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94-21166 RESO RESOLUTION NO. 94-21166 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 ASSESSMENT DISTRICT TO BE KNOWN AS THE LINCOLN ROAD CAPITAL IMPROVEMENTS 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 MAY APPEAR BEFORE THE MAYOR AND CITY COMMISSION TO BE HEARD AS TO THE PROPRIETY, ADVISABILITY, AND COST OF MAKING THE PROPOSED IMPROVEMENTS THEREIN, AS TO THE MANNER OF PAYMENT THEREFOR AND AS TO THE AMOUNT THEREOF TO BE ASSESSED AGAINST EACH PROPERTY SO IMPROVED, IN ACCORDANCE WITH CHAPTER 170, FLORIDA STATUTES. WHEREAS, on May 18, 1994, the Mayor and City Commission adopted Resolution No. 94- 21165 ,entitled, "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 Districts 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"; and WHEREAS, in accordance with Resolution No. 94-21165 ,a preliminary assessment roll has been prepared and all of the conditions precedent set forth in Chapter 170, Florida Statutes, as to the holding of the aforementioned public hearing have been satisfied, and are available for public inspection at the Office of the City Clerk, 1700 Convention Center Drive, Miami Beach, Florida. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: SECTION 1. There is hereby declared a public hearing to be held at the Commission Chambers in the City of Miami Beach City Hall, at the hour of 4: 00 p.m. on the 15th day of June , 1994, for the purpose of hearing public comment and objections to the proposed special assessment district for capital improvements to be known as the "Lincoln Road Capital Improvements District No.1", as identified in the preliminary assessment roll, a copy of which is attached and made a part hereof. SECTION 2. Notice of the hearing shall be advertised in accordance with Chapter 170, Florida Statutes, and the City Clerk is hereby authorized to place the Notice in a newspaper of general circulation within the City of Miami Beach. SECTION 3. This resolution shall come in effective upon its adoption. PASSED and ADOPTED this 18th day of May ,1994. ATTEST: ~JS~ CITY CLERK RJAdsk2\a:dist1 hrg.res 5/09/94 fORM APPROV[U LEGAL DEPT. By ~Li> Date {' - \ ~-'Z.,-\ 2 ..St., CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 CITY OF MIAMI BEACH OHICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010 FAX: (305) 673-n82 COMMISSION MEMORANDUM NO..3 7 ~ -9'1 TO: Mayor Seymour Gelber and Members of the City Commission DATE: May 18, 1994 FROM: Roger M. Carito City Manager SUBJECT: A) A RESOLUTION 01' THE MAYOR AND CITY COMHISSIOR 01' THE CITY 01' MIAXI BEACH, FLORIDA, CREATING, SUBJBCT TO THE APPROVAL 01' A MAJORITY 01' THE AFFECTED PROPERTY OWNERS, A SPECIAL ASSBSSMENT DISTRICT I'OR A PERIOD or OBB (1) YEAR, TO BE Dlon AS 'l'HE LINCOLll ROAD XABAGEXElIT DISTRICT NO.1; PROVIDING FOR 'l'HE LEVYING 01' SPECIAL ASSBSSJlEllTS; INDICATING THE LOCATION, NATURE AND ESTlMATBD COST 01' THOSE SERVICBS WHOSB COSTS ARB TO BB DBFRAYED IR PART BY THB SPECIAL ASSBSSKElITS; PROVIDING THB PORTIOR 01' THE ESTlMATBD COST 01' THE SERVICES TO BB PARTIALLY DBPRAYBD BY THB SPBCIAL ASSESSKElITS; PROVID1:NG THB XANlIER IR WHICH SUCH SPBCIAL ASSESSKElITS SHALL BB HADB; PRO~DING WHElI SUCH SPBCIAL ASSBSSKElITS SHALL BB KWB; DBSIGNATIRG LANDS UPON WHICH THB SPECIAL ASSESSxmf'1'S SHALL BB LEVIBD; PROVIDING FOR PUBLICATION 01' 'I'HIS RESOLUTIOR; AND AUTHORIZING RBLATED ACTIONS. B) A RBSOLUTION 01' THB MAYOR AND CITY COMHISSIOR 01' THB CITY 01' MIAXI BEACH, FLORIDA, PIXING A TID AND PLACB AT nl:CH THB OWNERS 01' PROPERTY SPBCl:ALLY BBHBFl:TTBD BY THB CREATION 01' A SPECIAL ASSESSXBlIT DISTRICT TO BB KNOWN AS THB LINCOLN ROAD MAlIAGEXElI'J.' DISTRICT NO.1, FOR THAT AREA 01' LINCOLN ROAD BOUNDBD ON THB nST BY ALTOR COURT, BOUNDBD ON THB EAST BY COLLINS AVENUB, BOUNDBD ON THB SOU'l'H BY 16TH STRBET, AND BOUNDED ON 'l'HE RORTH BY 17TH STREET, ALL WITHIN THB CORPORATB LIMITS 01' THB CITY 01' MIAXI BEACH, FLORIDA, OR ANY OTHER PERSONS INTERBSTBD THEREIN MAY APPEAR BBFORB THE MAYOR AND CITY COMMISSION TO BB HEARD AS TO 'l'HB PROPRIBTY, ADVISABILITY, AND COST FOR THB PROVISION OF THB PROPOSBD SBRVICES THERBIR, AS TO THB MANNBR 01' PAYMENT THERBFOR AND AS TO THB AMOUNT THEREOF TO BB ASSESSBD AGAINST EACH PROPERTY SO BENEFITTBD, l:N ACCORDANCB Wl:TH CHAPTER 170, FLORl:DA STATUTBS. C) A RESOLUTION 01' THB MAYOR AND CITY COMHISSION 01' THE CITY 01' MIAMI BEACH, FLORIDA, CREATING A SPBCIAL ASSESSMENT DISTRICT TO BB KHon AS '1'HE LINCOLN ROAD CAPITAL IMPROVEMENTS DISTRl:CT NO.1; PROVIDING FOR THB LEVYING 01' SPBCl:AL ASSESSMENTS; l:lIDICATl:NG THB LOCATl:ON, NATURB AND BSTlMATBD COST 01' 'l'HOSB IMPROVEHEllTS WHOSB COSTS ARE TO BB DEFRAYBD IN PART BY THB SPECIAL ASSESSJlEllTS; PROVIDING 'l'HB PORTION 01' THB ESTlMATBD COST 01' THB l:MPROVEMENTS TO BB PARTIALL Y DBFRAYBD BY THB SPECIAL ASSESSMENTS; PROVIDING THB HAHNER IN WHICH SUCH SPECIAL ASSESSMENTS SHALL BB MADB; PROVl:Dl:NG WHEN SUCH SPBCIAL ASSESSMENTS SHALL BB MADB; DBSIGNATING LANDS UPON MUCH THB SPBCIAL ASSBSSKBN'l'S SHALL BB LBVl:BD; PROVl:DING FOR PUBLICATION 01' THIS RBSOLUTION; AND AUTHORIZING'5 RELATBD ACTIONS. ~ 0 -1- AGENDA ITEM R~3-h ) 5-/^6- 9<-/ DATE D) A RESOLUTION OP THE MAYOR AND CITY COMMISSION OP THE CITY OP MIAMI BEACH, PLORIDA, PIXING A TIME AND PLACE AT WHICH THE OWNERS OP PROPERTY SPECIALLY BENEPITTED BY THE CREATION OP A SPECIAL ASSBSSMENT DISTRICT TO BE KNOWN AS THE LINCOLN ROAD CAPITAL IMPROVEMENTS DISTRICT NO.1, FOR THAT AREA OP LINCOLN ROAD BOUNDED ON THE WEST BY WEST AVENUE, BOUNDED ON THE EAST BY COLLINS AVENUE, BOUNDBD ON THE SOUTH BY 16TH STREET, AND BOUNDED ON THE NORTH BY 17TH STREET, ALL WITHIN THE CORPORATE LIMITS OP THE CITY OP MIAMI BEACH, PLORIDA, OR ANY OTHER PERSONS INTERESTED THEREIN MAY APPEAR BEPORE THE MAYOR AND CITY COMMISSION TO BE HEARD AS TO THE PROPRIBTY, ADVISABILITY, AND COST OP MAKING THE PROPOSED IMPROVEMENTS THEREIN, AGAINST 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 Imorovements: 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 Al ton 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. -2- J51 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 1 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 Source Infrastructure $ 5.5 million City - Water, Sewer, Storm Water Fees Road Work (off mall) $ 1. 5 million City - Gas Tax Mall "enhancements" $ 9.0 million 50% City: Resort Tax,Other 50% Property Owners: Assessment Dist. Total Costs: $16.0 million ODerational Costs: Annual (1st year only) $759,000.00 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 "A". 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- j~2 Schuh and 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 Bxhibit 0-1. 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 every 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- 153 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 limi ting the impact on residential property owners. A map and legal description of the Management District is included as Exhibit 0-2. 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 ha~e 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 Resor~ 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 j5~ -5-