The URL can be used to link to this page

Home My WebLink AboutSubmittal-OMNI CRA-Financial Overview MemoSubmitted into the eublic record for i em(s) Y .. )1_ t\� Z on q lit I Vj . City Clerk OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE MEMORANDUM To: Honorable Mayor and City Commissioners From: Isiaa Jones, Executive Director Date: Thursday, September 12, 2024 Subject: Key Matters Regarding the Omni CRA — Extension, Boundary Expansion, and Financial Overview Enclosures: This memo outlines important topics concerning the Omni Community Redevelopment Agency (CRA), which have been raised for discussion. These topics include the proposed extension of the CRA's life, potential expansion of its boundaries, as well as financial impacts and operational updates. The goal is to provide clarity on these issues and present solutions that support the CRA's mission to revitalize and improve the designated areas within the district. 1. Extension of the Omni CRA's Life Background: The item to extend the Omni CRA's lifespan until 2047 will be heard on Thursday, September 12th, 2024, to allow continued redevelopment efforts and long-term planning within the current district boundaries. The extension ensures that projects aimed at stimulating economic growth, increasing affordable housing, and enhancing public infrastructure will have adequate time and resources for completion. Importance of the Extension: The extension is crucial for the ongoing revitalization efforts in the Omni CRA district. Without the extension, the CRA's operations would cease in the near future, halting momentum on current projects and potentially affecting long-term commitments such as infrastructure investments and community housing developments. Extending the CRA's life ensures sustained progress and the ability to meet both immediate and future community needs. The item ratifies what was already approved by the County on June 16th, 2020, ratified by the CRA board on October, 2021. In addition, please see priority projects below: a. Performing Arts Center Debt Service until September 30, 2027 b. Port Tunnel Debt Service Approximately $4 Million until 2030 c. Current 35% Giveback to county until 2027 not subject to 163 d. Starting 2027 CRA will fund 35% until 2047 not subject to 163 e. SMART PLAN Beach Corridor Omni CRA portion $50 Million ��Q� Svbtn)\-Iro\- ORm\ CAA - -'1\44nc16\ OVQfv\ew t o Submitted into the ublie record for i em(s) ., (1 S nl.'1_ on CI L ��4 City Clerk f. Maurice Ferre Park ($28 Million for Capital Improvements) g. Underdeck green Space (Funds to not exceed $1 Million Annually) h. Provide funds for community benefits package School Board Project i. Affordable and workforce housing rehab and development j. Land acquisition k. Small Business assistance through grants or loans Other Features • Admin Fee- 1.5% • Procurement - Already Adopted • Cap on Budget - 20% • Community Benefit Agreement • County may appoint Representation • Inspector General Review • Recovery of Grant Funds and Clawbacks • Safeguard for resident displacement • Affordable and Mixed income • Annual Budget • Ethics Training Next Steps: Approval of the extension will allow the CRA to continue its operations under its current boundaries. This includes ongoing initiatives focused on affordable housing, economic development, and public infrastructure improvements. 2. Expansion of CRA Boundaries Background: In July of 2023, the Omni CRA and City Commission considered expanding its boundaries to incorporate additional regions, specifically parts of Allapattah. While the expansion could potentially bring new areas into the redevelopment fold, several issues have been identified that require attention. Issues Identified: a Submitted into the ublic record •rit m(s) YE,19 �1et on ' City Clerk SEOPW and OMNI Expansion 3 wear . t i .ice , a'"^ 151511 0 025 0.5 1 Mies ITc MIMI it .a.».r r.m I 1. Overlap with SEOPW CRA: One of the key challenges with the proposed expansion is that parts of the new boundary overlap with the Southeast Overtown/Park West (SEOPW) CRA. This overlap raises jurisdictional concerns and could lead to complications in project management and funding allocations between the two CRAs. It is essential that each CRA maintains clear and distinct boundaries to avoid conflicts in redevelopment objectives and financial management. 2. Watson Island Exclusion: Additionally, it has been expressed that Watson Island, which was initially part of the proposed expansion, may be excluded from the final boundary adjustment. The inclusion of Watson Island is not consistent with the current redevelopment goals and would complicate the expansion process. Proposed Solution: To resolve these issues, the existing boundary expansion plan must be rescinded, and a new, more detailed process should be undertaken. This would involve commissioning a professional survey and developing a legal description of the new boundary area. This process mirrors the steps taken to establish a new CRA, ensuring accuracy and compliance with all regulations. Once the boundary is redefined, the Finding of Necessity (FON) and the redevelopment plan will either need to be amended or the creation of a separate CRA for Allapattah should be considered. This ensures a clear, legally sound foundation for future projects in the new areas. Submitted into the pliblic �+ record f r ite (Y�� . 1 Z Mil. i Z oil q %t Zit,' . City Clerk Please see "section 4" below for "Timeline for Boundary Adjustments or Creation of a New CRA". 3. Financial Considerations Impact on the General Fund: One of the primary financial concerns raised was how much of the General Fund would be impacted by the boundary expansion and other development initiatives. While the CRA's core funding comes from Tax Increment Financing (TIF), which is generated by the increased property values within the district, it is important to understand if and how the General Fund may be tapped. The below table shows the potential and projected TIF for a new CRA with 50% giveback to the City and County. An expansion of the Omni CRA boundaries forgoes an additional $897,922,919 for Allapattah. (These numbers must be vetted by CRA, City and County and can be negotiated up accordingly for more giveback to the CRA) • Please see table below 1 2026 goat O27 r Z02� zo2s ;lit .017 ( $2,007,705 *3,066,963 I $4,137✓6791 $6.250.826 I :8.397.368 1 2031 2032 203 201 2035 2035 Total $7,678.306 $8,794,672 $10,047,630 $11,337,973 $12,067,129 214,036.160 2037 2038 2039 200 2042 (Total $15.446.262 $18,898,667 $18,394,644 $19,936,500 321,522,582 223,167,277 2044 2045 2046 2947 2Mt Total ITotal 'Total $24,841,012 $26,675259 $28.361.634 030.201,397 02,096,466 $34,048,367 2040 $36,068,835 2060 $38,129,817 2061 $40.262,623 2062 $42.459.416 2153 $44,722,215 2054 $47,062,899 2066 $49,463,603 2066 $61,926,125 205 2062 2667 =54,472,926 2066 07,096,131 2169 168,798,032 2080 $62,680,990 Tout 165,447437 ! SO8 399517 101,44iI,F.96 Annual Contributions from the City and County: 2064 5a 513,134 For the current fiscal year, the following contributions have been made to the Omni CRA: • City of Miami TIF Contribution: $25,246,062 • Miami -Dade County TIF Contribution: $16,184,693 • Total Returned to Miami -Dade County: 35% of the total TIF collected from the CRA's increment is returned to the County. This is part of the 2007 interlocal agreement between the CRA and Miami -Dade County. Submitted into the Rublic record r it m(s) �, IL k Q0. Z. on City Clerk These funds are the primary source of revenue for the CRA's projects, including affordable housing, public infrastructure improvements, and economic development initiatives. 4. Timeline for Boundary Adjustments or Creation of a New CRA (3-6 months) Should the decision be made to proceed with adjusting the boundaries of the Omni CRA or to create a new CRA for Allapattah, the following steps and timeline will be followed: Steps Timeline 1. Community Meetings 2. Finding of Necessity (FON) and Redevelopment Plan "Prepared — updates required." 3. Survey with Legal Description "Consultation with local planning agency at City or County and consistent with the Comprehensive Plan (Boundary)." 4. Notice to Taxing Authority "Taxing authority: a public body that levies or is authorized to levy an ad valorem tax on real property located in a community redevelopment area." fs. 163.340 Sample notices to be provided 2-4 weeks (this may happen simultaneously with Steps 2 & 3 below) 2 -4 weeks (Final process may be much shorter depending on the consultant's time frame for deliverables) 15 days before board meeting 5. City Resolution Establishing that the area is slum and blighted. ➢ Resolution accepting the FON ➢ Resolution accepting Redevelopment Plan ➢ Approval of the Interlocal Agreement City Approval Resolution (This time frame will be dependent on the will of the City to place on the agenda for approval) 6. County Resolution or Ordinance Approving and Establishing for the New CRA ➢ FON Less than three months if going through respective committee Submitted into the p blic record fpr itf m(s) IL c oU lilt 1 Zy . City Clerk ➢ Redevelopment Plan ➢ Interiocal Agreement 7. CRA Created Trust Fund Created ➢ Initial funding ➢ Annual Appropriation 5. Additional Issues Homelessness and Shelter Operations: The Omni CRA is home to two homeless shelters: Miami Rescue Mission and Chapman Partnership, providing vital services to the community. Additionally, the Camillus House, located within the SEOPW CRA, plays a key role in supporting homeless populations in the Allapattah area. Overtown's Inclusion in Omni CRA: Currently, approximately 30% of the Omni CRA's district encompasses parts of Overtown. This area has been a significant focus of redevelopment efforts, and funding has been allocated toward housing and public infrastructure improvements in Overtown. Map showing full boundaries of Omni CRA with Overtown portion of Omni CRA boundary highlighted. Submitted into the pNblic record for 'item(s)�, ��, e D}, 1. on 9 i 1 Z t4 City Clerk 24-Year Financial Overview of Omni CRA: A comprehensive breakdown of the CRA's expenditures over the past 24 years, including the amount spent in Overtown and funds returned to the County, has been requested. This report will be compiled and presented for review to provide transparency on the CRA's financial history. Expenditure Summary (over 24 Years) West of the Trades VS East of the Tracks • West • East