2015-3975 Ordinance ORDINANCE NO. 2015-3975
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, AMENDING THE CODE
OF THE CITY OF MIAMI BEACH BY AMENDING CHAPTER 102,
ENTITLED "TAXATION," BY AMENDING ARTICLE IV, ENTITLED
"RESORT TAX," BY AMENDING SECTION 102-307, ENTITLED
"IMPOSITION OF TAX; RATE," BY AMENDING SUBSECTION A
THEREOF REGARDING THE RATE OF THE TAX TO BE PAID
ON THE RENT OF EVERY OCCUPANCY OF A ROOM OR
ROOMS IN ANY HOTEL, MOTEL, ROOMINGHOUSE, OR
APARTMENT HOUSE IN THE CITY, PURSUANT TO SECTION
5.03(B) OF THE CITY CHARTER; PROVIDING FOR REPEALER,
SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE.
WHEREAS, the City is entitled to impose and collect a tax on the rent of every
occupancy of a room or rooms in any hotel, motel, or apartment house when the renting
is for the period of occupancy for imposition of a transient rental tax pursuant to Florida
Statute 212.03, as amended, and Section 5.03 of the City Charter (the "Resort Tax"); and
WHEREAS, in Resolution No. 2012-28004, the City Commission adopted the
certification of the official results of the August 14, 2012, special election, whereby the
electorate of the City of Miami Beach voted to impose an additional one percent (1%) on
the Resort Tax, to be "used solely for the purposes of expanding, enlarging, renovating,
and/or improving the Miami Beach Convention Center, including payment of debt service
related thereto," which provisions were subsequently codified in Section 5.03(b) of the
City Charter; and
WHEREAS, on May 21, 2015, the Mayor and City Commission adopted
Resolution No. 2015-29028, approving the CM-at-Risk Agreement between the City and
Clark Construction Group, LLC (the "Agreement"), authorizing pre-construction services
for the expansion, enlargement, renovation and improvement of the Miami Beach
Convention Center (the "MBCC Project") and specifying the terms and conditions for the
development and negotiation of a Guaranteed Maximum Price ("GMP") Amendment to
secure the delivery of the construction phase of the MBCC Project; and
WHEREAS, on October 21, 2015, the Mayor and City Commission adopted a
Resolution approving the GMP Amendment in the amount of $515,458,058.00 for the
MBCC Project, and which GMP Amendment, along with the Agreement, provides the
definitive terms and conditions of the City's agreement for the development and
expansion, enlargement, renovation and/or improvement of the MBCC Project, thereby
satisfying the requirement of Section 5.03(b) of the City Charter that the additional 1%
Resort Tax not be imposed until such time as the City has entered into an agreement for
the MBCC Project; and
WHEREAS, on October 14, 2015, the Mayor and City Commission adopted a
Resolution, authorizing, subject to the passage of this ordinance, the issuance of Resort
Tax Revenue Bonds, Series 2015, in the not-to-exceed amount of $240 million, for the
purpose of financing a portion of the MBCC Project; and
WHEREAS, in accordance with Section 5.03(b) of the City Charter, the additional
1% Resort Tax shall be used solely for the purpose of securing payment of the MBCC
Project and debt service related thereto.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA as follows:
SECTION 1. That Article IV of Chapter 102 of the Miami Beach City Code is hereby
amended as set forth below.
CHAPTER 102
TAXATION
Article IV. Resort Tax.
* * *
Division IV. Tax.
Section 102-307. Imposition of tax; rate.
(a) There is hereby levied and there shall be paid a tax of three four percent on
the rent of every occupancy of a room or rooms in any hotel, motel, roominghouse, or
apartment house in the city, and two percent upon the total sales price of all items of
food, beverages, alcoholic beverages or wine sold at retail of any restaurant.
(b) Such tax shall constitute a debt owed by the occupant or guest to the city,
extinguished only by payment to the operator or to the city. The occupant or guest shall
pay the tax to the operator of the hotel, motel, roominghouse, apartment house or
restaurant at the time the rent or sales price is paid. If the rent is paid in installments, a
proportionate share of the tax shall be paid with each installment. The unpaid tax shall be
due upon the occupant's ceasing to occupy space in the hotel, motel, roominghouse or
apartment house.
2
(c) The tax due on a transaction calling for the payment of rent or sales price
of from:
Cents
$0.50 to $0.99 4-2
1.00 to 1.49 2 4
1.50 to 1.99 3 6
2.00 to 2.49 48
2.50 to 2.99 5 10
or on rents or sales in amounts of more than $3.00, two four percent shall be charged
upon each dollar of price or rent, plus the above bracket charges upon any fractional part
of a dollar in excess of even dollars.
SECTION 2. SEVERABILITY.
If any section, sentence, clause, or word of this section is for any reason
declared to be unenforceable or unconstitutional by a court of competent jurisdiction, the
remaining portions shall not be affected.
SECTION 3. REPEALER.
Any ordinance, or part thereof, and/or any resolution, or part thereof, which is in
conflict with this Ordinance, is hereby repealed to the extent of such conflict.
SECTION 4. CODIFICATION.
It is the intention of the Mayor and City Commission of the City of Miami Beach,
and it is hereby ordained that the provisions of this ordinance shall become and be made
part of the Code of the City of Miami Beach, Florida, as amended. The sections of this
ordinance may be renumbered or re-lettered to accomplish such intention, and the word
"ordinance" may be changed to "section" or other appropriate word.
SECTION 5. EFFECTIVE DATE.
This Ordinance shall take effect the 7 da y of bWb/ , 2015.�� '
3
PASSED and ADOPTED this a Si day of 0 , • b-ei , 2015.
ATTEST: /'
i
-■ 'i rry Philip L-�vine .�r ayor
fpriA01-,,,, :iff_J/ L.JJ
afael E. Grana d•, City Clerk :
NOV 4 2015
Underline denotes additions
Strike through denotes deletions
(Sponsored by Commissioner Michael Grieco)
.• MI_� ... � r
If*
•�NCORP ORA = : APPROVED AS TO
T��. FORM&LANGUAGE
.... •. <r h FOR/ �:' I EXECUTION
Attorney,ft., _,_ ,,- (2,,Es.....1 .7.
City ' Q Date
1
4
Bank of America EXHIBIT A
Merrill Lynch
TABLE OF CONTENTS
CITY OF MIAMI BEACH,FLORIDA
Resort Tax Revenue Bonds,Series 2015
Preliminary Numbers
Report Page
Sources and Uses of Funds 1
Bond Summary Statistics 2
Bond Pricing 3
Bond Debt Service 4
Debt Service Reserve Fund 5
Annual Debt Service Coverage 6
Form 8038 Statistics 7
Disclaimer 8
Oct 13,2015 4:28 pm Prepared by Bank of America Merrill Lynch
Bank ofAmerica 'I EXHIBIT A
Merrill Lynch
SOURCES AND USES OF FUNDS
CITY OF MIAMI BEACH,FLORIDA
Resort Tax Revenue Bonds,Series 2015
Preliminary Numbers
Dated Date 12/17/2015
Delivery Date 12/17/2015
Sources:
Bond Proceeds:
Par Amount 207,570,000.00
Premium 23,962,700.95
231,532,700.95
Uses:
Project Fund Deposits:
Project Fund 216,632,193.00
Other Fund Deposits:
Debt Service Reserve Fund 13,665,500.00
Delivery Date Expenses:
Cost of Issuance 350,000.00
Underwriter's Discount 881,528.32
1,231,528.32
Other Uses of Funds:
Additional Proceeds 3,479.63
231,532,700.95
Notes:
Structured based on a fixed project amount of$216,632,193,assumes no earnings.
Cash funded DSRF,assumes no earnings.
Assumes ratings of A/A.
Oct 13,2015 4:28 pm Prepared by Bank of America Merrill Lynch Page 1
BankofAmerica 4°7 EXHIBIT A
Merrill Lynch .
•
BOND SUMMARY STATISTICS
•
CITY OF MIAMI BEACH,FLORIDA
Resort Tax Revenue Bonds,Series 2015
Preliminary Numbers
Dated Date • 12/17/2015
Delivery Date 12/17/2015
First Coupon 06/01/2016
Last Maturity 12/01/2045
Arbitrage Yield 3.517921%
True Interest Cost(TIC) 4.111332% •
Net Interest Cost(NIC) 4.418910%
•
All-In TIC 4.123763%
Average Coupon 4.998037%
Average Life(years) • 19.201
Duration of Issue(years) 12.472
•
Par Amount 207,570,000.00
Bond Proceeds - 231,532,700.95
Total Interest 199,197,263.33
Net Interest 176,116,090.70
Total Debt Service 406,767,263.33
Maximum Annual Debt Service _ 13,665,500.00
• Average Annual Debt Service 13,579,025.85 •
Underwriter's Fees(per$1000)
Average Takedown -
Other Fee 4.246897
Total Underwriter's Discount 4.246897 ,•
Bid Price • 111.119705
•
•
Par Average Average PV of 1 bp •
Bond Component Value Price Coupon Life change
Bond Component 102,065,000.00 114.344 4.994% 12.321 81,648.90 •
Term Bond 2040 46,350,000.00 109.174 5.000% 23.053 39,861.00 • -
Term Bond 2045 59,155,000.00 108.571 5.000% 28.053 50,281.75
207,570,000.00 19.201 171,791.65
All-In Arbitrage
TIC TIC Yield
Par Value 207,570,000.00 207,570,000.00 207,570,000.00
+Accrued Interest - - -
+Premium(Discount) 23,962,700.95 23,962,700.95 23,962,700.95
-Underwriter's Discount -881,528.32 -881,528.32
-Cost of Issuance Expense -350,000.00
-Other Amounts
Target Value 230,651,172.63 230,301,172.63 231,532,700.95
•
Target Date 12/17/2015 12/17/2015 12/17/2015
Yield 4.111332% 4.123763% 3.517921%
•
•
•
•
Notes:
Structured based on a fixed project amount of$216,632,193,assumes no earnings. _ '
Cash funded DSRF,assumes no earnings.
Assumes ratings of A/A. •
Oct 13,2015 4:28 pm Prepared by Bank of America Merrill Lynch Page 2
Bank ofAmerica i�I EXHIBIT A
Merrill Lynch
BOND PRICING
CITY OF MIAMI BEACH,FLORIDA
Resort Tax Revenue Bonds,Series 2015
Preliminary Numbers
Maturity Yield to Call Call Premium
Bond Component Date Amount Rate Yield Price Maturity Date Price (-Discount)
Bond Component:
12/01/2016 665,000 3.000% 0.430% 102.447 - - - 16,272.55
12/01/2017 3,350,000 4.000% 0.800% 106.196 - - - 207,566.00
12/01/2018 3,485,000 5.000% 1.070% 111.403 - - - 397,394.55
12/01/2019 3,660,000 5.000% 1.340% 114.053 - - - 514,339.80
12/01/2020 3,845,000 5.000% 1.630% 115.980 - - - 614,431.00
12/01/2021 4,035,000 5.000% 1.860% 117.623 - - - 711,088.05
12/01/2022 4,235,000 5.000% 2.110% 118.604 - - - 787,879.40
12/01/2023 4,450,000 5.000% 2.360% 119.045 - - - 847,502.50
12/01/2024 4,670,000 5.000% 2.540% 119.592 - - - 914,946.40
12/01/2025 4,905,000 5.000% 2.700% 119.959 - - - 978,988.95
12/01/2026 5,150,000 5.000% 2.870% 118.330 C 3.022% 12/01/2025 100.000 943,995.00
12/01/2027 5,405,000 5.000% 3.030% 116.820 C 3.287% 12/01/2025 100.000 909,121.00
12/01/2028 5,675,000 5.000% 3.180% 115.425 C 3.508% 12/01/2025 100.000 875,368.75
12/01/2029 5,960,000 5.000% 3.320% 114.141 C 3.694% 12/01/2025 100.000 842,803.60
12/01/2030 6,260,000 5.000% 3.410% 113.325 C 3.822% 12/01/2025 100.000 834,145.00
12/01/2031 6,570,000 5.000% 3.480% 112.695 C 3.922% 12/01/2025 100.000 834,061.50
12/01/2032 6,900,000 5.000% 3.540% 112.158 C 4.005% 12/01/2025 100.000 838,902.00
12/01/2033 7,245,000 5.000% 3.590% 111.713 C 4.074% 12/01/2025 100.000 848,606.85
12/01/2034 7,610,000 5.000% 3.640% 111.270 C 4.136% 12/01/2025 100.000 857,647.00
12/01/2035 7,990,000 5.000% 3.690% 110.830 C 4.193% 12/01/2025 100.000 865,317.00
102,065,000 14,640,376.90
Term Bond 2040:
12/01/2036 8,390,000 5.000% 3.880% 109.174 C 4.391% 12/01/2025 100.000 769,698.60
12/01/2037 8,805,000 5.000% 3.880% 109.174 C 4.391% 12/01/2025 100.000 807,770.70
12/01/2038 9,250,000 5.000% 3.880% 109.174 C 4.391% 12/01/2025 100.000 848,595.00
12/01/2039 9,710,000 5.000% 3.880% 109.174 C 4.391% 12/01/2025 100.000 890,795.40
12/01/2040 10,195,000 5.000% 3.880% 109.174 C 4.391% 12/01/2025 100.000 935,289.30
46,350,000 4,252,149.00
Term Bond 2045:
12/01/2041 10,705,000 5.000% 3.950% 108.571 C 4.477% 12/01/2025 100.000 917,525.55
12/01/2042 11,240,000 5.000% 3.950% 108.571 C 4.477% 12/01/2025 100.000 963,380.40
12/01/2043 11,805,000 5.000% 3.950% 108.571 C 4.477% 12/01/2025 100.000 1,011,806.55 •
12/01/2044 12,395,000 5.000% 3.950% 108.571 C 4.477% 12/01/2025 100.000 1,062,375.45
12/01/2045 13,010,000 5.000% 3.950% 108.571 C 4.477% 12/01/2025 100.000 1,115,087.10
59,155,000 5,070,175.05
207,570,000 23,962,700.95
Dated Date 12/17/2015
Delivery Date 12/17/2015
First Coupon 06/01/2016
Par Amount 207,570,000.00
Premium 23,962,700.95
Production 231,532,700.95 111.544395%
Underwriter's Discount -881,528.32 -0.424690%
Purchase Price 230,651,172.63 111.119705%
Accrued Interest -
Net Proceeds 230,651,172.63
•
Notes:
Structured based on a fixed project amount of$216,632,193,assumes no earnings.
Cash funded DSRF,assumes no earnings.
Assumes ratings of A/A.
Oct 13,2015 4:28 pm Prepared by Bank of America Merrill Lynch Page 3
III
Bank ofAmerica EXHIBITA
Merrill Lynch
BOND DEBT SERVICE
CITY OF MIAMI BEACH,FLORIDA
Resort Tax Revenue Bonds,Series 2015
Preliminary Numbers
Dated Date 12/17/2015
Delivery Date 12/17/2015
Period
Ending Principal Coupon Interest Debt Service
12/01/2016 665,000 3.000% 9,872,513.33 10,537,513.33
12/01/2017 3,350,000 4.000% 10,311,750.00 13,661,750.00
12/01/2018 3,485,000 5.000% 10,177,750.00 13,662,750.00
12/01/2019 3,660,000 5.000% 10,003,500.00 13,663,500.00
12/01/2020 3,845,000 5.000% 9,820,500.00 13,665,500.00
12/01/2021 4,035,000 5.000% 9,628,250.00 13,663,250.00
12/01/2022 4,235,000 5.000% 9,426,500.00 13,661,500.00
12/01/2023 4,450,000 5.000% 9,214,750.00 13,664,750.00
12/01/2024 4,670,000 5.000% 8,992,250.00 13,662,250.00
12/01/2025 4,905,000 5.000% 8,758,750.00 13,663,750.00
12/01/2026 5,150,000 5.000% 8,513,500.00 13,663,500.00
12/01/2027 5,405,000 5.000% 8,256,000.00 13,661,000.00
12/01/2028 5,675,000 5.000% 7,985,750.00 13,660,750.00
12/01/2029 5,960,000 5.000% 7,702,000.00 13,662,000.00
12/01/2030 6,260,000 5.000% 7,404,000.00 13,664,000.00
12/01/2031 6,570,000 5.000% 7,091,000.00 13,661,000.00
12/01/2032 6,900,000 5.000% 6,762,500.00 13,662,500.00
12/01/2033 7,245,000 5.000% 6,417,500.00 13,662,500.00
12/01/2034 7,610,000 5.000% 6,055,250.00 13,665,250.00
. 12/01/2035 7,990,000 5.000% 5,674,750.00 13,664,750.00
12/01/2036 8,390,000 5.000% 5,275,250.00 13,665,250.00
12/01/2037 8,805,000 5.000% 4,855,750.00 13,660,750.00
12/01/2038 9,250,000 5.000% 4,415,500.00 13,665,500.00
12/01/2039 9,710,000 5.000% 3,953,000.00 13,663,000.00
12/01/2040 10,195,000 5.000% 3,467,500.00 13,662,500.00
12/01/2041 10,705,000 5.000% 2,957,750.00 13,662,750.00
12/01/2042 11,240,000 5.000% 2,422,500.00 13,662,500.00
12/01/2043 11,805,000 5.000% 1,860,500.00 13,665,500.00
12/01/2044 12,395,000 5.000% 1,270,250.00 13,665,250.00
12/01/2045 13,010,000 5.000% 650,500.00 13,660,500.00
207,570,000 199,197,263.33 406,767,263.33
Notes:
Structured based on a fixed project amount of$216,632,193,assumes no earnings.
Cash funded DSRF,assumes no earnings.
Assumes ratings of A/A.
Oct 13,2015 4:28 pm Prepared by Bank of America Merrill Lynch Page 4
Bank of America''"I EXHIBIT A
Merrill Lynch
DEBT SERVICE RESERVE FUND
CITY OF MIAMI BEACH,FLORIDA '
Resort Tax Revenue Bonds,Series 2015
Preliminary Numbers
Date Deposit Interest Principal Debt Service Balance
12/17/2015 13,665,500 - - - 13,665,500
12/01/2045 - - 13,665,500 -13,665,500 -
13,665,500 0 13,665,500 -13,665,500
Arbitrage Yield: 3.5179206%
Value of Negative Arbitrage: 8,857,781.95
•
Notes:
Structured based on a fixed project amount of$216,632,193,assumes no earnings.
Cash funded DSRF,assumes no earnings.
Assumes ratings of A/A.
Oct 13,2015 4:28 m Prepared by Bank of America Merrill Lynch Page 5
P p Y
Bank ofAmerica�� EXHIBIT A
Merrill Lynch
ANNUAL DEBT SERVICE COVERAGE
CITY OF MIAMI BEACH,FLORIDA
Resort Tax Revenue Bonds,Series 2015
Preliminary Numbers
Date Debt Service Revenues Coverage
12/01/2016 10,537,513.33 11,066,590.00 105.021%
12/01/2017 13,661,750.00 83,308,716.00 609.795%
12/01/2018 13,662,750.00 83,308,716.00 609.751%
12/01/2019 13,663,500.00 83,308,716.00 609.717%
12/01/2020 13,665,500.00 83,308,716.00 609.628%
12/01/2021 13,663,250.00 83,308,716.00 609.728%
12/01/2022 13,661,500.00 83,308,716.00 609.807%
12/01/2023 13,664,750.00 83,308,716.00 609.661%
12/01/2024 13,662,250.00 83,308,716.00 609.773%
12/01/2025 13,663,750.00 83,308,716.00 609.706%
12/01/2026 13,663,500.00 83,308,716.00 609.717%
12/01/2027 13,661,000.00 83,308,716.00 609.829%
12/01/2028 13,660,750.00 83,308,716.00 609.840%
12/01/2029 13,662,000.00 83,308,716.00 609.784%
12/01/2030 13,664,000.00 83,308,716.00 609.695%
12/01/2031 13,661,000.00 83,308,716.00 609.829%
12/01/2032 13,662,500.00 83,308,716.00 609.762%
12/01/2033 13,662,500.00 83,308,716.00 609.762%
12/01/2034 13,665,250.00 83,308,716.00 609.639%
12/01/2035 13,664,750.00 83,308,716.00 609.661%
12/01/2036 13,665,250.00 83,308,716.00 609.639%
12/01/2037 13,660,750.00 83,308,716.00 609.840%
12/01/2038 13,665,500.00 83,308,716.00 609.628%
12/01/2039 13,663,000.00 83,308,716.00 609.740%
12/01/2040 13,662,500.00 83,308,716.00 609.762%
12/01/2041 13,662,750.00 83,308,716.00 609.751%
12/01/2042 13,662,500.00 83,308,716.00 609.762%
12/01/2043 13,665,500.00 83,308,716.00 609.628%
12/01/2044 13,665,250.00 83,308,716.00 609.639%
12/01/2045 13,660,500.00 83,308,716.00 609.851%
406,767,263.33 2,427,019,354.00
Notes:
amount of 216 632 193 assumes no earnings.
Structured based on a fixed project $ g
Cash funded DSRF,assumes no earnings.
Assumes ratings of A/A. 1
Oct 13,2015 4:28 pm Prepared by Bank of America Merrill Lynch Page 6
Bank ofAmerica��I EXHIBIT A
Merrill Lynch
FORM 8038 STATISTICS
CITY OF MIAMI BEACH,FLORIDA .
Resort Tax Revenue Bonds,Series 2015
Preliminary Numbers
Dated Date 12/17/2015
Delivery Date 12/17/2015
Redemption
Bond Component Date Principal Coupon Price Issue Price at Maturity
•
'
Bond Component:
12/01/2016 665,000.00 3.000% 102.447 681,272.55 665,000.00
12/01/2017 3,350,000.00 4.000% 106.196 3,557,566.00 3,350,000.00
12/01/2018 3,485,000.00 5.000% 111.403 3,882,394.55 3,485,000.00
12/01/2019 3,660,000.00 5.000% 114.053 4,174,339.80 3,660,000.00
12/01/2020 3,845,000.00 5.000% 115.980 4,459,431.00 3,845,000.00
12/01/2021 4,035,000.00 5.000% 117.623 4,746,088.05 4,035,000.00
12/01/2022 4,235,000.00 5.000% 118.604 5,022,879.40 4,235,000.00
12/01/2023 4,450,000.00 5.000% 119.045 5,297,502.50 4,450,000.00
12/01/2024 4,670,000.00 5.000% 119.592 5,584,946.40 4,670,000.00
12/01/2025 4,905,000.00 5.000% 119.959 5,883,988.95 4,905,000.00
12/01/2026 5,150,000.00 5.000% 118.330 6,093,995.00 5,150,000.00
12/01/2027 5,405,000.00 5.000% 116.820 6,314,121.00 5,405,000.00
12/01/2028 5,675,000.00 5.000% 115.425 6,550,368.75 5,675,000.00
12/01/2029 5,960,000.00 5.000% 114.141 6,802,803.60 5,960,000.00
12/01/2030 6,260,000.00 5.000% 113.325 7,094,145.00 6,260,000.00
12/01/2031 6,570,000.00 5.000% 112.695 7,404,061.50 6,570,000.00
12/01/2032 6,900,000.00 5.000% 112.158 7,738,902.00 6,900,000.00
12/01/2033 7,245,000.00 5.000% 111.713 8,093,606.85 7,245,000.00
12/01/2034 7,610,000.00 5.000% 111.270 8,467,647.00 7,610,000.00
12/01/2035 7,990,000.00 5.000% 110.830 8,855,317.00 7,990,000.00
Term Bond 2040:
12/01/2036 8,390,000.00 5.000% 109.174 9,159,698.60 8,390,000.00
12/01/2037 8,805,000.00 5.000% 109.174 9,612,770.70 8,805,000.00
12/01/2038 9,250,000.00 5.000% 109.174 10,098,595.00 9,250,000.00
12/01/2039 9,710,000.00 5.000% 109.174 10,600,795.40 9,710,000.00
12/01/2040 10,195,000.00 5.000% 109.174 11,130,289.30 10,195,000.00
Term Bond 2045:
12/01/2041 10,705,000.00 5.000% 108.571 11,622,525.55 10,705,000.00
12/01/2042 11,240,000.00 5.000% 108.571 12,203,380.40 11,240,000.00
12/01/2043 11,805,000.00 5.000% 108.571 12,816,806.55 11,805,000.00
12/01/2044 12,395,000.00 5.000% 108.571 13,457,375.45 12,395,000.00
12/01/2045 13,010,000.00 5.000% 108.571 14,125,087.10 13,010,000.00
207,570,000.00 231,532,700.95 207,570,000.00
Stated Weighted
Maturity Interest Issue Redemption Average
Date Rate Price at Maturity Maturity Yield
Final Maturity 12/01/2045 5.000% 14,125,087.10 13,010,000.00 - -
Entire Issue - - 231,532,700.95 207,570,000.00 19.0035 3.5179%
Proceeds used for accrued interest 0.00
Proceeds used for bond issuance costs(including underwriters'discount) 1,231,528.32
Proceeds used for credit enhancement 0.00
Proceeds allocated to reasonably required reserve or replacement fund 13,665,500.00
Notes:
Structured based on a fixed project amount of$216,632,193,assumes no earnings.
Cash funded DSRF,assumes no earnings.
Assumes ratings of A/A.
Oct 13,2015 4:28 pm Prepared by Bank of America Merrill Lynch Page 7
Bank ofAmerica �� EXHIBIT A
Merrill Lynch
DISCLAIMER
CITY OF MIAMI BEACH,FLORIDA
Resort Tax Revenue Bonds,Series 2015
Preliminary Numbers
BofAML IS NOT YOUR MUNICIPAL ADVISOR OR FIDUCIARY.Bank of America Merrill Lynch('BofAML')is providing the information contained herein for
discussion purposes only either as an underwriter or in anticipation of being engaged to serve as an underwriter.By providing the information
contained herein pursuant to the underwriter exclusion provided under SEC Rule 15Bal-1(d)(2)(i),BofAML is not acting as your'municipal advisor'
within the meaning of Section 15B of the Securities Exchange Act of 1934,as amended(the'Act'),and does not owe a fiduciary duty to you pursuant to
the Act with respect to the information and material contained in this communication.BofAML is either serving as an underwriter or is seeking to serve
as an underwriter on a future transaction and not as a financial advisor or municipal advisor.The primary role of BofAML,as an underwriter,is to
purchase securities with a view to distribution in an arm's-length commercial transaction between you and BofAML and BofAML has financial and other
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applicable,to the extent you deem appropriate before acting on this information or material.
This material has been prepared by the Public Finance Group and is not a research report and is not a product of the fixed income research department
of BofAML.This material is for information purposes only,is intended solely for your use,and may not be reproduced,disseminated,quoted or
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other purpose.
Notes:
Structured based on a fixed project amount of$216,632,193,assumes no earnings.
Cash funded DSRF,assumes no earnings.
Assumes ratings of A/A.
Oct 13,2015 4:28 pm Prepared by Bank of America Merrill Lynch Page 8
COMMISSION ITEM SUMMARY
Condensed Title:
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING THE
CODE OF THE CITY OF MIAMI BEACH BY AMENDING CHAPTER 102,ENTITLED"TAXATION,"BY AMENDING ARTICLE IV,
ENTITLED "RESORT TAX," BY AMENDING SECTION 102-307, ENTITLED "IMPOSITION OF TAX; RATE," BY AMENDING
SUBSECTION A THEREOF REGARDING THE RATE OF THE TAX TO BE PAID ON THE RENT OF EVERY OCCUPANCY OF A
ROOM OR ROOMS IN ANY HOTEL, MOTEL, ROOMINGHOUSE, OR APARTMENT HOUSE IN THE CITY, PURSUANT TO
SECTION 5.03(B) OF THE CITY CHARTER; PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION, AND AN
EFFECTIVE DATE.
Key Intended Outcome Supported:
• Improve alliance with key business sectors, namely hospitality, arts, and international business with a
focus on enhanced culture,entertainment,and tourism
• Maximize the Miami Beach brand as a world-class destination
Supporting Data(Surveys, Environmental Scan, etc.):
• Environmental Scan—Convention Center Attendance:54%increase since 2004
• Community Survey—Average resident attends events at the Convention Center twice per year
Item Summary/Recommendation: SECOND READING PUBLIC HEARING
The City is entitled to impose and collect a tax on the rent of every occupancy of a room or rooms in any hotel,
motel, or apartment house, when the renting is for the period of occupancy for imposition of a transient rental tax
pursuant to Florida Statute 212.03, as amended, and Section 5.03 of the City Charter (the "Resort Tax"). The
current Resort Tax collected on transient rentals is three percent(3%).
On August 12, 2012,the electorate of the City of Miami Beach voted—by over 67%of the voters voting--in favor of
increasing the Resort Tax on room rentals by an additional one percent(1%), with such additional 1% Resort Tax to
be"used solely for the purposes of expanding, enlarging, renovating, and/or improving the Miami Beach Convention
Center, including payment of debt service related thereto." The election results were certified by Resolution No.
2012-28004, and subsequently codified in Section 5.03(b)of the City Charter.
The purpose of this Ordinance is to impose the additional 1%tax approved by the voters on August 12, 2012 and to
therefore set the new Resort Tax rate at four percent(4%). In accordance with Section 5.03(b)of the City Charter,
the additional 1% Resort Tax shall be used solely for the purpose of securing payment of the expansion,
enlargement, renovation and improvement of the Miami Beach Convention Center(the "MBCC Project") and debt
service related thereto.
Following public hearings held on September 30, 2015 and October 14, 2015, the Mayor and City Commission
adopted a Resolution, authorizing, subject to the passage of this ordinance, the issuance of Resort Tax Revenue
Bonds, Series 2015, in the not-to-exceed amount of$240 million,for the purpose of financing a portion of the MBCC
Project. In addition, the City Commission, at their October 21, 2015 meeting, approved the proposed Ordinance
upon first reading.
The Resort Tax Bonds will be issued in a par amount of approximately$207.6 million.The additional 1% Resort Tax
is anticipated to generate in excess of$12,000,000 on annual basis. Please see Exhibit A for the Resort Tax Bond
Analysis.
The additional 1% Resort Tax must be implemented before the Series 2015 Resort Tax bonds can be issued.
Although the Administration anticipates that the additional 1% Resort Tax will be sufficient to pay for all debt service
related to the Series 2015 bonds, all Resort Taxes will be pledged in an effort to strengthen the credit and resulting
market reception to these bonds.
Advisory Board Recommendation:
The Finance and Citywide Projects Committee, on August 28, 2015, recommended the issuance of the Resort Tax
Bonds for the renovation and/or improvement of the Convention Center.
Financial Information:
Amount Account Approved
urce of Funds:
S
6 OBPI
Total
City Clerk's Office Legislative Tracking:
John Woodruff, Interim Chief Financial Officer
Sign-Offs:
Interim Assistant Interim Chief Financial Officer i,ity Manager
Finance Ir ctor
AW J JLM _ft.I∎
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MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Philip Levine and Members ,,f the City ommission
FROM: Jimmy L. Morales, City Manager I •
I
SECOND READING
DATE: October 28, 2015 PUBLIC HEARING
SUBJECT: AN ORDINANCE OF THE MA OR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, AMENDING THE
CODE OF THE CITY OF MIAMI BEACH BY AMENDING
CHAPTER 102, ENTITLED "TAXATION," BY AMENDING
ARTICLE IV, ENTITLED "RESORT TAX," BY AMENDING
SECTION 102-307, ENTITLED "IMPOSITION OF TAX; RATE,"
BY AMENDING SUBSECTION A THEREOF REGARDING THE
RATE OF THE TAX TO BE PAID ON THE RENT OF EVERY
OCCUPANCY OF A ROOM OR ROOMS IN ANY HOTEL,
MOTEL, ROOMINGHOUSE, OR APARTMENT HOUSE IN THE
CITY, PURSUANT TO SECTION 5.03(B) OF THE CITY
CHARTER; PROVIDING FOR REPEALER, SEVERABILITY,
CODIFICATION, AND AN EFFECTIVE DATE.
ADMINISTRATION RECOMMENDATION
Approve the ordinance.
BACKGROUND
The City is entitled to impose and collect a tax on the rent of every occupancy of a room
or rooms in any hotel, motel, or apartment house, when the renting is for the period of
occupancy for imposition of a transient rental tax pursuant to Florida Statute 212.03, as
amended, and Section 5.03 of the City Charter (the "Resort Tax"). The current Resort
Tax collected on transient rentals is three percent (3%).
On August 14, 2012, the electorate of the City of Miami Beach voted — by over 67% of
the voters voting -- to increase the Resort Tax on room rentals by an additional one
percent (1%), with such additional 1% Resort Tax to be "used solely for the purposes of
expanding, enlarging, renovating, and/or improving the Miami Beach Convention Center,
including payment of debt service related thereto." In Resolution No. 2012-28004, the
City Commission adopted the certification of the official results of the August 14, 2012
special election, and subsequently codified the foregoing in Section 5.03(b) of the City
Charter.
The purpose of this Ordinance is to impose the additional 1% tax approved by the voters
on August 14, 2012 and to therefore set the new Resort Tax rate at four percent (4%).
In accordance with Section 5.03(b) of the City Charter, the additional 1% Resort Tax
Commission Memorandum — October 28, 2015
Resort Tax 1% Increase
Page 2 of 3
shall be used solely for the purpose of securing payment of the expansion, enlargement,
renovation and improvement of the Miami Beach Convention Center (the "MBCC
Project") and debt service related thereto.
ANALYSIS
Following public hearings held on September 30, 2015 and October 14, 2015, the Mayor
and City Commission adopted a Resolution, authorizing, subject to the passage of this
ordinance, the issuance of Resort Tax Revenue Bonds, Series 2015, in the not-to-
exceed amount of $240 million, for the purpose of financing a portion of the MBCC
Project. In addition, the City Commission, at their October 21, 2015 meeting, approved
the proposed Ordinance upon first reading.
The Resort Tax Bonds will be issued in a par amount of approximately $207.6 million.
The additional 1% Resort Tax is anticipated to generate in excess of $12,000,000 on
annual basis. Please see Exhibit A for the Resort Tax Bond Analysis.
The additional 1% Resort Tax must be implemented before the Series 2015 Resort Tax
bonds can be issued. Although the Administration anticipates that the additional 1%
Resort Tax will be sufficient to pay for all debt service related to the Series 2015 bonds,
all Resort Taxes will be pledged in an effort to strengthen the credit and resulting market
reception to these bonds.
On May 21, 2015, the Mayor and City Commission adopted Resolution No. 2015-29028,
approving the CM-at-Risk Agreement between the City and Clark Construction Group,
LLC (the "Agreement"), authorizing pre-construction services for the MBCC Project and
specifying the terms and conditions for the development and negotiation of a
Guaranteed Maximum Price ("GMP") Amendment to secure the delivery of the
construction phase of the MBCC Project.
On October 21, 2015, the Mayor and City Commission approved the adoption of a
Resolution approving the GMP Amendment in the amount of $515,458,058.00 for the
MBCC Project, and which GMP Amendment, along with the Agreement, provides the
definitive terms and conditions of the City's agreement for the development and
expansion, enlargement, renovation and/or improvement of the MBCC Project. Once
the above-referenced agreement is approved, the requirement of Section 5.03(b) of the
City Charter that the additional 1% Resort Tax not be imposed until such time as the City
has entered into an agreement for the MBCC Project will thereby be satisfied.
City of Miami Beach businesses, engaged in transient rentals, will begin remitting the
additional 1% tax on January 20, 2016 for the collection period commencing on
December 1, 2015. These businesses will be sent notifications of the imposition of the
additional 1% Resort Tax via mail and email. The City will also publish an
announcement on our taxpayer's Resort Tax web filing and payment portal, as well as,
the City's website.
Conclusion
The Administration recommends that the Mayor and City Commission of the City of
Miami Beach, Florida, approve the ordinance upon second reading.
•
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• - Commission'Memorandum — October 28,-2015
•-- Resort Tax'1% increase
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• Attachrrment,(presented:in draft form): • : ,
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NEIGHBORS I MIAMUIBtALQCOM
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=IN 1011111■1/1■11
1915•2015
MIAMIBEACH
CITY OF MIAMI BEACH
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY given that a public hearing will be held by the Mayor and
City Commissioners of the City of Miami Beach, Florida, in the Commission
Chambers, 3rd Floor, City Hall, 1700 Convention Center Drive, Miami Beach,
Florida,on Wednesday,October 28,2014 at 5:01 p.m.,or as soon thereafter as
the matter can be heard,to consider:
An Ordinance Amending The Code Of The City Of Miami Beach By Amending
Chapter 102,Entitled"Taxation,"By Amending Article IV,Entitled"Resort Tax,"
By Amending Section 102-307,Entitled"Imposition Of Tax;Rate,"By Amending
Subsection A Thereof Regarding The Rate Of The Tax To Be Paid On The Rent Of
Every Occupancy Of A Room Or Rooms In Any Hotel,Motel,Roominghouse,Or
Apartment House In The City, Pursuant To Section 5.03(B)Of The City Charter;
Providing For Repealer, Severability, Codification, And An Effective Date.
Inquiries may be directed to the Office of Budget&Performance Improvement
at 305.673.7510 or the Office of the City Attorney at 305.673.7470.
INTERESTED PARTIES are invited to appear at this meeting, or be
represented by an agent,or to express their views in writing addressed to the
City Commission, c/o the City Clerk, 1700 Convention Center Drive, 1" Floor,
City Hall,Miami Beach,Florida 33139.This item is available for public inspection
during normal business hours in the City Clerk's Office,1700 Convention Center
Drive, 1' Floor, City Hall, Miami Beach, Florida 33139. This meeting, or any
item therein,may be continued,and under such circumstances,additional legal
notice need not be provided.
Pursuant to Section 286.0105,Fla.Stat.,the City hereby advises the public that
if a person decides to appeal any decision made by the City Commission with
respect to any matter considered at its meeting or its hearing,such person must
ensure that a verbatim record of the proceedings is made,which record includes
the testimony and evidence upon which the appeal Is to be based.This notice
does not constitute consent by the City for the introduction or admission of
otherwise inadmissible or irrelevant evidence,nor does it authorize challenges
or appeals not otherwise allowed by law.
To request this material in alternate format, sign language interpreter
(five-day notice required), information on access for persons with disabilities,
and/or any accommodation to review any document or participate in any
City-sponsored proceedings, call 305.604.2489 and select 1 for English or
2 for Spanish,then option 6;TTY users may call via 711 (Florida Relay Service).
Rafael E.Granado,City Clerk
City of Miami Beach
Ad 1087