THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.
This action supports the Broward County Board of County Commissioners' Value of "Ensuring economic opportunities for Broward’s diverse population and businesses" and Goal to "Increase the economic strength and impact of revenue-generating County enterprises balancing economic, environmental, and community needs."
South Florida Materials Corp. (SFMC), a Florida Corporation, purchased 17 acres of privately owned property and constructed a 1.4 million barrel petroleum terminal within the Port Everglades Jurisdictional Area. On February 5, 2008 (Item No. 20), the Broward County Board of County Commissioners approved a ten-year Bulk Petroleum Product Pipelines License Agreement (License Agreement), allowing for the installation, operation and maintenance of bulk petroleum pipelines on County property within Port Everglades, enabling the new terminal to receive petroleum products transferred through the petroleum berths at the port (see Exhibit 1). Earlier this year, SFMC refinanced this terminal through Branch Banking and Trust Company, a North Carolina banking corporation ("Bank"). SFMC pledged its terminal as collateral for the loan. The License Agreement is an integral component of the commercial activities of the terminal. The Bank and SFMC are requesting that the County consent to and approve the pledge and assignment of the License Agreement (Collateralized Agreement) to the Bank.
The assignment of the Collateralized Agreement is for security purposes only, and the Bank has no rights to enforce the provisions of the Agreement unless and until an event of default has occurred and is continuing under the Loan Documents between SFMC and Bank (a "Financing Default").
The consent and agreement for the collateral assignment of the License Agreement has been reviewed and approved as to form by the Office of the County Attorney.
|