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Home My WebLink AboutR-89-0646J 07/05/89 RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO SEEK APPROVAL FROM THE DADE COUNTY COMMISSION FOR USE OF REDEVELOPMENT TRUST FUNDS; FURTHER APPROVING AN EXPENDITURE IN THE AMOUNT OF $490,793 FROM THE SOUTHEAST OVERTOWN/PARK WEST REDEVELOPMENT TRUST FUND FOR THE PURPOSE OF MAKING AN INTEREST PAYMENT ON A U.S. HUD SECTION 108 LOAN FOR PHASE I LAND ACQUISITION. WHEREAS, the Southeast Overtown/Park West Redevelopment Trust Fund has been established to receive tax increment monies generated by the Southeast Overtown/Park West Community Redevelopment Project, from which funds may be appropriated to cover certain project costs, including project financing costs and other project implementation expenses; and WHEREAS, the Southeast Overtown/Park West Redevelopment Trust Fund contains sufficient balances to allow draws to be made from said Fund for these specific project activities; and WHEREAS, by Ordinance No. 10605 , the City Commission appropriated $490,793 from the Southeast Overtown/Park West Trust Fund for the purpose of making a HUD Section 108 Loan interest payment; and WHEREAS, the City Commission, by Resolution No. 83-187, authorized the approval of an Interlocal Cooperation Agreement between Metropolitan Dade County and the City of Miami requiring the prior approval of the Dade County Commission for any expenditures from the Southeast Overtown/Park West Redevelopment Trust Fund; and WHEREAS, by Resolution No. 85-742, the City Commission authorized the execution of a Promissory Note for a Section 108 Loan in the amount of $5,958,400 for Phase I land acquisition for the Southeast Overtown/Park West Community Redevelopment Project; and $490,793 August 1, WHEREAS, an interest payment in an amount not to exceed is due on the aforementioned Section 108 Loan on 1989; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: SECTION 1. The City Manager is hereby authorized to seek approval from the Dade County Commission Redevelopment Trust Fund expenditures provided Resolution. for the r by this .TY C_OMMS�i�� ? MEETING OF - JUL 1& ;1969 SECTION 2. An expenditure of funds in the amount of $490,793 is hereby approved from the Southeast Overtown/Park West Redevelopment Trust Fund for the purpose of making a HUD Section 108 Loan interest payment due August 1, 1989, said approval being conditioned upon receipt of said monies. SECTION 3. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 13th day of July , 1989. ATTRQT• BUDGETARY REVIEW & APPROVAL: /A MANOHAR S T DIRECTOR DEPARTMENDGET CAPITAL BUDGET REVIEW: CIP PROJECT MANAGER PREPARED AND APPROVED BY: IN K. KEARS4 ASSISTANT CITY ATTORNEY -2- FINANCIAL REVIEW & APPROVAL: 6z?, _. -T- CARLO ARCIA, DIRECTOR DEPARTMENT OF FINANCE APPROVED AS TO FORM AND - CORRECTNESS: r JO GE F NAND Z - CITY ATTORNEY 0 CITY OF MIAMI. FLORIDA INTER -OFFICE MEMORANDUM TO Honorable Mayor and Members of the City Commission &Moe�� FROM: Cesar H. Odio City Manager RECOMMENDATION: DATE : U U N 2 3 1989 FILE FY 1989 Southeast SUBJECT Overtown/Par`k West Redevelopment Trust Fund Budget REFERENCES: ENCLOSURW:/13/89 Commission Mtg. It is respectfully recommended that the City Commission approve _ the attached resolution approving FY 1989 Southeast Overtown/Park West Tax Increment Trust Fund Budget (Appendix A) for the purpose of making an interest payment on a HUD Section 108 Loan for Phase I land acquisition; authorizing the City Manager to seek approval from the Dade County Commission for use of Redevelopment Trust Fund. BACKGROUND: The Department of Development has analyzed the need for this action, which represents the use of tax increment revenues derived from the Southeast Overtown/Park West Redevelopment Community Development Area. By Resolution No. 85-742 (July 5, 1985) the City Commission authorized the execution of a Promissory Note with the U.S. Department of Housing and UrbAn Development (HUD) for a $5,958,400 Section 108 Loan for the purpose of funding the purchase of Phase I development land. The loan is guaranteed by -•'_ future FUD CDBG entitlement funds and is required to be totally repaid with the issuance of tax increment revenue bond (TIRE) by 1992 at the latest. An interest payment of $490,793 is due on the Section 108 federal loan on August 1, 1989 and is a required part of the Promissory Note Obligations. Pursuant to the request of the City, the U.S. HUD has rescheduled the principal payments for the loan until 1993,' which were originally due on August 1, 1989. E�! Honorable Mayor and Members of the City Commission Page 2 The total proposed expenditures of $490,793 at this point are well -covered by current balances in the Southeast Overtown/Park West Redevelopment Trust Fund. Tax increment revenues have been flowing to the Trust Fund since the FY 1985/86. Total tax increment revenues for the FY 1988/89- are $472,716, in addition to the $300,000 annual rent payment from the Miami Arena. For FY 1989/90, tax increment revenues are expected to climb to at least $1.1 million with the addition of the Courthouse Center and Freedom Tower to the tax digest. The Interlocal- Agreement between the City and Dade County for this project, authorized by the City Commission by Resolution No. 83-1870 requires the City to obtain County approval for any budgeted appropriations from the Redevelopment Trust Fund. Attachments: Appendix A Appendix B Proposed Resolution APPENDIX A SOUTHEAST OVERTOWN/PARK WEST REDEVELOPMENT PROJECT TAX INCREMENT TRUST FUND FY 1989 BUDGET 06/01/89 AMOUNT PAYMENT ITEM APPROPRIATED DUE DATE STATUS U-S HUD SECTION 108 ------------------------------------------------- LOAN PAYMENT $219,456 08/01/87 PAID SEOPW PHASE I MARKETING & PLANNING ACTIVITIES $100,000 N/A- APPROVED BY THE CITY COMMISSION U.S HUD SECTION 108 PAID LOAN PAYMENT $489,449 08/01/88 SEOPW PHASE I MARKETING HELD IN TRUST ACCT. - & PLANNING ACTIVITIES $45,000 N/A U.S HUD SECTION 108 LOAN PAYMENT $490,793 08/01/89 SUBJECT TO CITY COMMISSION APPROVAL TOTAL APPROPRIATIONS $1,344,698 ----------------------------------------------------------- FUNDS COLLECTEDIN SEOPW TRUST ACCOUNT $1,550,379 APPENDIX B SOUTHEAST OVERTOWN/PARK WEST REDEVELOPMENT PROJECT a6/ot/89 TAX INCREMENT REVENUE PROJECTIONS GAS FRANCHISE TRUST FUND CUMULATIVE TOTAL PROJECT VALUATION APPLICABLE* NET REVENUESPROJECTED VENUE N LI ERENT CUBALANCEE^- EXPENDITURES BALANCEL-- TAX YEAR AREA VALUATION INCREMENT REVENUE E (-9 =-==---------o------N/A ---NET 0 -- --- 1982/83-----w$78,305,502 - Base Year=====_- N/A --==-==N/A -0 -----------o----------------_______0_ 0 ------------- 1983/84 --------------------------- $77,869,266 ($436,236) ----N/A------------------------------------ N/A --------------------------------------------- 1984/85 -------------- $77,442,148 ($863,354) - N/A ----------------------- --- N ----- ---- ---------- 1985/8b (1) ------------- $86,762,119 ----------- $8,456,617 Base Year 17.1350 N/A $144,90 N/A N/A $137,659 0 $137,659 1985/86 (2) $37,461,910 $8,456,617 17.1350 $144,904 $137,659 0 ------------------ Total $86,762,119 ---- - 1986/87 (1) (2) $97,745,o67 $46,898,016 $19,439,565 $9,436,106 -------------------- 17.1290 17.1290 $332,980 0 $6a7,54o $319,456 $288,084 1986/87 Total $144:643:083 $28,875,671 ------- ------------ $16163 1 $469,881 ____________-------- --------------------------------------- 1987/88 (1) $98,167,995 $19,862,493 $9,429043 16.8945 16.8945 $335,567 $159,299 0 $758,206 $534,449 $223,758 1987/88 (2) Total $46,890,953 $145,058,948 $29,291:536 16.8945 $494,866 $47Q,123 __________________ 1988/89 (1) 1988/89 (2) $98,439,287 $46,791,682 ----------------------------------- $20,133,785 $9,329,772. 16.8885 16.8885 $340,029 $157,566 $472,7t6 00 000 $3 , $996,473 $490,793 $505, 0 Total $145,23Q:969 $29,463,557 16.8885 ------ --------------------- $497,595 -1 -$1,910,532 ----------------------- --- $490,793 $1,419,738 ------- ----- 1989/90 (3) ------------- ------------- $184,630,969 $ , 3,557 1-.88-5 $1:163,OQ2 104 852 $ , , $300,000 _________________________________________________ $490,793 $3,354,092 ------------- 1g90/91**(4) ------------- $248,134*066 --------------------+-----_----------------------- $132,366,654 t6 9000 2 2 6 996 $ , 3 , $2,125,147 $300,00a 844 885 $3, , --------------- ---y----------------- sue- t 00 000 $7,140,917 $49p,793 $b,650,124 1991/92 (5) $332,947,472 $217,180,060 16.9000 $3,670,343 $3,486,826 $3 , ___---$490,7--___$6,650,12-_ -----------------------------------------------------op-----$1a,971r497-- $2,47 ---- $8,494,704 -------------------------- 024 $4,021,373 $3 r ,793 1992/93 $366,242,220 $250,474,808 16.9000 $4,233, ------------------------------------------------- -------- ------------------------------------------------------------------- 00 pd0 $13,4d4,a79 $2,313,195 $11,Q9pr$84 1993/94 $402,866,442 $287,099,030 1------ $4-85---- $4-------- 3 , ------------------------- ------------------------------------------------------------------------------------------- 2 149 598 $14,497,463 --------- 2 b 177 $300,000 $16,647,061 $ , 1994/95 $443,153r0$6 $327,385,b74 1b.9QOp $5,532r818 $5, 5 , ---------- Applicable millage is (a) County General Fund + (b) City General Fund. * increase in total area valuation per year. City estimates for years after 1990 are based upon estimates of a 10$ 1 1982/83 Original 2 1985/86 Addition 3 Includes $33,000,000 valuation for the Courthouse Center and $6,400,000 valuation for the Freedom Tower. 4 Includes $22,640,000 valuation for the Park West Place and $22,400,000 valuation for the Biscayne View Apartments. 5 Includes $60,000,000 valuation for the Phase I Gran -Central office Tower. a k