The City of Oviedo is seeking proposals from lenders for a loan to help finance part of its acquisition costs with the Twin Rivers Golf Course property in January.
City Council members agreed in late September to buy the struggling 310-acre golf course for $5 million, pay the owner an extra $465,000 to cover expenses, and continue operating it as is, the Orlando Sentinel reported on Sept. 26.
The city published a Request for Proposals (RFP) on Monday for a $5 million non-bank qualified, tax-exempt loan for its proposed Utility Revenue Note Series 2017.
The note will finance a portion of the acquisition costs for the golf course, and costs associated with the issuance of the financing. The Series 2017 Note will be secured by the city increasing stormwater fees on property owners by an average of $3 per month.
The city will select the bank financing that provides the lowest overall borrowing costs. First Southwest, a division of Hilltop Securities, Inc., will assist the city as financial advisor in obtaining the loan.
Oviedo wants to structure the financing with a fixed rate for the note's entire term, with a maturity date of Oct. 1, 2031, and no prepayment penalty. It prefers semi-annual interest payments on April 1 and Oct. 1 beginning in 2017, with no compounding interest, and an annual principal payment date beginning on Oct. 1, 2018.
Proposals will be evaluated based on the interest rate, costs, prepayment and tax provisions, and financing structure that meets the city's basic requirements.
The city has retained law firm Bryant Miller Olive to prepare the tax opinion, bond resolution and other related documents.
Questions regarding the RFP can be submitted until Dec. 8, with formal applications due Dec. 19 at 2 p.m. to the city's purchasing agent. The City Council is expected to approve a resolution and the Series 2017 Note on Jan. 17.
The complete RFP package (no. 17-14) can be found on DemandStar.com, or through Oviedo's purchasing office.