R18-111 1 RESOLUTION NO. R18-111
2
3 A RESOLUTION OF THE CITY OF BOYNTON BEACH,
4 FLORIDA, AUTHORIZING THE CITY MANAGER OR
5 DESIGNEE TO SIGN ANY DOCUMENTS RELATED TO
6 SECURING A LOAN FROM DOUGHERTY FUNDING
7 LLC., TO PROVIDE FUNDS TO FINISH THE
8 RENOVATION OF THE HIGH SCHOOL FOR AN
9 ESTIMATED LOAN AMOUNT OF $6.85M; PROVIDING
10 AN EFFECTIVE DATE.
11
12
13 WHEREAS, as part of the Town Square redevelopment,the City began renovating the
14 High School in FY 16/17 with an estimated cost of$11M; and
15
16 WHEREAS, the renovation began with $3M dollars of funding and the intent to
17 secure New Market Tax Credits of approximately $2.5M and secure a loan for the balance of
18 $5.5M ($11M-$3M-$2.5m); and
19
20 WHEREAS, repayment of the loan would come from the City's capital program that
21 is funded by the recent sales tax increase in the County that is to be used for deferred
22 maintenance and infrastructure needs and from CRA funding; and
23
24 WHEREAS, as staff learned more about the New Market Tax Credits as far as the
25 availability, timing and what was required to be established and maintained if the tax credits
26 were secured, it became apparent that the tax credits were not going to be a preferred source
27 of funding for this project; and
28
29 WHEREAS, the City and Developer (E2L) has worked with Dougherty Financial in
30 Minnesota as part of the Town Square Project in connection with CFP issuing the bonds for
31 the municipal improvements in Town Square; and
32
33 WHEREAS, Doughtery Funding has provided the City with a proposal for a three (3)
34 year loan in the amount of approximately $6.85M to provide the needed funding to finish the
35 high school renovations.
36
37 NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF
38 THE CITY OF BOYNTON BEACH, FLORIDA, THAT:
39 Section 1. The foregoing "Whereas" clauses are hereby ratified and confirmed as being
40 true and correct and are hereby made a specific part of this Resolution upon adoption hereof.
41
42 Section 2. The City Manager or designee is authorized to sign any documents
43 related to securing a loan from Dougherty Funding LLC., to provide funds to finish the
44 renovation of the High School for an estimated loan amount of$6.85M.
C:\Users\Stanzionet\Appdata\Local\Microsoft\Windows\Temporary Internet Files\Content.IE5\SATNOEVN\Dougherty_Funding_-
_Reso.Docx
45 Section 3. That this Resolution shall become effective immediately upon passage.
46 PASSED AND ADOPTED this 7th day of August, 2018.
47 CITY OF BOYNTON BEACH, FLORIDA
48
49 YES NO
50
51 Mayor— Steven B. Grant
52
53 Vice Mayor—Christina L. Romelus
54
55 Commissioner—Mack McCray
56
57 Commissioner—Justin Katz
58
59 Commissioner—Joe Casello
60
61
62 VOTE S-
63
64 ATTEST:
65
66
*-64 6'
68 Judit 1A . Pyle, CM j
69 City erk
70
71
72
73 (Corporate Seal)
74
DOUGHERTY FUNDING LLC
DRAFT
For discussion purposes only
July 24, 2018
Mr.Tim Howard
Assistant City Manager
City of Boynton Beach
100 E.Boynton Beach Blvd.
Boynton Beach, FL 33435
RE: $6,850,000 TERM LOAN
CITY OF BOYNTON BEACH,FL
Dear Mr.Howard,
Dougherty Funding LLC ("DF" or"Lender") is interested in pursuing with you a Term Loan to
be used to complete the rehabilitation of the high school in Boynton Beach, FL. Based upon the
information you provided to DF,we have outlined below the Loan we would propose to provide
for this transaction. This proposal is preliminary and should not be construed as a commitment
to make the Loan. This proposal is subject to further due diligence by DF and must be approved
by the DF loan committee. Any commitment of DF to make the Loan will only be made in
writing.
Proposed Financing Terms
Loan Amount: The Loan Amount will be $6,850,000. The Loan will be fully
funded at closing and held by DF. Funds will be advanced to the
Borrower as costs are incurred.
The Loan will include an Interest Reserve in the amount of
$337,000 which will be used to pay interest on the Loan during the
first 12 months of the Loan Term.
Loan Term: The Loan will mature on September 30,2021.
Interest Rate: The Interest Rate will be fixed at 4.85% during the Loan Term.
Interest will be calculated based on the actual number of days in a
360-day year.
90 Socmi SEVENTH Smsrr• SUITE 4300•MINNEAPOLIS,MINNESOTA 55402-4108
612.3172000• 800.227-0786
Mr.Howard
July 24,2018
Page 2
Amortization/Repayment: The Loan will be payable monthly on an interest-only basis during
the Loan Term with additional payments principal in the amounts
of$2,500,000 due on September 30, 2019 and $2,500,000 due on
September 30, 2020. The outstanding principal balance and all
other amounts due and owing will be due on the maturity date.
Prepayment Provisions: The Loan will be pre-payable in whole during the first 12 months
accompanied by a prepayment premium of the interest that would
have been earned during that period had the Loan remained
outstanding. Thereafter, the Loan will be pre-payable at any time
without premium. The Borrower must provide no less than 5 days
written notice to DF.
Purpose: Loan proceeds will be used to pay for certain development costs
incurred by the Borrower in connection with the rehabilitation of
the high school in the Town Square Redevelopment in Boynton
Beach,FL.
Borrower: The City of Boynton Beach,FL.
Loan Structure: The Loan will be structured as a full-recourse general obligation of
the Borrower in a form acceptable to DF.
Loan Fee: A Loan fee of $102,750 (1.50% of the Loan Amount) will be
earned and payable by Borrower to DF at the earlier of Loan
closing or expiration of a Loan commitment.
Expenses: The Borrower will be responsible for payment of all costs incurred
by DF in connection with the Loan including, but not limited to the
following:
• Legal fees
• Other miscellaneous out-of-pocket expenses (travel,
printing,credit reports,etc.)
We believe this proposal represents the significant issues relative to the proposed financing.
Upon receipt of a signed copy of this letter,DF will immediately begin preparation of a detailed
loan application.
DOUGHERTY FUNDING LLC
90 SOUTH SEVENTH STREET• SUITE 4300 •MINNEAPOLIS,MINNESOTA 55402
(612)376-4000 PHONE• (612)317-2045 FAx