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HomeMy WebLinkAboutCRA-R-11-0020 03-28-2011 Cover MemoOmni Board of Commissioners Meeting March 28, 2011 OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE MEMORANDUM To: Board Chair Marc D. Sarnoff and Members of the CRA Board From: Pieter A. Bockweg Executive Director Date: March 18, 2011 File: 11-00276 Subject: Mikado Economic Incentive Agreement References: Enclosures: Legislation BACKGROUND: It is recommended that the Board of Commissioners of the Omni Redevelopment District Community Redevelopment Agency ("CRA") approve and adopt the attached Resolution authorizing the execution of an economic incentive agreement with Hotel de L'Opera, LLC ("Developer"), for the development of the Mikado mixed -use project. The Mikado project is a planned mixed -use development which will include a 250-room hotel, retail and commercial space, meeting and banquet facilities, and residential units. The hotel and commercial portion of the project is anticipated to cost approximately $61.5 million, with an additional $20 million for the development of residential units. The Developer now seeks assistance, from the CRA, in the form of a reimbursement of the actual tax increment generated by the Mikado project, with a maximum payout of $600,000/year throughout the term of the Agreement (set to expire at the sunset of the Omni CRA). The CRA's economic incentive will apply only to the hotel and commercial portion of the project. No incentive will be provided for the development of the residential units. The Developer agrees to develop reliable resources for community outreach to provide new job opportunities during both construction and operations phases of the project, and anticipates the generation of 268 new full- time jobs. The CRA will require that residents of the Omni and Southeast Overtown/Park West CRAs and the City of Miami receive priority in hiring. The target local workforce participation is set at thirty (30%) percent. JUSTIFICATION: Section 4.4, B., at page 41, of the 2009 Omni Redevelopment Plan, lists the "[creation of] economic magnets to draw more businesses to the Omni area to compliment established activities in the surrounding area," as a stated redevelopment objective. Section 4.4, B., at page 41, of the 2009 Omni Redevelopment Plan, lists "[providing] employment opportunities and upward job mobility for residents," as a stated redevelopment objective.