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File #: R-2020-227    Version: 1 Name: Approving CDD Bond Refunding
Type: Resolution Status: Passed
File created: 8/10/2020 In control: Department of Financial Services
On agenda: 9/16/2020 Final action: 9/16/2020
Title: A Resolution Of The City Commission Of The City Of Hollywood, Florida, Authorizing The Hollywood Beach Community Development District I To Issue Its Refunding Bonds, Series 2020, In An Aggregate Principal Amount Not To Exceed $39,990,000.00 For The Purpose Of Refunding All Of The Agency's Outstanding Hollywood Beach Community Development District I Taxable Bonds, Series 2014, Including Making A Deposit To The Series 2020 Debt Service Reserve Fund And Paying Certain Costs Associated With The Issuance Of The Series 2020 Bonds; Approving The Execution By The Appropriate City Officials Of A Guaranty Of Replenishment Of The Series 2020 Debt Service Reserve Fund, And A Disclosure Dissemination Agent Agreement With Digital Assurance Certification, L.L.C.; Providing For Severability.
Attachments: 1. Reso approving CDD Refunding DK-AF-DK (002), 2. guarantymrgrtvllecddrefunding.pdf, 3. City Disclosure Annual DDAA, 4. Exhibit K to Amended and Restated Lease Agreement, 5. Copy of Guaranty from Series 2014 Revenue Bonds, 6. City Disclosure Dissemination Agent Agreement 2014, 7. Copies of CDD Resolutions for Special Assessments and setting Public Hearings on Refunding Bonds, 8. terguarantycddrefunding, 9. terdisclosuredisseminationcddrefunding
Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Authorizing The Hollywood Beach Community Development District I To Issue Its Refunding Bonds, Series 2020, In An Aggregate Principal Amount Not To Exceed $39,990,000.00 For The Purpose Of Refunding All Of The Agency's Outstanding Hollywood Beach Community Development District I Taxable Bonds, Series 2014, Including Making A Deposit To The Series 2020 Debt Service Reserve Fund And Paying Certain Costs Associated With The Issuance Of The Series 2020 Bonds; Approving The Execution By The Appropriate City Officials Of A Guaranty Of Replenishment Of The Series 2020 Debt Service Reserve Fund, And A Disclosure Dissemination Agent Agreement With Digital Assurance Certification, L.L.C.; Providing For Severability.


Strategic Plan Focus
Financial Management & Administration


Body

Staff Recommends: Approval of the Attached Resolution.


Explanation:
The Hollywood Beach Community Development District I ("CDD") desires to refund its outstanding Hollywood Beach Community development District I Taxable Bonds, Series 2014.

Pursuant to Section (D)(6)(a) of Exhibit "K" of the Amended and Restated Lease Agreement between Margaritaville Hollywood Beach Resort, L.P. and the City, the CDD is prohibited from refinancing the bonds or issuing any other bonds or debt instruments without the prior written approval of the City, which may be granted or withheld by the City in its sole discretion.

Furthermore, the Series 2014 Bonds have in place a Guaranty by the City. Exhibit "K" specifies that if the CDD does not generate sufficient revenues on its own through its parking fees and user fees to have sufficient reserves to make its debt service payment that the CDD is to issue a special assessment on the owner to generate sufficient revenue to make its debt service payment. If for any reason the special assessment is not paid, then the CDD will use its Debt Service Reserve Fund ("DSRF") to make the debt ...

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