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HomeMy WebLinkAboutSEOPW OMNI CRA 1996-10-28 MinutesCITY 4F MIAMI w" , MM WW AND SOL"EAS' OVEF(to AREA 1 Cc"MUN►TY OMNI f,EpEVELO'PMENT AG- ENCY MINt)'T'ES OF MEETING }GELD ON OF THE Cl-Ty CLERK PRE 0aRE0 IBY TtifCOFF HIrr�LL FOEMAN � CLOK INDEX MINUTES OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY MEETING October 28, 1996 ITEM SUBJECT LEGISLATION PAGE NO. NO. 1. (A) DISCUSS CRA BUD= FOR FISCAL YEAR SEOPW/CRA M 2-7 1996-1997. 96-7 (B) SCHEDULE CMI / CRA MEETING FOR 10/28/96 NOVIIMBER 18, 1996 AND SEOPWA / CRA MEETING FOR DECEMBER 16, 1996. 2. CCAM40TS CITING ADVERTISING DICE DISCUSSION / OF CRA MEETINGS. 10/28/96 3. CRA EXECUTIVE DIRECTOR TO MEET WITH SEOPW/CRA M 7-8 CITY MANAGER IN CONNECTION WITH CRA 96-8 1996-1997 BUDGET. 10/28/96 4. GRANT EASEMENT TO BLOCK ARCHIVES FOR SEOPW/CRA M 9 RENOVATION AMID EXPANSION OF LYRIC 96-9 THEATER (819 NW 2 Avenue). 10/28/96 5. AU'IHORIZE SUBMITTAL OF ECONOMIC SEOPW/CRA M 10 DEVELOPMENT INITIATIVE SECTION 108 LOAN 96-10 APPLICATION M USHUD ($5,145,184) FOR 10/28/96 OVERIUM HCbW0MR9HIP ZONE. 6. APPROVE SELECTION OF ST. JOHN'S SEOPW/CRA M 11 13 CCbKWTY REDEVELOPMENT CORP. / THE 96-11 RELATED GROUP OF FLORIDA TO DEVEIAP 10/28/96 TUWXIOUSE PROJECT IN OVERIM (N.W. 8 AND 10 STREET AND N.W. 1 AND 2 AVENUES). 7. AUTHORIZE SALE OF CRA-OWNED PROPERTY AT SEOPW/CRA M 13-15 BISC.AYNE BOULEVARD, N.E. 2 AVENUE AND 96-12 NORTH OF N.E. 9 STREET TO MR. ABRAHAM 10/28/96 ATZMPiN FOR $310,000 TO EXPAND HIS GAS STATION ADJACENT `lO SAID SITE -- USE PREMISES FOR TOURISM PROMOTION. S. 9• 6� VIP10/2S/9 I�I�E, A1`1D O DIS�SSI E TO�I ;��0�3 X Z � tio1 8 G�SI� ;vrra Ate' S3I � a T "s--19 _26 MINUTES OF REGULAR MEETING OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY On the 28th day of October, 1996, the Southeast Overtown/Park west Community Redevelopment Agency met at the Miami Arena VIP Room at 701 Arena Boulevard, Miami; - Florida in regular session. The meeting was called to order at 7:02 p.m. by Chairman Richard P. Dunn, II with '.,he following members of the Board found to be present: ABSENT: ALSO PRESENT: Chairman Richard P. Dunn, II Board Member J.L. Plummer, Jr. Board Member Wifredo Gort Board Member Tomas Regalado Board Member Joe Carollo Walter J. Foeman, City Clerk Maria J. Argudin, Assistant City Clerk Herb Bailey, Executive Director Robert Friedman, Legal Counsel Chairman Dunn led those present in a pledge of allegiance to the flag, followed by an invocation delivered by Board Member Gort. Chairman Dunn: I'd like to say good evening to everyone and we want to officially welcome; you to our first meeting since I guess June the 24th, and at this time, I'm going ;,o, ask f-!. discussion if necessary for the approval of the minutes from the June 18th .and Jun-P. 24Fil meetings. Board Member Plummer: Mr. Chairman, if there's no additions, deletions, approval: modifications I'll move both. Board Member Gort: Second. Chairman Dunn: The proper motion and second both there's no deletions, modificatiovor additions to the agenda they will stand approved as read. You heard the motion. All ill favor lei us hearby say, "aye." 1 October 28, 10' 6 The Board (Collectively): Aye. Chairman Dunn: Nays have the same privilege. Aye's have it. NOTE FOR THE RECORD: On a motion duly made by Board Member Plummer and seconded by Board Member Gort, the minutes of the CRA meetings of June 18, 1996 and June 24, 1996 were approved by the Board. ------------------------------- --------------------------------------------------------------------------- 1. (A) DISCUSS CRA BUDGET FOR FISCAL YEAR 1996-1997. (B) SCHEDULE OMNI / CRA MEETING FOR NOVEMBER 18, 1996 AND SEOPWA / CRA MEETING FOR DECEMBER 16, 1996. Chairman Dunn: Next agenda item is the CRA Budget Fiscal Year 96-97. At this time I'm going to ask Mr. Herb Bailey if he would come forward and share with us the budgetary plans for 96-97. Mr. Bailey... Mr. Herbert Bailey (Executive Director): Mr. Chairman, as requested by the Commission' aflu the Administration, primarily the manager's office, we were... it was suggested that we.Jak :i. ur proposed budget which was submitted and is in the 1996-97 budget book, and rev,.Ge it , accordance with the adjustments or the modifications that the entire city's going to make )rder to meet its financial situation. We prepared a budget that had a 5 percent reduction ovi. cal,. `ti°'e prepared one that has a 10% reduction, and we prepared a budget that has a 15 percent iedueti: We will be submitting these to the City Manager to be included with their overall pioposeL adjustments that they will make to the City Commission and we say that we can live with cather one of these cuts. We can live with the larger more difficult than we can live with the sm6 one, however, we can manage on either one of these budgets. I'd just like to say so that thi., board can be aware that the budget that was in the budget book as it relates to revenue waL -,)ut 60 percent short. We have submitted a memo to the manager indicating where we think 0 . gat shortage could be made up. We still have some concern about the revenues that have been m,.de on the parking on the west side of the Arena over in the Overtown area for the events here at this Arena for which have been diverted to cover some deficits in the Olympia building. We have not resolved how that matter will be remedied. We have approximately one and a half million dollars ($1,500,000) that is owed to the CRA as a result of what has been generated as revenue. Those lands have been transferred to the CRA and we still having some discussion with Off- street Parking as to how we're going to conclude this situation. Given that if .we can c inic to some closure we will probably be able to balance our budget for this year with revenues that really belongs to the CRA. So with your permission here we will submit these three buugats with the 5, 10, and 15 percent adjustments unto the City Manager and hopefully by our next meeting we will have some indication as of which one the administration will be able to fend. Chairman Dunn: Thank you. Mr. Vice Mayor, Commissioner Plummer, Vice -Mayor Gort, wh: x is your pleasure? Board Member Plummer: We can submit all three of them and the Commission itself will make their decision. There are some areas that I have gone through even and looked at and i think that, we'll still enhance further cuts. For example, I think that in the budgets we're looking at 2 October 28, 1996 presently most all travel and per diem has been just cut to the bone here at six thousand dollars ($6,000). The one that I think that has got to be looked at very very heavily is the hundrfA. and two thousand dollars ($102,000) for rent. You know we have buildings that are available atA. I think we're going to have to look at that one extremely long before we lay out that kind of money just for rent. I will have other questions to go into further at a later time. Legal services your talking almost, what, four thousand a month? Just a little less. These are the aieas... but I would say let's, at this particular point, let's surrender all three to the City Commission and'let them make the decision. Board Member Gort: My understanding is this is going be presented to the Administration fiat, to the Manager, the Manager to.., are you saying here the Manager will make some recommendation to us? Mr. Bailey: Well we have to... you know the Manager approves the budget, recomm*)Kls a budget to the Commission, and I can imagine he collects all of them and based on what available revenues there are, he determines how he allocates those and then we come back to the Commission and we have to make a case for any modifications that we think are appropriate based on what the Manager has recommended. Under the resolution and the ordinances that were passed which established the CRA, it was the City Commission that made a coinmittmeW, to fund the CRA for three years which means that the budget that the CRA gets is really under the perview of the City Commission. Notwithstanding any funds that really belong to the CRA because we indicated to the Commission that at the end of three years we should be somewhere close to self-sufficiency. That's why we're in a rush to get development moving. Board Member Plummer: I have one question. In the original budget as originally proposed fir, rent for the building was seventy thousand ($70,000). Mr. Bailey: Yes. Board Member Plummer: When we go and make cuts it goes up to a hundred and two. Mr. Bailey: That is because, Commissioner, that the funds that were in the bond issue that wry, to do our renovations to our property... the building that we were supposed to get, we iirvtr got and in order... as therefore we had no funds to do tenant improvements. So when was discovered that we didn't have our two million dollars ($2,000,000) we had to go and adjuE lease so that the developer could make the tenants improvements and allocate those funds based on the new requirements placed on the developer. Had we had our other funds, it would've titill been seventy thousand. Board Member Plummer: I have no further questions. Chairman Dunn: We have one from the public desiring to speak would you state your name. NOTE FOR THE RECORD: Board Member Regalado entered the meeting at 7: p.m. Mr. Manuel Gonzalez-Goenaga: Yes my name, pleasing the Commissioners and members of tlic Southeast Overtown/Park West Community Redevelopment district... very long name, and very few that has been done in the last plenty of years. With all due respect to the present administration, well first my name is Manny "Boom Boom" Gonzalez-Goenaga. It is a pleasure to be here for the first time in the Miami Arena and I am just going to refresh the memory of the 3 October 28, 1406 new commissioners and not of the new is... you hear this for the first time, and the old commissioners, including Mr. Bailey and Mr. . I have said many times that a small leak can sink a great ship and I also added that we are no great ship and we have big leaks. Including from the top down and from the bottom up, now we have a budget that is going to go before the Administration but is marvelous, I would like to have, with due respect, the salaries, that I be provided as a shareholder of the City of Miami, the salaries of this organization from the top down, and I am sure that Mr. Bailey who is the Executive Director, could you... you are present, without any regrets, could you say your salary direct, indirect benefits, plus the amount that you have according to this voodoo salaries of that Mr. Odio has been seduced the Commission before. I mean, in other words, he used to earn one hundred and sixteen thousand ($116,000) but for retirement purposes a hundred and fifty and he don't pay taxes... all these hanky-panky deals, could you say your direct salary? Mr. Bailey: My salary is the same as has been for the... Mr. Gonzalez-Goenaga: No, no, no you said that to me, I want to know... Mr. Bailey: No, I will tell you, it's a public record and I don't pull any bones about it. icy salary has been the same for the past ten years, I make one hundred and three thousand dollars a year. Mr. Gonzalez-Goenaga: One hundred and three thousand dollars. Mr. Bailey: Yes, it's the same as the other assistant city managers, I get paid in accotr , znce with... Mr. Gonzalez-Goenaga: No, no explanation, the thing is that you know that you get paid more than a congressman... Mr. Bailey: Probably. Mr. Gonzalez-Goenaga: ... and a chief justice of the Supreme Court, I'm not going to disc,a,,,, that. Chairman Dunn: Yeah, I was going to ask you to stick to the issue. Mr. Gonzalez-Goenaga: The issue is this becomes curiouser, and curiouser, and curiouser a, let's start cleaning the barn for heaven's sakes. It's about time, this is the time, we cannot allow this to go on and on and on and on and on. And I have raised red flags since 1990. It's in the record everywhere everytime and I have been arrested for saying the truth and telling truths tell times. Thank you very much. Chairman Dunn: Thank you. Yes? State your name, please. Rev. Henry Nevin: My name is Henry Nevin. I am the pastor of St. John Missionary Baptist Church right here in Overtown. Mr. Chairman, and to the Commissioners and Mr. Bailey this is really . After hearing what this gentleman is saying, I want to thank Mr. Bai!F�y for working 24 hours a day. I think whatever you get is well deserving. I'd just like to ask M. Bailey, Mr. Chairman, he said that one and a half million dollars it was supposed to be for Overtown was taken somewhere else, and I wonder why, and could we get it back to do the things in Overtown. That's what I'm interested in. Mr. Bailey: We have submitted all of the details as it relates to those revenues to the Commission and to the Manager and we're still waiting on how we're going to resolve 'those issues. What happens there will be left up to the Board and to the City Commission. 4 October 28, 1996 Chairman Dunn: Alright, thank you. Please state your name. NOTE FOR THE RECORD: Board Member Carollo entered the meeting at 7: 5 p.m. Mr. Fred Joseph: Chairman, Fred Joseph of the Grand Condominium Association. I'm going to ask of you to allow me would you make up the matter of your next meeting that's why I came tonight to accept for the Grand-Doubletree for your next meeting, whatever date you wish. I'm at St. Jude this evening, it's St. Jude Feast Day and I'm working there and if Vice -Chair and Vice -Mayor Gort, Commissioner Regalado, and Commissioner Plummer, if you don't mind, I'd like to take that matter so that I can go back, and everybody's welcome to come also, St. Jude.. Board Member Plummer: Are you paying? Board Member Regalado: That's November... Mr. Joseph: Mr. Plummer, I always do you anyway. Board Member Regalado: That's November 18 right. Mr. Joseph: Whatever date you set, we'll welcome you and treat you well there... Mr. Bailey: We're recommending. Board Member Gort: So moved. Board Member Plummer: Yes. Mr. Joseph: And my co -person is here with me this evening, Eleanor Kluger, so anything e1c�F: you have in that area she'll be able to take for me. O.K. if your invitation is there, I didn't knb about it until this evening that you would wanted one so I said I would come and accept it Pmd give you... Board Member Plummer: Mr. Chairman Chairman Dunn: Yes. Board Member Plummer: I'll move Item 10 on both recommendation dates. Chairman Dunn: There's a motion, is there a second? Board Member Gort: Second. Chairman Dunn: Mr. Clerk, would you call roll? 5 October 28, 1996 The following motions were introduced by Board Member Plummer, who moved its adoption: SEOPW/CRA MOTION NO.96-7 A MOTION SCHEDULING THE NEXT OMNI COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING FOR MONDAY, NOVEMBER 18, 1996, AT THE GRAND CONDOMINIMUM/DOUBLETREE HOTEL, LOCATED AT 1717 S. BAYSHORE DRIVE, BEGINNING AT 7 P.M. MOTION NO. 96-7.1 A MOTION SCHEDULING THE NEXT SOUTHWEST OVERTOWN PARK WEST (SEOPW) COMMUNITY REDEVELOPMENT AGENCY BOARD MEETING FOR MONDAY, DECEMBER 16, 1996, AT THE MIAMI ARENA, LOCATED AT 701 ARENA BLVD., BEGINNING AT 7 P.M. Upon being seconded by Board Member Gort, the motions were passed and adopted by the following vote: AYES: Board Member Joe Carollo Board Member J.L. Plummer, Jr. Board Member Wifredo Gort Board Member Tomas Regalado Chairman Richard P. Dunn, II NAYS: None. ABSENT: None. Mr. Joseph: Do you have a date set? Board Member Plummer: Yeah, November 18th. Mr. Joseph: November 18th will be fine. Board Member Plummer: Right. Mr. Joseph: I'll make those arrangements. Is there anything else at the Omni... Board Member Regalado: The 7 p.m. right? Mr. Joseph: 7 p.m. Is there anything else for the Omni/Venetia area you want me to stay for? Board Member Plummer: Just oatmeal cookies. Mr. Joseph: O.K. You'll excuse me... I'll do better than that. Board Member Carollo: Thank you Mr. Joseph. Mr. Joseph: Thank you. Can I interrupt him one ... You've changed days from Monday to Wednesday? T October 28, 1996 a Board Member Plummer: No it says here Monday, November 18... Mr. Bailey: It says Monday... we faxed you a copy of this, Mr.... Mr. Joseph: I'm sorry, I explained to him that I was out of... Mr. Bailey: O.K. It's November the 18th, it's on a Monday. Mr. Joseph: O.K. Thank you very much. ---------------------------------------------------------------------------------------------------------------- 2. COMMENTS CONCERNING ADVERTISING NOTICE OF CRA MEETINGS. --------------------------------------------------------------------------------------------------------A------- Mariano Cruz: I'll be brief. Mariano Cruz, 1227 N.W. 26 Street, Allapattah. In On item 3, the only thing that says CRA budget, I was at the budget hearing for the City and I didn't see... The only thing I'd like to do is see CRA budget for I don't know what budget is and I have the City budget but I never saw any item CRA and that was coming I think with the Overtown Park West? Mr. Bailey: It's the CRA budget, and it is in the City's budget to print, it's in the City's printed budget. Mr. Cruz: But it go from October to September 10, October 1st... Board Member Plummer: Uh-huh, fiscal year. Mr. Bailey: It's the same as the other City budgets, yes. Mr. Cruz: The reason I keep on coming to here 'cause like now I was coming down Sth Street and I saw that building going up there, Camillus House concern and I look at the other day thev have 35 N.W. 17 Street where house it. I come here cause you never know when they're Roinb to try again to move it to Allapattah or some other place. I have been coming. Every . e I know it's a big a meeting. Even this meeting came in the local news on page 8 of the Heralu..( didn't come like usual on the second or third page. It was very hard to find unless you are looking at the news from Florida for it didn't come exactly with the local news. It's small advertising and that goes to the City Clerk. I'd like to see this meeting more advertised. The way I saw it it was way down like page 7 or 8. A lot of people, some people are here because I called them and left a note about the meeting. These people that read the paper everyday, they are with me. --------------------------------------------------------------------------------------------------------•------- - 3. CRA EXECUTIVE DIRECTOR TO MEET WITH CITY MANAGER IN CONNECTION WITH CRA 1996-1997 BUDGET. Chairman Dunn: Thank you. Thank you very much. Just to kind of put things back in perspective, we had a request from Assistant City Manager Bailey to... where he was directed by the Manager to give a proposal for a 5 percent decrease, 10 percent decrease, as well as a 15 percent decrease. We're asking now... he's requesting that he be allowed to meet with the 7 October 28, 1996 I Manager and his staff to bring closure and then come back to this Commission for approval. Is there any comments on that? Board Member Plummer: We voted on it didn't we? Board Member Gort: Yeah we voted. Chairman Dunn: No we haven't. Board Member Plummer: I thought we voted on that? Chairman Dunn: No we didn't. Board Member Plummer: O.K. We didn't vote on it... Chairman Dunn: No. Board Member Plummer: I'll move it. Chairman Dunn: Is there a second? There's a motion by Commissioner Plummer, is there a second? Board Member Gort: Second. Chairman Dunn: All in favor of having the Assistant City Manager Bailey meet with thr Manager for approval and then brought back to this Commission, let us hear by you saying "aye." The Board (Collectively): Aye. Chairman Dunn: Nays have the same privileges. So moved. The following motion was introduced by Board Member Plummer, who moved its adoption:. SEOPW/CRA MOTION NO.96-8 A MOTION DIRECTING THE EXECUTIVE DIRECTOR OF THE CRA, HERBERT BAILEY, TO MEET WITH THE CITY MANAGER IN CONNECTION WITH THE PROPOSED CRA BUDGET FOR FISCAL YEAR '97; FURTHER DIRECTING THE EXECUTIVE DIRECTOR TO BRING BACK SAME TO THE CRA BOARD FOR ITS CONSIDERATION, REVIEW, AND POSSIBLE APPROVAL. Upon being seconded by Board Member Gort, the motion was passed and adopted by the following vote: AYES: Board Member Joe Carollo Board Member J.L. Plummer, Jr. Board Member Wifredo Gort Chairman Richard P. Dunn, II NAYS: None. ABSENT: Board Member Tomas Regalado October 28, 1996 --------------------------------------------------------------------------------------------------------------- 4. GRANT EASEMENT TO BLOCK ARCHIVES FOR RENOVATION AND EXPANSION OF LYRIC THEATER (819 NW 2 Avenue). -------- -------------------------------------------------------------------------------------------------- - ----- Chairman Dunn: Item 4. Board Member Plummer: Move it. Chairman Dunn: Is there a second? Board Member Carollo: Second. Chairman Dunn: There's a motion and second on the floor for the approval of cne Blar Archives request for easement of the CRA property for the renovation and expansion ?,e Lyric Theater. All in favor let us hear by saying "aye." The Board (Collectively): Aye. Chairman Dunn: Nays have the same privilege. The following motion was introduced by Board Member Plummer, who moved its adeI- 'ann: SEOPW/CRA MOTION NO.96-9 A MOTION APPROVING THE RECOMMENDATION OF THE CRA E. EC, 'T v r, DIRECTOR TO GRANT EASEMENT REQUEST FROM THE BLACK ARCh , (APPROXIMATELY 10 FT. BY 5 FT. STRIP OF LAND FROM THE CRA) r CONNECTION WITH EXPANSION OF THE LYRIC THEATRE LOCATED AT 8.Lj N.W. 2 AVENUE. Upon being seconded by Board Member Carollo, the motion was passed and a'.1opted by the following vote: AYES: Board Member Joe Carollo Board Member J.L. Plummer, Jr. Board Member Wifredo Gort Board Member Tomas Regalado Chairman Richard P. Dunn, II NAYS: None. ABSENT: None. 9 October 28, 1996 ............................................................... -------------- 5. AUTHORIZE SUBMITTAL OF ECONOMIC DEVELOPMENT INITIATIVE SECTION 108 LOAN APPLICATION TO USHUD ($5,145,184) FOR OVERTOWN HOMEOWNERSHIP ZONE. Chairman Dunn: Item number 5. Board Member Plummer: Move it. Chairman Dunn: There's a motion. Board Member Carollo: Second. Chairman Dunn: There's a motion and a second. All in favor of the Economic Developmeju Initiative Grant application for the Overtown Homeowners Zone let us hear you by saying "aye." The Board (Collectively): Aye. Chairman Dunn: Nays have the same privilege. The following motion was introduced by Board Member Plummer, who moved its adoptio SEOPW/CRA MOTION NO. 96-10 i A MOTION AUTHORIZING AND DIRECTING THE EXECUTIVE DIRECT(. OF THE CRA TO PROCEED WITH THE SUBMITTAL OF AN ACCOMPANYING SECTION 108 LOAN APPLICATION TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT IN THE AMOUNT OF $5,145,184 SUBJECT T`: APPROVAL BY SAID AGENCY WITHIN SIXTY (60) DAYS FOLLOWING RECEIPT OF NOTICE OF APPROVAL OF THE ECONOMIC DEVELOPMENT INITIATIVE GRANT APPLICATION REQUEST OF SEPTEMBER 12. { Upon being seconded by Board Member Carollo, the motion was passed and adopted by I the following vote: AYES: Board Member Joe Carollo Board Member J.L. Plummer, Jr. Board Member Wifredo Gort Board Member Tomas Regalado Chairman Richard P. Dunn, II NAYS: None. ABSENT: None. 10 October 28, 1996 ---------------------------------------------------------------------------------------------------------------- 6. APPROVE SELECTION OF ST. JOHN'S COMMUNITY REDEVELOPMENT CORP. / THE RELATED GROUP OF FLORIDA TO DEVELOP TOWNHOUSE PROJECT IN OVERTOWN (N.W. 8 AND 10 STREET AND N.W. 1 AND 2 AVENUES). ---------------------------------------------------------------------------------------------------------------- Chairman Dunn: Item number 6. Board Member Plummer: I'll move it but I think we should have some discussion. Mr. Bailey: Right. On Item 6... Board Member Plummer: I haven't received a second yet. Mr. Bailey: I'm sorry. Board Member Gort: This is second reading. No, this is resolution. Board Member Plummer: Yeah, I needed a second for discussion. Board Member Gort: Second. Chairman Dunn: There's a motion and a second for discussion, I mean, OK, we're going to hc:_,. now from Mr. Gonzalez. It's a motion and second on the floor. Mr. Manuel Gonzalez-Goneaga: I am Mr. Manuel "Manny Boom Boom" Gonzalez-Goneagr, My concern here as many concerns that St. John's Community Development Corporation, th,-. Related Group of Florida. I know that they are very good contributors to the Democratic Party and they are very good contributors to the election of some commissioners and they have, like a sense, a perception, in my understanding, of a monopoly and the issue is that the owner was a simple employee of the City of Miami many years ago and he's a multi -millionaire. I donate to him. But when we're constructing houses, affordable housing, for the poor in my little islan6, Banana Island of Puerto Rico, 5 percent profit in actual construction costs is mandated by the agency that financed it. We should review all these things if you have a doubt about my position ask for the financial statements of the Related Group of Florida for the last 5, or 6 or 10 years and the amount of housing that they have done and for the affordable housing that we have in Miami. That's... I don't consider that affordable housing. No that's housing for the rich. Thank you very much. Chairman Dunn: Thank you. Would you state your name? Donald F. Benjamin: My name is Donald F. Benjamin, I'm the Executive Director of St. John's Community Development Corporation and I hasten to correct any uninformed statements here with respect to the role and function of the St. John's Community Development Corporation. As a non-profit 501C3 Corporation, we are not allowed to make any political contributions— anti one thing we can't afford it. Now we have experience of having built affordable housing in Overtown since 1992. We are fortunate and privileged to have had the opportunity to joiq venture with an established developer as the Related Group and we look forward to ,your approving this proposal and our going forth and constructing some worthwhile homes in the Overtown section. Thank you very much. 11 October 28, 199$'t r Chairman Dunn: State your name please sir. Mariano Cruz: Mariano Cruz, 1227 N.W. 26 Street. I don't have the document here but I heard better housing and extemporarily I'm going to say that whoever to housing, say like they start doing business there on the first one, the first building, the City Towers 1851, 1855 15th Avenue was done by the Related housing... used to be a community development occupant for the City of Miami. And you know many times I called him to help me, to help the parks and all that, never bothered, he never bothered to , oh no he's making millions and millions dollars, so I'd like to see all these developers that come to help their pockets, that's what they coming to do, the Related housing, now I know... they sold fifty million dollars worth of rental property in Aventura to be converted to condominiums. So they are in the big leagues now, they got a lot of property in that island there by the Four Ambassadors, and still they own still two or three properties there because I remember Jorge Perez, when he started the first one, the little apartment on 13th Street and 24 Avenue from rental to condominiums and he is now big, big contributor to political campaigns and all that. But you know he quid pro qua that's what he does. Chairman Dunn: Thank you. Is there anyone else from the public desiring to speak? Mayor, Commissioners? Board Member Plummer: Mr. Chairman, if the motion is in order I move that we accept 'the report of the committee and proceed to make St. John's and the Related Group the primp and if unable to perform the next recommendation of the committee was the new Hardsvrabble Corporation, I so move. Board Member Carollo: The motion, there's a second. Chairman Dunn: All in favor let us hear you by saying "aye." The Board (Collectively): Aye. Chairman Dunn: Nays have the same privilege. Aye's have it. The following motion was introduced by Board Member Plummer, who moved its adoption: SEOPW/CRA MOTION NO.96-11 A MOTION APPROVING THE SELECTION OF THE ST. JOHN'S COMMUNTI'Y REDEVELOPMENT CORPORATION AND THE RELATED GROUP OF FLORIDA, DEVELOPER, FOR THE PURPOSE OF DEVELOPING A 96-UNIT TOWNHOUSE PROJECT ON TWO CRA-OWNED BLOCK, NUMBERS 25 AND 36, LOCATED AT N.W. 8 AND 10 STREETS, AND N.W. 1 AND 2 AVENUES; FURTHER AUTHORIZING THE CRA TO NEGOTIATE A LAND LEASE AND DEVELOPMENT AGREEMENT WITH THE DEVELOPER. 12 October 28, 1996 �.) Upon being seconded by Board Member Carollo, the motion was passed and adopted by the following vote: AYES: Board Member Joe Carollo Board Member J.L. Plummer, Jr. Board Member Wifredo Gort Board Member Tomas Regalado Chairman Richard P. Dunn, II NAYS: None. ABSENT: None. ------------------------------------------------------------------------------------------------------ ------ 7. AUTHORIZE SALE OF CRA-OWNED PROPERTY AT BISCAYNE BOULEVARD, N.E. 2 AVENUE AND NORTH OF N.E. 9 STREET TO MR. ABRAHAM ATZMAN FOR $310,000 TO EXPAND HIS GAS STATION ADJACENT TO SAID SITE -- USE PREMISES FOR TOURISM PROMOTION. -------------------------------------------------------------------------------------------------------- r, -- Chairman Dunn: Item number 7 is the disposition of CRA owned vacant land located between the Biscayne Boulevard and Northeast 2nd Avenue and Northeast 10th and 11th Streets. Mr. Bailey: Mr. Chairman, this is a strip of property which we own that used to be the 0ic1 railroad right-of-way. Old railroad that is no longer in use and this little strip of property ready doesn't have much use to anybody other than the present owner, which is a gas station which is next to it, who has indicated that he intends to expand and improve the gas station property and to enlarge it on Biscayne Boulevard. In fact, that is the only station that we have, Downtown Miami, as it relates to this particular property, he is the only person who could perhaps hav; a. useful involvement with this land. We had it appraised and it was advertised for public i s.d, wt, received one bid... we did have some discussion with a person who wanted to assemble it for future speculation. But this gentleman, Mr., I can't pronounce his last name, Atzman, yeah, has agreed to accept this property in as is condition and has agreed to clean up any type -of toxic waste or anything else that is required to be done on this property for him to develop it, and we recommend that we sell it to him. Board Member Carollo: So moved. Board Member Plummer: I'll second it for discussion. What development is he anticipating to put on here within 18 months? Mr. Bailey: He's going to expand his gas station. Board Member Plummer: Well that's not very clear if you're going to try to hold him to a contract that says he has to develop the site within 18 months. Now I can expand a filling station by putting in landscaping. Is there a definitive plan that says he's going to do "x, y, z" or... either that or take it out, I mean I don't know what you... Mr. Erdal Donmez: Erdal Donnez, from Community Redevelopment Agency. Commissioner Plummer the reason we put the 18 months, we tried to keep speculators out of bidding for this 13 October 28, 1996 1 property and holding on to it and then trying to sell it to somebody else in the future. Mr. Atzman has provided us his plans to expand the facility. Typically, a new gas station like the one built at the corner of US 1 and 27th Avenue, built on approximately one -acre of land. Board Member Plummer: That's fine, thank you. Board Member Regalado: US 1 and where? Mr. Donnez: US 1 and... Board Member Plummer: 27th Avenue. Board Member Regalado: Would that have like a Subway and McDonald's and things like'that? Board Member Plummer: No, that's at... Mr. Donnez: I don't think he has enough land to add on other retail facilities but there's goist� to be a minimum, I think, it's going to have 10 pumps there, presently I think he has only 5. And presently he has only access to Biscayne Boulevard because he doesn't have any access to the 2nd Avenue so people will be able to, you know, have traffic from both directions. He's-006n 24 hours a day, and he's the only gas station in downtown. Board Member Regalado: Mr. Chairman, I would like, if possible, to have written in .the contract that Mr. Atzman will have information about the City of Miami for tourists in that are That a high density tourism area and I know for a fact because I've been asked many times directions from many tourists so if we can somehow have some kind of... not a booth but a place where we can place information about Miami, that will help tourism in the area, and of course it would be something that it would be good for the City of Miami. Mr. Donmez: We'll do that Commissioner. Board Member Regalado: Thank you. Sheila Anderson: May I respond, please? My name is Sheila Anderson, my offices are at 90 t N.E. 2nd Avenue around the corner from the gas station and they help people on a daily basis. I'm aware on Miami, and they have lots of information, and I know he would welcome more. Board Member Regalado: Thank you. Chairman Dunn: O.K. there's a motion... Board Member Gort: I was under the impression we already had passed this. Chairman Dunn: No, we opened it for discussion. Mr. Bailey: We passed it on the RFQ. Board Member Gort: Oh, O.K. Board Member Plummer: We had to go out to declare it surplus, and then go out for bidding. Board Member Gort: Right, O.K. Chairman Dunn: There's a motion by Mayor Carollo second by Commissioner Plummer. Mr. Clerk, will you call roll? 14 October 28, 1996 The following motion was introduced by Board Member Carollo, who moved its adoption; SEOPW/CRA MOTION NO.96-12 A MOTION AUTHORIZING THE SALE OF CRA-OWNED PROPERTY LOCATED BETWEEN BISCAYNE BOULEVARD AND N.E. 2 AVENUE AND NORTH OF N.E 9 STREET (APPROXIMATELY 6,250 SQUARE FEET) TO MR. ABRAHAM ATZMAN IN THE AMOUNT OF $310,000 FOR EXPANSION OF HIS CURRENT RETAIL OPERATION OF GAS STATION AT 1000 BISCAYNE BOULEVARD. Upon being seconded by Board Member Plummer, the motion was passed and adopted by the following vote: AYES: Board Member Joe Carollo Board Member J.L. Plummer, Jr. Board Member Wifredo Gort Board Member Tomas Regalado Chairman Richard P. Dunn, II NAYS: None. ABSENT: None. ---------------------------------------------------------------------------------------------------------- 8. DISCUSSION: DISPOSITION OF CRA OWNED LAND LEASE TO AREN,,'_ TOWERS, AND BAY VIEW APARTMENTS. Chairman Dunn: Next item. Mr. Bailey: Mr. Chairman, on the next item, we have in the past when we disposed of land fo development, and the three examples that I give you tonight with funding will be this Arena for which we own the land beneath it, Arena Towers which is across the street, Biscayne View and Poinciana Village. And we are experiencing that in terms of leasing land for various types of development causes some great difficulty when land has to be... goes into default and is resold, or when we into a situation where we are going to have condiminiums or home ownership on that land, and not only that, we found that the land is not taxable because we still own it. We would like to be able to just modify on a case by case basis and situations where we can sell the land to the developer at fair market value and recover that, the funds from those lands go back into our budget to be used for other types of development within the neighborhood and not that it increases our tax base. As you know it is taxes that gives us the revenues to pay for our bonds, and at the moment we are suffering about three to four hundred thousand dollars a year deficit in terms of revenue. So we are anxious to get more development going, and we are anxious to put more land on the tax rolls and also to make it more... facilitated better for developers who come in and develop on land that we're disposing of. So we want to be abl,,- to start selling land as opposed to leasing it. And we're short of money, by the way. Board Member Plummer: So what are you asking of this board tonight? Mr. Bailey: We're asking this board to at least recognize the fact that we would have the optic!', on a case by case basis, when we have a developer, such as Related and the one that's coming 15 October 28, 1996 ;1, up, we have the option to sell the land or lease it, rather than just leasing it. We would prefer to sell it because that solves the burden in terms of the tax situation. Board Member Plummer: Would this board make the decision? Mr. Bailey: Yes, we... Board Member Plummer: In the final analysis, wouldn't this board be making the decision? Mr. Bailey: Well we've always recommended the lease, and we were instructed years ago to make a recommendation on the lease, and this goes back to 1985 when we did the Arena and these other places. Board Member Carollo: How big of a piece of property of a parcel are we talking about here'? Mr. Bailey: Well in the Related situation, it's two blocks. And we're talking about 4.2 acres:.. Board Member Carollo: 4.2 acres? Mr. Bailey: Yes. Board Member Carollo: What do they need it for? Mr. Bailey: We're building home ownership townhouses on those two blocks and there =.Pitt be fee simple ownership on the property, on the townhouses. Board Member Carollo: That's what I'm talking to... Mr. Bailey: I'm sorry. Board Member Carollo: O.K. it's presently leased to Arena Towers and Biscayne View Apartments? Mr. Bailey: Arena Towers and Biscayne View Apartments it's leased to them now and actually they're in foreclosure and being resold and it comes up as an impediment to future buyers because they don't own the land underlying, the underlying land under the building. We'd be glad for them to have it because it puts it back on the tax rolls, and it gives us much Deeded -cash to do other developments. Board Member Carollo: Do we have any kind of appraisal on it? Mr. Bailey: We would appraise each one, yes. We don't have an appraisal now, but before we dispose of any land we appraise it and we come back before this board to determine what fair market value should be. It may not necessarily be the appraised value but it's whatever the fair market value is... Board Member Carollo: How many appraisals do you usually do, Mr. Bailey? Mr. Bailey: We get two maximum, sometimes we get one, but in the case of this type, where it's quite large, we would get two appraisals. Board Member Carollo: How do you go about in finding what appraisal companies to use? 16 October 28, 1996 Mr. Bailey: We've been using those that have been dealing with the City over the years. We either pull from the existing list, and if we can't find one that's credible enough to do that type of appraisal, then we'll go out and we'll bid for it. Board Member Carollo: Well, I'd be happy to approve it, to see only what kind of monies we can get out of it. I would like for this board to pick the appraisers for them and see what list we're coming with, and then we could choose two appraisals, feel free to recommend whatever two you think we should have. Mr. Bailey: We will bring you a list and we'll accept any names you want to add onto that list for your approval. Board Member Plummer: Well, I think one of the things that needs to be discussed $s we've really taken a schlocking in some of these foreclosures that we just lost everything. We just lost everything we had as far as an investment or financial was concerned. And in this particular' case, not this individual case, but that that's recommended here this evening for consideration, I think had a great merit because of the fact if we buy the property, if we sell and they biq the property, we're out and clean. And if they take a loss or go into foreclosure they take the hundred percent of the loss. So I think that has merit. Whether it's this particular parcel or some others. Chairman Dunn: Mr. Gonzalez. Manuel Gonzalez-Goneaga: Yes, well let's go back to history, whereby things were .,done wrongly from the start and approved by previous commissioners, some of them still a':ive C.' en though they own funeral homes, and who but... Board Member Plummer: Sir, do you have any comment to make about me? Mr. Gonzalez-Goenaga: No, I don't... Board Member Plummer: Be man enough to do it. Mr. Gonzalez-Goenaga: I just said it. Board Member Plummer: Do you have, you calling me by name, be man enough to stand up and talk like... Mr. Gonzalez-Goenaga: Well everybody know that you own a funeral home. Board Member Plummer: Yeah, but there's a lot of funeral homes in this town, now you got some comment about me? Mr. Gonzalez-Goenaga: Mr. Plummer. Board Member Plummer: Thank you, sir. Mr. Gonzalez-Goenaga: O.K. and I don't think I am a chicken... Chairman Dunn: Mr. Gonzalez... Board Member Plummer: I didn't say you were chicken. Chairman Dunn: I'm going to ask that you refrain from personal comments. 17 October 28, 1 Q96 Mr. Gonzalez-Goenaga: O.K., but the issue is that this is no regarding personality, this is regarding procedures that have gone on and on here for many years, and with due respect, now I have a stupid question, and I want to have an honest answer. In the foreclosure of the Arena. Towers, we own the land where the Arena Towers is built on, right or wrong? Mr. Bailey: Yes. Mr. Gonzalez-Goenaga: Are we in first mortgage or second mortgage? Mr. Bailey: On the land, we're the only mortgage. It's a lease, it is not... Mr. Gonzalez-Goenaga: It's a land lease? Mr. Bailey: It's a land lease. Mr. Gonzalez-Goenaga: If the whole place is foreclosed, what our legal position? Mr. Bailey: We still own the land, and the new buyer would have the rights to the lease fcr the terms of the lease. Mr. Gonzalez-Goenaga: And what the mortgage on the land? Did we subordinate it to the bank? Mr. Bailey: No we did not, we... Mr. Gonzalez-Goenaga: So it's free and clear? Mr. Bailey: It's free and clear, yes. Mr. Gonzalez-Goenaga: The land is? Mr. Bailey: Yes it is. Mr. Gonzalez-Goenaga: That's a formal statement? Mr. Bailey: That is correct, and it's a formal statement, and it's public record. Mr. Gonzalez-Goenaga: Well, I thought we were in a worse position? Mr. Bailey: No. Mr. Gonzalez-Goenaga: And then in the additional land, I, just to give to you an example, this is not the first time I've come here, I brought from Washington, D.C., Mr. Solomon. And Mr. Solomon is ready, willing, and able to do affordable housing here. I made a presentation and this is the third time I've said it, and they took me as a joke. The man is a millionaire from Washington, D.C., and he has been doing houses in Texas, he has been doing houses in Puerto Rico, and in the islands... full, concrete houses for profit. And you can rest assured that if they are being done in Texas and in Puerto Rico for profit and much less than eighty thousand dollars like the ones we have some other places, we must do affordable housing for profit or non-profit. Sometimes I think that profit is better because then you get accurate supervision, and, in case you don't know, I have long experience in banking. For Banco Popular de Puerto Rico who is a ten billion dollar asset bank and has Southeast went down, and Banco Popular is very profitable, you can check my records there. Besides my family are a strong minority shareholders, Tin proud of it. So let's start doing our homework, and let's do affordable housing not to increase 18 October 28, 199t, the pockets of the few but to make real affordable housing to the buyers, and I know that's the procedure of HUD, let's do something about it. I have the solution, I have said it, but I don't have only two minutes and nobody pays attention. Thank you very much and I appreciate. incidentally, I didn't know that you were more qualified than me and all the other candidates. Thank you. Chairman Dunn: Thank you. Thank you very much. Is anyone else from the public desiring to speak? What is the pleasure of this Commission? Board Member Gort: Well I'd like to see, my understanding is that the recommendation is you're going to do a study and you're going to come back to us, and you're going to let us know what the value's going to be and what's going to be put back on the tax rolls. I don't have any problem with that. We have to make the final decision anyway. Board Member Plummer: That's for sure, I agree. Chairman Dunn: Alright. ---------------------------------------------------------------------------------------------------------.,....--- 9. DISCUSSION CONCERNING MR. SOLOMON YUKEN IN CONNECTION WITH THE ARENA SQUARE APARTMENTS. ---------------------------------------------------------------------------------------------------------------- Chairman Dunn: Item number 9. I'm going to ask if Mr. Bailey would speak, and then we will hear from Ms. Yuken and, Mr. Bailey. Mr. Bailey: We have a request for a personal appearance from Mr. Solomon Yuken. Mr. Yuken is a rehab developer in Overtown, and he is, as I understand, the chairman of the apartni;nt association for which I attended the meeting. If I have been wrong, at least your in charge w J1 that group and we met with most of the property owners. He wants to request from thiv -;oard, their approval on what the City Commission has already approved in a resolution to gran one point two million dollars ($1,200,000) as support for his application to rehab Arena Square -159- units in Overtown which has gone into foreclosure and in various states of disrepair. We irv;ted him here so he could present you with his proposal and how he's going to do the rehab on those units. Chairman Dunn: Is Mr. Yuken present? Yes would you come forward please. Mr. Salomon Yuken: Good evening, my name is Solomon Yuken, and I brought my attorney Lynn Washington of Holland & Knight. We want to show to you the financial condition of our deal in terms of investors coming forward to invest in this property. Mr. Lynn Washington: Good afternoon, Lynn Washington, Holland & Knight, 701 Brickell Avenue. What Mr. Yuken has asked me to do is to give you just a brief overview as to how his deal is different from the old deal and how we plan to finance the rehabilitation of these projects. I guess that the first thing I'd like to make clear is that this project has been purchased by totally new developers, and the investors that are coming in are totally new investors. There were some money here that City had invested before they had that was wiped out by virtue of foreclosure but this developer that is now acquiring the property was not involved with that particular transaction. Those investors that brought the tax credit are not involved with this transaction. What I do for investors or the client is I help those clients find monies from investors that are out of town that will come in and buy these tax credits. We now presently have about four to 19 October 28, 1996 Fortune 500 clients that are looking at purchasing these tax credits including equity into these and deals. When we looked at the old transaction, everybody involved-- the old bond holders, the old tax credit buyers, and including the City, everybody did take a potential,, took a majoi, hair cut on those old deals. By you putting in your new money into this deal, what you allow.is you help the investors come in, you help property to be owned by people outside of Miami to have those types of Miami properties in their portofolio... you help affordable housing. Board Member Carollo: That's great and that's what we're doing, but, I'm sure that he realizes that if it weren't for the monies that we put in originally, he wouldn't be here today to ask for more money. Mr. Washington: Oh he can definitely get... Board Member Carollo: So we need to work something out that a fair deal is worked out with us on the remaining eight hundred and eighty-five thousand dollars ($885,000) there owed. Mr. Washington: I don't have the authority to do it. Client is here himself tonight. He can speak to that, but I think that what we... we can sit down and we can look at objectives of the project, and see what types of cash flow is available and if there's anything we can do. Put I just have not been presented with that as something that I'm supposed to do. Board Member Carollo: It's obvious that if you think you can get away with not paying the government $885,000 that's the easiest way of going. Mr. Washington: Again, if this client were not here asking you for the additional one point h, then that old eight hundred would be lost. Board Member Carollo: But the fact is that he is. So if he wants the additional one million two hundred and fifty thousand dollars from us, I think he better come up with something that's reasonable, that we can recoup some of the monies that we have laid out, otherwise, he cal: go somewhere else and borrow the one point two five. Yeah, I don't blame you. If I were in your shoes, I'd try the same thing. At least you don't have twenty lobbyists trying to barag,�ns wYth it. I thank you for that. Mr. Yuken: First of all, I want to clarify for the record that we are talking here, right no we are having a conversation regarding eight hundred and fifty-five thousand dollars ($855,00 ) don't have no... nothing to do with that, this corporation don't have nothing to do with .that and that whatever it was done in 1989, which I didn't even know those persons that was doing that type of deal, it's nothing to do with us, with the people that owns the bond today, and the people that owns the property today. I own the property today from the deal that I did with the bond holder, the new bond holder. The old bond holder that took of a half million dollars, thew lost as tremendous amount of money and were bought by the new bond holders, so they took+a bath. The tax credit buyer bought the first tax credit, they have been also out and now they are getting, they're getting recapture by IRS, so that's another loss from the people that invested on the tax credit. So everybody took that particular propertya bath on. I come to the property with the following condition: the new bond holders will go forward all the way to the fifteen year compliance for the tax credit, and by doing that they have to come up with a forbearance agreement. A forbearance agreement, that means that there is no hammer on the property, or any new monies, or any investment on anything that is going to be on those properties, which means that the properties are secure to be successul for the future because the investors, the bottom line on the investors, are going to be the cash flow that are going to be left over after operations are failed. Board Member Carollo: I could understand, Lynn, and I could appreciate all that, bVA'What I'm saying is that if you want a million two hundred and fifty thousand dollars ($1,250,000) from us, 20 October 28, 1996 we would like to negotiate something like you apparently have done with other bond holders on' the eight hundred eighty-five thousand, two hundred and ten dollar loan that's still outstanding to US. Mr. Yuken: I will give you my promise that I will sit down with Mr. Bailey, with the .bond holder, with the bond holder has to be also part of it... Board Member Carollo: Of course, of course. Mr. Yuken: ... and the new investors are coming in which is a corporation of the Fortune too that's going to be invested in this deal, so they are going to come in and we will sit down and )v t will finalize and... Board Member Carollo: That's all that we're asking. Something that you can live with, we'+can live with and we can recoup some of that back, that's all that we're asking. Mr. Bailey how`long do you think that might take you to accomplish so that this could then come back to us? Mr. Bailey: We can have it back at the next Overtown meeting, Mr. Mayor, which will be in January, no December 18th... Board Member Carollo: No, November 18th. Mr. Bailey: December 16th. November is the Omni. Chairman Dunn: December 15,... 15,... 15. Board Member Carollo: That should be plenty of time for us to be able to accomplish this. Mr. Bailey: That's the 16th. Board Member Plummer: 15th. Mr. Yuken: We have a... Board Member Plummer: December 15th. Mr. Yuken: We have a problem... Board Member Plummer: Wait, wait, hold on, hold on. We got two different dates here. Yours says December 16, mines says December 15. Hello, what is the Monday? Chairman Dunn: The 15th. Board Member Regalado: The 15. Board Member Carollo: Well, if he's got a problem with timing the quicker that he could accomplish it, I'm sure the chairman would call a... Mr. Bailey: It is the 16th... I'm sorry. Board Member Carollo: I'm sure that if he could accomplish something quickly the chairr n would be able to call a special meeting where we could meet just for this. Mr. Yuken: Yeah because the investor has to come in and they have to sign the contrr.kct, pan they won't be able to do that until this is resolved. So it's a... 21 October 28, 1gty Chairman Dunn: So... what type of time frame are you dealing with? Mr. Yuken: Right now we're trying to sign the contract by November 15th so they can be vested for the balance of the year, so that's one of the situation, and we have to go for an application in front Tallahassee Housing Finance Committee, and we have to start that by December 2nd. So, you know, time is of the essence at this point. Chairman Dunn: Mr. Bailey, would you be willing to... Mr. Bailey: Yes, I tell you what we can do, Mr. Chairman, this is a home grant, it's really a non - amortising loan and we can get with the housing department, what we might suggest is modify the amortization so that the... that would be some positive payment which would be modified from the... what we are forgiving the stage of the loan. See under the home grant, after you hold the money for a few... for a period of time, and you keep the property in place for a period of time, we forgive a certain amount of that grant loan. And what I'm saying is that maybe we can modify that and maybe we'll forgive, maybe, 70 percent, 20 percent, 80 percent whatever, but we would modify it such a way that through the life of this process, that would be some funds coming to the cash flow. Board Member Regalado: Mr. Bailey? Mr. Bailey: Yeah. Board Member Regalado: Suppose that we don't reach any agreement with Mr. Yukon, supposf, that what he offers, we won't accept, so what's going to happen with the property? Mr. Bailey: Well, Commissioner, I'm glad you asked that because I was in a quandry today:. We have 559-units in a severe state of disrepair and we had already at this Commission and at this board indicated one time we were not doing any more rehab in Overtown. Howevct, _ won't get to that property for any serious redevelopment for maybe ten years or better, and so we have a decision as to whether do we let it sit there and deteriorate further, or whether we try to do something and keep it in at least condition for which we think would be representative of what residents ought to be living in Overtown, and maybe at some later date we can go in and do a full development. So if we don't, we don't approve this, I guess Mr. Yuken will probably try to find the monies somewhere else, it's a lot of money. He does need this amount of money k.3 get a better rating at the State on the tax credit because you have to have an indication of loci! government participation in a partnership in order to get a high enough ranking so he would be able to get the tax credit granted so he can sell it to the Fortune 500 companies. So to answe.r your question in short-term is that if we don't approve this he perhaps won't get the tax credits. Mr. Washington: I can tell you that if you don't approve this, he won't get a tax credit. Mr. Bailey: Yeah well, I'm pretty sure he won't because he won't be able to... Board Member Regalado: O.K., if we do when would you start construction? Mr. Yuken: By January 1st... Chairman Dunn: Next year. Mr. Yuken: We'll start... we have two phases, phase one and phase two, we'll start with the buildings are right now closed and boarded up, and make it brand new, I have a rendering here that I can show you. We're going to do, in somewhere, somehow, that the buildings will come 22 October 28, 1996 out of the square box it is today and will blend with the rental townhouses that are across the street. We have had meetings with HUD with Rene Rodriguez, in regards to joining forces and making sure that that area to remains clean and becomes clean. I have here Maquines, the commanding officer of Overtown, and Miranda Albury from the NET Overtown office dtxector which can give you some history, short history of what I have been accomplishing in Overtown, what has been my accomplishment together with Ted Wisedale, and together with other owners, we have been fighting to get Overtown clean. So this not only a situation of a development and making money, this situation of also help to the community at large. One of the other things that, we're doing in Overtown for this project to get the application going is on the south side of the building on south side which is 10th and 11th Street we're going to do a daycare center which we already have the people from Ayuda and that are very well known in the area to do that. HUD back us up with their daycare center which is tremendously first class, so HUD. said that ' we can join venture and get that daycare center going... Mr. Bailey: That's Dade County HUD, would you make it clear please. Mr. Yuken: Yes. Then we're going to have on the 9,000 square feet of space, commercial space, that we have, we'll try to convert it to a food court by engaging all the big fast food corporations to come in and put a training center on each, while them, some of then, "o come in so they can train the Overtown residents, and by training them on the basis of getting more ,jobs and getting the people to introduce them to the job market which is also very important considering what the welfare is going on today. Also we're going to do on the north side next to the Freezone, we're going to do a vocational school with the... for people that would like to start on computer basis, first learning computer. They will take the first six months of learning of computer and then they will go on to additional schools or go to Miami -Dade to get the basc computer learning. This is going to be basic and then going forward to and then into the .job market. This is what we have to do as developers to help the community. This is not the development in Claughton Island. This is not development in Kendall, this not develMlner � in Brickell. This is development in a low income housing. If the developers don't give something back to the community and help the community at large, then we are not going to help oursely because we will not have a development there in five years. Chairman Dunn: And you are to be commended for that. Do you have any renderings with yon? I just wanted to see that. And you understand our position in terms of, you know, we dor:'t wa. i,, to be left holding the ball completely. Mr. Yuken: This is the avenue... Chairman Dunn: That's nice. Mr. Yuken: When you come from 3rd Avenue to the back of it here is the land for the Free zone right at the back so this... Board Member Gort: Excuse me, your first phase is going to be right south of the Free zone? Mr. Yuken: Yes. Board Member Gort: Those buildings in there? Mr. Yuken: Right. Notwithstanding that the needs of the Free zone that will have a new labor market is going to be big, they will be housing, so they don't have to commute, they don't have to spend money, this is important to me. Mr. Bailey: I would just like to say that on the southwest corner where those properties are we have a development with St. John which we're going to build some new rental units there, so 23 October 28, 1996 there'll be some new construction there. I just also want to make it clear that our opposition, similar to what the Mayor is saying in turns of putting new money into this, we have in the past traditionally, not put new money into a property which has lost us money, and this was the reason that we recommended that we not involve ourselves, and I think what the Mayor has come up with as a modification might sort of resolve some of those issues. Chairman Dunn: What is the pleasure of this Commission? Board Member Plummer: I assume we're sending it back... Board Member Gort: My understand is they're going to go back and negotiate what type' of payment is going to be made to the CRA, and to the City. They're going to come back to us, I think what we're doing is deferring this item. Board Member Carollo: Yeah, and we'll call a special meeting the minute that you can negotiate with Mr. Bailey and bring something to us that makes sense to both sides. Board Member Regalado: Mr. Mayor, the City needs to resolve this problem, and Mr. Yuken, I'm sure that he's eager to either go ahead and start construction, or go somewhere else. So how long are we talking in terms of... Board Member Carollo: Basically it's up to him. The quicker that he could sit down with Mr. Bailey and come to an agreement, the quicker that the chairman, Commissioner Dunn, can call a special meeting. Mr. Bailey: We can do that, we can conclude this by Friday. Mr. Yuken: We need a board to convene to approve this? Board Member Carollo: You will need a board, yes. Chairman Dunn: Finally. Board Member Regalado: Not to discuss what you going to present us, you just... Mr. Bailey: We will have this finished by Friday. The housing department is moving but wz: can also hold one of their people... we can have these calculations completed in one day or two days and have your meeting. If you can get your investors down, I don't know whether you need them, or if you do need them... Board Member Regalado: Do you want to do it on Monday? Board Member Plummer: Monday. Board Member Regalado: Next Monday? Board Member Plummer: Yeah. Mr. Bailey: ... we can do that recommendation real quick in a day or two its just a matter of, you know, computers. Board Member Regalado: Can we do it at next Monday? Mr. Bailey: Yes, we can have it done. 24 October 28, 1996 Chairman Dunn: Mr. Clerk, is that... Walter Foeman (City Clerk): As far as the advertisement? Chairman Dunn: Yes, that... next Monday. Board Member Gort: We could probably do it at the Commission meeting. Board Member Plummer: Oh wait, Mr. Benjamin wishes to be heard. Chairman Dunn: The commission meeting? Board Member Carollo: Wednesday, Wednesday. Board Member Gort: Yeah but I'm thinking about doing... instead of having it here havc at the Dinner Key. Board Member Carollo: You sure? Board Member Gort: Since it's only that one issue. Donald Benjamin: Mr. Chairman, and members of the CRA, I'm not here to speak either or or against this, but I've heard several references to supporting entities in the community, but there's not one reference to the Overtown Advisory Board. And I think it's very important that al::ts matter should be heard by the Overtown Advisory Board before you make any decision. That's all. Chairman Dunn: Thank you. Board Member Plummer: How soon can you hear it? Mr. Benjamin: Oh I'm not on the Overtown Advisory Board. Board Member Plummer: Well, that, that doesn't... Hammond Noriega: It could be done on the 7th of November, we have an emergency meeting f can get them on the agenda. Board Member Plummer: Well, time is of the essence, that's the whole name of this game. Mr. Noriega: The 7th is next Thursday. Chairman Dunn: Next Thursday, yeah. Mr. Bailey: We will be finished by the end of this week. We'll have those numbers. We car.► crank them out in one day. Mr. Noriega: O.K. Thank you very much. Mr. Washington: Thank you. Board Member Carollo: Thank you. 25 October 29, 1996 Chairman Dunn: Thank you. I believe that concludes... are there any other issues or items to he discussed? Board Member Plummer: I move we adjourn. Always in order. Chairman Dunn: Meeting adjourned. Mr. Bailey: Mr. Chairman, I know we're in a hurry, and you're tired and so are the rest of the Commission, but there is a suggestion that we discussed that I thought maybe might alleviate a lot of situation as it relates to the Commission meeting every two months... twice every month with the CRA, do you want to go into that now or do you want to hold .it for another time. Chairman Dunn: Can we have the meeting first? We need to probably set a time frame, we didn't get a time certain for... Mr. Bailey: For Monday. Chairman Dunn: Is it Monday? Mr. Bailey: That's when you said you wanted to have the meeting... Chairman Dunn: Monday is going to be the time when we're going to have the meeting? Is that, is that okay with the... Board Member Regalado: Well, he said, they need... Chairman Dunn: ...the Board Overtown is November the 7th. What's the following Monday, I'm not... Board Member Regalado: It's the Omni, the following is the Omni... Chairman Dunn: Is that right, it's actually the 11th, no, I can call a special... November the :h would be the following Monday, would that be too long? Mr. Yuken? Mr. Yuke.;I, November 11th be fine to come to the final meeting? It's Veterna's Day. O.K. we'll cLwe''!': call it. Once you meet with the City Manager, Assistant City Manager and the Ov. )w,_ Advisory Board meets we'll get a time, alright? THERE BEING NO FURTHER BUSINESS TO COME BEFORE THE SOUTHEAST OVERTOWN PARK WEST/COMMUNITY REDEVELOPMENT AGENCY, THE MEETING WAS ADJOURNED AT 8:07 p.m. ATTEST: Walter J. Foeman CITY CLERK Maria Josefina Argudin ASSISTANT CITY CLERK Richard P. Dunn, II CHAIRMAN (SEAL) 26 October 28, 1996