HomeMy WebLinkAboutCRA-R-10-0077 09-27-2010 Submittal-MemoCITY OF MIAMI
OFFICE OF THE CITY ATTORNEY
MEMORANDUM
Submitted into the public
record in connection with
item fr 3 on
Priscilla A. Thompson
City Clerk
TO: Pieter Bockweg. Executive Director. Miami CRAs
FROM: Julie O. Bru, City Attorney,N(';
DATE: September 23. 2010
RE: Omni CRA reimbursement of City expenditures for Park Component
of Museum Park
Matter ID No.: 10-2719
You ask whether the Omni Community Redevelopment Agency ("Omni
CRA") may reimburse the City of Miami ("City") for expenditures related
to capital improvements for the park component of the Museum Park
Project ("Project") incurred prior to the expansion of the boundaries of the
Omni CRA?
Creation of Omni CRA under the Community Redevelopment Act of 1969 (the "Act")
The Community Redevelopment Act of 1969 (the "Act") (Chapter 163, Part 111, Florida
Statutes) enables cities and municipalities to create a Community Redevelopment Agency
when certain blight conditions exist, including substandard or inadequate buildings or
infrastructure, defective or inadequate street layout and parking facilities, unsanitary or unsafe
conditions. tax or special assessment delinquency, and diversity of property ownership. In the
1980's the City Commission adopted Resolution No. 86-868, and the Board of County
Commissioners of Miami -Dade County (the "County"), adopted Resolution No. 87-47, thereby
approving the Omni Area Redevelopment Plan. (the -Plan")1. The City Commission also
created the Omni CRA, The Omni CRA is responsible for carrying out community
redevelopment activities and projects within the Omni Redevelopment Area in accordance
with the Plan. as amended.
The Omni Area Redevelopment Plan authorizes the expenditure of redevelopment trust
funds for design and construction activities related to the Project
The enhancement and improvement of Bicentennial Park was identified as an important
redevelopment activity in the Plan when originally adopted in 1986. Subsequently, the City, the
Omni CRA, the Southeast Overtown Park West Community Redevelopment Agency ("SEOPW
CRA")2 and the County entered into an Interlocal Agreement dated December 31, 2007 ("Global
Agreement") which provided for the parties' obligations with respect to the development and
funding of certain projects of great benefit to the CRAs and the community in general, including
As used in this opinion, the Plan means that certain Omni Redevelopment Plan dated September 1986, as further
amended and supplemented by the Amended and Restated Addendum 11 to the Omni Area Redevelopment Plan
approved pursuant to Resolution 96-234, which approval was reaffirmed pursuant to Resolution 97-176, and as
further amended and supplemented by the Omni Area Redevelopment Plan approved in 2009.
2 The OMNI CRA and the SEOPW CRA are sometimes collectively referred to as the "CRAs". Additionally,
"CRA" shall also refer to a conrununity redevelopment agency or agencies as the context may indicate.
Pieter Bockweg. Executive Director, Miami CRAs
September 23. 2010
Page 2 of :3
the Project. The Project includes the Miami Art Museum.
park component to be located at Bicentennial Park.
Submitted into the public
record in connection with
item 41' 3 on q-27-10
Priscilla A. Thompson
City Clerk
the Museum of Science and a public
Under the terms of the Global Agreement the parties verc to cooperate in carrying out
certain activities to facilitate the development and funding of the Project. including amending the
Plan to add the Project as a project eligible for tax increment financing and expanding the
boundaries of the Omni CRA to include Bicentennial Park. On or about November 2009. the
City. the County and the CRAs completed the requisite legislative process to effectuate such
amendment and expansion.' Accordingly, at this time the Project is included in the Plan and
Bicentennial Park is included within the Omni redevelopment area.
CRAs are granted broad powers pursuant to Section 163.370(2), Florida Statutes, which
states that "[el very county and municipality shall have all the powers necessary or convenient to
carry out and effectuate the purposes and provisions of this part, including the following powers
in addition to others herein granted...". Amongst those powers is the ability "[t]o undertake and
carry out community redevelopment and related activities within the community redevelopment
area..." which activities include:
Installation, construction, or reconstruction of streets. utilities, parks,
playgrounds, public areas of major hotels that are constructed in support of
convention centers, including meeting rooms, banquet facilities, parking
garages. lobbies, and passageways, and other improvements necessary for
carrying out in the community redevelopment area the community
redevelopment objectives of this part in accordance with the community
redevelopment plan.
§163.370(2)(c)(3) (emphasis added).
The use of community redevelopment trust funds is governed by Section 163.387.
Florida Statutes. Pursuant to §163.387, a CRA is required to use CRA funds to finance any
community redevelopment it undertakes pursuant to the approved community redevelopment
plan. The Project is a redevelopment included within the Plan, thus a lawful use of
redevelopment trust funds under the Act.
The limitations on the use of redevelopment trust funds expressed in the Act does not
prohibit the use of redevelopment trust funds fur the Project
The broad powers granted to counties and municipalities under the Act, is subject to the
limitation provided for under Section 163.370(3)(b), Florida Statutes, which prohibits the
construction of publicly owned capital improvement projects if such projects were scheduled to
be constructed within 3 years of the approval of a community redevelopment plan by the
governing body, pursuant to a previously approved capital improvement schedule or plan of the
governing body. The City first listed the Project on its 2007-2008 proposed capital budget and
Attached as Exhibit "A" hereto is a document describing the Project. This document was attached and
incorporated as Exhibit "C" to City Resolution R-09-0461 adopted September 29, 2009 and describes in detail the
Project and provides a detailed staternent of projected costs.
Doc, No.: 245761
Pieter Bockweg, Executive Director, Miami CRAs
September 23. 2010
Page 3 of 3
Submitted into the public
record in connection with
item #3 on
Priscilla A. Thompson
City Clerk
multi -year capital plan. IIowever. the Project has never been a project of the City. i.e.. the Omni
CR_A's governing body. Instead, the Project. like every other Omni CRA project. was included
in the Ciry's 2006-2007 proposed capital budget and multi -year capital plan because the Omni
CRA does not have the ability to manage and implement its own projects. The intent of
§163.370(3)(b) is to prevent a governing body from identifying a particular project, deciding to
fund the project from funds available to it. and later deciding to shift the expense to a CRA
because the project qualifies as a redevelopment activity. The County's. the City's and the
CRAsintention in this regard is clearly expressed in the Plan. the Global Agreement and the
public meetings of the parties.
Additionally, and most significantly, the legislative scheme governing CRAs
contemplates the idea of reimbursing a governing body for expenses incurred on behalf of a
CRA. For example. §163.387(6)(b) states:
Monies in the redevelopment trust fund may be expended from time to time for
undertakings of a community redevelopment agency as described in the
community redevelopment plan for the following purposes. including but not
limited to:
(b) Expenses of redevelopment planning, surveys, and financial analysis,
including the reimbursement of the governing body or the community
redevelopment agency for such expenses incurred before the redevelopment
plan was approved and adopted.
§163.370(2)(c)(3) (emphasis added).
Conclusion
Accordingly, based on the broad and general powers granted by the Act, the specific
authorities cited above, and the specific description of the Project and detailed statement of
Project costs included in the Plan, as amended, the Omni CRA may expend redevelopment trust
fund moneys to reimburse the City for expenses incurred related to capital improvements for the
park component of the Project.
cc: Ilonorable Mayor and Members of City Commission
Carlos A. Migoya, City Manager
Doc. No.: 245761
EXHIBIT C
(MUSEUM PARK PROJECT)
Submitted into the public
record in connection with
item 4-3 on 9- 27-/0
Priscilla A. Thompson
City Clerk
This Exhibit is approved simultaneously with and is incorporated into, and made
a part of, the 2009 Amended Plan. Section 6 of the Plan, entitled "Capital
Improvement Costs and Prioritied' is amended to include the Port Tunnel Project.
The following information is provided, as required by Section 163.362, Florida
Statutes:
1, Description of Project:
The Museum Park Project consists of a Museum Component, which will
house, and be developed, by the Miami Art Museum (MAM) and the
Museum of Science (MSM) on approximately 8 acres in Bicentennial Park
(a/k/a Museum Park) and a Park Component, to be developed by the City
of Miami on the rest of the site, consisting of approximately 21 acres. The
Museum Park Project must be developed in accordance with the Cooper
Robertson Museum Master Plan. The City has leased to each MAM and
MSM 4 acres for the development of the Museum Component and has
executed all documents necessary to implement the Project, including the
leases, development agreement and environmental remediation
agreement.
Pursuant to the Leases and the Development Agreement, the Museum
Component must be completed by 2016. The Park Component must be
'completed by the opening date of the first of the museums to be open to
the public. The scope of the Park Component is contingent upon funding
from CRA tax increment revenues.
2. Detailed Statement of Projected Costs:
The projected cost of the Project is $550 million, as follows:
(a) MAM: $202 million, $120 to be funded by MAM and
$100 by County GOB.
(b) MSM $275 million, $100 to be funded by MSM and
$175 by County GOB.
(c) Park Component: $73 million, including design, environmental
remediation and construction, and $2 million annually for a
capital improvements fund, to be funded by CRA tax increment
revenues.
ors:Document 193734.doc
o9- o/c:25 6d 3
Submitted into the public
record in connection with
item on Z-7-00
Priscilla A. Thompson
City Clerk
Attachment 1 demonstrates the detailed financing plan for this project and
the Port Tunnel project.
A MORE DETAILED DESCRIPTION OF THE PROJECT IS
FOUND IN THE MUSEUM PARK DOCUMENTS AND MUSEUM
PARK RESOLUTIONS.
ors:Document 193734.doc