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HomeMy WebLinkAboutCRA-R-14-0078 Cover MemoSEOPW Board of Commissioners Meeting December 29, 2014 SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE MEMORANDUM To: Board Chair Keon Hardemon and Members of the CRA Board Date: December 19, 2014 File: 14-01286 From: Clarence E. Woods, III el°References: Executive Director Subject: Miami WorldCenter Economic Incentive Agreement. Enclosures: Supporting Documentation; Legislation BACKGROUND: The attached Resolution of the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency ("CRA") authorizes the execution of an economic incentive agreement in substantially the form attached to the Resolution with Miami First, LLC, Miami Second, LLC, Miami Third, LLC, Miami Fourth, LLC, Miami NI, LLC, (collectively, the "Master Developer") and Forbes Miami N.E. 1st Avenue, LLC (the "Retail Developer") in connection with the development of Miami WorldCenter mixed -use project. The Miami WorldCenter project is a phased mixed -use development which is anticipated will include when completed a retail center containing approximately 765,000 net square feet of retail space with approximately 2,500 parking spaces, 300 hotel rooms, more than 2,000 apartment and condominium units and 50,000 square feet of retail space in the first phase. Master Developer and the CRA have negotiated an economic incentive agreement which provides for the payment to the Master Developer of 57% of the tax increment revenues (excluding the land value) generated from the project actually received by the CRA from the City of Miami and Miami -Dade County which amount shall be increased during the time period from the completion of the first building through the calendar year 2022 to the lesser of 75% of the tax increment revenues generated from the project (excluding land values) or $6,889,074.00 with Master Developer being required to utilize the funds for public infrastructure improvements such as parking and other permitted uses allowed pursuant to Chapter 163, Phase III, Florida Statutes. As an inducement to the CRA's grant of financial assistance, Master Developer agrees to develop reliable resources for community outreach to provide new job opportunities during both construction and operations phases of the project and Master Developer and Retail Developer have committed to the following: a. A goal of 30% participation by unskilled laborers of the County, giving priority to residents of the Redevelopment Area, Overtown and the highest poverty rated zip codes of the City and the County (the "Job Priorities"); b. A goal of 10% participation by skilled laborers utilizing the Job Priorities; c. A goal of 20% participation by subcontractors based upon their principal place of business utilizing the Job Priorities; d. First Source hiring opportunities for permanent job placement; e. Living wage rates for construction workers; and f. Responsible wage rates for electrical journeyman. JUSTIFICATION: The Miami WorldCenter Mix -Use project should be a lynch pin for the redevelopment in the Park West area of the Redevelopment Area. Providing the Master Developer with a portion of the tax increment revenues generated by the Project, to be utilized for public infrastructure improvements and other uses permitted under Chapter 163 Part 3, Florida Statutes, will assist the Master Developer in the implementation of this project which will create needed job opportunity and promote an environment which will foster other development in the Park West Area. #34306419_v1