HomeMy WebLinkAboutR-88-0469J-88-456
5/12/88
RESOLUTION No. 48-r t-9
A RESOLUTION APPROVING THE FY 1988 SOUTHEAST
OVERTOWN/PARK WEST REDEVELOPMENT TRUST FUND
BUDGET FOR THE PURPOSE OF MAKING AN INTEREST
PAYMENT ON A U.S. HUD SECTION 108 LOAN FOR
PHASE I LAND ACQUISITION AND FOR MARKETING
SUPPORT AND ASSOCIATED REDEVELOPMENT PLANNING
ACTIVITIES FOR PHASE I HOUSING DEVELOPMENT;
AUTHORIZING THE CITY MANAGER TO SEEK APPROVAL
FROM THE DADE COUNTY COMMISSION FOR USE OF
REDEVELOPMENT TRUST FUND REVENUES FOR THESE
PURPOSES.
WHEREAS, the City Commission, by Resolution No. 85-742,
authorized the execution of a Promissory Note for a Section 108
Loan in the amount of $5058,400 for Phase I land acquisition for
the Southeast Overtown/Park West Community Redevelopment Project;
and
WHEREAS, the City Commission, by Ordinance No. 10305,
appropriated monies from the Southeast Overtown/Park West
Redevelopment Trust Fund for the purpose of making an interest
payment of $219, 456 on a U.S. HUD Section 108 Loan for Phase I
land acquisition and $100,000 _ for marketing support and
associated planning activities for Phase I housing development,
which has not been expended but held in the trust fund; and
WHEREAS, an interest payment in an amount not to exceed
$489,449 is due on the aforementioned Section 108 Loan on .August
01, 1988; and
WHEREAS, marketing funds in an amount not to exceed
$45,000 are needed to support Phase I housing development as part
of the implementation activities for the Southeast Overtown/Park
West Community Redevelopment Project; and
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
CITY COMMISSION
MEETING OF
MAY pp19 .19888
ION No. Q8-74 69.
0
Aedevelopffiett
Project,
from
which funds
may be
appfopti&ted to
ab,jer certain
pt6jeot
costs;
including
project
financing Costs
and other project implementation expenses; and
WHEREAS, the Southeast OvertoWh/Patk West Redevelopment.
Trust Fund contains sufficient balances to allow ditswa to be made
from said Fund for these specific project activities; and
WHEREAS) the City Commigsiono by Resolution No, 83-187o
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;
THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE.,
CITY OF MIAMI, FLORIDA:
SECTION 1. The amount of $534,449 is hereby allocated
from the Southeast Overtown/Park West Redevelopment Trust Fund
for the following. purposes:
(a)'_ :$489,449 for a ..HUD Section 108 Loan interest
payment due August 01,- 1988; and
(b) $450000 to be used to provide marketing support
and related redevelopment planningactivities for
the implementation of Phase I housing -development
in the Southeast Overtown/phrk West Community
Redevelopment Project".
SECTION 2. The City Manager is hereby, suthorized to
seek approval from the Dade County Commission for the
PASSEb ANb ADOPTEb 'trig 19thdgy 6f
i
w
XAVIER L. 2ARE MAYOR
ATTEST:
AYHIRAIo CITY CLERK
BUDGETARY REVIEW & APPROVAL
ANOHAR SU , DIRECTOR
DEPARTMENT MANAGEMENT &
BUDGET
APPROVED AS TO FORM AND
CORRECTNESS:
r
CIg A. OUGHERTY
CITY ATTORNEY
PREPARED AND APPROVED BY:
OBERT F. CLARK
CHIEF DEPUTY CITY ATTORNEY
FINANCIAL REVIEW & APPROVAL
AC E. GARCIA, DIRECTOR
DEPA TMENT OF FINANCE
CITY OF MIAMI. FLORIDA
INTER -OFFICE MEMORANDUM
To: Honorable Mayor and Members
of the City Commission
FROM: Cesar H. Od i o
City Manager
RECOMMENDATION:
DALE: MAY 1 s 1988 0"LL
subject: PY 1988 Southeast
Overtown/Park hest
Redevelopment Trust
Fund Budget
REFERENCES:
ENCLOSUR05/1 9/88 Commission Mtg.
It is respectfully recommended that the City Commission approve
the attached resolution approving FY 1988 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 and marketing support and associated
redevelopment planning activities for Phase I housing
development; authorizing the City Manager to seek approval from
the Dade County Commission for use of Redevelopment Trust Fund
revenues for these purposes.
BACKGROUND:
The Department of Developm'ent has analyzed the need for this
action, which represents the first use of tax increment revenues
derived from a redevelopment project within the City.
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 HUD CDBG entitlement funds and is required to be totally
repaid with the issuance of a tax increment revenue bond (TIRB)
by 1992 at the latest.
An interest payment of $489,449 due on the Section 108 federal
loan on August 01, 1988 is a required part of the Promissory Note
Obligations. The interest amount is determined based on a
variable rate keyed to U.S. Treasury Obligations. Repayment of
principal, estimated to be between $1.9 million to $2.0 million,
must be made on August 01, 1989. By 1989 revenues to the
Redevelopment Trust Fund are projected to be at least $1,400,000
(Appendix B). This is sufficient to allow the issuance of a tax
increment revenue bond, which will retire the entire Section 108
Loan.
'Ll-/
A8-4s9
0
Honorable Mayor and Members
of the City Commission
Page 2
In addition to the Section 108 Loan interest payment, $45,000 is
needed to fund an aggressive marketing campaign and associated
planning activities to support the Phase I housing development,
which is scheduled to be under construction in 1988 and seeking
rental occupancy and sales during FY 1988-89. On July 23, 1987
the Miami Commission appropriated (Ordinance No. 10305) $100,0000
to' fund a marketing campaign and other related planning
activities, which has not expended but held in the trust fund.
The total proposed expenditures of
$534,449 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
1985 Tax Year. Tax increment
revenues for Tax Year 1988 are added
$470, 123 by January 01,
1988, bringing the total tax increment revenues to $858,206 by
that date. For Tax Year 1989,
tax increment revenues are
expected to climb to at least $1.5
million with the addition of
the Courthouse Square Office Tower
to the tax digest and the
receipt of the first payment in lieu
of taxes from the operations
of the Sports Arena.
The Interlocal Agreement between the City and Dade County for
this project, authorized by the City Commission by Resolution No.
83-187, requires the City to obtain County approval for any
budgeted appropriations from the Redevelopment Trust Fund.
At tachments:
Appendix A
Appendix B
Proposed Resolution
F
88-46 8
SOUTHEAST OVERTOWN/PARK WEST REDEVELOPMENT PROJEOT
TAX INCREMENT TRUST FUND
Fy 1988 BUDGET
AMOUNT PAYMENT
ITEM APPROPRIATED DUE DATE STATUS
rrrrY �� r rrti rr a. �i G�Yir.rrrrr Gi �rif� ray rrr ��ri�� �rrrrr fiirrrr� r rrv�lr L` iG irOr.ti GTiG3air rr
U.S HUD SECTION 108
$21 45f 08/01/87 PAID
LOAN PAYMENT
9,
SEOPW PHASE I MARKETING
& PLANNING ACTIVITIES
$1000000
- N/A
HELD IN .TRUST ACCT.
U.S HUD SECTION 108
$489,449
08/01/88
SUBJECT TO CITY
LOAN, PAYMENT
COMMISSION -APPROVAL
SEOPW PHASE I MARKETING
$45,000
N/A
SUBJECT TO CITY
& PLANNING ACTIVITIES
COMMISSION'APPROVAL
TOTAL APPROPRIATIONS.
,$853,905
---------------------------------------------------------
FUNDS AVAILABLE IN
-------------------
-SEOPW TRUST ACCOUNT
$858,206
3
x
98-469
APPENDIX B
SOUTHEAST OVERTOWN/PARK WEST REDEVELOPMENT PROJECT
TAX INCREMENT REVENUES - PROJECTION TO 1990
05/03/88
TOTAL
TRUSTFUND
PROJECT
NET
REVENUES
CUMULATIVE
AREA
VALUATION
•APPLICABLE*
TOTAL
REVENUE
FROM THE
CUMULATIVE
PROJECTED (3) NET TOTAL
TAX YEAR
VALUATION
INCREMENT
MILLAGE
REVENUE
(.95xTOTAL)
ARENA
BALANCE
EXPENDITURES BALANCE
sscsxsxaaasaasasssssxxsaaaass:zsasasasa=sszsssazxsszszzzsssszzss=sxxsssasszassssssaxssssssszszsssasxsszzsssszsssssssasassssaa
�`
1982/83
$78,305,502
Base Year
N/A
N/A
N/A
0
N/A
0 0
1983/84
$77,869,266
($436,236)
- -
N/A
- -----------
N/A
----
N/A
- - ----
0
------------
0
-- --
D
0------------------------------------------------------------------------------------------------------------------------------
1984/85
$77,442,148
($863,354)
N/A
N/A
N/A
0
0
0 O`
1985/86 (1)
$86,762,119
$8,456,617
17.1350
$144,904
-
1985/86 (2)
$37,461,910
Base Year
N/A
N/A.
N/A
Total
$86,762,119
$8,456,617
17.1350
$144,904
$137,659
0
$137,659'
011 $137,,65,9'
------------------------------------------------------------------------------------------------------------------------------
1986/87 (1)
$97,745,067
$19,439,565
17.1290
$332,980
1986/87 (2)
$46,898,016
$9,436,106
17.1290
$161,631
Total
$144,643,083
$28,875,671
17.1290
$494,611
$469,881
0
$607,540
$3T9,456 $288,084
1987/88 (1)
$98,167,995
$19,862,493
16.8945
$335,567
1987/88 (2)
$46,890.953
$9,429,043
16.8945
$159,299
Total
$145,058,948
$29,291,536
16.8945
$494,866
$470,123
0
$758,206
$589,4491 $T68,,758
-----------------------------------------------------------------------------------------------------------------------------
1988/89**
$185,311,895
$69,544,483
16.9000
$1,175,302
$1,116,537
$300,000
$1,585,294
$1,986,000, ($400,706)
------------------------------------------------------------------------------------------------------------------------------
M1989/90***
$203,843,085
$88,075,673
16.9000
$1,488,479
$1,414,055
$300,000
$1,313,349
-----------------------------------------------------------------------------------------------------------------------------
1
�P
Q:
* Applicable
millage is
(a) County General
Fund + (b)
City General Fund.
** City estimates
a 5% increase
in total
area valuation
in 1988,
plus $33,000,000 valuation for Courthouse Genter.
***City estimates
for years.after
1988 are
based upon
estimates
of a 10% increase in
total area valuation per year-
1 1982/83
Original
2 1985/86
Addition
s. 3 1986/87
Expenditurs include
$100,000
appropriated
for marketing
which has
not been
expended and
funds are held
in the
trust fund.