604-2014 RDA Reso RESOLUTION NO. 6042014
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 2014/15.
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 Fiscal Year 2014/2015;
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 of the Miami Beach Redevelopment Agency
recommends approval of the proposed Fiscal Year 2014/15 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 appropriate 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
2014/15, as follows:
City Center Redevelopment Area $38,519,000
Anchor Garage Parking Operations $5,491,000
Anchor Garage Retail Operations $904,000
Pennsylvania Avenue Garage Parking Operations $1,041,000
Pennsylvania Avenue Garage Retail Operations $640,000
PASSED AND ADOPTED this day of September, 2014
ip Levin it arson
ATTEST.
C OR R ORATED APPROVED AS TO
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& FOR EXECUTION
Rafael E. Granado, Secre
KB:MAS city ttorney Date
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MIAMI BEACH REDEVELOPMENT 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 2014/15.
Key Intended Outcome Supported:
Enhance Beauty and Vibrancy of Urban And Residential Neighborhoods; Focusing on Cleanliness, Historic
Assets, In Select Neighborhoods And Redevelopment Areas.
Supporting Data(Surveys, Environmental Scan, etc.):
One out of ten residents(10%)feels the best way to improve the overall quality of life in Miami Beach is to increase
City beautification and cleanliness.
Item Summa /Recommendation:
The proposed budget for the City Center Redevelopment Area for Fiscal Year 2014/15 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.
Based on the 2014 Certification of Taxable Value from the Property Appraiser's Office,the preliminary value of property
in City Center is$4,186,683,074,an increase of 8.1%over 2013. 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 FY
2012/13, reflects a decrease from the preliminary valuation for the same year and will result in a corresponding
adjustment/reduction in TIF revenues totaling$2,447,000 for 2014/15,versus$168,000 for 2013/14 and$3.5 million for
2012/13. Additional sources of revenue include a '/z mill levy in the amount of$1.8 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 $25,000 in interest income. The total proposed FY 2014/15 City
Center Redevelopment Area Budget is$38,519,000.
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
2014/15.
Advisory Board Recommendation:
N.A.
Financial Information:
Source of Amount Account
Funds: 1 $38,519,000 City Center Redevelopment Area Fund
2 $ 6,395,000 Anchor Shops and Parking Garage Operations
r
3 $ 1,681,000 Pennsylvania Avenue Shops and Garage Operations
OBPI Total j $46,595,000
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Max Sklar, Georgette Daniels and John Woodruff
Sign-Offs:
RDA Budget Assistant Executive
Coordinator Director Direct RDA irector RDA
MAS J41)0k KGB Aj� JLM
T:\AGENDA\2014\September\Sept er 30\RDA Budget 2014_15 SUM.Ocf
AGENDA ITEM /14
MIA I B E
��.... SATE
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 MiamFah ed elopment Agency
FROM: Jimmy L. Morales, Executive Director
DATE: September 30, 2014
SUBJECT: A RESOLUTION OF THE CHAIRPER MEMBERS OF THE MIAMI BEACH
REDEVELOPMENT AGENCY, ADOPTAPPROPRIATING THE OPERATING
BUDGETS FOR THE CITY CENTER REDEVELOPMENT AREATHE ANCHOR SHOPS
AND PARKING GARAGE AND THE PENNSYLVANIA AVENUE SHOPS AND GARAGE
FOR FISCAL YEAR 2014/15.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The proposed budget for the City Center Redevelopment Area(RDA)for Fiscal Year 2014/15 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 Attachment A for the
proposed budget details.
Revenues
Based on the 2014 Certification of Taxable Value from the Property Appraiser's Office, the
preliminary value of property in City Center is $4,186,683,074 an increase of 8.1% over 2013,
marking the fourth year in a row values have increased; values seem to be back on the rise,
following two years of decline. 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 FY
2012/13, reflects a decrease from the preliminary valuation for the same year and will result in a
corresponding adjustment/reduction in TIF revenues totaling $2,447,000 for 2014/15, versus
$168,000 for 2013/14 and $3.5 million for 2012/13.
Additional sources of revenue include a Y2 mill levy in the amount of$1.8 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 $25,000 in interest income.
Expenditures
Project-related expenses account for approximately$10.3 million,which includes$4.5 million to be
allocated for community policing initiatives in the City Center to continue providing enhanced levels
of staffing and services throughout the area, and $5.7 million for maintenance of RDA capital
September 30, 2014
Redevelopment Agency Memorandum
Operating Budget for City tenter for FY 2014115
Page 2 of 2
projects.
Administrative Expenses total $1,403,000 comprising a management fee of $972,000 which is
allocated to the General Fund to pay for direct and indirect staff support for the RDA; $406,000 for
actual operating expenses; and $25,000 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 account
for less than four percent(3.7%) 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$8.5 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$1.3 million.
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 '/2 mill tax levy back to the Children's Trust.
In addition, the proposed budget includes $14,585,000 in funding towards the new debt service
anticipated for the remaining projects in the City Center Capital Plan,as well as for$274.3 million in
debt for the Convention Center Expansion and Renovation Project,consistent with the terms being
negotiated with Miami-Dade County. The remaining Capital Projects includes:
Bass Museum Interior Space Expansion $3,750,000
Convention Center.Lincoln Rd Connectors & 17th St
N. Improvement Penn Ave to Wash $12,000,000
Lincoln Rd/Washington Ave to Lenox Ave $20,000,000
The authorizing documents for the additional debt will be presented at a later date once the debt
structure has been finalized and negotiations with Miami-Dade County concluded.
The revenues and expenses associated with operations of the City Center area Shops and Garages
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$5.4 million,with operating
expenses,(including depreciation, contractual revenue-sharing obligations with Loews and general
fund administrative fees) of approximately $3 million, and an allocation of $2,069,000 for
construction on the Collins Park Garage. The Anchor retail operations is expected to generate
$886,000 in revenues, including interest, with operating expenses and depreciation totaling
$141,000,renewal & replacement projects totaling $650,000, as well as projected reserves of
$95,000.Additionally,$338,000 in transfers to the Pennsylvania Avenue Garage/Retail is budgeted
to offset the RDA's estimated costs associated with the retail and parking operations.
September 30, 2014
Redevelopment Agency Memorandum
Operating Budget for City Center for FY 2014115
Page 3 of 3
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 current-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 $1,343,000 in revenues in FY 2014/15, comprising $703,000 in
parking revenues and $640,000 in retail income. However, since the facility is still anticipated to
operate at a loss during FY 2014/15, the Anchor Garage/Retail plans to subsidize its operations
through a transfer of$338,000 to the parking operations. Expenses for the facility are budgeted at
$1.6 Million, comprising $1,041,000 in direct operating costs for the garage and $640,000 in lease
term-related obligations.
CONCLUSION
The proposed FY 2014/15 City Center Redevelopment Area Budget is $38,519,000. The Anchor
Garage & Shops is $6,395,000 and the Pennsylvania Avenue Garage & Shops is $1,681,000.
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 nd the Pennsylvania Avenue Shops and Garage for FY 2014/.15.
JLM/ /MS
Attachment
T:\AGENDA\2014\September\September 30\RDA Budget memo 2014_15.doc
Miami Beach Redevelopment Agency
City Center Redevelopment Area
Proposed FY 2014115 Operating Budget
Budgeted
FY11112 FY 2012/13 FY 2013114 FY 2014115 Variance
Actual Actual Adopted Proposed From FY 13114
Revenues and Other Sources of Income
Tax Increment-City $ 18,337,693 $ 19,188,399 $ 19,934,000 $ 21,691,000 $ 1,757,000
Proj Adjustment to City Increment (1,756,457) (1,870,542) (94,000) (1,381,000) (1,287,000)
Tax Increment-County 14,291,236 14,817,619 15,992,000 17,400,000 1,408,000
Proj Adjustment to County Increment (1,367,157) (1,633,395) (74,000) (1,066,000) (992,000)
50%Contribution from Resort Tax 4,925,168 5,546,756 5,386,000 - (5,386,000)
'1/2 Mill Children's Trust Contribution 1,481,004 1,570,405 1,831,000 1,850,000 19,000
Interest Income 8,278 27,925 25,000 25,000 -
Fund Balance Reallocation:(Non-TIF) - - - - -
Fund Balance Renewal and Replacement - - - - -
Other Income/Adjustments: 5,196 999,791 - - -
TOTAL REVENUES $ 35,924,961 $ 38,646,958 $ 43,000,000 $ 38,519,000 $ (4,481,000)
Admin/Operating Expenses
Management fee(salaries&benefits) $ 952,889 $ 976,000 $ 1,043,000 $ 972,000 $ (71,000)
Salaries and Benefits $59,601 46,614 155,000 - (155,000)
Advertising&promotion - - 50,000 50,000 -
Postage&mailing - - 3,000 1,000 (2,000)
Office supplies&equipment 2,269 1,563 4,000 2,000 (2,000)
Other Operating 753 1,000 1,000 -
Meetings&conferences - - 1,000 1,000 -
Dues&subscriptions 795 200 2,000 2,000 -
Licences&Taxes 128,729 - 60,000 60,000
Audit fees 20,260 20,500 21,000 23,000 2,000
Professional&related fees 175,373 529,447 629,000 213,000 (416,000)
Repairs and Maintenance 31,489 32,487 25,000 25,000 -
Intemal Services 33,938 108,143 27,000 53,000 26,000
Total Admin./Operating Expenses $ 1,276,614 $ 1,844,435 $ 1,961,000 $ 1,403,000 $ (558,000)
Project Expenses
Community Policing 168-1124 $ 3,411,726 $ 3,702,342 $ 4,195,000 $ 4,522,000 $ 327,000
Capital Projects Maintenance: - -
Code: 168-9963 - - - 174,000 174,000
Property Mgmt: 168-9964 1,013,473 1,061,027 1,176,000 1,392,000 216,000
Sanitation: 168-9965 2,560,468 2,536,108 3,020,000 3,061,000 41,000
Greenspace/Parks Maintenance: 168-996X 506,242 556,555 832,000 1,170,000 338,000
NWS Project/Lincoln Paris Complex Contingency - - - - -
NWS Project-Grant-in-Aid - - - - -
Transfer to Penn Garage Parking 48,801 225,055 305,000 - (305,000)
Transfer to Penn Garage Retail 347,112 - - - -
Transfer to Renewal and Replacement - 705,000 67,000 - (67,000)
Transfer to Capital Projects 13,541,301 14,238,000 18,443,000 - (18,443,000)
Total Project Expenses $ 21,429,123 $ 23,024,087 $ 28,038,000 $ 10,319,000 $ (17,719,000)
Reserves,Debt Service and Other Obligations
Debt Service Cost-2005+Parity Bonds $ 8,548,105 $ 8,524,081 $ 8,550,000 $ 8,432,000 $ (118,000)
City Debt Service-Lincoln Rd Project 1,103,366 785,000 825,000 832,000 7,000
City Debt Service-Bass Museum 502,746 503,000 547,000 548,000 1,000
Reserve for County Admin Fee 193,861 197,718 239,000 245,000 6,000
Reserve for CMB Contribution 248,719 260,774 283,000 305,000 22,000
Reserve for Children's Trust Contribution 1,481,004 1,570,405 1,831,000 1,850,000 19,000
Reserve-Prior Year Fund Balance/Future Capital Project: 1,451,823 - - - -
Repayment-Prior Yr Fund Balance - - 342,000 - (342,000)
Reserve Capital Projects/Debt Service/Contingency 384,000 14,585,000 14,201,000
Total Reserves,Debt Service and Other Obligations $ 13,529,624 $ 11,840,978 $ 13,001,000 $ 26,797,000 $ 13,796,000
TOTAL EXPENSES AND OBLIGATIONS $ 36,235,361 $ 36,709,500 $ 43,000,000 $ 38,519,000 $ (4,481,000)
REVENUES-EXPENSES $ (310,400) $ 1,937,458 $ - $ - $ -
15-City Center RDA 9/24/2014
Proposed FY 2014/15 Anchor Shops and Parking Garage Operating Budget
FY11/12 FY 2012/13 FY 2013/14 FY 2014/15 Variance
Revenues: Actual Actual Adopted Proposed From FY 13/14
Parking Operations $ 3,079,821 $ 3,365,518 $ 3,130,000 $ 3,518,000 $ 388,000
Parking Fund Balance - - 1,973,000 1,973,000
Retail Leasing 615,016 766,105 847,000 876,000 29,000
Interest Pooled Cash 13,897 33,480 18,000 28,000 10,000
TOTAL REVENUES $ 3,708,734 $ 4,165,103 $ 3,995,000 $ 6,395,000 $ 2,400,000
Operating Expenses:
Parking Operations $ 1,264,875 $ 2,062,965 $ 1,627,000 $ 1,689,000 $ 62,000
Garage Use Fee(To Loews) 440,241 570,038 507,000 591,000 84,000
Garage Repairs and Maintenance - 106,281 37,000 128,000 91,000
Garage Depreciation - - 451,000 470,000 19,000
Retail Leasing Property Management Fee&Operating 62,619 52,109 - 32,000 32,000
Retail Leasing Repair&Maintenance 32,000 25,000 (7,000)
Retail Internal Service Charges 66,109 35,232 19,000 19,000 -
Retail Operations Depreciation 55,396 55,396 55,000 55,000 -
Parking Operations Admin Fee to GF 196,740 223,000 224,000 224,000 -
Retail Leasing Admin Fee to GF - 14,000 10,000 10,000 -
Transfer to Renewal and Replacement - 220,000 650,000 430,000
Transfer to Capital Projects/RDA Garages - 2,407,000 2,407,000
Reserve for Future Capital-Parking Operations 223,962 - 72,000 - (72,000)
Reserve for Future Capital-Retail Operations - - 741,000 95,000 (646,000)
TOTAL EXPENSES $ 2,309,942 $ 3,133,021 $ 3,995,000 $ 6,395,000 $ 2,400,000
REVENUES-EXPENSES $ 1,398,792 $ 1,032,082 $ - $ -
Proposed FY 2014/15 Pennsylvania Ave Shops and Garage Operating Budget
FY11/12 FY 2012/13 FY 2013/14 FY 2014/15 Variance
Revenues: Actual Actual Adopted Proposed From FY 13/14
Parking Operations $ 618,961 $ 702,181 $ 656,000 $ 703,000 $ 47,000
Retail Leasing 147,123 371,640 550,000 640,000 90,000
Retail Transfer from RDA Operations 347,112 - - - -
Parking Transfer from RDA Operations 346,000 225,055 305,000 338,000 33,000
Interest Pooled Cash 492 1,206 - - -
TOTAL REVENUES $ 1,459,688 $ 1,300,082 $ 1,511,000 $ 1,681,000 $ 170,000
Operating Expenses:
Parking Operations Expenditures $ 723,029 $ 729,260 $ 822,000 $ 896,000 $ 74,000
Parking Admin/Base Fee 45,368 45,368 56,000 57,000 1,000
Garage Ground Lease 23,552 22,731 23,000 23,000 -
Parking Base Rent 23,552 22,731 23,000 23,000 -
Addt'I/Percentage Rent - - - - -
Garage Management Fee 47,604 53,302 60,000 65,000 5,000
Retail Additional Base Rent 15,592 2,970 136,000 229,000 93,000
Retail base Rent 276,448 277,269 229,000 205,000 (24,000)
Retail Admin Fee 11,137 - - -
Depreciation 11,851 11,851 - - -
Leasing Commissions&Operating 303,400 - - - -
Admin Fee(GF) 3,864 52,418 51,000 59,000 8,000
Retail Contingency - - 134,000 147,000 13,000
TOTAL EXPENSES $ 1,461,845 $ 1,183,318 $ 11511,000 $ 1,681,000 $ 170,000
REVENUES-EXPENSES $ (2,157) $ 116,764 $ - $ - $ -
15-City Center RDA 9/24/2014
I