LTC 244-2006 re: City Center Redevelopment Agency Fiinancial and Capital Plan
~ MIAMI BEACH
RECEIVED
2006 OCT 13 PH 12: 02
CITY CLEHK'S OFF ICE
OFFICE OF THE CITY MANAGER
NO. LTC # 244-2006
LETTER TO COMMISSION
FROM:
Mayor David Dermer and Members of the City Commission
Jorge M. Gonzalez, City Manager \ <:../..~
October 13, 2006 0 0
TO:
DATE:
SUBJECT: City Center Redevelopment Agency Financial and Capital Plan
The purpose of this LTC is to provide background information on the existing plans for the City Center
Redevelopment Area (RDA), and to provide projections of the financial impacts of those existing plans
in response to a request from the City Commission. With recent project development efforts
contemplated including New World Symphony, Riviera Apartments, and future operation and
management of the Jackie Gleason Theatre, questions have arisen regarding this issue. The status of
the City Center RDA and its future revenues was discussed at the 2006 Commission retreat and raised
at subsequent Commission meetings. A referral of this issue has been made to the Finance and
Citywide Projects Committee, as well as referrals regarding the New World Symphony request for
additional funds, an amendment to the City Center RDA Plan to provide workforce housing, and the
future disposition of funds for workforce housing. These will be discussed at an upcoming Finance and
Citywide Projects Committee meeting.
OVERVIEW
The 332-acre City Center/Historic Convention Village Redevelopment and Revitalization Area (City
Center RDA) was established in 1993, to provide the funding mechanism to foster development of a
new convention hotel within proximity of the Miami Beach Convention Center and to establish the
necessary linkages between the City's many core area civic, cultural and entertainment uses in order to
create the fabric of a true urban downtown. Appendix I contains a map of the City Center RDA.
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, encouraging the production and presentation of arts
and cultural activities in the area, and community policing.
BACKGROUND
Chapter 163, Part III, Florida Statutes, also known as the "Community Redevelopment Act of 1969" (the
Act), authorizes the creation of community redevelopment agencies and governs the use of monies in
redevelopment trust funds created in accordance with the Act. These community redevelopment
agencies (CRAs) are in turn empowered to designate certain slum or blighted neighborhoods as
"redevelopment areas" for the purpose of redeveloping them according to approved plans. Under this
authority, the Miami Beach Redevelopment Agency (RDA) was created in 1973. Currently, there is one
community redevelopment district within the City of Miami Beach: the City Center/Historic Convention
City Center Financial and Capital Plan
Page 2 of 12
Village Redevelopment Area, also known as the City Center RDA, established in 1993. The South
Pointe RDA expired on September 30, 2005. The City now operates under an Interlocal Agreement
with Miami-Dade County which ensures continued contributions of funds equal to the County portion of
the Tax Increment revenues for the next several years.
As required by the Act, on January 26, 1993, pursuant to County Resolution No. R-14-93, the City
Center RDA was declared a "blighted area" and the City Commission was delegated the authority to
exercise certain redevelopment powers, including the development of a redevelopment plan, for final
approval by the Miami-Dade County Commission. On March 30, 1993, pursuant to County Resolution
No. 317-93, the County Commission finalized the establishment of the City Center RDA, adopting the
following:
. Approving the City Center RDA Redevelopment and Revitalization Area Plan, as prepared by
the City's Department of Development, Design and Historic Preservation Services, and dated
February 1, 1993 (the Plan);
. Approving the delegation of redevelopment powers under the Act to the City (through the RDA)
except those pertaining to the approval of annual budgets; the duration and purpose of bonds,
notes, and other indebtedness for City Center funds; and amendments to the Plan; all which
were reserved subject to the approval of the County; and
. Approving an Interlocal Cooperation Agreement between Miami-Dade County and the City of
Miami Beach, establishing the County and City's respective responsibilities for the
implementation of the Plan (which Agreement was executed between the parties on November
16, 1993, and amended on December 2, 2003).
In 2002, the City undertook an extensive process to refresh and update the City Center RDA Plan for a
cost of approximately $252,000. After extensive discussion, the process culminated with a proposed
master plan with projects in excess of $140 million in 2001 dollars. The resulting amendments to the
RDA Plan sought to:
A) Incorporate by reference the September 21,2001 Master Plan prepared by Zyscovich, Inc.,
addressing the needs of the Convention Center area and the New World Symphony
expansion proposal;
B) Implement Community Policing innovations in accordance with the Chapter 163.36, Florida
Statutes; and
C) Fund a Business Assistance/Retention Program.
On May 10, 2002, the City presented the proposed amendments to the County's TIF Committee, which
voted in favor of the amendments. The proposed amendment pertaining to the Business Assistance
Program was subsequently withdrawn based on discussions between the City and the County. On
December 11, 2002, County Commissioner Bruno Barreiro addressed the City Commission,
expressing concern that the Community Policing Program was going to fund existing as opposed to
"enhanced" levels of police service, and suggested that if the County was to approve the Community
Policing amendment, that two County Commissioners be added as voting members on the RDA Board,
to provide oversight in the policy-making decisions of the Agency. The City Commission declined the
suggestion.
On January 23, 2003, following a Public Hearing, the Board of County Commissioners (BCC) voted to
approve the amendment referencing the Zyscovich Master Plan. Nine months later, and almost one
City Center Financial and Capital Plan
Page 3 of 12
and a half years after beginning the process, the BCC voted to approve the Community Policing
amendments to City Center and South Pointe Plans (the South Pointe RDA has since been terminated)
on September 9, 2003.
On December 2, 2004, the Loews Hotel exercised the purchase option to acquire the land, land
improvements and the building for a total price of $27.5 million net of closing costs. Similarly, on
February 16, 2005, after extensive renegotiation efforts to avoid potential litigation with RDP Royal
Palm over alleged construction and environmental delay claims, the RDP Development Inc. exercised
its right to purchase the land and improvements underlying the Royal Palm Hotel for $12.4 million.
Together these resulted in one-time proceeds of almost $40 million to the City Center RDA. Since that
time, the Miami City Ballet building has been purchased with these proceeds and appropriations made
for capital projects to be repaid from Tax Increment Revenues in the near future. The projected cash
balance at the end of FY 2005/06, net of appropriations, is $26.3 million.
PROJECTS IN THE CITY CENTER RDA PLAN
Completed Proiects
Since its inception, the City Center RDA has undergone dynamic changes including:
. Two new convention-quality hotels, both of which were the result of public/private partnerships
between the 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 convention center hotel in the United States;
. The development of an 800-space public parking garage to accommodate the parking needs
for the Loews Miami Beach Hotel, the Royal Palm Crowne Plaza Hotel and other service and
retail businesses in the area;
. A $20 million overhaul of Lincoln Road, partially funded with the participation of businesses on
Lincoln Road;
. The highly regarded Beachwalk project from 21 st Street to Lummus Park, with an at-grade,
landscaped pedestrian walkway ($4.8 million)
. Substantial completion of the City Center portion of the Washington Avenue Streetscape ($3.5
million); and,
. Implementation of a Cultural Arts Campus Master Plan for the area east of the Miami Beach
Convention Center, which includes:
. a new regional library (including demolition of the old library and construction of the new
library, with $10.2 million funded by the RDA);
. construction and purchase of the headquarters of the Miami City Ballet ($5.2 million in
acquisition costs funded by the RDA);
. the expansion and renovation of the Bass Museum of Art ($5.8 million of the $9 million
project cost funded by the RDA); and
. the re-Iandscaping of Collins Park, to include the restoration of the Rotunda and extensive
streetscape improvements throughout the area.
City Center Financial and Capital Plan
Page 4 of 12
Proarammed Proiects
Programmed projects for the City Center RDA are defined as those projects approved by the
Commission, with funds appropriated, or planned to be appropriated as contained in the FY 2006/07
Capital Budget and FY 2006/07 - 2010/11 Capital Improvement Plan (CIP) adopted September 21,
2006.
Approximately $20.7 million in funds were appropriated prior to but were not yet complete as of
September 30, 2006. With the adoption of the FY 2006/07 Capital Budget, an additional $20.9 million
was appropriated for on-going projects. This $42 million in appropriations for on-going projects
includes funding for the following:
. New beach front restrooms at 21 Street;
. Completion of Collins Park, including streetscape improvements and the renovation of the
Rotunda;
. Neighborhood Right of Way Improvements, including water, sewer, and Stormwater
infrastructure, in the City Center portion of the Flamingo Park neighborhood;
. Implementation of City Wayfinding Signage throughout the City Center RDA.
. The Little Acorn Theatre/Carl Fisher Clubhouse;
. The Collins Canal Project along Dade Boulevard;
. Streetscape improvements on both the east (Collins to Washington) and west (Lennox to
Alton) portions of Lincoln Road;
. Alleyway Improvements;
. Traffic and transportation improvements including crosswalks, pedestrian countdown signals,
etc.;
. Upgrading tree wells along Lincoln Road;
. Planning and design for the Multi-Purpose Parking Facility; and
. Planning and design for the right-of-way streetscape improvement projects in the Historic and
Commercial Districts.
In the future years of the CIP, $40 million is programmed to be appropriated in 2007/08 for the
completion of these projects, in addition to $35 million for the New World Symphony project in the
following year.
Together with the $20.9 million appropriated this year, approximately $100 million in project
appropriations are anticipated through FY 2008/09. While a 10% contingency has been included, it is
important to keep in mind that the capital project estimates are often revised once the project is bid
often due to the rapid escalation of construction costs for materials and labor in recent years. Typically
the City's CIP and Capital Budget do not program these additional needs until they are known, and in
the past, the RDA has had sufficient fund balance to be able to absorb these increases in scope or
costs. However, in looking to the future and planning for additional projects, these contingency
considerations need to be included.
Within the area, the 23rd Street Bridge is also programmed to be replaced by Miami-Dade County which
could require some RDA funded enhancements to conform to the area's overall design standards.
City Center Financial and Capital Plan
Page 5 of 12
CITY CENTER CAPITAL IMPROVEMENT PLAN FY 2006/07. FY 2010/11
Fiscal Year 2006/07 2007/08 2008/09 2009/10 2010/11 5-YR TOTAL
Planned Appropriations
Collins Park Streetscape $2,728,992 $14,055,000 $16,783,992
Collins Pk ArtlChildrens Feature $285,000 $285,000
Commercial ROW Imps. $9,441,273 $9,441,273
Historic Dist. ROW Imps. $8,012,357 $8,012,357
West Ave/Bay Rd ROW Imps. $714,000 $714,000
Collins Canal Landscaping $1,600,000 $1,600,000
Clubhouse/Little Acorn Theatre $480,000 $3,520,000 $4,000,000
Lincoln Rd/Collins to Washington $949,467 $15,720 $965,187
Lincoln Rd/Lennox to Alton $550,000 $4,450,000 $5,000,000
Alleyway Improvements $600,000 $600,000
Waste Receptacles/Dispensers $50,000 $50,000
Bike Racks & Signage $57,750 $57,750
Traffic Calming & Pedestrian Imps. $78,500 $78,500
Direct Street Wiring Replacement $30,000 $30,000
Tree Wells Pilot Project $252,733 $252,733
Beachfront Restrooms $72,009 $72,009
New World Symphony*
Garage $15,210,135 $15,210,135
Park & Infrastructure $400,000 $19,600,000 $20,000,000
Multi-Purpose Municipal Pkg Fac. $13,163,606 $13,163,606
Total Capital Budaet and CIP $20,898,057 $40,608,350 $34,810,135 TBD TBD $96,316,542
10% Contingency -Future Plan Years $4,060,835 $3,481,014 TBD TBD $7,541,849
Total CIP Plus Contingency $20,898,057 $44,669,185 $38,291 ,149 TBD TBD $103,858,391
* Actual future year appropriations will be subiect to final neQotiations with the New World Svmohonv
Further, while the $20 million programmed for the New World Symphony Park includes $7 million in
additional funding, we are not yet sure what additional funding requirements may be needed pursuant
to the final negotiations on the Park and garage, if any.
Projects in Development
While not included as part of the CIP and the resulting Financial and Capital Plan, it is also important to
note that several projects beyond those in the FY 2006/07 - 2010/11 CIP are already under
development and already part of the City Center RDA Master Plan. These can significantly impact the
availability of the funds not only through this 5-year time period but beyond.
These projects include*:
. Capital Improvements at the Jackie Gleason Theatre of the Performing Arts to support whichever
alternative the City pursues (Cirque Du Soleil, Live Nation, AEG, etc.) ($ TDB)
. Acquisition of the Riviera Apartments for retention of existing affordable housing ($4.5 million)
. 17th Street Garage Fa9ade and Pennsylvania Avenue Improvements ($2 million)
. Bass Museum Phase II expansion ($9 million cost for Phase I)
. Bus Zip Lane Washington Avenue ($TBD)
. 2,000-space Convention Center Parking Garage Structure ($40 million in 2001 dollars)
. Right-of-way Furniture Acquisition ($TBD)
City Center Financial and Capital Plan
Page 6 of 12
. Potential additional contribution for the New World Symphony (Requested $30 million)
* All figures provided for these projects are very preliminary planning estimates only.
FINANCIAL AND CAPITAL PLAN
Projected Growth in Assessed Values
Clearly a significant component of any financial plan for the City Center RDA is the projected growth in
revenues over the next 5 years. Projecting growth in property tax revenues is particularly challenging
given current real estate market conditions. Recent reports by the National Association of Realtors and
by industry experts have forecast decreases in housing prices anywhere from 3% over the next year to
much more significant decreases lasting 5 to 10 years. Concerns have been particularly raised
regarding high growth markets such as South Florida.
Since the inception of the City Center RDA in 1993, assessed values have grown from $293 million to
over $3 billion as of January 1, 2006. However, annual growth has varied widely, with some years as
low as 1 %, and others, such as when the Lowe's Hotel came on line, as high as 47%. With the
exception of the last two years, high growth years can be attributed to specific projects:
. In the early years: the National and the Delano; and
. In FY 1999/00: the impact of the Loews Hotel.
Growth in the last two years has been dramatic, as elsewhere in the City of Miami Beach and
throughout the County, with increases of 39% and 32% respectively.
However, over the five years prior to these, excluding the one-time impact of the Loews hotel, growth
has averaged approximately 13%. Even within this 13%, the primary source of increases in property
values within the RDA has been due to new construction and renovations (II Villagio, Royal Palm,
Setai, Ritz, Carlton, etc.) rather than property appreciation. Given current real estate market
conditions, even projections of 13% can be considered aggressive.
In projecting growth in assessed values in Miami Beach, there are three primary categories that should
be considered:
. The 3 percent Save-Our-Homes limit on existing homesteaded properties
· Non-homesteaded properties re-assessed at market values and re-setting from sales of
homesteaded properties
. New Development and Construction
3 Percent Growth on Existing Homesteaded Residential Properties
Increases in assessed values on homesteaded properties are capped at 3% per year or increase in the
CPI from the prior year, whichever is less, based on State Statutes. As properties values have risen
dramatically in the last few years, the difference between assessed values and market values on
homesteaded properties have increased. The longer the home has been owned, the greater the
differential. Based on prior analysis, approximately 7% of homesteaded properties turnover each year,
and therefore, more than 40% of homes are estimated to have been purchased before 2000.
Two factors can impact growth in assessed values for existing homesteaded properties:
· If CPI increases over the prior year are less than 3% - which is not anticipated; and
City Center Financial and Capital Plan
Page 7 of 12
. A decrease in home values more than the difference between market value and assessed
values - On most homesteaded properties the differential is anticipated to provide sufficient
cushion for continued increases in assessed values even under worst case conditions of a
market decline.
As a result, we anticipate that growth in assessed values for homesteaded properties will continue at
3%. However, the majority of property value in the City Center RDA is non-homesteaded residential, so
the overall growth impact would be significantly less than the 3%.
Non-homesteaded Residential Properties Re-assessed at Market Values and Re-setting from
Sales of Homesteaded Properties
Both the re-assessment of non-homesteaded properties and re-setting of sales from homesteaded
properties are tied to the real estate market.
The greater potential for increased assessments is the resetting of assessed values associated with
sales from homesteaded properties as many are currently assessed significantly below market prices
due the 3% Save Our Homes limit as described above. However, as the majority of property value in
the City Center RDA is non-homesteaded, the overall impact is anticipated to be small.
Increases due to the re-assessment of non-homesteaded properties are more closely tied to market
conditions. While increases in housing prices have in the last few years been dramatic, recent
research has shown that these are generally less sustainable in the long term. Other than two periods
since 1890 (after World War II and since 1998), real home prices have been mostly flat or declining.
Moreover, the overall increase, including the booms, is not very impressive - 4% per year. An analysis
of Miami market data that is available for the period of 1975 to 2005 is consistent with this nationwide
trend.
In either condition, even if pricing holds, there is already a slowdown in volume of sales in Miami
Beach. Therefore, growth in assessed values in this category is particularly uncertain. Based on year-
to-date number of condo sales and associated dollar volumes in the South Beach area, prices appear
to be leveling and volumes are declining.
Further, additional uncertainty is added due to various property tax reform discussions taking place in
Florida, some of which may become proposals for either consideration by the 2007 Florida Legislature
or as constitutional amendments. These discussions include issues that could negatively impact
property tax revenues, including "portability," expansion of limitations on both assessments and
revenue caps, and alternative methods of property assessment.
New Development and Construction
New construction projects planned or under construction within the RDA such as the Regent, Arte Cite,
the "W", and the planned project at the site of the former "W olfie's", are anticipated to add between 2
and 4% increase in assessed values. Additional new development can be expected, particularly in the
outer years, but the scope, scale and value of these is uncertain. Most major projects are already
completed, and opportunities for new construction are declining.
City Center Financial and Capital Plan
Page 8 of 12
Other Revenues
The 5-year financial projections for the City Center RDA were developed by analyzing various
scenarios for revenue growth, recurring expenditures, and capital projects needs. While much has
been accomplished, a significant portion of the capital projects from the 2001 Update remains.
Revenues and expenditures that have direct offsets were not considered in the projections, including
Capital Renewal and Replacement, Anchor Garage and Shops, and the Children's Trust.
Resort tax contributions approved by referendum and used to pay a portion of the debt service on the
Miami Beach Redevelopment Agency - City Center/Historic Convention Village Bonds also flow to the
RDA.
In addition, interest earnings are earned on the fund balance.
5-Year Projected Revenues
The primary revenues for the City Center RDA are tax increment revenues (Le. City and County
property tax revenues derived from the difference between current assessed values and the assessed
values at the time of inception of the RDA - the base year).
In developing the 5-year financial and capital plan, alternative property assessed value growth
scenarios were projected:
. A conservative growth scenario of 2 percent per year increase in assessed values per year plus
new anticipated construction projects coming on to the tax rolls, resulting in annual increases
varying from 2% to 6% - in light of recent property sales trends this assumes that there will be
minimal growth in assessed values other than the 3 percent increase on existing homesteaded
properties, however additional growth is projected through properties coming on line such as
the Regent, Arte Cite, the "W", the project at the former "Wolfie's" site, etc. ;
. A moderate assumed growth of 7.5% per year increase in assessed values (including new
construction) similar to projection levels used in the General Fund; and
. An aggressive growth scenario of 13% per year increase in assessed values (including new
construction) similar to more recent increases in assessed values but excluding the last 2
years.
The following table shows the resulting tax increment revenues for each of these scenarios as
compared with historical revenues.
5- Year Period*
FY 2006/07 - FY 2010/11 (2% - 6%)
FY 2006/07 - FY 2010/11 (7.5%)
FY2006/07-FY2010/11 (13%)
I Tax Increment Revenues for the I
Period
$184,450,699
194,365,202
219,049,619
Average Annual Tax
Increment Revenues
$36,890,140
38,873,040
43,809,924
FY 2001/02 - FY 2005/06
FY 1996/97 - FY 2000/01
FY 1993/94 - FY 1995/96 *(3 years)
78,929,918
26,566,019
6,344,276
15,785,984
5,313,204
2,114,759
City Center Financial and Capital Plan
Page 9 of 12
Resort tax contributions are assumed to grow at 4% per year. This is lower than in prior years, given
the high occupancy levels and room rates already achieved; on-going condo conversions of hotels; and
room stock reductions from renovations and rehabs (e.g., Fontainebleau, Eden Roc. etc.)
The resulting revenues from each of these scenarios are summarized in Appendix II, growing from $36
million per year in FY 2006/07 to between $44 million and $60 million in FY 2010/11 per year,
depending on the scenario.
In addition, interest earnings are projected based on average annual available funds and an interest
rate of 3.75% consistent with projected General Fund interest earnings.
5-Year Projected Recurrina Annual Expenditures
Approximately one-half of the operating revenues of the City Center RDA are used to fund
expenditures that recur on an annual basis. These include:
. City and County administrative expenditures of between $1 million and $1.3 million per year. -
Pursuant to the security (pledged funds) provisions in the 1988 series bond documents, City
administrative expenses are capped at $500,000, comprising of a $414,000 management fee
allocated to the general Fund to pay for direct and indirect staff support for the RDA, and
$86,000 for actual operating expenses. In addition, City and County administrative fees are set
at 1.5% of their respective tax increment revenues. These expenditures are based on a
percent of total budget and, thus, increase as revenues increase;
. Debt service of approximately $10 million per year - This includes approximately $8.4 million
annually for debt service issued to acquire the land for the convention center hotel development
initiative, related contractual obligations and capital improvements, and the Cultural Campus
project payable through December 2022 concurrent with the expiration of the RDA. An
additional $1.7 million annually is programmed to repay the loan used for the
reconstruction/renovation of Lincoln Road and the Bass Museum. payable through 2016;
. Community policing expenditures - These expenditures are assumed to grow at 7 percent per
year consistent with expenditure trend scenarios previously projected for the General Fund,
growing from $2.7 million to $3.4 million over the five years;
· Operating costs for maintaining assets built or improved with RDA funds - RDA capital projects
maintenance growth reflects the 7% growth rate on current service levels in addition to an 8%
annual increase as additional capital projects come on-line and also must be maintained, e.g.
the Collins Canal project, Washington Park, 21 sl Street restrooms, enhanced streetscapes, etc.
for a total growth of 15% per year. Further, major projects such as the New World Symphony
SoundS pace Park, the Collins Park and the Little Stage Complex are anticipated to add to the
RDA capital project maintenance expenditures beyond the 15% per year increase in the
amounts of $2 million, $1 million, and $100,000, respectively, in FY 201 0/11. As a result, cost
of maintaining RDA assets are projected to grow from $2.3 million in FY 2006/07 to $7.5 million
in FY 2010/11 as new projects come on line.
The projected recurring expenditures are summarized in Appendix III. Total recurring expenses are
projected to increase from $16 million to $22 million per year over the next 5 years.
City Center Financial and Capital Plan
Page 10 of 12
Net Revenues Available for Projects in Development
The results of five-year financial and capital plan scenarios are provided in Appendix IV and
summarized below, all of which begin with a projected available balance as of September 30, 2006 of
$26.3 million:
Scenario: 2% Growth in Assessed Values plus New Construction - Resulting in Annual
Increases between 2% and 6%
Under this conservative assessment growth scenario, the projects already appropriated, programmed,
or in development are projected to consume the bulk of the available funding, if not the entirety:
. Total projected revenues over the 5 years are approximately $200 million
. Total projected Interest earnings are $2.4 million over the same period
. Total projected recurring expenditures are approximately $90 million over the 5 years, and together
with programmed project appropriations of $1 04 million results in a net potential for programming of
$9 million at the end of the 5 year period
. Together with the projected available balance as of September 30,2006, and projected interest
earnings, this results in approximately $36 million for projects already in development and in the
current city Center RDA Plan period (e.g. Riviera Affordable Housing, alternatives for the Jackie
Gleason Theatre, etc.).
. There is a negative available cash balance projected by the end of FY 2008/09 which will either
need to be advanced from other City sources or from short term loans under this scenario.
Fiscal Year
5-YR TOTAL FY 2006/07 - FY 2010/11
Beginning Balance
$26,302,340
Sub-total
$200,583,216
$2.423.522
$203,006,738
Revenues
Interest Earnings
Recurring Expenditures
$89,691,497
Net Balance Available For Capital Projects
$139,617,581
Total CIP Plus Contingency
$103.858,391
Endin Balance
$35,759,190
City Center Financial and Capital Plan
Page 11 of 12
Scenario: 7.5% Moderate Growth in Assessed Values
Under this moderate assessment growth scenario, the projects already appropriated, programmed, or
in development also are projected to consume the bulk of the available funding, if not the entirety:
. This scenario provides only $10 million more in total net revenues over the 5-year period
. There is also a negative available cash balance at the end of FY 2008/09 in this scenario
Fiscal Year
5.YR TOTAL FY 2006/07 - FY 2010/11
Beginning Balance
$26,302,340
Sub-total
$210,497,719
$2.904.519
$213,402,238
Revenues
Interest Earnings
Recurring Expenditures
$89,861,015
Net Balance Available For Capital Projects
$149,843,563
Total CIP Plus Contingency
$103,858,391
Endin Balance
$45,985,172
Scenario: 13% Aggressive Growth in Assessed Values
Under this more aggressive assessment growth scenario, the projects already appropriated,
programmed, or in development are projected to consume the bulk of the available funding, and any
potential additional funding is anticipated to be consumed by projects already in the plan:
. This scenario provides $26 million more in total net revenues over the 5-year period as compared
to the moderate growth scenario
. Even this more aggressive growth scenario, projected funding is tight through FY 2008/09
Fiscal Year
5. YR TOTAL FY 2006/07 . FY 2010/11
Beginning Balance
$26,302,340
Sub-total
$235,182,136
$4.218.142
$239,400,278
Revenues
Interest Earnings
Recurring Expenditures
$90,210,480
Net Balance Available For Capital Projects
$175,492,138
Total CIP Plus Contingency
$103,858,391
Endin Balance
$71,633,747
City Center Financial and Capital Plan
Page 12 of 12
FUTURE AMENDMENTS TO THE CITY CENTER RDA PLAN
While it is difficult to project what actual growth in assessed value will be, the City must be cautious
when allocating City Center resources beyond those already contained in the City Center RDA Plan.
Further, the Administration expects that any future application to amend the Redevelopment Plan could
have potential adverse implications to the Interlocal Agreement, possibly including the percentage of
Tax Increment Revenues, termination date, other eligible activities, and makeup of the Board.
Additionally, given the previous agreement with Miami-Dade County regarding the termination of the
South Pointe RDA, an amendment to the Redevelopment Plan could have potential consequences on
the City's revenue stream derived pursuant to the Convention Development Tax agreement with Miami-
Dade County.
The amendment process and these concerns are outlined further in Appendix V.
CONCLUSION
As one can see, the 2001 amendments to the City Center RDA Plan are being developed and are
moving towards fruition. The resources required to complete these programmed projects are either
allocated or are planned to be over the next few years.
The range of growth scenarios that have been analyzed all indicate that the City will have additional
resources to allocate for projects in the future. However, the amount and availability of these resources
are what still remains uncertain, given the vagaries of projecting into the future and the changing
market conditions in South Florida. What we can be reasonably sure of is that the availability of as yet
unprogrammed City Center RDA resources is not likely in the next 5 years.
The City is fortunate to have two of the most successful RDA's in the State of Florida - prudent
planning and management will allow us to continue this record of success.
JMG/TH/KB/KGB
CITY CENTER FINANCIAL AND CAPITAL PLAN
APPENDIX I
CITY CENTER REDEVELOPMENT DISTRICT
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CITY CENTER FINANCIAL AND CAPITAL PLAN
APPENDIX II
PROJECTED REVENUES
Revenues
City Tax Increment $18,522,593 $19,746,324 $20,662,914 $22,086,352 $22.568,059 $103,586,242
County Tax Increment $14,452,835 $15,416,519 $16,132,127 $17,243,447 $17,619,529 $80,864,457
Resort Tax (50% of 1 % Tax) $2,978,500 $3,097,640 $3,221,546 $3,350,407 $3,484,424 $16,132,517
Sub-total $35,953,928 $38,260,483 $40,016,587 $42,680,206 $43,672,012 $200,583,216
Revenues
City Tax Increment $18,522,593 $20,054,147 $21,704,647 $23,480,770 $25,391,751 $109,153,908
County Tax Increment $14,452,835 $15,656,846 $16,945,438 $18,332,109 $19,824,066 $85,211,294
Resort Tax (50% of 1% Tax) $2.978,500 $3,097,640 $3.221,546 $3.350,407 $3,484,424 $16,132.517
Total $35,953,928 $38,808,633 $41,871,631 $45,163,286 $48,700,241 $210,497,719
Revenues
City Tax Increment $18,522,593 $21,182,833 $24,214,516 $27,622,571 $31,473,371 $123,015,884
County Tax Increment $14,452,835 $16,538,043 $18,904,965 $21,565,731 $24,572,161 $96,033,735
Resort Tax (50% of 1 % Tax) $2,978,500 $3,097,640 $3,221,546 $3,350,407 $3,484,424 $16,132,517
Total $35,953.928 $40,818,516 $46,341,027 $52,538,709 $59,529,956 $235,182,136
* The resulting percent increase in tax increment revenues per year are slightly higher than the percentage
increases in assessed values each year due to the base year assessed value subtracted to calculate tax
increment revenues.
CITY CENTER FINANCIAL AND CAPITAL PLAN
APPENDIX III
RECURRING EXPENDITURES
Fiscal Year 2006/07 2007/08 2008/09 2009/10 2010/11 5-YRTOTAL
Recurring Expenditures
City & County Admin Fees $994,632 $1,027,443 $1,051,926 $1,089,947 $1,102,814 $5,266,762
Debt Service $10,013,387 $10,045,145 $10,051,253 $10,081,759 $10,088,289 $50,279,833
Community Policing $2,664,566 $2,851,086 $3,050,662 $3,264,208 $3,492,702 $15,323,224
Capital Projects Maintenance $2,314,713 $2,661,920 $3,061,208 $3,620,389 $7,163,448 $18,821,678
Total $15,987,298 $16,585,594 $17,215,049 $18,056,303 $21,847,253 $89,691,497
Fiscal Year 2006/07 2007/08 2008/09 5-YR TOTAL
Recurring Expenditures
City & County Admin Fees $994,632 $1,035,665 $1,100,552 $1,127,194 $1,178,237 $5,436,280
Debt Service $10,013,387 $10,045,145 $10,051,253 $10,081,759 $10,088,289 $50,279,833
Community Policing $2,664,566 $2,851,086 $3,050,662 $3,264,208 $3,492,702 $15,323,224
Capital Projects Maintenance $2,314,713 $2,661,920 $3,061,208 $3,620,389 $7,163,448 $18,821,678
Total $15,987,298 $16,593,816 $17,263,675 $18,093,550 $21,922,676 $89,861,015
Fiscal Year 5.YRTOTAL
Recurring Expenditures
City & County Admin Fees $994,632 $1,065,813 $1,146,792 $1,237,825 $1,340,683 $5,785,745
Debt Service $10,013,387 $10,045,145 $10,051,253 $10,081,759 $10,088,289 $50,279,833
Community Policing $2,664,566 $2,851,086 $3,050,662 $3,264,208 $3,492,702 $15,323,224
Capital Projects Maintenance $2,314,713 $2,661,920 $3,061,208 $3,620,389 $7,163,448 $18,821,678
Total $15,987,298 $16,623,964 $17,309,915 $18,204,181 $22,085,122 $90,210,480
CITY CENTER FINANCIAL AND CAPITAL PLAN
APPENDIX IV
5-YEAR SCENARIOS
Beginning Balance $26,302,340 . $26,449,309 $4,015,719 ($11,613,733) $13,036,353 $26,302,340
Revenues $35,953,928 .. $38,260,483 $40,016.587 $42.680,206 $43,672,012 $200,583,216
.....,. .".,_',.,',
Interest Earnings $1 ,07~:3~6 $~~9~?O.~ _{~1 ~918~~1t. .~.2.~I 1. ~~... ~_~9~!07? $2[423,1522
Sub-total $37,032.324 $38,821,189 $39,876,746 $42,706,389 $44,570,089 $203,006,738
Recurring Expenditures $15,987.298 $16,585,594 $17,215,049 $18.056.303 $21 ,847,253 $89,691,497
Net Balance Available For
Capital Projects $47,347,366 $48,684,904 $26,677 ,416 $13.036,353 $35,759,190 $139,617,581
Total CIP Plusc:ontinf,ilency $20.898.057 $44,669,185 $38,291,149 TBD TBD $103,858,391
Endin Balance $26,449,309 $4,015,719 ($11,613,733) $13,036,353 $35,759,190 $35,759,190
Fiscal Year 2006/07 2007/08 2008/09 2009/10 2010/11 5-YR TOTAL
Beginning Balance $26,302,340 $26,449,309 $4,565,771 ($9,202,766) $18,029,424 $26,302,340
Revenues $35,953,928 $38,808,633 $41,871,631 $45,163,286 $48,700,241 $210,497,719
Interest Earnings $1.078.396 $570.830 ($85.343) $162.454 $1.178.183 $2.904.519
Sub-total $37,032,324 $39,379,463 $41,786,288 $45,325,740 $49,878,424 $213,402,238
Recurring Expenditures $15,987,298 $16,593,816 $17,263,675 $18,093,550 $21,922,676 $89,861,015
Net Balance Available For
Capital Projects $47,347,366 $49,234,956 $29,088,383 $18,029,424 $45,985,172 $149,843,563
Total CIP Plus Contingency $20,898,057 $44,669,185 $38,291,149 TBD TBD $103,858,391
Endin Balance $26,449,309 $4,565,771 $18,029,424 $45,985,172 $45,985,172
Fiscal Year 2006/07 2007/08 2008/09 2009/10 2010/11 5-YR TOTAL
Beginning Balance $26,302,340 $26,449,309 $6,582,626 ($2,604,189) $32,276,455 $26,302,340
Revenues $35,953,928 $40,818,516 $46,341,027 $52.538,709 $59,529,956 $235,182,136
Interest Earnings $1.078.396 $607.950 $73.223 $546.115 $1.912.458 $4.218.142
Sub-total $37,032,324 $41 ,426,466 $46,414,250 $53,084,824 $61,442,414 $239,400,278
Recurring Expenditures $15,987,298 $16,623,964 $17,309,915 $18,204,181 $22,085,122 $90,210,480
Net Balance Available For
Capital Projects $47,347,366 $51,251,811 $35,686,960 $32,276,455 $71,633,747 $175,492,138
Total CIP Plus Contingency $20,898,057 $44,669,185 $38,291,149 TBD TBD $103,858.391
Ending Balance $26,449,309 $6,582,626 $32,276,455 $71,633,747 $71,633,747
CITY CENTER FINANCIAL AND CAPITAL PLAN
APPENDIX V
FUTURE CHANGES TO THE RDA PLAN
Any additions to the Plan require a prescribed process to be followed. Pursuant to the provisions of
Chapter 163, Florida Statutes, and in accordance with the Interlocal Agreement between Miami-Dade
County and the City of Miami Beach, dated March 30, 1993, as amended on December 2, 2003, the
following steps are necessary to amend the City Center Redevelopment Plan:
1. Courtesy meeting with Miami-Dade County Tax Increment Financing (TIF) Committee to advise
of proposed Plan amendment(s).
2. City Commission Referral to Finance and Citywide Projects Committee
3. Approval of proposed amendment(s) by Finance and Citywide Projects Committee.
4. City Commission to set Public Hearing to consider proposed amendment(s)
5. Public Hearing and approval of proposed amendment(s) by City Commission (if an amendment
to the Interlocal Agreement is required, a resolution to this effect should be adopted by the City
Commission as well).
6. Meeting with the County TIF Committee for formal approval and referral to the Board of County
Commissioners (BCC's) Community Empowerment and Economic Revitalization Committee
(CEERC).
7. Approval of proposed amendment(s) by County's CEERC Committee.
8. BCC sets Public Hearing to consider proposed amendment(s).
9. Public Hearing and approval of proposed amendment(s) by BCC (if an amendment to the
Interlocal Agreement is required, a resolution to this effect should be adopted by BCC as well).
Any future amendment to the City Center Redevelopment Plan will require approval by the BCC, and
potential amendments to the Interlocal Agreement. On July 7, 2005, during the BCC's discussion and
approval of the South Pointe RDA annual budget, County Manager Burgess stated that the City of
Miami Beach Community Redevelopment Agency (South POinte), would be abolished in FY 2004/05,
but that the County would continue making payments to the City until FY 2016/17 in accordance with an
interlocal agreement to secure the a stream of revenues from the Convention Development Tax (CDT)
for the Florida Marlins stadium project. Commissioners Moss and Gimenez asked that the County
Manager develop and include in the Miami-Dade County Code, an exit strategy that provided for the
termination of Community Redevelopment Agencies (CRA) once their prescribed redevelopment
related activities were completed. Commissioner Gimenez expressed opposition to elected city officials
serving as board members of a CRA since conflicts of interest usually developed between the two
official responsibilities. Commissioner Carey-Shuler asked that the County Manager work with legal
staff in drafting legislation providing that the City of Miami Beach Community Redevelopment Agency
would no longer receive CDT dollars.
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