Item P1
JUN-05-00 16,38 FROM,MONROE COUNTY ATTY OFFICE ID~3052823S1S
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BOARD OF COUNTY COMMISSIONERS
SITTING AS THE INDUSTRIAL DEVELOPMENT AUTHORITY
AGENDA ITEM SUMMARY
Meeting Date: June 14, 2000
Division: County Attornev
Bulk Item:
Yes
No
x
AGENDA ITEM WORDING:
In approving this Resolution the Board is sitting as the Industrial Development
Authority. The Resolution authorizes the issuance of IDA bonds in an aggregate
principal amount not to exceed $1,000,000 to provide Wesley House with funds to
acquire and renovate a social service center. The Resolution further approves the
form of certain reQuired finanCing documents and authorizes the Mayor to execute
certain instruments. Due to the voluminous nature of the IDA Resolution and
Exhibits, the exhibits are not provided in the agenda package but are available for
inspection at the County Administrator's Office or a copy will be provided to any
Commissioner or member of the public reQuesting the same.
ITEM BACKGROUND:
PREVIOUS RELEVANT ROCC ACTION:
The IDA held the federally required public hearing (TEFRA hearing) on May 17,
2000 to discuss the Wesley House bond issue.
STAFF RECOMMENDATION:
Approval.
TOTAL COST:
BUDGETED: Yes
No
Cost to County:
APPROVED BY:
County Attornev X OMB/Purchasing ~ment
DIVISION DIRECTOR APPROVAL ~
DOCUMENTATION:
Included x .
TO Follow _
Not reQUired _
AGENDA ITEM #
j- PI
RESOLUTION
A RESOLUTION OF THE MEMBERS OF THE MONROE
COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY
AUTHORIZING THE ISSUANCE OF THE AUTHORITY'S
INDUSTRIAL DEVELOPMENT REVENUE BOND, SERIES
2000 (WESLEY HOUSE COMMUNITY CENTER, INC.
PROJECT) IN THE AGGREGA TE PRINCIPAL AMOUNT OF
NOT EXCEEDING $1,000,000 FOR THE PURPOSE OF
PROVIDING FUNDS TO MAKE A LOAN TO WESLEY HOUSE
COMMUNITY CENTER, INC. (THE "BORROWER") TO
PROVIDE FUNDS TO FINANCE AND REFINANCE THE COST
OF ACQUISITION, RENOVATION AND RESTORATION OF A
SOCIAL SERVICE CENTER TO BE OWNED AND OPERA TED
BY THE BORROWER AND TO PAY A PORTION OF THE
COSTS OF ISSUING THE BOND; APPROVING THE FORM OF
AND AUTHORIZING THE EXECUTION OF A LOAN
AGREEMENT, A BOND PURCHASE AND CONSTRUCTION
FINANCING AGREEMENT, A MORTGAGE, ASSIGNMENT
OF RENTS AND SECURITY AGREEMENT, AN
ENVIRONMENTAL INDEMNITY AGREEMENT AND AN
ASSIGNMENT OF LOAN AGREEMENT, MORTGAGE,
PROMISSORY NOTE AND OTHER COLLATERAL;
A WARDING THE SALE OF THE BOND BY A NEGOTIATED
SALE; AUTHORIZING OFFICIALS OF THE AUTHORITY TO
TAKE CERTAIN ACTION IN CONNECTION WITH THE
ISSUANCE OF THE BOND; MAKING CERTAIN OTHER
COVENANTS AND AGREEMENTS IN CONNECTION WITH
THE ISSUANCE OF THE BOND; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, Wesley House Community Center, Inc. (the "Borrower") has requested
Monroe County Industrial Development Authority (the "Issuer") to assist the Borrower by the
issuance by the Issuer of its Industrial Development Revenue Bond, Series 2000 (Wesley House
Community Center, Inc. Project) in an aggregate principal amount of not exceeding $1,000,000
(the "Bond ") and the loan of the proceeds of the Bond to the Borrower to provide funds to fInance
and refInance the cost of acquisition, renovation and restoration of a social service center to be
owned and operated by the Borrower and to pay a portion of the costs of issuing the Bond; and
WHEREAS, the Issuer and the Borrower have received a proposal from First Union
National Bank (together with its successors and assigns as registered owner of the Bond, the
"Bank") to purchase the Bond, in the form of a Bond Purchase and Construction Financing
Agreement to be dated the date of issuance of the Bond (the "Bond Purchase Agreement"); and
WHEREAS, it is necessary and desirable to approve the form of and authorize the
execution of a Loan Agreement, a Mortgage, Assignment of Rents and Security Agreement, an
Assignment of Loan Agreement, Mortgage, Promissory Note and Other Collateral, an
Environmental Indemnity Agreement and the Bond Purchase Agreement, and to specify the
interest rate, maturity date, prepayment provisions and other details for the Bond;
NOW, THEREFORE, BE IT RESOLVED BY THE MEMBERS OF THE MONROE
COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY THAT:
SECTION 1. AUTHORITY FOR THIS RESOLUTION. This resolution, hereinafter
called the "Resolution," is adopted pursuant to Parts II and Ill, Chapter 159, Florida Statutes, and
other applicable provisions of law.
SECTION 2. DEFINITIONS. Unless the context otherwise requires, the terms used in
this Resolution in capitalized form and not otherwise defined herein shall have the meanings
specified in the Loan Agreement attached hereto as Exhibit B, in the Mortgage, Assignment of
Rents and Security Agreement attached hereto as J;;xhibit C and/or in the Bond Purchase
Agreement attached hereto as Exhibit D. Words importing singular number shall include the
plural number in each case and vice versa, and words importing persons shall include firms and
corporations.
SECTION 3. INTERPRETATION. Whenever in this Resolution any governmental unit
or body, including the Issuer, or any officer, director, board, department, commission, or agency
of a governmental unit or body is defined or referred to, such definition or reference shall be
deemed to include the governmental unit or body or officer, director, board, department,
commission or agency succeeding to or in whom or which is vested, the functions, rights, powers,
duties and obligations of such governmental unit or body or officer, director, board, department,
commission or agency, as the case may be, encompassed by this Resolution.
Unless the context shall clearly indicate otherwise in this Resolution: (i) references to
sections and other subdivisions, whether by number or letter or otherwise, are to the respective
or corresponding sections and subdivisions of this Resolution; (ii) the terms "herein,"
"hereunder," "hereby," "hereto," hereof," and any similar terms, refer to this Resolution only and
to this Resolution as a whole and not to any particular section or subdivision hereof; and (iii) the
term "heretofore" means before the date of adoption of this Resolution; the word "now" means
at the time of enactment of this Resolution; and the term "hereafter" means after the date of
adoption of this Resolution.
SECTION 4. FINDINGS. Upon consideration of the documents described herein and the
information presented to the Issuer at or prior to the date hereof, it is hereby ascertained,
determined and declared as follows:
A. The Project is appropriate to the needs and circumstances of, and will make a
significant contribution to the economic growth of Monroe County, Florida, will provide and
preserve gainful employment, and will serve a public purpose, consistent with Article VII, Section
lO(c) of the Florida Constitution, by advancing the economic prosperity and the general welfare
of the Issuer, the State, and the people thereof, and in particular, the issuance of the Bonds is in
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the common interest of the people of Monroe County, Florida. As of the date hereof, the Borrower
has represented and shown that it is financially responsible and fully capable of and willing to
fulfill any obligations which it may incur in connection with the financing of the Project as
contemplated by this Resolution. Local government will be able to cope satisfactorily with the
impact of the Project and will be able to provide, or cause to be provided when needed, the public
facilities, including utilities and public services, that will be necessary for the construction,
operation, repair and maintenance of the Project and on account of any increases in population or
other circumstances resulting therefrom.
B. The Issuer hereby fmds that the Loan Agreement makes adequate provision for the
operation, repair and maintenance of the Project at the expense of the Borrower and for the
payment of the principal and interest on the Bond and all other costs incurred by the Issuer in
connection with the Bond and the Project.
C. The Issuer has been advised that due to the desire to coordinate the sale of the Bond
and due to the limited market for tax-exempt obligations such as the Bond, it is in the best interest
of the Borrower to sell the Bond by negotiated sale, and the Issuer, wishing to obtain the best
interest rate on the Bond for the benefit of the Borrower, has determined to sell the Bond by
negotiated sale to the Bank, permitting the Issuer to enter such market at the most advantageous
time, rather than at a specified advertised date, and accordingly it is in the best interest of the
Issuer that a negotiated sale of the Bond be authorized.
SECTION 5. AUTHORIZATION OF BOND. For the purpose of making the Loan to
the Borrower, there is hereby authorized to be issued under this Resolution the Bond in the
aggregate principal amount of not to exceed $1,000,000 and to be designated "Monroe County
Industrial Development Authority Industrial Development Revenue Bond, Series 2000 (Wesley
House Community Center, Inc. Project) (the "Bond"). The Bond shall be issued as a fully
registered Bond, shall be dated as of the date of issuance, shall mature, shall bear interest at the
rate and shall have such other terms and conditions, and shall be in the form of, the Bond attached
hereto as Exhibit A, with such changes, alterations and corrections as may be approved by the
Chair, such approval to be conclusively presumed by the execution thereof by the Chair. The
Bond shall be issued on such date as shall be mutually agreed upon by the Bank, the Borrower and
the Chair. The Bond shall not be issued unless and until the issuance thereof shall have been
approved by the Board of County Commissioners of Monroe County, Florida pursuant to Section
125.01(1)(Z), Florida Statues. The Issuer hereby authorized and directs the Chair to execute the
Bond and to deliver the same to the Bank, upon payment of the purchase price thereof, all as
further provided in the Bond Purchase Agreement.
SECTION 6. BOND REGISTER. The Bond shall be registered as to principal and
interest in the name of First Union National Bank provided that the Bond may be transferred at
the office of the Issuer by surrender of such Bond for cancellation, accompanied by a written
instrument of transfer, in form satisfactory to the Issuer, duly executed by the registered owner
in person or by his duly authorized agent, and thereupon the Issuer will issue and deliver to the
owner thereof at his expense, in the name of the transferee or transferees, a new registered Bond,nhaving the same terms as the Bond so surrendered. Upon any transfer of the Bond the Issuer will
3
keep or cause to be kept a bond register for the registration and transfer of ownership of the Bond,
and, upon presentation for such purpose, the Issuer shall, under such reasonable regulations as it
may prescribe, register or transfer or cause to be registered or transferred such Bond on the bond
register. In every case of a transfer of a Bond, the surrendered Bond shall be canceled by the
Issuer.
SECTION 7. MUTILATED, LOST, STOLEN OR DESTROYED BOND. In case the
Bond shall become mutilated or be lost, stolen or destroyed, the Issuer shall cause to be executed
and furnished to the owner a new Bond in exchange and substitution for, and upon the cancellation
of, the mutilated Bond or in lieu of and substitution for such lost, stolen or destroyed Bond.
In every case the applicant shall furnish evidence satisfactory to the Issuer of the
destruction, theft or loss of such Bond and indemnity satisfactory to the Issuer, and the Issuer shall
charge the applicant for the issuance of such new Bond an amount sufficient to reimburse it for
any expense incurred by it in the issuance thereof.
SECTION 8. PAYMENT OF PRINCIPAL AND INTEREST. The Issuer shall cause to
be paid, when due, the principal of and the interest on the Bond at the place, on the date and in
the manner provided herein and in the Bond according to the true intent and meaning thereof;
provided, that it is understood that the Bond is not a general obligation of the Issuer but is a
limited obligation payable solely from the Loan Payments received from or on behalf of the
Borrower. The Bond shall not be an obligation of the State of Florida or of any political
subdivision thereof, other than the Issuer (limited as aforesaid), and any and all payments of any
nature thereunder shall be payable only from amounts provided for such purpose under the Bond
Documents and not from other funds of the Issuer.
SECTION 9. COVENANT TO PERFORM. The Issuer shall faithfully perform at all
times all of its covenants, undertakings and agreements contained in this Resolution, in the Bond
or in any proceedings of the Issuer pertaining thereto. The Issuer represents that it is duly
authorized under the Constitution and laws of the State of Florida, particularly the Act, to issue
the Bond and to adopt this Resolution, and to assign the Agreement, the Mortgage and the Note
and pledge the revenues, receipts, proceeds and funds derived in respect thereof, in the manner
and to the extent herein set forth as security for the Bond; that all action on its part for the issuance
of the Bond and the adoption of this Resolution has been duly and effectively taken; and that the
Bond will be a valid and enforceable limited obligation of the Issuer according to its terms.
SECTION 10. COVENANT AS TO THE BORROWER. The Issuer covenants that it will
fulfill its obligations, and it authorizes the Bank to require the Borrower to perform the duties and
obligations of the Borrower, under the Agreement, the Mortgage and the Note. The Issuer shall
promptly notify the Bank of any actual or alleged Default of which it has actual knowledge and
shall not execute or agree to any change, amendment, modification or supplement of or to any
Bond Document, except as is provided in the Bond Documents.
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SECTION 11. ENFORCEMENT OF THE AGREEMENT. The Bank may enforce all
obligations of the Borrower, and may exercise all rights (except Unassigned Issuer's Rights) of
the Issuer under the Bond Documents whether or not the Issuer is in default hereunder.
SECTION 12. FURTHER INSTRUMENTS AND ACTIONS. At the request of the
Borrower or the Bank, the Issuer shall execute and deliver such further instruments or take such
further actions as may be reasonably required to carry out the purposes of this Resolution and the
Bond Documents.
SECTION 13. AMENDMENTS. No amendment to this Resolution shall become effective
unless and until the Borrower and the Bank shall have consented thereto in writing.
SECTION 14. EVENTS OF DEFAULT. Each of the following is hereby defmed as and
declared to be and shall constitute an "Default" hereunder:
(a) If payment of any installment of principal or interest on the Bond shall not be made
when the same shall become due and payable prior to the expiration of any applicable cure period;
or
(b) If a Default shall have occurred under the Agreement and such Default shall not
have been waived by the Bank or remedied.
SECTION 15. DECLARATION OF PRINCIPAL AND INTEREST AS DUE. Upon the
occurrence of a Default and at any time thereafter while such Default shall continue, the Bank may
by written notice to the Issuer and the Borrower declare the principal of the Bond, together with
all accrued and unpaid interest thereon, if not already due, to be due and payable immediately, and
upon any such declaration the same shall become and be due and payable immediately, anything
in this Resolution or in the Bond contained to the contrary notwithstanding.
SECTION 16. ACTION BY BANK UPON OCCURRENCE OF DEFAULT. Upon the
occurrence of a Default and at any time thereafter while such default shall continue, then in every
such case the Bank may pursue any available remedy at law or in equity to enforce the payment
of the principal of and interest on the Bond and any covenant or agreement contained in this
Resolution, or to enforce any other legal or equitable right or remedy vested in the holder of the
Bond by this Resolution or by the Agreement or by said laws.
In the enforcement of any remedy under this Resolution the Bank shall be entitled to sue
for, enforce payment of and receive any and all amounts then or during any Default becoming,
and at any time remaining, due from the Issuer and unpaid for principal, interest or otherwise
under any of the provisions of this Resolution or of the Bond, together with any and all costs and
expenses of collection and of all proceedings hereunder and under such Bond, without prejudice
to any other right or remedy of the Bank, and to recover and enforce judgment or decree for any
portion of such amounts remaining unpaid, with interest, costs and expenses, and to collect in any
manner provided by law, the moneys adjudged or decreed to be payable.
5
SECTION 17. DISCHARGE OF BOND. If the Issuer or the Borrower shall pay and
discharge the entire indebtedness on the Bond by fully paying or causing to be paid the principal
of and interest on the Bond, as and when the same become due and payable and if the Issuer or
the Borrower shall also payor provide for the payment of all other sums payable hereunder by the
Issuer or the Borrower, then and in that case this Resolution shall cease, determine and become
null and void as to the Bond.
SECTION 18. LIMITED LIABILITY OF ISSUER. Anything in this Resolution or the
Bond Documents to the contrary notwithstanding, the performance by the Issuer of all duties and
obligations imposed upon it hereby, the exercise by it of all powers granted to it hereunder, the
carrying out of all covenants, agreements and promises made by it hereunder, and the liability of
the Issuer for all warranties and other covenants hereunder, shall be limited solely to the Loan
Payments and other revenues and receipts derived from the Bond Documents, and the Issuer shall
not be required to effectuate any of its duties, obligations, powers or covenants hereunder except
to the extent of such Loan Payments and other revenues and receipts.
SECTION 19. NO PERSONAL LIABILITY. No recourse under or upon any obligation,
covenant or agreement contained in this Resolution, the Bond, any other Bond Document or under
any judgment obtained against the Issuer or Monroe County, Florida (the "County"), or by the
enforcement of any assessment or by legal or equitable proceeding by virtue of any constitution
or statute or otherwise or under any circumstances, under or independent of this Resolution, shall
be had against any member, agent, employee or officer, as such, past, present or future, of the
Issuer or County, either directly or through the Issuer or County, or otherwise, for the payment
for or to the Issuer or County or any receiver thereof, or for or to the holder of the Bond or
otherwise of any sum that may be due and unpaid by the Issuer or County upon the Bond. Any
and all personal liability of every nature, whether at common law or in equity, or by statute or by
constitution or otherwise, of any member or officer, as such, to respond by reason of any act or
omission on his part or otherwise, for the payment for or to the Issuer or County or any receiver
thereof, or for or to the holder of the Bond or otherwise, of any sum that may remain due and
unpaid upon the Bond is hereby expressly waived and released as a condition of and in
consideration for the execution of this Resolution and the issuance of the Bond.
SECTION 20. BOND NOT A DEBT OF STATE OR ISSUER. None of the State of
Florida, the County, any political subdivision thereof, or the Issuer shall in any event be liable for
the payment of the principal of or interest on the Bond, except that the Issuer shall be liable to pay
from the special sources as herein established and provided. The Bond issued hereunder shall
never constitute an indebtedness of the State of Florida or of any political subdivision of the State
of Florida or of the County or Issuer within the meaning of any state constitutional provisions or
statutory limitation and shall never constitute or give rise to the pecuniary liability of the State of
Florida or any political subdivision thereof, the County or of the Issuer or a charge against their
general credit. The holder of the Bond shall not have the right to compel any exercise of the ad
valorem taxing power of the State of Florida or of any political subdivision of said State to pay
the Bond or the interest thereon.
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SECTION 21. LAWS GOVERNING. This Resolution shall be governed exclusively by
the provisions hereof and by the applicable laws of the State of Florida.
SECTION 22. THE BOND DOCUMENTS. The Agreement, the Mortgage, the Bond
Purchase Agreement, the Assignment and the Environmental Indemnity, respectively, in the forms
thereof attached hereto as Exhibits B through F, respectively, with such changes, alterations and
corrections as may be approved by the Chair, such approval to be conclusively presumed by the
execution thereof by the Chair, are hereby approved by the Issuer, and the Issuer hereby
authorizes and directs the Chair to execute such Bond Documents, simultaneous with the issuance
of the Bond, and to deliver the Bond Documents to the Borrower all of the provisions of which,
when executed and delivered by the Issuer as authorized herein, shall be deemed to be a part of
this Resolution as fully and to the same extent as if incorporated verbatim herein. It is not
necessary for the seal of the Issuer to be impressed upon any Bond Document.
SECTION 23. SALE OF BOND: EXECUTION AND DELIVERY OF THE BOND
PURCHASE AGREEMENT. The Bond is hereby awarded to the Bank upon the terms and
conditions set forth in the Bond Purchase Agreement, a copy of which is attached hereto as
Exhibit D. Prior to the execution of the Bond Purchase Agreement the Bank shall file with the
Issuer the disclosure and truth-in-bonding statements required by Section 218.385, Florida
Statutes, and competitive bidding for the Bond is hereby waived.
SECTION 24. NO THIRD PARTY BENEFICIARIES. Except as herein or in the
documents herein mentioned otherwise expressly provided, nothing in this Resolution or in such
documents, express or implied, is intended or shall be construed to confer upon any Person other
than the Issuer, the Bank and the Borrower any right, remedy or claim, legal or equitable, under
and by reason of this Resolution or any provision hereof or of such documents; this Resolution and
such documents being intended to be and being for the sole and exclusive benefit of such parties.
SECTION 25. PREREQUISITES PERFORMED. All acts, conditions and prerequisites
relating to the passage of this Resolution and required by the Constitution or laws of the State of
Florida to happen, exist and be performed precedent to and in the passage hereof have happened,
exist and have been performed as so required.
SECTION 26. GENERAL AUTHORITY. The Chair and the other officers and
employees of the Issuer are hereby authorized to do all acts and things required of them by this
Resolution and the other Bond Documents or desirable or consistent with the requirements hereof
or thereof, for the full punctual and complete performance of all terms, covenants and agreements
contained in the Bond, this Resolution and the other Bond Documents.
SECTION 27. RESOLUTION CONSTITUTES A CONTRACT. The Issuer covenants
and agrees that this Resolution shall constitute a contract between the Issuer and the holders from
time to time of the Bond and that all covenants and agreements set forth herein and in the Bond
Documents and to be performed by the Issuer shall be for the benefit and security of the holder
of the Bond.
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SECTION 28. SEVERABILITY. If anyone or more of the covenants, agreements, or
provisions contained herein or in the Bond shall be held contrary to any express provisions of law
or contrary to the policy of express law, though not expressly prohibited, or against public policy,
or shall for any reason whatsoever be held invalid, then such covenants, agreements, or provisions
shall be null and void and shall be deemed separable from the remaining covenants, agreements,
or provisions hereof and thereof and shall in no way affect the validity of any of the other
provisions of this Resolution or of the Bond.
SECTION 29. COVENANT REGARDING TAX STATUS OF BOND. The Issuer
covenants that it will not knowingly take any action, or knowingly fail to take any action, and will
not fail to take any action reasonably requested by the Bank or the Borrower, and will not take any
action which the Bank or the Borrower reasonably requests it not to take, if any such action or
failure to take action would adversely affect the exclusion from gross income of interest on the
Bond for federal income tax purposes.
SECTION 30. NOTICES. Any notice, request, complaint, demand, communication or
other paper given under or with respect to any Bond Document shall be sufficiently given and shall
be deemed given when delivered or mailed by registered or certified mail to the Notice Address
of the Issuer.
SECTION 31. REPEALER. All resolutions or ordinances or parts thereof of the Issuer
in conflict with the provisions herein contained are, to the extent of any such conflict, hereby
superseded and repealed.
SECTION 32. EFFECTIVE DATE. This Resolution shall take effect immediately upon
its passage and adoption.
SECTION 33. LIMITED APPROVAL. The approval given herein shall not be construed
as (i) an endorsement of the creditworthiness of the Borrower or the financial viability of the
Project, (ii) a recommendation to any prospective purchaser of the Bond, (iii) an evaluation of the
likelihood of the repayment of the debt service on the Bond, or (iv) an approval of any necessary
re-zoning applications nor for any other regulatory permits relating to the Project and the Issuer
shall not be construed by reason of its adoption of this resolution to have made any such
endorsement, fmding or recommendation or to have waived any of the County's or Issuer's rights
or estopping the County or the Issuer from asserting any rights or responsibilities it may have in
that regard.
MONROE COUNTY INDUSTRIAL
DEVELOPMENT AUTHORITY
By:
Chair
Approved as to form and legal sufficiency:
James. T. Hendrick, Authority Attorney
G: \06208\165\resolution(2). wpd
8
EXHmIT A
FORM OF BOND
EXHIBIT B
LOAN AGREEMENT
. -,.~'~,._-_.~-,,_._,.__.,--,_.~--_..~.~
EXHIBIT C
MORTGAGE AND SECURITY AGREEMENT
-"--'""__"~"'_'__'~"d'_",~___"__""",,,___
EXHIBIT D
BOND PURCHASE AGREEMENT
EXHIBIT E
ASSIGNMENT
EXHIBIT F
ENVIRONMENTAL INDEMNITY