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2014-011-322 - 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: (Enter X in box) Ordinance Other X Fiscal Impact: (Enter X in box) Yes No Ordinance Reading: (Enter X in box) 1st Reading 2nd Reading x X Public Hearing: (Enter X in box) Yes No Yes No X Funding Source: (Enter Fund & Dept) General Fund Advertising Requirement: (Enter X in box) Yes No x Contract/P.O. Required: (Enter X in box) Yes No RFP/RFQ/Bid #:N/A X Strategic Plan Related (Enter X in box) 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: