20140627 AgendaMIAMIBEACH
Special Gity Commission Meeting
City Hall, Commission Chambers,3rd Floor, 1700 Convention Center Drive
June27,2014
Mayor Philip Levine
Vice-Mayor M icky Steinberg
Commissioner Michael Grieco
Commissioner Joy Malakoff
Commissioner Edward L. Tobin
Commissioner Deede Weithorn
Commissioner Jonah Wolfson
City Manager Jimmy L. Morales
City Attorney Raul Aguila
City Clerk Rafael E. Granado
Visrt us at www.miamibeachfl.gov for agendas and video "streaming" of City Commission Meetings.
ATTENTION ALL LOBBYISTS
Chapter 2, Article Vll, Division 3 of the City Gode of Miami Beach, entitled "Lobbyists,"
requires the registration of all lobbyists with the City Glerk prior to engaging in any lobbying
activity with the City Commission, any City Board or Gommittee, or any personnel as defined
in the subject Code sections. Copies of the City Code sections on lobbyists laws are
available in the City Clerk's office. Questions regarding the provisions of the Ordinance
should be directed to the Office of the City Attorney.
Call to Order - 2:00 p.m.
REGULAR AGENDA
R7 - Resolutions
R7A A Resolution Approving And Authorizing The Mayor And City Manager To Enter lnto A
Memorandum Of lntent Between The City And Miami-Dade County Regarding Funding
For The City's Convention Center Expansion And Renovation Project.
(City Manager's Office)
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g &AIAMIBTACH
City of Miomi Beoch, 1700 Convention Center Drive, Miomi Beoch, Floridq 331 39, www.miomibeochfl.gov
COMMISSION MEMORANDUM
To: Mayor Phillip Levine and Members of the City Commission
FRoM: Jimmy L. Morales, City Manag
", 7@.*
DATE: June27,2104
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND
CITY MANAGER TO ENTER INTO A MEMORANDUM OF INTENT BETWEEN THE
CITY AND MIAM!-DADE COUNTY REGARDING FUNDING FOR THE CITY'S
CONVENTION CENTER EXPANSION AND RENOVATION PROJECT
ADMINISTRATION RECOMMENDATION
Adopt the resolution approving and authorizing the Mayor and City Manager to enter into the
Memorandum of lntent.
ANALYSIS
Over the past year, the staff from Miami-Dade County (County) and City of Miami Beach (City)
have held discussions regarding the development and funding of a new and expanded
Convention Center on Miami Beach so that our community can host larger conventions, which
would be a major economic benefit. More recently, County and City staff have discussed other
cash flow exchange concepts in order for: 1) the County to address near-term operational
budgetary needs, and 2) the City to have the flexibility to fund longer-term capital needs,
including partial funding for sea-level rise mitigation projects. Additionally, both administrations
believe that funding flexibility should be planned and maintained to partially support operational
costs for a possible future mass transit connection between Miami Beach and the mainland.
As a result, I am recommending the following items that would need to be incorporated into
various agreements and plans over the summer:
1) A modification to the interlocal agreement between the County and City, which governs the
payments from the County to the City of certain funds for projects within the former South
Pointe Redevelopment Agency (South Pointe RDA), to defer payments with the practical
estimated effect, based on projections, of deferring the estimated $18 million payment due
from the County in FY 2014/15 and deferring $14 of the $18 million due from the County in
FY 201sl16.
Agenda ttem R-IA
oate U7i7\3
Memorandum of lntent Between the City and Miami-Dade County
Poge 2
Fiscal Year
Current
Payments
Due the City
from the County
18,000,000
18,500,000
9,000,000
9,400,000
9,700,000
10,100,000
10,400,000
Deferred
Payments
Due the City
from the County
S
4,625,W
9,000,000
16,150,000
16,575,000
10,100,000
19,400,000
9,2s0,000
2014-75
2015-16
207GL7
2017-t8
2018-19
2019-20
202G2t
2027-22
2)
Total 85,100,000 85,100,000
An additional modification to the interlocal agreement would be a clarification that the City
may use these proceeds and unallocated proceeds from prior years received under this
agreement in any manner that it sees fit. The current agreement provides for the use of this
funding for South Pointe, Convention Development Tax, and Resort Tax eligible projects.
The flexibility provided would be especially important in helping the City address stormwater,
climate change and sea-level rise issues.
These modifications help address the County's near-term budgetary issues as well to
partially address City's need for long-term capital funding flexibility.
Extend the life of the City Center Community Redevelopment Area (CRA) from FY 2022-23
to FY 2044145 at the 95 percent tax increment funding level. This allows the CRA to fund,
through the issuance of CRA bonds, the additional funding needed for construction costs of
the new and expanded Convention Center as well as to fund $36 million of previously
approved City Center projects, and provide increased operating and maintenance for the
facility. The $36 million of previously planned City Center projects include $20 million
programmed for the Lincoln Road lmprovement from Washington Avenue to Lennox Avenue
which will be based on the Lincoln Road Master Plan currently undenrvay, $3.2S million for
the second half of the funding for the Bass Museum lnterior Expansion Project, and $12
million for lmprovements to 17th Street and Connectors to Lincoln Road. The issuance of
CRA Bonds will be done through a public offering of debt. The marketplace will dictate the
debt service coverage and debt service reserve requirements for those bonds which will
have a direct impact on how long those bonds will be outstanding.
Since the expansion of the CRA is only for the purposes of providing funding for the
Convention Center expansion, providing funding for previously approved City Center
projects, and providing an adequate additional operating and maintenance subsidy for the
facility, both the County and City administrations agree to recommend that the CRA would
not need to seek prior approval of each year's budget from the Board of County
Commissioners. However, County and City administrations agree that representation by
one County Commissioner on the CRA Board would be appropriate.
4
Memorandum of lntent Between the City and Miami-Dade County
Poge 3
3) Pursuant to an existing interlocal agreement, the City currently receives a flat $4.5 million
per year from Convention Development Taxes to operate and maintain the Convention
Center and that funding will remain in place. The agreement will allow for an additional
annual operating and maintenance subsidy starting at $1 million in 2017 and growing to $4
million by 2021, which will then escalate at 4 percent or CPI annually (whichever is less)
starting in 2026 over the life of the Convention Center, funded either through CRA funds or
through Convention Development Taxes, depending on the availability of the latter,
4) ln addition, The County will allocate, from legally available Convention Development Taxes,
up to $1.5 million per year for 30 years toward eligible Convention Development Tax
projects to incentivize the development of a new Convention Center Hotel at or near the
Convention Center once the hotel is built and is generating new bed taxes. Both County
and City administrations believe that $1.5 million is a fair estimate of the bed taxes that a
new Convention Center Hotelwould generate.
The agreement also includes the potential for further recommendations for operating and
maintenance costs of a mass transit connection between Miami Beach and the mainland from
Convention Development Taxes on a subordinated basis to all existing agreements including
the modified interlocal agreement between the County and the City. Both the County and City
administrations agree that a transit connection link is necessary for the growth of our community
and therefore will continue discussions on this matter.
ln addition, the County and City administrations will actively work towards determining whether
transferring the responsibility of beach maintenance to the City in exchange for the transfer to
the City of the South Beach Local bus service (along with the related County funding) and
permitting the City to operate a citywide trolley services, create economic and or operation
benefits to both parties and if so, to recommend these items to their respective Boards for
approval.
CONCLUSION
The administration recommends that the Mayor and City Commission adopt the resolution
approving and authorizing the Mayor and City Manager to enter into the Memorandum of lntent
subject to, and conditioned upon, subsequent actions and approvals to be taken by the City
Commission and the Board of County Commissioners, respectively,
JLM\KGB
5
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