To: Honorable Mayor and Members of Town Council
From: Robert J. Slentz, Town Attorney
Title
Town Attorney's Report: Miller's Landing Business Improvement District Consent and Waiver
Body
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The Miller’s Landing Business Improvement District (BID) and CCD Miller’s Lnding LLC (Developer) have determined that remediation of the landfill will facilitate securing the commitment of the hotel developer and achievement of the “Hotel Milestone” under the Public Finance Agreement (PFA). The PFA is structured such that the Hotel Milestone must be met prior to the issuance of any BID bonds for which the Credit PIF (2.4%) is pledged. Since the Hotel Milestone has not yet been met, the BID and Developer are proposing the issuance of BID bonds (taxable and exempt) for which the Credit PIF is not pledged. Town staff and bond counsel are currently reviewing the terms and details of the proposed financing as required under the PFA.
However, there is a another provision in the PFA which requires that all bonds issues by the PFA are backed by all available revenues, including presumably the Credit PIF. We do not believe that the strict application of that restriction is warranted, as it will likely then result in either deferral of the remediation, and/or the necessity to process a formal amendment to the PFA to be approved by Council ordinance. All parties see the benefit of accelerating the schedule for the remediation.
To resolve this impasse, I am recommending to Council that the attached Consent and Waiver (Attachment A) be executed by the Town Manager and the URA Executive Director. If Council concurs in this recommendation, then a vote to authorize the administrative execution of the Waiver and Consent on behalf of the Town and URA would be in order.
Attachments
Attachment A: Consent and Waiver