AGENDA MEMORANDUM

 

Meeting Date:           December 22, 2008

 

From:                          Jerry Boop, Finance Director, CPA, CGFO

 

Subject:                      Resolution amending City Resolution No. 8349, by granting the holder of the Community Redevelopment Agency for the Carver Heights/Montclair Area Redevelopment Revenue Note, Series 2008 a lien on "Available Revenues" making other changes to article 4 and section 7.1 of said resolution

 

 

Staff Recommendation:

Staff recommends adopting the resolution amending resolution 8349 for inclusions requested by Wachovia Bank.

 

Analysis:

The City has covenanted to leave on deposit with Wachovia a reserve account in the amount of $100,000.  Wachovia Bank, N.A. has requested that Article 4 of the resolution be amended primarily to provide that all holders of the note have a lien on available revenues to secure the City’s commitment to fund from available revenues any deficiencies that may occur in the reserve account for the note.  This amendment provides clarity in replenishing the reserve in the event that the reserve account would need to be used to facilitate payment on the note.

 

Options:

1.  Adopt the resolution amending resolution 8349; or

2.  Such alternative action as the Commission may deem appropriate

 

Fiscal Impact

There is no additional fiscal impact by this resolution.

 

Submission Date and Time:    12/19/2008 3:52 PM____

Department: ___Finance____________

Prepared by:  ___Jerry Boop__________                     

Attachments:         Yes_X__   No ______

Advertised:   ____Not Required ______                     

Dates:   __________________________                     

Attorney Review :       Yes___  No ____

                                                 

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head __JB____

 

Finance  Dept. ____________JB____                                     

                              

Deputy C.M. _______EFS_________                                                                         

Submitted by:

City Manager ___________________

 

Account No. _________________

 

Project No. ___________________

 

WF No. ______________________

 

Budget  ______________________

 

Available _____________________

 

RESOLUTION NO. _______

A RESOLUTION OF THE CITY OF LEESBURG, FLORIDA AMENDING CITY RESOLUTION NO. 8349, BY GRANTING THE HOLDER OF THE COMMUNITY REDEVELOPMENT AGENCY FOR THE CARVER HEIGHTS/MONTCLAIR AREA REDEVELOPMENT REVENUE NOTE, SERIES 2008 A LIEN ON “AVAILABLE REVENUES”; MAKING OTHER CHANGES TO ARTICLE 4 AND SECTION 7.1 OF SAID RESOLUTION AND PROVIDING AN EFFECTIVE DATE.

WHEREAS, pursuant to Resolution No. 8439 (the “Resolution”) adopted on December 8, 2008, the City of Leesburg, Florida (the “City” or the “Issuer”) among other matters covenanted to provide from available Half-Cent Sales Tax Revenues, Guaranteed Entitlement and Public Service Tax amounts required to be deposited to the Reserve Account for the Community Redevelopment Agency for the Carver Heights/Montclair Area Redevelopment Revenue Note, Series 2008 (the “Note”); and

 

WHEREAS, the Resolution provides in Section 7.01(C) thereof that the Resolution may be amended without Noteholders consent to add to the covenants and agreements of the City in the Resolution other covenants and agreements thereafter to be observed by the City; and

 

WHEREAS, Wachovia Bank, N.A. as the intended purchaser of the Note has requested that Article 4 of the Resolution be amended primarily to provide that all Holders of the Note have a lien on Available Revenues to secure the City’s commitment to fund from Available Revenues deficiencies in the Reserve Account for the Note.

 

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AS FOLLOWS:

 

SECTION 1The “WHEREAS” clauses contained hereinabove are true and accurate in all respects and are hereby included as a material part of this Resolution.

SECTION 2.  Article 4 of the Resolution is hereby amended to read as follows:

STANDBY COVENANT TO FUND RESERVE ACCOUNT

 

Pursuant to the Loan Agreement approved pursuant to the Issuer Resolution, on or before February 1 of each year the Secretary of the Issuer or a designee thereof (the “Authorized Issuer Officer”) and the City Finance Director will determine if there are sufficient amounts on deposit in the Issuer’s redevelopment trust fund to make all payments on the Note on the next succeeding May 1 and November 1.  If the Authorized Issuer Officer and the City Finance Director determine that the Issuer has insufficient amounts on deposit in the redevelopment trust fund of the Issuer to make such payments, the Issuer will notify (a “Deficiency Notice”) the City of the amount of such shortfall.  The City hereby agrees to pay to the Issuer from Available Revenues for deposit to the Reserve Account created under the Loan Agreement the amount of the shortfall set forth in the Deficiency Notice but not in excess of the Reserve Account Requirement Such obligation of the City shall be payable from and secured solely by a lien upon Available Revenues.  Any such payment shall be made on a pro rata basis with payments due on the Parity Obligations.

 

SECTION 3.  Section 7.1(E) of the Resolution is hereby amended to read as follows (words underlined are additions and words stricken through are deleted):

(E)(D)  To make any other change that, in the opinion of Note Counsel, would not materially adversely affect the security for the Note. In making such determination, Note Counsel shall not take into consideration any Note Insurance Policy.

 

SECTION 4.  All prior resolutions of the City inconsistent with the provisions of this Resolution are hereby modified, supplemented and amended to conform with the provisions herein contained and, except as so modified, supplemented and amended hereby, shall remain in full force and effect.

SECTION 5.  This Resolution shall become effective immediately upon its adoption.

Adopted this 22nd day of December, 2008.

 

[OFFICIAL SEAL]

 

CITY OF LEESBURG, FLORIDA

 

By:                                                                      

       Mayor

 

 

ATTEST:

 

_________________________

City Clerk

 

 

 

Approved as to Form and Correctness:

 

_________________________

City Attorney