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96-21962 RESO RESOLUTION NO. 96-21962 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA REQUESTING THE BOARD OF COUNTY COMMISSIONERS OF METROPOLITAN DADE COUNTY, FLORIDA TO WAIVE THE COUNTY ROAD IMP ACT FEE AND AMORTIZE OVER A TERM OF 30 YEARS THE PAYMENT OF THE WATER AND SEWER IMPACT FEE, WITH REGARD TO THE PROPOSED LOEWS MIAMI BEACH HOTEL PROJECT. WHEREAS, the City of Miami Beach, Florida (the "City") currently is negotiating with representatives of Loews Corporation for the development and operation of the proposed Loews Miami Beach Hotel; and WHEREAS, the Miami Beach Redevelopment Agency anticipates disbursing approximately $50 million in incentives to facilitate the development of the hotel; and WHEREAS, the proposed hotel will be the first new convention hotel built in Miami Beach in approximately 30 years; and WHEREAS, the proposed hotel is expected to have a significant positive impact on the convention and tourism business of the county as a whole, as well as on numerous related economic factors; and WHEREAS, it is in the best interest of the City as well as Metropolitan Dade County to promote the development of a major convention center hotel in Miami Beach; and WHEREAS, Loews's budget for the hotel project is under pressure due to escalating costs associated with the impact of inflation over the last two years, new and more costly building codes and compliance with historic preservation issues; and WHEREAS, due to the need to effect savings in the development budget for the hotel project, representatives ofthe City and Loews Corporation are requesting that the County waive and amortize certain fees relating to the development of the proposed hotel project; and WHEREAS, a road impact fee in the amount of approximately $610,000 and a water and sewer impact fee in the amount of approximately $357,000 are two of the fees that would be imposed by the County on the Loews Miami Beach Hotel project; and WHEREAS, the waiver of the County road impact fee and the amortization over a term of 30 years of the payment of the County water and sewer impact fee will facilitate the development and construction of the Loews Miami Beach Hotel. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA that: 1. The City hereby respectfully requests that the Board of County Commissioners of Metropolitan Dade County waive the County road impact fee and amortize over a term of 30 years the payment of the County water and sewer impact fee, with regard to the proposed Loews Miami Beach Hotel project. 2. This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED this 17th ATTEST: Ro~~ fiA^~ CITY CLERK FORM APPROVED LEGAL NPT By 4f Hit it-:: Date ~//// q G AIT\kw f\atto\taca\resos\dadewaiv.fee 2 CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 COMMISSION MEMORANDUM NO. ~ 3-g (.. TO: Mayor Seymour Gelber and Memben of the City Commission DATE: April 17, 1996 FROM: Jose Garcia_pedro,/! City Manager A RESOLUTIO OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, REQUESTING THE BOARD OF COUNTY COMMISSIONERS OF METROPOLITAN DADE COUNTY TO WAIVE THE COUNTY ROAD IMP ACT FEE, AND TO AMORTIZE THE THE COST OF THE WATER AND SEWER IMPACT FEES RELATED TO THE LOEWS MIAMI BEACH PROJECT, FOR AN AGREED-UPON TERM. SUBJECT: ADMINISTRATION RECOMMENDATION: The City Commission should request a waiver of the Metro Dade County Road Impact fee and the amortization of the cost of the Dade County Water and Sewer Impact fee for the Loews St. Moritz Hotel Project for an agreed-upon term. BACKGROUND: On March 13, 1996, a meeting was held between Metro-Dade County Commissioner, Arthur Teele, Mayor Seymour Gelber, Jonathan Tisch and Jack Adler of Loews Hotels, Michael Meyer of Tishman Hotel Corporation and Luis Reiter of Squire, Sanders and Dempsey. The purpose of the meeting was to discuss the possibility of waiving the Metro Dade County road impact fee and the water and sewer impact fee for the Loews St. Mortiz Hotel Project. Commissioner Teele requested that the City of Miami Beach pass a resolution requesting the waiver of the road impact fee and the amortization of the water and sewer impact fee from the Board of County Commissioners. ANALYSIS As negotiations are progressing towards a development agreement, Loews's budget for the hotel project is under pressure due to escalating costs associated with the impact of inflation over the last two years, new and more costly building codes and compliance with historic preservation issues. In order to prevent potential overspends, which will adversely impact the City's financial position under the lease, certain measures need to be taken including but not limited to waiving the County's road impact fee and amortizing the cost of the water and sewer impact fees over a 3D-year period. Collectively, the fees amount to approximately $1 million. These fees. are as follow: AGENDA ITEM~ DATE '--l:Jl-qt:, Type of Fee: Road Impact fee Water & Sewer Impact fee Total County fees: Manner of Assessment: $1,042/room 100 gallons/day X Number of rooms X $5.44 Cost to Project: $ 610,000 357.000 $ 967,000 Note: Both fee structures aI/ow credit for pre-existing rooms. CONCLUSION Passage of this resolution will provide Commissioner Teele with a basis for recommending a waiver of the County's fees before the Board of County Commissioners. This action is necessary in order help prevent overspends in the budget. JGP/HM:kob Attachments