Subject:
Title
Board Direction on City of Melbourne’s Request to Amend the Interlocal Agreement Governing the Olde Eau Gallie Riverfront Community Redevelopment Agency
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Fiscal Impact:
The fiscal impact of the City of Melbourne’s proposed amendments to the Interlocal Agreement between the Board, the City of Melbourne, and Olde Eau Gallie Riverfront Community Redevelopment Agency is to authorize the Agency to incur debt of not to exceed $12.075 million in principle from the Agency’s tax increment funds and not to exceed its termination date of September 30, 2038.
Dept/Office:
Central Services
Requested Action:
Recommendation
It is requested that the Board of County Commissioners (the Board) provide direction to staff regarding the proposed amendments submitted by the City of Melbourne to revise the Interlocal Agreement between the Board, City of Melbourne (the City), and the Olde Eau Gallie Riverfront Community Redevelopment Agency (the Agency):
(1) Authorize staff to negotiate with the City of Melbourne regarding the City’s proposed amendments to the Interlocal Agreement, including:
a. Establish the parameters the Board is willing to negotiate with the City of Melbourne to revise the Interlocal Agreement adopted by the Board on May 4, 2021; and
b. Prepare revisions to the Resolution to reflect any renegotiated terms in the Modified Interlocal Agreement; and
c. Bring back the revised Interlocal Agreement and Resolution to the Board for consideration on December 16, 2025; or
(2) Other action determined by the Board
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Summary Explanation and Background:
Pursuant to Section 163.410, Florida Statutes, in any county which has adopted a home rule charter, the power to create and govern community redevelopment agencies shall be exercised exclusively by the county commission. However, a charter county commission may, in its discretion, delegate the exercise of these powers within the boundaries of a municipality to the governing body of such municipality.
On August 29, 2000, the Board adopted Resolution 2000-29, delegating to the City the authority to create the Olde Eau Gallie Riverfront Community Redevelopment Agency (the “Agency”). By the terms of Resolution 2000-29, the Agency was to terminate twenty-five (25) years later on August 29, 2025, unless extended by further action of the Board.
On May 4, 2021, the Board, the City, and the Agency entered an interlocal agreement (the Interlocal Agreement), consenting to certain amendments to the Board’s delegation of power to the City, and, on July 6, 2021, the Board adopted Resolution 2021-083 to conform its grant of authority to the Interlocal Agreement. Resolution 2021-083 revoked many of the community redevelopment agency powers that had been delegated by the Board in 2000, and specifically provided as follows:
1. The sole Agency project is to be the construction of a parking garage in downtown Eau Gallie (the Project).
2. The termination date of the Agency was extended to September 30, 2038, or earlier if the Agency is able to complete the Project and satisfy all indebtedness related to the Project prior to September 30, 2038.
3. The Agency’s authority to incur debt beyond twelve (12) months was revoked except for debt for the Project, which indebtedness (a) may not extend beyond September 30, 2038, (b) must be tax-exempt, and (c) may not exceed $6.835 million in principal for the remaining term of the Agency.
4. For a period of fifty (50) years, the City and the Agency shall not charge parking fees for the public to park in the Project and shall reserve ninety (90) percent of the spaces in the Project for the public.
The City now asserts that, to accomplish the finance and the construction of the Project, the Interlocal Agreement must be amended. On August 14, 2025, the City submitted proposed amendments to the Interlocal Agreement. Following is a summary of changes that the City proposes to the current Interlocal Agreement:
1. The Project shall create at least two-hundred fifty (250) dedicated public parking spaces that are to be used as public parking for a period of fifty (50) years.
2. The City may undertake the Project:
a. pursuant to State of Florida law and City Code procurement processes for capital improvement projects; or
b. a public-private partnership project pursuant to State of Florida law and City Code procurement processes for a public-private partnership.
3. Should the Project be developed through a public-private partnership agreement, such agreement may grant a lease or license interest in parking spaces not used as public parking for the exclusive use of the private development.
4. The City estimates a capital investment of up to $10.5 million for the Project whether through a City capital improvement project or through a capital contribution to a public-private partnership project.
5. The City and the Agency expect additional costs associated with the Project beyond the capital expenditures of $10.5 million. The City seeks authorization to expend available Agency funds for eligible additional Project costs. The City requests authority to expend up to a total of $12.075 million in Agency tax increment funds for capital expenditures and additional Project costs.
6. The City seeks authorization to charge for and enforce time limitations on public parking and to enforce penalties through fines and charges as adopted by the City Council, with such authorization to take effect no earlier than five (5) years after the Project is completed.
7. The City proposes that revenue from public parking charges will be set aside for capital maintenance and annual operations and maintenance obligations of the parking garage.
Financial Condition of the Agency’s Trust Fund: Based on the Agency’s Financial Statement for FY 2023-24 and discussions with the City staff, as of September 30, 2025, the Agency’s fund balance is estimated at $5.6 million. The Agency will receive its FY 2025-26 tax increment funds from the County and the City totaling $1,194,785 by December 31, 2025. Therefore, it is estimated that the Agency’s Trust Fund has funding available to allocate to the Project and may reduce any debt that the Agency contemplates needing for this Project.
The following attachments are included:
1. The Interlocal Agreement Between City of Melbourne, Olde Eau Gallie Riverfront Community Redevelopment Agency, and Brevard County (approved by the Board on May 4, 2021).
2. Resolution No. 2021-083 (adopted by the Board on July 6, 2021).
3. City of Melbourne’s Draft Proposed Revised and Restated Interlocal Agreement between the City of Melbourne, Olde Eau Gallie Riverfront Community Redevelopment Agency, and Brevard County.
Clerk to the Board Instructions: