File Number: 041876
|File Number: 041876||File Type: Ordinance||Status: Adopted as amended|
|Version: 0||Reference: 04-124||Control: County Commission|
|Requester: Office of Community and Economic Development||Cost:||Final Action: 6/22/2004|
|Sunset Provision: No||Effective Date:||Expiration Date:|
|Registered Lobbyist:||None Listed|
|Acting Body||Date||Agenda Item||Action||Sent To||Due Date||Returned||Pass/Fail|
|County Attorney||6/24/2004||Assigned||Gerald T. Heffernan||6/23/2004|
|Board of County Commissioners||6/22/2004||4I Amended||Adopted as amended||P|
|REPORT:||Vice Chairperson Sorenson opened the meeting for public input. There being no one to appear, the public hearing was closed. The Board adopted the foregoing ordinance as amended to provide that the increment would be at a rate of 95 percent; that the estimated taxable value of the primary redevelopment project at build-out was $131 million; and correction of a scrivener’s error contained in the background information relating to this item in the first paragraph to refer to a resolution rather than an ordinance. (See reports under agenda items 4G, Legislative File Number 041147, and 4H, Legislative File Number 041453)|
ORDINANCE RELATING TO REDEVELOPMENT OF THE 7TH AVENUE CORRIDOR COMMUNITY REDEVELOPMENT AREA GENERALLY BOUNDED BY 119TH STREET ON THE NORTH, CITY OF MIAMI ON THE SOUTH, INTERSTATE 95 (I-95) ON THE EAST AND NW 7TH AVENUE ON THE WEST; ESTABLISHING REDEVELOPMENT TRUST FUND; PROVIDING FOR APPROPRIATION OF FUNDS AND CALCULATION OF INCREMENT FOR DEPOSIT INTO FUND; SETTING FORTH OBLIGATION TO APPROPRIATE TO FUND AND DURATION OF OBLIGATION; PROVIDING FOR LIMITED COUNTY APPROVAL OF DEBT; PROVIDING FOR REVIEW OF FINANCIAL RECORDS AND RIGHT OF AUDIT; PROVIDING FINDING OF PUBLIC PURPOSE; AND PROVIDING SEVERABILITY, INCLUSION IN THE CODE, AND AN EFFECTIVE DATE.
WHEREAS, the Florida Legislature enacted the Community Redevelopment Act of 1969 during its 1969 Legislative Session, which enactment is presently codified in the Florida Statutes as Part III of Chapter 163, Florida Statutes, as amended from time to time (the "Act"); and
WHEREAS, all powers arising through the Act are conferred by the Act upon counties with Home Rule Charters, which counties in turn are authorized to delegate certain of such powers to a community redevelopment agency created pursuant to the Act; and
WHEREAS, on March 16, 2004, the Board of County Commissioners of Miami-Dade County, Florida (the "Board") adopted Resolution No. R.-293-04 which resolution declared a certain geographic area of the County known as the 7th Avenue Corridor and bounded by 119th Street on the North, City of Miami on the South, Interstate 95 (I-95) on the East and by the westernmost property lines of all those parcels that abut the westerly right of way line of NW 7th Avenue on the West, such area being more particularly described in the attached Exhibit "A" and incorporated herein by this reference (the "7th Avenue Corridor Community Redevelopment Area" or "Redevelopment Area"), to be a slum or blighted area, declared the rehabilitation, conservation or redevelopment, or combination thereof to be necessary in the interest of the public heath, safety, morals or welfare of the residents of the Redevelopment Area and the County and found the need for the creation of a community redevelopment agency; and
WHEREAS, the Board, pursuant to Resolution No. R-774-04 enacted on June 22, 2004 created the 7th Avenue Corridor Community Redevelopment Agency (the "Agency"), appointed members to be the members of the Agency, granted the Agency the power to initiate, prepare and adopt a redevelopment plan, subject to approval by the Board; and
WHEREAS, the Agency submitted such plan to the Department of Planning and Zoning of Miami-Dade County, sitting as the local planning agency of the County and the local planning agency reviewed said redevelopment plan and submitted its written recommendations with respect to the conformity of the proposed community redevelopment plan with the comprehensive plan for the development of the County as a whole; and
WHEREAS, the County has adopted a resolution pursuant to the provisions of Section 163.360, Florida Statutes, which, after making certain findings at a duly advertised public hearing with respect thereto, approved and adopted the 7th Avenue Corridor Community Redevelopment Plan (the "Plan") to enable the Agency to undertake redevelopment of the Redevelopment Area; and
WHEREAS, the Agency may not receive or spend any increment revenues pursuant to Section 163.387, Florida Statutes, unless and until this Board has, by ordinance, provided for the funding of the redevelopment trust fund for the duration of the Plan; and
WHEREAS, the County is sympathetic to the program for redevelopment envisaged and proposed by the Agency pursuant to the Plan, which project will ultimately involve the expenditure of many millions of dollars, and which will be financed in part through a range of financing strategies suggested by the Agency to be secured by such revenue sources as are provided by law; and
WHEREAS, it is necessary to create a redevelopment trust fund to be funded with ad valorem tax increment revenues, pursuant to Section 163.353 and 163.387, Florida Statutes, in order to provide funds to finance or refinance the proposed community redevelopment and to facilitate the implementation of creative tax financing strategies; and
WHEREAS, this Board finds that establishing a redevelopment trust fund and providing for the appropriation into said fund of its tax increment as determined by statute is in the best interest of the citizens of Miami-Dade County and serves a public purpose; and
WHEREAS, the Board desires to accomplish the purposes outlined in the memorandum from the County Manager, a copy of which is attached hereto, for the reasons delineated therein,
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA:
Section 1. The foregoing recitations are deemed true and correct and are hereby incorporated as a part of this ordinance.
Section 2. The 7th Avenue Corridor Community Redevelopment and Revitalization Trust Fund (the "Fund") is hereby established. Each taxing authority (as defined in the Act) shall annually pay into the Fund, an amount not less than that increment in the income, proceeds, revenues and funds of each taxing authority derived from or held in connection with the undertaking and carrying out of community redevelopment in accordance with the Act. The increment shall be determined annually and shall be that amount equal to 95 percent of the difference between: (a) the amount of ad valorem taxes levied each year by each taxing authority, exclusive of any amount from any debt service millage, on taxable real property contained within the geographic boundaries of the Redevelopment Area; and (b) the amount of ad valorem taxes which would have been produced by the rate upon which the tax is levied each year by or for each taxing authority, exclusive of any debt service millage, upon the total of the assessed value of the taxable real property in the Redevelopment Area as shown upon the most recent assessment roll used in connection with the taxation of such property by each taxing authority prior to the effective date of this ordinance.
Section 3. Except for the purpose of funding the Fund pursuant to Section 4 herein, upon the enactment of this ordinance, each taxing authority shall, by January 1st of each year, appropriate to the Fund for so long as any indebtedness pledging increment revenues to the payment thereof is outstanding (but not to exceed thirty (30) years) a sum that is no less than the increment as defined and determined by Section 2 of this Ordinance accruing to such taxing authority. In no year shall the County's obligation to the Fund exceed the amount of that year's tax increment as determined pursuant to Section 2 of this ordinance. Beginning with the twentieth year after the date of sale of the initial bonding or indebtedness pledging tax increment funds, no new sale of bonds or indebtedness supported by the County's tax increment may occur nor may existing indebtedness so supported be refunded without amending this ordinance. The County's increment contribution is to be accounted for as a separate revenue within the Fund but may be combined within other revenues for the purpose of paying debt service. The County must approve the amount, duration of the obligation and the purpose of any bond, note or other form of indebtedness, including advances, pledging or otherwise obligating tax increment funds. Section 4. Notwithstanding the provisions of Section 3 herein, the County's obligation to fund the Fund annually shall continue until all loans, advances and indebtedness, if any, and interest thereon, of the Agency incurred as a result of redevelopment in the Redevelopment Area have been paid.
Section 5. Moneys in the Fund may be expended from time to time for the following purposes, when directly related to financing or refinancing of redevelopment in the Redevelopment Area pursuant to the Plan: (a) administrative and overhead expenses necessary or incidental to the implementation of the Plan; (b) expenses of redevelopment planning, surveys and financial analysis, including the reimbursement to the Board or the Agency for such expenses incurred before the Plan was approved and adopted; (c) the acquisition of real property in the Redevelopment Area; (d) the clearance and preparation of any Redevelopment Area for redevelopment and relocation of site occupants as provided in Section 163.370, Florida Statutes; (e) the repayment of principal and interest or any redemption premium for loans, advances, bonds, bond anticipation notes and any other form of indebtedness; (f) all expenses incidental to or connected with the issuance, sale, redemption, retirement or purchase of agency bonds, bond anticipation notes or other form of indebtedness, including funding of any reserve, redemption or other fund or account provided for in the ordinance or resolution authorizing such bonds, notes or other form of indebtedness; (g) the development of affordable housing within the Redevelopment Area; or (h) the development of community policing innovations.
Section 6. On the last day of the Agency's fiscal year, any money which remains in the Fund after the payment of the expenses listed in Section 5 herein for such year shall be: (a) returned to each taxing authority which paid the increment in the proportion that the amount of the payment of such taxing authority bears to the total amount paid into the Fund by all taxing authorities within the Redevelopment Area for that year; (b) used to reduce the amount of any indebtedness to which increment revenues are pledged; (c) deposited into an escrow account for the purpose of later reducing any indebtedness to which increment revenues are pledged; or (d) appropriated to a specific redevelopment project pursuant to the Plan which project will be completed within three (3) years from the date of such appropriation.
Section 7. The Agency shall provide for an independent financial audit of the Fund each fiscal year and a report of such audit. Such report shall describe the amount and source of deposits into, and the amount and purpose of withdrawals from, the Fund during such fiscal year and the amount of principal and interest paid during such year on any indebtedness to which is pledged increment revenues and the remaining amount of such indebtedness. The Agency shall provide a copy of the report to each taxing authority. All Fund records shall be available for County inspection. The County reserves the right to audit the Fund.
Section 8. This ordinance is hereby declared to be for a public purpose and for the welfare of the citizens of Miami-Dade County, Florida and shall be literally construed to effectuate the purpose thereof.
Section 9. If any section, subsection, sentence, clause or provision of this ordinance is held invalid, the remainder of this ordinance shall not be affected by such invalidity.
Section 10. It is the intention of the Board of County Commissioners, and it is hereby ordained that the provisions of this ordinance shall become and be made a part of the Code of Miami-Dade County. The sections of this ordinance may be renumbered or re-lettered to accomplish such intention, and the word "ordinance" may be changed to "section," "article," or other appropriate word.
Section 11. This ordinance does not contain a sunset provision.
Section 12. This ordinance shall become effective ten (10) days after the date of enactment unless vetoed by the Mayor, and if vetoed, shall become effective only upon an override by this Board.
Honorable Chairperson Barbara Carey-Shuler, Ed. D and Members, Board of County Commissioners
George M. Burgess
Ordinance Relating to Establishing the NW 7th Avenue Community
Redevelopment Agency Trust Fund
This substitute memo amends the language for the Ordinance establishing the 7th Avenue Corridor Redevelopment Trust Fund.
It is recommended that the Board approve and adopt the attached ordinance, establishing the 7th Avenue Community Redevelopment and Revitalization Trust Fund (the "Fund"), providing for the appropriation of County funding at the rate of 95% of the County's portion of Tax Increment Funds for a period of up to 30 years, and other terms and conditions relative to the 7th Avenue Community Redevelopment Agency.
On March 16, 2004 the Board adopted Resolution No.R-293-04, (Attachment A) establishing boundaries that created the 7th Avenue Community Redevelopment Area. The Board, subsequently, created the 7th Avenue Community Redevelopment Agency (the "Agency") on June 22, 2004 (Resolution No. R-774-04), (Attachment B). Also for consideration by the Board, on this Agenda is a resolution to approve and adopt the 7th Avenue Community Redevelopment Plan (the "Plan"), to enable the Agency to undertake redevelopment of the Redevelopment Area for the duration of the Plan.
The financing mechanism for the 7th Avenue Redevelopment Agency is a combination of ad-valorem tax increment revenues and other financing sources. Adoption of this Ordinance will put the tax increment financing process in place, pursuant to the Community Redevelopment Act of 1969, as presently contained in Part III of Chapter 163 of the Florida Statutes. This Ordinance establishes the Fund for which increment funds are to be used in conjunction with other revenues, to finance the proposed community redevelopment area and facilitate implementation of creative tax financing strategies, by the Board of the Community Redevelopment Agency (CRA).
In addition, the Ordinance also sets forth the County's obligation to appropriate tax increment funds to the redevelopment of project and provides for certain County approval and review requirements. For example, County review and authorization is required of plan amendments, bond indentures, other financing instruments and ordinances or resolutions authorizing financing instruments.
Section 163.387 (1)(b), Florida Statutes, gives the board the discretion to contribute up to 95% but no less than 50% of the County's portion of the tax increment revenue to the Fund. Based on a recommendation of the Miami-Dade County Tax Increment Financing Coordinating (TIFC) Committee, this Ordinance proposes that a contribution of 95% of the County's tax increment be made to the Fund, given the Committee's assessment of needs in the NW 7th Avenue Corridor area.
Honorable Chairperson Barbara Carey-Shuler, Ed. D
and Members, Board of County Commissioners
On May 19, 2004 the Economic Development and Human Services Committee of the Board approved the Ordinance for submission to the full BCC, with a recommendation that the County's contribution to the 7th Avenue Community Redevelopment Trust Fund by 95% of the tax increment revenues.
ECONOMIC IMPACT ANALYSIS
The CRA Plan
The 7th Avenue Community Redevelopment Plan Area covers a geographic area of 112 acres. This newly formed redevelopment area was designed by Board action, through their acceptance and adoption of the Finding of Necessity.
Estimated Total Taxable Value
The total taxable value of the CRA properties after build out of the Primary Redevelopment Project will be approximately $131,000,000, of which the Primary Redevelopment Project is estimated to contribute about $60,000,000.
Potential Tax Increment Revenue
The Agency's primary revenue source will be generated through Tax Increment Financing (TIF), as defined in Section 153.387 F.S. In addition to the TIF mechanism, the agency will have authority to pursue public funding through grants, and private revenue through loans, contribution, disposal of any real property, mortgages, hypothecation, bond anticipation notes, and bond issues backed primarily by TIF revenues. The TIF mechanism has a statutory life of 30 years from the date the Trust Fund is established.
As stated earlier, the TIFC Committee has recommended a contribution by the County of 95% of the tax increment.
The County will also receive revenues from building permits, review fees and recreation impact fees generated by the Primary Redevelopment Project and other development activities as the redevelopment of the entire CRA area progresses.
To date, the County has incurred through the Office of Community and Economic Development, reimbursable expenses on behalf of the 7th Avenue Corridor Redevelopment Agency in the amount of $94,500. $19,500 was expended for the preparation of the Finding of Necessity for the 7th Avenue Study Area and $75,000 has been spent for preparation of the Plan. A retainer of $3,750 (5%) of the cost for preparation of the Plan remains unpaid, subject to approval of the Plan by the BCC.
Tony E. Crapp, Sr.
Assistant County Manager
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