578-2011 RDA Reso RESOLUTION NO. 578 - 2011
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 , THE ANCHOR SHOPS AND PARKING GARAGE
AND THE PENNSYLVANIA AVENUE SHOPS AND PARKING
GARAGE FOR FISCAL YEAR 2011/12
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 budgets for the Anchor Shops and Parking Garage and
the Pennsylvania Avenue Shops and Garage have been included as separate schedules 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 2011/12 budgets for the City Center Redevelopment Area, as well as for the Anchor
Shops and Parking Garage and the Pennsylvania Avenue Shops and Garage; and
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRPERSON AND
MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, that the Chairperson
and Members hereby adopt and appropriates the operating budget for the City Center
Redevelopment Area, the Anchor Shops and Parking Garage and the Pennsylvania
Avenue Shops and Garage for Fiscal Year 2011/12, attached as Exhibit "A" hereto.
PASSED AND ADOPTED THIS SEPTEMBER 27 DAY OF 2011.
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BEACH REDEVELOPMENT A
MIAMI AGENCY ITEM SUMMARY
Condensed Title:
A Resolution of the Chairperson and Members of the Miami Beach Redevelopment Agency adopting and appropriating
the operating budgets for the City Center Redevelopment Area, the Anchor Shops and Parking Garage and the
Pennsylvania Avenue Shops and Garage for Fiscal Year 2011/12.
Key Intended Outcome Supported:
Improve the City's overall financial health and maintain overall bond rating
Supporting 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, approximately 74 percent or $27.6 Million of the proposed Budget for City
Center is being allocated towards capital expenditures including new capital projects and renewal, maintenance and
replacement of existing RDA capital infrastructure.
Issue:
Should the RDA Board adopt the proposed operating budgets for the City Center Redevelopment Area, the Anchor
Shops and Parking Garage and the Pennsylvania Avenue Shops and Garage for Fiscal Year 2011/12?
Item Summary/Recommendation:
The proposed budget for the City Center Redevelopment Area for Fiscal Year 2011/12 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. Additionally, the revenues and expenses associated with the operations of the Anchor Shops and Parking
Garage as well as the Pennsylvania Avenue Shops and Garage are presented as separate schedules so as to
eliminate any perception that proceeds from the Facility's operations are pooled with TIF and other Trust Fund
revenues. Also, subject to the finalization of the FY 2009/10 tax roll by the County Tax Assessor, the proposed RDA
Budget includes an allowance for the County's anticipated adjustment (reduction) for overpayment of TIF during FY
2009/10 (estimated at $1.5 Million for the City's Share and $1.3 Million for the County's share), representing a total
decrease in TIF revenues of $2.8 Million. 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 budgets for the City Center Redevelopment Area, the Anchor Shops and Parking Garage and the
Pennsylvania Avenue Shops and Garage for FY 2011/12.
Advisory Board Recommendation:
N.A.
Financial Information:
Source of Amount Account
Funds: 1 $37,375,241 City Center Redevelopment Area Fund
2 $ 3,626,583 Anchor Shops and Parking Garage Operations
3 $ 1,210, 076 Pennsylvania Avenue Shops and Garage Operations
OBPI Total $42,211,900
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Kent Bonde, Laura Aker and Kathie Brooks
Sign -Offs:
RDA Budget Assistant Executive
_ rdinator Director A'r= tor RDA Director (RDA)
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MIAMI BEACH
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 27, 2011
SUBJECT: A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI BEACH
REDEVELOPMENT AGENCY, ADOPTING AND APPROPRIATING THE OPERATING
BUDGETS FOR THE CITY CENTER REDEVELOPMENT AREA THE ANCHOR SHOPS
AND PARKING GARAGE AND THE PENNSYLVANIAAVENUE SHOPS AND GARAGE
FOR FISCAL YEAR 2011/12.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The proposed budget for the City Center Redevelopment Area (RDA) for Fiscal Year 2011/12 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. Please refer to the attached Exhibit A
for the proposed budget details.
Revenues
Based on the 2011 Certificate of Taxable Value from the Property Appraiser's Office and following
two years of declining property values, the value of property in City Center is actually expected to
show a small, but welcomed, 0.5% increase over 2010. However, based on the County's proposed
reduction to its millage rate in 2011, the RDA anticipates a corresponding $1.8 Million decline in TIF
revenues. Based on the millage rates as proposed (City - 6.2155 mills /County — 4.805 mills), the
RDA anticipates receiving $32.8 Million in FY 2011/12. Additionally, as in previous years, the City
also anticipates receiving correspondence from the County advising of the finalization of the tax roll
for the prior year, which in the case of past two fiscal years, is anticipated to reflect a decrease from
the preliminary valuation for the same year. The proposed budget includes an estimated adjustment
of $1.5 Million to impact the City's share of TIF, and a $1.3 Million adjustment for the County's share.
Additional sources of revenue include an estimated $4.3 Million in Resort Tax contributions; a 1 /2 mill
levy in the amount of $1.5 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; an estimated $179,000 in interest income; and a fund balance recognition in the amount of
$1.4 Million to fund certain capital renewal and replacement projects scheduled in FY 2011/12.
September 27, 2011
Redevelopment Agency Memorandum
Operating Budget for City Center for FY 2011/12
Page 2 of 3
Expenditures
Project - related expenses account for approximately $21.7 Million, which includes $3.4 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 $4.3 Million for maintenance of RDA capital projects.
On -going and planned capital projects in City Center are projected to account for $13.5 Million in the
FY 2011/12 Budget, and generally include allocations for reimbursement of land acquisition costs
associated with the Collins Park garage project; plan development costs associated with the Collins
Park garage; ancillary improvements to Collins Park; capital renewal and replacement projects; and
certain smaller -scale capital improvements involving the Botanical Garden, Lincoln Road and the
Colony Theater. Additionally, $395,913 in transfers to the recently opened Pennsylvania Avenue
Shops and Garage are budgeted to offset the City's costs associated with the retail and parking
operations.
Administrative Expenses total $1.47 Million, comprising of a management fee of $1,010,901 which is
allocated to the General Fund to pay for direct and indirect staff support for the RDA; $70,544 for
actual operating expenses; $200,000 set aside for consulting work related to the Convention Center
expansion master plan; and $84,857 for capital renewal and replacement projects under $25,000. It
should be noted that the Management Fee allocation is reflective of actual city resources applied to
the operation of the RDA, as supported by the RSM McGladrey Cost Allocation Study, dated July 20,
2009. It should further be noted that Administrative and Operating expenses only account for less
than four percent (4 %) of the total budget, which is well below the 20% threshold level established
(and permitted) in the Interlocal Agreement between the City and the County.
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 $1.6 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's administrative fees, equivalent to 1.5% of its respective TIF payment; and the
corresponding contribution to the City's General Fund, equivalent to 1.5% of the City's share of its
TIF payment; and the remittance of the 1 /2 mill tax levy back to the Children's Trust. Additionally, with
the recent successful acquisition of the property for the Collins Park Garage, the RDA is setting
aside $2.3 Million towards the anticipated design and construction of the project.
The revenues and expenses associated with operations of the newly opened Pennsylvania Avenue
Shops and Garage and the Anchor Shops and Parking Garage are presented as separate
schedules in order to eliminate any perception that proceeds from the facilities' operations are
pooled with TIF and other Trust Fund revenues:
Anchor Shops and Parking Garage
Garage revenues at the Anchor Garage are projected at approximately $2.9 Million, with operating
expenses, (including depreciation, contractual revenue - sharing obligations with Loews and general
fund administrative fees), of approximately $2.4 Million and reserves of $0.5 Million. Anchor retail
operation is expected to generate $727,483 in revenues, including interest, with operating expenses
associated with the retail management contract, related reimbursable expenditures, and
management fee to the general fund estimated at approximately $113,330, as well as reserves of
September 27, 2011
Redevelopment Agency Memorandum
Operating Budget for City Center for FY 2011/12
Page 3 of 3
$614,153.
Pennsylvania Avenue Shops and Garage
In consideration of the fact that the Pennsylvania Avenue Shops and Garage was built by the RDA
on City -owned property, the 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 Retail 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 RDA. The
Retail operations also include base rent and an administrative fee, as well as a retail lease rate
based on 2010 retail market cap rates. The retail operations also include revenue sharing between
the City and the RDA.
Based on estimates of the garage's first -year operating results, and taking into consideration the
successful execution of a lease agreement with Penn 17, LLC., for the entire retail space, the
facility is anticipated to generate $814,163 in revenues in FY 2011/12, comprising $521,400 in
parking revenues and $292,763 in retail income. Since the facility is anticipated to operate at a loss
during its initial year, the RDA plans to subsidize its operations through a transfer of $48,801 to
parking operations and $347,112 to retail in FY 2011/12. Expenses for the facility are budgeted at
$1.2 Million, comprising $453,678 in direct operating costs for the garage; $419,701 in lease term -
related obligations; $326,697 in leasing commissions related to the new lease; and $10,000 in
contingency.
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, the Anchor Shops and Parking
Garage, and the Pennsylvania Avenue Shops and Garage for FY 2011/12.
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Miami Beach Redevelopment Agency
City Center Redevelopment Area
Proposed FY 2011/12 Operating Budget
EXHIBIT A
FY 08/09 FY 09/10 FY 10/11 FY11/12 Variance
Actual Actual Adopted Proposed FY12 -FY11
Revenues and Other Sources of Income
Tax Increment - City $ 18,345,335 $ 16,946,393 $ 18,377,816 $ 18,337,693 $ (40,123)
Proj Adjustment to City Increment $ (1,111,989) $ (1,178,873) $ (1,200,000) $ (1,326,883) $ (126,883)
Tax Increment - County $ 15,808,032 $ 14,496,500 $ 16,047,879 $ 14,291,236 $ (1,756,643)
Proj Adjustment to County Increment $ (961,565) $ (954,605) $ (1,000,000) $ (1,262,384) $ (262,384)
50% Contribution from Resort Tax $ 3,908,668 $ 3,460,000 $ 3,578,067 $ 4,298,477 $ 720,410
'1/2 Mill Children's Trust Contribution $ 1,366,290 $ 1,498,222 $ 1,225,249 $ 1,487,121 $ 261,872
Interest Income $ 56,626 $ 385,057 $ 200,000 $ 179,000 $ (21,000)
Fund Balance Renewal and Replacement $ - $ - $ 1,370,981 $ 1,370,981
Other Income /Adjustments: $ 1,344 $ - $ - $ - $ -
TOTAL REVENUES $ 37,412,741 $ 34,652,695 $ 37,229,011 $ 37,375,241 $ 146,230
Admin /Operating Expenses
Management fee (salaries & benefits) $ 464,775 $ 489,564 $ 988,563 $ 1,010,901 $ 22,338
Advertising & promotion $ - $ - $ - $ - $ -
Postage, printing & mailing $ 1,420 $ 4,120 $ 4,123 $ 4,123 $ -
Office supplies & equipment $ 2,941 $ 910 $ 2,900 $ 3,810 $ 910
Meetings & conferences $ 1,799 $ 1,350 $ 1,351 $ 1,351 $ -
Dues & subscriptions $ - $ 1,260 $ 1,260 $ 1,260 $ -
Audit fees $ - $ 9,000 $ 9,000 $ 9,000 $ -
Professional & related fees $ 57,157 $ 49,000 $ 47,000 $ 251,000 $ 204,000
Repairs and Maintenance $ - $ - $ - $ 84,857 $ 84,857
Miscellaneous expenses $ 4,223 $ 5,000 $ 5,000 $ 105,998 $ 100,998
Total Admin /Operating Expenses $ 532,315 $ 560,204 $ 1,059,197 $ 1,472,300 $ 413,103
Project Expenses
Community Policing $ 2,693,942 $ 2,453,667 $ 3,052,215 $ 3,413,695 $ 361,480
Capital Projects Maintenance $ 3,456,896 $ 3,249,076 $ 3,332,673 $ 4,345,588 $ 1,012,915
NWS Project/Lincoln Park Complex Contingency $ - $ - $ - $ - $ -
NWS Project - Grant -in -Aid $ - $ - $ 15,000,000 $ - $ (15,000,000)
Transfer to Penn Garage Parking $ - $ 48,801 $ 48,801
Transfer to Penn Garage Retail $ - $ 347,112 $ 347,112
Transfer to Capital /Renewal and Replacement $ 20,319,813 $ 13,170,050 $ 136,758 $ 13,541,301 $ 13,404,543
Total Project Expenses $ 26,470,651 $ 18,872,793 $ 21,521,646 $ 21,696,497 $ 174,851
Reserve and Debt Service Obligations
Debt Service Cost - 2005 + Parity Bonds $ 8,376,443 $ 8,393,267 $ 8,393,254 $ 8,393,816 $ 562
Current Debt Service - Lincoln Rd Project $ 1,205,288 $ 1,086,961 $ 1,094,176 $ 1,103,366 $ 9,190
Current Debt Service - Bass Museum $ 506,108 $ 506,531 $ 505,859 $ 502,746 $ (3,113)
Reserve for County Admin Fee $ 222,697 $ 203,128 $ 225,718 $ 195,433 $ (30,285)
Reserve for CMB Contribution $ 258,500 $ 160,949 $ 257,667 $ 255,162 $ (2,505)
Reserve for Children's Trust Contribution $ 1,366,290 $ 1,498,222 $ 1,225,249 $ 1,487,121 $ 261,872
Reserve for Collins Park Parking Garage $ - $ - $ - $ 2,268,800 $ 2,268,800
Repayment -Prior Yr Fund Balance $ - $ 3,234,307 $ 2,946,246 $ - $ (2,946,246)
Total Reserve and Debt Service $ 11,935,326 $ 15,083,366 $ 14,648,168 $ 14,206,444 $ (441,725)
TOTAL EXPENSES AND OBLIGATIONS $ 38,938,292 $ 34,516,362 $ 37,229,011 $ 37,375,241 $ 146,230
REVENUES - EXPENSES $ (1,525,551) $ 136,333 $ 0 $ 0 $ (0)
Proposed FY 2011/12 Anchor Shops and Parking Garage (16th Street Parking Garage) Operating Budget
FY 08/09 FY 09/10 FY 10/11 FY11/12 Variance
Revenues: Actual Actual Adopted Proposed FY12 -FY11
Parking Operations $ 2,566,337 $ 2,707,650 $ 2,368,000 $ 2,885,000 $ 517,000
Retail Leasing $ 752,437 $ 704,335 $ 714,150 $ 714,150 $ -
Interest Pooled Cash $ 46,076 $ 34,298 $ 39,216 27,433 (11,783)
TOTAL REVENUES $ 3,364,850 $ 3,446,283 $ 3,121,366 $ 3,626,583 $ 505,217
Operating Expenses:
Parking Operations $ 1,585,471 $ 1,866,663 $ 1,704,823 $ 1,773,125 $ 68,302
Garage Use Fee (To Loews) $ 321,102 $ 350,272 $ 281,288 $ 408,800 $ 127,512
Retail Leasing Property Management Fee $ 61,190 $ 60,631 $ 62,720 $ 62,720 $ -
Retail Internal Service Charges $ - $ - $ 32,713 $ 41,129 $ 8,416
Management Fee to General Fund $ - $ 158,129 $ 189,074 $ 206,221 $ 17,147
Reserve for Future Capital - Parking Operations $ 563,832 $ 332,586 $ 219,415 $ 520,435 $ 301,020
Reserve for Future Capital - Retail Operations $ 674,594 $ 612,851 $ 631,333 $ 614,153 $ (17,180)
TOTAL EXPENSES $ 3,206,189 $ 3,381,132 $ 3,121,366 $ 3,626,583 $ 505,217
REVENUES - EXPENSES $ 158,661 $ 65,151 $ - $ - $ -
Proposed FY 2011/12 Pennsylvania Ave Shops and Garage Operating Budget
FY 08/09 FY 09/10 FY 10/11 FY11/12 Variance
Revenues: Actual Actual Adopted Proposed FY12 -FY11
Parking Operations $ - $ - $ - $ 521,400 $ 521,400
Retail Leasing $ - $ - $ - $ 292,763 $ 292,763
Retail Transfer from RDA Operations $ 347,112 $ 347,112
Parking Transfer from RDA Operations $ - $ - $ - $ 48,801 $ 48,801
Interest Pooled Cash $ - $ - $ - $ - $ -
TOTAL REVENUES $ - $ - $ - $ 1,210,076 $ 1,210,076
Operating Expenses:
Parking Operations Expenditures $ - $ - $ - $ 453,678 $ 453,678
Parking Base Fee $ - $ - $ - $ 45,368 $ 45,368
Garage Ground Lease $ - $ - $ - $ 23,552 $ 23,552
Garage Management Fee $ 47,604 $ 47,604
Retail Ground Lease $ - $ - $ - $ 276,448 $ 276,448
Contingency $ - $ - $ - $ 10,000 $ 10,000
Leasing Commissions $ - $ - $ - $ 326,697 $ 326,697
Retail Management Fee $ - $ - $ - $ 26,729 $ 26,729
$ - $ - $ - $ - $ -
TOTAL EXPENSES $ - $ - $ - $ 1,210,076 $ 1,210,076
REVENUES - EXPENSES $ - $ - $ - $ - $ -
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