Ordinance 2009-323 - Laserfiche WebLink

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OF S\J\'l City of Sunny Isles Beach City Commission Agenda 18070 Collins Avenue, Sunny Isle Beach, FL 33160 (305) 947-0606 Phone (305) 949-3113 Fax AGENDA BILL REQUESTED ACTION Approve the ordinance and loan documents with Bank of America for a $20 million fixed rate loan to be repaid over 20 years and at an interest rate that will be locked in on May 21, 2009. This loan will be repaid from legally available non ad valorem revenues. The loan can be repaid early but is subject to penalty provisions of the agreement which may be triggered depending upon current market interest rates at the time of prepayment. Payments will be made quarterly, beginning October 1, 2009. While we won't know the final rate until the day of the commission meeting, based upon the interest rate as of May 14, 2009 of 4%, the quarterly payment amount will be approximately $366,250 for a total annual debt service of $1,465,000. Proceeds from the loan will be used for property acquisition, infrastructure projects and park development. The loan documents will need to be signed after the second ordinance reading which has been scheduled for a special meeting on Friday June 5, 2009 at 10:00AM. The closing and settlement is tentatively scheduled for Monday, June 8, 2009. BACKGROUND The City requested a letter of interest from the following financial institutions: . Bank of America . SunTrust Bank . UBS . City National Bank . Colonial Bank . WachoviajWells Fargo . Smith BarneyjCiti . Florida League of Cities Funding required for this action: I No Transfer Required: I No Transfer from account number: I N/A For the Commission Meeting of: May 21, 2009 Submitted by: Doug Haag Title: Assistant City Manager/Finance Approved by Finance Director: Doug Haag Approved by Acting City Manager: Rick Conner Source of funds: I Amount of Transfer: I To account number: I Initials: I Om~ N/A N/A N/A Agenda Item Number Initials: I ~ Initials: , ..3/\