Broward County Commission Regular Meeting

A. MOTION TO OPEN Public Hearing as required by Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), relating to the issuance by the Capital Trust Agency (the “CTA”) of not to exceed $40,000,000 aggregate principal amount of the CTA's Senior Living Revenue Bonds (Sawgrass Grand Senior Living Project) from time to time in one or more tax-exempt or taxable series pursuant to a plan of financing (the “Bonds”) for the purpose of financing a project for SGSL Fee Owner LLC, a Florida limited liability company (the “Borrower”) located in the City of Sunrise, Broward County, Florida.

ACTION:  (T-12:20 PM)  No Board Action taken.  (Refer to minutes for full discussion.)

B. MOTION TO ADOPT Resolution No. 2019-241 of the Board of County Commissioners of Broward County, Florida, approving for purposes of Section 147(f) of the Code, Chapter 163, Florida Statutes and Section 159.29, Florida Statutes, the issuance by the CTA of the Bonds in one or more series in an aggregate principal amount not to exceed $40,000,000 for the primary purpose of financing the acquisition, renovation and conversion of an existing facility into a senior living facility known as Sawgrass Grand Senior Living in the City of Sunrise, Broward County, Florida, and providing for an effective date.

ACTION:  (T-12:20 PM)  Approved.  (Scrivener's Error - See County Administrator's Report: Exhibit 1 - INDEMNIFICATION CERTIFICATE OF THE BORROWER, Page 8, Line 3, currently reads: on March 20, 2019....and should read: on March 18, 2019...)   (Refer to minutes for full discussion.)

VOTE: 9-0.  Commissioner Geller voted in the affirmative telephonically.    

Motions A and B: The federal Tax Equity and Fiscal Responsibility Act (known as “TEFRA”) and U.S. Treasury Regulations promulgated thereunder concerning tax-exempt private activity bonds require a public hearing and adoption of a TEFRA Resolution (as defined below) by the Board of County Commissioners prior to the issuance of tax-exempt bonds. In addition, Chapter 163 of the Florida Statutes, the Florida law authorizing the creation of the CTA, allows Florida governmental entities to work together in connection with the issuance of bonds.

Motions A and B: Ensure compliance with TEFRA and U.S. Treasury Regulations promulgated thereunder, and with Chapter 163, Florida Statutes, and Section 159.29, Florida Statutes, by providing for a public hearing and adoption of a TEFRA Resolution by the Board prior to the issuance of the Bonds.

None.

THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTIONS.

The Borrower has requested that the Board hold the public hearing described herein (the “TEFRA Hearing”) and adopt the Resolution described herein (the “TEFRA Resolution”) for the purpose of, and as required by, Section 147(f) of the Code, Chapter 163, Florida Statutes, and Section 159.29, Florida Statutes, with respect to the issuance by the CTA of the above described Bonds, in an amount not to exceed $40,000,000 from time to time in one or more tax-exempt or taxable series pursuant to a plan of financing. The proceeds of the Bonds will be loaned by the CTA to the Borrower, and used by the Borrower to pay the costs of (a) the acquisition, renovation, conversion, furnishing and equipping, together with the acquisition and installation of related facilities, fixtures, furnishings and equipment, of an existing facility into a senior living facility known as Sawgrass Grand Senior Living, located at 3003 North University Drive, Sunrise, Florida, and consisting of approximately 194 senior living units (including approximately 167 assisted living units and 27 memory care units) (collectively, the "Facility"), within the territorial limits of Broward County, Florida; (b) funding any necessary reserves; (c) funding any necessary capitalized interest for the Bonds; (d) funding one or more debt service reserve funds for the Bonds; and (e) paying certain costs of issuing the Bonds (the purposes described in clauses (a) through (e) are hereinafter collectively referred to as the "Project").

Pursuant to Section 147(f) of the Code, the issuance of the Bonds by the CTA must be approved by the Board because the Project is located within the territorial limits of Broward County. In addition, Chapter 163, Florida Statutes, and Section 159.29, Florida Statutes, encourage governmental entities to cooperate when bonds are issued by one governmental entity to finance a project located within the territorial limits of another governmental entity. Motions A and B provide for the TEFRA Hearing and adoption of the TEFRA Resolution in accordance with Section 147(f) of the Code, Chapter 163, Florida Statutes, and Section 159.29, Florida Statutes.

The TEFRA Hearing was properly noticed as evidenced by the Proof of Publication attached as Exhibit 2. Exhibit 3 is a public hearing “script,” which must be read into the official record prior to the commencement of the TEFRA Hearing. Exhibit 4 is a letter from the CTA further describing the transaction. The Bonds are expected to be issued by the CTA in April of 2019.

George Tablack, Chief Financial Officer, (954) 357-7130

Stephen Farmer, Finance Manager, Finance and Administrative Services Department, (954) 357-7246