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2014-012-323 - 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: (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, 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: