HomeMy WebLinkAbout2014-012-323 - Bond 7.3 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
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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:
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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, AMENDING ORDINANCE NO. 2009-06-178 OF THE CITY COUNCIL
THAT AUTHORIZED THE BORROWING OF SEVEN MILLION, THREE
HUNDRED THOUSAND DOLLARS ($7,300,000), AND THAT AUTHORIZED
THE ISSUANCE OF CITY OF MIAMI GARDENS, FLORIDA TAXABLE LAND
ACQUISITION REVENUE BONDS NOT TO EXCEED SEVEN MILLION, THREE
HUNDRED THOUSAND DOLLARS ($7,300,000); AUTHORIZING AN
EXTENSION OF THE MATURITY DATE OF SAID BONDS; REPEALING ALL
ORDINANCES AND RESOLUTIONS IN CONFLICT; PROVIDING A
SEVERABILITY CLAUSE; PROVIDING AN EFFECTIVE DATE.
Staff Summary:
In 2009, under Ordinance Number 2009-06-178 Council approved the borrowing of $7.3 million for the
acquisition of economic development property located at NW 7 avenue extension and NW 7 Ave (Warren
ITEM I-2) ORDINANCE
SECOND READING/PUBLIC HEARING
Amending Ord. 2009-06-178
18605 NW 27 Ave.,
Miami Gardens, FL 33056
Henry property). The bond is to be matured on February 1, 2014 with a balloon payment of $6,311,999
in principal. On January 8, 2014, under Ordinance Number 2014-01-313, Council approved a six months
extension delaying the balloon payment to August 1, 2014.
At the May 14, 2014 Council meeting, Council authorized the City Manager to negotiate and enter in to a
contract for the sale of the property. A contract has been signed with a target date of closing prior to
August 1, 2014. However, as a pre-caution should circumstances arise and that closing be delayed
beyond August 1, 2014, staff has negotiated with the bank for another six months of extension for the
balloon payment. The terms of the agreement will remains with the exception that the interest rate will
be a variable rate tied to 30day LIBOR rate plus 100 basis point, which is 1.16% based on June 16,
2014. Currently, the bond is at a fixed rate of 4.8%. The variable rate also provides the City flexibility to
pay off the loan without penalty at the end of each month.
The bond counsel cost proposed by the bank is $750.00 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: