BIE - Community Redevelopment (06/07/2024)MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
TO:
FROM:
Mayor Steven Meiner and Members of the City Commission
Rickee wams. Interim ciy Manager 9/)
MEETING DATE: June 26, 2024
SUBJECT: BUSINESS IMPACT ESTIMATE FOR:
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,
FLORIDA, AMENDING CHAPTER 34 OF THE CITY CODE, ENTITLED "COMMUNITY
DEVELOPMENT," BY AMENDING ARTICLE II. ENTITLED "COMMUNITY
REDEVELOPMENT," BY AMENDING DIVISION 3. ENTITLED "REDEVELOPMENT TRUST
FUND," BY AMENDING SECTION 34-87, ENTITLED "PROHIBITION," TO AUTHORIZE THE
REVIEW AND APPROVAL OF CERTAIN REQUESTS FOR FUNDING FROM THE
REDEVELOPMENT TRUST FUND OF THE CITY OF MIAMI BEACH REDEVELOPMENT
AGENCY TO SUPPORT THE DEVELOPMENT OF PUBLIC AREAS OF THE CONVENTION
CENTER HEADQUARTERS HOTEL CONSISTENT WITH SECTION 163.370(2)(C)(3),
FLORIDA STATUTES; PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION, AND
AN EFFECTIVE DA TE.
Is a Business Impact Estimate Required?
0 Yes □No (If no, please check one of the boxes below)
If one or more boxes are checked below, this means the City of Miami Beach has
determined that a Business Impact Estimate for the above-referenced Ordinance is not
required by State law.
□The proposed Ordinance is required for compliance with Federal or State law or
regulation;
□The proposed Ordinance relates to the issuance or refinancing of debt;
□The proposed Ordinance relates to the adoption of budgets or budget
amendments, including revenue sources necessary to fund the budget;
□The proposed Ordinance is required to implement a contract or an agreement,
including, but not limited to, any Federal, State, local, or private grant or other
financial assistance accepted by the City;
□The proposed Ordinance is an emergency ordinance;
□The Ordinance relates to procurement; or
□The proposed Ordinance is enacted to implement the following:
a. Part II of Chapter 163, Florida Statutes, relating to growth policy, county and
municipal planning, and land development regulation, including zoning,
development orders, development agreements and development permits;
b. Sections 190.005 and 190.046, Florida Statutes, regarding community
development districts;
Business Impact Estimate
Page 2
c. Section 553.73, Florida Statutes, relating to the Florida Building Code; or
d. Section 633.202, Florida Statutes, relating to the Florida Fire Prevention Code.
If none of the above exceptions apply, this Business Impact Estimate is hereby provided
in accordance with Section 166.041(4), Florida Statutes.
1. A summary of the proposed Ordinance and its purpose is more fully set forth in the
Commission Memorandum accompanying the Ordinance, as well as in the recitals to the
Ordinance itself, which are attached hereto.
2. The City of Miami Beach estimates that the proposed Ordinance will have no direct
economic impact on private, for-profit businesses in the City of Miami Beach, that the
proposed Ordinance will have no direct compliance costs that businesses may
reasonably incur; that the proposed Ordinance will not impose any new charge or fee for
which businesses will be financially responsible, and that the proposed Ordinance will not
impact the City of Miami Beach's regulatory costs and will not generate any revenue from
new charges or fees.
3. Good faith estimate of the number of businesses likely to be impacted by the proposed
Ordinance:
The City of Miami Beach estimates that no businesses are likely to be impacted by the
proposed Ordinance.
14. Additional comments: None.
MIAMI BEACH
City of Miami Beach, 170O Convention Center Drive, Miami Beach. Florida 33139, www.miamibeachfl.gov
TO:
FROM:
DATE:
SUBJECT:
COMMISSION MEMORANDUM
Mayor Steven Meiner and Members of the City Commission
Ricardo ±. Dopico, ciy Atorey (S2
May 15, 2024
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 34 OF THE CITY
CODE, ENTITLED "COMMUNITY DEVELOPMENT," BY AMENDING
ARTICLE II, ENTITLED "COMMUNITY REDEVELOPMENT," BY
AMENDING DIVISION 3, ENTITLED "REDEVELOPMENT TRUST FUND,"
BY AMENDING SECTION 34-87, ENTITLED "PROHIBITION," TO
AUTHORIZE THE REVIEW AND APPROVAL OF CERTAIN REQUESTS
FOR FUNDING FROM THE REDEVELOPMENT TRUST FUND OF THE CITY
OF MIAMI BEACH REDEVELOPMENT AGENCY TO SUPPORT THE
DEVELOPMENT OF PUBLIC AREAS OF THE CONVENTION CENTER
HEADQUARTERS HOTEL CONSISTENT WITH SECTION 163.370(2)(C)(3),
FLORIDA STATUTES; PROVIDING FOR REPEALER, SEVERABILITY,
CODIFICATION, AND AN EFFECTIVE DATE.
This Ordinance has been placed on the City Commission meeting agenda for First Reading at
the request of Commissioners Alex J. Fernandez and Tanya K. Bhatt. The Ordinance has been
drafted pursuant to the direction of the Board of the Miami Beach Redevelopment Agency
("Agency') at its meeting on March 13, 2024.
Section 163.370(2)(c)(3), Florida Statutes (the "Redevelopment Act"), authorizes the use of
Agency resources to support "public areas of major hotels that are constructed in support of
convention centers, including meeting rooms, banquet facilities, parking garages, lobbies, and
passageways."
The City, through Resolution 2018-30425, approved a development and ground lease agreement
between the City and MB Mixed Use Investment, LLC, a Florida limited liability company (the
"Hotel Developer'') for the development and operation of the Convention Center Hotel
contemplated by the Redevelopment Plan at the location defined in the lease agreement (the
"Hotel Parcel"). The Hotel Parcel is ready for the commencement of construction of the
Convention Center Hotel upon the closing of construction financing. Due to widespread market
conditions, the cost to construct the Convention Center Hotel has increased by more than $237
million since the award of the lease agreement, and current debt and equity markets cannot alone
finance the construction cost of the Convention Center Hotel.
On March 13, 2024, the Board of the Agency adopted a motion directing Agency staff to negotiate
a grant agreement with the Hotel Developer to provide financial support from the Agency trust
fund for the support of the Convention Center Hotel (the "Motion").
Commission Memo
May 15, 2024
Page 2
Section 34-87 of the City Code currently prohibits the use of Agency funds to support a project
that is owned by or leased to a private entity. Accordingly, the amendments set forth in the
attached Ordinance have been drafted to permit the consideration of a grant of Agency funds to
the Hotel Developer to support the construction of the hotel, as previously authorized by the
Agency Redevelopment Plan and the Redevelopment Act, and pursuant to the direction of the
Agency Board on March 13, 2024.
RJD/NK/sp
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ORDINANCE NO. _
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 34 OF THE
CITY CODE, ENTITLED "COMMUNITY DEVELOPMENT," BY
AMENDING ARTICLE II, ENTITLED "COMMUNITY REDEVELOPMENT,"
BY AMENDING DIVISION 3, ENTITLED "REDEVELOPMENT TRUST
FUND," BY AMENDING SECTION 34-87, ENTITLED "PROHIBITION,"
TO AUTHORIZE THE REVIEW AND APPROVAL OF CERTAIN
REQUESTS FOR FUNDING FROM THE REDEVELOPMENT TRUST
FUND OF THE CITY OF MIAMI BEACH REDEVELOPMENT AGENCY TO
SUPPORT THE DEVELOPMENT OF PUBLIC AREAS OF THE
CONVENTION CENTER HEADQUARTERS HOTEL CONSISTENT WITH
SECTION 163.370(2)(C)(3), FLORIDA STATUTES; PROVIDING FOR
REPEALER, SEVERABILITY, CODIFICATION, AND AN EFFECTIVE
DATE.
WHEREAS, in 1998, the City Commission adopted Ordinance 98-3159, which
prohibits the City Commission from authorizing the Miami Beach Redevelopment Agency
(the "Agency") from utilizing any Agency funds to support a project that is owned by or
leased to a private entity; and
WHEREAS, in 2014, the Agency, City, and Miami-Dade County adopted an
amendment to the Agency's redevelopment plan to define the Convention Center
Renovation and Expansion Project (the "Convention Center Project"), which includes the
construction of a convention center headquarters hotel (the "Convention Center Hotel"),
and to authorize the use of Agency trust fund revenues as a funding source for the
Convention Center Project; and
WHEREAS, the City, through Resolution 2018-30425, approved a development
and ground lease agreement between the City and MB Mixed Use Investment, LLC, a
Florida limited liability company (the "Hotel Developer'') for the development and
operation of the Convention Center Hotel contemplated by the Redevelopment Plan at
the location defined in the lease agreement (the "Hotel Parcel"); and
WHEREAS, the Hotel Parcel is ready for the commencement of construction of
the Convention Center Hotel upon the closing of construction financing; and
WHEREAS, due to widespread market conditions, the cost to construct the
Convention Center Hotel has increased by more than $237 Million since the award of the
lease agreement, and current debt and equity markets cannot alone finance the
construction cost of the Convention Center Hotel; and
WHEREAS, on March 13, 2024, the Agency Board, by motion, directed Agency
staff to negotiate a grant agreement with the Hotel Developer to provide financial support
from the Agency trust fund for the support of the Convention Center Hotel (the "Motion");
and
WHEREAS, section 163.370(2)(c)(3), Florida Statutes (the Redevelopment Act")
authorizes the City to utilize Agency resources to support "public areas of major hotels
that are constructed in support of convention centers, including meeting rooms, banquet
facilities, parking garages, lobbies, and passageways"; and
WHEREAS, the City desires to amend Section 34-87, as originally embodied in
Ordinance 98-3159, to permit the consideration of a grant of Agency funds to the Hotel
Developer to support the construction of the Hotel, as previously authorized by the
Agency Redevelopment Plan, the Redevelopment Act, and the Motion.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA:
SECTION 1. That Chapter 34, "Community Development," Article II, "Community
Redevelopment," Division 3, "Redevelopment Trust Fund," Section 34-87 of the Code of
Ordinances of the City of Miami Beach is hereby amended as follows:
CHAPTER 34
COMMUNITY DEVELOPMENT
* * *
ARTICLE II. - COMMUNITY REDEVELOPMENT
* * *
DIVISION 3. - REDEVELOPMENT TRUST FUND
Notwithstanding anything to the contrary contained in F.S. Ch. 163, Pt. Ill, or any
other provision of law, the mayor and city commission shall not pass any ordinance or
resolution authorizing the Miami Beach Redevelopment Agency (the "Agency") to use
any moneys deposited to or held in any redevelopment trust fund created, established
and maintained by said agency pursuant to F.S. § 163.387, for any project that is owned
by, or leased to, any private person or entity, other than a person or entity designated as
not-for-profit under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended,
whose principal purpose is the support, enhancement, improvement or advancement of
the arts, cultural activities or education. It is the intent of this section that moneys in the
redevelopment trust fund shall be used solely to undertake and carry out public
redevelopment projects authorized by F.S. Ch. 163, Pt. Ill, which projects will be owned
by the city and/or the agency, or by the not-for-profit persons or entities enumerated
above; provided, however, that this section shall not be construed to impair the obligation
of any contract to which the city or the agency is a party as of the date of adoption of this
section, or to restrict the future expenditure of moneys in the redevelopment trust fund
therefor, including, but not limited to, any contract with the holders of any bonds or other
obligations of the city or the agency, or to comply with any obligation the city and/or the
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agency to acquire or construct parking facilities for the Miami Beach Marina: provided
further that nothing herein shall prohibit the authorization of Agency funds to support the
development of public areas of the Miami Beach convention center headquarters hotel
on the corner of 17th Street and Convention Center Drive, including meeting rooms,
banquet facilities, parking garages, lobbies, and passageways in accordance with F.S. §
163.370(2)(c)(3).
SECTION 2. REPEALER.
All ordinances or parts of ordinances in conflict herewith be and the same are
hereby repealed.
SECTION 3. SEVERABILITY.
If any section, subsection, clause or provision of this Ordinance is held invalid, the
remainder shall not be affected by such invalidity.
SECTION 4. CODIFICATION.
It is the intention of the Mayor and City Commission of the City of Miami Beach,
and it is hereby ordained that the provisions of ordinance 98-3159 as amended by this
ordinance shall become and be made part of the Miami Beach City Code as Section 34-
87 thereof. The sections of this ordinance may be renumbered or relettered to accomplish
such intention, and the word "ordinance" may be changed to "section," "article," or other
appropriate word.
SECTION 5. EFFECTIVE DA TE.
This Ordinance shall take effect on the day of2024.
PASSED AND ADOPTED this day of,2024.
ATTEST:
Steven Meiner, Mayor
Rafael E. Granado, City Clerk
Underline denotes additions
Strikethrough denotes deletions
(sponsored by Commissioners Alex J. Fernandez
and Tanya K. Bhatt)
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
City Attorney Date
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