HomeMy WebLinkAboutCRA-R-10-0080 Cover Memo 9-27-2010•
•
•
SEOPW Board of Commissioners Special Meeting
September 27, 2010
SOUTHEAST OVERTOWN/PARK WEST
COMMUNITY REDEVELOPMENT AGENCY
INTER -OFFICE MEMORANDUM
To: Board Chair Richard P. Dunn 11
and Members of the CRA Board
From: Pieter A. Bockweg
Executive Director
Date: September 27, 2010 File: 10-01163
Subject: Resolution Approving a Settlement
Agreement with the City of Miami.
References:
Enclosures: Supporting Documentation; Legislation
BACKGROUND:
It is recommended that the Board of Commissioners of the Southeast Overtown/Park West Community
Redevelopment Agency ("CRA") approve and adopt the attached Resolution approving a settlement agreement
with the City of Miami pertaining to certain demands for the repayment of past subsidies given to the CRA.
The City of Miami ("City') has demanded that the CRA repay certain subsidies given to the CRA, specifically:
(1) Six million dollars ($6,000,000) in debt service payments made on the Community
Redevelopment Series 1990 Bonds; and
(2) Approximately $5.2 million in administrative operating subsidies given to the CRA
during fiscal years 2000 and 2010.
Series 1990 Bond Debt Service. The debt service paid on the Series 1990 Bonds is the City's obligation. In
2001, the City (Resolution No. 01-588) agreed to make all debt service payments on these bonds in exchange
for the CRA foregoing all claims against the City relating to: (1) certain payments of parking revenues collected
by the Department of Off -Street Parking on CRA-owned land; (2) land deeded to the City by the CRA for use by
the Miami Sports and Exhibition Authority; and (3) any other matters existing between the City and the CRA
prior to January 1, 2001.
Administrative Operating Subsidies. During the period beginning Fiscal Year 2000 and ending Fiscal Year
2005, the City of Miami contributed $5,271,317 toward the CRA's administration and operating costs.
Settlement Offer. The CRA, through the attached Resolution will offer $4,409,000. In exchange for this one-
time payment, the City will (1) waive any and all claims against the CRA for reimbursement of funds advanced
by the City to the CRA to pay operating expenses and any other expenses of the CRA prior to Fiscal Year 2011;
(2) acknowledge that the City is obligated to pay debt service of the Series 1990 Bonds until the retirement of
said bonds; and (3) release any other claims, known or unknown, that the City may have against the CRA.
FUNDING: $4,409,000 from SEOPW Tax Increment Fund, "General Operating," Account Code No.
10050.920101.891000.0000.00000.