1A-Adopt 1st Amendment Operating Budget For City Center RDA - FY 2012-13MIAMI BEACH REDEVELOPMENT AGENCY ITEM SUMMARY
Condensed Title:
A Resolution Of The Chairperson And Members Of The Miami Beach Redevelopment Agency Adopting And
Appropriating The First Amendment To The Operating Budget For The City Center Redevelopment Area, For
Fiscal Year 2012/13.
Key Intended Outcome Supported:
Improve the City's overall financial health and maintain overall bond rating
!Supporting Data (Surveys, Environmental Scan, etc.):
N/A
Item Summary/Recommendation:
The budget for the City Center Redevelopment Area (RDA) for Fiscal Year 2012/13 was approved on September
27, 2012 with the adoption of Resolution No. 588-2012. The Redevelopment Agency adopted Resolution No. 595-
2013 on June 5, 2013, setting a public hearing to consider the first amendment to the FY 2012/13 operating
budget for the City Center Redevelopment Area.
The amendment to the operating budget for City Center Redevelopment Area is being done to address increased
expenses attributed to the agreement with Strategic Advisory Group (SAG), which is for an amount not to exceed
$324,943.41 through June 2014. The Redevelopment Agency budgeted $250,000 in the FY 2012/13 budget as a
placeholder to fund this agreement prior to negotiating and approving phase II of SAG's contract. Therefore, an
additional amount of approximately $75,000 is required to fund the remaining portion of SAG's agreement.
Additional legal services are also anticipated from outside counsel to draft the development agreement ground
leases, as well as other related contracts required for the Convention Center Enhancement and Expansion
Project.
The Redevelopment Agency also experienced unanticipated expenses associated with the payment of real estate
taxes for the property located at 340 23rd Street. This property was purchased from American Riviera Real Estate
Company (American Riviera) for the development of the Collins Park Garage. The City entered into a Parking
Permit Agreement with American Riviera for its continued use of the surface parking lots at this location. Pursuant
to Section 8 of the Agreement, American Riviera is required to pay all real estate taxes that are imposed against
the property. However, real estate taxes were not paid for 2011 and 2012, which required the Redevelopment
Agency to pay the taxes and proceed to issue American Riviera a Notice of Termination.
These expenses are off-set by funds $24,104.49, which were escrowed at closing for 2011 property taxes for the
property located at 340 23rd Street. Additionally, Resort Tax Revenue is projected to be $5,221,848 which is
$537,848 more than the budgeted amount of $4,684,000. These additional revenues will be used to cover the real
estate taxes for 340 23rd Street and additional consulting and legal expense for the Convention Center
Enhancement and Expansion Project.
Advisory Board Recommendation:
I N.A.
Financial Information:
Account
1 168-1985-000312 (Professional Services)
2 $129,000 168-1985-000368 (Property Taxes)
3 $111,000 Repayment-Prior Yr Fund Balance
4 ($ 71 ,000) Reduction of Operating Expenses
OBPI Total $569,000
islative Trackin :
013\July 17\RDA
J
MIAMI BEACH 990
AGENDA ITEM __ / *-----::--
DATE l~/7-/ 3>
~ 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
DATE: July 17, 2013 PUBLIC HEARING
SUBJECT: A RESOLUTION OF THE CHAIRPER N AND MEMBERS OF THE MIAMI BEACH
REDEVELOPMENT AGENCY ADOPTING AND APPROPRIATING THE FIRST
AMENDMENT TO THE OPERATING BUDGET FOR THE CITY CENTER
REDEVELOPMENT AREA, FOR FISCAL YEAR 2012/13.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
KEY INTENDED OUTCOME SUPPORTED
Improve the City's financial health and maintain overall bond rating.
ANALYSIS
The budget for the City Center Redevelopment Area (RDA) for Fiscal Year 2012/13 was approved
on September 27, 2012 with the adoption of Resolution No. 588-2012.
City Center Redevelopment Area revenue sources include City and County Tax Increment, Resort
Tax contributions; a ~ mill levy set aside for the Children's Trust pursuant to an lnterlocal
Agreement, dated August 16, 2004 between the RDA, the City of Miami Beach and Miami-Dade
County; and an estimate interest income.
City Center Redevelopment Area expenses include community policing initiatives in City Center to
continue to provide enhanced levels of staffing and services throughout the area, capital projects
and maintenance of RDA capital projects. Administrative Expenses comprising a management fee
allocated to the General Fund to pay for direct and indirect staff support for the RDA; operating
expenses; a set aside for on-going planning and consulting work related to the Convention Center
expansion master plan; capital renewal and replacement projects under $25,000.
The City Center Redevelopment Area also annually assumes the 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.
The Redevelopment Agency adopted Resolution No. 595-2013 on June 5, 2013, setting a public
hearing to consider the first amendment to the FY 2012/13 operating budget for the City Center
Redevelopment Area. The amendment to the operating budget for City Center Redevelopment
991
First Amendment to the FY 2012113 Operating Budget for City Center Redevelopment Area
July 17, 2013
Page 2 of2
Area is being done to address increased expenses relating to the Convention Center Enhancement
and Expansion Project, which will be offset with increased resort tax revenue.
Increased expenses are attributed to the agreement with Strategic Advisory Group (SAG), which is
for an amount not to exceed $324,943.41 through June 2014. The Redevelopment Agency
budgeted $250,000 in the FY 2012/13 budget as a placeholder to fund this agreement prior to
negotiating and approving phase II of SAG's contract. Therefore, an additional amount of
approximately $75,000 is required to fund the remaining portion of SAG's agreement. Additional
legal services are also anticipated from outside counsel to draft the development agreement ground
leases, as well as other related contracts required for the Convention Center Enhancement and
Expansion Project.
The Redevelopment Agency also experienced unantic~ated expenses associated with the payment
of real estate taxes for the property located at 340 23r Street the site of the proposed Collins Park
Garage. As you may recall, this property was purchased from American Riviera Real Estate
Company (American Riviera) for the development of the Collins Park Garage. As part of the
purchase agreement with American Riviera the City entered into a Parking Permit Agreement with
American Riviera for its continued use of the surface parking lots at this location. Pursuant to
Section 8 of the Agreement, American Riviera is required to pay all real estate taxes that are
imposed against the property. However, real estate taxes were not paid for 2011 and 2012, which
required the Redevelopment Agency to pay the taxes and proceed to issue American Riviera a
Notice of Termination. American Riviera made a settlement offer which was rejected. The City
Attorney's Office and the Administration continue to negotiations for a settlement.
These expenses are off-set by funds $24,104.49, which were escrowed at closing for 2011 property
taxes for the property located at 340 23rs Street. Additionally, Resort Tax Revenue is projected to
be $5,221 ,848 which is $537,848 more than the budgeted amount of $4,684,000. These additional
revenues will be used to cover the real estate taxes for 340 23rd Street and additional consulting and
legal expense for the Convention Center Enhancement and Expansion Project.
Attached as Exhibit "A" is a summary of RDA budget which reflects the original adopted budget and
the proposed amended budget.
CONCLUSION
The Exe tive Director recommends adopting the Resolution.
T:\AGENDA\2013\July 17\RDA First Amendment 2012-13 Memo.doc
992
FY 2012113 FY 2012113
Budget Budget
Revenues and Other Sources of Income
Tax Increment-City (1) 168-345920 :s 19,188,000 :s 19,188,000 $
Adjustment for Prior Year Increment (2) $ (1 ,871 ,000) $ (1 ,871 ,000) $
Tax Increment-County (1) 168-311400 $ 14,818,000 $ 14,818,000 $
Adjustment for Prior Year Increment (3) $ (1 ,636,000) $ (1 ,636,000) $
50% Contribution from Resort Tax: 168-(3811 00 & 381400) $ 4,684,000 $ 5,221,848 $ 537,848
'112 Mill Children's Trust Contribution (4) 168-345950 $ 1,575,000 $ 1,570,405 $ (4,595)
Interest Income: 168-8000-361145 $ 13,000 :s 25,000 $ 12,000
Fund Balance Reallocation: (Non-TIF) $ $ $
Fund Balance Renewal and Replacement $ $ $
Other Income/Adjustments: 166-3651 oo $ $ 24,104 $ 24,104
TOTAL REVENUES $ 36,771,000 $ 37,340,357 $ 569,357
Admin/Operating Expenses (168-19115)
Management fee (salaries & benefits) 168 (1 oo & 322) $ 1,041,000 $ 1,041,000 $
Management fee $ 3,000 $ (3,000)
Salaries and Benefits $ 4,000 $ (4,000)
Postage, printing & mailing 168-321 $ 1,000 $ 1,000 $
Office supplies & equipment 168-341 & 323 $ 2,000 $ 2,000 $
Other Operating 168 I 343 $ $
Taxes 168/368 $ $ 128,729 $ 128,729
Meetings & conferences 168-363 $ $
Dues & subscriptions 168-361 $
Professional & related fees 168-312 $ 250,000 $ 650,000 $ 400,000
Repairs & Maintenance 168-342 $ 98,000 $ 98,000 $
Miscellaneous expenses (lnt Svcs) 168 (502,508,343)
Total Admin/Operatlng Expenses 521,729
Project Expenses
Community Policing 168-1124 $ 3,741,000 $ 3,741,000 $
Capital Projects Maintenance:
Property Management: 168-9964 $ 1,143,000 $ 1,143,000 $
Sanitation: 168-9965 $ 2,593,000 $ 2,593,000 $
Greenspace: 168-9966 $ 763,000 $ 704,169 $ (58,831)
Sub-Total Cap Projects Maintenance: $ 4,499,000 $ 4,440,169 $ (56,831)
NWS Project/lincoln Park Complex Contingency $ $
NWS Project-Grant-in-Aid $ $
Transfer to Penn Garage Parking 168-1985-000491 $ 405,000 $ 405,000 $
Transfer to Penn Garage Retaii168-1985-000491 $ $
Transfer to Capital (6) 168-1985-000491 $ 14,943,000 $ 14,943,000 $
Transfer to Capital Renewal & Replacement (6) $ 503,000
Transfer to Capital (6) $ 198,000
Total Project Expenses $ 23,588,000 $ 23,529,169 $ (58,1131)
Reserve and Debt Service Obligations $
Debt Service Cost-2005 + Parity Bonds 168-50 $ 8,415,000 $ 8,415,000 $
Current Debt Service -Lincoln Rd Project (7) 168-50 $ 785,000 $ 785,000 $
Current Debt Service-Bass Museum (B) 168-50 $ 503,000 $ 503,000 $
Reserve for County Admin Fee (9) 168-353 $ 198,000 $ 198,000 $
Reserve for CMB Contribution (1 0) 168-353 $ 261,000 $ 261,000 $
Reserve for Children's Trust Contribution (11) 168-353 $ 1,575,000 $ 1,570,405 $ (4,595)
Reserve for Collins Park Parking Garage $ $ $
Repayment-Prior Yr Fund Balance $ $ 111,055 $ 111,055
Total Reserve and Debt Service
TOTAL EXPENSES AND OBLIGATIONS 36,771,000 37,340,357 569,357
REVENUES -EXPENDITURES $ 0
993
RESOLUTION NO. _____ _
A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE
MIAMI BEACH REDEVELOPMENT AGENCY ADOPTING AND
APPROPRIATING THE FIRST AMENDMENT TO THE OPERATING
BUDGET FOR THE CITY CENTER REDEVELOPMENT AREA, FOR
FISCAL YEAR 2012/13.
WHEREAS, the City Center Redevelopment Area Budget for Fiscal Year 2012/13
was adopted on September 27, 2012 via Resolution No. 588-2012; 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 Redevelopment Agency adopted Resolution No. 595-2013 on June
5, 2013, setting a public hearing to consider the first amendment to the FY 2012/13
operating budget for the City Center Redevelopment Area; and
WHEREAS, the Administration recommends adopting and appropriating the First
Amendment to the RDA Budget to reflect increase expenditures relative to the Convention
Center Enhancement and Expansion Project and real estate taxes associated with 340 23rd
Street, which will be offset with increased resort tax revenue, as well as funds escrowed for
the 2011 real estate taxes for 340 23rd Street.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRPERSON AND
MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, that the Chairperson
and Members of the Miami Beach Redevelopment Agency hereby adopt and appropriate
the first amendment to the operating budget for the City Center Redevelopment Area, for
Fiscal Year 2012/13, appropriating an additional $528,729.
Original Adopted Budget
Proposed Amendment
Proposed Amended Budget
$36,771,000
$ 569,000
$37,340,000
PASSED AND ADOPTED THIS 17TH DAY OF JULY, 2013.
ATTEST:
SECRETARY
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CHAIRPERSON
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APPROVED AS TO
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&.FOR EXECUTION
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