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A SUPPLEMENTAL RESOLUTION OF THE POMPANO BEACH COMMUNITY REDEVELOPMENT AGENCY SUPPLEMENTING MASTER BOND RESOLUTION NO. 2022-20 ADOPTED BY THE COMMUNITY REDEVELOPMENT AGENCY ON JUNE 28, 2022 TO AUTHORIZE THE ISSUANCE OF ITS NOT EXCEEDING $75,000,000 TAX INCREMENT REVENUE BONDS (NORTHWEST DISTRICT AREA) IN ONE OR MORE SERIES OF TAX EXEMPT AND/OR TAXABLE BONDS AND AS ADDITIONAL BONDS PURSUANT TO THE MASTER BOND RESOLUTION, FOR THE PURPOSE OF FINANCING (INCLUDING THROUGH REIMBURSEMENT), TOGETHER WITH OTHER LEGALLY AVAILABLE FUNDS, ALL OR A PORTION OF THE COST OF A REDEVELOPMENT PROJECT RELATING TO THE NORTHWEST DISTRICT AREA, INCLUDING CERTAIN OTHER COSTS RELATED TO SUCH ADDITIONAL BONDS, ALL AS MORE FULLY PROVIDED FOR HEREIN; AUTHORIZING THE EXECUTION AND DELIVERY OF SUCH ADDITIONAL BONDS; AUTHORIZING THE NEGOTIATED SALE OF SUCH ADDITIONAL BONDS AND ESTABLISHING CERTAIN PARAMETERS OF SUCH SALE; DELEGATING AUTHORITY TO THE EXECUTIVE DIRECTOR OF THE COMMUNITY REDEVELOPMENT AGENCY, IN CONSULTATION WITH THE AGENCY’S MUNICIPAL ADVISOR, TO SELECT ONE OR MORE UNDERWRITERS FOR EACH SERIES OF SUCH ADDITIONAL BONDS; APPROVING THE FORM, AND AUTHORIZING EXECUTION, OF A BOND PURCHASE CONTRACT FOR EACH SERIES OF SUCH ADDITIONAL BONDS, SUBJECT TO THE PARAMETERS SET FORTH HEREIN; APPROVING A FORM OF PRELIMINARY OFFICIAL STATEMENT AND RELATED MATTERS FOR EACH SERIES OF ADDITIONAL BONDS AND AUTHORIZING EXECUTION AND DELIVERY OF A FINAL OFFICIAL STATEMENT FOR EACH SERIES OF ADDITIONAL BONDS; APPROVING THE FORM, AND AUTHORIZING EXECUTION, OF A CONTINUING DISCLOSURE CERTIFICATE AND RELATED MATTERS FOR EACH SERIES OF ADDITIONAL BONDS; PROVIDING FOR THE APPOINTMENT OF THE INITIAL PAYING AGENT AND REGISTRAR FOR EACH SERIES OF SUCH ADDITIONAL BONDS AND THE EXECUTION OF A RELATED PAYING AGENT AND REGISTRAR AGREEMENT; PROVIDING FOR A MUNICIPAL BOND INSURANCE OPTION FOR EACH SERIES OF ADDITIONAL BONDS; AUTHORIZING OTHER REQUIRED ACTIONS; AUTHORIZING THE PROPER OFFICIALS OF THE AGENCY TO DO ALL OTHER THINGS DEEMED NECESSARY OR ADVISABLE IN CONNECTION WITH THE MATTERS PROVIDED FOR HEREIN; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE.
(Fiscal Impact: Not To Exceed $75 million (excludes premium or discount) to be financed through 2049. Annual debt service of approximately $6.7M.)
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(Staff Contact: Suzette Sibble/Nguyen Tran)
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Summary Explanation/Background:
On June 20, 2024, the City Commission and CRA Board approved a Master Development Agreement (MDA) with RP Pompano LLC (an affiliate of RocaPoint Partners) to serve as the Master Developer for the new Downtown to manage and deliver a turn key project for the City and CRA. As part of the MDA, the City Commission and CRA Board approved the issuance of Tax Increment Bonds by the Pompano Beach Community Redevelopment Agency in order to raise proceeds needed to fund the infrastructure (drainage, roadways, pedestrian bridges etc.) for the Downtown. This agenda item authorizes the issuance of the Pompano Beach Community Redevelopment Agency’s Tax Increment Revenue Bonds (Northwest District Area), which will be secured by a pledge of the existing tax increment revenues relating to the Northwest District Area. Project costs to be financed is approximately $64 million. The supplemental resolution requests authorization to issue a not to exceed amount of $75 million (excluding premium/discount) in order to accommodate any debt service reserve and costs of issuance that may be required to market and sell the bonds. The bond documents were prepared by Holland and Knight serving in the capacity of bond and disclosure counsel for the CRA. Bond counsel's role is to prepare the required financing documents and provide a legal opinion on the bonds tax status and validity. Once the design for the infrastructure is complete, the Agency will obtain a rating from a nationally recognized rating agency. This rating will provide a framework for the interest rate the Agency will obtain for the bonds. The bonds will ultimately be offered as a public offering through an underwriter who sells the bonds on the Agency's behalf to investors. The amount issued would be financed with a final maturity of 2049 and an interest rate of approximately 5.2% and maximum annual debt service of $6.7M, subject to market conditions at time of sale. See attached agenda memo for more detail.
The drainage infrastructure (linear waterway system) is an integral component of the Downtown master plan. Not only does it serve as an amenity for the project, but the installation of the infrastructure will enhance the value of the pads owned by the Agency in the Downtown resulting in higher sale proceeds. Installation of the infrastructure by the Agency will also accelerate the timeline for the development of each pad (residential, hotel, office, retail etc.) by the private sector.
Origin of request for this action: Staff
Fiscal impact and source of funding: : Not to exceed $75 million (excludes premium or discount) to be financed through 2049. Annual debt service of approximately $6.7 Million; Northwest CRA District Tax Increment Revenue.
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