98-22859 RESO
RESOLUTION NO. 98-22859
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA (THE "CITY") AUTHORIZING THE
CITY TO BORROW AN AMOUNT NOT TO EXCEED $1,400,000 FROM
COLONIAL BANK, FOR A PERIOD OF FIVE (5) YEARS AT AN
INTEREST RATE NOT TO EXCEED FOUR AND SIX-TENTHS PERCENT
(4.6%) PER ANNUM, FOR THE PURPOSE OF FINANCING THE 41ST
STREET PUBLIC AREA BEAUTIFICATION PROJECT; PLEDGING A
PORTION OF THE RESORT TAX, ON A SUBORDINATE BASIS, TO THE
PAYMENT OF SUCH LOAN; DELEGATING AUTHORITY TO THE
MANAGER AND THE FINANCE DIRECTOR TO NEGOTIATE THE FINAL
PROVISIONS OF SUCH LOAN; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, 41 st Street is a main gateway to the City and is the primary entrance for tourists
arriving from Miami International Airport; and
WHEREAS, the beautification of 41 st Street will enhance tourism, as well as the quality of
life for residents of the City, by improving the appearance of the main thoroughfare through the
Middle Beach area; and
WHEREAS, in September 1995, a master plan for 41 st Street was completed by the Curtis
and Rogers Design Studio, Inc. and the Savino and Miller Design Studio following an extensive
community planning process; and
WHEREAS, in May 1996, the City Commission appropriated $5 million for the
Beautification of 41st Street (the "Project"); and
WHEREAS, in June 1997, the City Commission approved an agreement with Consul-Tech
Engineering, Inc. for architecture and engineering services; and
WHEREAS, the Finance and Citywide Projects Committee has reviewed the plan and has
recommended that Phase I and Phase II of the Project be implemented and that the appropriation for
such project be reduced to $1,727,250; and
WHEREAS, the Finance and Citywide Projects Committee also directed that a financing
strategy for such project be developed; and
WHEREAS, on June 17, 1998, the Mayor and City Commission adopted Resolution No.
98-22789, authorizing the Administration to pursue a bank loan from Colonial Bank to finance the
cost of Phase I and Phase II of the Project; and
WHEREAS, the Administration has entered into negotiations with Colonial Bank in order
to procure said loan.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, as follows:
Section 1. The matters set out in the foregoing recitals are true and correct, and they are
hereby incorporated as a portion of this Resolution.
Section 2. The City is hereby authorized to borrow an amount not to exceed $1,400,000
from Colonial Bank., for a period of five (5) years, at an interest rate not to exceed four and six-tenths
percent (4.6%) per annum; which amount shall be used solely to pay the costs of implementing
Phase I and Phase II of the Project. The security to be pledged for such loan shall be fifty percent
(50%) of the annual Middle Beach allocation ofthe additional one percent (1 %) Resort Tax levied
and collected pursuant to Ordinance No. 93-2829; provided, however, that such pledge shall be
subordinate to any present or future bonds or other obligations to which the Resort Tax is or may
be pledged. The Manager is hereby authorized and directed to execute a loan agreement with
Colonial Bank on the terms set forth herein and containing such other terms as are customary for
such borrowings by municipalities, after consultation as to such terms with the City Attorney and
the Finance Director.
Section 3. The Mayor, City Clerk, Manager, City Attorney and Finance Director are
hereby authorized and directed to do all things and execute all documents necessary to carry out the
intent of this Resolution, including, without limitation, engaging the City's bond counsel and
financial advisor to assist in the negotiation and execution of the loan.
Section 4.
This Resolution shall take effect immediately upon its adoption.
PASSED and ADOPTED this 15th day of
July
,1998.
MA ypf4
ATTEST:
JwA-tO' fcu~
C Y CLERK
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
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F:'A TTOIlEVL IR ESO&OROICOLON IAl. R ES
July8,l998(7:13pm)
2
CITY OF MIAMI BEACH
::;ITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
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COMMISSION MEMORANDUM NO. .s-I ~ 9 g
TO:
Mayor Neisen O. Kasdin and
Members of the City Co ission
DATE: July 15, 1998
FROM:
Sergio Rodriguez
City Manager
SUBJECT:
A RESOLU ION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA (THE "CITY") AUTHORIZING THE
CITY TO BORROW AN AMOUNT NOT TO EXCEED $1,400,000 FROM
COLONIAL BANK, FOR A PERIOD OF FIVE(5) YEARS AT AN INTEREST
RATE NOT TO EXCEED FOUR AND SIX-TENTHS PERCENT(4.6%) PER
ANNUM, FOR THE PURPOSE OF FINANCING THE 41st STREET PUBLIC
AREA BEAUTIFICATION PROJECT (THE "PROJECT"); PLEDGING A
PORTION OF THE RESORT TAX, ON A SUBORDINATE BASIS, TO THE
PAYMENT OF SUCH LOAN; DELEGATING AUTHORITY TO THE
MANAGER AND THE FINANCE DIRECTOR TO NEGOTIATE THE FINAL
PROVISIONS OF SUCH LOAN; AND PROVIDING AN EFFECTIVE DATE.
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution
FUNDING:
This project will be funded by an appropriation of 50% of the Middle Beach share of the 1 % Resort
Tax (Quality of Life Funds).
BACKGROUND:
On May 1, 1996, the City Commission adopted a resolution appropriating $5 million for the 41 st
Street Beautification Project (the "Project"). The Finance and Citywide Projects Committee
reviewed the plan at their meeting of March 12, 1998 and recommended that Phase I and II of the
Project be implemented and that the appropriation be reduced to $1,727,250.
The cost of the Project is estimated at $1,727,250 which provides $1,527,250 for the construction
of Phase I and n, and $200,000 for architectural and engineering fees. The source of funding for the
project is an appropriation of 50% ofthe Middle Beach share of the 1 % Resort Tax (Quality of Life
Funds). Funds available for the Project total $434,000 which represents an allocation of FY 96-97
collections and an allocation ofFY 97-98 projected collections.
AGENDA ITEM
~IN
1-IS-9~
DATE
On June 17, 1998 the Mayor and Commission adopted Resolution No. 98-22789, authorizing the
Administration to pursue a loan agreement with the Colonial Bank in an amount not to exceed
$1,400,000, for a period of five (5) years at an interest rate not to exceed four and sixth tenths
percent (4.6%) per annum.
ANALYSIS
The documents necessary to implement this strategy are currently being prepared and it is anticipated
that they will be completed during the Commission recess. In an effort to expedite the project so
that a portion of the improvements will be completed prior to the upcoming season, it is necessary
to provide funding for this project on an accelerated basis,
Therefore, authorization is requested to borrow the funds from Colonial Bank in accordance with
the aforementioned terms. These funds shall be used solely to pay the cost of implementing Phase
I and Phase II of the Project. The security to be pledged for such loan shall be fifty percent (50%)
of the annual Middle Beach allocation of the additional one percent (l %) Resort Tax levied and
collected pursuant to Ordinance No. 93-2829, provided that such pledge shall be subordinate to any
present or future bonds or other obligations to which the Resort Tax is or may be pledged.
Further, authorization is requested for the Mayor, City Clerk, Manager, City Attorney and Finance
Director to take all actions and execute all documents necessary to carry out this financing, including
and without limitation engaging the City's bond counsel and financial advisor to assist in the
negotiation and execution of the loan.
CONCLUSION
It is recommended that the Mayor and Commission adopt this resolution and delegate authority to
the Mayor, City Clerk, City Manager, City Attorney and the Finance Director to take all steps
necessary to complete this financing.
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