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93-20977 Reso RESOLUTION NO. 93-20977 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA DECLARING THE CITY OF MIAMI BEACH'S SUPPORT FOR, AND FURTHER URGING THE APPROVAL OF THE ATTACHED RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF DADE COUNTY, FLORIDA, APPROVING CERTAIN TERMS OF MIAMI BEACH REDEVELOPMENT AGENCY TAX INCREMENT REVENUE BONDS, SERIES 1993, (CITY CENTER/HISTORIC CONVENTION VILLAGE) , AND ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS AMENDING SECTION 29-81 OF THE CODE OF METROPOLITAN DADE COUNTY, FLORIDA, RELATING TO ECONOMIC DEVELOPMENT AND AD VALOREM TAX EXEMPTIONS FOR NEW AND EXPANDING BUSINESSES IN ENTERPRISE ZONES TO EXCLUDE A NEWLY CREATED COMMUNITY REDEVELOPMENT AREA LOCATED IN SOUTH MIAMI BEACH. WHEREAS, the Miami Beach Redevelopment Agency (Agency) intends to issue its Tax Increment Revenue Bonds, Series 1993 , (City Center/Historic Convention Village) , in a principal amount not exceeding $25,000, 000 (Bonds) to finance the acquisition, clearing and/or rehabilitation of certain property and the construction of certain public improvements in an area of the City of Miami Beach, Florida (City) known as the "City Center/Historic Convention Village Redevelopment and Revitalization Area" (Redevelopment Area) , in accordance with a redevelopment plan adopted by the Agency under Chapter 163, Part III, Florida Statutes, as amended (Act) , and approved by Dade County, Florida (County) by Resolution NO. 317-93 adopted on March 30, 1993, (Approving Resolution) ; and WHEREAS, in accordance with the provisions of Section 163.410, Florida Statutes, as amended, and- pursuant to the Approving Resolution and an Interlocal Cooperation Agreement entered into by and between the County and the City (Interlocal Agreement) , the County delegated to the Mayor and City Commission of the City and the Agency every power originating under the Act and conferred upon the Board of County Commissioners of the County (Board) with respect to the Redevelopment Area except for certain specific powers which it retained for the Board, including the power to approve the amount, duration and purpose of any bonds, notes, advances on other indebtedness for the Redevelopment Area pledging or otherwise obligating tax increment funds; and WHEREAS, the Bonds shall be secured, in part, with tax increment funds generated within /the Redevelopment Area and deposited in the "City Center/Historic Convention Village Redevelopment and Revitalization Trust Fund" established by Ordinance No. 93-2836 adopted by the City on February 24, 1993, and by Ordinance No. 93-28 enacted by the County on April 27, 1993 (Trust Fund Ordinance) , and held by the Agency in accordance with the provision of the Approving Resolution, the Interl.ocal Agreement and the Trust Fund Ordinance; and WHEREAS, pursuant to the Constitution of the State of Florida, Section 196. 1995 Florida Statutes, as amended, and a referendum held in Dade County, Florida on November 4, 1986, the Board of County Commissioners (Board) of Dade County, Florida (County) enacted No. 88-27 on April 19, 1988, authorizing the Board, at its discretion, to grant by ordinance economic development ad valorem tax exemptions to new and expanding business located within enterprise zones, including an enterprise zone established in south Miami Beach, which ordinance has been codified in the Code of Metropolitan Dade County, Florida (County Code) as Chapter 29, Article X; and WHEREAS, the granting of economic development ad valorem tax exemptions to new and expanding businesses in the Community Redevelopment Area would negatively affect the ability to undertake tax increment financing in the Community Redevelopment Area; and WHEREAS, the Mayor and City Commission declares it to be in the best interest of the City of Miami Beach, Florida, for the Board of County Commissioners of Dade County, Florida, to approve the attached County resolution and Ordinance, particularly with regard to the attached Ordinance which would amend Section 29-81 of the Dade County Code to exclude the Community Redevelopment area from eligibility for economic development Ad Valorem Tax exemption to new and expanding businesses, therefore allowing the City of Miami Beach to effectively issue the subject tax increment bonds within the City Center/Historic Convention Village Redevelopment and Revitalization Area to undertake planned economic and capital improvements. 2 NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA declaring the City of Miami Beach's support for, and further urging the approval of, the attached resolution of the Board of County Commissioners of Dade County, Florida, approving certain terms of Miami Beach Redevelopment Agency Tax Increment Revenue Bonds, Series 1993, (City Center/Historic Convention Village) , and Ordinance of the Board of County Commissioners amending Section 29-81 of the Code of Metropolitan Dade County, Florida, relating to economic development and ad valorem tax exemptions for new and expanding businesses in enterprise zones to exclude a newly created community redevelopment area located in south Miami B PASSED and ADOPTED this 17 h day of No tuber , 993 . O ATTEST: flEA&t.v1/4A E- CITY CLERK jm:c:\wp51\data\sec2981A.res FORM APPROVED LEGAL DEPT. B c7 Date //" )21 3 • CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 Ismom OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010 FAX: (305) 673-7782 COMMISSION MEMORANDUM NO. &(T7 93 TO: Mayor Seymour Gelber and DATE: NOVEMBER 174 1993 Members of the City Commission FROM: Roger M. C. City Manager SUBJECT: A Resolution requesting an amendment to Section 29-81 of the Code of Metropolitan Dade County, Florida, disallowing the provision of economic development Ad' Valorem tax exemptions for new and expanding businesses located within the boundaries of the Miami Beach Enterprise Zone which fall within the newly created Historic Convention Village Redevelopment and Revitalization Area. ADMINISTRATION RECOMMENDATION The Administration recommends that the accompanying resolution be passed requesting an amendment to Section 29-81 of the Code of Metropolitan Dade County, disallowing the provision of Tax Abatement within the boundaries of the Miami Beach Enterprise Zone, which fall within the newly created Historic Convention Village Redevelopment and Revitalization Area. BACKGROUND On January 21, 1993, the State of Florida' s Department of Community Affairs approved the City of Miami Beach' s application to amend the boundaries of the South Miami Beach Enterprise Zone. The Enterprise Zone boundary was extended with the purpose of incorporating the North Beach area. In order to accomplish this, the City extended the boundary up the centerline of Collins Avenue, encompassing all land east of the centerline up to 24th Street, and then used the Indian Creek Waterway to connect with the North Beach area. The area east of the centerline of Collins Avenue up to 24th Street also falls within the City Center/Historic Convention Village Redevelopment and Revitalization Area, a designated "Community Redevelopment Area which includes all land area generally bounded by 24th Street on the north, 14th Lane on the south, the Atlantic Ocean on the east and West Avenue on the west. ANALYSIS Pursuant to the Constitution of the State of Florida, Florida Statutes Section 196 .1995, as amended, and a referendum held in Dade County Florida on November 4th, 1986, the Board of County Commissioners of Dade County, Florida encacted Ordinance No. 88-27 on April 19, 1988, authorizing the Board, at its discretion, to grant by ordinance Ad Valorem tax exemptions to new and/or 1 gs expanding businesses within located within an enterprise zone. AGENDA ITEM DATE 1I - I ) 93 Page 2 • There is a problem in offering this incentive in that part of the Enterprize Zone which falls within the Redevelopment Area, since it would adversely affect the ability to undertake tax increment financing because the amount of increment could be offset with abatements . The Administration does not believe that the elimination of Ad Valorem tax abatements within the City Center Redevelopment Area (none have been requested to date) will inhibit the redevelopment of the area in light of the major public and private investments which will be induced with the proceeds of tax increment financing. Unless, Section 29-81 of the Code of Metropolitan Dade County is amended to disallow tax abatement in the Miami Beach Enterprise Zone, the Redevelopment Agency of the City of Miami Beach will not be able to issue Tax Increment bonds within the City Center/Historic Convention Village Redevelopment and Revitalization Area to undertake planned economic and capital improvements. RMC/MD/sh Attachments • 181 • REHOLUTxow gq. RESOLUTION APPROVING CERTAIN TERMS Oa MIAMI BEACH RaDEVELOPImAT AGENCY TAX =UMW REVENUE EOONDS, miss 1993 (Cxlr CENTER/ HISTORIC CONVENTION VILLAGE) NEZRZAB, the Miami Beach Redevelopment Agency (the 'Agency') intends to iUNue its Tax Increment Revenue Bonds, Series 1993 (City . . Center/Historic Convention Village) , in a principal amount not •- exceeding $25,000,000 (the RBonds')to finance the acquisition, clearing and/or rehabilitation of certain property and the con- struction of certain public improvements in an area of the City of Miami Beach, Florida (the "City") known as the 'City Center/ Historic Convention Village Redevelopment and Revitalization, Area" (the 'Redevelopment Area') in accordance with a redevelopment plan adopted by the Agency under Chapter 163, Part III, Florida Statutes, as amended (the "Act") , and approved by Dade County, Florida (the "County") by Resolution No. 317-93 adopted on March 30, 1993 (the 'Approving Resolution") ; and NBN A.5M, in accordance with the provisions of Section 163.410, Florida Statutes, as amended, and pursuant to the Approving Rego- • lution and an Interlocal Cooperation Agreement entered into by and between the County and the City (the "Interlocal Agreement") , the County delegated to the City Commission of the City and the Agency • every power originating under the Act and conferred upon the Board of County Commissioners of the County (the 'Board") with respect to the Redevelopment Area except for certain specific powqrs which it • retained for the Board, including the power to approve the amount, duration and purpose of any bonds, notes, advances on other indebt- ednees for the Redevelopment Area pledging or otherwise obligating tax increment funds: and Tuno 3A0, the Bonds shall be secured, in part, with tax incre- ment funds generated within the`Redevelopment Area and deposited in the 'City Center/Historic Convention Village Redevelopment and. . _..___..... Revitalization Trust Fund' established by Ordinance NO. 93-2836 adopted by the City on February 24, 1993 and by Ordinance No. 93-28 enacted by the County on April 27, 1993 (the 'Trust Fund Ordi- nances) and held by the Agency in accordance with the provisions of the Approving Resolution, the Interlocal Agreement and the Trust Fund Ordinance; /imm TBxt*TORE, BE IT RESOLVED by the Board of county Commie- sionere of Dade County, Florida that: Section 1. The foregoing recitations are deemed true and correct and are hereby incorporated as a part of this resolution. Section 2. In accordance with the requirements of the Approving Resolution, the Ynterlocal Agreement and the Trust Fund Ordinance, the issuance of the Bonds by the Agency in a principal amount not to exceed $25,000,000, with a final maturity not later than December 31, 2022, for the purpose of financing the acquisi- tion, clearing and/or rehabilitation of certain property and the Pnnar,-nntinn n01 nev.fe4.. r...%1 40 4...pro,ft.eato. sal s.lrhis ohs. 1 Redevelopment Area, funding a debt service reserve account and • • paying costs of issuance with respect to the Bonds' is hereby approved. 3. The officers and employees of the County are hereby authorized to take all necessary action so as to provide for the issuance of the Bonds by the Agency. Section 4. This resolution shall take effect immediately upon its passage. The foregoing resolution was offered by Commissioner • •� w , who moved its adoption. The Motion was seconded by ,Commissioner and upon being put to a vote, the vote was as follows: James Burke Niguel Diaz ds la Portilla Betty T. Ferguson Maurice A. Ferro Larry Hawkins Bruce Kaplan Natacha 8. Millen Dennis C. Mops Alexander Penelas Pedro Reboredo Javier D. 8outo Sherman 8. Winn Arthur B. Teele The Chairperson thereupon declared this resolution duly passed and adopted this day of 1993. DADS COUNTY, FLORIDA • BY ITS BOARD OF COUNTY COO.24I88YONLRB HARVEY RDVIN, CLERK By: Deputy Clerk Approved by County Attorney as to form and legal sufficiency: '3 • • ORDINANCE NO. ORDINANCE AMENDING SECTION 29-81 OF THE CODE 'OF METROPOLITAN DADE COUNTY, FLORIDA RELATING TO ECONOMIC DEVELOPM qy AD VALOREM TAX FXEMPFIONS FOR NEW AND EXPANDING BUSINESSES IN ENTERPRLSE ZONES TO EXCLUDE A NEWLY CREATED COMMUNITY REDEVELOPMENT AREA LOCATED IN SOUTH MIAMII BEACH;PROVIDING FOR SEVERABILITY, INCLUSION 1N THE CODE AND EFFECTIVE DATE. WHEREAS,pursuant to the Constitution of the State of Florida, Florida Statute Section 196.1995, as amended, and a referendum held in Dade County,Florida on November 4, 1986, the Board of County Commissioners (the 'Board') of Dade County, Florida (the 'County") enacted Ordinance No. 88-27 on April 19, 1988,authorizing the Board,at its discretion, to grant by ordinance economic development ad valorem tax exemptions to new and pig business ' located within enterprise zones, including an enterprise zone established in South Miami Beach, which ordinance has been codified in the Code of Metropolitan Dade County, Florida (the 'County Code') as Chapter 29, Article X; and WHEREAS,the era of South Miami Beach generally bounded by Twenty-Fourth Street on the north, West Avenue on the west, the Atlantic Ocean on the east and Fourteenth Lane an the south IS i designated as a'community redevelopment area' (the'Community Redevelopment Area")known as the City Center/Historic Convention Village Redevelopment and Revitalization Area, said Community Redevelopment Area having been established pursuant to Chapter 163, Part III, Florida Statutes, for purposes of, among others, providing tax increment financing for projects within the Community Redevelopment Area; and WHEREAS, the granting of economic development ad valorem tax exemptions to new and expanding businesses in the Community Redevelopment Area would affect negatively the ability to undertake tax increment financing,in the Community Redevelopment Area; and • • WHEREAS, this Board declares it to be in the best interest of the county to exclude the Community Redevelopment Area from eligibility for economic development ad valorem tax exemptions to new and expanding businesses. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF DADS COUNTY,`FLORIDA: Section 1. The foregoing recitations are incorporated herein as part of this Ordinance. • Section a. Section 29-1 1 of the County Code is hereby amended to read as follows:v Sec. 29-81. Authority to grant the exemptions. Pursuant to the terms of this article(Ordinance Number 88.27),the Board of County Commissioners at its discretion is hereby authorized to grant by ordinance ad valorem tax exemptions to new and expanding businesses located within enterprise zones, as defined herein, except in each the community redevelopment argil located in South Miami Beach which areamiXt generally bounded by Sixth Street on the north, Biscayne Bay on the west, the Atlantic Ocean on the east and Government Cut on the south and (10 merely bonded by Wenty-FotglUtcasiubrasaL Avenue on theLweitt, the Atlantic Ocean on the east and Eaudecallanutuiraglith and in the community redevelopment area located in Southeast Overtown/Park West which is generally bounded by 1395,I-95,N.W. 5th Street, Metrorail rights-of-way, N.W. lit Street, North Miami Avenue, N.B. 5th Street and Biscayne Boulevard. The Board of County Commissioners may also agree to grant an exemption based merely on presentation of proposals that indicate serious intent to build a new business or expand an existing business within an enterprise zone,except in the above referenced community redevelopments areas located in South Miami Beach, and Southeast Overtown/Park West, provided however, that the improvements to real property are made or the tangible personal property are added or increased on or after the day of the ordinance granting the exemption is adopted. Words stddren through shall be deleted. Underscored words constitute the amendment proposed. Remaining provisions are now in effect and remain unchanged. • • Section 3. If any section, sentence, clause or provision of this ordinance is held invalid, the remainder of this ordinance shall not be affected by such invalidity. Section 4. It is the intention of the Board,and it is hereby ordained that the provisions of this ordinance shall become and be made a part of the County Code. The sections of this ordinance may be renumbered or reloaded to accomplish such intention, and the word "office' may be changed to "soon', 'article' or other appropziaOC word. Section 3. This ordinance shall become effective tea (10) days after the date of its enactment. Passed and Adopted: Approved by the County Attorney as , to Dorm and legal sufficiency: Prepared //PS CITY OF MIAMI BEACHeri:ILWA CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 TELEPHONE: 4734010 OFFICE OF THE CITY MANAGER November 8, 1993 Hon. Arthur Teele, Chairman Board of County Commissioners Metro-Dade County 111 N.W. 1st Street Miami, FL 33134 Dear Chairman Teele: On November 4, 1993, the City Commission of the City Miami Beach serving in its capacity as the Executive Board of the Miami Beach Redevelopment Agency held a public hearing and adopted a series of resolutions authorizing the issuance of $25 million in Tax Increment Revenue Bonds to finance the first phase of the development of convention quality hotel rooms. This action was required by Section 147 (F) of the Internal Revenue Code of 1986 (as amended) for "private activity bonds". The convention quality hotel development project, along with the tax increment proceeds necessary to support the $25 million bond issue are all located in the newly created tax increment district, the City Center/Historic Convention Village District Redevelopment and Revitalization Area. At present, an anomaly exists wherein the new tax increment district overlaps with the South Miami Beach Enterprise Zone. In the tax increment district, the increases in ad valorem taxes will be pledged to fund the $25 million in bonds. In the enterprise zone, the potential exists to grant ad valorem tax exemptions to new and expanding businesses. In order to protect bondholder interest in the pledge of tax increment revenues, we are requesting the Board of County Commissioners to consider an ordinance that would amend Section 29- 81 of the Code of Metropolitan Dade County, relating to economic development ad valorem tax exemptions to exclude the newly created convention center tax increment district from the enterprise zone. Hon. Arthur Teele, Chairman November 8, 1993 Page -2- The proposed ordinance amending Section 29-81 to exclude the newly created district and a resolution authorizing the issuance of $25 million in Tax Increment Revenue Bonds, along with all supporting documentation have been submitted for first reading to the County Administration for inclusion on the County Commission agenda of November 16, 1993 . Due to the urgency to ensure that our application for $25 million in Tax Increment Revenue Bonds is considered for an allocation under the State's 1993 volume cap, the City of Miami Beach requests that the matter be scheduled for initial review before the Finance Committee at the November 15, 1993 meeting. Your cooperation in this and all other matters is always appreciated. Sin rely Roger M. 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