Item Coversheet

OLD BUSINESS  6.

COMMITTEE MEMORANDUM

TO: Finance and Economic Resiliency Committee Members


FROM:
Alina T. Hudak


DATE: March 30, 2022


SUBJECT:

DISCUSS MOTION PASSED BY THE AD HOC NORTH BEACH COMMUNITY REDEVELOPMENT AGENCY (NORTH BEACH CRA) EXPRESSING SUPPORT FOR THE ALLOCATION OF FUNDING IN THE FY2023 BUDGET TO ESTABLISH A NORTH BEACH CRA OFFICE OR PHYSICAL PRESENCE LOCATED WITHIN THE NORTH BEACH CRA DISTRICT


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 to negotiate an interlocal cooperation agreement among the City, the North Beach CRA, and Miami-Dade County to delineate their respective areas of responsibility with respect to the redevelopment process (the “Interlocal Agreement”). Pursuant to Resolution No. 2021-31596, the Mayor and City Commission officially created the North Beach CRA in accordance with section 163.357, Florida Statutes, and declared the Mayor and City Commission to be the governing body of the North Beach CRA.

On January 13, 2021, via Resolution No. 2021-31560 and subsequently amended by Resolution No. 2021-31594, the Mayor and City Commission created the Ad Hoc North Beach CRA Advisory Committee (the “Committee”) to ensure the continued participation by residents, business owners, and community representatives of the Redevelopment Area in connection with the North Beach CRA.


The seven-member Committee is tasked to advise the City Commission and Administration on issues relating to the North Beach CRA and Redevelopment Plan including to 1) Provide advisory recommendations regarding the initial creation of the proposed Redevelopment Plan; 2) Provide advisory recommendations regarding the public projects which would be included in the Redevelopment Plan for the North Beach CRA, including recommendations relative to the overall timing, cost efficiencies, and prioritization of proposed public projects in the North Beach CRA; and 3) Provide advisory recommendations regarding the Interlocal Agreement with Miami-Dade County relating to the North Beach CRA, and all related matters pertaining to the initial establishment of the North Beach CRA.


Pursuant to the County’s delegation of authority, the City undertook a significant public engagement effort to prepare the Redevelopment Plan, including multiple public events and weekly meetings with the Committee to gain community input and insight in preparation of the Redevelopment Plan. Simultaneous with the City’s preparation of the Redevelopment Plan, the City, North Beach CRA, and County Administrations negotiated the Interlocal Agreement. As transmitted to the Mayor and City Commission via LTC 204-2021, on May 10, 2021, the Committee adopted motions to favorably recommend the Redevelopment Plan and the Interlocal Agreement.


On May 12, 2021, pursuant to Resolution No. 003-2021 and No. 004-2021, respectively, the Chairperson and Members of the North Beach CRA Board adopted the Redevelopment Plan, as required by Section 163.360(5), Florida Statutes, and approved the Interlocal Agreement. Additionally, on May 12, 2021, pursuant to Resolution No. 2021-31709 and No. 2021-31710, respectively, the Mayor and City Commission approved the Redevelopment Plan and the Interlocal Agreement. Subsequently, on July 20, 2021, via Resolution No. 696-21, Miami-Dade County approved the Redevelopment Plan and Interlocal Agreement, and adopted Ordinance No. 21-70, creating the North Beach CRA Trust Fund.


As the Redevelopment Plan and Interlocal Agreement have been adopted and the North Beach CRA is formally operational, the Committee continues to meet to examine potential implementation strategies to propel economic investment, public improvements, and quality of life enhancements within the Redevelopment Area. The Committee meets monthly during publicly noticed meetings, to discuss opportunities, review presentations and information, and make recommendations relative to elements of the Redevelopment Plan.


During the November 17, 2021 Committee meeting, the Committee motioned to recommend the City support and fund establishing a North Beach CRA office or physical presence within the district. The Committee emphasized that benefits of having staff accessible to businesses and residents within the Redevelopment Area and expressed that initial activities of the office should prioritize small business attraction and retention and business startup assistance.

ANALYSIS:

To ensure the development and implementation of strategic plans, policies, and programs for the North Beach CRA, the Committee recommended an office in the district. Establishing a North Beach CRA physical office presence could be a costly endeavor, particularly in the early years of the Agency when tax increment revenue is anticipated to be conservative. Additionally, as the North Beach CRA does not yet have dedicated or budgeted staff, resources to operate the office must be drawn from the City.

However, through collaboration and the leveraging of resources, the North Beach CRA may be able to share space within the Building Department’s North Beach office located at 962-964 Normandy Drive. The Building Department has leased the space for use by the Building Department since March 15, 2016 and currently expends $5,529.42 per month, adjusted by 3% annually. The lease term is scheduled to expire on December 31, 2023 or may be renewed for a three-year period. The Building Department currently utilizes the majority of the space for operations, with services provided by appointment only. Based on this existing lease and current commercial leasing activity in the area, the cost of an independent tenancy could result in a base rent of $3,000 to $5,000 or more per month, depending on the size of the space.

 

SUPPORTING SURVEY DATA
According to the 2019 Customer Satisfaction Survey, the majority of Miami Beach businesses, approximately 70%, have a positive overall image of the city with 64.8% of businesses reporting satisfaction with overall quality of city services. A North Beach CRA physical office presence could create an effective line of communication and coordination among City Departments and the residents and businesses in the Redevelopment Area.

FISCAL IMPACT STATEMENT

The proportionate share for rent and office expenses would be approximately $187.00 per month including electricity, water, sewer, storm water, security, and rentals. Additionally, some funds may be needed for office equipment and supplies. In the future, once more established, the North Beach CRA may continue to contribute its pro-rata share of lease, maintenance, and operating expenses or, if needed, assume all of these expenses at a separate, independent facility.

CONCLUSION:

The Administration recommends working collaboratively to utilize the Building Department’s leased space as a North Beach CRA district office for Fiscal Year 2023. Accordingly, the Administration will explore options within the existing space leased by the Building Department. North Beach CRA office activation would occur on designated days and times to provide onsite services with staffing. If and when the need arises for more space and staff resources, the Administration will revisit and make recommendations to the City Commission and CRA Board as appropriate.

Applicable Area

North Beach
Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? Does this item utilize G.O. Bond Funds?
No No 

Strategic Connection

Prosperity - Revitalize targeted areas and increase investment.
ATTACHMENTS:
DescriptionType
NBCRA December Motion - Office SpaceMemo