12-05-88 v CITY OF ATLANTIC BEACH
SPECIAL CALLED MEETING
MONDAY, DECEMBER 5, 1988, 6:30 PM
AGENDA
1. Call to order
2. Further discussion relative to the proposed financial procedures for
the project known as Fleet Landing
3. Any other business
Adjournment
MINUTES OF THE SPECIAL MEETING OF THE ATLANTIC BEACH CITY
COMMISSION HELD AT CITY HALL ON DECEMBER 5, 1988, AT 6:30 PM
1. Call to order
The meeting was called to order by Mayor Gulliford. Present for the
meeting were Mayor William I Gulliford, Jr. , and Commissioners Robert B.
Cook, Sr., Glenn A. Edwards, Alan C. Jensen, and Adelaide R. Tucker. Also
present were City Attorney Claude Mullis, City Manager Richard Fellows,
City Clerk Maureen King.
2. Further discussion relative to the proposed financial procedures for
the project known as Fleet Landing
The Mayor presented in full, in writing Resolution No. 88-27, A RESOLUTION
AUTHORIZING THE EXECUTION AND DELIVERY OF A LEITER R OF INTENT WITH NAVAL
CONTINUING CARE RETIREMENT FOUNDATION, INC., A FLORIDA NOT-FOR-PROFIT
CORPORATION, WITH RESPECT TO FINANCING THE COST OF THE ACQUISITION,
CONSTRUCTION AND INSTALLATION OF A CONTINUING CARE RETIREMENT FACILITY TO
BE KNOWN AS "FLEET LANDING," TO BE LOCATED IN THE CITY OF ATLANTIC BEACH,
DUVAL COUNTY, FLORIDA, AND TO BE OWNED AND OPERATED BY SAID CORPORATION;
AND THE ISSUANCE AND SALE BY THE CITY OF ATLANTIC BEACH OF ITS VARIABLE
RATE DEMAND REVENUE BONDS, SERIES 1989 (FLEET LANDING PROJECT) , IN AN
AGATE PRINCIPAL AMOUNT NOT EXCEEDING $65,000,000, FOR THE PURPOSE OF
FINANCING THE COST OF SAID PROJECT; ALL PURSUANT TO CHAPTER 159, PART II,
FLORIDA STATUTES, AS AMENDED; PROVIDING AN EFFECTIVE DATE.
The Mayor opened the floor for a public hearing and invited comments from
the audience. Jim Cater of the underwriting firm, Underwood, Neuhaus &
Company, presented each Commissioner with a hand-out and gave a brief
overview of Fleet Landing project, explaining it had been modeled after a
number of similar successful, military retirement communities which had
been financed by his firm. The proposed financing structure is a 30-year
variable rate bond issue in the amount of $62,800,000, guaranteed by a
Letter of Credit covering both principal and interest on the bonds and also
guaranteeing liquidity of the bonds. The Letter of Credit will be provided
by the Commonwealth Bank of Australia in New York, with the Banks of
Scotland in Jacksonville, Florida, Banque Paribas of New York, and Lloyds
Bank of Dallas, Texas, taking participations of the Letter of Credit.
Mr. Cater stated he felt the selection of Atlantic Beach as issuer of the
bonds was appropriate since the project is located in Atlantic Beach, and
Atlantic Beach would be the primary beneficiary of this facility. The
proceeds from the sale of bonds would be used to finance the acquisition,
construction and equipping of the facility, initial operations including
interim loans and payment of funded interest and Letter of Credit fees.
Also included in the hand-out was a history of the variable rate vs. prime
rate for the period 1982 to 1988.
Since no one else wished to speak for or against the Resolution, the Mayor
declared the public hearing closed.
Cb missioner Edwards moved for passage of Resolution No. 88-27.
The motion was seconded by Commissioner Cook.
During discussion Commissioner Cook asked for clarification as to why it
was necessary for the City to be involved with the issuance of the bonds.
It was explained that to qualify for tax exempt status, the project must be
for a health care or low income housing facility and that bonds must be
issued through a governmental entity. The City Attorney further explained
that in addition to the Letter of Credit, there will be a security lien
against the improvements in the property, which would have to be liquidated
for the bonds to be in default as far as non-payment of any principal and
interest.
Mayor Gulliford asked for clarification as to when the bonds would be
considered to be in default. Mr. Chauncey Lever of Foley & Lardner,
responded default would occur when the banks failed to pay the principal
and interest. The banks involved, however, have equity in the billions of
dollars.
Further discussion ensued and Commissioner Edwards inquired into exactly
what the liability is to the City. The City Attorney assured the
Commission there is no financial liability to the City in connection with
the bond financing or the acquisition, construction, installation,
operation or maintenance of the project and he has distributed to each
commissioner a letter from Foley and Lardner to this effect. Also, in the
event this matter is finalized, Mr. Dan Livermore will act as legal advisor
to the City to ensure there is no liability to the City.
Commissioner Jensen inquired as to what benefit the City would derive from
its involvement in such a project. Mr. Ed Vandergriff of Haskell Community
Developers, Inc. , responded the City could expect a clean, high quality
development which would provide one hundred forty jobs, with a payroll of
approximately $2 million. He also stated they felt it would be simpler and
faster to deal with five Commissioners in Atlantic Beach than nineteen
Councilmen in Jacksonville. He felt time was an important factor since
they wished to complete the bond process before any changes affecting the
issuance of tax free bonds could be made by the U.S. Congress.
The questions was called and the notion carried unanimously.
At this time Mayor Gulliford announced that the Commission had not set a
salary for Maureen King who had been appointed to the position of City
Clerk at the previous Commission meeting.
Commissioner Edwards moved to pay the City Clerk a salary of
$24,000.00. The motion was seconded by Commissioner Cook and
carried unanimously.
There being no further business to come before the City Commission, the
meeting was adjourned at 7:12 PM.
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ill? iford
Mayor, Presiding Office
ATTEST:
Maureen King, City Cle