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HomeMy WebLinkAbout12776 Submittal-OMNI CRA-Miami-Dade Resolution R1372-07Date: To: From: Subject: Submitted into the public record in connection with Item NA.1 on 10/13/2022 Todd B. Hannon Clerk of the Board Memorandum December 18, 2007 Honorable Chairman Bruno A. Barreiro and Memb-rs, Board of County Commissioners George County Interlocal Agreement Among Miami -Dade County, City of Miami, OMNI CRA and SEOPW CRA R#1372-07 MIAMFDiADE COUNTY Amended Special Ttein No. 1 This item was adopted at the December 18, 2007 Special Meeting of the Board of County Commissioners with the following amendments: 1) Clarification that the amount of TIF Revenues collected from the SEOPW CRA and budgeted annually for expenditure by the SEOPW CRA from the SEOPW trust fund shall not exceed 50 percent of Increment Revenues collected from projects in Exhibit C of the Global Agreement; 2) Removed the words "though not expressly prohibited" from Section 10 of the Global Agreement that relates to severability; 3) Included in the attached Resolution the directive approved by the Board to include in the proposed budgets prepared for each fiscal year, commencing with FY 2016-17 and ending with FY 2029-2030, proposed appropriations from the general fund in an aggregate equal to $175 million from the SEOPW CRA increment revenues returned to the County: and 4) Corrected for minor scrivener's errors in the Global Agreement. RECOMMENDATION It is recommended that the Board of County Commissioners (Board) adopt the attached resolution approving the (i) Interlocal Agreement (Global Agreement) by and among the County, City of Miami (City), Southeast Overtown/Park West Community Redevelopment Agency (SEOPW CRA), and OMNI Community Redevelopment Agency (OMNI CRA) in substantially the form attached to the resolution; and (ii) the form of the First Amendment to the Omni CRA Interlocal (First Amendment) in substantially the form attached to the Global Agreement and authorizing the County Mayor or his designee to execute both Agreements. SCOPE While the projects in this item are within the City of Miami, which includes portions of Commission Districts 2, 3, 5, 6, and 7, its scope has a countywide and regional impact. FISCAL IMPACT / FUNDING SOURCE The Agreement includes as Exhibit A the First Amendment which will provide for an increase of the OMNI CRA's payments to the County. For the first five years (FY 2007-08 through FY 2011-12), in addition to $1.43 million, the County will receive an amount equal to 35 percent of the tax increment revenues exceeding $1.43 million. Beginning March 31, 2013 and every March 31st thereafter until March 31, 2027, the County will receive the greater of $1.43 million or 35 percent. If the life of the district is extended to 2030 as contemplated in the First Amendment, the OMNI CRA's obligation to remit 35 percent of the tax increment to the County shall be extended for the extension period. The estimated net present value of the additional tax increment revenues to the County for use towards payments of County PAC Bonds and loans is approximately $100 million. 1 ai 1(a S OM N 1 Criq- ia i-Dad , R2svl ► fi�,n R) 372-01 Honorable Chairman Bruno A. Barreiro and Members, Board of County Commissioners Page 2 Submitted into the public record in connection with Item NA.1 on 10/13/2022 Todd B. Hannon Clerk of the Board Under the Global Agreement, funding for the Museum Park and the Port Tunnel will come from OMNI CRA tax increment revenues. Funding in the amount of $20 million towards the Streetcar project is contemplated to come from the County as a result of additional SEOPW tax increment revenues being remitted back to the County beginning in the first fiscal year following the extension of the life (FY 2016- 2017). These new catalytic projects are only feasible upon the pending approval by the CRAs, the City Commission and the Board of the Finding of Necessity and Plan Amendments of each respective CRA as detailed further in this document Future Board action is still required to allocate County funds for the Streetcar project. Additionally, the First Amendment will free up additional capacity in the Convention Development Tax (CDT) revenues and the 20 percent share of the Tourist Development Tax (TDT) revenues. The County's tourist taxes (CDT or Professional Sports Tax, PST) contribution to the ballpark project will increase by $10 million. The County will also retain control of the 20 percent share of the TDT in order to leverage $88 million to be used towards the ballpark project ' This will allow the City to allocate $50 million of its $60 million in CDT funding for parking to support the ballpark and any other eligible activities at the Orange Bowl site. TRACK RECORD / MONITORING The Community Redevelopment and Economic Policy Analysis Division of the Office of Strategic Budget and Management will be responsible for monitoring the terms of the First Amendment and the portion of the Global Agreement that deals with OMNI and SEOPW CRA issues. The County Executive Office will monitor all negotiations and future agreements associated with baseball and the Orange Bowl site. BACKGROUND On July 18, 2006 the Board approved Resolution R-915-06 authorizing the County Manager to enter into negotiations with the City, the OMNI CRA and the SEOPW CRA. The intention of these negotiations is to develop mutually beneficial amendments to the City, County and both of the Community Redevelopment Areas. As a result of our continued negotiations, the County and City, in conjunction with the CRAs have developed a plan that will provide for: 1) additional tax increment funding support to the Performing Arts Center; 2) development of a separate Finding of Necessity and Plan Amendment for both the OMNI CRA and SEOPW CRA, subject to approval by the CRAs, the City Commission and the Board, to extend the life and adjust current boundaries for the inclusion of catalytic projects such as Museum Park and the Port Tunnel, and also infrastructure and affordable housing; and 3) . the CDT and TDT funding support levels by the City and County towards the construction of the ballpark, associated parking and the Orange Bowl site. The Global Agreement attached to the resolution before the Board is the same one, other than the funding of the Parrot Jungle which has been deleted, as adopted by the City Commission on December 13, 2007 with certain clarifications and changes made by the County Attorney's Office for legal sufficiency. OMNI Community Redevelopment Area and the Performing Arts Center The parties recognize the development of the Carnival Center for the Performing Arts has been an enormous catalyst and remains as such in continuing to attract development, private investment and improvement of the overall quality of life in the OMNI CRA. Over the course of the County's investment in the Carnival Center, the OMNI CRA has experienced substantial growth of its tax roll, which will enable Honorable Chairman Bruno A. Barreiro and Members, Board of County Commissioners Page 3 Submitted into the public record in connection with Item NA.1 on 10/13/2022 Todd B. Hannon Clerk of the Board the City and OMNI CRA to further invest in important future projects, such as the Port Tunnel and Museum Park projects. Under the First Amendment, additional tax increment revenues from the OMNI CRA to the County for the purpose of paying debt service on all outstanding County PAC Bonds and/or loans are as follows: 1. On March 31, 2008 and every March 31st thereafter through March 31, 2012, the first $1.43 million of the tax increment revenue, plus an amount equal to 35 percent of the tax increment revenue from the OMNI CRA exceeding the $1.43 million shall be remitted to the County (as shown in Example 1 in Exhibit A to the First Amendment); 2. Commencing on March 31, 2013 and every March 31st thereafter through March 31, 2027, an amount equal to the greater of $1.43 million or 35 percent of the tax increment revenue from the OMNI CRA shall be remitted to the County (as shown in Example 2 in Exhibit A to the First Amendment); 3. The amounts remitted by the OMNI CRA to the County shall not exceed $25 million in any fiscal year; 4. The First Amendment shall expire on March 31, 2027; 5. If the County sells any additional PAC Bonds or incurs any additional loans with regard to the PAC, the County shall ensure that all documentation relating to such Bonds or loans shall limit the liability of the CRA to the amounts due from the OMNI CRA to the County as provided in this First Amendment; and 6. If the CRA issues bonds and/or incurs indebtedness, such bonds and/or indebtedness are subordinate to all current County PAC Bonds and/or loans. During the course of our negotiations, we have also acknowledged the benefits of further expanding the boundaries and extending the life of the OMNI CRA by three years to March 31, 2030, which is contemplated in the Global Agreement. In order to recognize these subsequent amendments, this First Amendment stipulates that the City and OMNI CRA agree to generate a Finding of Necessity (FON) to substantiate the expansion of boundaries of the OMNI CRA district to include areas such as Bicentennial Park and Watson Island. The purpose of the new boundaries would be to include the Port Tunnel and Museum Park as eligible projects for tax increment revenue support. This FON needs to be approved by the City and OMNI CRA. In a subsequent action, the City and CRA need to approve an amendment to the OMNI Community Redevelopment Plan (Plan Amendment), after a public hearing is held, that would include the expansion of the boundaries (as detailed in the FON) and extension of the life of the OMNI CRA for an additional three years. The Plan Amendment must also include the Port Tunnel and Museum Park projects if they are to receive tax increment revenue support. Upon receipt of the FON and Plan Amendment, as stipulated in the First Amendment, County staff will review, comment, prepare, and recommend the FON and Plan Amendment for Board consideration. The City and OMNI CRA agree that the Board shall consider approving the FON and Plan Amendment only if the OMNI CRA complied with the provisions of Section 163.361(3)(a), Florida Statutes. If the Board is presented with but does not adopt the FON and/or Plan Amendment, the Boards' failure to adopt either or both will not be deemed an event of default under this First Amendment. In other words, the County will continue to receive the tax increment revenues contemplated for the PAC if the boundary changes and life extension are not approved. If the life of the district is extended, the 35 percent contribution from the OMNI CRA to the County will continue through 2030. The First Amendment was adopted by the Economic Development and Human Services (EDHS) Committee at its December 12, 2007 meeting. 3 Honorable Chairman Bruno A. Barreiro and Members, Board of County Commissioners Page 4 Submitted into the public record in connection with Item NA.1 on 10/13/2022 Todd B. Hannon Clerk of the Board Southeast Overtown/Park West Community Redevelopment Area and Street Car Project in addition to our negotiations with the City and OMNI ,CRA, Resolution R-915-06 also set forth terms for amendments to the SEOPW CRA. These terms include recommendations to expand the boundaries and extend the life of the CRA to provide for a variety of commercial and other development projects, including affordable and workforce housing. Due to the many years of flat and even declining assessed values of this CRA and in consideration of the important need for development to occur in this area, staff is supportive of the extension of the current life (which expires in fiscal year 2015-2016) to 2030. Under the Global Agreement, the parties agree to the following: 1. Similar to the steps required of the OMNI CRA, the SEOPW CRA and the City will first need to resubmit an updated FON for the expansion of boundaries as depicted in Exhibit B to the Global Agreement and an updated Plan Amendment. Once this has occurred, staff will submit a recommendation and amendment for Board consideration. 2. The County, the City, and the SEOPW CRA agree that beginning with the extended term of the SEOPW CRA (fiscal year 2016-2017), the SEOPW CRA Trust Fund will continue to receive 95 percent of the tax increment from both the County and City. However, the CRA will only budget 50 percent of tax increment in that year and 'every year thereafter for projects listed in Exhibit C to the Global Agreement, and the remaining 45 percent for each of those projects will be remitted back to each taxing • jurisdiction. In other words, the County and City will get back 45 percent of their respective tax increments from fiscal years 2016-2017 through 2029-2030 for those projects listed in Exhibit C. The County's portion will go into the countywide general fund. 3. Subject to the life extension of the SEOPW CRA and the remittance of 45 percent of the tax increment revenues to the County for those selected projects, the County agrees to fund $20 million towards the Streetcar project. This project also requires approval by the State of Florida and the Metropolitan Planning Organization. It is the primary intent of the City and the County that SEOPW tax increment revenues will be allocated towards the development of affordable housing and related infrastructure in the SEOPW district. Again, as with the OMNI CRA, if the Board is presented with the SEOPW CRA FON and Plan Amendment, but does not adopt either one, it will not be deemed an event of default. In other words, the County will continue to receive the tax increment revenues contemplated for the PAC if the boundary changes and life extension are not approved. Tourist Development Taxes and Convention Development Taxes Once the First Amendment is approved, the increased payments from the OMNI CRA to the County will allow the Convention Development Tax (CDT) revenues currently being used to pay the debt service on PAC bonds and loans to be available to fund the County's occupancy costs of the Carnival Center. This will in turn allow the TDT revenues currently budgeted for the Carnival Center to become available for use towards the ballpark, which is contemplated to cost $515 million (not including the $10 million for demolition of the existing Orange Bowl and infrastructure). The Global Agreement also changes the manner in which the County and City will provide funding for the ballpark. Previously, the City was going to issue $60 million of CDT debt and $48 million of TDT debt for a total contribution of $108 million. The estimated total value over a 30-year period of the 20 percent TDT revenues is approximately $88 million. However, due to the limitations of the City's secondary pledge capacity, the City can only leverage $48 million of the $88 million. The City also needs a revenue source to help fund the parking to support the ballpark and balance of the Orange Bowl site. Therefore, Honorable Chairman Bruno A. Barreiro and Members, Board of County Commissioners Page 5 Submitted into the public record in connection with Item NA.1 on 10/13/2022 Todd B. Hannon Clerk of the Board the Global Agreement provides that the County will issue $88 million of TDT debt on behalf of the City for the ballpark. To do so, as mentioned above, the County will retain control of the 20 percent TDT revenues. The City's direct CDT contribution for the ballpark will be reduced from $60 million to $10 million. This will allow the City to be able to allocate $50 million of CDT funding for parking and any other eligible activities at the Orange Bowl site. The additional $40 million of TDT funding and an additional $10 million of tourist tax funding (CDT or PST) will be used to replace the City's $50 million of CDT funding now being used for the parking at the Ballpark and any other eligible activities at the Orange Bowl site. This will enable the ballpark project to be fully funded. Also, while the Global Agreement does not attach a Baseball Stadium Agreement (BSA), it does include a condition subsequent that requires a binding BSA to be executed among the City, County, and the Florida Marlins, L.P. (Team). In the event a BSA is not executed, the funding commitments to the PAC as set forth in the First Amendment to the OMNI CRA Interlocal, and to the New Orange Bowl as set forth in this Agreement, shall be void. However, the County will still keep the 20 percent of TDT it currently receives. Furthermore, it is required that the BSA will include the following provisions: 1. The total cost of the Baseball Project will not exceed $515 million. 2. The Team's contribution cannot be less than $155 million. 3. The Team will not request more than 6,000 parking spaces at the new site. 4. The Team, County, and City will act in good faith and negotiate the final BSA. Extension of Reverter Date The City and SEOPW have requested the extension of the reverter date on three blocks located In Overtown (Block 45, Block 56, and portions of Block 36), which are due to revert to the County on December 31, 2007. Under this agreement, the County agrees to place an item for Board consideration at its first meeting in January 2008 to either: 1) extend the reverter date if the County has not yet recorded the Quit Claim deeds in its possession, or 2) reconvey the properties in accordance with applicable law if the Quit Claim deeds have been recorded. It is our intent to file such deeds on the first business day after December 31, 2007. If the Board is presented with an item to extend the reverter date or reconvey the properties, but does not adopt either one, it will not be deemed an event of default under the Global Agreement. In other words, if the properties remain with the County, the Global Agreement will not be void. Waivers Under the Global Agreement, the County does agree to waive: 1) any claims it may have to approve annual budgets for the OMNI and SEOPW CRAs for fiscal years prior to October 1, 2008, and 2) the 1.5 percent administrative fee chargeable to the OMNI and SEOPW CRAs. Attachments is ant County ''-rage Submitted into the public record in connection with Item NA.1 on 10/13/2022 Todd B. Hannon Clerk of the Board N.EMORANDUM (Revised) TO: Honorable Chairman Bruno A. Barreiro DATE: December 18, 20.07 and Members, Board of County Commissioners FROM: R. A. Cuevas, Jr.. County Attorney SUBJECT: Amended Special Item No,. 1 Please note any items checked. "4-Day Rule" ("3-Day Rule" for committees) applicable if raised 6 weeks required between first reading and public hearing 4 weeks notification to municipal officials required prior to public hearing Decreases revenues or increases expenditures without balancing budget Budget required Statement of fiscal impact required Bid waiver requiring County Manager's written recommendation Ordinance creating a new board requires detailed.County Manager's report for public hearing Housekeeping item (no policy decision required). No committee review Approved Veto Override Mayor RESOLUTION NO. Submitted into the public record in connection with Item NA.1 on 10/13/2022 Todd B. Hannon Clerk of the Board Amended Special Item No. 1 12-18-07 1372-07 RESOLUTION APPROVING INTERLOCAL AGREEMENT AMONG MIAMI-DADE COUNTY, CITY OF MIAMI, OMNI COMMUNITY REDEVELOPMENT AGENCY AND SOUTHEAST OVERTOWN PARK WEST COMMUNITY REDEVELOPMENT AGENCY WITH RESPECT TO EXPANSION AND EXTENSION OF TERM OF SUCH OMNI AND SOUTHEAST OVERTOWN/ PARK WEST DISTRICTS IN ORDER TO FUND CERTAIN CAPITAL PROJECTS, INCLUDING NEW MARLINS BASEBALL STADIUM, PORT TUNNEL AND MUSEUM PARK; APPROVING FIRST AMENDMENT TO THE OMNI CRA INTERLOCAL AGREEMENT AMONG MIAMI-DADE COUNTY, CITY OF MIAMI AND OMNI COMMUNITY REDEVELOPMENT AGENCY; AUTHORIZING MAYOR OR DESIGNEE TO EXECUTE AND DELIVER SAID INTERLOCAL AGREEMENTS; AND DIRECTING MAYOR AND COUNTY MANAGER TO INCLUDE CERTAIN PROPOSED APPROPRIATIONS IN PROPOSED BUDGETS PREPARED FOR EACH FISCAL YEAR COMMENCING FISCAL YEAR 2017 AND ENDING FISCAL YEAR 2030 WHEREAS, this Board wishes to accomplish the purposes outlined in the accompanying memorandum, a copy of which is incorporated in this resolution by reference, NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that: Section 1. The Board approves (i) the Interlocal Agreement among Miami -Dade County, the City of Miami, the Omni Community Redevelopment Agency and the Southeast/Overtown Community Redevelopment Agency in substantially the form attached to this resolution as Exhibit "A" (the "Global Interlocal Agreement") and (ii) the First Amendment to the Omni CRA Interlocal Agreement among Miami -Dade County, the City of Miami, and the Omni Community Redevelopment Agency in substantially the form attached to this resolution as Exhibit "B" and authorizes execution and delivery of each Interlocal Agreement by the Mayor or his designee. Section 2. The Board directs the County Mayor and the County Manager to include in the proposed budgets prepared for each fiscal year commencing with, fiscal year 2017 and ending with fiscal 1 Submitted into the public record in connection with Item NA.1 on 10/13/2022 Todd B. Hannon Amended Clerk of the Board Special Item No. 1 Page No. 2 year 2030 proposed appropriations from the general fund in an aggregate amount equal to $175 million from the SEOPW CRA Increment Revenues returned to the County under Section 5(e) of the Global Interlocal Agreement for the following projects for the removal of slum and blight in Overtown and the surrounding neighborhoods: (a) $75 million for the development of affordable rental and homeownership projects in Overtown, including $8 million for the Alonzo Mourning Project; (b) $50 million for affordable rental housing/mixed use development at the MLK Transit Village; (c) $5 million for the revitalization of the MLK Business Center; (d) $10 million for a Children's Learning Center at Moore Park; (e) $10 million for the Children's Zone Project; (f) $5 million for the Haitian Community Center; (g) $5 million for the Mama Hattie's House Project; (h) $5 million for the Caleb Center renovations; and (i) $10 million for an African American Museum. The foregoing resolution was offered by Commissioner , who moved its adoption. The motion was seconded by Commissioner and upon being put to a vote, the vote was as follows: Jose "Pepe" Diaz Carlos A. Gimenez Joe A. Martinez Dorrin D. Rolle Katy Sorenson Sen. Javier D. Souto Bruno A. Barreiro, Chairman Barbara J. Jordan, Vice -Chairwoman Audrey M. Edmonson Sally A. Heyman Dennis C. Moss Natacha Seijas Rebeca Sosa The Chairperson thereupon declared the resolution duly passed and adopted this 18`' day of December, 2007. This resolution shall become effective ten (10) days after the date of its adoption unless vetoed by the Mayor, and if vetoed, shall become effective only upon an override by this Board. MIAMI-DADS COUNTY, FLORIDA BY ITS BOARD OF COUNTY COMMISSIONERS HARVEY RUVIN, CLERK Approved by County Attorney as By: to form and legal sufficiency. '_ Deputy Clerk Geri Bonzon-Keenan