Staff recommends approval of the Interlocal agreement with the City of Tavares.
Lifestream Behavioral Center of Leesburg wishes to issue $7,000,000 in Capital Improvement Revenue Bonds. The Tax Equity and Fiscal Reform Act of 1982 (TEFRA) limits the amount of debt issued by a conduit issuer to $10,000,000 in a calendar year. The City of Leesburg may be looking at the issuance of Bonds to facilitate work along the highway 27/441 corridor which would negate the ability of the City to act as a conduit user and provide the best possible interest rate to Lifestream.
The City of Leesburg desires to assist Lifestream in obtaining the best possible tax exempt interest rate for their issuance. This Interlocal agreement will provide a bridge between the City of Tavares and Lifestream enabling the City of Tavares to act as the conduit issuer qualifying Lifestream for the lowest level of Bank Qualified (BQ) tax exempt rates. The bonds will be purchased by Bank of America, N.A.
1. Approve Inter-local Agreement with the City of Tavares or
2. Such alternative action as the Commission may deem appropriate
There is no fiscal impact to the City.
Prepared by: ______________________
Attachments: Yes____ No ______
Advertised: ____Not Required ______
Attorney Review : Yes___ No ____
Reviewed by: Dept. Head ________
Finance Dept. __________________
Deputy C.M. ___________________
City Manager ___________________
Account No. _________________
Project No. ___________________
WF No. ______________________
RESOLUTION NO. ___________
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN INTERLOCAL AGREEMENT WITH THE CITY OF TAVARES TO ALLOW THE CITY OF TAVARES TO ACT AS CONDUIT ISSUER FOR THE LIFESTREAM BEHAVIORAL CENTER LEESBURG PROJECT, $7,000,000 INDUSTRIAL DEVELOPMENT REVENUE BONDS, SERIES 2007, PURSUANT TO SECTION 147(F) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Tavares, Florida (the “Issuer”) has considered the request of Lifestream Behavioral Center, Inc., a Florida non profit corporation authorized to transact business in the State of Florida (the "Company") requesting that the Issuer issue not to exceed $7,000,000 of its industrial development revenue bond (the "Bonds") for the purpose of financing the acquisition and construction of a residential treatment facility and to refinance administrative facilities of the Borrower (the “Project”) all of which are and will be located in the City of Leesburg, Florida (the “City”); and
WHEREAS, Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”) provides that in order for interest on bonds like the Bonds to be “tax-exempt” the Bonds must be approved by the applicable elected representative of each governmental unit having jurisdiction over the area in which any facility, with respect to which financing is to be provided from the net proceeds of such issue, is located after a public hearing following reasonable public notice.
WHEREAS, on October 27, 2007 there was published in The Daily Commercial, a newspaper of general circulation in the jurisdiction of the City an Amended Notice of Public Hearing (the “Notice”), which Notice, attached hereto as Exhibit A, notified the public of a hearing to be held by the City on November 13, 2007, to consider the requested approval of the Bonds, the location and nature of the Project to be financed with the Bonds and the other matters set forth in the Notice; and
WHEREAS, the City has on the date hereof, held such public hearing; and
WHEREAS, the City Commission (the "Governing Body") constitutes the elected representative of the City.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Leesburg, Florida as follows:
Section 1. The issuance of the Bonds in the aggregate principal amount of not exceeding $7,000,000 for the benefit of the Company is hereby approved to the extent required by the Code and the Florida Statutes, as follows:
(a) the Project to be financed and refinanced with the proceeds of the Bonds consists of financing the acquisition and construction of a residential treatment facility and the refinancing of administrative facilities of the Company, all as more particularly set forth in the Notice;
(b) the maximum principal amount of the Bonds shall be $7,000,000;
(c) the Company is the initial owner, operator or manager of the Project; and
(d) the location of the Project is all within the City of Leesburg, Florida and is more particularly described in the Notice.
Section 2. Such approval by the Governing Body does not constitute an endorsement to a prospective purchaser of the Bonds of the creditworthiness of the Company or the Project, and the Bonds shall not constitute an indebtedness or obligation of the State of Florida or of any county, municipal corporation or political subdivision thereof but the Bonds shall be limited obligations of the Issuer payable solely from the revenues derived from the Company and pledged to the payment thereof and no owner of any of the Bonds shall ever have the right to compel any exercise of the taxing power of said State or of any county, municipal corporation or political subdivision thereof for the payment of said Bonds.
ADOPTED this 13th day of November, 2007.
CITY OF LEESBURG, FLORIDA
Approved as to form and correctness: