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Summary:
Section 163.385 of the Florida Statutes requires City Council, as the governing body which created the CRA, to authorize or approve by resolution or ordinance the CRA’s issuance of tax increment revenue bonds. This Resolution authorizes the CRA’s issuance of certain tax increment refunding bonds by approving the Bond Resolution of the CRA to be considered for adoption by the CRA on even date herewith (the “CRA Bond Resolution”). The CRA Bond Resolution approves and authorizes the issuance by the CRA of its Tax Increment Revenue Refunding Bonds (Downtown District), Series 2019A (the “Series 2019A Bonds”), in an aggregate principal amount not to exceed $60,000,000.
Proceeds of the Series 2019A Bonds will be used to refund the CRA’s outstanding Tax Increment Revenue Bonds (Downtown District), Series 2009A (the “Series 2009A Bonds”), and its Taxable Tax Increment Revenue Bonds (Downtown District – Direct Subsidy Build America Bonds), Series 2009C (the “Series 2009C Bonds”), in order to achieve debt service savings. The Series 2009A Bonds and Series 2009C Bonds originally financed a portion of the construction and development of Phase 1 of the Dr. Phillips Center for the Performing Arts. |
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Fiscal & Efficiency Data:
Issuance of the Series 2019A Bonds is anticipated to result in average debt service savings of approximately $634,000 per year, or approximately $8.6 million (15.1%) in total net present value savings when compared to the Series 2009A and Series 2009C Bonds. Savings figures assume the Series 2009C Bonds debt service is net of the 35% federal subsidy less the current 6.2% sequestration amount through maturity. The Series 2019A Bonds will be structured for level debt service and feature a 10-year par call provision allowing for the potential of future additional savings. The Series 2019A Bonds will be issued in the smallest amount necessary to refund the Series 2009A and Series 2009C Bonds and to pay the costs of issuance. No additional debt is being issued as part of this refunding, and the CRA’s debt service post-refunding will be less than the CRA’s current debt service.
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Recommended Action:
Adoption of the Resolution Approving the Bond Resolution of the Community Redevelopment Agency (CRA) for the issuance by the CRA of Tax Increment Revenue Refunding Bonds (Downtown District), Series 2019A, and authorization of the Mayor and City Clerk to execute same, subject to review by the City Attorney’s Office. |
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Agenda Item attachment(s) on file in the City Clerks Office.
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Note:
All agenda items must
be in the City Clerk's office by Noon Friday, six(6) business days prior to the
regular Monday City Council meeting.
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Contact:
James S Varnado, Office of Business and Financial Services, james.varnado@cityoforlando.net, 407-246-3615
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Approved By:
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Department
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Date and Time
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| Budget Outside Routing Approval |
11/2/2018 2:21 PM |
| City Clerk |
11/2/2018 2:24 PM |
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