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HomeMy WebLinkAboutSEOPW OMNI CRA 2000-09-25 MinutesCITY OF MIAMI m CRA MEETING MINUTES OF MEETING HELD ON SEPTEMBER 25, 2000 PREPARED BY THE OFFICE OF THE CITY CLERK/CITY HALL Walter J. Foeman/City Clerk INDEX MINUTES OF CRA MEETING SEPTEMBER 25, 2000 ITEM NO. SUBJECT LEGISLATION 1. CRA DIRECTOR OF STRATEGIC PLANNING TO MEET 9/25/00 WITH CITY STAFF AND MR. LOUIS VERNELL OF PARK DISCUSSION WEST STUDIOS TO ADDRESS MR. VERNELL'S 2-4 REQUEST FOR SUPPORT. 2. (A) MANAGER AND CRA ADMINISTRATION TO 9/25/00 COMPLETE NECESSARY PROCESS IN ORDER FOR CRA DISCUSSION TO ACCESS COMMUNITY DEVELOPMENT BLOCK 5-6 GRANT (CDBG) FUNDS TO PAY CONTRACTORS BILLS. (B) DISCUSSION ON STATUS OF CRA INTERLOCAL AGREEMENT (See #10). 3. CRA ADMINISTRATION TO SCHEDULE ON NEXT CRA 9/25/00 AGENDA PROCUREMENT OF GENERAL LIABILITY DISCUSSION INSURANCE FOR CRA BOARD OFFICERS AND ITS 7 DIRECTORS. 4. APPROVE AMENDMENT TO FISCAL YEAR 2000 9/25/00 BUDGET FOR SEOPW/CRA. SEOPW/CRA R-00-89 8-11 5. APPROVE AMENDMENT TO FISCAL YEAR 2000 9/25/00 BUDGET FOR OMNUCRA. OMNI/CRA R-00-45 12 6. APPROVE FISCAL YEAR 2001 BUDGET FOR 9/25/00 SEOPW/CRA — DISCUSS PROBLEMS WITH CRA SEOPW/CRA R-00-90 RECORDS. 13-26 7. APPROVE FISCAL YEAR 2001 BUDGET FOR OMNUCRA. 9/25/00 OMNI/CRA R-00-46 27 8. APPROVE CAPITAL PROJECTS AND PROGRAMS FOR 9/25/00 SEOPW/CRA. SEOPW/CRA R-00-91 28 9. (A) APPROVE CAPITAL PROJECTS AND PROGRAMS 9/25/00 FOR OMNI/CRA. OMNI/CRA R-00-47 (B) CRA ADMINISTRATION TO PROVIDE A HISTORY 29-32 OF TAX INCREMENT FUNDING FOR OMNI AND SEOPW/CRA, ANTICIPATED FUNDING FOR NEXT YEAR AND FIVE-YEAR BUDGETARY PROJECTION. 10. APPROVE COMMUNITY DEVELOPMENT BLOCK 9/25/00 GRANT INTERLOCAL AGREEMENT (See #2). SEOPW/CRA R-00-92 OMNI/CRA R-00-48 33-35 11. DISCUSSION: PERFORMING ARTS CENTER.. 9/25/00 DISCUSSION 36 12. UPDATE ON INTERLOCAL COOPERATIVE 9/25/00 AGREEMENT. DISCUSSION 37 13. DEFER CONSIDERATION OF REQUEST TO EXPAND 9/25/00 FOOTPRINT OF LYRIC THEATER AND PARKING LOT. DISCUSSION 38-40 14. STATUS ON PROCUREMENT OF SERVICES PROVIDED 9/25/00 BY GREATER MIAMI SERVICE CORE — COMMENTS DISCUSSION REGARDING SIDEWALKS, SWALE CLEANUP, ETC. 41 15. (A) AUTHORIZE CRA TO ISSUE REQUEST FOR 9/25/00 QUALIFICATIONS FOR DESIGN AND CONSTRUCTION SEOPW/CRA R-00-93 OF OVERTOWN TECHNOLOGY CENTER. 42-50 (B) CRA ADMINISTRATION TO ESTABLISH SPECIAL COMMITTEE FOR PURPOSE OF EDUCATING PUBLIC REGARDING TECHNOLOGY; SUGGESTING THAT BOARD MEMBER BE DELEGATED TO HEAD THIS INITIATIVE IN CONJUNCTION WITH SCHOOL BOARD — NEED TO ADVERTISE. (C) PROBLEMS RELATED TO HOMELESS PERSONS. 16. (A) AUTHORIZE EXECUTIVE DIRECTOR OF CRA TO 9/25/00 WORK WITH VICE CHAIRMAN OF CRA BOARD TO SEOPW/CRA R-00-94 IMMEDIATELY NEGOTIATE INTERIM AGREEMENT SEOPW/CRA R-00-95 51-55 FOR PARKING TO BE PROVIDED FOR 300 TO 500 CONSTRUCTION WORKERS FOR PROPOSED NETWORK ACCESS POINT (NAP) FACILITY. (B) AUTHORIZE CRA TO ISSUE A REQUEST FOR PROPOSALS FOR PROVISION OF PARKING MANAGEMENT SERVICES FOR PARKING LOTS OWNED BY CRA. 17. AUTHORIZE CRA TO REQUEST THAT CITY PROVIDE 9/25/00 GRANT, $375,000, FOR PURPOSE OF FACILITATING SEOPW/CRA R-00-96 DEVELOPMENT OF TECHNOLOGY CENTER OF THE 56-59 AMERICAS. 18. APPROVE REQUEST BY CRA TO CITY TO CLOSE 9/25/00 N.W. 2" COURT TO DEVELOP PROPOSED JUBILEE SEOPW/CRA R-00-97 60-65 ELDERLY HOUSING PROJECT IN AREA BOUNDED BY N.W. 14TH STREET ON THE SOUTH, N.W. 2ND AVENUE ON THE EAST, AND N.W. 3' AVENUE ON THE WEST. 19. TABLE DISCUSSION ON REPORT REGARDING 9/25/00 BOUNDARY CHANGES FOR CRA (See #21). TABLED 66 20. AUTHORIZE OWNER OF ARENA SQUARE APARTMENTS TO MEET WITH CRA STAFF TO DEVELOP PLAN FOR $900,000 GRANT TO ARENA SQUARE APARTMENTS BASED ON FIVE TO ONE LEVERAGE RATIO TO PAY FOR IMPROVEMENTS TO ARENA SQUARE APARTMENTS CONSISTENT WITH THIRD AVENUE BUSINESS CORRIDOR AND OVERTOWN CHARRETTE. 21. AUTHORIZING THE CRA TO PROCEED WITH BOUNDARY CHANGES (See #19). 22. DESIGNATE DIPAK PAREKH AS EXECUTIVE DIRECTOR OF CRA; EXECUTIVE DIRECTOR TO COME BACK WITH PROPOSED ORGANIZATIONAL CHART WHICH INCLUDES RICHARD JUDY AS DIRECTOR OF STRATEGIC PLANNING AND ROBERT TYLER AS DIRECTOR OF OPERATIONS, ADMINISTRATION AND DEVELOPMENT. 9/25/00 SEOPW/CRA R-00-98 67-71 9/25/00 SEOPW/CRA R-00-99 OMNI/CRA R-00-49 72-73 9/25/00 SEOPW/CRA R-00-100 OMNI/CRA R-00-50 74-76 MINUTES OF THE REGULAR BOARD OF DIRECTORS MEETING OF THE COMMUNITY REDEVELOPMENT AGENCY FOR SOUTHEAST OVERTOWN/PARK WEST AND OMNI DISTRICTS On the 251h day of September 2000, the Board of Directors of the Community Redevelopment Agency for the Southeast Over-town/Park West and Omni Districts of the City of Miami met at the Old Miami Arena, VIP Room, 701 Arena Boulevard, Miami, Florida. The meeting was called to order at 5:14 p.m. by Chairman Arthur E. Teele, Jr., with the following Board Members found to be present: Board Member Tomas Regalado Board Member Joe Sanchez Vice Chairman Johnny L. Winton Chairman Arthur E. Teele, Jr. ABSENT: Board Member Wifredo Gort 1 CRA 9/25/00 ALSO PRESENT: Ronda Vangates, Chief of Staff, Mayor's Office, City of Miami Carlos A. Gimenez, City Manager, City of Miami Robert Nachlinger, Assistant City Manager, City of Miami Linda Haskins, Assistant City Manager, City of Miami Dena Bianchino, Assistant City Manager, City of Miami Genaro "Chip" Iglesias, Chief of Staff, City Manager's Office, City of Miami Marva Wiley, Special Assistant to the City Manager, City of Miami Alejandro Vilarello, City Attorney, City of Miami Ilene Temchin, Assistant City Attorney, City of Miami Walter J. Foeman, City Clerk, City of Miami Sylvia Lowman, Assistant City Clerk, City of Miami Ana Rojas, Chief Deputy City Clerk, City of Miami Gwendolyn C. Warren, Director, Community Development, City of Miami Albert Ruder, Director, Parks & Recreation, City of Miami Dipak Parekh, Executive Director, CRA Richard Judy, Special Projects Coordinator, CRA Robert Tyler, Director, Operations, Administration & Development, CRA Nathalie Legagneur, Legal Counsel, CRA William Bloom, Legal Counsel, CRA Hilda Tejera, Administrator, CRA Hammond Noriega, Overtown Advisory Board Liaison/Project Coordinator, CRA Brenda Lee, Special Aide to Commissioner Arthur Teele, CRA Chelsa Arscott, Executive Assistant, CRA Note for the Record: An invocation was delivered by Chairman Teele, followed by the pledge of allegiance to the flag. I. CRA DIRECTOR OF STRATEGIC PLANNING TO MEET WITH CITY STAFF AND MR. LOUIS VERNELL OF PARK WEST STUDIOS TO ADDRESS MR. VERNELL'S REQUEST FOR SUPPORT. Louis Vernell: Mr. Chairman, if I may, I would like to address you and the Board before the meeting commences on a matter which I feel, from a personal standpoint of extreme urgency, if that would be OK. Simple question. Chairman Teele: For the purpose of the record, state your name and your address, please. 2 CRA 9/25/00 Mr. Vernell: Louis Vernell. You might -- for the address, 85 Northwest I01h Street. My wife, Janet Vernell, who is the principal in this particular situation. Janet and myself, representing Park West Studios, a soon to be open and flourishing business, a bright spot, perhaps, in Miami's future if this Board would ever stop, think and consider the presence of Park West Studios and what's been happening for the last year, expenditure of a lot of money, a lot of time. And my wife has indicated to me -- and I've seen a copy of it, and I think most of the Commissioners have -- a copy of a letter addressed to you, Mr. Teele, on September 21St, acknowledging the fact that Park West Studios has an issue to be presented at this Board meeting. We wanted to know where on the agenda we would be. In looking at the agenda, I find no place, which is somewhat of a shock, because I do believe that Park West has paid its dues, and is entitled to be heard, and is entitled to be the recipient of a little help from the City. I think some and most of the Commissioners and people who have been in the building, 85 Northwest 1 oth Street, a building that was once condemned and still carries on your particular rolls as a condemned building. But several hundred thousand dollars later, and a year and a half of personal effort and sweat, we're close to opening. We need the help of this particular body. We've asked for it. We've opened our doors. Come in. You're welcome. Everybody that has come in stood in awe of the promise of this particular business. It's a business that can cater to the entertainment media, a business that's going to house shoot locations for some of the greatest film artists in the world. Our associate at this point is producing, making a production for Polo, Ralph Lauren, you name it. They will be housed in this particular facility. I have no idea why this particular Board has totally shunned Park West Studio, closed not only its doors, but its ears. We have not been able to get a return phone call, much less a letter. Now, I don't think there's any Commissioner or anybody on this Board that can say they did not get a copy of our dated September 21" letter saying, "Where are we on the agenda?" Would it not be courtesy, if nothing more, to say, "Hey, guys, you're not on the agenda, don't waste your time by coming down here"? We're not looking to just open up a business, make profit and run. This is going to be a -- something that the City can take pride in. We need your cooperation, we need your input, and frankly speaking, we need your money. We have spent a lot of time getting to where we are. And I would like to feel that in the City's budget -- I'm very much impressed and appreciative of the fact that this Board is considering giving substantial moneys to an existing business. OK? How about a new business? And I see that money is going to be allocated, hopefully, to a new business in the form of that network operation. And I say I applaud that particular situation. But you have something that perhaps -- there is no other business that I can think of, being totally objective, that can bring this much attention to this City than this particular operation. It's an opportunity for the City, and certainly one that I think that could be of mutual benefit. And I would like this Board, when it gets around to figuring up its new budget, which I understand you're going to be doing that today, to either put us down as an item to be considered favorably, or tell us forget it. And we'll go on our merry way and do what we have to do, and the City perhaps may get the spillover of our success. I would like to feel that this particular Board and the City of Miami can become partners in something that could do nothing more than help the rejuvenation of this particular City. And I thank you for your time, and I want to apologize to those individuals who were lucky enough to get on the agenda. I don't know how they did it, because we started a month ago, and we haven't seen a move up on this list or anything. But I do appreciate your time and effort. Thank you. Chairman Teele: Thank you very much. All right. Mr. Judy, would you mind, please, working with the gentleman and developing, as appropriate, with the appropriate City staff person. One of the things I think, Mr. Manager, and I should acknowledge, Mr. Manager, your presence and that of -- my God -- your Budget Director, your Assistant Manager for Community Affairs, your Assistant Manager for Finance. We're either in a lot of trouble, or we're doing something right or wrong. Please let us know. But we're 3 CRA 9/25/00 honored that you'd take the time and your staff, senior staff would be here with us, and we're grateful for that. And I would also ask in the future, could we please insure that the seating provides at least two seats for the Manager's staff that they can choose? It's not comfortable to work in your lap, if nothing else. And it's their option, any way they'd like to handle it. But we should have the Manager's staff, which gets me to the point. This is not the City Commission. And I think all of these references were to us as Commissioners and to the City Commission. I'm not aware, particularly, of the request, other than the fact that I know the building very well, and it's an outstanding building that has been the set for several movie sets in the area. So I think we probably should be trying to work with Mr. Judy and the City of Miami's Development Office. Who's the Director of Development now? Carlos Gimenez (City Manager, City of Miami): Arleen Weintraub. Chairman Teele: Ms. Weintraub, yeah. And with your permission, Mr. Manager, we'd ask Mr. Judy and Ms. Weintraub to approach this and see just what the issues are. The letter that I received on the 22°d or so, obviously, the agenda is mailed out one week in advance, goes out in advance, and that -- those things just sort of crossed over. But you've had as much time as anybody else is going to have to complain, to present your issue. And I'm just surprised that you didn't really present the issues. But we'll certainly have Mr. Judy and the Manager's representative to work with you and see if this is a City issue for City funding, or if this is an issue that the CRA can be involved in. We're going to move on now, and you can take that up with Mr. Judy. Yes, Mr. Judy, right there now. All right. 4 CRA 9/25/00 2. (A) MANAGER AND CRA ADMINISTRATION TO COMPLETE NECESSARY PROCESS IN ORDER FOR CRA TO ACCESS COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS TO PAY CONTRACTORS BILLS. (B) DISCUSSION ON STATUS OF CRA INTERLOCAL AGREEMENT (See #10). Note for the Record: Board Member Gort entered the meeting at 5:21 p.m. Chairman Teele: Commissioner Regalado. Board Member Regalado: Yeah. Mr. Chairman, now that you mentioned the fact that the Manager has taken his time and his staff to visit and attend this meeting, I think it's important that again we say on the record that the role of this Board is to do projects. And according to the CRA staff, it seems that we have not finalized the transfer of money that was approved by the administration, by the CRA Board. It has been approved by anybody and everybody, and it seems that the CRA cannot have access to that money, and, of course, start projects. I would urge the members of the Board to somehow request that the CRA Board and the staff of Community Development will try to solve this situation. I don't know exactly what is the problem, but it seems that there is at least some issue that has not been resolved in this money that is allocated, approved by the City Commission, by the CRA Board. And Mr. Chairman, I don't know if we need a motion or anything, but I would think that we should urge the administration and the CRA staff to go out and finish the details so we can get the money and start the projects. I've seen the list of the projects and it's just we don't have the money to do it. So that would be my thoughts on this issue, now that you mention that the Manager is here with his staff. Chairman Teele: Well, item number 7 on the agenda, I didn't see -- Did the Manager leave? Mr. Gimenez: I'm right here. Chairman Teele: OK. I apologize. Item number 7 on the agenda addresses that. And item number 7 is the Interlocal Agreement. I want -- It's my understanding that the City staff and the CRA staff have had a series of meetings over the last 30 days or two weeks that has been extremely cooperative. And the problem, though, that you're raising is a problem that the CRA is not a City agency. And, you know, a lot of people don't understand that, the discussion before. We're not sitting here as City Commissioners. We're sitting here; very similar to being Board members of a CDC (Community Development Corporation) or Board members of an agency that's not necessarily a function of the City. The fact that we have this unique relationship is a part of the way the law reads, and the fact that we are the Board members. Many CRA's have as Board members -- and I know Dick could give us a treatise on this. There are at least two different ways under the state statute to formulate the Board of a CRA. We happened to have taken a model that puts the City Commission. But the CRA Board could be private members, or it could be some public members and private members, et cetera. But I think the fact that all five Commissioners sit here gives any reasonable person the right to assume that you're dealing with the City Commission or the City wearing another hat. The point is this: The CRA, just like every other organization that receives funds from the City, has to enter into an agreement satisfactory to the City. I think that's the proper way to say that. That Grant Agreement has not been entered into. Now, once the Grant Agreement is entered into, it does not have to go back to the City Commission for approval, just like no Grant Agreement goes back to the City Commission for approval. And I think the fact that our Board 5 CRA 9/25/00 has approved this ad infinitum is the thing that is getting frustrated. I don't want to speak for the City, but it's my understanding that the City and the CRA have a full agreement. Is that correct, Dipak, on the release of the three million dollars ($3,000,000)? Dipak Parekh (Executive Director, CRA): Yes, they do. Chairman Teele: So that will answer Commissioner Regalado's question. Mr. Parekh: Until the Agreement is executed. And we're in that particular stage right now. Chairman Teele: But see -- OK. Well, since we're talking about Ms. Warren, I'm not sure where Commissioner Regalado is coming from on this issue, other than the fact that he's exactly right, that it should have been done. The agreement -- does it need to be ratified by our Board? Mr. Parekh: No. Chairman Teele: No? Does it need to be ratified by the City Commission? Mr. Parekh: Yes. Chairman Teele: No, no. You see, all those Grant Agreements, every -- If the City Commission ratifies this Grant Agreement, then we're going to start ratifying every CDC. OK? The procedure has never been for the Commission to ratify the agreement. So the real issue is, why hasn't it been signed by the City Manager, and why hasn't it been signed by the CRA Executive Director? And I can't answer that. But I really don't think we ought to get bogged down on that right now. 6 CRA 9/25/00 3. CRA ADMINISTRATION TO SCHEDULE ON NEXT CRA AGENDA PROCUREMENT OF GENERAL LIABILITY INSURANCE FOR CRA BOARD OFFICERS AND ITS DIRECTORS. Chairman Teele: Commissioner Sanchez, did you want -- Commissioner Sanchez: Mr. Chairman, on the order of the day, there are two items that I want to express my concern. One is in the last meeting that we had, I directed Robert Tyler to look into getting insurance for the Board and Directors, liability insurance. I was hoping to see an update of some type in this agenda. I do not see it. Can he give us an update on what's going on with that? Chairman Teele: Duly noted. Mr. Tyler, are you prepared to give us an update? This is really something that the Attorney should be handling, but go right ahead. Robert Tyler (Director, Operations, Administration & Development, CRA): What we've done is contacted a couple of insurance companies, the main carriers that we've already got our coverage with, and they're asking for us to scope out our requirements. So we're still scoping it out. We don't have a complete report yet, sir. Board Member Sanchez: Well, I would like to see this on the next agenda item that we have. And the other issue is we go back, and I've expressed my concern on the five-day ruling. I did get this a couple of days ago, and then Friday, at 1:30, I get the agenda. That's not giving me five days in advance. Once again, I would like to elaborate that I would feel comfortable, much more comfortable if I could get this, the agenda, at least five days prior to our meeting. Chairman Teele: Mr. Attorney, you're responsible for the distribution of the agenda. William Bloom (Legal Counsel, CRA): I believe the initial package had the agenda, and most of the items in the package, and it's only the supplemental items which -- Chairman Teele: When was the package put out? Was it put out five days in advance? Mr. Bloom: I believe the original package was sent out four days in advance. Board Member Sanchez: I just -- Mr. Chairman, I just think that we need to have more time when it comes to these issues. I've expressed this concern in the past. You know, to get this Friday at 1:30, it just doesn't give me enough time. You realize that we're not on that Commission full-time. I'm there in my office usually Monday to see all my appointments. And, you know, to get here this morning, and I had appointments all day, and trying to catch up on the budgets and stuff, it just -- it's really not fair. Chairman Teele: Yes. All right. Your concerns are duly noted. Board Member Sanchez: I got this Thursday, then I got this Friday. Mr. Bloom: This Thursday? Board Member Sanchez: Yeah, yeah. Apparently, the staff is not sending it out. CRA 9/25/00 4. APPROVE AMENDMENT TO FISCAL YEAR 2000 BUDGET FOR SEOPW/CRA. Chairman Teele: All right. Why don't we go -- Is there anyone else here that's from the public that needs to be heard? If not -- on any matter. If not, why don't we take the first item, Mr. Tyler. Robert Tyler (Director, Operations, Administration & Development, CRA): The first item being our fiscal Chairman Teele: I'm sorry. OK, yeah. Dipak is going up? Mr. Tyler: Yeah. I'm going to defer this to our Budget Director, Dipak. Dipak Parekh (Executive Director, CRA): Thank you. Good evening, Board Members, City Clerk, City Manager. I would like to refer you to Exhibit 1 after the resolution in Tab Number 1. The title is Southeast Overtown/Park West Trust Fund Fiscal Year 2000. This is a normal cleanup which is done by most organizations. Basically, what we tried to do is to replenish the budgets in terms of revenues and expenses. We started the budget this fiscal year with fifteen point six million dollars ($15.6 million). We were able to receive or in the process of receiving eleven point six million dollars ($11.6 million), and we are going to end up with a reserve, a cash reserve of one point four six million dollars ($1.46 million). The reason for the three point nine eight million dollar ($3.98 million) discrepancy between the fifteen point six and eleven point six is that three million of the CDBG (Community Development Block Grant) funds were not allocated to the CRA. Furthermore, the CRA's prior year carryover, four million dollars ($4,000,000) came to one point four eight seven (1.487), based upon the auditor's report. So -- Chairman Teele: It went down three million dollars ($3,000,000)? Mr. Parekh: Yes, sir. Two point five one four million dollars ($2.514 million), to be exact. Chairman Teele: All right. Mr. Parekh: And other revenues in the amount of one point eight million dollars ($1.8 million), in terms of other grants which we were looking for, but did not materialize. Chairman Teele: All right. Mr. Dipak, have you had the opportunity to meet with each of the Board Members that was available? Mr. Parekh: Yes, sir. Chairman Teele: OK. Well, let's be brief about this, unless you want to point out something. I think the really important issue that needs to be said to the management is that the CRA's books are maintained by the City of Miami in terms of the dollars. And this may be more for the edification of members of the public. But the CRA does not write checks or make disbursements. The Finance Department disburses, is the total fiduciary, by our agreement of this Board with the City of Miami. In addition, most of the budget issues are -- that relate to Community Development funds, which have been historically the primary issues, those issues are also managed and maintained by the Community Development Office. And unfortunately, we are on a reimbursable basis, which means pretty much we have to spend the money 8 CRA 9/25/00 before we get it back, unless we make other arrangements. The dollars that are being reflected here represents a three-year effort, Mr. Manager, of cleaning up the books, if you will, of the CRA. In other words, cleaning up the books of the City that relate to the CRA. But they're our books, and we are the Board that -- the only ones that can authorize the disbursement of those funds. And I think the Community Development Office, and the Finance Department and your management staff have done really an outstanding job. I don't like the way the numbers went. In other words, in cleaning it up, the numbers went down three million dollars ($3,000,000). But I think, in fairness to the process, it has been a very painful process that's taken a lot of time. And the Community Development Office, when they got this job two years ago, has really worked at it. So the numbers are what they are. And this is really an administrative action. Is there discussion on the cleanup resolution? Board Member Gort: Mr. Chairman. Chairman Teele: Mr. Sanchez. Board Member Sanchez: I'll yield. Go ahead. Chairman Teele: Commissioner Gort. Board Member Gort: Mr. Chairman, I've had an opportunity to meet with the staff, and I thought it was very important that we clarify a lot of the points that come in here, so we have a better understanding. Especially, the staff came back to me project by project with what the expectation of the funding was which really was available. Because as you read this budget, it's very confusing to people. And my understanding is, and according to the projections, we projected and we adopted of fifteen -six, fifteen million, six hundred and some thousand dollars. My understanding, in reality, what the CRA received was two million, one hundred and fifty-five, three thirty-one; is that correct? Chairman Teele: That's correct. Board Member Gort: Am I correct on this? Because this is what I'm reading in my numbers. Mr. Parekh: Actual cash. Actual cash, yes. Board Member Gort: Actual cash. Out of the fifteen million, what we had received, because it's very important, because, you know, people hear about millions and millions and millions. And we want to make sure we understand. Of the fifteen million budget, all we have received is two point one five five million dollars ($2.155 million). And we're minus eleven, six thirty-two, which we believe that we can get this in the years to come. Mr. Parekh: No. That's a commitment we have from CDBG on this particular issue. Board Member Gort: OK. Chairman Teele: No, no. Let's state that a little differently. Board Member Gort: Let's clarify it. 9 CRA 9/25/00 Chairman Teele: That's a commitment by the City Commission, by ordinance -- OK? -- Which the Community Development Office is obliged to work with us in developing. But that ordinance is subject to the availability of funds. Board Member Gort: Right. I want to make sure we explain that, so the -- we don't want the perception to be incorrect. For instance, let me give you -- One example is we have highway funding, which we allocated. We're not going to get it this year, but we will be getting it next year. Mr. Parekh: It will be a carry forward. There's an issue of timing. The CDBG allocation process really begins on July the 1st, while our fiscal year really ends on September 30t". So between that particular time, in between, for three months, we have one million allocated. Board Member Gort: I just want to make sure. What we're clarifying here is what we had received in the CRA is two point one fifty-five, and we have expenditures of eight forty-seven-o-eight. OK? Mr. Parekh: That is true. Board Member Gort: All right. Thank you. Chairman Teele: In normal budget language, though, a budget represents not your appropriations. That's separately done. The budget represents the highest number of dollars that you can receive or that you expect -- reasonably expect to receive that year. So the budget was reflective of the CDBG commitment that was made by the County Commission. Now, we could have budgeted less, or up to that amount, and we chose to budget up to that amount. Commissioner Sanchez, on the resolution. Board Member Sanchez: Yes. Thank you, Mr. Chairman. I have a few questions pertaining to this budget on the SEOPW Trust Fund Fiscal Year 2001. Chairman Teele: We're on -- Item number 1 is 2000. We're on item number 1. Board Member Sanchez: Well, I'll wait till Item Number 2. Chairman Teele: On the motion -- is there a motion, please? Board Member Gort: Move it. Vice Chairman Winton: Second. Chairman Teele: Moved and seconded. Is there objection? All those in favor, say "aye." The Board (Collectively): Aye. Chairman Teele: All those opposed, say "no." 10 CRA 9/25/00 The following resolution was introduced by Board Member Gort, who moved for its adoption: SEOPW/CRA RESOLUTION NO. 00-89 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY ("CRA") APPROVING THE AMENDED BUDGET FOR FISCAL YEAR 2000 BUDGET ATTACHED HERETO AS EXHIBIT "A" AND MADE A PART HEREOF (THE "AMENDED BUDGET") AND TRANSMITTING SAME TO THE CITY OF MIAMI AND MIAMI-DADE COUNTY. (Here follows body of the resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Board Member Vice Chairman Winton, the resolution was passed and adopted by the following vote: AYES: Board Member Wifredo Gort Board Member Tomas Regalado Board Member Joe Sanchez Vice Chairman Johnny L. Winton Chairman Arthur E. Teele, Jr. NAYS: None ABSENT: None Chairman Teele: Is there a motion -- that's on the Southeast Overtown/Park West. 11 CRA 9/25/00 5. APPROVE AMENDMENT TO FISCAL YEAR 2000 BUDGET FOR OMNI/CRA. Chairman Teele: Is there a motion on the amendment of the 2000 budget for Omni? Moved? Vice Chairman Winton: So move. Board Member Gort: Second. Chairman Teele: Seconded. Is there objection? All those in favor, say "aye." The Board (Collectively): Aye. The following resolution was introduced by Vice Chairman Winton, who moved for its adoption: OMNI/CRA RESOLUTION NO. 00-45 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY ("CRA") APPROVING THE AMENDED BUDGET FOR FISCAL YEAR 2000 ATTACHED HERETO AS EXHIBIT "A" AND MADE A PART HEREOF (THE "AMENDED BUDGET") AND TRANSMITTING SAME TO THE CITY OF MIAMI AND MIAMI-DADE COUNTY. (Here follows body of the 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 Vice Chairman Johnny L. Winton Chairman Arthur E. Teele, Jr. NAYS: None ABSENT: None 12 CRA 9/25/00 6. APPROVE FISCAL YEAR 2001 BUDGET FOR SEOPW/CRA -- DISCUSS PROBLEMS WITH CRA RECORDS. Chairman Teele: A resolution approving and transmitting the budget for year 2000. Now this was deferred -- 2001. This was deferred in the last meeting at Commissioner Sanchez' request. By deferring that motion, it placed the CRA, obviously, in the situation where we were not able to submit the budget to the City in a timely manner. But I think, you know, it's very important that every Board Member be comfortable with the budget, and I think it's -- that no harm or no damage has been done. It's just put on the record that way. So Mr. Assistant Manager for Budget, hopefully, the budget was forwarded to you to be placed on the agenda this Thursday. But technically, it was being transmitted without authority. But the staff had to do that; otherwise, we'd be just that much further out of compliance. So staff transmitted it to you all pending the Board action here. All right. Commissioner Sanchez, you had questions on the budget? Board Member Sanchez: Yes, I did, pertaining to the year 2001. If we go to interests and investment, the ninety thousand dollars ($90,000) that fall under the year 2001, what are you considering interests to investment? Dipak Parekh (Executive Director, CRA): Commissioner, these are all the resources, which we still have in the bank at the end of this fiscal year. I should have mentioned that we were going to end up with a one point four six million dollars ($1.46 million) worth of reserves, which we're carrying into next year. And all of those moneys, plus the tax increment moneys, the parking revenue moneys, the rentals, the general support we get from the City, all of it adds interest. And those interest incomes are calculated by the City and deposited in the Southeast Overtown/Park West Trust Fund. Board Member Sanchez: Do any of those funds come from CDBG (Community Development Block Grant)? Any interest comes from CDBG? Mr. Parekh: No, it cannot. Board Member Sanchez: Exactly. Mr. Parekh: We work on a reimbursement basis, so we do not derive any interest dollars from there. Chairman Teele: Again, I think it's very important to point out that the funds are maintained by the City Finance Department. The numbers are done in conjunction with the City Finance Department, just like -- So I mean, I think it's very important to understand the relationship between the City and the CRA. We're really recording numbers. Now, what's sort of new -- and I don't mean to create any old animosities -- what's kind of new is that these numbers were never really displayed. I think the Budget Officer in the past and the Finance Officer in the past took those dollars and maybe gave them to the City account. So what we're trying to do now is, while the City does maintain our accounts -- you just got it, Dipak? Commissioner Gort got it, too. What we're trying to do is make sure that we maintain our set of books so that we can keep the City's books on level and on balance with ours. But obviously, if interest comes in -- These funds are not segregated, per se. These funds are segregated by numbers. But the City maintains these huge accounts, and it's up to us, if you will, to come up and say, we think we're owed ninety thousand dollars ($90,000), or 60 thousand dollars ($60,000), or whatever that number is. If we don't say 13 CRA 9/25/00 anything, I think it's reasonable to assume that that money would just accrue to the general fund or wherever the keepers of the books would do it. Mr. Parekh: Just for the record, Chairman, as of 7/31/00, interest on investment in Southeast Overtown/Park West amounted to eighty thousand, one hundred and eighty-nine dollars ($80,189). And we have not shown two additional months here yet. Board Member Sanchez: OK. Chairman Teele: Further discussion? Is there a motion? Board Member Sanchez: No. Mr. Chairman, I have a lot of questions pertaining to the budget that I wish that Mr. Dipak would answer. One, the other question on that is I just want to make sure no federal funds are being interest, you know. Part 570 does not allow that. I want that on the record, to make sure. Mr. Parekh: On the record, we can only have those funds disbursed through the City, and those interest income are not -- Board Member Sanchez: Will be returned back to the City. Mr. Parekh: First of all, they do not come to the City, nor do they come to the CRA. Board Member Sanchez: OK. I just want that on the record. Mr. Parekh: It is on the record. The other -- Board Member Sanchez: Well, let me -- let's get back, Mr. Dipak. And once again, we do hold fiduciary responsibility. And if we're going to vote on issues here, they may affect us in the long run. That's why I'm so concerned to make sure that we do have voting directors liability insurance. I want to just make sure that the things that I identify here are for the best interest not only of the CRA, for everyone here. One is interest cannot be earned on federal funds. That's under Part 570. You cannot. Whether it could be brought in or not, that's questionable. Now, the other issue that I want to bring out is the prior year carryover and reimbursement of one point four million dollars ($1.4 million). Mr. Parekh: Yes, sir. Board Member Sanchez: Where did you get those prior year carryovers? Mr. Parekh: That's a great question. That actually comes from our external auditors. What I would like to do, if it's possible, Member, is -- if you can pass this information to Mr. Sanchez, please, I'd appreciate it. On page 3, which is highlighted with a tab, plus page 16, on the first column -- Board Member Sanchez: Do all the Commissioners have this? Mr. Parekh: No, sir. 14 CRA 9/25/00 Board Member Sanchez: Why not? Mr. Parekh: I think they were given out at the last meeting when the external auditors came to give their report, sir. Chairman Teele: When the external auditors came. Vice Chairman Winton: So they were given out. Chairman Teele: They were passed out, yeah. Mr. Parekh: They were passed out and we had discussed it. Board Member Sanchez: You're good. Mr. Parekh: On page 3, you will see that the cash for the general fund is five hundred and ninety-six thousand, five hundred and seventy-eight. And on the retained earnings, it's nine hundred and seventy thousand, two thirty-six. On page 16, if you turn over to Southeast Overtown/Park West, you will see cash in the amount of eight hundred and ninety thousand, eight hundred and eighty-one. Board Member Sanchez: Which page? Slow down. Mr. Parekh: Page 16. Board Member Sanchez: Slow down. Sixteen? Mr. Parekh: Yes. It's highlighted with a tab. And I've highlighted it, as well. Board Member Sanchez: The Omni Redevelopment District? Mr. Parekh: No. The column entitled Southeast Overtown/Park West. Board Member Sanchez: OK. Eight hundred and ninety thousand, eight hundred and eighty-one. Mr. Parekh: Right. And if you look all the way at the bottom, you'll see another figure highlighted with retained earnings, which amounts to one million, seventy-three thousand dollars ($1,073,000). We have been extremely conservative. But if you just added up just the designated fund balance for Southeast Overtown/Park West, you'd come to an amount of one million, nine hundred and ninety-three thousand, of which we have only chosen, on a conservative basis, to utilize the cash which is there, which amounts to one point four six four -- one point four eight seven million dollars ($1.487 million). Board Member Sanchez: OK. Has the City agreed to that amount? Mr. Parekh: This is our external auditors where a report was granted. And it's the same external auditors, which the City uses. 15 CRA 9/25/00 Board Member Sanchez: OK. The grants to existing businesses, I'm a little confused that it falls under revenue, where I think it should be under expenditure. Mr. Parekh: Well, there are two ways. First of all, you need to have the revenues coming in and at the same time, expenditures going out. The problem, as far as CRA's is concerned under Chapter 163 of the Florida Statutes -- Board Member Sanchez: Mm-hmm. Mr. Parekh: -- is that all revenues cannot be shown up in different subcategories. They have to be shown up as one particular budget. It may, for information purposes -- and my good friend, the Attorney can correct me if I'm wrong. The budget can be later on be columned in either TIF (Tax Increment Funding) funds, in capital project funds, in general funds and programs. And we have actually done that for this particular Board for fiscal year 2000. If you look under -- after the main page. Board Member Sanchez: Which page? Mr. Parekh: Next page in your book. Board Member Gort: The one before last. Mr. Parekh: The title is -- it's under the same tab, Commissioner. It says Fiscal Year 2001 Budget Allocation. That's the title. It has five columns showing up. It starts off with fiscal year 2001 estimate, incremental taxes, general, capital and programs. Ideally, if we were going to do it in the way the City does it and some other agencies do it, we would show the capital project as a separate item. But we do not have the luxury under the Florida Statutes to do that. Therefore, we have compiled this particular information for Board purposes. In reality, what you really do have for incremental taxes which we derive is nine hundred and forty-four thousand, eight sixty-two, of which not a single penny goes towards operating expenses except towards projects of eight hundred and eighty-eight thousand, and debt service which we have to fund at fifty-six thousand. General fund, on the other hand, amounts to two point eight nine nine million, of which six hundred eleven thousand plus three hundred thousand dollars ($300,000) goes towards debt service. Capital projects is sixteen point eight, and programs is one point three two four. So you will see under programs grants to existing business of half a million dollars. Board Member Sanchez: Right. Mr. Parekh: Plus on the bottom side, you'll see an expense of one point three two four million dollars ($1.324 million), which basically zeroes that particular account out. But for legal purposes, I've got to show you that page 1, and we've got to have approved on Page 1. Board Member Sanchez: Now, on those jobs created, if they're given grants, my main concern here is that everything is documented properly, that we do follow the guidelines, because we just had to pay HUD (Department of Housing and Urban Development) five million dollars ($5,000,000), because in the past, the documents weren't prepared properly. Chairman Teele: No, the CRA has not paid. Let's get the record straight. The CRA has not -- 16 CRA 9/25/00 Board Member Sanchez: Commissioner Teele I -- but the CRA could end up in the same situation that -- Chairman Teele: Yeah, but I -- Board Member Sanchez: I understand. Chairman Teele: Yeah. I just -- we need to keep the hats straight. We're not -- Board Member Sanchez: Commissioner Teele, I know which hat I'm wearing. Mr. Parekh: Board Member, these are some of the reg's, which we got from CDBG. And by the time we finished reading them, we have basically, to state for the record, we are complying with the reg's as laid out by CDBG. As well, we are in constant touch with Gwendolyn Warren, who is assisting us further. Board Member Sanchez: On the three and five, which Community Development Block Grant, one year un-funded, and Community Development Block Grant, year two un-funded, we have three and five. Those are -- that's approximately eight million dollars ($8,000,000) out of a twenty-one point nine million dollar ($21.9 million) budget. That's 40, close to 40 percent un-funded. That's of great concern to me. Mr. Parekh: Commissioner, further down in the project list, when we get to Tab Number 5 and Tab Number 6, what we have done is followed the Board's direction in terms of applying for these funds to the City's Community Development Block Grant process. We will not start -- this is for the record. We will not start on any of those projects. And we have highlighted what those projects are, which amount to un- funded type of items. So as far as the CRA is concerned, we have a list in terms of what is being funded, by what particular category, and those are the ones which we will discuss in Item 5, for your information. Board Member Sanchez: Well, I understand that's where we have funds available, and then funds needed, and the total project. It breaks it down. Now, if I am correct at this, the resolution that we passed giving the CRA -- well, the Commission passed giving us the funds had the language of the additional funding had to come either, one, if we didn't have the money, 108 loans for the CRA. That is correct. It had to be based on 108 loans. Chairman Teele: No, that's not correct. Board Member Sanchez: Well, correct me if I'm wrong, Mr. Teele. Chairman Teele: Well, what the -- first of all, it's not a resolution. It's an ordinance. Board Member Sanchez: It's an ordinance. Chairman Teele: The ordinance speaks to unused funds. That is turn -back dollars, which is where the existing three million dollars ($3,000,000) has come from, which is all reprogram dollars. It also speaks to the process that the City is going through now, which is the de -obligating of projects and closing out of grants. As you may be aware of, until very recently, within the last two years, the City has never closed out one grant, or annually, has not closed out one year. And this is -- what? Year what? Twenty? 17 CRA 9/25/00 Board Member Gort: Twenty-fifth. Chairman Teele: We're in year 25. So you've got 22 or 20 -- you got 20 or 21 years back there of grants that have dollars in them that the staff has been literally laboring against all odds. According to the federal documentation, the amount of funds in those grants may well be in excess of twenty million dollars ($20,000,000). I think that's a fair way to interpret those federal unrestricted or those federal -- what are those documents called? Board Member Sanchez: Reprogram money? Chairman Teele: No, no. The Federal Government will print out the amount of budget authority or funding authority that the City of Miami has. And that funding authority would represent all of the grants. If you look at the Miami Herald, the County is constantly closing out grants. They'll take a grant, it may have fifty dollars ($50) in it, it may have seven dollars and eighty-five cents ($7.85) in it, it may have eight hundred thousand dollars ($800,000). And those -- and they're published, and they close them out, and they show where the dollars are going to. We're in the process now of doing that, you know, 20 years late. And then the issue was the 108. So there's three categories of funding that are available. One is closeout grants. All of the three million dollars ($3,000,000) to date came from closeout grants. It came from twenty thousand dollars ($20,000) in a sidewalk contract that was 20 years old, or twelve thousand dollars ($12,000) in a park project, et cetera, et cetera, et cetera. And then the 108 is the last thing, but you would do that last. Board Member Sanchez: OK. The projects and programs are these projects and programs the original projects approved under the official CRA plan? Mr. Parekh: Yes, Commissioner, and some are to be added, and that's the reason why they're showing up under Tab 5. I will let you know exactly what those numbers are. Under project number 47 through 51 of the project list, those are the new projects, which are coming before this Board. There have been discussion of some prior -- Board Member Sanchez: Forty-seven? Mr. Parekh: Under the project list, sir. Chairman Teele: Look, we've all read through this, Dipak. I mean, why don't you just answer the questions. Mr. Parekh: Yes. Primarily, they have come before this Board numerous times. Board Member Sanchez: On one of the projects in the Overtown area, the development of a professional office complex, is that -- What kind of development is that? That's not going to be a private development, is it? 18 CRA 9/25/00 Mr. Parekh: Commissioner, that's part of the 1995 bond issue with the City of Miami. That was with reference to the MRC (Miami Riverside Center) Building, which was bought. And two million dollars ($2,000,000) was to build or purchase a professional building. Those funds are with the City's. Chairman Teele: All of the funds are with the City. Board Member Sanchez: Well, I need more explanation on this. The development of a professional office complex. Sounds to me a private development. And, of course, if it does, it's got to be through an RFP (Request for Proposals). But that's -- Chairman Teele: The professional office complex was approved in the budget two years ago. That has been -- come before this Board and it has been approved repeatedly. In addition, the funds are as Mr. Dipak has discussed. They are bond dollars, and they can only be used for that, for that process, or you wind up not giving the money back to the City, but returning the money to the bondholders. But again, this is not a project review. I mean, this is a budget review. And I mean, I think in fairness to the process, if you could stay with the dollars, we could get through this. Board Member Sanchez: Well, I'm trying to stay with the dollars, and I have some concern with that two million dollars, with just basically where it says development of professional office and complex for two million dollars ($2,000,000), two point two million dollars ($2.2 million). I mean, if no one is going to explain to me what it is, I can't vote on something that's not explained. Chairman Teele: All right. Mr. Parekh: Commissioner, that's part of a bond indenture. Those bond indenture documents are with the City Clerk, as well as the City. It's part -- Chairman Teele: All documents are with the Clerk. Mr. Parekh: It's part of a purchase which was entered into for the MRC Building, and the two million dollars ($2,000,000) was allocated to the CRA for a professional building to be built or purchased. Furthermore -- Board Member Regalado: Excuse me, Dipak. Just to make simple, he's not asking about the money. He's asking, I think, about who's going to get the building. What -- what is the -- Chairman Teele: And that's not what this is about. This is not about who gets the building. This is about the budget. Board Member Regalado: He's asking about RFP and the process in order to buy the building, and locate. Mr. Parekh: We haven't entered into that at all. Board Member Regalado: I think that's what Board Member Sanchez is asking. I mean, he's concerned about the process of buying a new building. That's what I think. Maybe -- 19 CRA 9/25/00 Board Member Sanchez: Listen. The budget itself, just for the record, on some of the issues to address some of these numbers, we've had to come up with plenty of documents to explain. This is a complicated budget. It is a budget that Arthur Andersen would understand, KPMG (Klynveld, Peat, Marwick, Goerdeler) would understand, but I guarantee you, no one here, if you gave out the budget to everybody and tried to explain, they couldn't understand. When I met with you, when we had our meeting that you called and wanted to schedule for Monday, that I said there's no way that I'm going to see you on Monday with this budget, it's a very complicated budget. And you came over and we met with the budget. I looked at the budget. When I looked at the budget, Dipak, I'm going to be very honest. It's a very complicated budget. Just alone with the fundings unavailable -- funds available and funds needed and projects. It's like you're taking a budget of millions of dollars -- and I'm not questioning some of the projects. Some of the projects are good. But I have a lot of things that I question on this budget. One is, the other issue that I want to bring out is we're spending millions of dollars on planning, technical assistance, technical design. I mean, that's money that in the long run, if I look at it, what's going to happen is planning and technical funds will be later reprogrammed to something else. And that's a concern that I have as I looked at the budget. And so once again, it's -- look how many notes I've taken on the budget. It's a very complicated budget, and there are some items here that you have not answered that I feel comfortable with. Mr. Parekh: Commissioner, I appreciate the interest that you're taking on the budget, and I think that's a helpful sign for the staff. The point, which we are trying to bring forth, is that first of all, we're trying to uncover the last three, four, ten years worth of budget miscalculations or calculations or whatever you call it, and trying to bring a framework, which people can understand. Board Member Sanchez: With the City. Mr. Parekh: With the City. In conjunction -- Board Member Sanchez: And has the City so far approved? Mr. Parekh: The two million dollars ($2,000,000) has been approved since 1995, Commissioner. This is not a new item. This is a six -year -old item. This is not new. And those funds are bound funds. And the interest it earns on it are for that specific project. Once this particular RFP does go out, it has to come through this particular Board. Otherwise, that project cannot move forward. At this moment in time, what we have done is to take a snapshot and say, what is the real revenues within the CRA? And these are the revenues, which pertain to the CRA. Board Member Sanchez: Yeah. Mr. Parekh: We are not allocating one single fund from here without the approval of this particular board. But at least now we have a fair idea as to how much money there is. And you didn't have that a year or two, three years ago. You didn't. Board Member Sanchez: I'm done, Mr. Chairman. Chairman Teele: Again, I think a lot of credit goes also to the City staff. The previous Manager accepted the challenge that I made about let's get these books straight. The current Manager has followed through 20 CRA 9/25/00 and his staff, Community Development, and Budget and Finance. And it is a complicated process. Redevelopment authorities, by state law, are extremely complicated, and extremely statutory. And we're trying to meet all of the requirements of the statutes, which, quite candidly, heretofore have not always been met. And I appreciate very much your concern, and I'm very grateful that almost -- I think every Commissioner has spent at least an hour and a half with the staff in private, and I'm grateful. I know you were with them today, Commissioner Winton. I was concerned, and I really appreciate the time that the staff has spent on that. I think it's just as important that the Finance Department and the Budget Department of the City, as well as the Assistant Manager for Finance or the management team fully understand. And we'll have the opportunity, I guess, between now and Thursday, because this budget goes -- The motion here is a resolution to transmit this budget also to the City and the County. These budgets have to be approved by both the City of Miami and the County. And with that, the motion is made by Commissioner Regalado and seconded by Commissioner -- Vice Chairman Winton: Second. Chairman Teele: -- Gort -- Winton. Further discussion on the budget. Resolution Number 3. Board Member Gort: Mr. Chairman, to better understand the budget, I think it's very important to go to the -- what we did with the 2000 budget, where if you look at it, we adopted a budget of fifteen point six and a half millions of dollars. And in reality, what we had was two point one five five millions of dollars. So -- and what's happening in this budget is we're doing the same thing. We're approving a budget of twenty-one million dollars ($21,000,000), and we've always stated with the availability of funds being there. If the availability of funds is not being there -- So staff, according to the conversation that they had, is having a plan, a five-year plan, which I've also requested that they get together with the people Overtown and show them, so they can have a better understanding of how the expenditures will take place. Now, my understanding -- and correct me if I'm wrong -- every one of these expenditures that we approve here, be it the office building, be it whatever, it's got to come back to us, and we have to approve it before it can go out for bid or whatever we're going to do. Chairman Teele: That's virtually true. Board Member Gort: That's my understanding. Chairman Teele: That's virtually true of everything that is in this budget. Board Member Gort: So now expenditure that would take place would take place without our approval. Chairman Teele: This is a budget document. This is not the appropriations. Every one of these items will have to come back to be appropriated, each and every one. Board Member Gort: Mr. Chairman, the reason I'm doing the following is to make sure that everybody understands what we're talking about. Once again, millions and millions -- and last year, we had a budget of eleven fifteen something. We only got two point something. And I think -- and the Title 5, in Tab 5 explains the different projects that we want to do, what's it going to take, how much money it's going to take, and maybe where some of the funding is going to come from. I just want -- I only have one more 21 CRA 9/25/00 question. On the CDBG funds, in going back the 24 years -- and I'll give you a break. I'll speak a little longer so you can go ahead and -- What is the total that we have? Chairman Teele: Which "we"? Board Member Gort: I mean the City, in the going back -- not us, "we." Chairman Teele: Not this "we," but the other "we." Board Member Gort: Right. Gwendolyn Warren (Director, Community Development): The CDBG that -- Chairman Teele: Please give your name, Ms. Warren, for the record. Does it work? Vice Chairman Winton: It did. Board Member Gort: If you connect it, it helps, if you turn it on. Ms. Warren: My name is Gwendolyn Warren, Director -- Board Member Sanchez: You don't need a mike. Ms. Warren: -- of Community Development. Commissioner, the answer to your question (inaudible) completed the reconciliation of Community Development. The total amount of funds that were made available and were reallocated to the Commission as a result of that -- The total amount of funds that were made available and reallocated at your May I Ith meeting was five million dollars ($5,000,000). Of that five million dollars ($5,000,000), one million dollars ($1,000,000) of it was Community Develop -- CDBG funds, and those were awarded to the CRA by the City Commission. Board Member Gort: OK. Thank you. Chairman Teele: However, the issue that Commissioner Regalado raised before is the issue, and that is, while the Commission allocated that, the staffs have not reached an agreement until within the last week or so on the Interlocal Agreement or the Use Agreement that releases those funds. Is that -- Ms. Warren: The Interlocal Agreement has been executed. The Subcontract Agreement releasing the funds, we have, in fact negotiated, completed the budget negotiations. We have copies of the project and the legal document is being processed. Chairman Teele: Further discussion? Board Member Regalado: Yeah. One question, Gwen, if I may. Ms. Warren: Yes, sir. 22 CRA 9/25/00 Board Member Regalado: So the three million dollars ($3,000,000), what's the timetable or time line for the CRA to start doing projects in order to bill the Federal Government? We all know that you don't have the money physically, and we don't and we won't, but just to send the bills. I mean, when can we start doing construction work on projects? Ms. Warren: Based on my instructions from the Manager and the City Commission, at the fully executed contract. Currently, the contract boilerplate is at the -- in the law office and with the legal representatives of the CRA. When they return them, we will process them. Board Member Regalado: Which is? Ms. Warren: As soon as -- the lawyers would be better able to answer when I'll have it back for processing. Chairman Teele: Ma'am, the lawyer's out in the hall. You want to answer that first? William Bloom (Legal Counsel, CRA): There is a revised draft that was delivered to the City Attorney's Office today. Ms. Warren: They're revising. Chairman Teele: All right. When the City Attorney comes back we'll -- Board Member Regalado: OK. Board Member Gort: Also, my understanding of the reconciliation that has taken place, 60 percent of it will be utilized by the CRA. The rest, the 40 percent will be allocated to the rest of the -- You're talking about five million dollars ($5,000,000) out of five million dollars ($5,000,000) accrued -- Chairman Teele: She didn't answer your question. She answered your question as it relates to the CRA. Board Member Gort: Right. Chairman Teele: She said five million dollars ($5,000,000) for CDBG, one HOPWA (Housing Opportunities for Persons with AIDS) funds. But your question was, how much -- Board Member Gort: Total. Chairman Teele: -- total money from the City, how much did you all make available in -- Board Member Sanchez: One million in HOPWA. Ms. Warren: To the CRA -- Chairman Teele: No, that's not his question. 23 CRA 9/25/00 Ms. Warren: OK. Board Member Gort: What's the total funding that you have now, after you have done your reconciliation for 22 years? What does the City have? Ms. Warren: The City had a total of four million, seven hundred and fifty-two thousand dollars ($4,752,000). Of that, two million dollars ($2,000,000) -- three million dollars ($3,000,000) -- excuse me -- was awarded to the CRA for the historic community project in Overtown. Chairman Teele: Third Avenue. Board Member Gort: Right. Ms. Warren: For the 3Td Avenue Business Corridor. Another million dollars of that was allocated to the CRA for various projects that are in your -- described in your package. And the balance of that money went for lot clearing and demolition. Board Member Gort: So the total of the reconciliation for 22 years was only four million dollars ($4,000,000). Ms. Warren: Four million, seven hundred and something. Board Member Gort: Not twenty or fifteen or -- Ms. Warren: No, sir. Chairman Teele: But Gwen, does that include all of the closeouts? That's reconciliation. You all haven't gone through all of the closeouts yet, have you? Ms. Warren: To be correct, what we have done is we completed the reconciliation. That was the four million seven we identified. We are -- for the first time, as Commissioner Teele has -- Mr. Teele has indicated -- Chairman Teele: Board Member Teele. Ms. Warren: Board Member Teele. We have -- we are closing out all projects this year on September 30th. We will be doing a final phase -out November 301h of everything that was funded, and any unallocated funds will come back to the Commission in January for redistribution. That will be our process from now on. And so this is the first year that -- And again, you had -- the Commission had to adjust our fiscal year. Now we're in line with the City. Now we can close out and start over with the City. Board Member Gort: OK. Thank you. Chairman Teele: Further discussion. 24 CRA 9/25/00 Mr. Bloom: Commissioner, before you act on the motion before you, there's one technical revision that we want to add to the resolution where we're asking that the -- and direction that the approved budget be transmitted to the City for its approval, and to the County, to the extent the County's approval is required, and that the language be added to the resolution. Chairman Teele: Further discussion. Let me correct the record no one thing that Mr. Dipak said in response to a question by Commissioner Sanchez. The grant dollars that have been allocated for businesses by resolution were not CDBG dollars. So I know you pulled up -- And we've said consistently that we would like to conform with CDBG rules and regulations regarding those dollars, but the funding source specifically was not CDBG dollars, which is somewhat at variance from what Mr. Dipak said. I just wanted to make sure that the facts were correct. The resolution that we approved specifically earmarks those funds from other funding sources. Further discussion. Did we have a motion and a second? Walter Foeman (City Clerk): Yes, we did. Chairman Teele: All those in favor, say "aye." Vice Chairman Winton: Aye. Board Member Gort: Aye. Board Member Regalado: Aye. Chairman Teele: Aye. Those opposed have the same right. Vice Chairman Winton: One "no." The following resolution was introduced by Board Member Regalado, who moved for its adoption: SEOPW/CRA RESOLUTION NO. 00-90 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY ("CRA") APPROVING AND TRANSMITTING THE FISCAL YEAR 2001 BUDGET ATTACHED HERETO AS EXHIBIT "A" AND MADE A PART HEREOF (THE `BUDGET") AND TRANSMITTING SAME TO THE CITY OF MIAMI AND MIAMI-DADE COUNTY. (Here follows body of the resolution, omitted here and on file in the Office of the City Clerk.) 25 CRA 9/25/00 Upon being seconded by Vice Chairman Winton, the resolution was passed and adopted by the following vote: AYES: Board Member Wifredo Gort Board Member Tomas Regalado Vice Chairman Johnny L. Winton Chairman Arthur E. Teele, Jr. NAYS: Board Member Joe Sanchez ABSENT: None 26 CRA 9/25/00 7. APPROVE FISCAL YEAR 2001 BUDGET FOR OMNI/CRA. Chairman Teele: On the Omni budget, motion by Commissioner Winton on the Omni. Second by Commissioner Gort on the Omni budget, year 2001, with the technical amendments, transmittal to the City and County as required. Further discussion. Further discussion. All those in favor of the Omni budget, say "aye." The Board (Collectively): Aye. Chairman Teele: Those opposed, say "no." The following resolution was introduced by Vice Chairman Winton, who moved for its adoption: OMNI/CRA RESOLUTION NO. 00-46 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY ("CRA") APPROVING FISCAL YEAR 2001 BUDGET ATTACHED HERETO AS EXHIBIT "A" AND MADE A PART HEREOF (THE `BUDGET") AND TRANSMITTING SAME TO THE CITY OF MIAMI AND MIAMI- DADE COUNTY. (Here follows body of the 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 Chairman Arthur E. Teele, Jr. Vice Chairman Johnny L. Winton NAYS: None ABSENT: None 27 CRA 9/25/00 8. APPROVE CAPITAL PROJECTS AND PROGRAMS FOR SEOPW/CRA. -71 Chairman Teele: Item Number 5, the capital programs of the CRA Southeast Overtown/Park West. Is there a motion by Commissioner -- Board Member Regalado: I'll move it. Chairman Teele: Second. Is there discussion? All those in favor, say "aye." Board Member Regalado: Aye. Vice Chairman Winton: Aye. Board Member Gort: Aye. Chairman Teele: Aye. Those opposed, say "no." The following resolution was introduced by Board Member Regalado, who moved for its adoption: SEOPW/CRA RESOLUTION NO. 00-91 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY ("CRA") APPROVING CAPITAL PROJECTS AND PROGRAMS AS MORE PARTICULARLY DESCRIBED ON EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF (THE "PROJECTS AND PROGRAMS"). (Here follows body of the 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 Chairman Arthur E. Teele, Jr. Vice Chairman Johnny L. Winton NAYS: *Board Member Joe Sanchez ABSENT: None *Note for the Record: See comments in Section #9. 28 CRA 9/25/00 9. (A) APPROVE CAPITAL PROJECTS AND PROGRAMS FOR OMNI/CRA. (B) CRA ADMINISTRATION TO PROVIDE A HISTORY OF TAX INCREMENT FUNDING FOR OMNI AND SEOPW/CRA, ANTICIPATED FUNDING FOR NEXT YEAR AND FIVE-YEAR BUDGETARY PROJECTION. Chairman Teele: The capital items on the Omni. Is there a motion by Commissioner Winton? Vice Chairman Winton: Yeah. Chairman Teele: Second? Board Member Regalado: Second. Chairman Teele: By Commissioner Regalado. Is there discussion? One point of discussion. Can we get a very clear time line, Mr. Judy, on the Omni Park? You know, the problem with all of this stuff -- and I'm seeing this -- the public doesn't understand why the government takes so long to do things. Vice Chairman Winton: Well, sometimes, the government, if I am part of government, doesn't understand, either. Chairman Teele: Well, I agree. But I mean, you know, one of the problems is we got all these rules and regulations. We got bids and all of that, the things that Commissioner Sanchez has been raising, which are valid. And yet and still, you know, we've got the issue of how this project is going to be phased and all of that. I am very supportive that we need to make sure that we get this Omni, you know, project done. And there's one issue here -- Board Member Regalado: Mr. Chairman. Chairman Teele: Commissioner, I yield. Yes. Board Member Regalado: Yes, would you yield? I see the City Attorney. I just want to make sure that before he leaves, we can have -- yeah, the City Attorney, you. Chairman Teele: Why don't you talk to your staff and get an update on the question that we discussed while you weren't here. Alejandro Vilarello (City Attorney): With regard to the agreement? Board Member Regalado: Yeah. Mr. Vilarello: I received the agreement today, and we'll look at it immediately and process it immediately. Chairman Teele: But can I ask you something? Mr. Vilarello: Yes, sir. 29 CRA 9/25/00 Chairman Teele: Why did you receive -- why aren't you doing the agreement? I mean, these are standard agreements. I mean, the -- Board Member Regalado: I mean you or your office? Mr. Vilarello: (Inaudible) that question, because the agreement was prepared by staff -- Chairman Teele: But hold it. We're talking about a CDBG (Community Development Block Grant) agreement. The City has probably entered into -- what? -- 50 of these agreements last year? Sixty? Gwendolyn Warren (Director, Community Development): A hundred and fifty. Chairman Teele: A hundred and fifty. I mean, why are we lawyering this thing? I mean, this should be a boilerplate agreement. William Bloom (CRA Legal Counsel): Commissioner, for the most part, it is a boilerplate agreement. However, there are some particular issues that have to be dealt with, because we are a CRA, such as the competitive bidding requirements. It would typically be required where we have the ability to buy off the City contracts, and therefore, avoid that bidding. So those things had to be addressed in the draft. Chairman Teele: I yield to you. You're the lawyer and we're going to do what you say do in the end. Board Member Regalado: Yeah, but could you give us an idea of the time that you think? Mr. Vilarello: It will be taken care of immediately this week, within the next several days. And Commissioner, if I can address that issue. Mr. Bloom and I and Mr. Tyler have met to try to restructure the review of all the legal issues, so that our office is used on the majority of pro forma type of agreements, and we selectively use outside counsel for those things which we need the expertise and the assistance of outside counsel on. We're in the process of structuring that so that there is a procedure and a process to avoid some of the delay in reviewing these documents. But, in fact, the agreement that Mr. Bloom reviewed and transmitted to my office today was an agreement that my office prepared quite a while ago, and is only in Mr. Bloom's hands because there were some certain changes that Mr. Bloom wanted to make to it. Chairman Teele: Commissioner Regalado, are you satisfied? Board Member Regalado: Yes. I think that, you know, the City Attorney has just said that within a week, he'll be working with that agreement. So after that, I guess that we can start drawing from that money and begin projects, which -- let me, Mr. Chairman, to address other issues then when we finish with this process. Chairman Teele: All right. Board Member Sanchez: Mr. Chairman, just for the record, for the City Clerk, number 5 is a "no" vote on my part. 30 CRA 9/25/00 Chairman Teele: All right. On number 6, the only issue relating to capital projects is -- and this is primarily for the edification of the public, and that is the Omni area, which is a separate Tax Increment District, has given up the vast majority of the CRA funding, tax increment funding to support the Performing Arts Center. The agreement that the City and the County entered into, which is about six years old now, requires that the first two -- is it two million? Richard Judy (Executive Director, CRA): Performing Arts was a million and forty-three thousand. Vice Chairman Winton: A million what? Chairman Teele: The first one point million dollars ($1.2 million) will stay with the CRA. And one of the things that I would like to ask that the staff do is for the next budget meeting, give us a history of the Tax Increment Districts in the Omni and the CRA, and give us the anticipated funding for next year, and then give us a five-year projection after that, because we need to know where we are and where we're going at all times. The important thing is this: The one point two million dollars ($1.2 million) represents all of the funds from the Tax Increment District that the Omni can reasonably expect to see for the next five to six years, I would imagine, four to five to six years, because of the way that agreement is structured. This part is a very important process in maintaining the confidence of the Omni District residents. And we need to move this park forward. I think there was pretty much unanimity from both sides of the Biscayne Boulevard, Commissioner Winton that this park, the Margaret Pace Park was important, and there are a series of issues associated with that. So at the next meeting, I would like to see an updated phasing plan so that we can be very clear on where we are on that. The CRA has also said that we will use CDBG funding and other funding to augment the park activity. And that park is right now at about three million dollars ($3,000,000)? Mr. Judy: Yes, sir. Chairman Teele: So we start out with one point two million dollars ($1.2 million) for a three million dollar ($3,000,000) park. And I think it's very important, Commissioner Winton, for you to follow that process with us. Vice Chairman Winton: I have, I think, at least three parks in my district just like that. Chairman Teele: Well -- Vice Chairman Winton: So I'm following them all. Chairman Teele: The problem with this one is, is that we're the Board of Directors of that park in terms of the capital improvements. And we have a unique responsibility, as opposed to Commissioners where we have the Board responsibility through the management process on that. Further discussion on the Omni capital. We have a motion. We have a second. All those in favor, say "aye." The Board (Collectively): Aye. Chairman Teele: Those opposed have the same right. 31 CRA 9/25/00 The following resolution was introduced by Vice Chairman Winton, who moved for its adoption: OMNFCRA RESOLUTION NO. 00-47 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY ("CRA") APPROVING CAPITAL PROJECTS AND PROGRAMS AS MORE PARTICULARLY DESCRIBED ON EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF (THE "PROJECTS AND PROGRAMS"). (Here follows body of the 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 Chairman Arthur E. Teele, Jr. Vice Chairman Johnny L. Winton NAYS: None ABSENT: None 32 CRA 9/25/00 10. APPROVE COMMUNITY DEVELOPMENT BLOCK GRANT INTERLOCAL AGREEMENT (See #2). Chairman Teele: And then the -- Item number 7. Board Member Gort: Mr. Chairman. Chairman Teele: Commissioner Gort. Board Member Gort: I apologize. I had to step out during 4 and 6. I didn't have any problem with either one of them. But once again, I'd like to reiterate that the -- every one of these budgets, capital improvement, we approve here as a project as we go into one in specific. They all have to come back to us. Am I correct? Chairman Teele: You're right, sir. Board Member Gort: OK. Thank you. Chairman Teele: You're right, sir. Chairman Teele: All right. The Interlocal Agreement issue, very briefly. Dipak Parekh (Executive Director, CRA): I think, based upon the comments by Commissioner Regalado, I've just been handed a new agreement, which has been transmitted, to the City Attorney. We are hoping to get that done. My only concern, Board Members, is that if we do not expend the funds within a year, they'll be going back to the City for reallocation. Chairman Teele: That's what's in the funding agreement? Mr. Parekh: No. That's part of the overall reg's. of those fundings which are allocated to the CRA or any other agency. Vice Chairman Winton: Now, say that again. I didn't understand that. Board Member Gort: If you don't use it, you have to -- Board Member Sanchez: If the funds aren't used, they go back within a year. Board Member Regalado: Yeah, but when you say "use" -- Vice Chairman Winton: From what account? Board Member Regalado: Oh, excuse me, Johnny. Now, when you say "use," what you mean is within a year, those funds have to be -- Mr. Parekh: Obligated. 33 CRA 9/25/00 Chairman Teele: Encumbered. Board Member Regalado: -- obligated -- Mr. Parekh: And encumbered. Board Member Regalado: -- to one project that is going to take two years. Mr. Parekh: Yes. Board Member Regalado: OK. Mr. Parekh: But if the -- if the CRA does not start -- Board Member Regalado: Well, you know, the main function of the CRA is to do projects. So. Chairman Teele: Thank you. Capital projects. The main function of the CRA is to increase the Tax Increment District by providing assistance for projects, capital projects and those activities. Is this agreement essentially the same agreement, that all 150 agencies -- essentially? Unidentified Speaker: Essentially. Chairman Teele: And -- OK. So is there a motion to adopt the agreement or to ratify the agreement? Technically, we don't need this, I would imagine. Is this something we want to do, Mr. Attorney? William Bloom (Legal Counsel, CRA): It would be recommended. The standard agreement that the County -- the City provides requires a resolution being submitted reflecting that they're authorized. Chairman Teele: Oh. In other words, the receiver of the funds has to ratify, but the Commission doesn't have to ratify. Mr. Bloom: Correct. Chairman Teele: OK. So motion by Commissioner Regalado to approve the -- Board Member Sanchez: Second. Chairman Teele: -- Interlocal Agreement. Second by Commissioner Sanchez. Further discussion. Vice Chairman Winton: But how do we -- how do we approve it if we haven't -- We just approve it because -- because they're saying that it's -- Chairman Teele: It's standard. Vice Chairman Winton: Standard. 34 CRA 9/25/00 Chairman Teele: Standard agreement. And our lawyers have drafted it, and they're recommending it. Vice Chairman Winton: OK. All right. Chairman Teele: Objections? All those in favor, say "aye." The Board (Collectively): Aye. The following motion was introduced by Board Member Regalado, who moved for its adoption: SEOPW/CRA RESOLUTION NO. 00-92 OMNI/CRA RESOLUTION NO. 00-48 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY ("CRA") APPROVING THE COMMUNITY DEVELOPMENT BLOCK GRANT INTERLOCAL AGREEMENT ("CDBG INTERLOCAL AGREEMENT ") IN THE FORM OF EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF. Upon being seconded by Board Member Sanchez, the motion was passed and adopted by the following vote: AYES: Board Member Wifredo Gort Board Member Tomas Regalado Board Member Joe Sanchez Chairman Arthur E. Teele, Jr. Vice Chairman Johnny L. Winton NAYS: None ABSENT: None 35 CRA 9/25/00 11. DISCUSSION: PERFORMING ARTS CENTER. Chairman Teele: This, Commissioner Winton and -- Is that the Manager? Vice Chairman Winton: He's back there. Chairman Teele: This is a very good point. On Thursday, I would like to take up with the Commission the problem that I think we're getting ready to be confronted with, and that is the problem of the Performing Arts Center in total. I have met with Parker Thompson, the Chairman of the Performing Arts Center, within the last five days. They have informally come back to me and asked is there any way that the CRA can make additional funds available. There is approximately a forty million dollar ($40,000,000) deficit. I would like to discuss this during the budget hearings or in the process. But I think that from a CRA point of view, there is nothing that is going to happen in the Omni District that is more going to determine the property values than the construction or the failure to construct the Performing Arts Center. And I think it's certainly a moment of great consequence for the CRA Board in our capacity as being here to try to enhance the property values. It's the biggest -- it's the biggest generator of tax incentives that is going to happen. I want to be very clear, Mr. Manager. There is no way that I will support the CRA or the City giving one dollar ($1) for the Performing Arts Center unless and until the City and the County come to an agreement on a wide range of things. And it's the same basic issue. But having to wear the CRA hat, I think I have to express the concern that the CRA Board has to share, and that is if the Performing Arts Center is put on hold -- and that is under discussion now -- it is greatly going to affect the revenues of the CRA in the Omni. It's going to affect development. And we are obliged to work with the Performing Arts Trust, notwithstanding the fact that they are a part of the County, I guess, in trying to come up with a solution. I think there are some solutions, but again, I'm not prepared at all to advance any solutions until the City and the County come to agreement on those matters that you've been working very hard, Mr. Manager, with to try to get. And I just wanted to put that -- because our business is the Tax Increment District, and it's a big ticket item. 36 CRA 9/25/00 12. UPDATE ON INTERLOCAL COOPERATIVE AGREEMENT. Chairman Teele: Status of the Interlocal Cooperative Agreement. I think we all agreed in the last two meetings that we had to revise the revised -- this is the C -- that was -- we did the CDBG (Community Development Block Grant) agreement. But the core agreement -- Quite candidly, I don't like referring to those funding agreements as interlocal, but I guess that's the correct term of art, maybe. Richard Judy (Executive Director, CRA): It's not. Chairman Teele: It's not a correct term of art? Board Member Gort: No. Chairman Teele: I don't think it is, either. But there is only one Interlocal Agreement, really, that I'm concerned with, and that's the Interlocal Agreement between the CRA and the City, and the CRA and the County. And those are the two Interlocal Agreements that are of importance. And we have tried to get a redraft of the Interlocal Agreement, just based upon the changes that we've made. So Bill Bloom, are we going to be able to get that out of the way within the next -- Mr. Judy? Mr. Judy: Yes. We're going to be -- Chairman Teele: Would you take the mike, please. Mr. Judy: Yes. Chairman Teele: Give your name and -- Mr. Judy: Excuse me. Chairman Teele: Dick Judy. Mr. Judy: Dick Judy. We are -- as you know, we talked with the City Attorney and mentioned the fact that we're going to have a different relationship in regard to these types of internal agreements, and that we will be working the next two to three weeks, during the next two to three weeks finalizing it. And there were some -- there were some decisions that had to be made that -- especially in regard to the settlement that was reached in regard to the transfer of the Arena property, the CRA. That's been done. And the resolution states it will be included in the Interlocal Agreement. So those things are coming together. Chairman Teele: Well, the issue is, when will we have a redrafted and recast -- and I think the Manager asked you to work with Mr. Nachlinger on the financial issues when we first agreed on this. And that was -- what? -- in June or July? When did you first come in? July? So we need to get this done, please. And we need to codify what we're doing, please. Further discussion? All right. 37 CRA 9/25/00 13. DEFER CONSIDERATION OF REQUEST TO EXPAND FOOTPRINT OF LYRIC THEATER AND PARKING LOT. Chairman Teele: Commissioner, on number 9, is a request by the Lyric Theater. Dr. Dorothy Fields, the founder of the Black Archives is present with us. Dr. Fields has a request. Dr. Fields, would you like to just very briefly? Robert Tyler (Director, Operations, Administration & Development, CRA): Mr. Teele, I spoke with Dr. Fields and her group, and they are willing to defer this item for another month. It's an item that involves litigation, so counsel is advising the same. Chairman Teele: All right. Let me ask this: Mr. City Attorney, are you familiar with the case of the City of Miami versus Circa Sawyer? What is it? Circa Barnett? What was it? Alejandro Vilarello (City Attorney): Circa, Barnes, Sawyer. I'm generally familiar with it. Chairman Teele: How much money did the City pay out? Mr. Vilarello: I believe the judgment was approximately two point three million dollars ($2.3 million). Chairman Teele: And the basic principle was a development right that we, the City Commission, had awarded in which the plaintiff alleged that the City and the CRA were never serious about helping them to develop what they were going to develop, and that we frustrated their attempts. Is that essentially one of the principles? Mr. Vilarello: Generally, there was a development right awarded, and the City Commission improperly terminated those development rights. So they were awarded damages in regard to the termination of the development rights. Chairman Teele: And the property that is in question is subject to a second or another development right. Mr. Vilarello: Well, as I understand, there is an RFP (Request for Proposals) that's been issued. I take issue with whether or not there is a development right there or not. However, in an abundance of caution, I've authorized special counsel to proceed with a declaratory judgment to deal and extinguish those rights prior to any additional action by the City -- the CRA, in order to avoid a potential Circa, Barnes type resolution. Chairman Teele: All right. Then the question in my mind is why did this resolution get on the agenda? Because this resolution, itself, could be introduced as evidence. And Mr. David Days, the Executive Director of St. John's is standing there very hawkish -looking at this moment. And I -- Mr. Days, I want to respect you. Did you want to say anything, in that all of the land around the Lyric Theater is the subject matter of a discussion involving the St. John's CDC (Community Development Corporation). Welcome, Mr. Days. David Days: Thank you. David Days, 1324 Northwest 3Td Avenue, Miami, 33136. St. John's Community Development Corporation has an agreement with the City to develop those two lots, the one 38 CRA 9/25/00 that sits where the Lyric Theater is sitting on, and the one to the north of that. We've been working with the Lyric Theater in order to try to get this deal done that they want to get done. But we certainly would like for the City to respect the right that we at this point hold the development rights to that project. Chairman Teele: And as you've heard, our lawyer does not agree that you hold the development rights. But I will tell you that this Board has no intention of doing anything to frustrate your efforts to develop the rights that the City of Miami awarded to you. You know that we have certain issues of timing, et cetera which we've raised privately. But I would hope that in the future that you or the St. John's CDC and the Lyric Theater would try to work out these agreements without bringing them either to the City Commission or the CRA, until we've had a determination or an agreement between the City or the CRA and St. John's. Mr. Days: Thank you very much. Chairman Teele: OK. Mr. Days: I have talked to -- well, your Attorney has talked "at" me several times about this deal. But when it comes to Mr. Bloom, he doesn't seem to agree with St. John in this issue on anything. But we certainly feel that we have the right. And what we don't want to do is to go tie this up to where nobody is going to develop this. But we plan to develop that property with the Lyric Village and our original development partner. Vice Chairman Winton: When, Mr. Days? When do you plan on developing this project? Mr. Days: Soon, sir. We -- Vice Chairman Winton: What does that mean? Mr. Days: I can't give you a date in terms of construction, but we have met with our -- the original partner, and we are putting together -- we're getting our diligence as far as the legal paperwork is going. But we are in the process, and we will be coming back to the CRA within the next couple of months with our full team and some ideas. The Bank of America has bought into this project. They are on board and ready to do all the finances. So we are ready to go with this project. I'll be back within two months with a deal to show that this project is on board. Board Member Gort: Mr. Chairman. Board Member Regalado: Mr. Chairman. Chairman Teele: I would only say this: I think we, as Board Members, probably should be very careful in our discussion with either Mr. Days or in the public in a meeting of this nature, in that we've already voted, if I can remind you, to seek a judicial review of where -- whose rights are what in this case, and in the case across the street. This is not pleasant for any of us. It's certainly very painful for me, personally. But I think the only point we want to make is that this Board is not going to, nor have we ever entertained anyone doing anything on that property while your rights are at least being asserted by you. And we're going to try to clarify what your rights are and what our rights are. 39 CRA 9/25/00 Mr. Days: Thank you very much. Chairman Teele: Commissioner Gort. Board Member Gort: Mr. Chairman, I'd like to address a point. It doesn't have anything to do with this property, but then maybe it can be adopted. One of the things that we have been able to do within certain areas within the City of Miami is people interested in the bottom floor, because of retail use or because of whatever use it is. They're not interested in the air rights. And I think a lot of the -- We have been able to accomplish quite a bit by doing joint ventures, where one party has the bottom floor, to do the expansion, whatever they need to do so, and utilizing and then giving the air rights to the different individuals so they can go ahead and construct housing on top of that. And those joint ventures have worked very good. It's just food for thought. Chairman Teele: All right. Board Member Regalado: Mr. Chairman. Chairman Teele: Commissioner Regalado. Board Member Regalado: I think that without going into uncharted waters on the legal issue, I think that people have to understand that the question that Vice Chairman Winton asked as to when is the key issue in all these projects. And I think that also, this Board has sent a clear message by, I believe, was meetings that the Historical Society had with the Board Members that we want and we are committed to a better Lyric Theater. And I think that -- that the fact that this Board will say that publicly will not in any way affect this legal issue. But I, for one, I think that whatever it takes, it should be done to have a better and bigger Lyric Theater. And I hope, Mr. Chairman, that we could request that -- the gentleman said two months -- that within 30 days, on the next meeting, we will have a report of what has been done in terms of reaching any agreement, if there is an agreement to be reached, because I think that we have also to understand that the people who want to expand the Lyric have a deadline in terms of state funds. And remember that we had that with the Tower Theater on Southwest 81h Street. So I would request that in the next meeting, within 30 days, we will have an update report. And then the Board can decide, you know, if we should press either party or some issue. But I think that, Mr. Chairman, the concern of the Board here is time, because we sat here for many, many years, and it's frustrating not to see projects go up. So I just hope that in 30 days, we will have some information, some good information, facts about what is going on with those issues of the St. John's and the Lyric Theater. Chairman Teele: Yes. Thank you very much. And I fully agree. Further discussion? 40 CRA 9/25/00 14. STATUS ON PROCUREMENT OF SERVICES PROVIDED BY GREATER MIAMI SERVICE CORE -- COMMENTS REGARDING SIDEWALKS, SWALE CLEANUP, ETC. Chairman Teele: Let's move through the agenda. We've got a busy week this week. So the next item is item number 10, the status of the Greater Miami Service Corps. What's the brief status? And can we just sort of put that on hold for the time being? Because again, this is the maintenance issue, right? Robert Tyler (Director, Operations, Administration & Development, CRA): Yes. And negotiations have stalled. And actually, we're exploring other options, like perhaps piggybacking off a maintenance agreement that the City may have with various vendors. Chairman Teele: All right. One of the issues is that a lot of property owners, particularly in the Omni, have expressed a need that the CRA needs to do more in the area of maintenance to augment whatever the City is doing. This is also, I think, going to be true in Overtown and in Park West. And it was thought that maybe we could work with Greater Miami Service Corps to provide more support in keeping the sidewalk swale areas and streets cleaner in those areas, to augment whatever the City is doing. 41 CRA 9/25/00 15. (A) AUTHORIZE CRA TO ISSUE REQUEST FOR QUALIFICATIONS FOR DESIGN AND CONSTRUCTION OF OVERTOWN TECHNOLOGY CENTER. (B) CRA ADMINISTRATION TO ESTABLISH SPECIAL COMMITTEE FOR PURPOSE OF EDUCATING PUBLIC REGARDING TECHNOLOGY; SUGGESTING THAT BOARD MEMBER BE DELEGATED TO HEAD THIS INITIATIVE IN CONJUNCTION WITH SCHOOL BOARD -- NEED TO ADVERTISE. (C) PROBLEMS RELATED TO HOMELESS PERSONS. Note for the Record: Board Member Sanchez exited the meeting at 6:35 p.m. Chairman Teele: Item number 11. Robert Tyler (Director, Operations, Administration & Development, CRA): Mr. Chairman, this is a resolution authorizing the CRA to move forward with the design bill, RFP (Request for Proposals) for the Cultural and Technology Center. Chairman Teele: Motion? Board Member Regalado: I'll move it, Mr. Chairman. I just want to say for the record that Board Member Sanchez had to leave, because of a family emergency. He had to go see his kid. So he won't be here for the rest of the meeting. Chairman Teele: All right. Discussion. Vice Chairman Winton: And I'm sorry, I didn't get a chance to review this agenda ahead of time, because I don't know -- some may have gotten theirs on four days, but I got mine Friday, and I wasn't in the office on Friday. So my apologies to everyone. Just refresh my memory on this building again. Chairman Teele: All right. You remember we had the consultant to come in from Northwestern University? Vice Chairman Winton: Right. Chairman Teele: Dr. Williams. One of the things that was in the citizens input process that went on three years ago was the need for a culture facility. The Parks Department does an outstanding job of providing football, and basketball and baseball facilities. But Overtown, the word, "Overtown" is synonymous with culture. It's synonymous with nightclubs. It's synonymous with entertainment, and dance and theater. And so one of the things that came out of the planning process that Bermello Ajamil led two years ago -- two and a half years ago -- was the need for some type of culture facility. There are a lot of people in Overtown who have dance and other kinds of areas, expertise. And so there was a culture facility planned at Parking Lot Number 3, which is the lot just to the north of Jackson's Soul Food Restaurant, the big area there, and just to the west of the Solomon Yukon Apartments there, that large area there, which would be right next to the expressway. And that proposed facility was approved as a part of the plan three years ago -- two and a half years ago -- and has come forward. When the NAP (Network Area Point) process came on line, the concept then became very clear that rather than just doing a culture, we would do culture and 42 CRA 9/25/00 technology, because those two things work well together. And we have had a number of major Fortune 500 type of telecommunications companies to say to us, "We would like to participate in providing training. We'd like to participate in providing hardware, software, et cetera." Now, the important thing is this: This is a parks and culture facility. And there's going to have to be a negotiation, and there was a negotiation two years ago when this thing was first put down with the Parks Department. One of the things that I'm concerned about is the building needs to be pretty much self-sufficient. We cannot continue to run the deficit in the Parks Department. They're capital rich and operational dollars broke. And one of the things that the NAP process does is provides us also with opportunity to provide grant opportunities for us. It is envisioned that this facility would wind up being a culture facility as well as a technology facility. Is Dr. Fields still here? Board Member Gort: She left. Chairman Teele: Is anyone here from the Lyric Theater? Board Member Gort: She left. Chairman Teele: One of the problems with the Lyric Theater that the Lyric Theater has, and this is -- Back in '93, we had the firm of Jewels Fischer to do the study of the existing Lyric Theater -- is that there are very few ancillary facilities. In other words, even though the Lyric calls for an ancillary building, which would be built on the, I guess, northern side of the existing Lyric Theater, there is not going to be any area for stage props to be made and stored. There are a series of ancillary type of activities. And one of the things that we wanted to do with the culture and technology facility is insure that everything that Jewels Fischer said needs to be addressed that we also address those. So in some ways, there is going to be a linkage in providing, you know, like manufacturing of sets, set preparation, that kind of stuff that goes on in a theater. By the way, at the Caleb Center, all of those things are done at the Cultural Arts Center, which is about -- what? -- ten blocks away. And so one of the things that we want to make sure of in our Culture and Technology Center is that we work with the Lyric Theater, and we look at the Jewels Fischer study. And anything like storage area for props, manufacturing of props and all of that will be available for the Lyric, so that it also fits in that. So it will fit in with the NAP concept, and will fit in with what we can perceive to be a long-term need, something the public was very, very strong on in that regard. Vice Chairman Winton: Thank you. Board Member Gort: Mr. Chairman. Chairman Teele: Commissioner Gort. Board Member Gort: One of the questions that I have, in order to increase the dollars coming into the districts, we will try to, if possible, later on, that a lot of those things that we get started, convert it into the private sector. Like that's what you all are talking about, the -- Chairman Teele: Can I tell you something? That is absolutely what we should be thinking about. When we talked about building the shopping center there on 3rd Avenue and 12tn, the whole concept was we would even build it with a view that we were going to bring in a developer to buy it away from us after five years. 43 CRA 9/25/00 Board Member Gort: Right. Chairman Teele: Anything that the CRA does needs to have an exit strategy built into it. Board Member Gort: Right. OK. Chairman Teele: In the case of a parks facility, however, that would be something we'd work on with the Parks Department. But we really do believe that the technology needs provide some opportunity for funding of companies. So the idea would be that we would have a design bill process. Dr. -- what's her name? Mr. Tyler: Williams. Chairman Teele: Dr. Williams would be very much involved in it. Bryan Goodkind and the people at the NAP have volunteered to work with us. I was over at the telecommunications research company for the Bell Laboratories today. We talked about this, and there is just a lot of enthusiasm for this. But let me just say this: We need to set up a special committee. And I commend you, Commissioner Gort, as Chairman of the DDA (Downtown Development Authority) on the charter school context that I've read about. We need to set up a very special committee to deal with the overall issue of training and education as it relates to technology. Vice Chairman Winton: Technology. Chairman Teele: Because if we don't do it, it's not going to get done. Board Member Gort: Sure. Chairman Teele: And we've got to provide the leadership, we, the CRA. The one thing that everybody is looking for is a major technology training facility. Now, I know that they are talking to the City staff about using some of the space that the City ordinances require there be retail on buildings, and they're talking about flipping the retail into a training laboratory right there at the NAP. But we need to talk, and we need for someone on this Board to take the initiative to look at a major Countywide or at least Citywide initiative on education. It's going to have to be done in conjunction with the School Board, and Miami -Dade Community College and the private sector, because there is a crying shortage right now of the training facilities and people to run the NAP concept. Vice Chairman Winton: Actually, I've had several meetings with Diane Sanchez and -- the lady's name escapes me -- from the Bell Labs group. Chairman Teele: Yeah. Vice Chairman Winton: Whatever that new company name is. And I've talked to her today. She was in Chicago today but -- Chairman Teele: Telecordis (phonetic)? 44 CRA 9/25/00 Vice Chairman Winton: Yes, exactly. Chairman Teele: Telecordis Technology. Vice Chairman Winton: Right, right. And they have one person that's focused -- the Telecordia group has one person focused on this whole training part, completely. But the discussions we've been having here are revolving around all the players is, first of all, to identify all the players that we can bring to the table to see to it that we design a training program and we have a training consortium that will be responsible for the ongoing -- for the initial creation and ongoing management of this whole training program for technology. So Commissioner Teele, that process -- so I think you're right. I think that we ought to figure out who we want to make sure that we have sitting at the table, because there isn't any reason for two or three of us to run off doing the same thing. We'll duplicate things. So we ought to figure out who that lead person is going to be, and hand that responsibility off, and make sure that whoever that is reports back to us periodically. Chairman Teele: Well, I would hope that each Board Member will consider this. And we ought to put a discussion item. The problem is much bigger than we're discussing now. I mean, it's much more complicated. So like we've met the enemy, and the enemy is us. I mean, the School Board, Miami -Dade Community College, FIU (Florida International University), University of Miami. Vice Chairman Winton: FAU (Florida Atlantic University). Chairman Teele: FAU. Vice Chairman Winton: They're all kind of sitting at the table right now, but they're not together yet. Chairman Teele: But the problem is this: The facility, the landmark defining facility is right in the heart of the City. It's right in the heart of the CRA. And if we don't get this thing moving, we're going to have a unique problem of just trying to get people in here. Vice Chairman Winton: Well, one of the things that they're doing also is they're in negotiations with Miami -Dade Community College to use the ground floor retail -- the ground floor space that's earmarked for retail. Chairman Teele: Right. Vice Chairman Winton: Well, there's no retail demand, so there's -- nobody's going to rent that retail space. It was earmarked for that. Chairman Teele: Well, but that's what your City ordinance requires. Vice Chairman Winton: Well, and we should require that. Too bad there's no demand right now. But when the demand comes, you can knock the false walls out and use it for retail. But they're in negotiations with them to use a big chunk of that space specifically for a major component of training in 45 CRA 9/25/00 this particular area. Now, there will be training satellites, hopefully, all over the -- all over the region here. But we want to make sure we have a significant chunk of that right here in our back yard here. Board Member Regalado: And Mr. Chairman, if I may. It's -- this probably will seem to us maybe another project, but I think this kind of project will catch fire throughout the media eventually, and Miami should be lucky. And I think that, you know, we have just taken for granted that we were selected, and that's that, and we are going to go through the process, and when it gets done, it gets done. I think that because it's on the CRA boundaries, I would hope that we can do at least, or try to work with DDA and the City in order to publicize this, to do a PR (public relations) campaign that would tell the world and the country what we're doing here. I mean, send pictures to every -- you know, that there are specialized media outlets that would pick up stories on this as it goes through the production and the construction process. I will tell you that we're missing here a huge public relations coups. And I would hope that this Board -- because I think that in the City, we don't have the facility to do this kind of PR. But I think that this Board will try to do something within the next 30 to 60 days to organize tours, bring out reporters, show the sites and explain to the people through the media what this is. People don't know what this is. And, you know, they're going to steal the thunder from us, someone. Someone from the County is going to come and, you know, the Mayor from the County, and they're going to do this and do that. And it's fine, because what we want is the things to get done. But I think that we're missing here a big opportunity of showing the good side of the City of Miami. And the CRA, I think, is the vehicle to do this. So I would request -- If you want, Mr. Chairman, I can just send some ideas to the staff of the CRA to see how can we implement this, in order to work with other local agencies to publicize this. Vice Chairman Winton: Mr. Chairman. Chairman Teele: Commissioner Winton. Board Member Regalado: And you know, Johnny was mentioning the fact that Miami -Dade Community College -- I mean, Miami -Dade Community College, the two major outlets of Miami -Dade Community College are within the City of Miami -- the Downtown and the newly constructed and expanded Latin Hispanic in Southwest 271" Avenue. I would think that Dr. Padron and other people would be very enthusiastic working on this issue. Chairman Teele: Well, it's very clear, we probably should look at putting together a working group and not just talk about this. But I really keep coming back to the fact that the Dade County School Board also really should be directly involved in this. Because one of the problems -- and I don't -- you know, I want to be very candid about this. One of the problems with this whole technology issue is nobody lives in Park West. I mean, there probably aren't -- with the exception of the Camillus House, which I think all of this discussion needs to be held in the context of the Camillus House, and the context of the proximity of the Camillus House to this NAP. And, you know, this is a classic example of how government is investing, you know. This is a two hundred to two hundred and fifty million dollar ($250,000,000) investment. And we're sitting around here arguing over two million dollars ($2,000,000). The NAP construction is fifty million dollars ($50,000,000) and the build -out is a minimum of a hundred and fifty million dollars ($150,000,000). That's the number that they're giving. And it will probably go to two hundred million. And, you know, we have to bear some of the responsibility for the Camillus House problem. And that is going to be a permanent anchor on the potential. You know, everything that you're talking about, Tomas, I fully agree with you. And I hope that the staff, and Hilda and others will listen 46 CRA 9/25/00 closely to what you're saying about this. But we also have to be very cognizant of the image that we are presenting. The people today told me, Johnny, that as a result of the NAP that Miami is now listed as one of the top five cities in the world for technology, innovation and technology development, along with Tokyo, Frankfurt, New York and wherever else. And we need to be mindful of the fact -- and I'm not saying this with any disrespect to the Camillus House, but we need to be mindful of the fact that only in Miami would you create a signature technology, job creation, cutting edge, and have right next door, literally right next door, literally, a Camillus House. I mean, that is a testimony of our inability to function and to act as City Commissioners and as redevelopment, and quite candidly, as community leaders. So I hear what you're saying. I know what you're saying is right. There is no question that everybody in this town is now trying to figure out how to get their hands into Park West. I mean, Park West laid there for 20 years, and nobody cared about it. Now, everybody from the County to every developer in this town is ready to fight over Park West. And Mr. Manager, you know, just be very careful, because if you're standing around, you're going to get run over by a bunch of people trying to get down to steal whatever is left in Park West. Property values are beginning to churn up down there again. So we have a unique opportunity. But I also think before we start crowing too loud, we got a lot of work to do. And the Camillus House is the biggest deterrent to an increase in property values in the entire Overtown/Park West scenario. And it just amazes me how people can get so misled and misinformed, and refuse to understand that whatever happens in Park West will fund what goes on in Overtown, because Park West is going to be built out in five years. Vice Chairman Winton: I think that not only Camillus House, that whole -- the whole homeless issue is a very serious issue in that part of the City of Miami. I had a meeting with a group of City staff and downtown folks this morning in my office, and we've got some serious problems. This whole -- the idea that the hack is on the verge of solving our homeless problem in the City of Miami is just absolutely wrong. Chairman Teele: It's a great PR story. Vice Chairman Winton: It's a great PR story. And I think as the CRA, in fact, we might want to put homelessness on the agenda at the next meeting, because it's not on this agenda, and I don't want to go off on a (inaudible)here. Board Member Gort: Gentlemen -- Vice Chairman Winton: But it's a serious, serious issue, and we've got to address it head-on, or we're going to pay a lot of penalties. Board Member Gort: Gentlemen, let me tell you, you can get rid of Camillus House, and you're still going to have the same problem. The biggest problem that we have is anyone that gets picked up anywhere in Dade County is processed on 121" Avenue and 12th Street. And when they're let go, they're going to walk into our neighborhoods. And at one time, Dade County used to process north of here and west of here people who they picked up, and other municipalities far, far away from the City of Miami, and were taken care of over there. Now, the people in those neighborhoods, when they started seeing what was taking place, they started to call on their Commissioners, and everything came back to the central business -- to the central station here. We at the DDA, it's a problem we've been dealing with for a long time. We've been talking to the judges. We've been talking to the County. And the County needs 47 CRA 9/25/00 to somehow, those people who are picked up in Naranja, Miami Beach, Opa Locka or any other place outside of the City of Miami should be sent back to that location, and not let go on 13th Avenue and 12th Street. That's the biggest problem that we have. And you're right; we have to deal with that. Chairman Teele: Well, I got to say this, though. I'm not sure that we have that problem all over downtown. And the reason you don't have the problem is you have activity. What the NAP represents and what the Nightclub District represents is activity. We can remove the homeless problem from Park West with the right kind of infrastructure and support. To me, the thing that I think we all have to ask ourselves very, very seriously is, what is a better expenditure of funds than to support the Camillus House in building a facility that's first class that -- Vice Chairman Winton: That helps deal with the problem. Chairman Teele: -- that helps with the problem? I mean, and we get into this blaming of the Camillus House. I'll do a land swap. I mean, I'll arrange for a third -party buyout. That doesn't -- any of those things are options. But I think to do nothing, which is what the City of Miami has done for the last ten to 15 years with the Camillus House -- Vice Chairman Winton: Is wrong. Chairman Teele: -- is the greatest tragedy or the greatest wrong that we can perpetrate. Vice Chairman Winton: Right. Chairman Teele: And I would invite the Manager and his staff, and Community Development. We need to prioritize the Camillus House to receive funding to get a capital program, and get this thing done. It's going to increase our property values. We can get them in a more appropriate location. But -- Vice Chairman Winton: And helping with the problem. Chairman Teele: And help with the problem. And the 9th Street Mall -- anybody who believes that the homeless is solved, just drive across the street here. Walk across the street as you leave this building to the 91h -- and walk through the 91h Street Mall. The 9th Street Mall has become the Fountainbleau Hilton for the homeless in Miami. So we have a problem. The resolution reoccurs on item number 11 to approve the RFP -- RFP, RFQ to design -- a design bill, by definition, must be an RFQ, by law. Robert Tyler (Director, Operations, Administration & Development, CRA): Yes, sir, you're right about that. Yeah. Chairman Teele: So that's not an RFP. That's an RFQ. Mr. Tyler: It's RFQ. Board Member Gort: RFQ, that's what it says here. 48 CRA 9/25/00 Board Member Regalado: Mr. Chairman, before we vote on it, just a brief note for the record and for the members of the Board. The City Commission a month ago created the Economic Development Committee, and I wanted to tell you that the Committee recently had a meeting with a delegate of the Technology University in Haifa, in Israel. And they are willing to send visiting professors to the City of Miami, because we told them about the NAP and about the possibility of needing some help from them. And I'm telling you, the Haifa University is one of the most advanced, highest centers of education in technology in the world. And they are willing to send visiting professors to the City of Miami. So that will be in the report that the Economic Development Committee will be giving to you. But I'm telling you that we can make a big thing out of this, and I hope that -- Chairman Teele: And we should. Board Member Regalado: We should. Vice Chairman Winton: Now, I meant to say one thing about that, Commissioner Regalado, and that is that you were saying we should do it in the next two or three weeks, or month or whatever. And what we have to do is make sure that we coordinate with both the developer of the facility and the users, because we don't want to jump the gun, either. Board Member Regalado: No. What I was saying, Johnny -- Vice Chairman Winton: It isn't all solidified exactly in concrete. Board Member Regalado: No, no. But what I was saying is just to prepare a package of what -- this is it. Because nobody knows. I mean, if you ask the people, "What is the NAP?" They say, "Well, I don't know what is the NAP." I mean, they think it's an auto part, you know. But prepare a package of what is it, what is going to happen, you know, what is the purpose and why it's in Miami, you know, all those things, and start working on a public relations campaign. Vice Chairman Winton: Right, right. Chairman Teele: I think Tomas is 100 percent right. And I think the whole issue is that we really need to take a step back and put together a strategic plan of the CRA around the NAP. And how do we -- how do we coordinate the resources? The biggest problem that we have is just receiving resources. There's so many resources out there. Somebody visited with you recently, Bob. I saw an E-mail or something about some technology company out of Fort Lauderdale that wants to make -- Mr. Tyler: Yes, sir. I invited them here today. Chairman Teele: -- training. And so there's just a series of activities like this. And I think we need to do that, and I think it needs to be closely coordinated with the DDA, as well as with the Economic Development Committee. The motion reoccurs on item number 11. Did it carry? All those in favor, say aye. 99 The Board (Collectively): Aye. 49 CRA 9/25/00 Chairman Teele: Those opposed? Walter Foeman (City Clerk): You need a seconder, Mr. Chairman. Chairman Teele: The mover was Commissioner Regalado. Mr. Foeman: Regalado, yes. Chairman Teele: Seconder? Mr. Foeman: I need a seconder. Vice Chairman Winton: Second. The following resolution was introduced by Board Member Regalado, who moved for its adoption: SEOPW/CRA RESOLUTION NO. 00-93 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY ("CRA") AUTHORIZING THE CRA TO ISSUE A REQUEST FOR QUALIFICATIONS ("RFQ"), IN THE FORM OF EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF, FOR THE DESIGN AND CONSTRUCTION OF THE OVERTOWN TECHNOLOGY CENTER, WHICH WILL CONSIST OF A BUILDING OF 10,000 SQUARE FEET TO HOUSE A CULTURAL AND TECHNOLOGY CENTER (THE "TECHNOLOGY CENTER"). (Here follows body of the resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Vice Chairman Winton, the resolution was passed and adopted by the following vote: AYES: Board Member Wifredo Gort Board Member Tomas Regalado Chairman Arthur E. Teele, Jr. Vice Chairman Johnny L. Winton NAYS: None ABSENT: Board Member Joe Sanchez 50 CRA 9/25/00 16. (A) AUTHORIZE EXECUTIVE DIRECTOR OF CRA TO WORK WITH VICE CHAIRMAN OF CRA BOARD TO IMMEDIATELY NEGOTIATE INTERIM AGREEMENT FOR PARKING TO BE PROVIDED FOR 300 TO 500 CONSTRUCTION WORKERS FOR PROPOSED NETWORK ACCESS POINT (NAP) FACILITY. (B) AUTHORIZE CRA TO ISSUE A REQUEST FOR PROPOSALS FOR PROVISION OF PARKING MANAGEMENT SERVICES FOR PARKING LOTS OWNED BY CRA. Chairman Teele: I would like to take 11, 12 and 15 as one packet. Commissioner Winton, I'm going to address this to you, because I'm going to ask you to basically coordinate. You know, somebody needs to get Mr. Judy. You know, we don't have but one Board meeting a month. I have a hard time believing there's something more important out there. I think it's very important that everybody on the staff stay focused on this Board meeting, and the lawyers and all of that, because we don't meet but once a month, and then things don't happen, and everybody doesn't understand. I think it's very important that we live up to our commitment that we've made to the NAP. Now, Mr. Manager, according to the people today, they are actually one or two days ahead of schedule. And they attribute that to the outstanding coordination of the City of Miami staff. And this is not the time or the place to get into that, but you know, this is something that -- this is literally a race to the market. And they're going to be making an announcement, perhaps within the next two or three weeks about an interim facility, because as you know, the competing NAP is announcing or is opening up on January 1. So this is not over, I mean, and everybody is trying to get the top companies here in downtown Miami. And there is the so-called virtual NAP activity that is very much a part of all of this. The biggest problem that they're having right now is parking. Now, I would never request or even suggest that the police should not be giving tickets. The police have a job to do, and they have to do their job. But notwithstanding that, they have attempted to make an agreement with us on parking. And this is the problem, and I want to put it on the table, because I want Commissioner Winton to coordinate the financial resource package for the NAP as we go forward. The CRA has sufficient space to provide for parking. However, I am very careful about trying to make sure that everything that we do as it relates to the NAP is transparent; that is, it's public, it's a document, there is a memorandum, there is a Board action, et cetera. And one of the sensitive issues, of course, is "Give us the parking, and that'll be great." Well, my response to that is the City should not give away a commodity that has value. We should never do that. And we should not undermine an industry that is paying taxes to us by doing that. I've said to the builder that my understanding is that the market is about eight dollars ($8) a day per space. They said it's two dollars ($2) a day per space. And I asked them to go out and get quotes, and they're going to come back in with bids that essentially will probably be around three dollars ($3) a day for -- Vice Chairman Winton: It's in that area. Chairman Teele: In that area. I've also said that I don't think the CRA should be at the bottom of the market. We should be in the center. We shouldn't try to be the cheapest. We shouldn't try to be the highest. In any event, I would hope that we would, by motion, authorize the Executive Director, working with the Vice Chairman of the Board to enter into an interim agreement immediately for parking for the construction of businesses or construction workers at the NAP, subject to us ratifying it and working out a board on the rate. Board Member Gort: Move it. 51 CRA 9/25/00 Chairman Teele: And that would be moved by Commissioner Gort, seconded by -- Vice Chairman Winton: Second. Chairman Teele: -- Commissioner Winton. And the motion essentially authorizes the Executive Director, working with the Vice Chairman of the Board to enter into an interim agreement for parking. And that would be parking of 300 to 500 cars per day. Three hundred to 500 cars per day is going to be about thirty thousand dollars ($30,000) a month. So you can see that this is a real commodity. Now, the other thing that I -- All those in favor of the motion, say "aye." The Board (Collectively): Aye. Chairman Teele: Those opposed? The following motion was introduced by Board Member Gort, who moved for its adoption: SEOPW/CRA RESOLUTION NO. 00-94 A RESOLUTION OF THE BOARD OF DIRCTORS OF THE COMMUNITY REDEVELOPMENT AGENCY ("CRA") AUTHORIZING THE EXECUTIVE DIRECTOR OF THE CRA TO WORK WITH THE VICE CHAIRMAN OF THE CRA BOARD TO IMMEDIATELY NEGOTIATE AN INTERIM AGREEMENT FOR PARKING TO BE PROVIDED FOR 300 TO 500 CONSTRUCTION WORKERS FOR THE PROPOSED NETWORK ACCESS POINT ("NAP") FACILITY BEING DEVELOPED BY THE TECHNOLOGY CENTER OF THE AMERICAS, SUBJECT TO APPROVAL BY THE BOARD OF DIRECTORS OF THE FEE TO BE CHARGED FOR SAID PARKING SPACES AND THE FORM OF THE AGREEMENT. Upon being seconded by Vice Chairman Winton, the motion was passed and adopted by the following vote: AYES: Board Member Wifredo Gort Board Member Tomas Regalado Chairman Arthur E. Teele, Jr. Vice Chairman Johnny L. Winton NAYS: None ABSENT: Board Member Joe Sanchez Chairman Teele: The other thing that I ask is that, so that we have transparency that whatever agreement we reach with them, Johnny -- and this is up to you. You make whatever deal you want -- but they would pay at least 20 percent of the parking amount in cash, so that we're not into an issue where we gave them 52 CRA 9/25/00 something. I mean, we'll have documentation, but they will, in fact, pay us at least 20 percent in cash. The reason for that is they have a credit, as you know -- Vice Chairman Winton: Right. Chairman Teele: -- against the seven hundred and fifty thousand dollars ($750,000). But I wanted to be very real as to what we're charging and what we're not, so nobody would come back a month later and say -- because one parking person is already very upset, and you don't have to -- won't take you long to figure it out. Why should we compete with them? We pay taxes; we do this. Why should the CRA or the government be in competition with parking businesses? And the simple fact of the matter is, we don't want to be in competition, but we do want to facilitate the building of the NAP. We have the space, and it's more convenient for them to work with us than to work with anyone else. So those are the kinds of policy issues that need to be very, very clear and written up. At the same time, this Board approved a grant of seven hundred and fifty thousand dollars for the Dakota, the Technology Center of the Americas with the understanding that we would go up to an additional seven hundred and fifty thousand dollars ($750,000) based upon the NAP. So we've not brought back the issue of the NAP yet, but obviously, when you get down to all of these negotiations and discussions, they're going to wind up paying probably close to four hundred thousand dollars ($400,000) for the next two years just for parking, because this is just the construction. The build -out is another year that the various tenants will have, which is the NAP part of it. So it's a much longer -term issue. At the same time, we are seeking to go out and to get a Manager for our parking infrastructure. As you know, the amount of money that we received from all of our lots over the last two years is approximately? Mr. Tyler: Somewhere around a total of one fifty, eighty-one year and seventy, I believe, the prior. Chairman Teele: Well, seventy thousand dollars ($70,000) a year. So as you can see, between the deal that we've done with Greyhound or Kelly, which is approximately ninety thousand dollars ($90,000) for one year, for just that one lot, for just part of that one lot, plus this deal of thirty thousand dollars ($30,000) a year, and we haven't even talked about the event parking yet. The CRA clearly has not been very diligent in managing this parking resource. So what we're proposing to do is to go out with an REP that would provide for parking management services. The parking management services would require that the payment must be in excess of a hundred and fifty of what has been paid annually. And -- (INAUDIBLE COMMENT) Chairman Teele: One twenty-five. William Bloom (Legal Counsel, CRA): Commissioner, the description of it contained in the agenda is different from the -- Chairman Teele: Why don't you describe it just very briefly. But the bottom line is this: Currently, our parking resources are managed by Off -Street Parking. Off -Street Parking has indicated that they realize that given the unique nature of this resource that we have that we would possibly be better off with a more entrepreneurial or a different type of company managing that. So there's not -- there's no objection. They would be free to bid on it. 53 CRA 9/25/00 Board Member Gort: Move it. Chairman Teele: But we're establishing a minimum bid of at least a hundred and twenty-five thousand dollars ($125,000). Vice Chairman Winton: Second. Chairman Teele: Move and seconded. All those that object, say "aye" -- All those in favor, say "aye." The Board (Collectively): Aye. Chairman Teele: Those that object? The following resolution was introduced by Board Member Gort, who moved for its adoption: SEOPW/CRA RESOLUTION NO. 00-95 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY ("CRA") AUTHORIZING THE CRA TO ISSUE THE ATTACHED REQUEST FOR PROPOSALS ("RFP") FOR THE PROVISION OF PARKING MANAGEMENT SERVICES FOR THE PARKING LOTS OWNED BY THE CRA, WHICH RFP WILL REQUIRE: (A) THE SELECTED RESPONDENT TO PAY TO THE CRA AN ANNUAL PAYMENT IN AN AMOUNT EQUAL TO THE GREATER OF (I) 150% OF THE ANNUAL AMOUNT CURRENTLY PAID TO THE CRA BY THE DEPARTMENT OF OFF-STREET PARKING ("DOSP") OR (II) 90% OF THE REVENUES GENERATED BY THE PROPERTIES WITH THE FIRST YEAR MINIMUM PAYMENT TO BE PAID IN ADVANCE; (B) WITH AN INITIAL TERM OF ONE (1) YEAR WITH FOUR (4) ONE (1) YEAR RENEWAL OPTIONS; AND (C) WITH THE SUCCESSFUL RESPONDENT BEING RESPONSIBLE FOR OVERSEEING MAINTENANCE OF THE PROPERTIES. (Here follows body of the resolution, omitted here and on file in the Office of the City Clerk.) 54 CRA 9/25/00 Upon being seconded by Vice Chairman Winton, the resolution was passed and adopted by the following vote: AYES: Board Member Wifredo Gort Board Member Tomas Regalado Chairman Arthur E. Teele, Jr. Vice Chairman Johnny L. Winton NAYS: None ABSENT: Board Member Joe Sanchez 55 CRA 9/25/00 mm 17. AUTHORIZE CRA TO REQUEST THAT CITY PROVIDE GRANT, $375,000, FOR PURPOSE OF FACILITATING DEVELOPMENT OF TECHNOLOGY CENTER OF THE AMERICAS. Chairman Teele: Now the next item is item number 15. And this is a request. Now, this request is a naked request. We cannot compel or require the City to do this. But in the early discussions when we reached the seven fifty -- Were you the Manager then, Mr. Manager, or was that a different Manager? Carlos Gimenez (City Manager): No, I was the Manager. Chairman Teele: You were the Manager? We dealt with Frank Rollason. One of the things that we looked at in how we came up with the seven fifty is that we estimated that the building permit would be approximately three to four hundred thousand dollars ($400,000). The building permit, in effect, is the cost of the money that the developer is paying to the -- or has paid to the City. The early discussions were we would sort of work with the City. The CRA would work with the City hand in hand, but it's our obligation. It's not a City obligation. But we're going to request or we're requesting in this resolution that the City provide a grant to the CRA in the amount of four hundred and fifty thousand dollars ($450,000), which, coincidentally, corresponds with the building permits. Is that right? Mr. Gimenez: The actual to date so far is a little bit less than that, about three hundred and seventy-two thousand. Chairman Teele: Then make the request for three hundred and seventy-five thousand dollars ($375,000). Vice Chairman Winton: Yeah. It ought to -- Chairman Teele: It was my under -- Vice Chairman Winton: It ought to correspond to the amount of the -- Chairman Teele: To the amount. But it was my understanding it was four forty. Mr. Gimenez: (Inaudible) told me that that also includes about (inaudible) in impact fees, which may be separate. We need to flush it out. Chairman Teele: Huh? Vice Chairman Winton: How about permit fees for tentative improvements? Chairman Teele: That's a whole other issue. Board Member Gort: That's a different question. Chairman Teele: That's different. See, the tenant improvements will -- Vice Chairman Winton: That's coming next. 56 CRA 9/25/00 Chairman Teele: They'll come. But that will come a year from now. But our commitment is one -- is seven hundred and fifty thousand dollars ($750,000), up to one point five. We want to work with them to get them into it. It doesn't really cost the City, but it does cost the City in that it's been paid. But we're trying to get this thing and the Manager's reaction to this before the end of the fiscal year, so that it's not money that's going to be carried over into the next fiscal year. So that's a part of this. So the amendment would be for three hundred and -- what did you say? Three fifty? Vice Chairman Winton: Should be for an amount equal to whatever the permit was, so whatever that was. Chairman Teele: What I didn't want to do was say that. Vice Chairman Winton: Why? Chairman Teele: And I'll tell you why. Because first of all, the "me -too -ism," which is a dominant political theory of Miami businesspeople. "You did it for them. Do it for me." But secondly, I think that we don't want to say that we're reimbursing their fees directly, because then what you're going to wind up with is everyone that comes into the redevelopment area is going to be asking for the same thing. And obviously, this is a once in a lifetime kind of thing. Vice Chairman Winton: Well, but we're going to get those questions no matter what. And I've said this to the media. I've said it to a number of people who have asked me for some sort of help, other developers, other individuals who have said, "Well, we need help within the CRA boundaries." And I've said -- "We need the same kind of help that you gave to the NAP (Network Area Point). And I've said, "You're not the NAP. You're not going to be the NAP. The NAP is a special purpose facility that can fundamentally change the landscape of the City of Miami forever. Chairman Teele: Forever. Vice Chairman Winton: And there isn't something else now. There isn't anything else that I know of where -- well, let me rephrase it. No one's brought me something else that fundamentally changes the landscape of the City of Miami forever the way the NAP does. Now, if there is some new thing out there that comes in two more years that does the same kind of thing, then maybe we'll reconsider. But for every developer out there who wants to come into Park West to expect the City of Miami to step to the plate and do the same kinds of things, that's just simply not going to happen, because this is a special purpose facility with a special cause to the City. So I don't have any problem defending that, period. Board Member Gort: Let me tell you, I also saw a national program where it shows for the first time fairly good news about Miami. It shows the NAP being the fifth in the world. And it mentioned New York, L.A. (Los Angeles), Hong Kong and Miami. We're the fifth in this. So this is of significant importance to the City. I think the Manager has something to clarify. Chairman Teele: I mean, the NAP is literally a technology airport. It's a technology airport for the whole of Latin American, the Caribbean and South America. Mr. Manager, welcome. 57 CRA 9/25/00 Carlos Gimenez (City Manager): Carlos Gimenez, City Manager. Our best figures right now is an amount of about three hundred and seventy-five thousand, and we'll be (inaudible) for three hundred seventy-five thousand. And that's (inaudible). Vice Chairman Winton: So move. Chairman Teele: Moved by Commissioner Winton. Seconded by Commissioner Gort. Board Member Gort: Second. Chairman Teele: As amended to three hundred and seventy-five thousand dollars ($375,000), with a request that it be approved and released prior to September 301h. All those in favor, say "aye." The Board (Collectively): Aye. Chairman Teele: Those opposed have the same right. The following resolution was introduced by Vice Chairman Winton, who moved for its adoption: SEOPW/CRA RESOLUTION NO. 00-96 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY ("CRA") AUTHORIZING THE CRA TO REQUEST THAT THE CITY OF MIAMI ("CITY") PROVIDE A GRANT IN THE AMOUNT OF $375,000.00 FOR THE PURPOSE OF FACILITATING THE DEVELOPMENT OF THE TECHNOLOGY CENTER OF THE AMERICAS. (Here follows body of the 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 Chairman Arthur E. Teele, Jr. Vice Chairman Johnny L. Winton NAYS: None ABSENT: Board Member Joe Sanchez Chairman Teele: So we have number 11, and number 12 and number 15. And we had a separate motion relating to Commissioner -- 58 CRA 9/25/00 Chairman Teele: -- on the seven fifty and the -- coming forward on a recommendation for the one point five, depending upon the outcome of all of the negotiations. Vice Chairman Winton: Could I ask staff to make sure that they help carry this? Make sure you help carry this ball. You've got to be proactive. Call me when you need something. When you need whatever you need, call me. I've got a lot of things on my plate. I'm not going to call you first. You need to call me. Chairman Teele: All right. 59 CRA 9/25/00 18. APPROVE REQUEST BY CRA TO CITY TO CLOSE N.W. 2ND COURT TO DEVELOP PROPOSED JUBILEE ELDERLY HOUSING PROJECT IN AREA BOUNDED BY N.W. 14TH STREET ON THE SOUTH, N.W. 2" AVENUE ON THE EAST, AND N.W. 312D AVENUE ON THE WEST. Chairman Teele: Jubilee Housing. Mr. Tyler. Robert Tyler (Director, Operations, Administration & Development, CRA): Yes, sir. This is an update. We've asked some -- I think there's a representative from Jubilee, Doug Meyer is here. I yield to Doug. Go ahead. Doug Meyer: Good evening. I just wanted to take the opportunity to let you all know where we were with our 70-unit elderly housing project. This is the 202 that we got funded last year from HUD (Department of Housing and Urban Development). I've got about six million dollars ($6,000,000) to build 71 units for very low-income elderly. Through the leadership of Commissioner Teele, we've been trying to find a way to locate this development within the CRA and within Overtown. We were looking at a site across the street from St. John's Baptist Church that the CRA owned part of. We ran into a problem there, because there is a roadway that bisects this site. And in order to get closure of this roadway, we had a meeting with the Public Works Department, Mr. Jackson, along with Alfredo Sanchez from the CRA architect. And basically, we've discovered that there are state laws that define how a road is to be closed, and there are certain public procedures that have to take place. And they're telling us this is going to take somewhere between four and six months. Chairman Teele: Well, wait, wait. The road that we're talking about is one block long. Mr. Meyer: Right. No, it's not the length of the -- Chairman Teele: I just want the Board to understand. I mean, we should have a map. Board Member Gort: It's a process, yeah. Mr. Meyer: Yeah, it's just a process. And so -- Chairman Teele: And you've worked with Mr. Judy and he can't figure out a way? Did you know that Mr. Judy in a previously life was with the State Road Department? Richard Judy (Executive Director, CRA): I'll bet you I can figure something. Mr. Meyer: Well, I'm here to tell you tonight that we are still working to try to find a way to locate this project within Overtown. We have a couple private realtors looking at different properties for us now, and we, you know, continue to work with anybody from the CRA, the -- Chairman Teele: Doug, what's the problem? I mean, are you saying that the four months -- Board Member Gort: Time. 60 CRA 9/25/00 Chairman Teele: -- time is too long? Mr. Meyer: Yeah. We -- basically, we have to have to HUD a "buildable" site by November I". And we do not have the luxury of having four to six months to work out the issues. It's got to be a buildable site. Chairman Teele: If you got a resolution from the City Commission to HUD -- and our Washington lobbyist will instruct it -- to work with HUD, don't you think they would give that consideration? I mean, don't you think we shouldn't just give up on the best location because of bureaucracy and time? And I mean, I don't mean bureaucracy in a negative sense, but just -- Mr. Meyer: To be honest, I don't -- I don't know what HUD's-- Board Member Gort: Mr. Chairman, from my understanding, Mr. Chairman, this has got to go in front of the Planning and Zoning. And if you expedite the public hearings, I think he can get it done. Chairman Teele: Mr. Attorney? Mr. Attorney, give us the law on why does it take -- Why can't it be expedited? Why can't we call the Board into meeting and ask them to have a special meeting on this? William Bloom (Legal Counsel, CRA): There's no reason why you can't call the Board in for a special meeting. Chairman Teele: I mean, we're talking about building a five million dollar ($5,000,000) building in Overtown for people to live in. And, you know, that's -- seniors, is that right? Mr. Meyer: Yes. Chairman Teele: And I don't know of anything that's more charitable and more honorable than that. Mr. Meyer: Again, the only issue that we were told is that the state has certain procedures. It's a state mandated requirement that there be certain public notice and certain public hearings have to take place. And -- Chairman Teele: Has anybody mapped that out? Mr. Meyer: Yes. When we -- Chairman Teele: Where is Mr. Jackson? Is he here? Mr. Manager, may we ask Mr. Jackson, the eminent Public Works Director to enlighten us? Welcome, Mr. Jackson. John Jackson: Thank you. John Jackson, Director of Public Works. I don't have the site plan in front of me, but the northern side of this block is -- intersects with a state road. And in order to close it, we're going to need the state's cooperation in its closure. And that's -- I'm not saying it can't be done, but they'll need to go to the state, also. 61 CRA 9/25/00 Board Member Gort: Let me ask a question. I'm not an attorney. I'm not an expert in all these things. But can we have an agreement with the sale of the land, (inaudible) and the procedure for the closure of the street is taking place? I mean, come on, guys. Mr. Bloom: Well, the issue that they have is the road has to be vacated so they can add it to their property and show that they have site control by their December date. That's the issue. Mr. Meyer: In essence, that's it, unless we can get HUD to give us, you know, some extension. But realize that we've already got an extension from HUD. This project was awarded last December. And so they feel like they've given us a year to locate this site at this point. I'm not saying that HUD wouldn't consider it. I just don't know, you know, what their position might be. And we certainly don't want to lose this project. Mr. Bloom: But the biggest problem that the CRA has, we've been stuck in the mud in this position for the last two months, and haven't been able to go forward with trying to vacate the road -- Chairman Teele: Why? Mr. Bloom: -- because there hasn't been a decision by Jubilee whether they want to work in that fashion. Chairman Teele: All right. Well, what do you want us to do, Doug? Mr. Meyer: Basically I -- Chairman Teele: Commissioner Gort, we need to get out of here. Mr. Meyer: Yeah. I'm -- I don't need you all to do anything. We'll continue to work with the City. We just had a couple other ideas that were tossed out. We'll talk to -- Actually, I think Commissioner Teele's idea about going to HUD and trying to deal with them directly, saying that the City is willing to work to try to make this site available. You know, I think that that may be the way to go. Chairman Teele: All right. I think the City Commission should do that, not the CRA. But, you know, I really do think that we should just go ahead and vacate this thing. I mean, this block has no purpose right now, and it's nothing but homeless people on it and weeds. And to the extent the property owners around it are all right, we ought to go ahead and do that. Board Member Gort: Let me ask a question. Who has to be the applicant, Mr. Jackson? Do we have to be the applicant or Jubilee has to be the applicant? Who has to be the applicant to close the road? Mr. Bloom: The adjoining property owners. Mr. Jackson: Yes. You have to get the -- Board Member Gort: Well, who owns the properties right now? Chairman Teele: Don't we own most of it? 62 CRA 9/25/00 Mr. Jackson: We own the majority of it, except for the northern part of it. That is state, the state right-of- way. And we need -- and the state right-of-way has to participate in the closure. Board Member God: Fine. So it's all government. So why don't we get the -- Does the state have to be part of the application? Mr. Jackson: Yes. Mr. Bloom: There's also one private owner that owns that little piece up the middle. Board Member God: OK. Question. Has any documentation been done at all? Chairman Teele: Has anybody done anything? Board Member God: Has anybody done an application at all? Mr. Bloom: No. No. Board Member God: Well, you know, if we don't put paperwork in there, there's nothing we can do. Chairman Teele: Nothing we can do but talk about it. Board Member God: I mean, we can talk about it, but we'll never expedite it unless we put the paperwork in there. So someone has got to take the -- I don't know if it's the CRA or who it is, but let's start with the paperwork and let's put the documentation in. Chairman Teele: Motion to approve a request by the CRA -- Board Member Gort: Move it. Chairman Teele: -- to the City of Miami to close the road and to work with DOT (Department of Transportation), and to request expedited actions. So moved by Commissioner God. Vice Chairman Winton: Second. Chairman Teele: Second by Commissioner Winton. Further discussion? All those in favor, say "aye." The Board (Collectively): Aye. Chairman Teele: Those opposed, say "no." 63 CRA 9/25/00 lim The following motion was introduced by Board Member Gort, who moved for its adoption: SEOPW/CRA RESOLUTION NO. 00-97 A RESOLUTION OF THE BOARD OF DIRECTRS OF THE COMMUNITY REDEVELOPMENT AGENCY ("CRA") I) APPROVING REQUEST BY CRA TO CITY OF MIAMI TO CLOSE NORTHWEST 2ND COURT IN CONNECTION WITH THE DEVELOPMENT OF THE PROPOSED JUBILEE HOUSING PROJECT IN AREA BOUNDED BY NORTHWEST 14TH STREET ON THE SOUTH, NORTHWEST 2ND AVENUE ON THE EAST AND NORTHWEST 3RD AVENUE ON THE WEST AND II) DIRECTING THE CRA TO WORK WITH FLORIDA DEPARTMENT OF TRANSPORTATION ("FDOT") REGARDING THE ROAD CLOSURE AND REQUEST EXPEDITED ACTION. Upon being seconded by Vice Chairman Winton, the motion was passed and adopted by the following vote: AYES: Board Member Wifredo Gort Board Member Tomas Regalado Chairman Arthur E. Teele, Jr. Vice Chairman Johnny L. Winton NAYS: None ABSENT: Board Member Joe Sanchez Chairman Teele: Mr. Judy, will you work with us on that? All right. Vice Chairman Winton: And you also have a resolution you can take with you to HUD. Mr. Judy: May I remind you; we have the power in the CRA to close roads. Chairman Teele: What? Mr. Judy: We have the power to close roads (inaudible). Chairman Teele: All right. Well you and the City Attorney agree on that. If he -- Board Member Gort: (Inaudible). You guys need to get together. Mr. Judy: I didn't say we have (inaudible). 64 CRA 9/25/00 Chairman Teele: All right. Well, if we can figure out -- Dick, if anybody can figure out how to do it, you can. So I think the main thing you got to do is make sure the lawyer agrees with your figuring it out. Vice Chairman Winton: Yeah. 65 CRA 9/25/00 19. TABLE DISCUSSION ON REPORT REGARDING BOUNDARY CHANGES FOR CRA (See #21). Chairman Teele: OK. Next item is -- Let's hear from the Arena Square. Are those people here? Board Member Gort: Yeah, because I've have to be going in the next ten minutes. Chairman Teele: All right. Is there any information on the boundary change? We're not talking about a massive boundary change, are we? William Bloom (Legal Counsel, CRA): There is -- Dick, I'm not sure if you have a package that you can pass out to the Commissioners with the map. Richard Judy (Executive Director, CRA): (Inaudible) as not a major -- Mr. Bloom: Dick, if you can show them -- Chairman Teele: Is there a map that -- to the Board Members? Do all the Board Members -- Mr. Judy: I had them there to pass out. I can't do anything more than that. Mr. Bloom: Have you passed it out to anyone? Mr. Judy: Well, I gave ten of them. Chairman Teele: All right. Why don't you all just move to the side just for one minute. Hilda, would you work with Mr. Judy. Let's get this out here. Note for the Record: At this point, agenda item 16 was tabled. 66 CRA 9/25/00 20. AUTHORIZE OWNER OF ARENA SQUARE APARTMENTS TO MEET WITH CRA STAFF TO DEVELOP PLAN FOR $900,000 GRANT TO ARENA SQUARE APARTMENTS BASED ON FIVE TO ONE LEVERAGE RATIO TO PAY FOR IMPROVEMENTS TO ARENA SQUARE APARTMENTS CONSISTENT WITH 3an AVENUE BUSINESS CORRIDOR AND OVERTOWN CHARRETTE. Chairman Teele: All right. Mr. Yuken, welcome. You're going to be recognized from three to four to five minutes. And for the record, Mr. Yuken is one of the largest property owners in the redevelopment area of Overtown. And notwithstanding his very strong exercise of his rights of his First Amendment on issues like the fire fee, and other issues, he's a great property owner. Thank you. Salomon Yuken: Thank you for recognizing me, Mr. Chairman. My name is Salomon Yuken, President of New Arena Square. Board Member Gort: Yeah, I know the place. Mr. Yuken: And with me here today, Lynn Washington from the firm of Holland and Knight, representing us, and Mr. Donald Fitzpatrick, the Chairman of Gilford Capital Corporation, which are the syndicators of the funds for the tax credits. To make a long story short, we started the whole project of the 3rd Avenue Corridor approximately at the time of the charrette when I was called to discuss the block between 1 oth and 1Ph Street, which is about 300 linear feet of buildings, of our building, which is in the south end of the complete development. The complete development consists of twelve buildings, out of which eight are in the north side of the Overtown area, and four in the south side. And these are the two largest buildings of the project. Four of the buildings, of the twelve buildings are finished, and there is about 104 brand new units rented to new residents of Overtown. And there is another building of 50 units that are going to be finished by the end of this month. In discussion with the charrette, at the charrette, they indicated that being the buildings so voluminous and so big that there was an important factor for the complete redevelopment of the 3rd Avenue Corridor. We started on a blitz with my architects and general contractors and came out with a new design, which changes completely the face of Overtown. And what this designs means is that at this point, the building consists of two towers; one that comes in through loth Street, and the other one that comes in through llth Street. We have changed the composition of the buildings so the main entrance and only entrance to the building will be on 3rd Avenue, which is this area over here. And of course, changed, as you can see from what it is today and what it's going to be, four towers, the entrance, complete fagade of the stores and an expansion of the stores going into an availability of a courtyard that's right behind the stores that is not used at this time. That will make those stores more interesting to the potential retailers that will come into the area, because it will be from four hundred square feet that they are today, it will be converted into a thousand square feet per bay. By doing this sort of construction, we are changing two buildings of 65 units, large units for two and three - bedrooms, mainly. Right now, the buildings are one -bedroom units only. So we are changing 81 units of one bedroom to 65 units of two- and three -bedrooms. So instead of having two buildings separate for 65 units, we are making one building for 130. With that, what do we offer? We offer 24-hour security. We offer that the management of the buildings and the executive offices of the management company that manage other buildings and other properties will be in the building, in the same building, in the same area of commercial. That will increase the area of the stores that I just said, change the fagade from 50 years ago to the fagade of 2000 that we are right now. 67 CRA 09/25/00 Board Member Gort: What are you asking for? Mr. Yuken: We're asking for everything that has to be spent in commercial, and in the front of the building and the fayade to be granted by the CRA. We have funds of four and a half million dollars ($4,500.000), which we are spending in the apartment units only. We cannot have one penny spent in anything that is not apartment building because of the tax credits. Chairman Teele: By the Tax Code. By the Tax Code. Mr. Yuken: By the Tax Code. Board Member Gort: Are these going to be affordable housing projects? Mr. Yuken: That's correct. Board Member Gort: This is affordable housing where people pay rent according to their income. Mr. Yuken: That is correct. Board Member Gort: OK. So -- Mr. Yuken: This is a tax credit project. Board Member Gort: With tax credit, you cannot use the retail -- Mr. Yuken: We cannot use one penny of the monies allocated to do any type of retail or any type of fagade. Board Member Gort: Does this go in accordance to the Corridor on 3rd Avenue? We want to increase the business within that area. Chairman Teele: It is absolutely -- you know, the reason why, if you put it out there long enough, the private sector is responding to us. This is the 3rd Avenue Business Corridor. This is directly 3rd and 10`", between 3rd and 101h and 11"'. It is exactly directly in front of where the proposed Culture and Technology Center would sit, directly in front of it. And it would really constitute the redevelopment of two square blocks. I mean, it would complement our redevelopment of two square blocks. The request before us is a resolution to authorize the owner, Mr. Yuken, jointly with the Empowerment Trust -- we've met with them -- to develop a plan with the CRA for a grant, based upon a five to one ratio. And what we are entertaining now is authorizing him to start meeting with our staff and to work a plan to be submitted to us. Board Member Gort: Move it. Vice Chairman Winton: That's all we're authorizing. Second. Board Member Gort: Move it. 68 CRA 09/25/00 Chairman Teele: That's all we're authorizing. Board Member Gort: Move it. Chairman Teele: Moved and seconded. I strongly support it. It's exactly what's going to change the property values in Overtown. It's going to be a tremendous bump. And we just have to look at the policy issues associated with the kind of grant that he's requesting. And I would -- Board Member Gort: The business will never develop unless we have people living there. Chairman Teele: Yeah. The one thing that I do want to say to the staff, though, is that we want to make sure that the businesses that are there now have a long-term favorable lease, so that we don't create a redevelopment that moves people out. In other words, you got barbershops in there. You got a couple; you got two barbershops over there, don't you? Mr. Yuken: That's correct. Chairman Teele: And that's pretty much it, right? Board Member Gort: Mr. Yuken, let me ask you a question. My understanding is the grant of nine hundred thousand dollars ($900,000) is sufficient to pay for all the retail space. In other words, you would not have to put any money for the retail space. Mr. Yuken: That is correct. Chairman Teele: Retail and facade. Board Member Gort: So what it means is part of the conditions that we can attach to it, Mr. Chairman, is the rent should be affordable, since -- Chairman Teele: Right. Board Member Gort: -- he doesn't need a return on investment on there, because that is funded, pretty near, which is our funding. So I think we can play with this quite a bit and really create what we want to do in the business district. Chairman Teele: Yeah. And I would really ask specifically if you would work -- Commissioner Gort, if you would look at this with us, with the staff as we move down the road on this, because it does involve tax credits. Board Member Gort: You're getting real good in delegating, huh? Chairman Teele: It's a tax credit deal, and I think we're leveraging a tax credit deal. We have a motion and a second. 69 CRA 09/25/00 Alejandro Vilarello (City Attorney): Mr. Chairman, it should be characterized as a resolution of intent. Chairman Teele: A resolution of intent. All right. Is there -- did you want to say anything else before we carry it? Board Member Gort: No. Mr. Yuken: Yes. We are being held up by your approval to go into plans. We have preliminaries and we have worked on the preliminaries. The plans will take 60 to 90 days, plus the fact that then has to go to the Building Department, which I understand could be -- also be expedited. But we want to start this on January I", which we have a short fuse in regards to the tax credit and in regards to our construction. Chairman Teele: All right. We're going to ask that this come back in the next Commission meeting with a recommendation from staff. Mr. Yuken: OK. I appreciate it. Board Member Gort: Mr. Yuken, I'd like to tell you that the Building Department has come a long way, and they have been able to work out with the -- And we're very building friendly. So things have changed quite a bit. And you can see by the building (inaudible). Mr. Yuken: We have a lot of plans. We have a lot of plans for the other buildings in the Building Department. So we know. But still, it still takes time. Chairman Teele: Yeah. Vice Chairman Winton: (Inaudible comments) Chairman Teele: I meant the next CRA meeting. Vice Chairman Winton: Right. Chairman Teele: The Empowerment Zone wants to participate. They have expressed an interest in being a part of anything positive that's going to happen, obviously. And if they've got money, we'll let them participate. I mean, we're not -- you know, we're -- But, you know, I think this is going to be a hard fit for them, to be very candid with you. But I spoke to Mr. Feeney, the President and CEO (Chief Executive Officer) of the board, and he expressly would like to participate in this. But we're not going to let that slow us down. Is there a representative here of the Empowerment Zone tonight? OK. Staff. Board Member Gort: Mr. Chairman, I'd like to also -- projects like this, there's other projects not as large as this, but I'd like to request that staff work very closely with them and try to get them as many benefits as possible, because not only will you help those individuals, but that will help attract other businesses. Chairman Teele: Sure. 70 CRA 09/25/00 Board Member Gort: I understand some people have been in conversation with our staff, and they need to be supported. Chairman Teele: Right. Board Member Gort: And if we can't help them, let them know we can't help them. Chairman Teele: And we need to work closely with the City's Department of Development staff on these things. We don't need to cut anybody out. We need to work with the City staff that is responsible for development, and the Planning staff. On the motion, on readiness, all those in favor, say "aye." The Board (Collectively): Aye. Chairman Teele: Those opposed? The following resolution was introduced by Board Member Gort, who moved for its adoption: SEOPW/CRA RESOLUTION NO. 00-98 A RESOLUTION OF INTENT OF THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY ("CRA") TO AUTHORIZE THE OWNER OF THE ARENA SQUARE APARTMENTS, JOINTLY WITH THE CRA, TO DEVELOP A PLAN FOR A $900,000.00 GRANT TO THE ARENA SQUARE APARTMENTS BASED ON A FIVE TO ONE LEVERAGE RATIO TO PAY FOR IMPROVEMENTS TO THE ARENA SQUARE APARTMENTS IN A MANNER CONSISTENT WITH THE THIRD AVENUE BUSINESS CORRIDOR AND THE OVERTOWN CHARRETTE SUBJECT TO THE IMPLEMENTATION. OF AFFORDABLE HOUSING DEED RESTRICTIONS WITH RESPECT TO THE ARENA SQUARE APARTMENTS. (Here follows body of the resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Vice Chairman Winton, the resolution was passed and adopted by the following vote: AYES: Board Member Wifredo Gort Board Member Tomas Regalado Chairman Arthur E. Teele, Jr. Vice Chairman Johnny L. Winton NAYS: None ABSENT: Board Member Joe Sanchez 71 CRA 09/25/00 21. AUTHORIZING THE CRA TO PROCEED WITH BOUNDARY CHANGES (See #19). Chairman Teele: We have two other items. Board Member Gort: Mr. Chairman, according to the expansion that we have with the boundaries, I've looked at it. It's very minimum, the expansion that we suggest. So for those reasons, I'll move for it. Chairman Teele: Moving the issue of the expansion of the boundaries. We're talking about rounding off the boundaries, a half a block one place; include under 395, and another place. And there's a scrivener's error on the Omni relating to -- what is that? -- 171h Street or 17th Court or something? What is that? Alejandro Vilarello (City Attorney): Twentieth Terrace. Chairman Teele: Twentieth Terrace. And it's a sort of a scrivener's error that was never done. So this would be a resolution doing what? Board Member Gort: To instruct staff to go through the steps to -- William Bloom (Legal Counsel, CRA): It's a resolution authorizing the CRA to proceed with seeking boundary changes. Chairman Teele: Moved by Commissioner Winton. Seconded by Commissioner Gort -- I'm sorry. Moved by Commissioner Gort. Seconded by Commissioner Winton. All those in favor, say "aye." The Board (Collectively): Aye. Chairman Teele: Those opposed? The following resolution was introduced by Board Member Gort, who moved for its adoption: SEOPW/CRA RESOLUTION NO. 00-99 OMNI/CRA RESOLUTION NO. 00-49 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY ("CRA") AUTHORIZING THE CRA TO PROCEED WITH CHANGES IN THE BOUNDRIES OF THE REDEVELOPMENT AREA TO INCLUDE THE LAND LYING BETWEEN I-95 AND 1-395 WITHIN THE REDEVELOPMENT AREA. (Here follows body of the resolution, omitted here and on file in the Office of the City Clerk.) 72 CRA 9/25/00 Upon being seconded by Vice Chairman Winton, the resolution was passed and adopted by the following vote: AYES: Board Member Wifredo Gort Board Member Tomas Regalado Chairman Arthur E. Teele, Jr. Vice Chairman Johnny L. Winton NAYS: Board Member Joe Sanchez ABSENT: None 73 CRA 9/25/00 22. DESIGNATE DIPAK PAREKH AS EXECUTIVE DIRECTOR OF CRA; EXECUTIVE DIRECTOR TO COME BACK WITH PROPOSED ORGANIZATIONAL CHART WHICH INCLUDES RICHARD JUDY AS DIRECTOR OF STRATEGIC PLANNING AND ROBERT TYLER AS DIRECTOR OF OPERATIONS, ADMINISTRATION AND DEVELOPMENT. Chairman Teele: The final issue regards the organization of the CRA as we do in the annual meetings. I'm gong to yield to the Vice Chairman for the purpose of making the motion. As you know, I have worked very closely with Mr. Judy and Mr. Tyler, and I think we have a tremendous asset. The biggest problem that we are having with the CRA, quite candidly, is Mr. Tyler was brought in primarily to do development, which is the role that he plays, I think, very well. But the coordination of the agenda is something, Commissioner Gort, that you've raised any number of times. The external communications, and quite candidly, matters relating to budget and finance that need to be clarified give us, I think, the reason to use the traditional form at this point of an Executive Director of the CRA. And I'm going to move that Dipak be designated as the Executive Director of the CRA, and to return with an organizational plan that includes Mr. Judy and Mr. Tyler operating in essentially the roles that they have been, that they were hired to work in, planning and development, planning for Mr. Judy and development for Mr. Tyler, with clear rules and restrictions regarding conflicts of interest, outside employment, and the other normal issues that I think need to be very clear and put in writing to the CRA staff. And I would so move. Board Member Regalado: I will second. And Mr. Chairman, just for the record -- Vice Chairman Winton: We have a motion and a second. Discussion. Board Member Regalado: Just for the record, this position of Executive Director is vacant then. Chairman Teele: The way the organizational structure is, is that we created two Co -Directors. In other words, there is no Executive Director. It is vacant, to answer your question. Yes. Board Member Regalado: OK. And it's funded. Chairman Teele: And it's funded in the budget. Board Member Regalado: OK. Chairman Teele: In the budget we just approved. Vice Chairman Winton: Any further discussion? Board Member Gort: My understanding is the Executive Director will be in charge, and everyone will be reporting to the Executive Director. And whoever that Executive Director will be, he'll be the person to make sure that things will take place according to the wishes of this Board. Chairman Teele: Exactly. But primarily to deal with budget and finance issues, and to deal with external issues, freeing Mr. Tyler to deal primarily with the issues that Mr. Regalado has continued to raise, and the frustration that we all have, which is the lack of project development that is really, you know, not 74 CRA 9/25/00 moving forward, and allowing Mr. Judy to continue to work in the area of planning and coordination in that way. Board Member Gort: Commissioner Teele, what I wanted to get at is, is this going to be set up like -- that we had the City Manager, who responds to us. Chairman Teele: Exactly. Board Member Gort: And we instruct the City Manager to carry on things. And the City Manager makes sure that things get done, whoever the staff needs to perform. Chairman Teele: Exactly. That's correct. Board Member Gort: OK. Chairman Teele: And the Executive Director will be required to submit a full reorganization plan at the next Board meeting. Board Member Gort: OK. Chairman Teele: Call the question, Mr. Chairman. Vice Chairman Winton: We have a motion and a second. And the motion is to fill the Executive Director position that's already been approved with Dipak Parekh. Chairman Teele: Right. Vice Chairman Winton: No further discussion. The question is called. All in favor, "aye." The Board (Collectively): Aye. Vice Chairman Winton: Like sign, opposed. The following motion was introduced by Chairman Teele, who moved for its adoption: SEOPW/CRA RESOLUTION NO. 00-100 OMNI/CRA RESOLUTION NO. 00-50 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COMMUNITY REDEVELOPMENT AGENCY ("CRA") DESIGNATING DIPAK PAREKH AS THE EXECUTIVE DIRECTOR OF THE CRA (THE "DIRECTOR"). 75 CRA 9/25/00 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 Chairman Arthur E. Teele, Jr. Vice Chairman Johnny L. Winton NAYS: None ABSENT: Board Member Joe Sanchez Board Member Gort: Mr. Chairman, I apologize, but I have to leave. Chairman Teele: Mr. Chairman, the meeting stands adjourned unless there is any matter to come forward. And I -- when is the next meeting? And to the Manager and his staff, the City employees, we express our appreciation for your presence. Thank you all, and the public. 76 CRA 9/25/00 There being no further business to come before the Community Redevelopment Agency for the Southeast Overtown/Park West and Omni Districts, the meeting was adjourned at 7:40 p.m. ATTEST: WALTER J. FOEMAN City Clerk SYLVIA LOWMAN Assistant City Clerk ARTHUR E. TEELE, JR. Chairman (SEAL) 77 CRA 9/25/00