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Public Hearings 11.
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| BCC Regular Meeting |
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| RECOMMENDATION: |
5:32 p.m. TEFRA Public Hearing concerning Industrial Development Revenue Note (Florida IHMC Project), Series 2013, for the purpose of loaning the proceeds of the Note to the Florida Institute for Human and Machine Cognition, Inc.
Recommendation: That the Board take the following action concerning the issuance, by the County, of a not exceeding $12,000,000 Industrial Development Revenue Bond designated “Industrial Development Revenue Note, Series 2013 (Florida Institute for Human and Machine Cognition, Inc., Project)” (herein, the “Note”), for the purpose of loaning the proceeds of the Note (the “IHMC Loan”) to the Florida Institute for Human and Machine Cognition, Inc. (the “Borrower”), for financing the cost of refunding all of the remaining amount outstanding of the Pensacola-Escambia Commission Promotion and Development Commission Revenue Bonds (Florida Institute for Human and Machine Cognition, Inc., Project), Series 2008, and financing or refinancing the cost of expansion of the existing classroom and construction of a new research facility, in an aggregate size of up to 30,000 square feet, and including landscaping, parking improvements, and related architectural and construction costs, all of which will be located at 40 South Alcaniz Street, in the City of Pensacola, Florida, Escambia County, Florida (collectively, the “Project”):
A. Ratify the scheduling of the 5:32 p.m., Tax Equity and Fiscal Responsibility Act (TEFRA) Public Hearing for consideration of authorizing the issuance of the Note by the County and advertising of the Notice of Public Hearing;
B. Adopt, and authorize the Chairman to execute, the Resolution authorizing the issuance of the Industrial Development Revenue Note, approving the IHMC Loan by the County through purchase of the Note, and approving the Project; and
C. Authorize the Chairman to execute, subject to Legal sign-off, a Memorandum of Agreement with IHMC relating to the security for the Note. |
| BACKGROUND: |
| On June 20, 2013, the Board approved the County funding a loan to the Borrower in a not exceeding amount of $12,000,000 for the purpose of expanding the downtown campus of the Borrower and refinancing the 2008 IHMC Bonds. The proposed Note is to be issued to evidence a loan from the County for the purpose of purchasing the Note. Simultaneously with the execution and delivery of the Note, the County will enter into a Financing Agreement and a Memorandum of Agreement providing for the terms for repayment to the County of the Note by the Borrower.
The project being financed by the Note is a “project” as described in Section 159.27(5), Florida Statutes. The Note is an authorized investment under Section 159.40, Florida Statutes. The Note does not constitute a general obligation or a pledge of the full faith and credit of the County.
The Resolution has been prepared by McGuireWoods LLP, the County’s Bond Counsel, and has been reviewed and approved by staff and by the County’s Financial Advisor, First Southwest.
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| BUDGETARY IMPACT: |
| The IHMC Loan from the County will be structured so that all payments and obligations due from the Borrower to the County on or prior to the related due date of each payment or obligation shall be sufficient, in the aggregate to repay all amounts under the Note.. Costs of the Note will be paid from the proceeds of the Note. The financing of the IHMC Loan and the Note will be secured by the IHMC’s property in accordance with the Memorandum of Agreement.
The IHMC Loan will result in a $12 Million cash investment by the County in the Industrial Development Bond constituting the Note.
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| LEGAL CONSIDERATIONS/SIGN-OFF: |
| Documents drafted in connection with the proposed financing are being distributed to the County staff, including the County Attorney’s office for review, comment and approval as they are prepared. The County Attorney will render her opinion as to legality as a condition of closing. |
| PERSONNEL: |
| The County Attorney’s office will assure that that the Note is secured by the property of the IHMC. |
| POLICY/REQUIREMENT FOR BOARD ACTION: |
| The Project in the community improves the prosperity and welfare of the State of Florida and its inhabitants; improves education, living conditions, and economic development; increases opportunities for gainful employment and otherwise contributes to the welfare of the State and its inhabitants. The project serves a paramount public purpose by providing high-paying jobs, revitalizing a portion of the community redevelopment area of the City of Pensacola and establishing the County as a high-tech center for sponsored research, all of the economic benefits of which far outweigh the costs of the Note. |
| IMPLEMENTATION/COORDINATION: |
| Execution by the authorized officers of the Board of the final closing documents will be required at or prior to the closing of the issuance of the Note and the closing for the IHMC Loan. |
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