95-21743 RESO Incomplete
~e
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
OFFICE OF THE CITY MANAGER
TELEPHONE: (305) 673-7010
FAX: (305) 673-n82
COMMISSION MEMORANDUM NO. (oct 5-q S f)Q.l,~~
September 27, 1995
To: Mayor Seymour Gelber and
Members of the City Commission
From: Jose Garcia-Pedrosa
City Manager
Subject:
An Ordinance Provi g for a Specific Amount Annually for the Visitor's and
Convention Authori and Providing for a Collection Allowance on the Municipal
Resort Tax
Administrative Recommendation
The Administration recommends that the Mayor and City Commission adopt this ordinance on first
reading and schedule a public hearing and second reading on October 11, 1995.
BacklP"ound
The City has determined that the amount of funds available from the resort tax will be significantly
reduced over the next several years until the tax increment in the City Center area is sufficient to
service the debt for the hotel projects. This ordinance will protect the funds that have annually been
allocated to the Miami Beach Visitor's and Convention Authority (VCA) who in turn remits an
amount to the Greater Miami Convention and Visitor's Bureau(CVB). This ordinance specifies an
annual appropriation by the City Commission that will be paid to the VCA regardless of the
collections and available revenues after debt service. The ordinance also establishes a collection
allowance of 4% to fund the operations of the resort tax collection section. This section of the
Finance Department administers the monthly collection of the tax and is the audit and compliance
section. The section annually audits over two hundred accounts to insure their compliance with the
requisite City Code sections. 3133
AGENDA
ITEI1
DATE
R-5-A
9~'2./- q S
Analvsis
For this ordinance to become effective it has to be approved by a five-sevenths vote of the City
Commission and a four-fifths vote of the VCA. A special meeting of the VCA has been requested to
address this issue prior to the September 27 Commission meeting. The proposed effective date of the
ordinance is October 1, 1995, for the start of the fiscal year.
Conclusion
To accomplish the fixing of the amount to be allocated to the VCA and the CVB as well as
establishing a method offunding the collection effort for the tax the proposed ordinance should be
adopted on first reading on September 27, 1995, and a public hearing and second reading should be
scheduled on October 11, 1995.
JGPIRJN/cp
384
ORDIlGRCB )10.
AN' ORDIlGRCB OF THB MAYOR AJID CITY COMMISSIO)1
OF THE CITY OF MIAMI BEACH, FLORIDA, AMEJitDI)1G
IIIAMI BEACH CITY CODE ARTICLE VI ENTITLED
"VISITOR AJID CONVENTION AUTHORITY", SECTION
41-68 "POWERS AJID DUTIES OF AUTHORITY AS THE
CITY'S LOCAL ARTS AGDfCY", SUBSECTIO)1 (e)
THEREOF BY DELETDtG LANGUAGE CO)1CERlfING FIFTY
PERCENT OF RESORT TAX 1I0)1IES COLLECTED BY THE
CITY BEING ALLOCATED TO THE AUTHORITY AJID
SUBSTITUTB THEREFOR LANGUAGE PROVIDING THAT
COMMEIl'CING OCTOBER 1, 1995, THE MAYOR AJID CITY
COIIMISSION SHALL ESTABLISH A!lWAL FmlDI)1G
ALLOCATIONS FOR THB AUTHORITY, TO BE SET BY A
RBSOLUTIO)1 OF THE CITY COMMISSION, AJID SUCH
FmlDI)1G SHALL BE PRORATBD, ALLOCATED AJID
APPROPRIATED TO THB AUTHORITY; PROVIDI)1G
FURTHER THAT PRIOR TO A!fY DISTRIBUTION (BUT
SUBORDINATE TO IITDEBTBDHBSS SERVED BY RESORT
TAX) THE CITY SHALL BE ENTITLED TO A
COLLECTIO)1 FEE OF POUR PERCENT 01' ALL SUMS
COLLECTED 0)1 RESORT TAXES; PROnDING FOR A
REPEALER, SEVERABILITY AJID AN' EFFECTIVE DATB.
BB IT ORDAI:NED BY THE MAYOR AlfJ) CITY CO!IIUSSIO)1 OF THE CITY 01'
MIAMI BEACH, PLORIDA:
SEeTIO)1 1.
That the Miami Beach city Code Article VI entitled "Visitor
and Convention Authority", Section 41-68 "Powers and duties of
Authority as the city's Local Arts Agency", Subsection (e) thereof
is amended to read as follows:
Sec. 41-68.
Powers and duties of authority as the City'S
local arts agency.
The authority shall, as the City of Miami Beach's local
arts agency, have the following powers and duties:
***
385
AGENDA ~ 5.Q.
ITEM - - U
1
DATE
Cl-;;).l-<15
(e) To annually prepare and submit a budget for the
expenditures of the portion of the resort tax provided for in
article V of this chapter, or any future amendment thereof,
allocated to the authority, as hereinafter provided. The budget
prepared and submitted by the authority to the city Commission
shall specify, with particularity, the expenditures anticipated and
proposed to be made by the authority, and no budgetary provisions
shall be made in broad or all-inclusive terms, and such proposed
budget shall be in conformity with the requirements for a "line-by-
line" budget. A sum not to exceed twenty percent of the total
annual b~~get may be placed in an "Event Contingency Fund", to be
expended by the authority during the budget period for events and
projects authorized subsequent to passage and approval of the
budget, and which will occur within one year from _ date of
authorization thereof.
(1) SUbject to the limitations contained in paragraph
(3) below with respect to the rights of bondholders,
commencing October 1988, fifty perce.lIt of ll.e r",sc.rt tax
Dlul...i1;S collecte.d b] tl~e cill ~h 6A.,-1& &OhUl 011 OL a.ft1;.L 6~Lu~r
~ 1, 1995 and continuing each fiscal year thereafter. the
City commission shall establish annual funding allocations for
the authority. to be set annually by a resolution of the City
Commission. and such fundina shall be ororated. allocated and
appro~riated to the authority. The resort tax receipts
allocated to the authority shall be distributed and paid to
the authority on or before the twentieth day of the month
immediately following the month of collection thereof in the
following manner:
.v-
386
2
Twenty-five percent of the total collections for the
months of October, November and December, the remaining
twer-ty-five percent to be paid as hereinafter set forth;
Forty percent of the total collections for the months of
January, February and March, the remaining ten percent to be
paid as hereinafter set forth;
Fifty percent of the total collections in each of the
remaining months of the fiscal year;
On or before May 31st of each year the portion of
collections withheld and not paid during the prior months of
October through March shall be distributed and paid to the
authority;
(2) Subject to the limitations contained in paragraph
(3) below with respect to the rights of bondholders, the
authority's percentage of past due taxes shall be paid to the
authority within thirty days after collected in the manner
provided for current collections.
.Lll. Prior to any distribution. the City shall be
entitled to a collection fee of 4% of all sums collected on
resort taxes.
T3T III
Notwithstanding the foregoing,
all SttCh
payments shall be junior and subordinate in all respects to
any and all obligations of the city under any ordinances and
resolutions pursuant to which the city issues bonds or other
indebtedness secured by the resort tax provided for in article
V of this chapter or any future amendment thereof.
,,""
,.
387
3
SECTXOlf 2.
REPEALER.
All ordinances or parts of ordinances in conflict herewith be
and the same are hereby repealed.
SECTXOlf 3.
SRVR~a.BXLXTY.
If any section, subsection, clause or provision of this
Ordinance is held invalid, the remainder shall not be affected by
such invalidity.
SECTXOlf 4.
EPPECTXVE DATE.
This Ordinance shall take effect on the
day of
, 1995.
PASSED and ADOPTED this
day of
, 1995.
. ATTEST:
MAYOR .
CXTY CLElUt
JKO:lm
A:jean\visitor.ord
. FORM APPROVED
ll9Al W-
By 1/6:.
Date
~:.
i: "
388
4
.
William O. Cullom
President
September 20, 1995
Mr. Jose Garcia-Pedrosa
Manager
City of Miami Beach
1700 Convention Center Drive
Miami Beach. Florida 33139
Dear Mr. Garcia-Pedrosa:
We respectfully urge your most serious consideration
of the accompanying resolution.
We have made such excellent progress together that.we
must continue to fight those who would fragment our
message.
Maintaining the unity and the momentum that this unity
has achieved over the past few years is the only path to
our community's prosperity.
We respectfully urge you to continue the prevailing level
of support.
Sincerely.
----
~
William O. Cullom
President
. -
389
GREAnR MIAMI CHAMBER OF COMMERCE
Omn,lnlernallonal Complex. 1601 Blscayne Boulevard' Miami, Florida 33132 . (305) 350-7700
. .
.l~ greater
"'If :~;;;:"'r of
rjl' commerce
RESOLUTION
Whereas the Greater Miami Chamber of Commerce is an
association of businesses and professions organized to create economic
progress in the entire Greater Miami community; and
Whereas lasting economic progress requires a united and
coordinated community-wide effort; and
_ Whereas a united community-wide approach to attract visitors and
conventions was the underlying concept that initiated the formation of the
Greater Miami Convention and Visitors Bureau more than a decade ago; and
Whereas such a unified approach has been tested and deemed
valid as evidenced by the continuing growth in the number of visitors to the
Greater Miami and the Beaches community and by the increase in tourist
related tax revenues; and
Whereas it is essential that the primary objective of maintaining
and expanding the business of tourism remain in sight when considering
diverting tourism revenues, that were designated for this purpose, to the vast
array of essential and unfunded City needs; and
Whereas the successful efforts of the Greater Miami Convention
and Visitors Bureau must not be curtailed by a lesser budget contribution
when industry competition demands stronger presence.
Now therefore be It resolved that the Greater Miami Chamber of
Commerce respectfully urges the Mayor and Commissioners of the City of
Miami Beach to consider the significant progress the industry has made while
facing enormous and ongoing challenges and to continue the prevailing
Interloeal Agreement with the Greater Miami Convention and Visitors Bureau.
approved this 15th day of August, 1995.
-- .......
William O. Cullom
President
c,-,-
-
-------
390
GREATER MIAMI CHAMBER OF COMMERCE
Omni Internotionol Complex. 1601 Biscayne Boulevard. Miami. ROOda 33132-1260. (305) 350-7700
SEP-21-1995 16:02 FROM GM&B HOTEL ASSOCIATION .
TO
6737782 P.01
M
September 21, 1995
CiLy Manager Jose Garcia-Pedrosa
City of Miami Beach
1700 COllVmltion Center Drive, 4th Floor
Miami Beach, FL 33139
----
Dear Mr. ~rosa:
/'
On W8dnecday, Septem 20,1995 the Board oCOit'CCtors orlbc GREATER MIAMI
& THE BEACHES HOTEL ASSOCIATION passed the enclosed resolutions:
1. OPPOSING any attempt to levy a one-percent (1 %) hot!!l tax for the
purpose of building a new sports arena.
2. OPPOSING any attempt by the City of Miami Beach or any other
interlocal partner to change the formula for sharing Resort Taxes.
3. SUPPORTING the effort to relocate the Parrot Jungle to Watson Island
Cor the purpose of uliiinWninlll and cxpariding one of our greatest natural
sources and tourist attractions.
questionR regarding the action taken on thece three initiatives, please
'ck Hancock (374-3900) or myself.
S1.Bt"ff
00: Rick Hancock. Chairman. GM&RHA
..
i
391
HOT,.a.e. Miami &The Beac"..
, R!'. ^~IKrION 40i ."U':CO!..:>-': RO....,l'. Si.:IT!; 10<'3. M11'l.MI nl:'."'.CHI F\.'.J1<lL>!'. 331,;9
~I"'\I 1.\01)\\:'3553 (iOO)>H'MIAMI (;<001531.351, ()05);3t.R9H FAX
SEP-21-1995 16:03 FROM GM&B HOTEL ASSOCIATION'
TO
6737782 P.02
M
RF.~OT UTION
WHEREAS, the Greater Miami ('.onvention & Visitors Bureau (GMCVB) wu created in
1984/1985 to provide one area-wide destination sales and marketing organization Cor
leisure nnd conventions ror MelrOjNlillUt Dade County, the City of Miami Beach, the City
of Miami and the Village ofBal Harbour; and
WHEREAS. tourism has increa.'lf!<l since 1986 and is now at record levels; and
WHEREAS, the GMCVB III::WS additional sales and marketing funds; and
WHEREAS, the GMCVB management in its Proposed 1995.1996 Budget has
suh!;tantillny reduc.ed personnel and related costs llnd shifted those dollars into badly
needed advertising and marketing budgets; and
WHEREAS, the City oC Miami Beach has requested a change in the formula for sharing
Resort Taxes collected on Miami Beach from the current 50"/0 sharing between the City of
Miami.l'Ieacb and the GMCVBj and
WHEREAS, Metropolitan Dade County from the inception of the GMCVB shares 60"/0
of its Resort Taxes it collects with the Bureau; and
WHEREAS, the GMCVB ha$ done on outstanding job under diffic;ult circumslallces lIS
the area wide destination sales and marketing arm for this community; and
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
GREATER MIAMI AND THE BEACHES HOTEL ASSOCIATION, that the City of
Miami Beach I1I1d any other interlocal partner not take any action reganlill,!l Ii change in
the formula 'that would impair the GMCVB's ability to provide the fullest sales and
marketing services for this destination.
THIS to "h day of September, 1995
f
....-
~Q"
...~....
HOrGreat.ru,ami&The...Ches
. 407 LINCC'i..~..J Rc,....o, SU!l.: 10GI Ml"'MJ BEt\CH. FLOIUOA, .Hl$Y
ELASS:X::;1Jij10N (:;0;)\)1-353.; i30C)SEF,.MIAMI '.8Cal\11.1;;) OOSi531.S9H FAX
SEP-21-199S 16:04 FROM GM&B HOTEL ASSOCIATION -
TO
6737'782 P.03
M
RESOLUTION
WHF.REAS, the Greater Miami and The Beachcs lIotel A5sociatioll ill an organization
whose mission is to unity our industl)' countywide and to provide, through education and
pl\,&U;livtl leadership, an eohanced visitor experience, thaI complements other efforts
currently designed to make Greater Miami a prune world wide deRtinllnon; and,
WHEREAS. the proposed re1oeation ofPalTot Jungle and Gardens to Willson Islan41s a
proj<<:t ill keeping with those objectives and as such is of great importance to this
association, to lht: Visitor Industry am:! to the community; and,
WHEREAS, this 59 year old community asset will become a contemporary, tropical
RhowcaS8 on Watson Island, creating new jobs and attracting lIUditiunal visitors; and,
WHEREAS, half of those visitors will be tourists extending their stay to enjoy this
premier attraction and thereby additionally benefiting the hmpitality industry and the tax
base of our community_
NOW THEREFORE BE IT RESOLvED that the GREATER MIAMI It THE
BEACHES HOTBL ASSOC1A'IlON enthusiastically supports the relocation of. Parrot
Jungle to Watson Island and urges a pORitive response from the City of Miami
Commission, all levels of government and from the citizens of the City of Miami and the
surrounding communities.
20 7~ DAY OF SEPTEMBER, 1995
Ri
393
t1QTp.ater Miami aThe Beaahes .
_ 407 L!NC'.JLN ROAD, :)ll!TE 10<.), MIAM! Bl::....c::I. FLORIDA 33139
. ~t~10N (:!05i5Jl.l\\.' (80~)SEF..MIAMI (SCOI,.'1-"S3 (.\O,)531-59S4 FAX
SEP-21-1995 16:04 FROM GM&B HOTEL ASSOCIRTION '
TO
6737782 P.04
M
RESOUITION
WHEREAS there is discussion taking place regarding an initiative to plar.e IIn additional
one percent (1 %) tax on hotels for the purpose of building a sports arena, and
WHEREAS there currently exists a three percent (3%) convention development tax
which was already used to build the existing sports arena and expand the largest
convention facility in Dade County and is still beillg collected. and
WHEREAS there ourrently o,osts a one percent (1%) prok5sional sporLs CaciliLy lIIX
being collected in Dade County, and
WHEREAS historically data indicates that RportR fadlities such as the one beins
discussed for Dade County do not generate significant tourism to Dade County nor do
they lletlerate signifiCClllt tourism donal~, 111111
NOW BE IT RESOLVED that the GREATER MIAMI & THE BEACHES HOtEL
ASSOCIATION through action takp.n by hs Board or Directon 011 Wednesday,
September 20, 1995, is opposed to any initiative that would place any additional tax on
hotels ror the purpose of building a new ~pul Ls arena in Dade County,
TED TIDS
1 t) '!f. DAY OF SEPTEMBER. 1995
394
Greater.'.mi&Th....ch.s
I In"ION 107 l...n~C'IL.~; Ro",:'), SLiIT! 10G, l\lIAMI BSA....:r-., f1.,-)KlIJ~ 3.'139
1"'\11 (05);)1')1\1 (800);;EE-MIA"l1 (AOO);J!'J,,] POI)))!-8954 fAX
.
TOTAL P.04