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Home My WebLink AboutCRA-R-25-0047 Cover Memo-SUBTHIS DOCUMENT IS A SUBSTITUTION TO ORIGINAL. BACKUP ORIGINAL CAN BE SEEN AT THE END OF THIS DOCUMENT SEOPW CRA Board of Commissioners Meeting September 11, 2025 THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE COVER MEMORANDUM To: Board Chair Christine King and Date: September 11, 2025 File: Members of the SEOPW CRA Board From: James D. McQueen Executive Director Subject: Approve and Adopt SEOPW CRA General Operating and Tax Increment Fund Budget, FY 2025-26; Employee Handbook. Enclosures: Exhibit "A" Exhibit `B" BACKGROUND: A Resolution of the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency ("SEOPW CRA"), with attachment(s), approving and adopting the proposed General Operating and Tax Increment Fund ("TIF") Budget of the SEOPW CRA ("Budget"), attached and incorporated herein as Exhibit "A," in the amount of Two Hundred Eighty Million Nine Hundred Ninety -Seven Thousand Six Hundred Ninety - Two Dollars and Zero Cents ($280,997,692.00) ("Funds"), for the fiscal year commencing October 1, 2025 and ending September 30, 2026 ("FY 2025-2026"), further approving the compensation of the Executive Director for FY 2025-2026, further directing the Executive Director to transmit copies of said budget to the City of Miami ("City") and Miami -Dade County ("County"), further amending and ratifying the implementation of the SEOPW CRA's Employee Handbook ("Handbook"), effective October 1St, 2023, in substantially the form attached as Exhibit "B." As a note, One Hundred Sixty -One Million Nine Hundred Ten Thousand Dollars and Zero Cents ($161,910,000.00) of the proposed Budget includes the proceeds from the Series 2025A Bond Issuance and the related Bond Purchase Agreement executed on August 18, 2025. It is recommended that the Board of Commissioners of the SEOPW CRA approve and adopt the attached Resolution, approving and adopting the proposed Budget, further approving the compensation of the Executive Director for FY 2025-2026, further amending and ratifying the Handbook, effective October 1St, 2023. JUSTIFICATION: Pursuant to Section 163.387, Florida Statutes, the SEOPW CRA is bound to annually prepare and transmit a proposed budget to the City and County. Lastly, Section 163.356, Florida Statutes, permits a community redevelopment agency to directly employ staff for the operation of the agency. On March 31St, 2014, pursuant to Resolution No. CRA-R-14-0023, the current SEOPW CRA's Handbook was authorized by the Board of Commissioners of the SEOPW CRA. BUDGET SUMMARY 2026's SEOPW CRA Budget amounts to $280,997,692.00. The Budget includes the following revenue sources: • $22,188,418.00 — County TIF • $34,618,589.00 — City TIF 1 File # 18125 - Cover Memo -SUB THIS DOCUMENT I5 A SUBSTITUTION TO ORIGINAL. BACKUP ORIGINAL CAN BE SEEN AT THE END OF THIS DOCUMENT • $4,027,358.00 — Non-TIF Revenue fund • $2,252,986.00 — Children's Trust Contribution • $173,265,830.00 — Bond Series 2025A Proceeds • $44,644,511.00 — 2025's carryover fund balance SEOPW CRA Board of Commissioners Meeting September 11, 2025 Administrative expenses total $6,709,741.00, including employee salaries, fringes, and other related operating expenses, and which represents eleven and eighty-one hundredths percent (11.81%) of total budgeted expenditures, satisfying the twenty percent (20%) cap for administrative costs allowed by the Interlocal Agreement(s), and Section 163.387, Florida Statutes. This allocation of funds contemplates a two percent (2%) salary increase in the Executive Director's compensation, effective October 1st, 2025. Operating expenses total $95,769,235.00 and include: $65,349,255.00 for Grants and Aid, including: • Miami Worldcenter and Avanti economic incentive payments ($6,816,055.00). • Housing Subsidy Agreements ($8,155,370.00). • A reserve for Eligible Activities under Chapter 163 ($11,823,588.75). • Proceeds of Bond Series 2025A for reimbursement of ($17,528,049.25) contributed by the SEOPW CRA in FY 2025 for the construction of the Tri-Rail Extension. Said funds will be allocated towards affordable housing/infrastructure projects. • Other grants and projects such as affordable/workforce housing, arts, culture, infrastructure, job creation and quality of life ($21,026,192.00). $7,803,168.00 for Interfund Transfer, including: • Refund to the County for the Global Agreement ($4,700,000.00). • Grant to City for Construction of Gibson Park debt service ($850,182.00). • Disbursement to the Children's Trust ($2,252,986.00). $14,207,725.00 for Debt Service payment/reserves $2,500,000.00 for Purchase of Land/Infrastructure $5,704,354.00 for Professional and Contractual Services $204,733.00 for Construction in Progress Reserve for designated purposes total $178,318,716.00 and include: $132,471,951.00 — Reserve for capital projects to be financed with the Bond Series 2025A issuance. $21,067,756.00 — Reserve for refinancing of Bond Series 2014. $2,198,074.00 — Closing cost of the Bond Series 2025A issuance. $14,053,577.00 — Reserve for the development of affordable housing projects at 60% AMI. $4,027,358.00 — Reserve for projects funded with the Non-TIF Revenue Source ($739K has not yet been designated). This reserve is meant to underwrite redevelopment expenditures that are not eligible under Section 163.387(6(c)) and (7). $2,000,000.00 — For maintenance (Operating Expenses) of the Agency's owned/rental properties (79 properties). $2,500,000.00 — For policing initiatives within the SEOPW CRA's boundaries. $200,000.00 for Budget Reserve The Budget was prepared by taking into consideration the following eligible activities below, as specified under Section 163.387(6(c)) and (7), Florida Statutes, respectively. 2 THIS DOCUMENT IS A SUBSTITUTION TO ORIGINAL. BACKUP ORIGINAL CAN BE SEEN AT THE END OF THIS DOCUMENT SEOPW CRA Board of Commissioners Meeting September 11, 2025 s. 163.387, Florida Statutes: 6(c) The annual budget of a community redevelopment agency may provide for payment of the following expenses: 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 form 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 form 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. (7) On the last day of the fiscal year of the community redevelopment agency, any money which 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 which paid the increment in proportion that the amount of 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. Any redevelopment project apart from the activities mentioned above will be funded from non -tax funding (non- TIF) sources. 3 SUBSTITUTED SEOPW Board of Commissioners Meeting September 11, 2025 SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE MEMORANDUM To: Board Chair Christine King and Members of the CRA Board From: James McQueen Executive Director BACKGROUND: Date: September 11, 2025 File: 18125 Subject: Adopt SEOP RA Budget FY 2025-26 an• mployee Handbook Enclosures: File 18125 - Exhibit A Fi # 18125 - Exhibit B A Resolution of the Board of Commissioners of the outheast Overtown/Park West Community Redevelopment Agency ("SEOPW CRA"), with atta ent(s), approving and adopting the proposed General Operating and Tax Increment Fund ("TIF") : udget of the SEOPW CRA ("Budget"), attached and incorporated herein as Exhibit "A," in the . t of Two Hundred Eighty Million Nine Hundred Ninety -Seven Thousand Six Hundred Ninety-Tw . Dollars and Zero Cents ($280,997,692.00) ("Funds"), for the fiscal year commencing October 1, 5 and ending September 30, 2026 ("FY 2025-2026"), further approving the compensation of the ecutive Director for FY 2025-2026, further directing the Executive Director to transmit a copy o e Budget to the City of Miami ("City") and Miami -Dade County ("County"), further revising and tifying the amendment to, and implementation of, the SEOPW CRA's Employee Handbook ("Hand . ok"), in substantially the form attached as Exhibit `B," effective October 1 St, 2023. As a note, One Million Six H , dred Sixty -One Thousand Nine Hundred Ten Dollars and Zero Cents ($161,910,000.00) of the pro s sed Budget includes the proceeds from the Series 2025A Bond Issuance and the related Bond Purch .e Agreement executed on August 18, 2025. It is recommended tha e Board of Commissioners of the SEOPW CRA approve and adopt the attached Resolution, approvi► , and adopting the proposed Budget, further approving the compensation of the Executive Direct►. for FY 2025-2026, further revising and ratifying the amendment to, and implementation ' , the Handbook (See Exhibit `B"), effective October 1st, 2023. JUSTIF ' ATION: Purs t to Section 163.387, Florida Statutes, and the Interlocal Agreement(s), the SEOPW CRA is bo . d to annually prepare and transmit a proposed budget to the City and County. SUBSTITUTED Lastly, Section 163.356, Florida Statutes, permits the SEOPW CRA to directly employ staff for its operations.' BUDGET SUMMARY 2026's SEOPW CRA Budget amounts to $280,997,692.00. The Budget includes the following enue sources: • $22,188,418.00 — County TIF • $34,618,589.00 — City TIF • $4,027,358.00 — Non-TIF Revenue fund • $2,252,986.00 — Children's Trust Contribution • $173,265,830.00 — Bond Series 2025A Proceeds • $44,644,511.00 — 2025's carryover fund balance Administrative expenses total $6,709,741.00, including emplo e salaries, fringes, and other related operating expenses, and which represents eleven and eighty-e hundredths percent (11.81%) of total budgeted expenditures, satisfying the twenty percent (20%) ap for administrative costs allowed by the Interlocal Agreement(s), and Section 163.387, Florida St. tes. This allocation of funds contemplates a two percent (2%) salary increase in the Executive Direct' s compensation, effective October 1st, 2025. Operating expenses total $95,769,235.00 and includ $65,349,255.00 for Grants and Aid, including: • Miami Worldcenter and Avanti econis incentive payments ($6,816,055.00). • Housing Subsidy Agreements ($', 55,370.00). • A reserve for Eligible Activ es under Chapter 163 ($11,823,588.75). • Proceeds of Bond Ser s 2025A for reimbursement of ($17,528,049.25) contributed by the SEOPW CRA in F 025 for the construction of the Tri-Rail Extension. Said funds will be allocated towards . ordable housing/infrastructure projects. • Other grants . d projects such as affordable/workforce housing, arts, culture, infrastructure, job creation an..uality of life ($21,026,192.00). $7,803,168.0 ' ' or Interfund Transfer, including: • Re nd to the County for the Global Agreement ($4,700,000.00). rant to City for Construction of Gibson Park debt service ($850,182.00). On March 31st, 2014, pursuant to Resolution No. CRA-R-14-0023, the Handbook was last authorized by the Board of Commissioners of the SEOPW CRA. Page 2 of 7 SUBSTITUTED • Disbursement to the Children's Trust ($2,252,986.00). $14,207,725.00 for Debt Service payment/reserves $2,500,000.00 for Purchase of Land/Infrastructure $5,704,354.00 for Professional and Contractual Services $204,733.00 for Construction in Progress Reserve for designated purposes total $178,318,716.00 and include: $132,471,951.00 — Reserve for capital projects to be financed with the Bond Series 2► 5A issuance. $21,067,756.00 — Reserve for refinancing of Bond Series 2014. $2,198,074.00 — Closing cost of the Bond Series 2025A issuance. $14,053,577.00 — Reserve for the development of affordable housing projects . 60% AMI. $4,027,358.00 — Reserve for projects funded with the Non-TIF Revenue So a ce ($739K has not yet been designated). This reserve is meant to underwrite redevelopment expendi r. es that are not eligible under Section 163.387(6(c)) and (7). $2,000,000.00 — For maintenance (Operating Expenses) of the A cy's owned/rental properties (79 properties). $2,500,000.00 — For policing initiatives within the SEOPW CRA'. boundaries. $200,000.00 for Budget Reserve The Budget was prepared by taking into considerat the following eligible activities below, as specified under Section 163.387(6(c)) and (7), Florida Sta -s, respectively. s. 163.387, Florida Statutes: 6(c) The annual budget of a community re . velopment agency may provide for payment of the following expenses: 1. Administrative and over' - ad expenses directly or indirectly necessary to implement a community redevelopment adopted by the agency. 2. Expenses of rede -lopment planning, surveys, and financial analysis, including the reimbursement of the overning body or the community redevelopment agency for such expenses incurred before the - development plan was approved and adopted. 3. The acqui ion of real property in the redevelopment area. 4. The c arance and preparation of any redevelopment area for redevelopment and relocation of site oupants within or outside the community redevelopment area as provided in s.163.370. 5. e repayment of principal and interest or any redemption premium for loans, advances, b' ds, 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 form 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 form of indebtedness. Page 3 of 7 SUBSTITUTED 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 del under s. 163.358. (7) On the last day of the fiscal year of the community redevelopment agency, any remains in the trust fund after the payment of expenses pursuant to subsection (6) for such y ted ey which shall be: (a) Returned to each taxing authority which paid the increment in proportion at the amount of payment of such taxing authority bears to the total amount paid into the u fund by all taxing authorities for that year. (b) Used to reduce the amount of any indebtedness to which increm•, . revenues are pledged. (c) Deposited into an escrow account for the purpose of late - reducing any indebtedness to which increment revenues are pledged; or (d) Appropriated to a specific redevelopment project suant to an approved community redevelopment plan. The funds appropriated for such oject may not be changed unless the project is amended, redesigned, or delayed, in whi case the funds must be reappropriated pursuant to the next annual budget adopted by th •oard of commissioners of the community redevelopment agency. Any redevelopment project apart from the activiti• mentioned above will be funded from non -tax funding (non-TIF) sources. Page 4 of 7