CRA Vote Tomorrow On $115M Incentive Package For Marriott Expo Center

MDM could know by tomorrow whether the Southeast Overtown/Park West CRA will rebate the developer up to 65% of the tax generated by Marriott Expo Center.

 

SEOPW Board of Commissioners Meeting March 30, 2016
SOUTHEAST OVERTOW N/PARK WEST COMMUNITY REDEVELOPMENT AGENCY INTER-OFFICE MEMORANDUM
To: Board Chair Keon Hardemon and Members of the CRA Board
From: Clarence E. Woods, Executive Director
BACKGROUND:
Date: March 21, 2016 File: 16-00014
Subject: Conference and Convention Center & Hotel Economic Incentive Agreement. References: Enclosures: Supporting Documentation; Legislation
The attached Resolution of the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency (“CRA”) authorizes the execution of an economic incentive agreement in substantially the form attached to the Resolution with P & G Investors, LLC (“Developer”) in connection with the development of a 600,000 square foot Convention Center and a 1,700 key hotel at the Miami Arena Subdivision (“Project”).
The Project is to consist of a convention center component (“Convention Center Component”) consisting of approximately 600,000 square feet of space and will include a grand ballroom containing approximately 65,000 square feet of space, a junior ballroom containing approximately 45,000 square feet of space, approximately 100,000 square feet of exhibition space, approximately 390,000 square feet of meeting and event space as well as a 1,500 seat theater, pre function areas and related back of house service area associated with the convention center customarily forming part of a state of the art convention center and a 1,100 key hotel in the first phase and a 600 key hotel connecting to the Convention Center Component in the second phase.
Developer and the CRA have negotiated an economic incentive agreement which the CRA has proffered a payment to the Developer of 65% of the tax increment revenues (excluding the land value) generated from the project actually received by the CRA from the City of Miami and Miami-Dade County excluding tax increment revenues generated from the value of the land up to the maximum amount of $50,000,000.00 ($115,000,000.00 if the life of the CRA is extended to March 31, 2042). In the agreement, the Developer will provide community benefits to the Redevelopment Area, including but not limited to, job creation, living wages, and partnerships with local community organizations.
JUSTIFICATION:
This Project should be a lynch pin for the redevelopment in the Park West area of the Redevelopment Area. Providing the Developer with a portion of the tax increment revenues generated by the Project, to be utilized for uses permitted under Chapter 163 Part 3, Florida Statutes, which will assist the Developer in the implementation of this project which will create needed job opportunity and promote an environment which will foster other development in the Park West Area.