TITLE
ORDINANCE AMENDING ORDINANCE 98-28 INCREASING THE APPROVED AMOUNT FOR A SECTION 108 PROGRAM LOAN UP TO $25,000,000, AUTHORIZING THE COUNTY MANAGER TO APPLY TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR A SECTION 108 PROGRAM LOAN FOR THE PURPOSE OF PROVIDING FINANCIAL ASSISTANCE FOR THE DEVELOPMENT OF THE PROPOSED PARROT JUNGLE FACILITY AT WATSON ISLAND; AUTHORIZING THE COUNTY MANAGER TO EXECUTE THE SECTION 108 LOAN APPLICATION AND OTHER REQUIRED DOCUMENTS; AMENDING THE COMMUNITY DEVELOPMENT BLOCK GRANT CONSOLIDATED PLAN, TO REFLECT THE SECTION 108 APPLICATION AND PROPOSED USE OF SUCH FUNDS; PROVIDING SEVERABILITY, INCLUSION IN THE CODE, AND AN EFFECTIVE DATE

BODY
WHEREAS, Miami-Dade County is desirous of promoting continued growth and development of the Miami-Dade County tourist and related industries; and

WHEREAS, these industries are major employers of low-and moderate-income resident of Miami-Dade County; and

WHEREAS, Parrot Jungle and Gardens ("Parrot Jungle") has been an indelible symbol of the Dade County Community in past 60 years; and

WHEREAS, the residential character of its present location in South Miami-Dade County prohibits any possibility of expanding the existing facility or introduction of new attractions, which deemed to be an essential component of the tourist destination and/or attraction industry; and

WHEREAS, Parrot Jungle was in the process of searching for an alternative location to expand its facilities and offer better services to the local residents and growing tourists population; and

WHEREAS, the City of Miami's ("City") issued a request for proposals for the development of a botanical garden attraction on an approximately 18.6 acres of a City-owned waterfront property at Watson Island; and

WHEREAS, Parrot Jungle's proposal for the development and operation of a botanical garden attraction at Watson Island ("Project") on a lease basis for a period of forty-five (45) years with the option to extend for one additional fifteen (15) year period was selected and adopted by the City; and

WHEREAS, the Project was approved by a majority of voters of the City at a referendum held November 7, 1995; and
WHEREAS, by Resolution 96-671, on September 26, 1996, the City formally approved a lease and development agreement with Parrot Jungle for the development and operation of the Project; and

WHEREAS, the Project and negotiated lease transaction was further considered and ratified by the Governor and Cabinet of the State of Florida sitting as the Board of Trustees for the Internal Improvement Trust on June 26, 1997; and

WHEREAS, redevelopment of Watson Island will be a major step toward vast improvement of this underutilized public asset and provide significant employment opportunities for the areas semi or low skilled individuals; and

WHEREAS, Parrot Jungle must invest over $7.3 million on infrastructure costs such as new roads, utilities, water lines, extensive landscaping, and repair and develop the environmentally sensitive waterfront land; and

WHEREAS, the estimated development cost of the new Parrot Jungle facility at Watson Island is currently estimated approximately at $47 million; and

WHEREAS, the proposed Project is anticipated to create 603 full-time jobs within the first ten years of its operation, of which approximately 482 (80 percent) will be for persons within the low-and very-low-income categories; and

WHEREAS, Watson Island is located within the boundaries of the City's Downtown Community Development Target Area, State of Florida Enterprise Zone, and the federally designated Miami-Dade County Enterprise Community Area; and

WHEREAS, the Project is an ideal private/public partnership in need of a Section 108 Loan Guarantee assistance for the purpose of providing economic opportunities for the members of surrounding impoverished neighborhoods and the physical improvements of Watson Island, as one of the most underutilized public assets in Miami-Dade County; and

WHEREAS, it is in the best interest of Miami-Dade County ("County") to attract or retain firms that create jobs and employment opportunities and that enhance the County's tax base and increase tax revenues; and

WHEREAS, in order to attract such firms to the County, it is necessary and in the public interest to offer certain incentives to these firms; and

WHEREAS, Community Development Block Grant ("CDBG") programs authorized under Title 1 of the Housing and Community Development Act of 1974, as amended ("HCDA"), and as provided in the regulations thereunder, 24 CFR Part 570 (the "CDBG Regulations"), including the Section 108 Loan Guarantee Program provided under Subpart M 24 CFR 570.700-570.710, of the CDBG Regulations (the "Section 108 Program"), have as their primary objective the development of viable urban communities by, among other things, providing expanding economic opportunities for persons of low-and moderate-income; and

WHEREAS, the United States Department of Housing and Urban Development ("HUD") is authorized pursuant to the Section 108 Program and the CDBG Regulations to guarantee loans to the County for the provision of assistance where necessary or appropriate to carry out economic development projects which meet the national objective of benefit to low-and moderate-income families, which, in the case of Parrot Jungle's economic development activities include the creation and/or retention for Section 108 purposes, during the first ten years of the term of the Section 108 Loan, of at least 600 of County-Induced Jobs (the "HUD 108 Jobs"), and at least 51 percent of the HUD 108 Jobs are or will be held by or made available to persons of low or moderate-income; and

WHEREAS, in Section 290.0411, Florida Statutes, the Florida Legislature declared that providing expanded economic opportunities for persons of low-and moderate-income is a state objective, and that community development activities to expand economic opportunities, providing direct benefit to persons of low-and moderate-income, are public purposes for which public money may be borrowed, expended, loaned and granted; and

WHEREAS, in Section 125.045, Florida Statutes, the Florida Legislature declared that the use of public funds toward the achievement of enhancing and expanding economic activity in the counties of the state by attracting and retaining business enterprises conducive to economic promotion, enhancing and preserving purchasing power and employment opportunities for state residents, and improving the welfare and competitive position of the state constitutes a public purpose.

WHEREAS, the Board has determined that the use of public funds to assist Parrot Jungle in connection with the Project at Watson Island will constitute a public purpose as described in Section 290.0411 and Section 125.045, Florida Statutes,

NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA THAT ORDINANCE 98-28 IS HEREBY AMENDED TO READ AS FOLLOWS:

Section 1. The HUD Section 108 Loan application is hereby approved in substantially the form attached hereto and incorporated herein by reference. The County Manager is hereby authorized to apply to the U.S. Department of Housing and Urban Development ("HUD") for a loan under the Section 108 Program (the "Section 108 Loan") in an amount not to exceed $21,000,000 $25,000,000 for the purpose of providing financial assistance for the development of a botanical garden attraction at Watson Island; and the County Manager shall act in connection with the Section 108 Application to provide such additional information or assurances to HUD as may be required; and the County Manager shall execute such documents as may be required in order to implement the Section 108 Application and issue debt obligations pursuant thereto.
Section 2. The approval of the Section 108 Loan application shall be contingent upon execution of a contract with the City of Miami ("City") which (1)provides that the County Section 108 Loan Guarantee shall be provided to Parrot Jungle only until such time as the City of Miami has a total CDBG Section 108 Loan capacity sufficient to substitute for at least 80% of the County's Section 108 guarantee, and provides for the County loan to be provided to Parrot Jungle only until such time as the State of Florida Financial Oversight Board overseeing the City is dissolved or four (4) years from the date of approval by HUD of the County's loan application, which ever comes first, and the City has determined that it can apply and substitute itself as a guarantor for a maximum of eighty percent (80%) of the County's loan guarantee ("Guarantee Replacement") provided that the County loan us current and no event of default is in existence under the County loan at such time as the Guarantee Replacement occurs, and (2)that at the time the capacity becomes available the City shall apply for a Section 108 Loan in the above amount to replace the County's loan, and until the time as the Guarantee Replacement occurs and in the event of a monetary default by Parrot Jungle under the terms of the County loan, the City's financial obligation in reducing the amount of said monetary default shall be to pay to the County a proportion of the amount owed by Parrot Jungle based upon the ratio between the amount of its lease payments to be paid to the City by Parrot Jungle as set forth in the Lease and Development Agreement between the City of Miami and Parrot Jungle and Gardens, Inc. dated September 2, 1997, exclusive of the City's payments to the Internal Improvement Trust Fund, and the amount the County shall receive from Parrot Jungle for the Miami-Dade Zoo Aviary, in no event shall the City's proportionate amount of the default payment exceed the Lease Payments, exclusive of the payments obligated to be made to the State of Florida Internal Improvement Trust Fund pursuant to the Partial Modification of Restrictions to Deed No. 19447 dated August 18, 1997, and (3)that the City will subordinate the lease payments due it from Parrot Jungle for the lease of the Watson Island site to the loan payments from Parrot Jungle to Dade County made in connection with the Section 108 Loan. the County's loan shall be expressly subject and subordinate to all condition and covenants of the Lease agreement and to the rights of the City in connection with Parrot Jungle's development of the project known as "Parrot Jungle's and Gardens of Watson Island".

Section 3. As a condition of submitting the Section 108 loan application, Parrot Jungle and Gardens, Inc. shall commit to provide funding in the amount of $100,000 per year for 20 years for the aviary at MetroZoo. Parrot Jungle's obligation to provide $100,000 per year for 20 years to the aviary shall not be contingent upon whether the City of Miami replaces Miami-Dade County under the Section 108 Loan guarantee.

Section 4. All jobs created by the Project pursuant to the Section 108 loan shall be made available to residents of all areas of Miami-Dade County.

Section 5. The County's Community Development Block Grant Consolidated Plan is hereby amended to reflect submission of the Section 108 Application proposed use of such funds.

Section 6. If any section, subsection, sentence, clause or provision of this ordinance is held invalid, the remainder of this ordinance shall not be affected by such invalidity.
Section 7. It is the intention of the Board of County Commissioners, and it is hereby ordained that the provisions of this ordinance, including any sunset provision, shall become and be made a part of the Code of Miami-Dade County, Florida. The sections of this ordinance may be renumbered or relettered to accomplish such intention, and the word "ordinance" may be changed to "section," "article," or other appropriate word.

Section 8. This ordinance shall become effective ten (10) days after the date of enactment unless vetoed by the Mayor, and if vetoed, shall become effective only upon an override by this Board.

Section 9. This ordinance does not contain a sunset provision.

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To: Honorable Chairperson and Members Date: June 2, 1998
Board of County Commissioners

From: M.R. Stierheim Subject: Section 108 Loan for
County Manager Parrot Jungle at Watson
Island

STAFF RECOMMENDATION
It is recommended that the Board adopt the attached Ordinance which amends Ordinance No. 98-28 to authorize the County Manager to apply for a U.S. Department of Housing and Urban Development Section 108 Loan in the amount of up to $25,000,000, for the purpose of providing financial assistance for the development of the proposed Parrot Jungle Facility at Watson Island. It is also recommended that the Board authorize the County Manager to execute the Section 108 Loan Application and other required documents and amend the Consolidated Plan to reflect the Section 108 Loan Application and proposed use of such funds.

MANAGER'S BACKGROUND
On February 3, 1998 the Board of County Commissioners adopted Ordinance No. 98-28 which (1) authorizes the County Manager to apply for a U.S. Department of Housing and Urban Development (USHUD) Section 108 Loan in the amount up to $21,000,000 for the purpose of providing financial assistance for the development of the proposed Parrot Jungle Facility at Watson Island and (2) authorizes the County Manager to execute the Section 108 Loan Application and other required documents and amend the Consolidated Plan to reflect the Section 108 Loan Application and proposed use of funds. The Ordinance the Board adopted established the following noted conditions:

Section 2. - indicates that Miami-Dade County is to enter into a contract with the City of Miami which (1) provides that the County Section 108 Loan Guarantee will be provided to Parrot Jungle only until such time as the City of Miami has a total CDBG Section 108 Loan capacity sufficient to substitute for at least 80% of the County's Section 108 guarantee, and (2) that at the time the capacity becomes available the City will apply for a Section 108 Loan in the above amount to replace the County's loan, and (3) that the City will subordinate the lease payments due it from Parrot Jungle for the lease of the Watson Island site to the loan payments from Parrot Jungle to the County made in connection with the Section 108 loan.

Section 3. - indicates that Parrot Jungle and Gardens, Inc. is required to provide funding in the amount of $100,000 per year for 20 years for the aviary at MetroZoo, and this obligation is not contingent upon whether the City of Miami replaces Miami-Dade County under the Section 108 Loan guarantee.

Section 4. - indicates that all jobs created by the project pursuant to the Section 108 loan will be made available to residents of all areas of Miami-Dade County.

Since February 3, 1998, Miami-Dade County has been negotiating with the City of Miami regarding the terms of a financial participation agreement relative to the Section 108 Loan. The submission to U.S. HUD of the Parrot Jungle Section 108 application is contingent on an agreement between the County and City of Miami being in place formalizing the terms of an agreement as have been agreed to by the Miami City Commission and which are being recommended for approval by the County Manager (See Attachment A).

The City of Miami approved on May l2, 1998 a Joint Participation Agreement pursuant to the County's request for City participation in this project. The agreement provides for the following:

1. The County Loan shall be provided to Parrot Jungle only until such time as the State of Florida Financial Oversight Board overseeing the City is dissolved or Four (4) years from the date of approval by HUD of the County's Loan application, whichever first occurs, and the City has determined that it can apply and substitute itself as a guarantor for a maximum of eighty per cent (80%) of the County's Loan guarantee ("Guarantee Replacement"); provided that the County Loan is current and no event of default is in existence under the County Loan at such time as the Guarantee Replacement occurs.

2. Pursuant to a Collateral Assignment of Lease Payments to be executed by and between the County, City, and Parrot Jungle, until such time as the as the Guarantee Replacement occurs, in the event of a monetary default ("Default") by Parrot Jungle under the terms of the County Loan, the City's financial obligation in reducing the amount of said Default shall be to pay to the County a proportionate amount owed by Parrot Jungle ("Default Payment") based upon the ratio between the amount of the lease payments to be paid to the City by Parrot Jungle ("Lease Payments") as set forth in that certain Lease and Development Agreement between the City of Miami, Florida and Parrot Jungle and Gardens, Inc. dated September 2, 1997 ("Lease Agreement"), exclusive of the City's payments to the Internal Improvement Trust Fund, and the amount the County shall receive from Parrot Jungle for the Miami-Dade Zoo Aviary. In no event shall the City's proportionate amount of the Default Payment exceed the Lease Payments, exclusive of the payments the City is obligated to make to the State of Florida Internal Improvement trust Fund pursuant to that certain Partial Modification of Restrictions to Deed No. 19447 dated August 18, 1997.

3. Notwithstanding the provisions set forth in Paragraph 2 hereof, the County Loan shall be expressly subject and subordinate to all conditions and covenants of the Lease Agreement and to the rights of the City in connection with Parrot Jungle's development of the project known as "Parrot Jungle & Garden's of Watson Island."

Pursuant to the City Commission's Motion No. 98-475 on May 12, 1998 which accepted the City Manager's recommendation on the City/County participation agreement, the City Manager has requested that the City and County participate in the Parrot Jungle Section 108 loan on a 50% / 50% in order to expand the County's level of financial participation given the regional impact of the Parrot Jungle project at Watson Island. Please note that the recommendation is to proceed with the Section 108 Loan based on a 80% / 20% participation of the City and County as previously stipulated by the Board of County Commissioners.

Parrot Jungle has been in existence since 1936 in its current location in South Miami-Dade, where it has served all the segments of the population of South Florida and its many visitors. Since its opening, Parrot Jungle has evolved from a typical roadside tourist attraction with a parrot show and pretty gardens to a South Florida institution. The botanical gardens include over 1,200 birds, reptiles and animals, featuring spectacular bird and wildlife shows, ape exhibit, exotic reptiles, petting zoo, a children's playground and more. Parrot Jungle is a privately owned Park that is not subsidized by government.

Parrot Jungle is planning to vacate its present location in South Miami-Dade County and move to a new location at Watson Island. The current location of Parrot jungle is surrounded by upscale residential housing and various non-commercial users that make it inappropriate for an improved and expanded destination attraction.

The Watson Island location offers an opportunity to the residents of Miami-Dade County to help participate in the revitalization of the Downtown area and assure Parrot Jungle's ongoing and future contributions to this community.

Project

The development of the Parrot Jungle attraction will be undertaken by Parrot Jungle & Gardens, Inc., which is owned and operated by Dr. Bern M. Levine.

Parrot Jungle submitted a development proposal, in response to a request for proposals issued by the City of Miami ("City") in 1994, for the development and operation of a botanical garden attraction on an 18.6 acres of City-owned waterfront property located at Watson Island.

Parrot Jungle's proposal to develop a botanical garden attraction at Watson Island was approved by the City Commission and ratified by the majority of City-wide voters at a referendum held November 7, 1995. The final approval of the proposed development occurred on June 2, 1997, when the Governor and Cabinet of the State of Florida gave their blessing for this exciting redevelopment effort at Watson Island.

Parrot Jungle proposes to construct a first-class botanical garden visitor attraction on Watson Island upgrading available recreational entertainment facilities in Miami-Dade, enhancing the "Miami-Dade experience", and providing the City and Miami-Dade County with a steady stream of new tax revenues. The actual physical development program includes over 11 acres of gardens, open space waterfront and natural exhibits, two amphitheaters for the exhibition of various shows and presentations on the flora and fauna of the tropics, as well as first class banquet and educational facilities.

The City and Parrot Jungle executed a Land Lease and Development agreement, for 45 years with option to extend one 15-year period with market value recently appraised at $20 million. Total project development cost for all phases is estimated at $47 million.

The requested $25 million Section 108 Loan will be used for leasehold improvements, to establish a debt service reserve for the 108 Loan and to pay for the issuance cost of the 108 notes.

The balance of the project financing will be provided by a $6 million loan from a traditional lender, $8 million from corporate sponsors, $4.9 million by private equity investors, and $3 million by Parrot Jungle.

Dr. Levine, the owner, is committing his proven skills, experience, and resources to the project.

Proposed New Location and Watson Island

By moving to Watson Island, Parrot Jungle effectively resolves a number of operational economic problems it faces in its current facility. Because of the restrictions of the surrounding non-commercial uses at its present site, the Watson Island location is far better suited for major visitor attraction. The island itself is in need of the kind of aesthetic and fiscal improvement that the project offers.

Watson Island is currently a vacant land with very little economic activity. The island's unique location offers an opportunity to conduct a business conducive to its economic potential, as well as to maintain itself as an attractive property for public use. The Parrot Jungle project meets both objectives by improving the island's underutilized economic potential, and enhancing the island's natural beauty.

The area will benefit tremendously by the creation of tourist, entertainment, and retail types jobs, which traditionally offer opportunities to low to moderate-income individuals. According to 1995 census estimates, within 1-mile radius of the project site 31 percent of households under 65 are below the federally established poverty levels. Nearly two-thirds of the area population is comprised of minorities, predominantly African Americans, with median household income of $16,083. The census data also reveals that lack of economic opportunities forced a quarter of the area's population to move elsewhere during the 1980 to 1990 period. Obviously, there is a serious need to create new economic opportunities for the area's low to moderate-income individuals.

Watson Island is located within the boundaries of the Downtown Community Development Focus Area, it is also located within the boundaries of the State of Florida Enterprise Zone, and the federally designated Miami-Dade County Enterprise Community.

Economic Impact

The development of Parrot Jungle at Watson Island will create numerous economic opportunities within the Greater Miami community. In addition to its educational outreach programs and adult education classes, the project will:

require periodic supplies purchased from local vendors for operating supplies, food service and crafts.
schedule convention and banquet groups that will utilize local accommodations (hotels, restaurants, transportation and other services).
attract tour groups with increased diversity to the Miami-Dade area, including family oriented organizations.
improve and maintain the public Park areas on the north side of Watson Island, adjacent to the project area.

Perhaps the biggest impact of the proposed project will be on the surrounding neighborhoods' jobs market, especially on the low to moderate wage level jobs with relatively low skill requirements. By tenth year of its opening, Parrot Jungle is expected to have 603 full time permanent employees, of which approximately 482 (or 80%) will be within the low and very low-income categories.

Typically, attractions and public Parks have many positions that are appropriate for low-income persons. The employment solicitation and training programs being considered for Parrot Jungle at Watson Island will be targeted primarily at low income persons residing in adjacent communities such as Downtown, Overtown, Allapattah, Wynwood, Edgewater and Little Havana.

In addition to the jobs generated by employment of the operating attraction, this project will create approximately 300 construction-related jobs over 2-3 years.

The development cost of approximately $47 million, will have a rather significant impact on the Miami-Dade local economy.

The proposed new facility at Watson Island is expected to create 240 permanent jobs during its first year of operation, which is scheduled to occur in 1999. By the third year, the entire facility is projected to be fully operational in all planned activities, employing a total number of 326 full-time persons. However, as Parrot Jungle continues to invest in new attractions in years 3, 6 and 9 of its operations, the total number of full time jobs will reach 603 by the tenth year.

Parrot Jungle plans to adopt the role of facilitator in an effort to ensure that the maximum number of the areas residents are employed in the jobs created through its activities. In order to accomplish that Parrot Jungle will establish relationships with Jobs Opportunities for Basic Skills, the Training and Employment Council, Jobs for Miami, City of Miami Neighborhood Jobs Office, and other work placement programs which target the minority communities.

Other Benefits

Parrot Jungle at Watson Island will transform a highly visible, neglected parcel of land at the gateway to the City of Miami and Miami-Dade County into a tropical setting to be enjoyed by residents and visitors. Moreover, the development of the new facility will offer other benefits to our community, some of which will be realized almost immediately after its opening. The project will be:

providing a minimum of 5% of gross revenue or $200,000 per year to the City in lease payment. By third year of operation, the level of lease payment is estimated to reach $500,000.
generating a savings of $100,000 to $200,000 per year in maintenance of island, currently expended by the City.
generating an estimated $250,000 or more ad valorem taxes for the City of Miami, Miami-Dade County, the School Board, and other taxing authorities.
generating an estimated $700,000 in sales tax revenue for the State of Florida, Miami-Dade County, and City of Miami.
underwriting the cost of new roads, public parking areas, landscaping, water and sewer lines, and other amenities on the island that could total up to $7.3 million.
expending community and educational outreach programs to residents.
offering vocational training in the fields of horticulture, tourism and food service.
providing youth and adult volunteer programs for residents along with community service and student internships.
offer offering a more central location which will provide easier access for school field trips
w with classroom and lecture facilities available at the new Parrot Jungle at Watson Island.
providing family education and entertainment through conservation awareness programs.
contributing $100,000 dedicated funding per year for the 20-year life of the Section 108 Loan for the aviary at Metrozoo.

Need for 108 Loan
The Parrot Jungle is a perfect private/public partnership project which is in need of Section 108 Loan Guarantee Assistance.

The redevelopment of Watson Island will be a major step toward improving underutilized public
asset and provide significant employment opportunities for the areas semi or low skilled individuals.

Although, over the years, a number of commercial development proposals have been presented to the City for consideration, the public's desire to keep the island primarily for parks and recreation use has prevented any financially feasible commercial development there.

Undertaking any development endeavor at Watson Island without public assistance would be extremely difficult. The site development cost alone severely prohibits any possibility of developing a financially feasible project. Parrot Jungle must spend over $7.3 million alone on infrastructure costs such as new roads, utilities, water lines, and repair and develop the environmentally sensitive waterfront area.

The requested $25 million Section 108 Loan will be repaid within 20 years term based on the guidelines established by the U.S. Department of Housing and Urban Development ("U.S. HUD").

Dade County pledges as security for the repayment of the Section 108 Loan the following:

1) Section 108 Debt Service Reserve Fund
2) Parrot Jungle's Leasehold Improvements
3) Parrot Jungle's Other Corporate Assets, Corporate Guarantees, and Personal Guarantees of Owners
4) Other security as may be required by U.S. HUD
5) CDBG Program Income
6) Future CDBG Entitlements

The City is providing a long term lease and a possible CDBG Float Loan. As required by U.S. HUD regulations, the Section 108 Loan funds must be included in the County's Consolidated Plan through an amendment to the Plan.

The County's CDBG Citizen Participation Plan and County regulatory requirements dictate that two (2) public hearings be held before the County submits the Section 108 Loan application. The second public hearing will be held at the Board of County Commissioners' meeting on June 16, 1998.

.. DIRECTIVES
No directives were received.