Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Authorizing The Extension Of The Line Of Credit Agreement Between The City Of Hollywood, Florida And Wells Fargo Bank, National Association, For An Additional One (1) Year In Order To Maintain The Availability Of A Line Of Credit Facility To Assist The City In Meeting The Costs Of Recovery In The Event Of A Disaster.
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
In 2010, the City Commission determined that, as part of the City's emergency preparedness planning, it is appropriate and necessary to establish a line of credit to provide interim financing, if needed, to meet post-disaster recovery costs in the event of a declared state of emergency. On September 1, 2010, the City Commission approved Resolution R-2010-241 to enter into a Line of Credit Agreement with Well Fargo Bank, N.A. (the "Bank"). The Line of Credit Agreement sets forth the terms and conditions under which the City may make a borrowing in the form of a promissory note in a principal amount not to exceed $10,000,000.00.
Section 14 of the Line of Credit Agreement provides that the Bank and the City may agree to extend the Agreement for additional successive periods, each period not to exceed one year. The Agreement was extended for an additional year in 2011, 2012, 2013, and again in 2014.
In May 2015, the City Commission approved Resolution R-2015-123 authorizing the extension of the Line of Credit Agreement with the Bank for a forth one (1) year period. The current Agreement expires on May 31, 2016.
The City desires to extend the Agreement for an additional one year and the Bank has indicated its willingness to extend the Agreement for an additional year. The Bank is requiring an upfront renewal fee of $35,000.00, and $1,500.00 to cover legal costs to extend the Agreement. In exchange, the Bank will waive the $25,000.00 draw fee required in Section 12 of the Li...
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