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HomeMy WebLinkAboutCRA-R-07-0061 Cover Memo• SEOPW and Omni Boards of Commissioners Meeting December 27, 2007 Item # 2 SOUTHEAST OVERTOWN/PARK WEST AND OMNI COMMUNITY REDEVELOPMENT AGENCIES INTER -OFFICE MEMORANDUM To: Board Chair Michelle Spence -Jones Date: December 20, 2007 File: 07-01558 and Members of the CRA Boards Subject: Interlocal Agreement Between the CRAs, City of Miami and Miami -Dade County for Implementation and Funding of Various Projects From: James H. Villacort Li References: Executive Directo/ Enclosures: Legislation BACKGROUND: The attached Joint Resolution authorizes execution of an Interlocal Agreement (the "Global Agreement") between the Southeast Overtown/Park West Community Redevelopment Agency, the Omni Redevelopment District Community Redevelopment Agency ("CRAs"), the City of Miami ("City"), and Miami -Dade County ("County") relative to the implementation and funding of projects deemed to be of great benefit to all parties. The Miami City Commission, by Resolution No. R-07-0716, passed and adopted on December 13, 2007, authorized the City Manager to execute this Interlocal Agreement. The Board of County Commissioners, by Resolution No. R-1372-07, passed and adopted on December 18, 2007, authorized the County Mayor to execute this Interlocal Agreement. By entering into this Interlocal Agreement, the CRAs are agreeing to: (i) Increase the Omni CRA's financial support for the Carnival Center for the Performing Arts ("PAC") in order to free Tourist Development Taxes and Convention Development Taxes currently supporting the PAC to be used to fund a Soccer Stadium and Baseball Stadium at the Orange Bowl site. CRA funding for the PAC will eventually be capped at the lesser of 35% of the Omni's annual tax increment fund (TIF") revenues or $25 million per year; (ii) Extend the term of the Omni CRA through 2030, and expand its boundaries to include Watson Island and Bicentennial Park; (iii) Provide funding from the OMNI CRA for the Port Tunnel and Museum Park projects; (iv) Extend the term of the SEOPW CRA through 2030, and expand its boundaries in accordance with the 2004 Amended Redevelopment Plan; (v) Beginning in fiscal year 2014, cap the utilization of SEOPW CRA TIF revenues derived from the projects listed in Exhibit "C" to the Interlocal Agreement, to 50% of the 2007 forecasted revenues for such projects. A portion of the funds returned to the County would be transferred to the City to fund the Streetcar Project; (vi) The County considering extending the reverter date, or reconveying Blocks 36, 45, 56 to the City of Miami; (vii) The County waiving any claims the County may have to approve the CRAs' budgets for fiscal years prior to FY 2008; (viii) The County waiving the 1.5% administrative fee it has attempted to charge the CRAB. NOTE: 1.) At the December 18, 2007 Board of County Commissioners meeting, the District 3 County Commissioner requested that the reverter provisions applicable to Blocks 36, 45, 56 (the Sawyer's Walk/Crosswinds blocks) be strictly enforced. 2.) The version of the Interlocal Agreement approved by the Miami City Commission at its December 13, 2007 meeting included a provision for funding the Section 108 Loan obtained by the Parrot Jungle. The County Attorney's Office has determined this to be an impermissible use of CRA funds, and this provision is not contained in the Interlocal Agreement before the Boards of Commissioners. JUSTIFICATION: 1.) In 1994, the CRA amended the redevelopment plan to incorporate the Performing Arts Center as a "catalytic development project." Addendum 11, Section IV.C., paragraph 1 of the Omni Area Redevelopment Plan provides that "construction of the Performing Arts Center in the Omni Redevelopment Area is designed to serve as the major public redevelopment activity." The CRA and the County agreed that $1.43 million per year in Omni TIF revenues would be made available for the project. The County now seeks an increase in the Omni CRA's financial support for the Performing Arts Center that will ultimately be capped at the lesser of 35% of the Omni's annual TIF revenues or $25 million per year. Such an increase is consistent with the redevelopment plan's designation of the Performing Arts Center as a catalytic project. 2.) Additionally, the Interlocal Agreement seeks to extend the life and expand the boundaries of the Omni CRA to provide financial support for the Port Tunnel, and Museum Park projects. Support for the Port Tunnel project is in accord with the redevelopment objective of "resolving existing and future transportation conflicts" as provided in Section II1.E., paragraph 1, at page 10 of the Omni Redevelopment Plan. Support for the Museum Park project furthers the goal of linking Bicentennial Park by "locating a series of special public attractions along the length of the bayfront park system," as provided in Section IV.C., paragraph 2, at page 15 of Addendum II to the Omni Redevelopment Plan. 3.) Extending the life and expanding the boundaries of the Southeast Overtown/Park West Community Redevelopment Agency allows the Agency to extend the benefits of tax increment financing to adjacent areas suffering from conditions of slum and blight. Capping of the CRA's tax increment revenues at 50% of the specified projects is a requirement negotiated by the City of Miami and Miami -Dade County. 4.) Blocks 36, 45, 56 are subject to a settlement agreement, which provides for title to revert to the County, subject to certain conditions, if construction has not commenced by December 31, 2007. The CRA has submitted the proposed Sawyer's Walk/Crosswinds and Gatehouse's Lyric Place development plans to the County for approval. In spite of this, the County has stated that it intends to exercise the reverter provision. The Interlocal Agreement provides that the County will consider extending the deadline or reconveying the properties to the City at its first meeting in January 2008. 5.) The County asserts a right to approve the budgets of the Omni and SEOPW CRAs, but has failed to do so. The Interlocal Agreement provides that the County waives any right to approve the budgets for years prior to FY 2008. This resolves a potential issue between the CRAs and the County as to previous years' budgets. 6.) The County has sought to impose a 1.5% administrative fee on the Omni and SEOPW CRAs. It has been the CRAs' position that there is no basis for this fee in Florida Statutes, or the various interlocal agreements. The Interlocal Agreement makes clear that the County is waiving this claim and resolves this issue. JHVfeh •