1B-Adopt Budget City Center-Anchor Shops-Pennsylvania Ave Shops-Garage For FY15MIAMI BEACH REDEVELOPMENT AGENCY ITEM SUMMARY
Gondensed Title:
A Resolution of the Chairperson and Members of the Miami Beach RedevelopmentAgency adopting and appropriating
the operating budgets for the City Center Redevelopment Area, the Anchor Shops and Parking Garage and the
Avenue Shoos and for Fiscal Year 2015116.
The proposed budget for the City Center Redevelopment Area for Fiscal Year 2015116 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 2015 Certificate of Taxable Value from the Property Appraiser's Office, the preliminary value of property
in City Center is $4,821 ,643,185; an increase of 15o/o over 2014, marking the fifth year in a row values have increased
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 2013114, reflects a decrease from the
preliminary valuation for the same year and will result in a corresponding adjustmenUreduction in TIF revenues totaling
$2,617,000 for 2015116, versus $2,291,000 for FY 2014115; $168,000 for 2013t14 and $3.5 miilion tor 2012t13.
Additionalsourcesof revenueincludeaTzmilllevyintheamountof $2.1 million,tobesetasidefortheChildren'sTrust
pursuant to an lnterlocal Agreement, dated August 16,2004 between the RDA, the City of Miami Beach and Miami-
Dade County, and an estimated $60,000 in interest income.
The total proposed FY 2014115 City Center Redevelopment Area Budget is $44,240,000.
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
2015t16.
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
City beautification and cleanliness.
Item S ummary/Recommendation :
Financial lnformation :
Source of
Funds:
Amount Account
1 $44,240,000 City Center Redevelopment Area Fund
2 $ 4,927,000 Anchor Shops and Parking Garage Operations
3 $ 1,685,000 Pennsylvania Avenue Shops and Garage Operations
OBPI Total $50,852,000
Financial lmpact Summary:
Clerk's Office
Max Sklar and John Woodruff
AGENDA ITEII
DATEE MIAMIBEACH 1049
r915.2015
City of Miomi Beoch, 1700 Convention Center Drive, Miomi Beoch, Florido 33,l39, www.miomibeochfl.gov
COMMISSION MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Mayor Philip Levine and Members the City
Jimmy L. Morales, City Manager
September 30, 2015
A RESOLUTION OF THE CHAIR AND MEMBERS OF THE MIAMI BEACH
REDEVELOPMENT AGENCY, ADOPTING AND APPROPRIATTNG THE OPERATING
BUDGETS FOR THE CITY CENTER REDEVELOPMENT AREA THE ANCHOR
SHOPS AND PARKING GARAGE AND THE PENNSYLVANIAAVENUE SHOPS AND
GARAGE FOR FTSCAL YEAR (Fy) 2015/16.
ADMINISTRATION REGOMMENDATION
Adopt the Resolution.
ANALYS!S
The proposed budget for the City Center Redevelopment Area (RDA) for Fiscal Year 2015t16
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 the attached
Exhibit A for the proposed budget details.
Revenues
Based on the 2015 Certificate of Taxable Value from the Property Appraiser's Office, the
preliminary value of property in City Center is $4,821,643,185; an increase of 15% over 2014,
marking the fifth year in a row values have increased 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 2013114, reflects a decrease
from the preliminary valuation for the same year and will result in a corresponding
adjustmenUreduction in TIF revenues totaling $2,617,000 for 2015/16, versus $2,291 ,000 for FY
2014115; $168,000 for 2013114 and $3.5 million for 2012t13.
Additional sources of revenue include aTzmill levy in the amount of $2.1 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 $60,000 in interest
income.
Expenditures
Project-related expenses account for approximately $10.6 million, which includes 94.5 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 $5.9 million for maintenance of RDA
capital projects.
1050
Redevelop me nt Age ncy Me m o rand u m
Operating Budget for City Center for FY 2015/16
September 30, 2015
Page 2 of 3
Administrative Expenses total $1,223,000 comprising a management fee of $982,000 which is
allocated to the General Fund to pay for direct and indirect staff support for the RDA;
$241,000,000 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. lt should further be noted that Administrative and
Operating expenses account for less than three percent (2.8%o) of the total budget, which is well
below the29o/o threshold level established (and permitted) in the lnterlocalAgreement between
the City and the County.
Per the Third Amendment to the lnterlocal Agreement between Miami Dade County and City of
Miami Beach dated January 20, 2015, requires the Agency's expenses for Administration,
Community Policing, and Capital Expenses not exceed the prior year's distribution for such
expenses adjusted by the lesser of the Miami Urban Area CPI from July to June or 3 percent.
The CPI increase from2014to2015 was 1.2o/o andthe FY 2015116 budget includes an increase
to these expenses of 1.2o/o.
The current combined debt service on the 2005 Series Bonds and the Parity Bonds accounts for
approximately $8.S 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. The FY 2015t16 budget
also includes $2.1 million for the first year of interest payment and debt issuance cost of the
proposed new RDA bond.
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 the %mill tax levy back to the Children's Trust.
ln addition, the proposed budget includes $17,723,000 in funding towards the new debt service
anticipated for the remaining projects in the City Center Capital Plan, as well as for $274 million
in debt for the Convention Center Expansion and Renovation Project, consistent with the terms
being negotiated with Miami-Dade County.
The revenues and expenses associated with operations of the City Center area Shops and
Garages are presented as separate schedules in orderto 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 $4 million, with operating
expenses, (including depreciation, contractual revenue-sharing obligations with Loews and
general fund administrative fees) of approximateV $g.Z million, and an allocation of $46,000 for
window replacement in the facility. The Anchor retail operations is expected to generate
$847,000 in revenues, including interest, with operating expenses and depreciation totating
$265,000, as well as projected reserves of $56,000. Additionally, $526,000 in transfers to the
Pennsylvania Avenue Garage/Retail is budgeted to offset the RDA's estimated costs associated
with the retail and parking operations.
Pennsylvania Avenue Shops and Garage
ln consideration of the fact that the Pennsylvania Avenue Shops and Garage was built by the
1051
Redevelop me nt Ag e ncy M e mora nd u m
Operating Budget for City Center for FY 2015/16
September 30, 2015
Page 3 of 3
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 on2010 retail market cap rates. The retail operations also include revenue
sharing between the City and the RDA.
The facility is anticipated to generate $1 ,108,000 in revenues in FY 2015/16, comprising totally of
parking revenues. ln light of the fact that the retail space is currently not rented, we have taken
the conservative approach of not projecting retail rental income. The facility is still anticipated to
operate at a loss during FY 2015/16, so the Anchor Garage/Retail plans to subsidize its
operations through a transfer of $526,000 to the parking operations. Expenses for the facility are
budgeted at $1.6 Million, comprising $1,158,000 in direct operating costs for the garage and
$527,000 in lease term-related obligations.
CONCLUSION
The proposed FY 2015116 City Center RedevelopmentArea Budget is$44,240,000. TheAnchor
Garage & Shops is $4,927,000 and the Pennsylvania Avenue Garage & Shops is $1,685,000.
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
Garage, and the Pennsylvania Avenue Shops and Garage for Fy 201st16.ttw
JLM/KqBIMAS
T:\AGENDA\201s\September\September 30 Meeting\RDA\16-MEMO-2nd pH-RDA Budget.doc
1052
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 REDEVELOPMENTAREA, THE ANCHOR SHOPS AND
PARKING GARAGE, AND THE PENNSYLVANIA AVENUE SHOPS
AND PARKING GARAGE FOR FISCAL YEAR 2015116.
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 2015t16;
and
WHEREAS, the proposed budgets for the Anchor Shops and Parking Garage and the
Pennsylvania Avenue Shops and Garage have been included as separate scheduleJto the City
Center RedevelopmentArea Budget, reflecting projected revenues and operating expensesforthe
fiscal year; and
WHEREAS, the Executive Director of the Miami Beach Redevelopment Agency
recommends approval of the proposed Fiscal Year 2015/16 budgets for the City Center
Redevelopment Area, as well as for the Anchor Shops and Parking Garage and the Pennsylvania
Avenue Shops and Garage.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRPERSON AND MEMBERS
OF THE MIAMI BEAGH 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
2015116, as follows:
PASSED AND ADOPTED this 30rH day of September,2OlS.
City Center Redevelopment Area
Anchor Garage Parking Operations
Anchor Garage Retail Operations
Pennsylvania Avenue Garage Parking Operations
Pennsylvania Avenue Garage Retail Operations
$44,240,000
$4,080,000
$847,000
$1 ,158,000
$527,000
Philip Levine, Ghairperson
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
ATTEST:
Rafael E. Granado, Secretary
1053
MIAMI BEACH REVETOPMENT AGENCY
CITY CENTER REDEVETOPMENT AREA
To ossure continued economic viobility of the City
o whole, through the implementotion of the
Redevelopment Plon ond the omendment thereto.
To incur minimum relocotion ond condemnotion.
Center Redevelopment Areo ond the City os
obiectives ond proiects defined in the
To involve community residents in the redevelopment process.
To estoblish the necessory linkoges to tie in the Convention Center, oreo hotels, culturol
omenities, entertoinment, residentiol ond business uses in the district.
To enhonce diversity of form ond octivity through the use of estoblished plonning ond design
principles.
To creote o troffic system to serve locol ond through troffic needs.
To recognize the historic structures ond designotions within the historic districts ond focilitote
development occord in gly.
Stotus Report
The 332-ocre City Center/Historic Convention Villoge
Redevelopment ond Revitolizotion Areo (CC/HCVRRA or City
Center) wos estoblished in 1993, in order to provide the
funding mechonism to foster the development of new convention
hotel development within proximity of the Miomi Beoch
Convention Center ond to estoblish the necessory linkoges
between the City's mony core oreo civic, culturol ond
entertoinment uses in order to creote the fobric of o true urbon
downtown.
Since its inception, the City Center Redevelopment Areo hos
undergone dynomic chonge through o combinotion of public
ond privote investment initiotives.
1054
MIAMI BEACH REVELOPMENT AGENCY
CITY CENTER REDEVELOPMENT AREA
Exciting proiects which hove tronsformed the oreo include:
. Two convention-quolity hotels, both of which were the result of publicr/privote portnerships
between the Redevelopment Agency (RDA) ond the respective Developers - the 8OO-room
Loews Miomi Beoch Hotel ond the 425-room Royol Polm Crowne Plozo Hotel, the lotter of
which hod the distinction of being the first Africon-Americon owned hotel in the United Stotes;
. The development of on 800-spoce public porking goroge {Anchor Goroge) to occommodote
the porking needs for the Loews Miomi Beoch Hotel, the Crowne Plozo Hotel ond other
seryice ond retoil businesses in the oreo;
. ln I 994 o $20 million overhoul of Lincoln Rood, portiolly funded with the porticipotion of
businesses on Lincoln Rood;
An oword-winning Beochwolk extending from 2l st Street to
Lummus Pork, comprising on ot-grode, londscoped pedestrion
wolkwoy;
lmplementotion of o Culturol Arts Compus Moster Plon for the
oreo eost of the Miomi Beoch Convention Center, which
includes o new regionol librory, the heodquorters of the Miomi
City Bollet, the exponsion ond renovotion of the Boss Museum
of Art, the re-londscoping of Collins Pork, including the
restorotion of the Rotundo ond extensive streetscope
improvements throughout the oreo.
The completion of the much herolded New World
Compus, including the new stote-of-the ort Gehry-
designed heodquorters focility for the New World
Symphony ond two publicly-funded components,
including o $,l5 Million municipol Gehry-
designed porking goroge ond o $2.l Million
worldcloss pork.
1055
MIAMI BEACH REVELOPMENT AGENCY
CITY CENTER REDEVETOPMENT AREA
Other importont proiects include the 650-
spoce mixed-use porking focility built on the
surfoce porking lot on the west side of City
Holl, which includes 35,000 squore feet of
municipol office spoce; the implementotion of
moior street ond infrostructure improvements
throughout City Center, volued ot more thon
$26 Million; ond the ocquisition ond of three
multiJomily buildings (Borcloy, Allen House,
The London House) to mointoin the stock of
offordoble housing in the oreo.
Tox lncrement Finoncing (TlF) through the sole of bonds hos been o moior tool for finoncing
redevelopment octivities. To dote, four bond issues hove occurred in Ciiy Center: one in 1994
for $25 million, to ocquire lond for the hotel development initiotives; one in 1996, in the
omount of $ll.Z million to fund controctuol obligotions
ond copitol improvements reloted to the Loews Hotel ond
Crowne Plozo Hotel proiects; one in .l998, in the omount
of $38.2 million to finonce copitol expenditures reloted to
the convention hotel proiects, the Culturol Compus proiect
ond to repoy the $2.| .5 million debt obligotion to the City;
ond the most recent, which occurred in 2005, in the omount
of $80.2 million to refinonce the outstonding debt service on
prior bond issues.
The City ond Redevelopment Agency's commitment to
upgroding ond improving the oreo's infrostructure,
oddressing porking ond circulotion issues, ond focilitoting
new development hos fueled significont new privote-sector
investment in the oreo, evidenced by more thon $OOO
million in new building permit octivity since the oreo's
inception.
Work Plon
Since its success in ottrocting two convention-quolity hotels, the Redevelopment Agency hos been
focusing its efforts on o number of initiotives oimed ot upgroding the oreo's infrostructure, streets
ond porks, ollevioting troffic ond porking congestion ond encouroging the production ond
presentotion of orts ond culturol octivities in the oreo. ln 2003, the Redevelopment Agency
omended its Redevelopment Plon for City Center to specificolly oddress these oblectives in the
context of the New World Symphony's exponsion plons involving the 'lZ'h Street surfoce lots ond
the resulting impoct to the Convention Center ond businesses in the oreo.
To this end, the Redevelopment Agency's mission is to coordinote, implement ond fund the Plon's
obiectives ond to compliment the City's estoblished vision:
1056
MIAMI BEACH REVELOPMENT AGENCY
CITY CENTER REDEVETOPMENT AREA
. Policing Culture;
Monogement ond Service Delivery;
lnfrostructure;
o lnternotionol Center for Tourism ond Business; ond
. EducotionolExcellence.
The Redevelopment Agency's obiective over the next five yeors will focus on the plonning ond
implementotion of copitol proiects ossocioted with, but not limited to the Moster Plon for the
exponsion of the Convention Center, upgroding streetscopes ond reloted infrostructure throughout
City Center ond increosing the inventory of porking focilities, including the pending construction
of o new 450-spoce porking goroge to be locoted on 23'd street ond Collins Avenue, designed
by world-renowned orchitect Zoho Hodid. The RDA will olso continue to fund public service
enhoncements provided for under the Community Policing Progrom os well os ensure the on-going
mointenonce of copitol ossets funded with TlF. lt should be noted thot fhot o moiority of the
copitol enhoncements set forth in the Redevelopment Plon ond lhe 2OO2 Amendment thereto,
hove been completed including the City Center Right-of-Woy improvements, the City Holl
Exponsion Goroge, the Collins Pork improvements ond the development of the 'lZ'h Street surfoce
lots into the New World Compus.
Miomi Beoch Convention Cenler Renovotion ond Exponsion
Sponning four city blocks ond locoted in the heort of South Beoch, the Miomi Beoch Convention
Center (MBCCI currently occommodotes meetings, conventions, trodeshows ond consumer shows.
The Convention Center originolly opened in 1957 ond received o moior exponsion ond focelift in
1989, doubling it in size. Currently the MBCC boosts over I ,000,000 SF of flexible spoce,
including; over 500,000SF of exhibit spoce, ond over l00,00OSF of versotile pre-function oreo
spoce ond70 meeting rooms comprised of 122,000SF.
The exponsion ond renovotion of the Miomi Beoch Convention Center proiect will tronsform the
building to "Closs A" stondords which sholl include Silver LEED certificotion upgrodes ond
enhonced technology. The design modificotions will include the re-orientotion of the exhibit holls,
fogode upgrodes, site improvements olong the conol, ond olong oll roodwoys, the oddition of o
grond bollroom, junior bollrooms ond meeting rooms, ond two levels of rooftop porking.
The interior renovotion work focuses on the redistributed division of the four moin exhibition holl
sPoces, ond the odditionol progromming of more flexible orrongements of privote meeting rooms
ond odditionol indoor/outdoor versotile exhibition spoces. Currently, the four moin exhibit holls
ore divided into quodronts-two occessible solely from Woshington Avenue (Holls A ond B) ond
the other two solely occessed from Convention Center Drive (Holls C ond D). The new Convention
Center re-orients the holls in on Eost/West direction with the primory occess from Convention
Center Drive leoding into o new grond, open double height entry lobby.Woshington Avenue will
serye os o secondory meons of pedestrion entry.
1057
MIAMI BEACH REVETOPMENT AGENCY
CITY CENTER REDEVETOPMENT AREA
The proiect will olso include substontiol improvements to the north of the property. The new
oddition ot the northern portion of the property feotures on enclosed ground floor porking oreo
ond truck looding ond delivery oreo. Above this, o 60,000 squore foot grond bollroom is
proposed offering vistos of the beoutified 2l't Street Pork thot will spon olong Collins Conol ond
feoture the to-be-restored Historic Corl Fisher Clubhouse. This oddition will creote o new
internolized looding oreo ond will include iwo helix romping entronce occesses to the roof level
porking.
The Woshington Avenue elevotion will become predominotely pedestrion in noture with the
eliminoiion of the visitor drop-off ond cob cueing oreos. The streetscope modificotions will include
o green edge olong the ovenue with notive shode trees to promote o more pedestrion friendly
experience. Convention Center Drive will in turn become the moin occess point for vehiculor
occess ond for the visitor drop-off oreo. Modificotions will include o new medion olong
Convention Center Drive ond '19'h Street creoting o more sophisticoted streetscope ond o more
celebroted boulevord experience. The Conol wolk will be substontiolly improved ond will creote o
softer northern edge to the MBCC.
The proiect olso includes the demolition of the existing Recreotion Center olong Woshington
Avenue ond the creotion of o neighborhood pork. Another orchitecturol feoture of the proiect is
the proposed rooftop indoor ond outdoor meeting spoce locoted in the southwestern corner of the
roof. This will offer the potrons exponsive views out onto the new Civic pork proposed to reploce
the surfoce porking lot.
ln ossociotion with the renovotions to the Miomi Beoch Convention Center, o new urbon pork,
dining povilion ond Veterons Plozo is being creoted to reploce o surfoce porking lot thot currently
contoins spoces for opproximotely 800 vehicles. Convention Center Pork hos been envisioned os
o neighborhood pork. The pork includes o series of six clustered 'shoded edges' thot will line the
perimeter of the 6-ocre pork ond surround on internol greot flexible lown.
Heodquorler Holel
On Jonuory 27, 2Ol5, the City Commission outhorized the issuonce of Request for Proposols No.
20.l5-.l03-ME (the RFP) for the Development of o Convention Heodquorter Hotel Adiocent to the
Miomi Beoch Convention Center ("MBCC"). On April 1O,2015, the City received proposols
from Portmon Holdings, LLC ond Oxford Copitol Group/RLB Swerdling ("Oxford Copitol"). On
April 21,2015, the City Monoger notified Oxford Copitol thot its proposol wos not responsive to
the RFP's minimum requirements. On Apri|29,2015, the City Monoger, vio Letter to Commission
(LIC) No. 176-2015, oppointed on Evoluotion Committee, which convened on Moy 7,2015, to
interview the Portmon Holdings teom ond score the proposol, consistent with the evoluotion
criterio outlined in the RFP.
On Moy 20,2015, the Moyor ond City Commission opproved Resolution No. 20,l 5-29029,
outhorizing the Administrotion to negotiote o Development ond Ground Leose Agreement,
including o Room Block Agreement (collectively, the "Leose") with Portmon Holdings, LLC, with
soid Leose subiect to prior opprovol by the Moyor ond City Commission before the finol execution
1058
MIAMI BEACH REVETOPMENT AGENCY
CITY CENTER REDEVELOPMENT AREA
thereof. On June 3,2015, the Administrotion submitted the proposed Leose for the Finonce ond
Citywide Proiects Committee's review ond input, in occordonce with the requirements of Section
82-37loll1) of the City Code.
The City Commission opproved the Ground Leose on First Reoding ond Public Heoring on July
31 ,2015 ond is scheduled to heoring the item on Second Reoding on September2,2Ol5.
The Leosed Property generolly consists of on opproximolely 2.65 ocres on the lZO0 block of
Convention Center Drive, bounded roughly by the Miomi Beoch Convention Center to the North,
I Zth Street to the South, the Fillmore Miomi Beoch ot the Jockie Gleoson Theoter to the Eost, ond
Convention Center Drive to the West. The proiect includes the development, design, construction,
equipping ond operotion of o full-service convention heodquorter hotel with opproximotely (but
not-to-exceed) 800 hotel rooms ond reloted improvements ("Hotel"), including the design,
construction ond operotion of on enclosed overheod pedestrion wolkwoy or "skybridge"
connecting the Hotel ond the MBCC. The Leose is contingent upon sixty percent (60%) voter
opprovol in occordonce with Section L03(b)(3) of the City Chorter. The referendum is
contemploted to occur on November 3, 2O15.
lf the site is developed with o hotel onnuol (yeor 4) leose ond tox revenue generoted is estimoted
to be $20.4 million.
Ancillory Proiects
Boss Museum lnterior Spoce Exponsion: Renovotion of Boss Museum interior to increose
progrommoble spoce by 47%, with on estimoted cost of $3,250,000.
Convention Center Lincoln Rd Connectors & I Zth St N. lmprovement Penn Ave to Wosh: Enhonce
the pedestrion experience from the Conveniion Center complex to Lincoln Rood olong Drexel
Avenue, Pennsylvonio Avenue ond Meridion Avenue. Work to consist of new lighting, sidewolk
reconstruction, street furnishings, londscoping, heolthy tree fertilizotion systems, rood
reconstruction, cross wolk enhoncements. lmprovements to I Zth Street from Pennsylvonio Avenue
to Woshington Avenue will consist of londscoping, irrigotion, pedestrion lighting ond sidewolk
replocement. This proiect hos on estimoted cost of $12,000,000.
Lincoln Rd / Woshington Ave to Lenox Ave: Refurbishment of Lincoln Rood pedestrion moll from
Woshington Avenue to Lenox Avenue. Work to consist of new lighting, refurbishing pedestrion
surfoces, street furnishings, heolthy tree fertilizotion systems, milling ond resurfocing povement
surfoces ond cross wolk enhoncements. This proiect hos on estimoted cost of $20,000,000.
2014 City Center Plon Amendment (Third Amendment)
The City ond County ogreed to terms of o third omendment to the City Center RDA (the Third
Amendment), which extended the life of the City Center RDA from FY 2022-23 to FY 2043/44 ot
the 95 percent 195%l tox increment funding level. This ollows the RDA to fund, through the
issuonce of CRA bonds, the odditionol funding needed for construction costs of the new ond
exponded Convention Center ond io fund $36 million of previously opproved City Center RDA
1059
MIAMI BEACH REVETOPMENT AGENCY
CITY CENTER REDEVETOPMENT AREA
copitol proiects (described obove), provide increosed operoting ond mointenonce expenses for
the Convention Center, os well os City Center RDA odministrotive costs, community policing, ond
copitol proiect mointenonce within the RDA. However, otter FY 2022/23, when the existing RDA
would hove expired, City returns o pro-roto shore of odministrotive costs, community policing,
ond copitol project mointenonce to the Couniy.
The Third Amendment olso includes o provision which ollows the Boord of County Commissioners
the right, in its sole ond obsolute discretion, to oppoint o member of the Agency, who sholl be the
Commissioner of County Commission District 5.
Pursuont to on existing Convention Development Tox (CDT) lnterlocol ogreement, the City receives
o flot $4.5 million per yeor from Convention Development Toxes to operote ond mointoin the
Convention Center, plus on onnuol yeor-end revenue shore bosed on CDT exceeding collection
omounts thot increose eoch yeor. The Third Amendment ollowed for on odditionol onnuol
operoting ond mointenonce subsidy storting ot $l million in 2017 ond growing to $4 million by
2021 , which will then escolote ot 4 percent or Consumer Price lndex (CPl) onnuolly (whichever is
less) stortingin 2026 over the life of the Convention Center, funded either through RDA funds or
through Convention Development Toxes, depending on the ovoilobility of the lotter. Thot funding
will remoin in ploce until 2048.
Finolly, once the currently existing debt is refinonced, the Third Amendment exempts the
Children's Trust, on independent toxing district, with respect to the pledging of onnuol tox
increment revenues ottributoble to The Children's Trust, to conform with the generol exemption
provided to The Children's Trust in Section 2-1742 of the Miomi-Dode County Code.
Budget Highlights
. Bosed on the 2015 Certificote of Toxoble Volue from the Property Approiser's Office, the
preliminory volue of property in City Center is estimoted to increose by 15.2% over 2014,
prior to oppeols ond odjustments, morking the 5'h yeor in o row thot volues ore bock on the
rise. However, os in previous yeors, the City hos received correspondence from the County,
odvising of the finolizotion of the tox roll for the prior yeor, which in the cose of FY 20l 3/14,
reflects o significont decreose from the preliminory voluotion for the some yeor ond will result
in o corresponding odiustment/reduction in TIF revenues totoling $Z.O Mlllion for 20,l 5/16.
. Additionol sources of revenue include o Vz mill levy in the omount of $2.,l5 million, to be sei
oside for the Children's Trust pursuont to on lnterlocol Agreement, doted August 16,2004
between the RDA, the City of Miomi Beoch ond Miomi-Dode County; ond on estimoted
$60,OOO in interest income.
o Prolect-reloted expenses occount for opproximotely $tO.a million which includes $4.4 million
to be ollocoted for community policing initiotives in City Center to continue to provide
enhonced levels of stoffing ond services throughout the oreo, ond $6 Million for mointenonce
of RDA copitol proiects. There is no odditionol funding for on-going ond plonned copitol
1060
MIAMI BEACH REVETOPMENT AGENCY
CITY CENTER REDEVETOPMENT AREA
proiects in City Center in the FY 2015/16 Budget due to the RDA extension for the renovotion
ond exponsion of the convention center.
Administrotive Expenses totol $t,20t,000, comprising o monogement fee of $960,000
which is ollocoted to the Generol Fund to poy for direct ond indirect stoff support for the RDA;
opproximotely $40,000 set oside for on-going plonning ond consulting work reloted to the
Convention Center exponsion moster plon; ond $8,000 for copitol renewol ond replocement
proiects under $25,000.
$Zg.S million is budgeted in Reserve for Contingency/Debt Service to cover debt service costs
reloted to the Convention Center bonds. The bonds ore onticipoted to be sold in November,
20.l5 ond it is onticipoted thot there will be ot leost one interest poyment during FY
2015/16. The necessory debt seryice omount will be moved from the Reserve to Debt
Service once the finol debt service schedule is determined. Debt service poyments on both
principol ond interest will commence in FY 20.l 6/17. Funds in this reserye over ond obove
the onnuol debt poyment con be used to finonce ony potentiol shortfolls in the RDA fund or
poy down the Convention Center bonds eorly, but not prior to FY 2023/24. City Center olso
conlinues ossuming debt service poyments on the portion of the Gulf Breeze Loon used to poy
for the Boss Museum exponsion ond renovotion, ond the portion of the Sunshine Stote Loon
Progrom used for Lincoln Rood improvements, which collectively occount for opproximotely
$1.3 million ond will be poid off in FY 20.l 5/16.
Reserve line item expenditures include those items thot, pursuont to the existing Bond
Covenonts, moy only be expended once the onnuol debt service obligotions hove been met.
These include the County's odministrotive fees, equivolent to 1 5% of its respective TIF
poyment; ond the corresponding contribution to the Clty's Generol Fund, equivolent to I .5%
of the City's shore of its TIF poyment; ond the remittonce of the Yz mill tox levy bock to the
Children's Trust.
1061
Miami Beach Redevelopment Agency
City Center Redevelopment Area
Proposed FY 2015116 Operating Budget
FY 2012t13
Actual
FY 2013114
Actual
FY 2014115
Adopted
Budget
FY 2015116 Variance
Proposed From FY 14115
$ 19,188,399 $
(1,870,542)
14,817,619
(1,633,395)
5,546,756
1,570,405
27,925
0
19,934,948 $
(94,491)
15,991,409
(73,641)
5,885,927
1,698,337
90,904
0
21,43s,000 $
(1,225,000)
17,400,000
(1,066,000)
0
1,850,000
25,000
24,56s,000 $
(1,4s2,000)
20,080,000
(1,165,000)
0
2,152,000
60,000
0
0
0
3,130,000
(227,000)
2,680,000
(e9,000)
0
302,000
35,000
0
0
('100.000)
00 0
0
999.791 114.748 100.000
$ 38,646,958 $ 43,548,140 $ 38,519,000 $
1,043,000
71,006
0
o
1,701
655
0
175
972,000 $
0
50,000
1,000
2,000
1,000
1,000
2,000
60,000
23,000
213,000
25,000
53.000
44,240,000 $
982,000 $
0
50,000
1,000
2,000
1,000
1,000
2,000
60,000
23,000
40,000
8,000
53,000
5,721,000
10,000
0
0
0
0
0
0
0
0
0
(173,000)
(17,000)
0
976,000 $
46,614
0
0
1,563
753
0
200
128,729 56,028
20,500 21,000
529,447
32,487
98,655
24,141
108.143 79.645
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
' 1 P Mil Children's Trust Contribution
lnterest lncome
Fund Balance
Fund Balance Renewal and Replacement
Other lncome/Adjustments:
TOTAL REVENUES
Admin/Operating Expenses
Management fee
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
lnternal Services
Total Admin/Operating Expenses
Project Expenses
Community Policing
Capital Projects Maintenance:
Code
Property Mgmt
Sanitation
Greenspace
Parks Maintenance
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 Debt Service/ Contingency
Total Reserves, Debt Service and Other Obligati<
TOTAL EXPENSES AND OBL]GATIONS
REVENUES. EXPENSES
1,U4,435 $
$ 3,702,342 $
0
1,061,027
2,536,108
556,555
0
225,055
0
705,000
14.238.000
1,396,016 $
4,019,542 $
68,527
937,890
2,905,911
774,512
0
142,765
0
67,000
16.56't.28s
4,522,000
174,000
1,392,000
3,061,000
896,000
274,000
0
0
0
0
4,502,000
182,000
1,319,500
3,339,000
864,500
432,000
0
0
0
0
1,403,000 $ 1,223,000 $(180,000)
(20,000)
8,000
(72,s00)
278,000
(31,500)
158,000
0
0
0
0
$ 23,024,087 $
8,524,O81
785,000
503,000
197,718
260,774
1,570,405
8,533,'119
825,000
547,000
238,767
297,607
't,698,337
8,432,000
832,000
548,000
245,000
303,000
1,850.000
14.587.000
$ 10,550,000 $
806,000
516,000
284,000
347,000
2,152,000
0
0
17.723.000
320,000
2,1 1 8,000
(26,000)
(32,000)
39,000
44,000
302,000
(0)
(0)
3.136.000
25,477,431 $10,319,000 $ 10,639,000 $
0
0
0
0
0
0
0
0
$ 11,840,978 $12,139,829 $ 26,797,000 $ 32,379,000 $5,581,000
$
$
36,709,500
1,937,458
39,013,275
4,534,864
38,519,000
(0)
44,240,000
(0)
5,721,000
(0)
$
$
$
$
$
$
$
$
1062
Proposed FY 201 5/1 6 Anchor Shops and Parking Garage
Operating Budget
FY 2012113
Actual
FY 2013114
Actual
FY 2014t1s
Adopted
FY 2015/16 Variance
Proposed From FY'14/15
3,365,518 $
$o
766,10s
33.480
3,747,955 $
$o
845,905
75,554
3,518,000 $
1,973,000
876,000
28,000
4,026,000
0
817,000
84,000
508,000
(1,973,000)
(59,000)
56,000
$
$
$
$
Revenues:
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 Operating
Retail Leasing Repair & Maintenance
Retail lntemal Service Charges
Retail Operations Depreciation
Admin Fee to General Fund
Parking Operations Admin Fee to GF
Retail Leasing Admin Fee to GF
Transfers
Transfer to Renewal and Replacement
Transfer to Capital Projects/RDA Garages
Transferto RDA Retail
Reserve for Future Capital - Parking Operations
Reserve for Future Capital - Retail Operations
TOTAL EXPENSES
REVENUES. EXPENSES
4,165,103 $
2,062,967 $
570,038
106,281
0
52,109
0
35,232
55,396
223,000
14,000
0
0
0
0
0
0
4,669,414 $
1,452,223 $
669,88'l
18,227
457,716
u,232
0
20,000
55,396
224,000
0
0
0
0
0
0
0
6,395,000 $
1,689,000 $
591,000
128,000
470,000
32,000
2s,000
19,000
55,000
224,000
10,000
0
650,000
2,407,000
0
0
9s,000
4,927,000 $(1,468,000)
32,000
72,000
0
0
35,000
75,000
5,000
0
6,000
(3,000)
0
(650,000)
(2,361,000)
526,000
822,000
(27,000)
1,721,000
663,000
128,000
470,000
67,000
100,000
$24,000
$55,000
230,000
7,000
$o
$o
46,000
526,000
822,000
68,000
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
3,119,023
1,046,080
2,931,676
1,737,738
6,395,000 $
0$
4,927,000 $
0$
(1,468,000)
0
Proposed FY 2015116 Pennsylvania Ave Shops and Garage
FY 2012J13 FY 2013114 FY 2014115
Actual Proiected AdoPted
FY 2015n4
Proposed
Variance
From FY 14/15
$ 702,181 $
371,640
0
812,922 $ 703,000 $627,000 640,000
00
1 ,108,000 $
526,000
47,000
4,000
405,000
(640,000)
526,000
(291,000)
4,000
225,055 142,765 338,000
1.044 2,983
Revenues:
Parking Operations
Retail Leasing
Retail Transfer ln
Parking Transfers ln
lnterest Pooled Cash
TOTAL REVENUES
Operating Expenses:
Parking Operations Expenditures
Parking Base Fee
Parking Base Rent
Addt'l/Percentage Rent
Garage Management Fee/ Admin Fee to GF
Retail Additional Base Rent
Retail base Rent
Retail Admin Fee
Depreciation
Leasing Commissions & Operating
Admin Fee (GF)
Retail Contingency
TOTAL EXPENSES
REVENUES. EXPENSES
$ 1,299,920 $ 1,585,670 $
$ 729,259
53,302
22,731
0
47,476
$ 818,3s4 $
56,000
23,000
0
60,000
0
5't,000
1,681,000 $
896,000 $
57,000
23,000
0
1,685,000 $ 4,000
963,000 $ 67,000
70,000 13,000
0 (23,000)
00
2,970 200,932
277,269 229,000
0
11,851
0
52,418
65,000 125,000
229,000 250,000
205,000 0
60,000
21,000
(205,000)
0 0 29,000 29,000
0000
0 248,000 248,000
59,000 0 (59,000)
0 146,068 147,000 0 (147,000)
$ 102,6U $1,316 $0$0$ 0
1063
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1064