File Number: 121310
|Printable PDF Format Clerk's Official Copy|
|File Number: 121310||File Type: Resolution||Status: Adopted|
|Version: 0||Reference: R-622-12||Control: Board of County Commissioners|
|Requester: Finance Department||Cost:||Final Action: 7/3/2012|
|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||7/3/2012||14A3||Adopted||P|
|Office of the Chairperson||7/2/2012||Additions||7/3/2012|
|County Attorney||6/26/2012||Assigned||Gerald T. Heffernan||6/27/2012|
|County Mayor||6/26/2012||Assigned||County Attorney||9/4/2012|
|REPORT:||Finance - Gerald Heffernan assisted - pending cmte - Attachment: First Amendment To Interlocal Agreement - Note: Waiver request to 7/3 BCC|
|County Mayor||6/26/2012||Assigned||Ed Marquez||6/26/2012|
RESOLUTION APPROVING FIRST AMENDMENT TO INTERLOCAL AGREEMENT BETWEEN MIAMI-DADE COUNTY AND CITY OF MIAMI REGARDING ANNUAL DISTRIBUTION OF CONVENTION DEVELOPMENT TAX PROCEEDS; AUTHORIZING COUNTY MAYOR OR COUNTY MAYOR’S DESIGNEE TO EXECUTE AND DELIVER FIRST AMENDMENT; AND APPROVING ANNUAL GRANT BY OMNI COMMUNITY REDEVELOPMENT DISTRICT TO CITY OF MIAMI FROM LEGALLY AVAILABLE CRA REVENUES IN CONNECTION WITH CERTAIN CITY BONDS
WHEREAS, Miami-Dade County (“County”) and the City of Miami (“City”) entered into an Interlocal Agreement dated July 1, 2009 (“Interlocal”) with respect to the distribution by the County of the convention development tax (“CDT”) levied at the rate of three percent of the total consideration charged for leasing or letting transient rental accommodations within the County’s boundaries (“CDT Receipts”) pursuant to Section 212.0305(4)(b), Florida Statutes, Section 29-60 of the Code of Metropolitan Dade County, Florida, and Ordinance No. 83-91 enacted by the Board of County Commissioners of Miami-Dade County (the “Board”) on June 5, 1984; and
WHEREAS, the County has pledged the CDT Receipts to certain County bonds (“County CDT Bonds”) and eligible projects, as set forth in Exhibit “A” to the Interlocal, which have priority over any future disposition or use of the CDT Receipts (“County Obligations”); and
WHEREAS, pursuant to the Interlocal, the County distributes, after the County satisfies all of its County Obligations, available CDT Receipts to the City in increasing amounts beginning with $2 million annually in 2009, $3 million annually from 2010 to 2015, $4 million annually from 2016 to 2020, $5 million annually from 2021 to 2025, $6 million annually from 2026 to 2030, and $8 million annually from 2031 to 2038, from CDT Receipts (“Interlocal Payments”); and
WHEREAS, Exhibit “A” to the Interlocal has no provision that allows the County to refinance the County CDT Bonds to achieve an interest cost savings; and
WHEREAS, the County and City wish to enter into a First Amendment to the Interlocal Agreement to amend Exhibit “A” to permit the refunding of the County CDT Bonds as a prior County Obligation in order to reduce the amount of CDT Receipts that will be necessary to satisfy the County’s Obligations and increase the CDT Receipts available to the County to make the Interlocal Payments to the City; and
WHEREAS, this Board wishes to authorize the County Mayor or County Mayor’s designee (“County Mayor”) to execute and deliver a First Amendment to the Interlocal Agreement; and
WHEREAS, in consideration of the City’s agreement to amend the Interlocal, the Board wishes to approve an annual grant by the Omni Redevelopment District to the City from legally available CRA revenues in amount equal to debt service on certain City bonds/debt to be issued to fund the City’s financial obligation with respect to the Tunnel project,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that
Section 1. The First Amendment to the Interlocal Agreement in the form attached as Attachment 1 to this Resolution is approved and its execution and delivery by the County Mayor on behalf of the County is authorized and approved.
Section 2. The Board approves an annual grant from Fiscal Year 2012 through Fiscal Year 2030 by the Omni Community Redevelopment Agency (“CRA”) to the City from legally available CRA revenues in an amount equal to the principal and interest due annually on bonds/debt issued by the City to fund its $50,000,000 contribution to the Tunnel project pursuant to the “Interlocal Agreement Between The City of Miami, Miami-Dade County, Southeast Overtown Park West CRA and Omni CRA to Provide Funding for Major Projects for the Benefit of All Parties” (referred to as the Global Agreement) dated December 31, 2007. The grant shall be subordinate to the CRAs’ annual payment to the County pursuant to the “First Amendment to Interlocal Cooperation Agreement dated June 24, 1996 by and among Miami-Dade County, the City of Miami and the Community Redevelopment Agency for the Omni District”.
To: Honorable Chairman Joe A. Martinez
and Members, Board of County Commissioners
From: Carlos A. Gimenez
Subject: Resolution Authorizing First Amendment to 2009 Interlocal Agreement between Miami-Dade County
and the City of Miami and Approving Grant from Omni Community Redevelopment Agency to City of Miami
It is recommended that the Board of County Commissioners (Board) approve the accompanying resolution, which: 1) authorizes a first amendment (First Amendment) to the 2009 Interlocal Agreement, dated July 1, 2009 between Miami-Dade County (County) and the City of Miami (City) regarding the annual distribution of Convention Development Tax (CDT) proceeds to the City; further authorizes the County Mayor or County Mayor’s designee to execute and deliver this First Amendment; and 2) approves an annual grant from the Omni Community Redevelopment Agency (Agency) to the City from legally available Agency revenues in connection with certain City bond obligations.
The overall impact of this resolution is Countywide.
Fiscal Impact/Funding Source
The attached First Amendment has a positive fiscal impact on the amount of available CDT receipts. It will allow for the future refunding of existing County special obligation bonds backed by CDT receipts by amending Exhibit A to the 2009 Interlocal Agreement. The refunding will reduce the cost of County debt service obligations on the refunded bonds, thereby increasing available CDT receipts for existing County obligations and any lawful purpose. The refunding of the special obligation bonds backed by CDT receipts is a separate action that will be brought to the Board in the near future. The refunding of the CDT bonds to reduce debt service costs will not extend the life of the CDT bonds.
There are no other changes to the 2009 Interlocal Agreement, including the amount of CDT payments to the City. In addition, the approval of a grant by the Agency to the City will have no fiscal impact on the County because the grant is subordinate to the Agency’s annual payment to the County.
The current resolution essentially authorizes two actions:
1) It amends a 2009 Interlocal Agreement between the County and the City to allow the refunding of County bonds that are paid for by Convention Development Taxes in order for the County to lower its interest costs and save money; and
2) It approves an annual grant from the Agency to the City, after all annual payments to the County are made, so that the City can fulfill its obligation to fund a portion of the Port of Miami Tunnel Project as contemplated by the 2007 “Global” Agreement.
A more technical description follows.
Pursuant to Section 212.0305(4)(b), Florida Statutes, Section 29-60 of the Code of Miami-Dade County, Florida, and Ordinance No. 83-91 enacted by the Board on June 5, 1984 (collectively, the Authorization), the County imposes a levy on the exercise within its boundaries (exclusive of the municipalities of Bal Harbor and Surfside) of the taxable privilege of leasing or letting transient rental accommodations at the rate of three percent of the total consideration charged for such accommodations (Convention Development Tax or CDT) and has the discretion to determine the use of the CDT receipts. The Authorization provides that one-third of the CDT receipts are required to be used for eligible projects in the most populous municipality in the County, which is the City.
Pursuant to Resolution R-319-09 approved by the Board on March 23, 2009, the then existing Interlocal Cooperation Agreement between the County, the City and the Miami Sports and Exhibition Authority was terminated. The 2009 Interlocal Agreement was concurrently approved at the same Board meeting. As part of the 2009 Interlocal Agreement, a schedule of CDT receipts to be paid by the County to the City (Current Share) was approved as set forth in Exhibit B. The Current Share is to be paid after the list of specific items identified in Exhibit A of the 2009 Interlocal Agreement including outstanding County CDT Bonds, the CDT Bonds contemplated to be issued at the time for the Ballpark Stadium project and other obligations of the County.
This First Amendment does not revise the 2009 Interlocal Agreement in any way except to replace the existing Exhibit A with one that allows the County to refund any of its bonds listed in Exhibit A provided there is an interest cost savings. The resolution approves the First Amendment and authorizes the County Mayor or the County Mayor’s designee to execute it on behalf of the County. The City Commission is expected to consider a similar resolution at a meeting in July.
In fulfillment of objectives set forth in the “Interlocal Agreement Between The City of Miami, Miami-Dade County, Southeast Overtown Park West CRA and Omni CRA to Provide Funding for Major Projects for the Benefit of All Parties” (referred to as the Global Agreement) dated December 31, 2007, the resolution approves an annual grant by the Omni Agency to the City from fiscal year 2012 through fiscal year 2030 in an amount equal to the annual principal and interest payments on bonds or debt issued by the City to fund the City’s $50 million contribution to the construction of the Port of Miami Tunnel. This annual grant payment is subordinate to the payment made by the Omni CRA to the County, which is pledged to the Series 1997A CDT Bonds or any bonds refunding the Series 1997A Bonds. This CRA payment to the County is currently $1.43 million plus 35 percent of the remaining increment. Effective March 31, 2013, the payment shall be $1.43 million per year or 35 percent of the total increment, whichever is greater.
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