Item Coversheet

Resolutions - C7  F




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Raul J. Aguila, Interim City Manager 
DATE:February  10, 2021
 



SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING, THE SALE AND ASSIGNMENT BETWEEN THE CITY (SELLER) AND J.B. HUNT TRANSPORT, INC. (PURCHASER), FOR THE SALE OF FLORIDA VOLUNTARY CLEANUP TAX CREDITS, IN THE AMOUNT OF ONE HUNDRED THIRTY-FIVE THOUSAND TWO HUNDRED FORTY DOLLARS AND EIGHTY-SEVEN CENTS ($135,240.87), RELATING TO THE COLLINS PARK GARAGE BROWNFIELD SITE REHABILITATION (PROJECT HAVING FDEP FACILITY ID #BF131805001); AND FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE THE FINAL AGREEMENT AND ANY OTHER AGREEMENTS OR DOCUMENTS REQUIRED TO CONSUMMATE THE TRANSACTION.  

RECOMMENDATION

Adopt the Resolution.

BACKGROUND/HISTORY

The purpose of Florida’s Brownfields Redevelopment Act is to reduce public health and environmental hazards on existing sites and create financial incentives to encourage voluntary cleanup and redevelopment of sites.

 

On September 6, 2018 the contractor for the Collins Park Garage project uncovered five underground storage tanks during construction that require removal, as well as contamination assessment and remediation.

 

On November 14, 2018, the City Commission adopted Resolution No. 2018-30611, designating the real property located at 340 23 Street and 2200 Liberty Avenue (Collins Park Garage) as a Brownfield Area pursuant to Florida Statutes Section 376.80(2)(a), allowing eligible costs incurred within subsequent fiscal years to be eligible for Voluntary Cleanup Tax Credits.

 

The Voluntary Cleanup Tax Credits program was created to encourage participants to conduct voluntary cleanup of designated Brownfield Areas. Under this program, the City can recuperate a percentage of remediation costs through the program. In 2018, the City incurred $135,240.87 of remediation costs for the Collins Park Garage project, that are eligible to be sold as part of the Voluntary Cleanup Tax Credits program.

 

In January 2021, the City retained Fallbrook Tax Credits LLC to sell eligible Voluntary Cleanup Tax Credits for the Collins Park Garage to J.B. Hunt Transport, Inc., for the total price of $125,097.80, based upon a value of $.0925 per dollar of tax credit (“purchase price”), which, after paying Fallbrook the Placement fee of $1,690.51, the City will net a total of $123,407.29.

SUPPORTING SURVEY DATA

N/A.

FINANCIAL INFORMATION

The City will be receiving a positive $123,407.29 for this transaction.

CONCLUSION

The Administration requests that the Mayor and City Commission approve the sale and assignment and any other agreements or documents required to consummate the transaction, between the Seller and Purchaser for the sale of Florida Voluntary Cleanup Tax Credits, in the amount of One Hundred Thirty-Five Thousand Two Hundred Forty Dollars and Eighty Seven Cents ($135,240.87) relating to the Collins Park Garage Brownfield site rehabilitation project.

Applicable Area

Not Applicable
Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? Does this item utilize G.O. Bond Funds?
Yes No 

Strategic Connection

Non-Applicable
Legislative Tracking
Environment and Sustainability

ATTACHMENTS:
Description
Resolution