HomeMy WebLinkAbout1 County Manager Memorandum
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MEMORANDUM,
Not On
Agenda---Item- No; 11 (A-) ( 3)
TO:
Honorable Chairperson Barbara Carey-Shuler, Ed. D. DATE:
and Members. Board of County Commissioners
March 16,2004
FROM: George M. Burgess
County Manager
SUBJECI': Second Amendment to
Miami Beach Interlocal
Agreement
RecolDlllelldatiOD
~
It is recommended that the Board adopt a resolution approving, in substantially the form attached
to the resolution, the Second Amendment to the 1996 Interlocal Agreement with the City of
Miami Beach and authorizing its execution and delivery following approval by the County
Attorney's Office.
Back2round
The Convention Development Tax (COlJ is a three percent tax imposed on transient rentals.
The COT was approved, in part, to recognize the importance to the local economy of the
continued maintenance, improvement, and expansion of the Miami Beach Convention Center. In
accordance with state law, two-thirds of the COT revenue was used initially for the extension,
enlargement and improvement of the Miami Beach Convention Center. Upon the completion of
such improvements, the two-thirds portion of the CDT revenue may be used for other qualified
projects throughout the County which has been the case since the initial financing for the
Convention Center in 1987. The one-third portion of the CDT revenues was limited by the state
law to use in the City of Miami. The one-third share of the CDT for use in the City of Miami
was used for the Miami Arena initially and subsequently for various projects, including support
for the American Airlines Arena and for the Performing Arts Center. In 1996, the Board
approved an Interlocal Agreement with the City of Miami Beach, which clarified that the County
could allocate the COT receipts for eligible projects, in particular, for support of the Convention
Center and the Performing Arts Center.
In April, 2001, the Interlocal Agreement was amended to provide for certain payments to Miami
Beach including a one-time, CDT -backed $15 million payment for Convention Center-related
projects (to be made from CDT -backed financing proceeds or available CDT funds on December
1, 2003), annual CDT payments of $4.5 million for operating costs associated with the
Convention Center, additional annual payments from available residual CDr'Receipts (Residual
CDT Receipts Payments), annual payments through 2020 following the tenllination of the South
Pointe Community Redevelopment Agency, and a possible $50 million payment depending on
the pledging of revenues to a baseball stadium. In return, the City agreed to the termination of
tlonorable Chauperson Barbara Carey-Shuler, Ed. D.
and Members, Board of County Commissioners
Page 3
date of the amendment. The source of the fimds will be an advance to be reimbursed
from a subsequent CDT-backed financing; in particular the financing that is projected
.. to. be. required this -year to continu~consttuction of the Penorrirlng Arts Center and
the Neighborhood Cultural Facilities, including the South Miami-Dade Cultural
Center, the Coconut Grove Playhouse renovations, the Caribbean Market Place, the
Lyric Theater, and the Civil Rights Museum.
3. The $50 million CDT obligation to the City would be eliminated from the First
Amended Interlocal Agreement, regardless of the results of negotiations regarding a
baseball stadium. Although the pledge of $35 million for the baseball stadium backed
by CDT revenues is the maximmn projected to be available for such a purpose at this
time, , future residual revenues and receipts above those currently projected could
address other projects such as any increased costs-associated with the .constmction of
the Performing Arts' €enter"or,c,paidi.us'S1tpport for th~ PtafUl1Uing Arts Center and
other museums. In the event that the baseball stadium project does not go forward,
the $50 million commitment to the City could affect CDT support of those other
projects. The requirement in the First Amendment to the 1996 Interlocal Agreement
that the City of Miami Beach support' initiatives' related to the financing and
development of a baseball stadimn is also eliminated.
4. A $55 million Convention Center Expansion Project would be included in the general
obligation bond issue to be considered by the voters in the fall. That project fimding
would replace the CDT obligation if successful.
5. In the event that the Convention Center Expansion Project is approved as part of the
general obligation bond issue, the current payment schedule replacing the South
Pointe CRA Tax Increment Payment would be increased from the current payment
schedule (the equivalent of a 75 percent payment of the tax increment through 2016
and a fifty percent payment of the tax increment through 2020) to the equivalent of 95
percent payment of the tax increment until a total of $45 million more than required
under the First Amendment to the 1996 Interlocal Agreement is paid to the City from
non-ad valorem County sources or until September 30, 2017, whichever. comes first.
Once the additional payments reach $45 million, or in 2018, the payment schedule
would revert to that in the First Amendment to the 1996 Interlocal Agreement. The
City could use the additional payments for any needs identified by the City, which
needs are eligible uses for CDT or Municipal Tourist Resort Tax receipts. The
additional payments would partially offset the loss of the annual CDT payments
anticipated by the City in the First Amendment to the 1996 Interlocal Agreement.
6. In the event that the $55 million Convention Center Expansion Project is NOT
approved as part of a general obligation bond issue in November, 2004, then the
current payment schedule replacing the South Pointe CRA Tax Increment Payment
would be increased to the equivalent of95 percent of the tax increment until a total of
$55 million more than required under the First Amendment to the 1996 Interlocal
Agreement is paid to the City from non-ad valorem County sources, The City would
be required to use those additional fimds for the planned Convention Center
Expansion Project. It is projected that the additional payments would be made
through 2018, depending on the growth in the assessed values'in the South Pointe
area. Once the additional payments reach the level of $55 million, the replacement
payments for the South Pointe CRA would revert to the schedule in the First
)
eligible for CDT funding pursuant to state law. To the extent the Two-Thirds Portion
of the CDT Receipts available on such Remittance Date is less than $15.0 million,
the County Manager shall remiton the.RemittanceDatetothe City.asanadvance the
balance due from non-ad valorem general fund revenues. Notwithstanding the
foregoing, the County shall reimburse itself for the advance of such funds upon a
subsequent issuance by the County of bonds that are secured by a first lien on CDr
Receipts.
F. Section I.D. 4 of the Amended 1996 Interlocal is hereby deleted in its entirety and replaced
with the following.
4.(8). The.folIowing paymemsJ:
2001"- ~Q)T""'-""lIy1beCclulllyill""Y_200l fD _of$3r,m,748
2002 - 2S% ofCDT Receipla receiwd lIy1be County in FiscaLV_ 2002 in _of$33,729,341
2003 - 2S%ofCDTReceiplaRCeiwd lIylbe County in PiIcaI V_2OO3 In __ ofS36,090,39S
2004 - 2S% ofCDT Receipla receiwd lIylbe County In PiIcaI V_ 2004 in _of$38,6I6,722
200S - 100% ofCDT Receipla RCeiwd lIy die County in FiacaI Y_ 2005 ~lbIIl $40,547,558 but IeAlbIIl 541,536,146
2006 - 90% ofCDT Receipla RCeiwd by die County in F'1ICaI Yea- 2006.-lbIIl 542,574,936 but leA than $44,676,279
2007 - 80% of COT Receipla received by die County in Fisc:al Yea- 2007 .-than $44,703,683 but less than $48,053,806
2008 - 70% of COT Receipla rcceiwd by die County in FiIcaI Yea- 2008.-lbIIl $46,938,867 but IeAlbIIl SSI,686,674
2009 - 60% of CDT Receipla rcceiwd by die County in FiIcaI Yea- 2009 sreaeer lbIIl 549,28S,811 but less lbIIl SSS,s94,I86
2010 - SO%ofCOT RIlceipts n:c:eivod by the County in FiIcaI Y_ 2010 sreaeerlblll SSl,7SO,101 but less lbIIl SS9,797,I07
2011 - SO% ofCDT Receipla RCeiwd by the County in Fiscal Yea- 2011 tpalerlblll $54,337,606 but less lbIIl $64,317,768
2012 - SO% ofCDT Receipla received by Ibe County in Fiscal Yea- 2012 sreaeer than SS7 ,lIS4,487 but less than 569,180,191
2013 - SO% of COT Receipla RCeiwd by the County in Fisc:al Vea- 2013 .- than SS9,907 ,211 but less than $74,410,214
2014 - SO% ofCDT Receipla rcceiwd by die County In Fisc:al Yea- 2014 paII:r lbIIl S62,!102,S7I but less lbIIl S80,03S,626
WIS. ,SO%ofCDT Receipla received by die Countyln FiIcaI Y_ 2015 tpalerthan 566,047,700 but IeAlbIIl $86,0B6,319
2016 - SO% of COT Receipla n:c:eivod by die County in FiIcaI V_ 2016 sreaeer lbIIl 569,3S0,CllIS but less lbIIl $92,S94,44S
2017 - SO% ofCDT Receipts receiYcd by die County in FiIcaI Yea-2017 paII:r 1II1II $72,817,589 but Jess lbIIl 599,s94,sss
2018 - SO% ofCDT Receipts receiYcd by die County in F'1ICaI Yea- 2018 sreaeer lbIIl $76,458,469 but Jess lh8Il 5107,I23,93S
2019. SO% ofCDT Receipts rcceiwd bydleCounlyin F'1ICaI Yea-2019.-lbID $80,281,392 but Jess lbIIl 511S,222,SOS
2020 - SO% of COT Receipts rcceiwd by die County in Fisc:al Yea- 2020 sreaeer than 584,295,462 but less lbIIl $123,933,326
2021 - SO%ofCDTReceiptsrcceiwdbydleCountyin Fisc:al Yea-2021 sreaeerlblll $88,s10,23S but less than $133,302,687
2022 - SO% ofCDT RIlceipts rcceiwd bylbe Countyln Fiscal Year 2022 sreaeer than $92,93S,747 but less than $143,380,370
2023 - SO% of COT Receipts receiYcd by Ibe County in Fiscal Year 2023 sreaeer than 597,582,s34 but less than $1$4,219,926
2024 - SO% ofCDT Receipts receiYcd by the County in Fiscal Yea-2024 sreaeerlblll $102,461,661 but Jess than 516S,878,9S2
2025 - SO% of COT Receipla rcceiwd by the County in FiIcaI Vea- 2025 peR:r lbIIl 5107,584,744 but less lbIIl 5178,419,400
2026 - SO% of COT Receipts rcceiwd by the County in Fisc:al Vea- 2026 sreaeer than 5112,963,981 but less than 5191,907,907
2027 - SO% of COT Receipts receiYcd by the County in Fisc:al Vea- 2027 .- than 5118,612.180 but less 1II1II 5206,416, 145
2028 - SO% of COT RIlceipts rcceiwd by the County in Fiscal Yea- 2028 grca....1IIIII $124,542,789 but Jess than 5222,021,205
2029 - SO% of COT Receipts receiwd by the County in Fiscal Yea- 2029 paII:r than 5130,769,928 but less than 5238.806,008
2030 - SO% of COT Receipts received by die County in Fiscal Vear 2030 grca....than $137,308,425 but less than $256,8S9,742
2031 - SO% of COT Receipts recciwd by the County in Fisc:al Year 2031 greater than $144,173,846 but less than $276,278,339
2032. SO% of COT Receipts receiYcd by the County in Fiscal Year 2032 grca....than $IS1,382,s38 but less than 5297,164,981
2033 - SO% of COT Receipts receiwd by the COIDlty in Fiscal Vear 2033 grca....1IIIII $158,9SI,66S but Jess than 5319,630,654
2034 - SO% of COT Reccipts rccciwd by the COIDltyin Fiscal Year 2034 grcaIa'than $166,899,248 but less than $343,794,731
203S - SO% of COT Receipts rccciwd by the County in Fiscal Year 2035 grcaIa'than $17S,244,211 but less than 5369,785,613
2036. 50% of COT Receipts rcceiwd bylbe County in Fiscal Year 2036 grcaIa' than $184,006,421 but less than $397,741,405
2037 - SO% of COT Receipts receiwd by the County in Fiscal Year 2037 greater than $193,206,742 but less than 5427,810,655
2038 - SO% of COT Receipts rccciwd by the County in Fiscal Year 2038 grca.... than 5202,867,080 but less than 5460.153,141
2039 - SO% of COT Receipts rccciwd by the COIDlty in Fiscal Year 2039 grca.... than $213,010,433 but less than 5494.940,718
2040 - SO% of COT Receipts rccciwd by the COIDlty in Fiscal Year 2040 greater than 5223,660.9S5 but less than SS32,358,236
IAll years listed above are fiscal years ending September 30; all COT Receipts are based on Current COT Rate,
2
C\
taxes which would have been produced by the rate upon which the tax is levied each
year by the County, exclusive of any debt service millage; upon the total of the assessed
value of the taxable real property in the geographic area specifically described in
Exhibit A for the tax year 1976. Such annual payments shall continue until September
30,2016. In the year 2017, the payment amount shall be forty-five percent (45%) of
the difference between (a) the amount of general Countywide operating ad valorem
taxes levied each year by the County, exclusive of any amount from any debt service
millage, on the assessed value of the taxable real property contained within the
geographic boundaries specifically described in Exhibit A to this Amendment and (b)
the amount of general Countywide operating ad valorem taxes which would have been
produced by the rate upon which the tax is levied each year by the County, exclusive of
any debt service millage. upon the total of the assessed value of the taxable real
property in the geographic area specificallydesaibedin Exhibit' A fortbctax year
1976. The payments under this subparagraph 4(i) shall end the earlier of September 30,
2017, or when the total amount remitted by the County to the City under this
subparagraph 4(i) reaches $45 million. The total amount remitted by the County to the
City pursuant to, this subparagraph 4(i) shall be expended by the City for any need
identified by the City, which need would be an eligible use for COT or Municipal
Tourist Resort Tax receipts and all, or any, of the payments made under this
subparagraph 4(i) may be pledged by the City as security for any indebtedness incurred
by the City to fund any capital costs. The payments in this subparagraph 4(i) are in
addition to the GOB Program bond proceeds identified in paragraph H above.
(ii) In the event there is no GOB Program placed on the November, 2004, ballot or in the
event that the project related to the expansion or enhancement of the Miami Beach
Convention Center is NOT approved by the voters as part of the November, 2004,
GOB Program, commencing October 1, 2005, the County shall annually appropriate
and remit to the Cityno later than January 1 of the following year an amount ~uivalent
to twenty percent (20%) of the difference between (a) the amount of general
Countywide operating ad valorem taxes levied each year by the County, exclusive of
any amount from any debt service millage, on the assessed value of the taxable real
property contained within the geographic boundaries specifically described in Exhibit
A to this Amendment and (b) the amount of general Countywide operating ad valorem
taxes which would have been produced by the rate upon which the tax is levied each
year by the County, exclusive of any debt service millage, upon the total of the assessed
value of the taxable real property in the geographic area specifically described in
Exhibit A for the tax year 1976. Such annual payments shall continue through
September 30, 2016, at which time payment amount shall increase to forty-five percent
(45%) of the difference between (a) the amount of general Countywide operating ad
valorem taxes levied each year by the County, exclusive of any amount from any debt
service millage, on the assessed value of the taxable real property contained within the
geographic boundaries specifically described in Exhibit A to this Amendment and (b)
the amount of general Countywide operating ad valorem taxes whiCh would have been
produced by the rate upon which the tax is levied each year by the County, exclusive of
any debt service millage, upon the total of the assessed value of the taxable real
4
I {
STATE OF FLORIDA
)
)
)
SS:
COUNTY OF MIAMI-DADE
I, HARVEY RUVIN, Clerk of the Circuit Court in and for Miami-Dade County,
Florida and Ex-Officio Clerk of the Board of County Commissioners of Said County,
Do Hereby Certify that the above and foregoing is a true and correct copy of
Resolution No. R-375-04 adopted by said board of County Commissioners at its
meeting held on MARCH 16, 2004.
IN WITNESS WHEREOF, I have hereunto set my hand and official seal on
this 24TI1 day of March A.D. 2004.
CD
~~t1'-r
~~
HARVEY RUVIN, Clerk
Board of County Commissioners
Dade County, Florida
By
Board of County Commissioners
Miami-Dade County, Florida