Agenda Item Name:
Title
Bond Resolution for the Sports Events Center
End
Presenter:
Tommy Crosby, Assistant County Manager, 337-6205
Description:
The two attached resolutions are needed now to begin the process of funding the Sports Event Center. The Master Resolution to issue not to exceed $30 Million in bonds to construct the facility, and a Reimbursement Resolution to allow the County to be reimbursed by the bond proceeds for any costs incurred between now and the actual bond issue. Staff will return to the Board to request approval of details/parameters before the Bond closing and Staff will also return to the Board to request specific authorization to prior to incurring any costs between adoption of the Master Resolution and the actual bond closing. In addition, staff is requesting the Board to authorize bond counsel in initiate a bond validation process.
Recommended Action:
Recommended Action
Adopt the two resolutions and authorize bond counsel to initiate the bond validation process.
End
Prior Board Motions:
At the Board's March 23, 2021 Regular Meeting Commissioner Alford moved to direct staff to continue to engage with the development team on the design to maximize the sports events potential of the facility while maintaining the financial pro forma.
The motion carried 5-0.
At the Board's Jan 26, 2021 meeting Commissioner Wheeler moved the following:
1) Authorize the Chair to sign a pre-development agreement consistent with the term sheet not to exceed $1 Million and
2) Authorize staff to work with the Operator to finalize the project development and operations agreements for future Board consideration.
3) The Board will review the plans at the 60% completion point.
2nd
Chestnut
The motion carried 5-0.
At the November 10, 2020 Board Meeting Commissioner Cornell moved to direct staff to negotiate a term sheet for the financing, construction and operation of a Sports Events Center with the most responsive proposer. And 2) bring back the results of negotiations for the Board’s consideration. (5:0)
At the October 15, 2019 Board Meeting Commissioner Byerly moved direct staff to further explore the creation of a Sports Events Center via a partnership with Celebration Pointe Community Development District with the following ordered steps:
1) Determine public funding sources/amounts for the project.
2) Develop architectural designs and construction cost estimates.
3) Conduct a Celebration Pointe parking demand study and determine cost and Funding sources for additional parking stalls.
4) Establish legal parameters for venue funding and ownership.
5) Authorize a Chair letter to the City of Gainesville that provides the economic impacts of the Event Center to the community and request that the City get back to the Board of County Commissioners as soon as they have the necessary information to move forward with the eastern part of the City to move in a parallel path if possible. (5-0.)
At the May 7, 2019 Special Meeting Commissioner Byerly moved the following:
1. That we direct staff to expand Victus Study to include an analysis of the Celebration Pointe Site and include as needed an analysis of the range of Public and/or Private Ownership models and to work with the Celebration Community Development District to come up with those numbers.
2. Direct staff to prepare a business model / operational analysis for all three of the sites we have been considering for public investment; Celebration Pointe,
Cabot Koppers and the MLK Site.
3. Direct Staff to draft an Interlocal Agreement for consideration by the
Commission for investments of Community Redevelopment Agency (CRA) funds and Wild Spaces Public Places funds for the Citizens Field and Cabot
Koppers sites. This should include a timeline for the development.
4. Authorize a Chair Letter to request that the Event Center be a topic of discussion at our Joint Meeting in June with the City of Gainesville.
The motion carried 5-0.
Fiscal Consideration:
Fiscal Consideration
At issuance, the not to exceed $30 million in bonds will obligate three of the five pennies levied by the County’s Tourist Development Tax for the next 30 years. Staff anticipates that 2 pennies will be enough to cover the debt payments, and the 3rd penny is for financing coverage needed by the underwriters. If the 3rd penny is needed in the future, it may impact or eliminate the County’s existing grants programs (i.e., Nature and Culture Destination Enhancement Grants; Local Sports Destination Enhancement Grants; Conference Grants), or the Board could use other non-ad-valorem revenue (i.e., Sales Tax) to cover debt payment needs. Budget & Fiscal Services, the Clerk’s office and our Financial Advisor are working on the best financing structure solution.
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Background:
The Master Bond Resolution authorizes the validation of the proposed Tourist Development Tax revenue bonds for the sports center. After adoption of the Master Bond Resolution, the County’s Bond Counsel will file a complaint in the circuit court to validate the proposed bond issuance. Assuming that the bond validation complaint is not opposed, the bond validation process should take approximately 90-days. If the circuit court issues a favorable ruling, the bond validation will become final after the 30 day appeal period expires, and assuming the judgment of the circuit court is not appealed within the 30 day appeal period. Staff believes that the bond validation process should be far enough along before the Board’s final decision point on the construction of the Sports Events Center, which is expected to be in July 2021.