Legislative Matter

Miami-Dade Legislative Item
File Number: 120817

Clerk's Official Copy

File Number: 120817

File Type: Resolution

Status: Adopted

Version: 0

Reference: R-755-11

Control: Board of County Commissioners

File Name: DELETION OF BBC GOB PROG NO. 333-CARVER THEATRE

Introduced: 4/20/2012

Requester: NONE

Cost:

Final Action: 10/4/2011

Agenda Date: 10/4/2011

Agenda Item Number: 5B

Notes:

THIS IS THE FINAL VERSION AS ADOPTED.

Title:

RESOLUTION APPROVING DELETION OF BUILDING BETTER COMMUNITIES GENERAL OBLIGATION BOND PROGRAM PROJECT NO. 333 - “CARVER THEATRE”, AS IDENTIFIED IN APPENDIX A TO RESOLUTION NO. R-919-04 AND APPROVING ADDITION OF NEW PROJECT NO. 333.1 - “NW 7TH AVENUE TRANSIT VILLAGE THEATER/CULTURAL CENTER” TO APPENDIX A TO RESOLUTION NO. R-919-04, AFTER PUBLIC HEARING; APPROVING DELETION OF PROJECT NO. 333 FROM AND ADDITION OF PROJECT NO. 333.1 TO APPENDIX A TO RESOLUTION NO. R-134-11; WAIVING REQUIREMENTS OF IMPLEMENTING ORDER 3-47 REGARDING ADDING NEW PROJECTS; APPROVING ACCELERATION OF BUILDING BETTER COMMUNITIES GENERAL OBLIGATION BOND FUNDING FOR PROJECT NO. 333.1; DIRECTING COUNTY MAYOR OR COUNTY MAYOR’S DESIGNEE TO LIST PROJECT NO. 333.1 AS ELIGIBLE FOR FUNDING IN NEXT BUILDING BETTER COMMUNITIES GENERAL OBLIGATION PROGRAM FINANCING AND TO FUND FROM SUCH PROCEEDS BALANCE OF TOTAL ALLOCATION; REQUIRING BOARD APPROVAL FOR ANY ADJUSTMENTS TO SUCH FUNDING, INCLUDING CASH FLOW REVISIONS; AND DIRECTING COUNTY MAYOR OR MAYOR’S DESIGNEE TO NEGOTIATE NECESSARY AGREEMENTS REGARDING PROJECT NO. 333.1 AND TO PRESENT SUCH AGREEMENTS TO THE BOARD FOR ITS CONSIDERATION [SEE ORIGINAL ITEM UNDER FILE NO. 111818]

Indexes:	BUILDING BETTER COMMUNITIES
	BUILDING BETTER COMMUNITIES GENERAL OBLIGATION BOND
	CARVER THEATRE

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

County Attorney	4/20/2012		Assigned	Geri Bonzon-Keenan	4/30/2012

Board of County Commissioners	10/4/2011	5B AMENDED	Adopted as amended				P
REPORT:	Assistant County Attorney Abigail Price-Williams read into the record the title of the foregoing proposed resolution. Vice Chairwoman Edmonson relinquished the Chair to Commissioner Diaz. Commissioner Diaz opened the public hearing and called for persons wishing to speak on the foregoing proposed ordinance. Assistant County Attorney Geri Bonzon-Keenan noted that a recital clause would be added to provide: “As required by Section 2-1803 of the Miami-Dade Code, and Implementing Order 3-47, the Building Better Communities Citizens’ Advisory Committee at its August 2011 meeting recommended the use of surplus funds to accelerate funding of the Transit Village Theatre. The Fiscal Year (FY) 2011-2012 Approved Budget included funding for the Carver Theatre as of FY 2011-12 equal to $2,560.000. Therefore, all references to the acceleration amount of $1.3 million should instead be $2,560,000 so as to be consistent with the approved budget. Accordingly, any references to the balance of the $5 million allocation shall be revised to $2,440,000.” Hearing no other persons wishing to speak on the foregoing proposed ordinance, Commissioner Diaz closed the public hearing. It was moved by Commissioner Edmonson that the foregoing proposed resolution be adopted. This motion was seconded by Commissioner Monestime, followed by discussion. Commissioner Bell noted Mayor Gimenez’ memorandum indicated that the reduction in the debt service millage rate would negatively impact funding for the Carver Theatre, and asked for clarification. Ms. Jennifer Glazer-Moon, Director, Office of Management Budget, noted this particular portion – $2,353,000 – of the funding for the Carver Theater was included in the budget for the transit village, and there was an additional carry over from the prior year that made up the total of $2.4 million. Discussion ensued among the members of the Board regarding clarification of the memorandum that was received from the Mayor. Deputy Mayor Ed Marques explained that when the cash flow was accelerated this may have the impact of changing the millages in future years; the memorandum from the Mayor indicated that as a number of projects were accelerated the millage would need to be adjusted, and a bond would have to be issued to cover the increased cash flows. He also explained that the memorandum indicated that if a $2,353,000 bond issue was needed for FY 2013 to accommodate the additions, there would be a set percentage of millage increase. Ms. Glazer-Moon noted the $2,353,000 would be for FY 2012-13 and the difference between that and the $2,440,000 had already been funded; however, if the funds were accelerated into the current fiscal year, an adjustment in another project would be required; and if there were too many adjustments, the millage would have to be increased. Therefore, this Board needed to determine which projects would be funded to identify the amount needed in order to limit spending in FY 2011-12, and FY 2012-13, and keep the same millage rate. Ms. Glazer-Moon noted if the County Commission decided to add more projects and not remove any, the millage rate would have to be increased the following year. Discussion ensued among the Board members regarding the necessity to avoid increasing the millage rate, because if projects were accelerated the Board would need to have a policy in place to ensure that the resources were identified. Vice Chairwoman Edmonson requested to hear from the Mayor, noting this expense was included in the 2011-12 County Budget. Mayor Carlos Gimenez explained that the entire General Obligation Bond (GOB) process was very fluid and although some of the projects were already funded, they would not start immediately, which would allow projects that were ready to start to be accelerated without affecting the millage rate. He noted, however, eventually as projects needed funding, bonds would be issued, and that would affect the millage rate. He said that eventually the $200 million bond issue would be required, but the timing was dependent upon the rate at which projects would be ready to be implemented. He observed that the Board’s policy would determine when the bond issue would be required. Commissioner Diaz noted he agreed with Commissioner Bell that more clarification was needed in order to determine when these bonds would be issued in the future. Mayor Gimenez reiterated that this was a fluid process, rather than a set one. He explained that efforts were made to provide close estimates, but the impact of accelerating projects could not be determined until later; therefore, it was difficult to quantify the exact financial impact. Mayor Gimenez noted a million dollar bond issue would not be necessary for the time being, but once that amount of bonds were issued it would take care not only of the accelerated projects but would provide funding for other projects. Commissioner Bell noted there was a list of projects that would be prioritized according to what was shovel-ready. She said she understood that these projects were in flux, because what was funded today would perhaps not be built until a year later. She stated that she would support the item, but she noted the Board members were setting a policy when they were voting in favor of these projects; therefore, each project should be handled carefully. She noted she was satisfied that this item was within the FY 2011-12 Budget, but the entire process should be treated very seriously, because it involved the County’s debt. She stated that the commissioners should be cognizant of the fact that after projects were accelerated those dollars were committed and consequently other projects may be affected. Commissioner Souto noted he did not oppose the construction of the Carver Theatre, but he was informed by staff that the Tropical Park Cultural Center (TPCC) project that was approved by the voters in a referendum could not be funded in advance, but had to be shovel-ready, must be revenue-neutral, or the revenue had to exceed the cost to operate. He said he understood that the Carver Theatre project did not satisfy these requirements either, and if it was approved, the TPCC project should be approved as well. Mayor Gimenez indicated that the reason the TPCC was not included in the 2011 project list was because the project was not shovel-ready; however, funding would be available upon its readiness, which was estimated for the third quarter of 2012. Commissioner Moss pointed out that the list of projects had not been approved by the Board at this time. He expressed concern regarding the community-related projects that he and the residents wanted to see completed and he did not want those projects jeopardized because of this list. Therefore, a balance was required and the Board needed to determine priorities by adjusting the list that the Mayor had presented. Referring to the bond issue, Commissioner Moss noted he thought this program would be used to cash-flow the projects that were shovel-ready, which should be funded to move forward. He said the projects that were not ready should be delayed until the following year, as a means to ensure that the process was not cash-strapped. He stressed the urgency for the Board to consider this list because the Board members’ decisions regarding these projects would determine what would be funded through the GOB Program. In response to Commissioner Monestime’s question as to whether the $200 million commercial paper program was still being considered, Mayor Gimenez noted the $200 million commercial paper program was included in the calculations that were presented and was part of the recommendations. Referring to Commissioner Moss’ comments, Mayor Gimenez noted he agreed that the Board had to determine which projects in the list were priorities and which should be funded first. He noted based on the Board’s decisions there would be a determination as to whether there had to be another bond issue. Mayor Gimenez noted in the past the Board’s decision to issue bonds was not informed by the consequences of that decision, and he was trying to provide this type of information pro-actively. Commissioner Monestime noted he appreciated receiving these memoranda with the Mayor’s recommendations for the pending projects, but he was concerned that the recommendations created unnecessary debates. He pointed out that the current item pertained to a $2 million project to be implemented in Commissioner Edmonson’s district; yet, the discussion was in relation to the $200 million paper program, and the Carver Theatre project would only represent one percent of the entire amount. Discussion ensued between Commissioner Monestime and the Mayor regarding the latter’s responsibility to provide regular updates on the projects, and the need for this Board to review the recommended list of projects to determine whether it would increase the millage rate. Commissioner Jordan said that a number of projects were identified and approved by the Board to be included in the FY 2011-12, 2012-12, and 2013-14 County Budgets, and expressed concern about an onslaught because all Board members had projects that they wanted to be accelerated. She noted she was also concerned about criteria that she believed had not been clearly articulated regarding which projects were shovel-ready. Commissioner Jordan asked whether shovel-ready meant that a project must start within a certain timeframe, because in the past projects were said to be ready but were delayed for two years. She reiterated that all Board members had extremely important projects to be accelerated. Therefore, she suggested that staff present to the Board members a more definitive meaning of a shovel-ready project. For example, Commissioner Jordan suggested, staff could present to the Board members a list of the projects that were proposed for FY 2011-12, including whether they were fully funded and ready to break ground. Ms. Jennifer Glazer-Moon explained how staff reached their decisions regarding which projects to include in the FY 2011-12 Budget. She noted many projects were started last year because the millage rate was increased. Therefore, when staff members were informed of the policy to reduce the millage rate, they re-evaluated all of the projects. She explained that staff only kept in the FY 2011-12 Budget those projects had already started, as the County had legal obligations to continue paying on those contracts and to keep the projects going. Ms. Glazer-Moon acknowledged that the Board members received a large amount of information the week of the second budget hearing, but she explained that the report on the GOB provided at the previous commission meeting had an attachment C, which contained the entire list of projects for FY 2011-12, including the status of their contracts, whether they had broken ground, and their anticipated completion date. However, she noted, the missing element was the Board members’ final decision regarding these projects. Referring to the last paragraph of the first page of the memorandum indicating that $265 million was projected to be available this year, Ms. Glazer-Moon noted this amount was used to budget these projects. She said this amount took into account the cash on hand because of debt already issued and the fact that the Administration could spend $10-$12 million per month if the scheduled projects continued. In the event more cash was needed, it would be generated from the commercial paper program, noted Ms. Glazer-Moon. However, in that program once money was taken out, payment of a debt cost was initiated; that cost was lower than doing a major issuance and the interest rate was lower, but it did not provide $200-$400 million at once to spend on projects, pointed out Ms. Glazer-Moon. She noted this was the reason why it was important to look at the debt cost, even though it was more complicated than the operating budget. She said that currently the County had $265 million to spend on these projects; staff knew how much the budget would be next year; and based on that information, a schedule was put together that would not increase the millage rate above 0.285. Commissioner Jordan noted the Board members should have had this conversation before identifying projects, and should have agreed on the criteria to determine if projects were shovel-ready. She said it was unfortunate that contracts were issued and funds were obligated on projects that were not shovel-ready. Ms. Glazer-Moon clarified that all of these projects had started; the contracts were issued, but if it was a design project, most likely the construction had not yet started. She noted another part of this complicated process was the expectation that every project in the $2.9 billion plan could be implemented at the same time; however, the original schedule was meant to last 15 years because it was impossible for all the projects to be implemented at the same time. Commissioner Jordan pointed out the repeated discussions regarding the status of projects, and changes in the millage rate. She suggested that the Board members hold a workshop on this process to agree on a policy, finalize the list of projects, and limit these repeated discussions. Ms. Glazer-Moon noted the reason for those repeated discussions was because commissioners were proposing projects that were not included in the budget. She pointed out that every time commissioners sponsored a BBC item relating to a new project, they were amending the County budget, which involved moving funds from one year to another. Discussion ensued between Commissioner Jordan and Ms. Glazer-Moon regarding the impact of adopting new projects which were not previously included in the budget, as this had financial repercussions on the projects that were already in the budget. Commissioner Jordan recommended that a workshop be conducted as a mechanism to allow the Board to develop an outline status of all the projects and to determine the impact of new projects included in the budget. Commissioner Diaz said that this process could be likened to a bank account with the signatures of the 13 Board members who each wanted some of the funds for their districts. He noted he agreed with Ms. Glazer-Moon that this was a difficult process because some projects took longer than anticipated due to unforeseen reasons. Therefore, the faster these projects were completed the greater the chance of new projects to be implemented. Commissioner Sosa asked that a list of the pending projects, sorted according to district, be prepared and provided to the Board members to facilitate their decision-making until a workshop could be conducted. Vice Chairwoman Edmonson noted she would ask the Chair to conduct a workshop regarding the process of allocating funds for projects approved in the General Obligation Bond program and the impact of new projects on those previously approved by the Board. She pointed out that half of the cost of the project under consideration had been included in the 2011-12 budget; however, the cost to continue the project had not been included in the 2012-13 budget, but rather in the 2013-14 budget. Therefore, she was requesting that the funds approved for FY 2013-14 be accelerated to FY 2012-13. Commissioner Edmonson also asked the Budget Director to clarify the timeframe for completing these projects. Hearing no further questions or comments the Board proceeded to vote on the foregoing proposed resonlution as amended to include a recital clause that would provide: “As required by Section 2-1803 of the Miami-Dade Code, and Implementing Order 3-47, the Building Better Communities Citizens’ Advisory Committee at its August 2011 meeting recommended the use of surplus funds to accelerate funding of the Transit Village Theatre. The Fiscal Year (FY) 2011-2012 Approved Budget included funding for the Carver Theatre as of FY 2011-12 equal to $2,560.000. Therefore, all references to the acceleration amount of $1.3 million should instead be $2,560,000 so as to be consistent with the approved budget. Accordingly, any references to the balance of the $5 million allocation shall be revised to $2,440,000.

Legislative Text

TITLE
RESOLUTION APPROVING DELETION OF BUILDING BETTER COMMUNITIES GENERAL OBLIGATION BOND PROGRAM PROJECT NO. 333 - �CARVER THEATRE�, AS IDENTIFIED IN APPENDIX A TO RESOLUTION NO. R-919-04 AND APPROVING ADDITION OF NEW PROJECT NO. 333.1 - �NW 7TH AVENUE TRANSIT VILLAGE THEATER/CULTURAL CENTER� TO APPENDIX A TO RESOLUTION NO. R-919-04, AFTER PUBLIC HEARING; APPROVING DELETION OF PROJECT NO. 333 FROM AND ADDITION OF PROJECT NO. 333.1 TO APPENDIX A TO RESOLUTION NO. R-134-11; WAIVING REQUIREMENTS OF IMPLEMENTING ORDER 3-47 REGARDING ADDING NEW PROJECTS; APPROVING ACCELERATION OF BUILDING BETTER COMMUNITIES GENERAL OBLIGATION BOND FUNDING FOR PROJECT NO. 333.1; DIRECTING COUNTY MAYOR OR COUNTY MAYOR�S DESIGNEE TO LIST PROJECT NO. 333.1 AS ELIGIBLE FOR FUNDING IN NEXT BUILDING BETTER COMMUNITIES GENERAL OBLIGATION PROGRAM FINANCING AND TO FUND FROM SUCH PROCEEDS BALANCE OF TOTAL ALLOCATION; REQUIRING BOARD APPROVAL FOR ANY ADJUSTMENTS TO SUCH FUNDING, INCLUDING CASH FLOW REVISIONS; AND DIRECTING COUNTY MAYOR OR MAYOR�S DESIGNEE TO NEGOTIATE NECESSARY AGREEMENTS REGARDING PROJECT NO. 333.1 AND TO PRESENT SUCH AGREEMENTS TO THE BOARD FOR ITS CONSIDERATION

BODY
WHEREAS, Appendix A to Resolution No. 919-04 (the �Cultural Facilities Resolution�), lists projects eligible for funding from the Building Better Communities General Obligation Bond Program (the �BBC GOB Program�) by project number, municipal project location, BCC district, project name, project description, street address, and project funding allocation; and
WHEREAS, one of the projects listed in Appendix A to the Cultural Facilities Resolution and approved by the voters for funding is Project No. 333 � �Carver Theatre� (�Project No. 333�), a Countywide project located in the City of Miami with a Street Address listed as �6016-6042 N.W. 7th Avenue� with an allocation equal to $5,000,000 and a project description that states: �Purchase and renovate the Carver Theatre�; and
WHEREAS, all additions, deletions and significant modifications to individual projects or to Appendix A to the Cultural Facilities Resolution require a majority vote of the Board after a public hearing; and
WHEREAS, in August 2010, the County issued Request for Qualifications No. 743 (�RFQ No. 743�) to solicit proposals from interested developers for the development, design, construction and operation of a multi-story, mixed-use project on a parcel of County-owned land located at the northern portion of the block bounded on the west side by N.W. 7th Avenue and on the north side by N.W. 62nd Street, which development would include a transit hub, affordable housing, retail, a local theater, and parking (the �Transit Village Development Project�); and
WHEREAS, the Carver Theatre, located across the street from the Transit Village Development Project, has hardly been used in the last ten years, is currently closed and requires major renovation; and
WHEREAS, the Carver Theatre is in need of extensive rehabilitation to convert it to a viable cultural facility and the cost to acquire and renovate the Carver Theatre is in excess of the BBC GOB Program funds allocated to the project; and
WHEREAS, rather than restoration of the Carver Theatre, which is old and outdated, it was contemplated the Transit Village Development Project would include a local �black box� type theater to replace the Carver Theatre as well as a studio and gallery space for the visual arts so as to continue to give the community an outlet for local cultural events and serve as community meeting space (the �Transit Village Theater and Cultural Center�); and
WHEREAS, RFQ No. 743 identified BBC GOB Program bond proceeds in an amount equal to $5 million as a funding source for the new proposed Transit Village Theater and Cultural Center, conditioned upon approval of this Resolution deleting the Project No. 333 and reallocating those funds to the new Project No. 333.1; and
WHEREAS, as required by RFQ No. 743, the selected developer, Carlisle Development Group, LLC (the �Developer�), developed and proposed a management and operation plan for the new proposed Transit Village Theater and Cultural Center; and
WHEREAS, pursuant to the terms of the Lease Agreement by and between the County and Developer, the County�s award of funding from the BBC GOB Program to the Developer in an amount not less than $5,000,000 is a condition precedent to the Developer�s obligation to construct the Transit Village Theater and Cultural Center; and
WHEREAS, this Board wishes to approve the deletion of Project No. 333 � �Carver Theatre� and the addition of a new Project No. 333.1 - �NW 7TH Avenue Transit Village Theater/Cultural Center� to Appendix A to Resolution Nos. R-919-04 and R-134-11 and the requested $2.56 million acceleration of BBC GOB Program funding for the purpose of funding the design and a portion of the construction of the Transit Village Theater and Cultural Center; and
WHEREAS, the Board wishes to direct the County Mayor or the Mayor�s designee to negotiate the necessary agreements by and between the County and the Developer regarding the funding of Project No. 333.1, including any necessary amendments to the Lease and recordation of a Restrictive Covenant, and to present such agreements to the Board for its consideration prior to disbursement of any BBC GOB Program funds; and
WHEREAS, as required by Section 2-1803 of the Code of Miami-Dade County, Florida and Implementing Order No. 3-47, the Building Better Communities Citizens� Advisory Committee at its August meeting recommended the use of surplus funds to accelerate funding of the Transit Village Theater and Cultural Center,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that:
Section 1. The foregoing recitals are incorporated in this resolution and are approved.
Section 2. This Board hereby approves the deletion of Project No. 333 � �Carver Theatre,� identified in Appendix A to Resolution No. R-919-04, after a public hearing.
Section 3. This Board hereby approves the addition of Project No. 333.1 - �Transit Village Theater/Cultural Center� to Appendix A to Resolution No. R-919-04, after a public hearing, as a Countywide project with a Municipal Project Location of Miami, a Project Description that reads as follows: �Develop a theater and cultural center complex to include a �black box� theater and associated parking,� an Allocation of $5 million, and a Street Address of NW 7th Avenue and NW 62nd Street.
Section 4. This Board hereby approves the deletion of BBC GOB Program Project No. 333 and the addition of new BBC GOB Program Project No. 333.1 to Appendix A to Resolution No. R-134-11, the waiver of Implementing Order 3-47 regarding adding new projects to the BBC GOB Program, and the acceleration of $2.56 million of BBC GOB Program funding for Project No. 333.1 to fund the design and engineering phase of such project, as well as a portion of the construction. The County Mayor or the County Mayor�s designee is hereby directed to list Project No. 333.1 as a project eligible for funding and to fund the remaining $2.44 million of Project No. 333.1�s Total Allocation from the next BBC GOB Program financing. The County Mayor and the County Mayor�s designee is directed to not make any adjustments to Project No. 333.1�s BBC GOB Program funding for any reason, including cash flow revisions authorized by Implementing Order No. 3-47, without this Board�s prior approval.
Section 5. The County Mayor or the County Mayor�s designee hereby directed to negotiate the necessary agreements by and between the County and the Developer regarding the funding of Project No. 333.1, including any necessary amendments to the Lease and recordation of a Restrictive Covenant, and to present such agreements to the Board for its consideration within ninety (90) days from the effective date of this resolution; provided, however, if the County Mayor or Mayor�s designee is unable to successfully negotiate the terms of such agreements within the requisite time period, a report detailing the status of the project shall be presented to this Board instead. The disbursement of BBC GOB Program Project No. 333.1 is conditioned upon prior approval and execution of all such necessary agreements.