................................
FLOW OF FUNDS DETAIL
Stale and LOcal Government Se~' (SLGS) nles Cor......................................................
PiL~R.V rolU'OSI. nlNO SOLUnON MtTHOD..........................................................
Total Cost of Invesb11e1lts.................. ....................................... ........... ............... ................
T01AL OllA ws........................................................................ ...........................................
PRESENT V AWE ANALYStS SUMM.A!1.Y (NET TO Nm
NET PI1.ESII'IT Y ALUl BINrm..........................................................................................
NET fI/ BL"lEFIT / .. UFUNOED P1UNCI:J'AL........................................................
BOND STATISllCS
Ave~c Life........................................................................-..............................................
AverAge ecllpOn........... ..................... ......................... ............. ...................... .............. .......
Nellnkrest ec$l (NlC)........ ............ ...................................................................................
Bond. Yield for Arbitrage I'IIrpos.es............................. ......................................................
True: Interest CD.! (jtC)....................................................................................................
^n bu:luslVc COSt (AIC) ............ ............ ........................... ........... ........................................
PlUV A n: PUBUC luuc SummllI'Y
$10,000,000.00 $5,000,000.00 515.000,000.00
$10,000,00000 55,000,000.00 S15,OOO,OOO.OO
120,000.00 120,000.00
44,000.00 10,000.00 54,000.00
120,5S8.75 lZO,558.75
9,715,000.00 4,990,000.00 14,705,000.00
4.1.2S 441.25
~lO.OOO,OOO.OO 55,000,000.00 515,000,000.00
Net Fund.ed !'lei funded
$,,715,000.00 H,990,000.00
59,71 !.OOO.OO $4.990,00000
Net Funded
$14,705,000.00
514.705,000.00
12.605 ,'ears 12.587 VclU'S 12.689 Yeus
5.72:9&591 " 5.72ll947696 5.6919087%
5.825056996 5.7289476% !I.7549869%
5.785887S% 5.7833873'1!. 5.7838873%
5.8S 16552% 5.6a73208'36 5.7834425%
6.0317833'1& 5.7114714% 5.9236515.....
WIJJ.JA,.1II R. HOtJGH'" CO. . CG
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