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HomeMy WebLinkAboutR-86-0868T-86-888 /ay�1T §X�rS! h ,F - A 'f� ! F'�-r J fir-, - / F; 1 Pi T "(-) F T -n , d GENPATITIT f Fyorn Ply PTSE'-AT PAT GJ — EAST, T"— FT,OR T DA FAgT MAST F.A T T -POAn TRACKS AND R T (-m-KA Y ON 'T t*'F S T, T- 3 9 5 ON $OiTT'N, AIM FORTS 20TS S'7 F;'FT M TFE MORT71, DATIRD wrTr&KrER 19 R 6 , A m. rT CF wivicn is ATTAam t "RFTo AnD Khnr A FART FTFTt F; NAXTNG CFRTATN FTNPTPG1; or FACT AND CONC USTONS OF T- 4W; F V'M- MK-V,'"T AT'PROVAT, OF 'PBS OMNI AFFA RRn Tr0PKF?'WT PJAN A ) 79 HUrNG OF CFRTATN FTN'ATP;EIS Or rhCT MW CONCLUS i OKS Or T,?VK TO 77M IROA-RD Or COUNTY GUST SS I WERS MR K77ROPOLI TAN MM. CX)MZTY, WHEREAS, the Legislature of the State of Florida enacted the Community Redevelopment Act of 1969 (hereinafter the "Act") as is presently contained in Part III of Chapter 163, Florida Statutes, as amended; and WHEREAS, Section 163.335 F.S. recites: (1) It is hereby found and declared that there exist in counties and municipalities of the state slum and blighted areas whict. constitute a serious and growing menace, injurious to the public health, safety, morals, and welfare of the residents of the state; that the existence of such areas contributes substantially and increasingly to the spread of disease and crime, constitutes an economic and social liability imposing onerous burdens which decrease the tax base and reduce tax revenues, substantially impairs or arrests sound growth, retards the provision of housing accommodations, aggravates traffic problems, and substantially hampers the elimination of traffic hazards and the improvement of traffic facilities; and that the prevention and elimination of slums and blight is a matter of state policy and state concern in order that the state and its counties and municipalities shall not continue to be endangered by areas which are focal centers of disease, promote juvenile delinquency, and consume an excessive proportion of its revenues because of the extra services required for police, fire, accident, hospitalization, and other forms of public protection, services, and facilities. (2) It is further found and declared that certain slum or blighted areas, or portions thereof, may require acquisition, clearance, and disposition subject to use restrictions, as provided in this part, since the prevailing condition of decay may make impracticable the reclamation of the area by conservation or rehabilitation; that other areas or portions thereof may, through the means provided in this Dart, be susceptible of conservation or rehabilitation in such a manner that the conditions and evils enumerated may be eliminated, remedied, or prevented; and that salvageable slum and blighted areas can be conserved and CITY COMMISSION MEETING OF OCT 23 1990 IN No. C3(;-8 e 62 rehabilitated through appropriate puk}Iic action as herein alit hori ed and the c-ooperatSon and voluntary action of the others and tenants of property in such areas, (3) It is further found ancs 6,nclared that the powers conferred by this part are for public uses for which public, money may he expended and the power of eminent domain anO police power exercised, and the necessity of the public interest for the provisions herein enacted is hereby declared as a matter of legislative determination, (4) 1t is further found and declared that the preservation or enhancement of the tax base from which a taxing authority realizes tax revenues is essential to its existence and finan- cial health; that the preservation and enhancement of such tax base is implicit and the purposes for which the taxing authority is established; that tax increment financing is an effective method of achieving such preservation and enhancement in areas in which such tax base is declining; that community redevelopment in such areas, when - complete, will enhance such tax base and provide increased tax revenues to all affected taxing authorities, increasing their ability to accomplish their purposes; and that the preserva- tion and enhancement of the tax base in such areas through tax increment financing and the levying of - taxes by such taxing authorities therefor and the appropriation of funds to a redevelopment trust fund bears a substantial relation to the purposes of such taxing and is for their respective pur- poses and concerns. . . . _ (5) It is further found and declared that there exists in counties and municipalities of the state a severe shortage of housing affordable to residents of low or moderate income, including the elderly; that the existence of such conditions affects the health, safety, and welfare of the residents of such counties and municipalities and retards their growth and economic and social development; and that the elimination or improve - went of such conditions is a proper matter of state policy and state concern and is for a valid and desirable public purpose; and WHEREAS, the Act authorizes counties and municipalities in the State of Florida to create community redevelopment agencies and to prepare community redevelopment mans for certain defined areas within their boundaries, to be designated as community redevelopment areas and within which community redevelopment projects may be undertaken to eliminate and prevent the develop- ment and spread of slum and blighted areas; and WHEREAS, the Board of County Commissioners for Metropolitan Dade County, Florida is the duly empowered and authorized govern- - 2 - P• • • 1 • Ilk, ing body of Dade County for purposes of approving such plans and programs; and WHEFFAS, the Dade County Board of County Commissioners found the area bounded by the Florida East Coast Railroad right--of-May on the West, Interstate 1-395 on the South, Biscayne Boulevard can the East, the North right-of--wAy line of N.ri_ 17th Terrace from Biscayne Boulevard to N.F. 2nd Avenue on the North, with an extension from N,F. 2nd Avenue along the south right -of --way line of N.W. 18th Street on the North until joining the F.E.C. Rail- road right -of --way, to be slur and/or blighted as defined in the Community Redevelopment tact of 1969, pursuant to Dade County Resolution No. R--39--81; and WHEREAS, substantial areas surrounding that already declared to be slum and blighted are also in need of community redevelopment (Specifically, the area bounded by North 20th Street on the North, Biscayne Bay on the East, Interstate I-395 on the South, and the F.E.C. Railroad right-of-way on the West — (hereinafter "Omni Area")); and WHEREAS, the City of Miami wishes to exercise the powers and duties conferred upon municipalities by the Community Redevelop- ment Act of 1969, as amended, in order to eradicate existing slum and blighted conditions in the Omni Area, and therefore, wishes to satisfy the preliminary steps prescribed in the Act; and WHEREAS, Section 163.410 F.S. provides: In any county which has adopted a home rule charter, the powers conferred by this part shall be exercised exclusively by the governing body of such county. However, the governing body of any such county which has adopted a home rule charter may, in its discretion, by resolution delegate the exercise of powers conferred upon the county by this part within the boundaries of a municipality to the governing body of such a municipality; and WHEREAS, the City of Miami Commission authorized the j of an Omni Area Redevelopment - preparation �pment Plan by Motion 86-634, on July 26, 1986; and - WHEREAS, the City of Miami Planning Department and Depart-, i ment of Development jointly prepared an Omni Area Redevelopment Plan (hereinafter the "Plan"), dated September 1986; and - 3 - 11 WHEREAS, the City of Miami Planning Advisory Poard approved the Plan, in principle, at a regularly scheduled meeting on October 1, 1986; and WF3F-REAS, in order to create an n;-,ni Recsev(,l.oM- ent Area and to obtain the reoevelop-nent powers conferred on the County by the Act, the City of Miami trust approvr a community redevelopment plan for the Omni. Area, make a ser.iss. of f3ndinas of fact and conclusions of Saw, and must. request recommendations of approval of plans and the makina of certain findincts and conclusions by the Board of County Commissioners for Metropolitan Dade County. NOW, THEREFORE, PF IT RESOLVED BY THE COM11ISSION OF THE CITY OF MIAMI OF rLORI DA Section 1. The Commission approves, in principle, the Omni Area Redevelopment Plan, dated September 1986, a copy of which is attached hereto and made a part hereof as Exhibit A, for an area bounded generally by Biscayne Bay on the East, the F.E.C. Railroad right-of-way on the West, Interstate I-395 on the South, North 20th Street on the North, a legal description of which is attached hereto as Exhibit B. Section 2. The Commission finds, determines, and declares that the Omni Area Redevelopment Plan conforms with the Miami Comprehensive Neighborhood Plan. Section 3. The Commission finds, determines, and declares that many slum and blighted areas exist in the section of the City of Miami comprising the area described in Section 1 of this Resolution, above. Section 4. The Commission finds, determines, and declares that rehabilitation, conservation, or redevelopment, or a combination thereof of the area described in Section 1 of this Resolution, is necessary and in the interest of the public health, safety, morals, or welfare c!L the residents of Dade County and the City of Miami. Section 5. The Commission finds, determines, and declares that the matters set out in the foregoing recitals are true and - 4 - Section 6. The Commission recommends to the Beard of County Commissioners for Metropolitan Dade County, Florida that it approve the Omni Area Redevelopment Plan and take all appropriate action to declare the Omni Area, as described in Section l of this R€sclution, to be a Community Redevelopment Area and to make all appropriate delegations of responsibility to the City of Miami of all or some powers conferred on Dade County by the Community Redevelopment. Act of 1969, as amended, to be exercised only within the Community Redevelopment Area defined in Section 1 of this Resolution. Section 7. The Commission extends support to joint City/County redevelopment efforts in the Omni Area and directs the City Kanager, City Attorney, and Department of Development to work jointly with the metropolitan Dade County to implement the Omni Area Redevelopment Plan. PASSED AND ADOPTED this ZI day of fiber , 19 VIER L. SUAREZ MAYOR ATTEST MATTY HIRAI, CITY CLERK PREPARE GF4 D; AND APPROVED BY: ji., ` ROBERT F . CLERK CHIEF DEPUTY CITY ATTORNEY TO FORM AND CORRECTNESS: uv�. s.s rs • ✓W w. CITY ATTORNEY M 5 4. 40 1 LEGAL Dr scR im6W All that portion of the following listed record plats lying within the area bounded by the Florida East Coast Railroad right--of-way on the West. the Northerly right-of-way line of 1-395 on the South, the Westerly shore of Biscayne Bay on the East and the Southerly right-of-way of "j, 20 Street on the North: Plat N67T Plat Book Page The Causeway Fill 5 120 First Addition to Serena Park 80 8 Resubdivision of Pershing Court and Walden Court 4 148 Serena Park 76 86 Pershing Court 4 147 Malden Court 4 148 1/2 Walden Court First Addition 6 23 Rickmers Addition Amended 4 149 Windsor Park Third Amended 4 145 Windsor Park Second Amended 4 123 The Villa La Plaisa►ece 4 114 Boulevard Tract 100 65 Belcher Oil Company Property 34 29 The Garden of Eden 4 12 Nelson Villa and Garden of Eden Resubdivision 9 174 Nelson Villa and Garden of Eden Amended 30 20 Amended Map of Nelson Villa Subdivision 4 81 Biscayne Park Addition Amended 4 22 Rice and Sullivan Subdivision 4 64 Amended Plat of Miramar Pura 33 18 Miramar Third Amended 5 4 Biscayne Park Addition 2 24 Replat of a Portion of Nelson Villa Amended 56 69 ASC Tract 89 21 Margaret Pace Park (Unplatted) _ Coral Park 2 66 Resubdivision of Coral Park 4 106 Grand Union Replat 76 78 Mary Brickell Subdivision B 9 Windsor Park 3 147 Rickmers Addition Amended 3 2 Alice Baldwin Addition 1 119 Alice Baldwin. Jenny M. b Charles E. Oxar Subdivision Amended 8 67 Ward b Haviing's Resubdivision 4 185 Charles E. Oxar Block 24 Amended 3 101 Charles E. Oxar Block 15 Corrected 3 58 Alice Baldwin Block 1 Corrected 6 43 Lindsey Hopkins Education Center 84 48 Heyn Prop. Inc. Resubdivision 6 93 North Miami A 49 1/2 Lindsey Hopkins Educational Center North Parking Lot .93 90 T.W. Palmers Resubdivision 4 60 • e Plat Ala_ Book Page W.T. Heslington Subdivision 0 97 City of Miami Cemetary 2 16 San Jose: 3 158 Hiles Court Fesubdivision 32 36 Fire Station Site 1972 93 42 Seitter Addition Amended 2 60 Style Accessories Subdivision 62 6 Replat of Lot 2, North Miami 57 69 Omni International 102 3 Plaza Venetia 107 91 Herald Park 121 4 Bay Serena 7 135 Replat of Johnson and Waddell 50 15 Johnson and Waddell 6 53 Jefferson Addition 108 55 Biscayne Federal Plaza First Addition 116 7 Amended Plat of Les Violins 109 16 Biscayne Federal Plaza Amended 109 77 Replat Biscayne Federal Plaza 103 60 and all that portion of any unsubdivided lands lying in Section 36, Township 53 South, Range 41 East and Section 31, Township 53 South, Range 42 East, lying within the area defined above, and all that portion of any street, avenue, terrace, lane, way, drive, court, place, boulevard or alley lying within the area defined above and any other subdivisions, not listed above, lying within the above defined area. M:H58.q I + • • • • • ! • �4'Anrrt. Wd 1 OrbREC ' CLERK i�B3 DEC CCUT t�(O COU14TY COURTS -5I a G'Rilttk �rnurollusr 'j I 1 ' ; "-December 4, 1986 ROOM "41.242 SEVENTY-THREE WEST FLAGLER MIAMI. rLORIDA 3313O TELEPHONE 13051 375-1188 HON. MATTY HIRAI, City Clerk City of Miami 3500 Pan American Drive P. 0. Box 330708 Miami, FL 33233-0708 Re: OMNI AREA REDEVELOPMENT PLAN Dear Ms. Hirai: I wish to acknowledge receipt of your letter, subject as above, in which you submitted a copy of Resolution No. 86-868, passed and adopted by the City of Miami Commission on October 23. 1986. Your letter and Resolution will be forwarded to Ray Reed, Chief, County Clerk Division, Suite 210, Metro Dade Center, for processing in accordance with your request. If I may be of further service, please let me know. Sincerely, f RICHAN P. BRINKER Clerk, Circuit & County Courts in and for Dade County, Florida RPB/fe cc: Ray Reed, Chief, County Clerk Division with Attachments 1k aflmfluo November 179 1986 JkTT1 HtR M ctt� c Ioi OtPLIT1 C17N cltpt'.' Rotwo t ImOv. Go,ws t„ M, tittle I►r•!i;RIU S00a 10. Ni nd",' . llllr,e Inci.r�f.� STAlt SLIT Mr. Richard P. Brinker, Clerk 240 Dade County Courthouse 73 hest Flagler Street Miami, Florida 33130 RE: OMNI AREA REDEVELOPMENT PLAN Dear Mr. Brinker: Enclosed herein please find a copy of Resolution No. 86-868, passed and adopted by the City of Miami Commission at its meeting held on October 23, 1986, which is self—explanatory. Please distribute one copy of said resolution to the members of the County Commission. Thank you for your continued cooperation. If you have any questions, please do not hesitate to call. r fP'�"'�'RF�-f�ifl�'FG:1� f�l1�F��►�.1�F��[1F� TV - Honorable Mayor and Members of the City Commission of-rw OCT 16 1986 � �PPPOVK IN rRINCIPLE OF THE OMNI RRFIA: PF'DEYELOPMENT PLAN PI!Qt RfrlRR CVW Cesar H. Odio CITY COM ISSION MEETING, City Manager [Nc40"vF'trF0CTOBER 23, 1986 It is recommended that the City Commission approve in principle, the Omni Area Redevelopment Plan dated September 1986, for the area bounded generally on the south by I-395, on the west by the Florida East Coast railroad right-of-way, on the north by N.E. 20th Street and on the east by Biscayne Bay, a copy of which is attached here to and made a part thereof; making certain findings of fact and conclusions of law; directing the Clerk to transmit the resolution; and making a recommendation for approval by the Board of County Commissioners, per the attached resolution. The Omni Area Redevelopment Plan was prepared in response to a request by the City Commission by Motion 86-•634, dated July 24, 1986. The purpose of preparing this redevelopment plan is to create a tax increment financing district that would generate funds to assist with economic revitalization in the Omni Area. Approximately $1.5 million in tax increment will be added to the tax rolls starting January 1, 1987, from the new Venetia condominium building. This revenue can be used annually for capital improvements or used to support a bond issue of $11.5-13 million for a major economic revitalization project. The plan recommends zoning changes, transportation improvements, open space improvements, and an historic preservation plan. (See the attached executive summary). The implementation program is generalized at this time, providing a range of alternative ways of utilizing public resources (principally tax increment revenues) to leverage private investment. When a specific redevelopment strategy is identified at a later date, the Redevelopment Plan will be amended. Motion 86-634 also instructed the City Manager to inform the City Commission as to the financial consequences to the City at large of creating a tax increment district in the Omni Area. An analysis is attached hereto. CHO/SR Attachment 11 ciry or M IAN41. 1'L_OPIDh 114TER-OFFICE MF_MORANDUM TO. Honorable Mayor DATE: October 15, 1986."`W: and Members of the City Commission sus,Fcr Financial Impli.cati.ons - Omni Area Redevelopment FROM: REFERENcrx: (Related to %igenda Item Cesar H. Odio October 23, 1986 Commission City Manager ENcLosuREs: Meeting --4191A The City Conur,ission, by ''asolution 86-634 (adopted July 24, 1986), requested the City Manager to prepare a Community Redevelopment Plan for the Omni Area. This plan, now prepared, is scheduled for Commission review at the October 23, 1986 Commission meeting, be main action being the designation of the Omni Area as a Community Redevelopment Project under Chapter 163 of the Florida Statutes. Resolution 86-634 also requested that an analysis of the financial impact of the redevelopment plan be supplied to the Commission at the time the plan is reviewed. This memorandum provides that analysis. Summary Conclusions The only specific public financial commitment being made by the designation action is the commitment of future tax increment revenues to finance the redevelopment actions. However, with the exception of a projected 1987 increment from the Plaza Venetia Project, the area is stagnant, with an established trend of no growth in valuations. In fact, the project area total valuation declined by 2.3 percent between 1985 and 1986. Therefore, it is concluded that any near -term future valuation increments beyond 1987 will likely be created exclusively by the redevelopment designation and redevelopment actions. Shoup the trends discussed in this memorandum apply to the future, there will be no costs (in diverted tax revenues) to the anticipated general funds of the City and County in proceeding with this designation. Analysis The most specific public financial commitment that accompanies the designation of the Omni Area as a Community Redevelopment Project is the tax increment commitment. For an extended period, the City and County may divert future increases in project area property tax revenues generated by the designated City and County mill levies to fund a variety of redevelopment actions. . � :i Honorable Mayor and Members of the City Commission Page 2 The future financial costs from diverting future increases in revenues from the general funds of the City and County cannot be precisely determined at this point, since the following must be known: 1. Future valuation and revenue trends for the area without redevelopment designation and redevelopment actions proceeding. 2. Future valuation and revenue increases for the area as a result of redevelopment designation and redevelopment actions. However► it may be possible to roughly predict the above valuation and revenue change by looking at the current trends in total valuation of the area and by looking at the experience of the impact of redevelopment designation and redevelopment actions on the Southeast Overtown/Park West Redevelopment Project Area valuations. Aggregate valuations for the Omni Area for the past three years show no growth in valuation and, in fact, a decrease of 2.3 percent occurred for the tax year 1986. This indicates a less - than -healthy situation, since the area should have at least increased with normal inflation on an annual basis. With very little new private investment occurring (or planned) in the area, and with vacancies commonplace, significant increases in area valuation will likely not occur in the near -term future. In fact, the decrease shown for 1986 may continue as a long-term trend. However, with redevelopment designation and effective redevelopment -inducing actions taking place, the area valuations can again be expected to increase. The increases will come from actual new private capital investment and from general across- the-board increases in all properties based upon enhanced locational values resulting from the redevelopment attention being directed to the area. The above phenomenon is exactly what occurred in the Southeast Overtown/Park West Redevelopment Project. During the first two years after designation the aggregate valuation for the area continued to decline. However, in 1984, when actual redevelopment activity began in the area, valuations began to increase. During the last two tax years (1985 and 1986), valuations have increased at an annual rate of 12 percent, an increase exclusively attributable to the public redevelopment attention and the resultant increased locational desirability of the area. Honorable Mayor and Members of the City Commission Page 3 Should the above situation be repeated with the Omni Area redevelopment designation and redevelopment actions, valuation increases comparable to those achieved in the Southeast Overtown/Park West Area could be expected. With a 1986 valuation base of $580 million, a 12 percent increase annual increase would create a valuation of $649 million and a valuation increment of $69 million. This would generate approximately $1.3 million in tax increment revenues. The most basic and important point in assessing financial impacts ig that without redevelopment, the Omni Area could quite possibly remain stagnant or continue its current decline, thus generating no new tax revenues to the City or County. Wherefore, any future tax revenue increases for tax increment redevelopment will likely come only are a result of redevelopment designation and redevelopment actions. If the above analysis proves correct, the effective costs of the proposed tax increment -funded redevelopment actions will be totally borne by the redevelopment itself, since no tax revenues would have occurred without tax increment redevelopment designation to be diverted from the flowing to the general funds of the City and County. The only exception of significance is the expected addition of the Plaza Venetia project to the tax digest for tax year 1987, which is an increase that obviously will occur regardless of redevelopment designation and which will add approximately $82 million to the tax digest. This will result in a net increase in total valuation for the Omni Area for 1987 of $68 million, if the balance of the area declines an additional 2.3 percent, as it did for 1986. The $68 million would generate approximately $1.3 million to the tax digest. Redevelopment does not necessarily increase public service costs. It is possible, however, that the redevelopment of the Omni Area may bring new activity requiring increased levels of public services. It is recommended that the City's Department of Management and Budget monitor the redevelopment activity to document this possibility. If at any point in the redevelopment process added service costs do occur, it is recommended that amounts equal to those added costs be subtracted from the tax increment revenues flowing to the Redevelopment Trust Fund to supplement the general revenues utilized to provide such services. • 4 : • EXECUTIVE Stolwy Substantial redevelopment has occurred in the Central Business District of Downtown Miami and Brickell which has resulted in significant spin-off development. This redevelopment pattern is not evident , however, in the Omni area located just north of the Central Business District (CBD). Although some of the parcels in the area have been improved on a scale comparable to Brickell and the CPD (e.g., the Omni/Venetia complex, one of the largest and most substantial concentrations of development constructed by a single developer within the State of Florida in recent. years), none have generated significant redevelopment spin-offs, Instead, the developers of these projects have been confronted with high vacancy rates and the highest petty crime rate in the City of Miami, a phenomenon that appears to center almost entirely around the Omni, a mixed -used development constructed in the mid 1970's. March of the land in the area, which is bounded by I-395 to the south, the FEC right-of-way to the west, N.E. 20th Street to the north and Biscayne Bay to the east, remains underdeveloped and in blighted condition, particularly west of N.E. 2nd Avenue. The Omni Area Redevelopment Plan examines several development alternatives, of varying degrees of public involvement, that should be considered in order to stimulate economic development and investment activities in the area. The Omni Area Redevelopment Plan proposes a comprehensive and coordinated approach to the revitalization of the area with the following recommendations: 1. Economic Development Activities. a. Identification of a development strategy that will result in the redevelopment of the area's significant holdings of consolidated, vacant or underutilized land, thereby bringing new economic vitality to the area and to the City. In order to facilitate and expedite the revitalization process, the City will consider undertaking land acquisition activities, with priority being given to large parcels which require a minimum of residential or commercial relocation. In the event that relocation proves necessary, this plan will be amended with all relocation activities fully conforming to the Uniform Relocation Act of 1970. b. Establishment of a Tax Increment District. The plan recommends the establishment of a tax increment district to fund needed public improvements and programmatic activities that will lead to the revitalization of this area. Funds generated through the establishment of the district could be used for street improvements and other public infrastructure improvements (including parking structures), land acquisition, and the administration of City -sponsored economic revitalization program in the area. It is important to note that tax increment funds are generated from property value increases and not through tax rate increases. Instead, the tax base is theoretically frozen at a particular tax year with any future increases in property values being collected and spent exclusively within the area. If the tax • 0 % * b 2. increment district is established prior to January 1, 1987, first year funding would be estimated at. $1.5 million (due to Plaza Venetia's entrance into the tax rolls at that time) . The City's financial advisors have suggested th;t up to $13 million could be floated in band mmnnies as a reswl t of the increment. C. Expansion of economic activity within the area through the recruitment of new economic anchor uses currently not present in the area, but for which market, support can be identified. Special attention gill be for,used on attracting new businesses to now vacant buildings. The range of uses to be researched include port -related activities, filet/media and fashion industries, exhibition hall and downtown support services. d. Utilization of existing and potential economic development incentives contained in the newly established Florida Enterprise Zone Act. Modification of Existing Zoning. a. Creation of a SPI-6.1 zoning district to be applied to the area bounded by Biscayne Bay, N.E. 13th Street, North Bayshore Drive, and Margaret Pace Park. This new district should permit high intensity mixed use development similar to SPI-6; but subject to inclusion of housing on -site or payment in -lieu thereof to the City of Miami's Affordable Housing Trust Fund. b. Creation of a SPI overlay district for the CR-3/7 district north of N.E. 17th Terrace that would provide a floor area ratio increase up to a total FAR 2.41 for inclusion of housing on -site or payment inlieu thereof to the City of Miami's Affordable Housing Trust Fund. c. Creation of a SPI overlay district for the commercial zoning districts located west of N.E. 2nd Avenue that would contain special design guidelines to insure that the wide variety of commercial and light industrial uses permitted would not create adverse visual or physical impacts on one another. 3. Enhancement of Community Facilities and Services. a. Improvement of code enforcement and police protection in the area. b. Refurbishment of Biscayne Boulevard to create a visual and functional link between the Omni area and the rest of downtown and establishment of a gateway feature at N.E. 13th Street and Biscayne Boulevard. Encouragement of development of a (pedestrian level) sidewalk cafe district along Biscayne Boulevard between N.E. 15th and 17th Streets. c. Improvement of Bicentennial Park and the FEC Bayf ront tract to provide a sequence of visitor attractions linking the Omni area to the Central Business District. 4. Development of an urban landmark at the intersection of North Miami Avenue and M.E. 14th Street. e. Requirement for new developments to provide uninterrupted walkways along the Bay to establish a baywalk linkage betweFn Race park and Bicentennial Park. Provision of a pedFstrian crossing at MacArthur Causeway. f. Review of public right-of-ways at corners of N.E. 4th Avenue at N.E. lgth and N.E. 17th Streets for better utilization. Refurbishment of N.E. 14th Street east of N.E. 1st Avenue to create an east -west pedestrian corridor. g. Consideration of retaining Miramar -Elementary School to serve the high density residential development projected for the Omni and Edgewater neighborhoods. 4. Transportation Improvements. Numerous traffic studies have identified physical capacity improvements to the street system in order to relieve rush hour congestion, reduce vehicular turning movements, and promote lot assembly for redevelopment. The improvements, for the most part, would be limited to the use of existing public rights -of -way in order to minimize the social and economic impacts of extensive new acquisition programs. The recommended improvements include: 1. Construction of the planned Omni Extension of the Metromover system, with an additional station built to serve the Herald Plaza area (to be funded by the adjacent developer). 2. Reconstruction/redesign of the intersection of North Miami Avenue and NE/NW 14th Street to improve alignment. 3. Examination of the existing I-395 interchange (in the vicinity N.E. 1st Avenue and N.E. 2nd Avenue) for possible efficiency improvements. 4. Reconstruction of N.E. 2nd Avenue north of N.E. 13th Street and North Miami Avenue north of N.E. 17th Street to provide two northbound and two southbound through lanes with center turn lanes. S. Extension of N.E. 20th Street to Biscayne Boulevard from its present eastern terminus at N.E. 2nd Avenue through right-of-way acquisition and improvement. 6. Redesign/restriping of Biscayne Boulevard to improve traffic flow and maneuvers. • • • 46 7. Realignment of N.E. 14th Street east of North Bayshore Drive to eliminate off set intersection at North Bayshore and to connect to Herald Plaza. 8. If a convention center is constructed, its cost should include relocation of the Metromover guideway and station to serve the center. R PLANNING FACT SHEET APPLICANT City of Miami Planning Department: September 12, 1986 PETITION 3. Consideration of recommending approval in principle of the Omni Community Redevelopment Plan for the area generally bounded by Biscayne Bay on the east, Florida East Coast Railway right-of-way on the west, 1-395 on the south and N 20th Street on the north, which Community Redevelopment Plan includes acquisition and clearance, rehabilitation, relocation, right-of- way and other infrastructure improvements, capital improvement projects and which plan is in conformity with the Miami Comprehensive Neighborhood Plan. REQUEST To approve, in principle, the Omni Area Redevelopment Plan. BACKGROUND: This redevelopment plan was prepared in response to a request by the City Commission by Motion 86-634, dated July 24, 1986. The purpose of preparing a redevelopment plan is to create a tax increment financing district that would generate funds to assist with economic revitalization in the Omni Area. Approximately $1.5 million in tax increment will be added to the tax rolls starting January 1, 1987, from the new Venetia condominium building. This revenue can be used annually for capital improvements or bonded to provide $11.5-13 million for a major economic revitalization project. The Omni area is economically stagnant in spite of its close proximity to the Downtown Central Business District and the high density SPI-6 zoning incentives existing along Biscayne Boulevard. Several retailers have left the area in recent years, vacancies are high, and the petty crime rate is among the highest in the City. The Omni West area (located to the west of NE 2nd Avenue) is well located to act as a commercial service district for the downtown and the seaport, but has not experienced significant private sector investment in recent years due to blighted conditions and fragmented land ownership. The redevelopment plan is intended to reverse these declining trends. PAB 10/1/86 Item 9 • 0 ANALYSIS: RECOMMIENDATIONS PLANNING DEPARTMENT: PLANNING ADVISORY BOARD: The Omni Area Redevelopment Plan is based upon development policies identified for the area in the preliminary Downtown Miami Piaster Plan. The plan envisions a well balanced high density mixture of housing and corcial uses along the Biscayne Boulevard corridor with a high quality "uptown" image. The Onii Wrst, area (west of NE 2nd Avenue) is planned to he a service commercial district with industries that relate to downtown business, import-export, seaport services, and/or the fashion industry. The entire Omni area is also proposed to have a marketing theme and resulting concentration of uses related to the various aspects of the media. Anchored today by the Miami Herald/News and the Anna Brenner Meyer Telecommunications Center (operated by Dade County School System) the redevelopment strategy is to attract other business related to film, TV and radio broadcasting, advertising, publishing, photography, recording, etc. This "Media District" would bring a special focus to the Omni area without conflicting or competing with future development in other sectors of downtown. The plan recommends zoning changes, transportation improvements, open space improvements, and an historic preservation plan consistent with the above described policies and objectives. The implementation program is generalized at this time, providing a range of alternat—le ways of utilizing public resourcEs (principal:v tax increment revenues) to leverage private investment. When a specific redevelopment strategy is identified at a later _ date, the Redevelopment Plan will be amended. Approval. On October 1, 1986, approval was recommended by a vote of 9 to 0. PAS 10/l/86 Item V age ... ing body of Dade County for purposes of approving such plans and programs; and WHEREAS, the Dade County Board of County Commissioners found the area hounded by the Florida East Coast Railroad r i ght--of-W&y on the West, Tnterstate T-395 on the South, Biscayne Boulevard on the East, the i;orth right:--of-way line of N.E. 17th Terrace from Biscayne Boulevard to N.E. 2nd Avenoe on the I;orth, with an extension fr,i; N.E. 2nd Avenue along the south right-of-way line of N.W. 18th Street on the North until joining the r.rx . Rail- road right-of-way, to be slum and/or blighted as defined in the Community Redevelopment Act of 1969, pursuant to trade County Resolution No. R-39-81F and WHEREAS, substantial, areas surrounding that already declared to be slum and blighted are also in need of community redevelopment (Specifically, the area bounded by North 20th Street on the North, Biscayne Day on the East, Interstite I-395 on the South, and the F.E.C. Railroad right -of -Way on the West (hereinafter "Omni Area")); and WHEREAS, the City of Miami wishes to exercise the powers and duties conferred upon municipalities by the Community Redevelop- ment Act of 1969, as amended, in order to eradicate existing slum and blighted conditions in the Omni Area, and therefore, wishes to satisfy the preliminary steps prescribed in the Act; and WHEREAS, Section 163.410 F.S. provides: In any county which has adopted a home rule charter, the powers conferred by this part shall be exercised exclusively by the governing body of such county. However, the governing body of any such county which has adopted a home rule charter may, in its discretion, by resolution delegate the exercise of powers conferred upon the county by this part within the boundaries of a municipality to the governing body of such a municipality; and WHEREAS, the City of Miami Commission authorized the preparation of an Omni Area Redevelopment Plan by Motion 86-634, on July 26, 1986; and - WHEREAS, the City of Miami Planning Department and Depart- ment of Development jointly prepared an Omni Area Redevelopment Plan (hereinafter the "Plan"), dated September 1986; and - 3 - WHEREAS, the City of Miami Planning Advisory Poard approved the Plan, in principle, at a regularly scheduled meeting or# October 1, 1986, and WHEREAS, in order to create an Orns Aec3eve3opment Area and to obtain the redevelopment powers conferred on the County by the Act, the City of Mj arni Trust approve a corrmuni ty redevelopment plan for the Otani Area, make a series of findings of fact and conclusions of law, and rust request recommendations of approval of plans and the making of certain findings and conclusions by the Board of County Commissioners for Metropolitan Dade County, NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI OF FLORIDA Section 1. The Commission approves, in principle, the Omni Area Redevelopment Plain, dated September 1986, a copy of which is attached hereto and made a part hereof as Exhibit A, for an area bounded generally by Biscayne Bay on the East, the F.E.C. Railroad right-of-way on the West, Interstate I-395 on the South, — North 20th Street on the North, a legal description of which is attached hereto as Exhibit B. Section 2. The Commission finds, determines, and declares that the Omni Area Redevelopment Plan conforms with the Miami Comprehensive Neighborhood Plan. Section 3. The Commission finds, determines, and declares that many slum and blighted areas exist in the section of the City of Miami comprising the area described in Section 1 of this Resolution, above. Section 4. The Commission finds, determines, and declares that rehabilitation, conservation, or redevelopment, or a combination thereof of the area described in Section 1 of this Resolution, is necessary and in the interest of the public health, safety, morals, or welfare of the residents of Dade County and the City of Miami. Section 5. The Commission finds, determines, and declares that the matters set out in the foregoing recitals are true and - 4 - 0 Section 6. The Commission recommends to the Board of County Commissioners for metropolitan Dade County, Florida that it approve the Omni Area Redevelopment flan and take ml.l appropriate action to declare the Omni Area, as 6pGc_ribed in Section I, of this Resolution, to by a Carr?nun i ty Re6eve lopment Area and to make all appropriate delegations of responsibility to the City of PFiami of all or some Fnwers conferred on node County by the Community Redevelopment Act of 1969, as amended, to be exercised only within the Community Redevelopment Area defined in Section l of this Resolution. Section 7. The Commission extends support to joint City/County redevelopment efforts in the Omni Area and directs the City Manager, City Attorney, and Department of Development to work jointly with the Metropolitan Dade County to implement the Omni Area Redevelopment Plan. PASSED AND ADOPTED this 21 day of bar _, 19 VIER L. SUAREZ MAYOR ATTEST MATTY HIRAI, CITY CLERK PREPARED; AND APPROVED BY: G' ROBERT F. CLERK CHIEF DEPUTY CITY ATTORNEY APPRO S TO FORM AND CORRECTNESS: L CIA A. DOtIGHERTY CITY ATTORNEY • LEGAL. DE SCRIPT ION All that portion of the following listed record plats lying within the area bounded by the Florida East Coast Railroad right-of-way on the West, the Northerly right-of-way line of I-395 on the South, the Westerly shore Of Biscayne Bay on the East and the Southerly right-of-way of N,E, 20 Street On the North: Plat Nowe Plat Book Page The Causeway Fill 5 120 First Addition to Serena Park 80 8 Resubdivision of Pershing Court and Walden Court 4 148 Serena Park 76 86 Pershing Court 4 147 Walden -Court 4 148 1/2 Walden Court First Addition 6 23 Rickmers Addition Amended 4 149 Windsor Park Third Amended 4 145 Windsor Park Second Amended 4 123 The Villa La Plaisance 4 114 Boulevard Tract 100 65 Belcher Oil Company Property 34 29 The Garden of Eden 4 12 Nelson Villa and Garden of Eden Resubdivision 9 174 Nelson Villa and Garden of Eden Amended 30 20 Amended Map of Nelson Villa Subdivision 4 81 Biscayne Park Addition Amended 4 22 Rice and Sullivan Subdivision 4 64 Amended Plat of Miramar Plaza 33 18 Miramar Third Amended 5 4 Biscayne Park Addition 2 24 Replat of a Portion of Nelson Villa Amended 56 69 ASC Tract 89 21 Margaret Pace Park (Unplatted) Coral Park 2 66 Resubdivision of Coral Park 4 106 Grand Union Replat 76 78 Mary Brickell Subdivision B 9 Windsor Park 3 147 Rickmers Addition Amended 3 2 Alice Baldwin Addition 1 119 Alice Baldwin, Jenny M. & Charles E. Oxar Subdivision Amended 8 87 Ward & Havling's Resubdivision 4 185 Charles E. Oxar Block 24 Amended 3 101 Charles E. Oxar Block 15 Corrected 3 58 Alice Baldwin Block 1 Corrected 6 43 Lindsey Hopkins Education Center 84 48 Heyn Prop. Inc. Resubdivision 6 93 North Miami A 49 112 Lindsey Hopkins Educational Center North Parking Lot .93 90 T.W. Palmers Resubdivision 4 60 s 11 Plat Plaatt_Book Page N.T. Heslington Subdivision B 97 City of Miami Cemetary 2 16 San Jose 3 15e Hiles Court Fesubdivision 32 36 Fire Station Site 1972 93 42 Seitter Addition Amended 2 60 Style Accessories Subdivision 62 8 Replat of Lot 2, North Miami S7 69 Omni International 102 3 Plaza Venetia 107 91 Herald Park 121 4 Bay Serena 7 135 Replat of Johnson and Waddell 50 15 Johnson and Waddell B 53 Jefferson (addition 108 55 Biscayne Federal Plaza First Addition 116 7 Amended Plat of Les Violins 109 16 Biscayne federal Plaza Amended 109 77 Replat Biscayne Federal Plaza 103 60 and all that portion of any unsubdivided lands lying in Section 36, Township 53 South, Range 41 East and Section 31, Township 53 South, Range 42 East, lying within the area defined above, and all that potion of any streete avenue, terrace, lane, way, drive, court, place, boulevard or alley lying — within the area defined above and any other subdivisions, not listed above, lying within the above defined area. m:H58.q h e c garb W. Whthier CLERK "� �CI CU T /+UD COUNTY COURTS �Q �D"F t��unt� Lnuxtltauap ;.—December ���December 4, 1986 i ( ROOM r9.242 SEVENTY-THREE WEST FLAOLER MIAMI. FLORIDA 33130 TELEPHONE (3051 375-1168 HON. MATTY HIRAI, City Clerk City of Miami 3500 Pan American Drive P. 0. Box 330708 Miami, FL 33233-0708 Re: OMNI AREA REDEVELOPMENT PLAN Dear Ms. Hirai: I wish to acknowledge receipt of your letter, subject as above, in which you submitted a copy of Resolution No. 86-868, passed and adopted by the City of Miami Commission on October 23, 1986. Your letter and Resolution will be forwarded to Ray Reed, Chief, County Clerk Division, Suite 210, Metro Dade Center, for processing in accordance with your request. If I may be of further service, please let me know. Sincerely, J RICHA P. BRINKER Clerk, Circuit & County Courts in and for Dade County, Florida RPB/fe cc: Ray Reed, Chief, County Clerk Division with Attachments MATT1' HIR AI Cth C leii DEPLT1 CIT1 MPW, Rohrrr' F 71110c, Ge,orvt, ti1, [Ott!(' t%i,!ii. R,7T 1 CvIlie in:•.^ November 17, 1986 Nr. Richard P. Brinker, Clerk 240 Dade County Courthouse 73 West Flagler Street Niami, Florida 33130 RE: OMNI AREA REDEVELOPMENT PLAN Dear Mr. Brinker: Enclosed herein please find a copy of Resolution No. 86-868, passed and adopted by the City of Miami Commission at its meeting held on October 23, 1986, which is self—explanatory. Please distribute one copy of said resolution to the members of the County Commission. Thank you for your continued cooperation. If you have any questions, please do not hesitate to call. Vkytruly yours, Hirai'� City Clerk NH: sl }a ENC: s/s - r OFFICE Of THE CITY CLERK / City Hill/ 3500 Pan American Drive / P.O.Box 330706 / Miami, Florida 33233-0708 (30i� 579-oi11`. R Honorable Mayor and Members A*.m O h..t T 16 1906 of the City Comei ss i on wr poyn I N PR I NC I rLE OF THE OMNI KIA REDEVELOPMENT PLAN Cesar H. Odio CITY COWISSION MEETING, City Manager 9"CL011 "WO-OCTOBER 23, 1986 It is recommended that the City Commission approve in principle, the Omni Area Redevelopment Plan dated September 1986, for the area bounded generally on the south by I-395, on the west by the Florida East Coast railroad right-of-way, on the north by N.E. 20th Street and on the east by Biscayne Bay, a copy of which is attached here to and made a part thereof; making certain findings of fact and conclusions of law; directing the Clerk to transmit the resolution; and making a recommendation for approval by the Board of County Commissioners, per the attached resolution. The Omni Area Redevelopment Plan was prepared in response to a request by the City Commission by Motion 86-634, dated July 24, 1986. The purpose of preparing this redevelopment plan is to create a tax increment financing district that would generate funds to assist with economic revitalization in the Omni Area. Approximately $1.5 million in tax increment will be added to the tax rolls starting January 1, 1987, from the new Venetia condominium building. This revenue can be used annually for capital improvements or used to support a bond issue of $11.5-13 million for a major economic revitalization project. The plan recommends zoning changes, transportation improvements, open space improvements, and an historic preservation plan. (See the attached executive summary). The implementation program is generalized at this time, providing a range of alternative ways of utilizing public resources (principally tax increment revenues) to leverage private investment. When a specific redevelopment strategy is identified at a later date, the Redevelopment Plan will be amended. Motion 86-634 also instructed the City Manager to inform the City Commission as to the financial consequences to the City at large of creating a tax increment district in the Omni Area. An analysis is attached hereto. CHO/SR Attachment TO. Honorable Mayor and Members of the City Commission i'ROM- Cesar H. Odio City Manager CITY OF MI.AMI, FLORIDA INTER -OFFICE MEMORANDUM DATE: October 15, 1986 ALE` fuuECT: Financial Implications - Omni Area Redevelopment REFERENCED• ( Related to Agenda Item - October 23, 1986 Commission ENCLOSURES: Meeting The City Commission, by Resolution 86-634 (adopted July 24, 1986), requested the City Manager to prepare a Community Redevelopment Plan for the Omni Area. This plan, now prepared, is scheduled for Commission review at the October 23, 1986 Commission meeting, the main action being the designation of the Omni Area as a Community Redevelopment Project under Chapter 163 of the Florida Statutes. Resolution 86-634 also requested that an analysis of the financial impact of the redevelopment plan be supplied to the Commission at the time the plan is reviewed. This memorandum provides that analysis. Summary Conclusions The only specific public financial commitment being made by the designation action is the commitment of future tax increment revenues to finance the redevelopment actions. However, with the exception of a projected 1987 increment from the Plaza Venetia Project, the area is stagnant, with an established trend of no growth in valuations. In fact, the project area total valuation declined by 2.3 percent between 1985 and 1986. Therefore, it is concluded that any near -term future valuation increments beyond 1987 will likely be created exclusively by the redevelopment designation and redevelopment actions. Should the trends discussed in this memorandum apply to the future, there will be no costs (in diverted tax revenues) to the anticipated general funds of the City and County in proceeding with this designation. Analysis The most specific public financial commitment that accompanies the designation of the Omni Area as a Community Redevelopment Project is the tax increment commitment. For an extended period, the City and County may divert future increases in project area property tax revenues generated by the designated City and County mill levies to fund a variety of redevelopment actions. a Honorable Mayor and Members of the City Commission Page 2 The future financial costs from diverting future increases in revenues from the general funds of the City and County cannot be precisely determined at this point, since the following must be known: 1. Future valuation and revenue trends for the area without redevelopment designation and redevelopment action? proceeding. 2. Future valuation and revenue increases for the area as a result of redevelopment designation and redevelopment actions. However, it may be possible to roughly predict the above valuation and revenue changes by looking at the current trends in total valuation of the area and by looking at the experience of the impact of redevelopment designation and redevelopment actions on the Southeast Overtown/Park West Redevelopment Project Area valuations. Aggregate valuations for the Omni Area for the past three years show no growth in valuation and, in fact, a decrease of 2.3 percent occurred for the tax year 1986. This indicates a less - than -healthy situation, since the area ehould have at least increased with normal inflation on an annual basis. With very little new private investment occurring (or planned) in the area, and with vacancies commonplace, significant increases in area valuati-)n will likely not occur in the near -term future. In fact, the decrease shown for 1986 may continue as a long-term trend. However, with redevelopment designation and effective redevelopment -inducing actions taking place, the area valuations can again be expected to increase. The increases will come from actual new private capital investment and from general across- the-board increases in all properties based upon enhanced locational values resulting from the redevelopment attention being directed to the area. The above phenomenon is exactly what occurred in the Southeast Overtown/Park West Redevelopment Project. During the first two years after designation the aggregate valuation for the area continued to decline. However, in 1984, when actual redevelopment activity began in the area, valuations began to increase. During the last two tax years (1985 and 1986), valuations have increased at an annual rate of 12 percent, an increase exclusively attributable to the public redevelopment attention and the resultant increased locational desirability of `zhe area. Honorable Mayor and Members of the City Commission Page 3 Should the above situation be repeated with the Omni Area redevelopment designation and redevelopment actions, valuation increases comparable to those achieved in the Southeast Overtown/Park West Area could be expected. With a 1°86 valuation base of $580 million, a 12 percent increase annual increase would create a valuation of $649 million and a valuation increment of $69 million. This would generate approximately $1.3 r�ill.ion in tax increment revenues. The most basic and important point in assessing financial impacts is that without redevelopment, the Omni. Area could quite possibly remain stagnant or continue its current decline, thus generating no new tax revenues to the City or County. Therefore, any future tax revenue increases for tax increment redevelopment will likely come only as a result of redevelopment designation and redevelopment actions. if the above analysis proves cor-ect., the effective costs of the proposed tax increment -funded redevelopment actions will be totally borne by the redevelopment itself, since no tax revenues would have occurred without tax increment redevelopment designation to be diverted from the flowing to the general funds of the City and County. The only exception of significance is the expected addition of the Plaza Venetia project to the tax digest for tax year 1987, which is an increase that obviously will occur regardless of redevelopment designation and which will add approximately $82 million to the tax digest. This will result in a net increase in total valuation for the Omni Area for 1987 of $68 million, if the balance of the area declines an additional 2.3 percent, as it did for 1986. The $68 million would generate approximately $1.3 million to the tax digest. Redevelopment does not necessarily increase public service costs. It is possible, however, that the redevelopment of the Omni Area may bring new activity requiring increased levels of public services. It is recommended that the City's Department of Management and Budget monitor the redevelopment activity to document this possibility. If at any point in the redevelopment process added service costs do occur, it is recommended th,t amounts equal to those added costs be subtracted from the tax increment revenues flowing to the Redevelopment Trust Fund to supplement the general revenues utilized to provide such services. ZI . • MWIYE SU MY Substantial redevelopment has occurred in the Central Business District of Downtown Miami and Brickell which has resulted in significant spin-off development. This redevelopment pattern is not evident , however, in the Omni area located just north of the Central Business District (CBD). Although some of the parcels in the area have been improved on a scale comparable to Brickell and the CBD (e.g., the Omni/Venetia complex, one of the largest and most substantial concentrations of development constructed by a single developer within the State of Florida in recent years), none have generated significant redevelopment spin-offs. Instead, the developers of these projects have been confronted with high vacancy rates and the hi gl'�s st petty crime rate in the City of Miami, a phenomenon that appears to center almost entirely around the Omni, a mixed -used development constructed in the mid 1970's. Much of the land in the area, which is bounded by 1-395 to the south, the FEC right-of-way to the west, N.E. 20th Street to the north and Biscayne Bay to the east, remains underdeveloped and in blighted condition, particularly west of N.E. 2nd Avenue, The Omni Area Redevelopment Plan examines several development alternatives, of varying degrees of public involvement, that should be considered in order to stimulate economic development and investment activities in the area. The Omni Area Redevelopment Plan proposes a comprehensive and coordinated approach to the revitalization of the area with the following recommendations: 1. Economic Development Activities. a. Identification of a development strategy that will result in the redevelopment of the area's significant holdings of consolidated, vacant or underutilized land, thereby bringing new economic vitality to the area and to the City. In order to facilitate and expedite the revitalization process, the City will consider undertaking land acquisition activities, with priority being given to large parcels which require a minimum of residential or commercial relocation. In the event that relocation proves necessary, this plan will be amended with all relocation activities fully conforming to the Uniform Relocation Act of 1970. b. Establishment of a Tax Increment District. The plan recommends the establishment of a tax increment district to fund needed public improvements and programmatic activities that will lead to the revitalization of this area. Funds generated through the establishment of the district could be used for street improvements and other public infrastructure improvements (including parking structures), land acquisition, and the administration of City -sponsored economic revitalization program in the area. It is important to note that tax increment funds are generated from property value increases and not through tax rate increases. Instead, the tax base is theoretically frozen at a particular tax -ear with any future increases in property values being collected and spent exclusively within the area. If the tax . 2. 3. Increment district is established prior to January L, 1987, first year funding would be estimated at $1.5 million (dine to Plaza Venetia's entrance into the tax rolls at that time). The City's financial advisors have suggested that up to S33 million could be floated in bond monies as a result of the increment. C. Expansion of economic activity within the area through the recruitment of new economic anchor uses currFntly not present in the area, but for which market support can he identified. Special attention will he focused on attracting new businesses to now vacant buildings. The, range of uses to be researched include port -related activities, film/media and fashion industries, exhibition hall and downtown support services. d. Utilization of existing and potential economic development incentives contained in the newly established Florida Enterprise Zone Act. Modification of Existing Zoning. a. Creation of a SPI-6.1 zoning district to be applied to the area bounded by Biscayne Bay, N.E. 13th Street, North Bayshore Drive, and Margaret Pace Park. This new district should permit high intensity mixed use development similar to SPI-6; but subject to inclusion of housing on -site or payment in -lieu thereof to the City of Miami's Affordable Mousing Trust Fund. b. Creation of a SPI overlay district for the CR-3/7 district north of N.E. 17th Terrace that would provide a floor area ratio increase up to a total FAR 2.41 for inclusion of housing on -site or payment inlieu thereof to the City of Miami's Affordable Housing Trust Fund. C. Creation of a SPI overlay district for the commercial zoning districts located west of N.E. 2nd Avenue that would contain special design guidelines to insure that the wide variety of commercial and light industrial uses permitted would not create adverse visual or physical impacts on one another. Enhancement of Community Facilities and Services. a. Improvement of code enforcement and police protection in the area. b. Refurbishment of Biscayne Boulevard to create a visual and functional link between the Omni area and the rest of downtown and establishment of a gateway feature at N.E. 13th Street and Biscayne Boulevard. Encouragement of development of a (pedestrian level) sidewalk cafe district along Biscayne Boulevard between N.E. 15th and 17th Streets. c. Improvement of Bicentennial Park and the FEC Bayfront tract to provide a sequence of visitor attractions linking the Omni area to the Central Business District. M 4. d. Development of an urban landmark at the intersection of North Miami Avenue and N.E. 14th Street. e. Requirement for new deyelnpments to provide uninterrupted walkways along the Bay to establish a baywalk linkage between Pace Park and Bicentennial Park. Provision of a pedestrian crossing at MacArthur Causeway. f. Review of public right-of-ways at corners of N.E. 4th Avenue at N.E. 19t.h and N.E. 17th Streets for better utilization. Refurbishment of N.E. 14th Street east of N.E. 1 st Avenue to create an east -west pedestrian corridor. g. Consideration of retaining Miramar-Llementary School to serve the high density residential development projected for the Omni and Edgewater neighborhoods. Transportation Improvements. Numerous traffic studies have identified physical capacity improvements to the street system in order to relieve rush hour congestion, reduce vehicular turning movements, and promote lot assembly for redevelopment. The improvements, for the most part, would be limited to the use of existing public rights -of -way in order to minimize the social and economic impacts of extensive new acquisition programs. The recommended improvements include: 1. Construction of the planned Omni Extension of the Metromover system, with an additional station built to serve the Herald Plaza area (to be funded by the adjacent developer). 2. Reconstruction/redesign of the intersection of North Miami Avenue and NE/NW 14th Street to improve alignment. 3. Examination of the existing I-395 interchange (in the vicinity N.E. 1st Avenue and N.E. 2nd Avenue) for possible efficiency improvements. 4. Reconstruction of N.E. 2nd Avenue north of N.E. 13th Street and North Miami Avenue north of N.E. 17th Street to provide two northbound and two southbound through lanes with center turn lanes. 5. Extension of N.E. 20th Street to Biscayne Boulevard from its present eastern terminus at N.E. 2nd Avenue through right-of-way acquisition and improvement. 6. Redesi gn/restri ping of Biscayne Boulevard to improve traffic flow and maneuvers. t of E. 14th t east of North re Drive to �. eliminate set intersection eat Borth BayshoreBand to connect to eliminate o Herald Plaza. $. If a convention he FMetromoveconstructed, o 9ui aeway ' and cost station to serve include the relocation of center. APPLICANT PLANNING FACT SHEET City of Miami Planning Department: September 12, 1986 PETITION 3. Consideration of recommending approval in principle of the Omni Community Redevelopment Plan for the area generally bounded by Biscayne Bay on the east, Florida East Coast Railway right-of-way on the west, 1-395 on the south and N 20th Street on the north, which Community Redevelopment Plan includes acquisition and clearance, rehabilitation, relocation, right-of- way and other infrastructure improvements, capital improvement projects and which plan is in conformity with the Miami Comprehensive Neighborhood Plan. REQUEST To approve, in principle, the Omni Area Redevelopment Plan, BACKGROUNDs This redevelopment plan was prepared in response to a request by the City Commission by Motion 86-634, dated July 24, 1986. The purpose of preparing a, redevelopment plan is to create a tax increment financing district that would generate funds to assist with economic revitalization in the Omni Area. Approximately $1.5 million in tax increment will be added to the tax rolls starting January 1, 1987, from the new Venetia condominium building. This revenue can be used annually for capital improvements or bonded to provide $11.5-13 million for a major economic revitalization project. The Omni area is economically stagnant in spite of its close proximity to the Downtown Central Business District and the high density SPI-6 zoning incentives existing along Biscayne Boulevard. Several retailers have left the area in recent years, vacancies are high, and the petty crime rate is among the highest in the City. The Omni West area (located to the west of NE 2nd Avenue) is well located to act as a commercial service district for the downtown and the seaport, but has not experienced significant private sector investment in recent years due to blighted conditions and fragmented land ownership. The redevelopment plan is intended to reverse these declining trends. EL. b AIiM.YStSs The Omni Area Redevelopment Plan is based upon development policies identified for the area in the preliminary Downtown Miami Faster Plan. The plan envisions a well balanced high density mixture of housing and commercial uses alone the Biscayne Boulevard corridor with a hioh quality "uptown" imaoe. The Omni hest. area (west of NE 2nd Avenue) is planned to he a service commercial district with industries that relate to downtown business, import. --export., seaport services, and/or the fashion industry. The entire Omni area is also proposed to have a marketing theme and resulting concentration of uses related to the various aspects of the media. Anchored today by the Miami Herald/News and the Anna Brenner Meyer Telecommunications Center (operated by Dade County School System) the redevelopment strategy is to attract other business related to film, TV and radio broadcasting, advertising, publishing, photography, recording, etc. This "Media District" would bring a special focus to the Omni area without conflicting or competing with future development in other sectors of downtown. The plan recommends zoning changes, transportation improvements, open space improvements, and an historic preservation plan consistent with the above described policies and objectives. The implementation program is generalized at this time, providing a range of alternative ways of utilizing public resources (principally tax increment revenues) to leverage private investment. When a specific redevelopment strategy is identified at a later date, the Redevelopment Plan will be amended. RECOMMENDATIONS PLANNING DEPARTMENT: PLANNING ADVISORY BOARD: Approval. On October 1, 1986, approval was recommended by a vote of 9 to 0. 4 • A11ALY&M RECOMMENDATIONS PLANNING DEPARTMENT: PLANNING ADVISORY BOARD: The Omni Area Redevelopment Plan is based upon development policies i&ptified for the area in the preliminary Dpwnt.mon Miami Master Plan. The plan envisions a well halanced high density mixture of Lousing and coirnsrc.ial uses along the Biscayne Boulevard corridor with a high duality "uptown" image. The Onii pest. area (west. of NC 2nd Avenue) is planned to be a service commercial district with industries that relate to downtown business, import-ey.port, seaport services, and/car the fashion industry, The entire Omni area is also proposed to have a marketing there and resulting concentration of uses related to the various aspects of the media. Anchored today by the Miami Herald/News and the Anna Brenner Meyer Telecommunications Center (operated by Dade County School System) the redevelopment strategy is to attract other business related to film, TV and radio broadcasting, advertising, publishing, photography, recording, etc. This "Media District" would bring a special focus to the Omni area without conflicting or competing with future development in other sectors of downtown. The plan recommends zoning changes, transportation improvements, open space improvements, and an historic preservation plan consistent with the above described policies and objectives. The i -plementation program is generalized at this time, providing a range of alternative ways of utilizing public resources (principally tax increment revenues) to leverage private investment. :then a specific redevelopment strategy is identified at a later date, the Redevelopment Plan will be amended. Approval. On October 1, 1986, approval was recommended by a vote of 9 to 0. PAS 10/1/86 A em 13 A Exhibit 3 M 3 , IT .� 3 SEPTEMBER 1986 OMNI AREA REDEVELOPMENT PLAN TABLE OF CONTENTS LIST OF EXHIBITS EXECUTIVE SUMMARY I. INTRODUCTION A. Purpose B. Planning Process II. BACKGROUND INFORMATION A. Geographic Location B. Summary of Existing Conditions III. REDEVELOPMENT OBJECTIVES IV. REDEVELOPMENT PROPOSAL A. Concept B. Land Use Plan C. Community Facilities and Services D. Transportation Network E. Historic Preservation V. IMPLEMENTATION PROGRAM A. Zoning and Land Use Controls B. Capital Improvement Projects C. Relocation D. Disposition of Property E. Rehabilitation F. Economic Development Plan VI. FINANCING AND MANAGEMENT A. Estimated Public Cost B. Financing Strategy and Staging APPENDICES A. Legal Description of the Redevelopment District B. Excerpts from Downtown Development Plan Miami, Florida - Economic Analysis and Growth Projections, March 1986. C. Tax incentives ufferea Unaer t New Enterprise Zone Act D. Pending Federal Tax Legislation'Concerning Tax Exempt Revenue Bonds 86 List of Exhibits map# 1 2 3 4 5 6 7 8 9 10 Title Location Map Existing Land Use Dilapidated Structures, Vacant Land and Surface Parking Oistribution of Reported Crimes, 1984 Publicly Owned Property Proposed Land Use Plan Proposed Open Space Plan Proposed Transportation Improvements Proposed Street Network Properties of Historical/ Architectural Significance Section Executive Summary II.B. II.B. II.B. U.S. IV.B. IV.C. IV.D. IV.D. IV.E. EXECUTIVE SU! WY Substantial redevelopment has occurred in the Central Business District of Downtown Miami and Brickell which has resulted in significant spin-off development. This redevelopment pattern is not evident , however, in the Omni area located just north of the Central Business District (CBD). Although some of the parcels in the area have been improved on a scale comparable to Brickell and the CBD (e.g., the Omni/Venetia complex, one of the largest and most substantial concentrations of development constructed by a single developer within the State of Florida in recent years), none have generated significant redevelopment spin-offs. Instead, the developers of these projects have been confronted with high vacancy rates and the highest petty crime rate in the City of Miami, a phenomenon that appears to center almost entirely around the Omni, a mixed -used development constructed in the mid 1970's. Much of the land in the area, which is bounded ty I-395 to the south, the FEC right-of-way to the west, N.E. 20th Street to the north and Biscayne Bay to the east, remains underdeveloped and in blighted condition, particularly west of N.E. 2nd Avenue. The Omni Area Redevelopment Plan examines several development alternatives, of varying degrees of public involvement, that should be considered in order to stimulate economic development and investment activities in the area. The Omni Area Redevelopment Plan proposes a comprehensive and coordinated approach to the revitalization of the area with the following recommendations: 1. Economic Development Activities. a. Identification of a development strategy that will result in the redevelopment of the area's significant holdings of consolidated, vacant or underutilized land, thereby bringing new economic vitality to the area and to the City. In order to facilitate and expedite the revitalization process, the City will consider undertaking land acquisition activities, with priority being given to large parcels which require a minimum of residential or commercial relocation. In the event that relocation proves necessary, this plan will be amended with all relocation activities fully conforming to the Uniform Relocation Act of 1970. b. Establishment of a Tax Increment District. The plan recommends the establishment of a tax increment district to fund needed public improvements and programmatic activities that will lead to the revitalization of this area. Funds generated through the establishment of the district could be used for street improvements and other public infrastructure improvements (including parking structures), land acquisition, and the administration of City -sponsored economic revitalization program in the area. It is important to note that tax increment funds are generated from property value increases and not through tax rate increases. Instead, the tax base is theoretically frozen at a particular tax year with any future increases in property values being collected and spent exclusively within the area. If the tax i =6 * increment district is established prior to January 1, 1987, first year funding would be estimated at $1.5 million (due to Plaza Venetia s entrance into the tax rolls at that time). The City's financial advisors have suggested that up to $13 million could be floated in bond monies as a result of the increment. c. Expansion of economic activity within the area through the recruitment of new economic anchor uses currently not present in the area, but for which market support can be identified. Special attention will be focused on attracting new businesses to now vacant buildings. The range of uses to be researched include port -related activities, film/media and fashion industries, exhibition hall and downtown support services. d. Utilization of existing and potential economic development incentives contained in the newly established Florida Enterprize Zone Act. 2. Modification of Existing Zoning. a. Creation of a SPI-6.1 zoning district to be applied to the area bounded by Biscayne Bay, N.E. 13th Street, North Bayshore Drive, and Margaret Pace Park. This new district should permit high intensity mixed use development similar to SPI-6; but subject to inclusion of housing on -site or payment in -lieu thereof to the City of Miami's Affordable Housing Trust Fund. b. Creation of a SPI overlay district for the CR-3/7 district north of N.E. 17th Terrace that would provide a floor area ratio increase up to a total FAR 2.41 for inclusion of housing on -site or payment inlieu thereof to the City of Miami's Affordable Housing Trust Fund. c. Creation of a SPI overlay district for the commercial zoning districts located west of N.E. 2nd Avenue that would contain special design guidelines to insure that the wide variety of commercial and light industrial uses permitted would not create adverse visual or physical impacts on one another. 3. Enhancement of Community Facilities and Services. a. Improvement of code enforcement and police protection in the area. b. Refurbishment of Biscayne Boulevard to create a visual and functional link between the Omni area and the rest of downtown and establishment of a gateway feature at N.E. 13th Street and Biscayne Boulevard. Encourage of development of a (pedestrian level) sidewalk cafe district along Biscayne Boulevard between N.E. 15th and 17th Streets. c. Improvement of Bicentennial Park and the FEC Bayfront tract to provide a sequence of visitor attractions linking the Omni area to the Central Business District. ii Q" 0 10 01 M ■ d. Development of an urban land+nark at the intersection of North Miami Avenue and N.E. 14th Street. e. Requirement for new developments to provide uninterrupted walkways along the Bay to establish a baywalk linkage between Pace Park and Bicentennial Park. Provision of a pedestrian crossing at MacArthur Causeway. f. Review of public right-of-ways at corners of N.E. 4th Avenue at N.E. 19th and N.E. 17th Streets for better utilization. Refurbishment of N.E. 14th Street east of N.E. 1st Avenue to create an east -west pedestrian corridor. g. Consideration of retaining Miramar -Elementary School to serve the high density residential development projected for the Omni and Edgewater neighborhoods. 4. Transportation Improvements. Numerous traffic studies have identified physical capacity improvements to the street system in order to relieve rush hour congestion, reduce vehicular turning movements, and promote lot assembly for redevelopment. The improvements, for the most part, would be limited to the use of existing public rights -of -way in order to minimize the social and economic impacts of extensive new acquisition programs. The recommended improvements include: 1. Construction of the planned Omni Extension of the Metromover system, with an additional station built to serve the Herald Plaza area (to be funded by the adjacent developer). 2. Reconstruction/redesign of the intersection of North Miami Avenue and NE/NW 14th Street to improve alignment. 3. Examination of the existing I-395 interchange (in the vicinity N.E. 1st Avenue and N.E. 2nd Avenue) for possible efficiency improvements. 4. Reconstruction of N.E. 2nd Avenue north of N.E. 13th Street and North Miami Avenue north of N.E. 17th Street to provide two northbound and two southbound through lanes with center turn lanes. S. Extension of N.E. 20th Street to Biscayne Boulevard from its present eastern terminus at N.E. 2nd Avenue through right-of-way acquisition and improvement. 6. Redesign/restriping of Biscayne Boulevard to improve traffic flow and maneuvers. iii 1► 4 w 1 • r a 7. Realignment of N.E. 14th Street east of North Bayshore Drive to eliminate off set intersection at North Bayshore and to connect to Herald Plaza. 8. If a convention center is constructed, its cost should include relocation of the Metromover guideway and station to serve the center. 0 i-- =m: 7 11 :J f-j lu— Am- A—Lu. 1 , --14 pa:z J- /0q^ LAKm JUL , f Vol 4L If" Al- Fi— J JS -AT aiz ZILZ JL-- bus —wr -mtf- -Aftm 5 -1w r - r-- LW LL maj &L SOW, U I, sy ji- L - LITTLE -H-AWANA'= r--Iu - - - --, -v Z3 =Zj - rLL lg--j AIL- 4-9— A—uj I I' To --A L-1 Ell .Z- . �: Location Map MNI AREA REDEVELOPMENT PLAN Map I 0 2W 4W GW C" (W m" W AKiE1lfflvela"madr "to 0044nm"If of 9C=SCE I. INTRODUCTION A. PURPOSE In July 1986, the Miami City Commission instructed the City Administration (per Motion 86-634) to prepare a study of the Omni area for the purpose of creating a tax increment district in order to facilitate redevelopment in the area and to report the findings of the study and related recommendations to the Commission for its review and consideration. The Omni Area Redevelopment Plan summarizes those findings and recommendations in accordance with Chapter III of the Florida Statutes, The Omni Rea 'opment Area encompasses 260 acres of land bounded by I-395 on the south, Biscayne Bay on the east, N.W. 20th Street on the north and F.E.C. Railroad right-of-way on the west. (See Location Map, page v ). Included within this general area are three distinct subareas: the residential area north of the Omni Complex composed of apartment buildings, aging single family homes and converted estate mansions; the Omni/Venetia Complex east of Biscayne Blvd. composed of modern megastructures housing condominiums, hotels and a major shopping mall; and the western portion of the study area (for the purposes of this study to be referred to as Omni West) composed of a mixture of rundown warehousing, industrial uses, general commercial and residential structures. The redevelopment area is located within Downtown Miami, just north of the core area which is undergoing major physical and economic revitalization. Major new developments such as the downtown Government Center, Southeast Financial Center, and ti,,, City of Miami/University of Miami James L. Knight Center have increased downtown employment and attracted new businesses and daytime activities. The continued growth of the Port of Miami, redevelopment of Bayfront Park, opening of the Metromover loop, construction of Bayside Specialty Center, and the upcoming redevelopment of the Southeast Overtown/ Park West community will reinforce the development potential for all of the downtown area. The scale and type of new development in the core area is undoubtedly going to have an impact on the development potential of the neighboring area in time, yet the change will occur slowly. This is because development appears to flow from the core southward to the Brickell area, despite dramatic attempts by a few developers to generate a new downtown node of activity and development in the Omni area. The most notable examples of private investment in area are the mixed -use developments known as Omni -Venetia which include the Plaza Venetia high-rise residential condominiums, the Omni Shopping Mall/Hotel and the Biscayne Bay Marriott. The public projects already in place include the Anna Brenner Meyer Telecommunication Center and the Dade County School Board Administration Building. The School Board is also planning to demolish the Lindsey Hopkins Building and build its second administration building. In addition, the planned extension of a north loop of the Metromover system will have at least two stations in the area. These proposed and existing investments have failed to generate additional development activity. Instead, the new projects sit as islands amidst urban decay and disinvestment. S6"8615 a In order to foster new development and to maximize the public benefit, a major public -private redevelopment effort will be necessary. Without such a comprehensive effort and a demonstrated commitment from the public sector, trends suggest that the decline of the area will accelerate. This study, outlines the type of coordinated and comprehensive role that the public sector must assume in order to effectively sto'mulate new development and investment in the area. Due to the uncertainty of federal funds and limited local dollars, the primary financing mechanism available is the establishment of a tax increment financing district so that new tax dollars generated through anticipated private sector improvements can be targeted for needed area improvements. The employment of this tool, however, necessitates the establishment of a community redevelopment area and the preparation of a redevelopment plan. Consequently, this plrnning effort has been initiated, in full conformance with Chapter 163 of the Florida Statutes, to formulate an effective decision -making tool for guiding development and creating a proper environment for investment. -2- qP 7 I. 9. PLANING PROCESS The Omni Area Redevelopment Plan has been prepared according to the requirements specified by the Community Redevelopment Act of 1969, as amended (Fla. Statutes IE3.330 et. seq.) As mandated by the Act, the redevelopment plan must conform to the -'odd comprehensive plans for the City of Miami and Dade County. Final approval must be granted by the Miami City Commission and the Board of Dade County Commissioners following recommendations by their respective planning advisory agencies. Since the mid 1970's, the City of Miami has undertaken three major planning programs which address development opportunities for the Omni area. In 1976, the City adopted the Miami Comprehensive Neighborhood Plan 1976-86 which provides the framework for the overall development o mum cip�y. The Omni neighborhood is identified in this document as an area suitable for residential, industrial, and commercial uses. The Southeast Overtown/Park Nest Redevelopment Plan, adopted in 1981, identifies the Omni Kest area (area west of NE 2nd Avenue) as a primary relocation area for commercial services and light industrial uses displaced by redevelopment within the Southeast Overtown/Park Nest project area. In 1985, the City began the process of preparing an updated and more detailed master plan for Downtown Miami, whose boundaries incorporate all of the redevelopment area plus Southeast Overtown/Park Nest, the Central Business District, and Brickell. This plan provides policies and guidelines for implementation of all downtown development and provides the foundation for the preparation of a Development of Regional Impact application for the area within the jurisdiction of the Downtown Development Authority. A Citizen's Advisory Committee was established to provide input to the master plan. This group includes representatives from the Omni neighborhood and provides a forum where interested citizens, civic leaders, and public officials join forces to address development issues and community concerns. During a series of workshops, held over a six-month period, a draft downtown policy plan has been formulated. The document identifies development objectives for the Omni neighborhood including the following: establishment of strong functional and visual connections with the Central Business District through a redeveloped Bayfront open space, baywalks, redesigned Biscayne Boulevard, and extension of Metrorail and Metromover; development of a high quality "uptown" district with a viable mixture of hotel, residential, and retail uses; promotion of a nightlife and entertainment district; creation of a special use district to attract new types of specialized commercial activity to the area including media and fashion related businesses; and reinforcement of the area west of N.E. 2nd Avenue as a commercial/industrial area serving the downtown and Seaport. The major recommendations from all three planning programs have been further refined and incorporated into this redevelopment plan. -3- II. BACKGROW INFORMATION A. GEOGRAPHIC LOCATION The Omni Redevelopment Area is located in the northern most section of Downtown Miami, adjacent to the planned Southeast Overtown/Park West residential community. It is within I/2 mile of the heart of the Central Business District and within I mile of the rapidly growing office district along Brickell Avenue. The geographic location and boundaries of the area are illustrated on the Location Map (see page v ). A legal description of the site is provided in Appendix A. The redevelopment area is strategically positioned within the City of Miami and the metropolitan area. It has convenient access to the Miami International Airport, Miami Beach and the regional highway system. The Port of Miami, the Civic Center, and other major business and activity centers in the City of Miami are within easy reach of the Omni neighborhood residents and employees. If The planned Metromover extension will provide a direct link to the CBD and the existing Metrorail system. { II. B. EXISTING CONDITIONS Land Use Several different types of land uses are present in the Omni Redevelopment Area, with varying degrees of structural condition (see Map 2 - Existing Land Use). Of the 292 buildings surveyed, 109 are dilapidated or in need of major repair, representing almost forty per cent of the structures in the redevelopment area. In addition, almost 35 per cent of the land is vacant or used for surface parking (see Map 3 - Dilapidated Structures, Vacant Land and Surface Parking). With the exception of a few negastructures, the .area has seen little change (other than decline) in the past 40 years. For example, during the period between 1970 and 1980, only sixteen building permits for new construction or renovation were filed in the 260 acre area. Included among those permits were the City of Miami Fire Station, the Omni complex, and a renovation of Jefferson's store which is now closed. Two major retailers in the area, Jefferson's and Sears, are no longer in operation leaving the once -active department stores vacant. a. Omni West This area is bounded by FEC right-of-way to the west, N.E. 20th Street to the north, N.E. 2nd Avenue to the east, and I-395 to the south. Ranging from single family residential to industrial warehousing to high-rise multifamily to cement manufacturing, the western portion of the Omni Redevelopment Area is a crazy quilt of a variety of land uses. Many of the uses are mutually incompatible since zoning allows for general commercial activities (e.g., wholesaling, warehousing, light manufacturing, etc.) and prohibits housing; but established land uses include well over 100 units of nonconforming single family and multifamily housing. The general commercial zoning prohibits new residential units (except as on -site accessory uses for caretakers and watch guards) but since the existing units were constructed before 1940 and prior to such restrictions, which were applied in the early 1960's, the existing housing is "grandfathered", provided the housing remains in continuous operation (with short term vacancies of no more than 6 months) or provided that no more than 50% of the structure is destroyed due to fire or other causes. Failure to meet these conditions requires that the structure must be converted to new uses that conform to the zoning regulations. More than 75 per cent of the more than 100 housing structures are in need of major repair or are considered dilapidated. Nine buildings offer commercial uses on the ground floor frontage and residential uses either in the back of the building or on the upper floors, most of these also require substantial repair. Almost seventy of the parcels are technically vacant, but most of them are used for outside storage of inoperative vehicles, machinery, and trash, making the area not only unsightly but potentially unhealthy as well. In addition to the vast number of vacant lots, approximately 50 lots are being used for surface parking. ® SINGLE FAMILY AND DUPLEX - MULTIFAMILY AND HOTEL MIXED USE �---- OFFICZ COMMERCIAL RETAIL/WHOLESALE GOVERNMENVINSTTITU'TIONAL PARKING MOM INDUSTRIAL EMo VACANT STRUCTURES PARKS OPEN SPACE VACANT LAND Existing Land Use OMN 1 AREA REDEVELOPMENT TAN • VENETIAN cupirwr Mee ARTMU ckrx y Map 2 A"irp Of� � MM VAGANT LAMU • SURFACE PARKING �r ML ANnATED STAtlerlIN mapaatea mmmures ,vacant Lana map ind Surface Parking 1,1,1 1 1 e see "M as --- *J W. ip Thirty buildings are used for warehousing, wholesaling, and distribution activities. There are also approximately 35 retail commercial structures, with several restaurant equipment supply services clustered in a group. Four of the commercial structures appear vacant or abandoned. There is also a cement batch plant, several tire recapping and outside auto repair services existing throughout this portion of the study area. In terms of governmental or institutional uses in the area, the administrative headquarters of the Dade County Public School System are located here along with the Anna Brenner Meyer Telecommunications Center (a training center and production studio for Channel 17).' The school system also operates an administrative annex ;n the area and the Miami Skills Center. There is also a City of Miami Fire Station, a large historic cemetery, a neighborhood center/day care facility, an elementary school, and a synagogue in the area. b. Omni East This area is bounded by N.E. 2nd Avenue to the west, N.E. 20th Street to the north, Biscayne Bay to the east, and I-395 to the south. The land east of N.E. 2nd Avenue differs greatly from the land west of N.E. 2nd Avenue in both condition and land use with some exceptions. It, like the west, is underdeveloped, with several of the structures in need of repair. There are an estimated 14 existing single family and duplex homes in the area, and several other structures that have been converted from homes into offices and restaurants. There are also approximately 30 apartment/condominium buildings, ranging in size from four units to 800 units, for a total of more than 1500 residential units (Plaza Venetia Phases I and II provide approximately 70 per cent of th- units). The Omni, Biscayne Bay, Marriott, and Plaza Venetia also provide first-class hotel space, with a total of more than 1350 rooms. In spite of the major investment with the Omni/Venetia complex, high-rise mixed use zoning, and its downtown location, most of the area is underdeveloped with 30-35% of the area being u$ed for surface parking, and the majority of the structures only 1 to 2 stories in height. Unlike the area to the west, the eastern portion of the study area has no industrial or warehousing facilities with the exception of the Miami Herald's main facility. There are several churches, a YWCA and a small government office in the area. There are also a number of new and used car dealerships with outside storage of vehicles and car repair/body shops located in this portion of the area. The area has one large grocery store, a major shopping mall, and several smaller commercial operations, particularly along N.E. 2nd Avenue and Biscayne Boulevard. Four commercial buildings are currently vacant, including the former Sears and Jefferson's stores. In addition, there are approximately 30 office buildings. These buildings are relatively small with the owners appearing to be the primary tenants in each structure. C. State of Florida Distress Rating The area is experienci,ig a high level of distress, as verified by the State of Florida's Department of Community Affairs. The Department ranked every census tract in the State of Florida for level of distress, based upon 11 variables which included percentage of housing units in the area that lack some or all plumbing facilities, percentage of persons in the area unemployed for greater than 15 weeks, and per capital taxable value of property in the area. Three of the four census tracts in the Omni area scored in the top ten for the City of Miami in terms of highest level of distress. Even the area cast of Biscayne Boulevard received a distress score higher than the City-wide average. Interestingly enough, the Community Conservation Index (CCI) failed to consider crime rate in determining level of distress. The Omni area has the highest petty crime rate in the City of Miami and has one of the highest rates of reported Part I Crimes which includes both violent and nonviolent crimes within the City of Miami (see Map 4 which illustrates the 1984 Part I Crime Distribution). The area is also prone to storm water flooding problems, and it is difficult to maneuver in several parts of the area due to the inefficient and faulty street layout (e.g., numerous no- thru and one way streets). t d _: , �- � may: ,- , ,>, ►-�fi t ate,• U ' �nr » n ♦ ,.,,�,• • !: nor,. N' n.. _Jt, •_=1• .e `r :P • .err O MW :::: : '. •:: • .;: , • IUD M R • �� M.4 "J"U C7n • . r. ter . S.t - - 7 _ ' ..i �:tifS:t :i�ti •:�2• � > • • ••�, Ao. Alffle SP •• i�� • ••.�. : • •� • is 1 �z 0 off •� .. �• '••�• • • •. �.,.�••• • • ,• '•4 • : 'I' • i •,•.. P,!,••1r CiMIW10111L/r •• � � ::. �ua�+acai ew. vow•.. sn 04 t (� ►on+w rt i O.r.a: aNN of flo.id., u41hno GMN Rom! Distribution of Reported Crimes 1984 OMNI AREA REDEVELOPMENT PLAN Map 4 &A*a I U1 I Y UWNhL WM COUNTY OVYNEU STATE OWNED SCHWL ROARn I Publicly owned Prope OMNI AREA REDEV Olt :1 2KM imm EXISTING LAID USE IN REDEVELOPMENT AREAL Number of Structures LAND USE OMNI OMNI-WEST TOTAL SINGLE FAMILY 13 752 88 MULTI-FAMILY/HOTEL 26 19 47 MIXED USE 2 9 11 OFFICE 30 4 34 COMMERCIAL 20 35 55 VACANT STRUCTURES 43 4 8 GOVERNMENT/INSTITUTIONAL 6 7 13 WAREHOUSE/WHOLESALING 0 29 29 INDUSTRIAL 1 2 3 PARKING 56 47 103 VACANT LOTS 14 674 81 PARKS 1 1 2 2 Source: Windshield Survey, September 1986 As noted in the text, residential is no longer permitted in the area; most structures are in dilapidated condition or in need of major repair 3This figure includes the old Sears site and the Jeffersons site, two large department stores which closed due to external factors 4While the term vacant is used here, the land is commonly used for outside storage and dumping - 8 - tom- i 1 III. REDEVELOPNEW OBJECTIVES Redevelopment objectives have been formulated to serve as guiding principles for preparing the Omni Area Redevelopment Plan. They were derived from the analysis and evaluation of existing conditions and the issues affecting future development of the area. These objectives also reflect established community priorities and overall development objectives of the City of Miami: A. Issue: Slum and Blight Conditions Objectives 1. Provide incentives for redevelopment of blighted properties 2. Eliminate conditions which contribute to blight 3. Promote rehabilitation and maintenance of existing viable uses and structures 4. Achieve orderly and efficient use of land B. Issue: Econowy Objectives 1. Maximize existing public investments 2. Reinforce the property tax base 3. Create economic magnets to draw more businesses to the Omni area to compliment (without competing with or diminishing) established activities in the surrounding area 4. Promote concentrations of similar business activities that reinforce each other and improve the areawide economic climate S. Provide for the development and/or relocation of downtown support service uses in selected locations within the redevelopment area C. Issue: Public Infrastructure and Amenities Objectives 1. Provide adequate public utilities and services for the area's residents and businesses 2. Provide a system of public open spaces 3. Maximize access and views to Biscayne Bay 4. Encourage preservation and restoration of historic buildings -9- 1 1 1 I 1 1 1 F] I I i I Si, Enhance the area's visual attractiveness to businesses and residents 6. Emphasize crime prevention and improve security in the area 7. Encourage the Dade County School System to retain and improve Miramar Elementary as a nei-,:.borhood school serving local residents D. Issue: Housing and Social Needs Objectives 1. Maximize conditions for residents to continue to live in the area 2. Achieve rehabilitation of the maximum feasible number of housing units 3. Provide incentives for construction of new housing to attract downtown workers 4. Improve the delivery of human services S. Provide employment opportunities and upward Job mobility for residents 6. Provide opportunities for minorities and women to manage and own businesses 7. Minimize condemnation and relocation E. Issue: Traffic and Circulation Objectives 1. Resolve existing and future transportation conflicts 2. Set priorities within the transportation network for pedestrians, cars, service and transit vehicles 3. Improve access to existing and planned major activity areas such as the Central Business District and Civic Center 4. Support construction of the Omni Extension of the Metromover system S. Provide adequate parking to serve the needs of area residents, visitors, and employees �10 IV. REDEYMOPPM PROPOSAL A.TR£ CONCEPT The proposed Omni Area Redevelopment Plan reflects the stated planning objectives and major recommendations contained in the Miami Comprehensive Neighborhood Plan 1976-86 and the Draft Downtown Policy Plan prepared in June 1986, In general, the intent of this plan is to stimulate redevelopment of the area's significant existing supply of vacant and under-utilized land, thereby bringing new vitality to this northern -most section of downtown. The principal strategy for this revitalization process is the recruitment of new economic anchor uses, currently not present in the area, but for which market support can be demonstrated. The criteria for selecting anchor uses will be uses that will compliment rather than compete with established activity patterns in other downtown locations; uses that will benefit from the geographic location of the Omni area; uses that will reinforce the existing hotel, residential, retail, and commercial service uses in the area; and uses that will act as catalysts to stimulate rehabilitation and development of other supporting uses within the district. In order to facilitate and expedite the revitalization process, the City will consider undertaking land acquisition activities, with priority being given to large parcels which require a minimum of residential and commercial relocation. The second major revitalization strategy of the Omni area is to create the image of a desirable high quality "uptown" district with an attractive appearance, a 24-hour activity pattern, and a perception of safety and security. The attractive appearance can be achieved by maintenance and improvements to public streets and sidewalks including landscaping and street furniture, and implementation of design guidelines for private development. A 24-hour activity pattern can be encouraged to evolve through emphasis on additional residential and hotel uses, as well as the creation of a restaurant/entertainment district. The safety and security problems in this area are perhaps the most difficult challenge to address in a redevelopment plan. In addition to efforts by the Miami Police Department, partial solutions that can be offered include targeted code enforcement or acquisition of properties known to harbor criminal activity, improved street lighting, and development guidelines that prohibit internalized fortress -like buildings, and that emphasize openness and visibility between interior and exterior spaces. In the long run, the addition of more residents and street level activity would do more than anything else to improve security in this area. Although new construction is intended to be encouraged on this area's abundant supply of vacant land and surface parking lots, the plan encourages retention of viable existing residential and commercial uses. It does not call for major clearance and displacement of families or businesses. Current residents of the area will have the opportunity to continue to reside there and share in 411 aspects of redevelopment efforts. Rehabilitation and adaptive reuse is recommended for historic buildings. New development will result in new job opportunities, create a perception of stability, and considerably upgrade the quality of life for both residents and employees. 4� Revitalization strategies for the Omni area cannot succeed unless public infrastructure and service needs are satisfied. This plan examines the existing and projected future demands for transportation, utilities, schools, narks, police, fire, and health care services. Inhere it is necessary and feasible, new capital improvements are recommended. The implementation of the plan depends upon the establ istpent of a tax - increment district to fund needed public improvements and activities such as street improvements, parking facilities, land acquisition, park and open space improvements, and/or the administration of a City -sponsored economic revitalization program. IV. B. LAND USE PLAN Conceptually, the Omni Redevelopment Area should be divided into two general sub -areas, delineated by N.E. 2nd Avenue. The sub -area located to the east of N.E. 2nd Avenue is proposed to be a high-rise, high -intensity mixed residential/commercial area. The area located to the west of N.E. 2nd Avenue is proposed to be a low to mid -rise moderate intensity commercial/industrial district. Within each of the two general sub -areas are smaller specific land use zones described later in this section. The reasons for the distinction between the two general sub -areas are both geographic and market oriented. The sub -area east of N.E. 2nd Avenue is better suited to attract high -intensity urban development due to the amenity provided by Biscayne Bay and the visibility and access offered by proximity to Biscayne Boulevard. The sub -area to the west of N.E. 2nd Avenue cannot be expected to sustain high intensity uses due to the limited regional market for such growth, and the sub -area's relative lack of amenity, visibility, and accessibility. An additional impediment to large scale redevelopment is the existing pattern of small individual lots and fragmented ownership. This Omni West area is best suited to provide a broad range of commercial uses and support services for the downtown area such as printing, furniture and office supplies, storage, automotive repair, construction supplies, import-export businesses, and seaport services. It is also well located for certain specialty uses such as educational facilities and TV/radio broadcast studios. Long range projections of market demand for housing, retail, office, and hotel development were made by an independent economic consultant, Hammer Siler George, Assoc., in conjunction with the preparation of the Downtown Miami Master Plan. The forecasts summarized in Appendix B show two alternative growth potentials for the Omni area, each reflecting projected economic trends and anticipated market share of the downtown area. These projections indicate minimal potential for growth in future space needs for general tenant office use and retail shoppers goods. Accordingly, this plan does not envision the Omni area to be a major office district similar to the existing Brickell and Central Business District office concentrations, nor does it encourage major new concentrations of retail shopping similar to the existing Omni mall. Rather, it encourages a balance of land uses, relying on an increased resident population to support the ground level retail/restaurant uses needed to activate the sidewalk environment, and specialty uses such as the media/communications industry, or owner -occupants such as the Dade County School System and Knight-Ridder Corp. to anchor the market for office/commercial construction. The location and distribution of proposed land use activities is illustrated in the Proposed Land Use Plan (see map 6). The following is a description of all land use categories proposed within the area by type, .location and intensity. 1. High Density Mixed -Use - this predominant land use category in the • redevelopment area is designated for parcels located generally south of N.E. 17th Terrace and east of N.E. 2nd Avenue. Future - 13 - ® HIGH DENSITY MIXED USE MODERATE —HIGH DENSITY COMMERCIAL/RESIDENTIAL MODERATE —HIGH DENSITY RESIDENTIAL GENERAL COMMERCIAL COMMERCIALANDUSTRIAL MODERATE DENSITY RESIDENTIAL INSTITUTIONAL USE PARKS AND OPEN SPACE 0 w VENETIAN CAUSEWAY MW ARTNUR CAUSEWAY Map 6 Proposed Land Use Plan OMNI AREA REDEVELOPMENT PLAN (IIII I i o :oo goo aoo Cm OP WAN PLANNOO 00"tMINT AND W"TWINT Or OtVtLOPtAtNT } development in this area will be predominantly high density residential and commercial uses, including hotel, office, retail, and entertainment activities. Allowable floor area ratios (FAR) range from six (6.0) to ten and one half (10.5), depending on the type of use and specific location of structures. Actual development intensities are expected to be in the range of 3.0-4.0 FAR, coincident with market demand. 2. Co=ercial/Industrial - The area designated for this use lies between e FEC Rairoad right-of-way and N.E. 1st Avenue, south of the Miami City Cemetery. The predominant uses should include general commercial and light industrial uses such as wholesale, car service, warehousing, light manufacturing and other uses permitted by the CG-2 District of the Zoning Ordinance. The emphasis will be on accommodating downtown support services, media district services and seaport related services. Special design and development guidelines shall be formulated to improve the appearance and desirability of the area with attractive landscaping and building design, and to ensure provision of visual barriers from unsightly activities. These design standards should ensure that special uses such as a convention center or educational institution could exist harmoniously, if located in the area. Allowable floor area ratio shall not exceed 1.72. 3. General Comercial - The predominant use in this area, occupying twelve city blocks between N.E. 1st and 2nd Avenues, should be service establishments with emphasis on activities related to the media district and fashion industries. New development shall be consistent with the regulations specified by the CG-2 District of the Zoning Ordinance with a maximum allowable floor area ratio of 1.72. 4. Moderate High Density Residential - Development in this two and a halt block area adjacent ace Park should be predominantly residential with related uses as defined by the RG-3 District of the Zoning Ordinance. Allowable floor area ratio should not exceed 1.72. 5. Moderate - High Density Comerci al /Rest dents al - This use is proposed for the area located north of R.E. Ith Terrace between N.E. 2nd Avenue and N.E. 4th Avenue. Development in this area should be limited to structures appropriate for residential and commercial developments as defined by the CR-3 district of the Zoning Ordinance. Generally permitted uses in this district include multifamily dwellings, retail, office and service establishments with maximum allowable floor area ratio of 1.72. Residential development should be encouraged by offering an intensity bonus. This could represent an increase in development intensity of approximately 50% over the present FAR of 1.72 or a total of FAR 2.42. This is appropriate to ease the transition from the floor area ratios of 6-10 permitted south of N.E. 17th Terrace to the maximum floor area ratio of 1.72 permitted north of H.E. 20th Street. - 14 - T...i^Y J^ ^.YIN:. tU�•��+ NP S. Moderate Density Residential - This district lies immediately north of the cemetery an w 11 remain limited to the presently permitted residential development including related uses as defined by the RG-2 District of the Zoning Ordinance. Allowable floor area ratio shall not exceed 1.21. 7. Institutional Use - This designation encompasses school and church property roug out the redevelopment district, regardless of zoning classification. 8. Parks and Open Spates - This designation encompasses publicly owned pars and cemeteries. NP 71 r N IV. C. COMMITY FACILITIES AND SERVICES The provision of quality community facilities and services is essential in order to compliment redevelopment activities proposed for the Omni area. This plan is intended to identify those important facilities and services and provide guidelines for their maintenance and improvement, as necessary to support future growth. 1. Parks and Open Space - The existing and future needs of the Omni area for large scale public open space are well served by the existing 40.5 acres of public park space, including Margaret Pace Park, Bicentennial Park, Dorsey Park, and a little known mini -park along North Miami Avenue near N.E. 14th Street. The Miami City Cemetery provides an additional 9.6 acres of permanent green open space; and the Miramar Elementary School maintains a 4.1 playground space that was a part of the former Biscayne Park. The Proposed Open Space Plan for the Omni area, illustrated on Map 7 , emphasizes the amenity of the waterfront, suggests better utii;zation of existing public open spaces (including street rights -of -way), provides an open space linkage system of pedestrian promenades, and relies on requirements for private development to provide new smaller scale open spaces scattered throughout the area. Bicentennial Park, together with the FEC Tract, Bayside and Bayf ront Park, is a major opportunity to bring activity and vitality back to the downtown area, and to link the Omni area with the heart of downtown. This linkage can best be achieved by strategically locating a series of special public attractions along the length of the bayfront park system. Examples of attractions that could be located in the park without dominating the open space are an aquarium or maritime museum. The completion of the programmed pedestrian crossing at the MacArthur Causeway and completion of a continuous baywal k would help to further unite the Omni area with the bayf ront park system to the south. Biscayne Boulevard represents another opportunity to unify the Omni area with the central business district and to provide a major visual and functional pedestrian open space. Plans are underway to design a world class Boulevard from the Miami River to N.E. 20th Street including new landscaping, sidewalk paving, lighting and street furniture. A sidewalk cafe district should be encouraged between N.E. 15th and 17th Streets. A landmark feature should be incorporated into the excess right- of-way at the N.E. 13th Street intersection. N.E. 14th Street, as the major east - west arterial street connecting the Civic Center, should also be developed as a high amenity pedestrian street. A landmark feature could be created at the Miami Avenue intersection to help create a sense of place in the Omni West district. The eastern terminus of N.E. 14th Street should be a public open space provided by the redeveloped Herald Square property. 2. Utilities and Drainage - The Omni area is presently provided with water and sanitary sewer service by the Miami Dade Water and Sewer system. Both systems contain sufficient capacity to serve future growth in the Omni area; however certain of the local distribution lines within the district may need to be upgraded as redevelopment occurs. nz, moi I N DIFOI: :E:J;30 gu vpull opaua r1un NREA REDEVELOP MFMT DI 9 1 Storm drainage is adequate on public streets. The existing positive drainage system with discharge to Biscayne Bay is being replaced with french drains and covered trench exfiltration systems over a period of. time in connection with the schedule for replacement/reconstruction of existing streets. Since 1980, new private development has been required to retain all stormwater on site, a fact which will result in a long term gradual reduction in demand on the street drainage system. 3. Police, Fire, Health, Care - Crime and security are major concerns of the Omni area residents and businesses. The Miami Police Department will be encouraged to provide all feasible resources to serve the Omni area. Extra police service, beyond the normal level of service able to be supported by the City budget, may be able to be funded through tax increment revenues or a special taxing district. Excellent fire and emergency rescue service is provided by the City of Miami Fire Station #2 within the redevelopment district at 1901 N. Miami Avenue. Jackson Memorial Hospital, a public facility, is conveniently located one mile to the west. 4. Schools - The Miramar Elementary School, located at 109 NE 19th Street, is the neighborhood public school serving grades 4-6 in the Omni area. (The school is paired with Buena Vista Elementary, located at 3001 NW 2nd Avenue, for grades K-3.) The Dade County School system has plans to replace both Miramar and Buena Vista with a new elementary school that would replace the existing Robert E. Lee Jr. High School at 3100 N.W. Sth Avenue. Consideration should be given to retaining Miramar Elementary School to serve the high density residential development projected for the Omni and Edgewater neighborhoods. The Dade County School System also operates a technical training center and the Anna Brenner Meyer Telecommunications Center within the redevelopment area. Both of these facilities provide valuable anchors in efforts to increase commercial development. - 17 - 86.." ssF. f IV. D. TRANSPORTATION tElim Access to the Omni area is provided by the regional expressway system with interchanges on I-395 and SR 112; arterial streets including Biscayne Boulevard, N.E. 2nd Avenue, N.E. Ist Avenue, North Miami Avenue, N.E. 20th Street, and N.E. 14th Street; and two direct causeway connections to Miami Beach. A few of these access routes are highly congested during rush hour, but provide excellent access during remaining time periods. The street system within the Omni area can be characterized by a few north -south arterial streets that are highly congested during morning and evening rush hour, a good overall grid system of arterial and collector streets with excess capacity, and an over abundance of local streets, and alleys that would be desirable to abandon for the purposes of reducing vehicular turning movements anL promoting lot assembly for redevelopment. Numerous traffic studies have identified physical capacity improvements to the street system that are feasible to implement. Those improvements, illustrated on Map 8 and listed below, are primarily confined to use of existing public rights - of -way in order to minimize the social and economic impacts of extensive new acquisition programs. The only notable exception is the proposed extension of N.E. 20th Street between N.E. 2nd Avenue and Biscayne Boulevard. Recommended Improvements 1. Construct the planned Omni extension of the Metromover system. 2. An additional Metromover station should be built by the adjacent developer to serve the Herald Plaza area. 3. Extend the proposed improvements to N.W. 1st Avenue ("West Side Corridor", the 5 lane boulevard planned for Southeast Overtown/Park West and the Central Business District) from N.W. 11th Street to N.W. 20th Street. 4. Reconstruct the intersection of N. Miami Avenue and N.E./N.W. 14th Street to improve the alignment of N. Miami Avenue. S. The existing I-395 interchange in the vicinity of N.E. 1st Avenue and N.E. 2nd Avenue should be re -studied for efficiency improvements, particularly the potential for east -to -northbound turns from I-395 to N.E. 2nd Avenue. 6. Reconstruct N.E. 2nd Avenue north of N.E. 13th Street to provide two northbound and two southbound through lanes with center turn lane. 7. Reconstruct North Miami Avenue north of N.E. 17th Stree t to provide two northbound and two southbound through lanes with center turn lane. 8. N.E. 20th Street should be extended to Biscayne Boulevard from its present eastern terminus at N.E. -2nd Avenue, through right-of-way acquisition and improvement. A further eastward extension to the Bay connecting North Bayshore Drive should be considered in connection with development of that area. - 18 - I I If E I`� J "PMEt ME �1 1. 4dopted Metrcoover alignment and stations. 2.. Additional i4tt—n-cver station to be constructed by adjacent development. 3. Extend N. W. lst Avenue (West Side Corridor) improvements from N. W. IIth Street to N. W. 20th Street. 4. Reconstruct N. Miami Avenue to improve intersection alignment. S. Restript N. E. 2nd Avenue to provide 1 north bound thru lane from 1-395 exit. 6. Reconstruct N. E. 2nd Avenue to provide 2 north bound and 2 south bound thru lanes with center turn lane. 7. Reconstruct N. Miami Avenue to provide 2 north bound and 2 south bound thru tees with center turn last. 8. Acquire right-of-way and reconstruct N. E. 20th Street with 2 lanes east bound and 2 lanes wart bound. 9. Redesign/restripe Biscayne Boulevard to iaorove traffic flow. 10. Extend M. E. lath Street to Herold Plaza in conjunction with development of adjacent pr;darty. Proposed Transportation Improvements OMNI AREA REDEVELOPMENT PLAN VE?CnAN CAU3EWY Met AffrKX Map 8 CffVOFMIAMPLawr AND Y Of CAVii i"t 9. Redesign/restripe Biscayne Boulevard to improve traffic flow and merging maneuvers. 10. N.E. 14th Street east of N. Bayshore Drive should be realigned to eliminate the offset intersection at N. Bayshore Drive and connect to Herald Plaza in conjunction with development of adjacent property. 11. If a convention center is to be constructed in the area, its cost should include relocation of the planned Metromover guideway and station to serve the center. The major strategy for easing congestion at peak hour is to shift some of the traffic away from the most congested locations (i.e., the I-395 ramps, Biscayne Boulevard, N.E. 2nd Avenue and N.E. 1st Avenue toward the underutilized streets in the western portions of downtown (i.e., North Miami Avenue and N.W. 1st Avenue). Planned construction of connecting ramps between I-95 and SR 836 outside the study area will provide an alternative to the Omni area I-395 ramps for a significant amount of traffic generated by the Central Business District. The 1981 transportation analysis prepared for the SPI-6 zoning district by Barton- Aschman Associates, Inc. concluded that buildout of the commercial floor area ratio permitted in the SPI-6 district could not be supported by the street system if all feasible improvements were implemented. Therefore, emphasis is provided in this plan toward building a balance of residential uses that will serve downtown employees, thereby reducing peak hour work related auto trips. The Downtown Development of Regional Impact study will further define needs and feasibility for future street improvements, and provide safeguards to ensure that improvements are provided coincident with new development. Map 9 illustrates the street network system that is needed to maintain adequate circulation within the redevelopment area; and it shows the streets that could be closed to promote lot assembly and redevelopment. Such street closures would only be initiated upon request of all adjoining property owners. Existing underground utilities may need to be protected with easements in the event of a street closure. Public transportation in the area now consists of Metrobus service on N.E. 1st and 2nd Avenues, N.E. 14th, 15th, 17th and 20th Street/17th Terrace, and Biscayne Boulevard. The Omni Extension of the Metromover system is planned and awaiting release of authorized federal funds. Construction of this system is of critical importance to the revitalization of the Omni area. The system would provide an economic development stimulus by serving intra-downtown trips, and would provide direct access to the Metrorail. system. The Florida East Coast (FEC) Railway right-of-way, which lies on the west boundary of the study area, has been suggested as the location of a future Metrorail extension, or for the Florida High Speed Rail (HSR) line, or both; hence it should be protected from encroachment along its length.. A water taxi system is recommended to be implemented with frequent stations along. Biscayne Bay and the Miami River in the downtown vicinity. Vessels should be - 19 - "mop" mm STREETS THAT COULD BE CLOSED TO PROMOTE SITE ASSEMBLY Proposed Street Network OMNI AREA REDEVELOPMENT PLAN a VENMM C.WSEWA'r Mae MTHM CAUSEWAY Map 9 Hill I I 0 200 400 600 WT (W MAN PLANNING DIP"TMENY AND DEPARTMENT Of MIELOPMENT I 86-8GS small, unique, and festive in design, and operate like a land taxi system taking passengers to their individual destinations on demand. The water taxi system is primarily intended to link hotels and waterfront' attractions, providing an enjoyable alternative transportation mode for visitors. 20 IV. E. HISTORIC PRESERVATION PLAN The Omni area contains a number of structures and sites that are important in the historical and architectural development of Miami. The earliest is the City of Miami Cemetery, which dates to 1897, and reflects Miami's pioneer era. Miramar, one of the Citv's early exclusive residential subdivisions, was laid out in 1912, while Biscayne Boulevard, the City's first "shopping center," was completed in 1927. Buildings in the Omni area also reflect the wide variety of architectural styles common to Miami, including fra„ee and masonry vernacular, Mediterranean Revival, and Art Deco. The Dade County Historic Survey, completed in 1979, identified approximately 140 structures of varying degrees of historic and/or architectural significance within this area. Since that time, approximately 30 of these have been demolished, while many others have been drastically altered. Two buildings are listed in the National Register of Historic Places (Miami Woman's Club, 1737 N. Bayshore Drive and Trinity Episcopal Church, 464 N.E. 16th Street), while one has been determined eligible for the National Register (Sears, Roebuck and Co., 1300 Biscayne Boulevard). In addition, two properties (Miami Woman's Club and City of Miami Cemetery, 1800 N.E. 2nd Avenue) have been designated as local historic site by the City of Miami under its Heritage Conservation Ordinance. As part of the Downtown Master Plan, the Dade County Historic Survey was updated, and all buildings eligible for the National Register of Historic Places and/or local historic site designation were identified. These sites are listed on the following page and illustrated on Map 10. It is the policy of the City of Miami to promote the preservation of these historic sites and to encourage that any remodeling respect their historic character. To promote preservation, the City will nominate all of the ten potentially- eligible buildings to the National Register of Historic Places. If listed in the National Register, income producing buildings would be eligible for a 20 percent investment tax credit for rehabilitation. Other federal incentives would also be available. The City will also encourage the designation of all eligible buildings as local historic sites under the Heritage Conservation Ordinance. This ordinance provides for certain zoning incentives in exchange for the preservation of a building. These incentives may include floor area or density bonuses, transfer of development rights, change in use, and modification of height, setback, parking and other zoning regulations. The City will continue to explore other incentives to encourage preservation. Because of its historic and architectural significance, as well as its visual prominence at the entrance to the Omni area, the Sears Building is worth of special attention. Every attempt should be made to find a buyer who will rehabilitate the building, either individually or as a component in a larger development. In the meantime, the exterior should be cleaned and painted in Art Deco colors to eliminate the negative visual image the building currently projects. - 21 - PROPERTIES OF ARCHITECTURAL AND/OR HISTORIC SIGNIFICANCE Properties of major architectural and/or historic significance that are listed in or potentially eligible for the National Register of Historic Places: Address Historic Name 1. 1737 N. Bayshore Drive Miami Woman's Club 2. 1300 Biscayne Boulevard Sears, Roebuck and Company 3. 1401 Biscayne Boulevard Boulevard Shops 4. 1825 Biscayne Boulevard Algonquin Apartments S. 1836 Biscayne Boulevard First Church of Christ Scientist 6. 1845 Biscayne Boulevard Priscilla Apartments 7. 1367 N. Miami Avenue Citizens Bank 8. 1401 N. Miami Avenue Fire Station No. 2 9. 1221-27 N.E. 1st Avenue Kentucky Home 10. 1800 N.E. 2nd Avenue City of Miami Cemetery 11. 464 N.E. 16th Street Trinity Episcopal Cathedral 12. 109 N.E. 19th Street Miramar Public School 13. 137 N.E. 19th Street Temple Israel Additional properties of architectural and/or historic significance that are potentially eligible for designation by the City of Miami as local historic sites. 1. 1227 N.E. 1st Court 2. 1603 N.E. 2nd Avenue 3. 1757 N.E. 2nd Avenue 4. 1799 N.E. 4th Avenue 5. 263 N.E. 18th Street 6. 219 N.E. 20th Street Anderson Hotel Annex Franklin Court Apartments S A S Restaurant Pelican Apartments -; i M 54 J V. IMPLEMENTATION PROGRAM The Community Redevelopment Act outlines the minimum criteria for community redevelopment plans and authorizes the use of various municipal powers to implement them►. However, the success of the redevelopment depends, to a large measure, upon the effectiveness of mechanisms available to implement and regulate the plan recommendations. This section outlines major implementation tools and regulations that shall apply to new development and redevelopment within the Omni Redevelopment Area. A. ZONING PLAN The Zoning Plan provides a major vehicle for implementing the Proposed Land Use Plan. It proposes some changes to the existing zoning within the area. In general, the existing zoning categories are retained, in some cases SPI (Special Public Interest) overlay districts are introduced, and some revisions are proposed to district boundaries as necessary to accomplish redevelopment objectives. Existing zoning is shown on Map 11; and proposed changes are shown on Map 12 and described below. Zoning categories incorporated within this plan are illustrated on Map 13 Proposed Zoning. 1. Create a SPI-6.1 zoning district to replace the existing pattern of unrelated zoning districts in the area east of North Bayshore Drive. This new zoning classification should have all of the essential characteristics of the adjoining SPI-6 district; however, greater emphasis should be placed upon residential uses and special waterfront development design standards. To ensure that residential uses are developed within this district or in nearby areas, the Floor Area Ratio for non-residential uses should be limited to approximately 3.0, with bonuses up to FAR 6.0-8.0 (depending upon proximity to Metromover Stations) in exchange for on -site housing or assistance for an equivalent amount of off -site housing through contribution to the City of Miami's Affordable Housing Trust Fund. The following existing zoning districts should be changed to SPI-6.1: -- CR-2/7 immediately south of Pace Park -- CBD-1/9 between North Bayshore Drive and Biscayne Bay north of N.E. 15th Street -- CR-3/7 along North Bayshore Drive and west of N.E. Bayshore Court and Herald Plaza -- CG-1/7 east of N.E. Bayshore Court and Herald Plaza 2. Expand the western boundary of the CR-3/7 district located between N.E. 17th Terrace and N.E. 20th Street to include CG-1/7 district lying east of N.E. 2nd Avenue. 3. Extend and straighten the western boundary of RG-3/7 district located north of N.E. 19th Street to include a small pocket of RG-3/6 district. -23- lil ..- im 30-1/9 GENTHAL bUblNhtSb U15THIUT PI-6 CENTRAL COMMERCIAL RFSIn im:1491: r.xisling dLuning a .. me orm CIUNI AREA REDEVELOPMENT PLAN me an� sic Mee All rvm CAUSt1MW FROM: 1 CG-1 /7 TO CR-3/7 2 RG-3/6 TO RG-3/7 3 CR-2/7 TO SPI-6.1 4 CDD-1/9 TO SPI-6.1 5 CR-3/7 TO SPI-6.1 6 CG-1 /7 TO SPI-6.1 SPI OVERLAY DISTRICT Map 12 Proposed Zoning Changes o� 1 0 W.---..1` OMNI AREA REDEVELOPMENT PLAN owm" o. ~p �r� SPI-6 CENTRAL COMMERCIAL RESIDENTIAL SPI-6.1 CENTRAL COMMERCIAL RESIDENTIAL CG-2/7 GENERAL COMMERCIAL CG-1 /7 GENERAL COMMERCIAL CR-3/7 RESIDENTIAL COMMERCIAL RG-2/6 GENERAL RESIDENTIAL RG-3/7 GENERAL (RESIDENTIAL PR PARK AND RECREATION GU GOVERNMENTAL USE SPI OVERLAY DISTRICT SPI OVERLAY DISTRICT OMNI AREA REDEVELOPMENT PLAN w Mae 3RTKO CAUSEIMY Map 13 II111 I On a V".,.n,Nk" - "o cwE r 4. Create an SPI overlay district for the CR-3/7 district located between N.E. 17th Terrace and N.E. 20th Street. Such SPI district would permit an intensity increase from sector 7 to sector R when such added intensity is used for on -site housing, or when an equivalent amount of off -site affordable housing is assisted by contribution to the City of Miami's Affordable Housing Trust Fund. S. Create an SPI overlay district for the CG-1 and CG-2 areas located west of N.E. 2nd Avenue that would contain special design guidelines to ensure that the wide variety of commercial and light industrial uses permitted there would not create adverse visual impacts on one another. A portion of the proposed Redevelopment District falls within the boundary of the Dade County Shoreline Development Review Corittee (SDRC)1 As a result, this plan and any proposed "development action" within the area must undergo review by the SDRC of the Executive Council of the Dade County Developmental Impact Committee (DIC)3 . The Shoreline Development Review Ordinance contains certain review criteria that are to be utilized by the SDRC in their evaluation of this plan and in the evaluation of any proposed development action to be taken within the Shoreline Development Review Boundary. These criteria include standards for shoreline 1 Section 33D-32 of the Dade County Code describes the "shoreline development review boundary" with a map and as being: "defined by the nearest public roadway, or extension of such roadway alignment, paralleling the shoreline of Biscayne Baby and the northern embayments of Dumfoundling Bay, Maule Lake and' Little Maule Lake and Intracoastal Waterway from N.E. 163rd Street to the Broward County Line. Where it is not feasible to follow existing road configurations or extensions of those alignments, zoning district boundaries shall be used to define the boundaries. The boundary line shall extend southward from the Broward County Line to the northernboundary of Biscayne National Park". Development Action" is defined by Section 33D-32 of the Dade County Code as: "Any standard fpr, coastal construction permit as defined in Chapter 24 of the Dade County Code or any plat approval, building permit, zoning permit or approval, rezoning or district boundary change; varience; special exception; conditional permit; unusual use; special use permit or any other zoning action ancillary structure or change the existing grade elevation or use of any parcel whithin the shoreline development of a review boundary". 3Section 33D-34 and 33D-35 of the Dade County Code set forth the respective duties and responsibilities of the SDRC and the DIC. Primarily, the SDRC has jurisdiction and responsibility regarding the review and recommendations as' to this Redevelopment Plan while the DIC may become involved in certain decisions regarding the issuance of d:, 'opment apnrovals and the necessity for shoreline review or exemptions ti :from. -24- setbacks, visual corridors, side setbacks and side street setbacks, as well as conditions where the criteria may be waived by- exception in order to provide additional publicly accessible amenities along the shoreline of Biscayne Bay. These criteria are set forth in Section 33D-38 of the Dade County Code and are incorporated within this plan, by reference. While adopting of this Plan will not actually implement any "developmental actions" as defined by the Code, the criteria of the Shoreline Development Ordinance are intended to be applied to the recommendations of this plan dealing with those properties within the boundaries of the Shoreline Review Ordinance. Thus, the criteria of the Shoreline Development Ordinance should be applied in the individual determinations of this plan. For example, this plan does recommend certain zoning changes to take place in the future that would apply a new SPI-6.1 district along the shoreline of Biscayne Bay. When the new SPI-6.1 district regulations are written, the Shoreline Development standards will be incorporated into the requirements of the district. Once the proposed zoning changes are adopted, individual applications for development action will be reviewed by the Shoreline Development Review Committee. Y. B. WITAL IMPROVEMENT PROJECTS The redevelopment plan provides for a range of capital improvements to accomplish the objectives 3f the plan. Capital improvements include: 1. Acquisition and assembly of one or more sites for public facilities to become activity anchors in order to stimulate additional redevelopment by the private sector. 2. Acquisition and assembly of one or more sites for disposition for private redevelopment in order to create specialized industry activity anchors that would create additional economic activity as a catalyst project. Should this catalyst project proceed, the initial tax increment could be utiliz3d to create an available capital pool of between 11.5 million to 13 million through the issuance of a tax increment revenue bond in 1987 or 1988, which could be used for land assembly. 3. Public infrastructure improvements including, but not limited to, utilities, streets, sidewalks, parks, landscaping and upgrading of publicly -acquired easements. The capital improvements will be accomplished over time at a pace set by the resources available for their completion, the primary resource being the tax increment revenues and land acquisition contemplated does not include residential properties. The construction of the Omni Extension of the Metromover system is also scheduled for construction, the financing of which is to be supported in part by a special taxing district for the Omni area. In addition to the above capital improvements which are recommended as part of the redevelopment plan, the 1985-86, City of Miami Capital Improvement Program includes the following projects for the Omni area: 1. Downtown Component of Metromover - Stage II The City of Miami has made a commitment to Metro -Dade County to finance a percentage of the project cost of Stage II. This consists of a total of $7,239,300 by the year 1991, from the City of Miami General Fund. 2. Edgewater Street Improvemments - Phase II This project consists of the rebuilding of streets, which are to be selected by the City of Miami Public Works Department at the time of construction. Improvements will include asphalt pavement, concrete sidewalk, concrete curbs and/or gutters, storm drainage and landscaping. Phis consists of a total of $1,500,000 by the year 1990; of which $1,000,000 is to be appropriated from Highway G.O. Bonds, and $500,000 from 1984 storm sewer G.O. Bonds. 3. Miramar Storm Sewers Project - 26 - 816"°-868 This project involves replacement of an existing storm sewer system to be accomplished in conjunction with the rebuilding of streets in the area bounded by N.E. 20th Street, Biscayne Boulevard, N.E. 17th Terrace, and Biscayne Bay. This consists of a total of $600,000 by the year 1989, all of which is to be appropriated by 1984 Storm Sewer G.Q. Bonds. 4. Doran Jason/School Board Feasibility Study This project will study the feasibility of an office/retail/parking building on both sides of N.E. 14th Street between N.E. 1st and N.E. 2nd Avenues, to be owned and primarily utilized by the school board, This consists of a total of $35,000 for 1987, all of which will be appropriated from Off-street Parking Revenues. 5. Renovation of all Fire Stations This project involves the renovation of all existing Fire Stations, specifically Fire Station No. 2 in the Omni area. This consists of a total ( for the entire city) of $697,500 by the year 1987; of which $472,000 has already been appropriated by 1981, Fire G.O. Bonds, and $225,5000 will be appropriated by 1981, Fire G.O. Bonds. L Y. C. RELOCATION The Community Redevelopment Act specifies that any plan prepared under this Act provide assurances that there will be replacement housing for the relocation of persons temporarily or permanently displaced from housing facilities within the redevelopment area [Fla Stats. 163.362(1)]. Chapter 163 also mandates that an appropriate procedure be established and adhered to which insures that such # families are (relocated to decent and safe housing without any undue hardship [Fla. C j Jtats• 163.360(6)(a)]t Because no public acquisition activities are currently being proposed, a relocation plan is not included at this time. Public demolition activity, consistent with City-wide policies, will be limited to those cases where a health or safety problem is present which can not be resolved through code enforcement. In the event that public acquisition and subsequent relocation proves necessary, a detailed relocation plan in full conformance with Chapter 163 (and the Uniform Relocation Assistance and Real Property Acquisition Properties Act of 1970) will be developed i and submitted for public review and approval, as required with any plan amendment 1 under this Act. 28 - 86-NEE V. 0. DISPOSITION OF PROPERTY Any publicly owned property to be transferred for private development as part of this redevelopment plan will be either sold in conformance with Section 18 of the Miami City Code, or will be made available on a long-term lease basis. Private redeveloper(s) of leased property will be selected under the procedures of the Unified Development Process (UDR) Ordinance of the City of Miami (Ordinance 9572) . X Y. E. REHABILITATION Certain residential, comerci al and industrial properties within the redevelopment area are in a deteriorated and/or substandard and/or underutilized condition and rcqui re rehabilitation and/or adoption to uses related to the new economic activity to be fostered within the area as part of this plan. An effort will be made to provide a range of incentives to allow rehabilitation to occur on a widespread basis in conjunction with the implementation of other components of the redevelopment plan, resulting in a widespread upgradinv of the area aru' additional new private capital investment. Part of the exterior rehabilitation of key commercial properties may be accomplished through the use of facade easement/facade improvement arrangements, whereby facade easements are granted to the City in exchange for improvements being made to the exterior facades of buildings. V. F. ECONOMIC DEVELOPMW PLAN The creation of additional economic activity within the project i , ed is the central purpose of the redevelopment plan. The scheduled Omni Extension of the Metromover system into the area will allow an added linkage to the Downtown Miami Central Business District. This, in itself, should increase the location desirability of the project area for a broad range of activities. In addition, market support for new economic activity will cone from the continued development and occupancy of the Omni area hotels, condominiums, restaurants, entertainment, and shopping facilities. However, this plan recognizes the need to actively seek additional activity to fully accomplish the redevelopment objectives. This activity will come from the location and concentration of new specialized industry anchor activities and new public use facilities in the area, key components of this redevelopment plan. The redevelopment plan has identified a range of possible specialized activities, one or more of which could be concentrated at locations in the redevelopment area. Preliminary market investigation suggests these that these activities could include a media/film district, an exhibition center, port -related support functions and an apparel mart. Additional market research is required to specifically document which activities might. be most feasible for concentration This detailed research will be accomplished as implementation within the project area. proceeds. Several sites within the project area are ideally suited to be locations for concentrated new specialized use anchors. These sites include several major holdings of large, consolidated land, which at this time are either vacant or underutilized. A key component of the economic development strategy is facilitating the redevelopment of these land holdings, utilizing whatever public resources might be available (See Map 14). This could include utilization of tax increment revenues for partial or complete site acquisition for redevelopment. The immediate strategy is to identify a catalyst project that can be quickly intiated to provide a stimulus to achieving other goals of the redevelopment plan. Should this catalyst project involve public land acquisition, the initial tax increment could be utilized to create an available capital pool of between $11.5 million and $13 million from a taxable or tax-exempt tax increment revenue bond. (See financial projections in Section VI.B.). Another package of development incentives is available for that portion of the redevelopment area west of Biscayne Boulevard through the newly established Florida Enterprise Zone Act. (The City and County have agreed on a designation of the area shown on Map 15.) New developments or business activities occurring in the enterprise zone are eligible for state corporate income tax credits, state sales tax exemptions on building materials and equipment, and state sales tax remittances keyed to employment. In addition, the City and County have the option of approving additional incentives for the zone, including an abatement of property taxes for new construction. For most situations, the incentives provided by the State through the enterprise zone designation are not major subsidies to attract development and business activity. The property tax abatement local option can be significant, but approval - 31 - . [�•--.-W"-CITY Of MAW CEN41", co z il��l i I to d-i1` E� � - - PRIMARY DEVELOPMENT OPPORTUNITY AREAS SECONDARY DEVELOPMENT OPPORTUNITY AREAS l • Development opportunity Areas Map 14 iialt r i o wo .00 400 an OF WON PLA#Wk4 EiQ}y"Tj MO ElEftA"fiANY Q# rAw . ICA UMMUNATED At LMIIADV 1_ 4%k7 TO e =AI-1MmIe RPRIME zu OCR 3;196 ►PPROVeu ErnrIxm L"nE min required. A more of the City and County electorate is req complete discussion of the enterprise zone program is provided in Appendix C. Other developments occurring outside the project area will also provide an economic stimulus for area redevelopment. The scheduled expansion of the Miami Beach Convention Center, located conveniently across the Venetian Causeway on Miami Beach, will increase convention usage of the Omni area hotels and related uses. The April 1987 opening of the Baysi de Specialty Center, and the continued redevelopment of the Southeast Overtown/Park nest Redevelopment area, both to the south of the project area, will also provide a new impetus for utilization and redevelopment of the project area. 32 �i� VI. FINANCING AND MIINIIGDW A. Estimated Public Costs The public actions outlined in this plan are currently anticipated to be almost exclusively funded from the projected tax increment revenues. Therefore, actions must be scaled ar,d timed to not exceed the projected magnitude and timing of the receipt of the tax increment revenues. Current projections estimate an annual initial increment revenue to the Redevelopment Trust Fund of approximately $1,500,000. As new private investment occurs, this can be expected to increase accordingly. However, for the initial stages of plan implementation, public costs must be kept at a level to be supportable by an annual income stream of this amount, either utilized on an annual program basis or on a financed income stream basis. VI. B. FINANCIAL STRATEGY AND STAGING The financial strategy, simply stated, is to utilize the tax increment revenues to fund the publ is cost related to the public actions contemplated by the redevelopment plan. The range of public actions to accomplish or implement this plan must be staged to allow the tax increment revenues to be available to fund these a :ions. Under this constraint, actions must be staged to require no more than $1,500,000 per year in sunk costs or in financed costs. Alternative uses for the tax increment revenue include: 1. Utilization of the tax increment revenue on a non -financed basis, whereby an annual improvements program is implemented on a level that is limited by the annual increment. A previously stated, the annual increment revenue is estimated to be $1.5 million in 1987, assuming the plan is fully adopted by the end of 1986. 2. Utilization of the tax increment for issuing a tax-exempt tax increment revenue bond in 1988. Assuming the current tax-exempt rate for this type of non -GO (general obligation) bond at 8.5 percent, with a 1.25 debt service coverage ratio, the $1.5 annual increment could float a bond of approximately $13 million. The federal tax legislation pending before Congress will severely restrict the ability of cities to use tax-exempt tax increment revenue bonds for redevelopment. (A full discussion of this issue is included as Appendix 0 to this document.) 3. Utilization of the tax increment for issuing a taxable tax increment revenue bond in 1988. Assuming the current taxable rate for this type of non -GO bond at 10 percent, with a 1.25 debt service coverage ratio, the $1.5 million annual increment could float a bond of approximately $11.5 million. (A taxable bond would not be bound by the restriction tied to a tax-exempt bond referred to above, affording the City far greater flexibility in use of funds.) 4. Utilization of the tax increment on a non -bond basis, through a contract loan or installment purchase basis with a private party agreeable to such an arrangement. This would allow maximum flexibility and may be an efficient way to finance the increment in certain specific situations. APPENDIX A LEGAL DESCRIPTION All that portion of the following listed record plats lying. within the area bounded by the Florida East Coast Railroad right-of-way on the West. the Northerly right-of-way line of I-395 on the South, the Westerly shore of Biscayne Bay on the East and the Southerly right-of-way of N.E. 20 Street on the North: Plat Name Plat Book Page The Causeway Fill 5 120 First Addition to Serena Park 80 8 Resubdivision of Pershing Court and Walden Court 4 148 Serena Park 76 86 Pershing Court 4 147 Walden,Court 4 148 1/2 Walden Court First Addition 6 23 Rickmers Addition emended 4 149 Windsor Park Third Amended 4 145 Windsor Park Second Amended 4 123 The Villa La Plaisance 4 114 Boulevard Tract 100 65 Belcher Oil Company Property 34 29 The Garden of Eden 4 12 Nelson Villa and Garden of Eden Resubdivision 9 174 Nelson Villa and Garden of Eden Amended 30 20 Amended Map of Nelson Villa Subdivision 4 81 Biscayne Park Addition Amended 4 22 Rice and Sullivan Subdivision 4 64 Amended Plat of Miramar Plaza 33 18 Miramar Third Amended 5 4 Biscayne Park Addition 2 24 Replat of a Portion of Nelson Villa Amended 56 69 ASC Tract 89 21 Margaret Pace Park (Unplatted) Coral Park 2 66 Resubdivision of Coral Park 4 106 Grand Union Replat 76 78 Mary Brickell Subdivision B 9 Windsor Park 3 147 Rickmers Addition Amended 3 2 ' Alice Baldwin Addition 1 119 Alice Baldwin, Jenny M. & Charles E. Oxar Subdivision Amended 8 87 Ward & Havling's Resubdivision 4 185 Charles E. Oxar Block 24 Amended 3 101 Charles E. Oxar Block 15 Corrected 3 58 Alice Baldwin Block 1 Corrected 6 43 Lindsey Hopkins Education Center 84 48 Heyn Prop. Inc. Resubdivision 6 93 North Miami A 49 1/2 Lindsey Hopkins Educational Center North Parking Lot 93 90 T.W. Palmers Resubdivision 4 60 :wc Plat Name Plat -Book Page W.T. Heslington Subdivision 8 97 City of Miami Cemetary 2 16 San Jose 3 158 Niles Court Resubdivision 32 36 Fire Station Site 1972 93 42 Seitter Addition Amended 2 60 Style Accessories Subdivision 62 8 Replat of lot 2, North Miami 57 69 Omni international 102 3 Plaza Venetia 107 91 Herald Park 121 4 Bay Serena 7 135 Replat of Johnson and Waddell so 15 Johnson and Waddell B 53 Jefferson Addition 108 55 Biscayne Federal Plaza First Addition 116 7 Amended Plat of Les Violins 109 16 Biscayne Federal Plaza Amended 109 77 Replat Biscayne Federal Plaza 103 60 and all that portion of any unsubdivided lands lying in Section 36, Township 53 South, Range 41 East and Section 31, Township 53 South, Range 42 East, lying within the area defined above, and all that portion of any street, avenue, terrace, lane, way, derive, court, place, boulevard or alley lying within the area defined above and any other subdivisions, not listed above, lying within the above defined area. m:H58.q Excerpts from Downtown Development Plan, Miami, Florida - Economic Analysis -and Growth ProjectionsMarch, 1986 Table S. HOUSING DEMAND PROJECTIONS DADE•COUNTY AND DOWNTOWN MIAMI AREA, 1585-2005 (Based on population projections) 1985 1990 1995 2000 2005 Dade Count opu at on 197709000 11932,700 2,034,400 29125,200 2,2109200 Household Population 1,745,220 Household Size 2.56 Vacancy 10.0% Households 6819727 Total Units 757,500 Additional Units Required A. Period -Demand Dade County Demand Downtown Share of Dade County Alternative I: Trend @ 7.5% @ 10.5% OMNI Overtown/Park West CBD Brickell Alternative II: Latin Impact @ Plus 20% OMNI Overtown/Park West CBD Brickell 1,905,642 2,005,918 2,095,447 2,179,257 2.55 2.53 2.52 2.50 8.8% 8.6% 8.4% 8.3% 747,311 792,853 831,527 871,703 819,400 867,500 907,800 950,600 61,900 489100 40,300 42,800 1985-1990 1991-1995 1996-2000 2001-2005 39100 -- -- •- -- 3410 -- -- •- -- 49230 49490 350 800 900 19000 2,000 2,000 29500 29500 150 200 230 250 600 610 ' 600 740 39720 41,330 5,080 59390 700 19130 11,380 19480 29000 2,000 29500 29500 220 300 300 410 800 900 900 19000 HAMMkk • SRAX • G&AWGF. • .4M%L t.1A1 • B-1 86'-"86E Excerpts from Downtown Developme Growth Pro3ect ons, March,"I ,. - Economic Analysis and Table 5. HOUSING DEMAND PROJECTIONS DADE COUNTY AND DOWNTOWN MI 1 -2 0 (Based on -population projections) (Continued) B. Cumulative Housing Demand 1985-1990 19911995 1996-2000 2001-2005 Alternative I: Trend 350 1,150 2,050 3,050 Overtown/Park West 29000 4,000 6,500 91,000 CBD 150 350 580 830 Brickell 600 1,210 1,810 29550 Alternative II: Latin Impact OMNI 700 1,830 3,210 4,690 Overtown/Park West 2,000 4,000 6,500 9,000 C8D 220 520 820 1,230 Brickell 800 11,700 29600 3,600 Source: Hammer, Siler, George Associates. Cumulative Subarea Housing Summary Absorption, 1985-2005 Alternative I Alternativ=e OMNI 3,050 49690 Overtown Park West 91000 99000 CBD 830 19230 Brickell 2 650 3 600 Total HAA/MER • Smut • Gwimt. • LS B-2 86--"868 I' Excerpts from Downtown Development Plang Miami Florida - Economic Anal sis Growth Project ons, arc . Table 12. ALTERNATIVE I: PROJECTED DEMAND FOR OFFICE DOWNTORN MIAMI B SUB Annual Downtown Annual Square Feet Of Office Space Demand Period emend Omni Overtown Core Bric e 1985-1990 480,400 24,000 . 28,800 288,300 . 139,300 1991-1995 446,200 26,800 35,700 258,8GJ IY40900 1996-2000 498,100 34,900 49,800 283,900 1291,500 2001-2005 546,900 43,800 60,200 306,200 136,700 Source: Hammer, Siler, George Associates. Table 13. ALTERNATIVE I: CUMULATIVE PROJECTED DEMAND FOR OFFICE SPACE. DOWNTOWN MIAMI BY SUBAREA. 1985-2005 Downtown Downtown Demand Gy Subarea Period DemanT Omni Overtown Core r c Me 1985-1990 2,4029000 120,000 1449000 19441,500 696,500 1991-1995 4,633,000 2549000 3229500 29735,500 193219000 1996-2000 7,1239500 4289500 5711,500 49155,000 199689500 2001-2005 998589000 647,500 8729500 596869000 296529000 Source: Hammer, Siler, George Associates. Table 14. ALTERNATIVE II: PROJECTED DEMAND FOR OFFICE SPACE. DOWNTOWN MIAMI. 1985-2005 Dade Downtown Count Market Downtown Office Demand Period Demand SHare ota erioa Cumulativi 1985-1990 8,498,500 32.5% 2,762,000 297629000 1991-1995 79774,000 33.0% 2,565,400 59327,400 1996-2000 895509300 33.5% 2,864,300 89191,700 2001-2005 99248,900 34.0% 39144,600 1193369300 Source: Hammer, Siler, George Associates. HAMMER • S111A • GCOk(;F • Ax+ex•t.%i ►-s 8-3 MPWC11M 1 n u Excerpts from Growth Project velo ment Plan, Miami , Fl • - Economic Analysis an Table 15. ALTERNATIVE II: PROJECTED DEMAND FOR OFFICE 5PAGE. DOWNTOWN MIAMI BY SUBAREA,_-M-5-2005-- Annual Downtown Annual Square Feet Of Office Space Demand Period d Omni Overtawn Core Brickell 1985-1990 552,400 27,600 339200 331,400 1600200 1991-1995 513,100 30,800 41,000 297,600 1439700 1996-2000 572,900 409100 57,300 326,WO 1499000 2001-2005 6289900 50,300 69,2OO 352,200 1579200 Source: Hammer, Siler, George Associates. Table 16. ALTERNATIVE II: CUMULATIVE PROJECTED Downtown Downtown Demand B Subarea Period od Demand- Overtown Core r_ c e 1985-1990 29767,000 1380000 1669000 196570000 8011,000 1991-1995 59327,500 292,000 371,000 3,1459000 19519*500 1996-2000 89,192,700 492,500 657,500 497779500 292649500 2001-2005 111,336,300 7449000 19003,500 6,538,500 390509500 Source: Hammer, Siler, George Associates. W HAMMlR - SHIA - GE(W.1k. - A.1W1'IAru,- 0 MPFCIIY 1 A U Excerpts from Downtown Development Plan Miamis Florida - Economic Analysis -and Growth Projections. March, 1936. 2005, over 2,000 additional rooms can be supported by growing commer- cial, convention, and tourist demand. The future hotel room demand is distributed by subarea in Table 22. Table 22. ALTERNATIVE I: PROJECTLD HOTEL DEVELOPMENT BY SUBARD INN WN M mi Li -2 No. Hotels and Rooms b Subarea vertown Pe_-io_d Omni air west CBD Brickell Total 1985-1990 -- -- -• •- -- 1991-1995 -- -- 1 - 600 -- 1 - 600 1996-2000 1.- 400 1 - 400 -- •- 2 - 800 2001-2005 -- 1 - 600 1_600_ Total 1 - 400 1 - 400 1 - 600 1 - 600 4 - 2,000 Source: Hammer, Siler, George Associates. A number of factors were taken into consideration when allocating future hotel room demand, particularly anticipated developments and existing competitive facilities in each subarea. The abundance of existing hotels within the CBD area are believed to be sufficient to handle additional demand in the near term through increased occupancy levels. However, DRI's have been approved for 634 rooms in the CBD subarea by 1990. For this reason, 600 rooms have been allocated to the CBD for the 1991-1995 period. The major factor which will generate demand in the Overtown/Park West subarea is the exhibition center/sports area and the Bayside project. There are no existing competitive hotels in that subarea at present. The Omni and Brickell subareas would then capture convention spillover demand, as well as the anticipated increase in commercial demand, respectively. Alternative II Under this alternative, the number of room/nights demanded for comerci al and convention use would remain constant, while tourist - generated demand would increase greatly as a result of the degree of increased tourism reflected in Table 21 (from 5.9 million in 1985 to 11.6 million by 2005). As a result, the total number of competitive hotel rooms justified in downtown Miami would increase from 3,197 in 1985 to approximately 6,945 by 2005. This is shown in Table 23. Under Alternative II, seven new hotels, totalling 3,700 additional hotel rooms, could be supported in downtown by 2005. The distribution of these facilities is shown in Table 24 on the following page. HA AMEk • SILLK • GLOWA • A." IAS r.S 11--5 86' 868 Appendix 6 Excerpts from Downtown DeveloEgent Plan, Miami. Florida - Economic Analysis and Growth Projections; March, —i The same rationale was used in allocating hotel facilities and hotel rooms under Alternative II as for Alternative I. However, the - hstantial increase in tourist -generated room/nights justified the oevel opment of more hotel rooms. An initial major hotel of 600 rooms would be justified somewhat earlier than under Alternative I and, presumably, would be located in the CBD subarea. Table 24. PROJECTED ALTERNATIVE II. INCREASED TOURISM): HOTEL DEVELOPRENT TY SUBAREA1WN W M M _ No. Hotels and Rooms by Subarea vertown Period Omni aark-West CBD Brickell Total 1985-1990 -- -- 1 = 600 1 = 600 1991-1995 1 400 1 = 500 -- 2 = 900 1996-2000 -- 1 = 600 1 = 500 -- 2 = 1,100 2001-2005 1 = 500 1 = 600 2 = 1,100 Total 1 = 400 2 -1,100 3 = 600 1 = 600 7 - 39700 Source: Hammer, Siler, George Associates. HAMMER • Smm • GF. acw • AtiwclArv% B-6 Excerpts from Downtown Develo ment Plan Miami Florida - Economic Analysis and Growth Project ons, MarCh, 1986. Table 31. RE Alternative I AIL SPAT CBD Department Store Non -Department Store Shoppers' Goods Eating/Drinking Entertainment Subtotal Omni Department Store Non -Department Store Shoppers' Goods Eating/Drinking Entertainment Subtotal Overtown Park West Department Store Non -Department Store Shoppers' Goods Eating/Drinking Entertainment Subtotal BrickelI epartment Store Non -Department Store Shoppers' Goods Eating/Drinking Entertainment Subtotal Downtown - Total FUTURE DEVELO Cumulative Square Feet 1995 Z. OU5 240,000 5759000 1509000 370,000 15,000 509000 36.000 50,000 40,000 159000 359000 1080 lea - 25,000 409000 209000 359000 159000 40.000 35,000 800000 50100� Tea epartment 2409000 5759000 Non -Department Store Shoppers' Goods 1909000 4909000 Eating/Drinking 859000 2000000 Entertainment 35,000_ _ MON Total B-7 5509000 19325 9000 HASIMER • SJUA • GEORGE • A-.wt:iacrs nNNrIw Iw v Excerpts from Downt Growth Project o ; Development Plan, Miami, Florida Economic Analysis and rch 1986. Table 31. RECOMMENDED RETAIL SPATIAL PROGRAM FOR FUTURE DEVELOPMENT tcontinueo) Cumulative Square Feet Alternative II 1995— 2005 CBD Tepartment Store 250,000 600,000 Non -Department Store Shoppers' Goods 160,000 4009000 Eating/Drinking 209000 65,000 Entertainment 40.000 60.000 Subtotal �`0M. 1,125,OW Omni i Department Store Non -Department Store Shoppers' Goods - 509000 Eating/Drinking 209000 451,000 Entertainment Zp� Subtotal �� Overtown/Park West Department Store Non -Department Store Shoppers' Goods 301,000 45,000 Eating/Drinking 259000 409000 Entertainment 5��0 Subtotal �� Brickel l —Department _ Non -Department Store Shoppers' Goods 250000 609000 Eating/Drinking 45,000 1009000 Entertainment _ Subtotal 70j0 9 Downtown - Total Department t More 2509000 600,000 Non -Department Store Shoppers' Goods 2159000 5550000 Eating/Drinking 1109000 250,000 Entertainment 4�0,000 85�,00_0 Total 6159000 1,490,000 1/ Does not include Bayside which, although not open, has been considered as "in place of" for this analysis. Source: Hammer, Siler, George Associates. H+SIMILK • S114A • (ACIRCL • A%%iA lal►� B-8 1 y7f Nppenoix %, i TAX INCENTIVES OFFERED UNDER THE NEW ENTERPRISE ZONE ACT The Florida Enterprise Zone Act of 1984 offers substantial tax credits and other benefits to fi rms, especially corporations, which invest their resources in the distressed areas of the state. Thes? incentives fall into two major categories: 1) State incentives, and 2) Local incentives. This summary identifies the i ncenti v e s offe red by the p rog ram, and expl a ns how fi rms and individuals may take advantage of them. State Incentives: 1. The Community Contribution Tax Credit. This program is esi gne o encourage private corporations to participate in revitalization projects undertaken by qualified redevelopment organizations. By donating cash or assets to these projects, businesses can help to reverse the trend of deterioration in blighted areas. This program establishes a procedure under which a corporation may receive a tax credit of a 50% of its contributions to an eligible community development project. Chart 1 shows a sample computation of the tax advantage for a corporation based on its marginal tax bracket. I'n order to measure the impact of this incentive, a private corporation with $220.000 pre-tax income is used as an example. The cost of contributing $10,000 to an ordinary charitable project and to•a qualified community revitalization project in an enterprise zone is computed separately. As.shown in Chart 1, the net cost of. contributing $10,000 to a qualifying project for a private firm, after state and federal taxes,' is $2,403.. 2. Enterprise Zone Jobs Credit. This pro ram institutes an econom r c re ti on c red?t against the corporate income tax to businesses located anywhere in Florida which employ residents of enterprise zones.. The program offers businesses a significant tax incentive to reduce high unemployment rates in blighted areas. The credit is equal to 25% of wages paid, up to a maximum wage of $1,500 a month, for a period of 24 months. A sample computation of the tax benefit of this pr--gram is shown in Chart 2 for the same hypothetical firm. The firm receives a $9,000 tax credit for hiring two employees from enterprise zones, and saves $4,593 after federal and state tax adjustments. - 4 p F r Appendix C Page: 2 3. Enterprise Zone Property Credit. The new or expanded business Tax Fredif program is designea to encourage private corporations to participate in the revitalization of economically distressed areas. It provides incentives to firms to establish new businesses or expanH or rebuild existing businesses in enterprise zones. The amount of tax credit is set at 96 percent of the school portion of the local ad valorem taxes levied on new or expanded commercial property. A sample computation of the credit is shown in Chart 3, when a firm with a $220,000 pre-tax i-come invests $800,000 on a new building in an enterprise zone. The fi rm receives a tax credit of $5,184 and saves $2,651 each year for ten consecutive years. In addition to the three major incentives explained above, in 1984 the Legislature added the following incentives: 1. Sales tax exemption for building materials used in the rehabilitation of commercial real property in enterprise tones; 2. Sales tax exemption for business equipment used in enterprise zones; 3. Sales Tax remittance of $135.00 per month far. each full time employee or $65.00 per month for each part time employee. In either case, wages per month for each employee must not exceed $1500.00. This incentive is open to all types of business establishments ( corporations, partnerships, sole proprietorships, etc.). The program allows corporations to choose either the Sales Tax Remittance or the Enterprise Zone Jobs Credit, but not both. 4. Unspecified state regulatory relief in enterprise zones. Optional., local Incentives: The State Legislature also authorized the local governments to offer several local optional incentives as a supplement to the State incentives. These incentives are noted below. I. The economic development ad valorem tax exemption. As much as 100% of the property taxes of a new or expanded portion of an existing property may " be abated up to ten years. However, a local referendum is required to initiate the program. i Page: 3 a 2. Industrial Revenue Bond financing. The principal incentive provided by revenue bonds is the tax exempt status of the interest paid to the bondholders, which translates into lower borrowing costs and, therefore, reduced debt service or lease payments to the business against whose revenues the bonds are secured. Revenue bonds may be used to finance industrial park development, land acquisition, site preparation, etc. 3. Tax Increment Financing. Negotiable redevelopment revenue bonds may be issued by the local governments to finance undertaking of any community redevelopment project when authorized by resolution or ordinance of the governing body. Tax increment financing is often used by local governments to fund redevelopment efforts in blighted areas. 4. Muni c1 pal Utility Tax Exemption. Up to 50 percent of municipal utility .axes of new businesses in ar. enterprise zone may be abated. S. Occupational license Tax Exemption. The new enterprise zone program also gives the local governments the authority to abate the occupational license fees up to 50 percent. The new Enterprise Zone program goes into effect on January 1, 1987 and expires on December 31, 1994. C-3 Appendix C Chart. 1 , A sample case for the Community Contribution Tax Credit Program: An Ordinary A Qual ifying No Charitable Rehabi 1 i tati on Contribution Contribution Contribution Florida Net Income ------------ $220,000 ------------ $220,000 ------ ----- $220,000 • Contribution -- (10,000) (10,000) Florida Exemption (5,000) (5,000) (5,000) Taxable Income 2159000 205,000 2059000 Tax at 5.50 11,825 11,275 11,275 50% Tax Credit -- -- (5,000) Florida Taxes Due $110825 $11,275 $6,275 Federal Net Income $2209000 $220,000 $270,000 Contribution -- (10,000) (iv,000 ) Florida Tax (110825) (11,275) (61,275) Taxable Income $2089175 $198,725 $2039725 Federal Tax: 1st $25,000 x 17% $49260 $4.9250 ;4,250 2nd $25.000 x 20% 59000 50000 50000 3 rd $25,000 x 30% 79500 7,500 79500 4th $25,000 x 40% 109000 10,000 100000 Remainder at 46% 499761 450444 479 714 Federal Taxes Due ;76,511 $7291-64 ;74,464 Cash Required Contribution: None $109000 $100000 Federal Taxes $760511 $729164 ;74,464 Florida Taxes 11,825 119275 6,275 Total $88,336 $93,439 $90,739 Actual Cost of Contributing $10,000 None S5,103 $20403 C-4 Appendix C Chart 2 A sample case for the Enterprise Zone Jobs Credit Program: Assume 2 employees at $1,500 per month for 12 months. Total Wages $36,000 Tax Credit 25% of $36,000 a $9,000 Firm that Firm that does not qualify does qualify Florida Net Income - - - - - - - - - - - - - - - - $220,000 - - - - - - - - - - - - $220,000 Add Back Credit -- 9,000 Exemption (5,000) (50000) Taxable Income 215,000 224,000 5.5$ Tax 11,825 129320 Credit -- (9,000) Florida Taxes Due 11,825 39320 Federal Net Income $2209000 $220,000 Florida Taxes (119825) (39320) Taxable Income. $208,175 $2160680 Federal Tax: 1st $25,000 x 17% 2nd $25,000 x 20% 3 rd $25,000 x 30% 4th $25,000 x 40% Remainder at 46% Federal Taxes Due Total Taxes Payable Savings Realized Savings as Percent of Labor Cost Savings as Percent of Total Tax Bill 49250 4,250 59000 59000 79500. 7, 500 1090m r 10,000 49,.761 539673 $76,511 $809423 $889336 $83,743 -- $4,593 -- 12.8% mow, 0-5 5.2Z 0-5 5.2Z Appendix C.. . Chart 3 A sample case for the Enterprise Zone Property Credit Program: Assuming assessed value of new property - $800,000 Assessed value - $800,000 School portion millage rate - $6.75/b1,000 assessed value School portion ad valorem tax: $6.75/$1,000*$800,000 - 550400 Tax Credit - .96 x $5,400 - $5,184 Fl oridd Net income Add Back Credit Exemption Taxable Income 5.5% Tax Credit Florida Taxes Due Federal Net Income Florida Taxes Taxable Income Federal Tax: 1st $25000 x 17% 2nd $25:000 x 20% 3 rd S259000 x 30% 4th $25,000•x 40% Remainder at 46% Federal Taxes Due Total Taxes Payable Total Tax Advantage Cash Value of Credit Received for 10 Years' Firm without Firm with Credit Credit $220,000 S220,000 (5,000) (5,000) 215,000 2200184 119825 121100 (68184) 119825 69916 $2200000 $2209000 (119825) ' 2089175 .> 2130) 084 :+ 49250 40250 S9000 58000 79500 78500 109000 10,000 49,761 S2,019 $769SIl $78,769 $889336 $85,685 $2,651 $269510 Appendix D Pending Federal Tax Legislation Concerning Tax Exempt Revenue Bonds Source: Greenberg, Traurig, Askew, Hoffian, Lipoff, Rosen and Quentel, P.A. MEMORANDUM August 1, 1986 Res Omni Venetia Taxing District The City of Miami proposes to create the Omni Venetia Taxing District in order to redevelop an area of the City near the Omni. The District would finance the redevelopment costs by issuing tax exempt revenue bonds to be secured and paid by real property taxes on the increase in value of the real property located within the District. The question has arisen as to the treatment of the District's bonds under the Federal tax law. Present Law The Internal Revenue Service's only pronouncement on the treatment of tax increment financing under current Federal tax law is Revenue Ruling 73-481 published in 1973. The im- Plicit holding in the ruling is that tax increment bonds are not industrial development bonds and therefore are not subject to the restrictions on the use of proceeds of industrial development bonds imposed by the Internal Revenue Code. The ruling described the financing as' follows* Under a redevelopment s • s D-1 5v't a NNNrtw i � u Pending Federal Tax Legislation Concerning Tax Exempt Revenue Bonds Source: Greenberg, Traurig, askew, Hoffman Lipoff, Rosen and Quentel, P.A. -2- plan, bond proceeds are used to acquire property in the blighted area and to improve streets and other public facilities. Buildings on the acquired property are razed and land prepared for sale or lease to private developers. Sale or lease proceeds are used to acquire additional property. Because the sale price to private --developers is less than the cost of acquiring and preparing the land for sale, eventually all of the bond proceeds are spent in carrying out the plan. The principal and interest on the bonds are paid by property taxes levied and collected each year on the increase in the assessed value of the property in the redevelopment area. Proposed Legislation Both the House and the Senate tax bills would treat tax increment bonds as industrial development bonds (or "nonessen- tial function bonds" in the case of the House bill). The requirements of the two bills in order for interest on the bonds to be exempt are generally similar with the differences noted below. Tax increment bonds meeting the requirements listed below are "qualified redevelopment bonds". 1. Both bills require the proceeds of the bonds to be used for redevelopment purposes in a locally designated blighted area. The douse bill requires .that 100% of the proceeds, and the Senate bill requires that 95% of the proceeds, be so used. Q-Z Q Pending Federal Tax Legislation Concerning Tax Exempt Revenue Bonds -3� Source: Greenberg. Traurig, Askew, HoffmaTr Lipoff, Rosen and Quehtel, P.A. 2. Property tax revenues attributable to -any increase in real property values by reason of the bond -financed redevelopment must be reserved exclusively for debt service on the issue "to the extent necessary - cover such debt service'". The Senate bill permits the tax increment revenues to be used to pay other tax increment bonds as well. Under both bills, other revenues or the full faith and credit of the issuer may be pledged as well. 3. Real property taxes imposed in the blighted area must be imposed at the same rate and in the same manner as other real property taxes in the same jurisdiction. No owners or users of property in:the blighted area may be subject to charges and fees not imposed on similarly situated owners or users elsewhere in the jurisdiction. 4. Qualified redevelopment bonds may be issued only under a State law which authorizes the issuance of the bonds for use in blighted areas. in addition, the city or the other government unit having jurisdiction over the blighted area must adopt a redevelopment plan before the issuance of the bonds. Both bills go on to define qualifed redevelopment activities and to describe how blighted areas may be designated. Qualified redevelopment activities, for which the bond proceeds must be used,include the acquisition of property in the blighted area by the exercise of the power of eminent domain or its threat and the subsequent transfer of the property to nongovernmental persons. MYJJe11u1%1' V' Pending FederAl Tax Legislation Conctbrning Tax Exempt Revenue Bonds Source: Greenberg, Traurig, Askew, Hoffman, Lipoff, Rosen and Quentel, P.A. The Senate bill requires that the subsequent transfer be for fair market value. Other qualified redevelopment activities are the clearing and preparation of land in the blighted area for redevelopment and transfer to private persons, the rehabilitation of real property and the ,relocation of occupants of buildings in the blighted area. The Senate bill does not permit the use of bond proceeds to construct new buildings'or structures. Both bills require the Mate to pass legislation adopting criteria under which cities and other local governmental units would designate blighted areas. The House bill permits up to 10* of the total assessed value of all real property within the jurisdiction of the city to be designated as a blighted area, with no blighted area smaller than one -quarter of one square mile. The Senate bill permits 25% of the assessed value to be included in a blighted area, with no.blighted area less than 10 contiguous acres. Under both bills, qualified redevelopment bonds are subject to the volume cap limitation. In Florida, this would mean applying to the Division of Bond Finance for an allocation of the state volume cap prior to issuing the bonds. In the case of states which issued at least $25 million in tax increment finan- cing during the period beginning July'181 1984 and ending December 31, 1985, the Mouse bill reserves volume cap for tax increment bonds in the amount of $6 per capita. Any state may allocate more of its $150 per person state volume cap to tax increment financing, if it so wishes. Nppenoix u Pending Federal Tax Legislation Concerning Tax Exempt Revenue Bonds Source: Greenberg, Traurig, Askew, Hoffman, Lipoff, Rosen and Quentel, P.A. Finally, the douse bi11 provides that, if single or multi— family housing is rehabilitated with., or located on land i acquired by, bond proceeds, then the housing must satisfy certain of the rules that would apply to the housing if it were itself financed with tax-exempt bonds. Both bills prohibit the use of bond proceeds for certain facilities which industrial development bonds generally may not finance. Appendix D _ • Pending Federal Tax Legislation ConcerningTTax xempt Revenue Bonds Sodree: Greenberg, Traurig, Askew, Hoffm Lipoff, Rosen -and Quentel, P.A. The House and the Senate concurred on treating tax increment bonds as private activit or industrial development bonds. y p Tax � increment bonds meeting the following statutory requirements are ti "qualified redevelopment bonds" the interest on which is exempt from federal income tax. 1. The Conference bill requires that 95 percent of the bond proceeds be used for redevelopment purposes in a locally designated blighted area. No more than 2 percer`• of bond pro- ceeds may be used to pay costs of issuance. If costs of issuance ' exceed 2 percent, the excess may be paid from revenues or other non -bond proceeds. ' 2. Both the House and Senate bills required that property j tax revenues attributable to any increase in real property values by reason of the bond -financed redevelopment must be reserved exclusively for debt service on the issue. According to the Summary, the Conference bill permits "qualified redevelopment bonds to be secured by pledges of generally applicable taxes'ff the taxes are the principal security for the bonds." .3. The House and Senate apparently agreed that real property taxes imposed in the blighted area must be imposed at the same rate and in the same manner as other real property taxes in the same jurisdiction. 4. The house and Senate also apparently agreed that qual- ified redevelopment bonds may be issued only under a state law which authorizes the issuance of the bonds for use in blighted pis=asp 3"s Appendix D • Pending Federal Tax Legislation Concerninq"4a 'E7tempt Revenue Bonds . W * Source: Greenberg, Traurig, Askew, Hoffman Lipoff, Rosen and Quentel, P.A. , areas and that the city or the other governmental unit having jurisdiction over the blighted area must adopt a redevelopment plan before the issuance of the bonds. The douse and Senate generally agreed on the definition of qualified redevelopment activities and the designation of blighted areas. Qualified redevelopment activities include the acquisition of property in the b7'.ghted area by the exercise of the power of eminent domain or its threat and the subsequent transfer of the property to nongovernmental persons. The Confer- ence bill adopted the Senate bill requirement that the subsequent h transfer be for fair market value "determined including covenants and restrictions relating to the use of the real property". it also adopted the Senate bill position that the actual threat of eminent domain is not required if the acquiring entity has the power of eminent domain and the acquisition of property is one with respect to which that power may be exercised. The other qualified redevelopment activities are unchanged: the clearing ' and preparation of land in the blighted area for redevelopment and transfer of private persons, the rehabilitation of real property and the relocation of occupants of buildings in the blighted area. it is unclear from the Summary whether the Con - Terence bill permits the use of bond proceeds to construct new buildings or structures. The House and the Senate apparently concurred on requiring state legislation adopting criteria under which local govern - ME= Appendix D Pending Federal -Tax Legislation Concerni;91 xempt Revenue Bonds Source: Greenberg, Traurig, Askew, Hoffman Lipoff, Rosen and Quentel, P.A. mental units would designate blighted areas. The Conference bill limits the designation of blighted areas within a city or other general purpose governmental unit to 20 percent the total assessed value of all real property within the jurisdiction of ` the unit. Subject to certain restrictions, districts designated before January 1, 1986 will not count against the 20 percent limit if redevelopment was in - p progress on that date. The Con- ference bill requires that a blighted area include at least 100 contiguous acres with the exception that a blighted area may be i smaller if " M the area is at least 10 contiguous acres and (ii) no more than 25 % of bond -financed land in the area is provided to one person (or group of related persons) determined pursuant to a preapproved plan (as opposed to on an issue -by -issue basis).* Under the Conference bill, qualified redevelopment bonds are subject toa unified volume cap limitation of $75 per resident of the state until the end of 1987, after which the volume cap drops to $50 per resident. The Conference bill does not reserve volume cap for tax increment bonds. The Conference bill apparently drops the Souse bill restric- tions on the construction of single or multi -family housing on bond financed land. It adopts the Senate bill provisions permit- ting up to 25 percent of bond proceeds to be used for certain facilities as to which industrial development bond financing is L restricted, or for land on which those facilities will be 86�868 ,Appendix 0 _ • 4 Pending Federal Tax Legislation Concerning' Tax xempt Revenue Bonds Source: Greenberg, Traurig, Askew, Hoffman, Lipoff, Rosen and Quentel, P.A. located. However, the Conference b� prohibits bond proceeds to be used for: (i) private or commercial golf courses; country clubs; massage parlors, hot tub facilities or sun tan facilities; (iv) race tracks or other gambling facilities; and (v) facilities for the sale of alcoholic beverages for consumption on premises. The Conference bill provisions governing tax increment financing are effective for bonds issued after August 15, 1986. We would caution that the Summary is not an official legis— lative document and may in certain instances prove to be inaccur- ate. The Conference bill and Conference Committee report are expected to be released shortly at which time we. will prepare a further supplemental memorandum analyzing the actual statutory language. to $6-868 Jll�