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Home My WebLink AboutCRA 2019-01-003 Tax Increment Update RESOLUTION NO. CRA 2019-01-003 A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF MIAMI GARDENS, FLORIDA, APPROVING THE UPDATED TAX INCREMENT AND TIF PROJECTIONS OF THE NORTHWEST 27TH AVENUE COMMUNITY REDEVELOPMENT PLAN AS SHOWN ON ATTACHMENTS "A" AND "B"; PROVIDING FOR ADOPTION OF REPRESENTATIONS; PROVIDING FOR INSTRUCTIONS TO THE CITY CLERK; PROVIDING AN EFFECTIVE DATE. WHEREAS, on October 24, 2018, the Community Redevelopment Agency ("CRA") Board and City Council approved the NW 27th Avenue Community Redevelopment Plan, which was then transmitted to Miami-Dade County for review, and WHEREAS, after meeting with the Miami-Dade Tax Increment Financing, the Coordination Committee, and the Office of Budget and Management, the CRA Plan needed to be updated to reflect the taxable value (versus the assessed values) of the properties with the CRA boundary as well as reflect the percentage that will be allocated to the North Corridor portion of the Strategic Miami Area Rapid Transit (SMART) Plan, and WHEREAS, these updates only affect the Tax Increment and Tax Increment Financing section on page 13 through 14 and the Projection of TIF Revenue section, pages 48 through 50, of the NW 27th Avenue Community Redevelopment Plan, and WHEREAS, all other aspects of the approved Plan remain the same, and WHEREAS, following this CRA Board consideration of the NW 27th Avenue Community Redevelopment Plan, it is then to be considered for approval by the City Council, followed by Miami-Dade County Commission, and NOW THEREFORE, BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF MIAMI GARDENS, AS FOLLOWS: Section 1 . ADOPTION OF REPRESENTATIONS: The foregoing Whereas paragraphs are hereby ratified and confirmed as being true, and the same are hereby made a specific part of this Resolution. Section 2. AUTHORIZATION: The City of Miami Gardens Community Redevelopment Agency hereby approves the updated Tax Increment and TIF projections of the Northwest 27th Avenue Community Redevelopment Plan as shown on attachments "A" and `B,° and recommends that the City Council for the City of Miami Gardens approves the same. Section 3: INSTRUCTIONS TO THE CITY CLERK: The City Clerk is hereby authorized to deliver a certified copy of this Resolution to the Board of Commissioners, Miami-Dade County, Florida. Section 4. EFFECTIVE DATE: This Resolution shall take effect immediately upon its final passage. PASSED AND ADOPTED BY COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF MIAMI GARDENS AT ITS REGULAR MEETING HELD ON MAY 16, 2019. (L OLIVOR GILBERT, III, CHAIRPERSON ATTEST: MARIO BATAILLE, BOARD CLERK PREPARED BY: SONJA KNIGHTON DICKENS, ESQ. 2 Resolution No. CRA 2019-001-003 SPONSORED BY: CAMERON D. BENSON, Moved by: Board Member Leon Seconded by: Board Member Williams VOTE: 4-0 Chairperson Oliver Gilbert, III X (Yes) (No) Vice Chairperson Rodney Harris (Yes) (No) (absent) Board Member Katrina Wilson X (Yes) (No) Board Member Erhabor Ighodaro, Ph.D. (Yes) (No) (absent) Board Member Lillie Q. Odom (Yes) (No) (absent) Board Member Reggie Leon X (Yes) (No) Board Member David Williams Jr X (Yes) (No) 3 Resolution No. CRA 2019-001-003 Redevelopment Act to carry out the purposes and intent of this Redevelopment Plan, including the use of the power of eminent domain, if delegated to it by the City. It is the intent of the City of Miami Gardens and the NW 27th Avenue CRA that when references are made in this Plan to the City or CRA in order to exercise power or authority granted by the Redevelopment Act, then such power and authority are deemed to have been granted and exercisable in connection with the implementation of this Plan. This Plan contains provisions that encourage actions to be taken by the City of Miami Gardens, including the City Council and the divisions, departments, and boards of the City. All actions pursuant to the Plan are subject to City review. Community Redevelopment Plan Any public redevelopment activities authorized by the Community Redevelopment Act and funded through tax increment financing must be consistent with Section 163.360 of the Florida Statutes and a Redevelopment Plan that is approved by both the City Council and the CRA, who shall recommend the approval of such the redevelopment plan to the governing body, the Miami-Dade County Board of County Commissioners. The changing j conditions of the community may call for modifications to the Plan. A Redevelopment Plan is a living document, therefore may be amended as deemed necessary, upon approval by the City Council and CRA. Tax Increment and Tax Increment Financing Tax Increment Financing (TIF) is the CRA's main source of funding, as provided for in Chapter 163, Part III of the Florida Statutes. All Florida CRAs are dependent taxing districts and therefore depend upon other taxing districts to make contributions to their trust fund. TIF funds are a result of the added value of property values within a CRA boundary after the base year has been set by the CRA's governing body. It is important to note that this is not an additional tax; it is a portion of the existing property tax. The Miami Gardens NW 27th Avenue CRA is expected to be officially established in 2018. The taxable value of the properties in the base year (2018) is estimated at $333,245,425. Miami Gardens CRA 13 2018 Community Redevelopment Plan __ the Trust Fund for the proposed new CRA boundaries is established, the current Taxable Value, at that time, will be the Base Year for the CRA. Annual Growth Rate The growth rate for existing properties is established for this study at 2% per year. This rate reflects the increase in value of properties that are already developed. Although this rate is relatively low, it is appropriate for planning purposes in order to avoid projecting revenue at an excessive rate. New Development Scenario The most significant increase in Taxable Value will occur from new development projects in the designated boundaries. The new development projects listed below were provided by the City of Miami Gardens based on applications for Building Permits and Site Plans. Miami Gardens Performing Arts Center Miami Gardens Culinary Center Bridge Point Commerce Center Gardens Promenade Jessie Trice Health Center 7-Eleven 24 Hour Fitness Princeton Park Townhomes Murphy Gas Station Redevelopment of 40 Acre Site Miami Gardens Apartments Miami Gardens Retail Hotel 4.92-Acre Future Development Site Estimates of Taxable Value were derived from examination of similar properties in the area and the value placed on those properties by the Property Appraiser's Office. In addition, there are smaller properties (residential and commercial) that are likely to develop during the study time frame. An assumption of additions of single parcels has also been included in the projections. Projection of TIF Revenue TIF is generated based on an increase in Taxable Value with the Ad Valorem rates of the City and County applied against this value. The Tax Rate for this study is 11.6032 mills (Miami Gardens of 6.9363 and Miami-Dade County of 4.6669). Additionally, the originating Miami Gardens CRA 48 2018 Community Redevelopment Plan $43,365,226 $16,161,571 $27,203,655 $9,067,885 $46,591,047 $17,295,702 $29,295,345 $9,765,115 $49,937,975 $18,469,503 $31,468,472 $10,489,491 $53,408,436 $19,683,770 $33,724,666 $11,241,555 ■�' ' $57,004,899 $20,939,310 $36,065,589 $12,021,863 ' ' • $60,729,884 $22,236,951 $38,492,933 $12,830,978 $64,585,961 $23,577,532 $41,008,429 $13,669,476 Source: (PMG Associates, Inc.) The CRA is predicted to generate revenue from TIF of approximately $182,429 in the first year. TIF revenues will increase to over $1 million annually in year 4 of the CRA. In the 30 years lifetime of the CRA, over $64 million may be raised to complete the needs of the community. This estimate is based on current market conditions, and may change. The CRA can also leverage funds through grants and other funding programs to achieve a more vigorous program. A public-private partnership may be sought to develop the remaining undeveloped property in the "NW 27th Avenue Corridor Greenpowerment Zone" utilizing the incentives under the Florida Brownfields Redevelopment Act. Land Acquisition The acquisition of land within the CRA is a tool that could help to support the overall goals and activities of the CRA. Property owned by the CRA can be marketed to encourage development or redevelopment into the uses that are desired. New development will increase the tax base, create jobs, and support the livability of the area. At this time, the City owns significant amount of land in the CRA, which allows for the control of how it is developed. It is not recommended for the CRA to acquire or liquidate any properties at this time. Planning and Pursuit of Land Use and Zoning Changes Due to the recently added Entertainment Overlay and Planned Corridor Development Districts, the zoning districts are not proposed for any changes. However, the application of Miami Gardens CRA 50 2018 Community Redevelopment Plan