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Resolution 2023-32789RESOLUTION NO, 2023-32789 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE FINAL OPERATING BUDGET FOR THE NORTH BEACH COMMUNITY REDEVELOPMENT AREA FOR FISCAL YEAR 2024. WHEREAS, on July 28, 2021, the North Beach CRA Board adopted Resolution No. 005- 2021 and the City Commission also adopted Resolution No. 2021-31817 respectively approving the Interlocal Agreement by which Miami -Dade County delegated to the City certain redevelopment powers, including but not limited to the creation of the North Beach Community Redevelopment Area and implementation of the North Beach Community Redevelopment Plan; and WHEREAS, pursuant to Section 189.016(3), Florida Statutes, the governing body of special districts such as the North Beach CRA, must adopt a budget resolution each fiscal year; and WHEREAS, pursuant to Section 163.387, Florida Statutes, moneys in the Trust Fund may be expended for undertakings of the North Beach CRA as described in the Redevelopment Plan pursuant to an annual budget adopted by the North Beach CRA Board) and only for the purposes specified by Statute; and WHEREAS, project -related expenditures for FY 2024 account for approximately $386,000, which include $186,000 allocated for community policing initiatives, $100,000 for enhanced Code Compliance in the North Beach CRA to continue to provide enhanced levels of staffing and services throughout the area, and $100,000 to promote additional cleanliness and beautification; and WHEREAS, the budget also includes $170,000 for a Commercial Fagade Improvement Program in the Normandy Fountain/Rue Vendome Plaza area to e improve area aesthetics and promote business attraction and retention, $120,000 for a Residential Property Improvement Program to promote the maintenance of naturally occurring affordable housing stock and promote resiliency, $135,000 for Arts & Culture related tourism and branding, and $80,000 for small business development; and WHEREAS, administrative expenditures account for $34,000, which include a satellite office within the North Beach CRA district, of which lease and maintenance costs are shared with the Miami Beach Building Department on a prorated basis; and WHEREAS, other expenditures include $13,000 for the County's administration fee, which is equivalent to 1.5% of the County's respective FY 2024 tax increment financing (TIF) payment; $10,000 for the contribution to the City for administrative expenditures based on a cost allocation study; a $194,000 set -aside for workforce housing and affordable housing based on 10% of the combined FY 2024 TIF revenues; and a $791,000 set -aside for future projects; and WHEREAS, the Executive Director of the North Beach Community Redevelopment Agency recommends approval of the final FY 2024 operating budget for the North Beach CRA. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby adopt the final operating budget for the North Beach Community Redevelopment Area for FY 2024 as outlined below and further detailed in the attached Exhibit «A „ Commercial Fagade Improvement Program $170,000 Residential Property Improvement Program 120,000 Community Policing 186,000 Enhanced Code Compliance 100,000 Cleanliness and beautification 100,000 Administrative expenditures 34,000 Arts & Culture 135,000 Small Business Development 80,000 County Administration Fee 13,000 City Administration Fee (Cost Allocation) 10,000 Set -aside for Workforce and Affordable Housing 194,000 Set -aside for future projects 791,000 Total FY 2024 Budget $1,933,000 PASSED AND ADOPTED this 2711 day of September 2023. ATTEST: SEP Z 8 1023 X�2� A� Dan Gelber, Chairperson Rafael t. Granado, Secretary '.1KORP10R.ATED APPROVED AS TO +-..2 �'- FORM & LANGUAGE & FOR EXECUTION 5-10-L3 cityAtWmey P A-t IWa 2 FY 2022 FY 2023 FY 2024 FY 2021 Revenues and Other Sources of Income Actual Actual Adopted Proposed Tax Increment - City $ $ $ 577,000 $ 1,082,000 Tax Increment - County 458,000 851,000 TOTAL REVENUES $ $ 1,035,000 $ 1,933,000 Admin/Operating Expenditures CMB Administration $ $ $ 18,000 $ 44,000 County Admin Fee 7,000 13,000 Total Admin/Operating Expenditures $ - $ - $ 25,000 $ 57,000 Project Expenditures Small Business Development $ $ $ 49,000 $ 80,000 Beautification 210,000 290,000 Arts & Culture 52,000 135,000 Enhanced Services: Community Policing 100,000 186,000 Code Compliance 88,000 100,000 Community Cleanliness 16,000 100,000 Total Project Expenditures $ $ $ 515,000 $ 891,000 Reserves, Debt Service and Other Obligations 10 Set -aside for Affordable & Workforce Housing $ $ $ 104,000 $ 194,000 Set -aside for Future Projects 391,000 791,000 Total Reserves, Debt, & Other Obligations $ - $ $ 495,000 $ 985,000 TOTAL EXPENDITURES AND OBLIGATIONS $ - $ - $ 1,035,000 $ 1,933,000 SURPLUS / (GAP) 0 0 0 $ 0 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 Expenditure Summary Project Expenditures ■ FY 2022 Actuals ■ FY 2023 Adopted ■ FY 2024 Proposed Resolutions - R7 F MIAMIBEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Alina T. Hudak, City Manager DATE: September 27, 2023 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE FINAL OPERATING BUDGET FOR THE NORTH BEACH COMMUNITY REDEVELOPMENT AREA FOR FISCAL YEAR 2024. JOINT CITY COMMISSION AND NORTH BEACH COMMUNITY REDEVELOPMENT AGENCY SUPPORTING SURVEY DATA See attached memorandum. FINANCIAL INFORMATION See attached memorandum. Applicable Area North Beach Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? Yes Legislative Tracking Economic Development No ATTACHMENTS: Description ❑ North Beach CRA FY 2024 Budget Memorandum ❑ Attachment A— FY 2024 North Beach CRA Budget (Exhibit A) ❑ Attachment B — FY 2024 North Beach CRA Work Plan Page 289 of 550 MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Dan Gelber and Members of the City Commission FROM: Alina T. Hudak, City Manager DATE: September 27, 2023 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE FINAL OPERATING BUDGET FOR THE NORTH BEACH COMMUNITY REDEVELOPMENT AREA FOR FISCAL YEAR 2024. STRATEGIC PLAN SUPPORTED Organizational Innovation — Ensure strong fiscal stewardship RECOMMENDATION The Administration recommends that the Mayor and City Commission of the City of Miami Beach adopt the attached Resolution approving the final budget for the North Beach Community Redevelopment Area for Fiscal Year (FY) 2024. BACKGROUND On July 17, 2019, the City Commission adopted Resolution No. 2019-30892, accepting a preliminary report concerning a finding of necessity for the redevelopment of certain area of North Beach, and requesting that Miami -Dade County delegate redevelopment powers to the City. On July 8, 2020, the Miami -Dade County Board of County Commissioners ("BCC") approved Resolution No. R-619-20, delegating authority to the City to create the North Beach Community Redevelopment Agency (North Beach CRA), including direction to draft the North Beach CRA Redevelopment Plan and negotiate an Interlocal Agreement among the City, North Beach CRA, and Miami -Dade County to govern the redevelopment process. Pursuant to the county's delegation of authority, the City undertook a significant public engagement effort to prepare the Redevelopment Plan. Simultaneous with the City's preparation of the Redevelopment Plan, in order to delineate their respective areas of responsibility with respect to the redevelopment of the Redevelopment Area, the City, North Beach CRA and Miami -Dade County administration negotiated an interlocal cooperation agreement (the "Intedocal Agreement"). On February 10, 2021, by adopting Resolution No. 2021-31596, the Mayor and City Commission officially created the North Beach CRA pursuant to Section 163.357, Florida Statutes and declared the Mayor and City Commission to be the governing body of the North Beach CRA (the "North Beach CRA Board"). On May 12, 2021, pursuant to Resolution No. 003-2021, the Chairperson and Members of the North Beach CRA Board adopted the Redevelopment Plan and transmitted the Plan to the City Commission for approval, as required by Section 163.360(5), Florida Statutes. Additionally, Page 290 of 550 Commission Memorandum FY 2024 North Beach CRA Operating Budget September 27, 2023 Page 2 of 3 pursuant to Resolution No. 004-2021, the Chairperson and Board Members approved the Interlocal Agreement, authorized the Chairperson and Secretary to execute the Interlocal Agreement and further, authorized the transmittal of the executed Interlocal Agreement to the BCC for its consideration and approval. Likewise, on May 12, 2021, pursuant to Resolution No. 2021-31709, the Mayor and City Commission approved the Redevelopment Plan for the North Beach CRA and authorized its transmittal to Miami -Dade County. Contemporaneously, pursuant to Resolution No. 2021-31710, the Mayor and City Commission approved the Interlocal Agreement, authorized the Mayor and City Clerk to execute the Interlocal Agreement, and further, authorized the City Manager to transmit the executed Interlocal Agreement to the BCC for its consideration and approval. On July 20, 2021, the BCC approved Ordinance No. 21-70 establishing the North Beach CRA Trust Fund and Resolution No. R-696-21 approving the Redevelopment Plan and the final, negotiated Interlocal Agreement, as amended. On July 28, 2021, the North Beach CRA Board adopted Resolution No. 005-2021 accepting the Interlocal Agreement. The City Commission also approved the Interlocal Agreement via Resolution No. 2021-31817. Pursuant to Section 189.016(3), Florida Statutes, the governing body of special districts such as the North Beach CRA, must adopt a budget resolution each fiscal year. As noted in Section 163.387, Florida Statutes, moneys in the Trust Fund may be expended for undertakings of the North Beach CRA as described in the Redevelopment Plan pursuant to an annual budget adopted by the North Beach CRA Board) and only for the purposes specified by Statute. Additionally, the Interlocal Agreement stipulates that the City Commission approve the North Beach CRA annual budget prior to submittal to Miami -Dade County. ANALYSIS North Beach CRA Revenues Based on the 2023 Certification of Taxable Value provided by the Miami -Dade County Property Appraiser on July 1, 2023, property values in the North Beach CRA were $1.73 billion reflecting an increase of approximately 9.1% compared to the 2022 Certification of Taxable Value of $1.58 billion. For FY 2024, the City's portion of the tax increment revenue totals approximately $1.1 million, and the County's portion of the tax increment revenue totals approximately $851,000. North Beach CRA Expenditures Project -related expenditures for FY 2024 account for approximately $386,000, which include $186,000 allocated for community policing initiatives, $100,000 for enhanced Code Compliance to continue to provide enhanced levels of staffing and services throughout the North Beach CRA Redevelopment Area, and $100,000 to promote additional cleanliness and beautification. The budget also includes $170,000 for a Commercial Facade Improvement Program in the Normandy Fountain/Rue Vendome Plaza area to improve area aesthetics and promote business attraction and retention, $120,000 for a Residential Property Improvement Program to promote the maintenance of naturally occurring affordable housing stock and promote resiliency, $135,000 for Arts & Culture related tourism and branding, and $80,000 for small business development. Page 291 of 550 Commission Memorandum FY 2024 North Beach CRA Operating Budget September 27, 2023 Page 3 of 3 Administrative expenditures account for $34,000, which include a satellite office within the North Beach CRA district, of which lease and maintenance costs are shared with the Miami Beach Building Department on a prorated basis. Other expenditures include $13,000 for the County's administration fee, which is equivalent to 1.5% of the County's respective FY 2024 tax increment financing (TIF) payment; a $10,000 contribution to the City for administrative expenditures based on a cost allocation study; a $194,000 set -aside for workforce housing and affordable housing based on 10% of the combined FY 2024 TIF revenues; and a $791,000 set -aside for future projects. CONCLUSION The FY 2024 North Beach CRA budget is $1.933 million. To promote economic investment, growth and revitalization within the North Beach Community Redevelopment Area and to address the existing and future obligations of the North Beach CRA, it is recommended that the Mayor and City Commission of the City of Miami Beach adopt the attached Resolution, which establishes the final budgets for the North Beach Community Redevelopment Area (North Beach CRA) for FY 2024. Attachment A — FY 2024 North Beach CRA Operating Budget (Exhibit A) Attachment B — FY 2024 North Beach CRA Work Plan ATH/RW/HS/LW Page 292 of 550 Attachment A — FY 2024 North Beach CRA Operating Budget (Exhibit A) .. FY 2021 FY 2022 FY 2023 FY 2024 Revenues and Other Sources of Income Actual Actual Adopted Proposed Tax Inxrement - City $ $ $ 577,000 $ 1,082,000 Tax Increment - County 458,000 851,000 TOTAL REVE WES - - 1,035,000 1,933,000 Admin/Operating Expenditures CM8 Administation $ $ $ 18,000 $ 44,000 County Admin Fee 7,000 13,000 To1o1 Ads/Operating Expen&kmets - 25AM S S7,000 Project Expenditures Small Business Development $ $ $ 49,000 $ 80,000 Beautification 210,000 290,000 Arts & Culture 52,000 135,000 Enhanced Services Community Policing 100,000 186,000 Code Compliance 88,000 100,000 Community Cleanliness 16,000 100,000 Total Project Expenditures $ $ - 515,000 $ 8911000 Reserves, Debt Service and Other Obligations 10% Seknide for Affordable 6 Workforce Housing $ $ $ 104,000 $ 194,000 Set -aside for Future Projects 391,000 791,000 Told bserves, Debt, a ONnr Ob4a"U - - 495.000 9RS,000 TOTAL DfP041f1URES AND OBLIGATIONS - - 1,03 A= 1,933,000 SURPLUS / (GAP) 0 0 0 0 Expenditure Summary Project Expenditures s FY 2022 Actuals ■ FY 2023 Adopted a FY 2024 Proposed Page 293 of 550 NORTH BEACH COMMUNITY REDEVELOPMENT AGENCY Fiscal Year 2024 Proposed Operating Budget and Work Plan North Beach Community Redevelopment Agency 1755 Meridian Avenue Miami Beach, FL 33139 Board of Directors Dan Gelber, Chair Kristen Rosen Gonzalez, Board member Laura Dominguez, Board member Alex J. Fernandez, Board member Steven Meiner, Board member Ricky Arriola, Board member David Richardson, Board member Micky Steinberg, Board member Executive Staff Alina T. Hudak, Executive Director Rafael Paz, General Counsel Rafael Granado, Secretary North Beach CRA Advisory Committee Jose Smith, Chair Betsy Perez, Vice Chair Ronnie Issenberg Elizabeth Latone Romina Orozco-Encio Manning Salazar PAOi AVR6b 459 NORTH BEACH COMMUNITY REDEVELOPMENT AGENCY Yrf~•.Y� fir � tl.i �.;ti irl� •Ai ! 3 -! T. ,. MJ �4A. .fi i+r •� ?; , M'v�f `1j•Cr �wY` P_�� 1 �Y QgFr� i i. �•',.Z�i .oa. ....k�i ea<,T _ i �4:•% .� raw ice_ y:.-�t ./ r •'i. 44 As its .r" •-4 ,r.1-i�'A . �Tr "�.^,'." r:� T 117 t. :4�^�••-Jk-jF '.r yq�-i- dip :� �^.�fl:.t , �} � ice`.•+ ',� � N���♦S! 'r �' „� >, r .- i* '"' '�"' 1i `. �'��• � F• r 1. • +s: MESSAGE FROM THE EXECUTIVE DIRECTOR ALINA T. HUDAK Honorable Chair Dan Gelber and Board of Directors: I am pleased and honored to present for your consideration the Fiscal Year 2024 proposed budget for the North Beach Community Redevelopment Agency. Fiscal Year 2023 represented the inaugural budget year for the North Beach CRA following establishment and approval by Miami -Dade County on July 20, 2021. The Proposed Operating Budget and Work Plan for Fiscal Year 2024 herein, commencing on October 1, 2023 and ending on September 30, 2024, is the second budget for the North Beach CRA. We are excited bythe second consecutive year of significant growth in the Redevelopment Area following the 2021 base year. The combined tax increment revenue from the City of Miami Beach and Miami -Dade County totals approximately $1 .9 million reflecting an increase of approximately 87% over the prior year. The Redevelopment Area has experienced a 21.85% increase in taxable values from $1.42 billion in the base year to $1.73 billion in the current year, which is symbolic of the potential of the area. On June 21, 2023, the Miami -Dade County Board of County Commissioners approved (ratified) the North Beach CRA Fiscal Year 2023 Budget, as required by Florida law. Following this approval and pursuant to the Interlocal Agreement, the North Beach CRA then began to expend budgeted funds to implement the Redevelopment Plan. In planning for the future, the executive team, with input from the North Beach CRA Advisory Committee, has identified early short-term and long-term strategies, initiatives, and programs based on the approved Redevelopment Plan, that should enhance the area and lay the foundation for future economic investment. Similar to the prior budget year, the proposed budget for Fiscal Year 2024 recommends a prudent set aside of approximately 50% of tax increment financing revenue for future projects such as affordable and workforce housing and infrastructure and major projects that are essential to the community. The North Beach CRA district, and North Beach community, is at a pivotal point with the completion of the Beachwalk and Rue Vendome Plaza renovation, progress on planning for the Byron Carlyle Theater through the City's Arts and Culture General Obligation Bond, implementation of public improvements on Ocean Terrace, and several other approved projects in the North Beach Town Center zoning district, including 72 Park Residences. The area is poised for significant economic investment which may include the redevelopment of the Deauville Hotel site, development of the 72", Street Community Complex, and major resiliency projects. We are confident that the tax increment revenue will be accelerated by direct and indirect economic development resulting from North Beach CRA programs and investments. The proposed budget contains allocations for a beautification program including, but not limited to, commercial facade and residential property improvement programs; enhanced services including community policing, code compliance, and sanitation; arts and culture -related branding, communications, and marketing; small business development programs and services; and administrative expenses including administrative fees as required by Miami -Dade County, development of a short-term strategic plan, and the operations of the North Beach CRA office within the Redevelopment Area. Establishing a solid organizational and fiscal foundation for the North Beach CRA is essential to long-term success. I would like to thank the greater Miami Beach community, led by Chair Dan Gelber, North Beach CRA Board of Directors, and the North Beach CRA Advisory Committee for continued leadership and guidance in the budget and planning process for one of the City's most unique and promising areas. It is our collective collaboration, innovation, and fiscal conscientiousness that will elevate and invigorate North Beach. In addition to the Board of Directors and Advisory Committee, the North Beach CRA appreciates the contributions of Eric Carpenter, Deputy City Manager; Rickelle Williams, Assistant City Manager/Economic Development Director; Jason Greene, Chief Financial Officer; David Martinez, Capital Improvement Projects Director; Tameka Otto Stewart, Budget Director; Richard Ajami, Budget Officer; Kyle Teijeiro, Senior Budget Analyst; and Luis Wong, Administrative Services Manager. Respectfully submitted, 7, Page 296 of 550 461 NORTH BEACH COMMUNITY REDEVELOPMENT AGENCY ORGANIZATIONAL CHART 462 Page 297 of 550 NORTH BEACH COMMUNITY REDEVELOPMENT AGENCY BACKGROUND BACKGROUND CONT'D The City of Miami Beach is recognized and admired regionally, nationally, and internationally as a dynamic and vibrant destination. Between the warm climate, sprawling beach, and various cultural and lifestyle amenities, Miami Beach has distinguished itself as a thriving hospitality and tourism mecca. The City's significant investment in the arts, aesthetics, recreation, public safety, and climate resiliency, coupled with the depth and quality of residential and educational offerings, have mode the City an ideal live -work - play environment. With tremendous quality of life characteristics and strategic, measured development and preservation over the years, the City has, overall, maintained and improved its status as a major driver of the Miami -Dade County economy and brand. Notwithstanding, in comparison with other areas of the City, the North Beach area has trailed in the level of redevelopment, revitalization, economic growth, and investment. Substantial commercial vacancy, obsolete housing stock, limited new development, environmental and resiliency challenges, and depressed household income are among the challenges facing North Beach. There have been several efforts by the City of Miami Beach to encourage growth and investment in North Beach, including but not limited to the North Beach Revitalization Plan, the North Beach Master Plan (Plan NoBe), the West Lots Plan, and other initiatives focusing on climate resiliency, environmental sustainability, transportation, economic development, affordable housing, historic preservation, and land development regulations. The residents, Mayor, and City Commission have also approved General Obligation Bond (G.O. Bond) funding for major improvement projects in the North Beach area. On July 17, 2019, the City Commission adopted Resolution No. 2019.30892, accepting a preliminary report concerning a finding of necessity for the redevelopment of a certain area of North Beach, and requesting that Miami -Dade County delegate redevelopment powers to the City. On July 8, 2020, the Miami -Dade County Board of County Commissioners ("BCC") approved Resolution No. R-619-20, delegating authority to the City to create the North Beach Community Redevelopment Agency (North Beach CRA), including direction to draft the North Beach CRA Redevelopment Plan and negotiate an Interlocal Agreement among the City, North Beach CRA, and Miami -Dade County to govern the redevelopment process. Page 298 of 550 463 NORTH BEACH COMMUNITY REDEVELOPMENT AGENCY BACKGROUND CONT'D Pursuant to the Couny's delegation of authority, the City undertook a significant public engagement effort to prepare the Redevelopment Plan. Simultaneous with the Ciy's preparation of the Redevelopment Plan, in order to delineate their respective areas of responsibility with respect to the redevelopment of the Redevelopment Area, the City, North Beach CRA, and County Administrations negotiated an interlocal cooperation agreement (the "Interlocal Agreement"). On February 10, 2021, by adopting Resolution No. 2021-31596, the Mayor and City Commission officially created the North Beach CRA pursuant to section 163.357, Florida Statutes, and declared the Mayor and City Commission to be the governing body of the North Beach CRA. On May 12, 2021, pursuant to Resolution No. 003-2021, the Chairperson and Members of the North Beach CRA Board adopted the Redevelopment Plan and transmitted the Plan to the City Commission for approval, as required by Section 163.360(5), Florida Statutes. Additionally, pursuant to Resolution No. 004- 2021, the Chairperson and Board members approved the Interlocal Agreement, authorized the Chairperson and Secretary to execute the Interlocal Agreement, and further, authorized the transmittal of the executed Interlocal Agreement to the BCC for its consideration and approval. Likewise, on May 12, 2021, pursuant to Resolution No. 2021-31709, the Mayor and City Commission approved the Redevelopment Plan for the North Beach CRA and authorized its transmittal to the County. Contemporaneously, pursuant to Resolution No. 2021-31710, the Mayor and City Commission approved the Interlocal Agreement, authorized the Mayor and City Clerk to execute the Interlocal Agreement, and further, authorized the City Manager to transmit the executed Interlocal Agreement to the BCC for its consideration and approval. On July 20, 2021, the BCC approved Ordinance No. 21-70 establishing the North Beach CRA Trust Fund and Resolution No. R-696-21 approving the Redevelopment Plan and the final, negotiated Interlocol Agreement, as amended. On July 28, 2021, the North Beach CRA Board adopted Resolution No. 005-2021 accepting the Interlocal Agreement. The City Commission also approved the Interlocal Agreement via Resolution No. 2021-31817. The North Beach CRA's governing documents and legislation may be accessed at its website: https://www.miamibeachfi.gov/northbeochcra. North Beach Community Redevelopment Agency Redevelopment Ptan May 2021 PURPOSE STATEMENT The North Beach CRA Redevelopment Plan envisions a vibrant, resilient community with a Town Center, increased housing density, preservation of historic structures, access to recreational amenities, available public parking, and additional restaurant and retail offerings to support new and current residents. The Redevelopment Plan concepts and approaches cover a range of project types across several implementation dimensions such as scale, scope, cost, time duration, and potential impact outcomes. The Redevelopment Plan presents goals and strategies which may be implemented using funding from tax increment revenue derived from within the designated boundary over the 30-year life of the North Beach CRA. REDEVELOPMENT PLAN GOALS 1. Provide Economic Development Opportunities for Businesses, Property Owners, and Residents 2. Invest in Climate Resilience, Sustainabiliy & Infrastructure 3. Strengthen Cultural Arts, Branding & Marketing, and Communication 4. Protect and Enhance the Neighborhood Character 5. Improve the Quality of Life of Residents and Visitors 6. Leverage Resources for Community Redevelopment Page 299 of 550 464 NORTH BEACH COMMUNITY REDEVELOPMENT AGENCY INTERLOCAL AGREEMENT The adopted boundaries of the Redevelopment Area delineate the area within which tax revenue will be generated and captured during the 30-year life of the North Beach CRA, for expenditure on investments and projects identified in the Redevelopment Plan. As negotiated and approved, the Interlocal Agreement provides for material financial terms agreed upon by the City of Miami Beach, the North Beach CRA, and Miami -Dade County. The Interlocal Agreement contains the following provisions governing use of TIF revenue: One member of the County Commission, or a County Commission designee, may be appointed to serve on the North Beach CRA's Board of Commissioners (in addition to the other members appointed to the North Beach CRA's Board of Commissioners (i.e., the City Commission). Said County Commissioner, or designee, shall be vested with the same rights, duties, and obligations as any other North Beach CRA Board member; and No more than twenty percent (20%) of the total tax increment funds deposited annually into the Trust Fund by the City and the County shall be used for total administrative expenses (including indirect and overhead expenses which may not exceed six percent (6%) of the total contemplated administrative expenses to be spent under the Redevelopment Plan); and The County shall charge, and the North Beach CRA shall pay to the County, no later than March 31, an annual administrative fee ("County Administrative Fee"). This County Administrative Fee shall be 1.5% of the County's payment to the North Beach CRA. The County Administrative Fee shall not be included in the (20%) limit on administrative expenses defined in this section; and INTERLOCAL AGREEMENT CONT'D • The City and the County hereby agree to contribute 60 percent (60%) of the tax increment funds derived from the Redevelopment Area on an annual basis; and The North Beach CRA budget for expenditures funded by tax increment revenues shall be capped, so that an amount equal to the TIF revenues paid into the Trust Fund by the County and the City attributable to 10 percent (10%) of the incremental value in the Area, shall remain unappropriated and un-expended, except for the purpose of funding projects associated with affordable and workforce housing; and Commencing in the year in which the combined annual contribution into the Trust Fund by the County and the City is or exceeds $1 million, this 10 percent (10%) shall only be used for the purpose of funding projects associated with affordable and workforce housing, including but not limited to, the construction, preservation, and rehabilitation of such housing; and • The North Beach CRA shall not budget in any fiscal year more than ten percent (10%) of the value of the City and County tax increment payment for that year on capital maintenance activities or community policing, respectively; and • Beginning FY 2049-50, the County, North Beach CRA, and the City will negotiate an interlocal agreement to account for the sunset of the North Beach CRA. Ocean Terpra�9e 3t9O ofi2pse 55endering 465 NORTH BEACH COMMUNITY REDEVELOPMENT AGENCY ACCOMPLISHMENTS AND ACTIVITIES Establishment of North Beach CRA District Office and Small Business Development During the November 17, 2021 meeting of the North Beach CRA Advisory Committee, the Committee recommended establishing a North Beach CRA office located within the district boundaries. The Committee emphasized the benefits of having staff accessible within the CRA district and suggested that initial activities prioritize support for small businesses. On September 28, 2022, approval of the North Beach CRA's FY 2023 Budget included funding for a North Beach CRA office space. Through a collaborative effort across City of Miami Beach departments, the North Beach CRA district office now occupies a portion of the Miami Beach Building Department's leased space at 962-964 Normandy Drive. On January 19, 2023, the North Beach CRA held a ribbon cutting ceremony open to the public and attended by elected officials, City staff, and community stakeholders. As the North Beach CRA does not yet have dedicated staff, the Administration must maximize use of limited resources to operate the office space. Economic Development Department staff serve as an informational resource guide during inquiries by telephone and in -person from Miami Beach residents and businesses in regard to all topics relating to redevelopment, and economic and business development. Through outreach efforts, the North Beach CRA has engaged with approximately 1524 businesses and residents since the District office opened. Staff also conducts site visits and field canvassing with various City departments providing municipal services throughout the CRA district. In addition, staff also attend community events, such as activations and meetings hosted by the Normandy Fountain Business Association, to promote the CRA and its efforts to elevate the community. ACCOMPLISHMENTS AND ACTIVITIES CONT'D Approval and Launch of Commercial Fagade Improvement Prg9rom and Residential Property Improvement Program On June 28, 2023, the North Beach CRA Board approved two new CRA beautification programs, a Commercial Facade Improvement Program and Residential Property Improvement Program, initially targeting properties in the vicinity of Normandy Fountain/Rue Vendome Plaza. As approved in the North Beach CRA FY 2023 Budget, the programs aim to enhance and improve the district's existing building stock by helping subsidize private property beautification, maintenance, and resiliency upgrades. These exterior improvements may include, but are not limited to, new windows, doors, lighting, and signage. The Commercial Facade Improvement Program assists commercial properties, and the Residential Property Improvement Program targets the district's multifamily housing stock within the program area. Both programs are structured as a reimbursable matching grant incentive available to properties in the Program area. Following an application and approval process, eligible property owners/businesses are reimbursed for up to 70% of costs with a cap of $20,000 for eligible improvements. The Residential Property Improvement Program is also aimed at promoting housing affordable as Program participants/eligible properties must have a majority of residential units leased to households earning up to140% of the area median income for Miami -Dade County. For three (3) years following award, Program participants may not increase rents for the eligible units by more than 3% per year. Information about each Program is being shared with area groups through in person meetings and webinars. Page 301 of 550 466 NORTH BEACH COMMUNITY REDEVELOPMENT AGENCY ACCOMPLISHMENTS AND ACTIVITIES CONT'D Enhanced Services: Community Policing Code Compliance, and Sanitation The North Beach CRA is empowered to provide funding support for enhanced services such as community policing innovations, which is proven to be a useful tool in protecting neighborhoods and improving quality of life. Funding has been utilized for community policing services within the North Beach CRA district boundaries, including crime prevention initiatives, proactive policing, and response to calls for service. Miami Beach Police Department officers have proactively engaged with approximately 150 businesses, issued roughly 150 moving citations, made 62 felony arrests and 151 homeless referrals. The Miami Beach Code Compliance Department has provided enhanced services in the North Beach CRA district. Calls for service and investigations addressing quality of life issues, including enhancement of physical appearance and cleanliness, have served to increase compliance throughout. Code Compliance staff have dedicated an additional 264 hours of service including approximately 86 inspections and 50 violations. The Miami Beach Sanitation Division has diligently provided comprehensive litter control services in the North Beach CRA area, further extending their range of services. As part of their commitment to maintaining cleanliness and promoting a healthy environment, the Division has allocated an average of 18 additional hours per month specifically dedicated to this area. Through these efforts, the Sanitation Division ensures that litter is promptly collected, streets are regularly swept, and public spaces are kept free from debris. By providing this valuable service, the division contributes significantly to enhancing the aesthetic appeal and overall quality of life in the Redevelopment Area. ACCOMPLISHMENTS AND ACTIVITIES CONT'D 4. Affordable and Workforce Housing While at least 10% of the TIF revenue generated must be itemized to fund projects associated with affordable and workforce housing, the North Beach CRA has not yet expended these funds. Rather, the North Beach CRA has set these funds aside for the construction, preservation, and/or rehabilitation of such housing. Once an eligible project or program has been identified, the North Beach CRA will allocate these funds to promote affordable and workforce housing. Note that the Residential Property Improvement Program, described above, does focus on preserving affordable and workforce housing in additional to encouraging beautification. WORKPLAN The North Beach CRA Redevelopment Plan Goals and Implementation Strategies include many initiatives derived from resident and stakeholder suggestions during the Redevelopment Plan development process, best practices, and concepts recommended in previous studies, reports, and master plans. Implementation strategies vary in cost, duration, impact, complexity, and boldness. There are several strategies that may require significant costs to effect visible change. As the Redevelopment Plan and previous related plans are expansive in scope, a primary initiative for Fiscal Year 2024 includes the development of a short-term (3-5 year) strategic plan to focus the initial efforts of the North Beach CRA. In the interim, the proposed immediate focus of the North Beach CRA during its initial years continues to concentrate on actions that can be implemented at little cost, since long-term implementation strategies are typically ongoing or are projects for which funding is not currently available. Short-term strategies that are immediate may include actions addressing, for example, code compliance or marketing and branding initiatives, which involve less expenditure but are visible and impactful, nonetheless. Page 302 of 550 467 NORTH BEACH COMMUNITY REDEVELOPMENT AGENCY PROGRAM AND INITIATIVES PROGRAM AND INITIATIVES CONT'D The Fiscal Year 2024 operating budget recommendation prioritizes six categories of expenditures: M.errVan .row *ask~ w•Mre erit:. - d AA,rni Brm nF carmen f 522.000 SS 1% 1 pe2.000 9 0% .o.a. w '.y TIF Gmeeoear • s.� camrrvq q 1 100.000 9 r% f 166,000 96% can C.Iv s 66.000 es% 6 ,00.000 52% camm ,C. f 16000 +6% f 100000 52% .na 0,l.ln f V000 50% f +15.000 20% /Bia.�s oF.rtcm.i+ s 0000 .1% f 60.000 .,% f 26.000 24% f 67000 29% .r�o.. A6ao.d.Wd--V f 104 am tam f IN 000 +am .�a.. F—Pral.a. f Y, 000 016% f NI 000 .09% s fffun 1. Beautification a. Commercial Fafade Improvement Program: The North Beach CRA has developed a commercial facade improvement program (matching grant) available to businesses located within the Normandy Isles/Rue Vendome Plaza section of the Redevelopment Area. The purpose is to substantially improve the visible appearance and street presence of properties as well as enhance the functionality and sustainabiliy of businesses within this main commercial area. Redevelopment Plan Goal 1: Provide Economic Development Opportunities for Businesses, Property Owners, and Residents. • Section 6.2: Normandy Isles - The Normandy Fountain area, also known as Vendome Plaza, serves as the community and commercial center of Normandy Isle and could develop into a vibrant, pedestrian -oriented shopping district with a strategic combination of protection and enhancement. • Section 8.3: Several initiatives, such as rehabilitation/ beautification grants, will provide funding for businesses and property owners in the CRA to make interior and exterior improvements to their properties. • Section 9.1.1: Business Attraction and Retention - Develop incentive programs to help existing or new property and business owners with aesthetics, repairs, rehabilitations, improvements, land acquisition, and resiliency modifications. • Section 9.4.1: Normandy Isles — Fountain Area - Support redevelopment of sites around the fountain to include retail, Class A office space, and residential. b. Residential Property Improvement Program: The North Beach CRA has developed a residential property improvement program (matching grant) available to residential property owners to promote resiliency, beautification, and historic preservation. The program provides for renovation and rehabilitation of multifamily residential properties to encourage sustainable features, housing affordability and age -in -place opportunities for residents. Redevelopment Plan Goal 4: Protect and Enhance the Neighborhood Character Section 7.5.3: Building Adaptation - Resilient design can also be implemented through residential, commercial and business facade improvement programs. The programs would aim to help the Redevelopment Area to address facades and building systems to properly anticipate and accommodate future extreme weather patterns and natural events. This incentive -based program could also encourage building owners to invest in green infrastructure. • Section 8.3: Several initiatives, such as rehabilitation/ beautification grants, will provide funding for businesses and property owners in the CRA to make interior and exterior improvements to their properties. • Section 9.1.2: Real Estate - Establish protective measures to safeguard housing for existing residents within the CRA consistent with federal requirements. • Section 9.2.1: Resiliency and Sustainabiliy — Develop a climate resiliency incentive program to assist residential and commercial property owners with applicable capital improvements. • Section 9.4: Develop incentive programs to rehabilitate and preserve existing housing stock and/or develop new housing stock; Create programs and incentives to mitigate the costs of historic preservation and rehabilitation; and Create programs and incentives to promote age in place opportunities for existing and new housing stock. Section 9.4.1: North Shore - Partner with multifamily property owners to retain affordable and workforce housing offerings 468 Page 303 of 550 NORTH BEACH COMMUNITY REDEVELOPMENT AGENCY PROGRAM AND INITIATIVES CONT'D 2. Enhanced Services a. Community Policing: The North Beach CRA is empowered to Provide funding to support the development and implementation of community policing innovations, subject to the budgetary limitation set forth in the Interlocal Agreement. Through additional shifts/over time, the Miami Beach Police Department (MBPD) will augment and promote relationship building and trust among officers and residents to encourage the development and effectiveness of crime watch groups. Community policing initiatives will include "Park and Walks" foot patrols to increase visibility in parks and commercial corridors and proactive police activities including quality of life sweeps and drug and traffic enforcement. Redevelopment Plan Goal 5: Improve the Quality of Life for Residents and Visitors • Section 9.5.2: Safety - Work with the Miami Beach Police Department or ambassador programs to develop and implement community policing innovations. PROGRAM AND INITIATIVES CONT'D b. Code Compliance: The North Beach CRA, in cooperation with the MBPD, Miami Beach Fire Department, and Code Compliance Department, will work to create a safe, quality environment for residents and businesses. The CRA will fund two additional 10-hour Code Compliance Officer shifts per week to provide opportunities for community engagement, education, outreach, and enforcement efforts. Redevelopment Plan Goal 4: Protect and enhance the neighborhood character. Section 9.4: Work with the City to ensure property owners are meeting code compliance standards and implement remedies. • Section 9.5.2: Safety — Work with the Miami Beach Code Compliance Department to highlight opportunities and address code -related concerns. Normandy Fountain Rue Vendome g70i��Qntutting February 27, 2022 age U o T U 469 NORTH BEACH COMMUNITY REDEVELOPMENT AGENCY PROGRAM AND INITIATIVES CONT'D PROGRAM AND INITIATIVES CONT'D c. Sanitation: Maintaining clean streets and public and private spaces are critical elements for enhancing a community. As the City plans for additional North Beach staffing for the Public Works Department - Sanitation Division, the North Beach CRA will provide support for waste processing fees associated with the removal of solid waste attributed to illegal dumping within the district. Redevelopment Plan Goal 5: Improve the Quality of Life for Residents and Visitors • Section 9.5.1: Community Spaces - Work with the City to ensure streets are maintained and cleaned regularly. 3. Arts and Culture With cultural anchors and assets within the North Beach CRA, there is an opportunity to promote arts and culture through cultural tourism by leveraging these resources. Art galleries, the Miami Beach Bandshell, Rue Vendome Plaza and other public spaces attract tourists and improve quality of life of residents. The North Beach CRA has already achieved some success in terms of branding with the development of a logo. Further development of the brand strategy is needed to propel the Redevelopment Area. Redevelopment Plan Goal 3: Strengthen Cultural Arts, Branding & Marketing, and Communication Section 9.3.1: Cultural Tourism - Leverage arts and culture as a key community development strategy and a core sector of comprehensive community planning and development; Encourage and support the recruitment of cultural partners and performing arts organizations; Invest and assist in cultivating, preserving, and enhancing the artist community; Explore opportunities to partner or collaborate with cultural organizations with emphasis on those based in Miami Beach; and Promote hotels, restaurants, and retailers with area cultural tours and food fairs or other similar programs. Section 9.3.2: Branding - Develop a logo, campaign strategy, and signage including for outreach and relationship -building to multilingual stakeholders and residents. 4. Small Business Development The North Beach CRA business community is strengthened by the various small businesses and entrepreneurs operating within the commercial and residential districts. Small business development programs and services will enhance business success and provide resources to encourage business attraction, retention, and creation. Redevelopment Plan Goal 1: Provide Economic Development Opportunities for Businesses, Property Owners, and Residents. 470 Page 305 of 550 NORTH BEACH COMMUNITY REDEVELOPMENT AGENCY PROGRAM AND INITIATIVES CONT'D Section 9.1.1: Business Attraction & Retention — Inventory existing businesses to identify complementary businesses for attraction to fill the retail gab identified in the market analysis; Engage with existing business owners to assess and support small business needs, including marketing, rehabilitation, resiliency improvements, labor needs, and employment training; Work with City to allow temporary uses, pop-up activations, retail, and restaurants, whether in vacant shopfronts or on vacant lots; Implement a "Shop local" program; and Host "banker/broker/ developer" events to highlight available land, retail, and office space. 5. Administration General: Administrative expenses for the North Beach CRA ore limited by the Interlocal Agreement which stipulates that no more than 20% of TIF revenue may be used for such costs. The Interlocal Agreement also provides for an Administrative Fee to Miami -Dade County in the amount of 1.5% of its TIF contribution to the Trust Fund. Other administrative expenses include a contribution to the Miami Beach General Fund to cover general costs for internal services as determined by a cost allocation study. The North Beach CRA will also contribute to a portion of personnel costs for a City of Miami Beach Economic Development staff member and the Miami Beach Building Department's lease of commercial office space to allow for a physical presence within the district. PROGRAM AND INITIATIVES CONT'D 6. Affordable and Workforce Housing The Interlocal Agreement stipulates that the North Beach CRA must dedicate at least 10% of TIF revenue for affordable and workforce housing. The funding may be used for renovation, construction, or preservation efforts. The 10% set aside for Fiscal Year 2024 will add to the foundation of funding for housing related projects and initiatives in future years. Although funding is not slated to be expended in Fiscal Year 2024, planning efforts will focus on preservation and renovation of naturally occurring affordable housing units, development of new multifamily affordable and workforce housing inventory, and homeownership opportunities. Redevelopment Plan Goal 4: Protect and Enhance the Neighborhood Character Section 9.1.2: Real Estate - Identify priority areas for redevelopment and associated property acquisition needs related to replacement housing, infill redevelopment, parks, greenspace, parking, and resiliency efforts. Miami Beach Bandshell Page 306 of 550 471 NORTH BEACH COMMUNITY REDEVELOPMENT AGENCY PROGRAM AND INITIATIVES CONT'D BUDGET HIGHLIGHTS CONT'D • Section 9.4: Develop incentive programs to rehabilitate and preserve existing housing stock and/or develop new housing stock; Create infill housing programs to increase residential projects on existing residential sites; Support affordable homeownership opportunities through first-time homebuyer, down -payment, and utility assistance programs; Create programs and incentive to increase affordable and workforce housing, mixed -income projects, mixed -use projects; Create programs and incentives to mitigate the costs of historic preservation and rehabilitation; and Partner with the Miami Beach Housing Authority and the Ciy's Housing and Community Services Department to protect existing residents and provide affordable housing and homeownership opportunities. 7. Future Projects The Redevelopment Plan contemplates projects of varying complexity and costs. As TIF revenue grows, the North Beach CRA will be better able to leverage resources to implement large-scale projects and programs including infrastructure, environmental, and parks and recreation projects. Additionally, the North Beach CRA will be able to utilize revenue to supplement grant funded projects and have the capacity to bond TIF revenue for even greater impact. BUDGET HIGHLIGHTS • $4,000 for a satellite office within the North Beach CRA district, of which lease and maintenance costs are shared with the Miami Beach Building Department on a prorated basis 472 • $170,000 for the Commercial Fotade Improvement Program in the Normandy Fountain/Vendome Plaza area to embrace historic architecture and improve business attraction and retention • $120,000 for the Residential Property Improvement Program to promote the maintenance of naturally occurring affordable housing stock and promote resiliency • $186,000 allocated for MBPD community policing initiatives to continue to provide enhanced levels of staffing and services throughout the area • $100,000 for enhanced Code Compliance services including additional levels of staffing each week • $100,000 to cover cost for enhanced level of service and to cover solid waste dumping fees and promote additional cleanliness and beautification • $65,000 for a strategic plan to focus short-term efforts and initiatives • $12,775 for the County's administrative fees, which are equivalent to 1 .5% of the County's respective TIF payment for FY 2024 • $10,000 contribution to the Ciy's General Fund for administrative costs NORTH BEACH COMMUNITY REDEVELOPMENT AGENCY CRITICAL SUCCESS FACTORS CRITICAL SUCCESS FACTORS CONT'D • Adoption and adherence to the Redevelopment Plan and other • Development of partnerships and opportunities for collaboration economic development and revitalization strategy plans for with local, regional, and national partners various areas of the North Beach CRA district and the City as a whole • Ability to secure external funding sources including grants • Enhance networking and communication opportunities with the • Ability to network and interact with the business and local community including, but not limited to, residents, property development communities to encourage new and expanding owners, business owners/operators, and visitors to gauge private investment in the area interest in various economic development initiatives, programs, and incentives • Access to local/zip code level market information especially the real estate and job markets • Progress on planned public infrastructure and facility projects • Progress on approved private development projects • Improved website and data development to ensure a greater quantity and selection of detailed information and records are instantly available to the public, site selection consultants, and potential business owners Page 308 of 550 473 NORTH BEACH COMMUNITY REDEVELOPMENT AGENCY FUTURE OUTLOOK Economic development and growth opportunities are found throughout the Redevelopment Area. While early growth in property values experienced since the 2021 base year suggests that the North Beach CRA is on the Fast track to overcoming the conditions that led to its creation, e.g., blight, deterioration, and economic stagnation, redevelopment efforts must be balanced with both aggressive and measured initiatives. The Redevelopment Plan outlines bold, local approaches that will raise community awareness of the CRA and invoke visible change without the tremendous financial expenditure associated with many capital projects. In addition to annual preparation of an Operating Budget and Work Plan, the North Beach CRA will develop a five-year implementation strategy with corresponding Funding projections to help steer planning For the redevelopment program. New development projects, economic revitalization programs, and creative financing for commercial and entrepreneurial endeavors are critical to the pathway Forward. FUTURE OUTLOOK CONT'D The implementation of short-term and immediate redevelopment strategies should be Followed by a critical mass of development improvements in key commercial areas which are necessary to accelerate revitalization and signal progress by the North Beach CRA. These areas include Town Center, Normandy Isles/Rue Vendome Plaza, North Shore, and the West Lots. For redevelopment to occur in these parts of North Beach, CRA program initiatives must be accomplished with community participation and the leveraging of available resources. Using the Redevelopment Plan as a guide for strategies that preserve and enhance what residents value most in their neighborhoods, the North Beach CRA will work to improve on existing elements and create new elements essential for promoting a vibrant community. 72 Park Residences 474 Page 309 of 550