HomeMy WebLinkAbout2014-011-322 - Amendment to Bond Series 2009B 18605 NW 27 Ave.,
Miami Gardens, FL 33056
City of Miami Gardens
Agenda Cover Memo
Council Meeting Date:
July 23, 2014
Item Type:
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Ordinance Other
X
Fiscal Impact:
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Yes
No Ordinance Reading:
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1st Reading 2nd Reading
x
X
Public Hearing:
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Yes No Yes No
X
Funding Source:
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General Fund
Advertising Requirement:
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Yes No
x
Contract/P.O. Required:
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Yes No RFP/RFQ/Bid #:N/A
X
Strategic Plan Related
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No Strategic Plan Priority Area:
Enhance Organizational
Bus. & Economic Dev
Public Safety
Quality of Education
Qual. of Life & City Image
Communication
Strategic Plan Objective/Strategy:
(list the specific objective/strategy this item will
address)
X
Sponsor Name
Cameron Benson,
City Manager
Department:
City Manager
Short Title:
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MIAMI GARDENS,
FLORIDA, AUTHORIZING THE AMENDMENT OF THE CITY'S TAXABLE LAND
ACQUISITION REVENUE BOND, SERIES 2009B; APPROVING THE
EXECUTION OF A BOND MODIFICATION AGREEMENT;
REPEALING ALL ORDINANCES AND RESOLUTIONS IN CONFLICT; PROVIDING
AN EFFECTIVE DATE
Staff Summary:
In July 2009, under Ordinance Number 2009-19-191 Council approved the borrowing of $8.8 million for
the acquisition of economic development property located on the east side of NW 27 Ave and south of
191 street (Cornerstone property). The bond matured on August 1, 2014 with a balloon payment of
$7,469,841 in principal. The City Manager obtained approval from Council at the June 25, 2014
meeting to negotiate and to enter into a contract for the sale of the Property.
At the first reading, staff was proposing a 6 month extension with a variable rate. The variable rate would
be the 30 day LIBOR plus 1.00%. LIBOR is a benchmark rate used by many of the world’s leading
ITEM I-1) ORDINANCE
SECOND READING/PUBLIC HEARING
Amendment of Bond Series 2009B
18605 NW 27 Ave.,
Miami Gardens, FL 33056
banks for short-term loans. Recent negotiations have led to the need for an extension beyond six
months. Bank of America has agreed to a one year extension at a fixed rate with level principal and
interest payments each quarter until final maturity on August 1, 2015. A balloon payment and accrued
interest will be due. Bank of America will provide the fixed rate on July 22, 2014.
The bond counsel cost proposed by the bank is $500.00 for this extension which will be paid from the
City’s General Fund.
Proposed Action:
That Council approves the ordinance on its second reading.
Attachment: