RDA-2. - Adopt Third Amendment to Rda Fy2025 Budgets

Redevelopment Agency Items (RDA) 2

RDA MEMORANDUM

RECOMMENDATION

The Administration recommends that the Board of Directors adopt the attached Resolution.

BACKGROUND/HISTORY

In accordance with Section 189.016, Florida Statutes, the governing body of the Miami Beach Redevelopment Agency, operating as a special district, is required to adopt a budget by resolution each fiscal year and may amend the budget at any time but not later than within 60 days following the end of the fiscal year.

The Miami Beach Redevelopment Agency (RDA) City Center Redevelopment Area, the Anchor Shops and Parking Garage, the Pennsylvania Avenue Shops and Parking Garage, and the Collins Park Parking Garage operating budgets for Fiscal Year (FY) 2025 were adopted by the Chairperson and Members of the Miami Beach Redevelopment Agency on September 25, 2024, through Resolution No. 695-2024.

The First Amendment to the RDA City Center Redevelopment Area, the Anchor Shops and Parking Garage, the Pennsylvania Avenue Shops and Parking Garage, and the Collins Park Parking Garage operating budgets for FY 2025 were adopted by the Chairperson and Members of the Miami Beach Redevelopment Agency on November 20, 2024, through Resolution No. 704- 2024.

The Second Amendment to the RDA City Center Redevelopment Area, the Anchor Shops and Parking Garage, the Pennsylvania Avenue Shops and Parking Garage, and the Collins Park Parking Garage operating budgets for FY 2025 were adopted by the Chairperson and Members of the Miami Beach Redevelopment Agency on March 19, 2025, through Resolution No. 707- 2025.

ANALYSIS

SIXTH AMENDMENT TO INTERLOCAL AGREEMENT SUMMARY

The Sixth Amendment to the Interlocal Cooperation Agreement between the City of Miami Beach (City), the RDA, and the Miami-Dade County Board of County Commissioners (County) relating to the City Center Redevelopment Area was initially approved by the City and the RDA, through

Resolution Nos. 2024-33347 and 697-2024 on October 30, 2024, and the County, through Resolution No. 952-24 on October 16, 2024, which, among other things, included:

1. The proposed issuance of refunding bonds to refund a portion of the RDA’s Tax Increment Revenue and Revenue Refunding Bonds, Series 2015A, that were originally issued for the renovation and expansion of the Miami Beach Convention Center for which the refunding will generate debt service savings 2. Removal of the requirement that beginning in FY 2024, excess revenues must be used to pay down outstanding RDA debt and instead direct the use of such revenues that are outlined in Sections H, I, and J of the Interlocal Agreement 3. Provisions regarding the disposition of RDA Trust Fund funds starting in FY 2037 4. Authorization of a grant agreement in the amount of up to $92.5 million (including principal, interest, and cost of issuance) between the RDA, the Convention Center Hotel Developer, and Public Finance Authority to facilitate the expeditious development of the Miami Beach Convention Center Headquarter Hotel project

On November 6, 2024, the County, through Resolution No. R-1002-24, approved the reconsideration and revision of the previously approved Sixth Amendment to the Interlocal Cooperation Agreement and Convention Center Hotel Agreement. These agreements were modified and returned to the City and the RDA for consideration, which included the following changes:

1. By March 31, 2025, the RDA shall provide up to $10.0 million in funding from the available balance in the RDA as of September 30, 2024, to the County to support the construction and operation of housing for homeless persons and facilities for survivors of domestic violence 2. Amend the Convention Center Hotel Grant Agreement to allocate the 50% of the Participation Payments previously designated for the City to now be directed to the County to fund supportive housing for individuals and families experiencing homelessness and domestic violence centers 3. Amend the Convention Center Hotel Grant Agreement to allocate the 50% of the 2% Transfer fees payment previously allocated to the City to now be directed to the County to fund supportive housing for individuals and families experiencing homelessness and domestic centers

The revised Sixth Amendment to the Interlocal Cooperation Agreement, which included the modifications that were transmitted by the County, was adopted by the City and the RDA, through Resolution Nos. 2024-33354 and 703-2024, respectively, on November 14, 2024.

CITY CENTER RDA OPERATING BUDGET AMENDMENT

Convention Center Hotel Grant Agreement

As part of the revised Sixth Amendment to the Interlocal Cooperation Agreement that was adopted by the City, the RDA, and the County, the RDA received authorization to enter into a grant agreement with the Convention Center Hotel Developer and Public Finance Authority for $75.0 million (present value) to fund the financing gap for the full construction of the Miami Beach Convention Center Hotel Project.

In accordance with the executed grant agreement dated April 10, 2025, payments will commence in FY 2025, which is the current fiscal year, and continue for five (5) years. As a result, this proposed amendment is to realign approximately $12.0 million of the RDA’s budgeted FY 2025 surplus to fund the payment to be made during FY 2025 in accordance with the executed grant agreement.

FISCAL IMPACT STATEMENT

See detailed information above.

Does this Ordinance require a Business Impact Estimate? (FOR ORDINANCES ONLY)

If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/

FINANCIAL INFORMATION

See detailed information above.

CONCLUSION

The Administration recommends that the Chairperson and Members of the Miami Beach Redevelopment Agency adopt the Third Amendment to the RDA City Center Redevelopment Area, the Anchor Shops and Parking Garage, the Pennsylvania Avenue Shops and Parking Garage, and Collins Park Parking Garage operating budgets for FY 2025 as described herein and further detailed in the attached Exhibit “A.”

EC/JDG/TOS/RA

Applicable Area

Citywide

Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No

If so, specify the name of lobbyist(s) and principal(s):

Department

Management and Budget

Sponsor(s)

Co-sponsor(s)

Condensed Title

Adopt 3rd Amendment to City Center RDA Operating Budget for FY 2025. OMB

Previous Action (For City Clerk Use Only)