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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. , . 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 DD9:tD4548.DOCS.MIA18011SJRESO.