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HomeMy WebLinkAbout464-2004 RDA Reso RESOLUTION NO. 464-2004 A RESOLUTION OF THE MIAMI BEACH REDEVELOPMENT AGENCY, AUTHORIZING THE CHAIRMAN AND SECRETARY TO EXECUTE AN INTERLOCAL AGREEMENT BY AND BETWEEN THE CITY OF MIAMI BEACH, THE MIAMI BEACH REDEVELOPMENT AGENCY (RDA), MIAMI- DADE COUNTY, FLORIDA, AND THE CHILDREN'S TRUST, MIAMI-DADE COUNTY, AN INDEPENDENT SPECIAL TAXING DISTRICT, FOR THE PURPOSE OF ESTABLISHING THE USE OF TAX INCREMENT REVENUES TO BE DERIVED FROM THE IMPOSITION OF A NOT TO EXCEED ONE-HALF (112) MILL TAX LEVY BY THE TRUST AGAINST REAL PROPERTY LOCATED WITHIN THE SOUTH POINTE REDEVELOPMENT AREA AND THE CITY CENTER/HISTORIC CONVENTION VILLAGE REDEVELOPMENT AND REVITALIZATION AREA, RESPECTFULLY (THE "TRUST REVENUES"). WHEREAS, The Children's Trust ("The Trust"), an independent special taxing district, was established as a result of a County-wide referendum in which the electors of the County approved the creation of The Trust and its imposition of a not to exceed one- half (Y2) mill ad valorem tax levy, for the purpose of funding improvements to children's health, development and safety and promoting parental and community responsibility; and WHEREAS, the Board of County Commissioners enacted Ordinance No. 03-210 (the "County Ordinance"), with an effective date of October 17, 2003, whereby any future requests by municipalities and/or community redevelopment agencies relating to community redevelopment plans, including, but not limited to, approval of annual budgets, would require all community redevelopment agencies, in their sole discretion, to exempt The Children's Trust ad valorem Y2 mill tax levy from collection into the Redevelopment Trust Fund; and WHEREAS, application of the County Ordinance to the RDA would potentially have the impact of depriving the City's respective community redevelopment districts, the South Pointe Redevelopment Area ("South Pointe") and City Center/Historic Convention Village Redevelopment and Revitalization Area ("City Center") from receipt and use of tax increment revenues generated by The Trust's tax levy, as the intent of the Ordinance is that all such revenues generated by the tax levy would be deemed The Trust Revenues; and WHEREAS, the RDA has various series of community redevelopment bonds currently outstanding (the "Bonds"), issued under certain bond resolutions (the "Bond Resolutions"), to which the RDA has pledged all current and future tax increment revenues the RDA is entitled to receive pursuant to Chapter 163, Part III, Florida Statutes (also known as the Community Redevelopment Act of 1969), from all non-exempt taxing authorities, including tax increment revenues from any additional tax levies created subsequent to the issuance of the Bonds, such as The Trust Revenues; and WHEREAS, the RDA is unable to obtain review of its matters, including review of the South Pointe and City Center budgets by the Board of County Commissioners, because it cannot comply with the County Ordinance without violating the RDA's pledges to the holders of the Bonds that require all present and future tax increment revenues from each of the respective redevelopment areas (South Pointe and City Center) to be available for the repayment of debt service on the outstanding Bonds relating to each redevelopment area; WHEREAS, at the September 16,2003 meeting ofthe City's Finance and Citywide Projects Committee, the City's bond counsel informed the Committee that an agreement would have to be negotiated which would allow the RDA to comply with the intent of the County Ordinance, while also allowing it to remain in compliance with its obligations under the applicable Bond Resolutions; and WHEREAS, the agreement would provide that the RDA would be permitted to use The Trust Revenues for debt service on the Bonds, but only after all tax increment revenues had been exhausted and, on the last day of the RDA's fiscal year, remit to The Trust, such Trust Revenues that would not be needed for debt service; and WHEREAS, the City's Finance and Citywide Projects Committee further directed the Administration to enter into discussions with The Trust to dedicate that portion of The Trust Revenues generated within South Pointe and City Center toward eligible children programs planned and/or operating within the City of Miami Beach; and WHEREAS, subsequent to discussions between The Trust, Miami-Dade County and the City/RDA Administration, the parties have negotiated the attached Interlocal Agreement (the "Interlocal") between the City of Miami Beach, the Miami Beach Redevelopment Agency, Miami Dade County and The Trust, for the purpose of establishing the use of tax increment revenues to be derived from the imposition of a not to exceed one-half mill tax levy by The Trust against real property located within the South Pointe and City Center redevelopment areas ("The Trust Revenues"); said Interlocal Agreement satisfactorily addresses bond counsel's concerns, but also incorporates the Finance and Citywide Projects Committee's directives with regard to the use of The Trust Revenues collected in South Pointe and City Center toward eligible Children's programs within the City of Miami Beach. '. NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, that the Chairman and Secretary are hereby authorized to execute the attached Interlocal Agreement by and between the City of Miami Beach, Florida, the Miami Beach Redevelopment Agency, Miami-Dade County, Florida, and The Children's Trust, Miami-Dade County, an independent special taxing district, forthe purpose of establishing the use of tax increment revenues to be derived from the imposition of a not to exceed one-half (1/2) mill tax levy by The Trust against real property located within the South Pointe Redevelopment Area and the City Center/Historic Convention Village Redevelopment and Revitalization Area, respectfully. PASSED AND ADOPTED THIS 1 H ~~~ SECRE ARY T:\Agenda\2004\Jan14\RDA\Children's Trust Reso,doc Attachments APPROVED N3 TO FORM & LANGUAGe & FOR EXECUTION ,~ 1.~~'?I-()1 ment Ag8!1GJ.& DatI General CounIII fU .. REDEVELOPNEN'f. AGENCY COIltMISSION ITEM SUMMARY m Condensed Title: A Resolution of the Chairman and Members of the Miami Beach Redevelopment Agency, authorizing the execution of an Interlocal Agreement by and between the City of Miami Beach, the Miami Beach Redevelopment Agency, Miami-Dade County and the Children's Trust, an independent special taxing district for the purpose of establishing the use of tax increment revenues to be derived from the imposition of a not to exceed one-half (%) mill tax levy by the Trust against real property located within the South Pointe and Citv Center redevelopment areas. Issue: Should the Redevelopment Agency approve the execution of the Interlocal Agreement? Item Summary/Recommendation: On October 17, 2003, the Board of County Commissioners enacted Ordinance No. 03-210, whereby any future requests by municipalities and/or community redevelopment agencies relating to community redevelopment plans, including, but not limited to, approval of annual budgets, would require all Community Redevelopment Agencies, in their sole discretion, to exempt the Children's Trust Ad Valorem % mill Tax levy from collection into the Redevelopment Trust Fund. Consequently, the City is unable to obtain review of its matters, including the CRA budget, by the Board because it cannot comply with the Ordinance without violating the CRA's pledges to the Bond holders that requires all present and future tax increment revenues from each CRA District to be available for the repayment of debt service on the Bonds relating to such CRA District. Pursuant to the direction of the City's Finance and Citywide Projects Committee, the Administration has met with the Children's Trust, which in turn has resulted in the drafting of the attached Interlocal Agreement. The proposed Agreement not only satisfies the provisions of the bond covenants as required by Counsel, but also provides that in exchange for the City and CRA's cooperation, the Trust will make available funds in the amount of Trust Fund Revenues generated from the CRA districts, for eligible service providers and children's programs within the City of Miami Beach, without limiting the ability to access other Children's Trust proarams. Financial Information: Source of Funds: D Finance Dept. Ci Clerk's Office Le islative Trackin : Christina M, Cuervo/Kent O. Bonde/Anna Parekh T:\AGENDA\2004\Jan1404IRDAIChildren's Trust SUM.doc AGENDA ITEM DATE 3A {-{If -Ocr ... CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.cLmiami-beach.fl.us ~ To: From: Subject: REDEVELOPMENT AGENCY MEMORANDUM Chairman and Members of the Board Miami Beach Redevelopment Agency Date: January, 14,2004 Jorge M. Gonzalez ~. Executive Director () - u A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY AUTHORIZING THE CHAIRMAN AND SECRETARY TO EXECUTE AN INTERLOCAL AGREEMENT BY AND BETWEEN THE CITY OF MIAMI BEACH, THE MIAMI BEACH REDEVELOPMENT AGENCY (RDA), MIAMI-DADE COUNTY, FLORIDA, AND THE CHILDREN'S TRUST, MIAMI.DADE COUNTY, AN INDEPENDENT SPECIAL TAXING DISTRICT, FOR THE PURPOSE OF ESTABLISHING THE USE OF TAX INCREMENT REVENUES TO BE DERIVED FROM THE IMPOSITION OF A NOT TO EXCEED ONE-HALF (1/2) MILL TAX LEVY BY THE TRUST AGAINST REAL PROPERTY LOCATED WITHIN THE SOUTH POINTE REDEVELOPMENT AREA AND THE CITY CENTER/HISTORIC CONVENTION VILLAGE REDEVELOPMENT AND REVITALIZATION AREA, RESPECTFULLY. (THE "TRUST REVENUES"). ADMINISTRATION RECOMMENDATION: Adopt the Resolution. ANALYSIS On September 10, 2002, the voters of Miami-Dade County voted to amend the Home-Rule Charter to rename the independent special taxing district "The Children's Trust" and to authorize the levy of an additional ad valorem tax not to exceed one-half (}S,) mill for the purpose offunding improvements to children's health, development and safety and promoting parental and community responsibility. On October 17, 2003, the Board of County Commissioners enacted Ordinance No. 03-210, whereby any future requests by municipalities and/or community redevelopment agencies relating to community redevelopment plans, including, but not limited to, approval of annual budgets, would require all Community Redevelopment Agencies, in their sole discretion, to exempt the Children's Trust Ad Valorem }S, mill Tax levy from collection into the redevelopment trust fund. In the case ofthe City Center, the amount of the contribution would be $572,876 and in the case of South Pointe, $592,809. Additionally, the County was seeking Resolutions from each of the affected municipalities exempting the Trust Fund. On August 4, 2003 at the County Tax Increment Finance (TIF) Committee meeting, the County Attorney stated that there would be no formal request submitted to each Agency for the . " .' January 14, 2004 Redevelopment Agency Memorandum Children's Trust Interloca/ Agreement Page 2 of 3 exemption from the Trust but that alternatively, the municipalities should exempt the special district in their sole discretion and based upon the Board of County Commissioners anticipated action on September 17, 2003 to adopt the aforementioned ordinance. On September 16,2003, the City's Finance and Citywide Projects Committee discussed this issue. Luis Reiter, the City's Bond Counsel, informed the Committee that since existing bond covenants pledge all current and future increment and provide for no specific exclusions or exemptions for special districts, further research would be required to determine if a mechanism could be implemented to grant such exemption. The City Manager recommended initiating discussions with the Children's Trust to dedicate that portion of the Children's Trust revenues generated in the South Pointe and City Center Redevelopment Areas, toward eligible service providers and children programs planned and/or operating within the City's boundaries. The Committee recommended undertaking the necessary research and to pursue negotiations with the County and the Children's Trust. Subsequent to the discussions between the Children's Trust and the City Administration, the parties have negotiated an Interlocal Agreement between the City of Miami Beach, the Miami Beach Redevelopment Agency, Miami-Dade County and the Children's Trust, for the purpose of establishing the use of tax increment revenues to be derived from the imposition of the not to exceed one-half (%) mill tax levy by the Trust against real property located within the jurisdictions of the City Center and South Pointe CRAs. The proposed Agreement not only satisfies the provisions of the bond covenants as required by Counsel, but also provides that in exchange for the City and CRA's cooperation, the Trust will make available funds in the amount of Trust Fund Revenues generated from the CRA districts, for programs and services for children and families within the City of Miami Beach, without limiting the ability to access other Children's Trust programs It should be noted that on December 17, 2003, the Board of The Children's Trust approved the Interlocal in substantial form. On December 22,2003, the City's Finance and Citywide Projects Committee recommended approval of the Interlocal Agreement to the full City Commission and RDA Board, for consideration at the January 14th Commission meeting and inserted some additional language in Section 3, as follows "The City and/or agency or organization is in no way restricted from participating in, and shall not be prejudiced by, any and all other competitive funding opportunities offered by the Trust". It should be noted that that the County Attorney's Office is insisting that the County doesn't need to be a party to this Agreement, on account of the fact that it is already party to a separate agreement, wherein the County memorializes its intent to distribute its portion to the Trust. Notwithstanding the County's position, the City and Bond Counsel maintain that the County needs to be a party to the Agreement, to effectively memorialize the parties' intent to make the appropriate distributions to the Trust. The City is concerned that as it is not a party under the separate agreement, any future termination or amendment to same changing the County's distributions to the Trust therein, could affect the City's obligations vis a vis the proposed Interlocal. Additionally, there is a concern, in the absence of the County being a party to the Interlocal, that an affirmative declaration, by way of the County Administration , " January 14, 2004 Redevelopment Agency Memorandum Children's Trust Interloca/ Agreement Page 3 of 3 providing a letter of intent or other administratively executed document, may not have the authority to bind the County Commission. The City has communicated to the County that since they have attested to their intent, they shouldn't be precluded from executing the Interlocal. A response is pending. RECOMMENDATION As indicated earlier, any future request by municipalities and/or CRA agencies relating to community redevelopment plans, including but not limited to, approval of annual budgets, would require all agencies, in their sole discretion to exempt the Children's Trust, in the form of a Resolution by the respective agency or municipality. Since the City Center and South Pointe RDA FY 2003/04 budgets are scheduled to be considered for approval before the County Commission on January 20, 2004, it is recommended that the Redevelopment Agency adopt the attached Resolution to execute the Interlocal Agreement as proposed. JMG:CMC:PDW:KOB: FILENAME:T:\AGENOA\2004\JAN 14IROAICHILDREN'S TRUST RDA_MEMO,OOC Attachments ., RESOLUTION NO. 2004-25457 A RESOLUTION OF MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN INTERLOCAL AGREEMENT BY AND BETWEEN THE CITY OF MIAMI BEACH, THE MIAMI BEACH REDEVELOPMENT AGENCY (RDA), MIAMI-DADE COUNTY, FLORIDA, AND THE CHILDREN'S TRUST, MIAMI-DADE COUNTY, AN INDEPENDENT SPECIAL TAXING DISTRICT, FOR THE PURPOSE OF ESTABLISHING THE USE OF TAX INCREMENT REVENUES TO BE DERIVED FROM THE IMPOSITION OF A NOT TO EXCEED ONE-HALF (1/2) MILL TAX LEVY BY THE TRUST AGAINST REAL PROPERTY LOCATED WITHIN THE SOUTH POINTE REDEVELOPMENT AREA AND THE CITY CENTERlHISTORIC CONVENTION VILLAGE REDEVELOPMENT AND REVITALIZATION AREA, RESPECTFULLY (THE "TRUST REVENUES"). WHEREAS, The Children's Trust ('The Trust"), an independent special taxing district, was established as a result of a County-wide referendum in which the electors of the County approved the creation of The Trust and its imposition of a not to exceed one- half (Y2) mill ad valorem tax levy, for the purpose of funding improvements to children's health, development and safety and promoting parental and community responsibility; and WHEREAS, the Board of County Commissioners enacted Ordinance No. 03-210 (the "County Ordinance"), with an effective date of October 17, 2003, whereby any future requests by municipalities and/or community redevelopment agencies relating to community redevelopment plans, including, but not limited to, approval of annual budgets, would require all community redevelopment agencies, in their sole discretion, to exempt The Children's Trust ad valorem Y2 mill tax levy from collection into the Redevelopment Trust Fund; and WHEREAS, application of the County Ordinance to the RDA would potentially have the impact of depriving the City's respective community redevelopment districts, the South Pointe Redevelopment Area ("South Pointe") and City Center/Historic Convention Village Redevelopment and Revitalization Area ("City Center") from receipt and use of tax increment revenues generated by The Trust's tax levy, as the intent of the Ordinance is that all such revenues generated by the tax levy would be deemed The Trust Revenues; and WHEREAS, the RDA has various series of community redevelopment bonds currently outstanding (the "Bonds"), issued under certain bond resolutions (the "Bond Resolutions"), to which the RDA has pledged all current and future tax increment revenues the RDA is entitled to receive pursuant to Chapter 163, Part III, Florida Statutes (also known as the Community Redevelopment Act of 1969), from all non-exempt taxing authorities, including tax increment revenues from any additional tax levies created subsequent to the issuance of the Bonds, such as The Trust Revenues; and WHEREAS, the RDA is unable to obtain review of its matters, including review of the South Pointe and City Center budgets by the Board of County Commissioners, because it cannot comply with the County Ordinance without violating the RDA's pledges to the holders of the Bonds that require all present and future tax increment revenues from each of the respective redevelopment areas (South Pointe and City Center) to be available for the repayment of debt service on the outstanding Bonds relating to each redevelopment area; WHEREAS, atthe September 16, 2003 meeting of the City's Finance and Citywide Projects Committee, the City's bond counsel informed the Committee that an agreement would have to be negotiated which would allow the RDA to comply with the intent of the County Ordinance, while also allowing it to remain in compliance with its obligations under the applicable Bond Resolutions; and WHEREAS, the agreement would provide that the RDA would be permitted to use The Trust Revenues for debt service on the Bonds, but only after all tax increment revenues had been exhausted and, on the last day of the RDA's fiscal year, remit to The Trust, such Trust Revenues that would not be needed for debt service; and WHEREAS, the City's Finance and Citywide Projects Committee further directed the Administration to enter into discussions with The Trust to dedicate that portion of The Trust Revenues generated within South Pointe and City Center toward eligible children programs planned and/or operating within the City of Miami Beach; and WHEREAS, subsequent to discussions between The Trust, Miami-Dade County and the City/RDA Administration, the parties have negotiated the attached Interlocal Agreement (the "Interlocal") between the City of Miami Beach, the Miami Beach Redevelopment Agency, Miami Dade County and The Trust, for the purpose of establishing the use of tax increment revenues to be derived from the imposition of a not to exceed one-half mill tax levy by The Trust against real property located within the South Pointe and City Center redevelopment areas ("The Trust Revenues"); said Interlocal Agreement satisfactorily addresses bond counsel's concerns, but also incorporates the Finance and Citywide Projects Committee's directives with regard to the use of The Trust Revenues collected in South Pointe and City Center toward eligible Children's programs within the City of Miami Beach. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Clerk are hereby authorized to execute the attached Interlocal Agreement by and between the City of Miami Beach, Florida, the Miami Beach Redevelopment Agency, Miami-Dade County, Florida, and The Children's Trust, Miami-Dade County, an independent special taxing district, for the purpose of establishing the use of tax increment revenues to be derived from the imposition of a not to exceed one-half (1/2) mill tax levy by The Trust against real property located within the South Pointe Redevelopment Area and the City Center/Historic Convention Village Redevelopment and Revitalization Area, respectfully. PASSED AND ADOPTED THIS 14TH A CITY CLERK T:\Agenda\2004\Jan14\RDA\Children's Trust Reso,doc Attachments APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION 1'1#- /.,,"31-({~ y~~ Date CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY ~ Condensed Title: A Resolution of the Mayor and City Commission, authorizing the execution of an Interlocal Agreement by and between the City of Miami Beach, the Miami Beach Redevelopment Agency, Miami-Dade County and the Children's Trust, an independent special taxing district for the purpose of establishing the use of tax increment revenues to be derived from the imposition of not to exceed one-half (Y:z)mill tax levy by the Trust a ainst real ro e located within the South Pointe and Cit Center redevelo ment areas. Issue: Should the City Commission approve the execution of the Interlocal Agreement? Item Summary/Recommendation: On October 17, 2003, the Board of County Commissioners enacted Ordinance No. 03-210, whereby any future requests by municipalities and/or community redevelopment agencies relating to community redevelopment plans, including, but not limited to, approval of annual budgets, would require all Community Redevelopment Agencies, in their sole discretion, to exempt the Children's Trust Ad Valorem Y. mill Tax levy from collection into the Redevelopment Trust Fund. Consequently, the City is unable to obtain review of its matters, including the CRA budget, by the Board because it cannot comply with the Ordinance without violating the CRA's pledges to the Bond holders that requires all present and future tax increment revenues from each CRA District to be available for the repayment of debt service on the Bonds relating to such CRA District. Pursuant to the direction of the City's Finance and Citywide Projects Committee, the Administration has met with the Children's Trust, which in turn has resulted in the drafting of the attached Interlocal Agreement. The proposed Agreement not only satisfies the provisions of the bond covenants as required by Counsel, but also provides that in exchange for the City and CRA's cooperation, the Trust will make available funds in the amount of Trust Fund Revenues generated from the CRA districts, for eligible service providers and children's programs within the City of Miami Beach, without limiting the ability to access other Children's Trust oroarams, Adviso Board Recommendation: Finance and Citywide Projects Committee, December 22, 2003 - Motion to recommend the Interlocal A reement for a roval to the full Ci Commission and the Redevelo ment A enc Board. Financial Information: Source of Funds: 1 2 3 .4 Total. Amount Account Approved D Finance Dept. Ci Clerk's Office Le islative Trackin : Christina M. Cuervo/Kent O. Bonde/Anna Parekh Si n-Offs: DepartmentQirectOi" T:\AGENDA\2004\Jan14\Regular\Children's Trust Summary Assistant City Manager City Manager AGENDA ITEM DATE R7A 1-/1./-0 {f '. CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.ci.miami-beach.fl.us lO To: From: Subject: COMMISSION MEMORANDUM Mayor David Dermer and Members of the City Commission Date: January, 14,2004 Jorge M. Gonzalez \ ..~ City Manager J;r-.7 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN INTERLOCAL AGREEMENT BY AND BETWEEN THE CITY OF MIAMI BEACH, THE MIAMI BEACH REDEVELOPMENT AGENCY (RDA), MIAMI-DADE COUNTY, FLORIDA, AND THE CHILDREN'S TRUST, MIAMI- DADE COUNTY, AN INDEPENDENT SPECIAL TAXING DISTRICT, FOR THE PURPOSE OF ESTABLISHING THE USE OF TAX INCREMENT REVENUES TO BE DERIVED FROM THE IMPOSITION OF A NOT TO EXCEED ONE- HALF (1/2) MILL TAX LEVY BYTHE TRUST AGAINST REAL PROPERTY LOCATED WITHIN THE SOUTH POINTE REDEVELOPMENT AREA AND THE CITY CENTER/HISTORIC CONVENTION VILLAGE REDEVELOPMENT AND REVITALIZATION AREA, RESPECTFULLY (THE "TRUST REVENUES"). ADMINISTRATION RECOMMENDATION: Adopt the Resolution. ANALYSIS On September 10, 2002, the voters of Miami-Dade County voted to amend the Home-Rule Charter to rename the independent special taxing district "The Children's Trust" and to authorize the levy of an additional ad valorem tax not to exceed one-half (Y2) mill for the purpose offunding improvements to children's health, development and safety and promoting parental and community responsibility. On October 17,2003, the Board of County Commissioners enacted Ordinance No. 03-210, whereby any future requests by municipalities and/or community redevelopment agencies relating to community redevelopment plans, including, but not limited to, approval of annual budgets, would require all Community Redevelopment Agencies, in their sole discretion, to exempt the Children's Trust Ad Valorem Y2 mill Tax levy from collection into the redevelopment trust fund. In the case ofthe City Center, the amount of the contribution would be $572,876 and in the case of South Pointe, $592,809. Additionally, the County was seeking Resolutions from each of the affected municipalities exempting the Trust Fund. On August 4, 2003 at the County Tax Increment Finance (TIF) Committee meeting, the County Attorney stated that there would be no formal request submitted to each Agency for the exemption from the Trust but that alternatively, the municipalities should exempt the special '. January 14, 2004 Commission Memorandum Children's Trust Interloca/ Agreement Page 2 of 3 district in their sole discretion and based upon the Board of County Commissioners anticipated action on September 17,2003 to adopt the aforementioned ordinance. On September 16, 2003, the City's Finance and Citywide Projects Committee discussed this issue. Luis Reiter, the City's Bond Counsel, informed the Committee that since existing bond covenants pledge all current and future increment and provide for no specific exclusions or exemptions for special districts, further research would be required to determine if a mechanism could be implemented to grant such exemption. The City Manager recommended initiating discussions with the Children's Trust to dedicate that portion of the Children's Trust revenues generated in the South Pointe and City Center Redevelopment Areas, toward eligible service providers and children programs planned and/or operating within the City's boundaries. The Committee recommended undertaking the necessary research and to pursue negotiations with the County and the Children's Trust. Subsequent to the discussions between the Children's Trust and the City Administration, the parties have negotiated the attached lnterlocal Agreement between the City of Miami Beach, the Miami Beach Redevelopment Agency, Miami-Dade County and the Children's Trust, for the purpose of establishing the use of tax increment revenues to be derived from the imposition of the not to exceed one-half (Yo) mill tax levy by the Trust against real property located within the jurisdictions of the City Center and South Pointe CRAs. The proposed Agreement not only satisfies the provisions of the bond covenants as required by Counsel, but also provides that in exchange for the City and CRA's cooperation, the Trust will make available funds in the amount of Trust Fund Revenues generated from the CRA districts, for programs and services for children and families within the City of Miami Beach, without limiting the ability to access other Children's Trust programs. On December 22, 2003, the City's Finance and Citywide Projects Committee recommended approval of the Interlocal Agreement to the full City Commission and RDA Board, for consideration at the January 14th Commission meeting and inserted some additional language in Section 3, as follows "The City and/or agency or organization is in no way restricted from participating in, and shall not be prejudiced by, any and all other competitive funding opportunities offered by the Trust". It should be noted that on December 17, 2003, the Board of The Children's Trust approved the Interlocal in substantial form. It should be noted that that the County Attorney's Office is insisting that the County doesn't need to be a party to this Agreement, on account of the fact that it is already party to a separate agreement, wherein the County memorializes its intent to distribute its portion to the Trust. Notwithstanding the County's position, the City and Bond Counsel maintain that the County needs to be a party to the Agreement, to effectively memorialize the parties' intent to make the appropriate distributions to the Trust. The City is concerned that as it is not a party under the separate agreement, any future termination or amendment to same changing the County's distributions to the Trust therein, could affect the City's obligations vis a vis the proposed Interlocal. Additionally, there is a concern, in the absence of the County being a party to the Interlocal, that an affirmative declaration, by way of the County Administration providing a letter of intent or other administratively executed document, may not have the January 14, 2004 Commission Memorandum Children's Trust Interlocal Agreement Page 3 of 3 authority to bind the County Commission. The City has communicated to the County that since they have attested to their intent, they shouldn't be precluded from executing the Interlocal. RECOMMENDATION As indicated earlier, any future request by municipalities and/or CRA agencies relating to community redevelopment plans, including but not limited to, approval of annual budgets, would require all agencies, in their sole discretion to exempt the Children's Trust, in the form of a Resolution by the respective agency or municipality. Since the City Center and South Pointe RDA FY 2003/04 budgets are scheduled to be considered for approval before the County Commission on January 20, 2004, it is recommended that the City Commission adopt the attached Resolution to execute the Interlocal Agreement as proposed. JMG:CMC:PDW:KOB: FILENAME:T:\AGENDAI2004\JAN 14\REGULARICHILDREN'S TRUST COMM MEMO,DOC Attachments