THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
On October 10, 2005, the Board authorized a loan of up to $8,500,000 from the First Florida Governmental Financing Commission ("Commission") for the purpose of partially refunding a prior loan (Series 2000B bonds) made by the Commission to the County. The Series 2005B Bonds were issued in the par amount of $7,470,000. The 2005B bond issue refinanced a portion of the outstanding First Florida Governmental Financing Commission Taxable Series 2000B Bonds, which were issued in part to refund the Commercial Paper that was initially utilized to fund the completion costs of the Civic Arena, now the BB&T Center. The Florida Panthers have paid the debt service for these bonds since inception as obligated through its Operating Agreement with Broward County.
The Commission is required by its Interlocal Agreement to remain in existence until all bonds of the Commission and obligations of any participating governmental unit issued under its financing program are retired. Further, the Commission may not dissolve itself with less than a total of three remaining members.
Broward County, the City of Hollywood, and the City of St. Petersburg, represent the three remaining members of the Commission. Due to sustained and fundamental changes in the capital markets, including but not limited to the disappearance of triple-A rated municipal bond insurers, the public finance industry, and the financing needs of its members, the three remaining members of the Commission determined that it was in its best interest to dissolve.
Accordingly, on February 3, 2017, the three remaining members approved a Resolution providing for the dissolution of the Commission and agreed to use their best efforts to independently redeem or purchase their outstanding loan obligations in the most efficient and economical manner possible.
As the City of St. Petersburg has no loans outstanding and the final maturity date for the City of Hollywood bonds is September 30, 2018, Broward County's Series 2005B Bonds must be paid off or refunded so the Commission can dissolve. The Resolution to dissolve the Commission is being submitted for Board approval concurrently in a separate item.
The County issued an RLI for a private placement bank loan for the refinancing of the debt. Nine firms responded to the solicitation from which BB&T was selected. Exhibit 2 is the recommendation memo from the County's Financial Advisor in this matter, Stifel, Nicolaus & Company, Incorporated.
The Series 2018 Refunding Bonds will refund all of the Series 2005B Bonds (currently outstanding in the principal amount of $5,055,000) and pay the costs of issuance related to the Series 2018 Bonds. The Florida Panthers will continue to pay the debt service on the Series 2018 Refunding Bonds pursuant to the Operating Agreement between the Florida Panthers and Broward County, which will be amended to reflect this refunding.
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