HomeMy WebLinkAbout2004-25560 Reso
RESOLUTION NO. 2004-25560
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE AN INTERLOCAL AGREEMENT BY
AND AMONG THE CITY OF MIAMI BEACH, THE MIAMI BEACH
REDEVELOPMENT AGENCY, AND MIAMI-DADE COUNTY,
FLORIDA, FOR THE PURPOSE OF ESTABLISHING THE USE
OF 1.5% OF THE TAX INCREMENT REVENUES AGAINST
REAL PROPERTY LOCATED WITHIN THE SOUTH POINTE
REDEVELOPMENT AREA AND THE CITY CENTER/HISTORIC
CONVENTION VILLAGE REDEVELOPMENT AND
REVITALIZATION AREA TO BE REMITTED, RESPECTIVELY,
TO THE CITY AND COUNTY AT FISCAL YEAR END.
WHEREAS, on November 16, 1993, the City of Miami Beach approved an
Interlocal Agreement ("Agreement") among the City of Miami Beach, Florida (the "City"),
the Miami Beach Redevelopment Agency (the "CRA"), and Miami-Dade County, Florida
(the "County") for the purpose of establishing the use of a portion of the tax increment
revenues derived from the imposition of a levy against real property located within the
jurisdictions of the CRA (the "Tax Increment Revenues"); 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 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 County 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 CRA,
granted the CRA the power to exercise certain powers permitted by the Act to the extent
delegated by the Board to the CRA and directed the initiation, preparation and adoption
of community redevelopment plans by the CRA for its two community redevelopment
districts 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 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 from the
CRA Districts to which the Bonds relate 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 bonds under the Bond Resolutions; and
WHEREAS, during the 2003-2004 budget hearing, the Board requested and
approved an administrative charge fee, payable by all community redevelopment
agencies in the County, establishing a 1.5% administrative reimbursement charge to
recover costs for County staff time associated with overseeing community
redevelopment agency activities and for processing related items; and
WHEREAS, the City, the CRA and the County herein acknowledge and agree,
pursuant to the Interlocal Agreement, to allocate a 1.5% administrative fee of the
County's annual Tax Increment Revenue contribution to defray the County's costs in
connection with its oversight of the CRA, and to be paid from legally available Tax
Increment Revenues remaining at the end of the CRA's fiscal year; and
WHEREAS, the City will also allocate of the City's annual Tax Increment Revenue
contribution, annually, to be paid from legally available Tax Increment Revenues
remaining at the end of the CRA's fiscal year; and
WHEREAS, the CRA intends to issue refunding bonds in order to refinance all or
a portion of its outstanding Tax Increment Revenue Bonds (City Center/Historic
Convention Village); and
WHEREAS, accordingly, the attached Interlocal Agreement further memorializes
the County's approval of the issuance of a not to exceed $101,090,000 principal
amount of such refunding bonds, maturing no later than December 31, 2022, for the
purpose of refinancing all or a portion of the outstanding Tax Increment Revenue Bonds
(City Center/Historic Convention Village District), funding any necessary reserves and
paying costs of issuance.
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 an Interlocal Agreement by and among the City
of Miami Beach, the Miami Beach Redevelopment Agency, and Miami-Dade County,
Florida, for the purpose of establishing the use of 1.5% of the Tax Increment Revenues
Against real property located within the South Pointe Redevelopment Area and the City
Center/Historic Convention Village Redevelopment and Revitalization Area, to be
remitted, respectively, to the City and the County at fiscal end.
PASSED and ADOPTED this 5th day of May, 20 4.
ATTEST:
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fV'~~"'r
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
JMG/CMC/AP
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CllY OF MIAMI BEACH
COMIIIISSION 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, and Miami-Dade County for the
purpose of establishing the use of 1.5% of the Tax Increment Revenues Against real property located within
the South Pointe Redevelopment Area and the City Center/Historic Convention Village Redevelopment and
Revitalization Area, to be remitted to the City and the County at fiscal year end.
Issue:
Should the City Commission approve the execution of the Interlocal Agreement?
Item Summary/Recommendation:
During the course of the 2003/04 RDA budget approval process by Miami-Dade County, the County
requested that each Community Redevelopment Area (CRA) include a 1.5% administrative fee to defray
the County's costs in connection with its oversight of the CRAs (based on the County's annual Tax
Increment Revenue (TIF) contribution in their respective budgets). Due to the fact that the existing bond
covenants pledge all current and future increment for the repayment of outstanding bond obligations, the
RDA can only remit the administrative fee at the end of the Fiscal Year, provided that the debt service and
other obligations relating to the bonds have been met. The RDA budgets were subsequently modified to
include a reserve expenditure line item for the administrative fee, which is calculated against the County's
share of the TIF payment. In addition, Chapter 163.387(7)(a) Florida Statutes provides that the City and
the County are eligible to share in any TIF Revenues not budgeted for a specific use and remaining at the
end of the CRA's fiscal year in the Trust Fund. Based on this provision, the City was able to negotiate
allocating 1.5% of the County's share of the TIF payment back to defray their costs and 1.5% of the City's
share of the TIF payment as a contribution back to the City. The attached Interlocal Agreement between
the City of Miami Beach, the RDA and Miami-Dade County serves to document the terms by which the City
and the County receive their respective 1.5% allocations. It also documents the County's
acknowledgement and approval of the RDA's intention to refinance all or a portion of its outstanding TIF
bonds in City Center, provided that the issuance shall not exceed $101,090,000 and that such refinancing
shall mature no later than December 31, 2022.
Adviso Board Recommendation:
Finance and Citywide Projects Committee, December 22,2003 - Determination to pay the Administrative
Fee to the Count, sub'ect to further research b Cit 's Bond Counsel. No formal motion made.
Financial Information:
Source of
Funds:
D
Finance Dept.
n-Offs:
Department Director
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AGENDA ITEM
DATE
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miamibeachfl.gov
To:
From:
Subject:
COMMISSION MEMORANDUM
Date: May 5, 2004
Mayor David Dermer and
Members of the City Commission
Jorge M. Gonzalez ~. J4...r-
City Manager (/ r 1J
A RESOLUTION OF THE MAYOR AND MEMBERS OF THE MIAMI
BEACH CITY COMMISSION AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE AN INTERLOCAL AGREEMENT BY AND
AMONG THE CITY OF MIAMI BEACH, THE MIAMI BEACH
REDEVELOPMENT AGENCY, and MIAMI-DADE COUNTY, FLORIDA,
FOR THE PURPOSE OF ESTABLISHING THE USE OF 1.5% OF THE
TAX INCREMENT REVENUES AGAINST REAL PROPERTY LOCATED
WITHIN THE SOUTH POINTE REDEVELOPMENT AREA AND THE
CITY CENTER/HISTORIC CONVENTION VILLAGE REDEVELOPMENT
AND REVITALIZATION AREA TO BE REMITTED TO THE CITY AND
COUNTY AT FISCAL YEAR END.
RECOMMENDATION:
Adopt the Resolution.
ANALYSIS:
During the course of the 2003/04 RDA budget approval process by Miami-Dade County, the
County requested that each Community Redevelopment Area (CRA) include a 1.5%
administrative fee (based on the County's annual Tax Increment Revenue (TIF) contribution in
their respective budgets). The purpose of the fee is to defray the County's costs in connection
with its oversight of the CRAs. This issue, together with the Children's Trust allocation item, was
brought to the attention of the Finance and Citywide Projects on December 22, 2003. However,
due to the fact that the existing bond covenants pledge all current and future increment for the
repayment of outstanding bond obligations, it was determined that the RDA can only remit the
administrative fee to the County at the end of the Fiscal Year, provided that the debt service
and other obligations relating to the bonds have been met. Similarly, the RDA negotiated to remit
a like amount to the City for its use as well.
The RDA budgets were subsequently modified to include a reserve expenditure line item for the
administrative fee, which is calculated against the County's share of the TIF payment. In FY
03/04, the fee to the County paid by City Center will be $99,055 and $105,641 by South Pointe.
As indicated in an earlier memorandum, the fees paid by the City's two redevelopment areas
account for more than 75% of the fees generated by all the other redevelopment areas in Miami-
Dade County. It should be noted however, that Chapter 163.387(7)(a) Florida Statutes provides
that the City and the County are eligible to share in anyTIF Revenues not budgeted fora specific
use and remaining at the end of the CRA's fiscal year in the Trust Fund. Based on this provision,
the City was able to negotiate allocating 1.5% of the County's share of the TIF payment back to
defray their costs and 1.5% of the City's share of the TIF payment as a contribution back to the
City. The TIF payment back to the City represents $125,443 for City Center and $129,807 for
South Pointe.
May 5, 2004
Commission Memorandum
Administrative Fee - Interlocal Agreement
Page 2 of 2
The attached Interlocal Agreement between the City of Miami Beach, the RDA and Miami-Dade
County serves to document the terms by which the City and the County receive their respective
administrative fees. It also documents the County's acknowledgement and approval of the RDA's
intention to refinance all or a portion of its outstanding TIF bonds in City Center, provided that the
issuance shall not exceed $101,090,000 and that such refinancing shall mature no later than
December, 31 2022.
RECOMMENDATION:
It is recommended that the Mayor and City Commission adopt the attached Resolution to execute
the Interlocal Agreement as proposed.
JMG/C~B
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Enclosure