Agenda 10/28/2008 Item #14A
Agenda Item No. 14A
October 28, 2008
Page 1 of 5
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EXECUTIVE SUMMARY
Recommendation for the Collier County Community Redevelopment Agency (CRA) to
reject the Wachovia Bank Bid #07-4177 for a $9,000,000 Line of Credit; to give direction to
the Bayshore Gateway Triangle CRA Executive Director to coordinate with all appropriate
entities to secure and structure a new loan from a commercial lender selected via RFP to
purchase certain real property within the Bayshore Gateway Triangle CRA; and to
authorize the Executive Director to negotiate real estate contracts in the CRA area and
return to the CRA Board for approval
OBJECTIVE: For the Collier County Community Redevelopment Agency (CRA) to reject the
Wachovia Bank Bid #07-4177 for a $9,000,000 Line of Credit; to give direction to the Bayshore
Gateway Triangle CRA Executive Director to secure and structure a loan from a commercial
lender selected via RFP to purchase certain real property within the Bayshore Gateway Triangle
CRA; and to authorize the Executive Director to negotiate real estate contracts in the CRA area
and return to the CRA Board for approvaL
BACKGROUND: Florida Statute 163.358 - "Exercise powers in carrying out community
redevelopment and related activities" - gives the CRA power to approve the acquisition of
property, and Florida Statute 163.370 - "Powers; counties and municipalities, community
redevelopment agencies" - delineates other powers necessary to carry out the purchase and sale
- of property.
On July 25, 2006, as a result of a CRA advertised RFP, the CRA Board signed CRA Resolution
2006-197 and the BCC signed Resolution 2006-198 that approved the CRA's $7M Line of
Credit with Wachovia Bank. To date the CRA has drawn $5,901,000 on that line of credit.
On March 27,2007, the CRA and BCC Boards approved a second RFP advertisement for a $9M
line of credit. Wachovia Bank's bid response was accepted by the CRi\ and BCC Boards;
however the final agreement was not executed as a result of a Florida Supreme Court ruling in
the Strand vs Escambia County case (that ruling was reversed by the Court on September 18,
2008).
CONSIDERA TIONS: Due to the length of time since the bank loan bid advertisement and
Wachovia's response, Bid #07-4177 must be formally rejected, and this Board action is
recommended by the CRA and Collier County Purchasing Department statf.
,-
The Community Redevelopment Agency Local Advisory Board continues to have interest in the
proactive redevelopmcnt of Bayshore Drive catalyst project, and the mini-triangle sector of the
Gateway Triangle. The 14 acre tract of land known as the mini-triangle is identified in the CRA
Redevelopment Plan as a potential site for a catalyst redevelopment project - Exhibit A. CRA
acquisition of targeted parcels within the mini-triangle would provide the CRA an opportunity to
be an integral pm1 of any future assemblage of land and potentially leverage public-private
partnerships with adjaccnt land owners. Redevelopmcnt of the mini-triangle will achieve many
of the objectives stated in the CRA Redevelopment Plan.
Agenda Item No. 14A
October 28. 2008
Page 2 of 5
The Bayshore Gateway Triangle CRA Trust Fund has $2.65M in Capital Improvements and
Reserves. If all of the CRA cash were expended on a single site or single project, there would not
be funds available for other projects. However preliminary analvsis by the Collier County
financial consultant indicates that the CRA does have the financial strength in its nF projections
to incur debt greater that the original $7M line of credit.
Based upon discussions, the financial advisor suggests the preferred borrowing vehicle is a new
commercial bank loan procured via invitation to bid or RFP that would refinance the outstanding
amount and allow for additional proceeds, The original line of credit has a balloon payment due
on July 1, 2011; therefore refinancing that loan will provide the CRA with additional borrowing
capacity. The RFP would be written with a not to exceed amount of $20 million. Upon the
receipt of proposals, the CRA and County staff will work with the financial advisor to detennine
the actual borrowing capacity, but in no event exceeding $20 million.
FISCAL IMPACT: Projected CRA tax increment revenues appear sufficient to cover projected
debt service payments on a maximum $20M line of credit draw. A new bank loan would require
a future budget amendment to set up the required debt service reserve and acknowledge draws on
the line of credit. This increased debt financing will require the pledge of CRA tax increment
revenues as the debt repayment source as well as other ministerial language required by statute.
It is envisioned that all enabling documents will be negotiated and prepared for subsequent BCC
and CRA approval assuming the CRA authorizes this action to proceed.
GROWTH MANAGEMENT IMPACT: Policy 4.7 of the Future Land Use Element of the
Growth Management Plan states that redevelopment plans may be developed for specific areas
within the County, including the Bayshore Gateway Triangle CRA..
LEGAL CONSIDERATIONS: None at this time. This agenda item is to receive guidance from
the CR...<\ Board.
RECOMMENDATION: For the Collier County Conmmnity Redevelopment Agency (CRA) to
reject the Wachovia Bank Bid #07-4177 for a $9,000,000 Line of Credit; to give direction to the
Bayshore Gateway Triangle CRA Executive Director to coordinate with all appropriate entities
to secure and structure a new loan from a commercial lender selected via RFP to purchase certain
real property within the Bayshore Gateway Triangle CRA; and to authorize the Executive
Director to negotiate real estate contracts in the CRA area and return to the CRA Board for
approval.
Prepared by David L. Jackson on October 14, 2008
Executive Director, Bayshorc Gatcway Triangle CRA
Page 1 of 1
Agenda Item No. 14A
October 28. 2008
Page 3 of 5
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
Item Summary:
14A
Recommendation for the Collier County Community Redevelopment Agency (CRA) to reject
the Wachovia Bank Bid #07 -4177 for a $9.000,000 Line of Credit; to give direction to the
Bayshore Gateway Triangle CRA Executive Director to coordinate with all appropriate entities
to secure and structure a new loan from a commercial lender selected via RFP to purchase
certain real property within the Bayshore Gateway Triangle CRA and to authorize the
Executive Director to negotiate real estate contracts in the CRA area and return to the CRA
Meeting Date:
Board for approval. !David Jackson, Executive Director. Bayshore Gateway Triangle CRA)
10/28/2008 90000 .AM
Prepared By
David Jackson
Executive Director
Date
Community Redevelopment
Agency
Bayshore-Gateway Redevelopment
10/16/20084:53:36 PM
Approved By
David Jackson
Executive Director
Date
Community Redevelopment
Agency
Bayshore-Gateway Redevelopment
10116/20084:53 PM
Approved By
OMS Coordinator
Applications Analyst
Date
Admin:strative Services
information Te~hnotogy
10/17/2003 8:17 Artll
Approved By
Mark Isackson
Budget Analyst
Date
County Manager's Office
Office of Management & 8udget
10121120085:01 PM
Approved By
JamS's V. Mudd
County Manager
Dare
Board of County
County rv'ianager's Off.ce
10122120089:50 AM
Commissioners
fi le://C :\AQenda Test\Ex00l1\ 115-0ctoberolr)202R. %20200R\ 14. %20A I R POR T%20A I JTH 0 ... 10/22/200R
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Agenda Item No 14A
October 28,2008
Page 4 of 5
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;\genda No. 14A
28. 2008
Page 5 of 5
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