TITLE
RESOLUTION APPROVING THE BUDGET FOR FISCAL YEARS 2009-10 AND 2010-11 FOR THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY AND CONSENTING TO THE USE TAX INCREMENT FUNDING BY THE CITY OF MIAMI AND THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY TO FUND THE CAMILLUS HOUSE PROJECT IN AN AMOUNT NOT TO EXECEED $10 MILLION

BODY
WHEREAS, The Interlocal Cooperation Agreement between Miami-Dade County, Florida (the �County�), the City of Miami (the �City�) and the Southeast Overtown/Park West Community Redevelopment Agency (the �Agency�), adopted April 19, 1983 by the Board of County Commissioners of Miami-Dade County, Florida (the �Board�) (R-467-83) requires that the City and Agency transmit the Agency�s adopted annual budget to the Board for approval; and

WHEREAS, this Board desires to approve the Agency�s adopted annual budgets for Fiscal Year 2009-10 and 2010-11 for the Southeast Overtown/Park West Community Redevelopment Area in the form attached hereto as Exhibits 2 and 3, which are incorporated herein by reference; and

WHEREAS, the City and the Agency have requested the County affirmatively consent to the use of tax increment finance (TIF) funding by the City and the Agency for the Camillus House Project; and

WHEREAS, on January 22, 2010, the County, City and the Agency executed an amendment to the Interlocal Cooperation Agreement (�Amendment�) to include, among other projects, funding of the Camillus House Project; and

WHEREAS, this Board has previously approved funding for the Camillus Project through the General Obligation Bond Program, Community Development Block Grant and Surtax; and

WHEREAS, in order to complete Phase I of the Camillus House Project the CRA and Camillus House have entered into a grant agreement to provide TIF funding for the Camillus Project in the amount not to exceed $10 million; and

WHEREAS, this Board recognizes the efforts and accomplishments of Camillus House to provide supportive services to the homeless population in Miami-Dade County; and

WHEREAS, this Board also recognizes that the Camillus House Project will be a benefit to the homeless population and residents of Miami-Dade County; 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 budgets for Fiscal Years 2009-10 and 2010-11 related to the Southeast Overtown / Park West Community Redevelopment Area in substantially the form attached hereto as Exhibits 2 and 3.

Section 3. This Board consents to the City and Agency�s use of TIF funding for the Camillus House Project in an amount not to exceed $10 million to be disbursed in $2 Million increments over a five (5) year period.

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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 Southeast Overtown / Park West Community Redevelopment Agency
..Recommendation
It is recommended that the Board of County Commissioners (BCC) adopt the attached resolution approving the Southeast Overtown Park West Community Redevelopment Agency�s (CRA�s) FY 2009-10 and FY 2010-11 budgets for the Southeast Overtown Park West Community Redevelopment Area (Area). The CRA�s budget includes revenues and expenditures of $27,321,927 for FY 2009-10 and $29,577,142 for FY 2010-11. It is also recommended that the BCC consent to the City of Miami and the CRA�s use of tax increment finance funding for the Camillus House Project in an amount not to exceed $10 million.

Scope of Agenda Item
This resolution provides the appropriation of tax increment funds derived from the Area. The Area lies within County Commission Districts 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 revenue in FY 2009-10 totaled $3,955,532 and $4,865,405 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, 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 January 20, 1981, the BCC approved the establishment of the CRA when it declared the Area to be slum and blighted pursuant to Resolution R-39-81. The BCC approved the CRA�s Community Redevelopment Plan (Plan) pursuant to Resolution R-1677-82 and funded the Plan when it enacted Ordinance No. 82-115 (Trust Fund). An Interlocal Agreement by and among Miami-Dade County, the City of Miami, and the CRA was approved by the BCC on March 31, 1983, requiring the CRA to submit an annual budget for County approval. On July 21, 2009, 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 $27,321,927 which was approved by the CRA and the City of Miami on September 27, 2010. The budget includes revenue sources of County Tax Increment Revenues ($3,955,532), City Tax Increment Revenues ($6,270,714), revenue from the sale of units in the Bayview Tower Apartments ($611,846) and funds carried over from the prior year ($16,483,835).

Administrative expenditures total $822,384 and represent 3 percent of total budgeted expenditures, which is less than the 20 percent allowed in the Interlocal Agreement.

Operating expenditures total $26,399,543 and include:
* Building and Construction activities in the amount of $15,147,882 for affordable housing ($4,605,427), available for construction in progress ($3,115,954), the NW 14th Street Streetscape Project ($2,600,000), streetscape projects ($1,973,935), Gibson Park ($1,000,000), church interior buildout ($1,500,000), and apartment rehab ($352,566). According to the CRA, the $3,115,954 in construction in progress will be used for the Ramon Cortada building located at 1201 NW 3rd Avenue which is an affordable housing project.
* Children�s Trust Payment in the amount of $251,439.
* Grants and aid in the amount of $3,505,609 for a Overtime Police Visibility Pilot Program ($606,525), security cameras ($500,000), rehab Masonic Lodge ($300,000), Downtown Master Plan ($282,970), Two Guys Restaurant ($256,723), film and entertainment ($250,000), New Arena Square retail business ($226,000), hospitality institute ($200,033), Omni Park West Redevelopment Association ($200,000), Overtown enhancement pilot program ($200,000), job creation ($101,381), small business stimulus ($76,733), Roots in the City ($76,000), Art Basel ($50,000), and miscellaneous other grants ($179,244).
* Debt Service Payment in the amount of $350,000 to the City of Miami for the construction of Gibson Park.
* Transfer of $5,271,317 to the City of Miami, reimbursing the City for advances given to the CRA for administrative expenses.
* Contractual Services in the amount of $1,873,296 for the preparation of the Southeast Overtown/Park West Development of Regional Impact Master Development Order ($562,692), analysis of the Miami Worldcenter Project ($384,953), legal services ($265,574), available for other contractual services ($303,328), available for landscape services ($145,000), landscape and general maintenance ($126,786), lobbying ($45,075), auditing ($25,000) and marketing consultant ($14,888).

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 $27,321,927 budget, $16,483,835 or sixty percent is from carryover funding.

The FY 2009-10 CRA budget was presented to the BCC on October 5, 2010 and was deferred at the request of the CRA (Exhibit 1). The CRA has since amended the budget to reallocate $5,271,317 previously budgeted for the Jazz Village Project, now being used to repay the City of Miami�s general fund for administrative operating subsidies given to the CRA during the period beginning FY 2000 and ending in FY 2005. The Jazz Village Program was cancelled due to the developer�s lack of funding. It is important to note that of the $27,321,927 budget, $16,483,835 or sixty two percent is from carryover funding.

All expenditures are detailed in Exhibit 2 to this Resolution.


FY 2010-11 Budget
It is recommended that the BCC approve the CRA�s FY 2010-11 budget of $29,577,142 which was approved by the CRA on February 28, 2011 and the City of Miami on March 24, 2011. The budget includes revenue sources of County Tax Increment Revenues ($4,865,405), City Tax Increment Revenues ($6,845,971), and funds carried over from the prior year ($17,865,766).

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

Operating expenditures total $28,857,142 and include:
* Building and construction activities in the amount of $18,984,387 for affordable and workforce housing ($11,610,832), NW 14th Street Streetscape Project ($2,600,000), church interior buildout ($1,500,000), beautification and streetscape improvements ($1,019,718), upgrading Gibson Park ($1,000,000), Overtown 3rd Avenue Business Corridor Streetscape Project ($901,271), apartment rehab ($352,566). According to the CRA, the $11,610,832 in affordable and workforce housing will be used for the Ramon Cortada building located at 1201 NW 3rd Avenue which is an affordable housing project.
* Grants and aid in the amount of $6,947,577 for the relocation of Camillus House ($2,000,000), job creation ($1,209,609), Overtime Police Visibility Pilot Program ($606,525), security cameras ($500,000), rehab Masonic Lodge ($300,000), Downtown Master Plan ($282,970), Two Guys Restaurant ($256,723), film and entertainment ($250,000), New Arena Square retail business ($226,000), hospitality institute ($200,033), Omni Park West Redevelopment Association ($200,000), Overtown enhancement pilot program ($200,000), Camillus Construction Institute ($233,740), arts and culture ($100,000), small business stimulus ($76,733), Roots in the City ($76,000), Art Basel ($50,000), and miscellaneous other grants ($179,244).
* Debt Service Payments of $1,436,854 to the City of Miami for the construction of Gibson Park. Of the $1,436,854 budgeted for this line item, $350,000 is for the current debt service payment. According to the CRA, the remaining $1,086,854 is a reserve for future debt service payments.
* Contractual Services in the amount of $1,488,324 for the preparation of the Southeast Overtown/Park West Development of Regional Impact Master Development Order ($418,238), analysis of the Miami Worldcenter Project ($384,953), legal services ($193,950), available for other contractual services ($109,132), available for landscape services ($97,384), landscape and general maintenance ($179,005), lobbying ($55,109), auditing ($32,000), marketing consultant ($15,000) and appraisal services ($3,553).

The budget also includes a $120,000 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 $29,577,142 budget, $17,865,766 or sixty percent is from carryover funding.


On July 21, 2009 the BCC approved amendments to the CRA Finding Of Necessity (FON) and Plan to expand the Area and extend the life of the CRA through March 31, 2030. One of the projects identified in the interlocal was the Camillus House project. The CRA is to provide funding to cover the City and County�s share towards the construction of the Camillus House project that will provide housing for homeless individuals and families in a new facility, including related structures and infrastructure to be developed within the Area. On May 13, 2010, the CRA and Camillus House entered into a grant agreement to fund the City�s obligation to the project. The agreement grants Camillus House $10 million to be used for repaying the gap financing utilized for the actual construction of the project. The $10 million is to be paid $2 million per year over five years. The creditors for the Camillus House loan have requested that the County acknowledge and consent to TIF funds being used for this purpose.

While the CRA has fulfilled the City�s obligation to the Camillus House project, there remains an additional $10 million gap in funding for phase two of the project. As noted above, it is the County�s intention to fund its obligation to Camillus House through the use of County-wide tax increment from the CRA as noted in the attached supplement provided to the BCC on October 5, 2010.

All expenditures are detailed in Exhibit 3 to this Resolution.

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



_________________________________
Jennifer Glazer-Moon
Special Assistant/Director
Office of Strategic Business Management