03/03/1997 (2)
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COMMUNITY REDEVELOPMENT AGENCY MEETING
CITY OF CLEARWATER
March 3, 1997
Present:
Rita Garvey
J. B. Johnson
Robert Clark
Ed Hooper
Karen Seel
Bob Keller
Elizabeth M. Deptula
Cynthia E. Goudeau
Patricia O. Sullivan
ChairlCRA Trustee
CRA Trustee
CRA Trustee
CRA Trustee
CRA Trustee
Assistant City Manager
City Manager
City Clerk
Board Reporter
The Chair called the meeting to order at 9:02 a.m. at the Municipal Services Building.
To provide continuity for research, items are in agenda order although not necessarily discussed
in that order.
ITEM #2 - Adopt Res. #97~1 providing for the defeasance and/or redemption of the outstanding
Tax Increment and Lease Revenue bonds, Series 1986 and termination of the parking facilities
lease dated August 28, 1986, with the City
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The CRA (Community Redevelopment Agency) owns two floors of the Park Street
Garage parking facility which is leased to the City and a designated part of the City's parking
system. The CRA has granted an option to a buyer to purchase the parking facility. It cannot
be sold until the lease is canceled between the City and CRA.
The CRA provided the funds to construct the Park Street Garage through the issuance
of the $1.66.million Tax Increment and Lease Revenue Bonds, Series 1986. The 1986 Bonds
are secured, in part, by lease revenues generated by the lease agreement between the City and
CRA. The lease cannot be canceled until provisions are made to redeem or defease the 1986
Bonds. The bonds can be redeemed prior to their respective maturities after giving notice to the
bond holders of not more than 30 days and not less than 15 days.
Currently, $1,605,000 in bonds are outstanding on the 1986 Bonds. Redemption
provisions call for payment of a 1 % premium on bonds outstanding, totaling $1,621,050 for
principal and premium on the bonds. In addition, interest 18% - 8%) through payment date will
be required. Work performed by the City's Bond Counsel and Financial Advisor to facilitate the
execution of this transaction will be paid at the contracted hourly fees. The CRA has
approximately $1 A-million in the Debt Service Fund and Downtown Redevelopment Project of
the Capital Improvement Fund available to payor defe8se the 1986 Bonds.
Sale of the Park Street Garage floors is expected to generate adequate funds to redeem
or defease the 1986 Bonds when combined with currently available funds. The Bonds cannot
be redeemed or defeased until the funds are received from the sale of the parking facility.
Adoption of this resolution provides for the defeasance and redemption of the 1986 Bonds and
'0 cancellation of the lease between the City and CRA upon the closing of the sale.
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Finance Director Margie Simmons said the bonds must be paid off and the lease must be
canceled. The City Attorney said closing on the parking garage is not anticipated to occur for 2
months. In response to a question, Ms. Simmons said the balance owed for these 20-year
bonds remains high as a first set of bonds was paid first.
Trustee See I moved to defease and/or redeem the outstanding Tax Increment and Lease
Revenue Bonds, Series 1986, and terminate the parking facility's lease dated August 29, 1986,
with the City and that the appropriate officials be authorized to execute same. The motion was
duly seconded and carried unanimously.
The City Attorney presented Resolution #97-1 (CRA) and read it by title only.
Trustee Johnson moved to pass and adopt Resolution #97-1 (CRA) and authorize the
appropriate officials to execute same. The motion was duly seconded and upon roll call,
the vote was:
"Ayes": Johnson, Clark, Hooper, Seel, and Garvey.
"Nays": None.
ITEM #3 - New Business - None.
ITEM #4 - Assistant City Manager Verbal Reports
CRA/ODB (Downtown Development Board) Relationship
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f...1'~' Assistant City Manager Bob Keller said the CRA and DDB (Downtown Development
.~ Board) have worked for some time to establish a relationship. He complimented the City
Attorney for developing a frame work for a new organization that can exercise many powers,
including budgeting and spending. The agreement would permit the extention of the CRA to
the beach while segregating the funds. He will present the plan to the next DDS meeting.
In response to a question, the City Manager estimated the CRA will have a fund
balance of $200,000, following the sale of the parking facility, depending on sale terms.
The CRA also owns the old "CETA" building.
In response to a question, Mr. Keller said the CRA has written a holding letter to the
DDS regarding the DDS's annual contribution to the CRA. The money will continue to be
transferred back to the CRA. The City Attorney reported the DDS had not yet made their
annual contribution. The City Manager indicated the DDS is required by law to make the
contribution every year.
ITEM #5 - Adjournment
The meeting adjourned at 9:13 a.m.
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