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142-93 RDA RESOLUTION NO. 142-93 A RESOLUTION OF THE MIAMI BEACH REDEVELOPMENT AGENCY DECLARING THE AGENCY'S SUPPORT FOR, AND FURTHER URGING THE APPROVAL OF THE ATTACHED RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF DADE COUNTY, FLORIDA, APPROVING CERTAIN TERMS OF MIAMI BEACH REDEVELOPMENT AGENCY TAX INCREMENT REVENUE BONDS, SERIES 1993, (CITY CENTER/HISTORIC CONVENTION VILLAGE), AND ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS AMENDING SECTION 29-81 OF THE CODE OF METROPOLITAN DADE COUNTY, FLORIDA, RELATING TO ECONOMIC DEVELOPMENT AND AD VALOREM TAX EXEMPTIONS FOR NEW AND EXPANDING BUSINESSES IN ENTERPRISE ZONES TO EXCLUDE A NEWLY CREATED COMMUNITY REDEVELOPMENT AREA LOCATED IN SOUTH MIAMI BEACH. WHEREAS, the Miami Beach Redevelopment Agency (Agency) intends to issue its Tax Increment Revenue Bonds, Series 1993, (City Center/Historic Convention Village), in a principal amount not exceeding $25,000,000 (Bonds) to finance the acquisition, clearing and/or rehabilitation of certain property and the construction of certain public improvements in an area of the City of Miami Beach, Florida (City) known as the "City center/Historic Convention Village Redevelopment and Revitalization Area" (Redevelopment Area), in accordance with a redevelopment plan adopted by the Agency under Chapter 163, Part III, Florida Statutes, as amended (Act), and approved by Dade County, Florida (County) by Resolution NO. 317-93 adopted on March 30, 1993, (Approving Resolution); and WHEREAS, in accordance with the provisions of Section 163.410, Florida Statutes, as amended, and pursuant to the Approving Resolution and an Interlocal Cooperation Agreement entered into by and between the County and the City (Interlocal Agreement), the County delegated to the Mayor and City commission of the City and the Agency every power originating under the Act and conferred upon the Board of County Commissioners of the County (Board) with respect to the Redevelopment Area except for certain specific powers which it retained for the Board, including the power to approve the amount, duration and purpose of any bonds, notes, advances on other indebtedness for the Redevelopment Area pledging or otherwise obligating tax increment funds; and WHEREAS, the Bonds shall be secured, in part, with tax increment funds generated within the Redevelopment Area and deposited in the "city center/Historic Convention Village Redevelopment and Revitalization Trust Fund" established by Ordinance No. 93-2836 adopted by the city on February 24, 1993, and by Ordinance No. 93-28 enacted by the County on April 27, 1993 (Trust Fund Ordinance), and held by the Agency in accordance with the provision of the Approving Resolution, the Interlocal Agreement and the Trust Fund Ordinance; and WHEREAS, pursuant to the Constitution of the state of Florida, Section 196.1995 Florida Statutes, as amended, and a referendum held in Dade County, Florida on November 4, 1986, the Board of County Commissioners (Board) of Dade County, Florida (County) enacted No. 88-27 on April 19, 1988, authorizing the Board, at its discretion, to grant by ordinance economic development ad valorem tax exemptions to new and expanding business located within enterprise zones, including an enterprise zone established in south Miami Beach, which ordinance has been codified in the Code of Metropolitan Dade County, Florida (County Code) as Chapter 29, Article Xi and WHEREAS, the granting of economic development ad valorem tax exemptions to new and expanding businesses in the Community Redevelopment Area would negatively affect the ability to undertake tax increment financing in the Community Redevelopment Areai and WHEREAS, the Agency declares it to be in the best interest of the City of Miami Beach, Florida, for the Board of County Commissioners of Dade County, Florida, to approve the attached County resolution and Ordinance, particularly with regard to the attached Ordinance which would amend Section 29-81 of the Dade County Code to exclude the Community Redevelopment area from eligibility for economic development Ad Valorem Tax exemption to new and expanding businesses, therefore allowing the City of Miami Beach to effectively issue the subject tax increment bonds within the City Center/Historic Convention Village Redevelopment and Revitalization Area to undertake planned economic and capital improvements. NOW THEREFORE, BE IT DULY RESOLVED BY THE MIAMI BEACH 2 REDEVELOPMENT AGENCY declaring the Agency's support for, and further urging the approval of, the attached resolution of the Board of County Commissioners of Dade County, Florida, approving certain terms of Miami Beach Redevelopment Agency Tax Increment Revenue Bonds, Series 1993, (City Center/Historic Convention Village), and Ordinance of the Board of County Commissioners amending Section 29-81 of the Code of Metropolitan Dade County, Florida, relating to economic development and ad valorem tax exemptions for new and expanding businesses in enterprise zones to exclude a newly created PASSED and ADOPTED this redevelopment area located in south Miami Beach. of y Novernbe ....' ,l?:f-J3. .)..~/,(-. "._,~,-- ....... CHAIRMAN ATTEST: ) / ~~,~ Z- ..~ CITY CLERK jm:c:\wp51\data\sec29-81.res FORM APPROVED ~. LEGAL DEPT. By ,\N 'Date 11.. 12....~ 3 USOL'D'l'IOK HO. I.IS0LtJ'rIOX DPJlOVIJI'G aJlllTADr '1'DIIS OJ' KI.AKI BUCK UDBVBLOPMIIIrf AGBlTCY TU me......., UVD'DI: Balm', 'D%U 1"3 CCI'.rT CJDra;I1 HISTORIC COWD'7.'IO>>' VILLArD) .~ ~, the Miami Beach't.csevelopment Agency (the 'Agency') iD~8nd.11 to is.ue its Tax Increment Revenue Bonc1s, Series 1993 (City Center/Historic conven~iOJ1 Village), in . principal amount not exceeding $25,000,000 (the "BOnds') to finance the acquisition, clearing and/or rehabilitation of certain property and the con- . struct10n ot certain publi.c: imprOV8Il\8Dt8 in an area ot the City of Miami Beach, Plorida (the 'City") known &s the 'City Center/ Hi8toric Convention Village aedevelopment and Revitalization Area' (the 'aedevelopment Are.l) in .ccordaI1ce with a redeVelopment plan adopted by the Agency under Chapter 1'3, Part IIt, Floric1a. StatuteB, aB amenc1ecS (the 'Actl), and approved by Dade County, lflorida (the ICounty') by Resolution No. 317-93 adopted on March 30, 1993 (the 'Approving Resolution'); and 1fR1nIRU, in accordance with cbs provisioDs ot SectioD 163.410, Florida Statut.., a. amended, ancl pursuant to the Approving leso- lution and an Interlocal Cooperation Agreement entere4 into by anc1 between the County and the City (the 'Interlocal Agreement'), the County c1elegated to the City CODmission ot the City aDd the Asency every power originating under the Act an4 conferred upon the Soard of County Camd88ioners of the County (the IBoardl) with respect to the Redevelopment Area. except tor certain IJpe~ific powtlI'8 whJ:ch it retained tor the Board, including the power to approve the amount, 4uratiOD and purpose of any bonds, notes, advances OD other indebt- ecSDe.. fo~ the R.edevelopment Area pledgiD9 or otherwise obligating tax iDcrement funds; and WDJt.'IP, the Bonds shall be securec1, in part, w1th tax incre- , , , ment tunc18 generated within the Redevelopment Area and deposited in the .City Center/Historic Convention Village Redevelopment and Revitalization Trust Fund- established by Ordfn~Dce RO. 93-2836 ad.opted by the City on Pebruary 24,1993 aDC1 by Ordinance No. 93-28 enacted by the County on April 27, 1993 (the -Trust Fund Ordi- . nancel) IlDC1 he1cS by the Agency in accordance with the provi8ions of the Approving Resolution, the Interlocal Agreemant and the Trust J\U1d Ord1JW1ce; JIOIf TDIUI:rOU, DB IT RSSOLVBD by the Board ot county C0DIDi8- .ioners of. Dad.e County, Plorida that: Se~tion 1. The foregoing recitations are deezned true and correct and are hereby incorporated .s a part of th1. resolution. Section 2. ID accordance with the requirements of the ApproviDg Resolution, the Interlocal Agreement and the Trust Fund Ordinance, the iS8uance of the Bonds by the Agency in a principal amount Aot to exceed $35,000,000, with a tiDal maturity not later than December 31, 2022, for the purpose of tinancin9 the acquiai- tion, clearing and/or rehabilitation of certain property and the t"n"...T"l,,....il'Wl ,..~ ~a..".~" Z"'"~'~" 04 "'P.-...---., ~1 ....&.....&._ ~h.. Redevelopment Area, tUDding a debt service rese~ account and 2 . p~ying COltS of issuance with respect to the Bonds, is hereby approved. Section 3. The officers and employees of the County are hereby authorimed to take all necessary action 80 a8 to provide tor the is.uance ot the Bands by the Agency. Sectioq ". This re.oluti'ii)n shall take effect immediately upon its passage. The toregoin9 resolution was ottered by Commissioner .. .. , who moved it. adoption. The motion was seconded by Comm!.8ioDer and upon being put to a vote, the vote was a8 tOl~OW8: . James Burke Betty T. 'ergu.OD Larry Hawk1D8 .at.aha S. Millan Alexanc1er Penelal Javier D. 80\1to Arthur B. Miguel Dia. 4. 1. Portilla Maurice A. hrre Bruce bplan Dennis c. ~. Pedro Jleboredo Shel'mlU1 8. winn Teele The Chairperson thereupon decl&red this resolution duly passed and adopted this csay ot , 19 g J . DADB COWl'Y, PLORIDA BY ITS BOARD 01' COtmTY COMCISSIODRS HARVEY RUVIN, CLBR:I: By: Deputy Clerk: Approved. by County At torney .. to f OZ1ll aDeS 1 egal SUfficienOYI 3 ORDINANCE NO. ORDINANCE AMENDING SECTION 2,..1 OF THE CODE , or METROPOLITAN DADE COUNTY, FLORIDA IlELATlNG TO ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTIONS FOR NEW AND EXPANDING BUSINESSES IN ENTERPRIsE ZONa TO DCLUDE A NEWL)' CREATED COMMtJNITY REDEVELOPMENT AREA LOCATED IN SOtJTB MIAMI BEACH, PROVIDING lOR. SEVERABIUI'Y, INCLUSION IN THE CODE AND EFFi'.CTIVE DATE. WHBRBAS, purauant to the Constitution of tho State of Florida, Plorida Statuta Sectioa 19C5.l~, U 1I11CDded, and a referendum held in Dade County, Florida OIl November 4, 1986, the Board of County CommissionerJ (the -Board-) of Dade County, Florida (the -County-) .. eDICted Ontinanc:c No. S8w27 on Apri119, 1988, autborizlna the Board, at ita diJcretion, to pDt by ordinance economic development ad valorem tax exempCiom to new and apand!na bulineu located within entetprile ZODeS, inc1udina an enterpriJe zone eatablisbed In Soutb Miami Beach, which otdiDance bas been codified ill the Code of Metropolitan Dade Cowry, Florida (the lCounty Code") u Chapter 29, Article X; ud WBBRBAS, the area 01 South Miami Beach aeneral1y bounded by Twenty-Fourth St!rJet on the north, Welt Avmue an the wat, tbe Atlantic Ocean on the nt and Pourtecath LaDe OIl the IOUtb lIdslpMed U . 'community redevelopment UQ- (the 'Communi17 Rcdcve.1opmaat Arr.a -) known u tbe City CaterlHfstoric Convention ValJaae Redeve10pmcm and ReYimffnt:toa Area, IIId CommUDity Redevelopment Area having been atablished putJU8Dt to Chapter 163, Put m, P10rJda Statutes, tor purposes of, among others, ptOVidiDa tax incmment ftna~." for proJectI witbJD the Community Redevelopment Area; ud WHBRBAS. tbe aranting of economic development ad valorem tax aempdona to DeW . .. . Uld GpIIldlna bUlineues ill the Community Redevelopmeat Area would alfed neptivdy the ability to undertake tax increment ftnancincs in the Cormnuntty RedevdDpmcnt Area; and WHBRBAS, th1J Board dec1arca it to be in the bat intcrat of the a:nmty to exclude the Community Redevelopment Area from clii1"bility for econom1c deve10pmem ad valorem tax . . ~omptians to fJIJW and expandin, busineaaes. NOW, THEREFORE, BE IT ORDAINBD BY THB BOARD OP COUNTY , COUMlSSIONBRS OF DADE COUNTY,' FLORIDA: ... SflCtlon 1. The forqoinl recitation. are incotporaIed herein u part of this 0rdiDance. SectiOll 2. Section 29-11 of the County Code 11 hereby amended to raid u foJlowa:V Sec.. 29-81. Authority to arant the ezemptions. Pursuant to the temll ofthiJ article (Ordh'.nee Number 88-27). the Board of County c"ommiaaioncn at ill diacmion II ba1:by authodzed to crant by ordinance ad 'YIlomn tax ezemptiO&1l to new IIld apand1na bUlineues located within eatapri.le IODCI, u defiMd herein.. except in eaclt of tile community redevelopment IfCII Joc:atcd ill South MIami BeadI wbicb are (j) pncnlly bounda1 by Sixth Street on the north, Bbcayoe Bay Oft the wat, the Atlantic Ocean oa the taSt and Government Cut 011 the IOUth and 00 prtMlJy bounMd bJ Twenty-FOIJrtb bIm on the IlOISba Welt Avenue on the weat. the Atlandc ~n on the 1M" and POllft!lMth r.,e on the south and In the community n:deve1opmenc area located In Southeut 0Yen0wnIPark Wilt which illenenlly boo'1ded by 1-395.1-95, N. W. 5th Stnlct. Metrorai1 riptl-of-way, N.W. lit Street, North Miami Avenue. N.B. 5th Street and BbcayDe Boulevard. The Board of County CoIDDlillioners may abo qree to JDDlIII exemptloD based mady on presentation of propoal. tbal iDdlcate Ierious mtalt to build . new bUJJneu or IIpIDd III existina buaineaa within In cntmprlJc zone, except in the above lefenac:ed community redevelopments areas loatted in Soutb MJaml Belch, IDd Southeast 0Yen0wnIPark W-, provided however. that the improvements to real property are a1ade or the taqiblc penoaal ~*'tt In added or iDcrcucd on or after the day ot !be ordinance lrantina the exemption it Idopced. "Warda Itddr:e4 t1uvup IbIJ1 be dclcted. UnderJcored words constitute the amendment pI~. ~milll prvyiaionl are now in effect and remain ~B~. Section 3. If any section, sentence, clauac or provision of thia ordinance 1J held invalid, the remainder ot thiJ ordinance shall not be aft'edI:d by such invalidity. Section 4. It is the intention of the Board, and it is hcrd)y ordained that the proYiJion. of thil ordinance ahal1 become and be made a part of the County Code. The sectionJ of thiJ . \ ordinance may be renumbered or re1ctteicd to I(WJJ1plilh such Intention, and the word -ordinance- may be cbanpd to -section-, 8article8 or OCher appropriate word. Section 5. 'IhiI ordiD8J1ce shall become effective tea (10) day. after the date of its 1DICtmeftt. Puled lAd Adopted: Appru..'rld by tbe County Attorney u to form aDd Iepl sutficiency: Pnpared by: CITY OF MIAMI BEACH I~I IS- ~f CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 =- TlLUtfONE: 173-7010 OFFICE OF THE CITY MANAGER November 8, 1993 Hon. Arthur Teele, Chairman Board of County Commissioners Metro-Dade County 111 N.W. 1st street Miami, FL 33134 Dear Chairman Teele: On November 4, 1993, the City Commission of the city Miami Beach serving in its capacity as the Executive Board of the Miami Beach Redevelopment Agency held a public hearing and adopted a series of resolutions authorizing the issuance of $25 million in Tax Increment Revenue Bonds to finance the first phase of the development of convention quality hotel rooms. This action was required by Section 147(F) of the Internal Revenue Code of 1986 (as amended) for "private activity bonds". The convention quality hotel development project, along with the tax increment proceeds necessary to support the $25 million bond issue are all located in the newly created tax increment district, the city center/Historic convention Village District Redevelopment and Revitalization Area. At present, an anomaly exists wherein the new tax increment district overlaps with the South Miami Beach Enterprise Zone. In the tax increment district, the increases in ad valorem taxes will be pledged to fund the $25 million in bonds. In the enterprise zone, the potential exists to grant ad valorem tax exemptions to new and expanding businesses. In order to protect bondholder interest in the pledge of tax increment revenues, we are requesting the Board of County commissioners to consider an ordinance that would amend section 29- 81 of the Code of Metropolitan Dade County, relating to economic develop~ent ad valorem tax exemptions to exclude the newly created convent1on center tax increment district from the enterprise zone. Hon. Arthur Teele, Chairman November 8, 1993 Page -2- The proposed ordinance amending Section 29-81 to exclude the newly created district and a resolution authorizing the issuance of $25 million in Tax Increment Revenue Bonds, along with all supporting documentation have been submitted for first reading to the County Administration for inclusion on the County Commission agenda of November 16, 1993. Due to the urgency to ensure that our application for $25 million in Tax Increment Revenue Bonds is considered for an allocation under the state's 1993 volume cap, the City of Miami Beach requests that the matter be scheduled for initial review before the Finance committee at the November 15, 1993 meeting. Your cooperation in this and all other matters is always appreciated. Roger M. Carlton city Manager PFL:me cc: James Burke, commissioner Miguel Diaz De La Portilla, Commissioner Natacha Millian, Commissioner Alex pinelas, Commissioner Joaquin Avino, County Manager Ed Marquez, Finance Director Robert Nachlinger, Finance Director ~ i f5 ~J 4ff a ~" ! II; 4 gl~ j: l! 1]11 ~ .:.c..:.J C <( -. , -J:a -~ >..i Z.5 E Qftiv ,t:ICI: -'iJ t.t. ~l &: Za:Z W1Z u. ~J:a ~ o 8 u ~ > ()~ -~ roc C ~ u; - - II -- "-I ~ > z g ffi > z 8 i - 53 I ~ ~ ! 5 q r Miami Beach Redevelopment Agency 1700 Convention Center Drive Miami Beach, Florida 33139 Telephone: (305) 673-7193 Fax: (305) 673-7772 REDEVELOPMENT AGENCY MEMORANDUM NO. .93 - 3 2 November 17, 1993 To: Chairman and Members of the Board of the Redevelopment Agency From: Roger M. Carlton !.?AA' t:;J J__ Executive Director 1Jv'b'v~~ SUBJECT: A Resolution of the Miami Beach Redevelopment Agency~ requesting an amendment to Section 29-81 of the Code of Metropolitan Dade County, Florida, disallowing the provision of economic development Ad Valorem tax exemptions for new and expanding businesses located within the boundaries of the Miami Beach Enterprise Zone which fall within the newly created H~storic Convention Village Redevelopment and Revitalization Area. ADMINISTRATION RECOMMENDATION The Administration recommends that the accompanying resolution be passed requesting an amendment to Section 29-81 of the Code of Metropolitan Dade County, disallowing the provision of Tax Abatement within the boundaries of the Miami Beach Enterprise Zone, which fall within the newly created Historic Convention Village Redevelopment and Revitalization Area. BACKGROUND On January 21, 1993, the State of Florida's Department of Community Affairs approved the City of Miami Beach's application to amend the boundaries of the South Miami Beach Enterprise Zone. The Enterprise Zone boundary was extended with the purpose of incorporating the North Beach area. In order to accomplish this, the City extended the boundary up the centerline of Collins Avenue, encompassing all land east of the centerline up to 24th Street, and then used the Indian Creek Waterway to connect with the North Beach area. The area east of the centerline of Collins Avenue up to ~4th Street also falls within the City Center/Historic Convention Village Redevelopment and Revitalization Area, a designated "Community Redevelopment Area which includes all land area generally bounded by 24th Street on the north, 14th Lane on the south, the Atlantic Ocean on the east and West Avenue on the west. ANALYSIS Pursuant to the Constitution of the State of Florida, Florida Statutes Section 196.1995, as amended, and a referendum held in Dade County Florida on November 4th, 1986, the Board of County Commissioners of Dade County, Florida encacted Ordinance No. 88-27 on April 19, 1988, authorizing the Board, at its discretion, to grant by ordinance Ad Valorem tax exemptions to new and/or expanding businesses within located within an enterprise zone. S()UTt1 V()I~ ~edevel()pment Ulstr1(:t CIIT Cr:~~ ~edevel()pment UIstJ1(:t 1 Page 2 Redevelopment Agency Memorandum No. 93-32 There is a problem in offering this incentive in that part of the Enterprize Zone which falls within the Redevelopment Area, since it would adversely affect the ability to undertake tax increment financing because the amount of increment could be offset with abatements. The Administration does not believe that the elimination of Ad Valorem tax abatements within the City Center Redevelopment Area (none have been requested to date) will inhibit the redevelopment of the area in light of the major public and private investments which will be induced with the proceeds of tax increment financing. Unless, Section 29-81 of the Code of Metropolitan Dade County is amended to disallow tax abatement in the Miami Beach Enterprise Zone, the Redevelopment Agency of the City of Miami Beach will not be able to issue Tax Increment bonds wi thin the City Center/Historic Convention Village Redevelopment and Revitalization Area to undertake planned economic and capital improvements. RMC/MD/sh Attachments 2