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03/03/1997 COMMUNITY REDEVELOPMENT AGENCY MEETING CITY OF CLEARWATER March 3, 1997 Present: Rita Garvey Chair/CRA Trustee J. B. Johnson CRA Trustee Robert Clark CRA Trustee Ed Hooper CRA Trustee Karen Seel CRA Trustee Bob Keller Assistant City Manager Elizabeth M. Deptula City Manager Cynthia E. Goudeau City Clerk Patricia O. Sullivan 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 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 (8% - 8½) 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 $1.4-million in the Debt Service Fund and Downtown Redevelopment Project of the Capital Improvement Fund available to pay or defease 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 cancellation of the lease between the City and CRA upon the closing of the sale. 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 Seel 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/DDB (Downtown Development Board) Relationship 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 DDB 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 DDB regarding the DDB’s annual contribution to the CRA. The money will continue to be transferred back to the CRA. The City Attorney reported the DDB had not yet made their annual contribution. The City Manager indicated the DDB is required by law to make the contribution every year. ITEM #5 - Adjournment The meeting adjourned at 9:13 a.m.