Agenda 07/26/2011 Item #16B27/26/2011 Item 16.13.2.
EXECUTIVE SUMMARY
Recommendation to reject the lone bid received by Regions Bank under Invitation
to Bid (ITB) 11 -5702 which was issued in an attempt to refinance, at the lowest
overall financing cost, the current Bayshore /Gateway Triangle CRA Series 2009
Term Loan and to direct the County Manager or his designee to negotiate more
favorable finance terms with Fifth Third Bank, the current Note Holder, with the
intent to lower the overall debt service cost.
OBJECTIVE: To reject the bid submitted by Regions Bank due to onerous bid
exceptions and to negotiate more favorable financing terms with the current lender,
Fifth Third Bank, with the intent to lower the overall debt service cost with respect to the
financing.
CONSIDERATIONS: The proceeds from the original Term Loan were used solely to
refinance the outstanding portion of the Collier County Community Redevelopment
Agency Taxable Note (Fifth Third Bank), Series 2009 and pay associated costs of
issuance. The Term Loan is the only long term debt the CRA has outstanding. The
Term Loan was structured with monthly principal and interest payments and secured by
CRA tax increment revenues, other CRA operating revenues and land sales from within
the Bayshore /Gateway Triangle (BGT) Community Redevelopment Area. There was no
pledge of Countv revenues related to this Term Loan
ITB 11 -5702 Term Loan for Bayshore /Gateway Triangle CRA was issued on May 6,
2011, with approximately 160 notices sent to vendors. Twenty three (23) vendors
downloaded the specifications, one (1) bid was received was received from Regions
Bank; five (5) "no quotes" were documented. Clarification questions were sent to
Regions Bank following review of their quote; responses received indicated non-
compliance with the County's specifications.
Regions Bank within their ITB submittal required that the County as a bid exception
secure the debt through a covenant to budget and appropriate legally available non -ad
valorem revenues of the County in the event of default or nonpayment by the CRA. This
condition is unacceptable and was clearly identified as such within the ITB criteria. A
further exception proving onerous was Regions Bank requirement to secure $4,500,000
in deposits from the County which included $3,000,000 in general deposits and
$1,500,000 as a debt service reserve.
Therefore, staff recommends rejection of the ITB, and the bid response provided by
Regions Bank. Staff is not planning on re- bidding this ITB. Rather, staff requests Board
authorization to proceed with negotiating, if possible, more favorable financing terms
with the provider of the current Term Loan — Fifth Third Bank - with the intent on
lowering the overall financing costs.
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7/26/2011 Item 16.13.2.
ADVISORY BOARD RECOMMENDATION: The County Finance Committee on May
27, 2011 recommended unanimously that ITB 11- 5702 be rejected due to the onerous
nature of the bid exceptions and further that negotiations with the provider of the Term
Loan — Fifth Third Bank - be initiated in an attempt to obtain more favorable financing
terms.
FISCAL IMPACT: The intent of this action is to pursue more favorable financing terms
on the outstanding Gateway Triangle CRA Term Loan.
GROWTH MANAGEMENT IMPACT: There is no growth management impact in
approving this Executive Summary.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney's
Office, requires majority vote, and is legally sufficient for Board action. — CMG
RECOMMENDATION: That the Board of County Commissioners rejects ITB 11 -5702
Term Loan for Bayshore /Gateway Triangle CRA and the associated quotes that were
submitted and direct the County Manager or his designee to negotiate more favorable
finance terms with Fifth Third Bank — the current provider of the Term Loan with
the intent to lower the overall cost to finance.
PREPARED BY: Mark Isackson, Director of Corporate Finance and Management
Services, County Manager's Office and David Jackson, Executive Director of the
Bayshore Gateway Triangle Community Redevelopment Agency.
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COLLIER COUNTY
Board of County Commissioners
Item Number: 16.13.2.
7/26/2011 Item 16.6.2.
Item Summary: Recommendation to reject the lone bid received by Regions Bank under
Invitation to Bid (ITB) 11 -5702 which was issued in an attempt to refinance, at the lowest
overall financing cost, the current Bays hore /Gateway Triangle CRA Series 2009 Term Loan and
to direct the County Manager or his designee to negotiate more favorable finance terms with
Fifth Third Bank, the current Note Holder, with the intent to lower the overall debt service cost.
Meeting Date: 7/26/2011
Prepared By
Name: BrockMaryJo
Title: Executive Secretary to County Manager, CMO
6/29/2011 12:03:43 PM
Submitted by
Title: Executive Secretary to County Manager, CMO
Name: BrockMaryJo
6/29/2011 12:03:45 PM
Approved By
Name: JacksonDavid
Title: Executive Director, CRA,
Date: 6/29/2011 12:09:30 PM
Name: SheffieldMichael
Title: Manager- Business Operations, CMO
Date: 7 /6/2011 9:50:31 AM
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