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628-2017-RDA-2RESOLUTION NO. 628 -2017 A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, APPROVING, IN SUBSTANTIAL FORM, A FOURTH AMENDMENT, BY AND AMONG THE CITY, MIAMI- DADE COUNTY (COUNTY) AND THE MIAMI BEACH REDEVELOPMENT AGENCY (RDA), TO THE NOVEMBER 16, 1993 INTERLOCAL COOPERATION AGREEMENT, AS AMENDED (THE " INTERLOCAL AGREEMENT "), RELATED TO THE CITY CENTER /HISTORIC CONVENTION CENTER VILLAGE REDEVELOPMENT AND REVITALIZATION AREA (CITY CENTER RDA); WITH SAID FOURTH AMENDMENT ATTACHED AS EXHIBIT "A" TO THE MEMORANDUM ACCOMPANYING THIS RESOLUTION; AND FURTHER AUTHORIZING THE CHAIRMAN AND SECRETARY TO EXECUTE THE FINAL FOURTH AMENDMENT, IN THE FORM APPROVED BY THE RDA GENERAL COUNSEL. WHEREAS, on March 30, 1993, the Miami -Dade County Board of County Commissioners (the "County Commission ") adopted Resolution No. R- 317 -93, approving, among other things, the City Center /Historic Convention Village Redevelopment and Revitalization Plan (the "Plan "), and delegating certain powers conferred on the County Commission by Part III, Chapter 163, Florida Statutes (the "Act "), to implement the Plan to the Mayor and City Commission of the City of Miami Beach (the "City Commission "), all for the project area commonly called "City Center /Historic Convention Village Redevelopment and Revitalization Area" (such Area previously referred to in the Interlocal Agreement described below, as the "Project" and herein referred to as the "Redevelopment Area "); and WHEREAS, the County Commission also enacted Ordinance No. 93 -28 on April 27, 1993, which among other things, established a trust fund ( "Fund" or "Trust Fund ") to fund improvements in the Redevelopment Area; and WHEREAS, the County and the City also approved and entered into the Interlocal Cooperation Agreement, executed on November 16, 1993 (as amended by the First Amendment (defined below), by the Second Amendment (defined below), and by the Third Amendment (defined below) (the "Interlocal Agreement "), by which the County delegated to the City certain redevelopment powers granted by the Act, including but not limited to the creation of the Redevelopment Area and implementation of the Plan; and WHEREAS, the County and the City adopted Resolution No. R- 889 -03 and Resolution No. 2003 - 2537, respectively, approving an amendment to the Plan to incorporate the development and implementation of community policing initiatives; and WHEREAS, the County Commission, through Resolution No. R- 889 -03, and the City Commission, through Resolution No. 2003 - 25241, also approved an amendment to the Interlocal Agreement ( "First Amendment ") to delegate to the City the power to implement the community policing initiatives; and WHEREAS, the County Commission, through Resolution No. R- 958 -05, and the City Commission, through Resolution No. 2004 - 25560, also approved a second amendment to the Interlocal Agreement ( "Second Amendment ") whereby (i) the County, City, and Agency agreed that the Agency would remit one and one -half percent (1.5 %) of the Tax Increment Revenue paid to the Agency for said fiscal year to the County to defray administrative costs for oversight and processing Agency related items, after debt service and all other obligations related to the bonds or future indebtedness issued by the Agency and approved by the County was satisfied for the fiscal year, and (ii) the County approved the Agency's issuance of refunding bonds in an amount not to exceed a principal amount of $101,090,000.00 to refinance all or a portion of the outstanding principal amount of bonds issued with respect to the Redevelopment Area; and WHEREAS, the County Commission, through Resolution No. R- 1110 -14, and the City Commission, through Resolution No. 2014 - 28835, also approved a third amendment to the Interlocal Agreement ('Third Amendment "), which, among other terms, extended the life of the Agency to March 31, 2044, authorized the issuance of tax increment revenue bonds ( "RDA Bonds ") to support the Convention Center Renovation and Expansion Project (the "Convention Center Project "), and further provided for related payment terms, with the intent that all available excess Trust Fund revenues remaining on deposit in the Trust Fund be used for the prepayment or redemption of debt prior to maturity of the RDA Bonds, with such prepayment or redemption of debt commencing in FY 2023 -2024; and WHEREAS, after distribution of Tax Increment Revenues in the order, priority, and amounts required by this Interlocal Agreement, the available revenues remaining on deposit in the Trust Fund, as of the Agency's year -end for FY2016/17, are estimated to be at approximately $34,000,000; and WHEREAS, the City has incurred certain additional costs in connection with the Convention Center Project, including expenses resulting from Hurricane Irma, among other unforeseen circumstances, and has requested that $6,914,221 of the excess Trust Fund revenues be allocated to the Convention Center Project; and WHEREAS, as the excess Trust Fund revenues are far in excess of what the City and County previously anticipated, the County and the City have proposed that, after disbursement of the $6,914,221 to the City for the Convention Center Project, fifty percent (50 %) of the revenues remaining on deposit in the Trust Fund, be disbursed to the City and the County, in the same proportion as each contributed to the Trust Fund, and further propose that, commencing in FY2017 -2018, and each year thereafter, seventy -five percent (75 %) of the current fiscal year's projected excess revenues be annually distributed to the City and the County, in the same proportion as each contributed to the Trust Fund, and with all remaining excess Trust Fund revenues to be used for the early prepayment of debt, as originally contemplated in the Third Amendment to the Interlocal Agreement; and WHEREAS, the foregoing is set forth in the proposed Fourth Amendment to the Interlocal Agreement ( "Fourth Amendment "), attached as an exhibit to the Commission Memorandum accompanying this Resolution; and WHEREAS, upon approval by the Agency and the City, respectively, the Fourth Amendment to the Interlocal Agreement will be transmitted to the County, for consideration and approval by the Board of County Commissioners. NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, that the Chairman and Members hereby approve and authorize the Chairman and Secretary to execute, in substantial form, a Fourth Amendment, by and among the City, Miami -Dade County (County) And the Miami Beach Redevelopment Agency (RDA), to the November 16, 1993 Interlocal Cooperation Agreement, as amended (the "Interlocal Agreement "), related to the City Center /Historic Convention Center Village Redevelopment and Revitalization Area (City Center RDA); with said Fourth Amendment attached as Exhibit "A" to the Commission Memorandum accompanying this Resolution; and further authorize the Chairman and Secretary to execute the final Fourth Amendment, in a form approved by the RDA General Counsel. PASSED and ADOPTED this 1,3 day of December, 2017. ATTEST: Z a l RAFAEL E. GRANAD SECRETARY , °'` 10,14gl 1 \ 4 DAN GELBER CHAIRMAN APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION S L‘ Redevelopme t gency Date General Counsel R' MIAMI BEACH Redevelopment Agency - RDA 2. COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: December 13, 2017 SUBJECT: A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, APPROVING, IN SUBSTANTIAL FORM, A FOURTH AMENDMENT, BY AND AMONG THE CITY, MIAMI -DADE COUNTY (COUNTY) AND THE MIAMI BEACH REDEVELOPMENT AGENCY (RDA), TO THE NOVEMBER 16, 1993 INTERLOCAL COOPERATION AGREEMENT, AS AMENDED (THE "INTERLOCAL AGREEMENT "), RELATED TO THE CITY CENTER /HISTORIC CONVENTION CENTER VILLAGE REDEVELOPMENT AND REVITALIZATION AREA (CITY CENTER RDA); WITH SAID FOURTH AMENDMENT ATTACHED AS EXHIBIT "A" TO THE MEMORANDUM ACCOMPANYING THIS RESOLUTION; AND FURTHER AUTHORIZING THE CHAIRMAN AND SECRETARY TO EXECUTE THE FINAL FOURTH AMENDMENT, IN THE FORM APPROVED BY THE RDA GENERAL COUNSEL. JOINT CITY COMMISSION AND REDEVELOPMENT AGENCY RECOMMENDATION Approve the fourth amendment to the Miami Beach Redevelopment Agency Interlocal Agreement which includes the following: 1. Of the approximately $34 million in revenues remaining on deposit in the Trust Fund as of the Agency's year -end for FY2016/17, the Agency shall disburse $6,914,221.00 to the City, for the limited purpose of funding a portion of the additional construction, delay and repair costs for the Convention Center Project arising from Hurricane Irma and the rain bomb in August. 2. After disbursement of $6,914,221.00 to the City, for the Convention Center Project, the Agency shall disburse to each taxing authority, by March 31, 2018, the total of 50% of the revenues remaining on deposit in the Trust Fund, in the proportionate manner as it was deposited. It is estimated that this would generate $7.6 million to the City in FY 2017/18. 3. In addition, beginning FY2017 -18, the Agency shall annually disburse to each taxing authority, by March 31 of each year, the total of 75% of the current fiscal year's projected excess revenues to be deposited in the Trust Fund, if any, in the proportionate manner as it was deposited. It is estimated that this would generate $5.9 million to the City in FY 2017/18, which would grow each year proportionate to property tax values in the RDA. We also recommend a referral to the Finance and Citywide Projects Committee of a discussion of the recommended usage of the additional $13.5 million General Fund revenues estimated to be generated through this agreement for FY 2017/18, and the $5.9 million annually thereafter until the Page 1281 of 1320 expiration of the agreement. Background On January 26,1993, Miami -Dade County (the County) adopted Resolution No.R- 14 -93, which among other things (i)found the area of Miami Beach (the "City ") bounded on the East by the Atlantic Ocean, on the North by 241h Street, on the West by West Avenue, and on the South by 14th Lane (the "City Center Redevelopment Area" or "Redevelopment Area ") to be a "blighted area" within the meaning of Part III of Chapter 163, Florida Statutes, and (ii) delegated to the City of Miami Beach, pursuant to Section 163.410, Florida Statutes, certain powers conferred upon the County Commission as the governing body of Dade County by Part 111 of Chapter 163, Florida Statutes, with regard to the Redevelopment Area, so that the City Commission, either directly or through its duly designated community redevelopment agency, could exercise such powers. On February 3, 1993, the City adopted Resolution No. 93- 20709, which established a community redevelopment agency (the "Miami Beach Redevelopment Agency" or the "Agency "), and declared the members of the City Commission as the members of the Agency. Subsequently, on February 12, 1993, the City adopted Resolution No. 93- 20721, which adopted the Agency's City Center /Historic Convention Village Redevelopment and Revitalization Area Plan (the "Plan ") for the redevelopment and revitalization of the Redevelopment Area. The County and the City then approved and entered into the Interlocal Cooperation Agreement, executed on November 16, 1993 (as amended by the First, Second and Third Amendments defined below, the "Interlocal Agreement "), by which the County delegated to the City certain redevelopment powers granted by the Act, including but not limited to the creation of the Redevelopment Area and implementation of the Plan. The 332 -acre City Center /Historic Convention Village Redevelopment and Revitalization Area (City Center RDA) established in 1993, provided the funding mechanism to foster the development of new convention hotel development (ultimately the Loews 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. The Board of Miami -Dade County Commissioners (the Board), through Resolution No. R- 889 -03, and the City Commission, through Resolution No. 2003 - 25241, also approved an amendment to the Interlocal Agreement ( "First Amendment ") to delegate to the City the power to implement the community policing initiatives. The Board, through Resolution No. R- 958 -04, and the City Commission, through Resolution No. 2004 - 25560, also approved a second amendment to the Interlocal Agreement ( "Second Amendment ") whereby (1) the. County, City, and Agency agreed that the Agency would remit one and one -half percent (1.5 %) of the Tax Increment Revenue paid to the Agency for said fiscal year to the County to defray administrative costs for oversight and processing Agency related items, after debt service and all other obligations related to the bonds or future indebtedness issued by the Agency and approved by the County was satisfied for the fiscal year, and (ii) the County approved the Agency's issuance of refunding bonds in an amount not to exceed a principal amount of $101,090,000.00 to refinance all or a portion of the outstanding principal amount of bonds issued with respect to the Redevelopment Area. The Board, through Resolution No. R- 512 -14, and the City Commission, through Resolution No. 2014- 28835, also approved an amendment to the Redevelopment Plan and Interlocal Agreement ( "Third Amendment ") to provide a share of funding for the Miami Beach Convention Center (Convention Center) Renovation and Expansion Project: Page 1282 of 1320 i. amended the Plan to include the Convention Center Renovation and Expansion Project: ii. amended the Interlocal Agreement to, among other things, extend the life of the Redevelopment Area to March 31 ,2044; iii. authorized the issuance of tax increment revenue bonds in one or more series by the RDA in an amount not to exceed $430,000,000 for purposes of refunding current outstanding debt, funding eligible community redevelopment project costs, including the Convention Center Renovation and Expansion Project, and any reserves and costs of issuance; iv. provided for an ongoing adequate operating and maintenance subsidy for the Miami Beach Convention Center, in addition to the existing $4.5 million per year and annual year -end revenue sharing that the City currently receives from Convention Development Taxes through 2048; v. provided for ongoing funding of City operations in the RDA; vi. established that from FY 2014 -15 through FY 2021 -22, any funding not used for debt service and operating expenses will go into a fund to be used for shortfalls and eventually prepayment of debt; vii. established that from FY 2022 -23 until FY 2043 -44, the County will receive a refund of City Center Agency operating expenses based on its proportion of revenues contributed to the Trust Fund; and viii. any remaining funding will be used to extinguish debt early. With respect to the prepayment of debt, although the County extended the life of the RDA to March 31, 2044, the City and the County anticipated that the RDA Bonds would be repaid well before March 31, 2044. In January, 2015, when we entered into the Interlocal Agreement, the City estimated that the RDA bonds would be paid off by Fiscal Year (FY) 2036/37 (based on growth rates between 3.5% and 5 %). Assuming a similar rate of growth, the City currently estimates that the RDA Bonds may be paid off as early as FY 2026/27, as actual growth rates since we entered into the Interlocal Agreement have averaged approximately 10 %. To this end, the year -end audited fund balance for excess RDA trust fund revenues in FY 2015/16 was $19.5 million. Pending our year -end close -out for FY 2016/17, we estimate that the balance of excess RDA trust fund revenues will be approximately $34 million. ANALYSIS The construction schedule for the Convention Center Renovation and Expansion Project was structured in a manner to ensure that all four exhibit halls would be open for each Art Basel Miami Beach (ABMB) annual show, including spaces needed for VIP lounge areas, storage areas, back of house operations, etc. Each year, ABMB has the economic impact equivalent of a Super Bowl held in Miami -Dade County. This was successfully achieved for the 2016 show with the use of newly renovated space on the east side of the convention center in concert with the halls on the west side which had not yet been renovated. Immediately following the 2016 ABMB show, the City closed the Center for five (5) months and began work on the west side of the building on a schedule that would allow the west side to be substantially completed in time for the 2017 ABMB show with the exception of some second floor areas, the parking deck and the park. In accordance with the planned schedule, the City re- opened the east side in June, 2017 beginning with the e -Merge show, and was on track for the west side opening for ABMB 2017. Unfortunately, the unusual rain event we had in August, 2017 (referred to as a "rain bomb" event) followed by the impacts of Hurricane Irma, impacted the facility and created delays which severely Page 1283 of 1320 challenge our ability to deliver the facility at the level required by ABMB and have created costs impacts. Some of these costs ultimately may be covered by Builder's Risk insurance, through the CM at Risk contract, or through reimbursement from the Federal Emergency Management Agency (FEMA). However, there are costs related to the delays caused by Hurricane Irma that are unlikely to be reimbursed. In delays alone, Hurricane Irma has a direct impact of at least 3 weeks on the Convention Center construction including one (1) week of storm preparation and demobilization, one (1) week of storm clean -up, loss of power and additional delays due to a, widely displaced workforce returning to work two to three weeks after the storm. Also significant was the impact of Hurricane Irma on the work being performed by FPL on the electrical upgrades needed for the renovated Convention Center. A summary of the costs impacts of both the August 2017 "Rain Bomb" and Hurricane Irma is attached In light of the $34 million balance of excess RDA trust fund revenues estimated to be available as of FY 2016/17 year -end, and the City's critical needs to address significant unforeseen costs related to the Convention Center Project, the City and the County have negotiated the terms for a fourth amendment to the Interlocal Agreement. In addition to the Convention Center needs, those discussions also included the excess funding now generated annually by the RDA, far in excess of what had been anticipated. As a result of these discussions, a fourth amendment to the Interlocal Agreement is recommended, which includes the following: 1. Of the approximately $34 million in revenues remaining on deposit in the Trust Fund as of the Agency's year -end for FY2016/17, the Agency shall disburse $6,914,221.00 to the City, for the limited purpose of funding a portion of the construction costs for the Convention Center Project. 2. After disbursement of $6,914,221.00 to the City, for the Convention Center Project, the Agency shall disburse to each taxing authority, by March 31, 2018, the total of 50% of the revenues remaining on deposit in the Trust Fund, in the proportionate manner as it was deposited. It is estimated that this would generate $7.6 million to the City in FY 2017/18. 3. In addition, beginning FY 2017/18the Agency shall annually disburse to each taxing authority, by March 31 of each year, the total of 75% of the current fiscal year's projected excess revenues to be deposited in the Trust Fund, if any, in the proportionate manner as it was deposited. It is estimated that this would generate $5.9 million to the City in FY 2017/18, which would grow each year proportionate to property tax values in the RDA. Assuming the same growth rates between 3.5% and 5%, and with the changes proposed in the fourth amendment, the City estimates that the RDA Bonds may be paid off as early as FY 2038/39, close to the projection at the time of the original issuance. The administration is further recommending that the additional $13.5 million General Fund revenues estimated to be generated through this amendment for FY 2017/18, and the $5.9 million annually thereafter until the expiration of the agreement, be referred to the Finance and Citywide Projects Committee for recommended usage of the funds. CONCLUSION Page 1284 of 1320 Legislative Tracking Tourism, Culture and Economic Development ATTACHMENTS: Description 4th Amendmentto RDA nterlocal Agreement o Resolution Page 1285 of 1320 FOURTH AMENDMENT TO THE INTERLOCAL COOPERATION AGREEMENT This Fourth Amendment to the Interlocal Agreement ( "Fourth Amendment "), made this day of , 2018 ( "Effective Date "), by and among Miami -Dade County, a political subdivision of the State of Florida (hereinafter referred to as the "County"), the City of Miami Beach, a municipal corporation under the laws of the State of Florida (hereinafter referred to as the "City "), and the Miami Beach Redevelopment Agency, a public agency and body corporate created pursuant to Section 163.357, Florida Statutes (hereinafter referred to as the "Agency"). WHEREAS, the Miami -Dade County Board of County Commissioners (the "Board ") adopted Resolution No. R- 317 -93 on March 30, 1993, approving, among other things, the City Center /Historic Convention Village Redevelopment and Revitalization Plan (the "Plan ") and delegated certain powers conferred on the Board by Part III, Chapter 163, Florida Statutes (the "Act "), to implement the Plan to the Mayor and City Commission of the City of Miami Beach (the "City Commission "), all for the project area commonly called "City Center /Historic Convention Village Redevelopment and Revitalization Area" (such Area previously referred to in the Interlocal Agreement described below, as the "Project" and herein referred to as the "Redevelopment Area "); and WHEREAS, the Board also enacted Ordinance No. 93 -28 on April 27, 1993, which among other things, established a trust fund ( "Fund" or "Trust Fund ") to fund improvements in the Redevelopment Area; and WHEREAS, the County and the City also approved and entered into the Interlocal Cooperation Agreement, executed on November 16, 1993 (as amended by the First Amendment 1 (defined below), by the Second Amendment (defined below), and by the Third Amendment (defined below) (the "Interlocal Agreement "), by which the County delegated to the City certain redevelopment powers granted by the Act, including but not limited to the creation of the Redevelopment Area and implementation of the Plan; and WHEREAS, the County and the City adopted Resolution No. R- 889 -03 and Resolution No. 2003 -2537, respectively, approving an amendment to the Plan to incorporate the development and implementation of community policing initiatives; and WHEREAS, the Board, through Resolution No. R-889-03, and the City Commission, through Resolution No. 2003 - 25241, also approved an amendment to the Interlocal Agreement ( "First Amendment ") to delegate to the City the power to implement the community policing initiatives; and WHEREAS, the Board, through Resolution No. R- 958 -05, and the City Commission, through Resolution No. 2004 - 25560, also approved a second amendment to the Interlocal Agreement ( "Second Amendment ") whereby (i) the County, City, and Agency agreed that the Agency would remit one and one -half percent (1.5 %) of the Tax Increment Revenue paid to the Agency for said fiscal year to the County to defray administrative costs for oversight and processing Agency related items, after debt service and all other obligations related to the bonds or future indebtedness issued by the Agency and approved by the County was satisfied for the fiscal year, and (ii) the County approved the Agency's issuance of refunding bonds in an amount not to exceed a principal amount of $101,090,000.00 to refinance all or a portion of the outstanding principal amount of bonds issued with respect to the Redevelopment Area; and WHEREAS, the Board, through Resolution No. R- 1110 -14, and the City Commission, through Resolution No. 2014 - 28835, also approved a third amendment to the Interlocal Agreement 2 ( "Third Amendment "), which, among other terms, extended the life of the Agency to March 31, 2044, authorized the issuance of tax increment revenue bonds ("RDA Bonds ") to support the Convention Center Renovation and Expansion Project (the "Convention Center Project "), and further provided for related payment terms, with the intent that all available excess Trust Fund revenues remaining on deposit in the Trust Fund be used for the prepayment or redemption of debt prior to maturity of the RDA Bonds, with such prepayment or redemption of debt commencing in FY 2023 -2024; and WHEREAS, after distribution of Tax Increment Revenues in the order, priority, and amounts required by this Interlocal Agreement, the available revenues remaining on deposit in the Trust Fund, as of the Agency's year -end for FY2016/17, are estimated to be at approximately $34,000,000; and WHEREAS, the City has incurred certain additional costs in connection with the Convention Center Project, including expenses resulting from Hurricane Irma, among other unforeseen circumstances, and has requested that a portion of the excess Trust Fund revenues be allocated to the Convention Center Project, NOW, THEREFORE, for and in consideration of the premises and the mutual covenants recorded herein, the County, the City and the Agency agree as follows: A. The recitations set forth above are true and correct and adopted as part of this Fourth Amendment. B. Paragraph XII, "Distribution of Trust Fund Revenues," sub - paragraph "H," of the Interlocal Agreement, is hereby amended to read as follows: H. Beginning FY 2014 -15 and ending on the earlier of March 31, 2023, or the termination or expiration of the taxing authorities' obligation to appropriate Tax Increment Revenue to the Trust Fund, the Agency shall, within ninety 3 (90) days from the conclusion of each fiscal year, deposit any unencumbered amounts on deposit in the Trust Fund and all available revenues remaining after distribution of "Tax Increment Revenues in the order, priority and amounts set forth in Sections A through G above, into a fund to be used for the purposes of financing any shortfalls associated with the payment of the expenses as listed in Section F above. Such deposits to such fund shall only be made if it will not negatively affect the exclusion from gross income, for federal income tax purposes, of interest on any tax - exempt Agency Indebtedness. The funds in the Trust Fund shall be disbursed as follows: 1. Of the approximately $34 million in revenues remaining on deposit in the Trust Fund as of the Agency's year. -end for FY2016 /17, the Agency shall disburse $6,914,221.00 to the City, for the limited purpose of funding a portion of the construction costs for the Convention Center Project. 2. After disbursement to the City pursuant to Section H.1 above, the Agency shall disburse to each taxing authority, by March 31, 2018, the total of 50% o of the revenues remaining on deposit in the Trust Fund, in the proportionate manner as it was deposited. 3. Beginning FY2017 -18, after disbursement as set forth in Sections A through G above, the Agency shall annually disburse to each taxing authority, by March 31 of each year, the total. of 75% of the current fiscal year's projected excess revenues to be deposited in the Trust Fund, if any, in the proportionate manner as it was deposited. All other remaining revenues in the Trust Fund will be used to extinguish Agency Indebtedness early, but not prior to FY 2023 -24, to the extent such Agency Indebtedness is subject to prepayment or redemption prior to maturity at such time or, if such Agency Indebtedness is not then subject to prepayment or redemption prior to maturity, to establish an escrow for the prepayment or redemption prior to maturity of such Agency Indebtedness at such time as the Agency Indebtedness is subject to prepayment or redemption prior to maturity; provided, however, that such escrow shall only be established if it will not negatively affect the exclusion from gross income, for federal tax purposes, of interest on any such tax - exempt Agency Indebtedness. The City and the Agency agree not to issue Capital Appreciation Bonds or similar debt that does not pay interest on a current basis. The City and the Agency also agree that any Agency Indebtedness pledging Tax Increment Revenues issued for the purposes set forth herein shall include a call provision allowing such Agency Indebtedness to be called no later than ten (10) years after initial issuance. If the Agency Indebtedness is not subject to repayment or redemption prior to maturity, and an escrow cannot be established, then the Agency shall distribute annually any revenues remaining on deposit in the Fund after distribution as set forth in Sections A through H of this Paragraph XII, to the taxing authorities in the proportionate manner as it was deposited. C. Paragraph XII, "Distribution of Trust Fund Revenues," sub-paragraph "I," of the Interlocal Agreement, is hereby amended to read as follows: Beginning FY 2023 -24, and ending 011 the earlier of March 31, 2044, or the termination or expiration of the taxing authorities' obligation to appropriate Tax Increment Revenues to the Fund, the Agency shall, annually disburse to each taxing authority, by March 31 of each year, the total of 75% of the current fiscal year's projected excess revenues to be deposited in the Trust Fund, if any, in the proportionate manner as it was deposited. The Agency shall use any unencumbered amounts on deposit in the Trust Fund and all available revenues remaining after distribution of Tax Increment Revenues in the order, priority and amounts set forth in Sections A through I of this Paragraph XII to extinguish Agency Indebtedness early, to the extent such Agency Indebtedness is subject to prepayment or redemption prior to maturity at such time or, if such Agency Indebtedness is not then subject to prepayment or redemption prior to maturity, to establish an escrow for the prepayment or redemption prior to maturity of such Agency Indebtedness, at such time as the Agency Indebtedness is subject to prepayment or redemption prior to maturity; provided, however, that such escrow shall only be established if it will not negatively affect the exclusion from gross income, for federal tax purposes, of interest on any such tax - exempt Agency Indebtedness. The City and. the Agency agree not to issue Capital Appreciation Bonds or similar debt that does not pay interest on a current basis. The City and the Agency also agree that any Agency Indebtedness pledging Tax Increment Revenues issued for the purposes set forth herein shall include a call provision allowing such Agency Indebtedness to be called no later than ten (10) years after initial issuance. If the Agency Indebtedness is not subject to prepayment or redemption prior to maturity, and an escrow cannot be established, then the Agency shall distribute annually any Tax Increment Revenues remaining on deposit in the Fund after distribution as set forth in Sections A through I of this Paragraph XII to the taxing authorities in the proportionate manner as it was deposited. D. All provisions of the Interlocal Agreement, other than the provisions specifically amended herein, remain in full force and effect. [SIGNATURES APPEAR ON THE FOLLOWING PAGE] 5 IN WITNESS WHEREOF, the parties have executed this Third Amendment as of the date first written above. CITY OF MIAMI BEACH By: Dan Gelber Mayor MIAMI-DADE COUNTY By: Carlos A. Gimenez Mayor ATTEST By: Deputy Clerk MIAMI BEACH REDEVELOPMENT Approved for form and legal sufficiency AGENCY By: an Gelber Chairman City Clerk By: Assistant County Attorney Approved for form and legal sufficiency B ..A City Attorney 6 Agenda Item RDA —2. Date Mc.);�- SUMMARY OF HURRICANE IRMA & AUGUST 2017 RAIN BOMB CONVENTION CENTER CONSTRUCTION IMPACTS Hurricane Irma Damages: Item Description 1 Site Prep & Demobilization (Pre -Irma) 2 Clean -Up & Damage (Post -Irma) Costs include: labor on straight and premium time to secure stored materials In place; relocate material and equipment out of harm's way; dismantle scaffolds and ship offsite; shut down electrical equipment and rooms; prepare storm water structures; purchasing tarps, plywood, lumber, sandbags, ropes and cables to secure work and stored materials and incomplete structures and to close openings; remove MOT's; remove portable toilets; lower booms on cranes and lifts; remove fence screening. Costs include: Clean -up of insulation blown off levels 4 and 5 and scattered on the site, replacement of damaged Insulation and reinforcing steel for parking level concrete deck; damage to fireproofing, damage to pipe and duct insulation, damage to trees and landscaping stored off -site, broken curtain wall glazing and insulation, engineering costs to recertify structural integrity of building. Remobilize materials and equipment from safe storage areas, repair fencing and windscreen, damaged material trash hauling, clean -up supplies, reinstall MOT on Washington Ave and Dade Blvd, Excusable Delay 15 day Time Costs include lost time wages of workers and management, time to remobilize 3 workers; site security during non- productive days, equipment rental cost during non- Extension productive days; redeliver materials stored off -site. 4 Art Basel Acceleration 5 Art Basel Temp Generators 6 Art Basel Temp. Requirements City Reimbursements to Art Basel for 7 Costs incurred due to lrma's impact August 1 Heavy Rain Event 8 Rain Event Remediation Costs include premium time for items of work, specific to delivering Art Basel, including: completing structural steel and concrete work for the south loading dock, hall - separating service corridors at north, south and west hall boundaries; roofing installation over the west concourse; fire separation wall and roof construction; build - out of the NW junior ballroom; installation of fire sprinkler, chilled water, power and low voltage systems; and finishes work in Halls C and D. Hurricane Irma delayed the ability of Clark and FPL to complete an electrical vault required to provide electrical service to a portion of the Exhibit halls for Art Basel. As a result Clark had to procure and install temporary generators. Costs include: rental for 8 weeks for 2 x 1500 kW generators for power, 1 x 1500kW generator for standby power, and 1 x 500 kW for emergency power; labor to run underground conduit and cable; diesel fuel based on estimated consumption; standby personnel to run and monitor generators and power. Costs include additional Maintenance of Traffic for the Art Basel event as a result of AHJ requrements and storm caused delays; relocation of site trailers and Parking lot configuration for Art Basel Valet. Temporary walls, doors & ceilings in West Concourse. Temporary paving in south alley and standby personnel during show load- in, load -out and event days. Costs include the need for tent structures outside of interior, rental space for Botanical Garden, and other expenses incurred by Art Basel due to the inability to complete construction as a result of Irma, Costs include the costs to remediate areas of the East Concourse following damages caused by a significant rain event on 8/1/17, and includes, cutting out and replacing drywall, mold remediation, ceiling grid and tile replacement, light fixture replacement. TOTAL $6,91'4,221