Resolution 74-14426 RESOLUTION NO. 74-14426
A RESOLUTION AUTHORIZING TRANSFER OF FUNDS
TEMPORARILY FROM PROJECT FUNDS NOT YET
STARTED TO SATISFY BRITTANY BAY PROPERTY
JUDGMENT OF THE U. S. DISTRICT COURT UNTIL
BONDS THEREFOR ARE SOLD.
WHEREAS , on July 17, 1974 , the City Council of the
City of Miami Beach, Florida, duly considered City Manager 's
Council Memorandum No. 4678, which sets forth a request for the
City Council to authorize a transfer of funds temporarily from
project funds not yet started in order to satisfy the Judgment
of the United States District Court in connection with the City ' s
acquisition of the Brittany Bay Property, until bonds therefor
are sold;
NOW, THEREFORE , BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF MIAMI BEACH, FLORIDA, that a temporary transfer of
funds from the $2 ,457, 000 Waste Disposal Facilities Bond Issue,
of August 1, 1970, be and the same is hereby authorized in order
to satisfy said Judgment in connection with the acquisition of the
Brittany Bay Property by the City of Miami Beach, as set forth in
said Council Memorandum No. 4678 , provided, however, that said
transferred funds are to be returned to said Bond Issue when the
Brittany Bay bonds are sold.
PASSED and ADOPTED this 17th day of:- r, y, 1974 .
s--'7
Vieee -yor
Attest:
1X4,4
City Clerk
OFFICE OF THE CITY ATTORNEY - 1130 WASHINGTON AVENUE MIAMI BEACH, FLORIDA 33139
4 CIL MEMORANDUM NO. 4678: REQUESTING COUNCIL Temporary transfer of funds from
ORIZATION TO TRANSFER FUNDS TEMPORARILY FROM $2,457,000 Waste Disposal FaCtlitits
NDS FOR PROJECTS NOT YET STARTED, TO SATISFY Bond Issue (8/1/70) to satisfy Brittany
'
RiTTANY BAY JUDGMENT UNTIL BONDS ARE SOLD, Bay Judgment, approved; funds to bereturned when Brittany Bay bonds are
sold. Resolution No. 74- 44 6 o ted
authorizing transfer.
JUL 1. 19/4
w
OFFICE OF CITY MANAGER COUNCIL MEMORANDUM NO. 4678 CITY MALL
FRANK R. SPENCE 1130 WASHINGTON AVENUE
CITY w
TELtPHON3:e 073-7010
TO: City Council July 16, 1974
FROM: Frank R. Spence, City Manager
SUBJECT: Request for authorization to transfer funds
temporarily from project funds not yet started
to satisfy Brittany Bay Judgment until bonds
are sold.
On May 17, 1974, the City deposited $2,640, 000 with the U. S.
District Court in partial payment of the Brittany Bay judgment.
This leaves $2,076,600 as the balance remaining on the purchase
price with interest thereon.
Eleven of the larger banking groups in this area were contacted
in an attempt to borrow on a short-term loan, or a bond antici-
pation note, enough money to deposit with the U. S. District
Court the amounts required to satisfy the Brittany Bay judgment.
1 This loan would be repaid from proceeds of the $3. 5 million in
bonds, authorized and validated for the Brittany Bay purchase,
when sold.
The Banks contacted were:
Bank of Miami Beach Florida National Bank
Barnett Bank Jefferson National Bank
Central Bank and Trust Pan American Bank
City National Bank Peoples Bank
First National Bank of Miami Beach Sun Banks
First National Bank of Miami
None of the banks could commit to participate in either a straight
loan or a bond anticipation note. One mentioned a $700,000 limit
on a straight loan, another that a straight loan could fall under
his 10% loan limit, some stated that they were already fully
" loaned out" and could make no further commitments of any kind,
•
others that they were fully invested in tax-exempts and that more
would put them in a very undesirable " negative" income tax position.
The Administration, therefore, recommends this judgment be satis-
fied by another method, a temporary loan of up to $2, 500,000 from
other bond funds of the City. The transferred funds will, of
course, be returned when bonds for Brittany Bay are sold. The
Administration requests authorization to make the necessary
transfers and to proceed with satisfaction of the judgment.
FRS LAW:mb
CITY OF MIAMI bL,U
JUL 17 1974
COUNCIL AGENDA R. ci
MEETING ITEM
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