Res 63-05
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RESOLUTION NO. 63-05
A RESOLUTION OF THE CITY OF DELRAY BEACH, FLORIDA
ALLOCATING PAYMENTS BY PURCHASERS OF RETAIL I
SPACE IN THE OLD SCHOOL SQUARE PARKING PROJECT TO
EQUITY OR THE REPAYMENT OF A TAXABLE BANK LINE
OF CREDIT
WHEREAS, the City Commission of the City of Delray Beach, Florida (the "City
Commission"), has authorized the acquisition and construction of the Old School Square Parking
Project (the "Project"); and
I WHEREAS, certain retail space within the Project will be financed with a taxable line of
credit, grants and City revenues; and
WHEREAS, the City intends to sell the retail space to private parties upon the completion
of the Project.
NOW, THEREFORE, be it resolved by the City Commission as follows:
SECTION 1. Proceeds of the sale of the Project retail space are currenrly expected to be
approximately $2,910,000. The City Commission hereby expresses its intent that such sale proceeds
and any other payment or receipt of property treated as private payments with respect to the Project
for purposes of the private security or payment test of section 141(b)(2) of the Internal Revenue
Code of 1986, as amended, are to be allocated to the repayment of the taxable line of credit pursuant
to Treasury Regulation section 1.141-4(c)(3)(iv) and to the reimbursement of the City's equity I
pursuant to Treasury Regulation section 1.141-4(c)(3)(v). The City Commission may amend this
Resolution to reflect revised estimates of costs and sale proceeds.
SECTION 2. This Resolution shall take effect upon the passage in the manner provided by
law.
PASSED AND ADOPTED in 'egum session this \.J~ day of ~ 2005.
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CITY OF DELRAY BEACH, FLORIDA
By: ~l ~
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(SEAL)
ArrEST:
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City Clerk
I The foregoing Resolution is hereby approved
by me as to fo , language and execution, this
~a ,2005.
By:
I
2 Resolution No. 63-05
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MEMORANDUM
To: City Commission
From: David T. Harden, City Manager f)U1
Subject: Resolution No. 63-05
Date: August 19,2005
We have attached Resolution #63-05 for Commission approval. Resolution# 63-05 declares an
allocation of estimated private payments that will be made by purchasers of retail space in the Old
School Square Parking Project. The resolution allows amendments to be made to reflect revised
estimates. Tax law requires that a declaration of the extent of private activity be made within 60
days of the first expense relative to a project.
The Finance Department recommends approval of this resolution. I concur with their
recom mendation.
c: R.S. O'Connor, Treasurer
File: resolution priv rec to commiss.doc
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MEMORANDUM
To: David T. Harden, City Manager
From: ~ Rebecca S. O'Connor, Treasurer
Joseph M. saffo~rector of Finance
Thru:
Subject: Resolution No. 63-05
Date: August 19,2005
Steve Sanford, the City's bond counsel, has provided the attached Resolution# 63-05 with respect
to the Old School Square Parking Project. Resolution # 63-05 declares an allocation of estimated
private payments that will be made by purchasers of retail space in the Project to either equity or
to the repayment of a taxable line of credit. The resolution allows amendments to be made to
reflect revised estimates. Tax law requires that a declaration of the extent of private activity be
made within 60 days of the first expense relative to a project.
The Finance Department recommends approval of this resolution.
c: R.S. O'Connor, Treasurer
File: resolution priv rec to commiss.doc
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RESOLUTION NO.63-05
A RESOLUTION OF THE CITY OF DELRAY BEACH, FLORIDA
ALLOCATING PAYMENTS BY PURCHASERS OF RETAIL
SPACE IN THE OLD SCHOOL SQUARE PARKING PROJECT TO
EQUITY OR THE REPAYMENT OF A TAXABLE BANK LINE OF
CREDIT
WHEREAS, the City Commission of the City of Delray Beach, Florida (the "City
Commission"), has authorized the acquisition and construction of the Old School Square Parking
?roject (the "Project"); and
WHEREAS, certain retail space within the Project will be financed with a taxable line of
credit, grants and City revenues; and
WHEREAS, the City intends to sell the retail space to private parties upon the
completion of the Project.
NOW, THEREFORE, be it resolved by the City Commission as follows:
SECTION 1. Proceeds of the sale of the Project retail space are currently expected to be
approximately between $3,160,000 and $6,760,000. The City Commission hereby expresses its
intent that such sale proceeds and any other payment or receipt of property treated as private
payments with respect to the Project for purposes of the private security or payment test of
section 141 (b )(2) of the Internal Revenue Code of 1986, as amended, are to be allocated to the
repayment of the taxable line of credit pursuant to Treasury Regulation section 1.141-4( c )(3)(iv)
and to the reimbursement of the City's equity pursuant to Treasury Regulation section 1.141-
4(c)(3)(v). The City Commission may amend this Resolution to reflect revised estimates of costs
and sale proceeds.
SECTION 2. This Resolution shall take effect upon the passage in the manner provided
by law.
PASSED AND ADOPTED in regular session this day of ,2005.
CITY OF DELRAY BEACH, FLORIDA
(SEAL)
By:
ATTEST:
City Clerk
The foregoing Resolution is hereby
approved by me as to form, language and
execution, this _day of ,
2005.
By:
City Attorney
AGENDA ITEM NUMBER: '6t
..
AGENDA REQUEST
Date: 7/27/05
Request to be placed on:
X Consent Agenda Special Agenda Workshop Agenda
When: 8/23/05
Description of agenda item: Approve Resolution# 63-05 making a declaration of
an estimated extent of private activity relative to the Old School Square Parking Garage Project.
ORDINANCE/RESOLUTION REQUIRED: X YES NO
Draft of Resolution Attached: X YES NO
Recommendation: Recommend the approval of Resolution# 63-05.
Department Head Signature: ~ ~~
Determination of Consistency with Comprehensive Plan: ""
City Attorney Review/Recommendation (if applicable):
Budget Director Review
(required on all items involving expenditure of funds):
Funding available: n/a Yes ~~G~ No
Funding alternatives (if applicable):
Account Number: n/a
Account Description:
Account Balance:
City Manager Review:
Approved for Agenda: 8 [J/1 No
Hold Until:
Agenda Coordinator Review:
Received:
Action: Approved: Disapproved:
P.O. #
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