618-2015 RDA-1B RESOLUTION NO. 618-2015
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,THE ANCHOR SHOPS AND
PARKING GARAGE,AND THE PENNSYLVANIA AVENUE SHOPS
AND PARKING GARAGE FOR FISCAL YEAR 2015/16.
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 Fiscal Year 2015/16;
and
WHEREAS, the proposed budgets for the Anchor Shops and Parking Garage and the
Pennsylvania Avenue Shops and Garage have been included as separate schedules to the City
Center Redevelopment Area Budget, reflecting projected revenues and operating expenses for the
fiscal year; and
WHEREAS, the Executive Director of the Miami Beach Redevelopment Agency
recommends approval of the proposed Fiscal Year 2015/16 budgets for the City Center
Redevelopment Area, as well as for the Anchor Shops and Parking Garage and the Pennsylvania
Avenue Shops and Garage.
NOW,THEREFORE,BE IT DULY RESOLVED BY THE CHAIRPERSON AND MEMBERS
OF THE MIAMI BEACH REDEVELOPMENT AGENCY,that the Chairperson and Members hereby
adopt and appropriate the operating budget for the City Center Redevelopment Area, the Anchor
Shops and Parking Garage, and the Pennsylvania Avenue Shops and Garage for Fiscal Year
2015/16, as follows:
City Center Redevelopment Area $44,240,000
Anchor Garage Parking Operations $4,080,000
Anchor Garage Retail Operations $847,000
Pennsylvania Avenue Garage Parking Operations $1,158,000
Pennsylvania Avenue Garage Retail Operations $527,000
PASSED AND ADOPTED this 30TH day of September, 201,,
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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 budgets for the City Center Redevelopment Area, the Anchor Shops and Parking Garage and the
Pennsylvania Avenue Shops and Garage for Fiscal Year 2015/16.
Key Intended Outcome Supported:
Enhance Beauty and Vibrancy of Urban And Residential Neighborhoods; Focusing on Cleanliness, Historic
Assets, In Select Neighborhoods And Redevelopment Areas.
Supporting Data (Surveys, Environmental Scan, etc.):
One out of ten residents(10%)feels the best way to improve the overall quality of life in Miami Beach is to increase
City beautification and cleanliness.
Item Summary/Recommendation:
The proposed budget for the City Center Redevelopment Area for Fiscal Year 2015/16 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. Additionally, the revenues and expenses associated with the operations of the Anchor Shops and Parking
Garage as well as the Pennsylvania Avenue Shops and Garage are presented as separate schedules so as to
eliminate any perception that proceeds from the Facility's operations are pooled with TIF and other Trust Fund
revenues.
Based on the 2015 Certificate of Taxable Value from the Property Appraiser's Office,the preliminary value of property
in City Center is$4,821,643,185;an increase of 15%over 2014, marking the fifth year in a row values have increased
following two years of decline. However,as in previous years,the City has received correspondence from the County,
advising of the finalization of the tax roll for the prior year,which in the case of FY 2013/14,reflects a decrease from the
preliminary valuation for the same year and will result in a corresponding adjustment/reduction in TIF revenues totaling
$2,617,000 for 2015/16, versus$2,291,000 for FY 2014/15; $168,000 for 2013/14 and$3.5 million for 2012/13.
Additional sources of revenue include a'/mill levy in the amount of$2.1 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$60,000 in interest income.
The total proposed FY 2014/15 City Center Redevelopment Area Budget is$44,240,000.
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 budgets for the City Center
Redevelopment Area,the Anchor Shops and Parking Garage and the Pennsylvania Avenue Shops and Garage for FY
2015/16.
Advisory Board Recommendation:
N.A.
Financial Information:
Source of Amount Account
Funds: 1 $44,240,000 City Center Redevelopment Area Fund
2 $ 4,927,000 Anchor Shops and Parking Garage Operations
3 $ 1,685,000 Pennsylvania Avenue Shops and Garage Operations
OBPI Total $50,852,000
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Max Sklar and John Woodruff
Sign-Offs:
RD Budget Assistant ecutive
,C.-ord ator Director, Dir=e r(RDA) Director(RDA)
•
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MAS J KGB JLM
AGENDA ITEM / 13 MIAIIBEA 9-30 DATE s
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MEM
19'15 . 2015
AI A
I B EA
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Philip Levine and Members 1 the City C(a mmission
FROM: Jimmy L. Morales, City Manager
DATE: September 30, 2015
SUBJECT: A RESOLUTION OF THE CHAIRP SON AND MEMBERS OF THE MIAMI BEACH
REDEVELOPMENT AGENCY,ADOPTING AND APPROPRIATING THE OPERATING
BUDGETS FOR THE CITY CENTER REDEVELOPMENT AREA THE ANCHOR
SHOPS AND PARKING GARAGE AND THE PENNSYLVANIA AVENUE SHOPS AND
GARAGE FOR FISCAL YEAR (FY) 2015/16.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The proposed budget for the City Center Redevelopment Area (RDA) for Fiscal Year 2015/16
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. Please refer to the attached
Exhibit A for the proposed budget details.
Revenues
Based on the 2015 Certificate of Taxable Value from the Property Appraiser's Office, the
preliminary value of property in City Center is $4,821,643,185; an increase of 15% over 2014,
marking the fifth year in a row values have increased following two years of decline. However,as
in previous years, the City has received correspondence from the County, advising of the
finalization of the tax roll for the prior year, which in the case of FY 2013/14, reflects a decrease
from the preliminary valuation for the same year and will result in a corresponding
adjustment/reduction in TIF revenues totaling $2,617,000 for 2015/16,versus$2,291,000 for FY
2014/15; $168,000 for 2013/14 and $3.5 million for 2012/13.
Additional sources of revenue include a '/2 mill levy in the amount of$2.1 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 $60,000 in interest
income.
Expenditures
Project-related expenses account for approximately$10.6 million,which includes$4.5 million to
be allocated for community policing initiatives in the City Center to continue providing enhanced
levels of staffing and services throughout the area, and $5.9 million for maintenance of RDA
capital projects.
Redevelopment Agency Memorandum
Operating Budget for City Center for FY 2015/16
September 30, 2015
Page 2 of 3 •
Administrative Expenses total $1,223,000 comprising a management fee of$982,000 which is
allocated to the General Fund to pay for direct and indirect staff support for the RDA;
$241,000,000 for actual operating expenses; and $25,000 for capital renewal and replacement
projects under $25,000. It should be noted that the Management Fee allocation 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 account for less than three percent(2.8%) of the total budget, which is well
below the 20%threshold level established (and permitted) in the Interlocal Agreement between
the City and the County.
Per the Third Amendment to the Interlocal Agreement between Miami Dade County and City of
Miami Beach dated January 20, 2015, requires the Agency's expenses for Administration,
Community Policing, and Capital Expenses not exceed the prior year's distribution for such
expenses adjusted by the lesser of the Miami Urban Area CPI from July to June or 3 percent.
The CPI increase from 2014 to 2015 was 1.2%and the FY 2015/16 budget includes an increase
to these expenses of 1.2%.
The current combined debt service on the 2005 Series Bonds and the Parity Bonds accounts for
approximately$8.5 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$1.3 million.The FY 2015/16 budget
also includes $2.1 million for the first year of interest payment and debt issuance cost of the
proposed new RDA bond.
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's administrative fees,equivalent to 1.5%of its respective TIF payment;
and the corresponding contribution to the City's General Fund, equivalent to 1.5% of the City's
share of its TIF payment; and the remittance of the 1/2 mill tax levy back to the Children's Trust.
In addition, the proposed budget includes$17,723,000 in funding towards the new debt service
anticipated for the remaining projects in the City Center Capital Plan, as well as for$274 million
in debt for the Convention Center Expansion and Renovation Project, consistent with the terms
being negotiated with Miami-Dade County.
The revenues and expenses associated with operations of the City Center area Shops and
Garages are presented as separate schedules in order to eliminate any perception that proceeds
from the facilities' operations are pooled with TIF and other Trust Fund revenues:
Anchor Shops and Parking Garage
Garage revenues at the Anchor Garage are projected at approximately$4 million,with operating
expenses, (including depreciation, contractual revenue-sharing obligations with Loews and
general fund administrative fees) of approximately$3.2 million, and an allocation of$46,000 for
window replacement in the facility. The Anchor retail operations is expected to generate
$847,000 in revenues, including interest, with operating expenses and depreciation totaling
$265,000, as well as projected reserves of $56,000. Additionally, $526,000 in transfers to the
Pennsylvania Avenue Garage/Retail is budgeted to offset the RDA's estimated costs associated
with the retail and parking operations.
Pennsylvania Avenue Shops and Garage
In consideration of the fact that the Pennsylvania Avenue Shops and Garage was built by the
Redevelopment Agency Memorandum
Operating Budget for City Center for FY 2015/16
September 30, 2015
Page 3 of 3
RDA on City-owned property, the operation of the facility has been structured in the form of a
ground lease between the City and the RDA, providing terms for both the Garage and Retail
operations. The garage operations include base rent and an administrative fee, consistent with
that of the Anchor Garage, Parking's operational fee, and revenue sharing between the City and
the RDA. The Retail operations also include base rent and an administrative fee, as well as a
retail lease rate based on 2010 retail market cap rates.The retail operations also include revenue
sharing between the City and the RDA.
The facility is anticipated to generate$1,108,000 in revenues in FY 2015/16,comprising totally of
parking revenues. In light of the fact that the retail space is currently not rented, we have taken
the conservative approach of not projecting retail rental income. The facility is still anticipated to
operate at a loss during FY 2015/16, so the Anchor Garage/Retail plans to subsidize its
operations through a transfer of$526,000 to the parking operations. Expenses for the facility are
budgeted at $1.6 Million, comprising $1,158,000 in direct operating costs for the garage and
$527,000 in lease term-related obligations.
CONCLUSION
The proposed FY 2015/16 City Center Redevelopment Area Budget is$44,240,000.The Anchor
Garage & Shops is $4,927,000 and the Pennsylvania Avenue Garage & Shops is $1,685,000.
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, the Anchor Shops and Parking
Garage, and the Pennsylvania Avenue Shops and Garage for FY 2015/16.
JLM/K B/MAS
T:\AGENDA\2015\September\September 30 Meeting\RDA\16-MEMO-2nd PH-RDA Budget.doc
MIAMI BEACH REVELOPMENT AGENCY
CITY CENTER REDEVELOPMENT AREA
FY 2015/16 OPERATING BUDGET AND STATUS REPORT
Mission/Purpose Statement
• To assure continued economic viability of the City Center Redevelopment Area and the City as
a whole, through the implementation of the objectives and projects defined in the
Redevelopment Plan and the amendment thereto.
• To incur minimum relocation and condemnation.
• To involve community residents in the redevelopment process.
• To establish the necessary linkages to tie in the Convention Center, area hotels, cultural
amenities, entertainment, residential and business uses in the district.
• To enhance diversity of form and activity through the use of established planning and design
principles.
• To create a traffic system to serve local and through traffic needs.
• To recognize the historic structures and designations within the historic districts and facilitate
development accordingly.
Status Report
The 332-acre City Center/Historic Convention Village
Redevelopment and Revitalization Area (CC/HCVRRA or City
Center) was established in 1993, in order to provide the , of
funding mechanism to foster the development of new convention ���'II
hotel development within proximity of the Miami Beach ,r� ,`��: t;
Convention Center and to establish the necessary linkages ::::;"44.1 :1 X 9 1
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between the City's many core area civic, cultural and
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entertainment uses in order to create the fabric of a true urban 'r*a rriri
downtown. '4 �►�. a� ,•
Since its inception, the City Center Redevelopment Area has _
undergone dynamic change through a combination of public ; � _ •
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and private investment initiatives. -
MIAMI BEACH REVELOPMENT AGENCY
CITY CENTER REDEVELOPMENT AREA
Exciting projects which have transformed the area include:
• Two convention-quality hotels, both of which were the result of public/private partnerships
between the Redevelopment Agency (RDA) and the respective Developers - the 800-room
Loews Miami Beach Hotel and the 425-room Royal Palm Crowne Plaza Hotel, the latter of
which had the distinction of being the first African-American owned hotel in the United States;
• The development of an 800-space public parking garage (Anchor Garage) to accommodate
the parking needs for the Loews Miami Beach Hotel, the Crowne Plaza Hotel and other
service and retail businesses in the area;
• In 1994 a $20 million overhaul of Lincoln Road, partially funded with the participation of
businesses on Lincoln Road;
• An award-winning Beachwalk extending from 21st Street to " .vt- --:f ,�-- ;
Lummus Park, comprising an at-grade, landscaped pedestrian `. ,. . .,
walkway; .,.-A
• Implementation of a Cultural Arts Campus Master Plan for the 111...,
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area east of the Miami Beach Convention Center, which •'
includes a new regional library, the headquarters of the Miami
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City Ballet, the expansion and renovation of the Bass Museum '"t ....,
of Art, the re-landscaping of Collins Park, including the
restoration of the Rotunda and extensive streetscape -
improvements throughout the area.
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• The completion of the much heralded New World _ -- . ;f, _ . ,
Campus, including the new state-of-the art Gehry-
designed headquarters facility for the New World w ,., ,.
Symphony and two publicly-funded components, ' { \�
including a $15 Million municipal Gehry-
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designed parking garage and a $21 Million .,R-
world-class park. ,
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MIAMI BEACH REVELOPMENT AGENCY
CITY CENTER REDEVELOPMENT AREA
Other important projects include the 650- . i vim
..,
space mixed-use parking facility built on the :'!4.,.�, -`c
surface parking lot on the west side of City
-
Hall, which includes 35,000 square feet of A 0 �municipal office space; the implementation of Ix zy��.�A major street and infrastructure improvements m , ,_ �, --,ter ii o throughout City Center, valued at more than - ::' '. "r
$26 Million; and the acquisition and of three '
multi-family buildings (Barclay, Allen House, ; i' ;, ., i.; 1 ,
The London House) to maintain the stock of ' .`.-mot T
affordable housing in the area = -
Tax Increment Financing (TIF) through the sale of bonds has been a major tool for financing
redevelopment activities. To date, four bond issues have occurred in City Center: one in 1994
for $25 million, to acquire land for the hotel development initiatives; one in 1996, in the
amount of $43.2 million to fund contractual obligations
and capital improvements related to the Loews Hotel and `
Crowne Plaza Hotel projects; one in 1998, in the amount N � .
of $38.2 million to finance capital expenditures related to 1 ° I'
the convention hotel protects, the Cultural Campus protect ..,
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and to repay the $21 .5 million debt obligation to the City; 41r:: .,.. - ' .1.to l'. - —- '
and the most recent, which occurred in 2005, in the amount I.- =`—( ~ ' - y' '17-7-,�
of $80.7 million to refinance the outstanding debt service on !'` - *.' f-•prior bond issues. - yr - - ,', '`
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The City and Redevelopment Agency's commitment to -� fir, f r
upgrading and improving the area's infrastructure, '''' :
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addressing parking and circulation issues, and facilitating =' s�mt.
new development has fueled significant new private-sector `�,- �,
investment in the area, evidenced by more than $600 -_'; . ° -: :. , ;,.
million in new building permit activity since the area's "h .'
inception.
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Work Plan
Since its success in attracting two convention-quality hotels, the Redevelopment Agency has been
focusing its efforts on a number of initiatives aimed at upgrading the area's infrastructure, streets
and parks, alleviating traffic and parking congestion and encouraging the production and
presentation of arts and cultural activities in the area. In 2003, the Redevelopment Agency
amended its Redevelopment Plan for City Center to specifically address these objectives in the
context of the New World Symphony's expansion plans involving the 17th Street surface lots and
the resulting impact to the Convention Center and businesses in the area.
To this end, the Redevelopment Agency's mission is to coordinate, implement and fund the Plan's
objectives and to compliment the City's established vision:
MIAMI BEACH REVELOPMENT AGENCY
CITY CENTER REDEVELOPMENT AREA
• Policing Culture;
• Management and Service Delivery;
• Infrastructure;
• International Center for Tourism and Business; and
• Educational Excellence.
The Redevelopment Agency's objective over the next five years will focus on the planning and
implementation of capital projects associated with, but not limited to the Master Plan for the
expansion of the Convention Center, upgrading streetscapes and related infrastructure throughout
City Center and increasing the inventory of parking facilities, including the pending construction
of a new 450-space parking garage to be located on 23rd street and Collins Avenue, designed
by world-renowned architect Zaha Hadid. The RDA will also continue to fund public service
enhancements provided for under the Community Policing Program as well as ensure the on-going
maintenance of capital assets funded with TIF. It should be noted that that a majority of the
capital enhancements set forth in the Redevelopment Plan and the 2002 Amendment thereto,
have been completed including the City Center Right-of-Way improvements, the City Hall
Expansion Garage, the Collins Park improvements and the development of the 17th Street surface
lots into the New World Campus.
Miami Beach Convention Center Renovation and Expansion
Spanning four city blocks and located in the heart of South Beach, the Miami Beach Convention
Center (MBCC) currently accommodates meetings, conventions, tradeshows and consumer shows.
The Convention Center originally opened in 1957 and received a major expansion and facelift in
1989, doubling it in size. Currently the MBCC boasts over 1 ,000,000 SF of flexible space,
including; over 500,000SF of exhibit space, and over 100,000SF of versatile pre-function area
space and 70 meeting rooms comprised of 127,000SF.
The expansion and renovation of the Miami Beach Convention Center project will transform the
building to "Class A" standards which shall include Silver LEED certification upgrades and
enhanced technology. The design modifications will include the re-orientation of the exhibit halls,
façade upgrades, site improvements along the canal, and along all roadways, the addition of a
grand ballroom, junior ballrooms and meeting rooms, and two levels of rooftop parking.
The interior renovation work focuses on the redistributed division of the four main exhibition hall
spaces, and the additional programming of more flexible arrangements of private meeting rooms
and additional indoor/outdoor versatile exhibition spaces. Currently, the four main exhibit halls
are divided into quadrants—two accessible solely from Washington Avenue (Halls A and B) and
the other two solely accessed from Convention Center Drive (Halls C and D). The new Convention
Center re-orients the halls in an East/West direction with the primary access from Convention
Center Drive leading into a new grand, open double height entry lobby.Washington Avenue will
serve as a secondary means of pedestrian entry.
MIAMI BEACH REVELOPMENT AGENCY
CITY CENTER REDEVELOPMENT AREA
The project will also include substantial improvements to the north of the property. The new
addition at the northern portion of the property features an enclosed ground floor parking area
and truck loading and delivery area. Above this, a 60,000 square foot grand ballroom is
proposed offering vistas of the beautified 21st Street Park that will span along Collins Canal and
feature the to-be-restored Historic Carl Fisher Clubhouse. This addition will create a new
internalized loading area and will include two helix ramping entrance accesses to the roof level
parking.
The Washington Avenue elevation will become predominately pedestrian in nature with the
elimination of the visitor drop-off and cab cueing areas. The streetscape modifications will include
a green edge along the avenue with native shade trees to promote a more pedestrian friendly
experience. Convention Center Drive will in turn become the main access point for vehicular
access and for the visitor drop-off area. Modifications will include a new median along
Convention Center Drive and 19th Street creating a more sophisticated streetscape and a more
celebrated boulevard experience. The Canal walk will be substantially improved and will create a
softer northern edge to the MBCC.
The project also includes the demolition of the existing Recreation Center along Washington
Avenue and the creation of a neighborhood park. Another architectural feature of the project is
the proposed rooftop indoor and outdoor meeting space located in the southwestern corner of the
roof. This will offer the patrons expansive views out onto the new Civic park proposed to replace
the surface parking lot.
In association with the renovations to the Miami Beach Convention Center, a new urban park,
dining pavilion and Veterans Plaza is being created to replace a surface parking lot that currently
contains spaces for approximately 800 vehicles. Convention Center Park has been envisioned as
a neighborhood park. The park includes a series of six clustered 'shaded edges' that will line the
perimeter of the 6-acre park and surround an internal great flexible lawn.
Headquarter Hotel
On January 27, 2015, the City Commission authorized the issuance of Request for Proposals No.
2015-103-ME (the RFP) for the Development of a Convention Headquarter Hotel Adjacent to the
Miami Beach Convention Center ("MBCC"). On April 10, 2015, the City received proposals
from Portman Holdings, LLC and Oxford Capital Group/RLB Swerdling ("Oxford Capital"). On
April 21 , 2015, the City Manager notified Oxford Capital that its proposal was not responsive to
the RFP's minimum requirements. On April 29, 2015, the City Manager, via Letter to Commission
(LTC) No. 176-2015, appointed an Evaluation Committee, which convened on May 7, 2015, to
interview the Portman Holdings team and score the proposal, consistent with the evaluation
criteria outlined in the RFP.
On May 20, 2015, the Mayor and City Commission approved Resolution No. 2015-29029,
authorizing the Administration to negotiate a Development and Ground Lease Agreement,
including a Room Block Agreement (collectively, the "Lease") with Portman Holdings, LLC, with
said Lease subject to prior approval by the Mayor and City Commission before the final execution
•
MIAMI BEACH REVELOPMENT AGENCY
CITY CENTER REDEVELOPMENT AREA
thereof. On June 3, 2015, the Administration submitted the proposed Lease for the Finance and
Citywide Projects Committee's review and input, in accordance with the requirements of Section
82-37(a)(1) of the City Code.
The City Commission approved the Ground Lease on First Reading and Public Hearing on July
31 , 2015 and is scheduled to hearing the item on Second Reading on September 2, 2015.
The Leased Property generally consists of an approximately 2.65 acres on the 1700 block of
Convention Center Drive, bounded roughly by the Miami Beach Convention Center to the North,
17th Street to the South, the Fillmore Miami Beach at the Jackie Gleason Theater to the East, and
Convention Center Drive to the West. The project includes the development, design, construction,
equipping and operation of a full-service convention headquarter hotel with approximately (but
not-to-exceed) 800 hotel rooms and related improvements ("Hotel"), including the design,
construction and operation of an enclosed overhead pedestrian walkway or "Skybridge"
connecting the Hotel and the MBCC. The Lease is contingent upon sixty percent (60%) voter
approval in accordance with Section 1 .03(b)(3) of the City Charter. The referendum is
contemplated to occur on November 3, 2015.
•
If the site is developed with a hotel annual (year 4) lease and tax revenue generated is estimated
to be $20.4 million.
Ancillary Projects
Bass Museum Interior Space Expansion: Renovation of Bass Museum interior to increase
•
programmable space by 47%, with an estimated cost of $3,750,000.
Convention Center Lincoln Rd Connectors & 17th St N. Improvement Penn Ave to Wash: Enhance
the pedestrian experience from the Convention Center complex to Lincoln Road along Drexel
Avenue, Pennsylvania Avenue and Meridian Avenue. Work to consist of new lighting, sidewalk
reconstruction, street furnishings, landscaping, healthy tree fertilization systems, road
reconstruction, cross walk enhancements. Improvements to 17th Street from Pennsylvania Avenue
to Washington Avenue will consist of landscaping, irrigation, pedestrian lighting and sidewalk
replacement. This project has an estimated cost of $12,000,000.
Lincoln Rd / Washington Ave to Lenox Ave: Refurbishment of Lincoln Road pedestrian mall from
Washington Avenue to Lenox Avenue. Work to consist of new lighting, refurbishing pedestrian
surfaces, street furnishings, healthy tree fertilization systems, milling and resurfacing pavement
surfaces and cross walk enhancements. This project has an estimated cost of $20,000,000.
2014 City Center Plan Amendment (Third Amendment)
The City and County agreed to terms of a third amendment to the City Center RDA (the Third
Amendment), which extended the life of the City Center RDA from FY 2022-23 to FY 2043/44 at
the 95 percent (95%) tax increment funding level. This allows the RDA to fund, through the
issuance of CRA bonds, the additional funding needed for construction costs of the new and
expanded Convention Center and to fund $36 million of previously approved City Center RDA
MIAMI BEACH REVELOPMENT AGENCY
CITY CENTER REDEVELOPMENT AREA
capital projects (described above), provide increased operating and maintenance expenses for
the Convention Center, as well as City Center RDA administrative costs, community policing, and
capital project maintenance within the RDA. However, after FY 2022/23, when the existing RDA
would have expired, City returns a pro-rata share of administrative costs, community policing,
and capital project maintenance to the County.
The Third Amendment also includes a provision which allows the Board of County Commissioners
the right, in its sole and absolute discretion, to appoint a member of the Agency, who shall be the
Commissioner of County Commission District 5.
Pursuant to an existing Convention Development Tax (CDT) Interlocal agreement, the City receives
a flat $4.5 million per year from Convention Development Taxes to operate and maintain the
Convention Center, plus an annual year-end revenue share based on CDT exceeding collection
amounts that increase each year. The Third Amendment allowed 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 Consumer Price Index (CPI) annually (whichever is
less) starting in 2026 over the life of the Convention Center, funded either through RDA funds or
through Convention Development Taxes, depending on the availability of the latter. That funding
will remain in place until 2048.
Finally, once the currently existing debt is refinanced, the Third Amendment exempts the
Children's Trust, an independent taxing district, with respect to the pledging of annual tax
increment revenues attributable to The Children's Trust, to conform with the general exemption
provided to The Children's Trust in Section 2-1742 of the Miami-Dade County Code.
Budget Highlights
• Based on the 2015 Certificate of Taxable Value from the Property Appraiser's Office, the
preliminary value of property in City Center is estimated to increase by 15.2% over 2014,
prior to appeals and adjustments, marking the 5th year in a row that values are back on the
rise. However, as in previous years, the City has received correspondence from the County,
advising of the finalization of the tax roll for the prior year, which in the case of FY 2013/14,
reflects a significant decrease from the preliminary valuation for the same year and will result
in a corresponding adjustment/reduction in TIF revenues totaling $2.6 Million for 2015/16.
• Additional sources of revenue include a 1/2 mill levy in the amount of $2.15 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
$60,000 in interest income.
• Project-related expenses account for approximately $10.4 million which includes $4.4 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 $6 Million for maintenance
of RDA capital projects. There is no additional funding for on-going and planned capital
MIAMI BEACH REVELOPMENT AGENCY
•
CITY CENTER REDEVELOPMENT AREA
projects in City Center in the FY 2015/16 Budget due to the RDA extension for the renovation
and expansion of the convention center.
• Administrative Expenses total $1 ,201 ,000, comprising a management fee of $960,000
which is allocated to the General Fund to pay for direct and indirect staff support for the RDA;
approximately $40,000 set aside for on-going planning and consulting work related to the
Convention Center expansion master plan; and $8,000 for capital renewal and replacement
projects under $25,000.
• $28.5 million is budgeted in Reserve for Contingency/Debt Service to cover debt service costs
related to the Convention Center bonds. The bonds are anticipated to be sold in November,
2015 and it is anticipated that there will be at least one interest payment during FY
2015/16. The necessary debt service amount will be moved from the Reserve to Debt
Service once the final debt service schedule is determined. Debt service payments on both
principal and interest will commence in FY 2016/17. Funds in this reserve over and above
the annual debt payment can be used to finance any potential shortfalls in the RDA fund or
pay down the Convention Center bonds early, but not prior to FY 2023/24. 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 .3 million and will be paid off in FY 2015/16.
• 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's administrative fees, equivalent to 1 .5% of its respective TIF
payment; and the corresponding contribution to the City's General Fund, equivalent to 1 .5%
of the City's share of its TIF payment; and the remittance of the 1/2 mill tax levy back to the
Children's Trust.
Miami Beach Redevelopment Agency
City Center Redevelopment Area
Proposed FY 2015/16 Operating Budget
Budget
FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 Variance
Actual Actual Adopted Proposed From FY 14/15
Revenues and Other Sources of Income
Tax Increment-City $ 19,188,399 $ 19,934,948 $ 21,435,000 $ 24,565,000 $ 3,130,000
Proj Adjustment to City Increment (1,870,542) (94,491) (1,225,000) (1,452,000) (227,000)
Tax Increment-County 14,817,619 15,991,409 17,400,000 20,080,000 - 2,680,000
Proj Adjustment to County Increment (1,633,395) (73,641) (1,066,000) (1,165,000) (99,000)
50%Contribution from Resort Tax 5,546,756 5,885,927 0 0 0
'1/2 Mill Children's Trust Contribution 1,570,405 1,698,337 1,850,000 2,152,000 302,000
Interest Income 27,925 90,904 25,000 60,000 35,000
Fund Balance 0 0 0 0 0
Fund Balance Renewal and Replacement 0 0 - 0 0 0
Other Income/Adjustments: 999,791 114,748 100,000 0 (100,000)
TOTAL REVENUES $ 38,646,958 $ 43,548,140 $ 38,519,000 $ 44,240,000 $ 5,721,000
Admin/Operating Expenses
Management fee $ 976,000 $ 1,043,000 $ 972,000 $ 982,000 $ 10,000
Salaries and Benefits 46,614 71,006 0 0 0
Advertising&promotion 0 0 50,000 50,000 0
Postage&mailing 0 9 1,000 1,000 0
Office supplies&equipment 1,563 1,701 2,000 2,000 0
Other Operating 753 655 1,000 1,000 0
Meetings&conferences 0 0 1,000 1,000 0
Dues&subscriptions 200 175 2,000 2,000 0
Licences&Taxes 128,729 56,028 60,000 60,000 0
Audit fees 20,500 21,000 23,000 23,000 0
Professional&related fees 529,447 98,655 213,000 40,000 (173,000)
Repairs and Maintenance 32,487 24,141 25,000 8,000 (17,000)
Internal Services 108,143 79,645 53,000 53,000 0
Total Admin/Operating Expenses $ 1,844,435 $ 1,396,016 $ 1,403,000 $ 1,223,000 $ (180,000)
Project Expenses
Community Policing $ 3,702,342 $ 4,019,542 $ 4,522,000 $ 4,502,000 $ (20,000)
Capital Projects Maintenance:
Code 0 68,527 174,000 182,000 8,000
Property Mgmt 1,061,027 937,890 1,392,000 1,319,500 (72,500)
Sanitation 2,536,108 2,905,911 3,061,000 3,339,000 278,000
Greenspace 556,555 774,512 896,000 864,500 (31,500)
Parks Maintenance 0 0 274,000 432,000 158,000
Transfer to Penn Garage Parking 225,055 142,765 0 0 0
Transfer to Penn Garage Retail 0 0 0 0 0
Transfer to Renewal and Replacement 705,000 67,000 0 0 0
Transfer to Capital Projects 14,238,000 16,561,285 0 0 0
Total Project Expenses $ 23,024,087 $ 25,477,431 $ 10,319,000 $ 10,639,000 $ 320,000
Reserves,Debt Service and Other Obligations
Debt Service Cost-2005+Parity Bonds $ 8,524,081 $ 8,533,119 $ 8,432,000 $ 10,550,000 $ 2,118,000
City Debt Service-Lincoln Rd Project 785,000 825,000 832,000 806,000 (26,000)
City Debt Service-Bass Museum 503,000 547,000 548,000 516,000 (32,000)
Reserve for County Admin Fee 197,718 238,767 245,000 284,000 39,000
Reserve for CMB Contribution 260,774 297,607 303,000 347,000 44,000
Reserve for Children's Trust Contribution 1,570,405 1,698,337 1,850,000 2,152,000 302,000
Reserve-Prior Year Fund Balance/Future Capital
Projects 0 0 0 0 (0)
Repayment-Prior Yr Fund Balance 0 0 0 0 (0)
Reserve Debt Service/Contingency 0 0 14,587,000 17,723,000 3,136,000
Total Reserves,Debt Service and Other Obligati( $ 11,840,978 $ 12,139,829 $ 26,797,000 $ 32,378,000 $ 5,581,000
TOTAL EXPENSES AND OBLIGATIONS $ 36,709,500 $ 39,013,275 $ 38,519,000 .$ 44,240,000 $ 5,721,000
REVENUES-EXPENSES $ 1,937,458 $ 4,534,864 $ (0) $ (0) $ (0)
Proposed FY 2015/16 Anchor Shops and Parking Garage
Operating Budget
FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 Variance
Revenues: Actual Actual Adopted Proposed From FY 14/15
Parking Operations $ 3,365,518 $ 3,747,955 $ 3,518,000 $ 4,026,000 $ 508,000
Parking Fund Balance $0 $0 1,973,000 0 $ (1,973,000)
Retail Leasing 766,105 845,905 876,000 817,000 $ (59,000)
Interest Pooled Cash 33,480 75,554 28,000 84,000 $ 56,000
TOTAL REVENUES $ 4,165,103 $ 4,669,414 $ 6,395,000 $ 4,927,000 $ (1,468,000)
Operating Expenses:
Parking Operations $ 2,062,967 $ 1,452,223 $ 1,689,000 $ 1,721,000 $ 32,000
Garage Use Fee(To Loews) 570,038 669,881 591,000 663,000 $ 72,000
Garage Repairs and Maintenance 106,281 18,227 128,000 128,000 $ 0
Garage Depreciation 0 457,716 470,000 470,000 $ 0
Retail Leasing Operating 52,109 34,232 32,000 67,000 $ 35,000
Retail Leasing Repair&Maintenance 0 0 25,000 100,000 $ 75,000
Retail Internal Service Charges 35,232 20,000 19,000 $24,000 $ 5,000
Retail Operations Depreciation 55,396 55,396 55,000 $55,000 $ 0
•
Admin Fee to General Fund
Parking Operations Admin Fee to GF 223,000 224,000 224,000 230,000 `$ 6,000
Retail Leasing Admin Fee to GF 14,000 0 10,000 7,000 $ (3,000)
Transfers 0 0 0 $0 $ 0
Transfer to Renewal and Replacement 0 0 650,000 $0 $ (650,000)
Transfer to Capital Projects/RDA Garages 0 0 2,407,000 46,000 $ (2,361,000)
Transfer to RDA Retail 0 0 0 526,000 $ 526,000
Reserve for Future Capital-Parking Operations 0 0 0 822,000 $ 822,000
Reserve for Future Capital-Retail Operations 0 0 95,000 68,000 $ (27,000)
TOTAL EXPENSES $ 3,119,023 $ 2,931,676 $ 6,395,000 $ 4,927,000 $ (1,468,000)
REVENUES-EXPENSES $ 1,046,080 $ 1,737,738 $ 0 $ 0 $ 0
Proposed FY 2015/16 Pennsylvania Ave Shops and Garage
FY 2012/13 FY 2013/14 FY 2014/15 FY 2015/16 Variance
Revenues: Actual Projected Adopted Proposed From FY 14/15
Parking Operations $ 702,181 $ 812,922 $ 703,000 $ 1,108,000 $ 405,000
Retail Leasing 371,640 627,000 640,000 - (640,000)
Retail Transfer In 0 0 0 526,000 526,000
Parking Transfers In 225,055 142,765 338,000 47,000 (291,000)
Interest Pooled Cash 1,044 2,983 - 4,000 4,000
TOTAL REVENUES $ 1,299,920 $ 1,585,670 $ 1,681,000 $ 1,685,000 $ 4,000
Operating Expenses:
Parking Operations Expenditures $ 729,259 $ 818,354 $ 896,000 $ 963,000 $ 67,000
Parking Base Fee 53,302 56,000 57,000 70,000 13,000
Parking Base Rent 22,731 23,000 23,000 0 (23,000)
Addt'l/Percentage Rent 0 0 0 0 0
Garage Management Fee/Admin Fee to GF 47,476 60,000 65,000 125,000 60,000
Retail Additional Base Rent 2,970 200,932 229,000 250,000 21,000
Retail base Rent 277,269 229,000 205,000 0 (205,000)
Retail Admin Fee 0 0 0 29,000 29,000
Depreciation 11,851 0 0 0 0
Leasing Commissions&Operating 0 0 0 248,000 248,000
Admin Fee(GF) 52,418 51,000 59,000 0 (59,000)
Retail Contingency 0 146,068 147,000 0 (147,000)
TOTAL EXPENSES $ 1,197,276 $ 1,584,354 $ 1,681,000 $ 1,685,000 $ 4,000
REVENUES-EXPENSES $ 102,644 $ 1,316 $ 0 $ 0 $ 0
•
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