As previously presented, the City entered into a purchase agreement with Sun Coast Motels on October 1, 2024, Inc. for the purchase of the real property located at 7631 US Hwy 19, New Port Richey, with a purchase price of $5,500,000. The subject property is located on the west side of US Highway 19 on the southwesterly bank of the Cotee River and is identified in the Community Redevelopment Plan as one of the community’s most important opportunities for redevelopment. Issuance of a Taxable Non-Ad Valorem Revenue Note, Series 2025B, in the amount not to exceed $5,650,000 will finance the acquisition of said real property.

Additional financing through the issuance of a Tax-Exempt Non-Ad Valorem Revenue Note, Series 2025A, in an amount not to exceed $3,350,000 will be used for costs related to Phase 1 of the redevelopment of Railroad Square, as laid out and set forth in the FY 2024-2029 Capital Improvement Plan.

Will Reed, of Ford & Associates, Inc., the City’s Financial Advisor, will present to the Board the terms and conditions of the Tax-Exempt and Taxable Non-Ad Valorem Revenue Notes.  Duane Draper, of Bryant Miller Olive, City’s Bond Counsel, will present to the Board the details of Resolution No. 2025-15 and the Amended and Restated Interlocal Agreement to be entered into by the City and the Community Redevelopment Agency.

The Interlocal Agreement attached to this memorandum amends and restates a previous interlocal agreement between the CRA and the City.  The Amended and Restated Debt Service Reimbursement Interlocal Agreement re-establishes the CRA’s obligation to repay the City for all costs (present and future) incurred by the City on behalf of the CRA, in connection with the issuance of the Tax-Exempt and Taxable Non-Ad Valorem Revenue Note, Series 2025A and Series 2025B, respectively, in the event tax increment revenues are insufficient.