96-22110 RESO
RESOLUTION HO. 96-22110
.I. RBSOL'OTIOK or TIll: MAYOR .I.ND CITY COMIIISSION
OJ' TBB CITY OP m.ua BJIACR, ALLOCATnTG RESORT
TU rcDIJ)S, IF AVAILABLE, AW CBaTAIH' O'rBBR
NOliI'-.Al) VALOI.BM rcDIJ)S AS DESCRIBED HEDIN POR
UPAYKDTT OJ' THE SBC'1'IOB 108 BtJI) LOAN POR. "1"BE
Lons JaAXI DBACB BO'1'BL PR.OJBCT.
WBXREAS, On July 17th, 1996, the Mayor and City Commission
passed a resolution authorizing the City Manager to execute the
funding approval agreement and all applicable documents between the
City of Miami Beach (the "City") and the U.S. Department of HUD for
the Section 108 Loan for the Loews Miami Beach Hotel project; and,
WBBRDS, the Section 108 Loan will be amortized over a 20-year
period, and is expected to be repaid fram a combination of sources
including the EDI Grant, ground rent from the Loewe Miami Beach
Hotel and the African-American Hotel proj ects and legally available
resort tax funds; and'
WHEREAS, enough moneys from said sources may at times not be
available to satisfy the amortization of the Section 108 Loan and
the City is willing to covenant, subject to the limitations
contained below, to budget and appropriate sufficient Non-Ad
Valorem Funds (as defined below) to satisfy such shortfalls;
HOW THIlUPOU BB IT USOLVED BY THE HAYOR .um CITY COJGC:SSIOW
or "1'BB CITY OP MIAXI DBCB, 'LOJlIDA, that the Mayor and City
Commission allocate resort tax funds, but solely to the extent
legally available after satisfying all obligations (including
bonds) secured thereby from time to time, for repayment of the
Section 108 Loan as described in the Schedule contained in the
Commission memorandum, which is attached hereto and incorporated
herein. The allocation of resort tax funds for repayment of the
Section 108 Loan herein provided is junior, interior and
subordinate in all respects to all bonds outstanding from time to
time which are secured by a pledge of resort tax funds.
To the extent that the resort tax funds are insufficient to
satisfy the allocation herein provided, the City covenants and
agrees to budget and appropriate in its annual budget, by
amendment, if necessary, from Non-Ad Valorem Funds lawfully
available in each fiscal year, amounts sufficient to satisfy such
deficiency amounts. Such covenant and agreement on the part of the
City to budget and appropriate such amounts of Non-Ad. Valorem Funds
shall be cumulative to the extent not paid, and shall continue
until such Non-Ad. Valorem Funds or other legally available funds in
amounts sufficient to make all such required payments shall have
been budgeted, appropriated and actually paid. Notwithstanding the
foregoing covenant of the City, the City does not covenant to
D09:(04548.DOCS.MIA1a011'JRESO.
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maintain any services or programs, now provided or maintained by
the City, which generate Non-Ad Valorem Funds.
Such covenant to budget and appropriate does not create any
lien upon or pledge of such Non-Ad Valorem Funds, nor does it
preclude the City from pledging in the future its Non-Ad Valorem
Funds, nor does it require the City to levy and collect any
particular Non-Ad Valorem Funds, nor does it give a prior claim on
the Non-Ad Valorem Funds as opposed to claims of general creditors
of the City. Such covenant to appropriate Non-Ad Valorem Funds is
subject in all respects to the payment of obligations secured by a
pledge of such Non-Ad Valorem Funds heretofore or hereinafter
entered into (including the payment of debt service on bonds and
other debt instruments). However, the covenant to budget and
appropriate in its general annual budget for the purposes and in
the manner stated herein shall have the effect of making available
in the manner described herein Non-Ad Valorem Funds and placing on
the City a positive duty to budget and appropriate, by amendment,
if necessary, amounts sufficient to meet its obligations hereunder;
subject, however, in all respects to the restrictions of Section
166.241(3}, Florida Statutes, which provides that the governing
body of each municipality make appropriations for each fiscal year
which, in anyone year, shall not exceed the amount to be received
from taxation or other revenue sources; and subj ect further, to the
payment of services and programs which are for essential public
purposes affecting the health, welfare and safety of the
inhabitants of the City or which.are legally mandated by applicable
law.
"Non-Ad Valorem Funds" as used herein means all revenues of
. the City derived fram any source other than ad valorem taxation on
real or personal property, which are legally available to make the
above payments, but only after provision has been made by the City
for the payment of all essential or legally mandated rvices.
PASSED and ADOPTED this 11th day 0
ATTEST:
-R 0 G-LvrP QA~
CITY CLERK
FORM APPRC\icD
L{i:L OEPT
By _ :,,9/; ,
Date 1 /10/ q{, --
2
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