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A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF POMPANO BEACH, FLORIDA APPROVING A SUPPLEMENTAL RESOLUTION OF THE POMPANO BEACH COMMUNITY REDEVELOPMENT AGENCY (THE “AGENCY”) SUPPLEMENTING THE AGENCY’S PREVIOUSLY ADOPTED MASTER BOND RESOLUTION TO PROVIDE FOR THE ISSUANCE BY THE AGENCY OF ITS 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 AGENCY’S 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 SET FORTH IN SAID SUPPLEMENTAL RESOLUTION; APPROVING THE NEGOTIATED SALE OF EACH SERIES OF SUCH ADDITIONAL BONDS, ALL AS MORE FULLY DESCRIBED IN THE SUPPLEMENTAL RESOLUTION; APPROVING THE ISSUANCE OF EACH SERIES OF SUCH ADDITIONAL BONDS BY THE AGENCY, SUBJECT TO THE TERMS AND CONDITIONS OF THE MASTER BOND RESOLUTION AND SUPPLEMENTAL RESOLUTION; PROVIDING CERTAIN OTHER MATTERS WITH RESPECT THERETO; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE.
(Fiscal Impact: N/A)
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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. Chapter 163.385, Florida Statutes, requires that the City Commission as the governing board that created the Pompano Beach Community Agency approve bonds to be issued by the CRA. The CRA Board via supplemental resolution 2025-08 (the "supplemental resolution"), adopted on May 14, 2025 authorizes the issuance of Tax Increment Revenue Bonds (Northwest District Area) not to exceed $75 million (inclusive of any required debt service reserve and exclusive discount/premium) in order to raise proceeds needed to fund the infrastructure (drainage, roadways, pedestrian bridges etc.) for the new Downtown.
The bonds are to 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 authorized the CRA to issue bonds not to exceed $75 million in order to accommodate any debt service reserve and costs of issuance (excludes premium/discount) 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.
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: NA
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