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HomeMy WebLinkAbout2004-25457 Reso , '. 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 (112) 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 (%) 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 % 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 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 ATTEST: CITY CLERK T:\Agenda\2004\Jan14IRDAIChildren's Trust Reso,doc Attachments APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION ~~ /.t-"'31-(J~? Da\II CITY OF MIAMI' BEAcii COMMISSION ITEM SUMMARY m 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 (Yo)mill tax levy by the Trust a ainst real ro e located within the South Pointe and Ci 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 Yo 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, 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\Jan14\Regular\Children's Trust Summary AGENDA ITEM DATE R7A I-ILI-o<t CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.ci.miami-beach.fl.us m To: From: Subject: COMMISSION MEMORANDUM Mayor David Dermer and Members of the City Commission Date: January, 14,2004 Jorge M. Gonzalez \. ~ City Manager Oel" U 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 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 (Y:z) mill for the purpose of funding 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 Y:z mill Tax levy from collection into the redevelopment trust fund. I n the case of the 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 Inter/oeal 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 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. 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 Interloeal 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:\AGENDA\2004\JAN 14\REGULARlCHILDREN'S TRUST COMM MEMO.DOC Attachments 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 (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"). 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, 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 1 H ATTEST: ~~~ APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION T:\Agenda\2004\Jan14IRDAIChildren's Trust Reso,doc Allachments ~ 1.'2.--'?;-()f ment Agency./.1.\- DatIl General Coun.. IU .. REDEVELOPIVENT AGENCY COI\IMISSION 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 redevelooment 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 Yo 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. Financial Information: Source of ...... .. ...... . AfnoiJnf. ... ....... Account ... APprov,d Funds: 1... D .2... ... i~... dt Finance Dept. Total Ci Clerk's Office Le islative Trackin : Christina M. Cuervo/Kent O. Bonde/Anna Parekh Si n-Offs: Departmeht Director T:\AGENDA\2004\Jan1404IRDAIChildren's Trust SUM,doc Assistant City Manager AGENDA ITEM DATE 3A / -{If -oct CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH. FLORIDA 33139 www.ci.miami-beach.fi.us m To: From: Subject: REDEVELOPMENT AGENCY MEMORANDUM Chairman and Members of the Board Miami Beach Redevelopment Agency Date: January, 14, 2004 Jorge M. Gonzalez q ..... /'. Executive Director ().......--- Z5 A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY AUTHORIZING THE CHAIRMAN AND SECRETARY TO EXECUTE AN INTER LOCAL 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 of funding 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 ofthe 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 Interlocal 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 (Y:z) 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 ofthe 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 Interloeal Agreement Page 30'3 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:\AGENDA\2004\JAN 14IRDAICHILDREN'S TRUST RDA_MEMO,DOC Attachments INTERLOCAL AGREEMENT AMONG CITY OF MIAMI BEACH, MIAMI BEACH REDEVELOPMENT AGENCY, MIAMI-DADE COUNTY, FLORIDA & THE CHILDREN'S TRUST, This Interlocal Agreement ("Agreement") is among the City of Miami Beach, Florida, (the "City"), the Miami Beach .Redevelopment Agency (the "CRA"), Miami- Dade County, Florida (the "County") and The Children's Trust, Miami-Dade County (" The 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 half mill tax levy by The Trust against real property located within the jurisdictions of the CRA (the "Trust Revenues"), WHEREAS, The Trust 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 half mill tax levy against all non-exempt real property in Miami-Dade County for the purpose of funding improvements to children's health, development and safety and promoting parental and community responsibility for children who reside in Miami-Dade County; and WHEREAS, Chapter 163, Part III, Florida Statutes, also known as the Community Redevelopment Act of 1969 (the "Act"), provides for the creation of community redevelopment agencies and governs the use of moneys in the redevelopment trust funds created in accordance with the Act (each, a "Fund"); and WHEREAS, the City Commission accepted a delegation of powers from the Miami-Dade County Board of Commissioners (the "Board"), found a need for and created the CRA to have jurisdiction over all of its community redevelopment districts, declared members of the City Commission to be the members of the Agency, granted the Agency the power to exercise certain powers permitted by the Act to the extent delegated by the Board to the Agency and directed the initiation, preparation and adoption of community redevelopment plans by the Agency for its two community redevelopment districts known as City CenterIHistoric Convention Village and South Pointe ("CRA Districts"); and WHEREAS, the CRA has various series of community redev#.<}pment reven~ bonds currently outstanding in the aggregate principal amount of $11~~;I'I"~II~.>.Li (the "Bonds") issued under certain bond resolutions (the "Bond ResolutIons") to which the CRA has pledged all current and future tax increment revenues the CRA is entitled to receive pursuant to the Act 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 2 WHEREAS, the City has pledged certain City revenues to the holders of the Bonds as a additional security for the Bonds; and WHEREAS. as an independent special taxing: district. The Trust is eligible to share in any tax increment revenues not budgeted for a particular use and remaining at the end of the CRA's fiscal year in the Fund established for each CRA community redevelopment district: and WHEREAS, the Board enacted Ordinance No. 03-210 (the "Ordinance") with an effective date of October 17, 2003 that established a policy that before the Board will consider any matter concerning a community redevelopment agency, including the approval of an annual CRA budget, a governing body such as the City shall first exempt The Trust pursuant to the Act from having to deposit its Trust Revenues with the community redevelopment agency; and WHEREAS, 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 holders of the Bonds 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 eRA District; and WHEREAS, the City, the CRA and the County wish to assist The Trust and to effectuate the will of the electorate by agreeing to remit The Trust Revenues to The Trust pursuant to the provisions of this Agreement; and WHEREAS, approximately ten percent (10%) of the ad valorem tax revenue collected in Miami-Dade County is from residents ofthe City and; WHEREAS, The Trust collects approximately $6 million in ad valorem tax revenues from the residents of the City which is ten percent (10%) of the ad valorem tax revenue it collects and; WHEREAS, there are children and families who reside in the City and are in need of the services described in The Trust's Strategic Framework 2003-2007 and there are a number of agencies which may provide quality services to these children and families if provided financial assistance; and WHEREAS, in exchange for the City's and the CRA's cooperation, The Trust will make funds available for children's programs within the City in the amount of The Trust Revenues annually upon the conditions set forth in this Agreement; and WHEREAS, the City, the CRA, the County and The Trust desire to enter into this Agreement in order to establish their cooperation and agreement with respect to the use of The Trust Revenues, 3 NOW THEREFORE, the parties agree as follows: Section 1. The recitals above are incorporated in Section I of this Agreement. Section 2. The City, the CRA and the County agree that the CRA shall: (i) use The Trust Revenues for debt service on, and other obligations relating to, the Bonds under the applicable Bond Resolutions only after all other tax increment revenues under the applicable Bond Resolutions have been exhausted for such purpose; and (ii) remit to The Trust on the last day of the CRA's fiscal year, all of the Trust Revenues that are not needed for debt service on, and other obligations relating to, the Bonds under the applicable Bond Resolutions and are eligible to be refunded pursuant to the Act, and the applicable Bond Resolutions. Section 3. The Trust will make available funds in the amount of Trust Revenues annually for programs and services to children and families within the City, through a competitive process, to the City and/or agencies and organizations that provide said-programs and services within the City. However, in order to receive funding, the City and/or agency or organization must provide a program or service that falls within The Trust's funding priorities and quality standards. 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. Section 4. This Agreement shall be effective upon execution by all parties and shall continue for as long as The Trust is in existence and can levy ad valorem taxes. Section 5. This Agreement is made in the State of Florida and shall be governed according to the laws of the State of Florida. Proper venue for this Agreement shall be Miami-Dade County, Florida. Section 6. Any alterations, variations, modifications, extensions or waivers of provisions of this Agreement shall only be valid when they have been reduced to writing, duly approved and signed by both parties and attached to the original of this Agreement. Section 7. This Agreement is signed in four (4) counterparts, and each counterpart shall constitute an original of this Agreement. Section 8. This Agreement containli all the terms and conditions agreed upon by the parties. No other Agreement, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to exist or bind any of the parties hereto. If any provision of this Agreement is held invalid or void, the remainder of this Agreement shall not be affected thereby if such remainder would then continue to conform to the terms and requirements of applicable law. 4 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective and duly authorized officers as of the day and year first above written. (SEAL) ATTEST: ~~~ ~~ Robert Parcher, City Clerk ATTEST: QM. ~Cu~ Secretary ATTEST: '-}~{!~ Valria C. Screen, Sedretary E CH REDEVELOPMENT AGENCY MIAMI-DADE COUNTY, FLORIDA ~ ~.~~ ~ Signa e of AJ orized Representative Print Name and Title THE CHILDREN'S TRUST, MIAMI DADE COUNTY o APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION ~~tWoy City Altom Date . MEMORANDUM Not On Agenda Item No. 7(K)(1)(B) TO: Honorable Chairperson Barbara Carey-Shuler, Ed.D. DA TE: and Members, Board of County Commissioners July 27, 2004 FROM: SUBJECT: Agreement with City of Miami Beach, Miami Beach Redevelopment Agency and the Children's Trust RECOMMENDATION It is recommended that the Board of County Commissioners adopt the accompanying resolution that approves the form of the attached interlocal agreement ("Agreement") with the Miami Beach Redevelopment Agency ("CRA"), the City of Miami Beach ("City"), and the Children's Trust ("Trust") and authorizes its execution by the County Manager. This Agreement provides for the distribution of tax increment revenues derived from the imposition of a one half mill tax levy by the Trust against real property within the jurisdiction of the CRA. BACKGROUND The CRA administers the South Point Tax Increment District (created in 1973) and the City Center/Historic Convention Tax Increment District (created in 1992) established under provisions of Chapter 163, part Ill, Florida Statutes ("Act"). The Trust was established in 2003 as a result of a county-wide referendwn in which the electors of the County approved its creation and imposition of a not to exceed one half of a mill ad valorem tax levy against all non-exempt real property in Miami-Dade County for the purpose of funding improvements to children's health, development and safety and promoting parental and community responsibility for children who reside in Miami-Dade County. On October 17, 2003, the Board enacted Ordinance No. 03-210 ("Ordinance") that established a policy that before the Board wilJ consider any matter concerning a community redevelopment agency, including the approval of an annual budget, a community redevelopment agency and/or a governing body such as the City shall first exempt the Trust pursuant to the Act from having to remit its tax revenues generated within a community redevelopment district to the community redevelopment agency. The CRA has various series of community redevelopment revenue bonds currently outstanding in the aggregate principal amount of $94,890,000 (the "Bonds") issued under certain bond resolutions (the "Bond Resolutions") to which the CRA has pledged all current and future tax increment revenues the eRA is entitled to receive pursuant to the Act from all non-exempt taxing authorities, like the Trust, created subsequent to the issuance of the Bonds. HOll. Chairperson Barba. :arey-Shuler, Ed.D. and Members, Board of County Commissioners Page 2 The CRA would be unable to obtain review of its matters, including the its annual budget, by the Board because it cannot voluntarily exempt the Trust in order to comply with the Ordinance without violating the CRA's pledges to the holders of the Bonds that requires all present and future tax increment revenues from each CRA District to be available for the repayment of debt service on the Bohds relating to such CRA District. While the City, the CRA and the County alI wish to assist the Trust and to effectuate the will of the electorate, the provisions of the Agreement provide a mechanism by which the Trust first remits its statutorily required revenue payment to the CRA, and then the CRA, after having made its annual debt service payment to bond holders, will remit back only to the Trust (instead of a pro-rata distribution to the Trust, the City and the County), on the last day of its fiscal year, alI of the Trust tax revenues that are not needed for debt service relating to the outstanding Bonds. By being a party to the Agreement, the County agrees to permit its pro rata share in the refunding of the tax revenues of the Trust pursuant to the Act to be included in the annual payment by the CRA to the Trust of all Trust tax revenues not needed for debt service. It also acknowledges that the CRA is in compliance with the Ordinance. In exchange for the City's and CRA's cooperation, the Trust will make available funds in the amount of Trust Revenues annually for programs and services to children and families within the City, through a competitive process, to the City and/or agencies and organizations that provide said children programs and services within the City. The Trust, while colIecting approximately $ 6 million from residents in the City, including approximately $ 1 million from within the CRA's jurisdiction, is thus agreeing to spend at least $ I million on programs in the whole City. There is no fiscal impact to the County compared to the CRA voluntarily exempting the Trust's Y2 mills. Attachment ~Q~e Assistan County anager ~ -- MEMORANDUM (Revised) TO: Hon. Chairperson Barbara Carey-Shuler, Ed.D. DATE: and Members. Board of County Commissioners July 27, 2004 /#d~ FROM: Robert A. Ginsburg County Attorney Not On SUBJECT: Agenda Item No. 7 (K) ( 1 ) (E Please note any items cbecked. ~ "4-Day Rule" ("3-Day Rule" for committees) applicable if raised 6 weeks required between fint reading and public bearing 4 weeks notification to municipal officials required prior to public bearing Decreases revenues or increases expenditures witbout balancing budget Budget required Statement of fiscal impact required Bid waiver requiring County Manager's written recommendation Ordinance creating a new board requires detailed County Manager's report for public bearing Housekeeping item (no policy decision required) No committee review 3 ,;! Approved Veto Override Mavor Not '1n Age .a Item No. 7(K) (1) (B) 7-27-04 RESOLUTION NO. R-97}-{)4 -.aAl ffLf COPT CLERK OF THE BOARD . COUNTY COMMISSIONER:! 'Mol coum. FLORIDA RESOLUTION APPROVING TERMS AND EXECUTION OF INTERLOCAL AGREEMENT BETWEEN MIAMI-DADE COUNTY, CITY OF MIAMI BEACH, MIAMI BEACH REDEVELOPMENT AGENCY, AND THE CHILDREN'S TRUST FOR PURPOSE OF ESTABLISHING METHOD OF DISTRIBUTION OF TAX INCREMENT REVENUES DERIVED FROM CHILDREN'S TRUST ONE HALF MILL AD VALOREM TAX LEVY AGAINST REAL PROPERTY LOCATED WITHIN JURISDICTION OF MIAMI BEACH REDEVELOPMENT AGENCY WHEREAS, the Children's Trust ("Trust") was established as a result of a county-wide referendum in which the electors of Miami-Dade County approved the creation of the Trust and its imposition of a not to exceed one half mill tax levy against all non-exempt real property in Miami-Dade County for the purpose of funding improvements to children's health, development and safety and promoting parental and community responsibility for children who reside in Miami-Dade County; and WHEREAS, the Miami Beach Community Redevelopment Agency ("CRA") has jurisdiction over two community redevelopment districts located in the City of Miami Beach ("City") known as City Center/Historic Convention Village and South Pointe ("CRA Districts"); and WHEREAS, the CRA has various series of community redevelopment revenue bonds currently outstanding in the aggregate principal amount of $94,890,000 (the "Bonds") issued under certain bond resolutions (the "Bond Resolutions") to which the CRA has pledged all current and future tax increment revenues the CRA is entitled to receive pursuant to the Act from all non-exempt taxing authorities, like the Trust, created subsequent to the issuance oftbe Bonds; and 4 - .. Not On Agenda Item No. 7(K)(1) Page No.2 WHEREAS, the Board enacted Ordinance No. 03-210 (the "Ordinance") that established a policy that before the Board will consider any matter concerning a community redevelopment agency, includin& the approval of an annual budget, a community redevelopment agency and/or governing body such as the City shall first exempt the Trust pursuant to the Act from having to remit its tax revenues generated within a community redevelopment district to the community redevelopment agency; and WHEREAS, the City is unable to obtain review of its matters, including the its annual budget, by the Board because it cannot voluntarily exempt the Trust in order to comply with the Ordinance without violating the CRA's pledges to the holders of the Bonds 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; and WHEREAS, the City, the CRA and the County wish to assist the Trust and to effectuate the will of the electorate by agreeing to enter into an interlocal agreement ("Interlocal Agreement'') in substantially the form attached as Exhibit "A" for the purposes set forth in the accompanying County Manager's memorandum which is incorporated in this Resolution by reference with respect to a method for distributing the Trust tax revenue; and WHEREAS, in exchange for the cooperation from the City and the CRA, the Trust will make funds available for children's programs within the City in the amounts and upon the conditions set forth in the Agreement; and WHEREAS, this Board wishes to approve the form of the Agreement and authorize its execution by the County Manager after review by the County Attorney's Office, NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that: 5 Section I. Not Ageno.. ,(em No. 7 (K) (1) (B)'" 1\,., Page No.3 The matters contained in the foregoing recitals are incorporated in this resolution by reference. Section 2. The Board approves the terms of the lnterlocal Agreement in substantially the form attached-to this resolution as Exhibit "A" and authorizes the County Manager to execute it after review by the County Attorney's Office. Section 3. The provisions of Resolution No. 377-04 pertaining to the effective date of County contracts is waived with respect to the Agreement. The foregoing resolution was offered by Commissioner Dennis C. Moss , who moved its adoption. The motion was seconded by Commissioner Joe A. Martinez and upon being put to a vote, the vote was as follows: Dr. Barbara Carey-Shuler, Chairperson aye Katy Sorenson, Vice-Chairperson aye Bruno A. Barreiro aye Jose "Pepe" Diaz aye Betty T. Ferguson aye Sally A. Heyman aye Joe A. Martinez aye Jimmy L. Morales aye Dennis C. Moss aye DOTTin D. Rolle aye Natacha Seijas absent Rebeca Sosa aye Sen. Javier D. Soutoaye The Chairperson thereupon declared the resolution duly passed and adopted this 27th day of July, 2004. This resolution shall become effective ten (l0) days after the date of its adoption unless vetoed by the Mayor, and if vetoed, shall become effective only upon an override by this Board. ". . _t. ->:'~.)'~~;:.~~::;~:,;;..~:>:':: ;; I'- /.-..- ''- ~ u .( ',,\ -'" i,' :: ,- ,/ ::----. -.. -x. ~ ;. -< ii rOUNTY rn ~ c...., \'1 .", _-- J; ,-.- ...- .:n ~ \~ (0 / site * .. .. \Ile~~4-..,-cr4'~f'j1l MIAMI-DADE COUNTY, FLORIDA BY ITS BOARD OF COUNTY COMMISSIONERS HARVEY RUVIN, CLERK. Approved by County Attorney as to form and legal sufficiency. Ci!J By: KAY SULLIV A~ Deputy Clerk Gerald T. Heffernan C:>