645-2019 RDA RESOLUTION NO. 645-2019
A RESOLUTION OF THE CHAIRPERSON AND MEMBERS
OF THE MIAMI BEACH REDEVELOPMENT AGENCY,
ADOPTING THE FINAL OPERATING BUDGETS FOR THE
CITY CENTER REDEVELOPMENT AREA, THE ANCHOR
SHOPS AND PARKING GARAGE, AND THE
PENNSYLVANIA AVENUE SHOPS AND PARKING
GARAGE FOR FISCAL YEAR 2020.
WHEREAS, on November 16, 1993, Miami-Dade County ("County") and the City
approved and entered into an Interlocal Agreement, by which the County delegated to the City
certain redevelopment powers, including but not limited to the creation of the City Center
Redevelopment Area and implementation of the City Center Redevelopment Plan; and
WHEREAS, the First Amendment to the Interlocal Agreement, approved by the County,
through Resolution No. R-889-03, and approved by the City, through Resolution No. 2003-
25241, delegated to the City the power to develop and implement community policing initiatives;
and
WHEREAS, the Second Amendment to the Interlocal Agreement, approved by the
County, through Resolution No. R-958-04, and approved by the City, through Resolution No.
2004-25560, allowed the City Center Redevelopment Agency (RDA) to refund certain bonds
and provided for an annual fee of one and one-half percent to be paid to the County and City
annually to defray administrative costs after debt service and all other obligations related to the
bonds or future indebtedness was satisfied for the fiscal year; and
WHEREAS, the Third Amendment to the Interlocal Agreement, approved by the County,
through Resolution No. R-1110-14; and approved by the City, through Resolution No. 2014-
28835, among other things, required that the use of tax increment revenues to fund the RDA's
expenses for administration, community policing, and capital projects maintenance shall not
exceed the prior fiscal year's distribution for such expenses, adjusted by the lesser of the Miami
Urban Area CPI, or 3%, annually to be calculated using the Miami Fort Lauderdale All Urban
Consumers CPI from July to June for the prior year; and
WHEREAS, the Fourth Amendment to the Interlocal Agreement, approved by the
County, through Resolution No. R-644-18, and approved by the City, through Resolution No.
2018-30288, provided for the following: 1) added expenditures to the authorized expenditures of
the RDA; 2) allowed the RDA to reimburse the City $6,914,221 for construction delays and
damages to the Convention Center renovation and expansion project resulting from Hurricane
Irma in Fiscal Year 2018; 3) allocated additional funding in an amount up to $20.0 million to fund
the Lincoln Road project, previously authorized as part of the Third Amendment, for a total
project amount of up to $40.0 million for the Lincoln Road project; 4) distributes to both the
County and the City, beginning in Fiscal Year 2018, and continuing through Fiscal Year 2023,
an annual reimbursement based on each entity's proportionate share of expenditures for
administration, community policing, and capital projects maintenance; 5) requires that both the
County and the City set aside $1.5 million of the annual reimbursement for beach renourishment
that can be utilized to leverage State or Federal funding for beach renourishment projects; and
6) utilizes any excess revenues, after the foregoing distributions, for the early prepayment of
debt, as originally stipulated in the Third Amendment to the Interlocal Agreement; and
WHEREAS, the City Center RDA budget has been prepared to coincide with the overall
City budget process; and
WHEREAS, the City Center RDA budget reflects anticipated project costs in addition to
operating and debt service costs for Fiscal Year 2020; and
WHEREAS, the budgets for the Anchor Shops and Garage and the Pennsylvania
Avenue Shops and Garage have been included as separate schedules to the City Center RDA
budget, reflecting projected revenues and operating expenditures for Fiscal Year 2020; and
WHEREAS, the Executive Director of the Miami Beach Redevelopment Agency
recommends approval of the Fiscal Year 2020 operating budgets for the City Center RDA, the
Anchor Shops and Parking Garage, and the Pennsylvania Avenue Shops and Parking Garage.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRPERSON AND
MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, that the Chairperson and
Members of the Miami Beach Redevelopment Agency hereby adopt the final operating budgets
for the City Center Redevelopment Area, the Anchor Shops and Parking Garage, and the
Pennsylvania Avenue Shops and Parking Garage for Fiscal Year 2020 as outlined below and
further detailed in the attached Exhibit"A."
City Center Redevelopment Area $69,701,000
Anchor Garage Parking Operations 3,569,000
Anchor Garage Retail Operations 1,422,000
Pennsylvania Avenue Garage Parking Operations 920,000
Pennsylvania Avenue Garage Retail Operations 322,000
PASSED AND ADOPTED this 25th day of September, 2019.
ATTEST:
IF\P' '............ ..� ,y`i
,w�; = ��+ *.Dan Gelber, Chairperson
ges%L �m� k — =INCORP ORATED:
el E. Granado, Secr- ry
I `�4-9y•.. y ? y APPROVED AS TO
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FO" EXECUTION
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City Attorney Date
EXHIBIT A
Miami Beach Redevelopment Agency
City Center Redevelopment Area
Operating Budget
FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 Prop to
Actual Actuals Adopted Proposed FY 201.9 Adop
Revenues and Other Sources of Income
Tax Increment-City 28,855,233 29,410,189 31,025,000 32,468,000 1,443,000
Proj Adjustment to City Increment (1,722,849) (1,912,241) (1,726,000) (1,266,000) 460,000
TaxIncrement-County 23,587,278 23,985,462 25,253,000 26,429,000 1,176,000
Proj Adjustment to County Increment (1,387,657) (1,563,133) (1,411,000) (1,053,000) 358,000
1/2 Mill Children's Trust Contribution 2,511,086 0 0 0 0
Interest Income 238,984 855,648 360,000 461,000 101,000
Fund Balance/Retained Earnings 0 18,463,619 32,294,000 12,662,000 (19,632,000)
Other Income/Adjustments: 0 822,399 0 0 0
TOTAL REVENUES $ 52,082,075 $ 70,061,942 $ 85,795,000 $ 69,701,000 $ (16,094,000)
Admin/Operating Expenditures
Management Fee 984,000 390,000 422,000 602,000 180,000
Audit fees 19,877 (179,900) 23,000 24,000 1,000
Professional&Related fees 0 6,133 0 0 0
Repairs and Maintenance 15,171 10,434 139,000 0 (139,000)
Internal Services 60,921 154,000 155,000 147,000 (8,000)
Total Admin/Operating Expenditures $ 1,079,969 $ 380,667 $ 739,000 $ 773,000 $ 34,000
Project Expenditures
Community Policing:
Police 4,330,794 4,453,401 4,531,000 4,866,000 335,000
Code Compliance 195,286 146,963 216,000 216,500 500
Capital Projects Maintenance:
Property Mgmt 1,178,501 1,460,801 1,671,000 1,492,000 (179,000)
Sanitation 3,803,855 4,121,812 4,241,000 4,241,000 .0
Greenspace 585,263 645,318 826,000 779,500 (46,500)
Parks Maintenance 375,991 416,596 438,000 446,000 8,000
Total Project Expenditures $ 10,469,690 $ 11,244,892 $ 11,923,000 $ 12,041,000 $ 118,000
Reserves,Debt Service and Other Obligations
Debt Service Cost 21,666,333 21,665,092 21,683,000 21,686,000 3,000
Reserve for County Admin Fee 332,994 336,335 358,000 381,000 23,000
Reserve for CMB Contribution •.405,986 412,469 440,000 469,000 29,000
Reserve for Children's Trust Contribution 2,51 1,086 0 0 0 0
Reserve for County Reimbursement:
Transfer to County Reimbursement 0 3,697,398 4,022,000 4,181,000 159,000
Transfer to County Beach Renourishment Fund 0 1,500,000 1,500,000 1,500,000 0
Reserve for City Reimbursement:
Transfer to General Fund 0 1,079,000 4,400,000 4,414,000 14,000
Transfer to PAYGO Capital Fund 0 3,773,000 872,000 0 (872,000)
Transfer to Beach Renourishment Fund 0 1,500,000 1,500,000 1,500,000 0
Transfer for RDA Capital Fund 0 6,914,221 20,000,000 0 (20,000,000)
Transfer to Fleet Management Fund 0 0 0 1,067,000 1,067,000
Transfer to Convention Center 0 1,000,000 1,750,000 2,500,000 750,000
Set-aside for Debt Payoff 15,616,017 16,558,868 16,608,000 19,189,000 2,581,000
Total Reserves,Debt Service&Other Obligations $ 40,532,417 $ 58,436,383 $ 73,133,000 $ 56,887,000 $ (16,246,000)
TOTAL EXPENDITURES AND OBLIGATIONS $ 52,082,075 $ 70,061,942 $ 85,795,000 $ 69,701,000 $ (16,094,000)
SURPLUS/(GAP) $ 0 $ 0 .$ 0 $ 0 $ 0
EXHIBIT A
Anchor Shops and Anchor Garage Operating Budget
Anchor Parking Garage FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 Prop to
Revenues: Actual Actuals Adopted Proposed FY 2019 Adop
Valet Parking 429,544 313,881 400,000 313,000 (87,000)
Monthly Permits 555,461 565,337 572,000 564,000 (8,000)
Attended Parking 2,853,113 2,645,486 3,586,000 2,457,000 (1,129,000)
Interest Income 84,487 189,088 152,000 235,000 83,000
Misc./Other 1,320 (2,742) 1,000 0 (1,000)
Fund Balance-Retained Earnings 0 0 0 0 0
TOTAL REVENUES $ 3,923,925 $ 3,711,050 $ 4,711,000 $ 3,569,000 $ (1,142,000)
Operating Expenditures:
Operating Expenditures 3,217,797 3,138,347 3,418,000 2,918,000 (500,000)
Transfer Out to Penn Garage 87,000 110,000 18,000 68,000 50,000
Internal Services 159,036 351,000 308,000 170,000 (138,000)
Capital 0 16,746 0 0 0
Contingency/Reserve 0 0 967,000 413,000 (554,000)
TOTAL EXPENDITURES $ 3,463,833 $ 3,616,094 $ 4,711,000 $ 3,569,000 $ (1,142,000)
Revenues Less Expenditures $ 460,092 $ 94,956 $ 0 $ 0 $ 0
Anchor Shops FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 Prop to
Revenues: Actual Actuals Adopted Proposed FY 2019 Adop
Retail Leasing 1,197,840 1,101,352 1,274,000 1,101,000 (173,000)
Capital&Maintenance 148,709 148,509 148,000 148,000 0
Interest Earned 55,430 119,213 98,000 173,000 75,000
Miscellaneous 0 54 0 0 0
TOTAL REVENUES $ 1,401,978 $ 1,369,127 $ 1,520,000 $ 1,422,000 $ (98,000)
Operating Expenditures:
Operating Expenditures 156,750 73,027 213,000 222,000 9,000
Transfer Out to Penn Shops 313,000 490,000 460,000 297,000 (163,000)
Internal Services 29,000 30,000 31,000 80,000 49,000
Capital 14,954 0 0 0 0
Contingency/Reserve 0 0 816,000 823,000 7,000
TOTAL EXPENDITURES $ 513,704 $ 593,027 $ 1,520,000 $ 1,422,000 $ (98,000)
Revenues Less Expenditures $ 888,274 $ 776,100 $ 0 $ 0 $ 0
COMBINED REVENUES-EXPENDITURES $ 1,348,366 $ 871,055 $ 0 $ 0 $ 0
EXHIBIT A
Pennsylvania Avenue Shops and Pennsylvania Avenue Garage Operating Budget
Pennsylvania Parking Garage FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 Prop to
Revenues: Actual Actuals Adopted Proposed FY 2019 Adop
Transient 519,359 494,304 632,000 541,000 (91,000)
Monthly 393,390 330,070 314,000 288,000 (26,000)
Miscellaneous 224 347 0 0 0
Interest Income 9,501 23,037 18,000 23,000 5,000
Transfer In from RDA(Anchor Garage) 87,000 110,000 18,000 68,000 50,000
Retained Earnings 0 0 0 0 0
TOTAL REVENUES $ 1,009,475 $ 957,758 $ 982,000 $ 920,000 $ (62,000)
Operating Expenses:
Operating Expenditures 1,021,729 1,014,753 968,000 861,000 (107,000)
Internal Services 26,890 98,000 9,000 59,000 50,000
Capital 0 0 5,000 0 (5,000)
TOTAL EXPENDITURES $ 1,048,618 $ 1,112,753 $ 982,000 $ 920,000 $ (62,000)
Revenues Less Expenditures $ (39,144) $ (154,995) $ 0 $ 0 $ 0
Pennsylvania Shops FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 Prop to
Revenues: Actual Actuals Adopted Proposed FY 2019 Adop
Retail Leasing 0 1 0 0 0
Capital&Maintenance 0 0 0 24,000 24,000
Interest Earned462 1,472 1,000 1,000 0
Transfers In from RDA(Anchor Shops) 313,000 490,000 460,000 297,000 (163,000)
TOTAL REVENUES $ 313,462 $ 491,473 $ 461,000 $ 322,000 $ (139,000)
Operating Expenses:
Operating Expenditures I 330,213 353,438 461,000 322,000 (139,000)
TOTAL EXPENDITURES $ 330,213 $ 353,438 $ 461,000 $ 322,000 $ (139,000)
Revenues Less Expenditures $ (16,751) $ 138,035 $ 0 $ 0 $ 0
COMBINED REVENUES-EXPENDITURES $ (55,895) $ (16,960) $ 0 $ 0 $ 0
Redevelopment Agency - RDA 1.
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: September 25, 2019
SUBJECT:A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY, ADOPTING THE FINAL OPERATING
BUDGETS FOR THE CITY CENTER REDEVELOPMENT AREA, THE
ANCHOR SHOPS AND PARKING GARAGE, AND THE PENNSYLVANIA
AVENUE SHOPS AND PARKING GARAGE FOR FISCAL YEAR 2020.
RECOMMENDATION
See attached Memorandum.
Applicable Area
Citywide
Is this a Resident Right to Does this item utilize G.O.
Know item? Bond Funds?
Yes No
Legislative Tracking
Office of Management and Budget
ATTACHMENTS:
Description
❑ FY 2020 MEMO-RDA
D Resolution
Page 509 of 540
/v\ IA/v\ 1 _
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
REDEVELOPMENT AGENCY MEMORANDUM
TO: Mayor Dan Gelber and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: September 25, 2019
SUBJECT: A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI BEACH
REDEVELOPMENT AGENCY,ADOPTING THE FINAL OPERATING BUDGETS FOR
THE CITY CENTER REDEVELOPMENT AREA,THE ANCHOR SHOPS AND PARKING
GARAGE, AND THE PENNSYLVANIA AVENUE SHOPS AND PARKING GARAGE
FOR FISCAL YEAR 2020
ADMINISTRATION RECOMMENDATION
The Administration recommends that the Chairperson and members of the Miami Beach
Redevelopment Agency adopt the attached Resolution which establishes the final budgets for the
City Center Redevelopment Area (RDA), the Anchor Shops and Parking Garage, and the
Pennsylvania Avenue Shops and Parking Garage for Fiscal Year 2020.
BACKGROUND
On January 26,1993, Miami-Dade County adopted Resolution No. R-14-93, which, among other
things, found the area of Miami Beach 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 to be a "blighted area"
within the meaning of Part III of Chapter 163, Florida Statutes, and delegated to the City of Miami
Beach, pursuant to Section 163.410, Florida Statutes, certain powers conferred upon the County
Commission as the governing body of Dade County by Part III of Chapter 163, Florida Statutes,with
regard to the Redevelopment Area, so that the City Commission, either directly or through its duly
designated community redevelopment agency, could exercise such powers.
On November 16, 1993, the County and the City approved and entered into an Interlocal
Agreement, by which the County delegated to the City certain redevelopment powers, including but
not limited to the creation of the Redevelopment Area and implementation of the Redevelopment
Plan.
The First Amendment to the Interlocal Agreement, approved by the Miami-Dade Board of County
Commissioners,through Resolution No. R-889-03, and approved by the City Commission,through
Resolution No.2003-25241,delegated to the City the power to develop and implement community
policing initiatives.
The Second Amendment to the Interlocal Agreement, approved by the Miami-Dade Board of
County Commissioners, through Resolution No. R-958-04, and approved by the City, through
Resolution No. 2004-25560, allowed the Redevelopment Agency to refund certain bonds and
provided for an annual fee of one and one-half percent to be paid to the County and City annually to
Page 510 of 540
Redevelopment Agency Memorandum
Fiscal Year 2020 City Center Operating Budget
September 25, 2019
Page 2 of 5
defray administrative costs after debt service and all other obligations related to the bonds or future
indebtedness was satisfied for the fiscal year.
The Third Amendment to the Interlocal Agreement, approved by the Miami-Dade Board of County
Commissioners,through Resolution No. R-1110-14,and approved by the City Commission,through
Resolution No.2014-28835,among other things,allowed the Miami Beach Redevelopment Agency
to issue $430 million in bonds to refund existing debt and partially fund the Miami Beach
Convention Center expansion and renovation project; required that the use of tax increment
revenues to fund the Miami Beach Redevelopment Agency's expenses for administration,
community policing, and capital projects maintenance would not exceed the prior fiscal year's
distribution for such expenses, adjusted by the lesser of the Miami Urban Area CPI or 3%annually
to be calculated using the Miami Fort Lauderdale All Urban Consumers CPI from July to June for
the prior year; and stipulated that any remaining funding would be used to retire debt early.
The Fourth Amendment to the Interlocal Agreement, approved by the Miami-Dade Board of County
Commissioners,through Resolution No. R-644-18,and approved by the City Commission,through
Resolution No. 2018-30288, provided for the following:
1. Added certain expenditures to the authorized expenditures of the City Center RDA.
2. Allowed the RDA to reimburse the City$6,914,221 for construction delays and damages to
the Convention Center renovation and expansion project resulting from Hurricane Irma.
3. Included proposed funding in an amount up to $20.0 million to fund the Lincoln Road
project, previously authorized as part of the Third Amendment,for a total project amount of
up to $40.0 million for the Lincoln Road project.
4. Distributed to both the County and the City, beginning in Fiscal Year 2018 and continuing
until Fiscal Year 2023, a reimbursement based on each entity's proportionate share of
previous year expenses for administration, community policing, and capital maintenance,
and required that both set aside $1.5 million of the annual reimbursement for beach
renourishment that could be utilized to leverage State or Federal funding for beach
renourishment projects.
5. Utilized any excess revenues, after the foregoing distributions,for the early prepayment of
debt, as originally stipulated in the Third Amendment to the Interlocal Agreement.
The proposed budget for the City Center Redevelopment Area (RDA) for Fiscal Year 2020 has
been prepared to coincide with the overall City budget process and is being presented to assist in
providing a comprehensive overview of the City Center Redevelopment Area as set forth in the
attached Exhibit A.
ANALYSIS
City Center Revenues
Based on the 2019 Certification of Taxable Value from the Property Appraiser's Office released on
July 1st, the certified value of property in City Center increased by 4.4%, or$0.3 billion, over the
2018 Certification of Taxable Value of$6.0 billion to$6.3 billion, marking the 9th year in a row that
values are on the rise. The City portion of the tax increment totals $32.5 million and the County's
portion of the tax increment totals $26.4 million. 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 2017, reflects a decrease from the preliminary valuation for the same
Page 511 of 540
Redevelopment Agency Memorandum
Fiscal Year 2020 City Center Operating Budget
September 25, 2019
Page 3 of 5
year and will result in a corresponding adjustment/reduction of TIF revenues totaling a combined
$2.3 million for Fiscal Year 2020.
Additional sources of revenue include an estimated $461,000 in interest income.
Use of$12.7 million from prior year excess RDA Trust Fund revenues in accordance with the 4th
Amendment of the RDA Interlocal Agreement to be allocated as follows for Fiscal Year 2020:
1. $5.7 million reimbursement to Miami-Dade County for year three(Fiscal Year 2020)of six of
the annual reimbursement equal to the County's proportionate share of prior year
administration, community policing, and capital projects maintenance expenses incurred in
the prior year
2. $4.4 million contribution to the City's General Fund
3. $1.5 million to be set aside for beach renourishment
4. $1.1 million contribution to the City's Fleet Management Fund for replacement of General
Fund vehicles in Fiscal Year 2020 with cash instead of debt financing
City Center Expenditures
Project-related expenditures account for approximately $12.0 million, which include $5.1 million
allocated for community policing initiatives in City Center to continue to provide enhanced levels of
staffing and services throughout the area, and$6.9 million for maintenance of City Center projects.
There is no additional funding for ongoing and/or planned capital projects in City Center in Fiscal
Year 2020 budget due to the extension of the RDA for the recent renovation and expansion of the
Miami Beach Convention Center.
Administrative expenditures account for$773,000, which include a management fee of$602,000
allocated to the General Fund to pay for direct and indirect staff support; $24,000 for annual audit
fees; and $147,000 for internal services expenditures.
The budget also includes$21.7 million in debt service payments to cover annual debt service costs
related to the Convention Center bonds issued in 2015, as well as $19.2 million set aside for
additional debt service. Funds set aside for additional debt service over and above the annual debt
service payment can be used to finance any potential shortfalls in the City Center RDA or pay down
the Convention Center bonds early, but not prior to Fiscal Year 2024.
Other 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 a
$2.5 million transfer to the Miami Beach Convention Center Fund for Fiscal Year 2020;$381,000 for
the County's administration fee,which is equivalent to 1.5% of its respective Fiscal Year 2020 TIF
payment; and $469,000 for the City's administration fee, which is also equivalent to 1.5% of its
respective Fiscal Year 2020 TIF payment.
Redevelopment Area Shops and Garages
The revenues and expenditures associated with operations of the City Center Redevelopment Area
Shops and Garages are presented as separate schedules in order to eliminate any perception that
proceeds from the facilities' operations are pooled with Tax Increment Financing and other City
Center Trust Fund revenues.
Page 512 of 540
Redevelopment Agency Memorandum
Fiscal Year 2020 City Center Operating Budget
September 25, 2019
Page 4 of 5
Anchor Shops and Parking Garage
Garage revenues and expenditures at the Anchor Garage are projected at approximately $3.6
million for Fiscal Year 2020. Revenues from operations are primarily derived from attended parking,
month permits, and valet parking revenues of$3.3 million, combined. An additional $235,000 is
estimated in interest income for Fiscal Year 2020. Operating expenditures, which include a
contractual revenue-sharing obligation with the Loews, General Fund administrative fees, and a
budgeted transfer to the Pennsylvania Avenue Garage,are approximately$3.2 million, resulting in a
projected transfer to reserves of$413,000 for Fiscal Year 2020.
Shops revenues and expenditures at the Anchor Shops are projected at approximately$1.4 million
for Fiscal Year 2020. Revenues from operations are primarily derived from retail leasing and
maintenance revenues of$1.2 million. An additional $173,000 is estimated in interest income for
Fiscal Year 2020. Operating expenditures, which include General Fund administrative fees and a
budgeted transfer to the Pennsylvania Avenue Shops, are $599,000, resulting in a projected
transfer to reserves of$823,000 for Fiscal Year 2020.
The Anchor Garage and Shops funds are not constrained by the stipulations of the City Center RDA
Interlocal Agreement.
Pennsylvania Avenue Shops and Garage
In consideration of the fact that the Pennsylvania Avenue Garage and Shops was built by the RDA
on City-owned property, 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 shops 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 City Center RDA.
The retail operations include a retail lease rate based on 2010 retail market cap rates. The retail
operations also include revenue sharing between the City and the City Center RDA.
Overall, the facility is anticipated to generate approximately $853,000 of operating revenues in
Fiscal Year 2020, primarily from parking operations, since the retail component of the facility,which
is approximately 7,655 'quare feet of ground floor retail, is being leased to the Visitor's Center of
the Miami Beach Chamber of Commerce that was displaced due to the renovation of the Miami
Beach Convention Center and Moonlighter Fablab, Inc.that is a non-profit organization that serves
as a Science, Technology, Engineering, Arts and Math (STEAM) education center, co-working
space, and digital fabrication lab.
As a result, the facility is anticipated to operate at a loss in Fiscal Year 2020; therefore, a transfer
from the Anchor Garage and Shops of$68,000 and $297,000, respectively, is budgeted in Fiscal
Year 2020 to subsidize the operations of the Pennsylvania Avenue Garage and Shops. Overall
Fiscal Year 2020 expenditures for the facility are budgeted at approximately $1.2 million and are
comprised of $920,000 in direct operating costs for the garage and $322,000 in retail-related
operations.
Similar to the Anchor Garage and Shops, the Pennsylvania Avenue Garage and Shops funds are
not constrained by the stipulations of the City Center RDA Interlocal agreement.
Page 513 of 540
Redevelopment Agency Memorandum
Fiscal Year 2020 City Center Operating Budget
September 25, 2019
Page 5 of 5
CONCLUSION
The Fiscal Year 2020 City Center Redevelopment Area budget is$69.7 million.The Anchor Parking
Garage and Retail Shops budget is$5.0 million,and the Pennsylvania Avenue Parking Garage and
Retail Shops budget is $1.2 million.
In order to address the existing and future obligations of the City Center Redevelopment Area, it is
recommended that the Redevelopment Agency adopt the attached Resolution, which establishes
the final budgets for the City Center Redevelopment Area (RDA), the Anchor Shops and Parking
Garage, and the Pennsylvania Avenue Shops and Parking Garage for Fiscal Year 2020.
Attachment A— Fiscal Year 2020 RDA Operating Budget (Exhibit A)
JLM/JW/TOS
Page 514 of 540
EXHIBIT A
Miami Beach Redevelopment Agency
City Center Redevelopment Area
Operating Budget
FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 Prop to
Actual Actuals Adopted Proposed FY 2019 Adop
Revenues and Other Sources of Income
Tax Increment-City 28,855,233 29,410,189 31,025,000 32,468,000 1,443,000
Proj Adjustment to City Increment (1,722,849) (1,912,241) (1,726,000) (1,266,000) 460,000
Tax Increment-County 23,587,278 23,985,462 25,253,000 26,429,000 1,176,000
Proj Adjustment to County Increment (1,387,657) (1,563,133) (1,411,000) (1,053,000) 358,000
1/2 Mill Children's Trust Contribution 2,511,086 0 0 0 0
Interest Income 238,984 855,648 360,000 461,000 101,000
Fund Balance/Retained Earnings 0 18,463,619 32,294,000 12,662,000 (19,632,000)
Other Income/Adjustments: 0 822,399 0 0 0
TOTAL REVENUES $ 52,082,075 $ 70,061,942 $ 85,795,000 $ 69,701,000 $ (16,094,000)
Admin/Operating Expenditures
Management Fee 984,000 390,000 422,000 602,000 180,000
Audit fees 19,877 (179,900) 23,000 24,000 1,000
Professional&Related fees 0 6,133 0 0 0
Repairs and Maintenance 15,171 10,434 139,000 0 (139,000)
Internal Services 60,921 154,000 155,000 147,000 (8,000)
Total Admin/Operating Expenditures $ 1,079,969 $ 380,667 $ 739,000 $ 773,000 $ 34,000
Project Expenditures
Community Policing:
Police 4,330,794 4,453,401 4,531,000 4,866,000 335,000
Code Compliance 195,286 146,963 216,000 216,500 500
Capital Projects Maintenance:
PropertyMgmt 1,178,501 1,460,801 1,671,000 1,492,000 (179,000)
Sanitation 3,803,855 4,121,812 4,241,000 4,241,000 0
Greenspace 585,263 645,318 826,000 779,500 (46,500)
Parks Maintenance 375,991 416,596 438,000 446,000 8,000
Total Project Expenditures $ 10,469,690 $ 11,244,892 $ 11,923,000 $ 12,041,000 $ 118,000
Reserves,Debt Service and Other Obligations
Debt Service Cost 21,666,333 21,665,092 21,683,000 21,686,000 3,000
Reserve for County Admin Fee 332,994 336,335 358,000 381,000 23,000
Reserve for CMB Contribution 405,986 412,469 440,000 469,000 29,000
Reserve for Children's Trust Contribution 2,51 1,086 0 0 0 0
Reserve for County Reimbursement:
'Transfer to County Reimbursement 0 3,697,398 4,022,000 4,181,000 159,000
Transfer to County Beach Renourishment Fund 0 1,500,000 1,500,000 1,500,000 0
Reserve for City Reimbursement:
Transfer to General Fund 0 1,079,000 4,400,000 4,414,000 14,000
Transfer to PAYGO Capital Fund 0 3,773,000 872,000 0 (872,000)
Transfer to Beach Renourishment Fund 0 1,500,000 1,500,000 1,500,000 0
Transfer for RDA Capital Fund 0 6,914,221 20,000,000 0 (20,000,000)
Transfer to Fleet Management Fund 0 0 0 1,067,000 1,067,000
Transfer to Convention Center 0 1,000,000 1,750,000 2,500,000 750,000
Set-aside for Debt Payoff 15,616,017 16,558,868 16,608,000 19,189,000 2,581,000
Total Reserves,Debt Service&Other Obligations $ 40,532,417 $ 58,436,383 $ 73,133,000 $ 56,887,000 $ (16,246,000)
TOTAL EXPENDITURES AND OBLIGATIONS $ 52,082,075 $ 70,061,942 $ 85,795,000 $ 69,701,000 $ (16,094,000)
SURPLUS/(GAP) : 0 $ 0 $ 0 $ 0 $ 0
Page 515 of 540
EXHIBIT A
Anchor Shops and Anchor Garage Operating Budget
Anchor Parking Garage FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 Prop to
Revenues: Actual Actuals Adopted Proposed FY 2019 Adop
Valet Parking 429,544 313,881 400,000 313,000 (87,000)
Monthly Permits 555,461 565,337 572,000 564,000 (8,000)
Attended Parking 2,853,113 2,645,486 3,586,000 2,457,000 (1,129,000)
Interest Income 84,487 189,088 152,000 235,000 83,000
Misc./Other 1,320 (2,742) 1,000 0 (1,000)
Fund Balance-Retained Earnings 0 0 0 0 0
TOTAL REVENUES $ 3,923,925 $ 3,711,050 $ 4,711,000 $ 3,569,000 $ (1,142,000)
Operating Expenditures:
Operating Expenditures 3,217,797 3,138,347 3,418,000 2,918,000 (500,000)
Transfer Out to Penn Garage 87,000 110,000 18,000 68,000 50,000
Internal Services 159,036 351,000 308,000 170,000 (138,000)
Capital 0 16,746 0 0 0
Contingency/Reserve 0 0 967,000 413,000 (554,000)
TOTAL EXPENDITURES $ 3,463,833 $ 3,616,094 $ 4,711,000 $ 3,569,000 $ (1,142,000)
Revenues Less Expenditures $ 460,092 $ 94,956 $ 0 $ 0 $ 0
Anchor Shops FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 Prop to
Revenues: Actual Actuals Adopted Proposed FY 2019 Mop
Retail Leasing 1,197,840 1,101,352 1,274,000 1,101,000 (173,000)
Capital&Maintenance 148,709 148,509 148,000 148,000 0
Interest Earned 55,430 119,213 98,000 173,000 75,000
Miscellaneous 0 54 0 0 0
TOTAL REVENUES $ 1,401,978 $ 1,369,127 $ 1,520,000 $ 1,422,000 $ . (98,000)
Operating Expenditures:
Operating Expenditures 156,750 73,027 213,000 222,000 9,000
Transfer Out to Penn Shops 313,000 490,000 460,000 297,000 (163,000)
Internal Services 29,000 30,000 31,000 80,000 49,000
Capital 14,954 0 0 b 0
Contingency/Reserve 0 0 816,000 823,000 7,000
TOTAL EXPENDITURES $ 513,704 $ 593,027 $ 1,520,000 $ 1,422,000 $ (98,000)
Revenues Less Expenditures $ 888,274 $ 776,100 $ 0 $ 0 $ 0
COMBINED REVENUES-EXPENDITURES $ 1,348,366 $ 871,055 $ 0 $ 0 $ 0
Page 516 of 540
EXHIBIT A
Pennsylvania Avenue Shops and Pennsylvania Avenue Garage Operating Budget
Pennsylvania Parking Garage FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 Prop to
Revenues: Actual Actuals Adopted Proposed FY 2019 Adop
Transient 519,359 494,304 632,000 541,000 (91,000)
Monthly 393,390 330,070 314,000 288,000 (26,000)
Miscellaneous ' 224 347 0 0 0
Interest Income 9,501 23,037 18,000 23,000 5,000
Transfer In from RDA(Anchor Garage) 87,000 110,000 18,000 68,000 50,000
Retained Earnings 0 0 0 0 0
TOTAL REVENUES $ 1,009,475 $ 957,758 $ 982,000 $ 920,000 $ (62,000)
Operating Expenses:
Operating Expenditures 1,021,729 1,014,753 968,000 861,000 (107,000)
Internal Services 26,890 98,000 9,000 59,000 50,000
Capital0 0 5,000 0 (5,000)
TOTAL EXPENDITURES $ 1,048,618 $ 1,112,753 $ 982,000 $ 920,000 $ (62,000)
Revenues Less Expenditures $ (39,144) $ (154,995) $ 0 $ 0 $ 0
Pennsylvania Shops FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 Prop to
Revenues: Actual Actuals Adopted Proposed FY 2019 Adop
Retail Leasing 0 1 0 0 0
Capital&Maintenance 0 0 0 24,000 24,000
Interest Earned 462 1,472 1,000 1,000 0
Transfers In from RDA(Anchor Shops) 313,000 490,000 460,000 297,000 (163,000)
TOTAL REVENUES $ 313,462 $ 491,473 $ 461,000 $ 322,000 $ (139,000)
Operating Expenses:
Operating Expenditures 330,213 353,438 461,000 322,000 (139,000)
TOTAL EXPENDITURES $ 330,213 $ 353,438 $ 461,000 $ 322,000 $ (139,000)
Revenues Less Expenditures $ (16,751) $ 138,035 $ 0 $ 0 $ 0
COMBINED REVENUES-EXPENDITURES $ (55,895) $ (16,960) $ 0 $ 0 $ 0
•
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Page 517 of 540