HomeMy WebLinkAbout05-00412 Cover Memo•
•
•
SEOPW & Omni Boards of Commissioners Meeting
March 31, 2008
item # 5
SOUTHEAST OVERTOWN/PARK WEST
AND OMNI
COMMUNITY REDEVELOPMENT AGENCIES
INTER -OFFICE MEMORANDUM
Board Chair Michelle Spence -Jones
and Members of the CRA Board
Date: March 21, 2008 05-00412
Subject: Discussion Regarding Authorization to Remit
$5.3 Million to Miami -Dade County for Debt
Service on PAC Bonds
James H. Villacorta References:
Executive Director,
Enclosures:
BACKGROUND:
On December 31, 2007, the City of Miami ("City"), Miami -Dade County ("County"), the Southeast Overtown/Park
West Community Redevelopment Agency, and the Omni Redevelopment District Community Redevelopment
Agency ("Omni CRA") entered into an fnterlocal Agreement ("Global Agreement"), which provided, among other
things, for amendment of the existing Omni Interlocal Cooperation Agreement to increase the CRA's annual
payment towards debt service on the PAC Bonds and/or Loans.
On December 31, 2007, the City, the County, and the Omni CRA entered into the First Amendment to the Omni
Interlocal ("Amendment") to allocate additional tax increment revenues for payment of the debt service on all
outstanding PAC Bonds and/or Loans.
Section III of the Amendment provides:
"the CRA shall remit to the County (a) on March 31, 2008 and every March 31 st thereafter ending
on March 31, 2012, the first $1.43 million of Increment Revenue ... plus an amount equal to
thirty-five percent (35%) of the amount by which the increment Revenue from the Omni
Community Redevelopment Area exceeds $1.43 million; and (b) commencing March 31, 2013
and every March 31 thereafter until March 31, 2027, an amount equal to the greater from the
Omni Community Redevelopment Area; provided, however, the amounts to be remitted by the
CRA as calculated in accordance with subsections (a) and (b) shall not exceed $25 million in any
fiscal year.
Both the Global Agreement and the Amendment conditioned the Omni CRA's funding commitment to the PAC
upon the execution of a binding Baseball Stadium Agreement between the City, the County, and the Florida
Marlins, L.P. containing the following provisions:
(a) The total baseball stadium costs will not exceed $515 million;
(b) The Florida Marlins' contribution to the stadium costs shall not be less than $155 million;
(c) The Florida Marlins will not request more than 6,000 parking spaces at the stadium site;
(d) The Florida Marlins, the City and the County shall act in good faith and will be reasonable in negotiating
the Baseball Stadium Agreement.
On March 3, 2008, the City, the County and the Florida Marlins, L.P. executed a Baseball Stadium Agreement
containing the aforementioned provisions.
On March 18, 2008, the City Attomey's Office opined that the CRA is required to make the payment described in
the Amended Omni Interlocal Agreement.
•
•
•
JUSTIFICATION:
In 1994, the Omni CRA amended the Redevelopment Plan to incorporate the Performing Arts Center as a
"catalytic development project." Addendum II, Section IV.C., paragraph 1 of the Omni Area Redevelopment
Plan provides that "construction of the Performing Arts Center in the Omni Redevelopment Area is designed to
serve as the major public redevelopment activity."
The Global Agreement, and the First Amendment to the Omni Interlocal Agreement required thereunder,
provided for increased Omni CRA support for the Performing Arts Center. Omni CRA General Counsel has
opined that conditions precedent for the payment have been met. Tender of this payment is consistent with the
Redevelopment Plan's designation of the Performing Arts Center as a catalytic project.
FUNDING: If approved, funds in the amount of $5,341,862 would be drawn from Omni TIF, Account Code
No. 10040.920101.891000.0000.00000 entitled "Interfund Transfer."
JHV/pk