Loading...
HomeMy WebLinkAboutSEOPW-CRA-M-01-0014DRAFT FINANCIAL IMPACT OF STADIUM PROPOSALS COMMUNITY REDEVELOPMENT A G E N C Y TAX INCREMENT REVENUES record in c ��, aa Wator Fooman SEOPW j CRA Q 1 _ 14 City Clerk off►C"- 0 - 0 ESTMENT SERVICES STMENT BANKING Submitted ed is to !',le pub!]c rocord in c✓r ;a r ,;; ,' ,n �N'ith item �cL on a.%1", A CYZ4 Waiter Foeman City Clerk SEOPW/CRA. OMNI/ A 0 1— 07 Dain Rauscher Incorporated TABLE OF CONTENTS SECTIONI................................................................................................................................... I Introduction................................................................:................................................................. I Purposeof Study.......................................................................................................................... I Descriptionof the CRA................................................................................................................ I SEOPWBoundaries.....................................................................................................................I StudyScope and Methods............................................................................................................ I Historical Tax Increment Revenue............................................................................................... I SECTIONII..................................................................................................................................3 Variations of Proposed Baseball Stadium....................................................................................3 Proposal A — Biscayne Boulevard West.................................................................................. 3 Opportunity to Increase the Tax Increment Revenues - Proposal A........................................4 Proposal B — Biscayne Boulevard East....................................................................................5 Opportunity to Increase the Tax Increment Generation - Proposal B......................................5 Proposal C — Miami Arena East...............................................................................................6 Proposal D — Miami Arena West.............................................................................................6 Summary..................................................................................................................................8 SECTIONIII......................................:.........................................................................................9 EconomicGrowth........................................................................................................................9 Review of Economic Forecasts....................................................................................................9 Projected Growth in Overall Assessment Value........................................................................10 SECTIONIV..............................................................................................................................24 DebtObligations........................................................................................................................24 Sularni od into €IP- Public record in conn( ut 3n mith item oricgLlec-119-1_ Cnc, Walter Foeman, _ 1 City Clerk SE®PVV/CRA. Oiw/CiA, O 1- 07 .. Sutmitted into the pcb'.ec rceer in connection with items � �_ Cn ?k �J'-Jo Cm Wa4►er Foeman City Clerk sEOPwicxA' 0 1 — 14 Dain Rauscher Incorporated OmNu/cxA, 01— 07 DRAFT - 2/26/01 e FINANCIAL IMPACT OF BASEBALL STADIUM PROPOSALS ON CITY OF MIAMI COMMUNITY REDEVELOPMENT AGENCY TAX INCREMENT REVENUES SECTION I INTRODUCTION The Florida Marlins announced they would lose $152 million by 2004 if they cannot build a new ballpark in downtown Miami. The Marlins claim that a major contributor to this loss is the escalating players' salaries and 19 players becoming eligible for salary arbitration next year. In an effort to maintain the major league baseball team in Miami -Dade County, and specifically in the City of Miami, several proposals have been presented for a major league baseball stadium in the downtown Miami area. PURPOSE OF STUDY The Community Redevelopment Agency's (the "CRA") primary source of revenue is tax increment funds. The purpose of this study is to develop a report that focuses on the financial impact of the proposed designs for a major league baseball stadium on the CRA's tax increment revenue. The design of this 40,000 seat stadium calls for a retractable roof, with club seats and luxury suites in the downtown Miami area. DESCRIPTION OF THE CRA The CRA is comprised of the City of Miami Omni Redevelopment Agency (the "Omni Area") and the City of Miami Southeast Overtown Park West Redevelopment Agency (the "SEOPW"). These agencies were established in 1986 and 1983, respectively, by the City of Miami, Florida (the "City") under the provisions of Section 163.330, Florida Statutes. The City entered into Interlocal Cooperation Agreements and related ordinances of the City and County whereby tax increment revenue collected by the parties would be paid to the CRA and used in accordance with the approved budgets of the redevelopment plans and terms and conditions of the Interlocal Agreements for the benefit of the respective areas. SEOPW BOUNDARIES The SEOPW encompasses the area generally bounded by Biscayne Blvd. on the East; I-95 on the West; I-395 on the North; and Northwest 5t' Street on the South. STUDY SCOPE AND METHODS This analysis was largely built upon the data and knowledge gained from recent meetings with the CRA, the City of Miami, the Miami -Dade County Office of Community and Economic Development, the Downtown Development Authority and other agencies intimately familiar with the areas. HISTORICAL TAX INCREMENT REVENUE The Tax Increment Revenue is computed by applying the operating tax rate for the City and the County, multiplied by the increased value of property located within the boundaries of the redevelopment areas of the CRA, over the Base Property Value, minus 5 percent. Both the City and the County are required to fund this amount annually without regard to tax collections or other obligations. 4' SEOPw/ Submitted etc tine pulp �c record, j connection, ` ith ite'� _ — cry -� lU L C nG T,uty r Faemarf ONNICMiw ®� '- Clerk • 0 DRAFT - 2/26/01 The assessed values in 1982 for the SEOPW were $78,305,502. This amount is considered as the Base Property Value. The assessed values had increased to $117,646,024 in 1999. On June 30, 2000 the Miami -Dade County Property Appraiser's office released the 2000 Tax Roll. The Southeast Overtown/Park West Tax Increment District had a taxable value of $145,489,471. This represents a 24% increase over the 1999 assessed values. During the 2000 calendar year, several parcels located on the Biscayne Boulevard (the "Boulevard") frontage were purchased for amounts ranging from $150 /sq. ft. to $175 / sq. ft. The most recent sales during the 2001 calendar year have had purchase prices of $200 / sq. ft. These new sales will further increase the assessed values of the properties located in SEOPW. sutra tte d into the public record in connection with item I on Caq Wa qer Foeman City Clerk sEOPW�... ®./ 0 1 — U It 2 sEoPw/C RA Submitted into the public record in connection with item 4 on .2L- 0 /a i Walter Foeman City Clerk 14 01- 47 �MNI�C" Dain Rauscher Incorporated N DRAFT - 2/26/01 SECTION II VARIATIONS OF PROPOSED BASEBALL STADIUM Four of the proposed sites are located within the CRA. Two of the proposals for the development of the envisioned major-league baseball stadium involve the use of the CRA's properties fronting ' the Boulevard. These properties are the most profitable for the CRA amounting to over 50% of the SEOPW's Tax Increment Revenues. These proposals also involve the relocation of a portion of the Boulevard. Proposal A suggests relocating the Boulevard west and Proposal B suggests relocating the Boulevard east. The relocation of the Boulevard may additionally affect the CRA by moving with it the legally defined boundaries of the SEOPW District. ' The other two proposals, Proposal C — Miami Arena East and Proposal D — Miami Arena West, offer for the development of the baseball stadium further west within the CRA boundaries. Although the properties that these proposals would be eliminating from the SEOPW's Tax Roll ' are not as lucrative as the ones located on the Boulevard frontage, these properties represent approximately 15% of the SEOPW's Tax Increment Revenues. Proposal A — Biscayne Boulevard West This proposal suggests relocating the Boulevard west one block to Northeast 2"d Avenue creating 13 extra acres for the development of the baseball stadium. This realignment of the Boulevard suggests removing private lands from the tax rolls for the development of a public ballpark. The properties affected are those located from I-395 south to the Freedom Tower and Biscayne Boulevard west to Northeast Second Avenue. The assessed value of these parcels totals $35,154,368 considering an average assessment value of $103 /sq. ft. Should this proposal move forward, the realignment of the Boulevard alone, not taking into consideration recent land purchases and assuming unchanged assessed values, would reduce the existing tax increment revenues of the SEOPW by an amount ranging from $422,423 to $492,467 representing a loss of 45% to 52% of the CRA's tax increment revenue. Scenario 1: All property Excluded Assuntption,s: 1) Not taking into consideration recent land purchases that would increase the assessed value of the land 2) Unchanged assessed values since FY 1999-2000 Tax Roll Reduction of Tax Roll Base Property Value Increased Property Value CRA's Tax Base Millage Rate Tax Increment Revenue % Change 145,489,4711 $ 145,489,471 (35,154,368) 67,183,969 95% 63,824,771 32,029,601 30,428,121 (492,467) Submili ed into the pubic record in cone iic�with� � item Li— on 0 q er Foeman HOPW/'D&� , � � `* oWa/CRA 01- 6 City Clerk 0 DRAFT - 2/26/01 Although there may be several years during the development of the baseball stadium during which the parcels currently occupied by Howard Johnson's would be off the tax rolls, below is an analysis that assumes this land would be available for redevelopment and not be removed from the tax rolls. Scenario II. Howard Johnson Included Additional Assumptions: 1) Parcels currently occupied by Howard ,Johnson's would be available for redevelopment and on the tax rolls Tax Roll $ 145,489,471 $ 145,489,471 Reduction of Tax Roll (30,154,368) Base Property Value (78,305, 02) (78,305,502) Increased Property Value $ 67,183,969 $ 37,029,601 95% 95% CRA's Tax Base 63,824,771 35,178,121 Millage Rate 0.014746 0.014746 Tax Increment Revenue 941,160 518.737 (422,423) % Change -45% Howard Johnson Lot Available for Development valued at $103/sq.ft. Opportunity to Increase the Tax Increment Revenues - Proposal A The development of the Howard Johnson Lot under Proposal A, although it may be off the tax roll during the stadium construction, if further developed, may create future assessed property value increases. This analysis portrays the increment to the value of the Howard Johnson Lot above the current assessed value of $103 /sq. ft. This development opportunity may be worth between $2,251,159 and $4,646,009, which would translate into a $31,536 to $65,085 Tax Increment Revenue increase for the CRA. Development Options for Howard Johnson Lot Submitt-*d into the public record in co:;�nac1 "With on t C�'r4 item Walter Foeman City Clerk SEOPW/C", 01- 14 /c,�, 01— 07 1 4 0 DRAFT - 2/26/01 Proposal B — Biscayne Boulevard East This proposal suggests relocating the Boulevard east, allowing 12 acres for the development of the baseball stadium. This realignment of the Boulevard suggests removing a limited number of private lands from the tax rolls for the development of a public ballpark. The properties affected are those located from I-395 south to Northeast 10t" street and a few parcels of block 21. This proposal however does propose adding depth to the blocks south of Northeast 8"' street and creating a unified 5-Acre Development Site, which will be more lucrative and increase significantly the land's current value, which will increase the tax increment generation. The assessed value of the parcels being removed from the current tax rolls under Proposal B total $10,574,477. Should this proposal move forward, the realignment of the Boulevard alone, not taking into consideration recent land purchases and assuming unchanged assessed values, would reduce the existing tax increment revenues of the SEOPW by an amount of $148,135 representing a loss of 16% of the CRA's tax increment revenue. Assumptions: 1) Not taking into consideration recent land purchases that would increase the assessed value of the land 2) Unchanged assessed values since FY 1999-2000 Tax Roll Reduction of Tax Roll Base Property Value Increased Property Value $ 145,489,471 (78.305.502) $ 145,489,471 (10,574,477) (78,305,502) $ 67,183,969 $ 56,609,492 95% 95% CRA's Tax Base 63,824,771 53,779,017 Millage Rate 0.014746 0.014746 Tax Increment Revenue 941-160 793 025 (148,135) % Change -16% Opportunity to Increase the Tax Increment Generation - Proposal B Proposal B provides for the consolidation of 5 Acres lying immediately south of the proposed stadium lending itself to be developed into an entertainment complex with restaurants, theatres, shops, etc. The consolidation of these acres provides for greater development opportunity of these properties, by providing additional depth for expanded construction with the realignment of the Boulevard further east. The added assessment value of this site could increase the CRA's tax increment revenue anywhere between $148,603 and $306,691 assuming current real estate prices according to the most recent sales in the area. Please refer to Section III of this report for�<r increased Price / Sq. Ft. Analysis. c� Development Options for 5 Acre Development Site within 1, jCO Tax Increment Redevelopment Blocks Sq. Ft. Price I Sq. Ft. Incremental CRA TaxG i Q/ ILL Z' (5 Acres) Price I Sq. Ft. Increment Assessed Value Increment Ea� U 225,700 $ 150 $ 47 $ 10,607,900 $ 148,603 p r- 0 > 225,700 $ 175 $ 72 $ 16,250,400 $ 227,647 225,700 $ 200 $ 97 $ '31,892,900 $ 306,691 r= M SEOPW/CRA. U 1" :1 4 omwcm UT 07 DRAFT - 2/26/01 Proposal C — Miami Arena Fast ' This proposal suggests that the baseball stadium to be located in the Miami Arena East area bounded by Northeast I" Avenue on the East; Northwest I" Avenue on the West; Northeast 8`s Street on the North and Northeast 6t' Street on the South. This location suggests removing a limited number of private lands from the tax rolls for the development of a public ballpark. This proposal does not allow for the further development of the areas surrounding the ballpark. The assessed value of the parcels being removed from the current tax rolls under Proposal C total ' $9,901,990. Should this proposal move forward, not taking into consideration recent land purchases and assuming unchanged assessed values, would reduce the existing tax increment revenues of the ' SEOPW by an amount of $138,714 representing a loss of 15% of the CRA's tax increment revenue. tProposal C - Arena East FY 0i02000-01 Impact Tax Roll $ 145,489,471 $ 145,489,471 ' Reduction of Tax Roll (9,901,990) Base Property Value (78,305,502) (78,305,502) Increased Property Value $ 67,183,969 $ 57,281,979 ' 95% 95% CRA's Tax Base 63,824,771 54,417,880 Millage Rate 0.014746 0.014746 Tax Increment Revenue 941.160 802 446 (138,714) ' % Change -15% Proposal D —Miami Arena West This proposal suggests that the baseball stadium to be located in the Miami Arena West area bounded by Northwest 0 Avenue on the East; I-95 on the West; Northwest 8t' Street on the North and Northwest 6t1' Street on the South. This location suggests removing a limited number of private lands from the tax rolls for the development of a public ballpark. This proposal does not allow for the further development of the areas surrounding the ballpark. The assessed value of the parcels being removed from the current tax rolls under Proposal C total $9,126,990. Should this proposal move forward, not taking into consideration recent land purchases and ' assuming unchanged assessed values, would reduce the existing tax increment revenues of the SEOPW by an amount of $127,857 representing a loss of 14% of the CRA's tax increment revenue. ' Proposal D - Arena West Proposal . TIR C W CU FY 000000-01 Impact E Tax Roll $ 145,489,471 $ 145,489,471 fl- C: C U ' Reduction of Tax Roll $ (9,126,990) Base Property Value (78,305,502) (78,305,502) Increased Property Value $ 67,183,969 $ 58,056,979 A r: c 1- 0 cd ' 95% 95% C> CRA's Tax Base 63,824,771 55,154,130 Millage Rate .00 14746 0.01474 ' Tax Increment Revenue 941,160 813 303 (127,857) 7 is %Change -14°i° � SEOP WIC►: 01- 14 �� 01_-- 07 6 0 DRAFT- 2/26/111 Opportunity to Increase the Tax Increment Generation - Proposals C and D Proposals C and D allow the properties fronting the Boulevard to remain on the tax roll and available for further development. These properties are the best candidates for development opportunities in the SEOPW and have experienced and average sales value increase of 15% over the past two years without further development. During the 2000 calendar year, several lots on the Boulevard frontage were purchased for amounts ranging from $150 /sq. ft. to $175 / sq. ft. The most recent sales price during the 2001 calendar year was $200 / sq. ft. The Boulevard frontage properties are the most profitable for the CRA amounting to over 50% of the SEOPW's Tax Assessments. These recent sales will further boost the assessed values of the properties from their current assessed values of $103 / sq. ft. The added assessment value of these blocks could increase the CRA's tax increment revenue anywhere between $222,837 and $459,897 assuming current real estate prices according to the most recent sales in the area. Please refer to Section III of this report for increased Price / Sq. Ft. Analysis assuming a continuing 15% growth through 2005. 1 s'00Yw 1 CSA- 01 Development Growth Opportunities for Boulevard Frontage Lots North of NE 7th Street Blocks 41, 40, 21, 21 & 1 Sq. Ft. Price/ Sq. Ft. Incremental CRA Tax of Blocks Price/ Sq. Ft. increment Assessed Value Increment 338,447 $ 150 $ 47 $ 15,907,009 $ 222,837 338,447 $ 175 $ 72 $ 24,368,184 $ 341,367 338,447 $ 200 $ 97 $ 32,829,359 $ 459,897 Su,' ifted into the rcCord in public fry, - ony Wafter Foeman 14 OMmxm,, 0 1 " 0 7 city Oleic 0 DRAFT - 2/26/01 Summary The placement of the Baseball Stadium is crucial to the CRA. It is very important for the expansion and development of this area to consider the CRA's Tax Increment Revenues in order for it to prosper and profit from its economic expansion. A Baseball Stadium development located on sites that hinder the SEOPW from further development and economic expansion could destroy the possibilities of the revitalization of the area. Summary of Tax Increment Revenue ax Increment $ Revenue Decrease ax Increment % Revenue Decrease limal Development Option Offset Net Tax Increment $ Increase/Di based on Current Prooerty Sales $ (492,467) $ (422,423) ( $ (148,135) $ (138,714) I $ (127,857) 52% -45% -16% -15% -140/ oa.uoo ouo.oa i 40J.0ul 47J.8J/ $ (492,467) $ (357,339) $ 158,556 $ 321,183 $ 332,039 ` public rCCord it CGslneon vvith hem on Waiter Foeman City Clerk 14 ohm/cam, 0 1 — 0 8 seopwi01-4 0 1 - CY) Subf-14tted into the Public record item Walter Foeman City Clerk 1-4 .,:ea/cpk 0 1 - 07 Dain Rauscher Incorporated 4' DRAFT - 2/26/01 SECTION III ECONOMIC GROWTH An evaluation of economic conditions that would affect the SEOPW and a review of published information regarding economic development in the area was performed to understand historical growth in key economic variables in SEOPW (i.e., assessed values and assessed growth rate). Several meetings were also conducted with individuals and agencies knowledgeable about the development patterns in the area. The Park Site can deliver the necessary synergy with other entertainment and cultural destinations that is critical to a successful project. "Clustering" of destinations in and around the Park insures that the public derives the maximum benefit from infrastructure expenditures and entrepreneurial initiatives, both public and private. Additionally these developments will enhance the flow of pedestrians to the Omni Redevelopment Area including the Performing Arts Center. REVIEW OF ECONOMIC FORECASTS The CRA `s Redevelopment Area has experienced exponential growth in its tax value and land appraisal values in recent times. The property bordering on the Boulevard which was assessed at an average of $103 / sq. ft. for the year 1999 will probably be assessed at nearly double that rate due to recent land purchases. The latest sale, scheduled to close the second week of February 2001, has a purchase price of $190.55 / sq. ft. The placement of a stadium in or near Bicentennial Park, bordering on the SEOPW Redevelopment Area, will create an economic expansion of the commercial and residential properties in the surrounding area. This will in turn increase property values due to the influx of visitors, both residents and tourists, being drawn to this area for the ball games, art museums, park areas and Biscayne Bay views. The close location of the Performing Arts Center to the proposed Stadium will create a synergy attracting people who will park or ride the People Mover, stay to eat and purchase goods being sold in the vicinity. Subf-witted "'to the Pub9ic rOcOrd in cenn0ACV,en with item -�-� on 2_ -� mac, C Wafter Foeman City Clerk sEom/cR4, 01- 14 O /M; 01- 07 9 Projected Growth in Overall Assessment Value Overall Assessment Value is increased by 10% thru 2005 and 3% thereafter Biscayne Blvd. frontage properties (A and B only) is increased by 25% thru 2005 and 5% thereafter SEOPW/CRAB 41to ice public record iF, ccn v �z,on with 14 item rt _L 1 <ez!22LO (�& cIMNI/CRA,� 01— fi Fier Foeman City Clerk 10 • • Projected Growth in Overall Assessment Value Overall Assessment Value is increased by 10% thru 2005 and 3% thereafter Biscayne Blvd. frontage properties (A and B only) is increased by 25% thru 2005 and 5% thereafter Sub"n' "led into the public nc�i n with in ccn SEOPW/A�,, ` i CMN/CRCQ tem 1� on � 07 Walter Foeman City Clerk 21 Projected Growth in Overall Assessment Value Overall Assessment Value is increased by 10% thru 2005 and 3% thereafter Biscayne Blvd. frontage properties (A and B only) is increased by 25% thru 2005 and 5% thereafter i 1y0 Chum public record in city n with 01- 14 itOM 9 _ on 2ZI-C, 1-004 -,F.OPW ! CR9 Walter Foeman City Cleric 01- 01 ONM/CRA, Projected Growth in Overall Assessment Value Overall Assessment Value is increased by 10% thru 2005 and 3% thereafter Biscayne Blvd. frontage properties (A and B only) is increased by 25% thru 2005 and 5% thereafter ' SEOPW I C RAI SubmItt,;-d into the public (,A� rocoItQ'f'rl rd in Coth nnection //a ���t���n � ll GA li ��/y/ Wafter Foematt ON1� Projected Growth in Overall Assessment Value Overall Assessment Value is increased by 10% thru 2005 and 3% thereafter Biscayne Blvd. frontage properties (A and B only) is increased by 25% thru 2005 and 5% thereafter P� 0)!ic rocord in c�:n�- ° on veith item on sEoMMI; Walter Foeman City Clerk 1- f ,007 1 1 1 1 1 1 1 1 1 1 1 Projected Growth in Overall Assessment Value Overall Assessment Value is increased by 10% thru 2005 and 3% thereafter Biscayne Blvd. frontage properties (A and B only) is increased by 25% thru 2005 and 5% thereafter Submitted into the public record In ccnnectio/n�//with I110M _ 15 on �� 15 OPyV/Q 0 �_ — 14 Wafter Foeman oNgiilC�,� � � — � 7 Citv Clerk 40 • Projected Growth in Overall Assessment Value Overall Assessment Value is increased by 10% thru 2005 and 3% thereafter Biscayne Blvd. frontage properties (A and B only) is increased by 25% thru 2005 and 5% thereafter Proposal A - Scenario I Bisc. Blvd. West Tax Roll $ 331,864,407 $ 331,864.407 $ 341,820,339 $ 341,820,339 $ 352.074,949 $ 352,074,949 Reduction of Tax Roll (178,426,285) (187,347,599) (196,714,979) Base Property Value (78,305,502) (78,305,502) (78,305,502) (78,305,502) (78,305,502) (78,305,502) $ 253,558,905 $ 75,132,620 $ 263,514,837 $ 76,167,238 $ 273,769,447 $ 77,054,468 Increased Property Value 95% 95% 95% 95% 95% 95% CRA's Tax Base 240,880,960 71,375,989 250,339,095 72,358,876 260,080,975 73,201,745 Millage Rate 0 014746 0.01474 0 014746 0 014746 1 0 014746 0, 11474� Tax Increment Revenue 3,552,031 1.052,510 199,520) 3,691,500 1,067,004 3,835,154 1,079,433 755.721) L Change ;'0^�. -721 Proposal A - Scenario II Bisc. Blvd. West $ 331,864,407 (78,305,502) $ 331,864,407 (153,048,744) (78,305,502) $ 341,820,339 (78,305,502) i $ 341,820,339 (160,701,181) (78,305,502) $ 352,074,949 (78,305,502) $ 352,074,949 (168,736,240) (78,305,502) Tax Roll Reduction of Tax Roll Base Property Value Increased Property Value CRA's Tax Base Millage Rate Tax Increment Revenue Change $ 253,558,905 95% 240,880,960 0 0147460 3,552,031 $ 100,510,161 95% 95,484,653 014746 1,408,017 $ 263,514,837 95% 250,339,095 3,691,500 $ 102,813,656 95% 97,672,974 0.0147460 1,440,286 $ 273,769,447 95% 260,080,975 0147460 3,835,154 $ 105,033,208 95% 99,781,547 014746 1,471,379 Proposal Proposal = TIR Bisc. Blvd. East $ 331,864,407 $ 331,864,407 r2021-22 $ 341,820,339 $ 341,820,339 $ 352,074,949 $ 352,074,949 Impact__ Tax Roll Reduction of Tax Roll (53,670,845) (56,354,388) (59,172,107) Base Property Value (78,305,502) (78,305,502) (78,305,502) (78,305,502) (78,305,502) (78,305,502) $ 253,558,905 Increased Property Value $ 199,888,060 $ 263,514,837 $ 207,160,450 $ 273,769,447 $ 214,597,340 95% 95% 95% 95% 95% 95% CRA's Tax Base 240,880,960 189,893,657 250,339,095 196,802,427 260,080,975 203,867,473 Millage Rate 0,014746 0.01474 0.014746 0.0147460 0147460 014746 Tax Increment Revenue 3,552,031 2,800,172 (751,859) 3,691,500 2,902,049 (789,452) 3,835,154 3,006,230 Change -21 % -21 ^� Proposal C - Arena East r Proposal C TIR ProposaIC TIR r Proposal - Tax Roll $ 331,864,407 r r $ 331,864,407 $ 341,820,339 $ 341,820,339 $ 352,074,949 $ 352,074,949 Reduction of Tax Roll (22,586,638) (23,264,237) (23.962,164) Base Property Value (78,305,502) (78,305,502) (78,305,502) (78,305,502) (78,305,502) (78,305,502) $ 253,558,905 $ 273,769,447 Increased Property Value $ 230,972,267 $ 263,514,837 $ 240,250.600 $ 249,807,283 95% 95% 95% 95% 95% 95% CRA's Tax Base 240,880,960 219,423,653 250,339,095 228,238,070 260,080,975 237,316,919 Millage Rate 0 014746 . 1474 1474 1474 4740 014746 Tax Increment Revenue 3,552,031 3,235,621 .A16.409) 3,6901,500 3,365,599 3,835,154 3,499,475 Change -9! Proposal D - Arena West Proposal 0 TIR Proposal . TIR Proposal . Tax Roll $ 331,864,407 $ 331,864,407 $ 341,820,339 $ 341,820,339 r $ 352,074,949 $ 352,074,949 Reduction of Tax Roll (20,818,848) (21,443,413) (22,086,715) Base Property Value (78,305,502) (78,305,502) (78,305,502} (78,305,502) (78,305,502) (78,305,502) $ 253,558,905 $ 232,740,057 $ 263,514,837 $ 242,071,424 $ 273,769,447 $ 251,682,732 Increased Property Value 95% 95% 95% 95% 95% 95% CRA's Tax Base 240,880,960 221,103,054 250,339,095 229,967.853 260,080,975 239,098,595 Millage Rate 0 014746 0.0147460 01474� 14740 0147460 014746 Tax Increment Revenue 3,552,031 3,260,386 (211.645) 3,691,500 3,391,106 3,835,154 3,525,748 Change -8°j record in co. iD n - " SEOPWICRAB Rem on QG a I GI2E Waiter Foeman City Clerk © /CRA)" Q 1 ` '0 0 i Projected Growth in Overall Assessment Value Overall Assessment Value is increased by 10% thru 2005 and 3% thereafter Biscayne Blvd. frontage properties (A and B only) is increased by 25% thru 2005 and 5% thereafter Proposal D - Arena West Tax Roll Reduction of Tax Roll Base Property Value Increased Property Value CRA's Tax Base Millage Rate Tax Increment Revenue SEOPW/CRA $ 362,637.198 $ 362,637,198 $ 373.516,314 $ 373,516,314 $ 384,721,803 $ 384,721,803 (22,749,317) (23,431,796) (24,134,750) (78,305,502) (78,305,502) (78,305,502) (78,305,502) (78,305,502) (78,305,502) $ 284.331,696 $ 261,582,379 $ 295,210,812 $ 271,779,015 $ 306,416,301 $ 282,281,551 95 % 95 % 95 % 95 % 95 % 95 % 270,115,111 248,503,260 280,450,271 258,190,065 291,095,486 268,167,473 0.014746 0,014746 1 7 0,014746 0,014746 0,014746 3,983,117 3,664,429 (318,6881 4,135,520 3,807,271 (328,249)1 4,292,494 1 3,954,398 (aim o9h) -8. record c�.inec -, n V iii 1 L_ a v1 C2G ite(n on 0 1 - 14 Walter Foeman 01— 17 07 City Clerk ,,)NA+iI I CRA,,� 1 1 1 1 1 i to Projected Growth in Overall Assessment Value Overall Assessment Value is increased by 10% thru 2005 and 3% thereafter Biscayne Blvd. frontage properties (A and B only) is increased by 25% thru 2005 and 5% thereafter Proposal A - Scenario I Proposal A TIR Bisc. Blvd. West $ 396,263,457 - r i Tax Roll $ 396,263,457 $ 408.151,361 $ 408,151,361 $ 420,395,902 $ 420,395,902 Reduction of Tax Roll (239,108,286) (251,063,701) (263,616,886) Base Property Value (78,305,502) (78,305,502) (78,305 502) (78,305,502) (78,305,502) (78,305,502) $ 317,957,955 $ 78,849,669 $ 329,845,859 $ 78,782,158 $ 342,090,400 $ 78,473,514 Increased Property Value 95% 95% 95% 95% 95% 95% CRA's Tax Base 302.060,057 74,907,185 313,353,566 74,843,050 324,985,880 74,549,838 Millage Rate 0.0147460 0147460 0147460 0147460 0147460 014746 Tax Increment Revenue 4,454,178 1,104,581 4,620,712 1,103,636 4,792,242 1,099,312 Change Proposal C - Arena East $ 396,263,457 $ 396,263,457 $ 408,151,361 r $ 408,151,361 $ 420,395,902 $ 420,395.902 Tax Roll Reduction of Tax Roll (26,969,627) (27,778,716) (28,612,077) Base Property Value (78,305 502) (78,305,502) (78 305 502) (78,305,502) (78,305,502) (78,305,502) $ 317,957,955 $ 290,988,328 $ 329,845,859 $ 302,067,143 $ 342,090,400 $ 313,478,322 Increased Property Value 95% 95% 95% 95% 95% 95% CRA's Tax Base 302,060,057 276,438,912 313,353,566 286,963,786 324,985,880 297,804,406 Millage Rate 0 0147460 0147460 014746 0,0147460 014746 0.014746 Tax Increment Revenue 4,454,178 4,076,368 4,620,712 4,231,568 '189.1r1- 4,792,242 4,391,424 Change Proposal D - Arena West $ 396,263,457 Tax Roll $ 396,263,457 $ 408.151,361 $ 408,151,361 $ 420,395,902 $ 420,395,902 Reduction of Tax Roll (24,858,793) (25,604,557) (26,372,693) Base Property Value (78,305,502) (78,305,502) (78,305,502) (78,305,502) (78,305,502) (78,305,502) $ 317,957,955 $ 293,099,162 $ 329,845,859 $ 304,241,302 $ 342.090.400 $ 315,717,706 Increased Property Value 95% 95% 95% 95% 95% 95% CRA's Tax Base 302,060,057 278,444,204 313,353,566 289,029,237 324,985,880 299,931,821 Millage Rate 14740 0147460 014746 1474 14740 014746 Tax Increment Revenue 4,454,178 4,105,938 4,620,712 4,262,025 4,792,242 4,422,795 Change SIB r-,ed t "?' 0 ta3� ¢ uNic fti �a"nv roeord in with 0 1 -- 14 item on iIL-2-6- & c(4 Q 1-- 0 7 +EOPW/CRAB Wafer Foeman ON"1�, City Clerk 1 1 1 1 1 1 1 1 1 1 1 1 0 0 Projected Growth in Overall Assessment Value Overall Assessment Value is increased by 10% thru 2005 and 3% thereafter Biscayne Blvd. frontage properties (A and B only) is increased by 25% thru 2005 and 5% thereafter Proposal D - Arena West Tax Roll Reduction of Tax Roll Base Property Value Increased Property Value -RA's Tax Base Millage Rate Tax Increment Revenue $ 433,007,779 (78,305,502) $ 433,007,779 (27,163,874) (78,305,502) $ 445,998,012 (78,305,502) $ 445,998,012 (27,978,790) (78,305,502) $ 459.377.953 (78,305,502) $ 459,377,953 (28,818,154) (78,305,502) $ 354,702,277 $ 327,538,403 $ 367,692,510 $ 339.713,720 $ 381,072,451 $ 352,254,297 95% 95% 95% 95 % 95% 95 336,967,163 311,161,483 349,307,885 322,728,034 362,018,828 334,641,582 0.014746 0,014746 10.014746 0,014746 0.014746 0,014746 4,968,918 4,588,387 (380,531) -8 5,150,894 4,758,948 (391,946) 5,338,330 4,934,625 003 %0" 8 Subm. € b r record icoa r, mi on 01— 017 14 � —� Waiter Foeman City Clerk ONM/CRAI 0 Projected Growth in Overall Assessment Value Overall Assessment Value is increased by 10% thru 2005 and 3% thereafter Biscayne Blvd. frontage properties (A and B only) is increased by 25% thru 2005 and 5% thereafter Proposal A - Scenario I Bisc. Blvd. West Tax Roll Reduction of Tax Roll Base Property Value Increased Property Value CRA'sTax Base Millage Rate Tax Increment Revenue Change $ 473,159,291 (78,305,502) $ 394,853,789 95% 375,111,100 5,531,388 $ 473,159,291 (320,427,972) (78,305,502) $ 74,425,817 95% 70,704,526 0 1,042,609 $ 487,354,070 (78,305,502) $ 409,048,568 95% 388,596,139 0.0147461 014746 5,730,239 $ 487,354,070 (336,449,371) (78,305,502) $ 72,599,197 95% 68,969,237 1474 1,017,020 $ 501,974,692 (78,305,502) $ 423,669,190 95% 402,485,730 14740 5,935,055 $ 501,974,692 (353,271,839) (78,305,502) $ 70,397,350 95% 66,877,483 014746 986,175 4.948,879) .83% Proposal A - Scenario II Proposal A - TIR Proposal- Proposal A TI- Bisc. Blvd. West ,c Tax Roll $ 473,159,291 $ 473,159,291 $ 487,354,070 $ 487,354,070 $ 501.974.692 $ 501,974,692 Reduction of Tax Roll (274,853,554) (288,596,232) (303,026,044) Base Property Value (78,305,502) (78,305,502) (78,305,502) (78,305,502) (78,305,502) (78,305,502) Increased Property Value $ 394,853,789 $ 120,000,235 $ 409.048,568 $ 120,452,336 $ 423,669,190 $ 120,643,146 95% 95% 95% 95% 95% 95% CRA's Tax Base 375,111,100 114,000,223 388,596,139 114,429,719 402,485,730 114,610,989 Millage Rate 14740 0147460 0147460 0147460 0147460 014746 Tax Increment Revenue 5,531,388 1,681,047 5,730,239 1,687,381 -i.042.858) 5,935,055 1,690,054 Change -7V Proposal B Proposal B TIR Proposal Bisc. Blvd. East r r Tax Roll $ 473,159,291 $ 473,159,291 $ 487,354.070 $ 487,354,070 $ 501,974,692 $ 501,974,692 Reduction of Tax Roll (96,385,127) (101,204,383) (106,264,602) Base Property Value (78,305,502) (78,305,502) (78,305,502) (78,305,502) (78,305,502) (78,305,502) Increased Property Value $ 394,853,789 $ 298,468,662 $ 409,048,568 $ 307,844,185 $ 423,669,190 $ 317,404,587 95% 95% 95% 95% 95% 95% CRA'sTax Base 375,111,100 283,545,229 388,596,139 292,451,975 402,485,730 301,534,358 Millage Rate 0 0147460 0147460 0147460 0147460 0147460 014746 Tax Increment Revenue 5,531,388 4,181,158 5,730,239 4,312,497 1.417.742) 5,935,055 1 4,446,426 Change 1 25° Submitted invo the public EON in GQ^.nc,, t:0n 'with fl. - 1-4 J on 4&_2arQ-c9-� SEOPW/CRA oNIM/CRA o 1— 0 ( Wafter Fdeman Citv Clerk 20 • • Projected Growth in Overall Assessment Value Overall Assessment Value is increased by 10% thru 2005 and 3% thereafter Biscayne Blvd. frontage properties (A and B only) is increased by 25% thru 2005 and 5% thereafter Proposal D - Arena Wes( $ 517,033,933 Proposal D $ 517,033,933 TIR $ 532,544,951 Proposal,,, $ 532,544,951 $ 548,521,299 $ 548,521.299 Tax Roll Reduction of Tax Roll (32,435,086) (33,408,139) (34,410.383) Base Property Value (78,305,502) (78,305,502) (78,305,502) (78,305,502) (78,305,502) (78,305,502) $ 438,728,431 $ 406,293,344 $ 454,239,449 $ 420,831,310 $ 470,215,797 $ 435,805,414 Increased Property Value 95 % 95 % 95% 95 % 95 % 95 % CRNs Tax Base 416,792,009 385,978,677 431,527,476 399,789,744 446,705,007 414,015,144 Millage Rate 0,014746 0,014746 0,014746 0.014746 0,014746 Tax Increment Revenue 6,146,015 5,691,642 (454.373) 6,363,304 5,895,300 (468,005) 6,587,112 6,105,067 1482045) %Change 7 7 r Mcord It1fn on 1 — Walter Foeman 21 SAPW/CRAI /GRA City Clerk 01_ 07 1 1 1 1 1 1 1 1 Projected Growth in Overall Assessment Value Overall Assessment Value is increased by 10% thru 2005 and 3% thereafter Biscayne Blvd. frontage properties (A and B only) is increased by 25% thru 2005 and 5% thereafter Proposal A - Scenario 11 Bisc. Blvd. West Tax Roll Reduction of Tax Roll Base Property Value Increased Property Value CRA's Tax Base Millage Rate Tax Increment Revenue Change FY 2037-M13:4!__ $ 564,976,938 (78,305,502) $ 486,671,436 95% 462,337,864 0.0147460 6,817,634 $ 564,976,938 (368,330,050) (78,305,502) $ 118,341,386 95% 112,424,317 014746 1,657,809 $ 581,926,246 (78,305,502) $ 503,620,744 95% 478,439,707 0.014746 7,055,072 __F! 2OW39 $ 581,926,246 (386,746,552) (78,305,502) $ 116,874,192 95% 111.030,482 0.0147461474 1,637,255 I Impact I FY 2039-40r $ 599,384.034 (78,305,502) $ 521,078,532 95% 495,024,605 7,299,633 r $ 599,384,034 (406,083,880) (78,305,502) $ 114,994.652 95% 109,244,919 1474 1,610,926 I Impact (5.688.707) I -78°i Proposal B Bisc. Blvd. East Tax Roll Reduction of Tax Roll Base Property Value Increased Property Value CRA's Tax Base Millage Rate Tax Increment Revenue %Change $ 564,976,938 (78,305,502) $ 486,671,436 95% 462,337,864 0.0147460 6,817,634 Proposal - $ 564,976,938 (129,165,288) (78,305 502) $ 357,506,148 95% 339,630,840 014746 5,008,196 11111 w $ 581,926,246 (78,305,502) $ 503.620,744 95% 478,439,707 U14746 (1.809.438) 7,055,072 -27"� Proposal - 1<: $ 581,926,246 (135,623,553) (78,305,502) $ 367,997,191 95% 349,597,332 0.0147461474 5,155,162 1(- 1 $ 599.384,034 (78,305,502) $ 521,078,532 95% 495,024,605 7,299,633 ; FY 2039-40 $ 599,384,034 (142,404,731) (78,305,502) $ 378,673,801 95% 359,740,111 1474 5,304,728 TIR Impact Proposal C - Arena East Proposal - Proposal c TIR Proposal- Tax Roll $ 564,976,938 13 $ 564,976,938 1\': $ 581,926,246 $ 581,926,246 IK' 1 - Impact $ 599,384,034 $ 599,384,034 Reduction of Tax Roll (38,452,240) (39,605,807) (40,793,981) Base Property Value (78 305 502) (78 305 502) (78,305,502) (78,305 502) (78,305,502) (78,305,502) Increased Property Value $ 486,671,436 $ 448,219,197 $ 503,620.744 $ 464,014,938 $ 521,078,532 $ 460,284,551 95% 95% 95% 95% 95% 95% CRA's Tax Base 462,337,864 425,808,237 478,439,707 440,614,191 495,024,605 456,270,323 Millage Rate 0 0147460 014746 0,0147461 Q.01474611474 1474 Tax Increment Revenue 6,817,634 6,278,968 7,055,072 6,500,246 712991633 6,728,162 Change11 Proposal D - Arena West Proposal 0 TI- Proposal . TIR Proposal Tax Roll w $ 564,976,938 13 $ 564,976,938 $ 581.926,246 M: $ 581,926,246 I3'1 $ 599,384,034 FY 2039-40 $ 599,384,034 Reduction of Tax Roll (35,442,694) (36,505,975) (37,601,155) Base Property Value (78,305,502) (78,305,502) (78,305,502) (78,305,502) (78,305,502) (78,305,502) $ 486,671,436 $ 451,228,742 $ 503,620,744 $ 467,114,769 $ 521,078,532 $ 483,477,377 Increased Property Value 95% 95% 95% 95% 95% 95% CRA's Tax Base 462,337,864 428,667,305 478,439,707 443,759,031 495,024,605 459,303,508 Millage Rate 0 014746 0.014746 1474 1474 1474 1474 Tax Increment Revenue 6,817,634 6,321,128 (496.5,-- 7%5,072 6,543,671 7,299,633 6,772,890 (526. Change into r6Cord VJth on A 4/U, SB0pW1rMM A 14 Walter Foeman OMNT/CRA Q 1— 0 7City Clerk 22 • • Projected Growth in Overall Assessment Value Overall Assessment Value is increased by 10% thru 2005 and 3% thereafter Biscayne Blvd. frontage properties (A and B only) is increased by 25% thru 2005 and 5% thereafter Proposal A - Scenario I Bisc. Blvd. West Tax Roll $ 617,365,555 $ 617,365,555 Reduction of Tax Roll (497,088,955) Base Property Value (78,305,502) (78,305,502) $ 539,060.053 $ 41,971,098 Increased Property Value 95% 95% CRA's Tax Base 512,107,050 39,872,543 Millage Rate 0,014746 0 014746 Tax Increment Revenue 7,551,531 587,961 6 963 S 10) %Change �)7 Proposal A - Scenario II Proposal Bisc. Blvd. West Tax Roll $ 617,365,555 $ 617,365,555 Reduction of Tax Roll (426,388,074) Base Property Value (78,305,502) (78,305,502) $ 539,060,053 $ 112,671,979 Increased Property Value 95% 95% CRA's Tax Base 512,107,050 107,038,380 Millage Rate 0,014746 0.014746 Tax Increment Revenue 7,551,531 1,578,388 6.9 t i 1.1:31 Chance-9 Proposal Bisc. Blvd. East - Tax Roll $ 617,365,555 $ 617,365,555 Reduction of Tax Roll (149,524,967) Base Property Value (78,305,502) (78,305,502) $ 539,060,053 $ 389,535,086 Increased Property Value 95% 95% CRA's Tax Base 512,107,050 370,058,331 Millage Rate 0.014746 0,014746 Tax Increment Revenue 7,551,531 5,456,880 i2094_650) Change 1 2` Proposal C - Arena East Tax Roll Reduction of Tax Roll Base Property Value Increased Property Value CRA's Tax Base Millage Rate Tax Increment Revenue Proposal D - Arena West Tax Roll Reduction of Tax Roll Base Property Value Increased Property Value CRA's Tax Base Millage Rate Tax Increment Revenue $ 617,365,555 $ 617,365,555 (42,017,800) (78,305,502) (78,305,502) $ 539,060,053 $ 497,042,252 95% 95% 512,107,050 472,190,140 0.0147461 0,414746 7,551,531 6,962,916 (588,61 $ 617,365,555 $ 617.365,555 (38,729,189) (78,305,502) (78,305,502) $ 539,060,053 $ 500,330,864 95% 95% 512,107,050 475,314.320 0,01474610.014746 7,551,531 7,008,985 542 54 SUbM!tted li'110 lihe public rocord in conn �-t on v!lthl Walter Foeman City Clerk SEOPW/CRA 01 _ 14 ONM/C U, 01- 07 23 qt Submitted irto the pub-ic record in cc�znection with item. on 426M((L4 Warier Foeman City Clerk lCRA i 01— 14 o /cRA, Dain auscher Incorporated DRAFT - 2/26/01 SECTION IV 8 DEBT OBLIGATIONS The CRA has obligations on one outstanding bond issue and outstanding loan. Debt service on the 1990 Series Bond Issue is paid with pledged Tax Increment Revenues and Florida Guaranteed 8 Entitlement Funds of the Redevelopment Area. A reduction of tax increment revenue could require the City to meet any annual debt service deficit. D In addition, the $1,708,864 GCC Loan must be completely paid off by the year 2008 by the City of Miami. There is no interest due on this loan, but repayment of the loan must be made from tax increment funds received from the Designated Area. • $11,500,000 Community Redevelopment Revenue Bonds, Series 1990 — On November 8, 1990, the City issued $11,500,000 aggregate principal amount of Community Redevelopment Revenue Bonds, Series 1990, maturing through 2015, with interest rates ranging from 7.15 percent to 8.5 percent. These bonds are secured by a pledge of guaranteed entitlement revenue received from the State of Florida and annual tax increment revenue received from the City and County within the Southeast Overtown/Park West Community Redevelopment Agency (CRA) redevelopment area. The proceeds of the bonds were used to refinance a $5,958,000 Section 108 HUD Promissory Note, to reimburse the City for monies advanced to the Agency by the City in an amount not to exceed $750,000, and to finance the acquisition and clearing of certain real property for community redevelopment within the redevelopment area of the CRA pursuant to the terms and conditions of the Phase I Development Program of the City/County CRA's Interlocal Agreement, dated March 31, 1983, and related resolutions of the City and County. • $1,708,864 Gran Central Corporation (the "GCC") Loan - On January 9, 1992, the City entered into a $3,000,000 loan agreement with the Gran Central Corporation (GCC) to finance 50 percent of the cost to acquire a parcel of property (17,000 square feet) and structure within the SEO/PW CRA redevelopment area to use by the City to relocate and widen Northwest First Avenue between Northwest First Street and Northwest Eighth Street to the Miami Arena as provided for in the CRA redevelopment plan. The loan amount that was withdrawn by the City, in the amount of $1,708,864, does not bear interest and is payable from tax increment funds received from the City and County within a Designated Area of the SEO/PW CRA redevelopment area defined in the loan documents on a junior and subordinate basis to the lien granted to holders of the $11,500,000 Community Redevelopment Revenue Bonds, Series 1990. GCC is to be fully repaid, by the City, by the year 2008 with annual payments to be made by the City to the extent tax increment revenues are generated within the Designated Area, as defined in the loan document, and are available after required payments for the Series 1990 Bonds debt service and any requirement of the reserve fund or reserve product, as defined in the Series 1990 Bond indenture. As of September 30, 1999, no payments have been made by the City to the GCC since CRA tax increment revenues are not available within the Designated Area. The City of Miami has been paying interest on the $4,800,000_ and the $300,000 Section 108 HUD Loans since August 1, 1995. As of August, 2000, the City commenced to pay back the principal on these two outstanding debt obligations in addition to the loan interest it had been paving. SE®PVV/ ,,� IC A COnne; tvo,p 017 Q Eaith pMa{tar FQ�/ CiG�.... c��c�an ® i tk • D RAFT - 2/26/01 • $4,800,000 Section 108 H loan from the U.S. Department of Housing and Urban Development ("HUD") — The loan proceeds were used to retire $6,735,000 of the City's outstanding CRA Bonds Series 1990. Loan interest is payable on February 1 and August 1 of each year commencing on August 1, 1995. Principal is payable annually commencing August 1, 2000. • $300,000 Section 108 Loan from HUD — The loan proceeds were used by the City to fund the acquisition of vacant land for the expansion of the Lyric Theater and the construction of the Lyric Theater Plaza project (an extension of the 9"' Street Pedestrian Mall) in collaboration with Miami -Dade County. The principal is payable annually commencing on August 1, 2000. Loan interest is payable on February 1 and August 1 of each year commencing August 1, 1995. SU6MI!Ied- "to the Public record IPA cOnne� ,l C�IIh ate. c� on-�/Ut Cn,c Rater FOemen -1-4 07 city CBerk ®MNI 25 DAI KAUSCHER INVESTMENT SERVICES INVESTMENT BANKING MEMBER NY.SE/SIFC 02-008-001 01 98