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94-21214 RESO RESOLUTION NO. 94-21214 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, DETERMINING THAT CERTAIN SERVICES BE PROVIDED PURSUANT TO THE CREATION OF THE LINCOLN ROAD MANAGEMENT DISTRICT NO.1, AS DECLARED BY RESOLUTION NO. 94-21163 ADOPTED ON MAY 18, 1994; AND FURTHER LEVYING SPECIAL ASSESSMENTS AGAINST PROPERTIES IN SAID DISTRICT BENEFITTED BY THE PROVISION OF SUCH SERVICES, IN ACCORDANCE WITH THE FINAL ASSESSMENT ROLL TO BE FILED FORTHWITH WITH THE CITY CLERK. WHEREAS, Chapter 170, Florida statutes, as amended (Act), provides that a municipality may levy and collect special assessments against property benefitted for the purpose of stabilizing and improving retail and/or wholesale business districts and/or nationally recognized historic districts through the promotion, management, marketing, and other similar services in such districts of the municipality; and WHEREAS, on May 18, 1994, by Resolution No. 94-21163, the Mayor and City Commission of the City of Miami Beach, Florida, declared the creation of a special assessment district known as the Lincoln Road Management District No.1, for that area of Lincoln Road bounded on the west by Alton Court, on the east by Collins Avenue, on the south by 16th Street, and on the north by 17th street (District), for the provision of those certain services as set forth in Exhibit "A" of Resolution No. 94-21163 (Services), attached hereto and incorporated herein as Exhibit No.1, all in accordance with the applicable provisions of the Act; and WHEREAS, a preliminary assessment roll has been filed with the Office of the City Clerk indicating the lots and lands to be assessed, the amount of the benefit to and the assessment against each lot and/or parcel of land, all as required by the Act; and WHEREAS, the Lincoln Road Task force and Lincoln Road Director have also obtained the approval of a maj ori ty of the affected property owners within the District as to the levying and collection of the assessments, as additionally required by the Act and as evidenced in the petition attached hereto and incorporated herein as Exhibit No.2; and WHEREAS, on June 15, 1994, by Resolution No. 94-21189, the Mayor and City Commission scheduled and thereafter held a public hearing on July 13, 1994 to hear testimony from all property owners and any other interested persons regarding the propriety, advisability and cost of providing the Services in the District; and WHEREAS, all affected property owners have received appropriate notice of said public hearing, as prescribed by the Act; and WHEREAS, all complaints, comments and obj ections by interested persons and affected property owners were received at said hearing and thereafter treated on the basis of justice and right, as reflected herein with regard to the Services and the assessments. NOW, THEREFORE, BE IT DULY RESOLVED by the Mayor and City Commission of the City of Miami Beach, Florida: Section 1: All findings and recitals contained in this Resolution are hereby adopted and incorporated herein. Resolution No. 94-21163, which ordered the creation of the Lincoln Road Management District No. 1 is hereby confirmed and it is hereby determined that the Services set forth therein be provided to the District. C:\WP51\RESOLUTI\LINCLNRD.SVS ~~~r~ CITY CLERK ATTEST: , 1994. July PASSED AND ADOPTED this 13th Section 2: A final assessment roll shall be promptly filed with the Office of the City Clerk in accordance with this Resolution and the applicable provisions of the Act. Such assessments contained in said final assessment roll are hereby levied and stand confirmed and remain legal, valid and binding special assessment liens upon properties against which such assessments are made, until paid. These assessments shall be recorded in the Improvement Lien Book and the final assessment roll shall show the lots or lands assessed, the amount of benefit as to each such lot or land, and the manner of payment of such assessment. R- 3,- A I-~ DATE AGENDA ITEM This is the culmination of more than two years of extensive open study. debate. and planning with the Uncoln Road Task Force. the City of Miami Beach. Miami Beach Development Corporation. and all other interests in the Uncoln Road area. Over that time more than 200 meetings have been held. attended by more than 3000 people. All meetings were open to the public and most were publicly and/or noticed by mail. Where possible. all owners of record of properties. business owners. and others who asked to be kept informed. have been sent or have had hand-delivered the information bulletinl:) cu&d/or newsletters composed by the Uncoln Road Task Force/Partnership. In the last three months. the City Commission has heard status reports by the Task Force. A Task Force Coordinating Counell meeting was held April 28.1994 and a City Commission workshop was held on May 3. 1994. r 1 BACKGROUND: On May 18, 1994. the City Commission held the first public hearing establishing two special assessment districts. the Uncoln Road Capital Improvements District # 1 and the Uncoln Road Management Services District # 1. At that time the assessment formula. districts' boundaries. services and improvements to be provided. related budgets. and preliminary assessment rolls were established. Since then. the Partnership has continued to meet in groups and individually with rroperty owners and businesses to finallze the information in anticipation 0 the final hearing today, at which time the corrected assessment rolls Will be adopted. In legal compliance with Chapter 170 of the Florida State Statute. the notice of the final hearing and the preliminary assessment rolls were mailed to all property owners of record on June 21. 1994. It is recommended that the City Commission adopt the attached Resolutions which establish the two assessment districts necessary to accomplish the objectives of the Uncoln Road Partnership (formerly the Uncoln Road Task Force) . ADMINISTRATION RECOMMENDATION: SUBJECT: RESOLUTIONS OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ESTABLISHING THE LINCOLN ROAD CAPITAL IMPROVEMENTS DISTRICT .1 AND THE LINCOLN ROAD MANAGEMENT SERVICES DISTRICT' 1 FOR THE CONTINUING REVITAUZATION OF THE LINCOLN ROAD DISTRICT. FROM: Roger M. Car1tQ City Manager DATE: July 13. 1994 Mayor Seymour Gelber and Members of the City Commission TO: TELEPHONE: (305) 673.7010 FAX: (305) 673.77'2 ~q3 q<l COMMISSION MEMORANDUM NO. OFFICE OF THE CITY MANAGER = CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 CITY OF MIAMI BEACH The Uncoln Road Partnership 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 2 Phase II improvements are scheduled to be started In April of 1995. and completed by December 1995. 65% City: Resort Tax 35% Property Owners: Assessment District $780.000 Annual (first year only) Operational Costs: $18.0 million Total Costs: City - Water. Sewer, Storm Water Fees City - Gas Tax 50% City: Resort Tax. other 500A> Property Owners: Assessment District 1.5 million 9.0 million Road Work (off mall) Mall "enhancements" $5.5 million Infrastructure Source LINCOLN ROAD CAPITAL IMPROVEMENr COSTS The Uncoln Road Partnership will be Involved durtng the final design phase and is establishing the mechanism for Input and Influence during this process. 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.(Ezhiblt A) Coordinating these needed improvements with the construction planned for the Road will eliminate the need to dig again for the next thirty 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 Uncoln Road and cross streets.( E%h1blt B) Phase I improvements are Included In this amount as well as all new pavement. signage. pedestrian directories. street funl1ture. refurbishing old and adding some new fountains. more street trees. and paving for cross street areas. etc. Also Included In this budget is money advanced to the Partnership for the planning effort thus far. including staff. planning and design consultants totaling approximately $400,000. The Plan includes physical improvements. both aesthetic enhancement and infrastructure. Phase I improvements have already been completed. which cost under $500.000 and included: removal of defunct and/or extraneous signage. low-Ievellightlng, mismatched fixtures. and the undesirable awning structures In the 400 block of Uncoln Road: planting of trees which will be augmented in Phase II. providing more shade and ambiance to the total distrtct; replacement of masthead and low level lighting fixtures, which will also be augmented during Phase II. A) Physical Improvements: ANAL YSIS~ The Lincoln Road Partnership feels it has facilitated a general consensus among the Lincoln Road community to proceed with the revitalization plan. This plan includes capital improvements to the area and ongoing management services to maintain those improvements and the strengthening economic conditions In "the Road" area. Many proposals and attempts to improve Uncoln 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. In order to make this happen. the commitment of government and the empowerment of the private sector is needed to finally establish two special assessment districts. The following is a review of the process and purpose of the two districts. Again, the assessment formula, which will provide $280.000 the first year, is a blended 3 The district will be managed by the Uncoln Road Partnership lnc.,which has representatives from all interests that make up Uncoln Road. An agreement with the organization, simUar to the Ocean Drive Management Agreement, between the City and the Partnership. will be prepared. By-laws for the organization have been drafted and will be available for review as part of that agreement. The cost for these seIVtces, including administration, is estimated to be $780,000 for the first year. The proposed budget is attached as Exhibit D. As the district is 1n1tiated and programs are established, the budget will be adjusted and approved every year, so that seIVtces may be added or changed and assessments changed accordingly. Other revenue sources w1llinclude 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,OOO/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. In order to maintain the significant physical improvements planned for Uncoln 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 Uncoln Road area. and most speclftcally, improvement of their own property and business interest. The management program will enhance and expand otherwise unavailable services or service levels within the district. Participation and baseline services provided by the City will continue, The City Attorney's Office has determined that subject to Chapter 170, a majority of the property owners must have indicated approval for the formation of a management district. indications are that the required signatures will be certifted an din hand prior to the pubic hearing, 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 Uncoln Road revita1Jzation 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. B1 Mana~ement Services Since the initial adoption of the preliminary assessment rolls. some corrections of measurements and usage have been received and will be read into the record at the Final Hearing and will be reflected in the final assessment rolls prepared upon the approval of the district(s). Other recommendations for consideration regarding equity issues and the assessments will be made to the City Commission at the Final Hearing, These may include the exclusion of the condominium properties at 1698 Jefferson. The Administration also is recommending the reduction of the Alton Road formula from 75% to 50016 of the maximum Uncoln Road assessment rate. After consideration of many methods of assessment, consensus was reached by the Uncoln 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 E. The assessment is based upon information gathered from Dade County, as well as field verification done by thetengineering firms of Bermello Ajamil and Partners, Inc. and Post Buckley Schuh and Jernigan, Inc. 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 Statues Chapter 170. The concept is to provide $4.5 million (plus loan costs) with interest capitalized durtng 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 accomplished by December 1995. %,{- 4 RMC:cmb Attachments The City Commission should adopt the Uncoln Road Assessment District(S) Resolutions after the ftnal public hearing. This is the final step in the first giant leap that the City of Miami Beach and the Uncoln Road Community are taking together to restore and enhance the heritage and secure an even better future for this "World Class Center of Commerce and Culture of Miami Beach". 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 s1m1lar to Ocean Drive. This innovative approach will ensure that this Uncoln Road effort creates long-term success. Uncoln Road is making a dramatic comeback, stimulated by improvement in the South Beach area, but primarily based on the anticipation of an improved business environment that is physically improved and well maintained and marketed, The success of this concept has been proven in other cities across the nation (Exhibit G). Uncoln Road property owners recognize this and have proposed a plan to accomplish that vision. CONCLUSION: 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 Uncoln Road and increased revenue from other sources on Uncoln Road. 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 from the gasoline tax. The balance of the project will be financed from the special assessment and from the Resort Tax Fund. The Uncoln Road Project consists of three components, infrastructure improvements of approximately $5.5 million. construction of the road portions north and south of Uncoln Road at an approximate cost of $1.5 million and the enhancement improvements 50010 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 ioan tied to the tax exempt 30 day rate. This 30 day rate is currently at approximately 4 percent and the loan will have a final maturity of 20 years. Anticipated debt service is $1.5 million annually. formula based upon linear front footage. side footage and a per square foot fee for area above the ground floor. (Ezhlbit F) Assessments for theses purposes will be collected later this year. Unlike the Capital Improvements District No 1, 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 (Exhibit C). FINANCING: