RESOLUTION 92-20499 •
RESOLUTION NO. 92-20499
A RESOLUTION OF THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AMENDING AND
RESTATING RESOLUTIONS NO. 89-19785, 90-19984
AND 91-20358, DESIGNATING THE PURPOSES FOR
WHICH THE EXCESS CITY SHARE OF THE CONVENTION
DEVELOPMENT TAX SHALL BE USED PURSUANT TO DADE
COUNTY ORDINANCE NO. 87-72 AND THE SECOND
AMENDED AND RESTATED INTERLOCAL AGREEMENT BY
AND BETWEEN DADE COUNTY, FLORIDA AND THE CITY
OF MIAMI BEACH, DATED AS OF OCTOBER 12, 1987;
ESTABLISHING THE MAXIMUM DOLLAR AMOUNT FOR
EACH SUCH PURPOSE; AND SETTING PRIORITIES
AMONG SUCH PURPOSES.
WHEREAS, Dade County Ordinance No. 87-72 enacted by the Board
of County Commissioners on October 20, 1987 (the "Bond Ordinance")
and the Second Amended and Restated Interlocal Agreement by and
between Dade County, Florida (the "County") and the City of Miami
Beach (the "City") for the Financing of Expansions and Improvements
to the Miami Beach Convention Center (the "Interlocal Agreement")
dated as of October 12, 1987 each provide by their terms that:
Upon substitution of the City's secondary
pledge for the County's secondary pledge
(defined as the Crossover Date in the Bond
Ordinance) , the City has the right to use the
Excess City Share (as defined in the Bond
Ordinance and the Interlocal Agreement) of the
Convention Development Tax revenues for any
purpose permitted under Florida Statutes,
Section 212 .0305;
and
WHEREAS, the City replaced the County's secondary pledge with
its own secondary pledge when it adopted City Resolution No. 88-
19429 on November 2, 1988; and
WHEREAS, Section 512 of the Bond Ordinance entitled "General
Fund" provides that, subsequent to the Crossover Date, the City may
adopt a resolution (i) designating a purpose which is permitted by
Florida Statutes, Section 212 . 0305 (the "Convention Development Tax
Law") and (ii) establishing the maximum dollar amount for such
purpose for which the Excess City Share on Deposit in the Excess
City Share account of the General Fund (such amount and fund being
established under the provisions of the Bond Ordinance) may be
utilized; and
WHEREAS, Section 512 of the Bond Ordinance provides further
upon receipt by the Trustee thereunder of the resolution adopted by r
the City pursuant to Section 512, the Excess City Share shall be
released monthly by the Trustee in an amount which is equal to the
amount designated by the City in the resolution; and
WHEREAS, the City wishes to designate the purposes for which
the Excess. City Share on deposit in the Excess City Share Account
may be utilized, establish the maximum dollar amount for each such
purpose and set priorities among such purposes; and
WHEREAS, the City desires that this Resolution continue in
full force and effect for as long as any bonds issued hereunder
remain outstanding;
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA:
1. The City hereby designates the following as purposes for
which the Trustee may, under the Bond Ordinance, release monies in
the Excess City Share Account:
(i) the financing by the City for the
completion of The Miami Beach Convention
Center (the "Convention Center") through the
issuance of the $8,000,000 principal amount of
the City's Bonds (the "Convention Center
completion Bonds") and as provided in Section
2 (iv) hereof;
(ii) operation and maintenance expense
deficits related to the Convention Center plus
$250,000 per year for three (3) years for
additional capital expenditures beginning July
1, 1993 ;
(iii) the financing by the City of Homestead,
Florida ("Homestead") of the construction of a
stadium complex through the issuance by
Homestead of $12, 000, 000 principal amount of
Revenue Certificates (the "Homestead Loan") ;
(iv) subject to the provisions of paragraph 7
hereof, and Florida Statute 212. 0305, as
amended, $250,000 for the first year
increasing at a rate of $50,000 per year until
said allocation reaches $500, 000, at which
time it would remain at this constant level
until the completion of a seven (7) year term;
to provide challenge capital grants for
eligible arts organizations and to provide for
reimbursement of demonstrated adverse impact
resulting from the creation of a Performing
Arts Center Complex for eligible arts related
facilities existing at the time of
commencement of construction of a Performing
Arts Center Complex;
(v) subject to the provisions of paragraph 8
hereof, the proposed financing of the
construction, rehabilitation and/or
redevelopment of the Performing Arts Center
Complex through the issuance of not to exceed
$92, 000,000 principal amount of Bonds (the
"Performing Arts Center Complex Bonds") ,
deficiencies in reserve accounts on the
Performing Arts Center Complex Bonds and
operating and maintenance expense deficits on
the Performing Arts Center Complex.
2. Subject to the prior claim of the Convention Development
Tax Revenues of the County's outstanding Special Obligation and
Refunding Bonds, Series 1987A and Special Obligation Bonds, Series
1987B (the Miami Beach Convention Center Project) issued under the
Bond Ordinance (collectively, the "1987 Bonds") , commencing with
the first payment on the Homestead Loan and continuing through June
30, 1993, the Excess City Share shall be used for the purposes
designated in clauses (i) through (iii) of paragraph 1 above and
for such other purposes described below, according to the
priorities, and in the maximum amounts described below:
(i) first, payments in an amount not to
exceed $1,000, 000 per year, to fund the annual
principal, interest and if applicable,
deficiencies in the reserve accounts, on the
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Convention Center Completion Bonds, which
annual sum shall be disbursed in substantially
equal monthly payments provided the revenues
available in the Excess City Share Account so
permit, and further provided that if in any
given month a shortage of available revenues
in the Excess City Share Account results in a
deficiency in the making of the necessary
monthly payments under said Bonds, then, in
addition to the regular monthly payment
required by this paragraph, such additional
amounts as necessary to make up any such
deficiency shall be paid during the next
succeeding month (s) in which adequate
revenues to do so are available in the Excess
City Share Account, even if, as a result of
timing of the payments required to make up ,
such deficiency in prior payments, the
aggregate amount of all payments made under
this subparagraph during any given year exceed
$1, 000, 000, so long as the cumulative
aggregate total of all payments made under
this subparagraph for all years does not
exceed an average of $1, 000,000 on a yearly
basis;
(ii) second, monthly payments for the annual
operating and maintenance expense deficit
related to the Convention Center in an amount
equal to one-twelfth of $2,500, 000 during each
fiscal year, provided that if in any given
month a shortage of available revenues in the
Excess City Share Account results in a
deficiency in the making of the necessary
monthly payment under this subparagraph, then
in addition to the regular monthly payment
required by this subparagraph, such additional
amounts necessary to make up any such
deficiency shall be paid during the next
succeeding month(s) in which adequate revenues
to do so are available in the Excess City
Share Account;
(iii) third, monthly payments of principal and
interest to appropriate accounts for the
benefit of Homestead for the Homestead Loan in
an amount equal to one-twelfth of $2,000, 000
and such additional amounts which may be
necessary to avoid negative amortization on
the Homestead Loan by paying any additional
accrued interest thereon not paid by the
aforementioned payment, provided that if in
any given month a shortage of available
revenues in the Excess City Share Account
results in a deficiency in the making of the
necessary monthly payments required under this
subparagraph, such additional amounts as
necessary to make up any such deficiency shall
be paid during the next succeeding month(s) in
which adequate revenues are available in the
Excess City Share Account;
(iv) fourth, monthly payments for annual
operating and maintenance expense deficits
related to the Convention Center in an amount
equal to one-twelfth of $2,000,000 (which were
previously implemented under Resolution Nos.
90-19984 and 91-20358) in excess of the
$2,500, 000 provided for in subparagraph 2 (ii)
above, for a total of $4,500, 000, provided
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that if in any given month a shortage of
available revenues in the Excess City Share
Account results in a deficiency in the making
of the necessary monthly payments required
under this subparagraph, such additional
amounts as necessary to make up any such.
deficiency shall be paid during the next '
succeeding month(s) in which adequate revenues
are available in the Excess City Share
Account; and
(v) fifth, payment of the amount remaining,
if any, to Homestead to reduce the outstanding
principal amount of the Homestead Loan for as
long as any portion of the Homestead Loan
remains outstanding.
3 . Subject to the prior claim on the Convention Development
Tax revenues of the 1987 Bonds, on or after July 1, 1993, the
Excess City Share shall be used for the purposes designated in
Section 1 above and for such other purposes as described below,
according to the priorities, and in the amounts provided below:
(i) first, payments in an amount not to
exceed $1,000,000 per year, to fund the annual
principal, interest and if applicable,
deficiencies in the reserve accounts, on the
Convention Center Completion Bonds, which sum
shall be disbursed in substantially equal
monthly payments provided the revenues
available in the Excess City Share Account so
permit and provided further that if in any
given a shortage of available revenues in the
Excess City Share Account results in a
deficiency in the making of the necessary
monthly payments under said Bonds, then, in
addition to the regular monthly payments
required by this subparagraph, such additional
amounts as necessary to make up any such
deficiency shall be paid during the next
succeeding month(s) in which adequate revenues
to do so are available in the Excess City
Share Account, even if, as a result of the
timing of the payments required to make up
such deficiency in prior payments, the
aggregate amount of such payments under this
subparagraph during any given year exceeds
$1, 000, 000 so long as the cumulative aggregate
total of all payments made under this
subparagraph for all years do not exceed an
average of $1, 000, 000 on a yearly basis;
(ii) second, monthly payments to appropriate
accounts for the benefit of Homestead for the
Homestead Loan in an amount equal to one one
hundred and twentieth (1/120) of the principal
amount of the Homestead Loan outstanding of
June 30, 1993, plus interest accrued on the
Homestead Loan for each of such months, until
the Homestead Loan is paid in full, provided
that if in any given month a shortage of
available revenues in the Excess City Share
Account results in a deficiency in the making
of the necessary monthly payments under this
subparagraph, then, in addition to the regular
monthly payments required by this
subparagraph, such additional amounts as
necessary to make up such deficiency shall be
paid during the next succeeding month(s) in
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which adequate revenues to do so are available
in the Excess City Share Account;
(iii) third, monthly payments for the annual
operating and maintenance expense deficit
related to the Convention Center in an amount
equal to one twelfth (1/12) of $4,500,000 per
year for each fiscal year, plus monthly
payments of one-twelfth of $250,000 per year
for three (3) years commencing July 1, 1993
for additional capital requirements, provided
that if in any given month a shortage of
available revenues in the Excess City Share
Account results in a deficiency in the
necessary monthly payment required by this
subparagraph, then, in addition to the regular
monthly payment required by this subparagraph,
such additional amounts as necessary to make
up such deficiency shall be paid during the
next succeeding month(s) in which adequate
revenues to do so are available in the Excess
City Share Account;
(iv) fourth, commencing July 1, 1993 monthly
payments for an annual fund related to a
challenge capital grant program for eligible
arts organizations and for reimbursement of
demonstrated adverse, impact to eligible arts
related facilities existing at the time of
commencement of construction of Performing
Arts Center Complex in amount equal to one-
twelfth of $250,000 during each fiscal year
with such amount increasing at a rate of
$50,000 per year until said amount reaches
$500,000 at which time it would remain at this
constant level until the completion of a seven
(7) year term, provided that if in any given
month a shortage of available revenues in the
Excess City Share Account results in a
deficiency in the making of the necessary
monthly payment under this subparagraph, then
in addition to the regular monthly payment
required by this subparagraph, such additional
amounts necessary to make up any such
deficiency shall be paid during the next
succeeding month(s) in which adequate revenues
to do so are available in the Excess City'
Share Account; and
(v) fifth, subject to the provisions of
paragraph 8 hereof, payment of the remaining
balance to fund the annual principal, interest
and, if applicable, deficiencies in reserve
accounts on the Performing Arts Center Complex
Bonds issued by Metropolitan Dade County, and
to provide for operations and maintenance
expense deficits on the Performing Arts Center
Complex.
4. The Trustee is hereby directed to deliver to all parties
at interest under this resolution a copy of the Trustee's regular
statements regarding receipt and distribution of all Designated
Revenues (as defined in the Bond Ordinance) and the Excess City
Share under the Bond Ordinance and under the City's Resolutions
Nos. 89-19566, 89-19623, 89-19668, 89-19.694, ' 89-19785, 90-19984,
91-20358 and hereunder.
5. The City Manager shall forthwith notify the Trustee of
this resolution by delivering to the Trustee a certified copy
5
hereof, and the Trustee shall thereafter make payment from the
Excess City Share Account as set forth herein.
6. Except as provided in paragraphs 7 and 8 below, this
resolution shall continue irrevocably and in full force and effect
for as long as any bonds issued hereunder remain outstanding,
provided, however, that the City may at any time in its discretion
adopt (a) resolutions further modifying the order of priorities or
amounts of the payments provided herein which are subordinate to
the monthly payments to be made for the benefit of Homestead and
the Performing Arts Center Complex Bonds set out in subparagraphs
2 (iii) , 3 (ii) and 3 (v) above, subject to the requirements of
paragraphs 7 and 8 below; or (b) resolutions implementing the
funding from the Excess City Share Account of additional amounts
for capital improvements, operating and maintenance expense
deficits and/or other projects consistent with the Convention
Development Tax Law, which are subordinate to the monthly payments
to be made for the benefit of Homestead and the Performing Arts
Center Complex Bonds as specifically set forth in subparagraphs
2 (iii) , 3 (ii) and 3 (v) above, subject to the requirements of
paragraphs 7 and 8 below.
7. The designation of the funding for a challenge capital
grant program and for the reimbursement of demonstrated adverse
impact resulting from the creation of a Performing Arts Center
Complex to eligible arts related facilities as specified in
subparagraphs 1(iv) and 3 (iv) hereof are contingent upon and
subject to the following:
(i) said funds are allocated on a 50-50 basis
between each program;
(ii) both programs will be administered
through the Dade County Cultural Affairs
Council; and
(iii) 75% of the funds allocated to both
programs would be eligible only to
governmental or private non-profit
organizations which reside in Miami, Miami
Beach or Unincorporated Dade County; and
(iv) in the event there are not sufficient
projects to commit the funds in subparagraph
(i) above, on a 50-50 basis in either program,
the uncommitted funds from one program may be
reallocated to the other program at the
discretion of the Dade County Cultural Affairs
Council; projects eligible for the challenge
capital grant program may be funded even if no
projects are eligible for the reimbursement
for adverse impact program; and
(v) this designation shall commence July 1,
1993. .
8. The designation of the Performing Arts Center Complex as
an authorized project as specified in subparagraph 1(v) hereof and
the priority of payment set out in subparagraph 3 (v) hereof are
contingent upon the issuance of not less than $35 million in bonds,
in one or more series prior to July 1, 1996. If the first series
of bonds has not been issued prior to July 1, 1995, a full report
regarding the lack of such action and the reason for the lack of
such actions shall be given to the Miami Beach City Commission. If
said contingency does not occur, all authority hereunder pursuant
to subparagraph 1(v) and subparagraph 3 (v) shall automatically be
rescinded and this resolution shall have no force and effect with
regard to said Sections.
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9. In adopting this Resolution supporting the Performing
Arts Center Complex Bonds, the City is relying on the continued
validity and enforceability of the priorities set forth in this
Resolution, including but not limited to the prioritization of the
$4.5 million for. operations and maintenance expense deficits for
the Convention Center and City is relying upon the County's
continued support of said priorities, as long as any bonds issued
hereunder remain outstanding, notwithstanding any refunding of the
1987 Bonds or termination of the Interlocal Agreement.
10. In adopting this Resolution allocating funds to the
construction and operation and maintenance of the Performing Arts
Center Complex, the City of Miami Beach is not approving the site
selected for the Performing Arts Center Complex. Should the
Performing Arts Center Complex not be feasible on the selected site
on or after July 1, 1996, this Resolution does not preclude the
City of Miami Beach from being considered as a site for a
Performing Arts Center Complex. Should the City of Miami Beach
then be selected, as the site for the Performing Arts Center Complex
by the County, any and all plans associated with the current
Performing Arts Center Complex site will be transferred to the City
of Miami Beach at no cost. Further, should the County wish to
refund or defease any debt outstanding pursuant to a designation in
this resolution or issue any debt pursuant to a designation in this
resolution, a public hearing shall be held and written notice given
to the City. Additionally, the City is to be given written notice
of any bond validation hearing related to any debt or refunding
debt to be issued pursuant to ,a designation made herein.
11. The City is relying on the County's assertion that it
will utilize its best efforts in good faith to secure an open
indenture for the financial structure of the Performing Arts
Complex Bonds.
12. Resolution Nos. 89-19785, 90-19984 and 91-20358 are
hereby amended and restated to conform with this Resolution.
13. This resolution shall be effective immediately upon its
adoption.
PASSED and APPROVED this 22nd day f Apri , 1992.
MAYOR
ATTEST:
FORM APPROVED
E~ LEGAL DEPT.
CITY CLERK By(1 2'
d
Date X 02-
RMC:CBT:jh/lm
April 22, 1992 A
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• CITY ' OF MIIAMI *BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010
FAX: (305) 673-7782
COMMISSION MEMORANDUM NO. n7% ,...92.,
REV, s&o
DATE: APRIL 22, 1992
•
TO: Mayor Seymour Gelber and •
Members of the City Commission •
FROM: Roger M. Canto , •
City Manager )H L11
J
SUBJECT: ADDENDUM TO R-7-K, EXCESS CITY SHARE RESOLUTION
FOR THE PERFORMING ARTS CENTER
At the conclusion of the Finance Committee Meeting of .Monday,
April 20, 1992, the Administration summarized six (6) points which
were discussed at the meeting. These points are as follows:
1) The Resolution should be changed to include language which
would allow for the funding of the Challenge Capital Grants
Program for eligible art organizations to be funded as soon
as funds from the Convention Development Tax (CDT) Revenue
Stream become available. •
2) The Resolution should be changed to include language which
would allow for more flexibility in the allocation' of
funding between the Challenge Capital Grants Program and
the reimbursement of demonstrated adverse impact from the
• Performing Arts Center Complex.
3) The Resolution should be changed to include language which •
would not allow for the early retirement of the Performing
• Arts Center Complex Bonds by the County, but would,
instead, allow for the future designation, by the City, of
the .Excess Share for eligible projects; if any Excess Share
exists.
4) The Resolution should be changed to include language which
would guarantee, for as far in the future as possible, the
continued allocation of $4.5 million per year to fund the
operating deficits of the Miami Beach Convention Center.
5) The City of Miami Beach representatives on the Performing
Arts Center Trust should be briefed on the City's position
concerning the Performing Arts Center Complex and should
represent the City's position at the Trust Meetings.
6) The Administration was directed to identify any eligible
- • programs for CDT Funding which exist on Miami Beach and to
submit those projects to the City Commission for
designation of eligibility in the flow of funds generated
from the CDT.
Of the six (6) items listed above, items 5 and 6 were directions
given to the Administration for internal follow-up and, therefore,
were not considered as items to be negotiated with the County.
continued.. . ..
AGENDA rf 48
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ITEM
DATE �� Z2.-9Z
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Comm. Memo. - 2 - April 22, 1992
Performing Arts Center
In order to bring items 1 through 4 to closure, a meeting was held
with the County Manager and his Administrative staff during the noon
recess of the County Commission Meeting on April 21, 1992 . Items 1
and 2 were_ agreed to and have been added to the attached Amended
Resolution (see highlighted areas) .
Item 3, which was to add language which would not allow for the early
retirement of Performing Arts Center Complex debt and to provide for
future designation of any Excess Share of the CDT, was not accepted
by the County. The County Administration felt that the ability to
issue and market bonds for the Performing Arts Center Complex was
jeopardized by allowing for a subsequent designation of the CDT.
Succinctly, the County felt that a sixth lien on the CDT revenue
stream was not bondable unless all available revenues were allocated
for the debt service on the bonds.
Item 4 was to add language which would strengthen the existing
commitment for the continued funding of the $4.5 million towards the
deficit of the Convention Center beyond Item IVB of the County
Manager's letter of April 14, 1992, which reads "will continue to be
included". Further, the resolution passed by the County Commission
on March 17, 1992, which reaffirms the County's commitment to the
deficit funding for the Miami Beach Convention Center pursuant to the
November 6, 1990, Performing Arts Center Complex Financing Plan. The
November 6, 1990, Financing Plan anticipated the funding of the $4.5
million through the final maturity of the Performing Arts Center
Complex Bonds, estimated to be 2020 (which is twelve (12) years
beyond the maturity of the Convention Center Construction Bonds) .
While the County Manager agreed in concept to fund the $4.5 million
' in perpetuity, he was unable to commit to any language which would
guarantee this funding at the expense of the County's refunding
discretion.
ADMINISTRATION RECOMMENDATION: -
Approximately 30 days ago, the City Commission directed me to
negotiate with Dade County to achieve additional protections within
the Excess City Share Resolution attached hereto. Since that time,
the following has been achieved:
1) A pool of funds to provide a Challenge Capital Grant
Program for eligible arts organizations. These funds will '
assist eligible community based arts. organizations to
improve the smaller community theaters throughout Dade
County.
2) A - pool of funds to reimburse eligible cultural arts
facilities should they demonstrate any adverse impact as a
result of the construction of the Performing Arts Center
Complex.
3) The consideration of Miami Beach as a possible site for the
complex should the existing site not come to fruition.
4) Should, as a result of 3 above, the complex be relocated to
the City of Miami- Beach, all studies, plans and
specifications would be made available to the City at no
cost.
5) Any refunding or defeasance of the existing bonds on the
part of Dade County will require a Public Hearing with
specific notice being given to the City of Miami Beach.
6) Should the County decide to hold a bond validation hearing
on any additional or refunding bonds, the City will receive
formal written notice of such.
continued. . .
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Comm. Memo. - 3 - April 22, 1992
Performing Arts Center
7) Although not related to this issue. the County Manager in
his letter of April 14, 1992, has agreed to work with the
City on many items which will have a substantial positive
financial impact on the City of Miami Beach.
Given all the above points, it must be noted that previous Miami
Beach Commissions (Resolution 89-19785, adopted November 8, 1989) ,
have agreed to the funding of the Performing Arts Center Complex from
the CDT Revenue Stream. Resolution No. 90-19941, adopted
March 21, 1990, expressed the support of the City of Miami Beach for
the Performing Arts Center Complex on the Knight Ridder site. Based
on these previous actions of the City Commission, the November 6,
1990, Performing Arts Center Complex Financing Plan, which includes
an allocation of the Miami Beach Excess City Share, was approved by
the County Commission and was reaffirmed on March 17, 1992, in
Resolution No. R-312-92.
Although the Administration was unable to achieve a "no risk"
protection of the deficit funding for the Convention Center, it was
able to achieve through the various points stated above a
substantial level of comfort through a combination of previous
related actions of the County Commission and the April 14, 1992,
letter from the County Manager that the deficit funding is protected
through 2020. Based on all of the above, and the need to foster
cooperation with Dade County, the Administration's recommendation is
to approve the attached Excess City Share Resolution.
RMC:CBT:blb
Attachment
50 1