Loading...
HomeMy WebLinkAboutM-90-0307Donald F. Benjamin, AICP INTERIM PRESIDENT Ann-Marie.Adker INTERIM VICE-PRESIDENT lacqui Colver SECRETARY Wilhelmina Jennings FINANCIAL SECRETARY Cleomie Bloomfield TREASL.RER MEMBERS Patricia Braynon Ernestine Allen George Knox Robert Kalinsky Dr. William Perry Bernice Sawyer i.,lliam haw ver March 21, 1990 Mr. Cesar H. Odio The City Manager City of Miami, City Hall 3500 Pan American Drive P.O. Box 330708 Miami, Florida 33233-3078 Dear Mr. Manager: The Overtown Advisory Board would like to appear before the City of Miami Commission to present the attached Resolution from the Overtown Advisory Board requesting that the City of Miami increase by $8 million dollars, the proposal to raise $22 million dollars in Community Development Bonds for the development of the rest of Overtown outside of the Southeast Overtown/Park West Project area. \nnie �m,,h Sincerely, "nary] Turiel - ''I��l� ' )hn E. Ah.te yi r l =i Donald F. Benjamin Interim President Enclosures: _ Copy of Letter to Mayor Resolutions a 407 N.W. 5th Street, Miami, FL 33128 i THE OVERTOWN ADVISORY BOARD, INC. A RESOLUTION TAX INCRE KEff FINABCM $8,O00,00O.0O Connsanity Redevelopment Revenue Bonds for the development of ALL of OVERTOWN WHEREAS: the City of Miami proposes to raise $22,000,000.00 Community Redevelopment Revenue Bonds for the Southeast Overtown Park West Project through the Tax Increment Financing mechanism established for Overtown and, WHEREAS: the City of Miami has previously raised more than $5,000,000.00 for the same project through similar Community Redevelopment Revenue Bonds for Overtown and, WHEREAS: the rent of $300,000.00 or more from the Miami Arena is revenue accruing to the City of Miami from the Tax Increment Financing mechanism for Overtown and, WHEREAS: none of these funds have been used for the direct benefit of Overtown , and, WHEREAS: the City of Miami now proposes to raise $22,000,000.00 for paying off a loan of more than $5,000,000.00 from USH[TD and for acquiring seven more parcels of land in the Southeast Overtown Park West Project area and, 7 90-0 307 page 2 - OAB Resolution WHERFAS: none of the $22,000,000.00 is designated for use in the development of the truly slum and blighted areas of Overtown and, i • f WHEREAS. the slum and blighted conditions Overtown are the reason for o raising these funds through Tax Increment Financing and, WHEREAS: the slum and blighted conditions still exist in Overtown and, WHEREAS: no meaningful efforts have been made recently to prepare a development action plan for ALL of Overtown and, WHEREAS: no mechanism has been set up for the development of such a plan and for its implementation with an effective timetable and an estimated capital development budget; BE IT RESOLVED that the Overtown Advisory Board, Inc. request the City of Miami to increase the projected Community Redevelopment Revenue Bond financing from $22,000,000.00 to $30,000,000.00 and to deposit the additional $8,000,000.00 into a fund to be known as the Overtown Development Fund and, BE IT FURTHER RESOLVED that this fund be used for the preparation of a detailed development action plan and program for ALL of Overtown and for the implementation of any start-up projects resulting from the plan and, MUM page 3 — OAB Resolution BE IT FURTHER RESOLVED: that the Overtown Advisory Board, Inc. be designated as the Trustees for this fund to advise the City of Miami regarding the use of the fund and to make appropriate recommendations to the City of Miami regarding development projects and activities for which the fund may be used and, BE IT FURTHER RESOLVED that the Overtown Advisory Board, Inc. and the City of Miami immediately set in motion the establishment of an Overtown Development Agency that would be responsible for the overall development of ALL of Overtown and that it would be so authorized by the City of Miami and Metropolitan Dade County. Adopted by the Overtown Advisory Board, Inc. on S March, 1990. Donald F. Benjamin, President (Interim) Jacqui Coyler, Secretary ��r Donald F. Beni"n, AICP INTERIM PRESIVENT Ann -Marie AAker INTERIM via-imDENr lacqui CA4W SECRETARY Will"imim lenwnp FINANCIAL SECRETARY Cleon" Bloomfield TREASURER MEMBERS Patricia Braynnn Erustitve Allen Caorse Knox Robert Kaliroky Dr. Willism Perry service Sawyer Willam Sawyer Annie SrnM Leonard Turkel Rev. John F. White March 12th, 1990 The Honorable Xavier L. Suarez Mayor City of Miami, City Hall 3500 Pan American Drive PO Box 33078 Miami, FL 33233-3078 Dear Mr. Mayor, Every time the Overtown Advisory Board, Inc. raises- its concerns about Tax Increment Financing and the fact that it does nothing for Overtown, the Assistant City Manager for Development always makes the point that by lax the tax benefit does not provide for Overtowa but only for the Southeast Overtown Park West Project area. It appears that in order to get this matter settled.and to ensure that substantial benefits accrue to the development of Overtown it may be necessary to have a court of law decide. In the memo of February 27, 1990 to you and the City Commissioners from the City Manager reference the City Commission meeting of March 8, 1990 dealing with the subject - Southeast Overtown/Park West Tax Increment Bond Issue, Series 1990, the City Commission is asked to adopt a resolution for acquisition for development purposes of certain properties in Southeast Overtown Park West and to authorize $22,000,000.00 in Community Redevelopment Revenue Bonds, Series 1990 to repay a loan made to the City by U.S. HUD and to finance the cost of the acquisition. In SECTION 2 (Findings and Determinations) of the Resolution, paragraphs B and C describe the slum and blighted conditions in Overtown - not -just Southeast Overtown Park West. B. The existence of one or more slum or blighted areas in the City, specifically the Southeast Overtown/Paris West Redevelopment area ("Overtown") imposes as undue and oppressive burden upon the government and citizens of the City, which if not reduced or eliminated will adversely affect the ability of the City to provide local government services to its citizens and will seriously undermine and damage the public health, safety and welfare. page 1 of 5 4.07 N.W. 5th Street, Miami, FL 33128 �� page 2 - OAB Letter to Mayor - 03/12/90 C. The deterioration and blight in Overtown are such that they cannot be remedied solely by private efforts. There is no economic incentive; logistical problems such as acquisition of various tracts of real estate from several owners effectively deter any potential private developers. Such developers, with governmental assistance `could be, have been, and are willing investors in the redevelopment of Overtown. Therefore the problems of deterioration and blight are such that can be most effectively remedied by the participation of government in a redevelopment program. Paragraph D refers to a redevelopment plan for Overtown which was approved on December 7, 1982 which the OAB would like to see u'dated and revised in order to provide for meaningful development actions for all of Overtown. D. Dade County (the "County") has approved: on December A, 1982, a redevelopment plan for Overtown (the "Plan") and has provided for an interlocal cooperative agreement between the County and -the City. dated as of !larch 31. 1983, as amended (the "Interlocal Cooperation Agreement") delegating redevelopment powers to the City,Comaission of the City, providing for the creation of a redevelopaint trust fund by the City and the deposit of tax increment revenues therein and providing for the issuance of bonds, notes and other obligations secured by such revenues in accordance with certain conditions set forth in the Interlocal Cooperation Agreement. Pursuant to the ZZ Interlocal Cooperation Agreement, the City has provided for the creation of the redevelopment trust fund (the "Redevelopment Trust Fund") and the funding and administration thereof. Paragraph E, F and J describe the benefits for the City of Miami if rehabilitation and redevelopment of Overtown Would take place. E. The rehabilitation and redevelopment of Overtown is necessary in the interest of the public health, safety, morals and welfare of the City,: and in order to carry out such rehabilitation and redevelopment it is necessary and appropriate for the City Commission to be a Community Redevelopment Agency ("CIW) under page 2 of 5 �� 11 i page 3 - OAB Letter to Mayor - 03/12/90 Part III of Chapter 163, Florida Statutes (the "Redevelopment Act"). The Interlocal Cooperation Agreement in effect recognized the City Commission as the CRA under the Redevelopment Act. F. The City has determined that the redevelopment of Overtown will require the acquisition of certain lands within Overtown (the "Lands'), as more particularly described on Exhibit "A" hereto, for redevelopment purposes, and the City acting as the CRA under its delegated redevelopment powers has already begun a program of acquiring such Lands. J. Redevelopment of Overtown will add to employment in the City both by creating employment opportunities for persons in the construction industry in the City and by the creation of new jobs by merchants, entrepreneurs and other commercial ventures who after the redevelopment of the area will be willing to locate their basines*3e3 in Overtown. Redevelopment will also contribute to the stability of family life in the City by providing affordable houslag to lower income residents. The other paragraphs, including g and L, discuss the authorization and utilization of proposed bond dollars. I. The City, under the terms of the Interlocal. Cooperation Agreement, is authorized to issue bonds or other obligations =_ payable from tax increment revenues deposited in the Redevelopment Trust Fund which funds are to be pledged to repayment of bonds, —_ notes or other obligations secured by such revenues (the tax increment revenues deposited in the Redevelopment Trust Fund, the rental revenue derived by the City under the 'Land Lease Agreement dated October 10, 1986 between the City, the Miami Sports and Exhibition Authority and Decoma Miami Associates, Ltd. and any other source of revenues which may be irrevocably pledged by the City for the payment of the 1990 Bonds (as hereinafter defined) prior to the issuance of the 1990 Bonds are hereinafter referred to as the "Pledged Revenues"). L. The acquisition of the Other Lands and the repayment of the HUD Loan through the issuance of not to exceed $22,000,000 in aggregate principal atiount of the City's community Redevelopment Revenue Bonds, Series 1990 (the "1990 Bonds"), the principal of, premium, if any, with respect to and interest on which shall be payable solely from the Pledged Revenues, will serve proper and sufficient public purposes by aiding in the eradication of slum and blighted conditions and revitalizing, of Overtown. page 3 of 5 90-0307 page 4 - OAB Letter to Mayor - 03/12/90 I hope that you and the City Commissioners take the OAB's concern very seriously. Any time a request is made for funds for a project in Overtown the response is always "there is no money." Yet the evidence is clear that the bad socio-economic and physical environmental conditions in Overtown are used to cause millions of dollars to be obtained by the City of Miami. However, these same dollars are utilized in other project areas and not in Overtown to correct the conditions which have been vividly described, ascertained, determined and declared in order to attract the dollars. The experience has been the same with the Metro Miami Action Plan. Overtown has never received one penny from MMAP funds. It was because of what happened in Overtown that MMAP was able to receive much of its funding. The Overtown Advisory Board, Inc. is determined that this negligence must stop. In our recent presentation to the City Commission we discussed the whole concept of Tax Increment Financing and Overtown and we emphasized the need for, a major development action plan for Overtowa. We suggested the utilization of tax increment financing and other bond issue innovations for the financing of the proposed developments. It is interesting to note that Mr. Marty Fine has made a similar proposal to use tax increment financing for the development of downtown Miami. The Greater Miami Chamber of Commerce New World Center Action Committee has already discussed his proposal and some wheels may be already in motion for the downtown development. Tax Increment Financing is absolutely necessary for Overtown. We MUST use it. But tax increment financing without the major development action plan is pointless. The City of Miami has an obligation to take the leadership and get Metropolitan Dade County, the State of Florida and the Federal Government involved in a very determined and meaningful way to use tax increment financing and other bonding innovations for the renewal, revitalization, rehabilitation and redevelopment of ALL of Overtown. OVERTOWN is DOWNPOWN MIAMI! page 4 of 5 page 5 - OAB Letter to Mayor - 03/12/90 I urge you, Mr. Mayor, ACT NOWT Most spect£ully, Donald F. Benjamin, AICP Interim President cc: City Commissioners City Manager County Commissioners State Senator Jack Gordon Representative Jeff Reaves Representative Al Gutman DFB/nvc page 5 of 5 � t � u Donald F. Benjamin, AICP INTERIM PRESIDENT Ann -Mane Adker INTERIM VICE-PRFSIDENT i lacqui Colyer SECRETARY Wilheimina Jennings FINANCIAL SECRETARY Cleomie Bloomfield TREASURER MEMBERS Patricia Braynon Ernestine Allen George Knox Robert Kahnsky Or William Perry Bernice Sawyer 1A.11,am Sawyer Annie Smith Leonard Turkel Rev. lohn F. White March 21, 1990 Mr. Cesar H. Odio The City Manager City of Miami, City Hall 3500 Pan American Drive P.O. Box 330708 Miami, Florida 33233-3073 Dear Mr. Manager: The Overtown Advisory Board would like to appear before the City of Miami Commission to present the attached Resolution from the Overtown Advisory Board requesting that the City of Miami increase by $8 million dollars, the proposal to raise $22 million dollars in Community Development Bonds for the development of the rest of Overtown outside of the Southeast Overtown/Park West Protect area. Sincerely, Donald F. Benjamin Interim President Enclosures: Copy of Letter to Mayor Resolutions *,07 K"'� ;th Street, Mi,r,^: ;l. 33129 9V30"> Donald F. Benjamin. AICP INTERIM PRESIDENT Ann -Mane Adker INTERIM %ICE -PRESIDENT }acqui Colver SECRETARY Wilheimina Jennings FINANCIAL SECRETARY Clenmie Bloomfield TREASURER MEMBERS Patricia Braynon Ernestine Allen George Knox Robert Kalinskv Dr. William Perry Bernice Sawyer V%,IGam Sawyer Annie Smith Leonard 'Turkel Rev. John F. White March 21, 1990 Mr. Cesar H. Odio The City Manager City of Miami, City Hall 3500 Pan American Drive P.O. Box 330708 Miami, Florida 33233-3078 Dear Mr. Manager: The Overtown Advisory Board would like to appear before the City of Miami Commission to present the attached Resolution from the Overtown Advisory Board requesting that the City of Miami increase by $8 million dollars, the proposal to raise $22 million dollars in Community Development Bonds for the development of the rest of Overtown outside of the Southeast Overtown/Park West Project area. Sincerely, Donald F. Benjamin Interim President Enclosures: Copy of Letter to Mayor Resolutions i '.07 (,..'A' Sift Str- ''nrnl, fl "1 I L.l ; - ( !