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HomeMy WebLinkAboutSubmittal-Vice Chair Russell-CRA's Obligation to Museum ParkSubmitted into the public record f r it�m(s) 1 11 on t� City Clerk CITY OF MIAMI OFFICE OF THE CITY ATTORNEY MEMORANDUM TO: Pieter Bockweg, Executive Director, Omni Redevelopment District Community Redevelopment Agenc FROM: Julie O. Bru, City Attorney\ij DATE: September 7, 2012 RE: OMNI CRA funding obligations for Museum Park You have asked whether the Omni Redevelopment District Community Redevelopment Agency ("OMNI CRA") has any continuing financial obligations with respect to the museum park project. For the reasons set forth below, your question is answered in the negative. ANALYSIS I. Background The Community Redevelopment Act of 1969 ("Act") (Chapter 163, Part III, Florida Statutes) enables cities and counties to create a Community Redevelopment Agency when certain blight conditions exist, including substandard or inadequate buildings or infrastructure, defective or inadequate street layout and parking facilities, unsanitary or unsafe conditions, tax or special assessment delinquency, and diversity of property ownership. Under the Act, redevelopment trust funds are created and tax increment revenues ("TIF") are deposited annually to provide public funds to CRAs to fund redevelopment activities in accordance with the approved redevelopment plans. In the 1980's the City of Miami Commission ("City") adopted Resolution No. 86-868, and the Board of County Commissioners of Miami -Dade County ("County"), adopted Resolution No. 87-47, thereby approving the Omni Area Redevelopment Plan ("Plan")1. Thereafter, the City created the OMNI CRA. The OMNI CRA is responsible for carrying out community redevelopment activities and projects to eliminate slum and blight within the Omni Redevelopment Area, in accordance with the Plan, as amended. I As used in this opinion, the Plan means that certain Omni Redevelopment Plan dated September 1986, as further amended and supplemented by the Amended and Restated Addendum II to the Omni Area Redevelopment Plan approved pursuant to Resolution 96-234, which approval was reaffirmed pursuant to Resolution 97-176, and as further amended and supplemented by the Omni Area Redevelopment Plan approved in 2009. II �335840 6� s- 5 i111\ \' c\j41/4A \10,52``-1,f�5 00\15)\-\ tAt )A\) MP\ Pieter Bockweg, Executive Director September 7, 2012 Page 2 of 2 Submitted into the public 1 y recor r it�jm s) j\; 1O on 1I1 ,I 1 h City Clerk Re: OMNI CRA funding obligations for Museum Park H. The Omni Area Redevelopment Plan and the Global Agreement authorizes but does not obligate the OMNI CRA to contribute funding towards the Museum Park Proiect. The enhancement and improvement of Bicentennial Park was identified as an important redevelopment activity in the Plan when originally adopted in 1986. Subsequently, in 2007, the City, the OMNI CRA, the Southeast Overtown Park West Community Redevelopment Agency ("SEOPW CRA")2 and the County entered into an Interlocal Agreement to provide funding for major projects for the benefit of all parties ("Global Agreement") which set forth certain obligations with respect to the development and funding of certain projects including the Museum Park Project. The Museum Park Project is described as the redevelopment of the 29- acre property on Biscayne Bay which will include a park and new facilities for the Miami Art Museum and the Miami Museum of Science and Planetarium. A copy of the Global Agreement is attached for your convenient reference. Specifically, Section 3 of the Global Agreement describes certain capital improvements related to the "park component" of the Museum Park Project that would be eligible for TIF funding from the OMNI CRA. However, the terms of the Global Agreement do not impose a continuing financial obligation on part of the OMNI CRA in connection with the Museum Park Project. Specifically, Section 3 of the Global Agreement simply states that the City and the OMNI CRA agree to "propose" using TIF revenue to fund certain capital improvements related to the park component of the Museum Park Project. CONCLUSION Accordingly, the OMNI CRA Board may spend TIF revenues to fund capital improvements within the park component of the Museum Park Project, as described in the Global Agreement, and the Plan; however, such expenditure is subject to approval by the OMNI CRA Board, which approval constitutes a legislative act of the CRA Board and is not mandated by any contractual obligation at this time. 2 The OMNI CRA and the SEOPW CRA are sometimes collectively referred to as the "CRAs". Additionally, "CRA" shall also refer to a community redevelopment agency or agencies as the context may indicate. • Submitted into the public recor r ite s) . on City Clerk INTERLOCAL AGREEMENT BETWEEN THE CITY OF MIAMI, MIAMI•DADE COUNTY, SOUTHEAST OVERTOWN PARK WEST PRA AND OMNI CRA TO PROVIDE FUNDING FOR MAJOR PROJECTS FOR THE BENEFIT OF ALL PARTIES This Agreement, dated as of December' 1, 2007, is made and entered into by the. City of Miami (the "City"), Miami -Dade County (the "County"), . Southeast Overtown • Park West Community Redevelopment Agency (the "SEOPW CRA") and the Omni Community Redevelopment Agency (the "Omni CRA"). The SEOPW CRA and the OMNI CRA are sometimes referred to herein, collectively, as the "CRAs". RECITALS A, The City, the County and the CRAs (collectively, the "Parties") acknowledge that the following projects (collectively, the "Projects") are of great benefit to the CRAs and the community in general, for reasons which include the reasons set forth below, and are supportive of said Projects: 1. Performing Arts Center (the "PAC"): This projeot has been, and continues to be a .catalyst In attracting development and private investment within the OMNI CRA area as well as downtown Miami. 2. Port Tunnel (the "Port Tunnel"): This • project consists of widening of the MacArthur Causeway Bridge, • construction of a •tunnel between Watson Island and Dodge Island and roadway improvements on Watson island and the Port of Miami, It will ensure the economic viability and growth of the Port of Miami, the second most Important economic generator in the region accounting for over 17,000 jobs and $2,2 billion annually in total economic benefit to the City and its residents, Further, the Tunnel Project will'reduce congestion and improve the quality -of -life _ of the Omni CRA and SEOPW areas as well es downtown Miarnl by removing over 5,000.port-bound trucks per day from area streets. 3. Museum Park Project (the "Museum Park"): Museum Park is the City of Miami's urban redesign vision for the park now known as Bicentennial Park, a 29-acre property on Biscayne Bay which serves and will serve the residents of the OMNI CRA, the SEOPW CRA and well as the entire region. This project includes a premier public park anchored by landmark new facilities for the Miami Art Museum (MAM) and the Miami Museum of Science and Planetarium (MMSP), which will Include a branch of the Historical Museum of Southern Florida. The building will be designed around energy -saving, sustainable materials and techniques. The goals of Museum Park"include the restoration of the park's waterfront land to public use, revitalization of the OMNi CRA, the SEOPW CRA and surrounding neighborhoods, the building of a first-class educational and Submitted into the public record r it m(s) on',i�_i� cultural resource for the regIon's. resident§ and visitors, and will strengthen, . the' economy by contributing to tourism, the ,region's number ono industry; i Studies indicate that over the course of their first decade, MAM and .the MMSP at Museum Park will have a•$2 billion economic impact and"will create 1,700 jobs in the community annually. • A. StreetcasProfect (the."Streetcar"): The Streetcar will provide an energy-e111616 t and convenient alternative. mode of transportation connecting the City's, moat densely populated and urbanized areas,: ihclui irig . Downtov✓h, Overtown, Omni, WynwoodfEdgewater, Midtovin, Design District and the Civic Center/Health District. The,Streetcar.service will promote mass transit use' and connect with Miami -Dade Transit' (Metromover, Metrorail and Metrobus}-' The Streetcar circulator will substantially address the City's need to comply with State Bill 360, the CroWth f>iianagemeht'Act as a Multi -Modal .project Improving ..rnobility and meeting transportation concurrency.• • 5. Orange Bowl. Stadturn (the ..`.`New. Orange. Bowl"): .it„ . is contemplated by the City that the New Orange Bowl may be redeveloped ' Into a sobcer "stadium for 'a Major Leegue_Soccer franchise, It will also "Include perking, .and may include retail, ,entertainment,; park and open . spaces and -related ,amenities, The NeW. Oraltge Qowl will-be,designed and developed to be compatible with the Baseball Project aesthetically end operationally: This project is intended to bring economic growth•.and vibraricy :to -the heart *of Little' .Havana. and surrpu:ndirig corri►dors,,and neighborhoods. Funding for and •construction• of a New Orange 0644 will not commence until Major League Soccer awards. Miami an expansion franchise: • B'. Baseball Prolect'(the..`.`Basebell Proiecn: The Orange.. Bowl Site'will be developed to-inclu.de a new.$515_mlilion fret -class retractable rdof Major League Baseball stadium for the use of the 1Florlda Marlins. City and the. Cbunty have 'been: working together to bring professional baseball to the City of Miami and the availability of the Orange Bowl Site offers the perfect opportunity to combine professional baseball with- the NeW • Orange ,cowl 'at' a completed redeveloped Orange BbWI site- with parking, retail, :entertainment and_ related amenities: A major league baseball team will benefit the' entire community and region, by,,; among other things, creating jobs and attracting tourism, providing both .a direct and indirectincrease in tax revenue, The Baseball Project will serve as an engine for,ecoriomic.development creating 250 full time and 2,000,part time jobb. In addition, coristruction of the: project. is expected to generate approximately 1,700. high. paying .jobs during the• construction period of approximately 29 months, Submitted into the public record i r ite ) ; o on 7. Parking: The Orange Bowl site 'will be redeveloped to include at least 6,000 parking spaces to be funded by the City to support the Baseball Project and the New Orange Bowl which will .be available for the opening of the Baseball Project. These parking structures are necessary and will benefit the entire community by supporting the economic development created by the aforementioned uses of the Orange Bowl site. B. The Parties agree that the development of the Protects requires the . _cooperation and commitment of all of the Parties to assist in identifying funding sources, reallocating the use of existing revenues, including TIF Revenues, and expanding the boundaries and extending the terms of the CRAs, all as hereinafter provided. • NOW, THEREFORE, in consideration of the foregoing, the Parties agree as follows: 1. Recitals: The recitals are true and corect• and are hereby incorporated into and made a part of this Agreement. 2. Agreement: The Parties agree to take all action necessary to accomplish the purposes of this Agreement, as hereinafter set forth, in a prompt and efficient manner. The parties acknowledge that the process of expanding the boundaries and extending the term of the OMNi and SEOPW CRAs, include the preparation and adoption of findings of necessity for the expanded areas and amendments to the corresponding redevelopment plans of the CRAs. The parties agree to cooperate and act expeditiously and in goad faith in implementing the steps necessary to accomplish this purpose. 3. The OMNI CRA: , The City, the County and the OMNI CRA agree, to approve and execute an amendment (the "First Amendment to OMNI CRA lnterlocal") in substantially the form attached hereto as Exhibit "A". The First Amendment to the OMNI CRA interlocal provides the process the City, the OMNi CRA and the County will follow to extend the term of the OMNI CRA through 2030 and expand its boundaries to include Watson Island and Bicentennial Park. The City, the County and the OMNI CRA agree to ,cooperate and act expeditiously so as to present the finding of necessity and the amendment to tiie redevelopment plan to the Board of County Commissioners within 9 months following the execution of the First Amendment to OMNi CRA lnterlocal. • The City and the OMNI CRA agree to amend the redevelopment plan to include the projects listed below In their proposed amendment to the redevelopment plan and to propose using the amounts received by the OMNI CRA from the City and the County to fund those Projects required by It to fund in the manner described below. City Clerk Submitted into the public recorci„t r itgrp(s) on a, • PAC' (To the .County for repavment.of PAC Bonds and/or, loans; In fuffheran'cs of such expeditious utiiization: of funds..for the County's +payrnert of-ciebt service on the Performing Arts Center Bonds and/dr;Loatis, the CRA shall:remitto the..COUNTY (a) on March 31; 2008 acid •every ,March •31s1 thereafterending on March 31; 2012; the first $1,43 million of Increment. Revenue (as such term is defined in the First Amendment) plus an amount equal to thirty-five perdent (35%) of -the amount by which the Increment Revenue from the Omhi Community Redevelopment Area exceeds, . ,' $i 43. million; and (b) commending March 31, 2013 and every March .31, th'e•reafter,untii ;Maroh::3.1, 2027,, including any additional time extensions beyond March 31, 2027, an amount •9.qualI to the - greater of $1,43 million or thirty-five percent (35%) of the Increment ''Revenue ''from the Omni ; Cbmmunity':.Redeveiopment .Area; provided, however, the amounts to be remitted by the ORA'.as . . calculated ,in accordance with subsections (a) and (b) shall not' ekbeed $25 million In any fiscal year. The Clty and County acknowledge that these funds are necessary to, provide for:the City and County contributions to the Baseball Project. b. • ,PortIttnnel: $88. million ,(approximate)y) .io be' paid to the. City in annual• 'Installments, : commencing upon substantial comp1et1on of the Port'Tuhnel Project through 2030. This amouni. will fund the City's contribution towards. the Port Tunnel project.' c. ::Museum Park: An amount necessary to fund •.$fi$:. million far capital improvements to • the park component of ".the Project, to be funded by the OMNI CRA and completed by the City by no later than. January .2012, and an annual contribution to the pork's capital ekpenditure fund of $2 million, payable commencing. on the date of substahtial:.c.o.mpietlon. of the; -park componentof, the Project through- 2030; 4. ToUrlst-Development Tax (TDT) and Convention Development Tax (CDT) funds: The Patties acknowledge that the OMNI CRA Amendment will result in en increase in the availability of CDT and TDT revenues for protects other than the PAC, which theparties agree to use for the Baseball Project and the Parking/Balance of Orange Bowl Site. The City.and County agree that the implementation of the OMNI CRA Amendment will permit the County to release additional sufficient.TDT and CDT.dollars so that municipai-bbnds may be issued for the redevelopment of the Orange Bawl site as follows: City Clerk . • Submitted into the public recordr itep (s) on a. ' The Baseball. Protect: City: The City will fund $10 million from CDT revenues. County: The County will fund $88 million from TDT revenues and $10 million from tourist taxes (CDT or PST) revenues, b, Parking/Balance of Orange Bowl Site: The City will fund $50 million from CDT revenues. 5. The SEOPW CRA. a. The City and the SEOPW.CRA agree to generate a Finding of Necessity study to substantiate the expansion of the boundaries of the SEOPW district to include the geographic area described in Exhibit "B" hereto, if the City and the SEOPW CRA each adopt a resolution, supported by data and analysis, ' which makes a legislative finding that the conditions in the area .meet the criteria described In Section 163,340(7) or (5), the City and the SEOPW CRA agree to provide the County with the adopted Finding of Necessity study and resolutions for the Board's review and consideration, as set forth in Section 163.355, Florida Statutes. • b, After making the legislative findings and adopting the Finding of Necessity study, the City and the SEOPW CRA agree to prepare and consider a resolution that approves, after a public hearing, an amendment to the Plan, which amendment shall (I) be in the form of the Amended 2004 Southeast Overtown/Park West Community Redevelopment Plan prepared by Dover, Kohl & Partners, but updated to include theprojects proposed for the• expanded boundaries; and'(ii) extend the life of the SEOPW CRA to March 31, 2030; and (ii) expand the boundaries of. the SEOPW District. If the City and the SEOPW CRA each adopt a resolution that approves the amendment to the Plan and that recommends to the County their approval of the amendment to the Plan, they egree to provide' the County with the adopted amendment for review and consideration by the Board of County Commissioners after a public hearing, as set forth in Section 163.361,, Florida Statutes. c. Upon receipt .of the adopted Finding of Necessity and amendment to the Plan the County agrees to review, comment, prepare and recommend for the Board's consideration the Finding of Necessity and amended Redevelopment Plan. The CRA shall report such proposed modification to. the boundaries of the City Clerk Submitted into the public record r it m(s) on redevelopment area to each taxing authority In.Writing „or by oral presentation, or both, as required by Section 163.361(3)(a), Florida. Statutes; The City and the SEOPW-CRA agree; that, in accordance with the provisions of Section 163.361, Florida Statutes, the Board shall only consider approval of the Finding of Necessity and the amended. Plan after the SEOPW CRA has complied with the •provisions of Section 163,361(3)(a),-Florida Statutes. d. The City and the SEOPW CRA understand that the process of reviewing'the arriended RedevelopmentPlan` will entail mutual cooperation from the County, .City and .SEOPW CRA, and that delays in the review process may delay when the Board consider the items. The City, the SEOPW CRA and`the;County :agree that the approval of this Agreement by the parties does not constitute approval of 'those matters' in the Finding' of, Necessity and the arnendrneht td• the Plan which require approval by the SEOPW CiA, the City Commission and the Board, Therefore, the parties agree that as a matter of their Sovereign power and legislative authority if the SEOPW CRA, the .City Commission .and/or the Board do not approve a resolution adopting the t'inding of,necessity and/or the amendment to the Plan, the failure to approve such resolution or amendment to the Pian shall not be deemed an event of default under this Agreement and the parties. shall not be liable to each other. e. The City, the County and the .SEOPW CRA agree that comniencing fiscal year .2017 and ending , fseal .year 2030, the amount of TIP Revenues collectedfrom the projects listed in Exhibit C budgeted annually for expendlture'by the.SEOPW CRA from the SEOPW CRA trust fund shall not exceed 54%0.:of .increment Revenues collected from'•suoh projects in such ,fiscal.year and • deposited in the SEOPW CRA trust fund' for such Year. The City, the County and the SEOPW CRA agree that the; ,SEOPW CRA shall return the' balance of the Increment Revenues.(45%),collected from the projects listed In Exhibit C for such year to each taxing eutho'rity which' paid the borement in the proportion that the amount Of the payment of such taxing authority bears to the tete! amount paid info the trust fund .by till the 'taxing authorities for that year. It is the prIrnary Intent of the 'Cityand the County that SEOPW CRA tax increrrient revenues on deposit in the SEOPW Trust Fund will be allocated by the SEOPW CRA towards the development of affordable housing and related infrastructure in the SEOPW CRA district, f. The County agrees that it shall begin. to make. a $20 million cohtribution to the City to be applied toward the funding of the City Clerk Submitted into the public record �l �`�((s) on Ill Streetcar project upon the later of (i) September 30, 2017 or (il) the receipt of the requisite approvals for the streetcar project by the State of Florida and the MPO. The County's Streetcar project contribution may be made In a lump sum or in annual installments sufficient to Issue tax—exempt municipal bonds with a .debt service coverage dictated by the market commencing on the date of substantial completion of the streetcar project: 6. Annual Budget. The County agrees to waive any claims it may have to approve the annual budget for the CRAs for fiscal years prior to the fiscal year commencing October 1, 2008. 7. Waiver of Administrative Fee. The County agrees to waive the 1.5% administrative fee chargeable to the CRAs. ' 8. Extension of Reverter. The County agrees to place an item on the agenda for the first meeting of the Board of County Commissioners in January 2008, considering an extension of the reverser date of the properties described In Exhibit "D" or a re -conveyance of said properties to the City, if the reverter has already occurred. 9. Time of the Essence: Time is of the essence in the performance of this Agreement.. 11 Condition Subsecruent: The County, the City and the Florida Marlins, L.P. (the "Team") agree that the funding commitments to the PAC, as set forth in this Agreement and in the .First Amendment to OMNI CRA I nterlocat, and to the New, Orange Bowl, as contemplated herein, shall be void unless a binding agreement for the :Baseball Project (the "Baseball Stadium Agreement") is executed, containing the fallowing provisions: (I) Total Baseball Stadium cost will not exceed $515 million; (ii) Teem's contribution to the Stadium cost shall not be less than $155 million; (iii) Team will not request more than 6,000 parking spaces at the new Orange Bowl Site; . • (iv) The Team, the City and the County shall act in good faith and will be reasonable in negotiating the Baseball Stadium Agreement, 11. Saverability: If one or more of the provisions of this agreement shall be held contrary to any provision of law or be held invalid, then such provision or provisions shall be null and void and shall be separate from, and have no effect on, the remaining provisions which shalt continue to be legal and valid. ' iN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the date first above written. City Clerk 1 Attest: ryscllla A. Thompson, City Clerk Submitted into the public record for it(s) on yrInrrL City Clerk City of Mlarnl By: • Pe ro r ndez, City Manager • Approved as to Form and Correctness Approved ds to 1hs.uri By: '� By: J. �►= L,'Fer"nande2, City Attorh 'j LeeAnn.Brehm; Director, Risk 'Management Meat: By: Approved a's to Farm and Legal Suffidienc y:. By:� County Attorney• Miarni-Dade County ufrements Southeast Overtown Park West Community Redevelopment Agency • Omni Community Redevelopment Agency Approved as to form and correctness: By: Jorge L. Fernandez CRA General Counsel JOINDER Submitted into the public; record f rite s) OD pity C]er1C. Florida Marlins, .L.P. joins in the execution of this Agreement to acknowledge its agreement to the provisions contained in Paragraph 10. . Florida Marlins, L.P.