Legislative Matter

Miami-Dade Legislative Item
File Number: 111206

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Clerk's Official Copy

File Number: 111206

File Type: Resolution

Status: Adopted

Version: 0

Reference: R-533-11

Control: Board of County Commissioners

File Name: OMNI CRA FY 2009-10

Introduced: 5/31/2011

Requester: Office of Strategic Business Management

Cost:

Final Action: 7/7/2011

Agenda Date: 7/7/2011

Agenda Item Number: 8L1A

Notes:

Title:

RESOLUTION APPROVING THE BUDGET FOR FISCAL YEARS 2009-10 AND 2010-11 FOR THE OMNI COMMUNITY REDEVELOPMENT AGENCY

Indexes:

NONE

Sponsors:

Audrey M. Edmonson, Prime Sponsor

Sunset Provision: No

Effective Date:

Expiration Date:

Registered Lobbyist:

None Listed

Legislative History
Acting Body	Date	Agenda Item	Action	Sent To	Due Date	Returned	Pass/Fail

Board of County Commissioners	7/7/2011	8L1A	Adopted				P
REPORT:	City of Miami Commissioner Richard P. Dunn appeared in support of this resolution. Commissioner Heyman noted the former Miami Herald Building, which was located within the Omni Community Redevelopment Agency’s (CRA’s) boundaries, was sold to a foreign company that intended to develop a retail complex and pari-mutuel casino at this site. She recalled the County holding Miami Flagler Dog Track, Calder Race Track and the Gulf Stream Race Track to certain standards and conditions when these entities requested to operate a casino onsite. She asked if it was legal for language to be added to the bylaws of this CRA requiring the County to receive a larger portion of the revenues generated by the proposed retail complex and casino, if it materialized within the next twenty years. County Attorney Cuevas advised that the foregoing resolution did nothing more than approve the Omni CRA’s budgets for Fiscal Years 2009/10 and 2010/11; however, he indicated that the Commission could try to negotiate with the CRA to change the Interlocal Agreement (ILA). Chairman Martinez suggested that Commissioner Heyman and the County Attorney meet together to draft legislation directing the Mayor to negotiate with the Omni CRA for changes to the ILA. He expressed concern with CRAs allocating their monies for legal services, including legal fees for lobbyists; and concern with the $1 million allocation in the Omni CRA Budget for the repair of a church exterior, and the allocation for job creation. He said he would not continue supporting budgets of CRAs that spent monies this way. He also said he thought the workshop held by Commissioner Bell would have resulted in changes to CRAs. Commissioner Heyman said she was appalled by CRAs using tax dollars to pay for lobbyists; however, she understood that the foregoing CRA Budgets were legal and compliant. She said she planned to bring forth legislation that would allow the Commission to address CRA budgets before they were spent, rather than approve them after the fact. Commissioner Diaz noted he could not support the Omni CRA Budget, based on the current economy and the County having to cut back on jobs and services. He said he was also concerned with CRAs allocating funds for lobbyists and believed that CRA expenditures needed to be reviewed and addressed. Commissioner Edmonson noted, on the other hand, that CRAs were created to eliminate slum and blighted areas, and it did not make sense to place CRA funds in a general fund and distribute it countywide. She also noted she previously proffered legislation to reopen the ILAs between the County and CRAs, but it was tabled. She agreed with some of Commissioner Heyman’s comments, and that a County Commissioner should participate in CRA Board meetings to have a say in their budgets. Commissioner Edmonson questioned the difference between the County using tax payer dollars to pay for its lobbyists and the CRAs doing the same. She said she had problems with this CRA allocating $1 million for the repair of a church and with other allocations in its budget; but she believed the money had already been spent and nothing could be done about it. Commissioner Bell concurred with many of the concerns expressed by her colleagues. She noted the CRA workshop resulted in legislation for changes to CRAs, but the legislation was killed at the State level when CRA Executives called for the County’s delegation to oppose it. She also noted her legislation was not in opposition to CRAs, but an attempt to make positive and effectual changes. She said she learned from the workshop that the Commission had little authority at the local level concerning CRA budgets, except to approve them after they were spent. In addition, she noted that CRAs should be spending TIF funds on projects, not carrying them forward. She said she supported CRAs and their mission to remove slum and blight, but did not support the way CRAs spend their funds, especially on lobbyists. She said she intended to bring forth legislation again at the next Legislative Session in Tallahassee that would give the Commission some say in CRA budgets before they were spent. Commissioner Monestime noted he too was disappointed in the manner in which some CRAs spent their dollars. He suggested that even though CRAs were regulated by the State, the County could offer CRAs ideas and guidelines on how to spend their dollars. He pointed out that CRAs were investments made by the County to build a stronger tax base in the future, and said he hoped this legislation would not taint the process for creating a CRA in Commission District 2, as he planned to create one there. Commissioner Moss noted he supported the concept of using CRAs to improve blighted areas countywide; however, one of the shortcomings of the County’s CRA policy was that it allowed CRAs to exist perpetually after the redevelopment was completed. He said this allowance prevented money generated by the CRA from flowing into the County or the respective City that invested in creating it. He noted a process should be established to correct that. Commissioner Moss pointed out that some CRAs had been in existence for over 50 years, and had generated millions of dollars for areas that were no longer considered slum and blighted. He said he realized the three CRAs listed on today’s agenda had not reached that point yet, and he would support their budgets. Commissioner Barreiro noted the life of a CRA should end when the debt for improvements was paid back; and a timeframe should be established for the CRA to complete its initial improvements, closer to the CRA’s creation date. He also noted the County should see more revenues near the end of the CRA’s life, when the tax base had increased substantially. He said he supported seating a County representative on CRA boards to provide input into these processes. Commissioner Jordan agreed that CRAs’ projects should show results; however, she noted that it took time for CRAs to build up resources. As an example, she referenced a project to expand a portion of the 7th Avenue Corridor in the CRA located in Districts 1, 2, and 3. Commissioner Jordan noted she believed that groups of County residents tend to form CRAs or incorporate areas in response to the County neglecting their areas; therefore, the County should pay more attention to neglected areas, especially in the Unincorporated Municipal Service Area (UMSA). She agreed that timelines for redevelopment in CRAs should be adhered to, and that CRA budgets should be monitored more closely, in order to avoid supplanting. She said she supported this item. Commissioner Sosa spoke in support of CRAs and their mission to improve slum and blighted areas and redevelop communities. She said she agreed that a County representative should oversee the CRA’s mission. She noted she would support this resolution, but asked the County Attorney to respond to the concerns regarding what could be done to regulate CRAs better, and review existing CRAs to determine how long they had been in existence, when they would sunset, what they had accomplished, and if their funds had been expended properly. Commissioner Suarez agreed that CRAs needed to sunset once they had accomplished their purpose, and hopefully, as improvements were made, the TIF revenues generated by them would be applied to the County or respective municipality that invested into them. Mayor Gimenez said he too had the same concerns as many of the Commissioners had and believed it would be beneficial if staff reviewed all CRAs and brought back a report on their accomplishments. He also noted a safety mechanism was needed when creating CRAs to put them out of business if they did not perform. He pointed out that the County invested $40 million of General Funds into CRAs, and only one CRA had gone out of business. Hearing no further comments or questions, the Board voted on this resolution as presented.

Internal Mgmt. & Fiscal Responsibility Committee	6/14/2011	3Q	Forwarded to BCC with a favorable recommendation				P
REPORT:	Assistant County Attorney Jess McCarty read the foregoing proposed resolution into the record. Hearing no questions or comments, the Committee proceeded to vote on the foregoing proposed resolution as presented. SPECIAL NOTE: Chairwoman Bell asked staff to prepare the appropriate memorandum to the Board of County Commissioners' Chairman Joe A. Martinez requesting that the Board's Rules and Procedures be waived to allow the foregoing proposed resolution to be heard at the June 21, 2011 Board meeting.

County Attorney	6/1/2011		Assigned	Terrence A. Smith		6/2/2011

County Manager	5/31/2011		Assigned	Jennifer Glazer-Moon

County Manager	5/31/2011		Assigned	County Attorney	7/7/2011
REPORT:	OSBM--PENDING COMMITTEE-COMMISSIONER EDMONSON SPONSOR- CAO- T. SMITH

Legislative Text

TITLE
RESOLUTION APPROVING THE BUDGET FOR FISCAL YEARS 2009-10 AND 2010-11 FOR THE OMNI COMMUNITY REDEVELOPMENT AGENCY

BODY
WHEREAS, The Interlocal Cooperation Agreement between Miami-Dade County, Florida (the �County�), the City of Miami (the �City�) and the OMNI Community Redevelopment Agency (the �Agency�), adopted June 24, 1996 (R-280-96) requires that the City and Agency transmit its adopted annual budget to the Board of County Commissioners of Miami-Dade County, Florida (the �Board�) for approval; and

WHEREAS, this Board desires to approve the Agency�s adopted annual budget for Fiscal Year 2009-10 for the OMNI Community Redevelopment Area in the form attached hereto as Exhibit 2 and incorporated herein by reference; and

WHEREAS, this Board desires to approve the Agency�s adopted annual budget for Fiscal Year 2010-11 for the OMNI Community Redevelopment Area (the �Budget�) in the form attached hereto as Exhibit 3 and incorporated herein by reference; and

WHEREAS, this Board desires to accomplish the purpose outlined in the accompanying memorandum, a copy of which is incorporated herein by this reference,

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that:

Section 1. The matters contained in the foregoing recitals are incorporated in this resolution by reference.

Section 2. This Board approves the Agency�s adopted budget for Fiscal Year 2009-10 related to the OMNI Community Redevelopment Area in the form attached hereto as Exhibit 2.

Section 3. This Board approves the Agency�s annual adopted budget for Fiscal Year 2010-11 related to the OMNI Community Redevelopment Area in the form attached hereto as Exhibit 3.

HEADER
Date:

To: Honorable Chairman Joe A. Martinez
and Members, Board of County Commissioners

From: Alina T. Hudak
County Manager

Subject:FY 2009-10 and FY 2010-11 Budgets for the OMNI Community Redevelopment Agency
..Recommendation
It is recommended that the Board of County Commissioners (BCC) adopt the attached resolution approving the OMNI Community Redevelopment Agency�s (CRA�s) FY 2009-10 and FY 2010-11 budgets for the OMNI Community Redevelopment Area (Area). The CRA�s budgets include revenues and expenditures of $44,015,971 for FY 2009-10 and $38,958,422 for FY 2010-11.

Scope of Agenda Item
This resolution provides the appropriation of tax increment funds derived from the Area. The Area lies within County Commission District 3 and 5.

Fiscal Impact / Funding Source
The CRA�s main revenue source is generated through the incremental growth of ad valorem revenues beyond an established base year, Tax Increment Financing (TIF), as defined in Section 163.387 of Florida State Statutes. County tax increment revenues in FY 2009-10 totaled $5,195,407 and $3,852,638 in FY 2010-11.

The County will continue to make annual payments to the CRA, based on each respective year�s growth of ad valorem revenues over the base year. These payments will be made through March 31, 2030, which is when the CRA will sunset.

Track Record / Monitor
This resolution does not provide for contracting with any specific entity. The resolution approves the CRA�s FY 2009-10 and FY 2010-11 budgets.

BODY
On July 7, 1987, the BCC approved the establishment of the CRA when it declared the Area to be slum and blighted pursuant to Resolution R-825-87. The BCC approved the CRA�s Community Redevelopment Plan (Plan) and funded the Plan when it enacted Ordinance No. 87-47 (Trust Fund). An Interlocal Agreement by and among Miami-Dade County, the City of Miami, and the OMNI CRA was approved by the BCC on June 24, 1996, requiring the CRA to submit an annual budget for County approval. On January 21, 2010, the BCC approved amendments to the CRA Finding of Necessity and Plan to expand the area and extend the life of the CRA until March 31, 2030.

FY 2009-10 Budget
It is recommended that the BCC approve the CRA�s FY 2009-10 budget of $44,015,971 which was approved by the CRA and the City of Miami on November 27, 2010. The budget includes revenue sources from County Tax Increment Revenues ($5,195,407), City Tax Increment Revenues ($8,238,547), a grant from the State of Florida for improvements on North Bayshore Drive ($100,000) and funds carried over from the prior year ($30,482,017).

Administrative expenditures total $716,400 and represent less than 2 percent of total budgeted expenditures, which is within the 20 percent allowed in the Interlocal Agreement.

Operating Expenditures total $43,199,571 and include:
* Building and construction activities in the amount of $29,065,747 for Fire Station No. 2 ($3,691,241), the OMNI Waterline Improvement Project ($6,320,070), the 14th St. Corridor Streetscape Project ($5,640,770), the Bayshore Drive Project ($4,229,138), park improvements ($1,220,129), and infrastructure improvements ($7,964,399). The $7,964,399 for infrastructure improvements are not tied to any specific project. Instead, these funds are in a pool of funds to be used for that intended purpose.
* Grants and aid in the amount of $2,813,471 to not-for-profits for construction and building recertifications, youth and small business stimulus programs.
* Performing Arts Center contribution in the amount of $5,631,384 for use by the County in paying debt service and operations for the Performing Arts Center. This amount is set at 35 percent of total TIF revenues generated pursuant to an interlocal agreement between the County and City.
* Children�s Trust payment of $530,934.
* Reimbursement to the City of Miami in the amount of $4,395,332 for previous years� expenditures associated with the design of Museum Park.
* Contractual services in the amount of $762,703 for contingency services as needed ($371,655), legal services ($160,000), park and open spaces contractual services ($98,715), marketing ($59,661), and lobbying ($45,075).

The budget also includes a $100,000 reserve.

The CRA projects are budgeted on a cash basis, the projects are not started until all of the funding is in place. It is important to note that of the $44,015,971 budget, $30,482,017 or almost seventy percent is from carryover funding.

The FY 2009-10 budget was presented to the BCC on October 5, 2010 (Exhibit 1) and was deferred at the request of the CRA. The CRA has since amended the budget to allow for a $4,395,332 reimbursement to the City of Miami for expenses associated with the design of Museum Park. The funding to reimburse the City was made available by reducing project funding for the 40-year recertification of the Miami Women�s Club ($1,873,411) and Trinity Church ($21,234), a contingency for job creation programs ($1,524,740), baywalk from Margaret Pace Park to the Grand Doubletree Hotel ($784,005), improvements to North Bayshore Drive ($150,000), monthly movies in Margaret Pace Park ($40,000) and other miscellaneous projects ($1,942).

All revised FY 2009-10 expenditures are detailed in Exhibit 2 to this Resolution.

FY 2010-11 Budget
It is further recommended that the BCC approve the FY 2010-11 budget of $38,958,422 which was approved by the CRA on February 28, 2011 and the City of Miami on March 24, 2011. The budget includes revenue sources from County Tax Increment Revenues ($3,852,638), City Tax Increment Revenues ($5,336,988), and funds carried over from the prior year ($29,768,796).

Administrative expenditures total $600,000 and represent less than 2 percent of total budgeted expenditures, which is within the 20 percent allowed in the Interlocal Agreement.

Operating expenditures total $38,238,422 and include:
* Building and Construction in the amount of $23,425,329 including $3,054,901 for Fire Station No. 2, $4,619,683 for the OMNI Waterline Improvement Project, $5,665,168 for the 14th St. Corridor Streetscape Project and $3,070,678 for the Bayshore Drive Project, $2,194,017 for park improvements, $1,143,002 for Museum Park Baywalk Project, $250,000 for Beautification Project around AAA Arena, and $3,427,880 for infrastructure improvements. The $3,427,880 for infrastructure improvements are not tied to any specific project, they are in a pool of funds to be used for that intended purpose.
* Grants and Aid in the amount of $7,170,792, including grants to not-for-profits for construction and building recertification, youth programs, small business stimulus, arts and culture, environmental remediation in Bicentennial Park and quality of life grants. It is important to note that approximately $1.8 million in this line item is not tied to any specific grant, but available for job creation, arts and culture, open spaces and quality of life grants.
* Performing Arts Center contribution in the amount of $4,145,869 for use by the County in paying debt service and operations for the Performing Arts Center. This amount is set at 35 percent of total TIF revenues generated pursuant to an interlocal agreement between the County and City.
* Purchase of the Miami Skill Center building and land in the amount of $2,831,657.
* Contractual services in the amount of $664,775 for contingency services as needed ($368,299), legal services ($133,441), demolition of structures at Bicentennial Park ($69,957), landscape maintenance ($19,169), audit services ($14,000), and lobbying ($59,909).

The budget also includes a $120,000 reserve. All FY 2010-11 expenditures are detailed in Exhibit 3.

The CRA projects are budgeted on a cash basis, the projects are not started until all of the funding is in place. It is important to note that of the $38,958,422 budget, $29,768,796 or almost seventy six percent is from carryover funding.

The Tax Increment Financing and Coordinating Committee reviewed the CRA�s budget on May 9, 2011 and unanimously recommended it for BCC approval.