Title
Resolution authorizing the negotiation of two loans in an aggregate principal amount not to exceed $6,200,000 from the Sunshine State Governmental Financing Commission for the purpose of acquiring, constructing and erecting certain capital improvements; approving the execution and delivery of a loan agreement(s); providing for the repayment of such loan from certain legally available non-ad valorem revenues of the City of Coral Gables, Florida; delegating to the Mayor the authority to determine the final terms of the loan(s); providing certain other matters in connection with the making of such loan; and providing an effective date.
Body
The first loan is for the principal amount of $2,635,000 to finance the cost to dredge the Coral Gables Waterway (C3 Canal). This loan will be amortized over a period of ten (10) years at a fixed annual interest rate of 3.98% with an annual principal and semi-annual interest payment of $325,456. The total estimated cost to dredge the Coral Gables Waterway is $4,810,000. This project will be funded with an approved State grant of $2,200,000 and the net loan proceeds of $2,610,000 (after closing cost of $25,000) from the Sunshine State Governmental Financing Commission.
The second loan is for the principal amount of $3,525,000 to finance a portion of the $5.9 million construction cost for the Coral Gables Museum Building renovation. This loan will be amortized over a period of ten (10) years at a fixed annual interest rate of 3.98% with an annual principal and semi-annual interest payment of $436,074. This is a bridge loan to fund the cost of construction in advance of the receipt of donations and other funds.
The total outstanding debt of the City for 2009-2010 will be $64,827,472 including these two new loans in the principal amount of $6,160,000. The total annual principal and interest debt service of $6,947,811 represents 5% of the total operating and debt service budget.