LTC 94-2002
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CITY OF MIAMI BEACH
Office of the City Manager
Letter to Commission No. 9tf- C;;OO,;)
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To:
From:
Mayor David Dermer and
Members of the City Commission
Jorge M. GOnZalez~ _ _ /
City Manager fIV" ~
CONVENTION VELOPMENT TAX (CDT)
Date: April 8, 2002
Subject:
The attached letter from County Manager Steve Shiver is submitted for your information. It
addresses issues pertaining to the Convention Development Tax (CDT). Please let me
know if you have any concerns.
JMG\ptw
Attachment
F :/cmg r/$alllltc-02/cdtletter
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MIAMI-DADE COUNTY, FLORIDA
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March 26, 2002
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STEPHEN P. CLARK CENT c::,h
Mr. Jorge M. Gonzalez
City Manager
City of Miami Beach
1700 Convention Center Drive
Miami Beach, FL 33139
OFFICE OF COUNTY MANAGER
SUITE 2910
111 N.W. 1st STREET
MIAMI, FLORIDA 33128-1994
(305) 375-5311
Dear Jorge,
I am in receipt of your letter dated February 22,2002 regarding the Convention Development Tax (COT) report
submitted to the Board of County Commissioners on February 26, 2002. I appreciate you bringing your
concerns to my attention pertaining to some of the report's content.
Respectfully, I" do not believe any statement or reference" In the report will create confusion, other than its
inability to predicate what the outcome of the COT's future capacity will be in light of the tragic events of
September 11,2001. However, I would like to help clarify the issues you raised. Regarding the parenthesized
note in the third paragraph, page 2 of the report:
"contingent of course upon on COT capacity to generate the additional $50 million."
This statement simply referenced that the payments to Miami Beach, per the 1996 Interlocal, Amendment One,
and Addendum, are payable solely from the Two-Thirds portion of the COT. Therefore, such payments can
only be made upon the availability of the Two-Thirds portion of the COT. As you and your staff clearly
understand, when COT was identified as a funding source for the baseball stadium project, it was done so based
on the future COT growth forecasts which formed the basis of Amendment One. To that end, it should be noted
that there is not an existing $50 million pool of COT funds set aside in the event that the COT is not pledged for
a baseball stadium prior to December 1,2003. As we all recognize, today's tourism outlook is quite different
than it was prior to the September 11 terrorist attacks, we also must recognize the same is true of the projected
. capacity of COT.
In regards to your question on Schedule 2 of the report, $15 million will be remitted to the City of Miami Beach
upon the first issuance of bonds backed by COT. The difference between the listed anticipated funding date for
the Performing Arts Center (July 2003) and the payment to the City (October 2003) was not intended to
incorrectly state the date in which the City will receive the $15 million payment.
If yminave any further-questions, please contact myself or George Burgess.
~"~ ~ ~
~Shivet
County Manager
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cc:
Honorable Alex Penelas, Mayor
Honorable Chairperson and Members
Board of County Commissioners
Mayor Dermer and Members of the City Commission
George Burgess, Assistant County Manager
Robert A. Ginsburg, County Attorney
Howard Whitaker, Assistant County Attorney
Geri Bonzon-Keenan, Assistant County Attorney
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