R7F - Adopt North Beach Cra Budget

Resolutions - R7 F

R7 F A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE FINAL OPERATING BUDGET FOR THE NORTH BEACH COMMUNITY REDEVELOPMENT AREA FOR FISCAL YEAR 2026. JOINT CITY COMMISSION AND NORTH BEACH COMMUNITY REDEVELOPMENT AGENCY Applicable Area:

COMMISSION MEMORANDUM

RECOMMENDATION

The Administration recommends that the Mayor and City Commission of the City of Miami Beach adopt the attached Resolution, which adopts the final budget for the North Beach Community Redevelopment Area for Fiscal Year (FY) 2026.

BACKGROUND/HISTORY

On July 17, 2019, the City Commission adopted Resolution No. 2019-30892, accepting a preliminary report concerning a finding of necessity for the redevelopment of a certain area of North Beach, and requesting that Miami-Dade County delegate redevelopment powers to the City. On July 8, 2020, the Miami-Dade County Board of County Commissioners (“BCC”) approved Resolution No. R-619-20, delegating authority to the City to create the North Beach Community Redevelopment Agency (North Beach CRA), including direction to draft the North Beach CRA Redevelopment Plan and negotiate an Interlocal Agreement among the City, North Beach CRA, and Miami-Dade County to govern the redevelopment process.

Pursuant to the county’s delegation of authority, the City undertook a significant public engagement effort to prepare the Redevelopment Plan. Simultaneous with the City’s preparation of the Redevelopment Plan, in order to delineate their respective areas of responsibility with respect to the redevelopment of the Redevelopment Area, the City, North Beach CRA and Miami- Dade County administration negotiated an interlocal cooperation agreement (the “Interlocal Agreement”).

On February 10, 2021, by adopting Resolution No. 2021-31596, the Mayor and City Commission officially created the North Beach CRA pursuant to Section 163.357, Florida Statutes and declared the Mayor and City Commission to be the governing body of the North Beach CRA (the “North Beach CRA Board”).

On May 12, 2021, pursuant to Resolution No. 003-2021, the Chairperson and Members of the North Beach CRA Board adopted the Redevelopment Plan and transmitted the Plan to the City Commission for approval, as required by Section 163.360(5), Florida Statutes. Additionally, pursuant to Resolution No. 004-2021, the Chairperson and Board Members approved the Interlocal Agreement, authorized the Chairperson and Secretary to execute the Interlocal Agreement and further, authorized the transmittal of the executed Interlocal Agreement to the BCC for its consideration and approval.

Likewise, on May 12, 2021, pursuant to Resolution No. 2021-31709, the Mayor and City Commission approved the Redevelopment Plan for the North Beach CRA and authorized its

transmittal to Miami-Dade County. Contemporaneously, pursuant to Resolution No. 2021-31710, the Mayor and City Commission approved the Interlocal Agreement, authorized the Mayor and City Clerk to execute the Interlocal Agreement, and further, authorized the City Manager to transmit the executed Interlocal Agreement to the BCC for its consideration and approval.

On July 20, 2021, the BCC approved Ordinance No. 21-70 establishing the North Beach CRA Trust Fund and Resolution No. R-696-21 approving the Redevelopment Plan and the final, negotiated Interlocal Agreement, as amended. On July 28, 2021, the North Beach CRA Board adopted Resolution No. 005-2021 accepting the Interlocal Agreement. The City Commission also approved the Interlocal Agreement via Resolution No. 2021-31817.

Pursuant to Section 189.016(3), Florida Statutes, the governing body of special districts such as the North Beach CRA, must adopt a budget resolution each fiscal year. As noted in Section 163.387, Florida Statutes, money in the Trust Fund may be expended for undertakings of the North Beach CRA as described in the Redevelopment Plan pursuant to an annual budget adopted by the North Beach CRA Board) and only for the purposes specified by Statute. Additionally, the Interlocal Agreement stipulates that the City Commission approve the North Beach CRA annual budget prior to submittal to Miami-Dade County.

ANALYSIS

NORTH BEACH REDEVELOPMENT AREA

Revenues

Based on the 2025 Certified Taxable Values that were provided by the Miami-Dade County Property Appraiser on July 1, 2025, property values within the North Beach Community Redevelopment Area were approximately $1.9 billion, which represents an increase of $68.9 million, or 3.7%, over the 2024 Certified Taxable Values of approximately $1.8 billion. For FY 2026, the City’s portion of the tax increment revenue totals approximately $1.7 million, and the County’s portion of the tax increment revenue totals approximately $1.4 million. The City has, however, received correspondence from Miami-Dade County advising of the finalization of the tax roll for the prior year, which in the case of 2023, reflects a decrease from the preliminary valuation for the same year and will result in a corresponding adjustment/reduction of tax increment revenues totaling a combined $0.1 million for FY 2026.

Expenditures

Enhanced City services expenditures for FY 2026 account for $654,000, which include $290,000 for community policing initiatives, $182,000 for enhanced Code Compliance to continue to provide enhanced levels of staffing and services throughout the North Beach Community Redevelopment Area, and $182,000 to promote additional community cleanliness and beautification.

The budget also includes $301,000 for a Commercial Façade Improvement Program to improve area aesthetics and promote business attraction and retention, as well as a Residential Property Improvement Program to promote the maintenance of naturally occurring affordable housing stock and promote resiliency, $297,000 for small business development, and $242,000 for Arts & Culture related tourism, branding, and marketing.

Administrative expenditures account for $118,000, which include annual financial audit services, a contribution to the City for administrative expenditures based on a completed cost allocation study, and a satellite office within the North Beach Community Redevelopment Area, of which the lease and maintenance costs are shared with the City of Miami Beach Building Department on a prorated basis.

Other expenditures include $20,000 for the County’s administration fee, which is equivalent to 1.5% of the County’s respective FY 2026 tax increment financing (TIF) payment; a $363,000 set- aside for workforce and affordable housing that represents 12% of the combined TIF revenues

for FY 2026 and exceeds the 10% minimum requirement; and a $1.1 million set-aside for future projects.

FISCAL IMPACT STATEMENT

See the information provided 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 the information provided above.

CONCLUSION

The FY 2026 North Beach CRA budget is $3.1 million.

To promote economic investment, growth, and revitalization within the North Beach Community Redevelopment Area and to address the existing and future obligations of the North Beach CRA, it is recommended that the Mayor and City Commission of the City of Miami Beach adopt the attached Resolution, which adopts the final budget for the North Beach Community Redevelopment Area for FY 2026.

Attachment A – FY 2026 North Beach CRA Operating Budget (Exhibit A) Attachment B – FY 2026 North Beach CRA Work Plan

EC/JDG/TOS/RA

Applicable Area

North Beach

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

Joint, Adopt Final North Beach CRA Operating Budgets for FY 2026

Previous Action (For City Clerk Use Only)

Attachment B - FY 2026 North Beach CRA Work Plan

NORTH BEACH COMMUNITY REDEVELOPMENT AGENCY

NORTH BEACH COMMUNITY REDEVELOPMENT AGENCY

Fiscal Year 2026 Proposed Operating Budget and Work Plan

North Beach Community Redevelopment Agency 1755 Meridian Avenue Miami Beach, FL 33139

Board of Directors Steven Meiner, Chair, Mayor Kristen Rosen Gonzalez, Board member Laura Dominguez, Board member Alex J. Fernandez, Board member Tanya K. Bhatt, Board member Joseph Magazine, Board member David Suarez, Board member Micky Steinberg, Board member

Executive Staff Eric Carpenter, Executive Director Ricardo Dopico, General Counsel Rafael Granado, Secretary

North Beach CRA Advisory Committee Ronnie Issenberg, Chair Thomas Richerson, Vice Chair David Cohen Romina Orozco-Encio Manning Salazar David Sexton Samuel Latone