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HomeMy WebLinkAbout470-2004 RDA Reso RESOLUTION NO. 470-2004 A RESOLUTION OF THE CHAIRMAN AND THE MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY AUTHORIZING THE CHAIRMAN AND SECRETARY TO EXECUTE ANINTERLOCAL 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 Miami Beach Redevelopment Agency approved an Interlocal Agreernent ("Agreement") arnong the City of Miarni 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 Incrernent 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 comrnunity 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 Corn mission accepted a delegation of powers from the Miarni-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 rnernbers of the City Commission to be the rnernbers 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 comrnunity redevelopment plans by the CRA for its two comrnunity 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 frorn 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 cornmunity redevelopment agencies in the County, establishing a 1.5% administrative reimbursernent 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 Incrernent Revenue contribution to defray the County's costs in connection with its oversight of the CRA, and to be paid from legally available Tax Incrernent 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 Agreernent further memorializes the County's approval of the issuance of a not to exceed $101,090,000 principal arnount of such refunding bonds, maturing no later than December 31, 2022, for the purpose of refinancing all or a portion of the outstanding Tax Incrernent 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 CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY OF THE CITY OF MIAMI BEACH, FLORIDA, that the Chairman and Secretary are hereby authorized to execute an Interlocal Agreement by and among the City of Miarni Beach, the Miami Beach Redeveloprnent 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 Redeveloprnent and Revitalization Area, to be rernitted, respectively, to the City and the County at fiscal year end. PASSED and ADOPTED this 5th day of May, 20 . ATTEST: ~r r~~ SECRETARY Resolution No. 470-2004 JMG/CMC/AP T:\AGENDA\2004\May042004IrdallnterlocaLReso.doc APPROVED AS TO FORM & LANGUAGE a FOR EXECUTION y!'lfld-l Date CITY OF MIAMI BEACH REDEVELOPMENT AGENCY ITEM SUMMARY m Condensed Title: A Resolution 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 Redevelopment Agency 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 anyTIF 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 the county 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 Coun ,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 AGENDA ITEM gA DATE S'-~-<JC{ T:\AGENDA\2004\May0504IRDAllnterlocaIRDA_SUM.doc CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.ci.miamibeachfl.gov REDEVELOPMENT AGENCY MEMORANDUM From: Chairman and Members of the Board Miami Beach Redevelopment Agency Jorge M. Gonzalez \.~ Executive Director () .~ U Date: May 5, 2004 To: Subject: A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY AUTHORIZING THE CHAIRMAN AND SECRETARY 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 T AX 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 Cityfor 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 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 TI F 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 Redevelopment Agency 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 TI F 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 Redevelopment Agency adopt the attached Resolution to execute the Interlocal Agreement as proposed. JMG/CAAtKB T:\AGENDA\2004\May0504\RDA\lnterlocal.doc Enclosure >, INTERLOCAL AGREEMENT AMONG CITY OF MIAMI BEACH, MIAMI BEACH REDEVELOPMENT AGENCY, & MIAMI-DADE COUNTY, FLORIDA This Interlocal Agreement ("Agreement") is 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 collected and paid annually by the Miami-Dade County Tax Collector to the CRA with respect to the tax increment districts within the jurisdiction of the CRA (the "Tax Increment Revenues"), WHEREAS, pursuant to Chapter 163, Part III, Florida Statutes, also known as the Community Redevelopment Act of 1969 (the "Act"), 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 CenterIHistoric 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 (the "Bonds") 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, the annual budget of the CRA is approved by the City and the County pursuant to the Act in which the Tax Increment Revenues are appropriated for purposes consistent with the Bond Resolutions and the CRA's redevelopment plans for the CRA Districts; WHEREAS, as set forth in F.S. 163.387(7)(a), the City and the County are eligible to share in any Tax Increment Revenues not budgeted for a particular use and remaining at the end of the CRA's fiscal year in the Fund established for the respective CRA Districts; 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 percent 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 wish to acknowledge and agree, by this Interlocal Agreement, to allocate in the annual budget, a 1.5% administrative fee to be paid to the County to defray the County's costs in connection with its oversight of the CRA and a 1.5% fee to be paid to the City; both to be paid after the debt service and other obligations on the Bonds and any future bonds (or loans) issued by the CRA and approved by the County have been satisfied from Tax Increment Revenues; and NOW THEREFORE, the parties agree as follows: Section 1. The recitals above are incorporated by reference in this Section 1. Section 2. The City, the CRA and the County agree that on the last day of the CRA's fiscal year, the CRA shall remit 1.5% of the Tax Increment Revenues paid to the CRA for that Fiscal Year to the County and 1.5% of the Tax Increment Revenues paid to the CRA for that Fiscal Year to the City, provided, as to both remittances, the debt service and all other obligations relating to the Bonds and any future bonds (or loans) issued by the CRA and approved by the County have been satisfied for that fiscal year. Section 3. The County approves the issuance by the CRA of not to exceed $101,090,000 principal amount of refunding bonds for the purpose of refinancing all or a portion of the outstanding principal amount of the Bonds issued with respect to the City Center/Historic Convention Village Community Redevelopment district), funding any necessary reserves and paying the cost of issuance, provided such refunding bonds mature no later than the maturity date for the Bonds. Section 4. This Agreement shall be effective upon execution by all parties and shall continue for as long as the CRA is in existence. Section 5. This Agreement shall be binding upon and shall mure to the benefit of the City, the County, the CRA and their respective successors. Section 6. Any amendment to or waiver of any provision of this Agreement must be in writing and mutually agreed to by the CRA, the City and the County. Section 7. This Agreement and its provisions shall be governed by and construed in accordance with the laws of the State of Florida. In any action, in equity or law, with respect to the enforcement or interpretation of this Agreement, venue shall be in the County. Section 8. This Agreement contain~ all the terms and conditions agreed upon by the parties. No other Agreement, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to exist or bind any of the parties. If any part of this Agreement is held by a court of competent jurisdiction to be invalid, illegal or unenforceable, such invalid, illegal or unenforceable part shall be deemed severable and the remaining parts of this Agreement shall continue in full force and effect provided that the rights and obligations of the parties are not materially prejudiced and the intentions of the parties can continue to be effected. Section 9. This Agreement is signed in three (3) counterparts, and each counterpart shall constitute an original of this Agreement. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective and duly authorized officers as ofthe day and year first above written. ATTEST: JUk\ ~DA~ Robert Parcher, City Clerk BEACH, FLORIDA Secretary D VELOPMENT AGENCY ATTEST: ~~ r~~ MIAMI-DADE COUNTY, FLORIDA .. . .. . . " ~~~e ~ Count Mana Print Name and Title ._....,.~~ .......~.-.+-.-. APPROVED AI 10 FORM a LANGUAGI a FOR IXECU1'IOM F:\c gr\$ALL\CHRISTIN\CRA Interlocal Agreement Miami Beach AdmFee CityCounty changes I.doc ~ r1z,h ..,.. ., MEMORANDUM Not On Agenda Item No. 4(HH) TO: Honorable Chairperson Barbara Carey-Shuler, Ed.D. DATE: and Members, Board of County Commissioners July 27, 2004 SUBJECT: Agreement with City of Miami Beach and Miami Beach Redevelopment Agency on Administrative Charge Reimbursement and Issuance of Bonds by CRA and/or City FROM: g=~~~~ RECOMMENDATION It is recommended that the Board of County Commissioners adopt the accompanying resolution that approves the form of the attached interlocal agreement ("Agreement") with the Miami Beach Redevelopment Agency ("CRA") and the City of Miami Beach ("City) and authorizes its execution by the County Manager. This Agreement provides for the assessment of an annual administrative charge by the County and the City for their oversight of the two community redevelopment districts under the jurisdiction of the CRA and approves the issuance of certain refunding bonds by the CRA and/or City. BACKGROUND The CRA administers the South Point Tax Increment District (created in 1973) and the City CenterlHistoric Convention Tax Increment District (created in 1992) established under provisions of the Florida Statutes, Chapter 163, part III. In FY 2003-04 budget, the Board of County Commissioners (the "BCC") adopted a new 1.5% administrative fee to be charged to all Community Redevelopment Agencies (the "Agencies") in the County for the oversight and processing of Agency related items by the County. The fee is necessary to recover the increasing cost of providing the work of the County's Tax Increment Financing and Coordinating Committee members and support staff who process, review and recommend the budgets and all other proposals of the Agencies coming before the BCC. Furthermore, the BCC authorized the County Manager to negotiate and execute interlocal agreements in order to ensure the implementation of this fee. The Florida Statutes allow Agencies to expend funds for administrative and overhead expenses necessary or incidental to the implementation of community redevelopment plans. The same Statutes also provide that the City and County are eligible to share in any Tax Increment Revenues not budgeted for a particular use and remaining at the end of an Agency's fiscal year. The proposed interlocal agreement relies on the latter provision as the mechanism to pay the fee to the County. The City, by agreeing to pay the County fee, has required the County to also approve that the City shall also receive a 1.5% reimbursement on the City's tax increment distributions to the CRA. This provision allows the City to recover a greater fee than the County, in that the City's share of tax increment revenues exceeds the County's. , I MEMORANDUM (Revised) TO: Hon. Chairperson Barbara Carey-Shuler, Ed.D. DATE: and Members, Board of County Commissioners July 27, 2004 /#d~ FROM: Robert A. Ginsburg County Attorney Not On SUBJECT: Agenda Item No. 4 (HH) Please note any items checked. j "4-Day Rule" ("3-Day Rule" for committees) applicable if raised 6 weeks required between first reading and public hearing 4 weeks notification to municipal officials required prior to public hearing Decreases revenues or increases expenditures without balancing budget Budget required Statement of fiscal impact required Bid waiver requiring County Manager's written recommendation Ordinance creating a new board requires detailed County Manager's report for public hearing Housekeeping item (no policy decision required) No committee review 3 N, On AgtJlda Item No. '4 (HH) Page No.2 WHEREAS, during the 2003-2004 County budget hearing, the Board approved an administrative charge of 11/2 % of tax increment revenues collected within a community redevelopment district to be payable by all community redevelopment agencies in the County to , recover costs associated with overseeing community redevelopment agency activities and for processing related items by County staff; and WHEREAS, the CRA and the City agree to the assessment by the County of the administrative charge with respect to the CRA Districts upon the conditions described in the County Manager's memorandum which is incorporated in the resolution by reference; and WHEREAS, the CRA, the County and the City wish to memorialize their understanding regarding the refunding bonds and the administrative fees by entering into an Interlocal Agreement in the form attached as Exhibit "A" to this resolution ("Interlocal Agreement") pursuant to Chapter 163, Part I, Florida Statutes; and WHEREAS, this Board wishes to approve the form of the InterJocal Agreement and authorize its execution by the County Manager after review by the County Attorney's Office, NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that: Section 1. The matters contained in the foregoing recitals are incorporated in this resolution by reference. Section 2. The Board approves the terms of and authorizes the County Manager to execute the InterJocal Agreement in substantially the form attached to this resolution as Exhibit "A" after review by the County Attorney's Office. Section 3. The provisions of Resolution No. 377-04 pertaining to the effective date of County contracts is waived with respect to the Interlocal Agreement. ~ " STATE OF FLORIDA ) ) SS: ) COUNTY OF MIAMI-DADE I, HARVEY RUVIN, Clerk of the Circuit Court in and for Miami-Dade County, Florida, and Ex-Officio Clerk of the Board of County Commissioners of said County, DO HEREBY CERTIFY that the above and foregoing is a true and correct copy of Resolution R-958-04, adopted by said Board of County Commissioners at its meeting held on Julv 27.2004. IN WITNESS WHEREOF, I have hereunto set my hand and official seal on this 12th day of August, 2004. HARVEY RUVIN, Clerk Board of County Commissioners Miami-Dade County, FloftflB. Seal ~~ By~ ~f -- ITk Board of County Commissioners Miami-Dade County, Florida 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: ~t!~ "",..~,~t APPROVED AS TO FORM & LANGUAGE a FOR EXECUTION JMG/CMC/AP T:\AGENDA\2004\May042004\CONSENnlntenocaICMB _Reso.doc ~ y/~or CllY OF MIAMI BEACH COIVI\IIISSION 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. Ci Clerk's Office Le islative Trackin Christina M. Cuervo/Kent O. Bonde T:\AGENDA\2004\May0504\Consenl\lnterlocal_SUM.doc AGENDA ITEM DATE f?7A C;--S' -Ocr 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 I~' JZ....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 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 TI F 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 - Interloeal 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 T:\AGENDA\2004\May0504\Consent\lnterlocalcmb.doc Enclosure