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Home My WebLink AboutR-2004-108 Loan Agreement RESOLUTION NO. 2004-108 A RESOLUTION OF CITY OF DANIA BEACH, FLORIDA, AUTHORIZING THE EXECUTION AND DELIVERY OF A LOAN AGREEMENT BETWEEN THE CITY AND COMMUNITY BANK OF BROWARD TO REFLECT, AMONG OTHER MATTERS, AUTHORITY FOR THE EXECUTION AND DELIVERY OF A PROMISSORY NOTE, SERIES 2004, IN THE PRINCIPAL AMOUNT OF $822,500.00 TO FINANCE CONSTRUCTION OF FROST PARK RECREATION CENTER IMPROVEMENTS; PROVIDING FOR THE REPAYMENT OF SUCH PROMISSORY NOTE FROM NON-AD VALOREM REVENUES OF THE CITY; PROVIDING FOR CERTAIN OTHER RELATED MATTERS; PROVIDING FOR SEVERABILITY; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Dania Beach (the "City") and Community Bank of Broward (the "Bank") intend to enter into a Loan Agreement dated as of June 23, 2004 (the "Agreement") pursuant to which the Bank will loan the City $822,500.00 pursuant to a Promissory Note dated June 23, 2004 (the"Note")to finance construction of the Frost Park • Recreation Center improvements (the "Project"); and WHEREAS, the City has pledged to covenant to budget and appropriate from legally available non-ad valorem revenues the sums necessary to pay the amounts due under the Loan Agreement and the Note; and WHEREAS, the City Commission desires to adopt this Resolution to set forth the specific matters relating to the loan transaction; NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA- Section 1: Authorization of Loan Agreement and Promissory Note. The Project is hereby ratified, confirmed and approved. The Agreement , substantially in the form RESOLUTION NO. 2004-108 1 attached hereto as Exhibit A, is hereby approved, with such changes, deletions, • modifications and insertions as may be approved b the City Manager (the "Manager") in Y pp Y Y consultation with the Attorney of the City (the "Attorney"). The Mayor of the City (the "Mayor") or the Vice-Mayor of the City(the"Vice-Mayor"), the Manager or his designee and the Attorney are hereby authorized and directed to execute, and the Manager of the City is hereby authorized to attest, the Agreement. Execution of the Agreement by such officials shall constitute conclusive evidence of the approval thereof by the City. The City hereby authorizes the delivery of the Note, substantially in the form attached to the Agreement, with such changes, deletions, modifications and insertions as may be approved by the Manager in consultation with the Attorney. The Mayor or Vice-Mayor is hereby authorized to execute, and the Manager or his designee is hereby authorized to attest, the Note and to deliver the same to the Bank. Execution of the Note by such officials shall constitute conclusive evidence of the approval thereof by the City. The Note shall be issued pursuant to the Agreement and shall be secured under the Agreement as described in the Agreement. All provisions, covenants, pledges and conditions of the Agreement shall be applicable to the Note. The City is authorized to, and hereby pledges to annually budget and appropriate from legally available non-ad valorem revenues an amount sufficient to pay all amounts due to the Bank under the Note and the Agreement in the applicable budget year, as more fully provided in the Agreement. The City hereby designates the Note as a"qualified tax-exempt obligation"within the meaning of Section 265(b) of the Internal Revenue Code. Section 2: Award of Note. The City hereby confirms the negotiated sale of the • RESOLUTION NO. 2004-108 2 Note to the Bank and finds that because of the nature of the prevailing market conditions, • the negotiated sale of the Note to the Bank is in the best interest of the City. The Note shall not be delivered to the Bank until the City has received from the Bank the disclosure statement and truth-in-bonding statement required by Chapter 218, Florida Statutes. Section 3: Further Authorizations. The Mayor,Vice-Mayor, Manager, and Attorney are each authorized and directed to execute any and all certificates or other agreements or any other documents required by the City Commission as a prerequisite or precondition to making the loan in the Agreement, and any such representation made therein shall be deemed to be made on behalf of the City. All action taken to date by the officers of the City in furtherance of the issuance of the Note are hereby ratified, approved and confirmed. Section 4. Severability. If any one or more of the covenants, agreements or provisions herein contained shall be held contrary to any express provision of law or • contrary to the policy of express law, but not expressly prohibited or against public policy, or shall for any reason whatsoever be held invalid, then such covenants, agreements or provisions shall be null and void and shall be deemed separable from the remaining covenants, agreements or provisions and shall in noway affect the validity of the other provisions hereof or the Note or the Agreement. Section 5: Repeal of Conflicting Resolutions. That all Resolutions or parts of Resolutions in conflict herewith be and the same are hereby repealed to the extent of such conflict. • RESOLUTION NO. 2004-108 3 Section 6: Effective Date. That this Resolution shall be in force and take effect • immediately upon its passage and adoption. PASSED AND ADOPTED by the Commission of the City of Dania Beach, Florida on June 22, 2004. ATTEST: C.K. MCEL ' MAYOR — COMMISSIONER a-2')ZGt.Q.f _ LOUISE STILSON _CITY CLERK_ ROLL CALL: COMMISSIONER ANTON - YES COMMISSIONER CHUNN - YES COMMISSIONER FLURY - YES VICE-MAYOR MIKES - YES APPROVED AS TO FORM AND MAYOR MCELYEA - YES CORRECTNESS: • BY: r ' PANU THOMAS . A SBRO CITY ATTORNEY • RESOLUTION NO. 2004-108 4 Agenda Request Form City of Dania Beach Agenda Item: - 7* Date of Commission meeting: 6122/2004 Description of Agenda Item: Resolution approving a promissory note in the amount of$822,500 Commission action being requested: Adopt Resolution or Ordinance ® Expenditure ❑ Award BID/ RFP ❑ Presentation ❑ General approval of item ❑ Continued from meeting Other(Please explain ;ow— _ . _ ... Summary w" anatio nd background The City Commission approved in the FY 2004 budget to finance the Frost Park Improvement project in the amount of$822,500. Three banks have provided an interest rate for ten year term and • Community Bank of Broward provided the lowest rate at 3.625%. Attached exhibits ai"ditional backup materials (Pleaselist)s Resolution Promissory Note For purchasing requests ONLY Department: Amount: Fund: General: ❑ Water: ❑ Sewer: ❑ Stormwater: ❑ Grants: ❑ Capital: ❑ Account Name: Account Number: Submitted by: pvareney Date: 6/13/2004 Department Director: Date: Admin. Services Director. Date: • Finance Director: pvareny Date: 6/13/2004 City Manager: o` Date: