April 23, 2014
The Midtown Miami Community Development District, the location of a planned Wal-Mart store, is selling $91 million of bonds to refinance debt for a parking garage, roads and other projects.
The tax-exempt bonds are scheduled to be sold tomorrow, said Ted Swinarski, senior vice president for Boca Raton, Florida-based FMSbonds Inc., an underwriter on the deal. The securities are backed by revenue from property taxes and special assessments in the district, 3 miles (5 kilometers) north of downtown Miami.
Landholders subject to the assessments include Wal-Mart Stores Inc., which purchased property in the district in January, and the Related Group of Florida, a condominium developer. Related said it would build a 31-story tower on the site with 80 hotel rooms and 400 condo units, according to offering documents. Real estate investment trust DDR Corp. (DDR) owns the district’s main shopping center.
The unrated securities could save the district about 8 percent in annual debt service, according to offering documents.
Bonds from Florida issuers gained 4.3 percent this year through April 16, trailing the 4.5 percent gain in the broad $3.7 trillion municipal market, according to Standard & Poor’s Dow Jones Indices.