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HomeMy WebLinkAboutCRA-R-17-0001 Submittal-Javier Fernandez-Memo of Changes MadeSubmitted into the public record in connection with Item kL_ on 1- )-. 7 STEARNS WEAVER MILLER Todd B. Hannon WEISSLER ALHADEFF & SITTERSON, P.A. Clerk of the Board MEMORANDUM TO: Nitin Motwani Miami WorldCenter Associates, LLC FROM: Javier E. Femdndez,r� RE: Summary of Changes to the Miami WorldCenter Economic Incentive Agreement DATE: January 25, 2017 Below is a summary of the major amendments proposed for the Miami WorldCenter Economic Incentive Agreement ("Amended Agreement") which have been submitted to the Board of Commissioners ("Board") of the Southeast Overtown/Park West Community Redevelopment Agency ("CRA") for its consideration at their next meeting of January 301h, 2017: ■ Parties to the Agreement: Since the approval of the original agreement in December of 2014 (the "Original Agreement"), the joint venture entity comprised of The Forbes Company and The Taubman Company LLC withdrew from the deal necessitating the revision of the Original Agreement to reflect the consolidation of the responsibilities of the Retail Developer' with those of the Master Developer and Landowners, as applicable. In addition, a number of parcels have also been conveyed to both affiliated and unrelated third parties necessitating further revisions to the parties to the Original Agreement. Project Description: Similarly, due to the programmatic changes discussed hereinabove, the Project description in Exhibits `B and "C" has been modified. Most significant among the programmatic changes is the reduction in the projected gross retail square footage forming part of the Project from approximately 800,000 square feet to approximately 375,000 square feet. Smaller reductions to the total unit counts for the proposed apartment and condominium Improvements are also reflected in the Exhibit "B" of the Amended Agreement. Finally, one notable Project addition includes the addition of the Tract A Commercial Improvement which will consist of approximately 200,000 gross square feet of office and other uses. It Payment of Incremental TIF: Given the substantial changes to the retail portion of Project, the following revisions were made to Incentive Payment provisions in Section 4.2 and 4.2.1 of the Agreement: ➢ Pre -condition to Receipt of Incentive Payments. Future Incentive Payments will now only be owed and paid to the Incentive Payment Administrator upon the Substantial Completion of not less than 200,000 gross square feet of the Phase I Retail. Until such a threshold is satisfied, Incentive Payments will not be made to the Incentive Payment Administrator, notwithstanding the Substantial Completion of other Improvements forming part of the Project and which for which TIF Incentive Payment would be otherwise due and owing to the Incentive Payment Administrator. ➢ Extra -Incentive Payment. Section 4.2.1 of the original agreement provided, in part, for the payment of an Extra Incentive Payment (as such term is defined in the original agreement) which would have increased the amount of the Incentive Payment from 57% of the TIF to a total of 75% of the TIF generated by Substantially Completed Improvements through 2022. As that additional i Capitalized terms shall have the same meaning as in the Amended Agreement unless otherwise indicated herein. MIAM1 - FORT LAUDERDALE - TAMPA ■ TALLAHASSEE 17r5- S0brn� f t�-I-Ja �,e+' f.�inQn�Cez- Q e td c (e. Chunjes rnad,(-, Submitted into the public record in connection with Item E ! on January 25, 2017 Todd B. Hannon Page 2 Clerk of the Board TIF was intended as an incentive to support the development of the mall component of the Project as originally conceived, the Extra Incentive Payment has been deleted from the Agreement. ■ Definitions: Some definitions have been revised or added to reflect modifications to companion provisions in the Amended Agreement and to clarify prior ambiguities with respect to the monitoring and enforcement of the Community Benefits outlined in Section 3. These definitional changes include, but are not limited to the following: Phases — The definition of the Project Phases have been modified to reflect changes in the Project program. ➢ Resident — Due to prior ambiguities in the Original Agreement, a residency definition has .been established that will ensure satisfaction of the local hiring and workforce participation goals consistent with the intent of those provisions. ➢ Substantial Completion — This term has been revised to require that not less than 80% of any units forming part of a condominium building must be completed and on the tax rolls in order for such an Improvement to be deemed "Substantially Complete." ■ Responsible Wages: The proposed revision will now require that all job classifications identified in the County's Responsible Wage Ordinance for Electrical Workers are incorporated into the Amended Agreement and they will be entitled to be paid the hourly wage, health, and pension benefits, or an amount equivalent to their combined dollar value, required by the Responsible Wage ordinance upon the execution of an interlocal agreement extending the life of the CRA. ■ Living Wage & Responsible Wage Penalties: Consistent with more recent incentive agreements approved by the CRA, Landowners are subject to the payment of penalties for any failure to correctly compensate employees under the Living Wage and Responsible Wage standards required pursuant to the Amended Agreement. ■ CBE-A/E and SSE Penalties: Consistent with the similar penalty provisions adopted for CBE and SBE hiring requirements in other CRA agreements, the Landowners are now subject to the payment of penalties for their failure to meet the CBE and SBE participation requirements for each Improvement. ■ Legal Descriptions: As a substantial portion of the land mass comprising the Property was re -platted since the adoption of the Original Agreement, the .legal descriptions have been revised to reflect such a change. Further, one (1) parcel has been added to the Property in light of a land swap completed by the Master Developer. ■ Public Infrastructure Improvements Budget: The Public Infrastructure Improvements budget in Exhibit "D" has been revised to reflect updated costs. ■ First Source Hiring A reg ement: Previously, two (2) first source hiring agreements were incorporated as exhibits — one for the Mall at Miami WorldCenter (with the Retail Developer) and a second with the. Miami WorldCenter affiliates for future retail and hotel uses to be developed on the Property. Due to the elimination of the Retail Developer party from the Amended Agreement, the obligations were consolidated into a single document. #5506408 v2 STEARNS WEAVER MILLER WEISSLER ALHADEFF & SITTERS0N, P.A.