File Number: 121136
|Printable PDF Format|
|File Number: 121136||File Type: Resolution||Status: Amended|
|Version: 0||Reference:||Control: Board of County Commissioners|
|Requester: NONE||Cost:||Final Action:|
|Sunset Provision: No||Effective Date:||Expiration Date:|
|Registered Lobbyist:||None Listed|
|Acting Body||Date||Agenda Item||Action||Sent To||Due Date||Returned||Pass/Fail|
|Board of County Commissioners||6/19/2012||11A7||Amended|
|REPORT:||See Agenda item 11A7 Amended: Legistar File No. 121260.|
|County Attorney||6/4/2012||Referred||Internal Mgmt. & Fiscal Responsibility Committee|
|County Attorney||6/4/2012||Assigned||Gerald T. Heffernan|
RESOLUTION AUTHORIZING ISSUANCE BY THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY OF ITS TAX INCREMENT REVENUE BONDS, SERIES 2012 IN ONE OR MORE SERIES IN AN AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $50,000,000 FOR PURPOSES OF FINANCING ELIGIBLE COMMUNITY REDEVELOPMENT PROJECTS, FUNDING ANY NECESSARY RESERVES AND PAYING COSTS OF ISSUANCE OF SUCH BONDS; APPROVING THE FORM OF A BOND RESOLUTION; AND PROVIDING SEVERABILITY
WHEREAS, pursuant to Part III, Chapter 163, Florida Statutes (the "Redevelopment Act"), there was created by actions of Miami-Dade County, Florida (the "County") and the City of Miami, Florida (the "City") the Southeast Overtown/Park West Community Redevelopment Agency (the "Agency") for a designated community redevelopment area within the limits of the City ("Redevelopment Area"); and
WHEREAS, with respect to the Agency, this Board and the City Commission of the City (the "City Commission"), under the Redevelopment Act, have held all public hearings and under the Redevelopment Act, have (i) designated the Redevelopment Area as a slum or blighted area; (ii) adopted the community redevelopment plan (the "Redevelopment Plan") for the Redevelopment Area which was amended in 2009, and (iii) created a Redevelopment Trust Fund for the administration of the Agency and the Redevelopment Area; and
WHEREAS, the City and the County entered into an Interlocal Cooperation Agreement dated March 31, 1983, as amended, including, without limitation, by Amendments to Interlocal Cooperation Agreement dated November 15, 1990, as further amended by Amendment to 1983 Interlocal Cooperation Agreement dated January 22, 2010 (collectively, the "Interlocal Agreement"), which provided that the City was authorized to incur debt subject to the prior approval of such debt and all related documents by this Board, to finance capital projects located within the Redevelopment Area and secured by tax increment revenues; and
WHEREAS, the City adopted Resolution No. R-12-0197 on May 10, 2012 in which the City delegated the authority to the Agency to issue and sell bonds with respect to the 2012 Agency Debt in an amount not to exceed $50,000,000 secured solely by a pledge of legally available tax increment revenues of the Agency for the purposes of funding the capital projects described in Exhibit A hereto located within the Redevelopment Area (the "Agency Projects"), provided the Agency be solely responsible for the repayment of all the bonds and any required primary and secondary disclosure requirements; and
WHEREAS, the Agency adopted Resolution No. CRA-R-12-0028 on April 30, 2012 expressing its intent to incur debt in an aggregate principal amount not to exceed $50,000,000 ("2012 Agency Debt") secured by tax increment revenues of the Agency, subject to the prior approval of this Board and the City, (i) to fund the Agency Projects, (ii) to fund a reserve fund, if necessary, and (iv) to pay costs of issuance of the 2012 Agency Debt; and
WHEREAS, it is necessary, desirable and in the best interests of the citizens of the County and in particular, the Redevelopment Area, that this Board approves the issuance by the Agency of its 2012 Agency Debt, in one more series and the form of the related Bond Resolution (as defined herein) pursuant to the Interlocal Agreement and the provisions of Part III of Chapter 163, Florida Statutes; Chapter 125, Florida Statutes and other applicable provisions of law,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS FOR MIAMI-DADE COUNTY, FLORIDA, that
Section 1. Pursuant to Section 163.358(3), Florida Statutes and the Interlocal Agreement, this Board approves the issuance and sale by the Agency of its 2012 Agency Debt (the Agency's Tax Increment Revenue Bond, Series 2012) in a principal amount not to exceed $50,000,000 for the purpose of financing the Agency Projects, funding any necessary reserves and paying the costs of issuing the Series 2012 Bonds. The County agrees not to rescind its obligation to continue to appropriate Tax Increment Revenues (as defined in the Bond Resolution) annually to the Agency in accordance with the Interlocal Agreement and to continue to make such appropriations until the earlier of (i) the date on which Bonds or Subordinated Indebtedness (as such terms are defined in the Bond Resolution) are no longer outstanding under the Bond Resolution; or (ii) March 31, 2030.
Section 2. The Agency Projects set forth in Exhibit A hereto are approved for financing from the proceeds of the 2012 Agency Debt.
Section 3. The master Bond Resolution is approved in substantially the form attached as Exhibit B to this Resolution (the "Bond Resolution"). The details of the 2012 Agency Debt, including the interest rates, whether tax-exempt or taxable, and whether issued in one or more series shall be approved by the Agency in a resolution supplemental to the Bond Resolution prior to the issuance of 2012 Agency Debt, provided, however, in no event shall (i) the principal amount of the 2012 Agency Debt exceed $50,000,000; and (iii) the maturity of the 2012 Agency Debt be later than March 31, 2030.
Section 4. The 2012 Agency Debt shall not be, and shall not be deemed to constitute, a debt, liability, or obligations of the County, the State, or any other political subdivision of each (other than the Agency), nor a pledge of the faith and credit of the County, the State, or any other political subdivision but shall be payable solely from the legally available tax increment revenues of the Agency as specifically pledged for such 2012 Agency Debt. Neither the County, the State, nor any other political subdivision of each (other than the Agency) shall be obligated to pay the 2012 Agency Debt or any interest or premium thereon and neither the faith and credit nor the taxing power of the County, the State or other political subdivision of each, is pledged to the payment of the principal of, interest on or premium on any of the 2012 Agency Debt. The issuance of the 2012 Agency Debt shall not directly, indirectly, or contingently obligate the County, the State, or any other subdivision of each to levy or pledge any form of taxation whatsoever for the payment of the 2012 Agency Debt.
Section 5. If any one or more provisions of this resolution should be contrary to law or invalid or ineffective for any reason, such provision shall be deemed severable from, and shall not affect the validity of, the remaining provisions of this resolution.
To: Honorable Chairman Joe A. Martinez
and Members, Board of County Commissioners
From: Carlos A. Gimenez
Subject: Southeast Overtown/Park West Community Redevelopment Agency Bond Issuance
It is recommended that the Board of County Commissioners (Board) adopt the attached resolution approving the Southeast Overtown/Park West Community Redevelopment Agency’s (Agency’s) bond issuance of $50 million for the Southeast Overtown/Park West Community Redevelopment Area (Area). The bond issuance will fund certain projects within the Area, and the bond will not be issued beyond the current sunset date of March 31, 2030.
Scope of Agenda Item
This resolution approves the Agency’s request to issue bonds not to exceed $50 million for the projects listed in the attachment. The Area lies within County Commission Districts 3 and 5.
Fiscal Impact / Funding Source
The Agency’s debt shall not be, and shall not be deemed to constitute, a debt, liability, or obligations of the County, the State, or any other political subdivision of each (other than the Agency), nor a pledge of the faith and credit of the County, the State, or any other political subdivision but shall be payable solely from the legally available tax increment revenues of the Agency.
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. This bond issuance will not have any additional impact to the County beyond the County’s annual payment of TIF revenues to the Agency’s trust fund.
The County will continue to make annual payments to the Agency, 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 Agency will sunset.
Track Record / Monitor
This resolution does not provide for contracting with any specific entity. The resolution approves the Agency’s bond issuance.
On January 20, 1981, the Board approved the establishment of the Agency when it declared the Area to be slum and blighted pursuant to Resolution R-39-81. The Board approved the Agency’s Community Redevelopment Plan (Plan) pursuant to 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 Agency was approved by the Board on March 31, 1983, granting the Agency certain redevelopment powers.
On December 31, 2007, the County, City and Agency entered into an agreement to consider the expansion of the Area and extend the life of the Agency. Additionally the agreement listed certain projects in the redevelopment area that beginning 2017, 45 percent of the TIF revenue payments paid into the Trust Fund associated with these projects would be remitted to the County and City in the same proportion that the funds were deposited.
On July 21, 2009, the BCC approved amendments to the Agency’s Finding of Necessity (R-1038-09) and Plan (R-1039-09) to expand the area and extend the life of the Agency until March 31, 2030. As part of the item approving the amended Plan, the County, City and Agency entered into an amendment to the interlocal agreement to fund three projects, Camillus House, Alonso Morning Charities, Inc. and The World Literacy Crusade of Florida Inc. The Alonso Morning Charities, Inc. project (Culmer Center Housing Development) will be funded through this bond issuance, as noted below. The World Literacy Crusade of Florida, Inc. is not ready to be funded at this time. The Camillus House project is currently receiving pay-as-you-go funding for the initial $10 million needed for phase one of the project. The Board approved the Agency’s annual budget-to-appropriate action when it approved the Agency’s budget on July 7, 2011 (R-535-11).
The Agency and the City are requesting that the County approve a bond issuance not to exceed $50 million to fund the following projects:
• Lyric Place - $10 million – to help fund a mixed use development of which phase 1 consists of 90 to 100 affordable units and 5,000 square feet of storefront retail. Phase 2 of the project (of which no funding is provided) will include 90 to 120 residential units and tot lots, fitness center, library and a wide array of programs.
• Lyric Place - $3 million – to fund a portion of a 300 space parking garage. The entire project consist of between 27,000 to 35,000 square feet of retail and a 300 space parking garage of which 250 spaces will be available to the public.
• St. John Overtown Plaza - $10 million – to help fund a mixed use development to include 112 residential rental units and approximately 30,000 square feet of commercial retail, restaurant, office, community center and day care facility.
• Island Living - $8 million – to partially fund a mixed use development to include between 60 to 80 residential units and 5,000 square feet of retail.
• Culmer Center Housing Development (Alonso Morning Charities, Inc.) - $7.5 million – to partially fund Phase 1 of the project inclusive of 75 residential units, fitness room, computer center and a multi-purpose room for resident programs.
• Town Park - $15 million – to fund the rehabilitation of three separate sub-communities built in the 1970s known as Town Park Village, Town Park Plaza South and Town Park Plaza North with over 57 buildings and 435 units.
Although the total project funding above exceeds $50 million; this item only authorizes to issue debt in a principal amount not to exceed $50 million as requested by the Agency.
As the Board has been previously informed, $20 million in funding for the Camillus House project ($10 million each from the County and City), was to be funded through the Agency. As noted above, the first $10 million is funded to fulfill the City’s obligation, but there is an additional $10 million needed by Camillus House to complete the funding for phase two of the project. It is the County’s intention to fund its obligation to Camillus House through the use of countywide TIF revenue payments from the Agency as noted in a supplemental report to the Board on October 5, 2010. Once this bond has been issued, the Agency will be responsible for the associated payments and operating expenses, any payments for phase two of the Camillus House project would need to be made after these commitments are satisfied.
The Tax Increment Financing and Coordinating Committee reviewed the Agency’s request on May 30, 2012 and recommended that the bond issuance be approved and the additional Camillus House funding be a future obligation of the Agency.
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