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HomeMy WebLinkAboutExhibit B-2EXHIBIT B-2 USINESS PROVE ENT DISTRICT ADDENDUM TOMARCH 20, 2013 WYNWOOD BUSINESS DISTRICT BUSINESS PLAN ASSESSMENT METHODOLOGY The assessment methodology will include five (5) categories of assessment: (1) the first (1st) story adjusted square footage of a benefited property will be assessed at twenty- four cents (24C) per square foot; (2) the adjusted square footage of the second (2nd) story and above will be assessed at twelve cents (12C) per square foot; (3) the lot size square footage of any land outside the footprint of a building will be assessed at twelve cents (12C) per square foot; (4) the lot size square footage of any unimproved property or property used for surface parking will be assessed at twelve cents (12C) per square foot; and (5) a parcel or contiguous parcels of land under common ownership, upon which the total adjusted square footage of the improvements subject to the special assessment exceed 200,000 square feet, will be assessed at seventy-five percent (75%) of what their assessment would otherwise be based on the methodologies set forth above. The Board of Directors of the Wynwood BID (the "Board") will have the authority in any given year to increase the special assessment over the previous year's rate by one cent (1C) for the first (1st) story adjusted square footage of a property and one-half cent (.5C) for all other categories of assessment. Alternatively, the Board may choose not to increase or reduce the special assessment in subsequent years. A special assessment shall only be levied and collected against benefited properties within the boundaries of the Wynwood BID pursuant to allowable land uses provided for in the Miami 21 Code, the Zoning Ordinance of the City of Miami, Florida, as amended ("Miami 21"), that include, but are not limited to, commercial, industrial and work -live, as well as property owned or occupied by a religious institution or not -for - profit used for commercial purposes unrelated to the purpose for which the religious institution or not -for -profit is organized. A special assessment shall not be levied and collected against properties within the boundaries of the Wynwood BID that are not benefited pursuant to allowable land uses set forth in Miami 21 that include, but are not limited to, residential and live -work, as well as property owned or occupied by a religious institution or not -for -profit used for commercial purposes related to the purpose for which the religious institution or not - for -profit is organized, public or private elementary, middle or high schools or units of government. Those properties included within boundaries of the Wynwood BID that subsequently derive a Special Benefit shall be added to the assessment roll and assessed at the originally approved rates, with the addition of any approved incremental increases, beginning in the following calendar year. The Wynwood BID will issue statements to property owners of benefited properties and track all payments received therefrom. Special assessments on condominium property must, by statute, be levied on each condominium parcel as a single parcel and not upon the condominium property as a whole. The Board, at their discretion and upon compliance with relevant statutory prerequisites, may elect to levy and collect the special assessment using the Miami -Dade County Truth in Millage Notice, commonly referred to as TRIM. Should the Board elect to levy and collect the special assessment using TRIM, any decision to increase the special assessment over the previous year's rate must be made in a time sensitive manner in order to comply with all applicable timelines. In the event of unpaid assessments, the Wynwood BID will cooperate with the City of Miami City Manager to establish liens on all delinquent properties. PETITION AND AFFIDAVIT Expansion of the Wynwood BID boundaries is subject to the approval of a majority (50% + 1) of the affected property owners, which shall be determined through a petition and affidavit in support ("Petition"). The process for submitting a Petition shall begin September, 23, 2016. A Petition must either be hand delivered or mailed to the Office of the City Clerk at the address listed below and be received by the Office of the City Clerk no later than 5:OOPM on February, 24, 2017: Office of the City Clerk 3500 Pan American Drive Miami, FL 33133 Affected property owners are entitled to file one (1) Petition per individual folio owned. "Owner" shall mean a person who appears on legal title to real property by deed duly recorded in the Miami -Dade County records or their designated personal representative, agent or guardian. A non -vote shall be considered a "no" vote. A full list of those properties subject to the special assessment and eligible to file a Petition will be on file at the City of Miami, City Clerk's Office. Those properties that do not derive a special benefit from the stabilizing and improving of such district through promotion, management, marketing, and other similar services will not be assessed and therefore are not eligible to file a Petition. WYNWOOD BID EXPANSION CALENDAR September 22, 2016: City of Miami Commission Meeting: 1. Resolution to expand the geographic boundaries of the Wynwood BID, subject to approval of affected property owners. September 23, 2016: Begin petition and affidavit collection. February 24, 2017: Deadline to file petitions and affidavits (5 Month Process). February 27, 2017: Certification by City of Miami Clerk of petition and affidavit process and results. March 23, 2017: City of Miami Commission Meeting: 1. Resolution to (1) accept the petition and affidavit results and (2) fix a time and place at which the owners of property to be assessed or any other persons interested therein may appear before the City Commission to be heard on the matter (30 Day notice must be provided to owners of property to be assessed). May 11, 2017: City of Miami Commission Meeting: 1. City Commission to (1) meet and hear testimony from affected property owners regarding the advisability of the special assessment and (2) make a decision on whether to levy the special assessment; 2. City Commission shall thereafter meet as an equalizing board; and 3. Resolution to approve special assessment. May 12, 2017: Wynwood BID begins to operate with expanded geographic boundaries. Wynwood Business Improvement District Annual Budget With Expansion INCOME Income BID Assessments Expansion Assessments Deferred Collections Reserve Streetscape Security Sanitation Marketing & Advertising G&A Teta( Expenses Budget $760,000 $410,000 $50,000 so 1,220,000 Budget $62,000 $400,000 $ 211, 000 $200,000 $344,070 $1, 217.070 The expected collections is 95% of to the amount billed net of 2% in regards to discounts and penalties ($816K billed -$16K net discounts/penalties) X 95% expected collections. Collections are based on current fees calculations. The expansion is expected to generate $432K in new Folio Assessments Fees. 95% of collections was used for budgeting purposes EXPENSES Sidewalk Maintenance, Mulching & Weeding throughout the BID Area. New Streetscape Projects around 5th and 6th Avenues will increase expenses by $40K a year. The BID projects approximately 7500 Hours to be used (625 Hours a month). The City of Miami Police increased their rate from $32/$33 an hour to $36/$37, In addition the BID must pay the City of Miami the Surcharge which is calculated at $4 per hour of each Off - Duty Officer. The expansion will increase the number of hours by 208 hrs per month which will cost $100K per year. The BID Projects to spend 240 Hours a month on extra sanitation workers plus Sanitation Supplies (including uniforms). Contracted Services expected due to expansion will increase Sanitation Services by $145K a year. Visitors Guides, Replacement Banners, web site and Maintenance ($100K) and: other Various Publications ($35K). Marketing & Advertising cost for the Expansion will cost $65K more. Executive Director and one sanitation employee ($150K), Economic Development Director ($70K) with Office Support, Office Rent ($23K), Insurance ($9k), office supplies, utilities. Bookkeeping and annual audit ($45K). Due to the Expansion G&A Expenses are expected to increase by $42K. TOTAL EXPENSES NET OPERATING INCOME Net Operating Income 2,9`3