566-2009 RDA ResoRESOLUTION NO. 566-2009
A RESOLUTION OF THE CHAIRPERSON AND MEMBERS
OF THE MIAMI BEACH REDEVELOPMENT AGENCY
ADOPTING AND APPROPRIATING THE OPERATING
BUDGET FOR THE CITY CENTER REDEVELOPMENT
AREA AND THE ANCHOR SHOPS AND PARKING GARAGE
FOR FISCAL YEAR 2009/10
WHEREAS, the proposed City Center Redevelopment Area Budget has been
prepared to coincide with the overall City budget process; and
WHEREAS, the proposed City Center Redevelopment Area Budget reflects
anticipated construction project costs in addition to operating and debt service costs for
the fiscal year; and
WHEREAS, the proposed budget for the Anchor Shops and Parking Garage has
been included as a separate schedule to the City Center Redevelopment Area Budget,
reflecting projected revenues and operating expenses for the fiscal year; and
WHEREAS, the Executive Director recommends approval of the proposed Fiscal
Year 2009/10 budgets for the City Center Redevelopment Area as well as for the Anchor
Shops and Parking Garage; and
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRPERSON AND
MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, that the Chairperson
of Members hereby adopt and appropriates the operating budget for the City Center
Redevelopment Area and the Anchor Shops and Parking Garage for Fiscal Year 2009/10,
attached as Exhibit "A" hereto.
PASSED AND ADOPTED THIS SEPTEMBER 24T" DAY OF 2009.
CHAIR ERSON
ATTEST:
~.~ ~ ,
SECRETARY
Matti Herrera Bower
Robert Parcher
JMG:KB:kob
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APPROVED AS TO
FORM 8~ LANGUAGE
MIAMI BEACH REDEVELOPMENT AGENCY ITEM SUMMARY
Condensed Title:
A Resolution of the Chairperson and Members of the Miami Beach Redevelopment Agency adopting and appropriating
the operating budget for the City Center Redevelopment Area and the Anchor Shops and Parking Garage for Fiscal
Year 2009/10.
rcey mtenaea uuLCOme supportea:
Improve the City's overall financial health and maintain overall bond rating
Supporting Data (Surveys, Environmental Scan, etc.):
One of the City's Key Intended Outcomes is to ensure well designed and well maintained capital projects and
infrastructure. In keeping with this goal, approximately 56 percent or $19 Million of the proposed Budget for City Center
is being allocated towards new and on-going capital projects in the area as well as maintenance of capital projects
funded by the RDA. Additionally, according to the 2009 Community Survey, arts, culture and the availability of public
parking were among the key factors driving overall satisfaction levels. Major projects being funded through the RDA
address these very priorities, including the New World Symphony Garage and Park (Lincoln Park) and the Lincoln Road
-Alton to Lennox project.
Issue:
Should the RDA Board adopt the proposed operating budget for the City Center Redevelopment Area and the Anchor
Shops and Parking Garage for Fiscal Year 2009/10?
item summary~rcecommenaation:
The proposed budget for the City Center Redevelopment Area for Fiscal Year 2009/10 has been prepared to coincide
with the overall City budget process, and is being presented to assist in providing a comprehensive overview of the
district. It should be noted that historically, revenues and expenses associated with operations of the Anchor Shops
and Parking Garage were included as line items in the RDA Budget for approval. In order to eliminate any perception
that proceeds from the Facility's operations are pooled with TIF and other Trust Fund revenues, they are being
presented in a separate schedule to the Budget for approval. Also, pursuant to the finalization of the FY 2007/08 tax roll
by the County Tax Assessor, the proposed RDA Budget reflects the County's anticipated adjustment (reduction) for
overpayment of TIF during FY 2007/08, (totaling $1,178,873 for the City's Share and $954,605 for the County's share),
representing a total decrease in TIF revenues of $2.1 Million. In order to address the existing and future obligations of
the Redevelopment Area, it is recommended that the Redevelopment Agency adopt the attached Resolution which
establishes the operating budget for the City Center Redevelopment Area and the Anchor Shops and Parking Garage
for FY 2009/10.
Advisory Board Recommendation:
Financial Information:
Source of Amount
Funds: ~ $34,652,694
2 $ 3,374,589
PI Total $38,027,283
Financial Impact Summary:
.Account
City Center Redevelopment
Area Fund
Anchor Shops and Parking
Approved
City Clerk's Office Legislative Tracking:
Kent Bonde, Jose Cruz and Kathie Brooks
Sign-Offs•
o ator .Budget
Director Assistant
Director Executive
Director
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AGENDA ITEM '~
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City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
REDEVELOPMENT AGENCY MEMORANDUM
TO: Chairperson and Members of the Miami Beach Redevelopment Agency
FROM: Jorge M. Gonzalez, Executive Director
DATE: September 24, 2009
SUBJECT: A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY, ADOPTING AND APPROPRIATING THE
OPERATING BUDGETS FOR THE CITY CENTER REDEVELOPMENT AREA
AND THE ANCHOR SHOPS AND PARKING GARAGE FOR FISCAL YEAR
2009/10
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The proposed budget for the City Center Redevelopment Area (RDA) for Fiscal Year
2009/10 has been prepared to coincide with the overall City budget process, and is being
presented today to assist in providing a comprehensive overview of the district.
Following a period of extensive growth spanning the existence of City Center, the taxable
value in the Redevelopment Area is anticipated to decline for the first time in its history,
largely due to the deterioration of the economy, coupled with the decline in property values.
Based on the 2009 Certificate of Taxable Value from the Property Appraiser's Office, it is
anticipated that value of property in City Center will decline by 7% in FY 2009/10. Based on
the proposed millage rates (City - 5.6555 mills/County - 4.8739 mills), the RDA anticipates
receiving $31.4 Million in TIF revenues. However, as in previous years, the City also
received correspondence from the County, advising of the finalization the tax roll for the prior
year, which in the case of FY 2007/08, reflected nearly an 8 percent decrease from the
preliminary valuation for the same year. Consequently, the County anticipates adjusting the
FY 2009/10 TIF payment for overpayment in FY 2007/08 by $954,605. The City's TIF
payment is also anticipated to be impacted by this adjustment, by estimated $1,178,873.
Additional sources of revenue include an estimated $3.4 Million in Resort Tax contributions;
a'/2 mill levy in the amount of $1.5 Million, to be set aside for the Children's Trust pursuant to
an Interlocal Agreement, dated August 16, 2004 between the RDA, the City of Miami Beach
and Miami-Dade County; and an estimated $385,000 in interest income.
Administrative Expenses total $575,564, comprising a management fee of $443,221 which
is allocated to the General Fund to pay for direct and indirect staff support for the RDA and
$86,000 for actual operating expenses. It should be noted that the increase in the
Management Fee allocation from last year's budget is reflective of actual city resources
applied to the operation of the RDA, as supported by the RSM McGladrey Cost Allocation
Study, dated July 20, 2009. It should further be noted that Administrative and Operating
expenses only account for two percent of the total budget.
September 24, 2009
Redevelopment Agency Memorandum
Operating Budget for City Center for FY 2009/10
Page 2 of 2
Project-related expenses account for approximately $22.1 Million, which includes $2.9
Million to be allocated for community policing initiatives in City Center to continue to provide
enhanced levels of staffing and services throughout the area, and $3 Million for maintenance
of RDA capital projects. On-going and planned capital projects in City Center are projected
to account for approximately $13.2 Million in the FY 2009/10 Budget and generally include
design and construction of Lincoln Park (associated with the New World Symphony project);
additional funding for the municipal garage component of the New World Symphony project,
to be called the Pennsylvania Avenue Garage; and additional funding required to complete
improvements to Lincoln Road, between Lenox Avenue and Alton Road. An additional $3
Million has been set as a contingency for the New World Symphony/Lincoln Park complex.
Previously funded projects that are underway in City Center include construction of
streetscapes throughout City Center; construction of Collins Park, including the restoration of
the Rotunda; implementation of improvements to Lincoln Road between Collins and
Washington Avenues; and, planning and design of landscaping improvements to the
Botanical Garden.
The current combined debt service on the 2005 Series Bonds and the Parity Bonds
accounts for approximately $8.4 Million annually. City Center also continues assuming debt
service payments on the portion of the Gulf Breeze Loan used to pay for the Bass Museum
expansion and renovation, and the portion of the Sunshine State Loan Program used for
Lincoln Road improvements, which collectively account for approximately $1.6 Million. These
payments were previously made from water, sewer, storm water, gas and resort tax
proceeds.
Reserve line item expenditures include those items that, pursuant to the existing Bond
Covenants, may only be expended once the annual debt service obligations have been met.
These include the County and City's administrative fees and the remittance of the'/2 mill tax
levy back to the Children's Trust.
The revenues and expenses associated with operations of the Anchor Shops and Parking
Garage are presented as a separate schedule in order to eliminate any perception that
proceeds from the facility's operations are pooled with TIF and other Trust Fund revenues.
Garage revenues are projected at $2.6 Million, with operating expenses, (including
depreciation, and contractual revenue-sharing obligations with Loews), of $2.1 Million. The
retail operation is expected to generate $696,000 in revenues, with operating expenses
associated with the retail management contract and related reimbursable expenditures
estimated at approximately $60,000. Additionally, based on the previously referenced Cost
Allocation Analysis, a Management Fee line item has been included in the FY 2009/10
operating expenses to address certain city-related costs associated with the operation of
the facility, which were not included as part of the garage or retail operating budgets.
CONCLUSION
In order to address the existing and future obligations in the Redevelopment Area, it is
recommended that the Redevelopment Agency adopt the attached Resolution which
establishes the operating budgets for the City Center Redevelopment Area and the Anchor
Shops and Parking Garage for FY 2009/10.
JMG/TH/KB/KOB
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Miami Beach Redevelopment Agency
City Center Redevelopment Area
Proposed FY 2009/10 Operating Budget
Budget
FY 08109 FY 08108 FY 08110 Variance
Budget Protected Inc1(Dec) Budget From FY 08108
Revenues and Other Sources of Income
Tax Increment -City (8 5.6555 $18,345,335 $18,345,335 $0 $16,946,393 ($1,398,942)
Adjustment to City Increment for FY 2007 Tax Roll (1) (1,111,989) (1,111,989) 0 (1,178,873) (66,884)
Taxlncrement-County (Q 4.8379 (2) 15,808,032 15,683,201 (124,831) 14,496,500 (1,311,532)
Adjustment to County Increment for FY 2007 Tax Roll (2) (846,734) (846,734) 0 (954,605) (107,871)
50°h Contribution from Resort Tax 3,505,500 3,460,000 (45,500) 3,460,000 (45,500)
'1!2 Mill Children's Trust Contribution (3) 1,621,902 1,621,902 0 1,498,222 (123,680)
Interest Income 1,294,773 386,092 (908,681) 385,057 (909,716)
Fund Balance Reallocation: (Non-TIF) 386,922 386,922 0 0 (386,922)
Fund Balance Reallocation: (TIF) 0 0 0 0 0
TOTAL REVENUES $39,003,741 $37,924,728 ($1,078,012) $34,652,894 (54,351,047)
AdminlOperating Expenses
Management fee, salaries & benefits $414,000 $414,000 $0 $489,564 $75,564
Advertising & promotion 1,000 1,000 0 1,000 0
Postage, printing 8 mailing 3,500 1,050 (2,450) 3,500 0
Office supplies & equipment 3,000 2,700 (300) 3,000 0
Meetings & coMerences 4,000 4,000 0 4,000 0
Dues 8 subscriptions 1,000 950 (50) 1,000 0
AudH fees 8,500 8,500 0 8,500 0
Professional 8 related fees 55,000 25,933 (29,067) 55,000 0
Miscellaneous expenses 10,000 2,350 (7,650) 10,000 0
Total Admin/Operating Expenses $500,000 $460,483 ($39,517) $575,564 $75,584
Project Ezpenaes
Community Policing $3,262,158 $2,762,380 ($499,778) $2,871,494 ($390,664)
Capital Projects Maintenance {4) 2,730,856 2,730,856 0 3,050,775 319,919
NWS Project/Lincoln Park Complex Contingency 0 0 0 3,060,189 3,060,189
Transfer to Capital Projects (5) 20,319,813 20,319,814
~ 1 13,170,050 (7,149,763)
Total Project Expenses $26,312,827 $25,813,050 ($498,777) $22,152,508 ($4,160,319)
Reserve and Debt Service Obligations
Debt Service Cost - 2005 + Parity Bonds $8,393,267 $8,374,697 ($18,570) $8,393,267 $0
Current Debt Service -Lincoln Rd Project (6) 1,205,288 1,082,329 (122,959) 1,086,961 (118,327)
Current Debt Service -Bass Museum (7) 506,108 506,108 0 506,531 423
Reserve for County Admin Fee (8) 224,419 222,547 (1,872) 203,128 (21,291)
Reserve for CMB Admin Fee (9) 258,500 258,500 0 236,513 (21,987)
Reserve for Children's Trust Contribution 10) 1,603,332 1,603,332 0 1,498,222 (105,110)
Repayment-Prior Yr advances from Non-TIF funds 0 0 0 0 0
Total Reserve and Debt Service Obligations $12,190,914 $12,047,513 ($143,401) $11,824,622 ($268,291)
TOTAL EXPENSES AND OBLIGATIONS $38,003,741 $38,321,046 ($682,695) $34,652,694 ($4,351,048)
NET $0 (5396,316) ($386,316) ($0) ($0)
Note #1 Adjustment for final FY 07/08 Tax Roll -per correspondence from County dated 08/04!09
Note #2 Pursuant to BCC Budget Hearing on 9/3/09
Note #3 112 Mill Children's Trust pmt to RDA per Intertocel
Note #4 Separate detail for capital maintenance items from PW
Note #5 Reflects appropriations for CIP & PW projects
Note #6 Payment of Lincoln Road current debt service on Sunshine State Loan
Note #7 Payment of Bass Museum current debt service on Gulf Breeze Loan
Note #8 County admin fee (~ 1.5°h of County's increment revenue
Note #9 CMB Admin Fee ~ 1.5°h of City's increment revenue
Note #10 112 mill Children's Trust Contribution
Proposed FY 2009/10 Anchor Shops and Parking Garage (16th Street Parking Garage) Operating Budget
Budget
FY 08108 FY 08109 FY 08110 Vartance
Revenues: Budget (1) Projected InG(Dec) Budget From FY 08109
Parking Operations $2,379,917 $2,585,000 $205,083 $2,632,000 $252,083
Retail Leasing $674,648 $683,779 $9,131 $696,489 $21,841
Interest Pooled Cash $445,687 $46,100 x$399,587) $46,100 ($399,587)
TOTAL REVENUES $3,500,252 $3,314,878 ($185,373) $3,374,589 ($125,663)
Operating Expenses:
Parking Operations $1,705,306 $1,700,768 ($4,538) $1,802,864 $97,558
Garage Use Fee (To Lcews) (1) 349,417 342,000 (7,417) 355,208 5,791
Retail Leasing Management Fee 62,942 55,000 (7,942) 60,000 (2,942)
Management Fee 0 0 0 158,129 158,129
Reserve Future Capital -Parking Operetions 583,194 563,832 (19,362) 375,922 (207,272)
Reserve Future Capital -Retail Operations 799,393 653,279 (146,114) 622,466 (176,927)
TOTAL EXPENSES $3,500,252 $3,314,878 ($185,373) $3,374,589
($125,883)
NET $0 $0 $0 $0 $0
(1) -Based on 26% of annual gross parking revenuues in excess of $1,390,000. (Includes contingency amount)
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