File Number: 142765
|Clerk's Official Copy|
|File Number: 142765||File Type: Resolution||Status: Adopted as amended|
|Version: 0||Reference: R-1110-14||Control: County Commission|
|Requester: Office of Management and Budget||Cost:||Final Action: 12/16/2014|
|Sunset Provision: No||Effective Date:||Expiration Date:|
|Registered Lobbyist:||None Listed|
|Acting Body||Date||Agenda Item||Action||Sent To||Due Date||Returned||Pass/Fail|
|County Attorney||12/23/2014||Assigned||David S. Hope||1/13/2015|
|Office of Agenda Coordination||12/18/2014||Assigned||County Attorney||12/18/2014|
|REPORT:||This is the amended version of 5M (142460) on the 12/16 BCC agenda. Only the resolution and the actual agreement in Exhibit B have been modified. David Hope assisted the department.|
|Ed Marquez||12/18/2014||Assigned||Office of Agenda Coordination|
|Board of County Commissioners||12/16/2014||5M AMENDED||Adopted as amended||P|
|REPORT:||First Assistant County Attorney Abigail Price-Williams read into the record the title of the foregoing proposed resolution, noting it should be amended with the proposed amendment. Pursuant to Chairwoman Sosa’s question, Mayor Gimenez advised the proposed ordinance was part of the budget as approved; and it would provide $18 million in revenues this fiscal year to fund the police officers positions. Assistant County Attorney David Hope read into the record a proposed amendment for Agenda Item 5M to correct scrivener’s error on page 30, third sentence of Subsection F, which would read as follows: “”Beginning Fiscal Year 2015-16 and each fiscal year thereafter, the use of Tax Increment Revenues to fund the Agency’s expenses for Administration, Community Policing, and Capital Project Maintenance shall not exceed the prior fiscal year’s distribution for such expense (for example, $11.721 million was the distribution in Fiscal Year 2014-15), adjusted by the lesser of the Miami Urban Area CPI or 3 percent annually to be calculated using the Miami Fort Lauderdale All Urban Consumers CPI from July to June for the prior year.” Chairwoman Sosa opened the public hearing. Former Miami-Dade County Commissioner Joe Martinez appeared before the Board to express his objections to the approval of this proposed ordinance and the previous budget approval relating to this proposed item. He stated that the County was taking away from Miami-Dade County residents and other areas of the County over $700 million to fill a budget hole, but this action would tightening up the hands of future incoming boards if this ordinance was approved. He advised that the City of Miami Beach was no longer a slum and blighted city, and it was selling multimillion dollar apartments. He asked that the Board revisit this issue inasmuch as he felt the County would be able to identify other revenues and funding sources. In response to Former Miami-Dade County Commissioner Martinez, Assistant County Attorney Hope advised Agenda Item 5A made reference to the Children’s Trust Fund in terms of the flow of funds into and from the Trust. Chairwoman Sosa instructed Budget Director Jennifer Moon to meet with Former Miami-Dade County Commissioner Martinez to respond to his questions. Mr. William “Bill” Talbert, Chief Executive Officer (CEO), Greater Miami Convention and Visitors Bureau, appeared before the Board to urge the Board to approve this proposed ordinance. He advised that one of the real deficiencies in our community was the lack of a world class convention center, noting the voters had voted on this issue. He commented on how important this project was for our community, the hotel tax added to hotel bills for this project, and how important it was to have a competitive facility. He stated that the Convention and Visitors Bureau partnered with the City of Miami Beach for this project, and it was a number one priority because it would also create many more jobs. Mr. Daniel Brillant appeared before the Board to express his support for the approval of this proposed ordinance in order to support integrity of culture and community. City of Miami Beach Manager Jimmy Morales, 1700 Convention Center Drive, appeared before the Board to express his support for Agenda Items 5A and 5M. He congratulated Commissioner Levine Cava for being elected into office, and Commissioners Monestime and Bovo for being the chair-elect and vice chair-elect. He also congratulated Chairwoman Sosa for her accomplishments as chair. He also thanked Commissioner Edmonson for her leadership to bring this proposal forward, especially Commissioners Barreiro and Heyman for sponsoring Agenda Items 5A and 5M. City of Miami Beach Manager Morales stated that the argument was not whether the City of Miami Beach (the City) was blighted or not because it was not, but this regional building certainly needed improvements in order to be able to take this regional economic asset to the next level. He explained the amount of funding being invested by the City and the County, the regional economic impact it would have in the community in terms of jobs and hotel rooms, and the improvements planned. Mr. Morales advised that 30% of the project’s drawing plans would be approved tomorrow (12/17) by the City’s Commission, and the procurement process for the selection of contractors was almost complete. He advised that the City would break ground by December 2015 in partnership with the County to finally complete this project. Chairwoman Sosa closed the public hearing. Commissioner Barreiro spoke in support of the proposed ordinance and resolution because it was an investment to create more jobs, and he noted this project was crucial to continue the positive image the County had received from the beaches redevelopment. He noted that the County would ensure the Convention Center remained as a regional asset, and the City and its residents had stepped up to the plate at a time taxes were being opposed to approve this project. It was moved by Commissioner Barreiro that the Board of County Commissioners adopt Agenda Items 5A and 5M, as amended. This motion was seconded by Commissioner Edmonson, and the floor was opened for discussion. Commissioner Zapata expressed his concerns for this proposed project due to the impact it would have in the remaining of the County and future incoming Boards for years to come. He also expressed concern for how the Community Redevelopment Agency (CRA) was being managed and for the lack of committee review by the Finance Committee. He noted the item proposed to extend the CRA for more than 20 years. Commissioner Zapata stated that he had objections to allocating millions of dollars to the City of Miami Beach, particularly $150 million from the Convention Development Tax (CDT) to an entity with no accountability to the taxpayers, even though he agreed the County should have a robust world class Convention Center. He noted this would take funding away from other areas in the County in need of services. He stated that the County should spend responsibly the CDT’s funds and should consider increasing the tax rate to have additional money for the Convention Center. He stated there was a need to create CRAs in a more comprehensive and strategic manner because many CRAs were being created in urbanized areas, which needed additional County transportation services. Commissioner Zapata suggested that the County administration should explore the availability of other funding sources and should conduct a review of how CDT funds were being utilized including alternative uses for CDT funds. Commissioner Zapata asked whether Mr. William “Bill” Talbert and this Board would support urging the legislation to increase the CDT tax rate three percent (3%) for the development of the Convention Center. He asked this Board to stop given themselves bad options and placing themselves in bad positions because it would lead to less and poor future options. He advised that he felt uncomfortable telling the County’s residents to give the City of Miami Beach these funds because the impact would be felt by the remaining areas of the County. Commissioner Bovo expressed his concerns for the inclusion of $3.5 million for the Bass Museum, $12 million for the Convention Center Connector on Lincoln Road, and $20 million for improvements on Lincoln Road inasmuch as these areas did not meet the definition of slum and blighted, even though he had voted in support of the budget. He stated many of the improvements in that area were privately funded, and the legislative intent of the CRA was to address slum and blighted areas. Budget Director Jennifer Moon advised the aforementioned projects were included because they were already part of the CRA’s plan, and it would give the County more control over how the funds were utilized in this particular CRA. She stated the agreement outlined exactly what would be done from this point forward, and the funds could not be spent on any other projects but those already identified. Discussion ensued among Commissioner Bovo, Mr. Morales, and Budget Director Moon regarding the projects included in the CRA and the terms of the CRA. Mr. Morales explained the CRA would expire in 2022 without the approval of the sunset extension, and all of these projects would have been completed by 2022. He clarified the extension of the CRA focused on the development of the Convention Center, and the proposed amendment would include many restrictions if the item was amended. He noted surplus funds would be utilized to pay off the debt earlier, and the length of the CRA life would be shorten if the debt was paid off earlier. Discussion ensued among Mayor Gimenez, Commissioners Barreiro and Bovo, and Mr. Morales regarding the intent of the amendment and the inclusion of these projects in the CRA. Commissioner Barreiro explained the rationale for including these projects in the CRA. Commissioner Bovo suggested that the Board should conduct a comprehensive review of all active CRAs to understand the global impact on the County’s structure, determine how many CRAs should be opened at one time, the flexibility to extend the life of a CRA, sunset provisions, and establish definitions of slum and blighted because of the impact on the residents on that particular area once all of the work was completed. Commissioner Bovo reiterated on his objections to spend $36 million on Lincoln Road due to the existing economic impact that area already had in the economy, and the funds could be utilized in another area of the County. Mayor Gimenez advised that, in the absence of this agreement, the $36 million would be invested on those projects without the County’s involvement. He stated that this CRA was about the development of the Convention Center and creating jobs, and that was the reason it was important. He stated that the County had a need to invest in infrastructure and develop a world class Convention Center to create jobs. He advised that he understood there was a cash flow issue, but that cash flow issue would improve. Mayor Gimenez agreed that the Board of County Commissioners should conduct a comprehensive review of CRAs. Commissioner Bovo clarified he voted for the budget in terms of the Convention Center and not to include all of these projects in the CRA as slum and blighted projects. Commissioner Diaz stated the County needed a world class Convention Center; therefore, the building should be redeveloped. He also stated that he had reservations on Commissioner Bovo’s concerns; but since CRAs were money producing mechanisms, the County would be able to fund these projects. Following a discussion between Commissioner Diaz and Mr. Morales regarding the redevelopment costs for the Convention Center and the funding sources, Commissioner Diaz pointed out this would set precedence for other county commission districts wishing to establish CRAs in terms of the criteria and definition for slum and blighted areas. He noted this CRA modeled more an economic type CRA than a slum and blighted areas CRA, and he expected this County Commission not to disapprove proposed CRAs with similar projects within other county commission districts on the basis of the definition for slum and blighted areas. Commissioner Jordan expressed her full support for Agenda Items 5A and 5M. She advised that it had been brought to her attention that one of the components of the negotiations was the possibility of having to transfer several lucrative bus routes to the City of Miami Beach; and she would not support such an action. She asked about what would be the impact of transferring the bus routes. Budget Director Moon advised that part of the original Memorandum of Intent (MOI) between the City of Miami Beach and the County was to transfer to the City of Miami Beach the South Beach Local bus route combined with the transfer of responsibility for beach maintenance, but an agreement had not been reached on that because it had to be beneficial to both sides. She noted any final negotiations would be presented before the Board for approval. Commissioner Jordan reiterated on her opposition to transferring any of the County’s lucrative bus routes to the City of Miami Beach as part of the negotiations process. Commissioner Heyman pointed out that the members of the Board should take into consideration the equation for the City of Miami Beach’s contribution from Tourist Development Tax (TDT) and Convention Development Tax (CDT) funds in conjunction with the Convention Center funds generated from the City of Miami Beach. She also pointed out that the County should have a say on these issues; and the language in these items would provide the County with greater control of the CRA, especially when the County only rubber stamped the legislation’s decisions at this time on how the CRA and the City spent the County’s dollars. Commissioner Heyman commented on ongoing redevelopment projects within the Lincoln Road area, noting she considered this agreement as a partnership investment with an exceptional return. She stated it was laid out as a budget formula structured to provide the County with $18 million, which would be dedicated to restore police officers. She noted all renovations were part of the entire infrastructure, and water flooding issues within the City and other changes for traffic flowing were mitigated as part of the negotiations. Commissioner Heyman advised the CRA should be viewed as a partnership investment and a benefit for the completion of projects around Lincoln Road, the Bass Museum, and to address sea level rise problems that could place that City underwater. Commissioner Suarez commented on how the County had benefited from tax revenues generated by CRAs. He concurred with Commissioner Zapata’s statement that it should have been funded with CDT funds, and it was an embarrassment to have to use CRA funds for projects no longer meeting the definition of slum and blighted. He stated that he wished to ensure the Convention Center was renovated because this facility was the heart of our economic engine and environment. He stated that he could not make his vote consistent with other votes for CRAs, but he would support the items in spite of the concerns expressed by other commissioners. Commissioner Suarez expressed his disagreement with the comments made by Mr. Morales relating to the funding source of $400 plus million because it was generated from hotel taxes from which the City of Miami Beach received a large share. Commissioner Edmonson expressed her support for the items, and she asked what would happen to bus drivers if bus routes were transferred to the City of Miami Beach. Budget Director Moon advised the County would retain the affected bus drivers because opportunities were available. Chairwoman Sosa expressed her opposition to transferring bus drivers to the City of Miami Beach. Following a discussion between Commissioner Zapata and Budget Director Moon regarding the funding level generated by the CRA, Budget Director Moon advised that this CRA would generate for the County an estimated $450 million in the life of the CRA if the Board voted to extend its life. She noted the item included provisions limiting the amount of funds the CRA could spend on an annual basis. In response to Commissioner Zapata’s question, Budget Director Moon advised that the life of the CRA would be extended to year 2042; and the County’s payments to the trust account would total $754.5 million during the extended period from Fiscal Years 2021-22 to 2043-44. Commissioner Zapata pointed out that these funds could have been spent in the County if the CRA had not been in place; and additional CDT funds could have been allocated to this CRA. Discussion ensued between Commissioner Zapata and Budget Director Moon regarding funds utilized for the CRA, repayment provisions, whether the County had the ability to generate additional CDT funds, and the terms of the MOI. Commissioner Zapata suggested that the Board should schedule a meeting to revisit and discuss the extension of this CRA and how to fund the redevelopment of the Convention Center, how to define what projects should be included in the CRA, how to determine Convention Center related issues, how to address and fund sea level rise related issues, and whether sea level rise related issues should be solely funded by the City of Miami Beach. Commissioner Zapata commented that the County was committing large sums of money many years into the future with little control over the future, and he questioned whether the extension of the CRA was the appropriate venue to accomplish some of these projects. Budget Director Moon advised that sea level rise related funding issues was associated with a stream of funding linked to a terminated CRA, and it was addressed in the terms of the inter-local agreement. Commissioner Moss stated it was important for this community to have a world class Convention Center, noting that the City of Orlando continuously expanded their Convention Center. He urged the members of the Board to support Agenda Items 5A and 5M inasmuch as convention centers brought in investments to our economic infrastructure; and the County needed a world class Convention Center facility, which we did not have at this time. Discussion ensued between Mayor Gimenez and Commissioner Diaz regarding Mr. Morales’ timeline for the redevelopment of the Convention Center, the rationale for having these proposed items approved at today’s (12/16) meeting, and what the City was trying to accomplish. Commissioner Diaz asked if these items could be moved while providing the Board the ability to discuss at a later time the details of the development. Discussion ensued among Mayor Gimenez, Commissioner Diaz, and Mr. Morales regarding the details of the agreement and given more participation to the County. Discussion ensued between Commissioner Diaz and Budget Director Moon on the oversight requirements already in place for the GOB portion of the project. Following a discussion between Commissioner Diaz and Mr. Morales regarding the oversight of the redevelopment of the Convention Center, Commissioner Diaz asked that the County appoint a project manager to oversee the progress of the redevelopment of the Convention Center and to oversee the Building Better Communities Government Obligation Bond (GOB) funds component. He also asked that the project manager provide the Board of County Commissioners with a periodical status report on the progress of the project and how the funds were being utilized and that the CRA amendment and the CRA inter-local agreement include the reporting requirement. Assistant County Geri Bonzon-Keenan clarified that Commissioner Diaz’ instructions was a proposed amendment to Agenda Item 5M, and she would work with the City of Miami Beach Attorney on that amendment. She noted that the proposed drafted amendment would read as follows: “that the County may assign a representative as a project manager to oversee all aspects of the development of the Convention Center Project.” Discussion ensued among Commissioners Diaz, Barreiro, and Mr. Morales on the cost of the project manager and whether this assignee could serve dual role. Commissioner Diaz asked that the requirement of local preference and the Wage Ordinance be included. Assistant County Attorney Bonzon-Keenan advised this proposed resolution should be further amended to include local preference and local workforce provisions. Commissioner Barreiro advised he was one of the CRA’s Board members, and he was committed to ensuring that the same requirements established for the Tunnel Project in terms of local preference and local workforce would also be implemented for this CRA. Pursuant to Commissioner Monestime’s question relating to the issue of whether the debt could be repaid earlier and the expectation of exceeding incremental contributions from the revenue stream, Mr. Morales advised that conservative projections were made for bonding purposes. He stated that, based on historical growth, South Pointe and the Civic Center areas would generate more funds than needed; and the legal obligation required that the CRA used the surplus funds to pay off the debt. City of Miami Beach Assistant City Manager Kathie Brooks commented on financial projections, the past growth rate, and projected future growth rate. Discussion ensued among Commissioner Monestime, Ms. Brooks, and Budget Director Moon regarding the actual and projected growth within the last three to four years of the CRA. Commissioner Monestime commented it would be difficult to approve CRAs in communities where it was mostly needed as long these CRAs in communities like Miami Beach continued to exist; therefore, it was important to encourage pre-payment of this debt. Commissioner Monestime advised that the Board needed to discuss further the issues surrounding the CRA, and it would be to the County’s advantage if that debt was eliminated. Discussion ensued between Commissioner Monestime and Mr. Morales regarding how the surplus funds would be utilized and the use of additional CDT funds. In response to Commissioner Bovo’s question, Assistant County Attorney Hope advised that the existing state legislation language required that the debt be retired; and the State Legislature could not retroactively disband any existing CRA. Discussion ensued among Commissioner Bovo, Assistant County Attorney Hope, and Budget Director Moon regarding the budget of CRAs, the budget process for these entities, what was negotiated for this particular CRA, and what was provided to the City of Miami Beach. Commissioner Bovo requested that, in the future, he would like to review the CRA’s budget process to address the issue of providing the Board of County Commissioners and the County with more saying and participation in this process prior to the budget for these entities being approved in order to develop a true partnership. Discussion ensued between Mayor Gimenez and Commissioner Bovo regarding the terms and conditions for this CRA. Chairwoman Sosa recommended that the members of the Board should ask the Chair-elect to schedule a workshop to review the issues surrounding CRAs including criteria and regulations. Chairwoman Sosa advised she supported the amendment addressing local preference. Commissioner Barreiro accepted the amendments relating to local workforce preference and project manager. In order to clarify the amendment relating to the project manager, Assistant County Attorney Bonzon-Keenan read into the record an amendment saying: “The County may assign a project manager to oversee all aspects of the development of the Convention Center project and the progress of the CRA and to encourage implementation of local wage ordinance and local workforce, hiring goals, and responsible wages for the CRA project.” Commissioner Diaz requested that the project manager be required to report periodically to the Board of County Commissioners on the progress of the Convention Center project. In response to Chairwoman Sosa’s question relating to liability, Assistant County Attorney Bonzon-Keenan clarified the City of Miami Beach would hold the liability since it was not a County project. Commissioner Barreiro commented that the concept of CRAs had worked in the past and would continue to work, and these entities generated revenues. He stated that the projected growth was the result of the Convention Center being a robust economic driver in this community. Assistant County Attorney Bonzon-Keenan reiterated that this resolution was amended to include the requirements of local workforce, responsible wages, and quarterly reports to the Board of County Commissioners from the project manager, and the amendment read into the record to correct scrivener’s error on page 30, third sentence of Subsection F. There being no further comments or objections, the Board proceeded to take a vote on the foregoing resolution as amended.|
RESOLUTION APPROVING AMENDMENT TO MIAMI BEACH CITY CENTER/HISTORIC CONVENTION VILLAGE REDEVELOPMENT AND REVITALIZATION AREA PLAN; APPROVING THIRD AMENDMENT BETWEEN MIAMI-DADE COUNTY, CITY OF MIAMI BEACH, AND MIAMI BEACH REDEVELOPMENT AGENCY TO INTERLOCAL COOPERATION AGREEMENT DATED NOVEMBER 16, 1993 AND AMENDED AND RESTATED INTERLOCAL COOPERATION AGREEMENT BETWEEN MIAMI-DADE COUNTY AND CITY OF MIAMI BEACH REGARDING CONVENTION DEVELOPMENT TAX, AND AUTHORIZING COUNTY MAYOR OR COUNTY MAYOR’S DESIGNEE TO EXECUTE SUCH AGREEMENTS SUBJECT TO SATISFACTION OF CERTAIN CONDITIONS; WAIVING REQUIREMENTS OF SECTION 3 OF RESOLUTION NO. R-871-11 RELATING TO THE BOARD OF COUNTY COMMISSIONERS’ PRIOR APPROVAL OF THE REDEVELOPMENT AGENCY’S BUDGET; AUTHORIZING ISSUANCE OF TAX INCREMENT REVENUE BONDS IN ONE OR MORE SERIES IN AN AMOUNT NOT TO EXCEED $430,000,000.00 FOR PURPOSES OF REFUNDING OUTSTANDING TAX INCREMENT REVENUE BONDS TAXABLE SERIES 1998A, TAXABLE SERIES 2005A, AND SERIES 2005B, FUNDING ELIGIBLE COMMUNITY REDEVELOPMENT PROJECT COSTS AND ANY NECESSARY RESERVES, AND PAYING COSTS OF ISSUANCE, PROVIDED CERTAIN CONDITIONS ARE SATISFIED; AND APPROVING PROJECTS FOR FINANCING FROM PROCEEDS OF TAX INCREMENT REVENUE BONDS
WHEREAS, the Legislature of the State of Florida enacted the Community Redevelopment Act of 1969, which is presently codified in Part III of Chapter 163, Florida Statutes (the “Act”); and
WHEREAS, pursuant to the Act, a redevelopment plan must be adopted by the governing body to initiate redevelopment activities within the redevelopment area; and
WHEREAS, all powers arising through the Act are conferred upon counties with home rule charters; and
WHEREAS, on January 26, 1993, the Board of Miami-Dade County Commissioners (the “Board”) adopted Resolution No. R-14-93, which among other things (i) found the area in the City of Miami Beach (the “City”) bounded on the East by the Atlantic Ocean, on the North by 24th Street, on the West by West Avenue, and on the South by 14th Lane (the “Redevelopment Area”) to be a “blighted area” within the meaning of Part III of Chapter 163, Florida Statutes, and (ii) delegated to the City of Miami Beach, pursuant to Section 163.410, Florida Statutes, the power to (a) make findings and determine the Redevelopment Area to be a slum and/or blighted area, (b) make findings of necessity as to the rehabilitation, conservation, and/or redevelopment of the Redevelopment Area, (c) create a community redevelopment agency and delegate powers to the agency, or declare itself as the agency with the power to exercise such powers assigned to the agency, and (d) initiate, prepare and adopt a plan of redevelopment and any amendments thereto, subject to the review and approval of the Board; and
WHEREAS, on February 3, 1993, the City adopted Resolution No. 93-20709 which established a community redevelopment agency (the “Miami Beach Redevelopment Agency” or the “Agency”), and declared the members of the City of Miami Beach Commission as the members of the Agency; and
WHEREAS, on March 30, 1993, the Board adopted Resolution No. R-317-93, which among other things (i) adopted the Agency’s City Center/Historic Convention Village Redevelopment and Revitalization Area plan (the “Plan”), for the redevelopment and revitalization of the Redevelopment Area, and (ii) approved the Interlocal Cooperation Agreement, between Miami-Dade County (the “County”) and the City, dated and executed on November 16, 1993 (the “CRA Interlocal Agreement”); and
WHEREAS, on April 27, 1993, the Board enacted Ordinance No. 93-28, which created a City Center/Historic Convention Village Redevelopment and Revitalization Trust Fund (the “Trust Fund”), and provided a funding mechanism for implementing the Plan; and
WHEREAS, on June 20, 1996, the Board adopted Resolution No. R-730-96, which approved the Interlocal Cooperation Agreement with the City pertaining to the use of convention development tax (“CDT”) revenues (the “CDT Interlocal”); and
WHEREAS, on April 26, 2001, the Board adopted Resolution No. R-453-01, which approved Amendment One to the CDT Interlocal, to provide for different allocations of convention development tax revenues to the City in the event that either an agreement is reached with the Florida Marlins with respect to a baseball stadium, or no such agreement is reached; and
WHEREAS, on September 9, 2003, the Board adopted Resolution No. R-889-03, which approved a First Amendment to the CRA Interlocal Agreement (“First Amendment to CRA Interlocal”), whereby the Board delegated to the City the power to implement community policing innovations within the Redevelopment Area; and
WHEREAS, on March 16, 2004, the Board adopted Resolution No. R-375-04, which approved a Second Amendment to the CDT Interlocal to address certain issues regarding the CDT revenues; and
WHEREAS, on July 27, 2004, the Board adopted Resolution No. R-958-04, which approved a Second Amendment to the CRA Interlocal Agreement, whereby (i) the County, City, and Agency agreed that the Agency would remit one and one-half percent (1.5%) of the tax increment revenue paid to the Agency for said fiscal year to the County to defray administrative costs for oversight and processing Agency related items, after debt service and all other obligations related to the bonds or future indebtedness issued by the Agency and approved by the County was satisfied for the fiscal year, and (ii) the County approved the Agency’s issuance of refunding bonds in an amount not to exceed a principal amount of $101,090,000.00, to refinance all or a portion of the outstanding principal amount of bonds issued with respect to the Redevelopment Area; and
WHEREAS, the City and Agency have prepared an amendment to the Plan, which is in substantially the form attached to and incorporated by reference in this resolution as Exhibit A, to address the slum and blight conditions within the Redevelopment Area boundaries (the “Plan Amendment”); and
WHEREAS, the Plan Amendment (1) modifies the scope of the Miami Beach Convention Center project (the “Convention Center Project”) to include all necessary renovations to and expansion of the Convention Center; (2) incorporates the financing of, including the funding of operating and maintenance costs of, the Convention Center Project; and (3) extends the time certain for completing all redevelopment projects financed by increment revenues to a date no later than March 31, 2044; and
WHEREAS, the City and the Agency have adopted Resolution Nos. ____________ and _____________, respectively, which (i) approve the Plan Amendment, and (ii) pursuant to Section 163.361(1), Florida Statutes, recommend the Board approve the Plan Amendment; and
WHEREAS, the City and the Agency have adopted Resolution Nos. ____________ and _____________, respectively, which (i) approve a Third Amendment to the CRA Interlocal Agreement (the “Third Amendment”), which is in substantially the form attached to and incorporated by reference in this resolution as Exhibit B; and
WHEREAS, the Third Amendment provides the structure to finance or refinance (i) the redevelopment activities to be undertaken pursuant to the Plan Amendment, and (ii) includes certain ancillary capital projects previously approved in the Plan (the “Other Projects”); and
WHEREAS, the City and the Agency request that this Board approve the Third Amendment; and
WHEREAS, the City has adopted Resolution No. ____________, which approves an Amended and Restated CDT Interlocal (the “Amended and Restated CDT Interlocal”), which is in substantially the form attached to and incorporated by reference in this resolution as Exhibit C; and
WHEREAS, the Agency intends to incur debt in an amount not to exceed $430,000,000.00, secured by tax increment revenues of the Agency, and maturing not later than March 31, 2044, in one or more series, without regard to years of issuance (the “2015 Bonds”), to fund a portion of the design, development and construction of the Convention Center Project and Other Projects (collectively the “Agency Projects”) as set forth and incorporated by reference in this resolution as Exhibit D; and
WHEREAS, the City intends to delegate the authority to the Agency to issue and sell bonds with respect to the 2015 Bonds in an amount not to exceed $430,000,000.00 secured solely by a pledge of legally available tax increment revenues of the Agency for the purposes of refunding the outstanding Tax Increment Revenue Bonds, Taxable Series 1998A, Taxable Series 2005A and Series 2005B (collectively, the “Outstanding Bonds”) and funding the Agency Projects; and
WHEREAS, it is necessary and 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 from time to time, of its 2015 Bonds, in one or more series, pursuant to the Third Amendment 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 OF MIAMI-DADE COUNTY, FLORIDA, that:
Section 1. The foregoing recitations are incorporated in the body of this resolution by reference.
Section 2. The Plan Amendment is approved, subject to the: (a) further approval by the City and the Agency of all revisions made by this Board to the Plan Amendment (the “Final Approval of Plan Amendment”); (b) prior approval and execution of the Third Amendment by the City and the Agency; and (c) execution and delivery of the Amended and Restated CDT Interlocal by the County and the City.
Section 3. The Third Amendment is approved, subject to the: (a) Final Approval of the Plan Amendment; (b) prior approval and execution of the Third Amendment by the City and the Agency; (c) execution and delivery of the Amended and Restated CDT Interlocal by the County and the City; (d) approval of the [MM1]amendment to Ordinance No. 93-28 by the Board relating to the County’s obligation to fund the Trust Fund through 2044; and (e) approval of the County Attorney’s Office (clauses (a) through (e) are collectively the “Third Amendment Conditions Precedent”). The County Mayor or the County Mayor’s designee is authorized to execute the Third Amendment on behalf of Miami-Dade County, upon satisfaction of all of the Third Amendment Conditions Precedent, with such execution to be conclusive evidence of all such approvals.
Section 4. The Board waives Section 3 of Resolution No. R-871-11 that requires the County Mayor or the County Mayor’s designee to negotiate with said Agency, and if applicable, a municipality or other taxing authority to include a provision in the Third Amendment that requires the Agency to submit timely budgets for approval by this Board prior to the Agency borrowing money, advancing funds or incurring indebtedness proposed to be repaid from or secured by the Agency’s tax increment financing funds.
Section 5. The Amended and Restated CDT Interlocal is approved, subject to the: (a) Final Approval of the Plan Amendment; (b) prior approval and execution of the Third Amendment by the City and the Agency; (c) prior approval and execution of the Amended and Restated CDT Interlocal by the City; (d) approval of the amendment [MM2]to Ordinance No. 93-28 by the Board relating to the County’s obligation to fund the Trust Fund through 2044; and (e) approval of the County Attorney’s Office (clauses (a) through (e) are collectively the “CDT Interlocal Conditions Precedent”). The County Mayor or the County Mayor’s designee is authorized to execute the Amended and Restated CDT Interlocal on behalf of Miami-Dade County, upon satisfaction of all of the CDT Interlocal Conditions Precedent, with such execution to be conclusive evidence of all such approvals.
Section 6. Pursuant to the Third Amendment, and subject to the Final Approval of the Plan Amendment and the execution and delivery of the Amended and Restated CDT Interlocal by the County and the City, the issuance by the Agency from time to time, of its 2015 Bonds, in one or more series, is approved, provided, however, in no event shall: (i) the principal amount exceed $430,000,000; (ii) the maturity be later than March 31, 2044; (iii) the 2015 Bonds be issued as capital appreciation bonds or any other similar bond structure that does not provide for optional and/or mandatory redemption and/or amortization, unless approved by the County Mayor after consultation with the County’s financial advisor; and (iv) the 2015 Bonds be deemed to constitute, a debt, liability, or obligation of the County, the State, or any political subdivision of each (other than the Agency or the City, if applicable), or a pledge of the faith and credit of the County, the State of Florida, or any other political subdivision, and be payable from any funds other than legally available tax increment revenues of the Agency or other revenues provided by the City, as specifically pledged for the 2015 Bonds. The 2015 Bonds shall be issued for the purpose of refunding the Outstanding Bonds and financing the Agency Projects, funding any necessary reserves and paying the costs of issuing the 2015 Bonds. The County shall not rescind its obligation to make annual appropriations to the Trust Fund in accordance with the Interlocal Agreement and to continue to make such appropriations until the date the 2015 Bonds are no longer outstanding.
Section 7. The Agency Projects set forth in Exhibit D to this resolution are approved for financing from the proceeds of the 2015 Bonds and any other available sources of the Agency or the City, if any.
Section 8. 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 Chairwoman Rebeca Sosa
and Members, Board of County Commissioners
From: Carlos A. Gimenez
Subject: City of Miami Beach Agreements and City Center Community Redevelopment Agency Plan Amendment
It is recommended that the Board approve the accompanying resolution, which accomplishes the following:
• Approves an amendment to the Redevelopment Plan for the Miami Beach City Center/Historic Convention Village Redevelopment and Revitalization Area (City Center Agency) that extends the life of the City Center Agency to March 31, 2044;
• Approves the Third Amendment to the Interlocal Cooperation Agreement between the County, the City of Miami Beach (City), and the City Center Agency to, among other things, pay for debt issuances, and certain operating expenses;
• Approves an Amended and Restated Interlocal Cooperation Agreement between Miami-Dade County and the City regarding Convention Development Tax (CDT) and payments associated with the South Pointe area;
• Authorizes the County Mayor to execute all agreements, subject to satisfaction of certain conditions; and
• Authorizes the issuance of tax increment revenue bonds in one or more series by the City Centre Agency in an amount not to exceed $430,000,000 for purposes of refunding current outstanding debt, funding eligible community redevelopment project costs, including the Miami Beach Convention Center (Convention Center) renovation, and any reserves and costs of issuance.
The projects and activities funded by this agreement are in District 5, which is represented by Commissioner Bruno A. Barreiro. However, payment of tax increment financing revenues to municipal community redevelopment agencies is made from the Countywide General Fund and the Convention Center is a regional asset. Therefore this item has countywide impact.
Fiscal Impact/Funding Source
The recommended actions of the Board would increase County funding from CDT, as well as incremental tax financing revenues, to the City Center Agency from the Countywide General Fund. Total payments made from the Countywide General Fund associated with the South Pointe area would not change. The adjustments are further detailed in the Background Section of this cover memorandum.
In summary, based on current assumptions regarding property tax roll growth, debt issuance costs, the construction of a Convention Center headquarters hotel, eligible project costs, and City Center Agency operational costs, an additional $754.5 million of tax increment financing revenue through FY 2043-44 and up to $154 million of CDT will be paid from the County to the City through 2048. Those estimates are $220 million less than originally proffered by the City when negotiations began. The Convention Center renovation is estimated at $591 million. The County will provide approximately $121 million through the City Center Agency and $53.6 million in Building Better Communities General Obligation Bond proceeds, comprising approximately 30 percent of the total project cost.
These agreements will be monitored by the Office of Management and Budget. Jorge M. Fernandez, Director of Community Redevelopment, monitors the City Center Agency and Anita Gibboney, Capital Coordinator, monitors the County’s CDT.
Earlier this year, the City approached my administration with a proposal to extend the life of City Center Agency to support the planned renovations to the Convention Center. The Convention Center is to be renovated and upgraded to “Class A” standards in a manner that best meets the needs of the target market. In general, the renovation is to include all exhibit, meeting rooms, pre-function and support spaces such as loading docks, kitchens, bathrooms, systems, and exterior areas. In addition, the Convention Center is to be expanded to accommodate a new ballroom, junior ballroom and meeting space. The project includes approximately 900 on-site parking spaces, as well as improvements to the immediate surrounding area. The exterior improvements include a new Convention Center Park and the restoration of the historic Carl Fisher Clubhouse. The economic impact of the project is estimated to be approximately $2.5 billion over 30 years. This includes over $600 million in public construction spending, $32 million annual incremental impact from events, and $4 million in annual incremental restaurant and retail spending. The direct, indirect, and induced jobs supported by the Convention Center construction spending is estimated at 5,000 total new jobs. Once completed, 1,600 full-time direct, indirect and induced jobs will be support by the ongoing spending of convention district guests.
As the Board is aware, the Building Better Communities General Obligation Bond Program included $55 million to support the Convention Center. However, to fully fund the necessary improvements described above, the City proposed additional support for the Convention Center and other projects in the area covered by the City Center Agency, as well as an increase to the annual $4.5 million subsidy from CDT for Convention Center operations and maintenance. As detailed in Attachment 1, the City is proceeding with $627.4 million in projects, including $591 million in improvements to the Convention Center and $36 million of other complementary projects in the City Center. The County will provide approximately $121 million through the portion of the $247 million City Center Agency contribution generated by the County’s incremental revenue and $53.6 million in Building Better Communities General Obligation Bond proceeds, comprising 30 percent of the total project cost.
During the FY 2014-15 Proposed Budget development process, I tasked my staff with isolating costs that were outside of the core County functions. A payment required through a prior agreement with the City related to projects in the South Pointe area was identified. This agreement required that payments to the City continue to be made subsequent to the sunset of the South Pointe Community Redevelopment Agency in 2005. As of the end of FY 2013-14, the remaining payments based on projected property tax roll growth were estimated to total $85.1 million through FY 2020-21. These payments were structured in such a way that earlier years required higher payments, with the obligation tapering off through the end of the payment schedule. In order to help mitigate a portion of the budget gap, I approached the City leadership and requested the payment for FY 2014-15 be forgiven.
Negotiations regarding the City’s requests related to the Convention Center and County’s request related to the South Pointe area payment ensued. Other mutually beneficial issues were raised, including the City’s need for funding for sea level rise mitigation, continued funding of beach maintenance, operations of local bus and trolley routes, and the construction of a transit corridor linking downtown Miami to the Convention Center. After several meetings, a Memorandum of Intent (MOI) was drafted. This MOI lays out proposals that my counterpart at the City, Mayor Philip Levine, and I agreed to present to our respective Boards. The MOI outlines:
• An amendment to the interlocal agreement between the City and the County governing the payments related to the South Pointe Area projects and Resort Tax and CDT projects to change the payment schedule to be more in line with available revenues and release the limitations regarding the use of accumulated revenues by the City to allow for investment in sea level rise mitigation projects, as well as other City needs;
• An amendment to the interlocal agreement between the City and the County governing the payment of CDT to support the Convention Center to allow for additional funding to be provided in the event a Convention Center hotel is constructed. These payments will be subordinate to existing CDT funding obligations;
• An amendment to the interlocal agreement between the City and the County governing the payment of a new CDT subsidy to support on-going operating and maintenance support for the Convention Center once the City Center Agency expires or when sufficient excess funds are available from CDT, whichever occurs earlier;
• An extension of the County’s (and other taxing authorities’) obligation to appropriate funds to the City Center Agency through FY 2043-44, to support an investment in the Convention Center renovation and the required issuance of debt; use of tax increment revenue to support on-going operating and maintenance support for the Convention Center for the life of the City Center Agency; and a return of a portion of the excess incremental revenue to the County;
• Future discussions regarding the potential transfer of the responsibility for maintenance of city beaches from the County to the City in exchange for the transfer of the provision of local bus circulator services from the County to the City and approval to operate trolleys;
• Potential discussions regarding future support for a transit connection between Miami Beach and downtown Miami (although the MOI referenced the ability to utilize available CDT for operating and maintenance costs of the connection, that is not currently an eligible use of CDT and instead future discussions would analyze the opportunity to utilize available CDT for acquisition and construction, which are legally allowable uses of CDT per statute).
Mayor Philip Levine presented this MOI to the City Commission at a special meeting held on June 27, 2014 and earned the support of the City Commission for these elements when implemented together. The FY 2014-15 Adopted Budget included the revised payments to the City pursuant to this MOI. The savings negotiated for FY 2014-15 has been used in its entirety to fund sworn positions originally slated to be eliminated in the Miami-Dade Police Department. This revised payment schedule was used in calculating the Five-Year Forecast included in the Proposed Budget, which shows a balanced forecast for the five-year period for the first time in a decade.
Attachment 1 illustrates the impact to the various cash flows between the City and the County. The negotiated modifications have a positive impact on the County’s budget in this fiscal year and next. In FY 2014-15, this allowed the County to preserve roughly half of the more than 400 police officers identified for reduction. While the balance of these payments were moved into future years, the total payments remain the same and these payments have been included in our Five-Year Forecast and will not require additional layoffs or tax rate increases in the future. Outside of this five year window, our negotiations yielded substantial benefit from what had originally been proffered by the City. Furthermore, the elements of this intent document include further discussions regarding issues that could be mutually beneficial to the City and the County in the future.
The resolution before the Board approves: 1) an amendment to the City Center Agency Redevelopment Plan to extend the life of the City Center Agency through FY 2043-44, 2) a Third Amendment to the Interlocal Cooperation Agreement between the County, City and the City Center Agency, and 3) an amended and restated CDT Interlocal Cooperation Agreement between the County and City regarding the CDT and the South Pointe area payments. Additionally, this resolution authorizes the issuance of up to $430 million by the City Center Agency to fund eligible projects including the Convention Center renovation.
The following is a breakdown on the specifics of each agreement:
Third Amendment to the City Center Agency Interlocal Agreement
• Requires County approval of the annual budget, however the City will still have the ability to expend funds prior to County approval;
• Allows for the Commissioner of District 5 to sit as a City Center Agency board member;
• Allows the refinancing of existing debt of approximately $60 million;
• Allows for the issuance of new bonds of approximately $350 million to fund $275 million in Convention Center renovations and $36 million in ancillary projects;
• Provides yearly Convention Center operating and maintenance funding of $1 million starting in FY 2017-18, escalating by $750,000 each year until reaching $4 million then adjusted by the Consumer Price Index;
• Exempts the Children’s Trust once the prior debt has been refinanced, as the Children’s Trust was previously required to pay into the Trust Fund;
• Limits the operating expenses to administration, community policing and capital project maintenance as specified in FY 2013-14 budget, as these expenses will escalate by the Consumer Price Index in future years;
• Establishes that, from FY 2014-15 through FY 2021-22, any funding not used for debt service and operating expenses will go into a fund to be used for shortfalls and eventually prepayment of debt;
• Establishes that, from FY 2022-23 until FY 2043-44, the County will receive a refund of City Center Agency operating expenses based on its proportion of revenues contributed to the Trust Fund; and
• Any remaining funding will be used to retire debt early.
Convention Development Tax Amended and Restated Agreement
• The payments for the South Pointe Area will be completely deferred in FY 2014-15 and partially deferred FY 2015-16 and FY 2016-17. Future payments will include the deferred amounts and payments made based on calculations in the current agreement. The restrictions on the City’s use of the funds has been deleted, therefore the City will be permitted to use the funding for sea level rise mitigation or other projects in the City;
• Assumes additional Convention Center operations and maintenance subsidy beginning in 2026 or once the City Center Agency sunsets or there is sufficient revenue to provide the payment before it sunsets;
• Includes $1.5 million per year if a convention center hotel consisting of 800 rooms is built; and
• Extends the life of the agreement until 2048, which coincides with the last debt service payment being made on current debt.
A separate ordinance approved on first reading at the October 21, 2014 Board meeting (Legistar 142262) will allow the County to continue contributing to the City Center Agency Trust Fund through FY 2043-44.
In the coming months, staff of both the County and the City will be discussing the potential for transferring responsibility for funding beach maintenance from the County to the City, as well as opportunities for the City to operate local bus and trolley service with connections to County routes to the mainland. As agreements are reached regarding these – and potentially other mutually beneficial partnerships between the parties – appropriate action items will be presented to the Board for your consideration.
Attachment 1 – Convention Center and Capital Improvements
Attachment 2 – Comparative Cash Flows
Exhibit A – MBRDA Redevelopment Plan Amendment
Exhibit B – Third Amendment to the MBRDA Interlocal Agreement
Exhibit C – CDT Agreement Amendment and Restatement
Exhibit D – Agency Projects
Exhibit E - City and MBRDA Resolutions
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