M E M O R A N D U M
To: Honorable Mayor and Town Council
From: Rafael G. Casals, ICMA-CM, CFM, Town Manager
Date: September 24, 2020
Re: Issuance of $3,100,000 Taxable Capital Improvements Revenue Note
REQUEST
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A RESOLUTION OF THE MAYOR AND TOWN COUNCIL OF THE TOWN OF CUTLER BAY, FLORIDA AUTHORIZING THE ISSUANCE OF NOT EXCEEDING $3,100,000 TAXABLE CAPITAL IMPROVEMENTS REVENUE NOTE OF THE TOWN OF CUTLER BAY, FLORIDA FOR THE PURPOSE OF FINANCING A PORTION OF THE COST OF PROPERTY PURCHASED FROM GCF INVESTMENTS, INC, AND PAYING COSTS OF ISSUANCE OF THE NOTE; APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF A LOAN AGREEMENT WITH TRUIST BANK; AWARDING THE NOTE TO TRUIST BANK; PROVIDING FOR SECURITY FOR THE NOTE; PROVIDING CERTAIN OTHER MATTERS IN CONNECTION WITH THE ISSUANCE OF THE NOTE; REPEALING ALL RESOLUTIONS OR PARTS OF RESOLUTIONS IN CONFLICT HEREWITH; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE.
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BACKGROUND AND ANALYSIS
On September 16, 2020, the Town Council adopted Ordinance No. 20-14 authorizing the issuance of not exceeding $3,100,000 of Capital Improvements Revenue Bonds for the purpose of financing the cost of improvements to Franjo Park, acquiring vacant land for preservation, conservation and resiliency purposes, and reimbursing the Town for the acquisition of vacant land for the site of a new civic center and public park, in accordance with the provisions of the Charter of the Town and Chapter 166, Florida Statutes.
As a result, Town Staff is issuing the bond documents that we, in collaboration with the Town’s Financial Advisor (Estrada Hinojosa), Town Attorneys and Underwriters have developed. Please find attached hereto the following exhibits for your review:
Ø Exhibit “A” - Loan Agreement Series 2020
Our Financial Advisor has evaluated recent Private Placement Bond Request for Proposals (RFP) from several municipalities. The most favorable RFP, which was recently awarded was from the City of Bonita Springs, FL. The RFP was competitively bid and was awarded to: Truist Bank, a State of Florida banking corporation. The Town’s Financial Advisor was able to negotiate the same favorable terms and conditions with Truist Bank, outlined in Resolution - Exhibit “A” Loan Agreement.
Pursuant to the terms of Section 3.10(A) of the Town Charter, I am recommending the waiver of competitive bidding for the selection of Truist Bank for the issuance of Taxable Capital Improvement Revenue Note. The waiver of competitive bidding is based on the impracticality of meeting the schedule for competitive bidding and in the current interest rate and political environment it is critical to market the Bonds prior to the November 3, 2020 general Federal election.
RECOMMENDATION
It is recommended that the Town Council approve the attached Resolution authorizing the issuance of not exceeding $3,100,000 Taxable Capital Improvements Revenue Note (the “Note”). In addition, waiving the competitive bidding process based upon the Town Manager’s recommendation to contract with Truist Bank for the issuance of the Note. The purpose of the Note is to finance a portion of the cost of the property purchased from GCF Investments, Inc. and paying cost of issuance of the Note.Note.