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Parks board approves temporary $2 million interest transfer to keep YMCA Holiday Park acquisition moving
Summary
The Fort Lauderdale Parks advisory board approved using $2 million in bond interest to fund a YMCA-related land acquisition so work on the Holiday Park project can start while the final bond tranche is released.
The Fort Lauderdale Parks & Recreation Advisory Board voted unanimously to allow use of $2,000,000 in interest earnings from the citys Series 2022 bond to cover acquisition costs for a YMCA project at Holiday Park while the final tranche of bond proceeds is still being released.
Board members approved a resolution to take $1,000,000 from the District 1 acquisition allocation and $1,000,000 from the District 2 allocation, using interest earnings available now and reimbursing the interest account when the third bond disbursement arrives.
The move is intended to let the YMCA-related acquisition close and for renovation work to start sooner. Alex (staff member), who presented the request to the board, said the board originally approved up to $2,000,000 for the Holiday Park YMCA in October and that the only timing obstacle now is that the final $60,000,000 tranche of the bond has not yet been released. Alex told the board the city proposes to tap interest earnings on the Series 2022A debt so the districts can spend what is available now and later be reimbursed when the third tranche is disbursed.
The board discussed timing and risk. A board member asked whether the transfer would let the YMCA start this year rather than next; Alex answered, "That's correct." The presentation also explained that the acquisition balances for District 1 (about $3,600,000) and District 2 (about $3,900,000) will be adjusted once the third tranche is released and the $2,000,000 paid back to the interest account.
The boards motion, as restated on the record, was "to approve using interest earned on the Series 2022A debt in order to fund the balances for District 1 and District 2 that are not available until the future third bond disbursement, and then once the third bond disbursement takes place the land acquisition balances will be adjusted and the $2,000,000 will be reimbursed to the interest account." The motion was made by Solomon Spoonover and seconded by Colette Kino; the board voted unanimously to approve the resolution. The board noted the item will proceed to a public hearing (scheduled for June 17, per the presentation) and, if approved at that hearing, a budget amendment/transfer would occur on the date identified in the staff plan (on the third [day] noted in the staff presentation).
No change was made to the underlying October authorization that designated $2,000,000 for the Holiday Park YMCA; the boards action simply allows temporarily drawing on bond interest to maintain project momentum while the final bond disbursement is processed.
The board directed staff to proceed with the public hearing and related budget steps so the YMCA acquisition and renovation project can move forward in keeping with the previously approved scope.
