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HomeMy WebLinkAboutSEOPW OMNI CRA 1998-11-16 MinutesCITY OF MIAMI COMMUNITY REDEVELOPMENT AGENCY MINUTES OF MEETING HELD ON November 16, 1998 PREPARED BY THE OFFICE OF THE CITY CLERK/CITY HALL Walter J. Foeman✓Cily Clerk INDEX MINUTES OF COMMUNITY REDEVELOPMENT AGENCY MEETING ITEM NO. November 16,1998 SUBJECT LEGISLATION 1. PRESENTATION/APPROVAL OF KPMG PEAT MARWICK 11/16/198 AUDIT OF SOUTHEAST OVERTOWN/PARK WEST DUSCUSSION TRUST FUND — PERSONAL APPEARANCES: KENNETH 2-5 DEON, PARTNER, KPMG PEAT MARWICK — DONNOVAN MAGINELY, SENIOR MANAGER, KPMG PEAT MARWICK. 2 AUTHORIZE KPMG PEAT MARWICK TO AUDIT ALL 11/16/98 PRIOR AUDITS OF SOUTHEAST OVERTOWN/PARK R 98-26 WEST TRUST FUND --SEE LABEL 15. 5-9 3 AUTHORIZING KPMG PEAT MARWICK TO PREPARE A 11/16/98 STUDY OF TRENDS AFFECTING THE TAX BASE OF SEOPW/CRA R 98-27 THE CRA. OMNI/CRA R 98-7 10-11 4 AUTHORIZE KPMG PEAT MARWICKT TO STUDY 11/16/98 EFFECT OF CONVERSION OF PROPERTY OWNERSHIP SEOPW/CRA R 98-28 TO GOVERNMENTAL OR TAX EXEMPT OMNI/CRA R 98-8 ORGANIZATIONS ON COMMUNITY REDEVELOPMENT 11-13 AGENCY. 5 (A) AUTHORIZE KPMG PEAT MARWICK TO PERFORM 11/16/98 RISK ASSESSMENT AUDIT OF POINCIANA VILLAGE SEOPW/CRA R 98-29 CONDOMINIUMS PROJECT. SEOPW/CRA (B) AUTHORIZE KPMG PEAT MARWICK TO R 98-29.1 STUDY/ANALYZE FEASIBILITY OF DEVELOPMENT OF SEOPW/CRA POINCIANA VILLAGE CONDOMINIUMS PHASE IV AS R 98-29.2 14-19 CONDOMINIUM UNITS/ROOM HOTEL OR EXTENDED STAY FACILITY. (C) AUTHORIZE KPMG PEAT MARWICK TO CONDUCT MANAGEMENT AUDIT OF HOMEOWNERSHIP ASSOCIATION FOR POINCIANA VILLAGE CONDOMINIUMS. 6 AUTHORIZE KPMG PEAT MARWICK TO AUDIT ALL 11/16/98 PARKING REVENUES WHICH CRA WAS ENTITLED SEOPW/CRA R 98-30 FROM DEPARTMENT OF OFF-STREET PARKING. 19-20 7 (A) ACCEPT/FORWARD CITY MANAGER'S ANALYSIS 11/16/98 OF OMNI TAX INCREMENT TRUST FUND AND SEOPW/CRA INTERLOCAL COOPERATION AGREEMENT WHIT M 98-31 MIAMI-DADE COUNTY TO KPMG PEAT MARWICK FOR SEOPW/CRA R 98-32 REVIEW - DESIGNATE BOARD MEMBER PLUMMER AS SEOPW/CRA R 98-33 COMMITTEE OF ONE TO WORK WITH AUDITORS ON 20-44 SAID REPORT - FURTHER INSTRUCTING CITY MANAGER TO PLACE IN ABEYANCE ANY RELATED FUNCTIONS UNTIL BOTH AGREEMENTS ARE SIGNED BY ALL PARTIES - SEE LABEL 8. (B) APPROVE COMMUNITY REDEVELOPMENT AGENCY CONSOLIDATED BUDGET FOR FISCAL YEAR 1999 - DISCUSS / DESIGNATE COMMISSIONER GORT TO STUDY FEASIBILITY OF EXPANDING THE COMMUNITY REDEVELOPMENT AGENCY BOARD BY TWO ADDITIONAL MEMBERS. - SEE LABEL 8. (C) APPROVE $15,000 GRANT TO MOUNT ZION COMMUNITY DEVELOPMENT CORPORATION - FOR REIMBURSEMENT FOR COMMUNITY SERVICES PERFORMED ON BEHALF OF COMMUNITY REDEVELOPMENT AGENCY -- FOR PREPARATION OF U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT HOMEOWNERSHIP GRANT APPLICATION - SEE LABEL 8. 8 APPROVAL OF CRA DRAFT OF "INTERLOCAL 11/16/98 COOPERATION AGREEMENT" BETWEEN THE SEOPW/CRA COMMUNITY REDEVELOPMENT AGENCY AND THE M 98-34 CITY OF MIAMI [NOTE: CITY OF MIAMI DRAFT HAD SEOPW/CRA NOT BEEN RECEIVED AS OF PRINTING. M 98-35 OMNI/CRA M 98-9 45-99 9 DEFER CONSIDERATION OF ITEM PROPOSING 11/16/98 ORDINANCE PROVIDING FULL FUNDING FOR DISCUSSION COMMUNITY REDEVELOPMENT AGENCY FOR NEXT 99 FIVE YEARS. 10 APPROVE IN CONCEPT PROPOSED ORDINANCE 11/16/98 ESTABLISHING POLICY AND PROGRAM REVIEW SEOPW/CRA COMMITTEE - FOR PURPOSE OF ADVISING CITY M 98-36 COMMISSION ON COMMUNITY REDEVELOPMENT 99-100 AND FEDERAL HOUSING FUNDING ACTIVITIES. 11 APPROVE GRANTING SAWYERS WALK LTD AND MC 11/16/98 SQUARE PARTNERS, INC. AN EXTENSION UNTIL SEOPW/CRA R 98-37 FEBRUARY 5, 1999 TO COMMIT TO PROCEED WITH 100-104 UNIFIED DEVELOPMENT PLAN. 12 ACCEPT CITY ATTORNEY'S OPINION REGARDING 11/16/98 PARKING REVENUES GENERATED BY OFF STREET DISCUSSION PARKING FROM COMMUNITY REDEVELOPMENT 105 AGENCY —OWNED LOTS ADJACENT TO MIAMI ARENA. 13 AUTHORIZE SPECIAL COUNSEL FOR COMMUNITY 11/16/98 REDEVELOPMENT AGENCY TO PREPARE REPORT SEOPW/CRA R 98-38 REGARDING TRANSFER OF PROPERTY KNOWN AS 105-106 MIAMI ARENA LAND FROM COMMUNITY REDEVELOPMENT AGENCY TO CITY. 14 DEFER CONSIDERATION OF HISTORICAL FINDINGS 11/16/98 OF COMMUNITY REDEVELOPMENT AGENCY OVER DISCUSSION LAST FIVE YEARS. 106 15 CONTINUED DISCUSSION FROM ITEM 1B — REQUEST 11/16/98 CITY MANAGER TO EXTEND CITY AUDIT OF DISCUSSION COMMUNITY REDEVELOPMENT AGENCY FROM 1982 106 TO PRESENT — SEE LABEL 2. 16 ENDORSE / FORWARD TO CITY COMMISSION JOINT 11/16/98 APPLICATION WITH FORT LAUDERDALE AND WEST SEOPW/CRA R 98-39 PALM BEACH FOR GRANT FOR TRANSIT GREENWAY 106-111 AND TRI—CITY CORRIDOR STUDY. 17 (A) DESIGNATE VICE—CHAIRMAN GORT TO STUDY 11/16/98 PROPOSED EXPANSION OF COMMUNITY SEOPW/CRA REDEVELOPMENT AGENCY BOARD OF DIRECTORS M 98-40 TO SEVEN MEMBERS — FURTHER REQUESTING SEOPW/CRA REPORT WITHIN 180 DAYS. (B). AUTHORIZE R 98-40.1 SEOPW/CRA PREPARATION OF INTERLOCAL COOPERATION R 98-40.2 AGREEMENT WITH MIAMI DADE COUNTY FOR OMNI/CRA R 98-11 PERFORMING SERVICES, I.E., AUDIT AND SEOPW/CRA MANAGEMENT / MAPPING / PLANNING /TECHNICAL M 98-40.3 REVIEW. 111-113 (B) AUTHORIZE PREPARATION OF COOPERATION AGREEMENTS WITH DADE COMMUNITY FOUNDATION / GREATER MIAMI NEIGHBORHOODS / MIAMI CAPITAL, INC / MIAMI—DADE TRANSPORTATION AND EXPRESSWAY AUTHORITY FOR SERVICES FOR COMMUNITY REDEVELOPMENT AGENCY. (C) AUTHORIZE PREPARATION OF LEASE AGREEMENT WITH STATE OF FLORIDA DEPARTMENT OF TRANSPORTATION. 18 AUTHORIZE CONSULTANT CONTRACT WITH RETIRED 11/16/98 CONGRESSMAN WILLIAM LEHMAN FOR SERVICES TO SEOPW/CRA R 98-41 BE PERFORMED - FOR COMMUNITY OMNI/CRA R 98-12 REDEVELOPMENT AGENCY RELATED TO 113-114 TRANSPORTATION. 19 (A) DIRECT MIAMI CAPITAL INC TO PREPARE 11/16/98 FINANCING PLAN FOR BUSINESSES IN HISTORIC SEOPW/CRA R 98-42 NORTHWEST THIRD AVENUE CORRIDOR BY SEOPW/CRA DECEMBER 15, 1998 - FURTHER AUTHORIZE M 98-42.1 EXECUTIVE DIRECTOR TO NEGOTIATE FEE FOR 115-116 PROVISION OF SAID SERVICE. (B) ACCEPT COMMUNITY REDEVELOPMENT AGENCY'S LEGAL COUNSEL'S OPINION ON CRA ACTIVITIES OUTSIDE BOUNDARIES OF REDEVELOPMENT DISTRICTS. 20 AUTHORIZE CLOSING OF FISCAL YEAR ENDING 11/16/98 SEPTEMBER 30, 1998. SEOPW/CRA M 98-43 116-117 21 APPROVE 1999 STATE LEGISLATIVE INITIATIVE 11/16/98 ITEMS ON BEHALF OF COMMUNITY SEOPW/CRA REDEVELOPMENT AGENCY NAMELY PILOT SALES M 98-44 TAX /FRONT PORCH INITIATIVE / MISCELLANEOUS 117-119 FUNDING FOR CRA /SALES TAX ABATEMENT FOR BUILDING AND CONSTRUCTION MATERIALS. f MINUTES OF THE COMMUNITY REDEVELOPMENT MEETING OF THE CITY COMMISSION OF MIAMI, FLORIDA On the 16'b day of November, 1998, the Community Redevelopment Agency Board -- Miami, Florida, met at the Miami Arena V.I.P room in Miami, Florida. The meeting was called to order at 1:40 p.m., by Board Chairman Arthur E. Teele, Jr., with the following board members found to be present: Board Member Wifredo Gort Board Member Tomas Regalado Board Member Joe Sanchez Board Member J. L. Plummer, Jr. ALSO PRESENT: Hilda Tejera, Administrator/Acting Executive Director Robert Friedman, CRA Attorney Elizabeth McBride, CRA Attorney Walter J. Foeman, City Clerk Maria J. Argudin, Assistant City Clerk Chairman Teele: The time is a little passed one thirty. One of our distinguished members of the board of the CRA (Community Redevelopment Agency) has yet to arrive. We would like to move ahead, and we wouldn't... Here is Commissioner right now, so we won't have to delay. Is Reverend Phillips in the audience? Reverend Philips: Yes, sir. Chairman Teele: Reverend, I didn't... Would you bless us, please? Take the podium with an invocation. Would you stand for the innovation? Followed by the invocation we will have the pledge of allegiance to the flag. An invocation was delivered by Reverend Philips, after which Board member Teele led those present in a pledge of allegiance to the flag. November 16, 1998 1. PRESENTATION/APPROVAL OF KPMG PEAT MARWICK AUDIT OF SOUTHEAST OVERTOWN/PARK WEST TRUST FUND — PERSONAL APPEARANCES: KENNETH DEON, PARTNER, KPMG PEAT MARWICK — DONNOVAN MAGINELY, SENIOR MANAGER, KPMG PEAT MARWICK. Chairman Teele: This is a meeting of the Southeast Overtown Park West and OMNI Redevelopment districts known as the CRA (Community Redevelopment Agency) Board. I am going to ask everybody to, please, come in and have a seat. I don't want the Fire Marshall to get nervous or get excited here. Those persons that have signs, we normally don't allow signs. We would ask that you would hold your signs down perhaps and make sure that the wooden stakes, sticks have been removed. Mr. Goenaga, it's an honor to have you here. We have a seat we are reserving up front for you, because we know you always provide a commentary. This meeting is a meeting of the CRA and following this meeting, either the Mayor or Commissioner Plummer, who serves as the Vice Chairman of the Commission, will be presiding over a separate meeting of the City of Miami Commission. That meeting has been noticed for the Arena. This notice has been noticed for the VIP (Very Important Person) room. It will be up to the Presiding Officer as to whether or not you want to relocate, but I think the sound system is adequate. And that's a determination, Commissioner Plummer, you and Mayor Carollo can make. The CRA is represented today by the staff of the CRA, Hilda Tejera who is the Administrator and the Acting Executive Director. And, as members of the CRA know, I think Hilda has done an outstanding job in this transition process. One of the things that we have made a conscious effort primarily to the public is that the CRA for the last five years has not had funding for capital projects, and as a result... as a result, the CRA has maintained the staff. At the time that I was appointed Chairman, I instructed the Executive Director at that time, Mr. Bailey, that we would be reducing the staff until we had a capital plan that would be approved. One of the purposes of the meeting today is to address the long-term plan and the budget and the capital plan and with that approval we would be moving forward to carry out the already CRA agendas, resolutions relating to the Executive Director, the Deputy Director and the other staffing that will be necessary. I should report to the CRA that over the last 45 days, the Manager has seen fit to elevate one of the top persons of the CRA, Mr. Erdal Donmez and he has been appointed to the job as the Director of the Department of Development, and we certainly wish he and his family well as he assumes this great responsibility, and I know that he will continue to do well. Likewise, we have seen the transfer of several other persons, including the Office Manager back to the Office of Community Development, voluntarily, as well as other persons which presents a unique opportunity I think, to move forward with the consensus of the one issue that the Manager has said very clearly, that the CRA staffing should be independent of the City staff, and we totally agree with that. The... for the public information, the CRA is represented by our Acting Executive Director, Hilda Tejera. Hilda, if you would just raise your hand so the public knows. The Special Counsel who is walking in right now, Richard Friedman who will be taking a seat, assisted by Co -Special Counsel Elizabeth McBride who shall also be taking a seat and of course, the City Attorney serves under our Charter as the maximum leader of the legal staff. And, Mr. Attorney, if you could just take a seat wherever you would like to. But, you and your staff are certainly our maximum legal staff. Additionally the CRA has made, as we have always done, a copy of this agenda and the entire proceedings that are before us available to the Manager. Unfortunately, there was scheduling problems and I will report that I have not met with the Manager or his staff since the last Commission meeting, although within the last 72 hours there were some efforts, I think, but the Manager was on retreat. Without further ado, the first item in the agenda is the 2 November 16, 1998 presentation and the approval of the KPMG Peat Marwick. Is KPMG represented here yet? OK. KPMG, if you would just sort of take the mike here, and introduce yourselves for the record. We have a series of items, actually all of the one items relate to KPMG. And, in light of the fact that both Mayor Carollo, Commissioner Barbara Carey, and at least one person from the public have been calling for audits, we would like to just try to get this on the record at this time. The KPMG audit ending September 30, 1997, which is a year ago, has been performed. And, would you just put on the record your name, and that's been circulated, was circulated in draft I believe in July, and would you be available to answer any questions? But, I would like for you to determine, have you found or noted any substantial audit exceptions from the audit of last year? Mr. Kenneth Deon: My name is Kenneth Deon, I am a partner of KMPG Peat Marwick. To answer your question Commissioner, no we did not. Chairman Teele: No, you did not what? Mr. Deon: We did not find any exceptions. Chairman Teele: And would you introduce co...? Mr. Donnovan Maginley: I am Donnovan Maginley, senior manager of KPMG. Thank you. Chairman Teele: There are several issues, I think indicate KPMG audit. I don't know if my colleagues would like to just pause and ask any questions. Does everyone have a copy of the audit? Circulate it. Board Member Plummer: Did you find any red flags flying or in areas that we should be especially concerned about in that area? Mr. Deon: No, we did not. Chairman Teele: What period? Board Member Plummer: It's the one ending September... Mr. Deon: Thirtieth 19... Board Member Plummer: ... 30, 1997. Chairman Teele: It's only one year to qualify this. We are only talking about one year. Board Member Plummer: Well, but we do have on the agenda, Mr. Chairman, the last item is in reference to the authorization to close September 30r'' of '98. And, I would assume... Why do they...? I was going to ask the question, why do they need authorization? Chairman Teele: Well, they don't need authorization, staff... management needs authorization. I think... I think what we want to do is, is just sort of go down that... We'll come to that, but what management would like to do is get authorization for items that are related to FYI '98, that may need to be acted upon... 3 November 16, 1998 Board Member Plummer: Yes. Chairman Teele: ... before we turn it over to the auditor. Board Member Plummer: Can we extend the year? Chairman Teele: Can we extend the year? Good question. Board Member Plummer: I only have one other question, Mr. Chairman. I am going to be asking the same question about the legal firm as well as the auditing firm. When is the Peat Marwick Mitchell's contract up? When is it completed, the present one they are working with? Mr. Deon: This is the last year of the audit. The year ending September 30, 1998. Board Member Plummer: All right. And, I assume, Mr. Chairman we were going to go back out in a bidding procedure which is normal procedure or... who would be in the future? Chairman Teele: Commissioner, the way I would prefer to do this is, for the CRA in this case so that it's joined and we have unanimity in terms of both cost and audit that the City go forward and engage an auditor, and then the CRA would engage the same auditor as... Board Member Plummer: All right, well, the reason I am asking that is the `B" portion. The "B" portion is to authorize them to do September 30`h, '98, and the fiscal years '95, '96, '97, '98. Now... Chairman Teele: Well, this is the point. They are the City auditors through this year coming up. The year '98, fiscal year '98 ended on September 30`h. Board Member Plummer: Correct. Chairman Teele: Two months ago. So, we don't have a lot of choice, and quite frankly, the City doesn't have a choice, we have a contract with Peat Marwick and they are going to be doing the audit for the City, and this is just a normal routine action that, basically, would be resolution directing them to do the audit for '98. Board Member Plummer: Mr. Chairman, I am speaking, I would assume in portion `B" to '95 and '96. Ninety-seven, they have already done, is my understanding. Chairman Teele: Well.... Board Member Plummer: And, '98 they will do as to the closing of the year once the management has agreed that the year is to be closed. Ninety-five and ninety-six , who is paying them? How much is it? And... Chairman Teele: They would submit it... They would submit it back to us. What we have... Look, J.L., you are the expert here, you have been here. Board Member Plummer: I wish I was. 4 November 16, 1998 Chairman Teele: In '95, the City had an audit. Board Member Plummer: Right. Chairman Teele: The CRA had an audit. The audit was performed by a firm known as Watson Reiss. In '96, the City... the CRA had an audit in ninety... that was done by Sharpton and Brunson. Board Member Plummer: Right. Chairman Teele: Now, both Mayor Carollo, the Manager, Mr. Leroy Jones, Commissioner Barbara Carey have all called for an audit. In fact, the County has said "we want an audit of the last three or four or five years." And, I have said on the record, I think it's very curious that the audit period is going to begin when the current Mayor was excused from the Commission and the CRA. If you are going to audit the CRA, you should audit the CRA. I mean, you already have audits, so obviously, you are asking for something other than that. Board Member Plummer: Mister... Chairman Teele: I think you should audit the CRA from the beginning, 1982 going forward through 1998, and that's the only way you are going to clear the air because everybody is acting like there is something here and that we ought to get... We ought to all try to get to the bottom of it. Board Member Regalado: Absolutely. 2. AUTHORIZE KPMG PEAT MARWICK TO AUDIT ALL PRIOR AUDITS OF SOUTHEAST OVERTOWN/PARK WEST TRUST FUND --SEE LABEL 15. Board Member Plummer: Mr. Chairman, I have no problem with the audit, and let it proceed. I don't want that anyone company or companies feel that they have carte blanche, a blank check to go and to do whenever they want and however. I am saying is, that whatever work they have in progress now, they are in fact the company that has been chosen. But, in the future, I would hope, as well as the Legal Department, that in fact, we do in the Interlocal Agreement have the right to go outside of the City Attorney, if we so fit, of course at our expense. That we would... if we used a legal counsel, that it's not just automatic that we are going to use Company "A." I think we should hear from Company A, B, C, D, and then we'll chose which we think is best. The same thing applies in my opinion to the auditing firm. That there are many great auditing firms in this community, and I don't think anyone should have the lock on it. Chairman Teele: Commissioner, I am going to be very candid with you. Board Member Plummer: Yes, sir. Chairman Teele: I don't know where you are going or where you are coming from, or where you have been. I know one thing, we have got one auditor right now... Board Member Plummer: That's correct. November 16, 1998 4ll. Chairman Teele: ... that the City has a contract with. That contract expires in September or October of '99. Board Member Plummer: That's fine. Chairman Teele: OK. So, all of this discussion... I mean, I just want to know where we are going. Do we want an audit or do we not? And, I think somebody ought to move to audit the CRA from the beginning, that is a review of the audits that are already there and to compile one audit from the very beginning to the end... year ending '98, and that's going to be this firm. Board Member Plummer: So moved. Board Member Regalado: The only way to... Board Member Gort: Mr. Chairman. Board Member Sanchez: Wait, wait, wait. Board Member Regalado: Oh, I am sorry, go ahead. Chairman Teele: Moved by Commissioner Plummer. Board Member Sanchez: Second. Board Member Regalado: Second. Chairman Teele: Seconded by Commissioner... Board Member Sanchez: Sanchez. Chairman Teele: Sanchez. Commissioner Gort. Board Member Gort: Under discussion. My understanding is, we have had an audit since... And, my question to you sir is, if an audit has been conducted already, is it a lot easier for you to go back and check that audit or do you have to do the same work of going through the whole audit yourselves? Mr. Deon: We would look at the... what was done before... Board Member Gort: Right. Mr. Deon: ... in the previous audit, and if we could use that in our audit, we would do that as a basis. Board Member Gort: In other words, that should be able to make it a lot easier and it would be less expensive? Chairman Teele: A lot cheaper, too. 6 November 16, 1998 Board Member Gort: Right. Well, that's what I am getting, OK. Board Member Plummer: My,. My question... Chairman Teele: Hold on one minute. Commissioner.... Board Member Gort: J.L., I am.... Chairman Teele: Commissioner... Commissioner Gort has the floor, followed by Commissioner Regalado and, then, Commissioner Plummer. Board Member Gort: I think it's very important that we go through this, all this audit. And, I think it's very important that we clear a lot of points since a lot of us that have been here that have not been through the whole process. So, it would be good information for all of us to have that information. At the same time, later on, because there is a lot of misrepresentation out there and a lot of information that is not clear that I want to make sure that everybody understands the process and where we are coming from, and where we are at. That's the questions that I had. I think it could be done, and I don't know if you want to do it with the same firm and go back or you want to... Chairman Teele: Well, the point is this. We, we... The City has one contract and that contract is for audit services. And, just know that we are suing an audit firm. There are only five as I know, understand. They are going to hire an expert, and we are going to hire an expert, so you know we are down to, probably one firm left in terms of a big five firm. The advantage, and the thing that just totally befuddles me, and I think, you know the public is concerned that all of these calls for an audit are simply nothing more than a delay, a request for a delay. And, the fact of the matter is, the CRA which is the City Commission, sitting as the CRA Board has properly done an audit each year. Now, if the Mayor or the Manager has something about the most mismanaged agency in the County's history, they need to come forward with it. But, rather than getting into a long debate about this, I think the simplest thing to do is to designate an auditor, let the Manager and his staff and anybody who has something they want to come forward, go to the auditors or if they want to do what they have been doing, you know, go to the State's Attorney, they can do that too, and we can move on. But, the point here is that I think is important is that we should not let the need for an audit be viewed as a reason to delay anything. And, that's what I sense is happening,. Board Member Gort: No. I don't think that will be the case. Board Member Regalado: I just don't want to repeat anything that has been said here. But, just, I think that what we are looking here is not such a major technical overhaul, but that we need to clear the cloud that is hanging over the CRA. We are here sitting today and next month trying to pump resources into the CRA and with this statement and stories on the press, it would be very difficult. So, the sooner, the better. We have an auditor, so I would ask the members of this board to go forward because we need to clear the name of the CRA. And, I am ready to vote on this issue. November 16, 1998 Chairman Teele: All right, then the motion is amended. And, Madam Attorney, Mister Attorney, I know you all are prepared... Is there a motion on this directly? Because we are really on one beat. Commissioner Sanchez. Board Member Sanchez: I just would like some clarification that audit would be from 1982 to present. Chairman Teele: And, that is how the motion is stated. It would be 1982. Board Member Sanchez: Eighty-two. Chairman Teele: Eighty-two. Board Member Sanchez: Nineteen eighty-two, and the reason is, if I could have the floor, Mr. Chair? Chairman Teele: Yes. Board Member Sanchez: Is that... my understanding like Commissioner Gort stated, you know there is a lot that we haven't heard it. I didn't know much about the CRA, what's going on. But, there is a lot of money that has been brought to the Commission's attention that has basically been allocated through either State, City and other funds to the CRA for many, many years since 1982, which is approximately about seventy-seven point something million dollars. But where has that money gone? I mean, I don't see it. I don't see it when I take a tour of Overtown. I for one would like to know where that money is at, because you know what? I have... I have basically, since the seven months that I have been here in the Commission., you know, if we spent all that money, we were better off giving each resident of Overtown one hundred thousand dollars ($100,000) and let them either build a... start a business or buy a house. Board Member Regalado: Remember Reagan. [APPLAUSE] Board Member Regalado: They all remember Reagan with the limousine and the Metrorail. Chairman Teele: On the questions, and further readiness, all those in favor? This is actually 1-B as amended in favor of the CRA, the auditing, authorizing the auditing of the CRA from the beginning 1982 through the year of 1998 which is the upcoming year. Is there a readiness....? All... Board Member Plummer: I have two basic. How much and how long? Chairman Teele: ... would be... Well. Board Member Plummer: Hello? How much and how long? Chairman Teele: Well, the way this would normally work is that they would go out to do a scope of work, present a contract to the Executive Director of the CRA and it would come back to us for approval at that time. 8 November 16, 1998 Board Member Plummer: OK. Chairman Teele: And, we can probably meet in December just to go ahead and approve all of this or to act on it. All right. Is there further discussion? All those in favor say "aye." The Board Members (Collectively): Aye. Chairman Teele: Those opposed? Unanimous vote. The following resolution was introduced by Board Member Plummer, who moved its adoption: SEOPW/CRA RESOLUTION NO. 98-26 A RESOLUTION AUTHORIZING KPMG PEAT MARWICK TO CONDUCT A REVIEW OF AUDITS PREVIOUSLY COMPLETED FOR THE COMMUNITY REDEVELOPMENT AGENCY AND TO CONDUCT AND AUDIT THE SOUTHEAST OVERTOWN/PARK WEST TRUST FUND FOR ANY YEAR IN WHICH AN AUDIT HAS NOT BEEN PERFORMED; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR OF THE COMMUNITY REDEVELOPMENT AGENCY TO NEGOTIATE AND PREPARE A FEE AGREEMENT WITHIN THIRTY (30) DAYS RELATED TO THE SERVICES TO BE PERFORMED BY KPMG PEAT MARWICK FOR APPROVAL BY THE BOARD OF DIRECTORS OF THE CITY OF MIAMI CRA; PROVIDING AN EFFECTIVE DATE; AND FOR SUCH OTHER PURPOSES. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Board Member Sanchez, the resolution was passed and adopted by the following vote: AYES: Board Member Wifredo Gort Board Member Tomas Regalado Board Member Joe Sanchez Board Member J. L. Plummer, Jr. Chairman Arthur E. Teele, Jr. NAYS: None. ABSENT: None. 9 November 16, 1998 3. AUTHORIZING KPMG PEAT MARWICK TO PREPARE A STUDY OF TRENDS AFFECTING THE TAX BASE OF THE CRA. Chairman Teele: On item 1-C is a motion basically instructing the auditor to affect the trends, and this is normally what is done pursuant to the plan. The plan being... Board Member Plummer: Move it. Chairman Teele: Moved by Commissioner Plummer, seconded by... Board Member Regalado: Second. Chairman Teele:... Commissioner Regalado. All in favor say "aye." The Commission (Collectively): Aye. Chairman Teele: Those opposed? The following resolutions was introduced by Board Member Plummer, who moved their adoption: SEOPW/CRA RESOLUTION NO. 98-27 AND OMNI/CRA RESOLUTION NO. 98-7 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY APPROVING AND AUTHORIZING KPMG PEAT MARWICK TO PREPARE A STUDY OF TRENDS, PRACTICES AND OTHER FACTORS AFFECTING THE TAX BASE OF THE COMMUNITY REDEVELOPMENT AGENCY; AUTHORIZING THE EXECUTIVE DIRECTOR TO DETERMINE THE SCOPE OF SERVICES TO BE PERFORMED RELATIVE TO THE STUDY AND TO NEGOTIATE A FEE ARRANGEMENT WITHIN THIRTY DAYS FOR SUCH STUDY FOR APPROVAL BY THE BOARD OF DIRECTORS; PROVIDING AN EFFECTIVE DATE; AND FOR SUCH OTHER PURPOSES. 10 November 16, 1998 (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Board Member Regalado, the resolutions was passed and adopted by the following vote. AYES: Board Member Wifredo Gort Board Member Tomas Regalado Board Member Joe Sanchez Board Member J. L. Plummer, Jr. Chairman Arthur E. Teele, Jr. NAYS: None. ABSENT: None. 4. AUTHORIZE KPMG PEAT MARWICKT TO STUDY EFFECT OF CONVERSION OF PROPERTY OWNERSHIP TO GOVERNMENTAL OR TAX EXEMPT ORGANIZATIONS ON COMMUNITY REDEVELOPMENT AGENCY. Chairman Teele: The next is a motion to conduct a study of the effect of the effect of the conversion of property by government entities or tax exempt organizations on the CRA (Community Redevelopment Agency). Board Member Plummer: Move it. Chairman Teele: Moved by Commissioner Plummer. Board Member Regalado: Second. Chairman Teele: Second by Commissioner Regalado. One word of.. a note. Every time the federal government builds a building as they just acquired Channel... Board Member Plummer: Six. Chairman Teele: ... Six. Don't look at your... Every time they acquire a building as they just acquired Channel 6 for the purpose of building a courthouse, they basically are removing land from the CRA. They basically are removing land from the CRA. They are basically removing tax dollars from the CRA, and of course this trend has had a very, very negative effect. If you read the studies back in 1982, the CRA's tax increment district should be bringing in about four, five, six million dollars ($6,000,000). Right now we are bringing in less than two hundred thousand dollars ($200,000). And, it's not just the federal government, it's Miami -Dade Community College, it's the City, it's the State. And, I would hope that a part of this recommendation would be at least, that you look at our "Good Neighbor" policy and let's start asking governments to make payments in lieu of taxes and those kinds of activities that are recognized through the country. 11 November 16, 1998 Board Member Plummer: Yeah, Mr. Chairman, that's not the only one. Florida Power and Light is now putting in their cooling station. That's another property that's going to come off the tax rolls. Board Member Gort: Why? Unidentified Speaker: That's right. Chairman Teele: Florida Power and... Board Member Plummer: And there is any number of properties that are going to be coming off the tax rolls. Board Member Gort: Why? Chairman Teele: Well, J.L., my understanding, it's going to be on the tax rolls at a low base because of its use. But it's my understanding that Florida Power and Light does pay property taxes. Board Member Plummer: We will be getting a revenue source from it. Board Member Gort: Besides that. Board Member Plummer: In, in... I think in lieu. All right, OK. Chairman Teele: All right. Board Member Gort: When we are doing taxes we will get it in lieu. [phonetic] Question, Mr. Chairman. Chairman Teele: Well, the question is, where are those dollars going to go? See, because it's in the tax increment district and under the state law if it's in the district... That's another issue, and another time and another place, but... Commissioner Gort? Board Member Gort: My understanding the... you are going to... a lot of work, and I guess it's cheaper by the dozen or something like that? Mr. Deon: No comment. Chairman Teele: Well, that's the motion and the second. Is there an objection? All those in favor say "aye." The Commission (Collectively): Aye. Chairman Teele: Those opposed. 12 November 16, 1998 The following resolutions was introduced by Board Member Plummer, who moved their adoption: SEOPW/CRA RESOLUTON NO. 98-28 EMIWE OMNI/CRA RESOLUTON NO. 98-8 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY APPROVING AND AUTHORIZING KPMG PEAT MARKWICK TO PREPARE A STUDY OF THE EFFECT OF PROPERTY OWNERSHIP CONVERSION TO GOVERNMENTAL OR TAX EXEMPT ORGANIZATIONS MAY BE HAVING ON THE COMMUNITY REDEVELOPMENT AGENCY'S ABILITY TO REMOVE SLUM AND BLIGHT FROM THE SOUTHEAST OVERTOWN/PARK WEST AND OMNI REDEVELOPMENT AREAS; AUTHORIZING THE EXECUTIVE DIRECTOR TO DETERMINE THE SCOPE OF SERVICES TO BE PERFORMED RELATIVE TO THE STUDY AND TO NEGOTIATE A FEE ARRANGEMENT FOR SUCH STUDY FOR APPROVAL BY THE BOARD OF DIRECTORS; PROVIDING AN EFFECTIVE DATE; AND FOR SUCH OTHER PURPOSES. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Board Member Regalado, the resolution was passed and adopted by the following vote. AYES: Board Member Wifredo Gort Board Member Tomas Regalado Board Member Joe Sanchez Board Member J. L. Plummer, Jr. Chairman Arthur E. Teele, Jr. NAYS: None. ABSENT: None. 13 November 16, 1998 5. (A) AUTHORIZE KPMG PEAT MARWICK TO PERFORM RISK ASSESSMENT AUDIT OF POINCIANA VILLAGE CONDOMINIUMS PROJECT. (B) AUTHORIZE KPMG PEAT MARWICK TO STUDY/ANALYZE FEASIBILITY OF DEVELOPMENT OF POINCIANA VILLAGE CONDOMINIUMS PHASE IV AS CONDOMINIUM UNITS/ROOM HOTEL OR EXTENDED STAY FACILITY. (C) AUTHORIZE KPMG PEAT MARWICK TO CONDUCT MANAGEMENT AUDIT OF HOMEOWNERSHIP ASSOCIATION FOR POINCIANA VILLAGE CONDOMINIUMS. Chairman Teele: Commissioner Plummer, this is of special interest. This is the Poinciana Village. Basically what we need is a risk assessment and an audit of Poinciana Village project from the beginning of the project. This project has gone on for... Board Member Plummer: Ten years. Chairman Teele: ... over ten years, and it is less than 28 percent, 25 percent completed based upon on total number of units. There are a number of problems associated with this project not being completed. One of which is that the Homeowner Association that pays for the common expenses is very much in the red, in the negative. They have purportedly have lost over one million dollars ($1,000,000) or so in some of these expenses and we need to just understand where we are with this project. Board Member Plummer: Mr. Chairman, I move "E", "F" and "G" all relating to Poinciana Village. Board Member Sanchez: Mr. Chairman, I have discussion on the... Chairman Teele: Motion by Commissioner Plummer on the items relating to Poinciana Village, "E", "F" and "G." Board Member Gort: Second. Chairman Teele: Moved by Commissioner Plummer, seconded by Commissioner Gort. Discussion by Commission Sanchez. Board Member Sanchez: On the Poinciana, we have... It is my understanding, it has been brought to my attention that it is in either default or in the process of default, is that correct? Board Member Plummer: No. Chairman Teele: That is technically not correct, at all. In fact, they just signed the commitments with the bank. They are moving forward with the construction and they are on schedule. Board Member Plummer: As well as with Fannie Mae. Chairman Teele: As well as a partnership, restructured partnership with Fannie Mae. 14 November 16, 1998 Board Member Sanchez: And, that is in the area of the CRA (Community Redevelopment Agency), correct? Chairman Teele: That is within the CRA on 8th Street and Third Avenue, right directly in front of Greater Bethel AME Church. Board Member Sanchez: How many residents from Overtown rent or own property on the Poinciana? Does anybody? Chairman Teele: It's an ownership project. And, I saw one of our most distinguished residents of Overtown, she owns I think, four units there, three or four units there Mrs. Sawyer. But, please understand this, this is the only project that I am aware of - in the City - that is really being developed in the target area without substantial government assistance. This is a marketplace deal, and up until three years ago, or two years ago when the CRA provided a grant, I believe of about two hundred or three hundred thousand dollars ($300,000). Board Member Plummer: 1976. Chairman Teele: They had received absolutely no public dollars at all, and they are the only ones in that category that we deal with. Board Member Sanchez: My point here, Mr. Chairman is a simple point. It's a point that will not be, probably precede or may not be with some people. But, my thing is, that we have basically put some big projects in the area. We have spent a lot of money on those projects, and in the long run, I don't think that the people that live in the area benefited from it. Because, we could build all the condominiums we want, and we could build all the high-rises we want, but if they can't afford to own property or have an apartment, we are pissing off that money away, we are throwing it away. [APPPLAUSE] And, just to add on the properties that have been put in there, and I don't know the exact amount of money. But, you know, it's a shame because three out of the four or five big, big developments that have gone there are in default, they have not created any work for the residents of Overtown. So, to me, as a Commissioner and a citizen in the City of Miami, that money has basically been wasted. Chairman Teele: Well, I think there is going to be ample opportunity, I would only urge you to try very hard to make a distinction between the CRA projects and the City projects. And, there is obviously... I read the Manager's analysis of dollars, of money and there is so much confusion. I mean, I am just amazed that the Manager's Office, the Finance and Community Development Office have not made the distinction between the two projects and where the money has gone and come in. But, this project was a project actually that was bid in 1984. It was awarded, I believe in 1986, and it has been languishing now and moving forward for twelve years. And, I couldn't agree more with your comments. But, know there is a lot of history with this project, and most of it will pre -date everyone here. Board Member Plummer: Just for my colleagues edification since we can't talk except in the Sunshine. There is more than property ownership in this, because in the last phase of Poinciana it could be either 91 condominiums, I believe, or a hotel. Chairman Teele: Exactly. And, that's one of the things that we want to, basically, study 15 November 16, 1998 Board Member Plummer: It's viable. [phonetic] Chairman Teele: But, Commissioner Sanchez, I hope you will remember and bring this point back because in my judgment, the CRA and the City need to review the underlying ownership of this project. Because this project is actually a leasehold interest and none of the people who own the homes own anything but a leasehold interest and I think that's most unfortunate. Board Member Sanchez: That's... Mr. Chairman, if you may? That's where my biggest concern comes in, you know. If you are going to build it in Overtown and you are going to spend CRA money on it, it should be affordable and, basically, the residents that are in Overtown should have the first shot at it. Because one of the biggest concerns that I have when I did my research, yes, they are beautiful, but could the residents of Overtown afford nine hundred and one thousand dollars ($1,000) rent a month? No. So, you know, I have yet to find out. I am still doing some research on it, but I would like to know and see what kind of individuals have either bought the property or have invested a lot of money in that property, because yes, look at that gentleman back there, he has got a sign that says "We want jobs." Is that establishment creating any jobs? No. On the walkway, we spent two point five million dollars ($2,500,000). Did it create any jobs? No. What does it do? It's beautiful, yes, but what... most of the homeless are using it. It didn't bring any economical impact to Overtown, and that's the responsibility of the CRA, it's the responsibility to do as much as you can, and we have to recognize one thing. HUD (Department of Urban Housing Development) money, and people should be a little educated on this. That money, CRA money comes from the HUD money. And, I am not going to get into who is the poorest district, whether it's Overtown or Little Havana. Number wise, my district is the poorest district. Percentage wise, Overtown is the poorest district. But that money, there are guidelines that are distributed through the different cities, I mean different areas, target areas because of population, because of poverty and because of housing. And, every money... My biggest thing is with the CRA, that all the money that has been spent in that area, you know who benefits from it, the people that are either politically connected or the people that have the bucks or the people that have the influence. The people that are out, that they need to help, they don't get it. So, why should I keep giving money to the CRA when, basically, somebody else is enjoying it, pocketing it, taking it all while the citizens continue to suffer. Yes, have they been raped, lied and cheated, yes, they have. But, not by the citizens of Miami, by big developers and people who have come in here stealing our money and taking it away. Who do we blame? We blame the City of Miami. For 25 years this City conducted business in a very unprofessional manner, OK. They did not even check these people they were giving the money too. How they got the money? Ladies and gentlemen, I have been here six months, I don't know. But, let me tell you, from now on this Commissioner, from District III, will make sure that if any money goes to Overtown the poor people of Overtown are going to benefit from it. [APPLAUSE] Chairman Teele: Commissioner, I really appreciate you making the statement because I think it has much more effect and impact coming from you. And, I know that several other Commissioners have made similar statements. On the item, Mr. Attorney, what's the item.? Board Member Plummer: "E", "F" and "G." Chairman Teele: ` E", "F" and "G." Mr. Attorney, are you with me? Board Member Plummer: You need to vote on it. 16 November 16, 1998 Chairman Teele: All those in favor say "aye." The Commission (Collectively): Aye. Chairman Teele: Those opposed? Board Member Sanchez: Aye. No, I don't... I don't support it. Chairman Teele: All right. Board Member Plummer: Excuse me, there was an opposition? Chairman Teele: The opposition, one opponent. On "G", on "H." Board Member Plummer: Excuse me, who was opposed? Chairman Teele: Commissioner Sanchez. Board Member Sanchez: Commissioner Sanchez. Board Member Plummer: OK, thank you. 17 November 16, 1998 The following resolutions were introduced by Board Member Plummer, who moved their adoption: SEOPW/CRA RESOLUTION NO. 98-29 A RESOLUTION OF THE BOARD OF THE DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING KPMG PEAT MARWICK TO PERFORM A RISK ASSESSMENT AUDIT OF THE POINCIANA VILLAGE CONDOMINIUMS PROJECT FROM THE COMMENCEMENT OF SUCH PROJECT, WITH SUCH AUDIT INCLUDING, BUT NOT LIMITED TO AN EXAMINATION OF COMMITMENTS MADE TO THE PROJECT'S DEVELOPER, COMMITMENTS MADE BY THE PROJECT'S DEVELOPER TO INDIVIDUAL BUYERS AT THE TIME OF UNIT PURCHASES AND MONIES LOST IN THE PROJECT BY OTHER INVESTORS; AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE A FEE ARRANGEMENT FOR APPROVAL BY THE BOARD OF DIRECTORS; PROVIDING AN EFFECTIVE DATE; AND FOR SUCH OTHER PURPOSES. SEOPW/CRA RESOLUTION NO. 98-29.1 A RESOLUTION OF THE BOARD OF THE DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING KPMG PEAT MARWICK TO CONDUCT A FEASIBILITY STUDY OF PHASE IV OF THE POINCIANA VILLAGE CONDOMINIUMS PROJECT TO DETERMINE THE FEASIBILITY OF PHASE IV BEING COMPLETED AS 91 CONDOMINIUM UNITS, A 125 ROOM HOTEL OR A 125 ROOM EXTENDED STAY FACILITY; AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE A FEE ARRANGEMENT FOR APPROVAL BY THE BOARD OF DIRECTORS; PROVIDING AN EFFECTIVE DATE; AND FOR SUCH OTHER PURPOSES. SEOPW/CRA RESOLUTION NO. 98-29.2 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY APPROVING AND AUTHORIZING KPMG PEAT MARWICK TO PERFORM A FINANCIAL AUDIT OF THE PARKING REVENUES GENERATED FROM PARKING LOTS WITHIN THE COMMUNITY REDEVELOPMENT AREA AND TO BE PAID TO THE COMMUNITY REDEVELOPMENT AGENCY BY THE DEPARTMENT OF OFF-STREET PARKING OF THE CITY OF MIAMI PURSUANT TO THAT CERTAIN ASSIGNMENT OF LEASES FROM THE CITY OF MIAMI; AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE A FEE ARRANGEMENT FOR SUCH AUDIT FOR APPROVAL BY THE BOARD OF DIRECTORS, PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. 18 November 16, 1998 (Here follows bodies of resolutions, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Board Member Gort, the resolutions were passed and adopted by the following vote: AYES: Board Member Wifredo Gort Board Member Tomas Regalado Board Member Joe Sanchez Board Member J. L. Plummer, Jr. Chairman Arthur E. Teele, Jr. NAYS: Board Member Sanchez ABSENT: None. 6. AUTHORIZE KPMG PEAT MARWICK TO AUDIT ALL PARKING REVENUES WHICH CRA WAS ENTITLED FROM DEPARTMENT OF OFF-STREET PARKING. Chairman Teele: On a motion authorizing an audit of the parking revenues. Board Member Plummer: Move it. Chairman Teele: All those in favor say "aye." Board Member Sanchez: Second. Chairman Teele: Second by Commissioner Sanchez. All those in favor say "aye." The Commission (Collectively): Aye. Chairman Teele: Those opposed? No. The following resolution was introduced by Board Member Plummer, who moved its adoption: SEOPW/CRA RESOLUTION NO. 98-30 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING KPMG PEAT MARWICK TO PERFORM A FINANCIAL AUDIT OF THE PARKING REVENUES GENERATED FROM PARKING LOTS WITHIN THE COMMUNITY REDEVELOPMENT AREA AND TO BE PAID TO THE COMMUNITY REDEVELOPMENT AGENCY BY THE DEPARTMENT OF OFF-STREET PARKING OF THE CITY OF MIAMI PURSUANT TO THAT CERTAIN ASSIGNMENT OF LEASES FROM THE CITY OF MIAMI; AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE A FEE ARRANGEMENT FOR SUCH AUDIT FOR APPROVAL BY THE BOARD OF DIRECTORS; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. 19 November 16, 1998 (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Board Member Sanchez, the resolution was passed and adopted by the following vote: AYES: Board Member Wifredo Gort Board Member Tomas Regalado Board Member Joe Sanchez Board Member J. L. Plummer, Jr. Chairman Arthur E. Teele, Jr. NAYS: None. ABSENT: None. 7. ACCEPT/FORWARD CITY MANAGER'S ANALYSIS OF OMNI TAX INCREMENT TRUST FUND AND INTERLOCAL COOPERATION AGREEMENT WHIT MIAMI- DADE COUNTY TO KPMG PEAT MARWICK FOR REVIEW — DESIGNATE BOARD MEMBER PLUMMER AS COMMITTEE OF ONE TO WORK WITH AUDITORS ON SAID REPORT — FURTHER INSTRUCTING CITY MANAGER TO PLACE IN ABEYANCE ANY RELATED FUNCTIONS UNTIL BOTH AGREEMENTS ARE SIGNED BY ALL PARTIES — SEE LABEL 8. (B) APPROVE COMMUNITY REDEVELOPMENT AGENCY CONSOLIDATED BUDGET FOR FISCAL YEAR 1999 — DISCUSS / DESIGNATE COMMISSIONER GORT TO STUDY FEASIBILITY OF EXPANDING THE COMMUNITY REDEVELOPMENT AGENCY BOARD BY TWO ADDITIONAL MEMBERS. - SEE LABEL 8. (C) APPROVE $15,000 GRANT TO MOUNT ZION COMMUNITY DEVELOPMENT CORPORATION - FOR REIMBURSEMENT FOR COMMUNITY SERVICES PERFORMED ON BEHALF OF COMMUNITY REDEVELOPMENT AGENCY -- FOR PREPARATION OF U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT HOMEOWNERSHIP GRANT APPLICATION — SEE LABEL 8. Chairman Teele: And, then accepting of the analysis of the OMNI tax increment district and the Interlocal Agreement. I am going to ask that Commissioner Plummer chair a committee of one, or Commissioner, if you want to bring in other people from the public as a sub -committee. If you would, basically, accept the responsibility of working with the auditors on this report and let's try to get this thing back out as quickly as we can. I think it underscores a lot of issues. It's uniquely written and it may get you into some other areas, but suffice it to say, there are a number of errors in the report, and that's not really 'important. I think the really underlying issue... Board Member Plummer: Mr. Chairman, I'll be happy to do such, but you also realize that until such time as we get an Interlocal Agreement with the County, it's going to be very, very difficult to make a determination. Board Member Gort:: We already have one. 20 November 16, 1998 Chairman Teele: Commissioner, there is so much misinformation. Board Member Plummer: Yeah, I know. Chairman Teele: We have an Interlocal Agreement with the County. Board Member Gort: That's my understanding. Chairman Teele: Mr. Attorney, Mr. City Attorney, would you append on that issue? Mr. Alejandro Vilarello (City Attorney): We do have... Chairman Teele: Would you just come and state your name and... Board Member Plummer: The CRA (Community Redevelopment Agency) in general or...? Chairman Teele: No, no, no. We are talking now about... Mr. Vilarello: No, the OMNI/CRA has an Interlocal agreement with Dade County. Board Member Gort: We do. Board Member Plummer: OK. Now, but what about the other two? Overtown? Mr. Vilarello: The Southeast/Overtown Park West? No, does not have an Interlocal Agreement with the County. Board Member Plummer: All right, because that's why I am holding up on them on tomorrow's agenda, until they sign those two off, Mr. Chairman. Chairman Teele: All right. Board Member Plummer: I hope my colleagues will support me. Chairman Teele: Well, you will get full support for that. I mean, you know, J. L., I am going to have to tell you, you know, I just, I... It amazes me that in 1998, that Gwen Margolis the County Chairman of the Commission, and Commissioner Carey and anyone else would say, "we are going to approve the Interlocal Agreement with the OMNI even though we have concerns about the management of the CRA or the audit, we are going to approve that. But, we are going to hold up on for Southeast Over -town Park West." I mean, if that isn't just a clear color line, I don't understand it, and I have a hard time even accepting that and being a gentleman about it. But, I would hope that you would hold up on it, and I would hope that the Manager would be instructed not to disperse any money or do anything on any of these until these matters are resolved. On the motion, all those in favor say "aye." The Commission (Collectively): Aye. Chairman Teele: Those opposed have the same right. Thank you, very much. 21 November 16, 1998 Unidentified Speaker: Thank you. Chairman Teele: Regarding the item regarding the budget. And, I apologize, Mr. OMNI Representative... Mr. Fred Joseph: Fred Joseph. Chairman Teele: ... Mr. Joseph is here, and I think you should be given the... The OMNI Advisory Board should be afforded a copy of the analysis that we have been discussing. Mr. Joseph: We will be happy to help Commissioner Plummer if he asks for help. [phonetic] -- off microphone. Board Member Plummer: No, no. The following motion was introduced by Board Member Teele, who moved its adoption: SEOPW/CRA MOTION NO. 98-31 A MOTION TO ACCEPT THE CITY MANAGER'S ANALYSIS OF THE OMNI TAX INCREMENT TRUST FUND AND INTERLOCAL COOPERATION AGREEMENT WITH MIAMI-DADE COUNTY; FURTHER FORWARDING SAME TO KPMG PEAT MARWICK FOR FURTHER REVIEW AND ANALYSIS; FURTHER DESIGNATING BOARD MEMBER J. L. PLUMMER AS A COMMITTEE OF ONE TO WORK WITH THE AUDITORS ON THIS REPORT AND EXPEDITE SAME. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Board Member Plummer, the resolution was passed and adopted by the following vote: AYES: Board Member Wifredo Gort Board Member Tomas Regalado Board member Joe Sanchez Board Member J. L. Plummer, Jr. Chairman Arthur E. Teele, Jr. NAYS: None. ABSENT: None. Chairman Teele: And, just so that the record is clear. The CRA which includes three areas, three separate areas, the OMNI, Park West and Overtown, although they are only two districts. Seventy-five percent of the CRA is in the distinguished Commissioner's district known as Plummer, so... The budget is the item that is before us. 22 November 16, 1998 Board Member Sanchez: See, do you understand the CRA (Community Redevelopment Agency), what the CRA does? The area of the tax doesn't go to the City, it goes back into the... Do you understand all that? Chairman Teele: The Redevelopment Authority. And, again, the point here is that most of the Authority, all of the OMNI which I think, you know, really is a big question in my mind about a lot of the... But, all of the OMNI and half of the Overtown Park West, a little bit more than half is in Commissioner Plummer's district. And, I wanted just to respond to some of the people that have said that I only care about the CRA because it's in my district. Three -fourths of it is in Commissioner Plummer's district. Board Member Plummer: Well... Chairman Teele: But it's one City, and I think the real,' issue here is that all five Commissioners are equally concerned. You heard what Commissioner Sanchez and Commissioner Gort and Commissioner Regalado have continued to say, that we are all concerned about all of the City. Board Member Plummer: But, Mr. Chairman, also: you have to make note that in fact, Commissioner Gort has an overlay into the CRA by being Chairman of the DDA (Downtown Development Authority) downtown. Chairman Teele: Exactly. And, that role is being enhanced, Commissioner Gort in the resolutions that we are putting forward by recognising the DDA (Downtown Development Authority)as the advisory board for the Park West which has never really been done before. The important issue that we are here today is item 2-A which is to approve the FY '99 budget. Commissioner Regalado had indicated, you wanted to dove the item? Board Member Regalado: I do, Mr. Chairman. Chairman Teele: And, the item is moved by Commissioner Regalado, is there a second? Board Member Plummer: For discussion, I'll second it.. Chairman Teele: Seconded by Commissioner Plummer for discussion. Discussion. Board Member Plummer: Now, Mr. Chairman, you! know, there has been banding around a number of different budgets. If I may chart... borrow from my colleague. We approved at one time a budget of the CRA which was not approved at the City Commission. We are now looking at another budget that is in fact been presented, I assume by the trust agency, whoever they are. And, we are looking at a budget of possibly two million nine, in total. Board Member Sanchez: In total. Chairman Teele:: What is this? Oh. [sic] Board Member Plummer: And, that of course, deviates from the original budget that was passed by the CRA for the October budget deadline. Now, I have to know which budget that we are operating on because that's when I can start asking... 23 November 16, 1998 Chairman Teele: Commissioner, we are operating on the budget, not the one that was... The budget that you have in your hand is the official budget that has been approved by the CRA. Board Member Plummer: OK. Chairman Teele: OK. Board Member Plummer: But, was not approved by the Commission? Chairman Teele: It was never approved the Commission. Board Member Plummer: OK. Chairman Teele: The budget that we are operating... that we have before you today, is an amendment to that budget and it's contained in this document. Board Member Sanchez: So, it's not this one? Chairman Teele: No. That's the budget that has been... Board Member Gort: Its right here. Chairman Teele: ... approved. And, this is the budget that was submitted, and basically, there are refinements of the budget. The most important budget item is the budget item that's not in the budget, and that's the three million dollars ($3,000,000), OK? Board Member Plummer: Huh. Chairman Teele: The three million dollars ($3,000,000) that the Commission directed the staff to identify six months ago, which you know, they're... it's still not here, and it's not on the Commission agenda today either, but we will take that up. Board Member Plummer: Mr. Chairman, for my edification as of that of the audience. All that we do in the CA, CRA is also subject to the Oversight Board approval, am I correct in that statement? Chairman Teele: Commissioner, to the extent that the DDA; to the extent that the Bayfront Trust; to the extent that MSEA (Miami Sports and Exhibition Authority) budgets are subjected to the... by the Oversight Board, that is correct. Board Member Plummer: OK, that's fine. Because all contracts still have to go before them. Chairman Teele: Yes, sir. Board Member Plummer: Mr. Chairman, would you outline for me which page you are speaking to, as to the amendments. Board Member Sanchez: I have got to turn on the mike for you and I got to fine your budget. 24 November 16, 1998 Board Member Plummer: Just sit down and be quiet. Board Member Sanchez: You want me to go get you a cup of coffee? Board Member Plummer: Did all of you meet the Commissioner of the Month? Chairman Teele: Commissioner, unfortunately these pages are not necessarily numbered. But, there is a document that says Roman numeral two, fiscal year '99 consolidated budget. And, it will start out by Community Redevelopment Fiscal Year and it will show adopted and revised, and it tells you every change that is there, so you don't have to guess. Board Member Plummer: No, no, that's not... No, it's not this one. Chairman Teele: That's this document. Board Member Sanchez: We can't find it... Chairman Teele: It's at the very beginning of the book, and... Board Member Gort: Mr. Chairman? Chairman Teele: Commissioner Gort. Unidentified Speaker: I am sorry about that. Board Member Gort: My understanding, the differences that I see here between the two budgets... Chairman Teele: Let me just help define it. The first thing is, Roman numeral one says "Letter of Introduction." The next thing is Roman numeral two that says "FY Consolidated Budget." Let me... that's it right there. And, you are right, the budget is two point four, that's adopted. The revised after going through all of the changes is three point zero when you deal with items that are numerated. Board Member Plummer: Mr. Chairman, who prepared this budget? Chairman Teele: This budget was prepared by a combination of people, primarily the consultants from the... The engineering firm prepared and reviewed the park portions and the capital infra -structure portions of the budget. The development portions were prepared by Mr. Donmez, and the administrative portions were prepared by Hilda Tejera and reviewed by my Commission staff. Board Member Plummer: Are you ready for questions? Chairman Teele: Yes, sir. Board Member Plummer: I am specially concerned in certain areas. For example, the original adopted that we addressed before, had no budget reserved. Now, we are coming up with almost 25 November 16, 1998 four hundred and thirty-five thousand dollars.($435,000). I see no breakdown as to what the reserve is being reserved for. Is it projects, is it anything...? Chairman Teele: It will be used for projects. The problem is this, J.L., the Commission instructed the Manager to prepare a three million dollar ($3,000,000) budget line item which was to have been used by the CRA. To date we don't have any of that for the Third Avenue Business Corridor. When we approved the Third Avenue Business Corridor back in when? In June, that was a specific instruction for the Commission, for the management to identify three million dollars ($3,000,000). That three million dollars ($3,000,000) is, is contained as a footnote in this budget. But, until we are able to get those dollars, we will not be able to move forward on the program. We are trying to determine when the Commission will act on this, you know, given the fact that we have got fifty million dollars ($50,000,000) of unallocated dollars that we can't seem to come up with. Forty-eight million, I believe. Over and above the 24th year and the 23`d year. It's just amazing that we can't come up with the three million dollars ($3,000,000), but the four hundred thousand dollars ($400,000) is designed to go ahead and jump start the project. Any expenditure from that line would have to come before the City Commission... come before the CRA board, J.L. Board Member Plummer: And, what match can they extent without CRA approval? Chairman Teele: But none. Board Member Plummer: None at all? Not twenty-five hundred dollars ($2,500)? Chairman Teele: None. No. Board Member Plummer: OK. That's one of the things that I want to get to in the Interlocal is to how close we actually follow the same kind of a scenario as the City, because it talks about City practices. So, in other words, what you are saying to me, that any dollar out of that contingency fund... Chairman Teele: Cannot be expended. But, that's also true... Board Member Plummer: ... without the CRA approval. Chairman Teele: ... without the CRA board approval. But, that's also true of the... I mean, that's true of the City of Miami Commission's one or two million dollars ($2,000,000) contingency fund. But, you know, it winds up getting spent. Board Member Plummer: Go ahead. Chairman Teele: Commissioner... Board Member Plummer: All right. Board Member Sanchez: No, he's on the phone, right? Chairman Teele: Commissioner Regalado. 26 November 16, 1998 Board Member Regalado: I... Mr. Chairman, I don't have any problem with this... Board Member Plummer: Mr. Chairman. Board Member Regalado: ... revised budget. Go ahead, J.L. Go ahead. Board Member Plummer: Mr. Chairman, that phone call was to inform us that there is approximately one hundred people outside who are unable to... Chairman Teele: I am well aware of that, Commissioner. Board Member Plummer: ... and that in fact, that the other meeting should definitely be on the outside because of the space needed, so I just wanted to let you know. Chairman Teele: All right. Well, maybe some of the people here will volunteer and make the seating available for the people that want to come in. But... Board Member Plummer: Sorry, to interrupt you. Chairman Teele: Please don't. Go ahead. I mean, please do. Commissioner Regalado. Board Member Regalado: Mr. Chairman, I am ready to move and vote. Chairman Teele: All right, the question has been called. Board Member Plummer: No, no, no. Board Member Sanchez: Under discussion. Board Member Plummer: No, no, no. Chairman Teele: Come on, Commissioner Plummer, you have the floor. Board Member Plummer: Oh, I am sorry. I am concerned, and explain to me the reduction of about almost one hundred and eighty thousand dollars ($180,000) that's not going to OMNI that was in the original that was going to OMNI. Originally, we talked about seven hundred and thirteen thousand dollars ($713,000) to the OMNI tax increment, now it's being reduced to five hundred and seventy-one thousand dollars ($571,000). Now, somebody has got to explain to me why? Chairman Teele: J.L.., because if... You know, if you really want me to explain you why, because we moved about eight hundred thousand dollars ($800,000) into a reserve and that reserve is going to come back and marry that, so instead of it being seven hundred thousand, it's going to be more like one point four million. Board Member Plummer: OK, so in other words, the OMNI people don't have any complaints that they are being reduced? 27 November 16, 1998 Chairman Teele: J.L., this is an issue. I'll be happy to approve this budget with the exception of the OMNI, but this is an issue that's tied to the issue that you need to study. Board Member Plummer: I hear you. Chairman Teele: And, it's a very complicated issue, but you are falling in a trap. Board Member Plummer: No. Chairman Teele: The more money you spend, the faster you are going to be out of the OMNI business with the County. Because once you spend one point five million dollars ($1,500,000), the County takes every dollar after that for the next 30 years. Board Member Plummer: All right, sir, I am just trying to confuse and trap. [phonetic] Chairman Teele: So, there is a reserve, maybe the Finance Director or the Budget Director will know. How much is the OMNI capital reserve that we moved out? Board Member Plummer: Well, originally... Chairman Teele: Mr. Dipak, do you know? Mr. Manager, do you know? Mr. Manager, through the Manager, could Mr. Dipak or mister... Madam Finance Director give us that number? So, J.L., when you look at this number, the five hundred, you have to add to that the reserve that I moved out during the budget hearing into what is called an "OMNI Capital Reserve." Because, what I didn't want to do was leave that money in the tax increment account because we would be matching our money with our money, and that doesn't make sense. Board Member Plummer: Move it. Chairman Teele: All of the reserve money is City of Miami Commission tax increment district money. Mr. Manager, do you recall the amount of the reserve, the Capital Reserve? My recollection is, it's about seven hundred thousand dollars ($700,000). Board Member Plummer: OK. Very well, sir. Chairman Teele: Further discussion? Commissioner Gort. Board Member Gort: My understanding is, in looking at the adopted to the revised, that we are showing a carryover and expense of twenty-three years CDBG (Community Development Block Grant) , we increased that by another one hundred and fifty... one hundred and seventy-eight thousand dollars ($178,000). Has that been allocated already? Is that there? Chairman Teele: That's there. It's a... it was a bookkeeping matter of actually going through line by line and determining exactly where the dollars were. Board Member Gort: And, the two seventy-nine which we didn't have before, we have now, that's a contribution for the General Funds and that's there? Chairman Teele: That's there. 28 November 16, 1998 Board Member Gort: OK. The other reimbursements, seventy-five thousand. Do you know where it's coming from or...? Chairman Teele: The seventy-five thousand. Where is the seventy-five thousand? That's the money from the Parks employee to be reimbursed. And, by the way, there is another issue that's related to this. But this... the answer to that is... By some administrative error, I assume, the previous Manager, or at least one of the previous Managers moved an employee from the CRA to the Parks Department. But, again, you know, given our great financial system here, the person was being charged to... Board Member Gort: The CRA. Chairman Teele: ... the CRA, unbeknownst to me. I mean, it was being revealed as if I had something to do with it. You know, I have not only had nothing to do with it, but I don't approve of it, but... Board Member Gort: And, the last question. Is this the combined budget for both the OMNI and Southeast Overtown, or do you have separate budgets for them? Chairman Teele: Yes, sir. Yes. There are separate budgets that are contained in here. And, if you go back, I think it's item Roman numeral number six. Yes, Roman numeral number six is the OMNI operating budget. Roman numeral number seven is the Overtown OMNI, and then item number eight is the Community Development Home Funded Development portion of the budget. And, the budget as approved or the budget as submitted is Roman numeral... is fiscal year '99 consolidated budget with the attachments which would be Roman numeral three, Roman numeral four, Roman numeral five, Roman numeral six, and Roman numeral seven, and Roman numeral eight. We have a motion. Board Member Sanchez: Well... Chairman Teele: Commissioner Sanchez. Board Member Sanchez: If I could have the floor. Chairman Teele: Yes, sir. Chairman Teele: Commissioner Sanchez, I want to just say one thing, and I will yield you the floor. I did not challenge at all because I know that you have personally been ... and walking through and reviewing and talking to people, and really salute you, and I appeal to all of my colleagues to do that as you have gone through Overtown and people have been remarking about it, most favorably, that there has never been this much attention. And, I am very grateful that not only you and Commissioner Plummer and Regalado and Gort have been doing that. But, I do want to correct the record. Ninety percent of the projects that you have identified, probably ninety-five percent are not CRA projects, OK. And, there is a lot of misunderstanding. Even if you read the Manager's financial analysis that was done of the CRA, it's totally riddled with errors because they have attributed projects to the CRA that the CRA had nothing to do with as the CRA. As you will recall, Commissioner Plummer, there was one person, an executive director who wore two hats. He was an assistant manager of Development and he was the 29 November 16, 1998 executive director of the CRA. And, so I think it's reasonable that there would be a lot of confusion about whether it was the CRA or the Office of Development in the Community Development. But, ninety percent of the projects that you go through the City and look at them have not ever come through the CRA or are a part of the CRA. With the exception of Poinciana Village, most of the projects that you have been walking through are not CRA projects. Board Member Sanchez: But, did the CRA approve it? Chairman Teele: No, sir. They have never come through the CRA. You have to put on the other hat which is the other meeting that we go to which is the City Commission hat. And, I should also say this so that you are not mislead, and we don't mislead the public. You said that you would be watching each of these projects and ensuring that they would never be approved again, those that are politically connected and there are a whole shrew of those as well as the other people. A part of the audit resolution that we agreed to, we as a Commission agreed to. We conveyed our rights, and I think we need to review this. We agreed not to review any of those projects anymore. And, I think the City Attorney should discuss that at the right time. But, what it means is that the... We have delegated in effect, to the City staff to make these decisions for us, and there was a reason for that. But, I think in light of what is coming to light, we really need to withdraw that delegation and take another look at it and sit down with federal HUD (Department of Urban and Housing Development) and negotiate ourselves back into this. But, I want to yield to you... Board Member Sanchez:: But... Chairman Teele: ... with that understanding, and the City Attorney is here. Board Member Regalado: I think that was done last November, wasn't it? Chairman Teele: No, this was done, actually in June of this year as a part of... It was done actually in two meetings in April, May and June as a part of the total response to the audit. And, think that letter was signed in June by Garcia -Pedrosa. But, we basically agreed not to review. And, one of the problems that I have with it is, that nobody has reviewed these projects. We have got projects that don't meet code; they don't have parking; they don't have playground, open space. I don't see how anybody could get City money to revise a building that doesn't even have enough space for a dempsey dumpster or a parking car. So, I think we need to look at this again, Commissioner, but I yield to you, and you have the floor. Board Member Sanchez: And, I am not even going to argue the fact that you are right. But, I... things need to done through careful and thoughtful and detailed planning. That's, that's how we don't make mistakes. In the past, I have said it before, the City in many, many occasions used to just give out loans to people that really took advantage of them because in the long run they were going to make money off of it, and they, you know, they didn't care, just like a lot of... It's, it's the format of the person who owns the property, who rents it out. As long as you pay my rent, I don't live there. Let the paint fall off, let the windows crack, let the roof leak, and you know, we can't continue to take that avenue when we are going to be doing these things like that. So, the thing is, let's do things smartly. Let's look at it that when things are done, not only from the City's point of view but also from CRA things are done right. We can't correct twenty-five years of poor management, and bad decision -making in two weeks, basically putting people in a position where, to be honest with you, I... And, you are right, I took a tour of Overtown, and you 30 November 16, 1998 know what, tears almost came out of my eyes, all right. Because, Overtown since they put the I- 95, that was the first sign of the cancer in that neighborhood. And, so they park, the little area back there that 836 passes by. But, things have to be done in a professional manner if we are going to be giving taxpayers money. And, this is money from whether it be City or state or local, it has to be accountable for. That's how we need to start conducting business because in the past we didn't do things that way, and today we are paying for it, that's why we are here today. We are here today, putting five Commissioners up here and the community, a tensed community because of bad decisions that were made in the past. Please, I beg of you as a Commissioner, as a friend and a neighbor that we don't do this again. We sit down. We find a solution to our problems. The money is coming our way, I agree with you, one hundred percent we need to struggle and fight to get every federal dollar we could get for our City. We need to go and get state, federal and any other money that's coming to us so we could put it back in our community. But, let's do manage control. Let's do accountability. Let's do it right. Let's do an operational plan so that if we are going to do a home, it's going to house ten people, let it be ten people that could afford that people. Let it be ten people that live in that area. Let it be the people that benefit from all this be the ones that live and have... who stayed in Overtown. You have not abandoned the ship, and that I commend you for. You stayed there and you fought hard because, you know what, you believe in your community and that's why in the long run, you are going to get what's coming to you. Board Member Plummer: Mr. Chairman. Chairman Teele: Commissioner Gort, to continue. You had the floor. Board Member Gort: Yeah, my understanding in looking at the OMNI Trust, the seven one three seven seven five, one forty-two is going to be used for the administration and the staff and the rest is going to a reserve, so I want to just put it on the record, the numbers. Unidentified Speaker: Where is it? Board Member Plummer: That's what I am trying to find. Board Member Gort: It's right here, six. If you look at title six, the total for the OMNI is seven thirteen. One forty-two, it goes to the administrations and... cost to administration, the rest goes into the reserve. Board Member Plummer: Mister... Well, Mr. Chairman, I just found another budget. And, another budget was revised... Chairman Teele: Commissioner, let me just say this. I think it's very important that you don't start misleading the public. Board Member Plummer: No... Unidentified Speaker: Right, right, right. Chairman Teele: This budget... No, hold it, hold it, J.L. Hold it, J.L.. This budget has been circulated, it's the same budget that's been circulated for over a month. You received it four days ago, five days ago... Nobody has just presented a new budget. 31 November 16, 1998 Board Member Plummer: Mr. Chairman. Chairman Teele: Let's just be real clear about what we are saying. Board Member Plummer: Mr. Chairman, let's be very clear, sir. Chairman Teele: OK. Board Member Plummer: I understand English. This budget has on the border is saying "revised as of 11/6." That's not 30 days ago. Chairman Teele: No, this is the same budget, the revisions J.L., that you looked at, if you will go back and look at it. Board Member Plummer: No, sir, it does not, and that's the reason I am asking the question. Chairman Teele: Well, my response is that you didn't just find the budget. Board Member Plummer: Sir... Chairman Teele: The budget was adopted... Hold it. The budget was adopted by the CRA on September 14'h Board Member Plummer: A different budget. Chairman Teele: OK. No, no, hold it, J.L. And, then on... Board Member Plummer: Not this one. Chairman Teele: And then, as it states right here, in the print, "revised as of 11/6/98... Board Member Plummer: Correct. Chairman Teele: ... and not previously presented." I mean, so there has been... I want to be very clear about the record, J.L. Nobody just presented, just found a new budget. Board Member Plummer: Mr. Chairman, when I made the comment before about the contingency of four hundred and thirty-five thousand dollars ($435,000), nobody stopped me and said you are wrong, correct it. This revised budget, which I just turned over the page, shows a contingency of six hundred and thirty-two thousand dollars ($632,000). So, that's the budget we are working on, am I correct, as amended? Chairman Teele: As it relates to that particular item, yes, sir. Board Member Plummer: OK, so it was revised and amended less than 30 days ago. Chairman Teele: Exactly. 32 November 16, 1998 Board Member Plummer: All right. Chairman Teele: As stated in the document. Board Member Plummer: Now, my final question. Mr. Chairman, beside administrative cost and such, is there any breakdown of the three now...? It's now a figure of three million two nineteen one eighty-two, how much is dedicated to Overtown of this budget? How much to Park West and how much to OMNI? Board Member Regalado: OMNI, you have the... Chairman Teele: J.L., I can tell you right now. The Park West budget and the OMNI, and the Overtown budget are one budget. Board Member Plummer: OK. Chairman Teele: And, they will be because that's the way the state law is written. Board Member Plummer: OK. Chairman Teele: I will call your attention, however, to the projects and the priorities. The top three priorities of the budget, where you say the projects. The top three projects, items 2-A, 2-13, 2-C relate directly to Park West. Board Member Plummer: OK. Chairman Teele: Item 2-D, 2-E, 2-F and 2-G relate to Overtown. Board Member Plummer: All right. Chairman Teele: And, items 2-H and 2-I... I am sorry, 2-H relates to the OMNI which is the Margaret Pace Parks improvement. Board Member Plummer: And, none of that is of the contingency fund? Chairman Teele: No, sir. Board Member Plummer: OK. OK. Chairman Teele: But the more important issue, J.L., is the fact, the footnote which is that the Commission instructed the management to come up with three million dollars ($3,000,000) to move forward with the project. And, the one thing that I just refused to get caught in is what's happened for the last five years. We wound up here with an OMNI, with an administrative staff with very little money to do projects with. And, you know, that's sort of the catch-22 that this agency has been in. Now, we are building projects out of the County -wide parks bond issue where we are entering into the Interlocal Agreement with the... with the County and the City to manage the parks in the CRA area. I mean, we are staffing Fred Joseph and we are there meeting with him on a weekly basis, monthly basis there. It doesn't make sense to create a new committee, if you will to start trying to do the interface there with that. And, I think to that 33 November 16, 1998 extent the Manager has been extremely helpful in recognizing that the parks in the OMNI / Park West / Overtown area can be probably better administered. But again, that's not City money. The same thing is being held accountable in terms of the Community Development activities whereby we are looking at providing the same kinds of services to other areas that we have been providing for the Brickell, Parrot Jungle and all these other kinds of areas, particularly as it relates to Little Haiti, where we are going to really be working to do sophisticated development deals using the CRA support. But again, that doesn't relate to the target area. The problem with this budget is the fact that there is literally no new capital money pursuant to the City Commission resolution directing three million dollars ($3,000,000) be made available for the implementation of the Third Avenue Business Corridor and, and I wish somebody would be concerned about what's not here. Because, until we get that three million dollars ($3,000,000), it really doesn't make sense to start ramping up and staffing up, you know. That's been the problem. See, the order to the CRA is going to be real simple. For five years -- for the last four years, we spent one million dollars ($1,000,000) or eight hundred thousand dollars ($800,000) on staff, but no money for projects. And, why do you need eight hundred thousand dollars ($800,000) in staff if you are not doing projects. And, what I am saying is that we are not going to spend that kind of money in staff until we have projects to do. And, we need the three million dollars ($3,000,000). We need that when we adjourn this meeting. We need to go ahead and get that three million dollars ($3,000,000) and make it available and move forward with the Third Avenue Business Corridor. Commissioner Sanchez. Board Member Sanchez: Question on the salaries and benefits. Half a million dollars ($500,000) on that, how many staffed? How many employees? Chairman Teele: Right now the CRA has three staff persons on staff. However, the CRA has a staff configuration of seven persons. We have not replaced anybody. We don't have an office manager, we don't have a financial director. We just lost the development director. And, we are not going to replace people until we have the funds to do projects. And, a part of the catch-22 that the CRA is involved in, is that the Commission funded it, but it didn't fund it to do anything. And, that's what the audit is going to show. Board Member Sanchez: Budget reserve, six hundred and thirty-two thousand dollars ($632,000). It's a lot of money. Chairman Teele: Well, when you consider the fact that the capital projects that we are looking at are in excess of fifty million dollars ($50,000,000), it's really not a lot of money. This money can only be used basically for projects and we have identified well over forty million dollars ($40,000,000) in projects to be done. But, until we can get the first capital grant from the City, the three million dollars ($3,000,000), it doesn't make sense to start spending money until you know what you are going to be matching it with. Board Member Sanchez: How much did you have last year in the budget reserve? Chairman Teele: We didn't have a budget reserve last year. In fact, in fact, it's... the CRA did not present this type of budget, detailed budget. Board Member Sanchez: How much money did the CRA have last year for projects whether it be... 34 November 16, 1998 Chairman Teele: Zero dollars. The CRA had seven hundred, eight hundred thousand dollars ($800,000) for staff. And, basically, the CRA has to have staff, there are ongoing projects. And, I don't mean it all to diminish what the staff has been doing. You have the Poinciana Village that has been going on for twelve years. I mean, Hilda Tejera literally went up to Palm Beach to work with Florida Power and Light to clear easement problems so that that project could move forward on time. I mean, there is a whole lot of work. We have been negotiating with Fannie Mae, getting Fannie Mae Foundation to come in has literally taken up, you know, one man-hours of time a year in terms of that. There are a number of ongoing activities. Activities on the 108, the Citadale Project, up until the management decided they wanted to take it up, it was a considerable amount of time. And, of course, we have been working closely with St. John's CDC on their housing project as it relates to just trying to move that project ahead. And, by the way, the biggest issue is, just so that there is another point of view, Joe. The biggest issue is this, the St. John's wants to develop on both sides of the 9" Street Mall which by the way is one hundred percent federally funded with Transportation dollars, not HUD dollars. And, because that's the only basic vista, that's the only basic tangible vista or open space or something to develop around. We don't have a waterfall. We don't have an ocean. We don't have a statute or monuments. We really have very little. The 9"' Street Mall is a very important component of the housing redevelopment of Overtown and it really serves as a central point of all of the activities that happen... positive activities that happen in Overtown. Yesterday for example, the Miami Heat and we should give them our appreciation at the appropriate time, donated or gave away some, how many two hundred or so? No more. Seven hundred turkeys. But that was done, and all of the kinds of positive experiences that people have we can invite them in. The 9"' Street Mall, with all due respect, is the only show place that we can bring visiting Mayors and dignitaries. We had the Prime Minister of the Bahamas there. It's really the only... We don't want to show people what you and I look at, Joe, Commissioner Sanchez. We don't want them to see what we know is there. We are trying to give them our best foot forward, and I think it's important that we find other focal points that we can help to develop and create the same quality of life that people on Brickell have. My point is very simple, and it's real simple Joe, and you agree with me. The people who live in Overtown are people just like the people who live on Brickell. Board Member Sanchez: Absolutely. Chairman Teele: And the same kinds of lighting, the same kinds of amenities, the same kinds of vistas like the mall, et cetera, that are all over Brickell, we ought to have them in Overtown, and I'll tell you this. That parking lot, I don't give a damn. I don't care. Excuse me, I don't care what memo is put out about the parking lot. That parking lot is going to go, and it's not going to take a whole lot longer for it to go. That parking lot was under 95, a police impoundment lot was put there for one year twenty-four years ago, for one year. And it is not right for the Sawyers, Mrs. Sawyer or anyone else who lives in Poinciana Village, to look out their window and have to look at a police impoundment lot. And, nobody wants to do that on The Fortune, on The Fortune House or on some of these houses on Brickell. But, I for one would tell you, I will get tow trucks and start towing cars on Brickell if we don't hurry up and move that impoundment lot out of... out from under I-95 because people shouldn't have to live like that. [APPLAUSE] Board Member Sanchez: Mr. Chairman. 35 November 16, 1998 Board Member Regalado: Mr. Chairman, if I may? Chairman Teele: Commissioner Sanchez, Commissioner Regalado. Board Member Sanchez: Mr. Chairman, I do agree with you on that, but you also agree with me that a lot of money that was allocated for the CRA throughout the years, City fund, Dade County funds, State funds, Federal funds. You know everybody is asking the sixty-four thousand dollars ($64,000) question, where is the money? Chairman Teele: Joe, can I tell you something? Board Member Sanchez: Sure. Chairman Teele: I am not going to defend the CRA if they are wrong. I just got here, I have no vested interest in defending the CRA, but I have got to tell you something, that's all horse stuff. The CRA money, every dollar of it... And, the amazing thing is that you know who administered the CRA money? If it was the most mismanaged agency, it was mismanaged by the Finance Department and the Community Development Department because the CRA doesn't write one check. The CRA doesn't have one... That's going to change, but the CRA doesn't write one check. Every check, every invoice, every purchase order goes through the City Finance Department or the Community Development Office or the Management Office. And, the fact of the matter is, there is no money missing from the CRA, Joe. That sounds good. It gets great headlines. The press will report it. As the Manager said, "it's the most mismanaged agency." You will get everybody trying to investigate something, and my guess is, be my guess. Investigate it. But the truth of the matter is, that's just a camouflage trying to misdirect where the problem is. The problem is the fact that every politically connected absentee vote getter and campaign manager who could get the muster to come down to City Hall got a piece of property assigned to him to redevelop in Overtown. And, Overtown was made in effect, a comedy. [APPLAUSE] Board Member Plummer: Well, Mr. Chairman, I think we need to put something on the record. And that's something... Chairman Teele: ... did come through the CRA. Board Member Plummer: I think exactly what needs to be said is what you said before, but it has to be in reverse. And, that is, that dollars have been pumped into the CRA area, but not through the CRA. Unless this, what has been provided to us showing the amounts of money that went into the CRA area is wrong, they did not go through the CRA as an individual organization, but here we are talking the seventy-seven million dollars ($77,000,000). I haven't totaled it up. But... Chairman Teele: But, J.L., that has nothing to do with the CRA. Board Member Plummer: Well, it does. Chairman Teele: It may have... 36 November 16, 1998 Board Member Plummer: It does, because it is of the CRA area that the money has gone into. So.. Chairman Teele: With all due re... Commissioner, with all due respect. Board Member Plummer: If it's wrong, then I want to know it. Chairman Teele: Commissioner, it is wrong in this regard. Commissioner, Commissioner, it is absolutely wrong in this regard. The money that went through the CRA should be before this Board of Directors and discussed by this Board of Directors. Commissioner Plummer: Don't disagree. Chairman Teele: The money that went through the Office of Community Development should be in the meeting of the City Commission and ninety percent of the money you are holding up in your hand, or a large percentage of it. Let me say this, well over fifty percent did not come through the CRA. It went directly through the City. Board Member Plummer: Sir, we are not disagreeing. Chairman Teele: And, so... Board Member Plummer: The point I am trying to make, unless this is wrong and if it is, then, I am going to go... Unidentified Speaker: [inaudible] Board Member Plummer: May I finish? Thank you. I will go to the individual who prepared this document and to tell this individual according to the Chairman of the CAR... CRA, this document is not correct and I want it either corrected or verified that it is correct. Chairman Teele: J. L., let me see the document that you are looking at because some many documents are floating. I thought you were looking at the analysis. Board Member Plummer: No, no. Chairman Teele: I thought you were looking at the analysis of the... Board Member Plummer: Sir, there it is, right there. Board Member Sanchez: That's right. That's the seventy-seven point three million dollars ($7,300,000). Board Member Plummer: Now, that's... If that document is wrong, then let's admit that that document is wrong and let's get the person who prepared it... Chairman Teele: J.L., J.L., this is a different document that I am talking about. The document that I am talking about is the analysis provided by the Finance Department. 37 November 16, 1998 Board Member Plummer: Sir, I didn't say a word about an analysis. I said these are the monies that went into the Overtown CRA area, not by the CRA. But it's seventy-seven million dollars ($77,000,000) that went into the area. Chairman Teele: You are absolutely... Board Member Plummer: Should it have gone through the CRA? Absolutely. Chairman Teele: You are absolutely right. Board Member Plummer: Did it? It did not. Chairman Teele: No, J.L., most of this money... Board Member Plummer: OK. Chairman Teele: ... was spent on behalf of the CRA... Board Member Plummer: I hear you. Chairman Teele: ... before there was a CRA. Board Member Plummer: I agree with you. Chairman Teele: OK, this is... J.L., this is the problem. The City Commission wears two hats. And one of there reasons I am really going to ask Commissioner Gort to study, please as a sub- committee, to expand the CRA to two additional members which we are... Is it the City has been almost ambidextrous in going back and forth between City Commission and CRA. Most of the money that is spent here was spent on behalf of the CRA by the City. Board Member Plummer: Absolutely. Chairman Teele: OK. And, it was spent through the City budget process... Board Member Plummer: Absolutely. Chairman Teele: ... through the City Finance Department process and not by the CRA. And, when you start looking at the resolutions, you will find that the resolutions are City Commission resolutions... Board Member Plummer: Absolutely. I am not disputing that. Chairman Teele: ... and not CRA resolutions. Board Member Plummer: I am not disputing that. Chairman Teele: OK. 38 November 16, 1998 Board Member Plummer: All I am saying is that the money that is outlined in this document did go to the CRA area... Chairman Teele: OK. Board Member Plummer: ... not through the CRA. Chairman Teele: That's absolutely going to be correct. Board Member Plummer: That's absolutely correct. Chairman Teele: That's absolutely going to be correct. But, it was spent by the City of Miami which is why I am just so... Board Member Plummer: And, I am not disputing that. Chairman Teele: ... concerned about the statement about the mismanagement of the agency. Board Member Plummer: Not... Chairman Teele: Because the fact of the matter is, the mismanagement, if there was any, is going to be in the Office of Development, Finance and Budget. Board Member Regalado: Mr. Chairman, if I may? Chairman Teele: Commissioner Regalado, Commissioner Gort, and we will hear from the public who wanted to be heard on this item. Board Member Regalado: Just for the record because this board has been under a cloud, and I think that we are in a way of resolving that by doing all this audit since 1982. But, just for the record, we should remind the people so there will be no misunderstanding that a lot of that money, Mr. Chairman and Joe, and Willie and J.L. You know, I know that has been spent without, without the study of the City Commission. There is many programs that have been instituted in the past that will give you maybe twenty-five thousand dollars ($25,000) that had not been approved by the City Commission. The City Commission approval has only been given to certain projects. So, it's not... it's not the responsibility of the City Commission nor of the CRA that we don't know exactly where that money went. I will tell you something. I will tell you something, I remember... I remember that why the City Commission did decide last year not to get involved in the projects because there were some items that were brought to the City Commission that could look bad, and in fact, they were. But, I think that the City Commission has to go back to the policy of analyzing those housing projects. There is no way that we can take the heat, the responsibility and let the City officials do things that at the end of the day it would look as it is looking now, really bad. So, I think that we are on the way to resolve that. But, J.L., you remember that many, many of those projects are not even approved by the City Commission. They go directly from staff to the area, and we are talking millions of dollars. Chairman Teele: Well, we have approved. We just approved doing that again, and I think that's something we need to take up in the next meeting. 39 November 16, 1998 Unidentified Speaker: How long am I going to stand here. Board Member Gort: Mr. Chairman. Chairman Teele: Commissioner Gort. Board Member Gort: Mr. Chairman, I think we have been at this for a whole hour now... Unidentified Speaker: Thank you. Board Member Gort: ...and I think we have got a large agenda, we have got to move on. I think we are all saying the same thing. There is... and I am sure the staff can come back and say where each one of those dollars were put into. So, I don't think... I think we need to continue to move on. Chairman Teele: Yeah, all right. On the motion... Ma'am, did you want to urge us to move on? Ms. Jazz Irizarri: No, I want to say that we've... My name is Jazz Irizarri, I am on the OAB (Overtown Advisory Board), and... Chairman Teele: Overtown Advisory Board. Ms. Irizarri: Yes. And, I just want to suggest that, instead of talking about the problem, we all know what the problem is, if we can start focusing on the solution. What do we need to do, what's our next step? Chairman Teele: Yeah, all right. Well, I appreciate it. The problem is response to that is the three million dollars ($3,000,000) that is needed to start this year. You see, we are approving a budget... Ms. Irizarri: I understand that. Chairman Teele: ... that literally has, still has no money in it for capital programs for the affected area other than the programs that have been identified through the Community Development process of last year and the Parks Bond program on the issue of the budget, ma'am. Mary. Ms. Mary Hill: Good afternoon. Chairman Teele: Good afternoon. Ms. Hill: How are you all? Chairman Teele: OK. Ms. Hill: Some of you know me and some don't. 40 November 16, 1998 Chairman Teele: On the issue of the budget, please. I am going to have to hold you real tight in terms of the... Ms. Hill: Why do you have to hold me tight? Why you didn't hold everybody else tight. Chairman Teele: What we are going to do is, we are going to have a City Commission meeting, and what we would like to do is go through this and, then, have the public hearing in the City Commission meeting. Ms. Hill: OK. Chairman Teele: This is a committee meeting. Board Member Plummer: Oh, thanks. Ms. Hill: I appreciate your courtesy for reminding me, but I hear a lot of points and issues that need to be corrected here, then move over for the Commissioner meeting. Chairman Teele: All right. Ms. Hill: OK. Chairman Teele: On the budget, all those in favor of the budget as it has been... Ms. Hill: Now, let's wait. I want this on record here before your approve your budget. I want to say this. First of all, I am Mary Hill, on the beginning of it all. I am the one that start it from my home in Overtown, I was there when they moved the people out. They gave them peanuts for their homes and talking about develop... removal, and there's never anything been done. Their promise has not been kept and to bring the people back into the neighborhood. You can ask me because I am the mother of it all. I am the founder of the Economic Opportunity Action Amendments in the White House, and some of the same money you are referring to, coming down used to come through state coming through right here at the local level is from my effort. Title XX and revenue sharing what I founded. This is why it's important for me to talk to you right now. You are not following the statutory laws and guidelines of... May I read this to you? "Opportunity Act in connection with its consideration of "H" period, "R" period 40 and "H" period "R" period 6304, which calls for an extension of the Economic Opportunity Act" beyond your present expiration date of 1971. This has not been adhered to, and the orders you are getting through here, the money you are getting through HUD (Department of Urban and Housing Development) is coming directly from what I founded and was brought here from my effort, for the effort of the poor people area. And, it's not been carried out, it's been diverted. We have our own language underneath there, and you are not recognizing the need to finish what I started from the White House. You are not putting the regional office in place or bring the poor people ourselves to run our own destiny. You are doing it. This is contrary to the law and we need to straighten it up, and we need to before the budget is approved. I want you to go in there and you do some of it because there are strict, stringent guidelines that I heard you say, Mr. Teele, which you can't reach. It has to come through me, my regional office to pull ourselves as an administrative body. And, until you recognize us, you always are going to have this problem. You are not going to recognize the Oversight Board. You don't recognize your board and whatever you form after then, you are circumventing, you are breaching, you are diverting and 41 November 16, 1998 we are asking you today to cut it out, to recognize us, call me in as your man did... so we can get these funds directly to the people. And, I am asking you all today, along with your audit because that's my duty. If you want me to read some of my duties as director that's supposed to be recognized on this level. Regional Office, 42USC29798, Section 638A. The director which I am by statutory laws from the laws itself from the White House books, who created it all. Utilize Regional Community Service Administration Office for the Park Zone carrying out the national responsibilities and directive delegated to them. Processing and finalizing grants we are on the outside looking in and you are doing it. And, contracts authorized under this act. You have your act and your stuff together and your authorizations and what you are doing, you are... Chairman Teele: All right, all right. Ms. Hill: Your authorization, and this has got to be cut out. Chairman Teele: Thank you. Ms. Hill: I can go on and on, because the duty of me to finish what I started in the White House is going to be carried out. That is what you order for, your strict stringent guidelines you don't understand have to be understood by me and this body. My administrative body that I am. I have put together. Board Member Sanchez: Mrs. Hill, who has not recognized you. Ms. Hill: The City of Miami, the state... Chairman Teele: The State, Dade County, the President. Ms. Hill: ... the County and what have you in their contracts. They have contracted to the community, that's not their duty. That's not your duty. We are supposed to be there to carry out and finish what I started from the White House. The City, the County the Mayor and the Managers, everyone, and also the State level. Chairman Teele: All right. Ms. Hill: This has been dealt with legally, and I want you all to adhere today, because you are going to hear more legally if you don't comply by these rules. [APPLAUSE] Chairman Teele: All right, thank you very much. All right, the Clerk, we need to clarify the motion. The motion was by Commissioner... on the item, the fiscal year consolidated budget roman numerals two through eight including the projects that are characterized there with the priorities that are attached. And, obviously, we can adjust any of these priorities as we go forward. Moved by Commissioner Regalado, seconded by Commissioner Plummer for purposes of discussion. Board Member Plummer: This is two -A. Chairman Teele: This is item... on our agenda, two -A. 42 November 16, 1998 Board Member Regalado: Two -A. Chairman Teele: It's two -A, and two-B. The program and activity. Two -A, and Two-B. On the question... Is there further discussion? Clerk will call the roll. The following resolution was introduced by Board Member Regalado, who moved its adoption: SEOPW/CRA RESOLUTION NO. 98-32 A RESOLUTION OF THE BOARD OF DIRECTORS APPROVING THE COMMUNITY REDEVELOPMENT AGENCY FISCAL YEAR 1999 BUDGET EFFECTIVE RETROACTIVELY TO 1999 AND APPROVING THE COMMUNITY REDEVELOPMENT PROGRAMS AND ACTIVITIES AND ANNUAL ELEMENT AS PROVIDED IN THE NOVEMBER 1998 CITY OF MIAMI COMMUNITY REDEVELOPMENT AGENCY FISCAL YEAR '99 BUDGET/PLANS, PROGRAMS AND ACTIVITIES ANNUAL ELEMENT; PROVIDING AN EFFECTIVE DATE AND FOR OTHER PURPOSES. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Board Member Plummer, the resolution was passed and adopted by the following vote: AYES: Board Member Wifredo Gort Board Member Tomas Regalado Board Member Joe Sanchez Board Member J. L. Plummer, Jr. Chairman Arthur E. Teele, Jr. NAYS: None. ABSENT: None. Chairman Teele: All right, on two-C, this involves a grant from the CRA (Community Redevelopment Agency) to Mt. Zion CDC (Community Development Corporation) for unreimbursed community services and a feasibility study to be paid from the CRA general funds. This involves again a problem where the City Commission in December of last year voted to submit a homeownership application zone to HUD (Department of Housing and Urban Development). We required that the Mt. Zion CDC which study certain parcels of land that are owned by the City to determine whether it could be included. They expended the money, they have been waiting now for over ten months to be reimbursed. There was a question that they started the work before they had a contract. But just note that the grant had to be submitted on December 20"'. So, the Commission approved it in the first meeting in December and the process never caught up. Board Member Plummer: We agreed to reimburse? 43 November 16, 1998 Chairman Teele: Yes. Board Member Plummer: Move it. Chairman Teele: Moved by Commissioner Gort. Seconded by Commissioner Regalado, Commissioner Plummer. Is there objection? All those in favor say "aye." The Commission (Collectively): Aye. The following resolution was introduced by Board Member Gort, who moved its adoption: SEOPW/CRA RESOLUTION NO. 98-33 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY APPROVING A GRANT OF $15,000, AS FUNDS ARE AVAILABLE, TO MOUNT ZION COMMUNITY DEVELOPMENT CORPORATION AS A REIMBURSEMENT FOR COMMUNITY SERVICES CONDUCTED ON BEHALF OF THE COMMUNITY REDEVELOPMENT AGENCY AND DIRECT AND INDIRECT COSTS RELATED TO THE PREPARATION AND SUBMISSION OF U.S. DEPARTMENT OF HOUSING URBAN DEVELOPMENT HOME OWNERSHIP GRANT APPLICATION AT THE DIRECTION OF THE COMMUNITY REDEVELOPMENT AGENCY; PROVIDING FOR AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Board Member Plummer, the resolution was passed and adopted by the following vote: AYES: Board Member Wifredo Gort Board Member Tomas Regalado Board Member Joe Sanchez Board Member J. L. Plummer, Jr. Chairman Arthur E. Teele, Jr. NAYS: None. F.M 4020 W= 44 November 16, 1998 8. APPROVAL OF CRA DRAFT OF "INTERLOCAL COOPERATION AGREEMENT" BETWEEN THE COMMUNITY REDEVELOPMENT AGENCY AND THE CITY OF MIAMI [NOTE: CITY OF MIAMI DRAFT HAD NOT BEEN RECEIVED AS OF PRINTING. Chairman Teele: All right, we have the Interlocal Agreement, which is really the main event of... other than the budget. The City of Miami draft had not been released as of the printing of the agenda. We subsequently received it, and I would certainly like to ask that the two attorneys could discuss the draft. I would hope that this draft, and I want to correct one thing that the Manager said before. The notion of a cooperative agreement, and I think the City Attorney will substantiate, in fact, there had to be some research about cooperative agreements. Actually comes... came from the Chair of the CRA (Community Redevelopment Agency) recommending that we do this in that we have never had an agreement. The City and the CRA have never had an agreement. Is that correct, Mr. Attorney? Mr. Alejandro Vilarello (City Attorney): Mr. Chairman, there was... Board Member Plummer: To the microphone. Mr. Vilarello: Mr. Chairman there was one in 1995 that identified certain resources to be shared between the CRA. Chairman Teele: There was never a comprehensive agreement... Mr. Vilarello: That's correct. Chairman Teele: ... other than a project agreement. Mr. Vilarello: That's correct. Chairman Teele:: This seeks to provide some procedures and policy. And, could we get a chair up there for the City Attorney, please, that can sit there and share with the staff and... Ms. Palmer, just pull one of the chairs over there so that he is not going back and forth, and we can go through the two drafts, but... but, I... Board Member Plummer: Do we have a City draft? Chairman Teele: Say again? Board Member Plummer: Do we have the City draft? Chairman Teele: I don't know if we received a draft, they were working on it. I talked to them twice... Board Member Plummer: I haven't seen it. Chairman Teele: ... over the weekend. We... It didn't meet the five-day rule for the City Commission agenda, nor is it meeting the rule here, but I think we need to resolve it. 45 November 16, 1998 Board Member Plummer: Do we have a copy of it? Chairman Teele: Has the attorney... Mr. Attorney, have you all released your draft? Mr. Vilarello: It is attached to the Commission agenda for the two o'clock meeting, for the City Commission. Chairman Teele: OK, could we go through the differences between the two drafts. I think that's the important... Is there a cheat sheet here? Did anybody do an analysis? Board Member Plummer: I haven' seen it. Ms. Elizabeth McBride (Co-counsel/CRA): In the package that was included there was a little synopsis of the City's... of the agreement as proposed by the City Manager. Chairman Teele: Ma'am, speak into the mike, please. Ms. McBride: In the agenda package, I think, that was given to you this morning there is a synopsis of the agreement as presented by the City Manager's Office. And, there was a previous synopsis given to you on October 28 h Chairman Teele: Oh, so Ms. McBride: ... of the Interlocal proposed on behalf of the CRA. Chairman Teele: Would you highlight the essential differences between the draft? The CRA draft has been in existence and has been circulated for the better part of what, six weeks? Ms. McBride: Yes, that's about correct, sir. Of the two agreements, I think one of the primary differences is that one, the agreement being proposed by the City Manager's staff primarily gives the only role and function to the CRA to provide technical assistance as in... Chairman Teele: In other words, they would provide no program activity? Ms. McBride: If you look at Exhibit C to that particular document, the first one provides a technical assistance grant for the CRA to provide technical assistance to CDC's and developers in connection with homeownership. And there is also funds for... Chairman Teele: Excuse me, I... Let's don't... over it. Does this agreement provide that the CRA would do projects, City agreements? Ms. McBride: Only the three items as listed in Exhibit C of the City's agreement. Chairman Teele: Is that what the state law contemplates? Ms McBride: Well, some of that, but more. I think your... The agreement being proposed by the CRA provide a much greater management from the agency, gives them powers with planning, development, program management... 46 November 16, 1998 Chairman Teele: But... Ms. McBride: ... technical assistance, coordination, project administration, monitoring and other services. Chairman Teele: Is there anything in the CRA agreement that is inconsistent or beyond what the state law grants to the CRAB that operate in the State of Florida? Ms. McBride: No, I cannot think of anything. Can you...? Also... Chairman Teele: So, in other words, the City would limit what the CRA can do? Ms. McBride: Yes. Board Member Gort: Let me ask you a question. Chairman Teele: Commissioner Gort. Board Member Gort: My understanding is, and we see that it happened in the past. A lot of projects that took place in this target area without the knowledge of the CRA board itself, and with the study being done and so on. What we are saying is, what we would like to see is from now on, any development, any plan that is going to take place within this target area would have to go through this board. Chairman Teele: Yes, sir. Board Member Gort: This is what we are trying to accomplish, am I correct? Chairman Teele: That's, that's one of the things we are trying to accomplish. What we are trying, essentially to accomplish is a working relationship that is clearly defined. Part of the reason that we got these allegations like this as the most mismanaged agency in the history of the City goes back to the fact that most of the things that are being complained about were done by the City, but there was no clear agreement. And, so, the question becomes, did the City do certain things or the CRA. And, what we are saying is look, this is a very... This area represents less than one percent of the entire City of Miami, both in land mass and population. We are saying that within this one percent, that anything that goes on within this CRA boundaries whether it be in the OMNI, the Park West or Overtown will be cleared through the CRA board so that we are operating in concert with each other and not in conflict. You see, let me ... Commissioner Gort, let me give you a classic example. While the CRA for the last five years didn't have any money because of quote "the Community Development Office said they didn't have any money to give to the CRA" out the front door, out the back door there were literally millions of dollars going for the rehabilitation of projects that quite frankly, many of them should be bulldozed in the CRA area. And, so, when you look at the last five years of money that the CRA got no money for capital activities, and this goes to Commissioner Sanchez' point, and you look at the money that was going out the back door through Community Development for rehabilitation of buildings, et cetera, you are going to see that there was a lot of money. The City spent about seven, eight million dollars ($8,000,000) in the area, but it was really to do things that were counter productive from the redevelopment concept of the area. 47 November 16, 1998 Board Member Gort: Mr. Chairman, my understanding is, its our intent. This is what we would like to do. And, I think the... and I don't know what the staff s response is going to be but, my understanding is that there is certain criteria and certain guidelines that we have to go by according to the CDBG (Community Development Block Grant) rules and so on. But, think what we are saying is, those allocations that were given individually to the people, we as an agency could come up with the proposals ourselves and present them to the different funding sources. Chairman Teele: Yes, sir. Board Member Gort: That's what we are saying. It could be us by ourselves or it could be us with a joint venture with a local developer or CDC (Community Development Corporation). Chairman Teele: CDC. Board Member Gort: OK, my understanding, I don't have any problem with that. How can we draft that so that nobody won't have any problem with that? Chairman Teele: Well... Board Member Gort: What is the differences between the City and ours? Chairman Teele: The issue is this. And, you know, I have got to tell you, Commissioner. Board Member Plummer: ... City side. Chairman Teele: J. L.. Board Member Plummer: I am listening. Chairman Teele: I will tell you this, this Commission has already voted. Ninety-nine percent of everything that is going to be discussed has already been a part of the City resolutions and City policy. What you have now is policy being made, OK, by somebody other than the Commission. Now, Mr. Attorney, you are the attorney. Are the policy issues that are in the CRA draft consistent with the City of Miami Commission policy? Mr. Vilarello: Mr. Chairman, both agreements, the Interlocal prepared by CRA staff and the Interlocal prepared by the City of Miami, both, comply with the law. It's just a question of.. Chairman Teele: With what? Mr. Vilarello: With the law. Chairman Teele: No, that wasn't my question though. Mr. Vilarello: It's just a question of policy of how this City Commission and the CRA want to handle these projects. 48 November 16, 1998 Chairman Teele: But my concern is about you, as a City Attorney, drafting an agreement that's inconsistent with City policy. The policies that this Commission, not the CRA, but the Commission has adopted is that those items need to be very clearly identified that they are inconsistent with what the City Commission policy is because I have got a question as to who is making the policy. Is it the Commission or is it the management? Mr. Vilarello: The City Manager makes recommendations to the City Commission on how to handle the... Chairman Teele: Could you outline, then, to the Commission or allow the Manager to come forward and outline, if he would like to, please. Mr. Manager, you know, if.. As we told the Clerk's Office over here, you know, you should have as much staff space as you need. If you would come and outline what the policy issues are that you see for the CRA... Board Member Gort: What are the differences? Chairman Teele: The difference is our policy. Mr. Manager. Ms. Gwendolyn Warren (Director, Community Development): I am representing the City Manager. Unidentified Speaker: He's here. Chairman Teele: Please ma'am, proceed. Ms. Warren: Yes, my name is Gwendolyn Warren and I am the Director for the Department of Community Development. And, Commissioner Gort, I guess there are several issues, but to speak directly to the point. The CRA has submitted or introduced an Interlocal Agreement, which again, it's all subject to policy interpretations in terms of the differences between theirs and ours. But, I think, substantially, what it does, is it calls for the definition or the redefining of the CRA to have authorities one, outside of the CRA area in that it would be able to operate programs outside of the CRA area. Secondly, it appoints or prescribes through an ordinance administrative functions and activities that currently rests with the Department of Community Development. In their Interlocal Agreement, it describes themselves as a grantee of the City of Miami through ordinance the... for CDBG and other funds. In reference to CDBG funds, what that in fact does is make them another department of Community Development operating in the CRA and/or the surrounding area. So, they would have the responsibility for grant planning, administration, procurement and other types of activities. They are currently under the administrative authority of the Department of Community Department. In fact, what it would do is, it would cut out an area of the City for CDBG or federal funds to be administered through the CRA versus through your current City administrative functions whether it be Planning, Community Development, Finance or whatever. The management.... so, I think in totality, what it does is, it develops a separate instrument from the current administrative structure to administrate funds for that area and any other impacted areas. The way it differs from the administration's recommendation is that the City is basically recommending that the CRA receive funding, that they receive it under the same authority as a sub -contractor like the other East Little Havana CDC and other organizations that you fund, and that on an annual basis, the City Commission through its public hearing process could determine whether or not they receive one million, five million or whatever. The reason and the basis for the administration's 49 November 16, 1998 recommendation is two -fold. One, Commissioner Teele has continued to discuss and elude to the whole issue of the City's passed financial practices including the administration of CD funds. Over the last six months, we have been able to negotiate with HUD (Department of Urban and Housing Development) to, basically, settle the twenty million dollars ($20,000,000) worth of question cost, and implement a corrective action plan that they have agreed to. With this proposal that they are currently recommending it hampers, significantly, our ability to implement their plan, to hire staff to bring the City into compliance. And, in my opinion, as an administrator, it would jeopardize our ability to continue to receive federal funds. Board Member Gort: Let me ask a... Mr. Chairman. Let me ask you a question. I understand what you are saying, and my question is this. Can the CRA, through its board and through the advisory board (unintelligible)? My understanding is, any contract that is awarded to any neighborhood that qualify for CDBG funding has to go through public hearings. That public hearing could be the combination of this agency and whoever comes to the meeting, and could these agencies receive those projects and we recommend where we think it should be done according to the plan that has been put together here, and would that follow the guidelines? Ms. Warren: That would follow the guidelines. That would be my recommendation as to how you do it, but current... currently, a part of the agenda that you are reviewing for the CRA in a subsequent item, you are also establishing your own advisory board. Board Member Gort: Right. Ms. Warren: That, basically, would have the funds come through the City, go to the CRA, they would have an advisory board and a separate checking account, and planning responsibility separate from any current City Department. Again, I would... Board Member Gort: Wait, wait a minute. We are getting right there. My understanding is, the differences that we have here today is, do the funding to the CRA, do the funding through the CRA recommendation through the City, I think... Chairman Teele: That's, that's really not... That is a part of it. That is a small part of it. Let me tell you.... Board Member Gort: All right. Ms. Warren: That's part. Well, and the budget is another issue. Chairman Teele: The budget is a big issue. Ms. Warren: Yes. Chairman Teele: Let me tell you. The CRA has been and continues to be held hostage. And, what you are dealing with is, quite frankly, whether or not we are going to be serious about having a focus redevelopment in this target area which I think we all agree has language for a long time now or whether or not we are going to have business as usual, that is, it's just... The CRA area is just a part of the rest of the City of Miami for redevelopment purposes. Now, the state law, any area can create a CRA provided you go through the plan and providing the County agrees to do it. Because in effect, you have to go through a planning process which is extremely 50 November 16, 1998 0 elaborate. It takes well over a year to do. I mean, there is no short cuts to it. There is no limitation on the number of CRA's that the City could create. However, the County is not going to support the creation of additional CRA's unless there is a unique need to do so. You know, like in Overtown / Park West where you have the unemployment forty-seven, fifty percent. The problem of course is this, that for the last twenty years this process has been exactly the way its being defined now. That is, the commingling of money. We asked for a study of the Third Avenue Business Corridor, by City resolution, in March. To date, there has been absolutely no study, no businesses have been interviewed. We have no idea, so we are going to have to go out now and hire FIU (Florida International University) or somebody to do a study because we don't have that kind of time to wait. Let me just finish. The Commission voted in June to instruct that certain development activities would begin on Third Avenue Business Corridor. That's been there in the Community Development Office. It's not going to happen. Let me tell you the worst thing about what has happened. Is that the Commission approved the ninety-four, the nineteen, the twenty-fourth year grant for all of the CDCs all over the City in June of this past year. To date, not one dollar has been released from the Community Development Office to the CRA. Now, and this is where I keep saying that the City is shooting itself in the brain, because every absent, everybody who is politically connected can go out here, apply pressure. They can get their grants signed. And, if you talk to each of these public... each of these directors, starting with the Public Works Director, the Parks Director, you go right down the line of the people who are out here where the rubber meets the road, they will each one tell you that it is easier for a CBO (Community Business Organizations) to come in and get money to improve a park lets say, or build a sidewalk than it is for the City departments to get this. And, I think one of the things that we cannot allow in the CRA is, we cannot allow the CRA, we are talking about one percent of the City population, one percent of the City land mass, to continue to be under what has not worked for the last twenty-five years. And, so the essential difference between what we are proposing and what the City is proposing, is that the CRA Executive Director will be accountable to the Board of Directors of the CRA to get it done. To get the job done and to do the planning, to do the program analysis. The CRA is still going to have to come back before the Community Development Office through the public hearing process to get funds, OK. Now, until HUD were to approve us as a sub -recipient, but that's not a foregoing conclusion. But as long as it is the way it is right now, any funding from the City of Miami is subject to the same process. But this is the problem, the CRA is put at the back of the list and every community based organization in this town, I dare say if you were to require the Manager to submit a list of all the grantees that were approved in June and how many have contracts and how many don't, I would tell you about eighty percent of them have contracts and the one big one that doesn't is the CRA. We are six months into the year, gentlemen. What can we do? Board Member Regalado: Mr. Chairman, I would tell you that... Board Member Gort: Wait a minute, let me finish my thought, please. Board Member Regalado: Willie. Board Member Gort: My understanding is the.. of all the contracts that were awarded were contracts that have been awarded before. And, I think we also awarded about three contracts to different CBO's here in Overtown to work with. Is this the contract that we are talking about, the individual contracts that...? 51 November 16, 1998 Chairman Teele: No, I am talking now about the contracts, the Community Development funding that the CRA, the three seventy-nine, the three hundred and seventy-nine thousand... Board Member Gort: Right. Chairman Teele: in each of the various activities that are listed there that the City... Board Member Gort: That has not been done yet. Chairman Teele: No. Ms. Warren: And, sir... Chairman Teele: And the point is this. We are five months, we are five months of the twelve months of the year. And see, when you start looking around at what needs to be done and where there is going to be carryover money, you can't intelligently just go out and rush out and spend money. It needs to be properly planned, you need... Ms. Warren: But, Commissioner, if that was true the staff at the CRA, nor their rent can be paid. They were awarded their funds in March. Historically, they have never had a sub -contract agreement with the Department of Community Development Chairman Teele: I have been... Ms. Warren: They operated as a City department, they have total access to their funds and they have drawn against them. Chairman Teele: We have been told, the City CRA was told they could not get access to the funds until the Interlocal Agreement was complete. Ms. Warren: I have no idea who told them that. It was not me, and their funds have... will be available to them, and there has never been an interruption in staff flow, utilities, all of which are paid out of that grant. So, even if they were told that nothing has occurred to their operation. Chairman Teele: Well, then, since you are the expert explain to me how seventy-five thousand dollars ($75,000) was paid out for an employee of the CRA that wasn't in... with the CRA over the last year. Ms. Warren: Correction, it was not seventy-five thousand. In May... In March 301h' prior to me becoming the director, an employee of the City chose to go back to the City and no longer wanted to be employed by the CRA. He returned to the Park Department upon which he originated. There was never a... and when I did discover that there was an error and a grant was not reimbursed, at the last Commission meeting when you talked about the assessment of the budget, one of the assessments that I made is that an employee had been transferred but the CRA had not been credit. So, if the administration is so incompetent... Chairman Teele: I didn't... Ms. Warren: ... we were the ones who discovered the error. 52 November 16, 1998 Chairman Teele: Miss, Miss, Ms. Warren. Ms. Warren: Yes, sir. Chairman Teele: I did not say the City's administration was incompetent. I simply... Ms. Warren: Well, you are inferring that they can't get their money because there is no contract. There has never been a contract, and they do get their money. Chairman Teele: And, there should be a contract. And I don't want to legitimize the piss -poor passed practices of this City. Ms. Warren: Neither do I. Chairman Teele: And, I am not going to operate... Ms. Warren: Neither do I., sir. Chairman Teele: ... as the Chairman of the CRA or a member of the CRA without a document. Ms. Warren: Absolutely. Chairman Teele: Because I can tell you right now, everybody is being followed, everybody is being watched, and the first time somebody at the CRA on the staff enters into an agreement without a document, you are going to read about it in the newspaper. Ms. Warren: But, Commissioner... Chairman Teele: So, the only thing I say is this, don't try to hold me hostage or penalize me for wanting to have a written document. Ms. Warren: Absolutely. Chairman Teele: We should... And, everybody in this room should want the CRA Ms. Warren: We do. Chairman Teele: ... to have a written document. Ms. Warren: We wanted a document of accountability... Chairman Teele: And, the fact that.... And the fact that a person would be... Ms. Warren: ... that is truthful. Chairman Teele: The fact that a person was being paid by the CRA funding after he went back to his agency... 53 November 16, 1998 Ms. Warren: Uh-huh. Chairman Teele: ... in my judgment reflects again, on the fact that the funds are not being properly managed. Ms. Warren: You would risk all of our federal grant over a staff being inappropriately assigned to a cost allocation for six months? Chairman Teele: Absolutely not. No, ma'am. Ms. Warren: So, then, the issue is, what is the difference between the recommended CRA agreement and that of the administration. The difference is... Chairman Teele: And, the answer is. The answer is... Ms. Warren: No, it's not. Chairman Teele: ... it is a policy question as to what the Board of Directors of the CRA and the City of Miami... Ms. Warren: No, sir. It is a policy decision for the City Commission. And, after you dismiss yourselves and... Chairman Teele: Ms. Warren. Ms. Warren: ... reconvene as a City Commission, sir... I won't get a chance to do this any other time. Chairman Teele: Ms. Warren, you have interrupted me and I don't at all mind you interrupting me. The only thing that I would like to be able to do is to state for the record, that policy agreements are joint agreements, between as in any contract, as in any contract between two parties, OK. Ms. Warren: Yes, sir. Uh-huh. Chairman Teele: And the policy decisions as to how the CRA will be managed is an agreement between, as I started out by saying, the Board of the CRA and the Commission of the City.... Ms. Warren: Yes, sir. Chairman Teele:... OK. And, it's not the Mayor's decision or any of his puppets. Ms. Warren: Absolutely. Chairman Teele: OK, all right. Chairman Teele: OK. Ms. Warren: And, not this puppet anyway. But, Commissioner... 54 November 16, 1998 Board Member Regalado: Is ... (inaudible) Can I? Ms. Warren: ... Rega... Gort. Yeah. Board Member Sanchez: Wait, wait, hold on. Board Member Plummer: Who is the puppets? Ms. Warren: I guess, I was for that one. Chairman Teele: Not you. Board Member Sanchez: No. Board Member Plummer: You bet your bippy. Chairman Teele: Commissioner Regalado, Commissioner Sanchez, Commissioner Gort. Board Member Sanchez: I would like to let her finish. Board Member Regalado: A question, a question. Ms. Warren: Yes, sir. Chairman Teele: Commissioner. Board Member Regalado: Is there any delays on releasing funds for social programs? Ms. Warren: Currently? Board Member Regalado: Yes. Ms. Warren: Not to my knowledge. The system is, I think about eighty percent as Commissioner Teele has indicated have been completed and executed. There were, from what I understand about eight agencies who are still in the process of completing their contracts out of approximately one hundred. Board Member Regalado: But, last year there wasn't a delay. Ms. Warren: Last year we were doing it incorrectly. Board Member Regalado: OK. Ms. Warren: So... You want me to expound on that? Board Member Regalado: No, I just wanted to find out why is it that there was a delay. I heard, as you know, complaints that there were some social programs that were not getting their funding approved by the City Commission. 55 November 16, 1998 Ms. Warren: Just to make it very brief. Apparently, passed practices as Mister... Commissioner Teele has indicated, funds have been released without a fully executed contract. Now, you have to have a contract for the release of funds. Board Member Sanchez: Commissioner Sanchez. Board Member Plummer: Now, for the record, please. Let's don't get into ourselves into a jam here. The reason they have not been funded, they have not fulfilled their legal obligations for their contracts. Ms. Warren: Correct. Board Member Plummer: You are going to get some of the service providers of the WAGES (Work and Gains Economic Self -Sufficiency) right now that are going to have you, have my throat because they have not been funded for the same reason. They have not fully obligated the contract and returned it to us, and until such time, we are not going to fund anybody without full authorization of a contract. Ms. Warren: That's correct. Board Member Gort: We have taken the funds away from about four agencies for non- performance... Ms. Warren: Correct. Board Member Gort:... which is something new that we are doing now, too... Board Member Plummer: That's correct. Board Member Gort:... which is very important. I think we need to know what's the difference in the policies between what's being offered for the... What's the major difference? Ms. Warren: The major difference, and again controlling my temperament. The major difference is that, Commissioner Teele is correct, it is a policy decision. The Commission when they convene can either choose to designate the CRA (Community Redevelopment Agency) which represents less than one percent of the land mass and one percent of the population as an equal administrative entity to a City, the City administrative organization or/and they can treat the CRA as a legitimate activity that requires funding, including Capital Improvement funds, but that we hold them to the same test that we hold the rest of the public which is, on the one hand, yes, I do feel that the City has been remised in the passed in being accountable for its funds, but I can assure you that that is not our future. So, either we can develop a policy based on the City's history, or we can develop a policy based on the City's future. That is purely up to the Commission. But, I would advocate as an administrator to sit up and start chopping away at City administration because of what happened ten years ago is inappropriate, and it is not administratively sound. My job is not to do what is politically expedient, but what is going to get us into the future. What's going to get us into the future? 56 November 16, 1998 m� Chairman Teele: I don't think any to do what is politically expedient. Ms. Warren: OK. What is going...? I don't think any of us... I don't think any of us are going Chairman Teele: I think we are all going to try to do what is right for these nine thousand people that has not been done for the last twenty years. Ms. Warren: Then, I think what is right for these nine thousand people is that they receive funding, more funding and that we hold people publicly accountable including City administration in ensuring that the public receives the money, not developers... Board Member Sanchez: Absolutely. Ms. Warren:... not developer related activities. And, the City Commission which is a recipient of the funds should be held to the fire to ensure that seventy-seven million dollars ($77,000,000), whether it was given to the CRA to administer or anybody else to a population of nine thousand, that somebody have a job. And, our job is to make sure that in the future no one agency, no two agencies, but the whole City is accountable for the monies. You do not do that by chopping up the City. You do that by holding the City's fiduciary responsibilities, by holding the Law Department accountable and by holding yourselves accountable, and for allowing this community at any point to tell you when we are not doing that. I defy anybody to tell us when we are not doing that. I defy anybody to tell us where we are not doing that now. If we want to talk about what happened five years ago, or ten years ago, there is not a misspoken truth in this room. But that is not what the future is about, and I think the way to heal the City is not to remind it of its ugly past, but to make sure everybody is included in its future. And, the differences in the two Interlocal Agreements is our philosophy and theirs. Chairman Teele: Thank you, very much. Board Member Gort: OK. Board Member Plummer: Wait, I have a question. Chairman Teele: Hold on one minute. Hold on, Ms. Warren. Ms. Warren. Board Member Plummer: Gwen, speak... expound a little bit on your comment in reference to allowing the CRA to deviate outside of its boundaries. Did you...? Ms. Warren: Yes. Board Member Plummer: Tell me what you meant by that? Ms. Warren: What it... Chairman Teele: Commissioner, Commissioner... Go right ahead, Ms. Warren. Ms. Warren: All right. The CRA, as you know... 57 November 16, 1998 n . # Mr. Alejandro Vilarello (City Attorney): Mr. Chairman, before Ms. Warren... Ms. Warren: Yes. Mr. Vilarello: ... I believe in the last draft that that was removed by the CRA, although that was an issue that was being considered by the CRA and staff. Ms. Warren: No, no. I beg to differ with you. The reference that the CRA be allowed to operate as a Community Development agency outside of its district was deleted from the Interlocal Agreement. But what replaced it was that the CRA would be granted grantee status which in fact if you do that, the City Commission is empowering them to operate City-wide. It's just another way to accomplish the same thing doing it differently, and actually with more authority. Chairman Teele: Commissioner Plummer, if I may give you a different perspective. Board Member Plummer: Please, I want to hear it all. The Board of Directors of the CRA is a group of people... Board Member Plummer: Not especially, we tried and didn't work. Go ahead, I am listening. Chairman Teele: The Board of Directors of the CRA is a group of people that you all, that you know, and the CRA cannot do anything that the Board of Directors doesn't allow it to do. I mean, you know, I want you to just take this argument full circle. The point here is that for twenty-five years the CRA has operated exactly the way Ms. Warren has outlined. And, most of the projects that have been done have been done not by the CRA... not by the CRA, but by the City of Miami. I think it is very, very important, J.L., for the CRA Board to understand that the problems of Overtown are problems that did not just begin to occur within the last year or two years. The problem that we have is that there is a clear lack of focus in the context of anyone being held responsible and anyone being held accountable. We have had accountability. Every dollar that the CRA and the City have spent are accountable to the same financial and fiduciary process for the last twenty-five years. The question now is, are we going to say that we trust the Board of Directors of the CRA and the staff to, basically, bring about a clear focus and a clear direction related to the CRA areas. This, I would remind you, is what the state law contemplates. The state law specifically contemplates that within the CRA area there would be a focus approach, an intensive approach to development and redevelopment. And, that's what the plan basically require. I would ask that the City, that the attorney outline what the actual legal differences are without emotion, what the actual legal differences are to the two agreements. Ms. Jacqueline Kleinhans: I am not... [inaudible — off microphone] Board Member Plummer: Mr. Chairman, before he does that, can I ask a couple short questions? Chairman Teele: Yes, sir. Board Member Plummer: Mr. City Attorney, explain to me in detail briefly, briefly in detail what it means that the CRA becomes a grantee of the CRA? Does that mean anything the CRA does the City has to back? You are not the City Attorney. So, in other words, we can obligate something here, not approved by the City Commission, please explain it to me, I would like to know. 58 November 16, 1998 Mr. Vilarello: The agreement calls for the City to declare the CRA as a grantee. Board Member Plummer: Yeah. Mr. Vilarello: ... not a guarantor Chairman Teele: A grantee. Board Member Plummer: Grantee. Mr. Vilarello: A grantee of the City and afforded the same rights and privileges of any other grantee receiving HUD funds. We... The City would continue to be responsible for any grantee that operates or receives funds. Board Member Plummer: I understand you. Well, you know, all right, look. The bottom line of this whole thing is, even though you say here that it's separate and apart, the five of us sit with two different hats. Chairman Teele: That's right. Board Member Plummer: OK. And, anything we approve here, we can approve or disapprove with the other hat... Chairman Teele: Right. Board Member Plummer: ... which I think is dumb, but that's the way this thing is operating. Now, I have another question. In the Interlocal Agreement, Mister, I guess, City Attorney, I am looking forward here where it says in reference to City employees and it speaks to City employees of three hundred and sixty-three thousand and twenty-one dollars ($363,021). 1 do not find that in the amended budget. Chairman Teele: That's a historical base. That's a calculation. Is that a calculation? Board Member Plummer: Well, it would seem like to me, it's either going to be a revenue or an expenditure. Chairman Teele: No, it's a baseline. It's just a point of departure to determine what is the his... Read the section, J.L. Board Member Plummer: "...for the purposes of Human Resources support of the Miami CRA, the base year... Chairman Teele: Base year. Board Member Plummer: ... shall be salaries and benefits allocated for the City employees, dedicated to provide services to the CRA, an amount of three hundred and sixty-three thousand twenty-one dollars ($363,021) is hereby provided for the salaries and benefits of the City employees designated pursuant to Section 5.1 year after." 59 November 16, 1998 ,,:. O Ms. Dena Bianchino (Asst. City Manager/Planning & Development): Can I...? Board Member Plummer: Now, excuse me. ($363,000) isn't going to go away. I mean is it. budget, I need to know. Chairman Teele: Let the... Three hundred and sixty-three thousand dollars .. is it part of the budget? It's not part of the Mr. Vilarello: My understanding, Mr. Chairman, is that the budget is, in fact, in excess of that. So that, the five hundred and four thousand dollars ($504,000) is the budgeted amount for salaries. Board Member Plummer: But why wouldn't it be included in the budget as an in -kind service? Chairman Teele: It's a base year calculation. It's not a budget item. Ms. Bianchino: It's not... It's not... Chairman Teele: It's not a budget item. Ms. Bianchino: But, it's in the Interlocal Agreement. I think it's somewhat confusing. I would like to clarify a few items in the budget, please. Board Member Plummer: Somebody, I need for to do it. Ms. Bianchino: First of all, while the Interlocal Agreement does not call for or talk about walking outside the CRA, the budget that you just approved includes two projects which are outside the CRA boundaries. Board Member Plummer: Which are what? Mr. Bianchino: The Little Haiti Employment Creation Program which is a... Chairman Teele: Which was approved by the City of Miami Commission. Ms. Bianchino: No it was not. Not as a project of the CRA. It was approved as a CD (Community Development) project to be administered as we administer other CD projects. Chairman Teele: That... Ms. Bianchino: The other project that is outside the boundaries is the City-wide Microloan Lending Program which should be administered City-wide by Miami Capital Development Corporation. Chairman Teele: Oh, absolutely not. Ms. Bianchino: Well, I tend to disagree with you, sir. 60 November 16, 1998 Chairman Teele: I am sure you do. Listen... Ms. Bianchino: May I finish and answer Commissioner Plummer's question? Board Member Plummer: Please. Ms. Bianchino: The Interlocal Agreement that you see in front of you does not accurately reflect the budget of the CRA. It's not the same thing. There are two different budgets here that you are looking at from the CRA. Then, there is another budget which you probably haven't had the opportunity to look at which is the staff recommended budget for the CRA which I presume we will take up at the Commission meeting. Board Member Plummer: You know... You know, I am sorry. There is bottom lines, OK? Now, I think to me a budget, bottom line, whether it's prepared by the CRA or prepared by the City, the bottom line should be all of the dollars involved for a given fiscal year whether it's CRA prepared or City, and then I can compare. But when you charge me with three hundred and sixty-three thousand of City employees in benefits and you don't include it, any in revenue or expenditure, I get lost. Now... Ms. Bianchino: Let me clarify one other thing, if I may. Right now, there are two City employees on the staff of the CRA. It is our recommendation in the City's agreement that those two City employees can choose to stay and work for the CRA or do whatever they want they want to do. But, any future hires of the CRA not be City employees because it is... It's not clean, and I think Commissioner Teele agreed with that, that as people move on, new employees not be City employees. And, I want to... Chairman Teele: I think that's... Ms. Bianchino: I want to stress one more thing while I have the opportunity to talk. We have a serious issue here in regard to the HUD (Department of Urban and Housing Department) audit. And, I think we really need to think about what we are doing here. We are under the scrutiny of HUD. They are watching every single thing that we do, and to give authority to another agency at this time is not in our best interest. We need to clean up the HUD audit, we need to get through the eleven resolutions that you, City Commissioners, passed in order to meet the obligations of HUD. HUD is now being looked at by the Inspector General of the United States because of the City of Miami and we need to go about the business of cleaning up our audit, not creating more confusion which I think the CRA budget does. Board Member Plummer: I have another question. Mr. Chairman, I don't find anywhere in the CRA Interlocal that the CRA will and continue to do business as the City. What I mean by that, that any projects of bidding of any kind of RFP's (Request for Proposals) have to go through a project kind of analysis. It has to make determinations that there is a fair return of the monies to the City. That it has to be all, anything over forty-five hundred dollars ($4,500). I asked the question before, that they have the allocation up to. You say, there is no dollars but when they go to make a bid for any kind of a project, are they under the strict guidelines as the City is as to how they must do it. There must be an auditing committee. There must be a recommendation by the executive director. It comes to the CRA. I am asking, are we under the same guidelines that we are as we operate in the City of Miami and I do not find these in the Interlocal Agreement. 61 November 16, 1998 Chairman Teele: They are... First of all, they shouldn't be and that's an internal operating procedure, but the answer is, they are. This is still a public agency and it's pursuant to state law that is spelled out there and all of the requirements are in the... are applicable. But, J.L., let me just say this. Board Member Plummer: Sure. Chairman Teele: You know, if this weren't so serious it really would be, it would be funny. You know, now you have the City management basically that has had responsibility for this for 25 years. All of the issues that we are talking about currently are with the City of Miami management. What we are talking about are one hand is saying, we are not going to have any City employees. We don't want any City employees. On the other hand, we are saying... Board Member Sanchez: Mr. Teele, can I? Can you yield for me for a minute. That's not a fair statement to make to these people. They have not been here for 25 years. That's not a fair statement. Chairman Teele: Yeah, but let me tell you something. Board Member Sanchez: It really isn't a fair statement. Chairman Teele: Government stands in the shoes of the succeeding government. And, that's the point that I have been trying to say. I say every time that I have served as the City Commissioner, I am responsible for your condition. Now, we can all get personal. I mean, we can all start coming up with ideas of what she did and he did. But, the City of Miami is the government, and the government is responsible. And, every succeeding Commissioner stands in our shoes. You don't get to start the clock over, and just as a matter of governmental structure, we are all standing in the same shoes of the people who sat in the shoes before us. And, we have to accept responsibility, otherwise, what you are basically saying is that the people who have suffered under this, didn't suffer, that they... that the suffering just started today. And, the suffering didn't just start today. This has gone on long enough. Now, all we are talking about as I have said repeatedly, is whether or not the CRA is going to be subject to the CRA board.... of the records, and all of the things that are being mentioned have to come before the CRA board. The difference is, it's not going to get layered in the morass of government and I think we all have a story that we can tell about projects and projects and opportuni... Look, this Commission, the Commission approved certain grants and activities in the course of the year, none of which have come back to this Commission as reprogramming. Normally, in the County, those things come back within the next Commission meeting. I mean, I can go right down... The Basic Training grant to give them their money was approved sixty days ago. That item hasn't come for our reprogramming yet. This is the same basic government. And, what I am simply saying is this, the issue here is whether or not there is going to be a clear policy program and planning function in the CRA boundaries. That is, the OMNI, the Park West and Overtown. And, if you want that clear, focus and direction which it has not been, it's been a part of the City-wide process for the last 25 years, then we need to move forward with the CRA Interlocal. If you want this to continue to be a part of the City, normal budget, normal planning, normal grant process, then you want perhaps, the Manager's Interlocal. But, I can tell you one thing, that the Manager's Interlocal is the way it has been done for the last 25 years. And, whether or not... whether or not, you know, there is going to be an admission of this, it's up to us. We are the Board of Directors, and if we don't trust ourselves, then, what is it we are afraid of. And, I just 62 November 16, 1998 fail to understand why once the Commission has voted that there would be a separate and autonomous CRA, as we did back in December when we took the Oversight Board process that the previous Mayor had moved to make it a department of the City, and the Commission voted unanimously with the debate and with that Mayor agreed to move it back and make it truly autonomous. And, the one thing that I committed to this board is that we would establish a clearly autonomous and focused agency. We voted on that in January. The Oversight Board approved it and now we are getting ready to debate whether or not it's going to be autonomous. That is, autonomous under this Board of Directors or whether or not its going to be autonomous under the Board... the City Commission and the Manager and the management process. And, all that I am saying is, it hasn't worked. Let's give it a chance for five years. One of the companion agreements here is to sunset the CRA to have a total review of the CRA at the end of five years. But, I would again ask one thing, could we get simply on the record without any emotion what the differences are and not just pick and choose one or two things. What the differences are between the two agreements. Mr. Vilarello: Mr. Chairman, if I could first address a point that Commissioner Plummer brought up which was with regard to procurement. The CRA is not constrained by the same procurement requirements of the City. It is constrained by state law, and it's also constrained by HUD guidelines for the use of the funds. But it does not, it is not constrained by City code. Chairman Teele: State law. Mr. Vilarello: That's correct. Board Member Plummer: Thank you, because that will be my next motion at the City Commission meeting. So I don't have to worry about one set of rules for CRA and another set of rules by City Commission. I think the City Commission rules are good, they are very explicit and I will move at the next City Commission meeting the CRA operate under the same con... rules that we operate under the City. So, I'll do that... Chairman Teele: And, J.L., that's your right, but I am going to tell you something. Board Member Plummer: Yeah. Chairman Teele: You need to make that motion very carefully and very thoughtfully. Because one of the things that the State grants to redevelopment authorities is greater authority than to the cities. And, I will tell you, if you do that the way you are saying doing it, you are going to destroy the CRA. There will be no redevelopment because, for example, eminent domain under the City, under the City Charter and under City rules is radically different from the redevelopment. I mean, and the City of Miami Beach has, and other cities have done this very, very successfully and very, very importantly, and a... And, as an example, redevelopment, it's not like there are no rules, J.L., but redevelopment for the purpose of the CRA is to be pursuant under the state law to the plan. Redevelopment, eminent domain under the City is a very, very narrow definition and I can tell you, I don't want to play into the hands of the property owners. Board Member Plummer: I am not talking necessarily to eminent domain, I am talking to the expenditure of dollars. Unidentified Speaker: Amen. 63 November 16, 1998 Mr. Vilarello: Commissioner Teele, Chairman Teele, if I can address your issue quickly? Chairman Teele: Could be just list, please, the differences between the CRA Interlocal and the City Interlocal because I can tell you right now, if we are... You know, if we are going to adopt... If there is... If there is going to be the adoption of the City Interlocal, we basically have done nothing, we have just basically had a bid charade and basically will be doing it the same way we have been doing it for the last 25 years, and I can't... I am not going to accept that. Mr. Vilarello: If I can address essentially the differences and, then, the details of it, perhaps, you can address. Essentially, the Interlocal Agreement prepared by the CRA puts within the CRA the authority to control and funds these particular projects. The agreement that's... The Interlocal Agreement that is proposed by the administration provides that through the Community Development Department. In other words, the CRA Interlocal would create a second group of planners and developing departments as opposed to the City's. It would be an independent group of another Community Development Department, essentially. Chairman Teele: But don't look at it as a group of people, because I have said, and this board has voted, we are going to not get engage in this personnel... We are going to use contracts and engineering and architects consulting and planning firms and so that when we don't need them, we don't have to keep them on the payroll, we are just going to be through with it. Board Member Plummer: Are you going to take a break? Mr. Donald Warshaw (City Manager): May I make a couple of comments, please? Board Member Sanchez: Not yet. Board Member Plummer: No? Chairman Teele: No. Board Member Plummer: Then, I'll be back because I have got to do something nobody can do for me. Commissioner Sanchez: Go ahead, and... Chairman Teele: Mr. Manager, welcome. Mr. Warshaw: Yes, thank you, Commissioner, Mr. Chairman. Just one thing I would like to state for the record, and I think Gwen Warren has pretty much delineated the differences between the two agreements. We have a twenty million dollar ($20,000,000) exposure to the federal government. And, Commissioner Teele, you are one hundred percent right, the City has a horrendous history in the last 25 years in the way it has managed federal dollars. And, Gwen Warren and Dena and the staff of CD (Community Development) is on its way... Board Member Plummer: Gort. 64 November 16, 1998 Mr. Warshaw: Is on its way toward resolving this audit. This particular agreement that's set forth by the CRA is going to jeopardize and expose the City to this twenty million dollars ($20,000,000). This particular agreement that is set forth by the CRA is going to jeopardize and expose the City to this twenty million dollars ($20,000,000). And, I can tell you, without going into details because HUD and the City is trying to manage the audit and to keep our exposure down to the one, to two million dollar ($2,000,000) area. But, if this were to occur, and this audit, you know, was to be exposed in effect as Gwen Warren pointed out to you, the HUD Office of the... in Miami is itself under investigation by the Inspector General of the United States and we are trying to work together to resolve this. And, my biggest concern is that we expose the City to twenty million dollars ($20,000,000) that, gentlemen, we just don't have and we are trying to keep it to the barest to bare minimum. So, I just ask you to, please, keep that in mind and consider that because that could be a general fund exposure as well as a potential future lack or no funding from the federal government. And, there... not only will there not be a CRA, there won't any CD projects at all because the federal government will shut out the City of Miami of all its funding, and then we'll all be in a lot of trouble. So, I ask you to, please, keep that in mind. Unidentified Speaker: They are already in trouble Board Member Sanchez: Mr. Chair, I have two questions for the City Attorney, and one was already answered right now, so we are down to one. Pertaining to Article II, Section G. Chairman Teele: The City draft or the CRA draft? Board Member Sanchez: This is the City's draft. Chairman Teele: That's the CRA draft. Board Member Sanchez: The CRA draft which I am very concerned with, and it goes back to the Section 108 loans. Now, on one agreement the City is held responsible for, and on the other agreement the CRA is held responsible on it. Now, I am not quite sure if at the time that the loans were given out or at the time that the loans were defaulted, who would you say would be responsible for that? Unidentified Speaker: All of them. Ms. Warren: All of them. Board Member Sanchez: Well, somebody is going to end up picking up the tab on this one. Mr. Vilarello: Article 11, 1G reflects a historical basis of how exactly these funds have been... the obligations have been carried forward. The Interlocal Agreement proposed by the administration was accepted to the extent that the CRA is able to funds these debts, that it shall. Board Member Sanchez: Was it the CRA board that approved it? Mr. Vilarello: The CRA board, did... 65 November 16, 1998 Chairman Teele: No. The 108 is a City... The 108 is a City of Miami loan. They were again, on behalf of the CRA. Board Member Sanchez: In the CRA area. Chairman Teele: In the CRA area. Board Member Sanchez: In the CRA area. Chairman Teele: In the CRA area. But, what... Board Member Sanchez: Wait a minute. Hold it. And that's why I am a little concerned. Because, you know, I don't think that it's... the City should be held liable to pay that.. back that loan. Unidentified Speaker: Yes. Board Member Plummer: What? Board Member Sanchez: I don't think the City should be held liable to pay back that loan. Chairman Teele: Joe, Joe. Commissioner, Commissioner, the loans were 108 loans by the City of Miami. Now, you know, let me tell you something. Let's don't, let's don't start doing things here that are inconsistent. Commissioner Plummer And, what else is new? Chairman Teele: We just approved a twenty million dollar ($20,000,000) 108 that the City is responsible for Parrot Jungle, OK. I mean, Joe, what's the...? Board Member Sanchez: Wait. But, if it... Chairman Teele: No, no, no. Board Member Sanchez: But, if it defaults who is held responsible for it? Chairman Teele: The City of Miami. The City of Miami. Commissioner Plummer Yeah. Board Member Sanchez: I mean, I mean. Look, look, this is very important that we don't start... that we don't start and try to change the rules just because we just got here. Now, I am going to be very, very honest about this. The 108 which was approved by the City Commission was for the benefit of the Redevelopment Authority, the redevelopment district, there is no question about that. The City is responsible for the 108. The City has paid the 108 every year since the 108 and this is supposed to be about enhancing the redevelopment area not trying to put and take something out of the area. I mean, if this is going to turn into an ambush... Board Member Sanchez: No. 66 November 16, 1998 %: 4 Chairman Teele: ... then everybody needs to let me know what the deal is here. But, I mean, very honest Joe, the 108, this 108 is coming like out of left field. The City is responsible for the 108 in Over... in the Park West / Overtown area. It has been, it has paid it. It will continue to pay it, OK? Board Member Sanchez: Well, Ms. Warren, doesn't agree with you. Chairman Teele: Well... Board Member Sanchez: Mrs. Warren, could you step... could you come up for a minute? Buddy, we are going to get to you. We'll get to you. Unidentified Speaker: Thank you. Board Member Sanchez: Because you know, if we... If we turn everything over to the CRA and we happen to do this again, and we do put out those loans, you know, the CRA is going to have to be responsible for it. Ms. Warren: There are two loans, debt service loans. One is the restructuring of bond debt for Poinciana, about approximately twenty-five million dollars (25,000,000). The City currently placed its revenue sharing monies to pay that debt service at a tune of three hundred thousand dollars ($300,000) a year until that debt is paid off. Additionally, to refinance a portion of the debt, the CRA, City, took out a 108 loan for five million one hundred thousand dollars ($5,100,000) for Overtown South / Park West and the... When the 108 loan was taken from HUD the City said and guaranteed that TIF (Tax Revenue Funds) monies, the Tax Revenue Funds from the Overtown / Park West area to repay that debt service. What the City is... staff is recommending is that to the extent possible, and subsequently the monies have not been generated and/or the City's CD funds which area City-wide funds have been used to pay the debt. What we have recommended in our agreement is to the extent that the CRA can pay its own debt, that it does, and that the rest of the CD community pay the balance. The.. What Commissioner Teele is correct about is, if, in fact, we do not have security to pay the loan back... In the case of Parrot Jungle the infrastructure development and the original Parrot Jungle are secured against the loan. So, if they defaulted we take the birds first, and then we would be responsible for paying it off. In this case, where the City pledged to pay off the 108 for the CRA was the TIF monies. What we are suggesting is, is that if they have any program income or when income is generated, that they pay their own debt and that the balance of the CD community absorb the balance. We are not saying that the City shouldn't pay it, but we are saying their money should go in first. Chairman Teele: And, Commissioners, just note that this is a major retrenchment from the way the City has treated the redevelopment area. The City has paid this money every year. It was done by the City and the simple fact of the matter is, I thought we were coming here to talk about enhancing. You see, what's going to become very clear is that there is a willingness that if we can't have it our way we are willing to destroy it. And, the fact of the matter is... the fact of the matter is, for the City management to put on the table, in broad open daylight the... that if this Interlocal goes through that what we want to do is, we want the CRA to pay this when, in fact, historically, the City has been paying it. It's very clear. This is not about enhancing the CRA; this is about the destruction of the CRA. And, and I don't necessarily... I wrote the Manager a 67 November 16, 1998 letter and asked him not to yield to the very human temptation that normally comes about when you start talking about restructuring things and they are not under you, that if you don't have control of it, then you know you sort of want it to go away, you want to kill it. But, I have got to tell you, Commissioners, this is... This CRA is the Board of Directors of the CRA baby and if we kill it, we are killing our own child. It may not be the Manager's child if the Interlocal Agreement goes through, but we are killing this thing. And the fact of the matter is, the tax increment district funds have gone from seven hundred thousand dollars ($700,000) to less than one hundred and ninety thousand dollars ($190,000), and a part of that was the discussion we had about the trim line is because every time a government building is sold or purchased it's going the other way. Now, what... If you listen very carefully what they are saying is, to the extent that the CRA generates program income, then we want you to take that money and pay the 108. And so, well that's another way of saying, is even if the CRA knows that here now, and hustles grants and puts in for state grants and I saw Commiss... I saw the Chairman of the Dade Delegation here, Willie Logan and the Governor, of course, has said that he is very interested in supporting the CRA through the legislative process, to the extent that we are able to go out here and hustle money and get the twenty percent administrative cost that every other Community Development Organization takes. They want you to take that money and pay the 108. And, that's just totally inconsistent with the notion of enhancing and providing more focus to the CRA. I mean, I think the policy questions are very clear. The question is, do we really want a CRA that is autonomous I would, I would certainly agree that the City Attorney should be instructed if the Interlocal Agreement by the CRA is advanced, that the City Attorney should be instructed to ensure and to clear all of the issues with the Inspector General and the HUD. But, I can tell you that HUD is talking about, federal HUD is talking about sending down to the CRA one of their top developers from Washington to be on loan down here for a year. So, you know, there is a whole lot of things going on, and that's inconsistent with some of the other statements. But, the fact of the matter is, we know what the issue is, and we know who is trying to make the CRA a dependent agency, to continue it as a dependent agency. And, I think the time has come that we ought to give the CRA five years, five years beginning in October to go forward and redevelop under our, under this Board of Directors and our successors' supervision, and if it doesn't work, then I'll be the first person to say, then, let's go back to doing it the way we did for 25 years. But, I am going to tell you this, it hasn't worked before, and I don't see anything wrong with giving the redevelopment of Overtown a fresh start and a real chance with new focus and new direction and quite frankly, a renewed commitment. Everything that we are talking about, all of this 108 money; all of the seventy-seven million dollars ($77,000,000), you know, it's not about the money being missing. It's about the fact that it costs a lot of money to redevelop. All of those vacant parking lots that, there were people living there. There were hotels living there, residing there. There were restaurants. That's where the money went. There were landowners who were legitimate landowners and there were landowners who were speculators... Unidentified Speaker: Right. Chairman Teele: ... who came in and got the money. And, when you go through and draw the line you are going to see where the money went. The money went for the beginning of the redevelopment. But, that was Maurice Ferre, with all due respect. That was his vision. And as long as he was the Mayor, Overtown and the CRA Redevelopment was a focal point. Once he left, this whole issue stalled. Unidentified Speaker: Yeah. 68 November 16, 1998 Chairman Teele:.. and all we have got now, Joe is the debt. Board Member Sanchez: Mr. Chairman, and we continue to go back to the past. Forget the past. Chairman Teele: Well, let's move to the future. Board Member Sanchez: Let's move to the future. We could talk about Ferre and all he did, and what everybody did, but let's move to the future. Chairman Teele: All right. Board Member Sanchez: The only thing that I ask is, if the CRA takes is, you... the CRA be responsible for their action, and... Chairman Teele: Going forward. Board Member Sanchez: Going forward. Chairman Teele: Not in the past. Board Member Sanchez: Not in the past. Chairman Teele: I agree. Board Member Sanchez: We are not going to bring back the past. Chairman Teele: And the 108 is the past. Well, the... Board Member Sanchez: Well, the... Well, I don't... Well, you know what, I want to make sure. Unidentified Speaker: [inaudible — off speaker] Commissioner Plummer OK, can you...? Board Member Sanchez: Do you want to... point of order or what? Chairman Teele: [Thump, thump, thump] Ladies, and gentlemen, please. Commissioner Sanchez is speaking and he is entitled to respect. Please. Board Member Sanchez: What I don't want to happen is, now into the future as we rebuild this City is that we don't make the same mistakes. Chairman Teele: I agree. Board Member Sanchez: And, in the long run, believe it or not, you pay for it, and I pay for it. We all pay for it. Chairman Teele: All right. 69 November 16, 1998 ."'P Board Member Sanchez: So, that's all that I am asking is, if we are going to do it, whatever decision this legislative body makes is, let's not make the same mistakes we made in the past. Chairman Teele: The Chair recognizes Commissioner Regalado for a motion. Board Member Regalado: Mr. Chairman. Chairman Teele: [Thump, thump, thump] Ladies and gentlemen. Board Member Regalado: Before I bring a motion. I just, Gwen or Dena, why is it, could you tell me in technical words, why is it that we are exposed if we decide that the CRA should take the responsibility, as a board, for the different problems? Ms. Warren: Your exposure is this. If you look at the nicely bound plan, action plan for the CRA, it asks for five million dollars ($5,000,000). One million dollars ($1,000,000) of administrative funds. The Community Development Agency received approximately three million dollars ($3,000,000) worth of administrative funds. The CRA would get a third of it. Second, secondly, he asked me, secondly, your major exposure is that you got an entity that is equivalent to the Department of Community Development which is responsible for policy implementation. One of the things that the Commissioner keeps saying, and again there is some merit to it, is that we are not going to be staff driven, we are going to be consultant driven. You pay a consultant, they leave town. If we want to, you can hold employees accountable. When you start talking about, when you start talking about taking the financing, the check writing capability, the planning capability, the grants administration capability. What the audit clearly said is that you have mismanaged over a said period of time approximately twenty million dollars ($20,000,000). If you do not hire new staff, put in new systems, get computers and become focused on what your responsibilities are, we are going to hold you accountable for those monies and you run the risk of losing your future CD grants. I think that what we should be doing and what we agreed to do was to implement the corrective action to make sure we didn't repeat the problems of the past. One point, one of the things that has come up is the fact that the Commission needs to review its own loan applications. It sounds very romantic, but part of the problem was that we have nine million dollars ($9,000,000) of, of loans that were given out above staff recommendations. We did not recommend them. It did go to the political arena. They were recommended for funding and now they are in default. Secondly, the majority of those loans were in the Commissioner's district. So, I do understand his issues, which is... But the thing that needs to be corrected, staff never recommended those loans. Staff recommended against those loans. What the new policy that the Commission has implemented in its corrected plan, it basically says that there will be a private sector bank driven loan committee, not of staff, but of private sector individuals who will be loan committee and that they will have architects, engineers and actuarial working with them to make a formal structured loan recommendation and that the Commission can adopt them or reject them. But if the Commission overrides their fine private sector banking committee, you will obligate general fund monies if the deal goes bad. What happened in the past, the deals went bad and the Community Development funds, the people who are sitting right here in the audience going "why didn't I get mine", it was not because of administration. It was because of bad policies, no regulations and we are recommending that you one, will acknowledge that this was as a result of bad administrative practices, but that's not what we are recommending. 70 November 16, 1998 tea " Chairman Teele:... what you are talking about. Board Member Regalado: Gwen, if I may? If I may? Ms. Warren: Uh-huh. Board Member Regalado: You know that I spend many hours... Ms. Warren: Yes, sir. Board Member Regalado:... with the auditing team. Ms. Warren: Months, yes. Board Member Regalado: Yes. And, I was telling you that their problem was a lot with the decisions that the City Commission made. Ms. Warren: Absolutely. Board Member Regalado: But also decisions that the administration made. Ms. Warren: Absolutely. Board Member Regalado: And, you are talking of twenty million. Ms. Warren: Uh-huh. Board Member Regalado: Out of those twenty millions, my recollection is that more than ten were given without the City Commission guidance or approval in terms of different small monies that were given to people to fix houses. Up to one was twenty-five thousand dollars ($25.000), wasn't it? Ms. Warren: What you are talking about is our single family loan portfolio... Board Member Regalado: OK. Ms. Warren: ... where we loan monies to individuals in the low income community. Board Member Regalado: Right. Ms. Warren: There were no single loans sited in that office. They were all multi -family. They are all big money ticket items, and they all came before the Commission. The... believe it or not, the individual home buyers, they pay their bills. They paid their bills, I mean, our... Right now, our single family, which is the individual homeowners, generate more income from the City than our big multi -family loan portfolio. Chairman Teele: Mister... Commissioner Regalado. Board Member Regalado: Yeah, I just, just... 71 November 16, 1998 Chairman Teele: We are getting a lot of apples and oranges. All of that discussion about the Community Development has nothing to do with the CRA. The CRA didn't make those loans... Board Member Regalado: Absolutely. Chairman Teele: ... and even though they were in... many of them were within the Redevelopment Authority or district, those loans were made in spite of the CRA. In fact, if much of that money had gone to the CRA on the front end, you would have had some buildings out there perhaps, perhaps, housing buildings that are first class that are livable by the Section VIII and the other people looking for low and moderate housing, but there is no.. Board Member Regalado: Mr. Chairman, but the point I was trying to make at the end was that it's all about responsibility. Ms. Warren: Yes. Board Member Regalado: It's either, it's either in the City Commission or the CRA board which is the City Commission. So, I don't see the problem. Can you tell me the problem, because...? Ms. Warren: The problem is, if, as a CRA board, you are going to administer a third or a fourth of all the City development funds, then you have procurement, you have personnel related issues. You have the public hearing process. You have legal needs. You have planning needs. You have all of those needs. Currently, you have a City that is structured in finance to do that. If what you are saying is because your City as a Commissioner hasn't functioned well in the past, you are now willing to dissemble and sit as the CRA board, I question the logic, but again, it's up to the Commission. But, probably, the most important reason is, is that the CRA with the exception of the five gentlemen sitting at this table do not have the breadth of experience or knowledge of your City Finance Director, Budget Director, Procurement Director and your administrative staff. I say, it's one thing to say make us accountable and it's another thing to sit there and say dismantle government. Either... I don't get it. And, probably, finally I would say this, the five million dollars ($5,000,000) for five years which is what this agreement basically is asking for, is approximately one-fourth of all of the City's CD funds. We have already said, the CRA is one percent of the people and one percent of the population. Why would you give them 25 percent of the money. If in fact we are talking about five million dollars ($5,000,000) for the whole area, that would be a different thing. If we were saying that we are going to give five million dollars ($5,000,000), but nobody in the area that CRA operates in can get any money, then what you are telling me is that, either do not fund any other current agencies who are building houses, who are doing programs because there are more agencies than CRA. Yet, you are telling me not to fund them and/or you are telling me to fund them with other people's money, one or the other. Board Member Plummer: No, that's not true. No, that's not true. Ms. Warren: OK. Chairman Teele: See, Commissioner. Commissioner, Commissioner, Commissioners. Thank you very much, Ms. Warren. 72 November 16, 1998 Board Member Plummer: Well, but wait a minute, I... Ms. Warren: You are welcome. Chairman Teele: No, no, L. Look, I am going to tell you something. Everybody here is listening to this statement and it sounds almost so divisive.. Board Member Plummer: I disagree with her. Chairman Teele: I mean, but it is so wrong. It is absolutely so intellectually wrong, and now she is arguing our policy. She done gone and left her job and got up here into our business... Unidentified Speaker: That's right. Chairman Teele: ... OK. And, I mean, if you all want to allow that, that's fine. I certainly respect her right to speak or anyone else's right to speak, but we need to know what our role is to make policy. And, number one, as in the Bible, you... Unidentified Speaker: The word... Chairman Teele:... you apply your resources to where the need is, and I have no problem, as I have said to Commissioner Gort, as I have said to Commissioner Regalado. I have never said it to Commissioner Plummer and I'll say it to Commissioner Sanchez. If we have to take ninety percent of the money as I did, and I took money out of Overtown in District III as a County Commissioner and I have put it Goulds and Perrine. We took every Community Development dollar in the County after the hurricane and we did it, because that's where the need was. We need to keep in mind where the money comes from, but we must also always balance that against the need. And, the fact of the matter is, what you are listening to is a totally bureaucratic view. Number one, the correct financial... the correct financial statement about the administrative budget being three million is correct. That is the twenty percent that is eligible under the formula for administration. Just like there is a fifteen percent capital for Social Services, there is a twenty percent for administration. If the, if the Community Development Office has a problem in terms of the administrative cap, all they have to do is say, the administrative dollars must not come from Community Development. There is no reason at all to jump and say one million dollars ($1,000,000) means you are taking one of the three million dollars ($3,000,000) of administration. But, that's sort of, you know, we can take it from the tax increment district to some extent. We can take it from the parking revenues, we can take the money from any combination of areas just as we did today as it related to the fifteen thousand dollars ($15,000) for Mt. Zion. Just because there is a three million dollars ($3,000,000) cap on the administration for Community Development which is true, in no way says that the one million dollars ($1,000,000) of Community... of CRA administrative funds must come from the Community Development cap, that's the decision that the Commission must make. What is being said though is the fact that we are going to take twenty percent of the money, and I have got to tell you something. I mean, I have talked about this willingly, we need to be very careful that we don't try to put neighborhood against neighborhood and community against community. I am really disappointed when I hear so-called professional staff stand up and start that kind of dialogue. And, I think the Clerk should make a copy of that record because we don't want to.. This is a fragile community. And, I have heard on radio today, you know, some Haitian leaders saying, "well, the Commission is going to take all of the money out of Little Haiti and put it into 73 November 16, 1998 Overtown." And, we are going to hear the stuff about he's taking from Little Havana and putting it in... And, you know, that's so dangerous. That is so dangerous. The fact of the matter is, and let's put it on the table, that there is fifty million dollars ($50,000,000) funds in the Community Development process, from year one to today's date, that are unaccounted for, that are unobligated. And, what I am saying to you is, of that fifty million dollars ($50,000,000) we need to make the commitment that we are going to spend that money in the redevelopment and in the parks and in the streets and sidewalks of this community, and we are not going to do what is being recommended which is to get everybody's CBO's all agitated to start coming down here demanding money. That we need to take whatever funds available for reprogramming and redevelopment and, basically, put a freeze on them, say they cannot be redeveloped, you know sort of like a Regalado amendment, that they go into a special pot and that these funds will only be available to carryout the legitimate redevelopment purposes that we have identified. Board Member Gort: Mr. Chairman, let me ask you a question. Chairman Teele: Commissioner Gort. Board Member Gort: My understanding is, and I think the biggest difference that I see between the two of us, the two different opinions is one, that we are duplicating the administrators' work. Do we have any problems in the... we would be selecting the projects. We decide where it's going to go. We, as the CRA and the Commission, decide where the funds go and can those funds be done through the existing agency? Board Member Plummer: We have already agreed to it in the budget. Chairman Teele: We have already agreed to that in the budget, but this is the problem. We have been waiting on a planning process for over six months. I mean, we don't even have a planning document. We don't even have a planning instrument. Board Member Gort: OK. Chairman Teele: It's come... Look, Willie, this is very important. What is being represented today is total confusion. There are CRA's all over this state and in most of the CRA's, and in fact, our general counsel is general; counsel for the Association of the CRA's. They, basically, as on Miami Beach do their own planning, their own analysis, their own projects identification and they submit it to the board. That gives a laser like definition in terms of that process. And, you don't have anyone... You are not dependent on somebody else doing this so that you can do that. In other words, the process is designed to focus on the redevelopment in a targeted area and that is the way redevelopment goes on all over this state, the way we are outlining it. Board Member Gort: What I am trying to get to is the logistics and try to get this out the way. My question is this. Can we do... present a proposal saying we are going to do the planning, we are going to do this, this is how much it cost us and what we need. Chairman Teele: Yes. Board Member Gort: The money is given to us and then we do it. We administrate the money. Board Member Plummer: You know we are really arguing about a whole lot of nothing. 74 November 16, 1998 Board Member Gort: Right. Chairman Teele: No, this is very serious. Board Member Plummer: No, no, let me tell you why we are not, all right. Board Member Gort: I think that's one of the ways it can be done. Board Member Plummer: And that is because these five people sitting up here control both sides of the aisles. Chairman Teele: Not true. Board Member Plummer: Not true. OK, why isn't it true? Chairman Teele: Because you don't control the flow of decision making and time lines, and milestones in the City. At least, if you do, you better not admit it to the State's Attorney. That's the Manager and the Mayor's responsibility. The Mayor and the Manager's responsibility under the Charter. And, the fact... Board Member Plummer: Sir, sir, I respect your right to your opinion, I hope you respect mine. This City Commission sets policy. This City Commission awards bids. This City Commission is the watchdog of the taxpayers dollars. Now, people can say we don't do a good job, but that's the name of the game. The same thing provides with the CRA, there is not any money going to be expended with CRA without the board approval. Chairman Teele: Correct. Board Member Plummer: So, in the same way, the only difference is, in the City of Miami the City administration can spend forty-five hundred dollars ($4,500) without our approval, that's what they are entitled to. Anything above that, they have got to come to the City Commission as the CRA will have to come to the CRA Board. Chairman Teele: Yes, sir, but... Board Member Plummer: And, if we don't like any given project or we don't like any expenditure of a fund, then in fact we say, no, and it's just that simple. Chairman Teele: J.L., I... Commissioner Plummer : The only obligation that we are going to be incurring in the inception, as I see it, is salaries and benefits. We have not yet selected an executive director. We have not selected anyone else that will be eventually the CRA staff, all of that is yet to be done and as I see it, the only obligation we are actually incurring is salaries and staff. Everything else has got to come back to this board, everything. Chairman Teele: J.L., that's correct, but... 75 November 16, 1998 Board Member Plummer: So, what's the problem? Chairman Teele: I don't understand, but the problem that I have is this. This is not about expending monies. This is about redeveloping an area. This is about having the focus of this Board of Directors that says "the buck stops right here, nobody else is going to be able to deflect this." This is not about waiting on a study, waiting on a grant. I mean, look, we have got Basic Training. Those people have been waiting, the contractors have been waiting. The Miami Heat said we will donate the construction management and architectural and engineering staff four months ago, but it hasn't come back to the... It has not... a simple document that says a reprogramming and a public hearing pursuant to that has not come back to the City Commission. It takes the City Commission process so long, and the fact of the matter is, there is a classic project where I can show you that the same people building the Miami Arena that caught on fire have committed to finish that project at no cost, those people could have been moved in but we are waiting. The reason we approved a grant to Mount Zion is because the Mount Zion grant expenditure was in December of last year. They are still waiting for their money. We need to stop playing games with the people that live in this area and get on and hold this community accountable in terms of us saying we are going to do it. And, if it doesn't work, I'll be the first guy coming back saying "don't do it." But don't get caught up in the bureaucratic rhetoric of the number of staff people that it takes to do these things. Board Member Plummer: I am not caught up in that at all. Chairman Teele: You know and I know, J.L., that if we enter into an Interlocal Agreement as Bill Lehman recommended with the State of Florida, this is a state agency by the way, the... It is a quasi state agency pursuant to state law. If we enter into an Interlocal Agreement with the Dade County Expressway Authority that has six people that replaced some three hundred... three hundred and some people that were running a program, then we will be able to move this entire financial issue process forward. There is nothing magic about any particular office, it is a question of basically conforming to the rules and the procedures and the laws of the government that you are operating under. And, J.L., I know you have been in the City for so many years, et cetera, but the fact of the matter is, this board does not operate necessarily, or should not operate necessarily pursuant to City, it should operate pursuant to state redevelopment which is far more expansive and far more allowing for the speed and the ability of this board to approve things, and do things that quite frankly the City Commission cannot legally do. Board Member Plummer: Mr. Chairman, the only question simply is, when the question is asked where did the seventy-seven million dollars ($77,000,000) dollars go, we have to answer, and that's all I am saying as to relating to the way we operate. Chairman Teele: Regalado wants to make a motion. Board Member Sanchez: Listen, we are spending... Somebody make a motion. Chairman Teele: Commissioner Regalado wanted to make a motion. Board Member Sanchez: Make a motion. Board Member Regalado: Mr. Chairman, I would like to make a motion that would in ways accommodate what Commissioner Gort has said. I really believe that this is about responsibility. 76 November 16, 1998 I don't agree that if we make a move it would expose the City to the tune that we are going to lose all the federal funds. I do however, think that Commissioner Gort has a valid point in terms of us making the decision and us allocating the funds and using by contracting, or by using other agencies as staff. So, my question is, Mr. Chairman, can we incorporate that...? Chairman Teele: That can be incorporated into motion that by Interlocal Agreement, by separate Interlocal Agreement we can enter into project activities. I mean, for example, I believe that the Office of Dade County Management and services should be utilized to study one particular aspect in the... as it relates the Camillus House and I think we can do that across the board. So, it would be moving... Board Member Plummer:... amend the Interlocal. Chairman Teele: No, no, no. We could do an amendment to the Interlocal for a... Board Member Plummer: At any time. Chairman Teele: At any time for specific projects or specific activities that the City is using services for, that we as a Board of Directors choose to want to use the City for in the spirit of Commissioner Gort's amendment and in the spirit of Commissioner Regalado's motion. Board Member Regalado: The other issue that I have Mr. Chairman is, that we... we cannot as of now determine... Ms. Hill: [inaudible — off microphone] Mr. David Perkins: There is no problem materializing. [phonetic] Chairman Teele: Ladies and gentlemen, would you please take a seat please. Ms. Hill: Oh, are you finished for us to ask you questions? Chairman Teele: No, we will give you an opportunity to ask questions. Ms. Hill: OK, but you are going to put it after you agree on what you are doing? Mr. Perkins: That's what we are waiting on. Ms. Hill: That's what we are waiting on. What I am waiting on is to let him know is outdated material, and redevelopment. What it really needs is it added on it. From its conception it was... Chairman Teele: We just voted, ma'am. Ms. Hill: Oh, that's what I said. Chairman Teele: We just voted to do what you said do. Ms. Hill: OK. 77 November 16, 1998 M Chairman Teele: An audit on it. Ms. Hill: OK. Chairman Teele: You got the script. Ms. Hill: All right. Chairman Teele: Right. Board Member Regalado: Mr. Chairman, are we in this Interlocal Agreement committing five million dollars ($5,000,000)? Chairman Teele: This Interlocal Agreement does not commit one dollar ($1). The Interlocal Agreement says that the plan assumes that its five-year plan will be presented, that the Commission will have to act on an annual element and the time that will come up will be in the June of 1999 process. There is no money... Board Member Gort: It can be part of the process. Chairman Teele: It will be part of the basic Community Development process of the City Commission. And, it basically commits to a annual element and says that we will agree on a project and a five-year plan beginning in October of '99. This says, "Beginning in October of '99, there will be an annual element pursuant to a five-year plan," and what the Commission will have to do is determine whether or not the Commission will support a... what level of the annual element will be supported. It's subject to the availability of funds. But again, I think it's important that we understand the amount of funds that are available within the City. Board Member Regalado: The reason I asked that, Mr. Chairman is that because Ms. Warren said that in fact what we were doing is, we are committing five million dollars ($5,000,000), and I just wanted the record to be clear. Chairman Teele: Well, let me clarify with the attorney. Mr. Attorney, are we committing five million dollars ($5,000,000) under this Interlocal Agreement? Let me ask the CRA attorney first. Mr. Vilarello: Mr. Chairman, you correctly stated the process. It's subject to a five-year plan which will be subject to annual appropriations and the entire process. Board Member Regalado: So, what we are doing here, we are not taking any money away... Board Member Gort: You have to have the board review it. Board Member Regalado:... from any area. Chairman Teele: No, we are not. And, you know it's frustrating that that issue is being circulated and being flaunted. It's so frustrating. Mr. Perkins: Excuse me. Is this a public hearing. 78 November 16, 1998 't 0 Chairman Teele: There will be a public hearing when we get a motion on the floor. You don't know what we are going to be... Until there is... until there is a motion there is nothing to have a public hearing on. Mr. Perkins: Well, could you make a motion? Chairman Teele: I can't. Board Member Regalado: We are in the process of doing that, sir, but we need to ask some questions before we do that. Mr. Charles Cutler: But you are taking care of business without... Mr. Perkins: That's right. That's what we are here for. Chairman Teele: We are going to... Mr. Cutler: You are leaving us out. You are just having us here, just sitting here and they making... Mr. Perkins: The public's been here. Mr. Cutler: ... all of this and you are just running circles around us. Mr. Perkins: That's right. You are messing over the public now. Mr. Cutler: It's like we are not even here. It's like we are not even here. Mr. Perkins: The public... Chairman Teele: [Thump, thump] All right, sir, we will afford you and everyone else the opportunity to speak once there is a motion on the floor, all right. Ms. Hill: What is the difference? Mr. Perkins: You do got to sit down, too. You like jumping in front of people. Chairman Teele: No, ma'am, you will have a seat now. You have been up here four times already Please Ms. Hill, please Ms. Hill just have a seat, please. Please ma'am. Mr. Perkins: Stop jumping in front of people. Ms. Hill: I am not jumping in front of people. Board Member Regalado: Let's... Chairman Teele: Let us now... No, please let us just finish the discus... 79 November 16, 1998 Ms. Hill: I understand you, sir. But this is a critical, critical time.. Chairman Teele:: Please, please. Ms. Hill: ... and we need to get to business and this is why I am here. I do not be here, you haven't seen me here... Chairman Teele: All right. Yeah. Ms. Hill: ... too much because you all don't pay any attention anyway. It takes those auditors to come down here, and it takes the indictments that you get before you understand. Chairman Teele: All right. Ms. Hill: And, I am trying to be here because I am the one that's bringing it down here and... [thump, thump, thump] I object to your plan, that's all I am saying. Chairman Teele: Please, I am sure you do. Please. Ms. Hill: I object because... Chairman Teele: Commissioner, commissioner would you continue your discussion, please? Thank you, Ms. Hill. Mr. Perkins: By the time you all... go home. [inaudible — off microphone] Board Member Regalado: My discussion was that I... I just want to make it on the record and I would like the administration to come up with a... to contradict the City Attorney if that is the case, because Ms. Warren has said the five million dollars ($5,000,000) and I just want to make it, Mr. Chairman, clear on the record that we are here not committing any money, unless and until we go through the process. Because we can say that there is the greater need for Model Cities, for East Little Havana. I can say that there is a need in Flagami and West Little Havana and in the Grove, Allapattah and Wynwood. So, I just, Mr. Chairman, I just want to be very clear on this issue. Are we here committing any dollars with this Interlocal Agreement with Ms. Warren? Chairman Teele: Not at this time. It will... It is an annual element and it is subject to an annual element. You have committed funds in the current year that is contained in the budget which has already been approved, but the Interlocal Agreement in and of itself does not commit to money. It does commit to a five year process beginning in October of 1999, as a part of the budget process. Board Member Regalado: Could you let Ms. Warren show, please? You can say on the record. Mr. Perkins: Hey, you all are... the City bandits. Mr. Cutler: Right, you messing over the prosecution. 80 November 16, 1998 .> Mr. Villarello: Mr. Chairman, what Ms. Warren is pointing out, that the five year plan does identify those five million dollars ($5,000,000). Board Member Gort: Sure. It... Mr. Perkins: You are going to divide the community like that. Chairman Teele: The Interlocal Agreement is... [thump, thump] Board Member Regalado: But we are not committing this. Chairman Teele: Yeah, listen. Ladies and gentlemen, the Interlocal Agreement Commiss... Mister, Mister... Would the CPA Attorney who wrote the agreement... [Inaudible noise — off microphone] Chairman Teele: Would you just have a seat, sir? Board Member Sanchez: Mr. Perkins. Chairman Teele: Mr. Perkins, please have a seat. Mr. Attorney would you clarify? Does... Mr. Cutler:... this down there in the City Chambers... Mr. Perkins: That's right. That's right. Mr. Cutler: ... because this is going to be funded means then you should have this where it can be open to the public. Mr. Perkins: And this is causing problems. Mr. Cutler: If you are not going to do that, then, you should have had the... Board Member Sanchez: Sir, this is open to the public. You are here, aren't you? Sure it is. Mr. Perkins: But how you... No, it's not. With you all making decisions without any input whatsoever. [inaudible — microphone] Board Member Regalado: No, we are going to be talking whatever. [Thump, thump, thump] Mr. Perkins: That's right. Board Member Sanchez: No decision... Mr. Cutler: This is not a public meeting. Board Member Sanchez: No decision has been made yet. 81 November 16, 1998 Mr. Cutler: It's just business as usual. Mr. Perkins: That's right. Chairman Teele: Mr. Attorney. Mr. Perkins: You don't even have a public attorney. Board Member Plummer: Didn't have a what? Chairman Teele: Mr. Attorney. Mr. Cutler: They got an hour to talk about anything. Mr. Perkins: That's right. This is going to... Remember, elections will be coming up again soon. Unidentified Speaker: Yes, yes, sir. Board Member Plummer: You don't have public here. Chairman Teele: Mr. Attorney, Mr. Friedman. Board Member Plummer: Mr. City Attorney, may I ask you a question, sir? I would like to know that anything that this CRA board does by three affirmative votes can amend the Interlocal Agreement. Chairman Teele: Yes. Mr. City Attorney. Mr. Vilarello: Commissioner Plummer, that's correct. Board Member Plummer: Thank you, sir. Chairman Teele: All right. Board Member Plummer: Again, I don't know what we are arguing about. These five members sitting here is the same five members... Board Member Regalado: Mr. Chairman, I move that we adopt the CRA Interlocal Agreement and I move that we also take into account what Commissioner Gort has said which makes sense, and... Chairman Teele: That the agreement will be amended... Board Member Regalado: That the agreement will be amended. Chairman Teele: .... To provide for the opportunity for the City of Miami to provide on a contractual basis any service that may be required. 82 November 16, 1998 Board Member Sanchez: Discussion. Chairman Teele: Is there a second. Board Member Plummer: Uh-huh. Chairman Teele: Second by Commissioner Gort. Discussion. Before we have discussion, can we hear from the public? Board Member Sanchez: Sure. Chairman Teele: All right. Let me just call off the names of the people that signed up first. Mr. James Phillips, Mr. Desmond Eckels, Minister Rasul, Karen Carthwright, Reverend John White, Sandra Stringer and Ms. Francis Arnold, Hershel Haynes, State Representative Willie Logan, and Rosa Green, and Representative James Bush. Are any of you in the audience? Go right ahead, Mr. Perkins while those people come up. Board Member Plummer: Mr. Chairman. Chairman Teele: Yes. Board Member Plummer: Can I give an idea to those outside. At approximately, are we speaking about another hour before we meet as a City Commission? Chairman Teele: I would hope that we can get out... we can move into thirty minutes. Board Member Plummer: All right, I will so inform them. Chairman Teele: But, there is plenty of room in here J.L., they can let... Board Member Plummer: ... for whatever reason they don't want to come in. [inaudible — off microphone] Chairman Teele: [Thump, thump, thump] Ladies and gentlemen, please. This is not, this is not, this is not going to be conducted as a mob rule. This is a Commission meeting. Please have a seat. Mister... Welcome, you are recognized for two minutes, sir. Mr. David Perking: All right. My name is David Perkins of DECOMA, Overtown. I am going to be very honestly and truthfully. I am tired and fed -up with what this City is now doing to the people in that Overtown. All these years you all and talking about what you are going to do, you are sending the.. a KPMG, CRA ,CRP, SEOPW's, CD, CD's, CDBG's, FAIE's, AICP's, OAB's, AFB's that is getting all our money and talking about doing it within that Overtown every since 1963 which I got it right here with me, think I am lying. Each year you are talking about redeveloping and fixing up in that area. The monies that come into the City you all are putting it behind that airport, downtown, (inaudible) Hialeah, Little Havana. Overtown, the peoples are now tired and fed -up with such racial discrimination that are now coming down. If you all want to be... [thump, thump, thump] in the Commissioners Chamber and you want to be before the public, you are going to have to cooperate with the public. Forget about your past 83 November 16, 1998 times and think of helping these people because we want homes, jobs and business put out there [thump, thump, thump], and if you can't put it out there, you must get out yourself. Because the Supreme Court ordered you all to put that money behind the HUD... back in Overtown. You all took that same money and gave it downtown, and Hialeah and Little Havana. You would not put that money in Overtown. Now, we want that money back in Overtown, now. Unidentified Speaker: Right. [APPLAUSE] Mr. Cutler: Welcome. Chairman Teele: Welcome to you, sir and your constituents. Mr. Cutler: I am here to express... Chairman Teele: Your name and address for the record. Mr. Cutler: My name is Charles Cutler, my address is 650 Northwest 10t' Street. I came here to express my regards for you as the Commissioners and as to leaders in our community as far as policy is concerned. Now, there is a concern that I have within myself is that number one, OK, now, money that's been appropriated for the City of Miami. They City of Miami is a very unique community unlike any other community that exits in this country. We are a multi -cultural community, we are multi-lingual and we have to ... we have to show that the real truth of what the democratic process and what the constitution is based on actually is a living word instead of something that's dead and do not exist. Unidentified Speaker: Amen. Mr. Cutler: Now, in lieu of that, now the people in Liberty City, the people in Allapattah and the people of... in Overtown, we have made tremendous sacrifices to show our loyalty to our government and to our political leaders that we trust it with our vote by putting them in power period. And there were promises that was made to us, traditionally, that has been broken, and it's a new day now. There are monies that's available and we are still talking about what happened during Hurricane Andrew and we are talking about redevelopment, what we need to be talking about is development. We need to start developing these communities that are economically dead, there is nothing here. How can, how can you attract any tourists to the communities in Liberty City and Overtown when there is nothing there for a tourist could come there to enjoy? We have, we have talent. We have, we have the same type... We could provide the same type of services that are provided in any other community in this area if given the proper opportunity to develop our communities economically. We need jobs just like everybody else. Now, a lot of the money that has been appropriated for this area and a lot of federal dollars have been reappropriated, the private industry. Now, it's time to forget about reappropriation, it's time to forget about Hurricane Andrew, that that's happened, that's gone, that's dead. Those areas that was affected by Hurricane Andrew they are in much better shape than they were before the hurricane ever came. So, now it's time to get back to the basis. We made the sacrifices, we did without just to make things better just like when it comes down to protecting the constitution. We are the ones -- me and my children are the ones that go out there and protect the very constitution that demands and that protects our individual rights to be able to enjoy the same 84 November 16, 1998 opportunities based on the technology and human development that has been provided as of today. We want to enjoy that for ourselves and for our children also. And, there is a way that we can do that. Unidentified Speaker: Amen. Mr. Cutler: The only thing that I am saying is, we are one people, we are one community. We got to forget about whether or not a person can speak Spanish or whether or not a person can just speak English. We have got to forget about that, we got to forget about whether a person is Black or White. Democracy is not based on that, we are one people. It's one for all and all for one. Chairman Teele: All right. Mr. Cutler: It is time for us to come together as one people and start solving our problems and making this a Mecca of tourism and making it attractive for the whole world to be able to come in, then everybody will be able to enjoy what's called... Chairman Teele: Thank you. Unidentified Speaker: Amen. Mr. Cutler: ... American prosperity. Unidentified Speaker: Amen, amen, amen. [APPLAUSE] Chairman Teele: All right, the gentleman spoke for six minutes. We are going to limit everybody to two minutes, please. Mr. Clerk, would you give them when they have one minute and when they have... their time has expired let's give them two. All right, thank you. Ma'am. Ms. Hill: I am again, Mary Hill. And, I just wanted to come before you again, because I want you all to respect me in my position and my work before you were ever there. These programs, these laws was on the books before any of you all knew about it, and it was put there for my effort, and I want you all to respect me, OK? And, every time I come forward, you all give me two minutes, but I am asking you to understand, a lot of things that you said to this community tonight, as being founder from the White House, federal which is responsible for the... and founder or tied to any revenue sharing that coming down through your HUD as you are saying is still coming from the top from what I found. A lot of it came here because I said bring it here. Your riot money, with no interference, OK? We have a package here that I have never received. I have not received my... first sheet to carry out the responsibilities on this end. The package is 5-393, in case you want to know what it is, look it up. You all are not following the statutory laws and guidelines and when you have this old outdated materials, Economic Development, that has been amended. This is the United States code book, sir. I can tell you as a founder, and I can compare what you are doing here, but what I know is reality on the White House books that are coming back through. You should know something about it because Mr. Pierce and the HUD, they have been dealing with that already, and you are getting cutbacks. And, there's a reason why you are getting those cutbacks. 85 November 16, 1998 Chairman Teele: Yeah, all right, Ms. Hill. Mr. Walter J. Foeman (City Clerk): Time is up. Two minutes. Ms. Hill: And, I want you to know, Economic Development and I'll be finished as soon as I say this. Chairman Teele: All right, all right. Ms. Hill: 42USC, 2981B, Section B, Section 14A, Section 703 the Act, 42USC, 2981B is amended to read as follows. What was amended was your Community Development. You are using outdated material, you are not using the right policy, because every time you all do this you are causing the founder, the regional office and we are on the outside looking in while you all are trying to carrying on this illegal stand. Unidentified Speaker: You are right, you are right. Ms. Hill: We want it corrected... be corrected tonight, and we want to take control and carry out and help these poor people. Your redevelopment is land, not these poor people. Chairman Teele: All right, thank you. Ms. Hill: This program is for poor people and we are going to help ourselves according to statutory laws and guidelines. We are not going to divert and plagiarize , and breech and circumvent the intent at this local event where I am responsible for bringing here. Thank you. Chairman Teele: All right, Ms. Hill, would you give a copy of that to the Clerk so he could make that a part of our proceedings? All right. Thank you. Mr. Manuel Gonzalez-Goenaga: Yes, she attends the Dade County Commission meetings. I have great respect for her. Well, contrary to what everybody has said here. Chairman Teele: Your name and address for the record. Mr. Gonzalez-Goenaga: My name is Manuel "Boom -Boom" Gonzalez-Goenaga, 2469 Southwest 14"' Street. I only came here for one specific reason. People don't want to hear where is the money, and that's the key issue where I am interested. If it is in the bank, let me tell you [thump, thump, thump]... you people tell me in which bank because to steal from a thief is no sin, and I want to steal that money. And, like Robin Hood, give it to the poor people, to the less fortunate people in this town. I hope you follow. I want to know, we have a right to know where is it. I need to know where is the money, and I'll be more than satisfied and if Mr. Plummer tells me by the cent [phonetic], I will not attend any more Commission meetings. Chairman Teele: Thank you, very much. Board Member Plummer: Thank God. Chairman Teele: Thank you, very much, Mr. Goenaga. 86 November 16, 1998 Board Member Plummer: I thought you were looking for the beef. Ms. Yolly Robeson: Hello, good afternoon. My name is Yolly Robeson, I live at 305 Northeast 156`" Street, Miami, Florida. This afternoon, Commissioner... I would like to address Commissioner Teele especially. Commissioner Teele, as you can see, today we're here and I am wearing a button supporting Overtown, your project for Overtown. We're here because we want to be part of this large community. We support your effort to bring the money to Overtown, but one thing that we also need, we are a part of this community. We are not saying that we need you to abandon Overtown and support Little Haiti, you also represent Little Haiti. We simply said that ... to use your own word "the Bible says the money should go where the needs are." And, you very well know that Little Haiti has not even been developed. Mr. Foeman: One minute. Ms. Robeson: You, you want to develop Overtown and I applaud you for that. But, I question your intention, Commissioner Teele, when you said you heard on the Haitian radio that we are saying that we are trying to divide the community by saying you are removing money from Little Haiti. I would ask, respectfully ask you if you do speak Creole because I am very much involved in this community and I know that the word out there, we have been following what's going on in the paper, is that we want you to do what's right. You have been doing what's right for Overtown, we simply want you to do the same thing that you are doing for Overtown, for Liberty City and Little Haiti because we are all part of, we are all your constituents and we... that's all what we need. And, when you are, as an elected official you're sitting here saying that we are trying to divide the community by saying you are removing money from Little Haiti, I think that's going to hurt the community and you should be aware of that. [APPLAUSE] Chairman Teele: Yolly, thank you for comments. Let me tell you what I said. I said to the Commissioners, the colleagues that the last time we met here, the discussion went out that I was taking money, the Mayor in fact said it. Unidentified Speaker: That's true. Chairman Teele: The Mayor said that what you are trying to do is take money from Overtown and send it to Little Haiti. Unidentified Speaker: Right. Chairman Teele: Because in the document is a substantial amount of money that the CRA will be working in Little Haiti to do. And, let me just say this, because it hasn't come up. The CRA staff has not only been the staff for the CRA, it has been the staff for every major development project in this City. The Parrot Jungle issue that is being put together now which is on Watson Island. There was substantial numbers of man-hours committed by the CRA to help structure that need. The matter relating to the redevelopment of the... of the Freedom Tower was a substantial redevelopment activity that was undertaken by them and on and on and Brickell et cetera. The problem has been this, Yolly, so that it's very clear. The Redevelopment staff of the CRA has been one of the best redevelopment staffs in the state. They are very confident, very knowledgeable. I think it's evidenced by the fact that the Manager just made one of the top staff 87 November 16, 1998 people a department director. But those staff have only been available to the Redevelopment Authority and those lawyers on Brickell and down on Biscayne who have complicated deals for their clients... And, I will tell you that I have had not less than three of the top law firms, and I will use Marty Fine as a case in point who has come to me any number of times and said "Art, were it not for the staff of the CRA, we would not be able to do some of the very complicated deals that they are talking about even on Miami Beach." And, so what we are trying to do is make the redevelopment expertise available, not only within the redevelopment area, but we are going to make it, but it's always been available to the Gucci wearing lawyers who can know which office to go to get the help. We are trying now to ensure that every area of this City, including Little Haiti as well as Little Havana, have the access to come into the redevelopment office and get the kinds of high level skilled assistance and, particularly, this budget that we have just approved contains almost five hundred thousand dollars ($500,000) that will be used primarily by the staff, but it is not CRA money, it's program money for the redevelopment of job creation centers in Little Haiti. And, that resource is going to be available throughout this City as it has always been, but the problem is the poor people or the business people that don't have the well, well financed law firms and accounting firms don't know where to go. We are going to try to make these resources available to anyone in a target area so that someone in Allapattah or someone in Wynwood that has a complicated transaction can just come down to the CRA office and work with the planners or the financial people and get something done. And, I appreciate your being here. Ms. Robeson: Can I say one more thing, Commissioner Teele? I appreciate your response, but I think the way to avoid this kind of miscommunication because apparently you don't really know what's going on in the community, and apparently I don't really don't know what's going in your office. But, if you would keep the line of communication open, I am sorry that the two last meetings we scheduled you could not make it, but we are open. We are eager to work with you and give us that chance, that's all we need. If we are going to get together, somehow, we have to work together. And, I will appreciate it next time if you would keep the appointment. Chairman Teele: Thank you... Ms. Robeson: Thank you. Chairman Teele: ... very much. Unidentified Speaker: Amen, amen. [APPLAUSE] Mr. Grady Muhammad: Good afternoon, Mr. Chairman, members of the... honorable members of the Board of Directors of the CRA. I am going to wear two hats today. One is Grady Muhammad representing Senator Daryl Jones who represents Overtown as well. He's in Tallahassee for the election tonight. He wants to speak in favor of what Commissioner Teele is doing as well as the community of Overtown because he represents Overtown and he intends on ensuring when those federal dollars come to the state they will, then, be coming down to the City and they will be coming to two agencies, as well as to the City of Miami. So that from Senator Daryl Jones. He is in support of what you are doing, Commissioner Teele, he's in support of his district, District 40. Now, Grady Muhammad, 5660 Northwest 7t' Avenue, private sector, CD board member. Commissioner Teele, December 5`h, is your answer related to when the Basic Training reprogramming, that will be December 5t . Plus, along that same line, you have the Citadel Building which was a Section 108 loan. You have the Wynwood Free Trade Zone even 88 November 16, 1998 though it's actually in Overtown because I was born in Overtown and 22" d Street used to be Overtown, now all of a sudden it's Wynwood. But, my point is this, that Free Trade Zone, the Citadel Building, these are two private for profit developers that got Section 108 dollars and the gentleman that owns the Citadel Building has not paid one cent since he's got that mortgage about two and a half or three years ago. Dade County has 10,000 square feet of... from the enterprise centers that they are leasing to him, and they are paying rent, and that gentleman has not paid one dime back. But, further more, the Section 108 that's coming up for the... Unidentified Speaker: Parrot Jungle. Mr. Muhammad: ...the five million dollars ($5,000,000), not the Parrot Jungle, the one that was already approved. Those... there is debts, and on December 5tn , there is going to be dollars, reprogram community dollars, development dollars that is going to get reprogrammed about to the tune of about to the tune of one point two four million dollars ($1,240,000). Four hundred and sixty-six thousand of those dollars ($466,000) of those dollars are going to the Overtown CRA, three hundred and sixty-six thousand dollars ($366,000) to the Citadel Building and the restaurant complex. There is no restaurant, of course. And, the other three hundred and three thousand is going to the debt service for the Wynwood Free Trade Zone. What the point and the problem is, these are dollars, Community Development dollars that I sat on the board, thanks to Commissioner Teele. What he... What is done, these dollars are now getting reprogrammed from 1998-99 CD dollars that hasn't been too much been released to go on to pay the debt service to two private for profit developers that have gotten Section 108 dollars. Since they got a dollar, ($1), Section 108 dollars why aren't they paying a 108 loan. They are getting income coming in, so why is it community dollars are paying for private, for profit developers who are not paying the mortgage that the City of Miami, the poor people, those are our dollars. So, poor people are suffering... Mr. Foeman: The three minutes are... Chairman Teele: All right. Mr. Muhammad: ... Mr. Chairman, and board members and I would ask this Commission on December 5th, to rectify that situation. Thank you. Chairman Teele: Thank you, Mr. Muhammad. We look forward to seeing you on December 5t`'. Mr. Gerald Muhammad: Good afternoon, my name is Gerald Muhammad. I am the assistant to Minister Rasul Mohammad of the Nation of Islam. I am also a business owner on Third Avenue and 12d' Street, Gerald's Graphics and Printing. I also manage an apartment complex, Welch Properties, she is here also. And, I am also on the Overtown Advisory Board. What I would just like to say is that, support Arthur Teele's initiative for the redevelopment of the Overtown area, the refunding of CRA, and stop disrespecting this man. I mean, the experience he has with dealing with types of issues, we should support him, and that's why you see so many people supporting him. The Mayor is not going to try... He don't like the way business has been running and none of us like the way business has been running for the last... so many years in the City. I have heard so many stories about how Overtown used to be, but we are interested in how Overtown can be and we are looking forward to the future. So, stop all the stalling. Support the initiative and let's get on with the business at hand of redeveloping our part of downtown. Thank you, may God bless you. [APPLAUSE] 89 November 16, 1998 Mr. Nathaniel Wilcox: Nathaniel Wilcox, Executive Director of PULSE (People United to Lead the Struggle for Equality. I would like to say that... Chairman Teele: [Thump, thump, thump] Ladies and gentlemen. Excuse me, Mr. Wilcox. Ladies and gentlemen for those of you that are standing around talking, please have a seat. There are plenty of seats here and it would help us move much quicker if you would just have a seat. Are there any other speakers other than the ones that are in this line? If not, we will close it after Reverend Dunn speaks. I see... All right, well just get in the line. C.C., we got you. OK, we'll close it after Mr. Reid. All right, thank you, Mr. Wilcox, I apologize. Mr. Wilcox: Sure. I would just like... Chairman Teele: Your address for the record. Mr. Wilcox: 3111 N.W. 135`h Street, that's where I live. I stand in support of the initiative by Commissioner Teele. I would like to ask Commissioner Plummer, is there any areas in your district that look like Overtown? Board Member Plummer: Part of Overtown is in my district, sir. Mr. Wilcox: OK, Sanchez. Board Member Sanchez: Before you go any further, yes. Board Member Plummer: Well, wait a minute, back up because let me give... Mr. Wilcox: Let me finish make my statement. Board Member Plummer: OK, sure. Mr. Wilcox: Regalado. Board Member Regalado: Well, let me tell you something, District IV, is also a poor district [thump, thump, thump] however, because of the way that things have been done, District IV has never gotten a penny on federal dollars. Mr. Wilcox: OK. All right, now, let me make my point. Some of your districts, Commissioner Plummer it runs through Overtown. Board Member Plummer: And, so does Wynwood. Mr. Wilcox: OK, now my point is, none of you should be satisfied with the way Overtown is. The way it looks, the way it has treated and the way it is continually being treated. Now, if you are really concerned about those people who have suffered the most, who have suffered the longest, Overtown is one of the oldest parts of Miami and it has suffered the most. Seem like you should really be working in conjunction, I am not saying you're not, but you should be working a lot harder to put the funds into that area that you represent. And, understanding your area, also, Commissioner Regalado, to really get something done in Overtown. We hear a lot of 90 November 16, 1998 talk. We hear... Overtown has heard promises after promises after promises, and now is the time that we have a Commissioner that is standing up and standing in the gap, is weaving through all the games and the games that's being played with the people of Overtown. We are standing here to say, no longer will we allow the same old games to be played. When the man came to borrow that money for Parrot Jungle, it didn't take him two, three, four, five, six, seven weeks to get that money. Nobody talked about 108 loans and how he was going to pay it back, but when it comes to Black folk you want to talk about when are we going to get our money back. You don't know if the man from the Parrot Jungle will pay you back. Do you, City Attorney? You don't know if that man will pay you all back, but he is getting the money. So, why can't the people of Overtown receive the money and you make sure that the job gets done in the rebuilding of Overtown and stop the games. [APPLAUSE] Chairman Teele: All right, thank you, very much. 1 should think the record should be clear. Miami is, I think the fourth poorest City in the nation. The entire City of Miami is listed as the fourth poorest City in the nation. If I am wrong, Community Development, somebody... Board Member Sanchez: No, you're right. Chairman Teele: ... correct me. And, we need to be very careful. There is a lot of needs all over the City of Miami, a lot of needs. Mister... the president of the Model Cities Homeowners' Association and the largest homeowners' association in the district that I represent. It's a pleasure to have you here. Mr. Herschel L. Hayales: Thank you. My name is Herschel Haynes, and I am Chairman of the ? Park Homeowners' Association. And, the members of my district, most of them largely as myself emanated from Overtown and so, basically, I have done a consensus of different people in that area, and so I am here to speak on their behalf in terms of what I have heard here and there, and in terms of supporting Commissioner Teele and his agenda to address the issues that have long been unaddressed until he was elected and it has come into the house and he is seen it in disarray and he's done research and we applaud him for doing the work that he has on the record been doing. And, contrary to what some people would have you believe such as Channel 10, whom we did not elect, who reprimand him and all of the other et ceteras. We disapprove of that because when he speaks he speaks for Overtown and he speaks for our area and we want him to be heard. We want him to be heard because we all know who live in the City of Miami, we know that Overtown as well as some of the other areas, and I just heard you say, Commissioner Plummer that part of this Overtown area is in your district, then, you know that systematically Overtown as well as some of the other areas have been neglected. We would just simply like you to utilize this time while Commissioner Teele has put the issue before all of us in South Florida and we know there is some wrong done, being done, we simply would ask you- collectively- to come together and work with him and work.... all of you work together to rectify the wrongs that have been perpetuated upon the Overtown area as well as all the other areas, I think. [APPLAUSE] Chairman Teele: Thank you, very much. Ms. Patricia Anderson: My names is Patricia Anderson. Chairman Teele: You have to speak into the mike. 91 November 16, 1998 Ms. Anderson: Oh, OK. My name Patricia Anderson. I consider myself a crusader for the people. I myself have lived in Overtown for some years, and I have relatives all over town. And, what I would like to say, we need a theme for this year. Forget the past, like you said, we want to have accountability. We want from now on use our ears to hear and our, you know, our mouths to speak up and we want to see things. And, so, therefore what I am coming here to say is this, let's not no more have these charades. Let's not be against each other. We are all for one God, we are the mixed tribe. We are not even a race. This is something we came up with. We all came from one God and Noah was the grandfather of everybody here on earth, everybody and he was a Gentile. Now, the mixed tribes include the Cubans, Chinese, the whatever. The Blacks were the Pharaohs, and the Groves are the Christmas trees. We got all these games, Cuban Santa Claus. We got to get all this stuff out of Miami because this is why we got all this stuff coming through here. The Lord is very angry. That's my word right here today. Prevent means to go... pre means before and vent means... Mr. Foeman: One minute. Ms. Anderson: Yeah, I am going to be done in a minute. Pre means before and vent means to open. They have even gone to the Bible and changed words. When the Lord said "Who could prevent me"? he say "who could open me a way." When the devil open a way, he open a way. Let us start speaking simple so all the people can understand, and let us get together and stop pretending because Overtown was the Mecca entertainment and Miami Beach, and we can do it again. We need to use the entertainment these children have. They can get on that street and learn all this foolishness. We need to let them get out there, use that entertainment and draw the money back into Overtown and that's what I am here to say. Use what you got. [APPLAUSE] Chairman Teele: Thank you, very much. Reverend Richard Dunn: Good afternoon, my name is Richard Dunn, I am residing at 1895 Northwest 57th Street. To Commissioner Teele, and to fellow Commissioners, I want to thank you for this forum and I am hoping and praying and trusting that it would not just be a forum of words but one of action. As you know, it's been reiterated, I don't want to be redundant. [Thump, thump, thump] Overtown has been perhaps, one of the most neglected areas in South Florida in the City of Miami. This is a defining moment for this Commission body. You have an opportunity for the first time since it's been brought in such a crystallized way, you have an opportunity to make good on many promises that many politicians and many public officials have made over the years about how they care about all parts of the community. This is a prime opportunity and you have an opportunity, the entire City is watching. All I say is that whatever is due to the Overtown district just as every other representative have their respective districts and their dollars, if the money, and it has been proven, the money is entitled to, Overtown... Mr. Foeman: One minute. Mr. Dunn: ... then, give the money to Overtown and no one else. I trust and pray and believe that you will do what is right. This is a defining moment. There will be no acceptable excuses, none whatsoever. It's been a side show about this and an audit about that. That is not the issue. The issue is, whatever is due Overtown, Overtown has to have it and we have to have it right now. [APPLAUSE] Chairman Teele: Thank you, Reverend Dunn. Ma'am welcome. 92 November 16, 1998 Ms. Jacqueline Kleinhans: Thank you, Mr. Teele. My name is Jacqueline Antoinette Kleinhans, and I am here representing my family. My three daughters and my four grandsons. And, this is what I have to say. Board Member Plummer: Mr. Chairman, could we ask that the back doors be closed. Ms. Kleinhans: But... Board Member Plummer: That there not be any... Ms. Kleinhans: I am sorry. Board Member Plummer: That there not be any second meetings and if you are not enough interested to come in and sit down, to be out into the Arena , the courtesy to the speaker, please. Close the other door please. Thank you. Ms. Kleinhans: I represent also the schools, everybody. Everybody. This is a poem that... I am Jamaican, and I have been here 26 years. This is what I brought from Jamaica with me. It goes like this. Back to Africa by Louise Bennett. "Back to Africa" , Ms. Mattie, you know what yah dab say. You have to come from somewhere first before you go back dey. Me know say that your great, great, great grandpa was African, but Mattie, don't you great, great, great grandma was a English, man. Then, your great grandmother father by your father side was a Jew and your grandpa by your mother side was Frenchy Pale Vous. As according to that, all them blue eyed White American who for great grampa must go back ah England. What a devil of a bump and bore, rig gig and palampam if the world were to start to go back which part them great grandpappa come from. Go a foreign, seek your fortune, but no tell nobody say, you deh go for seek your homeland for a ride dey so you dey. Aye yah aye. Thank you. [APPLAUSE] Chairman Teele: This is definite... Thank you, very much. Board Member Sanchez: It was beautiful. Chairman Teele: It's beautiful. It's definitely a public hearing. Board Member Sanchez: That was beautiful. Chairman Teele: Definitely a public hearing. Mr. Reed, welcome. Mr. C. C. Reed: Good evening. Buenos Noches, Bon Soir and Hola taxpayers and all of you elected Commissioners and the employees of this beautiful city of Miami -Dade County, Florida, which surrounds our community of Over -town and our new Washington Heights. We are now, here, to demand action right now in this very second. Please, stop laughing and playing games on us, please. Our future is right now. Reality right now speaks for itself. As for our past, enough is enough. We are sick and very, very tired of these games you have been playing and talk is very cheap. Our mouth would say anything. Action speaks louder than words. In the past, government has done too much to destroy and eliminate our future which should have been and never ever happened as it is this, right this very second. God loves everybody and with God anything is possible. Hello, my name is C.C. Reid, located at 1601 Northwest First Court, 93 November 16, 1998 number 201, Miami, Florida 33136. Our website is WWW.CCReid.com. And, our email is donation @ CCReid. com, and our 24-hour pager number is area code 305-241-7614. Thank you for listening. If you want a copy of this speech, you are welcome to it, because it will go on my website this evening. [APPLAUSE] Chairman Teele: Thank you, Mr. Reed. Mr. Marc Villain: Good afternoon, my name is Mark Villain, I am a Haitian -American. I am volunteering in a lot of community projects in the area of Little Haiti. I am here today because of some of this issue at hand for the area of Overtown. And, I am here to support this project for Overtown, and that this is a community that really needs the funds because of past neglect. But at the same breath, we also wanted to take this opportunity to show the Commission that this Haitian community a little bit further north of Overtown has also many problems. And, as we know, I don't need to actually educate anyone here, the past neglect for that area has been just as tremendous as Overtown. We are talking about a population of about fifty thousand people, according to the City of Miami's own Planning Department document, it's an area that is in need of a lot of things. Considering... when we talk about not only infrastructure projects and sewers and the water lines and all of that, but also more immediate things that are designed to empower the community. It's in, on your own documents. And, what we question is the approach the Community Development in the City of Miami because of.. it doesn't happen in a vacuum. You don't just do cookie cutter development. If you are going to look at areas that are underdeveloped and disenfranchised you have to look at it as a strategy for whole City of Miami. And, so that's what... That's the reason I am here, is to tell the Commission that the whole approach to Community Development and areas that have been disenfranchised in the past should be revamped, and there needs to be a little bit more documentation of the needs. And, you should be aware exactly of what the needs are, and not just rely on a couple of folks that.. that are designed to give you information about the community. There is a lot of viable projects that are getting recognition nationally that are happening in Little Haiti and as a public servant it's your job to definitely be aware of these projects and for you to support them. Thank you. [APPLAUSE] Unidentified Speaker: Thank you, Mark. Chairman Teele: Thank you very much, Mark. [APPLAUSE] Board Member Plummer: And, one thing we don't want to forget as we go from Overtown to Little Haiti, there is a thing in the center called Wynwood.... Chairman Teele: Wynwood. Board Member Plummer: And, that's also part of my district. And, it's also with big needs, very big needs. Chairman Teele: The public hearing is closed. Is there further discussion? Board Member Sanchez: I have... Chairman Teele: Commissioner Sanchez. This is on the Interlocal Agreement. 94 November 16, 1998 Board Member Sanchez: Mr. Chairman, one of the concerns that I had basically and there has been a lot of concerns that had been brought out. One is the staffing for the CRA to get it up and running was one, of course. There was other concerns pertaining to the making sure that of course Wynwood and Little Haiti will also get a piece of the pie. And, of course, one question that I do have is, you know we are all chasing that forty-eight million dollars ($48,000,000) that's out there. I just want to know how and what strategy, long term planning do we have or short term planning do we have to obtain that money, the forty-eight. Chairman Teele: Well, the Commission voted on, and during the budget hearing and instructed the audit... the management and Budget Office to begin and to supervise the... and hold them responsible for the orderly close-out of the grants beginning in year one. As you know, we are in year twenty-four and we have had no close-out of any year based upon the HUD, the federal HUD discussions. And, the Manager... the management was instructed, I think during the budget hearing, so I think maybe tomorrow we should ask in the context of that from the management office where they are on that and when can we expect the first year to be closed out. These are funds that were allocated over the last twenty-two years, and the forty-eight million dollars ($48,000,000) does not include the year twenty-three or year twenty-four, and in five months, that will be year twenty-five with an additional twelve to fifteen million dollars ($15,000,000). So, I think, and I am going to recommend after having some hearings in the Economic Development Committee. I am going to strongly recommend to the Commission that we adopt the Regalado model. And, that is, that we create an account for all of the previous year funds and instruct the management that they cannot expend or reprogram any of those dollars and that we basically have a policy discussion about that. My strongest recommendation based upon what the gentleman just talked about is the need is that we really should prioritize City- wide and redevelopment district infrastructure particularly roads, streets, sidewalks as well as parks. But, of course, that's something that we would have to agree on. But, I can tell you this, there are roads in Commissioner Gort's district, and there may be some others. And, I know there are roads in Little Haiti that are not passable by a... by two cars approaching it at the same time. I mean, literally like you know going back to Nicaragua, Managua or somewhere. And, I am sure there are various... And, we should not have a City that doesn't have that, and I don't think we should talk about a bond issue, we should use those funds to ensure that everyone has the basic quality of life and there should be a minimum quality of life of the kinds of municipal services that we provide. And, I really do think that every citizen in this town should have passable roads, sidewalks, and the kind of infrastructure and drainage in some of the other areas where you know, you probably have areas in your district that, when it rains, the whole area is underground. Look, underwater. This is not sexy. There is nobody going to come down here and pat us on the back if we make that decision at that time because everybody is going to have a project for the money. But, I'll tell you this, it's not fair in my judgment and you asked the question. My rec... strongest recommendation is that we basically take the majority of the funds, make it available for a infrastructure wide program to be administered by the Public Works and Parks Department and that we take some of the funds and apply it to the Historical needed areas for needed projects including, but not limited to the Overtown Redevelopment Plan. One of the points that I want to make, Commissioner Sanchez that you just made. We don't need staff until we have a plan. The problem with the CRA in the past is we had staff and no money to implement a plan. And, so I have taken... Board Member Plummer: That's right. 95 November 16, 1998 Chairman Teele: I have taken a very, very conscious decision. We don't need staff until after we implement a staff do we need lawyers or architects or engineers or planners or, or... I mean, you know, the decisions on the plan that we approve... Board Member Sanchez: Will it...? Chairman Teele: No Board Member Sanchez: I yield. Chairman Teele: I yield back to you. Board Member Sanchez: Well, that was one of my concerns. I mean, if you are going to have this, you have to have planners and architects and attorneys and you got to have... I mean, it's like a restaurant that's going to open. I mean, the quicker you staff, the quicker you can service the people. But that's -- I could relate to that concern. I have another concern. Board Member Regalado: But, Joe, the motion includes what Commissioner Gort said, that we should demand... Chairman Teele: [inaudible — off microphone] Board Member Regalado: ... and contract the City for what... Chairman Teele: .For various services. Board Member Regalado: ... been doing. Board Member Sanchez: OK. The other concern that I had was brought out that -- it was that we... Board Member Regalado: Excuse me, if I may, just to clarify? Exactly what we are doing now with the Parks bond money that we are contracting Public Works with Parks bond money. So Public Works does the work in the different parks. So, we could do the same. Board Member Sanchez: OK. The other one was, the jeopardizing of the HUD funds which if it were to happen there will be a possibility of jeopardizing the funds from HUD which is a great concern for every Commissioner up here, because basically we benefit from the CDBG (Community Development Block Grant) money that comes into our districts for the following which are the charitable events and the... a lot of the elderly citizen stuff. So, that's a concern that I have. But, of course, we are making a big decision here, it's going to be a tough decision and you have to think about all those concerns. Chairman Teele: Mister... Commissioner Sanchez, I think we should instruct the City Attorney and Special Counsel to immediately work with HUD to clear any issues that they may have, including with the Inspector General. I have had a number a conversations at the Assistant Secretary level and they are not aware of, they are beginning now to pull up information, but they are not aware of any issues. In fact, they have committed to give us a federal HUD employee on a detailed basis for one year to assist us, so. 96 November 16, 1998 Board Member Regalado: If I might say, Mr. Chairman, also Commissioner Sanchez. I know that your area, it's of great importance in terms of social services, so is Willy's and even, all the areas, but myself too. But, thanks to the administration and to Congresswoman Eleana Roz- Leiten and Carrie Meek the level of money that we can use from federal funds for social services have been raised from fifteen to twenty percent. Board Member Plummer: Not yet. Board Member Regalado: And, this is something... Yeah, it was, it was. Chairman Teele: It was effective FY'99. Board Member Regalado: No, no, it was tagged to a Bill signed by the President. Board Member Plummer: I hope it is, but... Board Member Regalado: Yes, it is. And, we have to thank the administration for their efforts in lobbying. I know that the City Manager did a lot of lobbying to get that done. Chairman Teele: If we can, can we get the Manager and the Attorney to give us a memorandum on that so that we make sure that... Board Member Plummer: Yeah, I sure would like to know... Chairman Teele: ...the correct information. Because, it's in understanding it was tied to a budget Bill which means it may be for one year, and may not be across the board. But, we need to look into that. I understood that it passed, but I thought it was for one year, it may be for the entire authorization. Board Member Plummer: Mr. Chairman, we are talking about two -A, B and C. I assume that on all three of those issues, the wording should be added. Chairman Teele: Two -A, B, and C has passed. We are on... We are on item number three. Board Member Plummer: Then, you must have voted on that while I was gone. Chairman Teele: Well, no. Board Member Regalado: No. Chairman Teele: No, we haven't voted on anything while you were gone. Mr. Clerk. Mr. Foeman: Yes. Chairman Teele: We had a roll call vote, didn't we? Mr. Foeman: Yes, we passed two -A, B, and C. 97 November 16, 1998 In Chairman Teele: By roll call vote. Board Member Plummer: All right Well, I was going to make sure that all of the A, B and C did, in fact, contain the wording "as funds are available" so that nobody walks away from here with a misunderstanding. Chairman Teele: Motion by Commissioner Plummer that all language relating to this contain the clause "as funds are available." It's moved by Commissioner Plummer... Board Member Regalado: Second. Chairman Teele: ... seconded by Commissioner Regalado. Is there discussion? All those in favor say "aye." The Commission (Collectively): Aye. Chairman Teele: Those opposed have the same right. Unanimously adopted. SEOPW/CRA MOTION NO. 98-34 A MOTION MODIFYING PRIOR VOTES ON SEOPW/CRA RESOLUTIONS 98-32 (CRA BUDGET, PROGRAM AND ACTIVITIES) AND 98-33 ($15,000 GRANT TO MT. ZION CDC FROM CRA FUNDS) TO INCLUDE LANGUAGE "AS FUNDS ARE AVAILABLE." Upon being seconded by Board Member Regalado, the resolutions and motion were passed and adopted by the following vote: AYES: Board Member Wifredo Gort Board Member Tomas Regalado Board Member Joe Sanchez Board Member J. L. Plummer, Jr. Chairman Arthur E. Teele, Jr. NAYS: None. ABSENT: None. Chairman Teele: On the item by Commissioner Regalado, on item three. Would you call the roll please, Mr. Clerk? 98 November 16, 1998 t The following motion and resolution was introduced by Board Member Regalado, who moved their adoption: SEOPW/CRA MOTION NO. 98-35 OMNI/CRA MOTION NO. 98-9 A MOTION TO APPROVE THE CRA DRAFT OF "INTERLOCAL COOPERATION AGREEMENT" BETWEEN THE COMMUNITY REDEVELOPMENT AGENCY AND THE CITY OF MIAMI; FURTHER PROVIDING THAT THE AGREEMENT WILL BE AWARDED TO PROVIDE FOR CITY CONTRACTUAL SERVICES FOR SERVICES FOR SEPARATE CRA ACTIVITIES. Upon being seconded by Board Member Gort, the motion and resolution was passed and adopted by the following vote: AYES: Board Member Wifredo Gort Board Member Tomas Regalado Board Member Joe Sanchez Board Member J. L. Plummer, Jr. Chairman Arthur E. Teele, Jr. NAYS: None. ABSENT: None. 9. DEFER CONSIDERATION OF ITEM PROPOSING ORDINANCE PROVIDING FULL FUNDING FOR COMMUNITY REDEVELOPMENT AGENCY FOR NEXT FIVE YEARS. Chairman Teele: Now, I know that the former Speaker of the House is here. I just want you to know that he is here on item number thirteen. I am sorry, on item number thirteen-C, as I understand it and that is a special item. As it relates to item number four, and five, these are concept approvals to forward to the City Commission for review. Let me just do this, let's defer item five for the time being. 10. APPROVE IN CONCEPT PROPOSED ORDINANCE ESTABLISHING POLICY AND PROGRAM REVIEW COMMITTEE - FOR PURPOSE OF ADVISING CITY COMMISSION ON COMMUNITY REDEVELOPMENT AND FEDERAL HOUSING FUNDING ACTIVITIES. Chairman Teele: and let's move forward with the basic issue which I think will address the HUD concerns which is the creation of an independent policy and program committee for the purpose of advising the Commission on all redevelopment fund activities as well as federal housing fund. This ordinance will be taken up for first reading and it is in effect a... an 99 November 16, 1998 independent committee. The Mayor would make two appointments, including the Chairman which must come from the banking committee. Many of the concerns that the staff has outlined today would come directly under the purview of that review and in fact, the organization would be totally independent of the Commission and the Mayor to be able to provide for a full review. Is there concern about that or discussion about that? Moved by Commissioner Regalado, seconded by the Chair. All those in favor say "aye." The Commission (Collectively): Aye. Chairman Teele: All those opposed? We will defer item five. The following motion was introduced by Board Member Regalado, who moved its adoption: SEOPW/CRA MOTION NO. 98-36 A MOTION TO APPROVE IN CONCEPT PROPOSED ORDINANCE ESTABLISHING A POLICY AND PROGRAM COMMITTEE FOR THE PURPOSE OF ADVISING THE CITY COMMISSION ON THE ACTIVITIES OF THE COMMUNITY REDEVELOPMENT AGENCY AND FEDERAL HOUSING FUNDS; FURTHER FORWARDING SAID PROPOSED ORDINANCE TO THE CITY COMMISSION FOR ITS REVIEW AND ACTION REGARDING SAME. Upon being seconded by Chairman Teele, the motion was passed and adopted by the following vote: AYES: Board Member Wifredo Gort Board Member Tomas Regalado Board Member Joe Sanchez Board Member J. L. Plummer, Jr. Chairman Arthur E. Teele, Jr. NAYS: None. ABSENT: None. 11. APPROVE GRANTING SAWYERS WALK LTD AND MC SQUARE PARTNERS, INC. AN EXTENSION UNTIL FEBRUARY 5, 1999 TO COMMIT TO PROCEED WITH UNIFIED DEVELOPMENT PLAN. Chairman Teele: On item six Commissioner Plummer. Board Member Plummer: Sir. Chairman Teele: This is an item that you have always had a lot of concern in. With your permission I would like to take up item six followed by item thirteen-C, and I hope that the... I am sorry, eleven and twelve. Eleven and thirteen-C. I don't know how the numbering came up. Is there a recommendation being forwarded by the City Attorney and the Manager. I am sorry, 100 November 16, 1998 the CRA (Community Redevelopment Agency) Attorney and the Manager... and the Executive Director regarding this, Sawyers Walk Limited. This is not Poinciana... Board Member Plummer: No. Chairman Teele: This is the tree parcels that are adjacent to it. Personally, I don't necessarily agree with the extension but I support the Executive Director and the lawyer's recommendation. And, Mr. Attorney, Madam Executive Director, would you just put on the record what this is, please? Board Member Plummer: When was this due by the first time? Chairman Teele: Well, you can't say the first time. The first time this thing was awarded was when? When is the original award? Ms. Elizabeth McBride (Co -Special Counsel/Community Redevelopment Agency): 1991. Chairman Teele: Probably about eight years ago, 1991. Board Member Plummer: How many extension have been granted? Mr. Robert Friedman (Legal Counsel/Community Redevelopment Agency): Just... Well, no extensions have been granted, just nothing has happened there since the award was made. Chairman Teele: Commissioner, when I came in as the Chairman, the first thing I did was instructed the City Attorney... the Special Counsel to sent them a letter giving them a timetable. Board Member Plummer: What have we got to lose if we grant it. Chairman Teele: We have nothing to lose. Board Member Plummer: I move it. Board Member Gort: A hundred thousand dollars ($100,000). [off microphone —inaudible] Chairman Teele: Huh? Board Member Gort: I think to win, one hundred thousand dollars ($100,000) [off microphone — inaudible] Chairman Teele: We have nothing to lose. Board Member Plummer: We have nothing to lose and everything to gain. Board Member Sanchez: Second. Chairman Teele: Moved by Commissioner Plummer. Board Member Gort: Under discussion. 101 November 16, 1998 Chairman Teele: This is an item related to Sawyer Walk, and again, it shows. I mean, I want to be with the Commission but it just shows exactly how the system works. And, no discussion. All those in favor say "aye." Board Member Plummer: Whoa, whoa, whoa, now. If that was a slap at me. Chairman Teele: No, J.L., but this is the point. This is a big decision. Board Member Plummer: I understand that. Chairman Teele: This is a three, three square blocks of property. Board Member Plummer: I understand that also. Chairman Teele: I believe that the developer, the new development team that is trying to do this is sincere. I believe they have a good concept. I believe they are upstanding people, but again, there is no discussion, no debate when it's kind of field. Board Member Plummer: Did I not ask the question, not of you, but of the... Chairman Teele: But, J.L., I mean, this is something... Board Member Plummer: What have we got to lose if we got everything to gain. And, the answer... Now, if that was not the correct answer, somebody tell me so. Chairman Teele: J.L., I started out by saying I don't think we should be granting these extensions. I am not opposed to it. I would oppose if the staff were not in support of it. But, I got to tell you something, you know, this is one of those things that went out in 1991, very little has happened on it. Board Member Plummer: Art, Art, you know, you sound like Claude Pepper. Chairman Teele: He was a great man. Now, that's an honor. Board Member Plummer: That he was. Chairman Teele: That's a compliment. Board Member Plummer: But, Claude Pepper used to say that some of my friends over here think this way, and some over here think the other way, and I am always with my friends. Unidentified Speaker: Exactly. Board Member Plummer: Now, you know, are you opposed to it? Are you in favor of it? Chairman Teele: J.L., the only thing I say is, I want the people who don't have lawyers and lobbyists and all that treated the same way as these people are. And, that's my whole issue, J.L., is the way this whole CRA process works. Is that the people who are unrepresented have to... 102 November 16, 1998 Board Member Plummer: Art. Chairman Teele: You see the hoop we have jumped through here. Board Member Plummer: I would rather have you sit here and tell me that you feel that there is... Chairman Teele: I am going to vote for it based upon the Manager... based upon the Executive Director's recommendation and the City Attorney's recommendation, but I have personal reservations about it. Board Member Gort: Question. Are we obligated to renew this contract or to extent it. Mr. Friedman: No, you are not obligated to... Board Member Gort: Do we have any other proposals that can come into this... Mr. Friedman: Not that I know of. Chairman Teele: What are we... Board Member Regalado: It's one hundred thousand dollars ($100,000). Chairman Teele: J.L. Plummer's question is in my judgment the most profound question. And, that is, what do we have to lose? Board Member Regalado: To lose. Board Member Plummer: To lose. Nothing. Chairman Teele: The answer is nothing. Board Member Regalado: Nothing. Chairman Teele: The problem though is this. Board Member Plummer: The other answer is, what have we got to gain is one hundred thousand dollars ($100,000) and a damn good project. Board Member Regalado: If they don't perform. Chairman Teele: If they don't perform. Board Member Plummer: If they don't perform. Chairman Teele: But we don't want their one hundred thousand. We just want an assurance, J.L, because to date for nine years, I mean for... since 1991, there has been no earnest money, no escrow account, no nothing, just a lot of talk. 103 November 16, 1998 k. N Board Member Plummer: All right, so we are talking about another three months. Chairman Teele: And, I agree. The motion has been made by Commissioner Plummer. Board Member Plummer: Fish or cut bait. Chairman Teele: All those in favor say "aye." The Commission (Collectively): Aye. Chairman Teele: Those opposed? It's unanimous. The following resolutions were introduced by Board Member Plummer, who moved their adoption: SEOPW/CRA RESOLUTION NO. 98-37 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY GRANTING SAWYERS WALK LTD., AND MC SQUARED PARTNERS INC., AN EXTENSION OF TIME UNTIL FEBRUARY 5, 1999 TO COMMIT TO PROCEED IN ACCORDANCE WITH A DEVELOPMENT PLAN, INCLUDING A PHASING PLAN AND PROJECT SCHEDULE AS APPROVED BY THE BOARD OF DIRECTORS, FOR THE UNIFIED DEVELOPMENT OF BLOCKS 45, 55, AND 56 WITH SUCH EXTENSION BEING SUBJECT TO AND CONTINGENT UPON THE CONDITIONS PROVIDED HEREIN; PROVIDING FOR AN EFFECTIVE DATE, AND FOR SUCH OTHER PURPOSES. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Board Member Sanchez, the resolution was passed and adopted by the following vote: AYES: Board Member Wifredo Gort Board Member Tomas Regalado Board Member Joe Sanchez Board Member J. L. Plummer, Jr. Chairman Arthur E. Teele, Jr. NAYS: None. ABSENT: None. 104 November 16, 1998 t yw 12. ACCEPT CITY ATTORNEY'S OPINION REGARDING PARKING REVENUES GENERATED BY OFF STREET PARKING FROM COMMUNITY REDEVELOPMENT AGENCY -OWNED LOTS ADJACENT TO MIAMI ARENA. Chairman Teele: We have the City Attorney's opinion on the parking revenues and we accept that. Is there objection to it? If not, it will be just to accept it and made a part of the CAR... CRA (Community Redevelopment Agency) record. 13. AUTHORIZE SPECIAL COUNSEL FOR COMMUNITY REDEVELOPMENT AGENCY TO PREPARE REPORT REGARDING TRANSFER OF PROPERTY KNOWN AS MIAMI ARENA LAND FROM COMMUNITY REDEVELOPMENT AGENCY TO CITY. Chairman Teele: We have a motion asking that the special counsel look into the transfer of properties, the Arena land, and to file a report studying the value of the land at the time of the transfer. Board Member Plummer: Move it. Chairman Teele: Moved by Commissioner Plummer. Seconded by the Chair. Is there objection? All those in favor say "aye." The Commission (Collectively): Aye. The following resolution was introduced by Board Member Plummer, who moved its adoption: SEOPW/CRA RESOLUTION NO. 98-38 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING AND REQUESTING SPECIAL COUNSEL FOR THE COMMUNITY REDEVELOPMENT AGENCY TO COMPLETE A SPECIAL REPORT REGARDING THE TRANSFER OF THE PROPERTY KNOWN AS MIAMI ARENA LAND FROM THE COMMUNITY REDEVELOPMENT AGENCY TO THE CITY OF MIAMI, INCLUDING THE STUDY OF LAND VALUE OF THE PROPERTY AT THE TIME OF TRANSFER AND APPROPRIATE TITLE SEARCHES OF THE PROPERTY; PROVIDING AN EFFECTIVE DATE, AND FOR SUCH OTHER PURPOSES. 105 November 16, 1998 (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Chairman Teele, the resolution was passed and adopted by the following vote: AYES: Board Member Wifredo Gort Board Member Tomas Regalado Board Member Joe Sanchez Board Member J. L. Plummer, Jr. Chairman Arthur E. Teele, Jr. NAYS: None. ABSENT: None. 14. DEFER CONSIDERATION OF HISTORICAL FINDINGS OF COMMUNITY REDEVELOPMENT AGENCY OVER LAST FIVE YEARS. Chairman Teele: Let's defer with the discussion on the historic funding, unless there is objection. 15. CONTINUED DISCUSSION FROM ITEM 113 — REQUEST CITY MANAGER TO EXTEND CITY AUDIT OF COMMUNITY REDEVELOPMENT AGENCY FROM 1982 TO PRESENT — SEE LABEL 2. Chairman Teele: We have already done Item number ten by dealing with the audit from 1982 instead of 1988. 16. ENDORSE / FORWARD TO CITY COMMISSION JOINT APPLICATION WITH FORT LAUDERDALE AND WEST PALM BEACH FOR GRANT FOR TRANSIT GREENWAY AND TRI-CITY CORRIDOR STUDY. Board Member Plummer: I move item eleven. Chairman Teele: Item eleven is moved by Commissioner Plummer. Seconded by the Chair. And, this is a matter that really also needs to go to the Commission meeting today. What is the deadline? Representative Gustafson, Mr. Speaker would you just come and identify yourself please, for the record. And, I hope Public Works has been conferred with on this. Would you...? Mr. Tom Gustafson: I have sent it to Terry Garcia and somehow from there is got on the agenda. The deadline is today at five, and... Board Member Plummer: Guess what? Board Member Gort: I think we have passed it. Board Member Plummer: Huh. 106 November 16, 1998 Mr. Gustafson: ... for one of a multitude of different grants. I am here to speak about Transit Greenways as a broad concept and how to get funding from the DOT (Department of Transportation). Clare Vickory is here to tell you that she went ahead and filed. The rail, realization... rationalization... Chairman Teele: Which one is that? Mr. Gustafson: That's the second one. And, that was filed... Miami was only mentioned as a maybe in the future, and... Chairman Teele: In other words, you all went forward with Palm Beach and Ft. Lauderdale... Mr. Gustafson: Palm Beach, Lake Park. Ft. Lauderdale as a maybe in the future. Riviera Beach signed on as did Lakes Parks. So, three cities signed on to our... mentioned as for the future, and it is worth a discussion at your meeting. Chairman Teele: Well, well, hold it. Let... Well, but let's just discuss it later on. Tom... Mr. Gustafson: Yes. Chairman Teele: .. Mr. Speaker, let me just say this. What we are talking about are some people up north, some of our northern neighbors and Palm Beach and Broward County have gotten creative and this is a special pot of money that is only available for cities, pretty much from the U.S. Department of Transportation to study whether or not there could be some type of rail service along the FEC (Florida East Coast) that would stop literally right in front of the Arena which would be right in the heart of the CRA (Community Redevelopment Agency), and obviously anything that helps us to bring people down is going to be positive and I would see no reason why the Commission or the City would be opposed to it. And, so, this is basically to provide support because... Unidentified Speaker: Yes. Chairman Teele: ... if it comes into the CRA we would basically be working with the City of Miami to basically try to develop the plan. Mr. Chairman, does this have anything to do with Tri-rail? Chairman Teele: No, sir. Nothing at all. Board Member Plummer: Nothing at all. Chairman Teele: The Tri-rail operates on the... Ms. Clare Vickory: That's bullet train. Sorry, hi, this is Clare Vickory. Tom Gustafson again is dealing with the Greenways application. Let me speak very specifically to the other project because you will notice there is two projects mentioned in item eleven. The second project is like it says, a Tri-County project. Ft. Lauderdale, West Palm Beach and several other cities in those two counties are currently applicants to look at the possibility of rationalizing or consolidating some of the corridors in Southeast Florida. That would be an in consistency with 107 November 16, 1998 something you may be familiar with which is called the 1995 Real Rationalization Study. Tri- rail is very important in the process. They are involved in a workshop coming next week to discuss this issue. We filed the application in order to get it in under the deadline. Tri-rail is a participant in this project. Board Member Plummer: Is or is not? Ms. Vickory: It is. They are a participant in the work shop Board Member Plummer: And that's the reason I was asking because of the TV that I saw the other night which they are losing five million dollars ($5,000,000), annually. And, the lady who has taken over the marketing or the whip has said that if she can't that around in five years, she's going to vote to abolish it. So, I am just wondering how two and two is now making four. Chairman Teele: Well, I can tell you one thing. Tri-rail does not come anywhere near the Miami Arena without a link, of several links. Board Member Plummer: One. Chairman Teele: Look what we need to be really focused on is the redevelopment and a much bigger view of the redevelopment of Park West. Imagine a rail that came out of Palm Beach through Ft. Lauderdale that went right to the Arena and maybe even stops at the site of the new Arena. Imagine what that would do in terms of the ridership, I mean, not the ridership but the patrons for this Arena and for what it could do for the redevelopment district. Right now the Tri- rail stops at the airport, and nobody is going to get on a train in... Board Member Plummer: Hialeah, Hialeah. Chairman Teele: ... Palm Beach. No, it stops at... They have moved the Hialeah stop now to the airport. It's right in front of the old Sheraton, beautiful building, beautiful facility, and... But nobody is... Those are called linked trips. We have the potential to really start a serious redevelopment area in the Park West side of this district by really trying to attract people to come down for Miami Heat games, for the other activities and hopefully, if there is going to be a baseball, maybe even a baseball facility. So, I think it's worth the study. It doesn't cost us... Would you be clear? This doesn't cost us anything. Is that fair? Ms. Vickory: The submittal of the grant is done, so the answer is yes. It's submitted, you are a potential partner, so you haven't had to pay anything for. Board Member Plummer: The price is right. Chairman Teele: Moved by Commissioner Plummer. Unidentified Speaker: The price is right. Chairman Teele: Is there a second? Board Member Gort: Second. My understanding... 108 November 16, 1998 Chairman Teele: Second by Commissioner Gort. Board Member Gort: My understanding this would do. The Tri-rail would have an extension that will come directly here instead of going to the airport for those... Chairman Teele: No, this would... The way it would probably work, this is basically studying the FEC. Board Member Gort: Right. Chairman Teele: And the FEC is the rail line that is right in front of this Arena... Board Member Gort: Right. Chairman Teele: ... right now. Ms. Vickory: I am going to leave a copy of the Letter of Intent which describes exactly what the study will entail and... Board Member Gort: Thank you. Ms. Vickory: ... that will be helpful, I think. Chairman Teele: But this needs to also be forwarded to the City Commission for approval because this is one of those areas where it's going to be in the Redevelopment Authority, but we still need to have the City Commission and we'll wound up having to go before the MPO, I am sure. Ms. Vickory: Yes, sir. Chairman Teele: Mr. Speaker, did you want to speak on the other issue very briefly? Mr. Gustafson: Yes. On the second issue, what Clare has been able to do is to get you into the mix, but you are going to have to file an actual application or joint venture with the other cities by February. So, there is going to be requirements of you if you want to stay in the game. They are going to short list all the Letters of Intent in three weeks, and if this letter makes it to the short list, the top 50 in the nation, then the second round of application process, and then you are either in or you are out and that's a decision you.. Chairman Teele: How much money are we talking about Tom, one million."? Mr. Gustafson: No one knows because they have not defined the application process. All we know is, it's more involved than a four page Letter of Intent. On the second point, which is Transit Greenways, Transit Greenways is a redevelopment construct, something that I have been working on for about two years. This is a summary document. This is a summary document which I would like to give and hopefully get it circulated. But, it basically talks to the legal issues associated with using Department of Transportation dollars for redevelopment. You do it by constructing what is called a Greenway transit system or Transit Greenway system in that you are moving people on foot, by bike and by very small transit. As a linkage to big transit such as 109 November 16, 1998 the trains we are talking about. This is a executive summary of one that was just completed in the town of Lake Park in West Palm Beach. What I am asking this Commission to consider is to undergo the whole process either as part of the CRA effort or as part of the City effort of how do conceptualize what it is you want within the confines of a Transit Greenway so that you can get the DOT to pay for substantial amounts of your infrastructure associated with redevelopment. Chairman Teele: Right. And, that's already been moved. And, the context of this, Commissioner Plummer, is that we are going to be working through the DDA (Downtown Development Authority) as well as it relates to Park West. Commissioner, one of the things in that concept is it really legitimizes, if you will, as a sphere of influence over Park West. And, one of the things that every landowner has been talking about is the need for open space, some type of vista, some type of mall perhaps that would connect the arenas. And, we see this as a way of maybe finding federal DOT money to do something like this. And, I spoke to Mayor of New Orleans, Mark Mariel who has got about seventy million dollars ($70,000,000) of this money. Although, remember that's where the new Speaker is from, the Chairman of the Appropriations Committee so you figure out how Mark got the money. But he is very supportive of us in this effort. Board Member Plummer: I move item eleven. Board Member Gort: It's been moved and seconded. All those in favor say "aye." The Commission (Collectively): Aye. Chairman Teele: Commissioner Gort, did you want to say something on that? Board Member Gort: Mainly when we... the Major Use Permit for the Arena, one of the things that we requested that we find parking spaces within five and ten minutes away. So, this will come very handy for that. Board Member Plummer: I have already sent them a memo telling them they are not getting to see a Certificate of Occupancy without identifying as they were mandated to do. The following resolution was introduced by Board Member Plummer, who moved its adoption: SEOPW/CRA RESOLUTION NO. 98-39 A RESOLUTION OF THE BOARD OF DIRECTORS ENCOURAGING THE CITY COMMISSION TO SUPPORT THE JOINT APPLICATION OF THE CITIES OF FORT LAUDERDALE AND WEST PALM BEACH TO AUTHORIZE THE SUBMITTAL OF A LETTER OF INTENT WITH THE FLORIDA EAST COAST TRANSIT FEASIBILITY ORGANIZATION FOR A GRANT TO PLAN AND IMPLEMENT TRANSIT FOR THE TRANSIT GREENWAY AND TRI-CITY CORRIDOR STUDY; PROVIDING AN EFFECTIVE DATE; AND FOR SUCH OTHER PURPOSES. (Note for the Record: Chairman Teele stated that SEOPW/CRA R-98-39 needs to be forwarded to the City Commission.) 110 November 16, 1998 Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Board Member Gort, the resolution was passed and adopted by the following vote: AYES: Board Member Wifredo Gort Board Member Tomas Regalado Board Member Joe Sanchez Board Member J. L. Plummer, Jr. Chairman Arthur E. Teele, Jr. NAYS: None. ABSENT: None. 17. DESIGNATE VICE-CHAIRMAN GORT TO STUDY PROPOSED EXPANSION OF COMMUNITY REDEVELOPMENT AGENCY BOARD OF DIRECTORS TO SEVEN MEMBERS - FURTHER REQUESTING REPORT WITHIN 180 DAYS. (B). AUTHORIZE PREPARATION OF INTERLOCAL COOPERATION AGREEMENT WITH MIAMI DADE COUNTY FOR PERFORMING SERVICES, I.E., AUDIT AND MANAGEMENT / MAPPING / PLANNING /TECHNICAL REVIEW. (B) AUTHORIZE PREPARATION OF COOPERATION AGREEMENTS WITH DADE COMMUNITY FOUNDATION / GREATER MIAMI NEIGHBORHOODS / MIAMI CAPITAL, INC / MIAMI-DADE TRANSPORTATION AND EXPRESSWAY AUTHORITY FOR SERVICES FOR COMMUNITY REDEVELOPMENT AGENCY. (C) AUTHORIZE PREPARATION OF LEASE AGREEMENT WITH STATE OF FLORIDA DEPARTMENT OF TRANSPORTATION. Board Member Plummer: Mr. Chairman for the... to expedite on items twelve, thirteen -A, thirteen-B, and C, I will make you a motion at this time since they are either to prepare or negotiate which has to come back to this board. Chairman Teele: Second the motion. Board Member Plummer: I move 13A, B, and C. Chairman Teele: Is there objection? All those in favor? Would you add to 13B, the Miami - Dade Transportation Expressway Authority as well? Board Member Plummer: I have no problem. Chairman Teele: All those in favor say "aye." The Commission (Collectively): Aye. Chairman Teele: Those opposed? ill November 16, 1998 The following motions and resolutions were introduced by Board Member Plummer, who moved their adoption: SEOPW/CRA MOTION NO. 98-40 A MOTION REQUESTING VICE-CHAIRMAN WIFREDO GORT TO STUDY PROPOSED EXPANSION OF COMMUNITY REDEVELOPMENT AGENCIES' BOARD OF DIRECTORS FROM FIVE TO SEVEN MEMBERS AND REPORT BACK IN 180 DAYS WITH A RECOMMENDATION. SEOPW/CRA RESOLUTION NO. 98-40.1 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING THE EXECUTIVE DIRECTOR WITH THE ASSISTANCE OF COUNSEL TO THE COMMUNITY REDEVELOPMENT AGENCY TO PREPARE AN INTERLOCAL COOPERATION AGREEMENT WITH MIAMI-DADE COUNTY FOR MIAMI-DADE COUNTY' S PERFORMANCE OF CERTAIN SERVICES AS AUDIT AND MANAGEMENT, GIS MAPPING, PLANNING, TECHNICAL REVIEW AND ASSISTANCE AS NEEDED BY THE COMMUNITY REDEVELOPMENT AGENCY; PROVIDING FOR AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. SEOPW/CRA RESOLUTION NO. 98-40.2 0 OMNI/CRA RESOLUTION NO. 98-11 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING HE EXECUTIVE DIRECTOR WITH THE ASSISTANCE OF COUNSEL TO THE COMMUNITY REDEVELOPMENT AGENCY TO PREPARE CERTAIN COOPERATION AGREEMENTS WIT DADE COMMUNITY FOUNDATION, GREATER MIAMI NEIGHBORHOODS, INC. AND MIAMI CAPITAL, INC. FOR THE PROVISION OF SERVICES AS PROVIDED HEREIN TO THE COMMUNITY REDEVELOPMENT AGENCY, AND TO PREPARE THE NECESSARY LEASE AGREEMENT WITH THE STATE OF FLORIDA DEPARTMENT OF TRANSPORTATION; PROVIDING FOR AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. SEOPW/CRA MOTION NO. 98-40.3 A MOTION AUTHORIZING THE EXECUTIVE DIRECTOR OF THE CRA TO PREPARE THE NECESSARY LEASE AGREEMENT WITH STATE OF FLORIDA DEPARTMENT OF TRANSPORTATION. 112 November 16, 1998 Upon being seconded by Chairman Teele, the motions and resolutions were passed and adopted by the following vote: AYES: Board Member Wifredo Gort Board Member Tomas Regalado Board Member Joe Sanchez Board Member J. L. Plummer, Jr. Chairman Arthur E. Teele, Jr. NAYS: None. ABSENT: None. 18. AUTHORIZE CONSULTANT CONTRACT WITH RETIRED CONGRESSMAN WILLIAM LEHMAN FOR SERVICES TO BE PERFORMED — FOR COMMUNITY REDEVELOPMENT AGENCY RELATED TO TRANSPORTATION. Chairman Teele: Mr. Chairman, I am very... Mister... Commissioners, I am very pleased that Congressman William Lehman, and so you can begin to see now where some of these energies are coming from, has agreed to come on board the staff of the CRA (Community Redevelopment Agency) and this would authorize the Executive Director to negotiate an agreement with him. I can tell you that we are hung up between ten dollars ($10) and one dollar ($1) a year. And... Board Member Plummer: Pay him five. Commissioner Gort: I move to hire him at one dollar ($1) a year. Board Member Regalado: OK. Board Member Plummer: Compromise, five dollars ($5). Chairman Teele: Moved by Commissioner Regalado, seconded by Commissioner Gort. On discussion. However Congressman Lehman does require the assistance of one person that helps him move around and that amount should not exceed five or six thousand dollars ($6,000) a year, you know when he is in the office and that kind of thing, as an expense. So, it would be a salary plus an expense to support his physical impairment as he moved around. Board Member Sanchez: What's his salary going to be? Chairman Teele: His salary is going to be either one dollar ($1), five dollars ($5) or ten dollars ($10) a year. Board Member Plummer: I move item fourteen to negotiate. Chairman Teele: Is there objection? All those in favor of fourteen say "aye." The Commission (Collectively): Aye. 113 November 16, 1998 Chairman Teele: All those opposed? The following resolutions were introduced by Board Member Regalado, who moved their adoption: SEOPW/CRA RESOLUTION NO. 98-41 EME OMNI/CRA RESOLUTION NO. 98-12 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING THE EXECUTIVE DIRECTOR AND COUNSEL TOT HE COMMUNITY REDEVELOPMENT AGENCY TO NEGOTIATE AND PREPARE A CONSULTANT CONTRACT OR AN EMPLOYEE SUPPORT AGREEMENT WITH RETIRED CONGRESSMAN WILLIAM LEHMAN FOR SERVICES TO BE PERFORMED FOR THE COMMUNITY REDEVELOPMENT AGENCY RELATED TO TRANSPORTATION; PROVIDING FOR AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. Upon being seconded by Board Member Gort, the resolutions were passed and adopted by the following vote: AYES: Board Member Wifredo Gort Board Member Tomas Regalado Board Member Joe Sanchez Board Member J. L. Plummer, Jr. Chairman Arthur E. Teele, Jr. NAYS: None. ABSENT: None. 114 November 16, 1998 19. (A) DIRECT MIAMI CAPITAL INC TO PREPARE FINANCING PLAN FOR BUSINESSES IN HISTORIC NORTHWEST THIRD AVENUE CORRIDOR BY DECEMBER 15, 1998 - FURTHER AUTHORIZE EXECUTIVE DIRECTOR TO NEGOTIATE FEE FOR PROVISION OF SAID SERVICE. (B) ACCEPT COMMUNITY REDEVELOPMENT AGENCY'S LEGAL COUNSEL'S OPINION ON CRA ACTIVITIES OUTSIDE BOUNDARIES OF REDEVELOPMENT DISTRICTS. Board Member Plummer: I move item sixteen to prepare. I move item seventeen to accept the counsel's opinion. Chairman Teele: Moved. Motion on sixteen and seventeen. All those in favor say "aye." The Commission (Collectively): Aye. Mr. Walter J. Foeman (City Clerk): I need a seconder. Chairman Teele: Seconder. Board Member Regalado: Second. Chairman Teele: By Commissioner Regalado. All those opposed? The following resolution and motion were introduced by Board Member Plummer, who moved its adoption: SEOPW/CRA RESOLUTION NO. 98-42 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING AND DIRECTING MIAMI CAPITAL, INC., TO PREPARE AN INNOVATIVE FINANCING PLAN FOR BUSINESSES IN THE HISTORIC NORTHWEST THIRD AVENUE CORRIDOR NO LATER THAN DECEMBER 15, 1998; AUTHORIZING AND DIRECTING THE EXECUTIVE DIRECTOR TO NEGOTIATE A FEE ARRANGEMENT FOR A PROVISION OF SUCH FINANCIAL PLAN; PROVIDING FOR AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. SEOPW/CRA MOTION NO. 98-42.1 A MOTION ACCEPTING THE CRA' S LEGAL COUNSEL'S OPINION ON CRA ACTIVITIES OUTSIDE THE BOUNDARIES OF THE REDEVELOPMENT DISTRICT. 115 November 16, 1998 M Upon being seconded by Board Member Regalado, the resolution and motion were passed and adopted by the following vote: AYES: Board Member Wifredo Gort Board Member Tomas Regalado Board Member Joe Sanchez Board Member J. L. Plummer, Jr. Chairman Arthur E. Teele, Jr. NAYS: None. ABSENT: None. 20. AUTHORIZE CLOSING OF FISCAL YEAR ENDING SEPTEMBER 30, 1998. Board Member Plummer: I move eighteen, the closing of the fiscal year ending September 30, '98. Board Member Sanchez: Second. Chairman Teele: Madam Executive Director were there any matters that needed to get the board approval at this time? Board Member Plummer: Mr. Chairman, you do have one other item which I did skip over, item fifteen. Chairman Teele: Madam Executive Director, do you have any items? Ms. Hilda Tej era (Executive Director/Community Redevelopment Agency): I am sorry, sir... Chairman Teele: Do you have any items that you need board approval on? Ms. Tejera: No, sir. Chairman Teele: All right, then moved by Commissioner Gort on those items and seconded by Commissioner Regalado. All those in favor say "aye." The Commission (Collectively): Aye. Chairman Teele: Opposed? 116 November 16, 1998 ,. _0 The following motion was introduced by Board Member Gort, who moved its adoption: SEOPW/CRA MOTION NO. 98-43 A MOTION AUTHORIZING THE CLOSING OF THE CRA BUDGET FOR FISCAL YEAR ENDING SEPTEMBER 30, 1998. Upon being seconded by Board Member Regalado, the motion was passed and adopted by the following vote: AYES: Board Member Wifredo Gort Board Member Tomas Regalado Board Member Joe Sanchez Board Member J. L. Plummer, Jr. Chairman Arthur E. Teele, Jr. NAYS: None. ABSENT: None. 21. APPROVE 1999 STATE LEGISLATIVE INITIATIVE ITEMS ON BEHALF OF COMMUNITY REDEVELOPMENT AGENCY NAMELY PILOT SALES TAX /FRONT PORCH INITIATIVE / MISCELLANEOUS FUNDING FOR CRA /SALES TAX ABATEMENT FOR BUILDING AND CONSTRUCTION MATERIALS. Chairman Teele: Now, on item fifteen. Item fifteen. Commissioner Plummer, on item fifteen. Item fifteen is essentially the use... requesting the state to grant the CRA (Community Redevelopment Agency) in the Dade County and throughout the State of Florida five pilot sales tax designations. And, in effect, all of these monies now go to the State of Florida. The state has generally not granted any government, local government their right to use their money. We would be asking the State of Florida under this legislative agenda to grant two the CRA of Miami and probably three or four others around the state, the right to use sales taxes increments that are collected within the CRA boundaries for the CRA. Board Member Plummer: Mr. Chairman, that's a very good idea, but let me tell you one better than that that we tried years ago and got killed on. And, that is that any project that is built in the CRA prior... area with the CRA backing the sales tax, not be applied to building and construction materials. You would be amazed the amount of money that contractors have to pay which are your tax dollars and mine in sales tax for construction materials. Chairman Teele: Right. Board Member Plummer: So, if you want to really make an impact include that in this request to the legislature that they not charge sales tax in the CRA for construction that is projects by the CRA. 117 November 16, 1998 is Soµ Chairman Teele: Amending, adding that the previous sales tax abatement for building materials within the boundary also be made a part of the legislative agenda. The reference to the front porch initiative. As you know, Jeb Bush has announced that that will be his major focus and we will be seeking legislation to designate the Miami CRA as a front porch initiative and that would be the three items going forward as well as any miscellaneous funds that anybody can shake down. Is there a motion on the legislative agenda? Board Member Plummer: What about miscellaneous funding? Chairman Teele: Basically, just asking the legislature to give us... Board Member Plummer: Oh, that's fine. I move it. Chairman Teele: Moved by Commissioner Plummer, seconded by Commissioner Regalado. Objections, discussions? All those in favor say "aye." The Commission (Collectively): Aye. Chairman Teele: Those opposed? The following motion was introduced by Board Member Plummer, who moved its adoption: SEOPW/CRA MOTION NO. 98-44 A MOTION APPROVING THE 1999 STATE LEGISLATIVE INITIATIVE ITEMS ON BEHALF OF THE CRA, NAMELY, PILOT SALES TAX, FRONT PORCH INITIATIVE PROPOSED BY GOVERNOR ELECT JEB BUSH, MISCELLANEOUS FUNDING FOR CRA, AND SALES TAX ABATEMENT FOR BUILDING AND CONSTRUCTION MATERIALS WITHIN THE BOUNDARIES OF THE CRA. Upon being seconded by Board Member Regalado, the motion was passed and adopted by the following vote: AYES: Board Member Wifredo Gort Board Member Tomas Regalado Board Member Joe Sanchez Board Member J. L. Plummer, Jr. Chairman Arthur E. Teele, Jr. NAYS: None. ABSENT: None. Chairman Teele: Now, Mr. Chairman, of the Commission, what is your preference on the agenda? You want to move to the other room? 118 November 16, 1998 Board Member Plummer: Mr. Chairman, I think we should. There are people out there. The Clerk has indicated to me that it will take him approximately ten minutes to set-up out there. We will be taking a ten minute recess. THERE BEING NO FURTHER BUSINESS T COME BEFORE THE CITY COMMISSION, THE MEETING WAS ADJOURNED AT 5:45 P.M. ATTEST; Walter J. Foeman CITY CLERK Maria J. Argudin ASSISTANT CITY CLERK ARTHUR E. TEELE, JR. CHAIRMAN 119 November 16, 1998