HomeMy WebLinkAboutPresentation_Workshop_Tab 03_2/22/2023 V *Illa
e of Tequesta
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PGE O F T,�
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QUESTION MW
Official Ballot Village of Tequesta
Village of Tequesta General Obligation Bonds for Land Acquisition Program
Shall Tequesta issue bonds in phases from time to time, not exceeding a total of
$10,000,000, maturing within 20 years of their issuance dates, with interest not
exceeding the maximum legal rate, payable from ad valorem property taxes levied in
amounts sufficient to pay debt service on such Bonds, to finance acquisition of
environmentally sensitive, waterfront, or recreation lands, or lands for open spaces,
archeological or historic preservation, or traffic mitigation, and recreational capital
improvements.
BEHINDTHE ISSUE
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There are two facets to this bond
• Acquisition of Land
• Capital Improvements
LAND ACQUISITION MW
(Ordinance 14-22 Paragraph 1)
WHEREAS, it is necessary and desirable and in the best interests of the Village of
Tequesta, Florida ( the " Village" or "Tequesta") to acquire lands that are
environmentally sensitive or waterfront or which may be used for recreation, open
spaces, archeological or historic preservation or traffic mitigation and to make
recreational capital improvements thereto ( collectively, the " Land Acquisition
Program"), in order to promote, improve, maintain and protect the health, safety and
welfare of the residents of the Village
POTENTIAL
Land which would meet the criteria in the bond:
• Environmentally sensitive
• Waterfront
OR
Land which may be used for:
• Recreation
• Open spaces
• Archeological or historic preservation
• Traffic mitigation
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CAPITAL IMPROVEMENTS mmim
MW
(Ordinance 14-22 Paragraph 1)
WHEREAS, it is necessary and desirable and in the best interests of the Village of
Tequesta, Florida to acquire lands that are environmentally sensitive or waterfront or
which may be used for recreation, open spaces, archeological or historic preservation or
traffic mitigation and to make recreational capital improvements thereto (collectively,
the "Land Acquisition Program"), in order to promote, improve, maintain and protect
the health, safety and welfare of the residents of the Village.
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POTENTIAL
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Money from the passage of the bond issue could be used for development,
enhancement, improvement projects in existing but not for maintenance.
• Constitution Park 3.94 acres (Village owns)
• Village Green Park 1.50 acres (Village hall site)
• Remembrance Park (Currently a vacant site) 1.76 acres (Village owns)
• Linear Park 7.12 acres (FEC owns)
• Point Drive Open Space/Recreation Area (Banyan Tree) 0.46 acres
• Tequesta Park 45 acres (State owns; Tequesta leases; in Martin County)
WHO DECIDESWHERETHE MONEY GOES
Through Feedback from the Citizens the Village
Council will decide where to best utilize the Funds.
ACQUISITION PROCEDURES
LEGAL REQUIREMENTS
Village parkland acquisition operates under a legal framework, drawing from multiple federal, state, and local sources.
Generally, the Village Council is vested with the authority to acquire land or any interest in land whether within or
outside of the Village's territorial borders.This authority is found in theVillage Charter Sec. 5.01 ( 11).
The Village representative contacts the owner to determine willingness to consider
Step #1 sale to the Village. (Owners also contact the Department and start the evaluation
1 to 3 weeks process.) The steps to be followed and the probable schedule are explained.
Information about the owner's expectations is gathered
Step #2 The Village Council is asked to approve proceeding with an appraisal(s) of the
1 to 3 weeks property
ACQUISITION PROCEDURES
The property is appraised by an independent contract appraiser(s). If necessary, an
Step #3 engineering study is ordered to analyze slope density and evaluate other
6- 10 weeks development potential to determine the highest and best use under current
conditions.
Step #4 J The Village Council is asked to approve the offer of compensation based on the
to 3 weeks appraisal.
The Village representative is provided with the appraisal and presents the offer to
Step #5 the owner.
1 week
Negotiations continue until agreement is reached. A definite response from the
Step #6 owner can shorten this period. Impasse can result from the owner's unwillingness to
sell at this time, dissatisfaction with the price offered, and/or disagreement with the
4 to 8 weeks basis of appraised value (typically the development potential under Village planning
ordinances and regulations). During negotiations, the willingness of the Village to
structure an agreement that meets the needs of the owner is emphasized. (Owner
Options).
ACQUISITION PROCEDURES
Step #7 ■ The purchase agreement is forwarded to the Village Council for approval.When
8 weeks approved, escrow proceeds until clear title is vested.Taxes are prorated and
canceled as of the date of close of escrow.
Florida statutes provide a procedure when a municipality is purchasing land, which keeps the negotiations
and contract price exempt from public records disclosure pending an option contract or pending 30 days
prior to Village Council action:
166.045 Proposed purchase of real property by
municipality; confidentiality of records; procedure—
s. 253.025. If the agreed purchase price exceeds the average appraised price of the two appraisals,
the governing body is required to approve the purchase by an extraordinary vote. The governing
body may, by ordinary vote, exempt a purchase in an amount of $100,000 or less from the
requirement for an appraisal.
HOWTHE BONDWORKS
Such Bonds shall:
• Mature not later than twenty ( 20) years from their various dates of issuance
• Shall be issued in an aggregate total principal amount of not exceeding $ 10,000,000
• Shall bear interest at a rate not in excess of the maximum lawful rate, and
• Shall be secured by and payable from the Ad Valorem Taxes
- DIFFERENT BORROWING SCENARIOS
1. Upon passage of the referendum, the Village can issue debt.
2. The Village has three years to spend the debt issued to stay in compliance with the Feds.
3. Structuring of the debt will be determined by the amount and length of time between.
4. Once issued the 20 year clock begins on the debt.
5. Village's choice in the amount issued as long as # 2 is calculated into the equation.
Scenario 1 Scenario 2
• Bond Issuance • Bank Loans
• Higher Closing Costs • Lower Closing Costs
• Lower Interest Rates • Higher Interest Rates
• Twice Yearly Payments • Monthly Payments
DIFFERENT BORROWING SCENARIOS
it
$ 10,000,000
$819,522.83 4.13%20-yr Treasury
20 yr 5.25%Estimated Village Bond Rate
0.5750 mills
Equates to$276/yr for Home w/Taxable Value of$500,000
$ 5,000,000
$409,761.42 4.13%20-yr Treasury
20 yr 5.25%Estimated Village Bond Rate
0.2880 mills
Equates to$138/yr for Home w/Taxable Value of$500,000
$ 1,000,000
$81,952.28 4.13%20-yr Treasury
20 yr 5.25%Estimated Village Bond Rate
0.0575 mills
Equates to$28/yr for Home w/Taxable Value of$500,000