HomeMy WebLinkAbout2010-105-1287 - Agreement with Loop Capital Market
City of Miami Gardens Agenda Cover Memo Council Meeting Date: May 26, 2010 Item Type: (Enter X in box) Resolution Ordinance Other x Fiscal Impact: (Enter X in box) Yes No Ordinance Reading:
(Enter X in box) 1st Reading 2nd Reading x Public Hearing: (Enter X in box) Yes No Yes No X Funding Source: City Hall Bond Advertising Requirement: (Enter X in box) Yes No X Contract/P.O.
Required: (Enter X in box) Yes No RFP/RFQ/Bid #: x Sponsor Name City Manager and City Attorney Department: City Attorney/City manager Short Title: A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF MIAMI GARDENS, FLORIDA, AUTHORIZING THE CITY MANAGER TO EXECUTE THAT CERTAIN RETAINER AGREEMENT WITH THE UNDERWRITING FIRM OF LOOP CAPITAL TO SERVE AS UNDERWRITER WITH RESPECT
TO THE ISSUANCE OF A $53,000,000 PUBLIC BUILDINGS BOND; PROVIDING FOR INSTRUCTIONS TO THE CITY CLERK; PROVIDING FOR THE ADOPTION OF REPRESENTATIONS; PROVIDING AN EFFECTIVE DATE. Staff
Summary: In order to undertake a major financing like the City Hall financing, it is necessary to go to the national market. This requires the services of a national underwriting firm.
Loop Capital is the largest minority underwriter in the nation, being based in Chicago with offices in New York. The underwriter actual buys the bonds at a discount and then markets
them to potential investors. By doing so, the assume the risk for the period between sale and resale. The discount is approximately 1.1% of the issue amount. If the sale is not made,
there is no compensation for the underwriter. ITEM K-3) RESOLUTION Retainer Agreement w/Loop Capital Market, LLC
1515 NW 167 Street, Building 5 Suite 200 Miami Gardens, Florida 33169 Proposed Action: That City Council approves the resolution authorizing the City Manager to engage the services of
Loop Capital as the City’s underwriter. Attachment: Loop Capital Information