HomeMy WebLinkAboutCRA-R-06-0011 Cover memoSEOPW & Omni Board of Directors Meeting
February 23, 2006
Item # 7
SOUTHEAST OVERTOWN/PARK WEST
AND OMNI
COMMUNITY REDEVELOPMENT AGENCIES
INTER -OFFICE MEMORANDUM
Chairman Johnny L. Winton
and Members of the CRA Board
Date: February 17, 2006 File: 06-00229
Subject: Authorization to Amend SEOPW & Omni
CRAs' Inter -Local Agreements/and Amend
County Reverter Settlement Agreement
=r`,,i: Frank K. Rollason References.
Executive Director
Enclosures: Supporting Documentation;
Legislation
RECOMMENDATON:
It is recommended that the Board of Directors for both the Southeast OvertownlPark West and Omni Redevelopment
District Community Redevelopment Agencies (SEOPW CRA) approve and adopt the attached Joint Resolution
authorizing the Executive Director to execute amendments to both Inter -Local Agreements for these two CRAs
between Miami -Dade County and the CRAs for those items, only, as delineated in the attached Joint Resolution as
well as execute the Settlement Agreement in the County Reverter litigation for the three blocks in the Southeast
Overtown CRA Area (Blocks 36, 45, & 56).
JUSTIFICATION:
Several months ago, the County Administration approached the City Administration to pursue an amendment to the
Omni CRA Inter -Local Agreement whereby an increase in the annual Tax Increment (TIF) returned to the County by
the Omni CRA (currently $1.43 million annually) could be accomplished to assist in covering construction cost
overruns and operations for the County's Performing Arts Center. The County and the City negotiated the particulars
up to where a draft document was created by the County and sent to the City Manager on October 17, 2005 (copy
attached). On January 18, 2006, a meeting was held with the County Manager, the City Manager, and the CRA
Chairman to which the Executive Director was requested to attend. At that meeting the outstanding issues were
discussed along with additional issues raised by the Executive Director. On February 13, 2006, an additional meeting
took place between the Executive Director and the City's CFO, with CRA Asst. General Counsel present, wherein the
items were finalized to be included in the attached Joint Resolution. The crux of the changes to the Omni CRA Inter-
Local Agreement includes language which will increase the payment to the County on an annual basis for the first five
(5) years, beginning in 2007, to include the original $1.43 million plus 30% of the total remaining TIF from both the City
and the County (this would have amounted to an additional payment of $2.29 million for a total payment of $3.72
million for FY '06 if this amendment had been in place). Beginning the 6th year of the amended Inter -
Local Agreement (FY'12) the $1.43 million annual payment will be eliminated and the annual payment will be strictly
30% of the total Omni TIF from both the City and the County. In addition to the financial matters, the amendments will
provide for the extension of time for both the SEOPW and Omni CRAs to the year 2027 and the approval of the
expanded boundaries for both the SEOPW and Omni CRA Areas as provided in the Redevelopment Plan
Amendments for both CRAs. The attached Joint Resolution will authorize the Executive Director to execute the
amended Inter -Local Agreements and the Settlement Agreement on the County "reverter blocks" (Blocks 36, 45, & 56
— two of the Crosswinds blocks and the Lyric Promenade Project block) which will extend the reverter deadline to
August of 2017.
FINANCIAL IMPACT:
Through available financial projections provided by the CRA Financial Advisor, Stitel, Nicolaus & Company, Inc., an
additional amount of $70,201,861.00 will be paid to the County above the current agreement through the year 2015, if
the proposed amendment to the Omni CRA Inter -Local Agreement is approved.
FKR/eh