Town of Cutler Bay - File #: Item # 2020-163

• File #: Item # 2020-163
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 8/20/2020
• In control: Town Council
• On agenda: 9/16/2020
• Final action: 9/16/2020
• Title: AN ORDINANCE OF THE MAYOR AND TOWN COUNCIL OF THE TOWN OF CUTLER BAY, FLORIDA AUTHORIZING THE ISSUANCE OF NOT EXCEEDING $3,100,000.00 OF TAXABLE CAPITAL IMPROVEMENTS REVENUE BONDS OF THE TOWN OF CUTLER BAY, FLORIDA FOR THE PURPOSE OF FINANCING A PORTION OF THE COST OF PROPERTY PURCHASED FROM GCF INVESTMENTS, INC; PROVIDING FOR A SUPPLEMENTAL RESOLUTION SETTING FORTH THE DETAILS OF SAID BONDS; PROVIDING THAT THE BONDS MAY BE ISSUED AS A SEPARATE SERIES OF BONDS AS PART OF THE SAME OFFERING OF THE BONDS AUTHORIZED BY ORDINANCE NO. 20-09 ADOPTED ON AUGUST 26, 2020; PROVIDING FOR AUTHORIZATION FOR NEGOTIATIONS; PROVIDING FOR SEVERABILITY; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE.

Date	Ver.	Action By	Action	Result
9/16/2020	1	Town Council	adopted	Pass
8/26/2020	1	Town Council	approved on first reading	Pass

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 16, 2020

Re: Refinancing Series 2015B Bond (Second Reading)


REQUEST
title
AN ORDINANCE OF THE MAYOR AND TOWN COUNCIL OF THE TOWN OF CUTLER BAY, FLORIDA AUTHORIZING THE ISSUANCE OF NOT EXCEEDING $3,100,000.00 OF TAXABLE CAPITAL IMPROVEMENTS REVENUE BONDS OF THE TOWN OF CUTLER BAY, FLORIDA FOR THE PURPOSE OF FINANCING A PORTION OF THE COST OF PROPERTY PURCHASED FROM GCF INVESTMENTS, INC; PROVIDING FOR A SUPPLEMENTAL RESOLUTION SETTING FORTH THE DETAILS OF SAID BONDS; PROVIDING THAT THE BONDS MAY BE ISSUED AS A SEPARATE SERIES OF BONDS AS PART OF THE SAME OFFERING OF THE BONDS AUTHORIZED BY ORDINANCE NO. 20-09 ADOPTED ON AUGUST 26, 2020; PROVIDING FOR AUTHORIZATION FOR NEGOTIATIONS; PROVIDING FOR SEVERABILITY; PROVIDING FOR CONFLICTS; AND PROVIDING FOR AN EFFECTIVE DATE.
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BACKGROUND AND ANALYSIS

On January 9, 2020, the Town purchased from GCF Investments, Inc. ("GFC") undeveloped real property (the "Property"), sixteen (16) Acres, for a purchase price of $17,000,000.00. The purchase price consisting of (i) the conveyance by the Town to GFC of the Town Hall Properties, valued at $14,000,000.00, and (ii) payment by the Town to GFC of $3,000,000.00 in cash. Because the Town did not receive any cash proceeds from the sale of the Town Hall Properties, the remaining balances of the TD Bank Series 2015A and 2015B Notes used to finance the Town Hall Properties remain outstanding.

Throughout this year, Town Staff and Financial Advisor conducted a series of Fund Balance Replenishment Plan (the "Plan") Council Workshops, February 26, 2020 and July 29, 2020, as well as individual meetings with Council Members. The Town Council gave clear direction to staff to explore every available option for replenishing the Town's Fund Balance and restructuring of any outstanding debt. The Plan originally called for, among other actions, the...