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HomeMy WebLinkAboutMemorandums - CountyMEMORANDUM Agenda Item No. 14(A) (3) TO: Honorable Chairman Joe A. Martinez DATE: July 3, 2012 and Members, Board of County Commissioners FROM: R. A. Cuevas, Jr. County Attorney SUBJECT: Resolution approving First Amendment to Interlocal Agreement between Miami -Dade County and City of Miami regarding annual distribution of Convention Development Tax proceeds; authorizing County Mayor to execute and deliver First Amendment; and approving annual grant by Omni Community Redevelopment District to City of Miami from legally available CRA revenues in connection with certain city bonds The accompanying resolution was prepared by the Finance Department and placed on the agenda at the request of Prime Sponsor Vice Chairwoman Audrey M. Bdmonson. R. A. Cueiras, Jr. County Attorney RAC/j is Memorandum Date: July 3, 2012 To: Honorable Chairman Joe A. Martinez and Members, Board of County Commissioners From: Carlos A. Gimner` County Mayo 9 Interlocal Subject: Dade' Countyu uand the City softMiami endLand Approvent to ing ng Grant from rOmni eement between Miarni Community Redevelopment Agency to City of Miami Recommendation the accompanying It is recommended that the Board of County Commissioners (Board) approve resolution, which: 1.) authorizes a first amendment (First Amendment) to the 2009 Interlocal Agreement, dated July 1, 2009 between Miami -Dade County (County) and thety toe f iiay; tfurther (City) regarding the annual distribution of Convention Development Tax (CDT) proceeds authorizes the County rovesranrannualtgrantyfrom heor's st Omni Community Redevelopment Agency gnee to execute .and deliver this First Amendment; sand 2) app (Agency) to the City from legally available Agency revenues in connection with certain City bond obligations. Sco s The overall impact of this resolution is Countywide. Fiscal Imnact/FundinSource The attached First Amendment has:a positive fiscal impact on the amount of available CDT receipts. It will allow for the future refunding of existing County special obligation bonds backed by CDT receipts by amending Exhibit. A to the 2009-InterlocalAgreemant. The refunding will reduce the cost of County debt obligations on therefunded bonds, The refunding of then pecialavailable obtgaation bondsfor bakedexisting y CountyDT receipts Is as and any P Po the CDT bonds to separate reduce debt lsery on that costs will not hextend the life of the CDT bonds. The refunding of e t CDT There are City. other changes tp t f a grant e 2009 l he Agency to theing Cityhwill havennoffiscal mp.act on yments th the untIn auseion, approvalby the County because the grant is subordinate to the Agency's annual payment to the County. Background. The current resolution essentially authorizes two actions: 1) It amends a 2009 Interlace' Agreement between the County and the City to allow the refunding of County bonds that are paid for by Convention Development Taxes in order for the County to lower its interest costs and save money.; and 2) It approves an annual grantfrom the Agency to the City, after all annual payments to the County are made, so that the Tunnel Project as contemplated tt by the 2007'G obis ? fund Agreement. a portion of the Pori of Miami A more technical description follows. Honorable Chairman Joe A. Martinez and Members, Board of County Commissioners Page 2 Pursuant. to Section 212.0305(4)(b), Florida Statutes, Section 29-60 of the Code of Miami -Dade County, Florida, and Ordinance No. .83-91 enacted by the Board on June 5, 1984 (collectively, the Authorization), the County imposes a levy on the exercise within Its boundaries (exclusive of the municipalities of Bat Harbor and Surfslde) of .the taxable privilege of leasing or letting transient rental accommodations at the rate of three percent of the total consideration charged for such accommodations (Convention Development Tax or CDT) and has the discretion to determine the use of the CDT receipts. The Authorization provides that one-third of the CDT receipts are required to be used for eligible projects in the most populous munioipatity in the County, which Is the City. Pursuant to Resolution R-319-09 approved by the Board on March 23, 2009, the then existing Interlocal Cooperation Agreement between the County, the City and the Miami Sports and Exhibition Authority was terminated. The 2009 Interlocal Agreement was concurrently approved at the same Board meeting. As part of the 2009 Interlocal Agreement, a schedule of CDT receipts to be paid by the County to the City (Current Share) was approved as set forth in Exhibit B. The Current Share is to be paid after the list of specific items identified in Exhibit.A of the .2009 Interlocal Agreement Including outstanding County CDT Bonds, the CDT Bonds contemplated to be issued at the time for the Ballpark Stadium•project and other obligations of the County. This First, Amendment does not revise the 2009 Interlocal Agreement in .any way except to replace the existing Exhibit A with one that allows the County to refund any of Its bonds listed in Exhibit A provided there is an Interest cost savings. The resolution approves the First Amendment and authorizes the County Mayor or the County Mayors designee to execute It on behalf of the County. The City Commission is expected to consider a similar resolution at a meeting in July. to fulfillment of objectives set forth In the "Interlocal Agreement Between The City of Miami, Miami - Dade County, Southeast Overtown Park West CRA and Omni CRA to Provide Funding for Major Projects for the Benefit of All Parties" (referred to as the Global Agreement) dated December 31, 2007, the resolution approves an annual grant by the Omni Agency to the City from fiscal ,year 2012 through fiscal year 2030 in an amount equal to the annual principal and interest payments on bonds or debt issued -by. the^Clty to -fund the city's $50.million contribution to the construction of the Port of Miami Tunnel. This annual grant payment is subordinate to the payment. made by the Omni CRA to the County, which Is pledged to the Series 1997A CDT Bonds or any bonds refunding the Series 1997A Bonds, This CRA payment to the County is currently $1.43 million plus 35 percent of the remaining Increment. Effective March 31, 2013, the payment shall be $1.43 million per year or 35 percent of the total increment, whichever is greater. Edward Marq4 Deputy Mayor Attachments MEMORANDUM (Revised) TO: Honorable Chairman Joe A. Martinez DATE: July, 3, 2012 and Members, Board of County Commissioners FROM: R. A. Cilevas, Jr! County Attorney SUBJECT: Agenda Item No. 14(A) (3) Please note any items checked. "3-Day Rule" for committees applicable if raised 6 weeks required between first reading and public hearing 4 weeks notification to municipal officials required prior to public hearing Decreases revenues or increases expenditures without balancing budget Budget required Statement of fiscal impact required Ordinance creating a new board requires detailed County Manager's report for public hearing No committee review Applicable legislation requires more than a majority vote (i.e., 2/3's , 3/5's , unanimous ) to approve Current information regarding funding source, index code and available balance, and available capacity (if debt is contemplated) required Approved Mayor Agenda Item No. 14(A)(3) 7-3-12 Veto Override RESOLUTION NO. RESOLUTION APPROVING FIRST AMENDMENT TO INTERLOCAL AGREEMENT BETWEEN MIAMI- DADE COUNTY AND CITY OF MIAM] REGARDING ANNUAL DISTRIBUTION OF CONVENTION DEVELOPMENT TAX .PROCEEDS; AUTHORIZING COUNTY MAYOR OR COUNTY MAYOR'S DESIGNEE TO EXECUTE AND DELIVER FIRST AMENDMENT; AND APPROVING ANNUAL GRANT BY OMNI COMMUNITY REDEVELOPMENT DISTRICT TO CITY OF MIAMI FROM LEGALLY AVAILABLE CRA REVENUES IN CONNECTION WITH CERTAIN CITY BONDS WHEREAS, Miami -Dade County ("County") and the City of Miami ("City") entered into an Interlocal Agreement dated July 1, 2009 ("Interlocal") with respect to the distribution by the County of the convention development tax ("CDT') levied at the rate of three percent of the total consideration charged for leasing or letting transient rental accommodations within the County's boundaries ("CDT Receipts") pursuant to Section 212.0305(4)(b), Florida Statutes, Section 29-60 of the Code of Metropolitan Dade County, Florida, and Ordinance No. 83-91 enacted by the Board of County Commissioners of Miami -Dade County (the "Board") on June 5, 1984; and WHEREAS, the County has pledged the CDT Receipts to certain County bonds ("County CDT Bonds") and eligible projects, as set forth in Exhibit "A" to the Interlocal, which have priority over any future disposition or use of the CDT Receipts ("County Obligations"); and WHEREAS, pursuant to the lnterlocal, the County distributes, after the County satisfies all of its County Obligations, available CDT Receipts to the City in increasing Agenda Item No. 14(A)(3) Page No. 2 amounts beginning with $2 million annually in 2009, $3 million annually from 2010 to 2015, $4 million annually from 2016 to 2020, $5 million annually from 2021 to 2025, $6 million annually from 2026 to 2030, and $8 million annually from 2031 to 2038, from CDT Receipts ("Interlocal Payments"); and WHEREAS, Exhibit "A" to the lnterlocal has no provision that allows the County to refinance the County CDT Bonds to achieve an interest cost savings; and WHEREAS, the County and City wish to enter into a First Amendment to the lnterlocal Agreement to amend Exhibit "A" to permit the refunding of the County CDT Bonds as a prior County Obligation in order to reduce the amount of CDT Receipts that will be necessary to satisfy the County's Obligations and increase the CDT Receipts available to the County to make the lnterlocal Payments to the City; and WHEREAS, this Board wishes to authorize the County Mayor or County Mayor's designee ("County Mayor") to execute and deliver a First Amendment to the Interlocal Agreement; and WHEREAS, in consideration of the City's agreement to amend the Interlocal, the Board wishes to approve an annual grant by the Omni Redevelopment District to the City from legally available CRA revenues in amount equal to debt service on certain City bonds/debt to be issued to fund the City's financial obligation with respect to the Tunnel project, Agenda Item No. 14(A) (3) Page No. 3 NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that: Section 1. The First Amendment to the Interlocal Agreement in the form attached as Attachment 1 to this Resolution is approved and its execution and delivery by the County Mayor on behalf of the County is authorized and approved. Section 2. The Board approves an annual grant from Fiscal Year 2012 through Fiscal Year 2030 by the Omni Community Redevelopment Agency ("CRA") to the City from legally available CRA revenues in an amount equal to the principal and interest due annually on bonds/debt issued by the City to fund its $50,000,000 contribution to the Tunnel project pursuant to the "Interlocal Agreement Between The City of Miami, Miami -Dade County, Southeast Overtown Park West CRA and Omni CRA to Provide Funding for Major Projects for the Benefit of All Parties" (referred to as the Global Agreement) dated December 31, 2007. The grant shall be subordinate to the CRAs' annual payment to the County pursuant to the "First Amendment to Interlocal Cooperation Agreement dated June 24, 1996 by and among Miami -Dade County, the City of Miami and the Community Redevelopment Agency for the Omni District". Agenda Item No. 14(A) (3) Page No. 4 The foregoing resolution was offered by Commissioner who moved its adoption. The motion was seconded by Commissioner and upon being put to a vote, the vote was as follows: Joe A. Martinez, Chairman Audrey M. Edmonson, Vice Chairwoman Bruno A. Barreiro Lynda Bell Esteban L. Bovo, Jr. Jose "Pepe" Diaz Sally A. Heyman Barbara J. Jordan Jean Monestime Dennis C. Moss Rebeca Sosa Sen. Javier D. Souto Xavier L. Suarez The Chairperson thereupon declared the resolution duly passed and adopted this 3rd day of July, 2012. This resolution shall become effective ten (10) days after the date of its adoption unless vetoed by the Mayor, and if vetoed, shall become effective only upon an override by this Board. MIAMI-DADE COUNTY, FLORIDA BY ITS BOARD OF COUNTY COMMISSIONERS HARVEY RUVIN, CLERK By: Deputy Clerk Approved by County Attorney as to form and legal sufficiency. Gerald T. Heffernan Attachment 1 FIRST AMENDMENT TO 1NTI.RLOCAL AGREEMENT DATED JULY 1ST, 2009 BETWEEN MIAMI-DADE COUNTY AND TFIE CITY OF MIAMI This First Amendment (the "First Amendment" )t o the Interlocal Agreement dated July 1, 2009 (the "Interlocal") by and between Miami -Dade County, a political subdivision of the State of Florida (the "County") and the City. of Miami, amunicipal corporation organized under the laws of the State of Florida (the "City") is made this _day of 2012 by and between the County ;and the City. WITNESSETH: WHEREAS, the County and the City entered into an Interlocal Agreement dated July 1, 2009 ("Interlocal") with respect tothe distribution by the County of the convention development tux ("CDT") levied at the rate of three percent of the total consideration charged for leasing or letting transient rental accommodations within' the Connty's boundaries ("CDT Receipts") pursuant to Section. 212.0305(4)(b), Florida Statutes, Section 29-60 of the Code of Metropolitan Darle County, Florida, and Ordinance.No. 83-91 enacted by the Board of County Commissioners of .Miami -Dade County (the "Board") on June 5, 1984; and WHEREAS, the County. has pledged the CDT Receipt& to certain Countybonds ("County CDT Bonds") and eligible projects, as set forth in Exhibit "A" to the Interlocal, Which have priority over any future disposition or use of the CDT Receipts ("County Obligations"); and WHEREAS, pursuant to the Interlocal, the County distributes, after the Countys atis II es all of its County Obligations, available CDT Receipts to the City in increasing amounts beginning with $2 million annually in 2009, $3 million annually from 2010 to 2015, $4 mil lion annually from 2016 to 2020, $5 million annually from 2021 to 2025, $6 million annually from 2026 to 2030 and $8 million annually from.2031 to 2038 from. CDT Receipts ("Interlocal Payments"); and WHEREAS, Exhibit "A" to the Interlocal has no provision that allows the County to refinance the County CDT Bonds to achieve an interest cost savings; and WHEREAS, the County and City wish to enter into this First Amendment to the Interlocal Agreement to amend Exhibit "A to permit the refunding of the County CDT Bonds as a prior County Obligation in order to reduce the amount of CDT Receipts that will be necessary to satisfy the .Connty's Obligations and increase the CDT Receipts available to the County to make the lnterlocal Payments to the City, NOW, THEREFORE, the County and the City agree as follows: Section 1. Exhibit"A" to the Interlocal is deleted and replaced with.a new "Exhibit "A" in the form attached to this First Amendment. Section 2. All other provisions of the hiterlocal remain the same and in effect and are binding on the County and the City. Johnny Martinez [County Mayor or County Mayor's City Manager Designee] City of Miami Miami -Dade County ATTEST: ATTEST: (Deputy) City Clerk ( Deputy) Clerk of the Board APPROVED AS TO FORM APPROVED AS TO FORM AND CORRECTNESS: AND LEGAL SUFFICIENCY: City Attorney Assistant County Attorney 2 Exhibit "A" CDT' Priority Commitments Current CDT. Bonds Series 1.996 PAC and Series 1.997 PAC Series 2005A and 2005E Series 2009 .(Ballpark Bonds) Existing Obligations Miami Beach American Airlines Arena Cultural Grants Performing Arts Center Trust South Miami -Dade Cultural. Center Amount $368,757,228 (outstanding principal amount) .$184,31.2,247 $91,207,213.90 (remaining authorization cancelled) $4,500,000 $6,400,000 $1,000,000 $1,700,000 $770,000 Annual. Payment. Annual Payment (Increases to $6.5 million in 2022-28) Annual Payment Annual Payment (Increases to $2.0 million in 2012) Annual Payment Future County CDT Bonds Any bonds issued:and/or debt incurred in principal amounts sufficient to refund/defease any of the Current CDT Bonds*, fund areserve and pay cost ofissuancc that result in an interest cost savings. **Pursuant to Interlocal Cooperation Agreement with the City of Miami Beach dated June 21, 1995, as amended, the annual paymentof $4,500,D00 may be increased.if CDT Receipts exceed a threshold amount that Is greater than anticipated/projected CDT Receipts. (I