Item V (A)- Disscussion re: Construction of City Hall/Police Department AGENDA 2-1991
"CENTER OF GOOD LIVING-PRIDE OF WEST ORANGE" Item V A
\ Ocoee LESTER DABBS,JR.
1K._
• Q ° CITY OF OCOEE 41) Rus Y SIxiNsoN
G150 N.LAKESHORE DRIVEOCOEE FLORIDA 34761 PAUL W.FOSTER
(407)656-2322 VERN COMBS
�, SAM WOODSON
f+ Or GOOD ��,` CITY MANAGER
ELLIS SHAPIRO
MEMORANDUM
TO: The Honorable Mayor and Board of City Commissioners
FROM: Ellis Shapiro, City Manager
DATE: February 15 , 1991
RE: POLICE BUILDING AND CITY HALL EXPANSION PROGRAMS
As the City of Ocoee continues to grow, it has become apparent
to the City Commission that the current 3 , 200 sq. ft. Police
Department and the 4 , 000 sq. ft. City Hall can no longer provide
efficient operations due to lack of space.
Several months ago, the City Commission asked the administration
to study the problem and recommend a solution to our dilemma.
While several other sites were offered to the City for a new City
Hall building , the two major sites studied in detail were: ( 1 )
our current municipal complex area, and ( 2 ) Piggly Wiggly
Shopping Area. In all cases , we were to consider these sites as
space needed through at least the turn of the century or more.
The municipal complex offered us 3 major benefits :
1 . The historical center of the City and of City government in
Ocoee;
2 . The beauty of the site off of Starke Lake, including the
space to build the necessary structures ; and
3 . Minor building renovations .
The Piggly Wiggly has the following benefits:
1 . In a tremendous location for roads including the proposed
beltway;
2 . City would buy approximately 10 acres of land with high
potential value;
3 . Not only would we have a City Hall , but would be doing some
good economic redevelopment in the City.
Page Two
February 15, 1991
As stated earlier, each site was looked at with space needs for
the next 10-20 years . Attached you will see the Cost Estimate
for new construction of 36,000 sq. ft . at Starke Lake along with
4 ,000 sq. ft. of remodeling .
Purchase Costs 0
Schedule "A" Building Estimate
( 40, 000 sq. ft. ) 4 , 600 , 000
TOTAL: X4 , 600 , 000
Average Yearly Debt Service: $ 433 ,000
Per Square Foot Cost: $115 .00
In the case of the Piggly Wiggly site the following numbers are
given to you for review:
Purchase Costs $1 , 650 ,000
Schedule "B" Building Estimate
( 25, 000 square feet ) 2 , 500 , 000
TOTAL: $4 , 150 , 000
Average Yearly Debt Service: 400,000
Less: Annual Rental Income 82, 710
$ 317 , 290
Cost Per Square Foot $166 .00
On the basis of the above study, it is our opinion that City Hall
should remain at Starke Lake .
Schedule "C" attached shows the work-up for the Police Building
needs for the next 10-20 years . As you can see, total costs are
$1,930,000.
If you take the cost of 40, 000 sq. ft . City Hall and an 18, 800
sq. ft . Police Building , the debt service would be as follows:
City Hall 40,000 sq. ft. $4 , 600 , 000
Police Building 18 , 800 sq. ft . 1 ,930 , 000
Total Cost $6 , 530 ,000
Yearly Debt Service $633 , 000/year
Page Three
February 15, 1991
While there is no doubt that we will need the square footage
shown above, there is no way that our current growth revenue
would support this type of debt service. Under current tax
valuations, we would have to obligate an additional 2 mils of
taxes yearly to afford these buildings . Unless you feel that the
residents of Ocoee would support a G.O.B. bond issue of this
magnitude, I believe we must build what we can afford .
The staff recommends that plans for a 3 story building be
prepared, but only the first 12 , 000 square feet be built . The
additional space would suffice for at least 3-5 years by which
time our community ' s tax base could support further expansion .
(See Schedule "D" )
Schedule "E" shows the same process being used with the Police
Building, instead of 18 , 000 sq. ft . , 11 , 000 sq. ft . would be
built . This is enough building to again wait for further growth
in our tax base .
The cost breakdown would be as follows:
16, 000 sq. ft . City Hall to include:
All costs of Schedule "D" $1 , 500 , 000
10, 000 sq. ft . of Police Building 900,000
to include all costs of Schedule "E"
Total: $2, 400, 000
On Tuesday night, William R. Hough & Co. will be present to
discuss the funding mechanism that we propose to finance this
project . We found that no banks could extend the loan for enough
years to support an affordable debt service.
The attached Executive Summary from Hough & Co. and their
attached debt service schedule will explain the funding
mechanisms and costs .
As you can see, the total debt service for both projects is
approximately $250, 000/year. The Police impact fee is
approxmately $50-60 , 000/year currently . We would recommend that
it be used in its entirety to fund the Police Building . The
remaining portion of debt services can easily be made up of
growth revenue that we currently enjoy today .
Both Craig Hunter or I will be available at the meeting to
discuss this plan. Under this scenario our current taxpayers
would pay no more than their current tax burden yet City Hall and
the Police Building would be built in stages and as needed over
the next decade .
Page Four
February 15, 1991
Finally, a time schedule for financing is also included in this
report . If you concur with our recommendation, funds could be
available by mid-April and construction could conceivably begin
by late summer, early fall .
Respectfully Submitted,
E S :f dg ,
Attachments
City Hall Cost Estimate
'ew three story structure at 12,000 square ;feet per floor, plus
renovation of.existing 4,000 square foot building All ite
development costs charged to City Ha11, none to Police Department.
Parking Lot $60,000
Drainage $40,000
Retention Pond $20,000
New Building (3 story) 36000 sq ft @ $85 $3,060,000
Renovate Exist. Bldg. 4000 sq ft @ $65 $260,000
Elevator $100,000
Communication System $100,000
Subtotal $3,640,000
Landscaping (5%) $182,000
Subtotal $3,822,000
Architect (8%) $305,760
Subtotal $4,127,760
Contingency (10%) $412,776
TOTAL $4,540,536
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
SAY: $4,600,000;
Cost per square foot : $115
cityhall
Shopping Center Cost Estimate
Renovation of 18,000 square foot Piggly Wiggly building, plus
renovation of adjacent 7,000 square foot Dollar General building
Parking Lot $140,000
Drainage $50,000
Renovate Piggly Wiggly 18000 sq ft @ $65 $1 ,170,000
Renovate Dollar General 7000 sq ft @ $65 $455,000
New Facade $100,000
Subtotal $1 ,915,000
Landscaping (5%) $95,750
Subtotal $2,010,750
Architect (8%) $160,860
Subtotal $2,171 ,610
Contingency (10%) $217,161
TOTAL $2,388,771
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
SAY: $2,500,000
Cost per square foot : $100
- Police Dept . Cost Estimate
Neer twc sto structure at 7,$00 s i re f et r kloor, plus
renovatio of ex�stin 3,2011 urs root buildin All ite
development ;costs charged to City Hall project
Parking Lot (N/A) $0
Drainage (N/A) $0
Retention Pond (N/A) $0
New Building (2 story) 15600 sq ft @ $85 $1 ,326,000
Renovate Exist. Bldg. 3200 sq ft @ $65 $208,000
Subtotal $1 ,534,000
Landscaping (5%) $76,700
Subtotal $1 ,610,700
Architect (8%) $128,856
Subtotal $1 ,739,556
Contingency (10%) $173,956
TOTAL $1 ,913,512
SAY: $1,930,000
Cost per square foot : $103
police2
,D —
City
City Hall Cost Estimate
,000s Hare foot one stor structtxr , lus r nov tion
y"
of existxn4,000 s ware foot;buildin All site development
costs char ed to Cit Hall, none to Police De a�rt�m.ent
Furnishings deleted or:iredu ed
Parking Lot $60,000
Drainage $40,000
Retention Pond $20,000
New Building (1 story) 12000 sq ft @ $65 $780,000
Renovate Exist. Bldg. 4000 sq ft @ $45 $180,000
Elevator (N/A) $0
Communication System $100,000
Subtotal $1 ,180,000
Landscaping (5%) $59,000
Subtotal $1 ,239,000
Architect (8%) $99,120
Subtotal $1 ,338,120
Contingency (10%) $133,812
TOTAL $1 ,471 ,932
.................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
SAY: $x ,500,000
Cost per square foot : $94
cityhal2
g/".
Police Dept . Cost Estimate
Nem ?, 00 s�qualre foot o e story structure, pi s renovation ►
existing 3,200 square foot building All site development costs
charged to City Hail project. Furnishings deleted or reduced
Parking Lot (N/A) $0
Drainage (N/A) $0
Retention Pond (N/A) $0
New Building (1 story) 7800 sq ft @ $65 $507,000
Renovate Exist. Bldg. 3200 sq ft @ $45 $144,000
Subtotal $651 ,000
Landscaping (5%) $32,550
Subtotal $683,550
Architect (8%) $54,684
Subtotal $738,234
Contingency (10%) $73,823
TOTAL $812,057
..................................................
..................................................
..................................................
.................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
..................................................
SAY: $900,000;
Cost per square foot : $82
policel
"CENTER OF GOOD LIVING-PRIDE OF WEST ORANGE" MAYOR•COMMISSIONER
` Ocoee LESTER DABBS,JR.
• CITY OF OCOEE I
RUM'JOHNSON
a 150 N.LAKESHORE DRIVE
C. O 0 OCOEE FLORIDA 34761 PAUL W.FOSTER
(407)656,2322 VERN COMBS
e SAM WOODSON
,f* �‘,
Of 0000 \ CITY MANAGER
ELLIS SHAPIRO
MEMORANDUM
TO: Ellis Shapiro, City Manager
FROM: Ivan Poston, Finance Directo
SUB: Cost of Funding Piggly Wiggley Shopping Center
DATE: February 15 , 1991
The following is the net debt service cost if the City
purchased and renovated the Piggly Wiggley Shopping Center :
Cost of Property = $ 1 , 650, 000
Cost of Renovations = 2 , 500, 000
Total Cost = $ 4, 150, 000
Annual Cost of Debt Service-20 Years = $ 400, 000
Less : Annual Rental Income = ( 82 , 710)
Net Annual Debt Service = $ 317 , 290
0..14.91 15:17 $
-3.4-4 CITY OF OCOEE 000.. 006
EXECUTIVE SUMMARY
Lhe
CFALEragam
The Florida League of Cities recently developed the Capital Financing
Assistance Program ("CFAP") designed to accommodate financing needs for
issuers with no limitations on what may be pledged as security.
& Co. serves as an underwriter for this program, Foley & Lardner Ta smallerd
counsel , and Evenson Dodge (Orlando) serves as financialWilliam R(Tampa) is bond
R. Hough
advisor.
This program is available to League members only, as the League subsidizes
a portion of the cost of bond counsel and financial advisor for this program.
Thus, this program provides an extremely low cost of capital for
Following is a copy of the front cover of the official statement from the a entl
completed bond issue that is similar to that of Ocoee's. ecety
F' anc Pl n
Section 2 provides the details of the various costs associated with this
program, as well as the estimated debt service schedule and uses of funds. The
City anticipates receiving approximately $90,000 annually from police impact
and will use $160,000 from the general fund to supportp ct feese
payments per year. This generates approximately $2.4 million for construction
of the City Hall expansion.
The bonds will be secured by a covenant to budget and appropriate each year
from non-ad valorem revenues in the
security is pledged to the bond issue, general fund. No specified sourcof
for future capital improvement needs. Thevbonds,tif markhe et today, would havewith total an
average interest rate of 7.29% based upon a 20-year maturity.
an
Section 3 details an estimated timetable assuming the City wants funding
as soon as possible.
Co clus on
Based upon the cost, the flexibility and the City's needs, this program is
a cost-effective means of financing for the City.
City of Ocoee, Florida
Capital Improvement Revenue Bonds
City Hall Expansion Project
Estimated Debt Servire Schedule
Debt Service From 05/01/91
Date Principal Rate Interest Total P+1 Annual D/S
04/01/91 0.00 0.00
10/01/91 76,556.25 76,556.25 76,556.25
04/01/92 91,867,50 91,867.50
10/01/92 65,000 6.000 91,867.50 156,867.50 248,735.00
04/01/93 89,917.50 89,917.50
10/01/93 70,000 6.100 89,917.50 159,917.50 249,835.00
04/01/94 87,782.50 81,782.50
10/01/94 75,000 6,200 87,782.50 162,782.50 250,565.00
04/01/95 85,457.50 85,457.50
10/01/95 80,000 6,300 85,457.50 165,457.50 250,915.00
04/01/96 82,937,50 82,937,50
10/01/96 80,000 6.500 82,937.50 162,937.50 245,815,00
04/01/97 80,337.50 80,337.50
10/01/97 90,000 6.600 80,337.50 170,337.50 250,675,00
04/01/98 77,367.50 77,367.50
10/01/98 95,000 6.700 77,367.50 172,367.50 249,735.00
04/01/99 74,185.00 74,185.00
10/0i/99 100,000 6.850 74,185.00 174,185.00 248,370,00
04/01/00 70,760.00 70,760,00
10/01/00 105,000 7.000 70,760,00 175,760.00 246,520.00
04/01/01 67,085.00 67,085.00
10/01/01 115,000 7.100 67,085,00 182,085.00 249,170.00
04/01/02 63,002.50 63,002.50
10/01/02 120,000 7.250 63,002.50 183,002.50 246,005.00
04/01/03 50,652.50 58,652.50
10/01/03 130,000 7.250 58,652.50 188,652.50 247,305.00
04/01/04 53,940.00 53,940.00
10/01/04 140,000 7.250 53,940.00 193,940.00 247,880.00
04/01/05 48,865.00 48,865.00
10/01/05 150,000 7.250 48,865.00 198,865.00 247,730.00
04/01/06 43,427.50 43,427,50
10/01/06 160,000 7.400 43,427,50 203,427.50 246,855.00
04/01/07 37,507.50 37,507.50
10/01/07 175,000 7.400 37,507.50 212,507.50 250,015.00
04/01/08 31,032.50 31,032.50
10/01/08 185,000 7.400 31,032.50 216,032.50 247,065.00
04/01/09 24,187.50 24,187.50
10/01/09 200,000 7.500 24,187,50 224,187.50 248,375.00
04/01/10 16,687.50 16,687.50
10/01/10 215,000 7.500 16,687.50 231,687.50 248,375.00
04/01/11 8,625.00 8,625.00
10/01/11 230,000 7.500 8,625.00 238,625,00 247,250.00
Total 2,580,000 2,463,806.25 5,043,806.25
Accrued thru 05/01/91 0.00 0.00 / ! �'
Net Cost 2,463,806.25 5,043,806.25 � ' ��d'>N r ,
Average Coupon 7.299 Y
Ana Years Z?,755,10'1
City of Ocoee, Florida
Capital Improvement Revenue Bonds
(Covenant to Budget and Appropriate)
Estimated U/W Discount and Cost of Issuance
$ per Bond $ Amount
Underwriter's Discount
Structuring Fee 2.50 6,450.00
Risk 1.00 2,580.00
Takedown 7.60 19,608.00
Expenses 2.40 6,192.00
Sub-total 13.50 34,830.00
Cost of Issuance
Bond Counsel Fee 2.71 7,000.00
Official Statement Printing .85 2,200.00
Financial Advisor .70 1,800,00
Paying Agent/Registrar .19 500.00
City Expenses .19 500.00
Sub-total 4.65 12,000.00
Total Underwriter's Discount
and Cost of Issuance 18.15 46,830.00
15:1� _v _-�-- �-- �-- -
02/14/91 . --- —
William R. Hough 6 Co.
Fiie;TA5 02/12/91 12:17
City of Ocoee, Florida
Capital improvement Revenue Bands
Estimated Earnings on Construction Fund
Interest Rate; 6.50%
Interest From: 5/1/91 2 440,000.04
Total Available for Construction:
Date Draw Amount Earnings Balance
2,2@2,255,44
Beginning Balance .00 2,162,255.44
5/ 1/1991 120,000.00
6/ 1/1991 120,000.00 11,712.21 2,053,967.21
7/ 1/1991 120,000,00 11,125.66 1,945,092.87
81 1/1991 120,000.00 10,535.92 1,635,628.79
9/ 1/1991 120,000.00 9,942.99 1,775,571.78
101 1/1991 120,000.44 9,74�.48 1,503,666,14
614,910.63
11! 1/1991 120,000.00 8, 593,666.10
12/ 1/1991 120,000.00 0,144,86 1,391,810.96
1,279,349.94
11 111992 120,000,00 X929,@1 1,166,279.75
21 1/1992 120,000,00 6,
3/ 1/1992 120,000.00 6,317.35 1,052,597.10
4/ 111992 120,000.00 5,701.57 938,298.66
51 1/1992 120,000.00 5,082.45 623,381.12
6/ 1/1992 120,000.00 4,459.98 701,841.10
7/ 1/1992 120,000,00 3,834.14 591,675.24
8/ 1/1992 120,000.00 3,204.91 474,880.14
9/ 1/1492 120,000.00 2,572.27 357,452.41
10/ 1/1992 120,000.00 1,936.20 239,388,61
11/ 1/1992 120,000,00 1,296.69 120,30
12/ 1/1992 120,000_ _` _00 653.71 1635.3
1
Total 2,400,000,00 119,084.01
I. 1 . . a . ,. l l 1 _• _ ll..Ly , .
[,y
NEW ISSUE BOOK-ENTRY ONLY
In the opinion ofBond Comae{under ailing law,assuming eotnpliance with certain ca+awnrr in the Bond Resolution described herein,interest
on the Series Bonds(a)it dacb,dabk from grass become for federal income tax purposes and(b)it not an item of tar preference for
purposes° federal aber»ad a mbrbmwnn tar imposed on individuals and
from�On under the laws of the State ofaPo►�0�,and the Bonds and the interest thereon are comp Florida,Floridexcept as to estate rases and taxes on intuett,income or profits on debt obligotiont owned
by corpotadan.; as defined by Chapter 224 Florida Stamm; at amended Feathermpe its the ophaion of Bond Counse{ based an
ns esentatioC'�odeso of dee�i the Series 1990 Bonds we"qualified rax exempt obligations,"within the meaning of Suction 265(6)(5)of the Internalf �as anterded Sere,however, TAX EXEAtP7TCN"hereinfa ar description o certainfederal minimum and other special
serer that may ens the tax peaaersne of interest on the Series 1990 Bonds
f spec.
$1,000,000
CITY OF TEMPLE TERRACE, FLORIDA
CAPITAL IMPROVEMENT REVENUE BONDS
Series 1990
Anrrdr Daeembor 1,1!!0 Atm October 1,as shown blow
The Capital Improvement Revenue Bondi, Series 1990(the 'Series 1990 Bonds'), are being issued to finance the cost of
acquisition,construction and equipping of certain capital improvements within the City of Temple Terrace,Florida(the'City).
Interest on the Series 1990 Bondi will be payable,oomenencrug April 1,1991,and semiannually thereafter on each April 1 and
October 1. Principal on the Series 1990 Bonds will be payable October 1st for the ran listed below. Principal and interest will be paid
by First Union National Bank of Florida,St.Petersburg,Florida,as Bond Registrar and Paying Agent. The Series 1990 Bonds will be
issued in the form of a separate single certified fully registered Series 1990 Bond for each maturity,and when issued will be registered in
the name of Cede&Co.,as registered owner and nominee for The Depository Trust Company,New York,New York("DTC"). Purchasers
of ownership interests in the Series 1990 Bonds(the'Beneficial Owners')will not receive physical delivery of bond certificates. Ownership
by the Beneficial Owners of ownership interest in the Series 1990 Bonds will be cvide:wed by book-entry only(see Took-Entry Only
System'herein). , -
Paye ret of the principal of,P•gyr_m,if any,and buena on the Series 1990 Bondi shell be payable solely from aon.ad valorem
revenues, budgeted and appropriated for tech purpose in each year by the City. Pursuant to the Bond Resolution, the City has
ewen*ated to budget and appropriate la its&nasal budget,and to pay as the
te
valorevaloremnants sufrkkat to promptly�'as money becomes available,amounts of,area-ad
rad the C City's obligutioa under the Bood Resolution. Such covenant does not,however,constitute a
Pledge of any tends of tin City,including the nomad valorem revenues and is subject to certain restrictions more fully described herein.
The Series 1990 Bonds do not constitute a general obligation or a pledge of the faith,credit or taring power of the City,the Stats of
Florida or any political subdivision tbu.of,within the meaning of any eoastitutioaal or statutory limitation. Neither the City,the State
of Florida nor any political s■bdiasion thereof shall be obligated to exercise its ed valorem taxing power or any other doing power to
any form en any real or pommel property is the City to pay the principal of the Series 1990 Bonds,the interest thereon or other costs
incident thereto.
The Series 1990 Boots are subject to optional redemption prior to maturity as mote fully described herein.
MATURITY SCHEDULE
rat &Nisi IminfiAnt ME Biz MEM( &maw Miff
1991 S 35,000 5.75% 100% 1999 140,000 6.60% 100%
1992 40,000 600 100 2000 45,000 6.90 100
1993 100,000 6.20 100 2001 45,000 7.00 100
1994 110,000 6.30 101) 2002 50,000 7.10 100
1995 115,000 6.40 100 2009 55,000 7.20 100
1996 125,000 6,30 100 2004 55,000 7.25 100
1997 35,000 6.60 100 2005 60,000 7.25 100
1990 40,000 6.70 100
(accrued interest to be added)
The Series
Florida,and as 1990 Bonds are offered in full book-espy spy fon,5 subject ro prior sok when,as and if issued by the City of Temple Tamen
opted by the Underwriter and subject to the approval of their legality by Foley&Lardner dj fie!!Tampa,Florida,Bond cow
and certain other Conditions Certain legal matters will be passed upon for the ay of Temple Terrace,Florida by Taub& t Miser;P.4,,
Tampa,Florida. Ewrsse n DodgeInc, Orlando,Florida Sr acting as Financial Advisor to the Cly. his especial that settlement for the Series
1990 Bonds will occur be Tampa,Florida on or about December 21,199Q
December 18,1990 William
R. Hough
/& Us. ,!
02/15/91 14:07 /2 44-+ CITY OF OCOEE ldjuw, 0u2
CITY OF OCOEE, FLORIDA
Capital Improvement Revenue Bonds
Series 1991
Proposed Financing Schedule
d1! gp'waki r1 yt, ft .4.!; 4 t t le.Y
1 2 1 2 1 2 3 4 5 6
10 11 12 13 14.:'15 i6 10 11 12< 13 14 15 16 1k 15 '16 17 18 19 20
1? 13 1.9 20 21.x2 23 1T 18 19 2n 21 22 23 21 22,23 24 25 26 27
24 25R 26 27 24 x5'26 27 28 29 30 28 29 30
31
Pita Action to be Taken BAIZMI.CLkELLLY
Feb. 19 Presentation of Proposed Financing Plan to CO
City Council
Feb. 22 Distribute draft of Resolution to working group BC
Mar. 5 Adopt Authorizing Resolution at City Council Meeting CO
Mar. 14 Distribute Preliminary Official Statement (POS) UW
to working group for comments.
Mar. 22 Print and mail POS UW
April 1 Market Bonds UW;FA;CO
April 2 Submit Award Resolution and Bond Purchase Agreement ALL
to City at Council meeting
April 9 Distribute closing documents for comments BC
April 16 Closing All
CO - City of Ocoee Staff/Officials
BC - Bond Counsel
UW - Underwriter
All - All Parties