R5M-Amend Ordinance 93-2836 Extend Period Of Funding The Trust Fund -Levine-COMMISSION ITEM SUMMARY
Gondensed Title:
An Ordinance Amending Ordinance No. 93-2836 Of The City Of Miami Beach, Regarding The Establishment Of A T
Fund For The "City Center/Historic Convention Village Redevelopment And Revitalization Area," By Amending Section
Thereof To Extend The Period Of Fundinq The Trust Fund: Providino For Severabilitv. And An Effective Date.
Intended Outcome rted:
Expeditiously Upgrade The Convention Center To Be Smart, Modern, Energy Efficient And Which Fits Local Context,
lncludino Walkabilitv
Supporting Data (Surveys, Environmental Scan, etc.): The 2014 Community Satisfaction Survey reported that over half
of businesses (56%) claimed that the Miami Beach Convention Center added to the success of their business. Six in ten
businesses (61%) support improvements of at least $300 million for the Miami Beach Convention Center.
Item S ummary/Recommendation :
On January 26, 1993, Miami-Dade County (the "County") adopted Resolution No. R-14-93, which among other things (i)
found the "City Center Redevelopment Area" or "Redevelopment Area" to be a "blighted area" within the meaning of Part lll
of Chapter 163, Florida Statutes, and (ii) delegated to the City of Miami Beach, pursuant to Section 163.410, Florida
Statutes, certain powers conferred upon the County Commission as the governing body of Dade County by Part lll of
Chapter 163, Florida Statutes, with regard to the Redevelopment Area, so that the City Commission, either directly or
through its duly designated community redevelopment agency, could exercise such powers.
On February 3, 1993, the City adopted Resolution No. 93-20709, which established a community redevelopment agency
(the "Miami Beach Redevelopment Agency" or the "Agency"), and declared the members of the City Commission as the
membersoftheAgency. Subsequently,onFebruaryl2, l993,theCityadoptedResolutionNo.93-20721,whichadopted
the Agency's City Center/Historic Convention Village Redevelopment and Revitalization Area plan (the "Plan") for the
redevelopment and revitalization of the Redevelopment Area. On Febru ary 24, 1993, the City enacted Ordinance 93-2836,
which created a City Center/Historic Convention Village Redevelopment and Revitalization Trust Fund (the "Fund" or "Trust
Fund") and provided a funding mechanism for implementing the Plan. The County, on March 30, 1993, adopted Resolution
No. R-317-93, which among otherthings (i) adopted the Plan, and (ii) approved the lnterlocal Cooperation Agreement,
between the County and the City, dated and executed on November 16, 1993 (as amended, the "CRA lnterlocal
Agreement"). The County then enacted
The City's proposed Convention Center Renovation and Expansion Project (the "Project") is estimated to cost a total of
$582 million of which approximately $275 million will be funded from the RDA to fund a portion of such Project. ln addition,
approximately $36 million for ancillary Redevelopment Area capital projects, which are part of the existing Plan, as well as
all costs of issuance and debt service reserves associated with the 2015 Bonds (as herein after defined) and refunding of
the existing bonds are all anticipated to be part of the Project financing. The Agency intends to incur debt in an amount not
to exceed $430,000,000.00 (the "2015 Bonds") secured by tax increment revenues of the Agency.
On or around June 2014, the County and City Administrations commenced negotiations and terms of a Memorandum of
lntent (the'MOl'). On June 22,2014, the City Commission, approved Resolution No.2014-28644, which approved a
Memorandum of lntent (the "MOl"), memorializing the aforementioned terms. The County Mayor has committed to promote
and recommend the terms of the MOl, which will be incorporated into final documents-including the aforestated Plan
amendment; the proposed (third) amendment to the CRA lnterlocal Agreement; and an amended and restated CDT
lnterlocal Agreement-which will be presented to the City Commission at the October 29,2014 meeting.
The first step in the process requires the City Commission to amend Ordinance No. 93-2836 as required as a condition to
the issuance of the 2015 Bonds.
Adviso
Source of Funds:
OBPI
Amount Account
1
Total
Financial lmpact Summary:
Financia! !nformation :
RsA4E MIAMIBEACH 429
g MIAMI BEACH
City of Miomi Beoch, lZ00 Convention Center Drive, Miomi Beoch, Florido 33,l39, www.miomibeochfl.gov
CITY COMMISSION MEMORANDUM
To: Chairperson and Members of the
FRoM: Jimmy L. Morales, City Manager
DATE: October 22,2014
i Beach Agency
SUB]ECT: AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AMENDING ORDINANCE NO. 93.2836 OF THE CITY
OF MIAMI BEACH, REGARDING THE ESTABLISHMENT OF A TRUST FUND
FOR THE "CITY CENTER/HISTORIC CONVENTION VILLAGE
REDEVELOPMENT AND REVITALIZATION AREA," BY AMENDING SECTION 4
THEREOF TO EXTEND THE PERIOD OF FUNDING THE TRUST FUND;
PROVIDING FOR REPEALER, SEVERABILITY, AND AN EFFECTIVE DATE.
BACKGROUND
On January 26, 1993, Miami-Dade County (the "County") adopted Resolution No. R-14-93, which
among otherthings (i) found the area in the City of Miami Beach (the "City") bounded on the East by
the Atlantic Ocean, on the North by 24th Street, on the West by West Avenue, and on the South by
14th Lane (the "City Center Redevelopment Area" or "Redevelopment Area") to be a "blighted area"
within the meaning of Part lll of Chapter 163, Florida Statutes, and (ii) delegated to the City of Miami
Beach, pursuant to Section 163.410, Florida Statutes, certain powers conferred upon the County
Commission as the governing body of Dade County by Part lll of Chapter 163, Florida Statutes, with
regard to the Redevelopment Area, so that the City Commission, either directly or through its duly
designated community redevelopment agency, could exercise such powers.
On February 3, 1993, the City adopted Resolution No. 93-20709, which established a community
redevelopment agency (the "Miami Beach Redevelopment Agency" or the "Agency"), and declared
the members of the City Commission as the members of the Agency. Subsequently, on February
12, 1993, the City adopted Resolution No.93-20721, which adopted the Agency's City
Center/Historic Convention Village Redevelopment and Revitalization Area plan (the "Plan") forthe
redevelopment and revitalization of the Redevelopment Area.
On February 24,1993, the City enacted Ordinance 93-2836, which created a City Center/Historic
Convention Village Redevelopment and Revitalization Trust Fund (the "Fund" or "Trust Fund") and
provided a funding mechanism for implementing the Plan. The County, on March 30, 1993, adopted
Resolution No. R-317-93, which among otherthings (i) adopted the Plan, and (ii) approved the
lnterlocal Cooperation Agreement, between the County and the City, dated and executed on
November 16, 1993 (as amended, the'CRA lnterlocalAgreement"). The County then enacted
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City Commission Meeting
Trust Fund Ordinance Amendment, No. 93-2836
First Reading
October 22, 2014
Page 2 of 2
The City's proposed Convention Center Renovation and Expansion Project (the "Project") is
estimated to cost a total of $582 million of which approximately $275 million will be funded from the
RDA to fund a portion of such Project. ln addition, approximately $36 million for ancillary
Redevelopment Area capital projects, which are part of the existing Plan, as well as all costs of
issuance and debt service reserves associated with the 2015 Bonds (as herein after defined) and
refunding of the existing bonds are all anticipated to be part of the Project financing. The Agency
intends to incur debt in an amount not to exceed $430,000,000.00 (the "2015 Bonds") secured by
tax increment revenues of the Agency.
On or around June 2014, the County and City Administrations commenced negotiations and
conceptually (in pertinent part) agreed to:
(i) amend the Plan to incorporate (1) the Miami Beach Convention Center
Renovation and Expansion Project, including all necessary improvementsto
and expansion of the Convention Center and surrounding area (the
"Project"); (2) the financing of the Project, including the funding of operating
and maintenance costs thereof; and (3) extend the time certain for
completing all redevelopment projects financed by increment revenues and
retiring all outstanding indebtedness to a date no laterthan March 31,2044;
and(ii) amend the lnterlocal Agreement to, among other things, memorialize the
aforestated terms, including extending the life of the RedevelopmentArea to
March 31,2044; and(iii) approve and permit the Agency to issue Redevelopment Area bonds for the
purpose of funding a portion of the Project, as well as, previously approved
and authorized ancillary Redevelopment Area capital projects; and(iv) provide for an ongoing adequate operating and maintenance subsidy forthe
Miami Beach Convention Center, in addition to the existing $4.5 million per
year that the City currently receives from the Two-Thirds Portion of the
Convention Development Tax (CDT).
On June 22,2014, the City Commission, approved Resolution No. 2014-28644, which approved a
Memorandum of lntent (the "MOl"), memorializing the aforementioned terms. The County Mayor has
committed to promote and recommend the terms of the MOl, which will be incorporated into final
documents-including the aforestated Plan amendment; the proposed (third) amendment to the
CRA lnterlocalAgreement; and an amended and restated CDT lnterlocalAgreement-which will be
presented to the City Commission at the October 29,2014 meeting.
The first step in the process requires the City Commission to amend Ordinance No. 93-2836 as
required as a condition to the issuance of the 2015 Bonds.
CONCLUSION
The Administration recommends approving the ordinance amendments on first reading. The
;"r&r_
g and Public Hearing is scheduled for October 29,2014 at 5:30 P.M.
T:\AGENDA\2014\October\TCED\Trust Fund Ordinance Amendment No. 93-2836 memo.doc
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ORDINANCE NO.
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AMENDING ORDINANCE NO. 93.
2836 OF THE CITY OF MIAMI BEACH, REGARDING THE
ESTABLISHMENT OF A TRUST FUND FOR THE "CITY
CENTER/HISTORIC CONVENTION VILLAGE REDEVELOPMENT AND
REVITALIZATION AREA," BY AMENDING SECTION 4 THEREOF TO
EXTEND THE PERIOD OF FUNDING THE TRUST FUND; PROVIDING
FOR REPEALER, SEVERABILITY, AND AN EFFEGTIVE DATE.
WHEREAS, on January 26, 1993, Miami-Dade County, Florida (the "County")
adopted Resolution No. R-14-93, which among otherthings (i) found the area in the City of
Miami Beach (the "City") bounded on the East by the Atlantic Ocean, on the North by 24th
Street, on the West by West Avenue, and on the South by 14th Lane (the "Redevelopment
Area") to be a "blighted area" within the meaning of Part lll of Chapter 163, Florida
Statutes, and (ii) delegated to the City of Miami Beach, pursuant to Section 163.410,
Florida Statutes, certain powers conferred upon the County Commission as the governing
body of Dade County by Part Ill of Chapter 163, Florida Statutes, with regard to the
Redevelopment Area, so that the City Commission, either directly or through its duly
designated community redevelopment agency, may proceed to exercise such powers; and
WHEREAS, on February 3, 1993, the City adopted Resolution No. 93-20709, which
established a community redevelopment agency (the "Miami Beach Redevelopment
Agency" or the "Agency"), and declared the members of the City Commission as the
members of the Agency; and
WHEREAS, on February 12, 1993, the City adopted Resolution No. 93-20721,
which adopted the Agency's City Center/Historic Convention Village Redevelopment and
432
Revitalization Area plan (the "Plan") for the redevelopment and revitalization of the
Redevelopment Area; and
WHEREAS, on February 24, 1993, the City enacted Ordinance 93-2836, which
created a City Center/Historic Convention Village Redevelopment and Revitalization Trust
Fund (the "Fund" or "Trust Fund") and provided a funding mechanism for implementing the
Plan;
WHEREAS, on March 30, 1993, the County adopted Resolution No. R-317-93,
which among otherthings (i) adopted the Plan, and (ii) approved the InterlocalCooperation
Agreement, between the County and the City, dated and executed on November 16, 1993;
and
WHEREAS, on 4pri127,1993, the County enacted Ordinance No. 93-28, which
established the Trust Fund and provided a funding mechanism for implementing the Plan;
and
WHEREAS, the City and the Agency have prepared an amendment to the Plan (the
"Plan Amendment"), to incorporate (1) the Miami Beach Convention Center Renovation
and Expansion Project, including all necessary improvements to and expansion of the
Convention Center and surrounding area (the "Project"); (2) the financing of the Project,
including the funding of operating and maintenance costs thereof; and (3) extend the time
certain for completing all redevelopment projects financed by increment revenues and
retiring all outstanding indebtedness to a date no later than March 31,2044; and
WHEREAS, the Agency intends to incur debt, in an amount not to exceed
$430,000,000.00 (the "201 5 Bonds"), secured by tax increment revenues of the Agency to,
among other purposes, fund a portion of the Project; and
433
WHEREAS, it is necessarythatthe City Commission amend Ordinance No. 93-2836
as required as a condition to the issuance of the 2015 Bonds;
NOW THEREFORE, BE IT DULY ORDAINED BY THE MAYOR AND CIry
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA AS FOLLOWS:
SECTION 1. AMENDMENT TO SECTION 4 OF ORDINANCE NO. 93.2836
A. That Section 4 of Ordinance No. 93-2836 of the Miami Beach City Code is
hereby amended as follows:
Section 4. Except for the purpose of funding the Fund pursuant to Section 5 of
this ordinance, upon the adoption of this ordinance as herein provided, each Taxing
Authority shall, by January 1 of each year, appropriate to the Fund for so long as any
indebtedness pledging increment revenues to the payment thereof is outstanding (but not
later than March 31, 2044@) a sum which is no less than the increment
as defined and determined in subsection (1) of Section 163.387, Florida Statutes (as in
effect on the effective date of this ordinance), accruing to such Taxing Authority. lf the
Plan is amended or modified pursuant to Section 163.361(1), Florida Statutes, each such
Taxing Authority shall make such annual appropriation for a period not to exceed 30 years
after the date the Plan is amended. Ne TaxingAutherity; ineluding the Gity ef Miami Beaeh,
is exempt fremthe previsiens ef this Seetien 4,The Children's Trust shall become exempt
commencinq on the earlier of (i) the date the Aqencv's bonds outstandino as of November
1. 2014 are no lonqer outstandinq, or (ii) March 31, 2023.
SECTION 2. REPEALER
All ordinances or parts of ordinances in conflict herewith be and the same are
hereby repealed.
SECTION 3. SEVERABILITY
lf any section, subsection, clause or provision of this Ordinance is held invalid, the
remainder shall not be affected by such invalidity.
SECTION 4. EFFECTIVE DATE
This Ordinance shalltake effect on the day of 2014.
434
PASSED AND ADOPTED this _ day of ,2014.
MAYOR
ATTEST:
CITY CLERK
F:\ATTO\PMR\RDA lnterlocals\Amendment to City Trust Fund Ordinance No 93 2836 v3.doc
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTIONML-, ''1 'tk
-City
Attomey Date
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