561-2008 RDA ResoRESOLUTION NO. 561-2008
A RESOLUTION OF THE CHAIRPERSON AND MEMBERS
OF THE MIAMI BEACH REDEVELOPMENT AGENCY
ADOPTING AND APPROPRIATING THE OPERATING
BUDGET FOR THE CITY CENTER REDEVELOPMENT AREA
AND THE ANCHOR SHOPS AND PARKING GARAGE FOR
FISCAL YEAR 2008/09
WHEREAS, the proposed City Center Redevelopment Area Budget has been
prepared to coincide with the overall City budget process; and
WHEREAS, the proposed City Center Redevelopment Area Budget reflects
anticipated construction project costs in addition to operating and debt service costs for the
fiscal year; and
WHEREAS, the proposed budget for the Anchor Shops and Parking Garage has
been included as a separate schedule to the City Center Redevelopment Area Budget,
reflecting projected revenues and operating expenses for the fiscal year; and
WHEREAS, the Executive Director recommends approval of the proposed Fiscal
Year 2008/09 budgets for the City Center Redevelopment Area as well as for the Anchor
Shops and Parking Garage; and
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRPERSON AND
MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, that the Chairperson of
Members hereby adopt and appropriates the operating budget for the City Center
Redevelopment Area and the Anchor Shops and Parking Garage for Fiscal Year 2008/09,
attached as Exhibit "A" hereto.
PASSED AND ADOPTED THIS SEPTEMBER 17T" DAY OF 2008.
CHAIRP SON
ATTEST:
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SECRETARY
Robert Parcher
Matti Herrera Bower
JMG:TH:kob
T:WGENDA\2008\sep1708\Regular\RDA BUDGET RESO 2008_09.doc
APPROVED AS TO
MIAMI BEACH REDEVELOPMENT AGENCY ITEM SUMMARY
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A Resolutionvof the Chairperson and Members of the Miami Beach Redevelopment Agency adopting and
appropriating the operating budget for the City Center Redevelopment Area and the Anchor Shops and Parking
Garage for Fiscal Year 2008/09.
Key Intended outcome Supportea:
Improve the City's overall financial health and maintain overall bond rating
upporting Data (Surveys, Environmental Scan, etc.):
One of the City's Key Intended Outcomes is to ensure well designed and well maintained capital projects and
infrastructure. In keeping with this goal, 60% or $23 Million of the proposed Budget for City Center is being
allocated towards new and on-going capital projects in the area as well as maintenance of capital projects funded by
the RDA. Additionally, according to the Hay Group Survey, 84% of the residents surveyed, rank the quality of capital
improvement projects as excellent/good. -
Issue:
Should the RDA Board adopt the proposed operating budget for the City Center Redevelopment Area and the
Anchor Shops and Parking Garage for Fiscal Year 2008/09?
Item Summa /Recommenaation:
The proposed budget for the City Center Redevelopment Area for Fiscal Year 2008/09 has been prepared to
coincide with the overall City budget process, and is being presented to assist in providing a comprehensive
overview of the district. It should be noted that historically, revenues and expenses associated with operations of the
Anchor Shops and Parking Garage were included as line items in the RDA Budget for approval. In order to
eliminate any perception that proceeds from the Facility's operations are pooled with TIF and other Trust Fund
revenues, they are being presented in a separate schedule to the Budget for approval. Also, pursuant to the
finalization of the FY 2006/07 tax roll by the County Tax Assessor, the proposed RDA Budget reflects the County's
anticipated adjustment (reduction) for overpayment of TIF during FY 2006/07, (totaling $1,111,989 for the City's
Share and $846,734 for the County's share), representing a total decrease in TIF revenues of $1,958,723. In order
to address the existing and future obligations of the Redevelopment Area, it is recommended that the
Redevelopment Agency adopt the attached Resolution which establishes the operating budget for the City Center
Redevelopment Area and the Anchor Shops and Parking Garage for FY 2008/09.
Board Recommendation:
Financial Infnrmatien'
Source of Amount Account Approved
Funds: ~ $39,003,741 City Center Redevelopment
Area Fund
2 $ 3,500,252 Anchor Shops and Parking
Gara e O erations
OBPI Total $42,503,993
Financial Impact Summary:
Ci Clerk's Office Le islative Trackin
Kent Bonde, Jose Cruz and Kathie Brooks
Redeveloerrtgnt Coordinator Assistant Director ~ Executive Director ~
7~Regu
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m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
REDEVELOPMENT AGENCY MEMORANDUM
TO: Chairperson and Members of the Miami Beach Redevelopment Agency
FROM: Jorge M. Gonzalez, Executive Director
DATE: September 17, 2008 \
SUBJECT: A RESOLUTION OF THE CHAIRPE ON AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY, ADOPTING AND APPROPRIATING THE
OPERATING BUDGETS FOR THE CITY CENTER REDEVELOPMENT AREA
AND THE ANCHOR SHOPS AND PARKING GARAGE FOR FISCAL YEAR
2008/09
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The proposed budget for the City Center Redevelopment Area (RDA) for Fiscal Year
2008/09 has been prepared to coincide with the overall City budget process, and is being
presented today to assist in providing a comprehensive overview of the district.
Following a period of extensive growth spanning the existence of City Center, the taxable
value in the Redevelopment Area is only anticipated to increase by 3.4% in FY 2008/09,
largely as a result of cooling market conditions and only one significant residential project
coming on line. Based on the proposed millage rates (City - 5.6555 mills/County - 4.8733
mills), the RDA anticipated receiving $34.1 Million in TIF revenues. However, on August 7,
2008, the City received correspondence from the County advising of the finalization of the
FY 2006/07 tax roll, reflecting a 5% decrease from the preliminary valuation for the same
year. Consequently, the County anticipates adjusting the FY 2008/09 TIF payment for
overpayment in FY 2006/07. (The City's TIF payment is anticipated to be reduced by
$1,111,989 and County's by $846,734, for a total reduction of $1,958,723).
Additional sources of revenue include an estimated $3.5 Million in Resort Tax contributions;
a'/z mill levy in the amount of $1.6 Million, to be set aside for the Children's Trust pursuant to
an Interlocal Agreement, dated August 16, 2004 between the RDA, the City of Miami Beach
and Miami-Dade County; and an estimated $1 ~3 Million in interest income.
Pursuant to the security (pledged funds) provisions in the 1998 series bond documents,
Administrative Expenses remain capped at $500,000, comprising a $414,000 management
fee which is allocated to the General Fund to pay for direct and indirect staff support for the
RDA and $86,000 for actual operating expenses. It should be noted that the Administrative
fee accounts for less than 2 percent of total expenditures.
Project-related expenses account for approximately $26.3 Million, comprising $3.2 Million to
be allocated for community policing initiatives in City Center to continue to provide enhanced
levels of staffing and services throughout the area and $2.7 Million for maintenance of RDA
capital projects.
September 17, 2008
Redevelopment Agency Memorandum
Operating Budget for City Center for FY 2008/09
Page 2 of 2
On-going and planned capital projects in City Center are projected to account for
approximately $20.3 Million in the FY 2008/09 Budget and generally include design and
construction of the City's share of improvements related to the New World Symphony
Project (Garage, and surrounding infrastructure components); construction of streetscapes
throughout City Center; construction of Collins Park, including the restoration of the
Rotunda; implementation of improvements to Lincoln Road, between Collins and
Washington Avenues; planning and design costs associated with the Botanical Garden; and,
an allocation to address remaining close-out requirements at the Colony Theater.
Additionally, the RDA continues to coordinate with CIP on planning, budgeting and
implementing infrastructure improvements throughout City Center.
The current combined debt service on the 2005 Series Bonds and the Parity Bonds
accounts for approximately $8.4 million annually. City Center also continues assuming debt
service payments on the portion of the Gulf Breeze Loan used to pay for the Bass Museum
expansion and renovation and the portion of the Sunshine State Loan Program used for
Lincoln Road improvements, which collectively account for approximately $1.7 Million. These
payments were previously made from water, sewer, storm water, gas and resort tax
proceeds.
Reserve line item expenditures include those items that, pursuant to the existing Bond
Covenants, may only be expended once the annual debt service obligations have been met.
These include the County and City's administrative fees and the remittance of the'/z mill tax
levy back to the Children's Trust.
It should be noted that historically, revenues and expenses associated with operations of the
Anchor Shops and Parking Garage were included as line items in the RDA Budget for
approval. In order to eliminate any perception that proceeds from the Facility's operations
were pooled with TIF and other Trust Fund revenues, they are presented in a separate
schedule for approval by the RDA Board. Garage revenues are projected at $2.6 Million,
with operating expenses, (including depreciation and contractual revenue-sharing
obligations with Loews), of $2.0 Million. The retail operation is expected to generate
$862,000 in revenues, comprising approximately $675,000 in actual rent proceeds (after
taxes) and approximately $187,000 in interest income on pooled cash. Operating expenses
associated with the retail management contract and related reimbursable expenditures is
estimated at approximately $63,000.
CONCLUSION
In order to address the existing and future obligations in the Redevelopment Area, it is
recommended that the Redevelopment Agency adopt the attached Resolution which
establishes the operating budgets for the City Center Redevelopment Area and the Anchor
Shops and Parking Garage for FY 2008/09.
JMG/TH/KB/KOB
T:\AGENDA\2008\sep 17\Regular\RDABudgetmemo2008_09.doc
Miami Beach Redevelopment Agency
City Center Redevelopment Area
Proposed FY 2008109 Operating Budget
Budget
08/30/2008 FY 07/08 FY 07108 FY 08109 Variance
Budget Projected Inc/(Dec) Budget From FY 07108
Revenues and Other Sources of Income
Tax Increment -City @ 5.6555 $17,690,977 $17,690,977 $0 $18,345,335 $654,358
Adjustment to City Increment for FY 2006 Tax Roll (1) (775,664) (472,472) 303,192 (1,111,989) (336,325)
Tax Increment- County @ 4.8733 14,326,704 14,325,453 (1,251) 15,808,032 1,481,328
Adjustment to County Increment for FY 2006 Tax Roll (1) (604,999) (368,517) 236,482 (846,734) (241,735)
50% Contribution from Resort Tax 3,205,500 3,250,000 44,500 3,505,500 300,000
'1/2 Mill Children's Trust Contribution (2) 1,564,051 1,564,051 (0) 1,621,902 57,851
Interest Income 2,000,000 1,980,000 (20,000) 1,294,773 (705,227)
Fund Balance Reallocation: (Non-TIF) 4,489,766 4,489,766 (0) 386,922 (4,102,844)
Fund Balance Reallocation: (TIF) 0 0 0 0 0
TOTAL REVENUES $41,896,335 $42,459,258 $562,923 $39,003,741 ($2,892,594)
Admin/Operating Expenses
Management fee $414,000 $414,000 $0 $414,000 $0
Advertising & promotion 1,000 1,000 0 1,000 0
Postage, printing & mailing 3,500 770 (2,730) 3,500 0
Office supplies & equipment 3,000 1,145 (1,855) 3,000 0
Meetings & conferences 4,000 4,000 0 4,000 0
Dues & subscriptions 1,000 1,101 101 1,000 0
Audit fees 8,500 8,500 0 8,500 0
Professional & related fees 55,000 59,484 4,484 55,000 0
Miscellaneous expenses 10,000 10,000 0 10,000 0
Total AdminlOperating Expenses $500,000 $500,000 $0 $500,000 $0
Project Expenses
Community Policing $2,993,417 $2,577,000 ($416,417) $3,262,158 $268,741
Capital Projects Maintenance (3) 2,195,000 2,195,000 0 2,730,856 535,856
Transfer to Capital Projects (4) 24,234,167 24,765,746 531,579 20,319,813 (3,914,354)
Total Project Expenses $29,422,584 $29,537,746 $115,162 $26,312,827 ($3,109,757)
Reserve and Debt Service Obligations
Debt Service Cost - 2005 + Parity Bonds $8,375,554 $8,375,554 $0 $8,374,697 ($857)
Current Debt Service -Lincoln Rd Project (5) 1,068,148 1,068,148 0 1,205,288 137,140
Current Debt Service -Bass Museum (6) 506,443 506,443 0 506,108 (335)
Reserve for County Admin Fee (7) 205,826 209,354 3,528 224,419 18,593
Reserve for CMB Admin Fee (8) 253,730 258,278 4,548 258,500 4,770
ReserveforChildren'sTrustContribution(9) 1,564,051 1,564,051 0 1,621,902 57,851
Repayment-Prior Yr advances from Non-TIF funds 0 439,684 439,684 0 0
Total Reserve and Debt Service Obligations $11,973,751 $12,421,512 $447,761 $12,190,914 $217,162
TOTAL EXPENSES AND OBLIGATIONS $41,896,335 $42,459,258 $562,923 $39,003,741 ($2,892,595)
NET $0 $0 $0 $0 $1
Note #1 Est. Adjustment for final FY 06/07 Tax Roll -per County Memorandum dated 08/04/08
Note #2 1/2 Mill Children's Trust pmt to RDA per Interlocal
Note #3 Separate detail for capital maintenance items from PW
Note #4 Reflects appropriations for CIP & PW projects
Note #5 Payment of Lincoln Road current debt service on Sunshine State Loan
Note #6 Payment of Bass Museum current debt service on Gulf Breeze Loan
Note #7 County admin fee @ 1.5% of County's increment revenue
Note #8 CMB Admin Fee @ 1.5% of City's increment revenue
Note #9 1/2 mill Children's Trust Contribution
Proposed FY 2008/09 Anchor Shops and Parking Garage (16th Street Parking Garage) Operating Budget
Budget
FY 07108 FY 07108 FY 08/09 Variance
Revenues: Budget (1) Projected Incl(Dec) Budget From FY 07108
Parking Operations $2,424,631 $2,637,917 $213,286 $2,637,917 $213,286
Retail Leasing 633,562 944,549 310,987 862,335 228,773
TOTAL REVENUES $3,058,193 $3,582,466 $524,273 $3,500,252 $442,059
Operating Expenses:
Parking Operations $1,826,174 $1,753,460 ($72,714) $1,705,306 ($120,868)
Garage Use Fee (To Loews) (2) 222,516 274,400 51,884 349,417 126,901
Retail Leasing Mgt Agreement 59,000 53,087 (5,913) 62,942 3,942
Reserve Future Capital -Parking Operations 375,941 610,057 234,116 583,194 207,253
Reserve Future Capital -Retail Operations 574,562 891,462 316,900 799,393 224,831
TOTAL EXPENSES $3,058,193 $3,582,466 $524,273 $3,500,252 $442,059
NET $0 $0 $0 $0 $0
(1) - FY 07/08 Retail Revenue budget didn't account for interest income on pooled cash
(2) -Based on 28% of annual gross parking revenuues in excess of $1,390,000. (Includes contingency amount)
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