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HomeMy WebLinkAboutR-82-0805A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF MIAMI AUTHORIZING THE BOARD OF COUNTY COMMISSIONERS OF DADE COUNTY, FLORIDA, TO ES- TABLIS11 A FIFTEEN (15) YEAR NON -AD VALOREM SPECIAL ASSESSMENT PROJECT AREA FOR THE DOWN- TOWN COMPONENT OF METRORAIL (DCM); STIPULATING ' RATES AND NET PROCEEDS; AND PRESCRIBING PRO- JECT AREA BOUNDARIES. WHEREAS, the Charter of Metropolitan Dade County, Florida, has empowered the Board of County Commissioners of Dade County, Florida, with the exclusive authority to create and establish taxing and assessment districts and projects within Metropolitan Dade County; and WHEREAS, the Laws of Florida and the Code of Metropoli- tan Dade County, Florida, require the governing body of a municipality to approve the creation of a special taxing dis- trict or project if said district or project lies within the geographical or territorial limits of the municipality; and WHEREAS, Dade County has a duty to provide for the health, safety, welfare and general comfort of its citizens; and WHEREAS, the downtown area of the City of Miami is a center for commerce, trade and tourism; and WHEREAS, certain merchants and business persons have also expressed a need and desire to facilitate the orderly movement of people and traffic along the City's streets and ways by the establishment of a modern transportation system; and WHEREAS, the City finds and determines a need for rendering financial assistance to the development of a modern transportation system to provide the orderly movement of pedestrian and vehicular traffic upon its streets and ways; CITY COMMISSION f ME -TiNG OF ( S L. P 9 1982 82 b 5 itEN< u=N Na......-.......�::n. NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. That with regard to approving creation of a Special Assessment Project Area (Project Area) for the Downtown Component of METRORAIL entirely within the City of Miami, the City Commission hereby approves the creation of said Project Area pursuant to Section 18-2 of the Dade County Code, with such ap- proval to become effective only upon the County Commission's amending the Ordinance creating the Special Assessment Project Area to provide that houses of worship, including their ancillary uses of a noncommercial nature within the Project Area, be exempt from the levy of Special Assessments imposed by the said Ordinance. Section 2. The Board of County Commissioners of Dade County, Florida, is hereby authorized and urged to levy said fifteen (15) year non -ad valorem based assessment at the rate of 29 cents per square foot of net leasable square feet located in the Project Area to support and carry an issue of revenue bonds sufficient to net $20,000,000 to be used for the development of the Downtown Component of METRORAIL, as the County Commission may determine. Section 3. The boundaries of the said Special Assessment Project Area shall be described generally as set forth in the schedule attached hereto, designated Exhibit "A" and made a part hereof. PASSED AND ADOPTED this 9 day of SEPTEMBER , 1982. MAURICE A. FERRE M A Y O R TEST: RAIK G. ONGIE, CITY CLERK PREP D AND APPROVED BY: 7'' �. JOEL E. MAXWELL ASSISTANT CITY ATTORNEY APPROVED AS TO FORM AND CORRECTNESS: I E R. GARCIA-PEDROSA TY ATTORNEY -2- 82-805 141111II aq Ef H H X W Special Assessment Project A1rea for Downtown Component of METRORAIL J. J � ...raw .. L-1 T)44 N a I u r c � 1 i 11 \ WEST ,V\ NO., rAV� co �• DENOTES SOUNOARY 0/ THIS PROJECT PROP03E0 STATION PROPOSED ROUTE OR ALIGNMENT Howard V. Gary City Manager Jim Reid Assistant City Manager r1j"00e Background September 1, 1982 - Resolution Approving Creation of a Downtown Component of Metrorail Special Assessment e Project Area (City Commission Meeting of September 9, 1982) It is recommended that the Citv Commission adopt a resolution authorizing the creation of a special assessment project area for the Downtown Component of Metrorail to permit timely con- struction of the Downtown Component of Metrorail 1.9 mile loop. In September, 1979 the Miami City Commission agreed to provide up to $9.9 million for the construction of the Downtown Component of Metrorail (DCM) as part of a total project cost estimated at $178 million for the 1.9 mile Downtown loop and legs to the Brickell and Omni areas (the latest cost estimates place the cost of the loop alone at $116 million). In April, 1981-Urban Mass Transit Administration Administrator, Arthur Teele, indicated that only $19 million would be available for the loop and not the $64 million anticipated. lie suggested that the private sector should io more to support construction of the DCM. In May, 1981 a privat sector financing task force, chaired by Alexander McWhorter Wolfe of the Southeast First National Bank of Miami and including the Mayor and City Manager, was formed to look into mechanisms for private sector investment. In September, 1981 this task force supported the creation of a special assessment dis- trict to fund the DCTI. Subsea_uently, in October, 1981, primarily because of the private sector commitment, the Urban Mass Transit Administration reversed its position and authorized $64 million in funding for the construction of the Downtown loop. Analysis On July 23, 1982 the Dade County Commission, in accordance with Article I, Chapter 18 of the Dade County Code, authorized the establishment of a "special assessment project area for the Down- 82-805 AM f Air. Howard V. Gary -2- September 1, 1982 town Component of Metrorail". Based on a project budget of $86,066,927, it is anticipated that $20 million in proceeds from special assessment project area revenue bonds will be required to carry out the project. The assessment would be made on the basis of net leasable square footage. All properties within the project area, including Dade County, the City of Miami and all institutional properties that carry a tax exempt status would pay an annual assessment over the 15 year life of the revenue bonds. It is estimated that the average assessment will be 15fi per sq. ft. over the 15 year period with the actual assessment per year to be determined after the sale of bonds and the actual amount of net leasable square footage is estimated. It is anticipated that the assessment will be levied in the 1983 fiscal year and the bond sale will occur in the Spring or Fall of 1983. The proposed bond issue will only be used to pay for the construction related cost of the project. The following information is attached for your review: - Exhibit A (Map of special assessment project area for the Downtown Component of Metrorail) - Exhibit B (County Manager's memo to the County Mayor and Dade County Board of Commissioners) Exhibit C (Report prepared by Dade County Transportation Coordinator Warren Higgins recommending establishment of the special assessment project) - - Exhibit D (Copy of the ordinance as enacted by Dade County) - Exhibit E (Copy of the transmittal memo and resolution recommended for approval by the City Commission) Under the County Code, the text of the ordinance is approved by the Board of County Commissioners and the affected municipality must approve the application of the ordinance within its boundaries. Essentially, the City Commission will be voting on the application of the ordinance rather than the text of the ordinance itself. The special assessment project as proposed represents a viable, equitable and consistent methodology for providing, private sector funding for the Downtown Component of Metrorail. It is recommended, therefore, that the City Commission enact a resolution permitting the application of the ordinance within the special assessment project area for the Downtown Ccmponent of Metrorail. M 82-805 mr ! Or Iff r' M E M O R A N D U M TO: THE BOARD OF COUNTY COMMISSIONERS FROM: ROBERT N. SECHEN, ATTORNEY FOR: The Republic National Bank Building The First National Bank Building The Downtown Center DATE: July 23, 1982 _ RE: Special Assessment Project for the Downtown Component of Metrorail There is a responsibility to build a public transporta- tion system that is based upon a legitimate public need and necessity. The public and the community which it serves, should pay for it. The Board of County Commissioners is empowered with the authority necessary to accomplish this awsome task of allocating those costs of necessary improvements to the community and public. There is no more delicate or responsible duty imposed upon the Board than that of appraising benefits and laying assessments for public improvements. Many elements enter into the question of,determining and prorating benefits in the case of the Downtown Component of Metrorail. They are physical conditions, age, nearness to or remoteness from the business districts, proximity to Metro Rail Stations, desirable and undesirable commercial locations and many other conditions particular to the locality benefitted. No system of appraising benefits or assessing costs has yet been devised that is not open to some criticism. None has obtained the ideal position of exact equality. But if the Board would bear in mind that benefits actually accruing to the property improved, in addition to those received by the community at large, must control both benefits prorated and the limit of assessments for cost improvements, the system employed would be as near the ideal as it is humanly possible to make it. The Board of County Commissioners must assure that it does not force expensive improvements upon a few property owners, against their consent, and impel them to pay the entire expense, under the delusive pretense of a corresponding specific benefit conferred upon their property. This is a species of despotism that ought not to be perpetuated under a government which claims SMITH A MANDLER. P. A., ATTORNEYS AT LAW. 1111 LINCOLN ROAD MALL. MIAMI BEACH. FLORIDA 33139 8 2j - 8 0 rJ I I to protect property equally with life and liberty. Besides its manifest injustice, it would deprive the Dade County taxpaying property owner practically all of the principal protections against unjust taxation. Where property is specifically benefitted, the Board is empowered to impose the entire reasonable and proper cost of the improvement upon such property even though a secondary or incidental benefit may result to the public or others. If, however, the situation is reversed, and the incidental benefit results to the property improved and the primary benefit to the public, to require the property to bear the entire expense would amount to an arbitrary and unwarranted servitude which should not and cannot be imposed. The Board of County Commissioners of Dade County has before it an issue in which it will be forced to decide, based solely on the Board's concept of equity and the evidence before it, who will ultimately bear the burden of the "PEOPLE MOVER". Already invested in the project are millions of federal, state and local dollars. A further commitment has already been made by the business community as represented by the Private Sector Task Force on the Downtown Component of Metrorail. The question before the Board of County Commissioners now is how this commitment by the public sector to commit funds to the project will be allocated amongst those who would be most bene- fitted by the People Mover. The original recommendation of the Downtown Component of Metrorail Private Sector Task Force which was given to the Board for consideration in passing Resolution No. R-1482-81 on October 6, 1981, endorsing the concept of estab- lishing a special assessment district in Downtown Miami in support of the Downtown component of the Metrorail project, specifically required that special assessments be levied on a non ad valorem basis. At the time the resolution did not contain a recommen- dation that the county employ net leaseable square feet as the primary basis for allocation of the bond repayment costs. It must also be noted that the draft resolution before the Miami Chamber of Commerce that was discussed at the New World Center Action Committee of the Greater Miami Chamber of Commerce did not, in any form, endorse the idea of allocation of the special assessment on a net leaseable square foot basis. The first resolution passed remains entirely mute on the subject and the second resolution merely states that a maximum amount per net leaseable square foot should not be exceeded. Thus, the Board does not have before it any consensus recommendation of the public sector endorsing the employment of net leaseable square feet as the primary basis for allocation of the bond repayment costs. Specifically, the recommendation comes from Warren J. Higgins, Transportation Coordinator in his memorandum to County Manager, M. R. Stierheim on Page #5 where he suggests that the - 2- 82-805 SMITH a MANDLER. P. A.. ATTORNEYS AT LAW. II11 LINCOLN ROAD MALL. MIAMI BEACH, FLORIDA 33139 p 1 T employment of net leaseable square feet meets the criteria of the task force. That is, it is a special assessment on a non ad valorem basis. Despite the fact that.there is no consensus on record from the public sector supporting the use of net leaseable square feet as the primary basis of the bond repayment costs, of importance to the Board is whether the assessment utilized will assess properties specifically benefitted by the improvement in proportion to the benefits to be derived. The formula employing net leasable square feet as the primary basis for allocation does not stand up to this criteria. The Downtown Development Authority estimates by the year 2000 the supply of commercial space within the People Mover service area will double. But in the report prepared for the Miami Downtown Development Authority by Robert J. Harmon and Associates, Inc., a finding was made that "commercial building owners will realize at least five million in annual premium office and retail lease revenues by the year 1990." (II.5). There is nothing in the record before this Board that asserts that the premium in the benefit will accrue to the older building owners rather than to those properties which are currently in development. The Board must find, to withstand legal challenges, that the property owners who will be paying the assessments would be the ones that would be benefitted by the project in excess of the cost to them. In fact, in one of the Harmon reports he states, "an economic case can be made for distinquishing between new development and existing commercial buildings." (Funding Instrument Profile (3)). In the report of the County Manager to this Board, he cites from the report of Mr. Higgins that claims "monetary gains from the DCM System's operation in the form of premium rents, higher occupancy rates, ...". Even the Harmon report, in its thorough analysis of this issue never came to the conclusion that higher occupancy rates than are now in existence would be a result of the DCM System's operation. This is especially true in light of the development which is taking place in the Downtown area in and around the People Mover Stations. This development with the natural effect of dumping large quantities of office space on the Downtown Miami market will, of course, have a tremendously detri- mental affect upon those properties already in existence; and it is in fact, those properties which would be subject to the special assessment. It is always the concern of the Board to have any assess- ment or tax not be unduly burdensome to any party or group. The employment of net leaseable square feet as the primary basis for allocation of the bond repayment costs will, in fact, put a sub- -3- SMITH & MANDLER. P. A.. ATTORNEYS AT LAW. till LINCOLN ROAD MALL. MIAMI BEACH, FLORIDA 33139 8 2 • 8 0 5 7 t stantial and undue burden upon the owners of older buildings in Downtown Miami. This burden is comprised of the following factors: A. Older buildings, with their older rent rolls and lower income per..square foot may end up paying out all potentipl profits from the ownership of the property into the special assessment. B. Those older buildings, many with long-term leases, may not have a method of passing through the assessment to tenants and would be required to shoulder the burden of this assessment themselves. C. Mohey that could be utilized in the revitalization of a property would become committed to pay the assessment. D. The year -by -year reduction of the special assessment is gross unfair to those buildings which are currently in operation since the benefit of the People Mover will accrue to all buildings in operation when the People Mover starts rolling. E. The timing of the required payment will come at a time when vacancy rates are soaring in the older buidings as tenants move to the newer structures. F. The percentage of the assessment is a significant part of the income per square foot.. Meanwhile, the newer structures will benefit in the following ways: A. Parking requirements have been reduced. B. Since the assessment will be on a declining basis, a number of new developments will miss the substantial impact of the assessment in the earlier years. C. The tenants of the new structure will, due to lease terms currently offered, be the ultimate payers of the assessment. D. The cost of the assessment as a percentage of the per square foot rate for the property is a minor amount for the new properties which are charging for premium space. E. "Unleased space" in a new development could be munipulated to become "unfinished" space and thus -4- SMITH Q MANDLER. P. A.. ATTORNEYS AT LAW. 1111 LINCOLN ROAD MALL. MIAMI BEACH, FLORIDA 33139 8 2 - 'l �� t not computed in the determination of net rentable square feet. It is quite clear that all properties within the assess- ment district will not benefit uniformly and that the older properties will receive incidental benefits less than the cost of the assessment to them. This Board must not and should not allow this situation to develop from both an equitable point of view and a legal point of view. But are there alternatives? Robert J. Harmon and Associates, Inc. believe that there are. Harmon suggests (Funding Instrument Profile No. 3) in the report to the Downtown Development Authority dated August 26, 1981, that a New Development Fee be assessed on a per square foot basis on new commercial development. He proposed, as just one of the alternatives to the Downtown Development Authority, that this new development be imposed along with a continuing one for existing commercial buildings. He cited as advantages of this system the recognition of the of the costs of existing commercial building owners, a guaranteed source of capital funding and the shifting of a major portion of the capital cost burden away from the existing building owners. He also felt that, "an economic case can be made for distinquishing between new development and existing commercial buildings," as cited before in this report. At just a dollar per square foot, Harmon estimates this one time charge would generate 5.5 million dollars in each of the years 1985 thru 1990. This funding instrument is currently in use by the City of San Francisco where it was jointly approved by the Public Utilities Commission, the Chamber of Commerce and the City. This method, when combined with an assessment on existing structures, would more fairly and appropriately allocate those costs among the property owners based upon the benefits received. Another method which would allocate the costs of the project being assessed to the benefits actually accruing to the property improved would be a formula which based the assessment on a percentage of the rental rate being charged for the property. Thus, those properties which would receive the greatest benefit in terms of increased rent and occupancy would then pay the greater share of the assessment. This recommendation could insure the highest level of equity. While it is true that greater equity requires greater cost, the Board must always look at incremental costs in pursuit of equity as a desirable feature where the public is concerned. This method would incur no cost to building owners whose space was unable to be rented since the owner would be receiveing zero dollars per square foot. It would also be very easy to administer by requiring owners of the properties to provide to the County Assessor's Office a tax roll which could be -5- 82-805 SMITH 6 MANDLER, P. A., ATTORNEYS AT LAW. 1111 LINCOLN ROAD MALL. MIAMI BEACH. FLORIDA 33139 t t audited on an annual basis. The burden to the property owners would be minimal since all keep rent rolls in the operation of their buildings. Verification would be simple for the Tax Assessor's Office since lease documents contain occupancy dates that could be readily examined. An argument can 'readily be made both equitably and legally that the benefits accruing to the older buildings in the Downtown area are only incidental to the benefits which are being received by the population at large in the development of the Downtown component of Metrorail. This argument, if asserted to its full legal force and effect, could hamper the project. The commitment made by the Downtown Component of Metrorail Private Sector Task Force of the Greater Miami Chamber of Commerce should be, and in fact, will be fulfilled so long as the Board determines a funding mechanism for repayment of bonds on an equitable basis, based upon the facts presented the Board. Due to the problems of inequality of the benefits received as compared to the costs assessed, this Board should also review carefully the recommendations made by the County Manager and the Dade County Metrorail Private Sector Task Force which suggests a special assessment on a non ad valorem basis. It may —° be, despite the problems inherent in holding a special election on an ad valorem tax, the most equitable. It is not the legal right of the Board to create a special assessment district for the levying of assessments on a arbitrary non ad valorem basis when the evidence before the Board clearly demonstrates to a reasonable observer that the more appropriate recognition of benefit is based upon the value of the properties rather than any -other factor. Should this be the case, the Board must establish an ad valorem tax. In the event the Board chooses not to modify the recom- medation of the County Manager which provides for the levying of special assessments on a non ad valorem basis employing net leaseable square feet as the primary basis for allocation of the bond repayment costs, then the Board would be in the position of imposing a substantially unjust tax in excess of the benefits received by a substantial group of property owners within the special assessment district. It would then be for the courts to determine reasonableness of the Board's actions. The recommendations made herein are not in any way to be construed as a complete or comprehensive list of the alternatives that the Board can utilize in modifying the proposed special assessment. It is meant only to start an avenue of discussion in regard to modifying the proposal as it now stands before the Board. 6829d -6- 82-805 SMITH & MANDLER, P. A.. ATTORNEYS AT LAW, till LINCOLN ROAD MALL, MIAMI BEACH, FLORIDA 33139 < I w *M. Special Assessment Project Area for Downtown Component of METRORAIL ........ 14j v// .m DENOTES DOUNDARY CI THIS F-10JEC" rfioposEo STATI" PflOP03L0 ROUTE 011 ALIQUIdENT c A Special Assess:;ent Project Area for the DC',.*, is bean, propcced, and the properties embr-ncef by its boun'�srie-, are set fort" as foll c::s : That, porticn of the City of I,Iiami , Dad - Cc':.-t, ', Flo_,yda, more part icularly describ--d as Ecun.._d on the Bast t'. Biscayne E-y bet,.:eer1 Pcrt Boulevard and the ;,'.ia^i :, ver. Bcunded on the South by t: p Mianl' River bet-,.e-en T II1 E_scaJrle B�.:J and 1rtrr �J .it�.rN i C�I. e jam• }BP3u .ied on the 1,1est b;[[ :. Inersc:�:�:e vaLe 7 be�,een Bcun,ec on the Ncr th by: y� y^ .'.;. 6�:: Street bE'�'�':e:::: Tn`..�=''c. .`, `c ,,i a::: N.W. 1st Avenue; A11* T::c south ri7ht-cf , line of the Flcrida East Ccas t bet•,:een Id. Is - Avenue a:.0 U.S. I'*LEh,i:ay 11"o. 1(Eisc.-a ne Bou,"Leva"n..) A IND Port Boulevard bet:.:een U.S. FiChway No. 1 (Biscayne Boulevard) and Biscayne Bay. 10 82 _805 •. •- . l%C11T B rtz rn a to .� MEMORANDUM tu7.07_17A To Honorable Mayor and ,Iembers Board of County Commissioners FROM T . - 't rtim o 'A . REC0;1r,F11DA=*14 DATE Ju!y 2#, 1932 SUBJECT Special Assessment Project for the Downtown Component of M ETRORAIL (I)Cm) It o is recommended that the Board authorize the establishment of a "Special Assessment Project Area for the Downtown Component cf METRORAIL (DCG1)11 in accordance with Article I, Chapter 18, of the Dade County Code. BACKGROUND In 1981, the Board authorized the County ,1ana_.er to work with the downtown business interests for the purpose of developin- a funding mechanism whereby the private sector would contribute to the construction costs of the D0I-1. The County Manarer subsequenti forned a D01.1 Private Sector Task Force chaired by Mr. Alexander Mc'a. Wolfe, Jr., President of Southeast Bank. The Task Force considered the funding alternatives for DC; relative to the following: 1. Capital and operating construction cost estimates of the system; 2. Annual cash flow funding needs of the entire construction schedule; 3. Existing capital funding commitments; 4. Alternative funding sources; 5. Relationship of funding option to economic benefits to be derived by the downtown business sector from the DC14; and 6. The need for formulating a complete funding package. In September 1981, the Task Force adopted a consensus resolution recommending that the Board create a special assessment district in the Downtown Core Area to be served by the DC,4 system, conditional upon that the special assessments be levied on a non -ad valorem basis; e.g., net leasable square feet, and that the amount of the special assessments be modified each year so that new ,improvements would be utilized to reduce assessments in subsequent years. After a review of the Task Force recommendation, the Board adopted Resolution No. R-1482-81 on October 6, 1981 endorsing -in principal the concept of a special assessment district in Downtown Miami for the purpose of supporting the DC14 project. Based upon the projected project cost, it is anticipated that $20 million is needed to be raised through the issuance of revenue bonds from the project area. 'It is proposed that all properties within the project area, including Dade County (1,030,000 square feet), the City of 111ami (838,000 square feet), and all institutional properties that carry an exempt tax status pay an annual assessment over the 15 year life of the revenue bonds. t4etro-Dade, any school district, municipality, or other political subdivision are subject to assessments pursuant to Section 18-14 of the Dade County Code. In accordance with the Code, both Federally -owned and State-owned 82 -8 05 I f properties are to re;iain exempt from this assessment. 'r{o������pr, the Board does have the discretion to provir3e additional categories of exemption from the special assessment to inclule other tra.litlonally tax-exempt institutions. It is anticipated that new construction and/or buildin;; expansion within the project area will allow annual reductions in the actual amount of assessments levied. A projected schedule of assessments over the first 5 years of the 15 year bor;3 repayment period is as follows: A..iJ,i1 OF ESTI'll t,TED SP i:CI AL C 0 S T N0. OF A' OU 1T 0 ASJ-ES3:1E,N'. COS': TO SIFT LEASABLE SPECIAL IF CITYiC0UN' Y TO CITY SQ. FT. A-0SESOr !IAEi1r2 IS E.`;E-'iPT DADS: OF YEAR (1,000,000-s) (CEiITOr' (C�'i�Sl CO. 1983/84 16.78 27.1 30.9 $279,130227,098 1984/85 10.45 20.1 25.8 357,780 201,000 1985/86 23.91 17.2 22.0 522,880 172,000 1986/87 24.51 16.7 22.3 677,920 167,000 1987/88 25.50 16.1 21.2 644,480 161,000 The actual assessment rate will be dete—L .Ined after the sale of the bonds and the actual amount of leasable square footage is calculated. The above annual assessments could be reduced by additional amounts due to (1) the investment earnings on the debt service reserve fun-1 which must be established when the bonds are sold, and (2) greater than anticipated new construction and building expansion/renovation occurring, within the project area. In order to provide a net a20 million from the project area for the DOM, it is projected that a bond issue not to exceed $27 million is necessary. This amount differs from the first report given to the Board on July 6 due to a recalculation of capitalized interest needed during the construction period and a restructuring of the timing o:' the sale of the bonds and the requirement of funds. It is anticipated that the assessments will not be levied until the 1983-84 fiscal year and that the bend sale will not occur until spring or summer of 1983. Therefore, the bond financin;; vehicle is not being - presented to the Board at this time. The appropriate bond ordinances will be submitted to the Board at a later date. The proposed bond issue will only be used to pay for construction - related costs'of the project. ;The debt will be serviced by the assessment levied each year throughout the project area. The bond issue does not provide for the full fain: and credit backing of Dade County. It is anticipated that the project area, as defined in the attached supporting material, will only be constituted for a period of 15 years so as to coincide with the scheduled repayment of the bonds. As required by the provisions of Section 18-3 of the Code, I have received the facts investigated by the Transportation Coordinator and submitted by him, and I concur with his recommendation that this. project be created. Under Section 18-21, the Board can authorize by resolution the construction of this public transportation improvement without the necessity of creating and establishing a special taxing district embracing the territory specially benefitted by such improvement. Therefore, no referendum is necessary. ►82-8ua •� EXHIBIT C AN DU 41 10 County tlanager FROM Warren J. Higgins Transportation Coordinator OAT E SUBJECT Special Assessment Project Area fo: the Do,,:ntown Co;npcnent of METn::RAIL DC:'I ) Under Section 18-2.1 of the Code of hietropolitan Dade Ccur.ty, the Board of County Commissioners can authorise the ccnstructicr. of a publ'_c tr ansportatiOn i,.,YrGVe lent SUCK as t he DC�;ntC'r;.. Co.;,- pone nt of 1%etrerail (DCM). The County Manager is required to submit a report and reco:rmendaticn for the creation and esta::lish- merit of special assessment districts and projects. Under Section 18-3 of t:,e Code the Xanaoer is req 'µ; »e" to cause to be r. ar:e under 1 u his supervision and direction such investigations, surveys, planz and specifications as may be necessary to enable him to cc,,;pile and file Ni:.. the Ec-ard a written report concerning ���c7 distr �c or projects. As Transportation Coordinator, I am responsible for the detailed investigation of the "Special Assessment Project Area of the DC:!.." The following facts are herety submitted concerning the creation of the "Special Assessment Project Area for the ,Downtown Component, of Metrorail." 1. BOUNDARIES OF THIS PP,CJECT The proposed Project is located entirely within the City of Miami, and boundaries of the propo-sed project area are that portion of the City of Miami, Dade County, Florida, more particularly de- scribed as follows: Bounded on the East by Biscayne Bay between Port Boulevard and the Miami River. Bounded on the South by the Miami River between Biscayne Bay and Interstate 95. Bounded on the West by Interstate 95 between the Miami River and N.W. 6th Street. Bounded on the North by: N.W. 6th Street between Interstate 95 and N.W. 1st Avenue, and the south right-of-way line of the Florida East Coast Railroad be- tween N.W. 1st Avenue and U.S. Highway No. 1 (Biscayne Boulevard); and Port Boulevard be- tween U.S. Highway No. 1 (Biscayne Boulevard) and Biscayne Bay. 82-805 I U Upon review by the Dade Ccunty Trans; or tatil cn A­,iniztr ation, the territcry specially benefited by this local transpertaticn impr ,: e ens i P v e o :-, tted �' ` s` e of C t, J_:, th Ser.iCe area Of tt'i CG;:.,..�� t. air, JV �a,�_ the DC'..',. Th= ou_h the syste:;'s functional interration at t::e Govern- nen,, l.E'nte^ rapid trari.,_t. station, it provides CG.;,p. h..n iV circulatIcn and diZztrib•::ticn ser:ice f c r the ;•,E_::C=f,IL syste-,. lh e DC;', se. -vice area includes nearly 65 percent of all cc---er- dial de. _lcT-ent in Do;;,:tc';... ;':i` i . In ac::it' cn, over 75 Fcrc t of a!' d_• elcr cn-1 c., st`e� � �cN l .ned `� c-.n. _rao te- C�.�i �L V. .{.� 1i V.l:u/ pl�r to �.'e CV♦ ` � / to.een 1,:.'2 and i9;J will, occur in this perticn of busines.. district (ORED) . In total, there are curr_n iy 16,71 ,V sq•..-. e feet cf leacat_e cc.=,e dial, residential ar... pLr!:i. fac_="y srace iccatez in the D%D.. sCr:ice are-. E: tee, on a::::0:;:" cc—_ inne :t Tian , the scaiG of de'. e_c;:Ment .s.e_ ..... b; at l _ass. 5w per -lent d,.r.... J 1. :. , i•/, Fe_r al prcpertieS 1CCat a i';iti._n the bcur:Car_es of the Sp5__a_ Assessment Prclliect Area are not to be sutV ect i to the duties and liab_l_`in respect of the special assessment affecting- the=r real estate. All other pro erties lccated within the Special Assessnent Project Area, regardless of them^ County land use classification, are sub" ect to the annual assessment, consistent with Section 18-14 (16) of the Ccunty Code. The boundaries of the Project are as shown, on the attached plan entitled, "Special Assessment Project of the Do,tintci-.n Com-onent of Metrorail," prepared by the Dade County Transpertrtion Administration and hereinafter referred as Exhibit "A". 2. DDSCFIPTIO'; A1;D LOCATION OF TEE PROJECT TO BE CO' STRUCTEJ The project will consist of the construction of an autor..ated transit system that will operate on a bi-directional double guideway approximately 1.9 miles long in a fully elevated loop configuration around the Miani central business district. The DCM Project system will include ten on-line stations and the purchase of twelve vehicles. This syste^: will serve the need for a complementary co7^ uter distri- bution systei for the 20.5 mile i'ETROR:,IL rapid transit line. I The al cf tai 1. r,.il ez le„g ,..•, :,, • ., s , , as part of E::hibit "A". A written des cripticn fcllcws . Starting at the Govern. -lent Center Staticn, the DG;; al-Ign-ment will run north along the ME.ROTAI1, right -of -way to ;I.:, . 5th Street at which point it will turn eact ar_d ccntlnue as a rcute alo^; and N.E. 5th Street to a point api:rcximatel;; 1.50 feet east of N.E. 2nd Avenue. At this point the aIfEnmer.t will turn sc�:th;:ard runn-*n_ par allel to N.E. 2:4c Avenue on to be accl;re. for a ne'.: right-Of-'r:a". The rc to scut:-: to N.E. 1st Street where it Tr:i'_1 turn: east an.. fn an east;•:ard directicn to B-'sea,:ne Bcule:vard. At Bisca%ne Bcule•:ard the a1i;ram ent will turn scut: anu ccntinue alcr the 'H3 e•:ar.'s l.0 ,;r ..41. r e_ The ..I:v then turns e.. .. .. ,__'.. Gam... S,.-Get an: ~' es over the I-G' ccr.��nu exert ra=, :h�ch pr----Ze .v_,: ter ^l. Ga✓e u. 3r U �, rep an: S.`. . 2 enu-e. L v the approximate lnterzecticn of S. --- . 1st Avenue and the pro' ect_cn Of 5.... 3rc Street the al-C,nmert - ;•.h_ch to th-c point ., h c be' . y� c G cn a ❑o...h. r.e gu id e;':a j' t;:o-;•: a,, r te - se p'ar'at es• One Ui ai..ch of th- turns north on S.E. 1st Avenue to S. �. Ist Street, thence west al .. _ S .... 1st Street to the I- 5 ra:.,ps to the T:ET�,2c AID right-ef- w it ti',herG it turns north and recce nects wit:: the first branch. The alignment ccntinues as a two-way route north along the :'iET.,CEAIL riCht-of-way to the starting point - the Government Center Station. Ec t I.IO'J OF COS_' OF PRCJEC'' The DC;, project for which the Special Assessment Project Area is proposed has a budget estimate for total project costs of $66,066,927. This cost estimate is for all work to be accomplished under the County's contract with Westinghouse Electric Corporation. Westinghouse was chosen as the turnkey contractor for construction and installation of the DCIM systern after a competitive procurement proce-s. A cost estimate for the DCM system under the Westinghouse contract is attached as Schedule A. Assessmentslevied against properties within the DCM Special Assessment Project Area will support repa5rment of an issue of revenue bonds sufficient to net $20,000,000 for the pa—ent of construction 8 :� - S V 5 f �s fcr guideway and stations and purchase cos` r �"A' l' � COS�J � JNJ iC� �r. �. tLi_„ autc-:ated vehicles. In addition to estimated ce:._tructicn and ve1r1cle purchase costs must be added the ad..lir._SLratiVe costs (Trscessir..:-, collecting, mailing,, advertising etc.) as provided by Chapter 10Q of the Code. These costs will be $25,500. The cczt associated with the e ,e ^nd� which are to be re-Ia'^ %,ityin 15 years, issu�nc of the revenue b., , Nam.-� 'i1t"• include: net construction costs, debt service reserve, capitalized interest reserve, bond diSCcunt, and fin_nncin_ expenses. T eref-_re, the CCJ i's to be GScJessed ara i.J.cthe prOjcrtie_1 loC:ted wit -In ti.r bcund-nr_es of the DC;: S ecla! AcseS . ent Frc' ` AI'ea uz s" V V I� e " C� l .1 �A V I .. debt service and administrative ccstc. E _ �. _ 7r= C_ mom- r p size Of iS 1e necess-a ''., to net f cr u' 1•. 1 y r L J n :- t h �L f� - t r, r v e �` - `.. c �..�'.'. 1 ci r 1. 1• e E v .. .'1. in^„n?�....;� t, �' Et�''C;_..t.C::i C�:.;�.1. a1 iT:'.t_ O' ... CC sm t "C^ ^ (, f T^`'n n ua1 e J .. 1 .;e` ``- `.nt levy C"'� �......... .. e.�. NO be 4 J l%},,2� �. , V li l.� . 1/... ate. .. -. .S� Cam.- G:. .. .. a. � au _z t.. icn . it have tc Set at an an t s,;rf-_c e n t tc +;tee dett service for principal and interest paytack. of 92 j , 00u per yew ass..7:in- interest is car..italizeJ to pay bacr: t'ne y buil i f_:'st year interest cost . Anticipate:: ding e::par.sicrl wit.._.. the Project area boundaries will allo..: the actual amount of the special assessments to be adjusted each year so that ne.•: ir..prove- ments can be utilized to reduce assessments in subsequent years. 5. CG'..FCI:ImY TO b:r STER PLtiN 0N DALF CO'..". m i The proposed improvement conforms to and in no way conflicts with the Comprehensive Development Master Plan of Dade County. Wericrandum from Planning Department is attached.) 6. RECC':.°•? ..':DATION CONCERNII':0 THE DESIRABILITY OF THIS Ii•1 Pi; U'JEi•" "'' The proposed project is needed and desirable. The amount of adjusted square feet within the District, as taken from the Dade County Real Estate Property Cards, is 16,780,000. The 19S1 gross property valuation within the District, also taken from the Dade County Real Estate Property Cards, is $E47,327,309. With the scale of development servicd by DCM expected to increase by at least 50 percent during the 1990's there is good indication that the af- fected property is able to pay such special assessment as may be levied. Moreover, individual assessments of existing, develoj ed �82-805 I ' r ner t y 1 be dec:'=aS ;) e c;• J ea - as new d-2—i .�1is utJ 1" =d Y rE. uCe t1-.e t t ., s--,-—2 :` ~e to ca--r. the tor:d _csue. o c ., a c The eccnc e tz ccru t ri-r �- se2t�r as a '•'• .;�iC b n fi o a 1nf; O t..0 �% '� result of the ope:'a•-in,:"- of the DC,-1 are attr'_butabl- to the access- ibility- rjafns, locaticn l identity ad•:anta- s, activity center li - _, t, y it-, S ar.Q i"'':1,...'.e-1 Cri-oils: p�:.ri:;'��� i'elluia'�'�•'^'ri..•, a_ �lJrd '� b 1. ,L syzt,e .. The private sector Frcpert;; o,•;ners, retail n, :�rzhants, 1 ctel ope: a`ors and otherZ located in dc;';nto„r. Miani :rrlt::i^ t1n bcun.d r i e s of th� Src _a1 ;�s e: :.�c:at r rc ect :roe r;i" 1 : ecei re r,cn-tart' €alas frcm. the DC;i s; ctem's cpercn in the form cf Fr-2::iu;i rents, hi :.er occupancy ra.. (. z, incr. ease:.. ret ail sale and reduced emplcyer coots. In addition, the access afforded by t ip, p�recti~e develco::ent sites en.'--- nce the D�.: cticuld /crease .:u' /� t l.e 1I 1at.:.1i �.J Vl e.•i.. .+._I1:,) b;Ul r-U 1I-:_ , and pr 3%1de slir VIsC, bet;;een act -:pity ce t e r s . As a result of the for':LCing, in in �i.-- n .;t� 'C. n• ` tO } I;C'.^���=j� as es.-ed '�i111 be O • .icI;, t.'. ben benefited in excLcti of ti,c tot-1 amcunt of the special assescnent tc be lev'_ed. Attach , to this rep,c"'- is a su•-pertin; opinion drafted 1 • RC::ert Har: Cn & AsZoci.::`, e . This ccnc-ult- ,- firm is also aut.:Cr of the "Su -miry Report : Private Sector EConcmic Impact Analysts - The Miami Dc:;ntc;;n People Hover," which docuaents private sector benefits in r elation to the ecuitabi lily of the proposed DC,'i Special Assessment Project. Robert Harmon & A.-oociates was en-ayed by the Do•,rnto;In Develcp: ent Authority to provide professiona� eccnom-ic and financial consultative support in the area of estab- lishin,, a "full funding" pro, -,ram for the DCM Private Sector Task Force. The Task Force was established at the request of the County President of Southeast Bank, N.A Manager. Chaired by Alexander I e'dolfe, Jr. , /the Taslk- Force wrote a consensus resolution recommendin[; creation of a special asceccment d;.strict in the do;rntown core area with several conditions. These ccnditions have been folloiied. They include the levying of -special arse::mentc on a non -ad valorem basis, e.D., employing net leasable 5 82-805 U square feet as the primary basis for allccaticn C`_' t::n_ to^,a-. a' w^ ment costs. The timely ccnzen3us of the decicicn reachez' ty the DC„ Pr i•.ate Sector Task. Force has proven to be pivotal in securing the ;641 million in capital funding that was bein7" seuEht from the ..c=Transtion. Urban �",s Tran�pertat..cn Administr` In additicn to the $2C,000,000 derive] frc, Special AcceSzment Prc,;ect Area revenue bonds, the $86,066,927 project costs fcr the or tyrant t st,i .e-e 1 r r f r d f s- c�.,,,. ,,,, r. „h �•,e���n^h c:..:_ �,. al.;o �u.:d�.. b�� Cr a^.s ,rc:: �.:•: rc=e»_._ L'rtc:z :'ac T: �, yp „t t1 _ins„� 3 t . c: 1. o_ _cn Ad.,, ems, cn, S a ci ^r`c n rota` n rc. ' r n i f 1.1 m TI mot pCrt_C:, G_` t.. irG:.G. c._� P C�'r C:..1 C � the Clt.`Y C� 1'._G,�..i • ^e car'_tal im, ro ement cost., for E,:;.e'.:iy ant st%t_Cn csn� ruct-cn fin.. p;._ .'.:._.-_ cf vehicles uncer the itie t1n`: C:.ce cc nt_ t 'r:,:_... i tC tom' pGlu �` v."... r'. �.. ...� G�.C.'� "�; C',„.-s Cam. .�..:i�., benc—fi, ."-_.. bas:._ cn net feet for the alicc; ticn of the tong re-.:y ..enz. cc.._.cn vacant lctz �r.=? _ to t Ze_ on c+ sc::�r _ fcota�e of the lets.) Assessments i•.ill to ^a_le. to p cr � r „`- ,; o;;..er, at t::e sar%e t`:7 the Cou n`y prcp:erty tax b- 11s are r:.,aile�. T:-:e annual Best per net leasable square foot cf benefited prcz-ert; fcr th_s ir..zrovement is estf—mate as follc;.s • Tctal Estimated A.,/ount of Net Leasable Square xcota�-e Within Linits of Project Bcundaries Annual Revenue Required to Retire a 15-Year Bond Y To determine the cost per assessable square fcot, divide the a::,ount of annual revenue required to retire a 15-year, bond by the nuraer of net leasable square feet available within the Froject boundaries each year. There will be 15 connecutive asseszment roles. SAMPLE ASSESS'•;E„T Cost for typical 100,000 square foot office building with 80,000 net leasable square feet: 80,000 x 29t = 4"23,200 - Year 1 80,000 x 24; = $19,200 - Year 2 6 i I The actual costs assccisted with ret!rini; the CF.e_,.c_ Ncrz �ess- ment Revenue Ecnd issue are based cn c e bonj mar' { - p^o,�e t d r:-t ccr.3�ticn� at the tis e the bonds are marketed. To retire an issue of °�","';C,C�u in revenue bonds issued at a protected net interest cost of 1� per cent requires as much as $4,927,000 per year. The estimated asses ., e.^.ts : eQUire.A to retire l.l.e bonds at the above interest rate should be no hiv;^er than 2 ,' per net leasa:.le scuare foot d•,rin` either the first or seecnd year cf the bond retie _•ment period . e" `, ra`e ,;� 1 d 1�. _ aft _ , the a_cZe2z7ne 1 ecr_. �e ea-- I yeah. Sp ca _A ass:.s:-ent., co_lecte:. fr;,-� benefited prcpertie_ ear.. of t;.e 15 years before the bonds are retired gill, under the prc._sions of Chapter 1"S of the Cock, be use:. solely fcr the re_~.ar e.._nt of f .......s "in:nnce- for i. i. �' it cam .. ..v. At tCc:=ents . 1. h-It, ' 11 11 " �.ti i„a. :; Plan of" fFr cpcze~u I,;:r: o, e-_..r ,. 2. Cc::, C: ..�... f r^, ` F1annfn� 3 Cod. of of Report 4. Letter of G; -..ycn frcm Consultant LI I [J 0 li✓ i,�1�ir:i C �ir.�i Ci 1 ,�,FLIL CC.31 1..Z.,.. i The Contract ceii .--_ l art, oYt; e2_-O7 ar,r in be ow �r r �� �n J3ri'.: . 1981 dollars e:ith the exception of Item 42.0 A/E Services. The desi;n portion of this item has now been escalated to present dollars through recent contract amendmeritc,. The A/E Services pertion during construction remains at the 1981 dollar level. In add ition, two Economic Price Adji.stm•ant Revisions have teen made to It.;, _4.0 and this adurt.;,en' will cc.n„"Lrue to tai:e place on a quarterly bads. Y'r 1J tC�:T Ci11J iJ lJ:.a1�, 1 I; 1lit.1 Ir_ D"...CR1TF-7 1.0 Prc::,-:. � irlana,t.....n„ , Co ns t . u.,., i,,.. naV ._m en and Services During Construction 2.0 Ar..i,itectural, Civil Desir—n and Facilit'_ec En:,ineerinf- Services 3.0 Civil Ccr.structicn anti Installation Service:, 4.0 Ecui;. er.tz-, S ste:-.s and Start-un ServiceZ 5.0 Cc: t_ act or 0 _ .. :.1ain tni.an SUN.'per t Services TOTAL Allc•.rar.ce for fwture inf laticn adjust -meats n SAT 1CJl::�r $ 7,723,1�0 3,437,,2: ' 26,�Q 14,E.,37 31 791,1�3 882,25� $7C,748,621 $86,066,927 In addition to the five major contract ceilings, Wes tin:-hcuse is also recuired to work ;rithin a comprehensive ceiling for total funding availability. Idearly all of the funding for the project is being provided on a phased -incremental basis, and thus the County is restricted in the total funds it can make available to Wectir.ghcuse. At the start of the project, this phased fundin ceilin'r; Was $10,617,330 and as of June 15, 1982, it has reached $30,773,333• Sources of funding for the Westinghouse Contract Include Urban Mass Transportation Administration State of Florida Mass Transportation Program City of Miami Special Assessment Project Area Revenue Bonds- $55,766,927 8,000,000 2,300,000 20,000,000 $86,066,927 82-805 j F1 ROBERT J. HARMON' & ASSOCIATES, INC. 1NTERNATIOti-%L SQUARE, 1875 ENE STREET, N.«. NVASHItiGTON', D.C. Z0006 • (202) 466-53Z3 June 22, 10c2 Simon Zweig"aft Mana"er Prc ject De vei Cp:7ent Dade County Transportation Derart�:er.t 44 Wert F'- 1C-� Street treet u 22n'd Flccr Miami, Florida 3?13C Dear Simon. JL" 1�-- D.C.tI The firs cf Fct°crt J. Farmcn & Assc'Ciates, Inc. wa-z' reta...e.. by Da' e CCI:^.t_' in two pre'. ic,.:S enLar�e�:.e-.ts to evaluate t!:e mcnetar': ecc..=.c bene. its of ccnztruCtli:=" the t-:Ia i Ccr;Yc; er.t cf MetreraiI (DCi`). Currently, we have been enz:s-CL c to evaluate the "eq::itabiIity" C^d "con=istency" of the azzess- me ` level eii :tility criteria and prccedurez that would be applied in i ^1ementir- the DC:� Prcject Area Assess:'ent, Dis`ric`.. This letter of opinicn summarizes cur professicnal cone usic.^.s regarding the impertant facets of the prccra-. Eased on our previous benefit assess^ent evaluation o:' the DCt: Project, the ow;ers of property ccntairred in the assezZment project area would, in all cases, receive monetary returns in excess of the annual assessment paymentz. The nature cf the arsers:;ent procedure requires that the fixed annual bcnd payment be annually pro -rated to the total net square feet of private and public space contained in the defined project area. This means the annual payment assessed on each existing property owner would decline over the fifteen year term of the bone, while the monetary benefits would be increasing. The assessment levy would be calculated on a uniform cents per net leaseable square foot basis. Net square feet would be con- sistently measured by Dade County Assessment Office utilizing a definition of gross square feet less common areas (e.g. elevactr shafts, stairwells, etc.). This procedure was field-tcstcd under our supervision and would meet all consistency requirements for this type of assessment. Since there are no exemptions, from this assessments, with the exception of the statutory one re- lating to federal buildings, the assessment would be both uniform and consistent. REGIONAL/URBAN RLAI ESTATE TRANSPORTATIONSYSTIMECONOMIC5 M 82-805 r' L Mr. Simcn Zweighaft June 22, 1982 Page Two In summ-mry, it is our professicnal opinicn that the Miami DC,'.', Project Area assessment prci,rari meets all eccncnic and fiscal criteria for equitabilit;: and consistency. Very truly yours, Rcbert J. aarmon 1•.anasin�- Principal R J'r:: 13 21cc, �II1T D Altercate 7-21-82 ORDINANCE NO. ORDINANCE: CREATING AND ESTABLISHING A SPECIAL ASSESSMENT PROJECT AREA LYING WHOLLY WITHIN THE CITY OF MIAMI IN DADE COUNTY, FLORIDA, TO SUPPORT THE PROJECT TO BE KNOWN AS THE DUWNTOWN CUMPONENI OF METRORAIL (DCM) PROJECT IN ACCORDANCE WITH THE PROVISIONS OF CHAPTER 18, SECTION 21, OF THE CODE OF METROPOLITAN DADE COUNTY, FLORIDA; DEFINING THE GEOGRAPHIC BOUNDARIES OF THE PROJECT AREA; •AUTHORIZING THL ISSUANCE OF DADE COUNTY DCM PROJECT REVENUE BONDS IN AN AMOUNT NOT EXCEEDING $27,000,000 TO DEFRAY A PORTION OF THE COST OF THE PROJECT; AUTHORIZING ANNUAL SPECIAL ASSESSMENTS DURING A FIFTEEN -YEAR PERIOD BASED ON THE NUMBER OF NET LiASABLE SQUARE FEET WITHIN THE PROJECT AREA; PROVIDING THAT SUCH ANNUAL SPECIAL ASSESSMENT'S SHALL CONSTITUTE A LIEN ON ALL REAL PROPERTIES WITHIN THE PROJECT AREA; PROVIDING A METHOD FOR COLLECTING DELINQUENT SPECIAL ASSESSMENTS WITHIN THE PROJECT AREA; FINDING THAT THE PROJECT CONSTITUTES A PUBLIC PURPOSE SERVING THE PUBLIC GOOD; AND PROVIDING AN EFFECTIVE DATE WHEREAS, Article VIII, Section 11 of the Florida Constitution of 1885, as revised in 1968, and as subsequently amended, enti`led "Dade County Home Rile Cnarter" remains in full force and effect by virtue of Section 6(e) of the present Florida Constitution.; and WHEREAS, the aforesaid constitutional provision gave the electors of Dade County the power to adopt, revise and amend from time to time a home rule charter of government for the County, under which the Board of County Commissioners of the County would be the governing body of the County; and WHEREAS, on May 21, 1957, at an election duly called and held pursuant to the provisions of said Article VIII, Section 11 of the Florida Constitution of 1885, the electorate of Dade County, Florida, adopted a home rule charter conferring broad governmental powers on the board of County Commissioners of Dade County; and WHEREAS, in particular, Section 1.01A of the $Aid Home Rule Charter provided that the broad powers conferred upon the the Board of County Commissioners of Dade County included but were not limited to the power to: 82-805 4 Alternate Page No. 2 10. Levy and collect taxes and special assessments, borrow and expend money and issue bonds, revenue certificates, and other obiigations of ind�_bteuness in such manner, and subject to such limitations, as may be provided by law. ' li. By ordinance, establish, merge and abolish special purpose districts =_ within which may be provided police and fire protection, beach erosion control, recreation facilities, water, streets, sidewalks, street lighting, waste and sewage collection and disposal, drainaqe, and other essential facilities and services. All county funds for such districts shall be provided by service charges, special assessments, or general tax levies within such districts only. The Board of County Commissioners shall be the governing body of all such districts and when acting as such governing body shall have the same jurisdiction and powers as when acting as the board. WHEREAS, pursuant to such provisions of the Florida Constitution and the Home Rule Charter, the board of County Commissioners duly enacted Chapter 16 of the Code of Metropolitan Dade County, Florida, providing several methods for the creation and establishment of special taxing districts, other special purpose districts, special projects, and special project areas for certain enumerated purposes and prescribing the procedures therefor; and WHEREAS, the County's Transportation Coordinator has requested and recommended to the County Manager that a special assessment project designated as the Downtown Component of METRORAIL (DCM) Project be created by the Board of County Commissioners in a defined project area pursuant to Section 16-21 of the Code of Metropolitan Dade County. Tne recommendation is based on an appropriate recognition of the special benefits that will bu conferred on real properties and their owners in close proximity to the Downtown Component of. 14ETRORAIL (DCM) coupled with the realization that these properties and their owners should contribute --to the substantial funds already granted or committed for grant by the 82-805 Alternate Page No. 3 federal government through the Urban Mass Transportation Administration (UMT'A) , the stat^ gnvfrnmr•nt tr,rr)kjgh the F'ior ida Departme.it of 'Transportation (Florida DUT), and the City of htiarri, and because of the substantial increase in the values of real properties in the project area that the DCM Project will bring to the area; and WHEkEAS, the County Manager and the Transportation Coordinator, after • making a detailed study based upon appropriate investigations, surveys, plans and specifications, co,mplied with the requirements of Chapter 18 of the Count ' Code of Ordinances by filing with the Board of County Co„m.i_sioners their written report and recommendations setting forth the boundaries of the proposed special assessment project area; the location, material, nature, character, and size of them DCM. Project to be provided and maintained within t_h(- propa_ed boundaries; estimating the cost of constructing and maintaining such project; certifying that the proposed project conforms to the master plan of development for the County; setting forth their recommendations concerning the need and desirability for the requested project; the auility of the affected property to bear special assessments for financing the cost, acquisition and construction of the project; expressing their opinion that the property to be specially assesssed will oe benefited in excels of the special assessments to be levied upon each property; estimating the amount to be assessed against each net leasable square foot of the benefited property within the project area; and attaching to such report and recommendations a map showing the boundaries and location of the proposed project area and various other reports. Such reports and recommendations of the County Manager and the Transportation Coordinator and a summary thereof by the County Manager were tiled with the Cierk and transmitted to the Board of County Commissioners and are attached hereto as Composite 82-805 Iternate Page No. 4 Exhibit "1" and incorporated herein by reference as though fully set forth verbatim; and WHEREAS, thl� Hoard of County Commissioners, upon review and consideration of the aforesaid recommendations of the Transportation Coordinator and the report and recommendations of the County Manager, has decided to provide for the acquisition and construction of the proposed DCM Project within the defined project area in accordance with the aforesaid reports and recommendations of the County Manager and the Transportation Coordinator, but subject to conf irmatiun br the board after a public hearing as provided for in Chapter 18, Section 21, of the Code of Metropolitan Dade County, Flurida; and WHEREAS, the local improvements consist of the construction and installation of an automated transit system that will operate on a bi-directional double guideway app.oximately 1.9 miles long in a fully elevated loop configuration around the Miami central business district, and will include ten on-line stations and 12 vehicles all operating within the proposed project area; and WHEREAS, the estimated cost to the benefited property owners for their share of the acquisition, construction and installation of the DCM Project, including administrative costs incioent thereto, is estimated to be $26,075,000; and WHEREAS, the Board of County Commissioners believes that the best and most expeditious means of financing the cost to the benefited property and property owners of their respective equitable shares of the Project's cost is through the issuance of Dade County, Florida, DCM Project Revenue bonds in a principal amount not to exceed $27,000,000; and WHEREAS, the estimated annual debt service for the Dade County, Florida, DCM Project Revenue Bonds to tre issued pursuant to this ordinance is, for each year during the 15-year 82-8U5 Al�frnate Page No. 5 repayment period, an amount of approximately $4,555,000, inclusive of principal, interest and administrative costs, such annual amount to be derived from special assessments to be levied upon the real properties benefited by the Project; and WHEREAS, discussions have taken place between officials of Dade County and the City of Miami for the purpose of obtaining the consent of the City to the County's creation of the DCM Project wholly within the City's geographical boundaries, and the City's officials have indicated that such consent will be given in written form within a short period of time; and WHEREAS, notice of the public hearing to be held on Friday, July 23, 1982 at 9:00 A.M. at the Dade County Administration Building immediately prior to the County Commission's consideration of this Ordinance has been given in accordance with the provisions of Section 18-3(::) of the County's Code of Ordinances, NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF CL)L, COMMISSIONERS OF DADE COUNTY, FLORIDA: Section 1. This Board finds and determines that the premises hereinabove set forth are true and correct for purposes of this Ordinance and the same are incorporated into this Section by reference as though fully set forth in this portion of the Ordinance. Section 2. In accordance with the provisions of Chapter 18, Section 21, of the Code of Metropolitan Dade County, Florida, a special assessment project wholly within the City of Miami in Dade County, Florida, to tie known ana designated as the "Downtown Component of 14ETRORAIL (DCM) Project", is hereby authorized, sanctioned and established. Section 3. The improvements to be provided by the DCM special assessment project will consist of the following: 0 82-805 `J Alecriate Page No. 6 The project will consist of the construction of an automated transit system that will operate on a bi-directional double guideway approximately 1.9 miles long in a fully elevated loop configuration around the Miami central business district. The UC:M Project system will include ten on-line stations and the Purchase of twelve vehicles. 'This system will serve the need for a comple- mentary commuter di_.tribution system for the 20.5 mile METRORAIL rapid transit line. Section 4. The location of the project will be as follows: The alignment of the 1.9 miles long DCM system is shown as part of Exhibit "A" within Exhibit "l". A written description follows: Starting at the Government Center Station, the DCM alignment will run north along the METRORAIL right-of-way to N.W. 5th Street at which point it will turn east and continue as a two-way route along N.H. and N.E. 5th Street to a point approximately 150 feet east of N.E. 2nd Avenue. At this point the alicnment hill turn southward running parallel to N.E. 2nd Avenue on private property to be acquired for a new right -cf- way. Tne route will continue south to N.E. 1st Street where it will turn east and continue in an eastward direction to Biscayne boulevard. At Biscayne Boulevard the alienment will turn south and continue along the Boulevard's median to S.E. 3rd Street. The route then turns westward along S.E. 3rd Street and continues over the I-95 exit ramps which presently terminate at S.E. 3rd Street and S.E. 2nd Avenue. At the approximate intersection of S.E. 1st Avenue and the projection of S.E. 3rd Street the alignment - whim to this point had been a double guideway two-way route - separates. One branch of the route turns north on S.E. 1st Avenue to S.E. 1st Street, thence west along S.E./ S.W. lst Street to the METRORAIL right-of-way. The other branch continues westward along the I-95 ramps to the METRORAIL right-of-way, where it then turns north, and reconnects with the first branch. The alignment continues as a two-way route north along the METRORAIL tight -of -way to the starting point - the Government Center Station. Section 5. The project area or boundaries of the DCM special assessment project area are as follow:,: The proposed Project is located entirely within the City of Miami, and boundaries of the proposed project area are that portion of the City of Mrami, Dade County, Florida, more partieularly.described as follows: ` 82 •8 U5 Alternate Page No. 7 Bounded on the East by Biscayne Bay between Port Boulevard and the Miami River. Bounded on the South by the Miami River between Biscayne Bay and Interstate 95. Bounded on the West by Interstate 95 between the Miami River and N.W. 6th Street. Bounded on the North by: N.W. 6th Street between Interstate 95 and N.W. 1st Avenue, and the south right-of-way line of the Florida East Coast Railroad between N.W. 1st Avenue and U.S. Highway No. 1 (Biscayne Boulevard); and Port Boulevard between U.S. Highway No. 1 (Biscayne Boulevard) and Biscayne Bay. The boundaries of the Project are as shown on the attached plan entitled "Special Assessment Project of the ►downtown Component of Metrorail" prepared by the Dade County Transportation Administration and hereinafter referred to as Exhibit "A", and which is part of Composite Exhibit "1." Section 6. It is hereby declared that said project will constitute a special benefit to all property within the DCM special assessment project area and that the benefit in the case of each real property benefited will be in excess of the amount of the special assessment levied on that property. Section 7. The Board finds and determines that the proceeds of the special assessments levied upon the benefited property will be sufficient to pay the interest on and the principal of the Dide County, Florida, DCM Project Revenue b(l,nds to be issued pursuant to this Ordinance and a subsequent Bond Ordinance as described in Section 9 below, as well as the administrative cost of creating the Project and processing, handling and collecting the special assessments to be levied within the Project Area. Section 8. The Board of County Commissioners is authorized and empowered to levy and collect special assessments upon the property included within the area dusc:rihed in Section 5 of this Ordinance, which property will 82-805 I �a`erRate8 96. be specially benefited by the DCM project. Said special assessments are authorized and the County Manager is directed to levy and collect these special assessments pursuant to the provisions of Section 18-14 and Section 18-21 of the Code of Metropolitan Dade County, Florida, as heretofore and hereafter amended, insofar as the same may be applicable, without the necessity of creating and establishing a special taxing district embracing the geographical area specially benefited by the improvements constituting the DCM Project. The proceeds of said special assessments shall be used to pay and be pledged to pay the principal of and the interest upon the wade Conty, Florida, DCM Project Revenue Bonds as authorized and issued pursuant to this Ordinance, and to defray the administrative cost of creating the Project, including the processing, handling and collecting of the special assessments to me levied within the Project Area. Section 9. The issuance of Dade County, Florida, DCM Project Revenue Bonds in a principal amount not exceeding $27,000,000 is hereby approved and authorized and the cost of acquisition and construction of the said DCM Project shall be paid from the proceeds thereof together with other proceeds already granted or committed for grant by the federal government through the Urban Mass Transit Administration (UMTA), the state government through the Florida Department of Transportation (Florida DOT) and the City of Miami. The form of the bonds and all other characteristics and details pertaining to these bonds shall be set forth in a separate Bond Ordinance to be subsequently considered and acted upon by the 13r.)ard. The proceeds from the sale of said bonds shall be deposited into a fund hereby created and designated the "DCM' Special Assessment Project Fund". The period of indebtedness of the said bonds shall be 15 years from the date of issuance, and the terms of payment of the bonds shall require and provide 82'805 14 Jernate Page No. 9 for an annual amount in special assessments sufficient to meet annual debt service requirements for principal and interest payback and to meet the administrative costs of the Project, including the levying and collection of special assessments through annual assessment rolls. Section 10. Any payment of principal of and interest on said bonds issued pursuant to this Ordinance or to the subsequently enacted. Bond Ordinance described in the preceding paragraph shall be payable from and secured only by the proceeds of the special assessments collected from propertle specially benefited within the DCM Special Assessment Project Area. Such bonds shall not contain any provisions pleciying the County's faith and credit or its taxing power, nor shall such bonds be construed as pledging either the faith and credit or taxing power of Dade County for their payment. Sect ion 11. In the event of a def au l t by Lkide County in the payment of the principal of or the interest due on a Dade County, Florida, DCM Project Revenue Bond as authorized herein and in the Bond Ordinance to be subsequently enacted, the holder or holders thereof shall have available all remedies at law and equity to satisfy payment of principal or interest or both, but only from the "DCM Special Assessment Project Fund" herein referred to. There shall be no right to require the levy of any tax for the purpose of paying the principal of or interest on any or all bonds authorizer) herein. No such default shall De declared to nave occurred until after a lapse of a period of thirty (30) days from any payment due date. The terms of payment of said Bonds shall include the privilege of prepayment by the County without penalty on any payment date. Section 12. The County Attorney or the County's Special Counsel for the DCM Special Assessment Project Fund is hereby authorized and directed to render an opinion (a) as to the validity 'of the issuance of the Bonds as authorized herein Aernate Page No. 9 for an annual amount in special assessments sufficient to meet annul debt service requirements for principal and interest payback and to mesa the administrative costs of the Project, including the levying and collection of special assessments through annual assessment rolls. Section 10. Any payment of principal of and interest on said bonds issued pursuant to tnis Ordinance or to the subsequently enacted. bond Ordinance described in the preceding paragraph shall be payable from and secured only by the proceeds of the special assessments collected from properties specially benefited within the DCM Special Assessment Project Area. Such bonds shall not contain any provisions ple(.gi-,g the County's faith and credit or its taxing power, nor stall such bonds be construed as pledging either the faith and credit or taxing power of bade County for their payment. Section 11. In the event of a default by Dade County in the payment of the principal of or the interest due on a Dade County, Florida, DCM Project Revenue Bond as authorized herein and in the bond Ordinance to be subsequently enacted, the holder or holders thereof shall have available all remedies at law and equity to satisfy payment of principal or interest or both, but only from the "DCM Special Assessment Project Fund" herein referred to. There shall be no right to require the levy of any tax for the purpose of paying the principal of or interest on any or all bonds authorizes! herein. No sucri default small oe declared to nave occurred until after a lapse of a' period of thirty (30) days from any payment due date. The terms of payment of said Bonds shall include the privilege of prepayment by the County without penalty on any payment date. Section 12. The County Attorney or the County's' Special Counsel for the DCM Special Assessment Project Fund is hereby authorized and directed to render an opinion (a) as to the validity of the issuance of the bonds as authorized herein i82-eU3 It A.* rna to Page No. 10 and in the Bond Ordinance to be subsequently enacted and (b) as to the tax-exempt status of said Bonds. The County Attorney or the County's Special Counsel for the DCM Special Assessment Project is further authorized and directed to tare proper proceedings for the validating of the bonds authorized by this Ordinance and the detailed Bond Ordinance to be subsequently enacted. Section 13. If for any reason not within the control of Dade County, the Bonds authorized herein are not validated within. three (3) years from the date of this Ordinance, or if the County Attorney or the County's Special Counsel for the DCM Special Assessment Project does not render the opinion as to validity referred to in Section 12 above within the said three (3) years, U3de County shall remit and return to bondnoIders all monies they have advanced to Dace County for the express purpose of constructing and establishing the rail transit system described herein within the "DCM Special Assessment Project Area", which remittance and return shall be made from the account of Dade County known as the "DCM Special Assessment Project Fund". Section 14. A separate special assessment roll for the special assessment project area shall be prepared immediately following the issuance of the DCM Project Revenue Bonds and in each year thereafter. These annual assessment rolls shall show the number of net leasable square feet in the project area as of January 1 of each year during which DCM Project Revenue Bonds are outstanding. The special assessments levied and imposed in each year shall be based on the number of net leasable square feet existing within each separate assessable property. For purposes of this Ordinance net leasable square feet shall mean the number of gross square feet comprising the improved real property as measured by the Dade County Property Appraiser, less an adjustment for common areas 44 Ake rnate Page No. 11 such as elevator shafts, stairwells and other areas not specifically rentable. In determining the number of net leasable square feet within each benefited parcel of unimproved real property within the project area, vacant lands shall t,c assessed only for the square footage of their lots. The annual special assessment rolls shall be prepared in accordance with the provisions of Section 18-14 of the Dade County Code of Ordinances except as may be modified herein. Section 15. Each annual special assessment against real property specially benefited by the construction of the rail transit system in the DCM Special Assessment Project Area may be paid at the office of the Finance Director of Dade County or his designee, in accordance with Section 18-14(7) of the Code of Ordinances of Metropolitan Dade County, within thirty (30) days after the date of the recording of the assessment roll, without interest. All owners of property within the Project Area shall be mailed notices of their Special Assessments on the date of the recording of the annual •3:se:-,smL:nt roll. Thereafter each annual ar;!:vssment ::hall b,, payable with interest at not less than a rate of seven and one-half per centum (7-1/2%) per annum from the expiration of said thirty (30) day period in each calendar year; however, in no case shall the interest be less than one percent (le) above the County's borrowing rate for the project; and provided further, that any annual assessment may be paid at any time before due, together with interest accrued thereon to the date Of payment, but no discounts shall be allowed regardless of the time of such payment. It is estimated that the cost per net leasable square foot of real property in the first year in which Special Assessments are levied will be 27¢ anu 200 in the' year thereafter with such cost per net leasable square foot expected to diminish in each succeeding year as the number of net leasable square feet in the Project Area increases. 11182-li;05 A.rnate Page No. 12 Section 16. In the event there are delinquencies in the payment of special assessments by benefited properties and their owners, the County pledges to ta►ce all legal action necessary promptly to collect such special assessments, which assessments shall constitute a lien against the parcel of property assessed, pursuant to the Code of Metropolitan Dade County and applicable State statutes, and in particular to pursue those remedies set forth in Section 18-14(8) of the County's Code of Ordinances. Section 17. The County Manager is authorized and directed to cause the construction and installation of the said rail transit system project known as the DCM Pro],:ct to be accomplished within the project area in accordance with the provisions of this Ordinance. Section 18. The County Manager is further directed to cause to be prepared and filed with the Clerk of the County Co-m.nission a Preliminary Assessment Roll for the first year of special assessments and in each subsequent year in which U0, Special Assessment Project Revenue Bonds are outstanding in accordance with the provisions of Section 18-14 of the Cooe of Metropolitan Dade County, Florida. Section 19. The County Manager and the Finance Director are hereby authorized to do all acts and things which may be required of them in order to carry into effect the provisions of this Ordinance. Section 20. The provisions of Chapter 18 of the Code ul Ordinances of Metropolitan Dade county shall govern and be effective with regard to the DCM Special Assessment Project, save and except when in conflict with provisions of this Ordinance in which event the latter shall govern and control. Section 21. Tne provisions of this Ordinance shall take effect subsequent to confirmation after public nearing as provided by Chapter 18, Section 21, of the Code of Metropolitan AlVrnato Page No. 13 Dade County, Florida, and then either ten (10) days following the filing of this Ordinance with the Clerk of the Circuit Court, or the filing with the Clerk of the consent and approval of the City of Miami as required by Section 18-2 of the Code of Metropolitan Dade County, whichever is the later; provided however that Sections 9, 10, 11 and 12 of this Ordinance shall only become effective at the same time that the Bond Ordinance described in Section 9 hereof is enacted and becomes effective. PASSED AND ADOPTED: ` Approved by County Attorney a���,` j\ to form and legal sufficiency. 599BA071962 -13- 82-805 0 EXHIBIT E 15 1:o;:ard V. Gary City ME na7er �OSE !!1 11c.`1anus �:ctinc Di-ector Plann'. '- ���. Depart::.e::� July 19, 1.982 L� Pesolution Apprc-:1,il,,1 a Dc;•:nto-::n Componc.,t of Mctrorail Special 'assessment Project Area It that the Commission approve the creation of a "Special Assess:r.ent Prc jest Area of De,.;ntown Co:npener.t of Metrorail" within the service area to benefit from the Cor'pcnent of 'Votrorail and urce ti-:. t the Board of Ccunty Co,,', :i.ssicners authorize the sneci.al assess-ent, per the attached resolution. A Special Assessment District is proposed by Metropolitan Daue County Transportation Administration to fund a 15 year revenue bond issue to net $20 million to finance a portion of the $86 million .,.estinrhouse construction contract for the 1.9 mile long Downte•:in Component of Metrorail. Assessn"ents will be at the rat` of 29C per square foot of net leasable floor area times the. 16.8 million square feet of leasable col:,r1.ercial, residential and parkinq facility space located in the district to yield $4.9 million per year to retire the $30.3 revenue bond issue. Since the Special. Assessment Project Area lies wholly within the City of Miami, the approval of the City Commission is re- quired in order to create the Special Assessment Area. The Planning Department recommends this action as being consistent with commission cc:-,.:::i.tment to the Dot:ntown Component of 110tr.o- ra i.l project. It is further yt.,quested that this item be listed on the City for Plailllinq and 7onin<Items of July 29, 1982. Att,, ch-.ent cc: tr to 0 Special Assessment Project Area for Downtown Component of METRORAIL YVArlow" 00 NO �� rrIM 91W , a n Z 1 ST hE al ow pq \ 11 WEST 1 I aL A T [aSr T �� co ._f LIT ST SC 1 15�� ST N DENOTES 8OUNOARV Of THIS 1• ACT PROPOSEO STATION -- PROP03LO ROUTE OR ALIGNMENT 111110 Ilk i Resolution No. 10 —( A RESOLUTION ENDORSING THE EQUITABLE IMPLEMENTATION OF A SPECIAL ASSESSMENT ON BENEFITTING DOWNTOWN PROPERTIES AS PART OF THE FULL FUNDING PACKAGE FOR THE DEVELOPMENT OF THE DOWNTOWN COM- PONENT OF METRORAIL. WHEREAS, private sector financial participation is a prerequisite for federal funding of the Downtown Component of MetroraiI; and WHEREAS, the Metropolitan Dade County Commission has passed ordinance No. 82-72 creating a special assessment district of properties thit wiII benefit frcm the existence and operation of the Downtown Component of Mt-•troraiI. NOW THEREFORE BE IT RESOLVED BY THE BOARD OF THE DOWNTOWN DEVELOPMENT AUTHORITY OF THE CITY OF MIAMI, FLORIDA, that: 1. The special assessment district created by Metropol i tan Dade County Co;,vmiss ion Ordinance No. 82-72 is hereby endorsed. 2. It is recommended to the Metropolitan Dade County Commission that the implementation of the special assessment be achieved in an equitable manner after the concerns of -the City Commission and affected property owners are taken into consideration. PASSED AND ADOPTED THIS 13th Day of August, 1982.* ATTEST: A Tomi Jay tul z Executive Secretary Vd-�� Mayor Maurice A. Ferre, Chairman y F. Kenzie, Executive Director Mayor Ferre did not participate in this vote since the matter will be before the City Commission for action in September, 1982. 82 - 8 05