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<br /> <br />City of Sunny Isles Beach <br />18070 Collins A venue <br />Sunny Isles Beach, Florida 33160 <br /> <br />(305) 947-0606 City HaU <br />(305) 949-3113 Fax <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />The Honorable Mayor and City Commission <br /> <br />FROM: <br /> <br />Doug Haag, Assistant City Manager - Finance <br /> <br />DATE: <br /> <br />3/18/20 I 0 <br /> <br />RE: <br /> <br />TAX EXEMPT BANK QUALIFIED LOAN - $15 MILLION <br /> <br />RECOMMENDA TION: <br /> <br />Approve the ordmance and loan doCllIl"fi1ts with SlIDTrust Bank for a $15 million fixed rate <br />loan to be repaid over 15 ~ and at an interest rate of 4.20%. This rate is locked for 60 <br />days from February 19, 2010. <br /> <br />This loan will be repaid from legallyavailablenon ad valorem revenues, The loan can be <br />repaid early but is subject to penalty provisions of the agreement wuch may be triggered <br />depending upon current market interest rates at the time of prepayment. Payments will be <br />made quarterly, beginning October I, 2010, The total annual debt service will be <br />approximately $1,352,930. Proceeds from the loan will be used for the developrrent of Gty <br />property for parks located on Collins Avenue and SlIDI1Y Isles Boulevard. <br /> <br />The loan documents will need to be signed after the second ordinance reading which has <br />been scheduled for the regular commission meeting on Thursday, March 18, 20 I O. The <br />closing and settlement will occur shortly thereafter. <br /> <br />REASONS: <br /> <br />BACKGROUND: <br /> <br />The City requested a letter of interest from the following financial institutions: <br /> <br />. Bank of America <br />. Sun Trust Bank <br />.UBS <br />. BB & T <br />. MorganStanley SmithBarney <br /> <br />Agenda Item No.1 OA <br />Date 3/18/20 I 0 <br />