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Home My WebLink AboutR-2021-049 BC 4th Amendment to Loan Agreement (RCP Loan to Grant from 20 to 30 Years)RESOLUTION NO.2021-049 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA, AUTHORIZING EXECUTION OF A FOURTH AMENDMENT TO THE LOAN AGREEMENT EXISTING BETWEEN THE CITY OF DANIA BEACH, COMMUNITY REDEVELOPMENT AGENCY (CRA) AND BROWARD COUNTY, FLORIDA ("COUNTY" OR "LENDER") TO INCREASE THE TIME FOR CALCULATING THE COUNTY'S SHARE OF THE NET INCREASE IN THE TAX BASE DUE TO SPECIFIC REDEVELOPMENT PROJECT(S), FOR PURPOSES OF CONVERTING THE TERM OF THE LOAN TO A GRANT, FROM TWENTY (20) TO THIRTY (30) YEARS; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Dania Beach and the CRA previously submitted documentation and obtained County funding through the Broward County Redevelopment Capital Program for a portion of the parking garage costs, in support of private redevelopment, adjacent to the Dania Beach City Hall and Library at a cost of Two Million Five Hundred Ninety Thousand Nine Hundred Nine Dollars ($2,590,909.00); and WHEREAS, the loan was evidenced by a Loan Agreement dated September 28, 2010, and Promissory Note from the Borrowers in favor of the Lender dated September 28, 2010; and WHEREAS, on February 8, 2011, the Original Loan Agreement was amended by a First Amendment to Loan Agreement ("First Amendment"), and the Original Note was replaced and superseded by a Promissory Note dated January 25, 2011; and WHEREAS, on March 4, 2014, the Original Loan Agreement was amended by a- Second Amendment to Loan Agreement ("Second Amendment"), and the First Amended Note was replaced and superseded by that certain Amended and Restated Promissory Note dated February 19, 2014; and WHEREAS, on June 16, 2020, the Original Loan Agreement was amended by a Third Amendment to Loan Agreement ("Third Amendment"), to reduce the Original Loan Amount to Six Hundred Twenty -One Thousand Eight Hundred Seventy -Six Dollars ($621,876.00), reflective of a partial loan -to -grant conversion of One Million Nine Hundred Sixty -Nine Thousand Thirty - Three Dollars ($1,969,033.00), and the Second Amended Note was replaced and superseded by a Promissory Note dated May 19, 2020; and WHEREAS, the CRA as Borrower has requested that certain terms of the Amended Loan Agreement be further amended to increase the time for calculating the County's share of the net increase in the tax base due to specific redevelopment project(s), for purposes of converting the loan to a grant, from a term of twenty (20) to thirty (30) years; and WHEREAS, the County is willing to amend the same upon the terms and conditions set forth and subject to the conditions set forth in the Dania Beach Interlocal Agreement among the Parties, dated April 20, 2004, as amended by the Seventh Amendment to Dania Beach Interlocal Agreement dated March 1, 2011; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA: Section 1. That the foregoing "Whereas" clauses are ratified and confirmed to be true and correct and they are made a part of and are incorporated into this Resolution by reference. Section 2. That the City Commission authorizes execution of a Fourth Amendment To Loan Agreement between the City, CRA and County to increase the time for calculating the County's share of the net increase in the tax base due to specific redevelopment project(s), for purposes of converting the loan to a grant, from a term of twenty (20) to thirty (30) years; a copy of the Fourth Amendment is attached as Exhibit "A" and is made part of and incorporated into this Resolution by this reference, provided, however that no document will be effective unless and until it has been executed by all parties. Section 3. That all resolutions or parts of resolutions in conflict with this Resolution are repealed to the extent of such conflict. Section 4. That this Resolution shall be in force and take effect immediately upon its passage and adoption. PASSED AND ADOPTED on Anr'�2021. ATTEST: THOMAS SCl CITY CLERK APPROVED THOMAS J.rANSB CITY AT O' R' NEY CMC e ISHED, FORM AND CORRECTNESS: TAMARA JAMES MAYOR 2 RESOLUTION #2021-049 Return recorded copy to: Ralph Stone, Director Housing Finance and Community Redevelopment Division 110 N.E. 3rd Street, Suite 300 Fort Lauderdale, FL 3301 Document prepared by: Alexis Marrero Koratich, Asst. County Attorney Broward County Attorney's Office 115 South Andrews Avenue, Suite 423 Fort Lauderdale, Florida 33301 FOURTH AMENDMENT TO LOAN AGREEMENT This Fourth Amendment to Loan Agreement is made and entered into by and among the City of Dania Beach, Florida, a municipal corporation under the laws of the State of Florida, whose post office address is 100 West Dania Beach Boulevard, Dania Beach, Florida 33304 ("City"), the Dania Beach Community Redevelopment Agency, or its successor, a public body corporate and politic, whose post office address is 100 West Dania Beach Boulevard, Dania Beach, Florida 33304 ("CRA") (collectively, "City/CRA" or "Borrowers"), and Broward County, Florida, a political subdivision of the State of Florida, whose post office address is 115 South Andrews Avenue, Fort Lauderdale, Florida 33301 ("Lender" or "County") (collectively, the "Parties"). RECITALS A. The Borrowers previously submitted documentation and obtained County funding through the Broward County Redevelopment Capital Program for a portion of a parking garage, in support of private redevelopment, adjacent to the Dania Beach City Hall and Library ("Parking Garage") at a cost of Two Million Five Hundred Ninety Thousand Nine Hundred Nine and no/100 Dollars ($2,590,909.00) ("Original Loan Amount"), which Loan was evidenced by a Loan Agreement ("Original Loan Agreement") dated September 28, 2010, and Promissory Note from the Borrowers in favor of the Lender dated September 28, 2010 ("Original Note"), both recorded at Instrument #109614750, Official Records Book 47410, Pages 1694-1730, of the public records of Broward County. On February 8, 2011, the Original Loan Agreement was amended by a First Amendment to Loan Agreement ("First Amendment"), and the Original Note was replaced and superseded by a Promissory Note dated January 25, 2011 ("First Amended Note"), both recorded at Instrument #109894015 of the public records of Broward County. On March 4, 2014, the Original Loan Agreement was amended by a Second Amendment to Loan Agreement ("Second Amendment"), and the First Amended Note was replaced and superseded by that certain Amended and Restated Promissory Note dated February 19, 2014 ("Second Amended Note"), both recorded at Instrument #112139888 of the public records of Broward County. On June 16, 2020, the Original Loan Agreement was amended by a Third Amendment to Loan Agreement ("Third Amendment"), to reduce the Original Loan Amount to Six Hundred Twenty -One Thousand Eight Hundred Seventy -Six and no/100 Dollars ($621,876.00) ("Loan"), reflective of a partial loan -to -grant conversion of One Million Nine Hundred Sixty -Nine Thousand Thirty -Three Dollars ($1,969,033.00), and the Second Amended Note was replaced and superseded by a Promissory Note dated May 19, 2020 ("Third Amended Note"), both recorded at Instrument #116564796 of the public records of Broward County (Original Loan Agreement, as amended by the First Amendment, Second Amendment, and Third Amendment are hereinafter referred to as the "Amended Loan Agreement"). B. The Borrower has requested that certain terms of the Amended Loan 2 Agreement be further amended to increase the time for calculating the County's share of the net increase in the tax base due to specific redevelopment project(s), for purposes of converting the loan to a grant, from twenty (20) to thirty (30) years. The Lender is willing to amend the same upon the terms and conditions hereinafter set forth and subject to the conditions set forth in the Dania Beach Interlocal Agreement among the Parties, dated April 20, 2004, as amended by the Seventh Amendment to Dania Beach Interlocal Agreement dated March 1, 2011 ("Amended Interlocal Agreement"), recorded at Official Records Book 50203, Page 600, of the public records of Broward County. NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements hereinafter set forth, the Parties hereto do hereby agree as follows: 1. The Recitals contained above are true and correct, form a material part of this Fourth Amendment upon which the Parties have relied, and are incorporated by reference. 2. Section 2 of the Amended Loan Agreement is hereby amended to read as follows: 2. Loan. The Loan shall be evidenced by the Note in the form attached hereto as Exhibit "A." The Borrowers acknowledge that Tthe Note shall be fuirid-.ed in one lump sum rrnid-irohull eyidease the I nafn was previously funded by the Lender and no new money shall be loaned as a result of this Fourth Amendment, and that Tthe proceeds of the Loan sna-bc-were used by the Borrowers solely for the actual costs of, or reimbursement thereof, the 44W sPaGeG 9f t 9Parking gGarage sfras#UFe in exse66 of the 250 spa iro1 fgr 1 ibrani and Gity Hall „sew in the amount of Six Hundred Twenty -One Thousand Eight Hundred Seventy -Six and no/100 Dollars ($621,876.00), which amount represents the partial loan -to -grant conversion of One Million Nine Hundred Sixty -Nine Thousand Thirty -Three and no/100 Dollars ($1,968,033.00) from the original loan balance of Two Million Five Hundred Ninety Thousand Nine Hundred Nine and no/100 Dollars ($2,590,909.00), as provided for in the 4LA Amended Interlocal Agreement. The Lender shall provide a grant on the Loan up to the amount of the Loan amount if timeframe if any, nrevided in the 1 ibFaFy Agreement (it being aGkno wleidged Fh++ the City/CRA demonstrates that the County's share of the revenue generated by the net increase in the tax base due to specific private redevelopment projects within the Dania Beach RCP Redevelopment Area boundaries over Ewen 0) thirty 30 years (measured from the €effective Odate of the First Amendment to the Dania Beach Interlocal Agreement, dated February 21, 2006) is expected to equal or exceed the amount of the OFiginal PaFkiRg GaFage Loan. If this conditions 1) and `` above aFe is met, the Parking GaF ge Loan shall convert to a grant through formal request by the Borrowers in accordance with the terms outlined in the tL4 Amended Interlocal Agreement. 4 If nnn`Jitinn 1) in the ah-a-ye paFagFaph and pugs apt to the II A is me4 but with respen+ tG nnnidi+inn 2) referennerd the County's share of the revenue generated by the net increase in the tax base due to specific private redevelopment project(s) is expected to be less than the full amount of the eFigiRal Loan., due to either completion of only a portion of said project(s), or completion of a specific private redevelopment project(s) that does not generate expected County revenue equal to the full amount of the eFig+aal Loan, a "partial" loan -to -grant conversion may take place for an amount that is expected to equal the County's share of the revenue generated by the net increase in the tax base due to said completed portions of project(s). If a "partial" loan -to -grant conversion(s) takes place, the resulting amended loan amount will be the difference between the full amount of the efigiRal Loan and the partial loan amount(s) converted to a grant(s). A loan -to - grant conversion for the full amount of the efiginal Loan also may occur with one payment, at the time of completion of the private redevelopment project(s), with appropriate Certificate of Occupancy documentation. "Full" or partial" loan -to - grant conversion(s) of the eFiginal Loan may also occur at any time during the term of the Wiginal Loan. However, if for any loan -to -grant conversion(S) essUr-s occurring after the 8-year interest -free period and when repayment on the principal has begun, as defined in Section 3 hereinbelow, the amount available for conversion to a grant(s) is the outstanding Loan balance (defined as the eFiginal Loan less any conversions and repayments of principal) at the time of conversion. +Interest accrued to that date shall not be eligible for conversion 5 and shall be paid to the County at the time of conversion. All interest paid shall be retained by the County. 3. Except as amended herein, all of the terms, conditions, and provisions of the Amended Loan Agreement shall remain in full force and effect. 4. In the event of any conflict of ambiguity by and between the terms and provisions of this Fourth Amendment and the Amended Interlocal Agreement and/or the Amended Loan Agreement, the terms and provisions of this Fourth Amendment shall control to the extent of any such conflict. 5. This Fourth Amendment shall be recorded in the public records of Broward County at the Borrowers' expense. [Remainder of page intentionally left blank] L IN WITNESS WHEREOF, the Parties hereto have made and executed this Fourth Amendment to Loan Agreement on the respective dates under each signature: Broward County, through its Board of County Commissioners, signing by and through its Mayor or Vice -Mayor, authorized to execute same by Board action on the day of 2021; the City of Dania Beach, signing by and through its duly authorized to execute same; and the Dania Beach Community Redevelopment Agency, signing by and through its Chair, duly authorized to execute same. ATTEST: County Broward County, through its Board of County Commissioners County Administrator and ex By officio Clerk of the Mayor Board of County Commissioners of Broward County, Florida day of 12021 Approved as to form by Andrew J. Meyers, Broward County Attorney Governmental Center, Suite 423 115 South Andrews Avenue Fort Lauderdale, Florida 33301 Telephone: (954) 357-7600 0 Alexis Marrero Koratich Assistant County Attorney day of 12021 Maite Azcoitia Deputy County Attorney day of 12021 FOURTH AMENDMENT TO LOAN AGREEMENT AMONG BROWARD COUNTY, CITY OF DANIA BEACH, AND DANIA BEACH COMMUNITY REDEVELOPMENT AGENCY CSC ATTEST: City of Dania Beach, through its City Clerk By City Manager day of , 2021 Approved as to form: By City Attorney day of , 2021 FOURTH AMENDMENT TO LOAN AGREEMENT AMONG BROWARD COUNTY, CITY OF DANIA BEACH, AND DANIA BEACH COMMUNITY REDEVELOPMENT AGENCY CRA Witnesses: Dania Beach Community Redevelopment Agency Print Name: Print Name: AI K/g b 3/19/2021 day of 2021