2000-23906 RESO
RESOLUTION NO. 2000-23906
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA DECLARING
THE OFFICIAL INTENT OF THE CITY OF MIAMI BEACH,
FLORIDA TO ISSUE DEBT IN ORDER TO, AMONG OTHER
THINGS, REIMBURSE ITSELF FROM THE PROCEEDS OF
SUCH DEBT FOR FUNDS ADVANCED BY THE CITY FOR
CERTAIN EXPENSES INCURRED WITH RESPECT TO
IMPROVEMENTS TO CERTAIN CITY-OWNED GOLF
COURSES; AND AUTHORIZING CERTAIN INCIDENT AL
ACTIONS.
WHEREAS, United States Treasury Regulations prescribe conditions under which proceeds
of bonds, notes or other obligations used to reimburse advances made for certain expenditures paid
before the issuance of such obligations will be deemed to be expended (or properly allocated to
expenditures) for purposes of Sections 103 and 141-150 of the Internal Revenue Code of 1986, as
amended, and the regulations promulgated thereunder (collectively, the "Code), so that upon such
reimbursement the proceeds so used will not further be subject to requirements or restrictions under
those sections of the Code; and
WHEREAS, certain provisions of those regulations require that there be a declaration of
official intent not later than 60 days following payment of the expenditure expected to be reimbursed
from proceeds of such obligations, and that the reimbursement occur within prescribed time periods
after the expenditure is paid or after the property is placed in service; and
WHEREAS, the City of Miami Beach, Florida (the "City") expects to issue debt (the "Debt")
to renovate the City-owned Normandy Shores golf course and clubhouse, to renovate the City-owned
Bayshore golf course and construct a new clubhouse at such golf course and to make related
improvements at both golf courses (collectively, the "Project"); and
WHEREAS, in connection with the Project, the City has incurred and expects to Incur
expenses for which the City has advanced and will advance internal funds; and
WHEREAS, to the extent permissible under the Code, the City intends to reimburse itself for
such advances from a portion ofthe proceeds ofthe Debt.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA:
Section 1. Definitions. The following definitions apply to the terms used herein:
"Reimbursement" or "reimburse" means the restoration to the City of money temporarily
advanced from its other funds and spent for capital expenditures (and certain other types of
expenditures qualifying under the Reimbursement Regulations, including any issuance costs for
Reimbursement Bonds) before the issuance of the Reimbursement Bonds, evidenced in writing by an
Miami - 4770vl
allocation on the books and records of the City that shows the use of the proceeds of the
Reimbursement Bonds to restore the money advanced for the original expenditure. "Reimbursement"
or "reimburse" generally does not include the refunding or retiring of bonds previously issued and sold
to, or borrowings from, unrelated entities.
"Reimbursement Bonds" means Debt the proceeds of which are to be used for reimbursement
of such capital or other qualifYing expenditures paid before issuance of the Debt.
"Reimbursement Regulations" means Treasury Regulations Section 1.150-2 and any
amendments thereto or superseding regulations, whether in proposed, temporary or final form, as at
the time applicable, prescribing conditions under which the proceeds of Reimbursement Bonds when
allocated or applied to a reimbursement will be treated as expended for all or any purposes of Sections
103 and 141 to 150 of the Code.
Section 2. Declaration of Official Intent. The City hereby declares its official intent to issue
the Debt in an aggregate principal amount of approximately $15,000,000, in one or more series, a
portion of the proceeds of which will, to the extent permissible under the Code, be used to reimburse
the City for funds advanced by it for expenses incurred and to be incurred with respect to the Project.
This Resolution is intended as a declaration of official intent under Treasury Regulation S 1.150-2.
Section 3. Incidental Action. The appropriate officers of the City are hereby authorized to
take such actions as may be necessary to carry out the purpose of this Resolution and the Code.
Section 4. Effective Date. This Resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED this 10th day of
May
,2000.
(Seal)
~11
Mayor
Attest:
?~1tu 6" 1 Clulvu-
City Clerk
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APPROVED AS TO
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Miami - 4770vl
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
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COMMISSION MEMORANDUM NO. ~S4--oa
TO:
Mayor Neisen O. Kasdin and
Members of the City Commission
FROM: Lawrence A. Levy ~
City Manager
DATE: May 10,2000
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, DECLARING THE OFFICIAL
INTENT OF THE CITY OF MIAMI BEACH, FLORIDA TO ISSUE DEBT
IN ORDER TO AMONG OTHER THINGS, REIMBURSE ITSELF FROM
THE PROCEEDS OF SUCH DEBT FOR FUNDS ADVANCED BY THE CITY
FOR CERTAIN EXPENSES INCURRED WITH RESPECT TO
IMPROVEMENTS TO CERTAIN CITY-OWNED GOLF COURSES; AND
AUTHORIZING CERTAIN INCIDENTAL ACTIONS.
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution.
ANAL YSIS:
On February 2, 2000 the Mayor and City Commission approved the financing strategy for the
renovation ofthe Bayshore and Normandy Shores Golf Courses and clubhouses and authorized the
Finance Director to take all necessary actions subject to the final approval of loan documents by the
Mayor and City Commission. The Administration has proposed that the City obtain a loan from the
City of Gulf Breeze, Florida, Local Government Loan Program ("Gulf Breeze 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.
The City has incurred and expects to incur expenses in connection with these projects prior to the
time that the funds will be obtained from the Gulf Breeze Loan Program and prior to the time the
General Obligation Bonds (the "Bonds") will be issued. Further, the City intends to reimburse
itself for such expenses from a portion of the proceeds of the Loan and the Bonds to the extent
permissible.
The United States Treasury Regulations require that there be a declaration of official intent not later
than 60 days following payment ofthe expenditure expected to be reimbursed from proceeds of such
obligations, and that the reimbursement occur within prescribed time periods after the expenditure
Agenda Item C I C.
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Date S-(O-Qu
is paid or after the property is placed in service. On January 14,2000, the Mayor and Commission
declared their official intent to issue the General Obligation Bonds and that a portion of the proceeds
would be used to reimburse the City for funds advanced by it for expenses incurred and to be
incurred with respect to the Projects.
Therefore, it is requested that the Mayor and Commission declare their official intent to issue the
debt in an aggregate principal amount not to exceed $15,000,000, in one or more series, and that a
portion of the proceeds of which will, to the extent permissible, be used to reimburse the City for
funds advanced by it for expenses incurred and to be incurred with respect to the Improvements.
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