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94-21165 RESORESOLUTION NO. 94-21165 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, CREATING A SPECIAL ASSESSMENT DISTRICT TO BE KNOWN AS THE LINCOLN ROAD CAPITAL IMPROVEMENTS DISTRICT NO. 1; PROVIDING FOR THE LEVYING OF SPECIAL ASSESSMENTS; INDICATING THE LOCATION, NATURE AND ESTIMATED COST OF THOSE IMPROVEMENTS WHOSE COSTS IS TO BE DEFRAYED IN PART BY THE SPECIAL ASSESSMENTS; PROVIDING THE PORTION OF THE ESTIMATED COST OF THE IMPROVEMENTS TO BE PARTIALLY DEFRAYED BY THE SPECIAL ASSESSMENTS; PROVIDING THE MANNER IN WHICH SUCH SPECIAL ASSESSMENTS SHALL BE MADE; PROVIDING WHEN SUCH SPECIAL ASSESSMENTS SHALL BE MADE; DESIGNATING LANDS UPON WHICH THE SPECIAL ASSESSMENTS SHALL BE LEVIED; PROVIDING FOR PUBLICATION OF THIS RESOLUTION; AND AUTHORIZING RELATED ACTIONS. WHEREAS, the Lincoln Road Task Force (Task Force) was established in order to work with the City of Miami Beach, Florida (City) in developing a comprehensive plan for the overall redevelopment and revitalization of the Lincoln Road area, located within the corporate limits of the City (Area); and WHEREAS, the purpose of the Task Force and the City's revitalization efforts is to maintain the redevelopment momentum which has been generated in the Area and to realize the promise that many business and property owners are beginning to experience, as well as to increase the sense of pride and community that the citizens of Miami Beach have for the Area; and WHEREAS, in order to continue to stimulate and ultimately realize the City and Task Force's revitalization plan for the Area, the Mayor and City Commission have determined to make and acquire, or cause to be made and acquired, the public improvements set forth in Exhibit "A", attached and incorporated herein (Improvements), for that area of Lincoln Road bounded on the West by West Avenue, on the East by Collins Avenue, on the South by 16th Street, and on the North by 1 7th Street (District); and WHEREAS, the Mayor and City Commission wish to defray a portion of the cost of the Improvements by special assessments (Assessments); and WHEREAS, Chapter 170, Florida Statutes, as amended (Act), provides that a municipality may levy and collect special assessments against property benefited for the purpose of making public improvements, and the City wishes to proceed in accordance with the Act by creating a special assessment district to be known as the "Lincoln Road Capital Improvements District No. 1 ", for the purpose of making the Improvements within the District; and WHEREAS, the Mayor and City Commission have further determined that benefits will accrue to the property improved within the District, and that Assessments will be made in proportion to the benefits received, all as set forth in Exhibit "B", attached and incorporated herein; and WHEREAS, the Mayor and City Commission have further determined that the Assessments to be levied will not exceed the benefits to the property improved thereby. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA THAT: ~ All findings and recitals contained in this Resolution are hereby adopted and incorporated herein. ,S~TJO3~L~ Assessments shall be levied in accordance with the provisions of the Act, and as described herein, to defray a portion of the cost of the Improvements. SECTION 3. In accordance with Ordinance No. 92-2782, adopted by the City on June 17, 1992, it is hereby determined that the provisions of Ordinance No. 92-2782 shall levied and imposed pursuant to the provision of this not apply to the Assessments Resolution. SECTION 4. attached and incorporated The nature of the Improvements is set forth in Exhibit "A", herein, and more specifically described in the plans and specifications on file with the City Clerk. SECTION $. The District upon which the Assessments shall be levied shall incorporate the total area as set forth in the map attached and incorporated herein as Exhibit "C", and reflecting the legal description as set forth in Exhibit "D", attached and incorporated herein. SECTION 6. The estimated cost of the Improvements, including, without limitation, costs of construction, labor and materials, cost of plans, specifications and surveys, engineering and legal expenses, financing charges, capitalized interest and contingency, is approximately $9,780,000.00 (Estimated Cost). ~ The Assessments will defray approximately $4,890,000.00 of the Estimated Cost, the balance to be paid by the City from other available funds. ~ The Assessments, (i) with respect to commercial properties within the District, shall be made on the combined basis of linear front footage, linear side footage and, with respect to space above ground level, square footage, as applicable, and (ii) with respect to residential properties within the District, shall be made on the basis of square footage, all as more particularly described in Exhibit "E", attached and incorporated herein. ~ In the event the actual cost of the Improvements exceeds the Estimated Cost, such excess shall also be paid by the City from other available funds. ~ The Assessments shall be levied on all lots and lands which are adjoining, contiguous, bounding or abutting upon the Improvements or specially benefited thereby, and further designated on the Assessment plat referenced below within the boundary of the District. ~ At the time of adoption of this Resolution, there is on file with the City Clerk, an Assessment plat showing the area to be assessed, with plans and specifications, and an estimate of the cost which is open to inspection by the public. SECTION 12. The City Administration is hereby authorized and directed to cause to be made a preliminary assessment roll, as promptly as possible, which shall show the lots assessed, the amounts of benefit to and the Assessments against each lot and the number of annual installments into which the Assessments are divided. $I~C'I-ION 13. Assessments shall be payable at the Office of the Finance Director of the City over a period of fifteen (15) years, in equal annual principal installments, plus interest thereon at a rate of interest equal to eight percent (8%) per annum computed on the unpaid balance thereof from the date of acceptance of the Improvements by the City. The annual installments and interest payments shall be due and payable on the first day of the month occurring three (3) months after acceptance of the Improvements by the City, and on the same day of each year thereafter until paid in full. Annual installments not paid when due shall become due and payable in accordance with the provisions of the Act. Assessments with respect to any property may be prepaid in whole, but not in part, on any date after the Improvements have been completed and accepted by the City, by presenting to the Finance Director of the City monies sufficient to pay the remaining unpaid balance of the Assessments plus interest to accrue to the next succeeding annual installment due date (or to the second succeeding annual installment due date if such prepayment is made within forty-five (45) calendar days of the next succeeding annual installment due date); provided, however, that Assessments with respect to any property may be prepaid in whole, but not in part, without interest (other than interest which is part of the Estimated Cost), at any time within thirty (30) days after the Improvements are completed and accepted by the City, by presenting to the Finance Director of the City monies sufficient to pay the unpaid balance of such Assessments. The Finance Director of the City shall mail to each property owner within the District bills for each annual installment at least thirty (30) days before their due date. SECTION 14. Upon completion of the preliminary assessment roll, the Mayor and City Commission shall adopt a subsequent resolution to fix a time and place at which the owners of the property to be assessed or any other persons interested therein may appear before the Mayor and City Commission and be heard as to the propriety and advisability of the Assessments or the making of the Improvements, the costs thereof, the manner of payment therefor, or the amount thereof to be assessed against each lot as improved, all in accordance with the Act. SECTION 15. The City Clerk is hereby directed to cause this Resolution to be published once in a newspaper of general circulation within the City. SECTION 16. The City Administration is hereby authorized and directed to take all actions necessary to carry out the intent of this Resolution. SECTION 17. This Resolution shall take effect upon its adoption. ATTEST: CITY CLERK RJA/cnm RJAdsk2~a:specdist.res-5/12/9420 PASSED and ADOPTED this 18th da,~ FORM AP/P OVED LEG EPT. 4 EXHBIT A I.INCOLN ROAD CAPITAL IMPRO~ DISTRICt #1 Proposed Capital Improvements 50~E Planing HARDSCAP~ Curbs Surfac~ DEMOLITION & PREP Remove Amenities Remove Curbs Remove Paving Set. tX ISerriers Graphics ~ U~h~ Plant~r Wall Improvement~ '$1,473,914 93216 522~6S.20 2~00 187,704 417,350 1213,1~ 3~,7~ 5i~ F~ 4~ ~atg F~a~ ~pmvemen~ SUB'/EKAL 6,,385,524,80 TOTAL 7,343,353.52 Contingency & Professional Fee~ GRAND TOTAL 0 ~ c+ 0 §~ ..... ~§o ~oo~o~o, ~ ~oo~ooo ~ o~ o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o o0 o o o o o o o o o o o o o o o o o o o o ~ ~o oooo~ ~ ~ ~ ~ ooooooooooooooooooo ~ ~qooo° .... o°o~o° .... o°o°o ........ ooooooooooooooooooooooooooo o oo o o o o o o o o o o g o o° o oo o o o o o o o o o o ooooooooo°ooooooo .... ~oo° 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Z 0 o oooooooooooooooooooooo 0 0 0 0 0 o o oo°ooo°oo° o o oooooo o o o o o § .... o°oooo o o o o o o ~ 0 000~ n 0 o oOoOooOoooOooOoooO o '1 t._ · CAPITAL IMPROVEMENT DISTRICT LEGAL DESCRIPTION All of Lots 1, 2 and 3, Block 30, Alton Beach First Subdivision, Plat Book 2 at Page 77 of the Public Records of Dade County, Florida AND Ail of Lots i through 6 and 14 through 20, Block 31, Alton Beach First Subdivision, Plat Book 2 at Page 77 of the Public Records of Dade County, Florida. AND. All of Lots 1 through 6, Block 1, all of Lots 1 through 7, Block 2 and all of Lots I through 7, Block 3, Lincoln Road Subdivision A, Plat Book 34 at Page 66 of the Public Records of Dade County, Florida. AND All of Blocks 35 and 36, Golf Course Subdivision Amended Plat, Plat Book 6 at Page 26 of the Public Records of Dade County, Florida. AND All of Block 37, Commercial Subdivision, Plat Book 6 at Page 5 of the Public Records of Dade County, Florida. AND All of Lots I through 6, Block 38, Commercial Subdivision, Plat Book 6 at Page 5 of the Public Records of Dade County, Florida. AND All of Lots 7 through 20, Block 38, Palm View Subdiivision, Plat Book 6 at Page 29 of the Public Records of Dade County. AND All of Lots 1 through 6, Block 39, Commercial Subdivision, Plat Book 6 at Page 29 of the Public Records of Dade County, Florida. AND All of Lots 7 through 13, Block 39, Palm View Subdivision, Plat Book 6 at Page 29 of the Public Records of Dade County, Florida. AND All of Lots 14 through 20, Block 39, Commercial Subdivision First Addition, Plat Book 6 at Page 30 of the Public Records of Dade County, Florida. AND All of Lots 1 through 10, Block 40, Commercial Subdivision First Addition, Plat Book 6 at Page 30 of the Public Records of Dade County, Florida. AND Lots 20 and 21, Block 40, Alton Beach Realty Company's Subdivision, Plat Book 6 at Page 165 of the Public Records of Dade County, Florida. AND Lots 11 and 12, Block 45, Alton Beach Realty Company's Subdivision, Plat Book 6 at Page 165 of the Public Records of Dade County, Florida. AND All of the Lots 1 through 9, Block 45, Commercial Subdivision, Plat Book 6 at Page 5 of the Public Records of Dade County, Florida. AND All of Lots 7 through 18 Block 46, Commercial Subdivision, Plat Book 6 at Page 5 of the Public Records of Dade County, Florida. AND Ail of Lots 6 through 12, Block 47, Lincoln Subdivision, Plat Book 9 at Page 69 of the Public Records of Dade County, Florida. AND All of Lots 5 through 13, Block 48, Lincoln Subdivision, Plat Book 9 at Page 69 of the Public Records of Dade County, Florida. AND All of Lots 7 through 13, Block 49, Lincoln Subdivision, Plat Book 9 at Page 69 of the Public Records of Dade County. AND All Lots 1 through 6, Block 50, Alton Beach Realty Company's Second Commercial Subdivision, Plat Book 6 at Page 33 of the Public Records of Dade County, Florida. AND All of Lots 6 and 7, Block 50A, Lincoln Subdivision, Plat Book 9 at Page 69 of the Public Records of Dade County, Florida. AND All of Lots 1 through 6, Block 51, Alton Beach Realty Company's Second Commercial Subdivision, Plat Book 6 at Page 33 of the Public Records of Dade County, Florida. AND All of Lots 1 through 4, Block 52, Alton Beach Realty Company's Second Commercial Subdivision, Plat Book 6 at Page 33 of the Public Records of Dade County, Florida. AND All of Lots 1 through 10, Block 53, Pine Ridge Subdivision, Plat Book 6 at Page 34 of the Public Records of Dade County, Florida. AND Ail of Lots 5 through 22, Block 54, Alton Beach First Subdivision, Plat Book 2 at Page 77 of the Public Records of Dade County, Florida. AND That POrtion of Section 34, Township 53 South, Range 42 East, City of Miami Beach, Dade County, Florida lying south of the South Right-of-Way line of Seventeenth Street; lying west of the West Right-of-Way line of Washington Avenue; lying north of the North Right-of-Way line of Lincoln Lane; lying east of the East line of Golf Course Subdivision Amended Plat, Plat Book 6 at Page 26 of the Public Records of Dade County, Florida. AND That portion of Section 34, Township 53 South, Range 42 East, City of Miami Beach, Dade County, Florida lying north of the North Right-of-Way line of Lincoln Road; lying east of the East line of Golf Course Subdivision Amended Plat, Plat Book 6 at Page 26 of the Public Records of Dade County, Florida; lying west of the West line of Lincoln Road Subdivision A, Plat Book 34 at Page 66 of the Public Records of Dade County, Florida; lying southerly of the Northerly Right-of-Way line of Lincoln Lane extended westerly. LD-6 EXHIBIT E LINCOLN ROAD METHOD OF ASSESSMENT BY DISTRICT For corner wrap-around buildings on Lincoln Road, the first 150 feet of side footage is assessed at half the respective rate of whichever side street they are located on. Any side footage in excess of 150 feet is assessed at the normal rate for that side street. In order to avoid double assessing properties owaed by non-profit entities, they were assessed in the same manner as other properties within the district, by linear front and side footage as opposed to the amount of non-profit area within the property. CAPITAL IMPROVEMENT DISTRICT ASSESSMENT PER: Front Foot Upstairs Area Residential Area Uncoln Road $33.32 $ 0.17 Major Side Streets (Alton, Collins, Washington) $24.94 ~ $ 0.17 ____------ $ 0.O8 ~Capital Improvement Distric! Category "A" - Properties with exposure on Lincoln Road. TOTAL COLLECTIONS: $531,319 Secondary Side Streets Streets (James, Drexel,Pennsylvania, Euclid, Meridian, Jefferson, Michigan, Lenox __.------- $17.64 $ 0.17 0.08 Category "B" - Properties with no exposure on Lincoln Road. TOTAL COLLECTIONS: $ 40,162 TOTAL CATEGORIES A + B ~ CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 OFFICE OF THE CITY MANAGER COMMISSION MEMORANDUM TELEPHONE: (~OS) 673-7010 FAX: (~OS) 673-7782 TO: FROM: Mayor Seymour Gelber and Members of the City Commission Roger M..Carlto~/~/~ {~ / C~ty Manag-'~ ~ ¥ · ~ DATE: May 18, 1994 SUBJECT: A) A RESOLUTION OF THE M~YORAND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, CREATING, SUBJECT TO THE APPROFAL OF A MAJORITY OF THE AFFECTED PROPERTY OWNERS, A SPECI]~ ASSESSMENT DISTRICT FOR A PERIOD OF ONE (X) YEAR, TO BE KNOWNASTHE LINCOLN ROADMAN~GEMENTDISTRICT NO. L; PROVIDING FORT HE LEVYING OF SPECIAL ASSESSMENTS; INDICATING THE LOCATION, N~TURE AND ESTIMATED COST OF THOSE SERVICES WHOSE COSTS ARE TO BE DEFI~AYED IN PART BY THE SPECIAL ASSESSMENTS; PROVIDING THE PORTION OF THE ESTIMATED COST OF THE SERVICES TO BE PARTIALLY DEFRAYED BY THE SPECIAL ASSESSMENTS; PROVIDING THEMANNERINRHICH SUCH SPECIAL ASSESSMENTS SHALL BE MADE; PROVIDING WHEN SUCH SPECIALASSESSMENTS SHALL BE NADE; DESIGMATINGLAND8 UPON WHICH THE SPECIAL ASSESSMENTS SHALL BE LEVIED; PROVIDING FOR PUBLICATION OF THIS RESOLUTION; AND AUTHORIZING RELATED ACTIONS. B) A RESOLUTION OF THE MAYOR ANDCZTY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, FIXING A TIME ANDPLACE AT WHZCH THE OWNERS OF PROPERTY SPECIALLY BENEFITTED BY THE CREATION OF A SPECIAL ASSESSMENT DISTRICT TO BE KNOWN AS THE LINCOLN ROADMA1TAGEMENTDISTRICT NO. 1, FOR THAT AREA OF LINCOLN ROAD BOUNDED ON THE WEST BY ALTON COURT, BOUNDED ON THE EAST BY COLLINS AVENUE, BOUNDED ON THE SOUTH BY 16TH STREET, AND BOUNDED ON THE NORTH BY 17TH STREET, ALL WITHIN THE CORPORATE LIMITS OF THE CITY OF MIAHI BEACH, FLORIDA, OR ANY OTHER PERSONS INTERESTED THEREIN MAY APPEAR BEFORE THE MAYOR AND CITY COMMISSION TO BE HEARD AS TO THE PROPRIETYt ADVISABILITYt AND COST FORT HE PROVISION OF THE PROPOSED SERVICES THEREIN, AS TO THE MANNER OF PAYMENT THEREFOR AND AS TO THE AMOUNT THEREOF TO BE ASSESSED AGAINST EACH PROPERTY 80 BENEFITTED~ IN ACCORDANCE WITH CHAPTER 170, FLORIDA STATUTES. C) A RESOLUTION OF THE NAYORAND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA~ CREATING A SPECIAL ASSESSMENT DISTRICT TO BE KNOWN AB THE LINCOLN ROAD CAPITAL IMPROVEMENTS DISTRICT NO. 1; PROVIDING FOR THE LEVYING OF SPECIAL ASSESSMENTS; INDICATING THE LOCATION, NATURE AND ESTIMATED COST OF THOSE IMPROVEMENTS WHOSE COSTS ARE TO BE DEFRAYED IN PART BY THE SPECIAL ASSESSMENTS; PROVIDING THE PORTION OFT HE ESTIMATED COST OF THE IMPROVEMENTS TO BE PARTIALLY DEFRAYED BY THE SPECIAL ASSESSMENTS; PROVIDING THE MANNER IN WHICH SUCH SPECIAL ASSESSMENTS SHALL BE MADE; PROVIDING WHEN SUCH SPECIAL ASSESSMENTS SHALL BE MADE; DESIGNATING LANDSUPON WHICH THE SPECIAL ASSESSMENTS SHALL BE LEVIED; PROVIDING FOR PUBLICATION OF THIS RESOLUTION; AND AUTHORIZINGI~ RELATED ACTIONS. ITEM D) A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, FIXING A TIME AND PLACE AT WHICH THE OWNERS OF PROPERTY SPECIALLY BENEFITTED BY THE CREATION OF A SPECIAL ASSESS~ DISTRICT TO BE KNOWN AS THE LINCOLN ROAD CAPITAL IMPRO~S DISTRICT NO. 1, FOR THAT AREA OF LINCOLN ROAD BOUNDED ON THE WEST BY WEST AVENUE, BOUNDED ON THE EAST BY COLLINS AVENUE, BOUNDED ON THE SOUTH BY 16TH STREET, AND BOUNDED ON THE NORTH BY 17TH STREET, ALL WITHIN THE CORPORATE LIMITS OF THE CITY OF MIAMI BEACH, FLORIDA, OR ANY OTHER PERSONS INTERESTED THEREIN NAY APPEAR BEFORE THE MAYOR AND CITY COMMISSION TO BE HEARD AS TO THE PROPRIETY, ADVISABILITY, AND COST OF MAKING THE PROPOSED IMPROVEMENTS THEREIN, AC, AINST EACH PROPERTY SO IMPROVED, IN ACCORDANCE WITH CHAPTER 170, FLORIDA STATUTES. ADMINISTRATION RECOMMENDATION: It is recommended that the City Commission adopt the above captioned four Resolutions which establish the two assessment districts necessary to accomplish the objectives of the Lincoln Road Task Force and set a time and place for_ a future public hearing to finalize the special districts. BACKGROUND: This item was deferred from the April 20, 1994, City Commission meeting in order to allow the Task Force more time to work with 'property owners and businesses to finalize the assessment formula. Since that meeting, numerous meetings have occurred with property owners, a coordinating council meeting was held on April 28, 1994, and a City Commission workshop was held on May 3, 1994. At the City Commission workshop, the Commission was presented with a cost and funding analysis. The formula, boundaries and length of bond pay back were discussed and an approximate $100,000 shortfall in the Management District was identified. After more than two years of study, debate, and planning, the Lincoln Road Task Force, representative of all interests in the Lincoln Road area and the City of Miami Beach, have reached consensus on a revitalization plan. The purpose of the revitalization efforts is to maintain the redevelopment momentum and to realize the promise that many business and property owners are beginning to realize, as well as to increase the sense of ownership and pride the citizens of Miami Beach have for "their" Lincoln Road. Many proposals and attempts to improve Lincoln Road have been advanced and abandoned. The City Commission has before it a partnership process that establishes the foundation for continued growth and realization of benefit both to the City and to the property and business owners of Lincoln Road, who make up an important part of the City. In order to make this happen, the commitment of government and the empowerment of the private sector is needed to establish two special assessment districts. The following is an analysis of the process and purpose of the district. ANALYSIS: A) Physical Improvements: The plan includes physical improvements, both aesthetic enhancement and infrastructure. Scheduled to be done in two phases, Phase 1 includes approximately $800,000 of work to be done between AltOn Road and Washington Avenue. The plan includes the removal of defunct and/or extraneous signage, low-level lighting and mismatched fixtures and is in the process of construction now. Phase II includes approximately $5.5 million of under-the- pavement infrastructure replacement which the City of Miami Beach is providing, including drainage and sewer lines, and some electrical work. Improvements will occur from West Avenue to Collins Avenue, and roughly from 17th Street to 16th Street. Coordinating these needed improvements with the construction that is planned for the Road will eliminate the need to dig again in two or three years. An additional $1.5 million will come from City revenue sources to improve the north-south cross-streets, including new curbs, gutters, paving, traffic and pedestrian lights, etc. $9.0 million will pay for the enhancement of the pedestrian environment on · Lincoln Road and cross streets. Phase i improvements are included in this amount as well as all new pavement, signage, pedestrian directories, benches, refurbishing, new fountains, more street trees and paving for cross street areas, etc. Money advanced to the Task Force for the planning effort thus far, including staff, planning and design consultants totaling approximately $400,000 will be included in this budget. LINCOLN ROAD CAPITAL IMPROVEMENT COSTS Infrastructure $ 5.5 million Road Work (off mall) Mall "enhancements" $ 1.5 million $ 9.0 million Total Costs: Operational Costs: Annual (1st year only) $16.0 million $759,000.00 SoUrce City - Water, Sewer, Storm Water Fees City - Gas Tax 50% City: Resort Tax,Other 50% Property Owners: Assessment Dist. 66% City: Resort Tax 34% Property Owners: Assessment Dist. Phase II improvements are scheduled to be started in April of 1995, and completed within fourteen to eighteen months. The Lincoln Road Task Force has supported the concept of property owners paying for $4.5 million or half of the enhancement portion of the project. The action before the city Commission today is to consider the formation of a special assessment district for the purpose of funding these improvements in accordance with the provisions of Florida Statutes Chapter 170. The concept is to provide $4.5 million (plus loan costs) with interest capitalized during construction with a 17 year amortization at 8% interest, requiring a debt service of approximately $538,500 annually. No assessments will be assessed against property owners until the physical improvements are certified "DONE," which is expected to be accomplished by November 1995. After consideration of many methods of assessment, consensus was reached by the Lincoln Road Task Force on an equitable formula. The agreed upon assessment formula is a blended one, charging for linear front footage, linear side footage, and a rate per square foot for space above ground level. The method of assessment and dollar amounts assessed per street and property category are presented in Exhibit "&". The assessment will be based upon information gathered from Dade County, as well as field verification done by the engineering firms of Bermello Ajamil and Partners,.Inc., and Post Buckley -3- Sch%~hand Jernigan, Inc. (See attached preliminary assessment roll Exhibit "B".) Condominium owners included in the district must be assessed individually. The anticipated annual cost per unit will be similar to the Ocean Drive Special Assessment District in which the condominium owners are assessed based on the percentage of ownership of common area. That roll is listed separately in the City Clerk's office and at the Task Force Office. A map and legal description of the Capital Improvement District is included as Exhibit C-1. B) Management Services In order to maintain the significant physical improvements planned for Lincoln Road, and to provide other important elements for a successful residential, business and cultural district, a multi-purpose management plan is proposed. The purpose of the management plan, which will be funded by this District, is to facilitate property and business owner's leadership and involvement in the improvement and enhancement of the Lincoln Road area and most specifically, their own property and business interests. The management program will enhance and expand otherwise unavailable services or service levels, facilities and improvements within the district. Participation and baseline services provided by the city will continue. Upgraded sanitation and garbage collection, sidewalk cleaning, litter and graffiti control, security, operation of the Tram, landscape maintenance, a marketing program for the district, special event management, and other long range planning needs will be included. The Lincoln Road revitalization plan allows for these needs to be met and, in essence, determined by the constituents of the district subject to annual review by the City Commission. The cost for these services, including administration, is estimated to be $759,000 for the first year. The proposed budget is attached at Exhibit D. The City Attorney's Office will require approval of the majority of property owners in the district. This vote must take place prior to the final reading of the Ordinance. As the district is initiated and programs are established, the budget will be adjusted and approved ever~year, so that services may be added or changed and assessments changed accordingly. Other revenue sources will include resort tax revenues and eventually table fees from outdoor dining, revenue from lease of City property and increased parking revenues. Here again, the City is asked to be a partner in this district, paying $500,000/year for the first two years. Future allocations from the City of Miami Beach will be subject to availability of funds and the overall City budget process. The district will be managed by the Lincoln Road Partnership Inc., the successor organization to the Lincoln Road Task Force, which will have representatives from all interests that make up Lincoln Road. An agreement with the organization, similar to the Ocean Drive Management Agreement, between the City and the entity, will be prepared. By-laws for the organization have been drafted and will be available for review by the time of the second public hearing. Again, the assessment formula, which will provide $282,854 the first year, is a blended formula based upon linear front footage, side footage and a per square foot fee for area above the ground floor. As indicated previously, the method of assessment and dollar amounts assessed per street and property category are presented in Exhibit A. Assessments for these purposes would be collected later this year. Again, the assessment to property will be based upon information gathered -4- J53 from Dade County, as well as some field verification done by the engineering firms of Bermello Ajamil, and Post Buckley. Unlike the Capital Improvements District, the east and west boundaries for the Management District were amended to only extend to Alton Court on the east and Collins Avenue on the West thereby limiting the impact on residential property owners. A map and legal description of the Management District is included as Exhibit C-2. FINANCING: The 'Lincoln Road Project consists of three components, infrastructure improvements of approximately $5.5 million, construction of the road portions north and south of Lincoln Road at an approximate cost of $1.5 million and the enhancement improvements 50% of which will be recovered through special assessments of approximately $9 million. The combined project cost of $16 million will be financed through a loan from the Sunshine State Municipal Loan Pool. This Loan Pool is on a variable rate basis with the rate payable on the loan tied to the tax exempt thirty day rate. This thirty day rate is currently at approximately 3.25 percent and the loan will hav~ a final maturity of twenty years. Anticipated debt service is $1.5 million annually. The funds that will be used to repay this loan come from various sources. The portion attributable to infrastructure improvements (approximately $500,000 annually) will be repaid from a combination of water and sewer funds, storm water funds and proceeds of the gasoline tax. The balance of the project will be financed from the special assessment and from Resort Tax. Finally, the City's share of the costs for the maintenance/management district ($500,000) will come from the Resort Tax the first two years. Beyond that time frame, the City share will be generated by revenues from the table tax on Lincoln Road and increased revenue from other sources on Lincoln Road, including revenues from the lease of city property and increased parking revenues. CONCLUSION: Lincoln Road is making a dramatic comeback, stimulated by improvements in the South Beach area, but primarily based on the anticipation of an improved business environment that is physically improved and managed well. Owners of Lincoln Road property recognize this and have proposed a plan to accomplish that vision. It is fair for the City of Miami Beach to provide basic infrastructure needs as well as a portion of the aesthetic enhancements. It is further appropriate for the City to provide basic operational services. Service enhancements are being funded by the owners and their tenants similar to Ocean Drive. This innovative approach will ensure that this Lincoln Road effort creates long-term success. The City Commission should adopt the attached Resolutions on first reading after the public hearing. RMC:jph Attachments -5-