Permanent Financing for the Islamorada Founders Park Property

A short term, interest only note provided temporary funding for the acquisition of the Islamorada Founders Park property, formerly known as Plantation Yacht Harbor. Permanent financing was sought to retire the $ 9,980,000 Series 1999 Public Improvement Revenue Note, which matured February 1, 2002. With interest rates in January 2002 at historic low levels, the Village's timing in acquiring permanent financing proved to be financially beneficial.

The Village implemented permanent financing in two parts. The first part is a long-term 17-year loan (Series A) in the amount of $ 7,380,000 to be funded by the Local Discretionary Sales Surtax. This surtax was recently extended by Monroe County through December 31, 2018 -- which covers the life of the loan. The second part is a short-term interest only loan in the amount of $ 2,600,000, which matures on August 1, 2004 and which is to be funded by TRE sales. TREs are Transferable ROGO Equivalents, or a type of building permit that became available with the demolition of the PYH motel rooms.

The Request for Proposal for permanent financing was mailed December 3, 2001 to seven banking institutions, including several in Islamorada. The RFP was also advertised in a local newspaper. The Village received bids from Bank of America, First Union National Bank, and SunTrust Bank.

Based on both rates and conditions, SunTrust Bank had the lowest and best bid for permanent financing. The Village's financial advisor, Bill Leedy of William R. Hough & Co., analyzed the bids and prepared a report for the Village Council.

The Village Council approved the bid January 10, 2002, and legal documents were presented and signed at the January 24, 2002 Special Call Council meeting.

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