93-20951 Reso ' I , [ I • I • ' I • I I
•
RESOLUTION NO. 93-20951
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA APPROVING
THE ISSUANCE OF MIAMI BEACH REDEVELOPMENT
AGENCY TAX INCREMENT REVENUE BONDS IN AN
AMOUNT NOT TO EXCEED $25,000,000, IN
ACCORDANCE WITH THE REQUIREMENTS OF SECTION
147 (F) OF !THE INTERNAL REVENUE CODE OF 1986,
AS AMENDED.
WHEREAS, the Miami Beach Redevelopment Agency (the "Agency") ,
a public body created by the City of Miami Beach, Florida (the
"City") pursuant to Chapter 163, Part III, Florida Statutes, as
amended (the "Act") , intends to issue Tax Increment Revenue Bonds
in an amount not to exceed $25,000,000 (the "Bonds") in accordance
with the provisions of the Act and a resolution to be adopted by
the Agency; and
WHEREAS, on November 4, 1993, at a special meeting of the City
Commission and the Agency, a public hearing was held for the
purpose of giving interested persons an opportunity to express
their views on the proposed issuance of the Bonds and the project
to be financed with the proceeds thereof, in accordance with
Section 247 (f) of the Internal Revenue Code of 1986, as amended
(the "Code") , after notice of such hearing was published in the
Miami Herald on October 21, 1993, a copy of which notice is
attached hereto as Exhibit A and made a part hereof; and
WHEREAS, Section 147 (f) of the Code requires that the Mayor
and City Commission approve the issuance of the Bonds after having
had the benefit of such public hearing.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA:
1. In accordance with the requirements of Section 147 (f) of
the Code, the issuance of the Bonds by the Agency for the purposes
described in the attached Notice of Public Hearing, is hereby
approved.
2 . The officers, agents and employees of the City are hereby
authorized and directed to do all acts necessary for the issuance
of the 'Bonds by the Agency.
3 . This resolution shall become effective immediately upon
its adoption.
PASSED and ADOPTED this Air day of ember 1993.
4
MAYOR
1111
A
TTEST:
CITY CLERK
c:\wp51\data\taxinc.res
FORM APPROVED
LEGAL DEPT.
By -70
Date 16'' z;-�3
CITY•
•
O F MIAMI BEACH
NOTICE OF SPECIAL CITY COMMISSION AND REDEVELOPMENT AGENCY MEETING
NOTICE IS HEREBY given that the City Commission and Redevelopment Agency of the
City of Miami Beach, Florida, will hold a Special Meeting on Thursday, .�
November 4, 1993, at 4:00 p.m. , in the Commission Chambers, City Hall,
1700 Convention Center Drive, Miami Beach, Florida, with respect to the proposed
issuance by the Miami Beach Redevelopment Agency (the "Agency") of one or more
series of Tax Increment Revenue Bonds (the "Bonds") in an aggregate principal
amount not to exceed $25,000,000 to pay a portion of the cost of acquiring
certain real property located in the City (the "Property") , clearing certain
parcels of the Property, rehabilitating certain buildings and structures included
in the Property and constructing certain related public improvements within the
City, all in an area bounded on the north by 24th Street, on the east by the
Atlantic Ocean, on the south by 14th Lane, and on the west by West Avenue
(collectively, the "Project"). This notice is given pursuant to Section 147(f)
of the Internal Revenue Code of 1986, as amended.
Upon the acquisition, clearance and/or rehabilitation of the Property, the Agency
intends to sell or lease all or portions of the Property to one or more private
developers for the construction or operation of one or more hotels, multi-family
residential housing, commercial space and parking facilities (the "Development") .
The developers of the Development will be MB Redevelopment, Inc. , HCV, Inc. , VRA,
Inc. , SMR Redevelopment, Inc. and/or THR Redevelopment, Inc. (the "Developers")
or partnerships of which one or more of the Developers will be general partners.
' r
Persons wishing to express their views may appear at the hearing or may submit
their views in writing regarding the proposed issue of the Bonds and the location
and nature of the Project. Any written submissions should be sent to the office
of Richard E. Brown, City Clerk, 1700 Convention Center Drive, Miami Beach,
Florida 33139. Written submissions should be mailed in sufficient time to be
received on or before November 2, 1993. -
INQUIRIES concerning this item should be directed to the Development, Design and
Historic Preservation Services at 673-7193.
Richard E. Brown
City Clerk
City of Miami Beach
"Pursuant to Fla. Stat. 286.0105, the City hereby advises the public that: If
a person decides to appeal any decision made by this board, agency or commission
with respect to any matter considered at its meeting or hearing, he will need a
record of the proceedings, and that for such purpose, affected persons may need
to ensure that a verbatim record of the proceedings is made, which record
includes the testimony and evidence upon which the appeal is to be based. This
notice does not constitute consent by the City for the introduction or admission
of otherwise inadmissible or irrelevant evidence, nor does it authorize
challenges or appeals not otherwise allowed by law. "
EXHIBIT 'IA"
etiL
CITY OF MIAMI 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. / J /- 1
TO: Mayor Seymour Gelber and DATE: November 4, 1993
Members of the City Commission
FROM: Roger M. Ca
City Manager
SUBJECT: PUBLIC HEARING FOR THE PURPOSE OF RECEIVING COMMENT ON
THE PROPOSED ISSUANCE OF TAX INCREMENT BONDS WITH A
SECONDARY RESORT TAX REVENUE PLEDGE IN THE AMOUNT OF $25
MILLION FOR THE CITY CENTER/HISTORIC CONVENTION VILLAGE
REDEVELOPMENT AND REVITALIZATION AREA AS REQUIRED BY THE
1986 INTERNAL REVENUE CODE
ADMINISTRATION RECOMMENDATION:
It is recommended that the City Commission consider public
testimony received and subsequently approve the issuance of tax
increment bonds in the amount of $25 million for the City
Center/Historic Convention Village Redevelopment and Revitalization
Area as required by Section 147 (f) of the 1986 Internal Revenu°e
Code (as amended) .
BACKGROUND:
In order for the Miami Beach Redevelopment Agency to issue $25
million in Tax Increment Revenue Bonds, certain steps are required.
The first is a hearing to receive public comment on the bond
issuance as required by Section 147 (f) of the Internal Revenue
Code of 1986 (as amended) because these bonds would be considered
"private activity bonds" under the tax code. The code requires
publication at least fourteen days in advance of the hearing in a
newspaper of general circulation. Meeting this requirement was
approved by the City Commission and the Redevelopment Agency Board
on October 20, 1993, and its advertisement was placed on Thursday,
October 21, 1993 .
This hearing must be held prior to applying for an allocation from
the State volume cap for private activity bonds. At this time,
there is only $97 million available in volume cap and allocations
occur on a first come, first served basis . If the volume cap is
depleted, the bonds could not be issued until after January 1,
1994, when additional volume cap becomes available.
The proposed bond issue would be amortized by both the increment
from the City Center project area and resort taxes, as a secondary
revenue pledge, until such time as the City Center Tax Increment
(TIF) area generates adequate income on its own to support the
bonds .
ANALYSIS :
THE TAX INCREMENT FINANCE (TIF) BONDS - $25 MILLION 1
Preliminary analysis indicate that issuance of $25 million in TIF
bonds with level debt service payments for thirty years would
-1- AGENDA
ITEM R
DATE I 93
•
require annual payments of $1 . 7 million. First year debt service
and funding the reserve would require $1 .4 million.
FUNDING THE DEBT SERVICE: •
Projections of tax increment proceeds to the district during the
next five years (Attachment A) indicate an increasing trend
beginning at $1 .2 million in the current year (FY 93/94) to a low-
high range of $4 . 5 to $6 .2 million by FY 98/99 . This growth in tax
increment revenues reflects all expected new construction and
rehabilitation activity planned in the district . The increase
between FY 97/98 and FY 98/99 reflects the convention hotel coming
on-line.
Funds available for debt service from the tax increment proceeds is
illustrated in Attachment "B" after the Agency expenses have been
paid. Superimposed on this chart is the debt service requirements
for the proposed $25 million in TIF bonds . As indicated in the
chart, the net proceeds will cover the required debt service
requirements by FY 96/97 . Optimistically, this could occur one
year earlier in FY 95/96 . Utilization of current Resort Tax
proceeds, as a secondary pledge, to cover the initial deficit is
proposed.
The amount of Resort Tax revenues required to meet the pledge
•
commitment is shown on Attachment "C" . This amount ranges from
$846, 524 in the current year, FY 93/94, declining rapidly to $-0-
by FY 96/97 . The need for Resort Tax supplement could end one year
earlier in FY 95/96 .
Attachment "D" illustrates the tax increment revenues available
after annual operating expenses and debt service obligation for the
$25 TIF bonds have been met . This chart shows excess revenues
occuring as early as FY 96/97 and growing rapidly to a range of
$2 .4 to $4 . 1 million by FY 98/99 .
FUNDING OTHER ACTIVITIES
The issuance of this first Tax Increment Finance (T. I .F. ) bond
raises a number of questions which this memo will attempt to
address :
•
• What funding will be available for other projects within the
area?
• Can the Agency still fulfill its ten year funding plan as
outlined in the approved Redevelopment Plan for the project?
• At what point in time is the funding necessary for hotel
development?
Clearly, the implementation of the first convention center hotel
will be the first major financial uptick for the project area.
Until the hotel is on the tax rolls, however, the Agency will have
to rely on the revenues from resort tax to supplement the debt
service for the first bond issue.
Concerns have been expressed regarding the potential of focusing
all efforts on hotel development without regards to quality-of-life
issue or other developmental activities . Attachment "E"
illustrates the projected income and uses of Resort Taxes beginning
with the current year and extending out five years to FY 98/99 .
This table shows the available two (2) cent of Resort Tax revenues
increasing from $380, 000 in FY 94/95 to $2 .4 million by FY 98/99 .
These amounts do not include "quality of life" allocations of
$583, 333 in FY 94/95 increasing to $1.2 million by FY 98/99 .
Likewise, similar amounts would be available additional hotel
development activities after signing of the development agreement
expected in February 1995 and the imposition of the additional one
-2- 1: -• - 2
•
(1) cent of Resort Tax.
Attachment "F" summarizes total available Resort Taxes increasing
from $1 . 5 million in FY 94/95 to $4 . 6 million in FY 98/99 .
THE APPROVED TEN-YEAR PLAN
The Administration has attached, as Attachment G, the ten year plan
charts "Figure 10" as adopted in the Redevelopment plan which shows
an expenditure of $130 million over ten years to complete minimum
projects within the area. The fourteen funding sources listed on
the last page include:
Tax Increment Parking Bonds
Resort Taxes TCCEA
State of Florida CDBG
FDOT
Other funds will also become available in the future, as an
example, the City recently received funding approval from the MPO
for the Dade Boulevard Pedestrian/Bikeway in the amount of $1 . 3
million.
Only $40 million of the $130 million in tax increments are proposed
as a funding source for the budget .
The concern expressed by Commission is that this issue of the TIF
bonds not be spent solely on hotel financing. The Administration
supports that policy, with the understanding that other sources,
including resort tax, parking funds, TCCEA funds, etc . may also be
tapped in the future to round out the necessary funds for the
inducement package.
The Redevelopment Plan budget cites the following breakdown for
"Hotel Development Initiatives"
Land Acquisition $15 million '
Parking Assistance $12 million
Public Infrastructure $ 8 million
Public Area Improvements $15 million
TOTAL $50 million
The $50 million number is an envelope. The specifics of the
assistance will not be known until the City has selected and is
negotiating with developers .
The funding for hotel assistance will have to be available to meet
the construction time tables of the hotels . The decision to
acquire property at this time has accelerated that schedule, in
that at least the land acquisition funds will be necessary
immediately (FY 93/94) .
If the Commission selects developers in spring and negotiations
conclude in fall of 1994, it is conceivable that a hotel could
break ground by early 1995, requiring any funds negotiated for
further assistance to be available in FY 94/95 for parking and on-
site facilities, and no later than FY 95/96 for off-site public
improvements, if any. While these can be staged, the funding must
be generally available within the first three years.
Additional bonding capacity will be available within the present
resort tax fund, the added penny bed tax and the parking fund to
meet additional funding needs beyond the 'first $25 million being
issued now.
CONCLUSION:
•
The negotiations with hotel developers will be a fluid process . In
no case will the Administration commit funds that are not available
at any given time .
-3-
•
The City will also move ahead with other critical , projects
identified in the Redevelopment Plan utilizing the fourteen
available funding sources. While the first five years will be a
funding challenge, the opening of the hotel (s) , will dramatically
expand the fund sources to further enrich the City' s ability to do
other desired projects .
RMC:j ph
Attachments
•
•
•
•
-4-
Projected Tax Increment Revenues
FY 93/94 to FY 98/99 •
City Center/Historic Convention Village
$7,000,000 $7,000,000
$6,000,000 •�. $6,000,000
• 1.
••
$5,000,000 - ••••• - $5,000,000
••• . .0_ 3
$4,000,000 - • ,�• . . ••• - $4,000,000
•••00.••'
•• • •� •
$3,000,000 - ... �.. a`
- . . ••• ••'
- $3,000,000
•
''$2,000,000 - 0000 o' r . .
•• - $2,000,000
s1,000,000 - - $1,000,000
$0 1 I I I I 1 $o
FY 93/94 FY 94/95 FY 95/96 FY 96/97 FY 97/98 FY 98/99
Low Normal High
@ 3% @ 5% @ 8%
.•D • • •III+1.
cri
CMB/OMB 10/29/1993
Tax Increment Revenues Available for
$25 million in TIF Bonds
City Center/Historic Convention Village
$7,000,000 $7,000,000
$6,000,000 #.— $6,000,000
)=.
•
• tb
$5,000,000 - • — $5,000,000 a
•
•
• o -
• (t.
$4,000,000 — .4f
0 0 •
• ioa
.ia -,000,000
•
• *.
0 •• 03
4. ••••• z
$3,000,000 — • •,• .•• •
• — $3,000,000
•
•
„... • .. •
• •
d• ...
•• •
__ • .."
$2,000,000 — .0•••
• -*
ma&di...a° - $2,000,000
sg, r •
----.. . .. - d"....•••
4..• •-... :-:-.-.....0.-
$1,000,000 — stik.ii• ''' — $1,000,000
$0 I I I I i 1 $0
FY 93/94 FY 94/95 FY 95/96 FY 96/97 FY 97/98 FY 98/99
Debt Low Nominal High
Service @ 3% @ 5% @ 8%
Cn .•.$•.. ...D. . • 1=1 0 lb*•
CMB/OMB 10/29/1993
------------ --
Amount of Secondary Pledge (Resort Tax)
Required for TIF Bonds
City Center/Historic Convention Village
$2,500,000 $2,500,000
-
$2,000,000 - $2,000,000 1'
w
• • • • -
$1,500,000 - - $1,500,000 (i)
C-)
•
$1,000,000 - $1,000,000
-z- =
• • • ••
$500,000 - �4b••.~ ' i �••1 '•‘.4 - $500,000
•
• •
$0 1 •1-------- .�, �, $0
FY 93/94 FY 94/95 FY 95/96 FY 96/97 FY 97/98 FY 98/99
Debt Low Nominal High
• Service @3% @5% @8%
.a S.— ..5. ... • _ •040•
CMB/OMB 10/29/1993
Available Tax Increment Revenues After :•
Debt Service and Operating Expenses
City Center/Historic Convention Village
$5,000,000 _ _ $5,000,000
$4,000,000
$4,000,000
- n)
ON - C�
<>r - j
$3,000,000 ' - $3,000,000
»auk
vi. _
$2,000,000 - Iliiiit. - $2,000,000
i R59
$1,000,000 `_ : . i, :> - $1,000,000
r2:::::" ..i.,.i,. -
$0 - 1 I 1 Ii:. : # :::t :>: $0
FY 93/94 FY 94/95 FY 95/96 FY 96/97 FY 97/98 FY 98/99
0O 17.7 Low FT Nominal rim High
1 @3% @5% @8%
CMB/OMB 10/29/1993
Projected Resort Tax Revenues
FY 93/94 to FY 98/99
FY 93/94 FY 94/95 FY 95/96 FY 96/97 FY 97/98 FY 98/99
Source of Funds
Resort Tax (2 cents) $3,400,000 $3,672,000 $3,929,040 $4,164,782 $4,373,022 $4,635,403
Resort Tax (1 cent) 0 1,166,667 2,100,000 2,205,000 2,315,250 2,431,013
Carry Forward 400,000 0 0 0 0 0
Total $3,800,000 $4,838,667 $6,029,040 $6,369,782 $6,688,272 $7,066,415
Uses of Funds
Operational Support
Ocean Drive Services District $500,000 $500,000 $500,000 $500,000 $500,000 $500,000
Special Marketing 200,000 0 0 0 0 0 ?
VCA Donation 200,000 200,000 200,000 200,000 200,000 200,000
Homeless Program 50,000 0 0 0 0 0
Friday Night Live 50,000 50,000 50,000 50,000 50,000 50,000
Other General Fund Uses 950,000 250,000 250,000 250,000 250,000 250,000 nil:
Subtotal $1,950,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
- Capital Projects
Parks Rehabilitation $500,000 $500,000 $0 $0 $0 $0
Hotel Rehabilitation Program 500,000 500,000 500,000 500,000 500,000 500,000
Bass Museum Bonds 0 500,000 750,000 750,000 750,000 750,000
CC/HCVRRA TIF Bonds 846,524 660,429 450,162 0 0 0
Subtotal $1,846,524 $2,160,429 $1,700,162 $1,250,000 $1,250,000 $1,250,000
Additional Uses (1 cent)
Hotel Development Reserve $0 $583,333 $1,050,000 $1,102,500 $1,157,625 $1,215,506
Quality of Life 0 583,333 1,050,000 1,102,500 1,157,625 1,215,506
• Subtotal $0 $1,166,667 $2,100,000 $2,205,000 $2,315,250 $2,431,013
Total $3,796,524 $4,327,096 $4,800,162 $4,455,000 $4,565,250 $4,681,013
co Surplus/(Deficit) $3,476 $511,571 $1,228,878 $1,914,782 $2,123,022 $2,385,403
Projected Availability of Resort Tax Proceeds
FY 93/94 to FY 98/99
$6,000,000 $6,000,000
$5,000,000 $5,000,000
$4,000,000
- $4,000,000 ?
$3,000,000 ::: ;
iil
..........................
t t'
$2,000,000 t t
i 'a 3�s y �` - $ 00000
� 20
a: $343�ste 2 .:i
$
o v :
AV
\ti .}:• y# 5. F 4a'; >.y.v...,::::,...,„:::.,„.:.
te%i�.,,s• .....
........:::::.. .:
FY 93/94 FY 94/95 FY 95/96 FY 96/97 FY 97/98 FY 98/99
I +
llFirst issi Hotel Quality
2 cents MI Development of Life
CMB/OMB 10/29/1993
•
ATTACHMENT "G" • •
PROPOSED PROJECTS & SOURCE OF FUNDS
FIGURE 10
City Center/Historic Convention Village Redevelopment and Revitalization Plan Ten Year
Capital Improvement Program in 1992 Dollars
Public Infrastructure Improvements
SOURCE
1. Parking Facilities - acquiring of land and development
A. 1,500 car garage @ 16th St. & Collins Ave. $12.0 million CMB Parking Fund
B. 400 car garage @ 20th St. & Collins Ave. S 3.0 million CMB Parking Fund
C. 600 car garage @ 23rd St. & Collins Ave. S 4.0 million CMB Parking Fund
2. Bass Museum Expansion $16.5 million 50% private/
50% CMB
3. Collins Park Improvements $ 3.0 million 50% new bed tax/
50% TIF
4. Riverwalk Improvements $ 3.0 million 33% State of Florida
(Dade Canal - Meridian Ave. to Collins Ave.) 33% TIF
33% New Bed Tax
5. Light rail station S 2.0 million UMTA
(along Washington Avenue)
6. Lincoln Road Improvements $12.0 million 50% Assess. Dist./
(physical improvements - ocean to West Ave.) 25% TIF/
25% CDBG Sec. 10
7. Relocated Public Library S 5.0 million 50% New Bed Tax/
(17th St. & Meridian Ave.) 50% TIF
8. Garden Center Renovations $ 1.0 million 50% EDA/
50% TCCEA
9. Oceanwalk extension S 0.5 million 50% New Bed Tax/
(15th St. to 23rd St.) 50% TIF
10. Street end improvements at the ocean (15th, $ 0.8 million TCCEA
16th, Linc. & 17th, 18th, 19th, 21st & 22nd Sts.)
11. Espanola Way extension improvements S 0.5 million 50% New Bed Tax/
(ocean to Washington Ave.) 50% TIF
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11
12. Historic Streetscape Projects:
Washington Ave., 14th to 23rd Sts. $ 1.0 million 50% CDBG/
50% TIF
Collins Ave., 14th to 23rd Sts. $ 2.0 million FDOT
Dade Blvd., Meridian Ave. to Collins Ave. $ 1.0 million 50% CDBG/
50% TIF
17th St., Meridian to ocean $ 0.6 million CDBG
18th St., Washington Ave. to Collins Ave. $ 0.3 million TCCEA
19th St., Washington Ave. to Collins Ave. S 0.3 million TCCEA
20th St., Washington Ave. to Collins Ave. $ 0.3 million TCCEA
21st St., Washington Ave. to Collins Ave. S 0.3 million TCCEA
22nd St., Washington Ave. to Collins Ave. $ 0.3 million TCCEA
23rd St., Washington Ave. to Collins Ave. $ 0.3 million TCCEA
Commercial Projects
13. Retail development assistance/land acquisition $ 2.0 million 50% CDBG/
(22nd St. & Collins Ave.) 50% TIF
14. Lincoln Road mixed use development/land S 2.0 million 50% TIF/
acquisition (17th St. & Washington Ave.) 50% Pkg. Fund
15. Lincoln Road theater development incentives $ 2.0 million 33% Pkg. Fund/
(Meridian Ave. and Lincoln Rd.) 33% TIF/
33% CDBG
16. Hotel Rehab improvements $ 2.0 million Resort Tax
Residential/Housing Development
17. Residential development assistance/land $ 4.0 million 307o HOT E/30°Ic TIF
acquisition (23rd St. & Collins Ave./Dade Canal) CDBG
Hotel Development Initiatives
18. Hotel Development Initiatives:
Land acquisition $15 million Combination of:
Tax Increment: $25 million
Parking assistance $12 million Resort Tax: $10 million
New Bed Tax: $10 million
Public infrastructure $ 8 million GMCVB: $ 5 million
Public area improvements $15 million
TOTAL HOTEL $50 million
-22-
12
FUNDING BY SOURCE:
Tax Increment S40.0 million
CMB Parking Fund S21.0 million
New Bed Tax S16.25 million
Tourist & Convention Center Expansion Authority (TCCEA) $ 3.1 million
Florida Department of Transportation (FDOT) S 2.0 million
City of Miami Beach Resort Tax S12.0 million
Community Development Block Grant (CDBG) $ 7.3 million
HOME S 1.3 million
UMTA $ 2.0 million
Assessment District S 3.0 million
Economic Development Administration (EDA) S .5 million
Other S16.5 million
State of Florida S 1.0 million
Greater Miami Convention & Visitors Bureau (GMCVB) S 5.0 million
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