| | MANAGER'S REPORT:
This ordinance would repeal and replace Ordinance 2012-28, adopted August 27, 2012, which authorized the issuance of $29 million in Port Revenue bonds. The dollar amount of bonds authorized is not being changed, at this time. We will be selling $6.5 million in bonds for the Seawalk in February 2014 so it is necessary to amend the ordinance to address the following issues: 1. The bonds will be sold in up to 3 issues, to match the project schedule, versus all at once. 2. The bond proceeds are intended to fund 2 projects: 1) Cruise Ship Dock Enhancement & Related Uplands and 2) Additional Seawalk following the Waterfront Development Plan. 3. The Dock project is considered a “Private Activity” project. Meaning there are payments (revenues) from private business, for the use of the dock, available to pay back some of the bonds. Bonds issued under this situation are not tax exempt and carry a slightly higher interest rate. 4. The Seawalk project is considered a “Governmental Project” and the bonds are tax exempt. 5. Section 9 provides for delegating the adoption of interest rates contained in the eventual interest rate resolution. The resolution would still go through the standard Assembly process. 6. The term of the bonds is extended to 25 years.
The debt service will be paid from local port development fees. The estimated total cost of the debt service, including interest at an average rate of 4.52%, for the 25-year bonds is $49.6 million. | |