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HomeMy WebLinkAboutCRA-R-10-0080 Legislation 9-27-2010City of Miami Legislation CRA Resolution City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 10-01163 Final Action Date: A RESOLUTION OF THE SOUTHEAST OVERTOWNIPARK WEST COMMUNITY REDEVELOPMENT AGENCY ("CRA") APPROVING A SETTLEMENT AGREEMENT WITH THE CITY OF MIAMI ("CITY') PERTAINING TO THE DEMAND BY THE CITY TO BE REIMBURSED BY THE CRA FOR (i) FUNDS PAID BY THE CITYTO THE CRA TO PAY OPERATING EXPENSES OF THE CRA BETWEEN FROM FISCAL YEAR 2000 THROUGH FISCAL YEAR 2010 IN THE CLAIMED AMOUNT OF $5,271,317.00 WHICH FUNDS WERE ADVANCED TO THE CRAAS A RESULT OF THERE BEING INSUFFICIENT TAX INCREMENT FUNDS AVAILABLE TO THE CRATO OPERATE AND (ii) PAYMENTS MADE BY THE CITY IN THE AMOUNT OF $6,000,000.00 FROM THE CITY'S GUARANTEED ENTITLEMENT REVENUE FROM THE STATE OF FLORIDATO WHICH WERE APPLIED BYTHE CITY TO MAKE PAYMENTS IN CONNECTION WITH THE COMMUNITY REDEVELOPMENT REVENUE BONDS, SERIES 1990, ISSUED BY THE CITY ON BEHALF OF THE CRA (".BONDS"). IN CONSIDERATION OF THE CITY (1) WAIVING ANY AND ALL CLAIMS AGAINST THE CRA FOR REIMBURSEMENT OF FUNDS ADVANCED BY THE CITYTO THE CRATO PAY OPERATING EXPENSES AND ANY OTHER EXPENSES OF THE CRA PRIOR TO FISCAL YEAR 2011, (ii) ACKNOWLEDGING THAT PURSUANT TO CITY RESOLUTION 01-588 AND SEOPW/CRA RESOLUTION 01-68THE CITY IS OBLIGATED TO PAY $300,000 PER YEAR IN GUARANTEED ENTITLEMENT REVENUES FROM THE STATE OF FLORIDATO PAY DEBT SERVICE IN CONNECTION WITH THE BONDS UNTILTHE BOND ISSUE IS PAID OFF WITHOUT REIMBURSEMENT FROM THE CRA, AND(iii) THE CITY RELEASING ANY OTHER CLAIMS, KNOWN OR UNKNOWN, THAT THE CITY MAY HAVE AGAINST THE CRA, THE CRA WILL MAKE A ONE TIME PAYMENT TO THE CITY IN THE AMOUNT OF $4,409,000.00. WHEREAS, the CRA is responsible for carrying out community redevelopment activities and projects in the Southeast Overtown/Park West Redevelopment Area (the "Redevelopment Area") established pursuant to the Redevelopment Plan; and WHEREAS, between fiscal year 2000 through fiscal year 2010, the City provided economic support to the CRA to enable the CRA to operate since tax increment funds generated within the Redevelopment Area where not sufficient to enable the CRA to carry out the Redevelopment Plan; and WHEREAS, the City paid $6,000,000 in debt service on the BONDS out of the guaranteed entitlement revenues from the State of Florida in support of the CRA; and WHEREAS, the City has requested the CRA reimburse the City for all economic support provided to the CRA from the City though fiscal year 2010; and WHEREAS, the CRA acknowledges that the City has provided the CRA with valuable economic support since fiscal year 2000 and by paying $300,000 per year in debt service in connection with the City of Miami Page 1 of 2 File Id: 10-01163 (Version: 1) Printed On: 9/2712010 File Number. 10-01163 Bonds from the guaranteed entitlement revenues from the State of Florida; and WHEREAS, the City and the CRA have previously settled issues regarding the reimbursement of the City by the CRA of funds advanced by the City from the guaranteed entitlement revenues from the State of Florida pursuant to City of Miami Resolution 01-588 and SEOPW Resolution 01-68; and WHEREAS, the CRA and the City desire to settle the City's demand for reimbursement and in consideration of the City (i) waiving 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, (ii) acknowledging that pursuant to City of Miami Resolution 01-588 and SEOPW/CRA Resolution 01-68 the City is obligated to pay $300,000 per year in guaranteed entitlement revenues from the State of Florida to pay debt service in connection with the Bonds until the Bonds are paid off without reimbursement from CRA, and (iii) the City releasing any other claims, known or unknown, that the City may have against the CRA, the CRA will make a one-time payment to the City in the amount of $4,409,000.00 (the "Settlement"); and WHEREAS, the City by Resolution No. 10 has approved the terms of the Settlement; and WHEREAS, general counsel to the CRA has opined that the use of tax increment funds to reimburse the City $4,409,000.00 for funds advanced to the CRA for operations is a permissible expenditure of tax increment funds. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated herein as if fully set forth in this Section. Section 2. The Board of Commissioners of the CRA hereby approves the terms and provisions of the Settlement which was approved by the City by City of Miami Resolution 10- and authorize the payment to the City of $4,409,000.00, to be paid from SEOPW Tax Increment Fund, "General Operating" Account.Code No. 10050.920101.891000.0000.00000. Section 3. This resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND CORRECTNESS: WILLIAM R. BLOOM SPECIAL COUNSEL City of Miami Page 2 of 2 File Id: 10-01163 (Version: 1) Printed On: 9/27/2010