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Resolution 2024-33353 RESOLUTION NO. 2024-33353 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE CITY MANAGER AND CITY ATTORNEY TO NEGOTIATE (1) AN INTERLOCAL COOPERATION AGREEMENT (THE "BED TAX INTERLOCAL") BETWEEN THE CITY OF MIAMI BEACH (THE "CITY") AND MIAMI-DADE COUNTY (THE "COUNTY") AND (2) A SEVENTH AMENDMENT TO THE INTERLOCAL COOPERATION AGREEMENT DATED NOVEMBER 16, 1993 (THE "RDA INTERLOCAL AGREEMENT") AMONG THE CITY, THE COUNTY, AND THE MIAMI BEACH REDEVELOPMENT AGENCY("RDA"), FOR THE PURPOSE OF PROVIDING FUNDING TO THE COUNTY TO CONSTRUCT AND OPERATE HOUSING FOR HOMELESS PERSONS AND DOMESTIC VIOLENCE CENTERS, AND TO PROVIDE SERVICES TO INDIVIDUALS EXPERIENCING HOMELESSNESS AND VICTIMS OF DOMESTIC VIOLENCE, COMMENCING IN FY 2027 AND ENDING IN FY 2039, THROUGH THE ALLOCATION OF THE FOUR PERCENT (4%) RESORT BED TAX REVENUE GENERATED BY ROOM NIGHTS SOLD AT THE MIAMI BEACH CONVENTION CENTER HEADQUARTER HOTEL, OR AN AMOUNT EQUIVALENT THERETO FROM OTHER AVAILABLE RESORT BED TAX FUNDING SOURCES, WITH A MINIMUM FLOOR OF $4,000,000 (THE "BED TAX FLOOR") AND A CEILING OF $5,000,000, WHICH CEILING WILL BE ADJUSTED ANNUALLY BY THE LESSER OF THE MIAMI URBAN AREA CONSUMER PRICE INDEX OR TWO PERCENT (2%), WITH ANY DEFICIT BELOW THE BED TAX FLOOR TO BE COVERED FROM SURPLUS REVENUES GENERATED BY THE RDA, PURSUANT TO THE TERMS OF THE SEVENTH AMENDMENT TO THE RDA INTERLOCAL AGREEMENT; AND FURTHER PROVIDING THAT THE FINAL NEGOTIATED TERMS OF THE BED TAX INTERLOCAL AGREEMENT AND THE SEVENTH AMENDMENT TO THE RDA INTERLOCAL AGREEMENT SHALL BE SUBJECT TO APPROVAL BY THE CITY COMMISSION, THE RDA BOARD, AND THE MIAMI-DADE COUNTY BOARD OF COUNTY COMMISSIONERS, AS APPLICABLE. WHEREAS,the City of Miami Beach (the"City")acknowledges the urgent need to address homelessness and provide support to victims of domestic violence, both within the City and the broader region; and WHEREAS, the City is committed not only to maintaining existing services for homeless individuals and domestic violence victims but also to making a substantial contribution toward expanding these services, including shelter, food, clothing, medical care, mental health support, and educational and vocational training for those in need; and WHEREAS, on January 26, 1993, Miami-Dade County(the "County")adopted Resolution No. R-14-93, which (i) recognized the City Center Redevelopment Area (the "City Center RDA") as a"blighted area"within the meaning of Chapter 163, Florida Statutes, and (ii)delegated certain redevelopment powers to the City under Section 163.410, Florida Statutes, to enable the City to address the redevelopment and revitalization of the City Center RDA; and WHEREAS, on February 3, 1993, the City adopted Resolution No. 93-20709, which established the Miami Beach Redevelopment Agency (the "RDA") and designated the City Commission as its members; and WHEREAS, on February 12, 1993, the City adopted Resolution No. 93-20721, which approved the RDA's City Center/Historic Convention Village Redevelopment and Revitalization Area Plan (the "Redevelopment Plan"), which sought to revitalize the City Center RDA; and WHEREAS, the City and County subsequently entered into the original Interlocal Cooperation Agreement (the "RDA Interlocal Agreement") on November 16, 1993, which delegated certain redevelopment powers to the City, including but not limited to the establishment of the Redevelopment Area and the implementation of the Redevelopment Plan; and WHEREAS, the RDA Interlocal Agreement has been amended five times, and a Sixth Amendment has already been approved for execution by the City, County, and RDA; and WHEREAS,the Mayor and City Commission now wish to direct the City Manager and City Attorney to negotiate a new interlocal agreement (the "Bed Tax Interlocal Agreement") between the City and County, effective for a thirteen-year term beginning on October 1, 2027, to allocate to the County the four percent(4%) Resort Bed Tax revenue generated from room nights sold at the Miami Beach Convention Center Headquarter Hotel, or an amount equivalent thereto from other available Resort Bed Tax funding sources (the "City Contribution"), to fund the construction and operation of housing for homeless persons and domestic violence centers, as well as services for individuals experiencing homelessness and victims of domestic violence; and WHEREAS, the Bed Tax Interlocal Agreement will set a funding floor of $4,000,000 (the "Bed Tax Floor") and a ceiling of $5,000,000, with the ceiling adjusted annually by the lesser of the Miami Urban Area Consumer Price Index or two percent(2%), beginning in FY 2028; and WHEREAS, in the event that the Miami Beach Convention Center Hotel is not operational by October 1, 2027, or if there is any shortfall below the Bed Tax Floor in any fiscal year, such deficit will be covered using the available surplus balance from the RDA's revenues; and WHEREAS,the Mayor and City Commission also wish to direct the City Manager and City Attorney to negotiate a Seventh Amendment to the RDA Interlocal Agreement, to allow for the use of surplus RDA funds during the term of the Bed Tax Interlocal Agreement to cover any shortfall to the Bed Tax Floor during any fiscal year. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve and authorize the City Manager and City Attorney to negotiate (1) an Interlocal Cooperation Agreement(the "Bed Tax Interlocal") between the City of Miami Beach (the "City") and Miami-Dade County (the "County"), and (2) a Seventh Amendment to the Interlocal Cooperation Agreement dated November 16, 1993 (the "RDA Interlocal Agreement") between the City, the County, and the Miami Beach Redevelopment Agency(the "RDA"), for the purpose of providing additional funding to the County to construct and operate housing for homeless persons and domestic violence centers, and to provide services to individuals experiencing homelessness and victims of domestic violence, commencing in FY 2027 and ending in FY 2039. This funding will be provided through the allocation of the four percent (4%) Resort Bed Tax revenue generated by room nights at the Miami Beach Convention Center Headquarter Hotel, or an amount equivalent thereto from other available Resort Bed Tax funding sources, with a minimum floor of$4,000,000 (the "Bed Tax Floor") and a ceiling of $5,000,000, adjusted annually by the lesser of the Miami Urban Area Consumer Price Index or two percent (2%).Any deficit to the Bed Tax Floor will be paid to the County out of surplus revenues generated by the RDA, pursuant to the terms of the Seventh Amendment to the RDA Interlocal Agreement. 2 Further, the final negotiated terms of the Bed Tax Interlocal Agreement and the Seventh Amendment to the RDA Interlocal Agreement shall be subject to the approval of the City Commission, the RDA Board, and the Miami-Dade County Board of County Commissioners, as applicable. PASSED and ADOPTED this 14th day of November, 2024. ATTEST: / Steven Meiner 4rI �1OV 2 2' Mayor Rafael E. Granado City Clerk (Sponsored by Commissioner Joseph Magazine) NNN _ .:,':? ,y-,, APPROVED AS TO FORM AND LANGUAGE INCORIORATEDj & FOR EXECUTION erefri\ City Attorney Date 3 Discussion Items - R9 A MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Commissioner Joseph Magazine DATE: November 14, 2024 TITLE: DISCUSS/TAKE ACTION: PROPOSED FUNDING FOR MIAMI-DADE COUNTY FROM MIAMI BEACH REDEVELOPMENT AGENCY SURPLUS REVENUES AND MIAMI BEACH CONVENTION CENTER HEADQUARTER HOTEL BED TAXES. RECOMMENDATION BACKGROUND/HISTORY The City of Miami Beach and the Miami Beach Redevelopment Agency("Agency") recognize the critical need to address homelessness and provide support to victims of domestic violence within our region. In addition to sustaining the current level of homeless services and support for victims of domestic violence, the City of Miami Beach is dedicated to making a significant contribution toward addressing these critical issues by funding comprehensive services that provide shelter, food, clothing, medical care, mental health treatment, and opportunities for training and education to individuals experiencing homelessness, as well as to victims of domestic violence. ANALYSIS I would like to discuss the distribution to Miami-Dade County (the "County") RDA funds and a certain portion of bed tax revenues to be generated by the Miami Beach Convention Center Headquarter Hotel to assist those experiencing homelessness and victims of domestic violence within the County. These funds are intended to support a broad range of services aimed at improving the quality of life for vulnerable populations, including those in need of shelter, medical care, mental health treatment, and social services.The goal is to provide the necessary resources to help homeless individuals regain their independence and assist victims of domestic violence in finding safety and rebuilding their lives. The proposed funding structure below, if approved for recommendation by the Mayor and City Commission, shall be subject to the approval of the Agency Board and the Miami-Dade County Board of County Commissioners and, if necessary, a Seventh Amendment to the Interlocal Agreement. By leveraging the RDA surplus revenues and a portion of the bed tax generated by the MBCC Hotel to fund these essential services,we can ensure that our local businesses remain unaffected by the potential imposition of a 1% tax on food and beverages. • Commencing in FY 2025 and continuing until the opening of the MBCC Hotel, the Miami Beach Redevelopment Agency (the "Agency") shall make a distribution of$4,000,000 of • surplus revenues annually to Miami-Dade County. These funds will be used for the construction, operation, and provision of services for housing for homeless persons and domestic violence centers. The funds will also support services for persons experiencing homelessness and victims of domestic violence, including shelter, food, clothing, medical care, mental health treatment, training, and education (the "Public Purpose"). • From the opening of the MBCC Hotel through the end of FY 2034, the City of Miami Beach shall contribute the 4% bed tax generated by the MBCC Hotel up to a maximum Page 8 of 29 amount of$5,000,000 per fiscal year. This maximum amount shall escalate beginning in FY 2025 by the lesser of the Consumer Price Index (CPI) or 2%. The County shall use these funds for the Public Purpose. FISCAL IMPACT STATEMENT Commencing in FY 2025 and continuing until the opening of the MBCC Hotel, the Miami Beach Redevelopment Agency (the "Agency") shall make a distribution of $4,000,000 of surplus revenues annually to Miami-Dade County. These funds will be used for the construction, operation, and provision of services for housing for homeless persons and domestic violence centers. The funds will also support services for persons experiencing homelessness and victims of domestic violence, including shelter, food, clothing, medical care, mental health treatment, training, and education (the "Public Purpose"). From the opening of the MBCC Hotel through the end of FY 2034, the City of Miami Beach shall contribute the 4% bed tax generated by the MBCC Hotel up to a maximum amount of$5,000,000 per fiscal year. This maximum amount shall escalate beginning in FY 2025 by the lesser of the Consumer Price Index (CPI) or 2%. The County shall use these funds for the Public Purpose. Does this Ordinance require a Business Impact Estimate? (FOR ORDINANCES ONLY) If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/ FINANCIAL INFORMATION N/A CONCLUSION Applicable Area Citywide Is this a "Residents Right to Know" item, Is this item related to a G.O. Bond pursuant to City Code Section 2-17? Project? No Yes Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No If so, specify the name of lobbyist(s) and principal(s): N/A Department Office of Commissioner Joseph Magazine Sponsor(s) Commissioner Joseph Magazine Page 9 of 29 Co-sponsor(s) Condensed Title Discuss/Action, Proposed Funding for MDC from RDA Surplus Revenues & MBCC Hotel Taxes. (Magazine) Page 10 of 29