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HomeMy WebLinkAboutMemo - Omni CRAOMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE MEMORANDUM Board Chair Damian Pardo Date September 7th ,2024 and Board Members Isiaa Jones Executive Director BACKGROUND: R Subject. The Omni CRA General Operating and Tax Increment Fund Budget References: Enclosures: Exhibit "A" The Omni Redevelopment District Community Redevelopment Agency ("CRA") has developed a proposed budget of Seventy -Three Million, Six Hundred Fifty Thousand and Four Hundred Seven Dollars and Zero Cents ($73,650,407.00) for the fiscal year beginning October 1, 2024, and ending September 30, 2025. This budget is essential for advancing the CRA's mission to revitalize blighted areas within its jurisdiction, as per the guidelines outlined in Florida Statutes Chapter 163, Part III, and its 2019 Redevelopment Plan. The budget allocates resources to key initiatives that address the conditions of slum and blight. These initiatives include affordable housing development, infrastructure improvements, and economic development programs, all of which are critical to increasing property values and enhancing the quality of life for residents within the redevelopment area. Approval of this budget will ensure the continued progress of revitalization efforts, driving the transformation of the Omni CRA district into a vibrant and economically sustainable community. JUSTIFICATION: The Omni CRA is required to annually prepare and transmit its budget to the City of Miami and Miami -Dade County, attached and incorporated as Exhibit "A". The attached Resolution fulfills this requirement. BUDGET SUMMARY The 2025 budget amounts to $$73,650,407.00 and includes the following revenue sources: • $16,184,693.00 — County TIF • $25,246,061.00 — City TIF • $139,181.00 — Transfer from Midtown CRA for Administration • $100,000.00 — Rent Income • $1,980,073.00 — Non-TIF Revenue Fund • $1,601,953.00 — Children's Trust Contribution • $28,398,446.00 — 2024 Carryover Fund Balance The Agency's administrative expenditure of $2,902,563.00 includes employee salaries and fringes and represent ten percent of total budgeted expenditures, satisfying the 20 percent cap for administrative costs allowed by the Interlocal Agreement. Operating expenses total $70,747,844.00 and include: • Affordable/Workforce housing projects ($8,543,075) • A reserve for grants and aid/affordable housing ($10,691,503) • Other grants and projects such as arts, culture, infrastructure, and quality of life ($8,264,307) • Reserve for Land Acquisition ($5,000,000) • Construction in Progress ($1,519,628) • Debt Service payment on the $25 million loan ($2,813,062) • Transfer to MAX Miami LLC relating to economic incentive agreement ($812,500) • Reserve for a transfer to the County for payment of debt service for the Adrienne Arsht Center/Performing Arts ($14,500,764) • Reserve for a transfer to the City for payment of debt service for the Port Tunnel ($3,992,662) • Reserve for a transfer to the City for improvements to Maurice Ferre Park ($2,000,000) • Reserve for Midtown CRA's Administrative Expenditures ($139,181) • Reserve for activities to be funded with non TIF revenue funds ($1,980,073) • Reserve for Security Deposit (Leases) and Property Taxes — ($708,651) • Reserve for a transfer to the Children's Trust ($1,601,953) • Contractual Services ($1,430,000) • Revenue Shortfall Reserve for future years ($6,750,485) The "OMNI" is bound to comply with the requirements of Chapter 163.370, Part III "Community Redevelopment." Therefore, the "Budget" was prepared by considering the following eligible activities as mandated: 1. Administrative and overhead expenses directly or indirectly necessary to implement a community redevelopment plan adopted by the agency. 2. Expenses of redevelopment planning, surveys, and financial analysis, including the reimbursement of the governing body or the community redevelopment agency for such expenses incurred before the redevelopment plan was approved and adopted. 3. The acquisition of real property in the redevelopment area. 4. The clearance and preparation of any redevelopment area for redevelopment and relocation of site occupants within or outside the community redevelopment area as provided in s. 163.370. 5. The repayment of principal and interest or any redemption premium for loans, advances, bonds, bond anticipation notes, and any other form of indebtedness. 6. All expenses incidental to or connected with the issuance, sale, redemption, retirement, or purchase of bonds, bond anticipation notes, or other forms of indebtedness, including funding of any reserve, redemption, or other fund or account provided for in the ordinance or resolution authorizing such bonds, notes, or other forms of indebtedness. 7. The development of affordable housing within the community redevelopment area. 8. The development of community policing innovations. 9. Expenses that are necessary to exercise the powers granted under s. 163.370, as delegated under s. 163.358. 10. On the last day of the fiscal year of the community redevelopment agency, any money that remains in the trust fund after the payment of expenses pursuant to subsection (6) for such year shall be: (a) Returned to each taxing authority that paid the increment in proportion to the amount of the payment of such taxing authority bears to the total amount paid into the trust fund by all taxing authorities for that year; (b) Used to reduce the amount of any indebtedness to which increment revenues are pledged; (c) Deposited into an escrow account for the purpose of later reducing any indebtedness to which increment revenues are pledged; or (d) Appropriated to a specific redevelopment project pursuant to an approved community redevelopment plan. The funds appropriated for such project may not be changed unless the project is amended, redesigned, or delayed, in which case the funds must be reappropriated pursuant to the next annual budget adopted by the board of commissioners of the community redevelopment agency