HomeMy WebLinkAboutSubmittal CD .11, Revenue Generat~000611. REVENUE GENERATION SUMMARY
A. Project the funds anticipated to be generated by the project. This
projection should include any source or use of funds which could
have any reasonable connection to the proposed development.
Make the following projections by year, including the first and
last year in which any construction and/or development takes
place:
(a) Yearly ad valorem tax receipts
(b) Yearly impact fees collected
(c) Yearly sales tax received by local government
(d) Yearly gasoline tax received by local government
(e) Yearly projections of any other funds by any other
sources generated as a result of development of the
proposed project within the region
Revenues generated for Miami -Dade County and The City of Miami
from the DDRI Increment development program provide substantial
income for both the City and County, the primary governmental bodies
that will be impacted by the development. Table 11-1, Revenues
Generated for Miami -Dade County and City of Miami, and Table
11-2, Revenues Generated for Other Entities, summarize the
individual revenue streams for Miami -Dade County and the City of
Miami, as well as other government entities. The revenue projections
are based upon a hypothetical development program with estimated
costs and values deemed conservative and are presented in 2001
constant dollars. The bases for the projections are:
Total office development will approximate 1.3 million square feet,
with a minimum 90 percent estimated to be for private business.
Development costs (acquisition, and construction) are estimated at
$120 per square foot. Ad valorem taxes will be paid only on the
space occupied by private users, which will have a rental basis of
$20 per square foot, net and an average occupancy of 85 percent.
• Residential development comprises a maximum 7,500 units,
containing both for -sale and rental units. Development costs are
estimated to average $120,000 per unit and have an average
market value of approximately $150,000.
Hotel development comprises 1,500 total rooms, with a mix of full -
service and limited service hotels. Development costs assume an
Downtown Development Authority Downtown Miami DRI Update
Question 11 — Revenue Generation (R) Page 11-1
average $100,000 per room. Average daily room rates are
estimated to be $125 with a 70 percent annual occupancy.
Retail development will comprise 750,000 square feet, assuming
an average development cost of $100 per square foot, and rents
assumed to be at $25 per square foot, net. Average sales for the
retail development are estimated to be $200 per square foot.
Wholesale and industrial space will total 750,000 square feet,
assuming an average development cost of $45 per square foot,
and rents assumed to be roughly $5 per square foot, net at 85
percent occupancy.
The 500,000 square foot convention center assumes an estimated
development cost of $100 per square foot. It is assumed that the
convention center will not generate sales and/or ad valorem taxes.
Attraction uses include a 45,000 seat baseball stadium and
15,000 total seats of theater and/or performance related uses.
Revenue from the stadium generally assumes: an average 90
home games (including pre and post season) at an average 50
percent occupancy, 10 major paid events at an average 80
percent occupancy, and an average attendee expenditure of $22
per event. The theater/performance facility is assumed to provide
a total 300 nights of events annually, with a 60 percent occupancy
and $12 average attendee expenditure. It is assumed that the
attraction uses will not be subject to ad valorem taxes.
Institutional facilities (including education, museums) will total
450,00 square feet. This use will not be subject to sales and/or ad
valorem taxes.
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Question 11 — Revenue Generation Page 11-2
�
Table 114
� REVENUES GENERATED FOR N|IAMI-DADECOUNTY & CITY OFK8iAK8U
Entity/Revenue Source
County -T� city �
Impact Fees (through uoum)
PuUoo
$U
Q1.910.175
Fire &Rescue
$0
$642,075
Parks &Recreation
$8
$4.281.150 �
Streets
$O
$4^827.95 -
Storm Sewers
$D
$7.403.07�_
Solid Waste
88
$1.235.7M-
General &Admin.
$O
$837.450
Dade County
$10.327.500
$U
DTQR|Supplemental Fee
$0
$2^110.400
Sub Total ' Impact Foon
$10,327,500
$18/17,950
$O
Other Development (Nnn-impact)Fees (through cnno
Miami -Dade VV.A£A.Connection
$16.910.932
Building Permit Fee
�
$O
$6,447.826-
Ener0/InotaUa8onFam �
$U
$2271750
Dade County Code Compliance
85n8655
$0
Radon Feeeo
$0
$113,588
Fire Plan Review
$0
�303.7��
M�o.Fees �nv,�m.mmun Cover, C/O etc.)
$O
$30.000
Sub Total - Other Non -Impact Fees
$18.5018'587
$,8,167'013
AdValorem Taxes (in u000)
City ofMiami Operating
�
$O
$9,450.023
$1,345.690 �
City ofMiami Debt
$O
City ofMiami Miso.
$0
$525.660�
School Operations
$9.148,587
$961.95�-
$O
$U
3ohmo|Debt
CountyN0lago
$Q
$6,107,118
County Debt
$O
$685,481
Library �
� $0
$369,013
Sub Total 'AdValorem Taxes
$10,110,544
$18/489.565
Other Fees & Taxes (in uuov
Franchise Fees
�
m6y
n/a
Utility Taxes
� n�-
n/a
$2/437.500-1
3o|dWaste Disposal Fee
Fire Protection
$467,508
Occupational Licenses
�
n1a
n/a
Sales Tax
$2.158,172
�
$182.156
Gas Tax
$1�
$208748
HotTax
�
$6[—
$696.519
Sub Total ' Other Fees &Taxes
$3,602,684
�
$4,043,421
Total
$49.117,948
�
�$40.650,295
Downtown Development Authority
Question 11-Revenue Generation
Downtown Miami DRiUpdate
PaDe11'a
TABLE 11-2
REVENUES GENERATED FOR OTHER ENTITIES
(OUTSIDE OF COUNTY AND CITY)
Entity/Revenue Source
Amount
State of Florida
Environmental Projects
$105,132
South Florida Water Management District
$627,638
Florida Inland Navigation District
$43,104
Sales Tax
$17,048,858
Gas Tax
$1,780,326
Miami Dade County Cities (not including City of Miami)
Sales Tax
$480,346
Gas Tax
$443,733
Hotel Tax
$0
Quasi Public Agencies
Hotel Tax
$1,297,378
Total
$22,226,515
Source: Lambert Advisory
(a) Yearly ad valorem tax receipts
Ad valorem taxes will be paid to both the City of Miami and Miami -
Dade County on all private development. Ad valorem taxes will
also be paid to the State of Florida for regional activities such as
Everglades preservation and regional entities including the South
Florida Water Management District and the Florida Inland
Navigation District. Table 11-3, Ad Valorem Millage, highlights
the applicable millage rates by taxing entity.
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(b) Development Fees (Impact Fees and Other Non -Impact Fees)
Miami Dade County and the City of Miami will collectively receive
more than $50 million in development fees from the construction
of the Increment II development program. Impact fees mandated
by the City of Miami Impact Fee Ordinance (10426) provides a
schedule of fees for both residential and non-residential
development imposed to offset the cost of services provided by
the City. Miami -Dade County assesses impact fees for residential
development earmarked for public schools.
TABLE 11-3
AD VALOREM MILLAGE
Entity/Item
Millage
City of Miami
City of Miami Operating
8.995
City of Miami Debt
1.280
City of ' mi Miscellaneous
0.500
Sub Total
10.775
Miami -Dade County
County Millage
5.809
County Debt
0.652
Sub Total
6.461
Special Districts
Library
0.351
Miami -Dade School Board
School Operations
8.702
School Debt
0.915
Sub Total
9.617
State of Florida
Environmental Projects
0.100
South Florida Water Management District
0.597
FIND
0.041
Sub Total
0.738
TOTAL
27.942
Source: Dade County Tax Collector
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Other non -impact fees include building permit fees to the City for
all new construction as well as water and sewer connection fees
paid to the Miami -Dade Water and Sewer Department. Unlike
taxes and license fees, development fees are not reoccurring.
(c) Sales Tax
The State of Florida applies a six percent sales tax on all retail
expenditures for non-exempt goods and lease payments on
residential units and commercial space. Hotel room charges will
be subject to sales tax.
State law requires that a portion of the six percent sales tax
mandated by the state, equating to 9.653 percent of the amount
collected, be rebated to the County in which the taxes were
collected. It is estimated that the County will retain 63.5 percent of
the rebate amount, while the City of Miami will receive an
estimated 10 percent.
In addition to the sales tax, Miami -Dade County has imposed an
additional one-half percent tax on the aforementioned retail
expenditures, which is allocated to the Miami Dade Health Trust.
This amount is fully retained by the County.
(d) Gasoline Tax
Each gallon of gasoline sold and used by the people
occupying/utilizing the prospective residential and commercial
development is taxed at the federal, state, and county level. The
State of Florida collects $0.172 for each gallon sold, of which
$0.03 is distributed to the county governments and $0.01 is
distributed to municipalities.
Miami -Dade County levies $0.10 per gallon on each gallon of
gasoline sold, a portion of which is rebated to the municipalities in
accordance with a formula based on population and miles of
roadway. Approximately 77.1 percent of the tax revenue is
allocated to Miami -Dade County and 10 percent is allocated to the
City of Miami.
It is estimated that each residential unit will generate 5.6 trips per
day and each hotel unit will generate 6.9 trips per day. It is further
estimated that each 1,000 square feet of retail, convention and
attraction space will generate 22.2 trips per day and each 1,000
square feet of office and institutional space will generate 18.4 trips
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Question 11 — Revenue Generation Page 11-6
per day. Average trip length is estimated to be 5.3 miles, and
average fuel consumption is estimated at 21.6 miles per gallon.
(e) Other Funds Generated: Franchise Fees/ Utility Taxes
Miami -Dade County charges franchise fees and/or utility taxes on
electricity, telephone, natural gas, cable television and solid
waste. The amounts paid by the occupants of residential units
and businesses are dependent upon usage at the rate structures
obtained from the service providers. It is not possible at this time
to estimate the amounts that Miami -Dade County will derive from
these revenue sources.
Other Funds Generated: Occupational License
Businesses and professionals operating in the City of Miami are
required to pay occupational license fees in accordance with the
County's fee schedule. The specific amounts vary by type of
business or profession in which they are engaged.
Other Funds Generated: Fire and Solid Waste Fee
In addition to property taxes, there are two additional annual fees
that affect City of Miami residents directly: Fire and Solid Waste.
The Fire fee amounts to $61 per residential unit, while Solid
Waste is charged as $325 per unit.
Other Funds Generated: Hotel Tax
All hotel guests in Miami -Dade County are charged taxes
equivalent to 6.0 percent of their room charges for tourism,
convention, and sports facility development. The City of Miami
Beach will receive one-third of this amount, and the City of Miami
will receive 23.3 percent. The remainder will be distributed to a
variety of quasi -public entities including the Greater Miami
Convention and Visitors Bureau, the Tourist Development Council,
the Miami -Dade County Cultural Affairs Council and the
Professional Sports Facility Fund.
2. List all assumptions used to derive the above projections and
estimates. Show the methodologies used and describe the
generally accepted accounting principles used in all
assumptions, estimates and projections.
The assumptions and methodology utilized to determine the proposed
development program by real estate use as outlined within section
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Question 11 — Revenue Generation Page 11-7
11.A.1 has been completed as part of section 10.E of this document.
Revenues generated for the City of Miami and Miami -Dade County
included within the above Table 11-1, Revenues Generated for
Miami -Dade County and City of Miami, Table 11-2, Revenues
Generated for Other Entities (Outside of County and City), and
Table 11-3, Ad Valorem Millage, are based upon specific co-
efficients, rates and/or fees defined within development ordinances
and/or fee (tax) schedules from either the City, County and/or State.
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Question 11 — Revenue Generation Page 11-8