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HomeMy WebLinkAbout10-00154 Backup 2-11-2010rn r-a M I A M I•DADE COUNTY Carlos Alvarez, Mayor December 21, 2009 Mr. James Villacorta, Executive Director City of Miami Community Redevelopment Agencies 49 N.W. 5 Street, Suite 100 Miami, Florida 33128 Re: CRA Legislation Dear Mr. Villacorta: County Executive Office County Manager 1 1 1 NW 1st Street • Suite 2910 Miami, Florida 33128-1994 T 305-375-5311 F 305-375-1262 miamidade.gov This is to advise you that the Miami -Dade Board of County Commissioners (Board) has adopted two resolutions that may have an impact on the City of Miami Community Redevelopment Agencies. The first resolution (R-1382-09), adopted by the Board on December 1, 2009, requires a County Commissioner to serve on the Board of Commissioners of newly created Community Redevelopment Agencies (CRAs). It also directs that interlocal agreements between the County and existing CRAs be renegotiated to ensure that the Board has representation on each CRA. The second resolution (R-1315-09), adopted by the Board on November 17, 2009, directs the County to amend existing interlocal agreements to have net surplus revenues remaining in the CRA trust fund retained or returned to Miami -Dade County at the end of each fiscal year. The terms apply to fiscal years 2009-10 and 2010-11. Enclosed are copies of the resolutions for your review. Office of Strategic Business Management staff will be contacting you in the very near future to discuss the resolutions and to obtain your input. George M. Burgess County Manager Enclosures c: Cynthia W. Curry, Senior Advisor to the County Manager Jennifer Glazer -Moon, Director, Office of Strategic Business Management Jorge M. Fernandez Jr., Coordinator, Community Redevelopment and Municipal Services cmoO611 O ;OFFICIAL PIiZ COPY CLERIC OF TEE SOS I�,RRO1A1'7�Li��O�U COUNTY .�+ry�la II..4. ,tl k BONERS /�fV� XIL CD p FLORIDA MEMORANDUM Agenda item No. 11(A)(6) TO: Honorable Chairman Dennis C. Moss DATE: November 17, 2009 and Members, Board of County Commissioners FROM: R A. Cuevas, Jr. County Attorney SUBJECT: Resolution directing County Mayor to initiate negotiations on behalf of Miami -Dade County with each Community Redevelopment Agency within Miami. -Dade County to amend current interlocal agreements to have net surplus tax increment revenues retained or returned to Miami -Dade County Resolution No. R-1315-09 The accompanying resolution was prepared and placed on the agenda at the request cf Prime Sponsor Commissioner Carlos A. Gimenez. RACfcp RESOI7O78 R. A. C - vas, Jr. County Attorney MEMORANDUM (Revised) TO: Honorable Chairman Dennis C. Moss DATE: November 17, 2009 and Members, Board of County Commissioners FROM: R. A. Cdevas, Jr. County Attorney SUBJECT: Agenda Item No. 11(A) (6) Please note any items checked. "3-Day Rule" for committees applicable if raised 6 weeks required between first reading and public hearing 4 weeks notification to municipal officials required prior to public hearing Decreases revenues or increases expenditures without balancing budget Budget required Statement of fiscal impact required Ordinance creating a new board requires detailed County Manager's report for public hearing No committee review Applicable legislation requires more than a majority vote (Le., 2/3's , 3/5's , unanimous ) to approve Current information regarding funding source, index code and available balance, and available capacity (if debt is contemplated) required Approved Mayor Agenda Item No. 11 (A) (6) Veto 11-17-09 Override RESOLUTION NO. R-1315-09 RESOLUTION DIRECTING COUNTY MAYOR OR MAYOR'S DESIGNEE TO INITIATE NEGOTIATIONS ON BEHALF OF MIAMI-DADE COUNTY WITH EACH COMMUNITY REDEVELOPMENT AGENCY WITHIN MIAMI-DADE COUNTY TO AMEND CURRENT INTERLOCAL AGREEMENTS TO HAVE NET SURPLUS TAX INCREMENT REVENUES RETAINED OR RETURNED TO MIAMI-DADE COUNTY, AND PROVIDE NEGOTIATED AMENDED INTERLOCAL AGREEMENTS TO BOARD FOR FINAL APPROVAL WITHIN SIXTY (60) DAYS FROM EFFECTIVE DATE OF RESOLUTION, OR, IF NEGOTIATIONS ARE INCOMPLETE, SUBMIT A WRITTEN REPORT TO BOARD REGARDING STATUS OF SUCH NEGOTIATIONS WITHIN SIXTY (60) DAYS FROM EFFECTIVE DATE OF THIS RESOLUTION WHEREAS, pursuant to County Resolution No. R-994-09, a copy of which is attached to and incorporated in this resolution, the County Mayor or the County Mayor's designee was directed to conduct a study to determine whether Community Redevelopment Areas ("CRAB") in Miami -Dade County possessed "net surplus revenue" which would be available to be returned or retained by the Taxing Authorities; and WHEREAS, for each CRA for the 2009-2010 and 2010-2011 fiscal years, there may exist, after appropriations to the each CRA's Trust Fund for such fiscal years, receivables and other revenues, minus outstanding CRA obligations, including loans, advances, indebtedness (if any), and interest thereon, and any binding contractual obligations, a surplus amount of funds remaining in the Trust Fund ("Net Surplus Funds"); and 3 Agenda Item No. 11 (A) (6 ) Page No. 2 WHEREAS, the County is experiencing declining tax revenues because of the current economic downturn, which in tun has negatively impacted County services, and has made it necessary to explore alternative ways of generating and retaining County funds; and WHEREAS, the County should have at its disposal all necessary tools to address the County's current and future budgeting concerns; and WHEREAS, the County's payment to the Trust Funds ("TIF") for the all of the CRAs in Miami -Dade County for Fiscal Year 2009-2010 is anticipated to be $50.777 million, according to the Office of the Commissioner Auditor; and WHEREAS, the retention or return of a portion of the TIF contributed to the County CRAB by the County would be of great benefit to the County in this current economic climate; and WHEREAS, the only means to require that any CRA Net Surplus Funds are retained or returned to the Comity is by interlocal agreement authorized by Fla. Stat. Section 163.387(3)(b) which would allow the County to supersede and amend its obligation to appropriate to the respective Trust Funds, subject to the Taxing Authorities providing for payment of outstanding debt; and WHEREAS, for CRAs within the unincorporated area, the parties to such interlocal shall be the CRA and the County; and WHEREAS, for CRAs within a municipality, the parties to such interlocal shall be the municipality, the CRA and the County; and Bruno A. Barreiro nay Carlos A. Gimenez Barbara 3. Jordan Dorrin D. Rolle Katy Sorenson Sen. Javier D. Souto aye nay absent aye aye Agenda Item No. 7.1. (A) (6) Page No. 3 WHEREAS, the County should seek to amend interlocal agreements with CRAs and applicable municipalities to provide for the retention or return of Net Surplus Funds to the County, NOW, THEREFORE, BE IT RESOLVED BY Tith BOARD OF COUNTY COMMISSIONERS OF MIAMI DADE COUNTY, FLORIDA, that: Section 1.. The foregoing recitals are incorporated in this resolution. Section 2. This Board directs the Mayor or the Mayor's designee to initiate negotiations on behalf of the County with each CRA and applicable municipalities to amend interlocal agreements among the parties to have Net Surplus Revenues retained or returned to the County for fiscal years 2009-2010 and 2010-2011. Section3. This Board requests that the Mayor or his designee provide fully negotiated interlocal agreements with each County CRA and applicable municipality to the Board for final approval within sixty (60) days from the effective date of this resolution, or, if negotiations are incomplete, submit a written report to the Board within sixty (60) days on the status of negotiations with the CRA and applicable municipalities. The Prime Sponsor of the foregoing resolution is Commissioner Carlos A. Gimenez. It was offered by Commissioner Carlos A_ Gimenez adoption. The motion was seconded by Commissioner Sally A. Heyman upon being put to a vote, the vote was as follows: Dennis C. Moss, Chairman aye Jose "Pepe' Diaz, Vice -Chairman absent Audrey M. Edmonson Sally A. Heyman Joe A. Martinez Natacha Seijas Rebeca Sosa , who moved its nay aye aye absent aye and Resolution No. R-1315-09 Agenda Item No. 11(A) (6) Page No. 4 The Chairperson thereupon declared the resolution duly passed and adopted this 17th day of November, 2009, This resolution shall become effective ten (10) days after the date of its adoption unless vetoed by the Mayor, and if vetoed, shall become effective only upon an override by this Board. MIAMI-DADE COUNTY, FLORIDA BY ITS BOARD OF COUNTY COMMISSIONERS HARVEY RWIN, CLERK :DIANE COLLINS Deputy Clerk Approved by County Attorney as to form and legal sufficiency. Prepared by: Cynthia Johnson -Stacks Martin W. Sybblis . MIAME-I]A17 Memorandum COUNTY Date: November 16, 2009 To: Honorable Chairman Dennis C. Moss and Members, Boar ¢ iQaunty Commissioners From: George M. Burge County Manager �-- Subject: Report on Com nity edeve pment Agencies and the Impact of Retaining or Returning Surplus Funds to the Taxing Authorities for FY 2009-10 and FY 2010-11 The Board of County Commissioners (BCC) adopted Resolution R-994-09 on July 21, 2009, which requested that a report be prepared addressing the status of all Miami -Dade County ("County") Community Redevelopment Agencies ("CRAs") (Exhibit A). This report provides background information on CRAs, the definition, calculation and use of Tax Increment Financing (TIF), and existing CRAs and their budgetary processes. In developing this report, staff worked with the County Attomey's Office which provided input and reviewed the information for legal sufficiency. BACKGROUND Florida Statutes Part 111 of Chapter 163 known as the "Community Redevelopment Act of 1969" (the "Act'), authorized local governments to establish CRAs to revitalize areas designated as slum and blight upon adopting a finding of necessity (FON) demonstrating there is a need for a CRA to carry out community redevelopment activities, as defined in the Act. According to the Act, community redevelopment includes: 1) the elimination and prevention of the development or spread of slum and blight; 2) the reduction or prevention of crime; or 3) the provision of affordable housing to residents of low- or moderate -income. CRAs can undertake many activities to accomplish these goals, however, any activities undertaken by a CRA must be specified within the community redevelopment plan for the area ("Redevelopment Plan"). CRAs are authorized by the act to exercise those powers provided for by the Act, including but not limited to: • Issuing bonds using TIF or other revenue as collateral without the requirement of a referendum, as is required for the issuance of general obligation bonds backed by ad valorem revenues • Issuing request for proposals for the redevelopment of parcels identified in the community redevelopment plan; and • Enter into contracts to effectuate the Redevelopment Plan, without further BCC approval. Through Interlocal agreements between the County and CRAs and/or municipalities, the BCC has delegated certain of its powers afforded by the Act to municipalities that have CRAs within their boundaries. In the case of CRAs within the Unincorporated Municipal Service Area (UMSA), the BCC serves as the GRA Board (such as with the West Perrine CRA) or appoints a board of citizens from the community to serve as the CRA board (such as the Naranja Lakes CRA). Once created, a CRA is a public body and a legal entity - separate, distinct, and independent from the governing body of the county or municipality, according to the Act. Honorable Chairman Dennis C. Moss and Members, Board of County Commissioners Page 2 of 11 Tax Increment Financing Tax Increment Financing/Funds ("TIF") are used to leverage public funds to promote private or public sector activity in a defined geographic area. The dollar value of ail real property in the Community Redevelopment Area is determined as of a fixed date also known as the "base year." The CRA receives the tax increment equivalent of any increase in revenue above the base year. Each year the millage rates adopted by the County and municipalities are applied to the incremental increase in property value above the base year and that revenue is deposited into the CRA's Trust Fund and dedicated to the redevelopment area. In the case of UMSA CRAs, County and UMSA TIF funds are deposited in their respective trust funds annually. Likewise, municipalities with CRAs also deposit their respective municipal TIF funds into the trust funds annually. While TIF revenue is calculated based on the millage rate applied against incremental taxable values in each CRA, this fund is not ad valorem revenue. Generally, prior to the creation of a CRA's Trust Fund, the BCC has the discretion to appropriate the County's TIF amount ranging between 50 percent to 95 percent of the County's TIF to be deposited in that CRA's trust fund. The interlace! agreement between a taxing authority, such as the County and the governing body that created the CRA, may establish the TIF contribution percentage. EXISTING CRAs AND THE BUDGETARY PROCESS Currently, there are 12 active CRAs in the County, nine of which are within municipalities - Florida City, Homestead, Miami (Midtown, OMNI, and Southeast OvertownfPark West), Miami Beach, North Miami, North Miami Beach, and South Miami. Three CRAs are within UMSA - Naranja Lakes, Northwest 7th Avenue Corridor, and West Perrine. Additionally, the BCC adopted Resolution R-566-09 declaring certain areas within the NW 79 Street Corridor slum and blight; however, a redevelopment plan and trust fund have not yet been considered by the BCC. During the initial stages of the budget preparation process, the County's Office of Strategic Business Management (OSBM) provides projections of the County's TIF payments to CRAs based on that fiscal year's preliminary tax roll as reported by the County Property Appraiser on July 1. The increment growth on the tax roll (amount above the base tax roll) is multiplied by the adopted millage rate (after the second County budget meeting). Additionally, the payments are adjusted for over/under payments made in the previous year based on the most current tax roll available. The estimated TIF payment information provided by the County is used by the CRAs to assemble their budgets. After the CRA board and municipality approve the CRA annual budget, it is forwarded to the County for review, Following County staff review, the CRA budget is presented to the County's TIF Committee, which is comprised of County employees representing areas of expertise such as community and economic development, finance, housing, planning and zoning, and property appraisal. The TIF Committee reviews each CRA budget, including projects and initiatives funded by the CRA, and makes a recommendation to the County Manager to approve or deny the CRA's proposed budget. Finally, the CRA budget is presented to the full BCC for review and approval. The Act requires that the County's TIF payments be deposited into the respective CRA Trust Funds on or prior to January 1. COUNTY AND MUNICIPAL TIF CONTRIBUTIONS TO CRAs During the last five fiscal years, the County has contributed a total of $132.882 million to existing CRAs. Municipal CRAs have received $121.936 million in County TIF funds, while UMSA CRAs have received $7.662 million in County TIF and $3.284 million in UMSA TIF. The total Municipal TIF revenue allocated to municipal CRAs during the same period is $166.893 million. Year by year payments are detailed in Exhibit B. Because TIF funds deposited into CRA Trust Funds are based on the adopted BCC annual millage rate, the projected County TIF revenues for FY 2009-10 are based on the Countywide millage rate of Honorable Chairman Dennis C. Moss and Members, Board of County Commissioners Page 3 of 11 4.8379, and figures for 2010-11 are only estimates of what the CRAs may receive based on the tax roll growth assumptions included in the Five Year Financial Plan. As noted in Exhibit B, it is estimated that municipal CRAs will receive $69.809 million in County TIF funds during the next two fiscal years, UMSA CRAs will receive $4.928 million in County TIF funds and $2.062 million in UMSA TIF funds. NET SURPLUS AMOUNT OF TIF BCC Resolution R-994-09 directs the County to identify any legally available Net Surplus TIF amount that could be returned to the County and/or municipalities within which County CRAs exist for Fiscal Years 2009-10 and 2010-11. The resolution defines Net Surplus Funds as "an amount equal to the total amount of TIF that will be in the County CRA's Trust Fund for the 2009-2010 and 2010-2011 fiscal years, estimated appropriations to the Trust Fund for such fiscal years, receivables and other revenues, minus any amount to fund the County CRA's outstanding obligations, including loans, advances, indebtedness, if any, and interest thereon and any binding contractual obligations of the County CRA entered into on or before July 1, 2009, and further excluding any cash reserves as shown in the County CRAs budget approved as of the effective date of (the) resolution." By analyzing the projected TIF revenues and expenditures for the next two fiscal years provided by the CRAs and by a review of the current year CRA budgets, staff concludes that there may be Net Surplus TIF revenue that has not been committed by the CRAs as reflected in the report. This is not to say that these funds will not be committed by the time the CRAs FY 2009-10 budgets are submitted. The County is bound by Interlocal Agreements between the County and each municipality and CRA and/or Trust Fund ordinances to deposit TIF in each CRA's trust funds. Arty desire to change such deposits would necessarily involve modifications to the Interlocal Agreements and/or Trust Fund ordinances and will require the cooperation of the municipal bodies that are parties to those agreements. The following table summarizes the assumed net surplus for FY 2009-10 and FY 2010-11 for each CRA based on the information provided by the CRAs, with the exception of Miami Beach which did not respond to staffs inquiry. This in no way means that these amounts are available to be taken back by the County, as it would need to be verified that no CRA. has pledged or entered into any agreements that would obligate these funds. Additionally, each CRA would need to agree to return those revenues to the taxing authorities. Honorable Chairman Dennis C, Moss and Members, Board of County Commissioners Page 4of11 Assumed Net Surplus/Uncommitted Funds for FY 2009-10 and FY 2010-11 Based on Information Provided by CRAs Community Redevelopment Agency FY 2009-10 FY 2010-11 Total Countywide Funding Florida City $576,000 $763,000 $1,339,000 Homestead 1,086,000 1,249,000 2,335,000 Miami — Midtown 0 0 0 Miami— OMNI 0 0 0 Miami — Southeast OvertownJParkwest 0 0 0 Miami Beach 6,659,000 7,466,000 14,125,000 North Miami 558,000 545,000 1,103,000 North Miami Beach 381,000 473,000 854,000 South Miami 338,000 399,000 737,000 Naranja Lakes 0 0 0 North West 7'" Avenue 220,000 289,000 509,000 West Perrine 187,000 318,000 505,000 Subtotal Municipal CRAs $10,006,000 $11,502,000 $21,507,000 UMSA Funding Naranja Lakes 0 0 0 North West 7'" Avenue 91,000 122,000 213,000 West Perrine 77,000 134,000 211,000 Subtotal UMSA CRAs $168,000 $256,000 $424,000 GRAND TOTAL ALL CRAs $10,173,000 $11,753,000 21,931,000 Note: These funds are assumed uncommitted funds in and have not been confirmed or approved by the CRAs. Honorable Chairman Dennis C. Moss and Members, Board of County Commissioners Page 5 of 11 OUTSTANDING CRA FINANCIAL OBLIGATIONS The following table shows the current total outstanding financial obligations as reported by all the CRAs. The obligations listed below are multi -year obligations that extend beyond FY 2010-11, currently in place. Municipal and UMSA CRAs Outstanding Financial Obligations Community Redevelopment Agency Total Obligations General Description Florida City $7,804,574 Sewer and streetscape projects, fagade grants, affordable housing Homestead $8,977,134 Outstanding revenue bonds and loans Miami -- Midtown $4,528,670 Outstanding bonds Miami— OMNI $48,678,016 Infrastructure and parks projects, job creation activities, quality of life grants Miami — Southeast Overtown/Parkwest $30,125,818 Miami Beach $18,569,097 Bond payments, contractual obligations North Miami $18,853,524 Line of credit, interagency service agreements North Miami Beach $8,000,000 Line of credit South Miami $2,300,000 Outstanding bond UMSA - Naranja Lakes $15,609,237 Outstanding loans, service agreements UMSA — West Perrine $502,889 Service agreements SUMMARY OF EACH CRA Below is a brief history on each CRA and an analysis of current and future budgets. Please note that each CRA's budget submission includes all of the expenses and revenues available for that particular fiscal year, inclusive of any carryover or cash reserves. In preparation for this report, County staff contacted the CRA representatives and requested the information required. All of the CRAs with the exception of Miami Beach provided their contractual obligations, bond or debt service payments and estimates of TIF revenues for FY 2009-10 and FY 2010-11. As noted above, the projected County TIF revenue for FY 2009-10 and FY 2010-11 is based on the July 1 Preliminary Roll using the adopted millage rate, the municipal TIF amounts, with the exception of the Miami Beach CRA staff estimated city TIF revenue, were provided by the respective CRAs. The information provided on debt service payments and bond payments were verified using the information received by the CRAB for their FY 2008-09 budget submissions. Other obligations provided by the CRAs were reviewed ensuring compliance with their respective redevelopment plans. The municipal TIF amounts from the CRAs are also estimates as the municipalities have not adopted their respective millage rates. Depending on the millage rates adopted by the County and each municipality, the amount of TIF revenue reflected in this report will change. Florida Statutes Chapter 163.387(7) which governs the Trust Funds, requires that monies remaining in the Trust Fund on the last day of every year (" carryover") be returned to each taxing authority which paid the increment in proportion to their amount paid, unless the funds are used by the CRA to (1) reduce the amount of any indebtedness to which increment revenues are pledged; (2) deposited into an escrow account for the purpose of later reducing any indebtedness to which increment revenues are pledged; or (3) appropriated to a specific redevelopment project pursuant to an approved community redevelopment plan which protect will be completed within three years from the date of such appropriation. All of the CRAs, with the exception of the NW 7 Avenue CRA, have committed their carryover amounts to their respective redevelopment projects which are approved pursuant to an approved community redevelopment plan. As such, no CRA has cash reserves in their possession as all funds have been committed towards allowable projects. The NW 7 Avenue CRA citizen board was appointed in FY 2008-09 and has not approved a budget; therefore, the funds in the trust fund have not been.committed. The brief description and estimation of assumed net surplus funds below is based on the information provided by CRAs in connection with the preparation of this report. Honorable Chairman Dennis C. Moss and Members, Board of County Commissioners Page 6 of 11 1. Florida City CRA The BCC approved the CRA's Redevelopment Plan pursuant to Resolution R-795-95 and authorized funding of the same when it enacted Ordinance 95-108 (creating the CRA's trust fund) on June 6, 1995. An Interlocal Agreement between the County and the Florida City CRA was approved by the BCC on April 16, 1996. Subsequently, the Redevelopment Plan and the Interlocal Agreement were amended on July 8, 1997 (Ordinance 97-132) and on September 23, 2003 (Resolution R-1010-03). This CRA has not issued any debt. Instead, ail projects are funded on a pay-as-you-go basis. Within the last few years, the CRA's commercial corridor has grown in value to the point that the CRA has over $4 million in carryover. On May 5, 2009, the BCC adopted a revised CRA Redevelopment Plan and increased the CRA's boundaries to allow it to continue redevelopment efforts in a highly residential area. The CRA's FY 2008-09 budget included $2.2 million for land acquisition, which is an approved component of the CRA's redevelopment plan. The CRA is moving forward with its redevelopment efforts by purchasing dilapidated housing and commencing infrastructure projects. The CRA has stated that, without the County's TIF contribution, land acquisition and infrastructure project plans would be significantly impeded. For FY 2009-10, the Florida City CRA has obligations of approximately $1.3 million inclusive of $330,000 for administration, $500,000 for community policing, $120,000 for contractual agreements and $350,000 for committed grants. For FY 2010-11 the CRA has obligations of approximately $1.0 million inclusive of all the expenses listed above excluding $350,000 for grants. Based on staffs review of the information provided by the CRA, it is estimated that approximately $576,000 for FY 2009-10 and $763,000 for FY 2010-11 of County TIF funds may be uncommitted. However, these estimates have not been confirmed by the CRA, and the County will not know what funds in FY 2009-10 will be obligated by the CRA until the submission of the FY 2009-10 budget. At the time of this report, the County's Audit and Management Services Department was in the process of auditing the CRAs Trust Fund. Upon release of the audit, staff will have a better understanding of the CRAB use of funds and obligations. 2. Homestead CRA On June 7, 1994, the BCC approved the establishment of the Homestead CRA when it adopted the CRA's Redevelopment Plan pursuant to Resolution R-915-94. The BCC approved funding of the Redevelopment Plan when it enacted Ordinance 94-125 (creating the CRA's trust fund). An Interlocal Agreement between the County and the Homestead CRA was also approved by the BCC on June 7, 1994. According to correspondence from the City, the obligations for FY 2009-10 and FY 2010-11 total approximately $1.754 million and are comprised of $450,000 debt service, $575,000 in administrative expenses, $464,000 for contractual obligations and $265,000 for community policing. At this time, it is estimated that the Homestead CRA may have approximately $1.086 million for FY 2009-10 and $1.249 million for FY 2010-11 of County TIF funds uncommitted. These estimates have not been confirmed by the CRA, and the County will not know what funds in FY 2009-10 will be obligated until the submission of the FY 2009-10 budget. Audit and Management Services Department was also in the process of auditing the Homestead CRAB Trust Fund during the preparation of this report. Upon release of the audit, staff will have a better understanding of the CRAs use of. funds and obligations. Honorable Chairman Dennis C. Moss and Members, Board of County Commissioners Page 7 of 11 3, Miami Midtown GRA On June 7, 2005, the BCC approved the establishment of the Miami Midtown CRA when it adopted a FON declaring the area to be slum and blighted pursuant to Resolution R-213-05. The BCC also approved the CRA's Community Redevelopment Plan (Plan) as per Resolution R-626-05 and funded the Redevelopment Plan when it adopted Ordinance No. 05-110 (creating the CRA trust fund). An Interlocal Agreement between the County, the City of Miami, the Midtown Miami Community Development District, and the Midtown Miami CRA was also approved by the BCC on June 7, 2005. The purpose of this CRA was to use the tax increment funding that was produced by the project to fund the infrastructure improvements within Midtown Miami. The CRA boundaries mirror the Midtown Miami project boundaries. All TIF revenues collected within the CRA are applied to the debt service payments for the parking garage and plaza. As a result, there are no uncommitted funds in this CRA's trust fund to be retained by or returned to the County for FY 2009- 10 and FY 2010-11. 4, Miami OMNI CRA On July 7, 1987, the BCC approved the establishment of the Miami Omni CRA pursuant to Resolution R-825-87. The BCC approved the CRA's Redevelopment Plan, and funded such Redevelopment Plan when it enacted Ordinance 87-47 (creating the CRA's trust fund). An Interlocal Agreement between the County, City of Miami and CRA dated December 31, 2007, requires the CRA to refund to the County 35 percent of total TIF revenues. As a result, almost all TIF revenue paid by the County is returned to the County. Consequently, there are no uncommitted funds in this CRA's trust fund to be retained by or returned to the County for FY 2009-10 and FY 2010-11. 5. Miami Southeast Overtown/Park West CRA On January 20, 1981, the BCC approved the establishment of the Miami Southeast OvertownfPark West (°SEOPW") CRA when it declared the Area to be slum and blighted pursuant to Resolution R- 39-81. The BCC approved the CRA's Redevelopment Plan pursuant to Resolution R-1677-82, and funded the Redevelopment Plan when it enacted Ordinance 82-115 (creating the CRA's trust fund). On December 17, 1985, the BCC amended the ordinance and interlocal agreement to expand the boundaries of the existing CRA by approximately 200 acres (Park West Addition). Since its inception, incremental growth of this redevelopment area has been minimal, however, the CRA has experienced more significant growth during the last five years and can now fund projects necessary to redevelop the remaining redevelopment area, On July 23, 2009, the BCC adopted Resolution R- 1039-09 which amended the Redevelopment Plan to expand the boundaries of the CRA and extend the life of the CRA through March 31, 2030. However, such amendment to the Redevelopment Plan is contingent on the City of Miami and the SEOPW CRA approving the Second Amendment to the Interlocal Agreement, which was also approved by the BCC through Resolution R-1039-09, The information provided by the City for this report shows that all funding for FY 2009-10 and FY 2010-11 has been committed for contractual obligations and construction projects such as affordable housing projects (renovation of buildings), job creation and economic development grants, streetscape projects and other street infrastructure projects. Consequently, there are no uncommitted funds in this CRA's trust fund to be retained by or returned to the County for FY 2009- 10 and FY 2010-11. 6. Miami Beach Citv Center CRA The BCC approved the establishment of the Miami Beach City Center/Historic Convention Village ("MBCC°) CRA through Ordinance 93-28. An interlocal Agreement was approved by the BCC on March 30, 1993 (Resolution No. 317-93). Neither the MBCC CRA nor City of Miami Beach responded to staffs inquiries for information in connection with the preparation of this report. However, based on the proposed FY 2008-09 CRA Budget (apart from debt service, administrative Honorable Chairman Dennis C. Moss and Members, Board of County Commissioners Page 8 of 11 expenses and contractual obligations), all of the CRAs listed projects are proposed to be completed in the current fiscal year. Staff is unable to determine whether the CRA is obligated to any new projects that would require TIF revenues. Based on the FY 2008-09 CRA budget, the City has contractual obligations of approximately $17 million, which includes a $10 million bond payment; $3.3 million for community policing; $2.7 for capital project maintenance; and almost $1 million for administrative expenses. At this time, it is estimated that the MBCC CRA may have approximately $6.658 million for FY 2009-10 and $7.466 million for FY 2010-11 in uncommitted County TIF funds. Again, it is important to note that staff is unaware of any CRA TIF commitments other than those listed above that were included in the FY 2008-09 budget. These estimates have not been confirmed by the CRA, and the County will not know what funds in FY 2009-10 will be obligated until the submission of the FY 2009-10 budget. 7. North Miami CRA On June 7, 2005, the BCC approved the establishment of the North Miami CRA when it adopted the CRA's Redevelopment Plan pursuant to Resolution R-610-05. The BCC approved the funding of the Redevelopment Plan when it enacted Ordinance 05-109 (creating the trust fund). An Interlocal Agreement between the County and the North Miami CRA was also approved by the BCC on June 7, 2005, which requires, among other things, the CRA to refund the County's TiF for the redevelopment area west of Biscayne Boulevard. For example, in FY 2008-09, the County paid the CRA $2.9 million and will receive $1.9 million back for a net impact of $1 million. Recently, the CRA has approached County staff proposing an amendment to the Interlocal Agreement to enable the City of North Miami to retain a certain amount of its TIF revenue contribution. County staff is in the process of negotiating such an amendment, and is simultaneously seeking to include in the amendment the option of the County retaining additional County TIF, should the City of North Miami be given the ability to retain portions of Its contribution to the CRA. Any recommendations resulting from negotiations with the City of North Miami will be forwarded to the TIF Committee and to the BCC for consideration. In reviewing the information provided by the CRA, the CRA has approximately $5.678 million in obligations for FY 2009-10, including $3.1 million in interagency agreements with the City of North. Miami (inclusive of $1.3 million for the MOCA expansion, $400,000 for cleaning services and code enforcement, $650,000 for neighborhood beautification improvements, $240,000 for City CRA support, $200,000 for mortgage foreclosure prevention, $113,000 for grants and programs, $90,000 security enhancement) , $750,000 for administration, and $20,000 for a line of credit. For FY 2010- 11 the CRA has approximately $5.860 million in obligations inclusive of the items listed above and the line of credit payment adjusted to $195,000. At this time, it is estimated that the North Miami CRA may have approximately $558,000 for FY 2009-10 and $545,000 for FY 2010-11 in County TIF funds uncommitted. These estimates have not been confirmed by the CRA, and the County will not know what funds in FY 2009-10 will be obligated until the submission of the FY 2009-10 budget. 8. North Miami Beach CRA On June 7, 2005, the BCC approved the establishment of the North Miami Beach CRA when it approved the CRA's Redevelopment Plan pursuant to Resolution R-6 11-05 and the funding of the Redevelopment Plan when it enacted Ordinance 05-110 (creating the CRA's trust fund). An Interlocal Agreement between County and the North Miami Beach CRA was also approved by the BCC on June 7, 2005. In reviewing the information provided by the CRA, the CRA has approximately $1 million in obligations for FY 2009-10 and FY 2010-11 that consist of $630,000 in debt service, $60,000 in maintenance agreements and $367,000 in administration and employees. It is estimated at this time that the North Miami Beach CRA may have approximately $381,000 for FY 2009-10 and $473,000 for FY 2010-11 of County TIF funds uncommitted. These estimates have not been Honorable Chairman Dennis C. Moss and Members, Board of County Commissioners Page 9 of 11 confirmed by the CRA and the County will not know what funds in FY 2009-10 will be obligated until the submission of the FY 2009-10 budget. 9. South Miami CRA On June 16, 1998, the BCC approved the establishment of the South Miami CRA when it approved the CRA's Redevelopment Plan pursuant to Resolution R-99-100 and the funding of the Redevelopment Plan when it enacted Ordinance 98-80 (creating the trust fund). An Interlocal Agreement between Miami -Dade County and the South Miami CRA was also approved by the BCC on September 9, 1999, and later amended through Resolution R-327-04. In reviewing the information provided by the CRA for this report, for FY 2009-10 and FY 2010-11 the CRA has approximately $920,000 in obligations that consist of: $289,000 in debt service; $312,000 for administration and employees; and $232,000 for community policing and code enforcement. It is estimated at this time that the South Miami CRA may have approximately $338,000 for FY 2009-10 and $399,000 for FY 2010-11 in uncommitted County TIF funds. These estimates have not been confirmed by the CRA, and the County will not know what funds in FY 2009-10 will be obligated until the submission of the FY 2009-10 budget. 10. Naranja Lakes CRA (UMSA) On May 6, 2003, the BCC approved the establishment of the Naranja Lakes CRA when it adopted the CRA's Redevelopment Plan pursuant to Resolution R-418-03 and the funding of the Redevelopment Plan when it enacted Ordinance 03-106 (creating the trust fund). An lnterlocal Agreement between the County and the Naranja Lakes CRA was approved by the BCC on July 22, 2003. The Naranja Lakes CRA has a primary redevelopment project (Mandarin Lakes) where the CRA and County entered into an interlocal agreement to fund infrastructure improvements within the project of $17 million. This project is ongoing. The County, on behalf of the CRA, has a $10 million dollar loan for the primary redevelopment project. Additionally, the CRA has contractual obligations for police services, legal services and economic development coordinator. Pursuant to the lnterlocal Agreement, all funding not used for debt service, administration, contractual obligations or grant programs is transferred to the capital budget for use on the primary redevelopment project. Consequently, there are no uncommitted funds in this CRA's trust fund to be retained by or returned to the County for FY 2009-10 and FY 2010-11. 11. NW 7th Avenue CRA (UMSA) On March 16, 2004, the Board adopted Resolution R-293-04 to establish the boundaries of the NW 7ih Ave CRA, Subsequently, on June 22, 2004 the Board, through Resolution R-780-04 and Ordinance 04-124, approved the CRA's Redevelopment Plan and trust fund. The BCC has adopted two separate resolutions naming members of the public to the CRA board, which has been meeting since April 2009. The CRA has recently passed an lnterlocal Agreement which will be considered by the BCC. There is currently just under $1.69 million in the trust fund. Because the CRA has recently started meeting, there is no budget or project for the next fiscal year. Additionally, the only CRA expenses for the next fiscal year are to reimburse the County for the costs of the FON, Redevelopment Plan, and County staff time. It is estimated that approximately $311,000 in TIF funds ($200,000 from countywide and 91,000 from UMSA) may be uncommitted in FY 2009-10. Likewise, approximately, $410,000 in TIF Funds ($288,000 from countywide and $122,000 from UMSA) may be uncommitted in FY 2010-11. 12. West Perrine CRA (UMSA) On June 5, 2007, the BCC approved the establishment of the West Perrine CRA when It adopted the CRA's Redevelopment Plan, pursuant to Resolution R-744-07, and the funding of the Honorable Chairman Dennis C. Moss and Members, Board of County Commissioners Page 10 of 11 Redevelopment Plan when it enacted Ordinance 07-79 (creating the trust fund). Currently, the BCC members serve as the CRA's board. The CRA currently has contractual obligations for right-of-way enhancement and security services for the area. Additionally, staff is in the process of negotiating a partnership with a developer to provide funding for a Transit Oriented Development along the South Dade Busway alignment. For FY 2009-10 and FY 2010-11, the CRA's obligations are security services, right-of-way enhancements, and administrative costs, which total approximately $500,000. At this time, it is estimated that approximately $264,000 in TIF funds ($186,000 from countywide and $77,000 from UMSA) may be uncommitted in FY 2009-10, whereas $453,000 in TIF funds ($318,000 from countywide and $134,000 from UMSA) may be uncommitted in FY 2010-11. COURSES OF ACTION The options outlined below are actions that the BCC can consider: 1) The TIF funds which are estimated that may be returned to the County, if efforts were successful to negotiate an agreement to do so, should not be returned to the taxing authorities as each CRA plays a vital role in addressing their respective economic redevelopment needs. There is a school of thought that believes the collective revenue impact to the CRAs far exceeds the benefit that the County may gain from retaining or requesting that municipalities return any Net Surplus Revenues. It is important to remember that the revenues committed to the CRA represent a small percentage of the countywide general fund, and are being invested in existing programs and infrastructure needs that are specifically targeting slum and blight in our communities. The CRAs are making extraordinary strides in addressing local needs that have an overall impact on the quality of life of the County as a whole. 2) Once the respective CRAs provide their budgets for FY 2009-10, the County could initiate negotiations with the CRAs and municipalities to have an agreed upon amount of Net Surplus TIF be returned to each taxing authority at the end of the fiscal year. This option would not require any amendments to interlocal agreements. If this option is exercised, staff will begin to work with the CRAs to ensure that not all TIF is obligated and to negotiate the amount to be returned at the end of the FY 2009-10. Even if the municipalities and CRAs were to agree to leave some funding uncommitted for budget purposes, without an interlocal agreement it would be difficult for the County to ensure that the uncommitted revenue remains uncommitted and is returned. Additionally, if this option is exercised the CRA plan may need to be amended if one or more of the projects listed cannot be completed due to funding shortfalls as a result of this action. 3) The County could proactively seek to have a certain agreed upon amount of Net Surplus TIF funds retumed to the taxing authorities by seeking to amend the existing interlocal agreements among the County, CRAs, and municipalities. Should this option be exercised, it is important to note that the amended interlocal agreements would require the approval of all parties (County, CRAs and municipalities). An example of where the County has exercised this option is with the North Miami CRA. The parties to the interlocal agreement negotiated an amendment to provide for a refund to the County of all CRA TIF revenue derived from the CRA area west of Biscayne Blvd. Staff would begin to negotiate with each CRA and the respective municipality where appropriate and bring all negotiated interlocal agreements to the BCC for consideration. It is important to note that the CRA and municipality must agree to change the interiocal agreement. There will be CRAs and municipalities that do not want to amend their agreements to allow revenues to be returned to the County. Additionally, if this option is exercised the CRA plan may need to be amended if one or more of the projects listed cannot be completed due to funding shortfalls as a result of this action. Honorable Chairman Dennis C. Moss and Members, Board of County Commissioners Page 11of11 4) From a long term perspective, as CRAs from time to time request to have their interlocal agreements changed, County staff could negotiate language to allow a recapture of County TIF in whole or part. For example, with the renegotiation of the Florida City CRA interlocal agreement, staff successfully negotiated that a portion of County TIF from the expanded CRA area be returned to the County. For example, the December 31, 2007 agreement between the County, City of Miami and Omni CRA requires the CRA to refund 35 percent of all TIF revenue to the County. The December 31, 2007 agreement between the County, City of Miami and Southeast Overtown/Park West CRA requires that beginning 2017, the CRA will refund to the County TIF revenues from certain projects. The recently negotiated agreement between the County, City of Florida City and the Florida City CRA requires the CRA to refund to the County 20 percent of the County's TIF payment for the expanded area. This course of action may not provide immediate benefit to the County since the. County will have to wait until a CRA requests a change to its interlocal agreement to make such amendments. As previously mentioned, CRAs play a vital role in the elimination of slum and blighted conditions within a community. As a result of the current local economic conditions, some municipal CRAs may also be looking for ways to temporarily shift the focus of the CRA and provide some relief to tax payers in general. The BCC may consider 1) recapturing CRA funding as part of the CRA budget process 2) recapturing CRA funding by amending interlocal agreements, or 3) prospectively negotiating the return of some CRA funding by negotiating interlocal agreements when the CRA is requesting a change. All of these options would require agreement from the CRA and the respective municipality. Not one course of action is necessarily the best course for every CRA; each CRA is unique. If the BCC considers that a certain course of action should be pursued, staff will take the appropriate steps to work with each CRA to ensure the appropriate course of action will not negatively affect the legal obligations of the CRA. If you have any questions regarding the information, please contact Cynthia W. Curry, Jennifer Glazer - Moon or me directly. c: Honorable Carlos Alvarez, Mayor Denis Morales, Chief of Staff R. A. Cuevas, Jr., County Attorney Cynthia W. Curry, Senior Advisor to the County Manager Jennifer Glazer -Moon, Special Assistant/Director, Office of Strategic Business Management Jorge M. Fernandez, Jr., CRA Coordinator Charles Anderson, Commission Auditor Exhibits A Resolution R-994-09 B CRA Detail C — MDC CAFR cmo21109