2014-28644 Reso RESOLUTION NO. 2014-28644
A RESOLUTION OF THE MAYOR AND CITY COMMISSION .OF
THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND
AUTHORIZING THE MAYOR AND CITY MANAGER TO ENTER
INTO A MEMORANDUM OF INTENT BETWEEN THE CITY AND
MIAMI-DADE COUNTY REGARDING FUNDING FOR THE
CITY'S CONVENTION CENTER EXPANSION AND
RENOVATION PROJECT
WHEREAS, over the past year, staff from Miami-Dade County (County) and the
City of Miami Beach (City) have held discussions regarding the City's Miami Beach Convention
9 9 Y
Center expansion and renovation project (the Project), which Project will result in the continued
viability of the Convention Center and which will also generate a major economic benefit to the
citizens of Miami-Dade County; and
WHEREAS, more recently, County and City staff have discussed other cash flow
exchange concepts in order for: 1) the County to address near-term operational budgetary needs,
and 2) the City to have the flexibility to fund longer-term capital needs including partial funding
related to sea-level rise; and
WHEREAS, accordingly, the City and the County have negotiated the attached
Memorandum of Intent (MOI); which MOI, if approved by the City Commission, will be executed by
the County Manager on behalf of the County; and
WHEREAS, in order to be effectuated, the terms contained in the attached MOI
shall be further subject to, and conditioned upon, subsequent actions and approvals to be taken by
the City Commission and the Board of County Commissioners, respectively.
NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the City of Miami Beach hereby
approves and authorizes the Mayor and City Manager to execute the Memorandum of Intent attached
as Attachment "A" to this Resolution regarding funding for the City's Convention Center Expansion .
and Renovation Project.
PASSED and ADOPTED this 27th day of June, 2014.
� R
ATTEST: .e4':.••' APPROVED AS TO
'•� FORM & LANGUAGE
&.FOR EXECUTION
:INCORP ORATED:
CITY CLERK �Z
0
•' � City Attomey Date
Fi ,rte
/M I AtM 1 B EAC H
City of Miami Beath, 1700 Convention Center Drive, Miami Beach, Florida 33139,www.miamlbeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Phillip Levine and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: June 27, 2104
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND
CITY MANAGER TO ENTER INTO A MEMORANDUM OF INTENT BETWEEN THE
CITY AND MIAMI-DADE COUNTY REGARDING FUNDING FOR THE CITY'S
CONVENTION CENTER EXPANSION AND RENOVATION PROJECT
ADMINISTRATION RECOMMENDATION
Adopt the resolution approving and authorizing the Mayor and City Manager to enter into the
Memorandum of Intent.
ANALYSIS
Over the past year, the staff from Miami-Dade County (County) and City of Miami Beach (City)
have held discussions regarding the development and funding of a new and expanded
Convention Center on Miami Beach so that our community can host larger conventions, which
would be a major economic benefit. More recently, County and City staff have discussed other
cash flow exchange concepts in order for: 1) the County to address near-term operational
budgetary needs, and 2) the City to have the flexibility to fund longer-term capital needs,
including partial funding for sea-level rise mitigation projects. Additionally, both administrations
believe that funding flexibility should be planned and maintained to partially support operational
costs for a possible future mass transit connection between Miami Beach and the mainland.
As a result, I am recommending the following items that would need to be incorporated into
various agreements and plans over the summer:
1) A modification to the interlocal agreement between the County and City, which governs the
payments from the County to the City of certain funds for projects within the former South
Pointe Redevelopment Agency (South Pointe RDA), to defer payments with the practical
estimated effect, based on projections, of deferring the estimated $18 million payment due
from the County in FY 2014/15 and deferring $14 of the $18 million due from the County in
FY 2015/16.
Agenda Item
Date
Memorandum of Intent Between the City and Miami-Dade County
Page 2
Current Deferred
Payments Payments
Due the City Due the City
Fiscal Year from the County from the County
2014-15 $ 18,000,000 $ -
2015-16 18,500,000 4,625,000
2016-17 9,000,000 9,000,000
2017-18 9,400,000 16,150,000
2018-19 9,700,000 16,575,000
2019-20 10,100,000 10,100,000
2020-21 10,400,000 19,400,000
2021-22 - 9,250,000
Total $ 85,100,000 $ 85,100,000
An additional modification to the interlocal agreement would be a clarification that the City
may use these proceeds and unallocated proceeds from prior years received under this
agreement in any manner that it sees fit. The current agreement provides for the use of this
funding for South Pointe, Convention Development Tax, and Resort Tax eligible projects.
The flexibility provided would be especially important in helping the City address stormwater,
climate change and sea-level rise issues.
These modifications help address the County's near-term budgetary issues as well to
partially address City's need for long-term capital funding flexibility.
2) Extend the life of the City Center Community Redevelopment Area (CRA) from FY 2022-23
to FY 2044/45 at the 95 percent tax increment funding level. This allows the CRA to fund,
through the issuance of CRA bonds, the additional funding needed for construction costs of
the new and expanded Convention Center as well as to fund $36 million of previously
approved City Center projects, and provide increased operating and maintenance for the
facility. The $36 million of previously planned City Center projects include $20 million
programmed for the Lincoln Road Improvement from Washington Avenue to Lennox Avenue
which will be based on the Lincoln Road Master Plan currently underway, $3.75 million for
the second half of the funding for the Bass Museum Interior Expansion Project, and $12
million for Improvements to 17th Street and Connectors to Lincoln Road. The issuance of
CRA Bonds will be done through a public offering of debt. The marketplace will dictate the
debt service coverage and debt service reserve requirements for those bonds which will
have a direct impact on how long those bonds will be outstanding.
Since the expansion of the CRA is only for the purposes of providing funding for the
Convention Center expansion, providing funding for previously approved City Center
projects, and providing an adequate additional operating and maintenance subsidy for the
facility, both the County and City administrations agree to recommend that the CRA would
not need to seek prior approval of each year's budget from the Board of County
Commissioners. However, County and City administrations agree that representation by
one County Commissioner on the CRA Board would be appropriate.
Memorandum of Intent Between the City and Miami-Dade County
Page 3
3) Pursuant to an existing interlocal agreement, the City currently receives a flat $4.5 million
per year from Convention Development Taxes to operate and maintain the Convention
Center and that funding will remain in place. The agreement will allow for an additional
annual operating and maintenance subsidy starting at $1 million in 2017 and growing to $4
million by 2021, which will then escalate at 4 percent or CPI annually (whichever is less)
starting in 2026 over the life of the Convention Center, funded either through CRA funds or
through Convention Development Taxes, depending on the availability of the latter,
4) In addition, The County will allocate, from legally available Convention Development Taxes,
up to $1.5 million per year for 30 years toward eligible Convention Development Tax
projects to incentivize the development of a new Convention Center Hotel at or near the
Convention Center once the hotel is built and is generating new bed taxes. Both County
and City administrations believe that $1.5 million is a fair estimate of the bed taxes that a
new Convention Center Hotel would generate.
The agreement also includes the potential for further recommendations for operating and
maintenance costs of a mass transit connection between Miami Beach and the mainland from
Convention Development Taxes on a subordinated basis to all existing agreements including
the modified interlocal agreement between the County and the City. Both the County and City
administrations agree that a transit connection link is necessary for the growth of our community
and therefore will continue discussions on this matter.
In addition, the County and City administrations will actively work towards determining whether
transferring the responsibility of beach maintenance to the City in exchange for the transfer to
the City of the South Beach Local bus service (along with the related County funding) and
permitting the City to operate a citywide trolley services, create economic and or operation
benefits to both parties and if so, to recommend these items to their respective Boards for
approval.
CONCLUSION
The administration recommends that the Mayor and City Commission adopt the resolution
approving and authorizing the Mayor and City Manager to enter into the Memorandum of Intent
subject to, and conditioned upon, subsequent actions and approvals to be taken by the City
Commission and the Board of County Commissioners, respectively.
JLM\KGB
Memorandum of Intent
Between
Miami-Dade County, Florida
And
City of Miami Beach, Florida
Over the past year, the administrations of Miami-Dade County (County) and the City of Miami Beach
(City) have held discussions regarding the development and funding for the renovation and expansion
of the Miami Beach Convention Center (the Convention Center Project) so that our community can host
larger conventions, which would be a major economic benefit. The Convention Center Project serves a
Countywide goal of economic development while its location greatly benefits the economic vibrancy of
Miami Beach. More recently, County and City staff have discussed other cash flow exchange concepts in
order for: 1) the County to address near-term operational budgetary needs, and 2) the City to have the
flexibility to partially fund longer-term capital needs, including those related to sea-level rise.
Additionally, both administrations believe that funding flexibility should be planned and maintained to
partially support operational costs for a future mass transit connection between Miami Beach and the
mainland.
Both Mayors and the City'Manager (Mayor Gimenez of Miami-Dade County, Mayor Levine of Miami
Beach, and City Manager. Morales,,respectively) have agreed to recommend to their respective
Commissions the following':funding concepts for approval:
1) An amendment to the current Interlocal Agreement between the County and City (the
Interlocal Agreement), which governs the payments from the County to the City of certain
funds for projects within the former South Pointe Redevelopment Agency (South Pointe
RDA); said proposed amendment, in part, to defer payments with the practical estimated
effect as follows:
Current Deferred
Payments Payments
Due the City Due the City
Fiscal Year from the County from the County
2014-15 $ 18,000,000 $ -
2015-16 18,500,000 4,625,000
2016-17 9,000,000 9,000,000
2017-18 9,400,000 16,150,000
2018-19 9,700,000 16,575,000
2019-20 10,100,000 10,100,000
2020-21 10,400,000 19,400,000
2021-22 - 9,250,000
Total $ 85,100,000 $ 85,100,000
The proposed amendment to the Interlocal Agreement would also be structured so that the
City may use these proceeds as well as unallocated proceeds from prior years received under
the Interlocal Agreement, in any manner that the City sees fit, including as it relates to address
sea level rise issues .
This proposed amendment to the Interlocal Agreement helps address the County's near-term
budgetary issues, as well to partially address the City's need for long-term capital funding
flexibility.
2) An extension to the life of the City Center/Historic Convention Village Redevelopment and
Revitalization Area (City Center RDA) from FY 2022-23, to FY 2044-45, at the 95 percent tax
increment funding level. This allows the City Center RDA to fund, through the issuance of
City Center RDA Bonds (the Bonds), approximately $275 million of the projected $582
million cost of the Convention Center Project; $36 million of ancillary, previously authorized
City'Center RDA capital projects (approved by the City Center RDA Board through the
adopted Capital Improvement Plan for the,City Center RDA); as well as to provide for an
ongoing adequate operating and maintenance subsidy for the Miami Beach Convention
Center facility (Convention Center Operating and Maintenance Subsidy). The anticipated
issue size for the Bonds, including issuance costs and debt service reserve, is approximately
$350 million. The preliminary and estimated funding model is shown as attached Exhibit
3) Both the County and City agree that the Convention Center Operating and Maintenance
Subsidy should continue as long as the Convention Center exists. Pursuant to the existing
Convention Development Tax Interlocal Agreement, as amended (the CDT Interlocal), the
City currently receives a flat $4.5 million per year from Convention Development Taxes to
operate and maintain the Convention Center, and that funding will remain in place. The
extension of the City Center RDA will allow for an additional annual operating and
maintenance subsidy starting at $1 million in 2017, and growing to $4 million by FY 2021,
which will then escalate at the lesser of Miami Urban Area CPI or 4 percent annually,
starting in FY 2026 over the life of the City Center RDA.
When the life of the City Center RDA terminates, the funding for Convention Center
Operating and Maintenance Subsidy, will transfer to the Convention Development Tax.
Also, to the extent there are Convention Development Taxes legally available in excess of
current County contractual obligations, as of June 26, 2014 (such obligations collectively
referred to as Existing County Funding Obligations), the Convention Center Operating and
Maintenance Subsidy may be paid from Convention Development Taxes. Therefore,
beginning in FY 2026, and to the extent that Convention Development Taxes exceed, by
more than $5 million, Existing County Funding Obligations, Convention Center Operating
and Maintenance Subsidy, shall reimburse the City Center RDA for the amount paid from
the City Center RDA in the prior fiscal year. Such amounts reimbursed to the City Center
RDA shall be applied to debt service payments for the Bonds, or to sinking funds created for
that purpose.
4) The provision of$275 million of capital funds for the Convention Center Project and the$36
million of ancillary projects, through the issuance of the Bonds (in the amount of
approximately $350 million), will be done through a public offering of debt. The
marketplace will dictate the debt service coverage and debt service reserve requirements
for the Bonds; which will have a direct impact on how long those Bonds will be outstanding.
The Bonds shall be efficiently structured jointly by the County and City Finance
Departments.
5) Any excess tax increment revenues remaining within the City Center RDA after the payment
of debt service in existence as of June 26, 2014; the Convention Center Operating and
Maintenance Subsidy; the new debt service for the Bonds; and payment of City Center RDA
operating expenses (as provided for in the Interlocal Agreement and,starting in FY 2023 and
through the remaining life of the City Center RDA, such operating expenses shall be capped
at a growth rate of the lesser of Miami Urban Area CPI or 3 percent) will remain in the City
Center RDA to be used to early extinguish debt,to the extent possible. Upon the repayment
of the Bonds, the City Center RDA will terminate; all funds remaining within the City Center
RDA will be proportionally returned to the County and the City based upon prior
contributions into the City Center RDA; and the funding of the Convention Center Operating
and Maintenance subsidy,will transfer to the Convention Development Tax.
To the extent that County Tax increment is used after FY 2023 for operating expense of the
City Center RDA,the County's proportionate share will be rebated in the following year.
6) The City Center RDA will not need to seek prior approval of each year's budget from the
Board of County Commissioners, and/or any other department, division, board, agency
and/or committee of the County.
7) County and City administrators agree that one County Commissioner may serve as a voting
County member of the board of the Miami Beach Redevelopment Agency.
8) In order to incentivize the development of a new Convention Center headquarters hotel to
be developed and constructed in proximity to the newly renovated and expanded
Convention Center, he County will allocate, from legally available Convention Development
Taxes, subordinate to the Existing County Funding Obligations, up to $1.5 million per year
for 30 years for eligible Convention Development Tax projects. This allocation shall
commence 1 year after completion of a proposed Convention Center headquarters hotel.
Upon 1 year from completion of the aforementioned Convention Center headquarters
hotel, and provided the County commences to from legally available Convention
Development Taxes up to $1.5 million per year for 30 years for eligible Convention
Development Tax projects, the City will agree that the 1 percent Resort Tax (approved by
Miami Beach voters in 2012 for renovation of the Convention Center) collected at such hotel
would be used for debt service payments on the Bonds.
9) Following the City and County's approval and execution of this Memorandum of Intent, the
County and City administrations will use mutual good faith efforts to determine whether
transferring the responsibility of beach maintenance to the City in exchange for the transfer
to the City of the South Beach Local bus service (along with the related County funding); and
permitting the City to operate Citywide trolley services, would create economic and or
operational benefits to both parties and, if so,to recommend these items to their respective
Commissions for approval.
10) The funding of.. the ._Convention Center Operating and .Maintenance Subsidy from the
extended City Center RDA for as long as the City Center RDA is in existence will allow
budgetary flexibility for the County and City to fund, if they choose to, operating and
maintenance costs of a mass transit connection between Miami Beach and the mainland
from Convention Development Taxes, on a subordinated basis to all existing agreements
including, without limitation, the amended CDT Interlocal Agreement between the County
and the City. Both the County and City agree that a mass transit connection is necessary for
the growth of our community and therefore will actively continue discussions on this
matter.
11) The terms and conditions contained in this Memorandum of Intent shall be further subject
to, and conditioned upon, subsequent actions to be taken, respectively, by the City and the
County including,-without limitation and, such further action as may be prescribed herein,
and any other action required by law, as necessary to effectuate and finalize the terms and
condition in the Memorandum of Intent.
This Memorandum of Intent is executed by the undersigned authorized representatives by the City and
County this day of , 2014(Effective Date).
Carlos A. Gimenez Philip Levine Jimmy L. Morales
Mayor Mayor City Manager
Miami-Dade County City of Miami Beach City of Miami Beach
�omco�rlw _cy�cDO -cct
Gg..I I N
- , I -o� -v t2 v 7
c� Zq o vj i:r,� cct _6 6 -
m m th o I w I I I I
lq..IMln --m �. -on . "i
ID c�i I
W m z;9 -
O.u
o 0
U
M g
I 4�!w orz "I I I x
- . - . . . R Im c�mt w
N,m,m
(,I. c:� c!
"t v� -Lrk cl - P_b co�cr� `1 vct - - -
0 m �2�2�2 �2 t2 I2�2 �2�2 01'N F, 'N I"vN Nn
X
LL,
U
I I I I I I I I I I I I I.I I I I I I I I m
NNNNNINNNN N ,, mw a:t ww
Qd&ddd&dcT aT 6 c5 6 c5 c5 6 c5 6 c5 6 n n 6 n n n a a a n 0 nnrr lb rl�ll�P% 1� t-i pl.P_,rl.pl�pl�I-L ll�ll� ll�ll�ll� ll� ll�ll� rl�ll�
IN 1
wo
Z m
L)
o cb I
Mm ll�I m I'll cli v�
R n IR R Iq
VU E E
0 o m o
L)u
N.N.cl!N N m m m ll�IR IQ IQ
Mm n n cl�I n n
I I I.......
"�2 N-2-2
IN
ni Z cL Ili r_�... o ll�w c� N w N
r-T.6
;- �- m w A. I.1 1
I lc�lll lc� tl�Q m C�Ili t P IAm N m m Q m o
O
N.I.7
cD I Ll�Cli lc�Is It I-I- n Ili cl�I. N. cl! cl!
>
> oll I
ll�Ili cli 2 w= o cli N N N I I q n -1 N 1�2 m'..
c:�cli w
-mm.N 22,oNv.
O� mw w
_mmAmr NI ull m W rl�M cNl I v
cl� - - - -
o> ll� 11:�F cs
u �2�E:1 �2
C w o.00.-ow
uiuid(6RcR CO C�COCRCR C�cc!CR CR OR CR a�aR OR CR aR OR OR OR CR CR CR cc!QR aq aR CR
-NIA- -------
ggggs 929299-.
.2 CR 1�ll� IR 1p ll�IR 1p IR IR "R o IR IR ll�o lc� w IR IR�R�q IR o IR IR m-lj�
o Bl
O
o
ILI o I I I I I w I.. I .2N w..
�! NA V1 . .n . . .;;-IN
lc� lc� mt v-IR ll�vL CD cF�R. I w Lq clt I'11� m Q :t P,�w� N c�
I w-
Nw�m�_v (,R'�2
E I m,I I 1 ',2 o v I N I.- -.No.
. om . . LQ.cr�N w� Lr! ('t-1 Ll�
o t2 N I N I IT .;;.�?w
I
EL N __�2I
clJ Ili w -t 14 -1 o
o
E N N N N cNl N cNt c�i c�t m N N N N N
E "o " - . . . . .N .cNJ (NI cN!N N N N N N N N ct c,�c,�
w ci Ni N N N N N N N N N N N N N N N N N N N N N N N N N N "N"NN NN"",NN yI
Lu o N I I I I I N N N I I I I...
. FL
LQ o
NNNNN"N .5
.I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I
N N N N N N N N N N N N
-.R It R e e
.n000000ao o........ o.... .......
o c� 4Q vi I R R R LQ u�LQ LQ Lf! U�u�U�wi LQ u�v� vi v� ui wi v! w!N w�w!w�v�9
mm-ImIm E
W o N 2
-) w-- '. . o
I cc
0 x
o.
IL iR
o cl�114 IQ lc�rl�
uj 2 TE m �;
D - x °n 1I "1'o
Z E o Z 2 0
moN�N.N�
m.m.N o
W cli Lq v�lc� c� I IQ cl IR M n Iq Ip
> N I I I I I I I m Q7 o w w o A n A A m m m m I I L c;O ci
uj
2 o
o
'2'�E�2�R Fq
W o ',t 88 8 oo'o .........N N N N N N N N N I Im mm m"
R.. oa000 ooRoo2o Li.
cla 0 .... ......aa
Lu
z a� o
0 L) m
cc
W oc.Qo....
Lu N N N N N _2 R
NNN NN N NNNNNN
E
>. w
K co
/\A I AM I B EAC H
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
MEMORANDUM
TO: Mayor Philip Levine and Members of the City Commission
CC: Raul J. Aguila, City Attorney
Rafael E. Granado, City Clerk
FROM: Jimmy L. Morales, City Manager
DATE: June 25, 2014
SUBJECT: Request to hold a Special City Com ission Meeting
Pursuant to Section 2.04 of the City Charter, I ereby request that a Special Meeting of the City
Commission be called for Friday, June 27, 2014 at 2:00 p.m. at the Commission Chambers,
3rd Floor, City Hall, 1700 Convention Center Drive, to consider:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY
MANAGER TO ENTER INTO A MEMORANDUM OF INTENT BETWEEN THE CITY
AND MIAMI-DADE COUNTY REGARDING FUNDING FOR THE CITY'S CONVENTION
CENTER EXPANSION AND RENOVATION PROJECT.
If you have any questions, please feel free to contact me.
JLM/REG
F:\CLER\$ALL\REG\NOTICE OF SPECIAL MEETING.DOCX
MIAMIBEACH
CITY OF MIAMI BEACH
NOTICE OF SPECIAL CITY COMMISSION MEETING;
NOTICE IS HEREBY given that the City Commission of the City of Miami Beach, Florida, will
hold a Special City Commission Meeting on Friday, June 27, 2014 at 2:00 p.m. in the
Commission Chambers, 3rd Floor, City Hall, 1700 Convention Center Drive, Miami Beach,
Florida, to consider the following:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY
MANAGER TO ENTER INTO A MEMORANDUM OF INTENT BETWEEN THE CITY
AND MIAMI-DADE COUNTY REGARDING FUNDING FOR THE CITY'S
CONVENTION CENTER EXPANSION AND RENOVATION PROJECT.
Interested parties are invited to appear at this meeting, or be represented by an agent, or to
express their views in writing addressed to the City Commission, c/o the City Clerk, 1700
Convention Center Drive, 1" Floor, City Hall, Miami Beach, Florida 33139. A copy of this item is
available for public inspection during normal business hours in the City Clerk's Office, 1700
Convention Center Drive, 1St Floor, City Hall, Miami Beach, Florida 33139. This meeting or this
item may be continued, and under such circumstances, additional legal notice need not be
provided.
Pursuant to Section 286.0105, Fla. Stat., the City hereby advises the public that if a person
decides to appeal any decision made by the City Commission with respect to any matter
considered at its meeting or its hearing, such person must ensure that a verbatim record of the
proceedings is made, which record includes the testimony and evidence upon which the appeal
is to be based. This notice does not constitute consent by the City for the introduction or
admission of otherwise inadmissible or irrelevant evidence, nor does it authorize challenges or
appeals not otherwise allowed by law.
To request this material in accessible format, sign language interpreters, information on access
for persons with disabilities and/or any accommodation to review any document or participate in
any City-sponsored proceeding, please contact us five days in advance at (305) 673-
7411(voice) or TTY users may also call the Florida Relay Service at 711.
Rafael E. Granado, City Clerk
City of Miami Beach
Ad: 904
Please publish on Thursday, June 26, 2014