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HomeMy WebLinkAbout2019-118-3247 CRA Plan RESOLUTION NO. 2019-118-3247 A RESOLUTION OF THE CITY COUNCIL 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 INSTRUCTIONS TO THE CITY CLERK; PROVIDING FOR THE ADOPTION OF REPRESENTATIONS; PROVIDING FOR 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, it is recommended that City Council approve the updated NW 27th Avenue Community Redevelopment Plan, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MIAMI GARDENS, FLORIDA 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 Council of the City of Miami Gardens hereby approves the updated Tax Increment and TIF projections of the Northwest 27th Avenue Community Redevelopment Plan as shown on attachments "A" and "B." 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 THE CITY COUNCIL OF THE CITY OF MIAMI GARDENS AT ITS REGULAR MEETING HELD ON MAY 16, 2019. OLIVER GILBERT, III, MAYOR ATTEST: MARIO BATAILLE, CITY`-CLERK PREPARED BY: SONJA KNIGHTON DICKENS, CITY ATTORNEY SPONSORED BY: CAMERON D. BENSON, CITY MANAGER Moved by: Councilman Leon Seconded by: Councilman Williams VOTE: 4-0 2 Resolution No. 2019-118-3247 Mayor Oliver Gilbert, III X (Yes) (No) Vice Mayor Rodney Harris (Yes) (No) (absent) Councilwoman Katrina Wilson X (Yes) (No) Councilman Erhabor Ighodaro, Ph.D. (Yes) (No) (absent) Councilwoman Lillie Q. Odom (Yes) (No) (absent) Councilman Reggie Leon X (Yes) (No) Councilman David Williams Jr X (Yes) (No) 3 Resolution No.2019-118-3247 Page 8 of 31 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 i 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. j 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 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 Page 9 of 31 The revenue generated from TIF can be used for any activities and programs approved in a Community Redevelopment Plan. TIF funds can also cover administrative costs and repayment of revenue bond(s) debt service and fees. It is expected that as the CRA completes redevelopment projects, the future assessed property values will increase, which will then provide for more tax increment income. Significant tax increment revenue is not realized until redevelopment occurs. The authority to issue revenue bonds is another tool of CRAB. Revenue bonds are a type of municipal bond for financing income-producing projects. In the case of a CRA, they are i used to boost redevelopment and over time the CRA can use bonds to finance infrastructure and projects identified in the Redevelopment Plan. As long as it follows the proper approval process, the CRA can use annual funds to pay bond debt. Revenue bonds can accelerate the redevelopment process by funding more improvements. Consistency with City of Miami Gardens Comprehensive Development Master Plan The Community Redevelopment Plan must be in conformity with the City's Comprehensive I Development Master Plan (CDMP) per Florida Statutes. Amendments to the Redevelopment Plan are necessary to keep up with new or revised programs and projects. A review of this Redevelopment Plan was performed by the Local Planning Agency, consisting of the City Council, and it meets the criteria to be in conformity with the City's CDMP. Impact of Redevelopment Efforts on Neighborhoods The process of redevelopment may influence the residents and businesses within the redevelopment area as well as the surrounding area. Avoidance of Displacing Residents and Businesses While none of the projects suggested in this plan may prompt temporary relocation of businesses or residents who may be displaced during the redevelopment work. Should this Miami Gardens CRA 14 2018 Community Redevelopment Plan Page 10 of 31 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. I 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 Page 11 of 31 jurisdictions retain 5% of the increased taxes for Administrative purposes. The projections of TIF are illustrated in Table 2 and include splitting the TIF in Miami Dade County Smart Plan TIF area between the CRA trust fund (75%) and the SmartPlan trust fund (25%). Per the Miami-Dade County Property Appraiser's Office data, approximately 24% of the 2018 taxable value is associated with properties located within the proposed CRA boundaries only, with the remaining approximately 76% located in area where the proposed CRA and the SmartPlan areas overlap. Table 2 Projection of TIF Revenues—75%MGCRA 125%SmartPlan Split in Overlap Area of the MGCRA/SmartPlan boundary. MGCRA SmartPlan Cumulative TIF - Cumulative TIF- Total RA .A TIF - SmartPlan SmartPlan FY Cumulative TIF CRA Area $0 $0 $0 $0 $182,429 $117,781 $64,648 $21,549 1 $616,731 $355,698 $261,033 $87,011 $1,327,598 $716,154 $611 ,444 $203,815 j $2,306,142 $1,201,600 $1,104,542 $368,181 $3,542,055 $1,713,744 $1,828,311 $609,437 ©� $4,925,251 $2,253,119 $2,672,132 $890,711 $6,420,194 $2,820,271 $3,599,923 $1,199,974 $8,001,628 $3,415,754 $4,585,874 $1,528,625 $9,671,284 $4,040,136 $5,631,148 $1,877,049 $11,430,925 $4,693,994 $6,736,931 $2,245,644 2029 $13,282,353 $5,377,919 $7,904,434 $2,634,811 �® $15,227,400 $6,092,510 $9,134,890 $3,044,963 $17,267,944 $6,838,383 $10,429,561 $3,476,520 $19,405,889 $7,616,161 $11,789,728 $3,929,909 $21,643,187 $8,426,484 $13,216,703 $4,405,568 $23,981,824 $9,270,002 $14,711,822 $4,903,941 2035 $26,423,825 $10,147,379 $16,276,446 $5,425,482 $28,971,261 $11,059,293 $17,911,968 $5,970,656 $31,626,238 $12,006,434 $19,619,804 $6,539,935 $34,390,906 $12,989,506 $21,401,400 $7,133,800 $37,267,462 $14,009,229 $23,258,233 $7,752,744 $40,258,141 $15,066,335 $25,191,806 $8,397,269 Miami Gardens CRA 49 2018 Community Redevelopment Plan I Page 12 of 31 ' $43,365,226 $16,161,571 $27,203,655 $9,067,885 0' $46,591,047 $17,295,702 $29,295,345 $9,765,115 0' $49,937,975 $18,469,503 $31,468,472 $10,489,491 2044 $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 27'h 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