1A-Adopt Operating Budgets City Center Anchor Shops And Parking GarageMIAMI 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
Avenue Shops and for Fiscal Year 2014115.
Item Summary/Recommendation :
The proposed budget for the City Center Redevelopment Area for Fiscal Year2014l15 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.
Based on the 2014 Certification of Taxable Value from the Property Appraiser's Office, the preliminary value of property
in City Center is $4,186,683,074, an increase of 8.1o/o over20'13. 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
2012113, reflects a decrease from the preliminary valuation for the same year and will result in a corresponding
adjustmenUreduction in TIF revenues totaling $2,447,O0Ofor2O14l15,versus $168,000 for2013/14and $3.5 million for
2012113. Additional sources of revenue include alz mill levy in the amount of $1.8 million, to be 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 estimated $25,000 in interest income. The total proposed FY 2014115 City
Center Redevelopment Area Budget is $38,519,000.
ln 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
2014t15.
Enhance Beauty and Vibrancy of Urban And Residential Neighborhoods; Focusing on Cleanliness, Historic
Assets, ln Select Neighborhoods And Redevelopment Areas.
Data (Surveys, Environmental Scan, etc.):
One out of ten residents (10%) feels the best way to improve the overall quality of life in Miami Beach is to increase
CiW beautification and cleanliness.
Financial lnformation:
Source of
Funds:
Amount Account
1 $38,519,000 City Center Redevelopment Area Fund
2 $ 6,395,000 Anchor Shops and Parking Garage Operations
3 $ 1,681,000 Pennsylvania Avenue Shops and Garage Operations
OBPI Total $46,595,000
Financial lmpact Summary:
Max Sklar, Georgette Daniels and John Woodruff
30\RDA Budget 2014_15 SUM
AGEilBA ITEIII t4
?801q# MIAMIBHACH Bf,TE
289
g MIAMIBEACH
City of Miqmi Beoch, 1700 Convention Cenler Drive, Miomi Beoch, Florido 33139. www.miomibeochfl.gov
REDEVELOPMENT AGENCY MEMORANDUM
TO: Chairperson and Members of the Miami Agency
FROM: Jimmy L. Morales, Executive Director
DATE: September30,2014
SUBJECT: A RESOLUTION OF THE CHAIR AND MEMBERS OF THE MIAMI BEACH
AND APPROPRIATING THE OPERATINGREDEVELOPMENT AGENCY,
BUDGETS FOR THE CITY CENTER REDEVELOPMENTAREATHE ANCHOR SHOPS
AND PARKING GARAGE AND THE PENNSYLVANIAAVENUE SHOPS AND GARAGE
FOR FISCAL YEAR 2014115.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The proposed budget for the City Center Redevelopment Area (RDA) for Fiscal Year 2014115 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.
Revenues
Based on the 2014 Certification of Taxable Value from the Property Appraiser's Office, the
preliminary value of propefi in City Center is $4,186,683,074 an increase of 8.1o/o oyer 2013,
marking the fourth year in a row values have increased; 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
2012113, reflects a decrease from the preliminary valuation for the same year and will result in a
corresponding adjustmenUreduction in TIF revenues totaling $2,447,000 for 2014115, versus
$168,000 for 2013114 and $3.5 million for 2012113.
Additional sources of revenue include aYz mill levy in the amount of $1.8 million, to be 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 estimated $25,000 in interest income.
Expenditures
Project-related expenses account for approximately $10.3 million, which includes $4.5 million to be
allocated for community policing initiatives in the City Center to continue providing enhanced levels
of staffing and services throughout the area, and $5.7 million for maintenance of RDA capital
290
September 30, 2014
Red eve I op me nt Age ncy Me morand u m
Operating Budget for City Center for FY 2014/15
Page 2 of 2
projects.
Administrative Expenses total $1,403,000 comprising a management fee of $972,000 which is
allocated to the General Fund to pay for direct and indirect staff support for the RDA; $406,000 for
actual operating expenses; and $25,000 for capital renewal and replacement projects under
$25,000. lt 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 McGladrey Cost Allocation Study,
dated July 20, 2009. !t should further be noted that Administrative and Operating expenses account
for less than four percent (3.7o/o) 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 $8.5 million annually. City Centeralso continues assuming debtservice 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 1.5o/o of its respective TIF payment; and the
corresponding contribution to the City's General Fund, equivalent to 1 .5o/o of the City's share of its
TIF payment; and the remittance of theYz milltax levy back to the Children's Trust.
ln addition, the proposed budget includes $14,585,000 in funding towards the new debt service
anticipated for the remaining projects in the City Center Capital Plan, as well as for $274.3 million in
debt for the Convention Center Expansion and Renovation Project, consistent with the terms being
negotiated with Miami-Dade County. The remaining Capital Projects includes:
Bass Museum lnterior Space Expansion
Convention Center Lincoln Rd Connectors & 17th St
N. lmprovement Penn Ave to Wash
Lincotn Rd / Washington Ave to Lenox Ave
S3,7so,ooo
S12,ooo,ooo
S2o,ooo,ooo
The authorizing documents for the additional debt will be presented at a later date once the debt
structure has been finalized and negotiations with Miami-Dade County concluded.
The revenues and expenses associated with operations of the City Center area Shops and Garages
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 $5.4 million, with operating
expenses, (including depreciation, contractual revenue-sharing obligations with Loews and general
fund administrative fees) of approximately $3 million, and an allocation of $2,069,000 for
construction on the Collins Park Garage. The Anchor retail operations is expected to generate
$886,000 in revenues, including interest, with operating expenses and depreciation totaling
$141,000, renewal & replacement projects totaling $650,000, as well as projected reserves of
$95,000. Additionally, $338,000 in transfers to the Pennsylvania Avenue Garage/Retail is budgeted
to offset the RDA's estimated costs associated with the retail and parking operations.
291
September 30, 2014
Red evel op me nt Age ncy Me morand u m
Operating Budget for City Center for FY 2014/15
Page 3 of 3
Pennsylvania Avenue Shops and Garage
ln 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-yearoperating 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 $1,343,000 in revenues inFY 2014/15, comprising $703,000 in
parking revenues and $640,000 in retail income. However, since the facility is still anticipated to
operate at a loss during FY 2014115, the Anchor Garage/Retail plans to subsidize its operations
through a transfer of $338,000 to the parking operations. Expenses for the facility are budgeted at
$1.6 Million, comprising $1,041,000 in direct operating costs for the garage and $640,000 in lease
term-related obligations.
CONCLUSION
The proposed FY 2014115 City Center Redevelopment Area Budget is $38,519,000. The Anchor
Garage & Shops is $6,395,000 and the Pennsylvania Avenue Garage & Shops is $1,681,000.
ln 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
Garagel{nd the Pennsylvania Avenue Shops and Garage for FY 2014115.
ttr,tv@tts
Attachment
T:\AGENDA\201 4\September\September 30\RDA Budget memo 201 4_15.doc
292
RESOLUTION NO.
A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF
TH E M!AM! BEACH REDEVELOPM ENT AG ENCY ADOPTING AN D
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 2014115.
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 Fiscal Year 201412015;
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 forthe
fiscalyear; and
WHEREAS, the Executive Director of the Miami Beach Redevelopment Agency
recommends approval of the proposed Fiscal Year 2014/15 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 GHAIRPERSON AND MEMBERS
OF THE MIAMI BEACH REDEVELOPMENTAGENCY, thatthe Chairperson and Members hereby
adopt and appropriate 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
2014115, as follows:
City Center Redevelopment Area
Anchor Garage Parking Operations
Anchor Garage Retail Operations
Pennsylvania Avenue Garage Parking Operations
Pennsylvania Avenue Garage Retail Operations
$38,519,000
$5,491,000
$904,000
$1,041,000
$640,000
PASSED AND ADOPTED this _ day of September,2014.
Philip Levine, Chairperson
ATTEST:
Rafael E. Granado, Secretary
KB:MAS
T:\AGENDA\201 4\Septembe^September 30\RDA BUDGET RESO 201 4 1 5.doc
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
293
Miami Beach Redevelopment Agency
City Center Redevetopment Area
Proposed FY 2014115 Operating Budget
Revenues and Other Sources of lncome
Tax lncrement - City
Proj Adjustment to City lncrement
Tax lncrement - County
Proj Adjustment to County lncrement
50% Contribution from Resort Tax
'112 Mill Children's Trust Contribution
lnterest lncome
Fund Balance Reallocation: (Non-TlF)
Fund Balance Renewal and Replacement
Other lncome/Adjustments:
TOTAL REVENUES
Admin/Operating Expenses
Management fee (salaries & benefits)
Salaries and Benefits
Advertising & promotion
Postage & mailing
Office supplies & equipment
Other Operating
Meetings & conferences
Dues & subscriptions
Licences & Taxes
Audit fees
Professional & related fees
Repairs and Maintenance
lntemal Services
Total Admin/Operating Expenses
Project Expenses
Community Policing 168-1 124
Capital Projects Maintenance:
Code:168-9963
Property Mgmt 168-9964
Sanitation: 168-9965
Greenspace/Parks Maintenance: 168-996X
NWS ProjecUlincoln Park Complex Contingency
NWS Project - Grant-in-Aid
Transfer to Penn Garage Parking
Transfer to Penn Garage Retail
Transfer to Renewal and Replacement
Transfer to Capital Projects
Total Project Expenses
Reserves, Debt Service and Other Obligations
Debt Service Cost - 2005 + Parity Bonds
City Debt Service - Lincoln Rd Project
City Debt Service - Bass Museum
Reserve for County Admin Fee
Reserve for CMB Contribution
Reserve for Children's Trust Contribution
Reserve -Prior Year Fund Balance/Future Capital Projects
Repayment-Prior Yr Fund Balance
Reserve Capital Projects /Debt Service/ Contingenry
Total Reserves, Debt Service and Other Obligations
TOTAL EXPENSES AND OBLIGATIONS
REVENUES - EXPENSES
FY11t12
Actual
FY 2012113
Actual
FY 2013111 FY 20',14t15
Budgeted
Variance
Adopted Proposed From FY 13114
$ 18,337,693 $
(1,756,457)
14,291,236
(1,367,157)
4,925,168
1,481,O04
8,278
19,188,399 $
(1,870,542)
14,817,619
(1,633,395)
5,546,756
1,570,405
27,925
19,934,000 $
(94,000)
15,992,000
(74,000)
5,386,000
1,831 ,000
25,000
21,691 ,000
(1,381 ,000)
17,400,000
(1,066,000)
1,850,000
25,000
$ 1,757,000
(1,287,000)
1,408,000
(992,000)
(5,386,000)
19,000
5,19;999,79'l
$ 35,924,961 $ 38,646,958 $ 43,000,000 $ 38,s19,000 $
952,889 $
$59,601
2,269
79;
20,260
175,373
31,489
33.938
976,000 $
46,614
1,563
753
200
128,729
20,500
529,447
32,487
1 08.143
1,043,000 $
155,000
50,000
3,000
4,000
1,000
1,000
2,O00
21,000
629,000
25,000
27.OOO
972,000 $
50,000
1,000
2,000
1,000
1,000
2,000
60,000
23,000
213,000
2s,000
53.000
(4,481,000)
(71,000)
(1s5,000)
(2,000)
(2,000)
60,000
2,000
(416,000)
26.000
13,541,301 14,238,000 18,443,000 - (18,443,000)
$ 21,429,123 $ 23,024,087 $ 28,038,000 $ 10,319,000 $ (17,719,000)
1,276,614 $
3,411,726 $
1,013,473
2,560,468
506,242_
48,801
347,',t',t2_
8,548,105 $
I ,1 03,366
502,746
193,861
248,719
1 ,481,004
1.451.823
1,844,435 $
3,702,342 $
1,061,027
2,536,108
556,555
225,O55
705,OO;
8,524,081 $
785,000
503,000
197,718
260,774
1,570,405
1,961,000 $
4,19s,000 $
1 ,'t 76,000
3,020,000
832,000
305,000
67,00;
r,403,000 $
4,522,000 $
174,000
1,392,000
3,061,000
1,170,000
8,432,000 $
832,000
s48,000
245,000
305,000
1,850,000
14,585.000
(558,000)
327,000
174,000
216,000
41,000
338,000
(30s,000)
(67,00;)
(118,000)
7,000
1,000
6,000
22,000
19,000
(342,000)
14,201,000
8,550,000 $
825,000
547,000
239,000
283,000
1,831,000
342,000
384,000
$ 13,s29,624 $ 11,840,978 $ 13,001,000 $ 26,797,000 $ 13,796,000
$
$
$
$
36,235,361 $
(310,400) $
36,709,500
1,937,458
43,000,000 $-$38,519,000 $-$
1$ City Center ROAgl24l2014
(4,481,000)
294
Proposed FY 201{15 Anchor Shops and Parking Garage Operating Budget
FY11t12 FY 2012t13 FY 2013114 FY 2014115 Variance
Actual Actual Adopted Proposed From FY 13/14Revenues:
Parking Operations
Parking Fund Balance
Retail Leasing
lnterest Pooled Cash
TOTAL REVENUES
Operating Expenses:
Parking Operations
Garage Use Fee (To Loews)
Garage Repairs and Maintenance
Garage Depreciation
Retail Leasing Property Management Fee & Operating
Retail Leasing Repair & Maintenance
Retail lntemal Service Charges
Retail Operations Depreciation
Parking Operations Admin Fee to GF
Retail Leasing Admin Fee to GF
Transfer to Renewal and Replacement
Transfer to Capital Projects/RDA Garages
Reserve for Future Capital - Parking Operations
Reserve for Future Capital - Retail Operations
TOTAL EXPENSES
REVENUES. EXPENSES
Revenues:
Parking Operations
Retail Leasing
Retail Transfer from RDA Operations
Parking Transfer from RDA Operations
lnterest Pooled Cash
TOTAL REVENUES
Operating Expenses:
Parking Operations Expenditures
Parking Admin/Base Fee
Garage Ground Lease
Parking Base Rent
Addfl/Percentage Rent
Garage Management Fee
Retail Additional Base Rent
Retail base Rent
Retail Admin Fee
Depreciation
L6asing Commissions & Operating
Admin Fee (GF)
Retail Contingency
TOTAL EXPENSES
REVENUES.E)(PE'VSES
3,079,821 $
615,016
13,897
3,365,518 $
766,105
33,480
3,130,000$ 3,518,000$ 388,000- 1,973,000 1,973,000847,000 876,000 29,000
18,000 28,000 10,000
223,962
Proposed FY 2014115 Pennsylvania Ave Shops and Garage Operating Budget
FY1',U12
$ 3,708,734 $
$ 1,264,875 $
M0,241_
62,619
66,109
55,396
196,740
147,123
347,112
346,000
492
4,165,103 $
2,062,965
570,038
106,281
52,1 09
35,232
55,396
223,OO0
14,000
371,640
225,055
1,206
3,995,000 $
1,627,000 $
507,000
37,000
451,000
32,000
19,000
55,000
224,O00
10,000
220,OOO
72.000
656,000
550,000
305,000
6,395,000 $
1,689,000 $
591,000
128,000
470,000
32,000
25,000
19,000
55,000
224,000
10,000
650,000
2,407,000
2,400,000
62,000
84,000
91,000
19,000
32,000
(7,000)
430,000
2,407,000
(72,000)
- - 741,000 95,000 (646,000)
$ 2,309,942 $ 3,133,021 $ 3,995,000 $ 6,39s,000 $ 2,400,000
1,398,792 $1,032,082 $
Actual
$ 618,961 $702,181 $
FY 2012t13 FY 2013t14 FY 2014115
Actual
Variance
From FY 13/14
703,000
640,000
338,000
$ 47,000
90,000
33,000
1.459,688 $
723,O29
45,368
23,552
23,552
47,604
15,592
276,448
11,137
11,851
303,400
3,864
1,461,84s
(2,157)
1,300,082 $
729,260 $
45,368
22,731
22,731
53,302
2,970
277,269
11,851
52,418
1,183,318 $
116,76,4 I
822,000
56,000
23,000
23,000
60,000
't 36,000
229,OOO
896,000
57,000
23,000
23,000
65,000
229,000
205,000
170,000
74,000
5,000
93,000
(24,000)
8,000
170,000
1,511,000 $1,681,000 $
51,000 59,000
134 147
1,511,000 1,681,000
1$ City Center RDAgl24l2O14 295
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