CITY OF ORLANDO
COUNCIL AGENDA ITEM

Items Types:
Community Redevelopment Agency (CRA) 		For Meeting of:
November 12, 2018
District: ALL From:
Contract ID: Document Number:
Exhibits: Yes On File (City Clerk) : Yes Draft Only: No
Grant Received by City?: No
Subject:
Adopting a Resolution Supplementing Resolution No. 090810406 and Authorizing the Community Redevelopment Agency’s (CRA) Issuance of the issuance of its Tax Increment Revenue Refunding Bonds (Downtown District), Series 2019A
Summary:

The Resolution supplements Resolution No. 090810406 and 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 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.

The Series 2019A Bonds provides for a refunding on a forward delivery basis since the Series 2009A Bonds and Series 2009C Bonds are not callable until next year.  The Forward Delivery Direct Purchase Agreement with STI Institutional & Government, Inc., locks in the interest rate now, for a refunding to occur on September 3, 2019.  This structure protects against possible interest rate increases over the next year in order to maximize savings and has been recommended by the City’s Financial Advisor, PFM Financial Advisors LLC. 

Due to the characteristics of the Series 2019A Bonds, the anticipated market conditions, and the need for an expeditious lock to the interest rate, it is being recommended that the method of sale be through a negotiated sale to STI Institutional & Government, Inc.

Along with the Resolution, the action will approve the form of and authorize the execution of a Forward Delivery Direct Purchase Agreement, as well as authorize the Chairman and Executive Director to approve changes thereto and take other action necessary to complete the transaction.
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. 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.
Recommended Action:

Adopt the Resolution and authorize its execution by the Chairman and the Executive Director.
Agenda Item attachment(s) on file in the City Clerks Office.
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.
Contact: James S Varnado, Office of Business and Financial Services, james.varnado@cityoforlando.net, 407-246-3615
Approved By:

Department Date and Time
Budget Outside Routing Approval 11/2/2018 2:19 PM
City Clerk 11/2/2018 2:23 PM
ATTACHMENTS:
Name: Description: Type:
2019A_CRA_Resolution_(01412937-5)[1].pdf 2019A CRA Resolution Backup Material
Direct_Purchase_Agreement-OrlandoCRA_TIF_Refunding_Bonds_Series_2019A[1].pdf Direct Purchase Agreement Backup Material
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