M E M O R A N D U M
To: Honorable Mayor and Town Council
From: Rafael G. Casals, Town Manager
Date: March 18, 2015
Re: Issuance of a Request for Proposals (RFP) # 15-08:
Tax-Exempt and Taxable Loans Services
REQUESTTitle
A RESOLUTION OF THE MAYOR AND TOWN COUNCIL OF THE TOWN OF CUTLER BAY, FLORIDA, AUTHORIZING THE ISSUANCE OF A REQUEST FOR PROPOSAL FOR TAX-EXEMPT AND TAXABLE LOAN SERVICES; PROVIDING FOR AUTHORIZATION; AND PROVIDING FOR AN EFFECTIVE DATE.
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BACKGROUND AND ANALYSIS
In June 2010, the Town acquired the Town Hall building and in December 2010 it acquired the adjacent land parcel to the south of the building. Pursuant to these acquisitions, the Town entered into financing agreements with TD Bank (via Resolution #10-28 and Ordinance #10-06) which included both taxable and tax-exempt promissory notes totaling approximately $12.7 million. In September 2012, the Town borrowed an additional approximate $2.6 million related to the Town's education initiative (via Resolution #12-47 and Ordinance #12-05) and also amended the terms of three of the existing 2010 promissory notes to defer the commencement of principal payments until December 2014.
The 2010 Series A, B, D, & E building acquisition and improvement promissory notes, as amended, provide for interest rate resets on the 5th anniversary date of those loans (June 14, 2015). The loan terms allow the Town to prepay and opt out of those promissory notes on that date without penalty. The Town has provided TD Bank with written notice of its intent to prepay and refinance those 2010 Series A, B, D, & E promissory notes on the reset date. Additionally, the Town informed TD Bank that it would also consider refinancing the 2010 Series C promissory note (the land parcel loan), as amended, and 2012 School Revenue Bonds on the same June 14, 2015 reset date if terms were now more favorable.
As has been discussed during recent Council Workshops, Budget Workshop...
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