| | | | | | | |  |  | 5919 MAIN STREET . NEW PORT RICHEY, FL 34652 . 727.853.1016 |
| TO: | City of New Port Richey City Council | | FROM: | Crystal Dunn, Finance Director | | DATE: | 12/20/2022 | | RE: | Resolution No. 2023-05: Authorizing Resolution and Interlocal Agreement |
REQUEST:
The City Council is asked to review and authorize Resolution No. 2023-05, which authorizes the following:
- Issuance of Taxable Non-Ad Valorem Revenue Note, Series 2022, in the amount not to exceed $3,000,000 to finance the costs of acquisition, construction, and/or equipping of various capital improvements, within the Redevelopment area of the City of New Port Richey, FL.
- Approval of the form and execution of the Amended and Restated Debt Service Reimbursement Interlocal Agreement between the City of New Port Richey, FL and the City of New Port Richey, FL Community Redevelopment Agency.
DISCUSSION:
On October 19, 2022, the City entered into a purchase agreement with Lemonade MM New Port Richey LLC for the purchase of the real property located at 6128 US Hwy 19, New Port Richey, with a purchase price of $2,800,000. It is in the continued best interest of the redevelopment of the southeast quadrant of U.S. Highway 19 and Main Street to purchase the former SunTrust building.
Jon Ford, of Ford & Associates, Inc. (City’s Financial Advisor) will present to the Board the terms and conditions of the Taxable Non-Ad Valorem Revenue Note, Resolution 2023-05. Chris Roe, of Bryant Miller Olive (City’s Bond Counsel) will present to the Board the details of the Amended and Restated Debt Service Reimbursement Interlocal Agreement to be entered into by the City and the Community Redevelopment Agency.
The Interlocal Agreement attached to this memorandum amends and restates 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 Taxable Non-Ad Valorem Revenue Note, Series 2022, in the event tax increment revenues are insufficient.
RECOMMENDATION:
It is recommended that the City Council approve Resolution No. 2023-05 and accompanying Amended and Restated Interlocal Agreement with the Community Redevelopment Agency.
BUDGET/FISCAL IMPACT:
Any future costs pertaining to this transaction will be paid from the proceeds of the Revenue Note. Future debt service payments will be budgeted for accordingly.
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