1B-Adopt FY 2012-13 Budget City Center Anchor Shops And Pennsylvania Avenue ShopMIAMI BEACH REDEVELOPMENT AGENCY ITEM SUMMARY
Condensed Title:
A Resolution of the Chairperson and Members of the Miami Beach Redevelopment Agency adopting and appropriating
the operating budgets for the City Center Redevelopment Area, the Anchor Shops and Parking Garage and the
Pennsylvania Avenue Shops and Garage for Fiscal Year 2012/13.
Key Intended Outcome Supported:
Improve the City's overall financial health and maintain overall bond rating
~upporting Data (Surveys, Environmental Scan, etc.):
One of the City's Key Intended Outcomes is to ensure well designed and well maintained capital projects and
infrastructure. In keeping with this goal, approximately 53 percent or $19.5 Million of the proposed Budget for City
Center is being allocated towards capital expenditures including new capital projects, renewal and replacement, and
maintenance of existing RDA capital infrastructure.
Issue:
Item Summary/Recommendation:
The proposed budget for the City Center Redevelopment Area for Fiscal Year 2012/13 has been prepared to coincide
with the overall City budget process, and is being presented to assist in providing a comprehensive overview of the
district Additionally, the revenues and expenses associated with the operations of the Anchor Shops and Parking
Garage as well as the Pennsylvania Avenue Shops and Garage are presented as separate schedules so as to eliminate
any perception that proceeds from the Facility's operations are pooled with TIF and other Trust Fund revenues. As in
previous years, the City has received correspondence from the County, advising of the finalization of the tax roll for the
prior year, which in the case of FY 2010/11, reflects a sizeable decrease from the preliminary valuation for the same
year and will result in a corresponding adjustment/reduction in Tl F revenues totaling $3.5 Million. In order to address the
existing and future obligations of the Redevelopment Area, it is recommended that the Redevelopment Agency adopt
the attached Resolution which establishes the operating budgets for the City Center Redevelopment Area, the Anchor
Shops and Parking Garage and the Pennsylvania Avenue Shops and Garage for FY 2012/13.
Adviso Board Recommendation:
N.A.
Financial Information:
Source of
Funds:
Financial Impact Summary:
1,499,000
Cit Clerk's Office legislative Tracking:
Kent Bonde, Laura Aker and Kathie Brooks
TF
Budget
Director
GENDA\2012\sep27\Regular\RDA Budget.SUM.doc
Account
Center Redevelopment Area Fund
Anchor Shops and Parking Garage Operations
Pennsylvania Avenue Shops and Garage Operations
359
AGENDA ITEM
DATE
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
REDEVELOPMENT AGENCY MEMORANDUM
TO: Chairperson and Members of the Miami Beach Redevelopment Agency
FROM: Kathie Brooks, Interim Executive Director
DATE: September 27, 2012
SUBJECT: A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI BEACH
REDEVELOPMENT AGENCY, ADOPTING AND APPROPRIATING THE OPERATING
BUDGETS FOR THE CITY CENTER REDEVELOPMENT AREA~THE ANCHOR SHOPS
AND PARKING GARAGE AND THE PENNSYLVANIA AVENUE SHOPS AND GARAGE
FOR FISCAL YEAR 2012/13.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The proposed budget for the City Center Redevelopment Area (RDA) for Fiscal Year 2012/13 has
been prepared to coincide with the overall City budget process, and is being presented today to
assist in providing a comprehensive overview of the district. Please refer to Attachment A for the
proposed budget details.
The attached budget reflects a small reduction in Tax Increment (TIF) revenue from the Proposed
Budget Book distributed on September 7, 2012 by LTC# 230-2012, as result of the Commission's
action to reduce the Operating Millage from 6.1122 to 6.0909 at the first public hearing on
September 12, 2012.
Revenues
Based on the 2012 Certificate of Taxable Value from the Property Appraiser's Office, the preliminary
value of property in City Center is actually projected to increase by 5.4% over 2011, marking the
second year in a row; values seem to be back on the rise, following two years of decline. However,
as in previous years, the City has received correspondence from the County, advising of the
finalization of the tax roll for the prior year, which in the case of FY 2010/11, reflects a sizeable
decrease from the preliminary valuation for the same year and will result in a corresponding
adjustment/reduction in TIF revenues totaling $3.5 Million. Further the revised valuation for the
January 1, 2012 values increased from the Miami-Dade County Property Appraiser July 1, 2012,
reflects a decrease of 9% from the valuation received July 1, 2011. Thus a significant
adjustment/reduction can also be expected for FY2012/13.
Additional sources of revenue include an estimated $4.6 Million in Resort Tax contributions; a Y2 mill
levy in the amount of $1.5 Million, to be set aside for the Children's Trust pursuant to an lnterlocal
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September 27, 2012
Redevelopment Agency Memorandum
Operating Budget for City Center for FY 2012/13
Page 2of3
Agreement, dated August 16, 2004 between the RDA, the City of Miami Beach and Miami-Dade
County; and an estimated $13,000 in interest income.
Expenditures
Project-related expenses account for approximately $23.6 Million, which includes $3.7 Million to be
allocated for community policing initiatives in City Center to continue to provide enhanced levels of
staffing and services throughout the area, and $4.5 Million for maintenance of RDA capital projects.
On-going and planned capital projects in City Center are projected to account for $14.2 Million in the
FY 2012/13 Budget, and generally include allocations for construction of the Collins Park Garage;
additional funding for the Collins Canal enhancement project to move the curb line of Dade
Boulevard further North to provide room for increased landscaping; Lincoln Road landscaping;
Collins Canal seawall repair by the Botanical Garden; a reserve for improvements to Euclid Avenue
(pending addition review and outreach); and aluminum streetlight pole replacement; and,
improvements to Euclid Avenue. 1 An additional $705,000 is being proposed for capital renewal and
replacement projects; including repairs and maintenance to certain City-owned projects and
facilities, including the Carl Fisher Club House, the Bass Museum, the Miami City Ballet, the Anchor
Garage and lighting replacement along Lincoln Road. Additionally, $405,000 in transfers to the
Pennsylvania Avenue Shops and Garage are budgeted to offset the City's costs associated with the
retail and parking operations.
Administrative Expenses total $1.4 Million, comprising a management fee of $1 ,041 ,000 which is
allocated to the General Fund to pay for direct and indirect staff support for the RDA; $66,000 for
actual operating expenses; approximately $241 ,000 set aside for on-going planning and consulting
work related to the Convention Center expansion master plan; and $98,000 for capital renewal and
replacement projects under $25,000. It should be noted that the Management Fee allocation is
reflective of actual city resources applied to the operation of the RDA, as supported by the RSM
McGiadrey Cost Allocation Study, dated July 20, 2009. It should further be noted that Administrative
and Operating expenses only account for less than four percent (4%) of the total budget, which is
well below the 20% threshold level established (and permitted) in the lnterlocal Agreement between
the City and the County.
The current combined debt service on the 2005 Series Bonds and the Parity Bonds accounts for
approximately $8.4 Million annually. City Center also continues assuming debt service payments on
the portion of the Gulf Breeze Loan used to pay for the Bass Museum expansion and renovation,
and the portion of the Sunshine State Loan Program used for Lincoln Road improvements, which
collectively account for approximately $1.3 Million.
Reserve line item expenditures include those items that, pursuant to the existing Bond Covenants,
may only be expended once the annual debt service obligations have been met. These include the
County's administrative fees, equivalent to 1.5% of its respective TIF payment; and the
corresponding contribution to the City's General Fund, equivalent to 1.5% of the City's share of its
TIF payment; and the remittance of the % mill tax levy back to the Children's Trust.
The revenues and expenses associated with operations of the newly opened Pennsylvania Avenue
Shops and Garage and the Anchor Shops and Parking Garage are presented as separate
schedules in order to eliminate any perception that proceeds from the facilities' operations are
pooled with TIF and other Trust Fund revenues:
Anchor Shops and Parking Garage
Garage revenues at the Anchor Garage are projected at approximately $3 Million, with operating
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September 27, 2012
Redevelopment Agency Memorandum
Operating Budget for City Center for FY 2012113
Page 3 of3
expenses, (including depreciation, contractual revenue-sharing obligations with Loews and general
fund administrative fees), of approximately $2.4 Million and reserves of $621,000 The Anchor retail
operations is expected to generate $714,000 in revenues, including interest, with operating
expenses associated with the retail management contract, related reimbursable expenditures, and
depreciation totaling $158,000, as well as projected reserves of $556,000.
Pennsylvania Avenue Shops and Garage
In consideration of the fact that the Pennsylvania Avenue Shops and Garage was built by the RDA
on City-owned property, the operation of the facility has been structured in the form of a ground
lease between the City and the RDA, providing terms for both the Garage and Retail operations.
The garage operations include base rent and an administrative fee, consistent with that of the
Anchor Garage, Parking's operational fee, and revenue sharing between the City and the RDA. The
Retail operations also include base rent and an administrative fee, as well as a retail lease rate
based on 2010 retail market cap rates. The retail operations also include revenue sharing between
the City and the RDA.
Based on estimates of the garage's current-year operating results, and taking into consideration the
successful execution of a lease agreement with Penn 17, LLC., for the entire retail space, the
facility is anticipated to generate $1,094,000 in revenues in FY 2012/13, comprising $520,000 in
parking revenues and $57 4,000 in retail income. However, since the facility is still anticipated to
operate at a loss during FY 2012/13, the RDA plans to subsidize its operations through a transfer of
$405,000 to the parking operations. Expenses for the facility are budgeted at $1.4 Million,
comprising $925,000 in direct operating costs for the garage and $574,000 in lease term-related
obligations.
CONCLUSION
In order to address the existing and future obligations in the Redevelopment Area, it is
recommended that the Redevelopment Agency adopt the attached Resolution, which establishes
the operating budgets for the City Center Redevelopment Area, the Anchor Shops and Parking
Garage, and the Pennsylvania Avenue Shops and Garage for FY 2012/13.
KGB:MS:PAR:KOB
Attachment
T:\AGENDA\2012\sep 27\Regular\RDABudgetmemo2012 _13.doc
362
ATTACHMENT A
Miami Beach Redevelopment Agency
City Center Redevelopment Area
FY 2012/13 Proposed Operating Budget
September 27, 2012
FY 09/10 FY 10/11 FY11/12 FY12/13
Actual Actual Ado~ted Pro~osed
Revenues and Other Sources of Income
Tax Increment-City (1) $ 15,767,520 $ 16,902,090 $ 18,337,693 $ 19,188,000
Adjustment for Prior Year Increment (2) $ $ $ (1 ,326,883) $ (1 ,871 ,000)
Tax Increment-County (1) $ 13,541,895 $ 14,785,495 s 14,291,236 $ 14,818,000
Adjustment for Prior Year Increment (3) $ $ $ (1,262,384) $ (1 ,636,000)
50% Contribution from Resort Tax $ 3,845,346 $ 4,492,075 $ 4,298,477 $ 4,684,000
'1/2 Mill Children's Trust Contribution (4) $ 1,498,222 $ 1,474,830 $ 1,487,121 $ 1,575,000
Interest Income $ 16,315 s 9,291 $ 179,000 $ 13,000
Fund Balance Renewal and Replacement $ $ $ 1,370,981 $
Other Income/Adjustments: $ 10,026 $ s $
TOTAL REVENUES $ 34,67!M24 $ 37,663,781 $ 37,375,241 $ 36,771,000
Admin/Operating Expenses
Management fee (salaries & benefits) $ 489,564 $ 989,700 s 1,010,901 $ 1,041,000
Postage, printing & mailing $ 3,544 $ 2,858 $ 4,123 $ 3,000
Office supplies & equipment $ 2,828 $ 3,583 $ 3,810 $ 4,000
Meetings & conferences $ 812 $ 788 $ 1,351 $ 1,000
Dues & subscriptions $ 1,120 $ 12 $ 1,260 $ 2,000
Professional & related fees $ 79,189 $ 76,291 $ 260,000 $ 250,000
Repairs & Maintenance $ $ $ 84,857 $ 98,000
Miscellaneous expenses (lnt Svcs) $ $ $ 105,998 $ 47,000
Total Admin/Operating Expenses $ 577,057 $ 1,073,232 $ 1,412,300 $ 1,446,000
Project Expenses
Community Policing 168-1124 $ 2,453,667 $ 2,753,374 $ 3,413,695 $ 3,741,000
Capital Projects Maintenance: $
Property Management: 168-9964 $ 1 '114,823 $ 990,358 $ 1,061,006 $ 1,143,000
Sanitation: 168-9965 $ 1,979,746 $ 2,092,146 $ 2,661,686 $ 2,593,000
Greenspace: 168-9966 $ $ $ 622,896 $ 763,000
Sub-Total Cap Projects Maintenance: $ 3,094,569 $ 3,082,504 $ 4,345,588 $ 4,499,000
NWS Project/Lincoln Park Complex Contingency $ $ $ $
NWS Project-Grant-in-Aid $ $ 15,000,000 $ $
Transfer to Penn Garage Parking $ $ $ 48,801 $ 405,000
Transfer to Penn Garage Retail $ $ $ 347,112 $
Transfer to Capital (6) $ 13,170,050 $ 1,107,946 $ 13,541,301 $ 14,943,000
Total Project Expenses $ 18,718,286 $ 21,943,824 $ 21,696,497 $ 23,588,000
Reserve and Debt Service Obligations
Debt Service Cost -2005 + Parity Bonds $ 8,479,358 $ 8,498,087 $ 8,393,816 $ 8,415,000
Current Debt Service -Lincoln Rd Project (7) $ 1,086,961 $ 1,094,176 $ 1,103,367 $ 785,000
Current Debt Service -Bass Museum (8) $ 506,531 $ 505,859 $ 502,747 $ 503,000
Reserve for County Admin Fee (9) $ 203,128 $ 221,782 $ 195,433 $ 198,000
Reserve for CMB Contribution (1 0) $ 236,513 $ 253,531 $ 255,162 $ 261,000
Reserve for Children's Trust Contribution (11) $ 1,506,169 $ 1,474,856 $ 1,487,121 $ 1,575,000
Reserve for Collins Park Parking Garage $ $ $ 2,268,800 $
Repayment-Prior Yr Fund Balance $ s s
Total Reserve and Debt Service $ 12,018,660 $ 12,048, 14,206,444 s 11,737,000
TOTAL EXPENSES AND OBLIGATIONS $ 31,314,003 $ 35,065,348 $ 37,375,241 $ 36,771,000
REVENUES -EXPENDITURES $ 3,365,321 $ 2,598,433 $ {0) $
363
ATTACHMENT A (continued)
Anchor Shops and Parking Garage (16th Street Parking Garage)· Proposed FY 2012/13 Operating Budget
PARKING OPERATIONS: (Rounded)
FY 09/10 FY 10/11 FY 11/12 FY 12/13
Revenues: Actual Actual Adopted Proposed
Parking Operations (463-8000) $ 2,707,650 $ 2,368,000 $ 2,885,000 $ 3,049,000
Interest Pooled Cash $ 20,964 $ 14,796 $ 23,581 $ 20,000
TOTAL REVENUES $ 2,728,614 $ 2,382,796 $ 2,908,581 $ 3,069,000
Operating Expenses:
Parking Operations (463·1990) $ 960,220 $ 1,202,017 $ 1,773,125 $ 1,338,000
Garage Use Fee (To Loews) $ 363,364 $ 471,918 $ 408,800 $ 463,000
Parking Management Fee to General Fund $ 158,129 $ 189,074 $ 206,221 $ 197,000
Capital Maintenance -Parking Operations $ $ $ 520,435 $ 621,000
Reserve & Future Renewal & Replacement /Depreciation $ 450,824 $ 450,824 $ $ 450,000
TOTAL EXPENSES $ 1,932,537 $ 2,313,833 $ 2,908,581 $ 3,069,000
NET $ 796,077 $ 68,963 $ $
RETAIL OPERATIONS: (Rounded)
FY 09/10 FY 10/11 FY 11/12 FY 12/13
Revenues: Actual Actual Adopted Proposed
Retail Leasing (465-8000) $ 704,335 $ 714,150 $ 714,150 $ 708,000
Interest Pooled Cash $ 13,334 $ 9,202 $ 3,852 $ 6,000
TOTAL REVENUES $ 717,669 $ 723,352 $ 718,002 $ 714,000
Operating Expenses:
Retail Leasing Property Management Fee (465-1995) $ 60,631 $ 76,917 $ 62,720 $ 52,000
Retail Internal Service Expenses $ 33,523 $ 50,683 $ 41,129 $ 51,000
Capital Maintenance -Retail Operations $ $ 45,591 $ $ 100,000
Reserve & Future Renewal & Replacement /Depreciation $ 30,853 $ 55,396 $ 614,153 $ 511,000
TOTAL EXPENSES $ 125,007 $ 228,587 $ 718,002 $ 714,000
NET $ 592,662 $ 494,765 $ $
Pennsylvania Avenue Garage and Shops· Proposed FY 2012/13 Operating Budget
PARKING OPERATIONS: (Rounded)
FY 09/10 FY 10/11 FY 11/12 FY 12/13
Revenues (467-8000): Actual Actual Budget Proposed
Parking Operations $ $ 478,583 $ 521,400 $ 520,000
Transfer from RDA Operations -Parking $ $ $ 48,801 $ 405,000
Interest Pooled Cash $ $ $ $
TOTAL REVENUES $ $ 478,583 $ 570,201 $ 925,000
Expenditures (467-1996):
Parking Operations $ $ 300,727 $ 453,677 $ 534,000
Parking Base Rent (1) $ $ 23,552 $ 23,552 $ 23,000
Parking Admin Fee (2) $ $ 39,716 $ 47,604 $ 47,000
Parking Base Fee (3) $ $ 30,073 $ 45,368 $ 53,000
Future Renewal & Replacement /Depreciation $ $ 268,316 $ $ 268,000
TOTAL EXPENSES $ $ 662,384 $ 570,201 $ 925,000
NET $ $ (183,801) $ 0 $
RETAIL OPERATIONS: (Rounded)
FY 09/10 FY 10/11 FY 11/12 FY 12/13
Revenues (466-8000): Actual Actual Budget Proposed
Retail Leasing $ $ $ 292,763 $ 574,000
Transfer from RDA Operations -Retail $ $ $ 347,112 $
Interest Pooled Cash $ $ $ $
TOTAL REVENUES $ $ $ 639,875 $ 574,000
Expenditures (466-1997):
Retail Base Rent (4) $ $ $ 276,448 $ 278,000
Retail Admin Fee (5) $ $ $ 26,729 $ 53,000
Additonal Base Rent (6) $ $ $ $ 51,000
Leasing Commissions $ $ $ 326,698 $
Savings/Contingency $ $ $ 10,000 $ 192,000
TOTAL EXPENSES $ $ $ 639,875 $ 574,000
NET $ $ $ $
364
RESOLUTION NO., ____ _
A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF
THE MIAMI BEACH REDEVELOPMENT AGENCY ADOPTING
AND APPROPRIATING THE OPERATING BUDGET FOR THE
CITY CENTER REDEVELOPMENT AREA, THE ANCHOR SHOPS
AND PARKING GARAGE AND THE PENNSYLVANIA AVENUE
SHOPS AND PARKING GARAGE FOR FISCAL YEAR 2012/13
WHEREAS, the proposed City Center Redevelopment Area Budget has been prepared to
coincide with the overall City budget process; and
WHEREAS, the proposed City Center Redevelopment Area Budget reflects anticipated
construction project costs in addition to operating and debt service costs for the fiscal year; and
WHEREAS, the proposed budgets for the Anchor Shops and Parking Garage and the
Pennsylvania Avenue Shops and Garage have been included as separate schedules to the City
Center Redevelopment Area Budget, reflecting projected revenues and operating expenses for the
fiscal year; and
WHEREAS, the Executive Director recommends approval of the proposed Fiscal Year
2012/13 budgets for the City Center Redevelopment Area, as well as for the Anchor Shops and
Parking Garage and the Pennsylvania Avenue Shops and Garage; and
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRPERSON AND MEMBERS
OF THE MIAMI BEACH REDEVELOPMENT AGENCY, that the Chairperson and Members hereby
adopt and appropriates the operating budget for the City Center Redevelopment Area, the Anchor
Shops and Parking Garage and the Pennsylvania Avenue Shops and Garage for Fiscal Year
2012/13, as follows:
City Center Redevelopment Area
Anchor Garage Parking Operations
Anchor Garage Retail Operations
Pennsylvania Avenue Garage Parking Operations
Pennsylvania Avenue Garage Retail Operations
$36,771,000
$3,069,000
$714,000
$925,000
$574,000
PASSED AND ADOPTED THIS SEPTEMBER 27TH DAY OF 2012.
ATTEST:
SECRETARY
KB:MS:TF:KOB
T:IAGENDA\2012\sep2012Regular\RDA BUDGET RESO 2012_13.doc
CHAIRPERSON
365
APPROVED AS TO
FORM & LANGUAGE
FOR
366