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Home My WebLink AboutSEOPW OMNI CRA 2001-12-11 Minutesb CITY OF MIAMI L MEETING MINUTES OF MEETING HELD ON DECEMBER 11, 2001 PREPARED BY THE OFFICE OF THE CITY CLERK/CITY HALL Priscilla A. Thompson/City Clerk MINUTES OF THE BOARD OF DIRECTORS MEETING OF THE COMMUNITY REDEVELOPMENT AGENCY FOR SOUTHEAST OVERTOWN/PARK WEST AND OMNI DISTRICTS On the llth day of December 2001, the Board of Directors of the Community Redevelopment Agency for the Southeast Overtown/Park West and Omni Districts of the City of Miami met at City Hall, 3500 Pan American Drive, Miami, Florida. The meeting was called to order at 3:06 p.m. by Chairman Teele, Jr., with the following Board Members found to be present: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny L. Winton Board Member Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez ALSO PRESENT: Carlos A. Gimenez, City Manager, City of Miami Walter J. Foeman, City Clerk, City of Miami Sylvia Scheider, Assistant City Clerk, City of Miami Annette Lewis, Acting Executive Director, CRA William Bloom, Special Counsel/CRA 1 December 11, 2001 "..0 25. UPDATE ON MARGARET PACE PARK PHASE IB. Board Member Regalado: It's 3:07. The Chairman of the CRA (Community Redevelopment Agency) had requested that we take this meeting at 3 p.m. So, Mr. Chairman, we are -- we will convene the City Commission meeting as soon as the CRA meeting -- Chairman Teele: Hopefully, in 45 minutes. Board Member Regalado: -- ends. And we will take zoning items for anybody who is here on that item. Chairman Teele: Ms. Lewis, please come on. Board Member Regalado: And, also, other matters of the City Commission. So, we are now on the CRA Board meeting. Chairman Teele: All right. Could the City Attorney and staff assume the position? Ms. Lewis, why don't you take the seat of the Manager here? We need to move quickly so we can try to expedite this. Sir, you wanted to be heard on this -- on something? Fred Joseph: Yes, sir. Chairman, if you wouldn't -- Chairman Teele: Your name and address. Mr. Joseph: Fred Joseph, 1717 North Bayshore Drive, Suite 3856, Omni Advisory Board. If it would not cause any hardship, would you mind taking number three out of order? 2 December 11, 2001 Chairman Teele: All right. Mr. Joseph: We were supposed to be at the M;ami Arena at 5 o'clock, and -- Chairman Teele: All right. Number three. Mr. Joseph: If you don't mind. Thank you. Chairman Teele: Not at all. Commissioner Winton and I have both expressed some concern. Where is the owner's representative? Where is the owner's representative? Come right on, sir. Ms. Lewis, you want Lo -- we're on Margaret Pace Park. This is the meeting of the CRA. The time is now 3:09, and the Chair notes the presence of the unanimous membership of the CRA. Ms. Lewis. Annette Lewis: (Acting Executive Director, CRA): The update on the Margaret Pace Park, 113. We're at the stage where we're in the permitting process. Danvel Fendorf, who is the lowest bidder, has begun mobilization at the current time, and the contract is -- OK. We're still waiting for them to provide all the supporting information as it relates to the contract. The estimated time for completion of this phase will be at the end of this spring, beginning of the summer. Vice Chairman Winton: But we're waiting for the contract? Where is the contract right now? Chairman Teele: That's the question. Alex Vilarello (City Attorney): The contract has been prepared. They need to execute it, provide the performance bonds and insurance, and provide it to us for signatures. 3 December 11, 2001 Vice Chairman Winton: So, the contract is in whose hands? Ms. Lewis: Danvel Fendorf? Vice Chairman Winton: And is there a representative of the contractor here? Chairman Teele: Look, when was this contract awarded? When did we open the bid? Because this is the thing that Commissioner Winton has raised holy sand about. I promised him that we would not have a break. I've been out there. I've called. I physically went out there, Johnny. I haven't told you this. And I am as frustrated as anyone that we awarded to a competitive no bid. The same low bidder was the subsequent bidder. We should not have had a hiccup on this thing. Now, this has been going on for at least four weeks. Mr. Joseph: Six, six, six. Chairman Teele: At least four weeks. When was this -- when did we open the bids, Ms. Lewis? Ms. Lewis: We opened the bids on the Is` of October, and we had a minor waiver, which was done on October 4`h So, all bids were opened by October 41h Vice Chairman Winton: So, that's eight weeks. Chairman Teele: I would really require, for the benefit of Commissioner Winton and the Board, a time line from the bid opening to this date, as to who physically -- where physically this is. Because this is just -- you know, we say the same thing in every meeting. And we've got that whole park torn up. Nobody can do anything on the park. And you know what's going to happen? We're going to wind up having to pay a fee of fifty or sixty or seventy thousand dollars 4 December 11, 2001 (570,000), or some amount of money, to expedite this project. Because I, for one, am not going to let that park be torn up the entire summer. That park has got to be opened this summer. It doesn't make sense to have a park that's closed for the summer. So, Mr. Joseph, you all are within your rights to crawl all over me again, because I told you we would not allow this thing to be interrupted. We have allowed it to be interrupted, and I apologize. But, you know, that doesn't solve anything. Mr. Joseph: We do appreciate your effort. And we have been begging them. And we, as you, thought this was going to be continuous. When we saw equipment pulled off of there for eight weeks, we were totally in shock. I mean, you've left your neighborhood there with no sidewalks -- Ms. Lewis: Sir, equipment has not been pulled off for the entire eight weeks. Because, at the time the bid was awarded, they still had not completed Phase IA. Mr. Joseph: Yes, ma'am. We anticipated the same as you're speaking about. But I live there, and we can verify to you -- I'd be happy to give you the validation of when equipment went off, and nothing has been brought back. Those sidewalks along that area are completely destroyed. So, even in this first and second phase, we were assured, as the Chairman, as our representative, Commissioner Winton, that it would not stop, and it has stopped, ma'am, a minimum of six weeks. Vice Chairman Winton: Mr. Chairman, maybe what -- you and I had a Sunshine meeting on this very issue, getting ourselves up-to-date some time after October 41h' because the bids had already been opened. And we thought everything was moving along. Maybe what we really need to do is -- Oh, man. I don't know how I get time -- I don't know where -- 5 December 11, 2001 "'of Chairman Teele: But, Commissioner, you know what? Vice Chairman Winton: We ought to have the contractor -- Chairman Teele: There is nothing -- listen, there is nothing that you and I can do. We approved the bid. We opened the bid. There was one irregularity. We waived the irregularity. This job should have been awarded, and the contractors should be moving now. If the contractor's got the documents -- how long has the contractor had the documents, Mr. Attorney? Mr. Vilarello: Approximately three weeks, since November 16tn Chairman Teele: Well, we need to ask the owners rep. Mr. Owner's Rep., why are we in this mess? And would you identify yourself for the record? Cesar Calas: My name is Cesar Calas. I work for H. A. Ross and Associates. And, Commissioners, I've been in contact with the contractor and he's telling me that he is getting all his paperwork done, and he will be on site at the beginning of January. In the meantime, he's getting a trailer at the site and he's moving in. Last week -- Chairman Teele: But you know what, Cesar? He's already there. Mr. Calas: Yes, sir, he is. But he did not have a trailer at the site. Additionally, Commissioner, he was there last week working, putting a conduit for FPL (Florida Power and Light). So, they have been doing some things that were pending from Phase 1A. So, they were there last week. We were physically at the site and inspected the laying of that pipe on the park's site. Vice Chairman Winton: But there ought to be an answer as to why -- this paperwork baloney is 6 December 11, 2001 baloney. You know, this is a major contract. This isn't some, you know, little Joe Blow out of -- you know, working out of his truck. So, we ought to be able to get an answer from him. When is your paperwork going to be in order and when is the contract going to be back to the City Attorney? Date. Give me a date. Mr. Calas: I will follow up on that, Commissioner. Vice Chairman Winton: And then call me, would you? Mr. Calas: I will do that, sir. Vice Chairman Winton: No later than tomorrow or maybe today, yet, because you could still get a hold of him today and get hold of -- and let both Commissioner Teele and I know what his answer is, in terms of paperwork ready, contract ready, back in the hands of the City Attorney. Mr. Calas: Definitely so, sir. Vice Chairman Winton: Thank you. Mr. Calas: You're welcome. Mr. Joseph: Do we have a completion date? Vice Chairman Winton: I can't give you a completion -- Chairman Teele: What is the completion date, Mr. Calas, for this, based on the contract award? How many months do they have? How many days? 7 December 11, 2001 m Mr. Calas: They have 120 days, Commissioner. Chairman Teele: What's 120 days? Five months? Four months? Mr. Calas: That's four months. Vice Chairman Winton: January, February, March. End of April. Mr. Joseph: Thank you. Chairman Teele: Ali right. Does that meet your -- Mr. Joseph: And I do not mean to have any disrespect for the lady, because I -- I mean, someone's been out there, opened the gate, drove in, drove out, emptied the trash can, used a backhoe. We're not saying they were never back on the site. We're just saying nothing has moved along. Thank you. Eleanor Kluger: Yes, sir. For a project that size, we just don't see very much movement. We see two or three people, like he says, a truck, and that's about it. And we were told, too, that it was the City that was holding it up with paperwork, and, you know, we get these kind of rumors going around. And the one thing we did say was a complete, keep going, and don't stop, and we want to be able to use the park. So, January 1st? Is that what we're saying, January 1st, there will be somebody move -- movement? Chairman Teele: At least by January 3rd, yes, ma'am. Ms. Kluger: OK, third. 8 December 11, 2001 Chairman Teele: But, again -- Ms. Kluger: We'll give them New Year's off. Chairman Teele: Again, as far as I'm concerned, as long as we can get this park opened by July -- I mean, you know, the end of June, when school is out, you know, I think there's no real harm done, other than the fact that we want to get it done. And in fairness, Commissioner Winton, to the public, the CRA has taken the project -- it's not a -- the CRA has taken the project and advanced the funds. So, again, this project is going along much, much faster, years faster, than if it were not being -- Lne funds were not being advanced. So, we just appreciate, you know, cooperation with the public on this, as well. Ms. Kluger: And the Omni residents appreciate your help at pushing this along, and the Commission's help in this. Thank you. Chairman Teele: Thank you. 26. RATIFY ACTIONS OF EXECUTIVE DIRECTOR RELATED TO ENGAGEMENT OF BERKOWITZ DICK POLLACK & BRYANT TO REVIEW BOOKS AND RECORDS OF PARK PLACE BY THE BAY RELATED TO LEASED PROPERTY LOCATED AT 915 N.W. 1 ST STREET, $6,000. Chairman Teele: All right. Item IA. Now, I've been passed a revised agenda. Is that what you want us to look at? Annette Lewis (Acting Executive Director): Yes, sir. 9 December 11, 2001 P Chairman Teele: And any changes on this agenda have been underlined, is that right? Ms. Lewis: Yes, sir. Chairman Teele: Does everybody -- do all the board members have the revised agenda? Ms. Lewis: It says revised on the top, and you have strikethroughs and underlines. Chairman Teele: All right. Resolution IA is ratifying the actions, engaging the firm for the review of lease and financial statements. Would you move it, please? Ms. Lewis: Yes, sir. The original -- on September 241h, on an emergency basis, we were directed to hire Berkowitz, and the initial amount quoted was forty-four hundred dollars ($4,400), which we disbursed in the form of a retainer. However, we've been told that the -- it's greater than the forty-four hundred. And seeing that my limit is forty-five hundred, sir — Chairman Teele: What's the matter -- moved by Commissioner Sanchez. Board Member Sanchez: So moved. Vice Chairman Winton: So moved. Chairman Teele: Second by Commissioner Winton. Vice Chairman Winton: Not to exceed six thousand. 10 December 11, 2001 Chairman Teele: Is there objection? All in favor say "aye." The Board Members (Collectively): "Aye." The following resolution was introduced by Board Member Sanchez, who moved for its adoption: SEOPW/CRA RESOLUTION NO. 01-132 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/rARK WEST COMMUNITY REDEVELOPMENT AGENCY ("CRA") RATIFYING THE ACTIONS OF THE EXECUTIVE DIRECTOR RELATED TO THE ENGAGING OF THE CPA FIRM OF BERKOWITZ DICK POLLACK & BRYANT TO REVIEW THE BOOKS AND RECORDS OF PARK PLACE BY THE BAY RELATED TO LEASED PROPERTY LOCATED AT 915 N. W. 1ST STREET FOR AN AMOUNT NOT TO EXCEED $6,000. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) 11 December 11, 2001 Upon being seconded by Vice Chairman Winton, the resolution was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny Winton Board Member Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None ABSENT: None. 27. RATIFY ACTIONS OF EXECUTIVE DIRECTOR RELATED TO ENGAGEMENT OF J.B. ALHALE & ASSOCIATES TO UPDATE APPRAISAL REPORT ISSUED IN FEBRUARY OF 2001 FOR LEASED PROPERTY LOCATED AT 915 N.W. 1ST STREET, $7,500. Chairman Teele: On 1B, the same thing. Is there a motion? Annette Lewis (Acting Executive Director): The same thing. That is correct. Vice Chainnan Winton: So moved. Board Member Sanchez: Second. Chairman Teele: Moved by Commissioner Winton. Second. 12 December 11, 2001 Board Member Regalado: Second. Chairman Teele: Is there objection? All right. On item 2. Vice Chairman Winton: We've got to vote. Chairman Teele: All those in favor say "aye." The Board Members (Collectively): "Aye." Chairman Teele: All opposed? The following resolution was introduced by Vice Chairman Winton, who moved for its adoption: SEOPW/CRA RESOLUTION NO. 01-133 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("CRA") RATIFYING THE ACTIONS OF THE EXECUTIVE DIRECTOR RELATED TO THE ENGAGEMENT OF THE FIRM OF J.B. ALHALE & ASSOCIATES TO UPDATE THE APPRAISAL REPORT ISSUED IN FEBRUARY OF 2001 FOR LEASED PROPERTY LOCATED AT 915 N. W. 1ST STREET IN AN AMOUNT NOT TO EXCEED $7,500. 13 December 11, 2001 ,,,r (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Board Member Regalado, the resolution was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny Winton Board Member Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None ABSENT: None 28. AUTHORIZE EXECUTIVE DIRECTOR TO SELL TO PARK PLACE ASSOCIATES LLC OR ITS DESIGNEE ALL CRA'S RIGHT, TITLE AND INTEREST IN FEE SIMPLE TITLE TO PROPERTY AND CRA'S INTEREST, AS LANDLORD, UNDER TERMS OF LEASE AGREEMENT BETWEEN CITY AND CRUZ DEVELOPMENT, LTD. AND RELEASE ITS CLAIMS FOR DEFERRED RENT. Chairman Teele: Ms. Lewis. Annette Lewis (Acting Executive Director, CRA): Sir, we excluded 1 C, which is the actual offer from Park Place LLC for the... Chairman Teele: Oh, a minor technicality. I'm not going to say I told you so, but all I'm going 14 December 11, 2001 to say is this: When I stopped the Commission -- the CRA (Community Redevelopment Agency) from voting on this, we were about to accept hundred and fifty thousand dollars ($150,000),1 think. Ms. Lewis: That is correct, sir. Chairman Teele: As payment. Mr. Attorney, would you like to come forward and put on the record your proffer, or Madam Director? Ms. Lewis: Yes, sir. At our last meeting, the offer that came from that meeting is two point two million dollars ($2,2vu,000), which is a combination of the one point one million dollars ($1,100,000) that's in deferred rent, and the 880, which is the updated appraisal of our interest in the Park Place, and there is also a provision to pay for all costs, as well as the lease. We requested a five -- a 10-year lease for the NET Office that currently exists, and I'm being told there may be an issue with that portion of it. William R. Bloom (Special Counsel, CRA): Yes. To follow up what the Executive Director said... Vice Chairman Winton: Who are you? Mr. Bloom: Mr. William Bloom, Special Counsel to the CRA. There are three issues that I'm aware of One is, the Park Place Associates has requested that there be a cap on their reimbursement of costs and expenses to the CRA for accounting fees, legal fees, and auditing fees. Chairman Teele: What's the cap they're asking for? 15 December 11, 2001 M Mr. Bloom: Fifty thousand dollars ($50,000). And that cap exceeds the anticipated expenses, so we would recommend that the board agree to that cap. The second issue is, they want the release to be... Chairman Teele: What are the estimated expenses that we have? Mr. Bloom: We have a... Chairman Teele: Estimate. Mr. Bloom: -- a six thousand auditing costs; seventy-five hundred dollars ($7,500) for... Chairman Teele: What's the total estimated? Mr. Bloom: The total estimated costs would probably be in the neighborhood of between thirty- five to forty thousand dollars ($40,000). They're requesting a cap for fifty thousand dollars ($50,000). Chairman Teele: Does that include your fee? Mr. Bloom: Yes, it does, sir. Chairman Teele: Nothing personal. Mr. Bloom: The second request from the resolution that's in your package, is they want the release to not be just a release of the rents, but all matters arising in connection with the lease, 16 December 11, 2001 including, without limitation, issues with respect to the defer of rent. Again, the settlement number includes approximately one million one hundred thousand dollars ($1,100,000) in defer of rent. So, from a le( -al perspective, I would recommend that you accept that qualification. And the third issue is, the CRA board -- the staff had recommended that there be a lease of the -- what's now occupied as the NET Office in the building for a term of 10 years, and the developer is proposing that that lease be limited to five years, at a cost of basically a dollar, a no -cost basis. Vice Chairman Winton: Say that -- at what -- at the cost of what? Mr. Bloom: One dollar. Vice Chairman Winton: One dollar what? Mr. Bloom: Per year. Chairman Teele: For five years. Mr. Bloom: For five years. Chairman Teele: We've asked for 10 years. Mr. Bloom: We've asked for a total of 10 years. The developer has requested five. Chairman Teele: I think, in fairness to the developer, five years is reasonable. Board Member Sanchez: Five (inaudible). 17 December 11, 2001 4,. Chairman Teele: And if we want to go in and -- we, the City, CRA, want to go in and rent the space, we should be prepared to do it, and to the extent that the City would want to do that. The CRA should, by separate resolution, passing a resolution promising to pay for the rent for the five years, if required. But I don't think we want to hold these people up. Board Member Sanchez: You don't want us to stretch (inaudible) you know. (inaudible) might break. Chairman Teele: We want to be fair. The Chair would recommend that the board accept the recommendations of the attorney. Board Member Sanchez: So moved. Vice Chairman Winton: Second. Chairman Teele: It's been moved by... Board Member Sanchez: Five-year instead of a 10-year. Chairman Teele: Five years instead of 10 years, with a month -to -month after that. Mr. Bloom: That's fine. Chairman Teele: With a month -to -month. (Inaudible Comments) 18 December 11, 2001 CM Chairman Teele: I'm telling you; you're not going to have a better tenant than the City. Vice Chairman Winton: For a dollar a year, (inaudible). (Inaudible Comments) Board Member Sanchez: For a dollar a year. Chairman Teele: A lot of people do that. I mean, crime and the image-- motion to accept the Director's recommendations, as modified by the City Attorney. It's been moved by Commissioner Sanchez and seconded by Commissioner Winton. Is there further discussion? Mr. Attorney, please put your name and address on the record. Santiago Echemendia: Santiago Echemendia, 201 South Biscayne Boulevard. Mr. Chairman, thank you, and on behalf of Park Place, we want to thank your staff, especially Alex Vilarello and Dena Bianchino, on behalf of the City, and Bill Bloom and Annette Lewis on behalf of the CRA. Thank you. Vice Chairman Winton: And I'm at -- I don't -- I hope you don't mind, Chairman Teele, but I think that we owe you a little bit here. That was -- Board Member Sanchez: This is a great deal for the CIA -- the City. Vice Chairman Winton: That was one heck of a negotiation, and I think you did a great job. Chairman Teele: Well... 19 December 11, 2001 Board Member Sanchez: Here, here. Chairman Teele: Again... Vice Chairman Winton: Because, like you said, I can assure you, I was prepared to take a little less not long ago to get this all settled. So, good work. Chairman Teele: I think the developer's got a great deal, and I happen to know the property, in that I did represent the original developer before the City Commission, who was awarded, Cruz Construction, and I can tell you that the developer, who has acquired this property, has probably acquired it for 10 cents on the dollar or 12 cents on the dollar, so this is a great deal for everybody, but it's going to be good for the redevelopment. Because the development team that has come in as a first-class development team, they're going to continue to raise property values. Now, does this resolution authorize Executive Director to enter into the agreement, Mr. Attorney? Mr. Bloom: Yes. Chairman Teele: It does? Mr. Bloom: Basically, what we're going to do is go right to closing documents, where it's going to be a deed, a release, and assignment of lease, and a closing statement. Vice Chairman Winton: And we'll close by when? Mr. Bloom: We have to go through some notice provision, so the anticipation is, we'll close by the end of January. 20 December 11, 2001 a cm Chairman Teele: Yeah. And there are some specific notice provisions on the disposition of real estate that are imposed by the CRA, including publication of notice; is that correct? Mr. Bloom: That's correct. Chairman Teele: Are you satisfied, Mr. Echemendia? Mr. Echemendia: We are, Mr. Chairman. Thank you, and thank you for your efforts as well. Chairman Teele: Aii tnose in favor of the motion say "aye." The Board Members (Collectively): "Aye." Chairman Teele: All those oppose. 21 December 11, 2001 `1.0 The following resolution was introduced by Board Member Sanchez, who moved its adoption: SEOPW/CRA RESOLUTION 01-134 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY (THE "CRA") AUTHORIZING THE EXECUTIVE DIRECTOR TO SELL TO PARK PLACE ASSOCIATES LLC OR ITS DESIGNEE ("PARK PLACE") ALL THE CRA'S RIGHT, TITLE AND INTEREST IN FEE SIMPLE TITLE TO THE PROPERTY DESCRIBED ON EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF (THE "PROPERTY") AND CRA'S INTEREST, AS THE LANDLORD, UNDER THE TERMS AND PROVISIONS OF THAT CERTAIN LEASE AGREEMENT (THE "LEASE") BY AND BETWEEN THE CITY OF MIAMI AND CRUZ DEVELOPMENT, LTD. ("CRUZ") AND RELEASE ITS CLAIMS FOR DEFERRED RENT UNDER THE LEASE IN EXCHANGE FOR (I) THE PAYMENT OF A PURCHASE PRICE OF TWO MILLION TWO HUNDRED THOUSAND ($2,200,000) DOLLARS; (II) THE REIMBURSEMENT TO THE CRA OF ALL COSTS AND EXPENSES INCURRED BY THE CRA IN CONNECTION WITH THE TRANSACTION INCLUDING, WITHOUT LIMITATION, APPRAISAL FEES, AUDIT FEES AND ATTORNEY'S FEES AND COSTS THAT ARE INCURRED BY THE CRA IN CONNECTION WITH THE TRANSACTION; (III) THE AGREEMENT OF THE TENANT UNDER THE LEASE TO LEASE TO THE CRA THE SPACE CURRENTLY OCCUPIED BY THE DOWNTOWN NET OFFICE AT NO COST FOR A TERM OF FIVE YEARS; AND (IV) PARK PLACE BEING REQUIRED TO PAY ALL CLOSING COSTS AND EXPENSES, INCLUDING DOCUMENTARY STAMPS, SURTAX AND RECORDING FEES. 22 December 11, 2001 C' Upon being seconded by Vice Chairman Winton, the resolution was passed and adopted by the following vote: AYES: Board Member Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez Vice Chairman Johnny L. Winton Chairman Arthur E. Teele, Jr. NAYS: None ABSENT: None Board Member Sanchez: I'm glad we followed the rule number one in negotiating: never accept the first offer. Vice Chairman Winton: Or the third. Thank you. 29. UNAUDITED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE AS PRESENTED BY CRA EXECUTE DIRECTOR. Chairman Teele: All right. Four -A. Annette Lewis (Acting Executive Director): Sir, before you proceed, I've just been advised that Danvel Fendorf will return all documents to the City Attorney by tomorrow, sir. Vice Chairman Winton: We should have had this meeting a month ago. 23 December 11, 2001 M Chairman Teele: Ms. Lewis? Ms. Lewis: Yes, sir. Chairman Teele: This should be your loan suit, right? Unaudited statements of revenues and expenditures. We have it before us, 4A. Ms. Lewis: Four -A. Chairman Teele: Informational item? Ms. Lewis: Informational item. The CRA (Community Redevelopment Agency) ended in a positive node with both the Omni, as well as the Southeast Overtown Park West. We are currently still wrapping up some audited statements, and what you have is preliminary, but we did end with monies to spare, to carry over to outstanding projects. Chairman Teele: By the way -- I'm sorry. Board Member Sanchez: When will we get the final? Ms. Lewis: I beg your pardon? Board Member Sanchez: When would you have the final done? Ms. Lewis: I haven't gotten it. I've only gotten draft copies this week, as a matter of fact, yesterday from our auditors. 24 December 11, 2001 Chairman Teele: Who's our auditor? Ms. Lewis: This is still the fiscal 2000, and that's KPMG (Klynveld, Peat, Marwick, Goerdeler), sir. Chairman Teele: KPMG, OK. By the way, Ms. Lewis, isn't one of the main things that people in your profession do, if there's a question, that you always say, "Well, we gave them the audited -- the statements monthly?" That's sort of a half -joke, but it's the real truth, is that we're on notice of everything that's in there, so -- by the way, what did we recognize, for our budget purpose, for the building that we just let go? Was it 1.6 or 1.7 Ms. Lewis: We recognized 1.5, sir. Chairman Teele: One point five? Ms. Lewis: Yes, sir. Chairman Teele: OK. So, we're going to have to amend that budget. Ms. Lewis: That is correct. Board Member Winton: We like those kinds of amendments. Chairman Teele: All right. 25 December 11, 2001 CM 30. INTRODUCTION OF ACTING DIRECTOR OF CONSTRUCTION OPERATIONS, DAVID HERNANDEZ. Chairman Teele: All right. Four-B. Annette Lewis (Acting Executive Director): Four-B is the -- Chairman Teele: Front and center. Go ahead, ma'am. Ms. Lewis: It's Mr. David Hernandez, a gentleman with whom I've had the pleasure to work many years ago, when I was employed by the City of Miami. I am borrowing him to use him as the Acting Director for Construction Operations in the CRA (Community Redevelopment Agency). Board Member Sanchez: On an interim basis, right? Ms. Lewis: I beg your pardon? Board Member Sanchez: Interim? Ms. Lewis: Yes. For as long as I can keep him. Vice Chairman Winton: So, does that mean we stop doing projects in the City? Board Member Sanchez: Yeah. Vice Chairman Winton: So, how does that work? 26 December 11, 2001 11/ Board Member Regalado: So, who do we call now when there is a light -- Board Member Sanchez: When the lights are off. Chairman Teele: David Hernandez. You know, I have never -- David, I don't know what they pay you, but you would think that you hold the whole darn City together, the way -- Board Member Regalado: No, just the lights. Ms. Lewis: Exactly. rie keeps it lit. Board Member Sanchez: Just the lights. Chairman Teele: But I want to say this. The Manager, Mr. Gimenez, was extremely reluctant and -- to let you be on detail to the CRA. And I was required to publicly announce that you are available to go back to the Public Works Department on a daily basis, as required, to carry out any matters that are important to the City of Miami. That's sort of the agreement that has been made by Ms. Lewis and the Manager, is that you are on loan to the CRA. We will be responsible, financially, but you're fully available to the City. David Hernandez (Acting Director, Construction Operations, CRA): Thank you. And I just want to say one thing. It is a pleasure to be working with Annette and with the CRA. But I have to admit, I've been loyal to the Department of Public Works for almost 20 years. Everything I've learned through that department -- and I feel like, yes, I want to make sure that I will be -- trying to help with the City in all retrospect, both sides. 27 December 11, 2001 Chairman Teele: Thank you. And I think the Manager is owed a debt of gratitude to help us at this point, a critical point in time. Thank you, Mr. Manager. Mr. Hernandez: Thank you. 31 AUTHORIZE EXECUTIVE DIRECTOR TO FUND REQUEST OF DR. MARVIN DUNN, CHAIR FOR DEPARTMENT OF PSYCHOLOGY AT FLORIDA INTERNATIONAL UNIVERSITY (FIU), FOR UNIVERSITY'S "ROOTS IN THE CITY" PROJECT, $23,700. Chairman Teele: Four-C. Annette Lewis (Acting Director, CRA): A resolution adopting Roots in the City Program, as presented by Dr. Marvin Dunn, Director of the Psychology Department of FIU (Florida International University). Vice Chairman Winton: So moved. Chairman Teele: Is there a Second? Board Member Sanchez: Second. Board Member Regalado: Second. Chairman Teele: Is there objection? All those in favor, say "aye." The Board Members (Collectively): "Aye." 28 December 11, 2001 „,f Chairman Teele: Opposed? The following resolution was introduced by Vice Chairman Winton, -,vho moved for its adoption: SEOPW/CRA RESOLUTION NO. 01-135 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("CRA”) AUTHORIZING THE EXECUTIVE DIRECTOR TO FUND THE REQUEST OF DR. MARVIN DUNN, CHAIR FOR THE DEPARTMENT OF PSYCHOLOGY AT FLORIDA INTERNATIONAL UNIVERSITY (FIU), FOR THE UNIVERSITY'S "ROOTS IN THE CITY PROJECT FOR AN AMOUNT NOT TO EXCEED 523,700. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) 29 December 11, 2001 Upon being seconded by Board Member Sanchez, the resolution was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny Winton Board Member Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None ABSENT: None Chairman Teele: Just so the public is aware. Dr. Dunn brings out students from the University every Saturday. They work in urban landscaping and urban interface and urban gardens. They have now expanded that relationship to actual gardens where peppers and corn are being grown. And part of the idea is to get children, inner city children, involved in some of the vacant lots that we have in Overtown, in making those lots productive, not only as landscape, but gardens. And we'll be working in that cooperative agreement, which he came to us almost six months ago and asked us to support. Vice Chairman Winton: And the project is highly visible. I mean, that whole landscaped area of 1-395 -- on the south side of 395, right there on the curb of 1-95 and 395, is his principle project there. And, I mean, that's magnificent. If all of our freeways, right -of- ways looked like that, we'd be beautiful. So, it's a great job. Ms. Lewis: And to add, sir, they are currently hiring or have hired three persons who live in the 30 December 11, 2001 M Overtown area. And a part of his expanded program is to hire folks who have challenges in terms of gaining employment. Chairman Teele: I should also indicate that the people that Dr. Dunn brings out are also students that are very diverse, and really represent, I think, a great experiment in cultural diversity and pluralism. 32. AUTHORIZE EXECUTIVE DIRECTOR TO MEET MANAGER TO DISCUSS OVERTOWN SHOPPING CENTER AS RELATES SOLELY TO OVERTOWN NET ACTIVITY AND PLANS BASED ON ITS IMPENDING TO RELOCATE SAME. Chairman Teele: Item number seven. Annette Lewis (Acting Executive Director): A resolution authorizing the Executive Director to meet with City Manager to discuss the Overtown Shopping Center, as it relates to the plans for the NET (Neighborhood Enhancement Team) and its impending relocation. Chairman Teele: Motion instructing the Manager to meet -- Board Member Sanchez: Move. Board Member Regalado: Second. Chairman Teele: All those in favor, say "aye." The Board Members (Collectively) "Aye." 31 December 11, 2001 M Chairman Teele: Opposed? The following resolution was introduced by Board Member Sanchez, who moved for its adoption: SEOPW/CRA RESOLUTION NO. 01-136 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("CRA") AUTHORIZING THE EXECUTIVE DIRECTOR TO MEET THE CITY MANAuER TO DISCUSS THE OVERTOWN SHOPPING CENTER AS IT RELATES SOLELY TO THE OVERTOWN NET ACTIVITY AND PLANS BASED ON ITS IMPENDING TO RELOCATE SAME. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) 32 December 11, 2001 Upon being seconded by Board Member Regalado, the resolution was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny Winton Board Member Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None ABSENT: None 33. AUTHORIZE ACTING EXECUTIVE DIRECTOR TO REQUEST CITY TO APPROPRIATE $4,000,000, THAT INCLUDES GRANT FUNDS, ALL FUNDING FOR ALL COSTS OF REDEVELOPMENT OF MARGARET PACE PARK PROJECT TO COMPLETE PHASE IA, IB AND PHASE II; AND REQUEST CITY TO PAY INTERIM LOANS OF OMNI CRA AND/OR SEO/PW CRA FOR PAYING SOFT AND/OR HARD COSTS OF PHASE IA, IB AND PHASE II OF MARGARET PACE PARK PROJECT. Chairman Teele: All right. Number eight. Vice Chairman Winton: Did we skip five and six on purpose? Chairman Teele: No. I apologize. Item number five. Annette Lewis (Acting Executive Director): Resolution amending Omni Resolution 01-10, 33 December 11, 2001 requesting that the City reimburse the CRA (Community Redevelopment Agency) for construction expenses incurred, and request additional funding related to Margaret Pace Park. This is a formal request for the entire four million that's projected for all phases of Margaret Pace Park. That includes IA, which is in the completion progress; 1B, which is about to begin, and two, as well as three, which includes a controversial pier. Chairman Teele: This is a bookkeeping item, more so than anything. This is not a request to the Manager for funds, per se. This is a request that codifies a resolution. The CRA can expect to receive funds on this probably in six to seven years, actual cash, just so that we're all clear. Vice Chairman Winton: Out of the increment district. Chairman Teele: No. The increment district is advancing the money. In other words, all of this Margaret Park Pace stuff that we're talking about, the CRA is funding the money -- fronting the money. In that it's a City park and in that the park -- the CRA has no interest in the park, at all, other than to facilitate the park for the development of the projects that we're going to hear more about today, both here and in the zoning agenda, what we're doing is simply putting the money forward. It will go on our books, therefore, as an advance, the portions of it. As an advance. The formality of that will be to book this resolution as basically a loan to the City. But the request for the funds, under this resolution, will not be expected to be paid out for at least five to six years, based upon the bond proceeds. This is a part of the bond that was passed, OK. But what I'm suggesting to you is, this should be one of the last items paid out. I think the bond pay- out is eight years? Vice Chairman Winton: Ten. Carlos A. Gimenez (City Manager): It's a ten-year program. Carlos Gimenez, City Manager. I 34 December 11, 2001 R would recommend that the City meet with the CRA to discuss the entire project, to make sure that there is four million dollars ($4,000,000) allocated from the bond program to Margaret Pace Park; to make sure that that money can be -- even though you front it, that that money can be reimbursed back either to the City, as we pay out your costs for this project. So, I just want to get a little bit of coordination to make sure -- Chairman Teele: If you'd like to defer it, we don't have a problem doing that. Mr. Gimenez: I don't have a problem with your resolution. I just say, before the project continues, that we need to have meetings to make sure that the bond proceeds are able to pay for the work that's being none. Board Member Sanchez: Does the City have those funds available, four million dollars ($4,000,000)? Mr. Gimenez: Excuse me? At this point? Board Member Sanchez: Does the City, at this point? Chairman Teele: No. Mr. Gimenez: Well, no. Because this money is the -- from the bond proceeds. There's four million dollars ($4,000,000) allocated from the bond proceeds for this park. Just want to make sure that everything is done correctly, so that when we do sell the bonds for that debt, it's all eligible to be reimbursed back. Vice Chairman Winton: I think Commissioner Teele's suggesting that this piece be one of the 35 December 11, 2001 tiMfi3� furtherest (sic) pieces out, which is the point that -- Chairman Teele: I'm saying that. Now, the people from the Omni may have a different view. But I feel very strongly that this should be one of the last things that we pay out, because the park is going to be there. And unless there is a project that comes along in Omni that the City and we agree on, you know, the money should be used to pay the CRA, so we could go with another project. But there is no real reason, other than to get this on our books as a loan and book it as a loan, and a receivable, in effect, do, to even -- we're not making the demand now, nor can we, nor should we. Mr. Gimenez: Right. My point is just to make sure that all of it's worked out, so that when the bond proceeds do go, they go ahead and are used to fund the project. Ms. Lewis: I agree. Alejandro Vilarello (City Attorney): Mr. Chairman? Chairman Teele: Yes, sir. Mr. Vilarello: Once the City Commission is back in session and considers the issuance of bonds and reimbursement for monies advanced, the City Commission will have to issue an official declaration or official statement. Chairman Teele: Absolutely. Mr. Vilarello: And if you ultimately want to seek reimbursement from these funds which are advanced, that would be the appropriate time to make sure that this project would be included in 36 December 11, 2001 2M that official declaration. Chairman Teele: But the only thing that I'm saying is that the CRA Board should right now say, we recognize that we're advancing money and we're doing it. Now, that has no meaning. I mean, we're not sitting here as City Commissioners. So, that has no meaning on the City budget or, for that matter, the City books, other than the fact -- the City, on the other hand, has got to acknowledge the debt, even before you can properly book it. Properly. Mr. Vilarello: At this point, you would have to have an agreement of both parties, the CRA and the City; both, the CRA requesting payment of the loan and the City acknowledging that it owes it. Chairman Teele: And I think the Manager's point is well taken, that we need to do a lot more details into this. But he has no objections to the resolution, at this time. On the resolution, all those in favor say "aye." Board Members (Collectively): "Aye." Chairman Teele: Opposed? 37 December 11, 2001 CM The following resolution was introduced by Vice Chairman Winton, who moved for its adoption: SEOPW/CRA RFSOLUTION NO. 01-134 A RESOLUTION, WITH ATTACHMENT (S), OF THE OMNI COMMUNITY REDEVELOPMENT AGENCY (OMNPCRA), ACTING AS THE ADMINISTRATOR OF THE REDEVELOPMENT PLAN OF HE OMNI CRA UNDER THE AUTHORITY OF AN INTERLOCAL AGREEMENT ENTERED INTO BY THE CITY OF MIAMI, SEOPW/CRA AND OMNI CRA, DATED AUGUST 10, 1995; AUTHORIZING THE ACTING EXECUTIVE DIRECTOR TO REQUES 1 HE CITY, BY A RESOLUTION, TO APPROPRIATE, IN AN AMOUNT NOT TO EXCEED $4,000,000 THAT INCLUDES ANY GRANT FUNDS, ALL OF THE FUNDING FOR ALL OF THE COSTS OF THE REDEVELOPMENT OF THE MARGARET PACE PARK PROJECT TO COMPLETE PHASE IA, IB AND PHASE II, NOT WITHSTANDING ANY OTHER RELATED AGREEMENTS THAT ARE NOT IN COMPLIANCE OF THE OMNI REDEVELOPMENT PLAN; AND TO REQUEST THE CITY TO PAY THE INTERIM LOANS OF THE OMNI CRA AND/OR THE SEOPW/CRA AT THE REQUEST OF THE CRA, USED BY THE CRA FOR PAYING SOFT AND/OR HARD COSTS OF PHASE IA, IB AND PHASE II OF THE MARGARET PACE PARK PROJECT. 38 December 11, 2001 (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Board Member Sanchez, the resolution was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny Winton Board Member Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None ABSENT: None 39 December 11, 2001 cm N 34. AUTHORIZE CITY ATTORNEY TO AMEND FEE AMOUNT FROM $15,000, TO RETAIN SPECIAL COUNSEL JEFFREY BERKOW OF BERKOW & RADELL ASSOCIATES TO RESOLVE ISSUES RELATED TO SEOPW DEVELOPMENT OF REGIONAL IMPACT (DRI); AND BRING CRA INTO COMPLIANCE WITH DOWNTOWN DEVELOPMENT OF REGIONAL IMPACT DEVELOPMENT ORDER, $22,000; DIRECT CRA ATTORNEY TO ENGAGE BERKOW & RADELL ASSOCIATES TO REVIEW EXISTING ZONING CODE PROVISIONS AS RELATES TO SEOPW, INCORPORATE REGIONAL IMPACT DEVELOPMENT ORDER AMENDMENTS AND PROPOSE ANY ADDITIONAL NECESSARY AMENDMENTS Chairman Teele: All right. Resolution six. Annette Lewis (Acting Executive Director): A resolution to amend the fee of Berkow & Radell on CRA (Community Redevelopment Agency), DRI (Development of Regional Impact) issues. The original resolution, capped at fifteen thousand, was based on the amount of work that has to be done by Berkow. An additional amount not to exceed six thousand. Therefore, making the entire disbursement to Berkow & Radell not to exceed twenty-one -- twenty-two thousand. Vice Chairman Winton: Whatever happened to the idea of pro bono? Sorry, Jeff. Board Member Sanchez: Not in this case. Vice Chairman Winton: So moved. Board Member Sanchez: Second. Chairman Teele: Moved and second. Is there objection? All those in favor say "aye." 40 December 11, 2001 �1: . 14� The Board Members (Collectively): "Aye." The following resolution was introduced by Vice Chairman Winton, who moved for its adoption: SEOPW/CRA RESOLUTION NO. 01-137 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST (SEOPW) COMMUNITY REDEVELOPMENT AGENCY ("CRA") AUTHORIZING THE CITY ATTORNEY TO AMEND FEE AMOUv i FROM $15,000, AUTHORIZED BY MOTION 01-23, TO RETAIN SPECIAL COUNSEL JEFFREY BERKOW OF BERKOW & RADELL ASSOCIATES TO RESOLVE ISSUES RELATED TO THE SEOPW DEVELOPMENT OF REGIONAL IMPACT (DRI); AND BRING THE CRA INTO COMPLIANCE WITH THE DOWNTOWN DEVELOPMENT OF THE REGIONAL IMPACT DEVELOPMENT ORDER, TO AN AMOUNT NOT TO EXCEED $22,000. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) 41 December 11, 2001 Upon being seconded by Board Member Sanchez, the resolution was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny Winton Board Member Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None ABSENT: None Chairman Teele: Let me tell you. What has happened is nothing short of Harry Potter. This is a very delicate situation and, candidly, I think we've probably created some law here in this problem. So, we appreciate your good legal work. Jeffrey Berkow: Thank you. Mr. Commissioner, we were -- Chairman Teele: Your name and address for the record. Mr. Berkow: Jeffery Berkow, 200 South Biscayne Boulevard. I think we were very successful in resurrecting increment one and getting an additional seven years -- no, eight years, and adding an additional six years to increment two. And I think we're about two thousand dollars ($2,000) under the cap right now, in terms of what we've built. There's another four thousand over the cap. There's some cost, et cetera. So, the six thousand will work out. For the future, Mr. Chair and for the Board, I think it's incumbent upon the CRA (Community Redevelopment Agency) to 42 December 11, 2001 now look at the provisions of the Code that deal with Southeast Overtown/Park West. Those provisions of the Code need to be amended to, number one, reflect the amendments in the Development Order Amendment and, number two, you're going to need to start to look at the fees that you charge under the DRI, because those have not been adjusted for inflation since 1988. And we'd be happy to work with you and your staff to do that. Chairman Teele: Well, I think, given the fact that the CRA is a separate entity from the City, we would welcome your continued help in developing that and working with the City's Planning Department, I would assume. Is it Planning? Mr. Berkow: Yes, sir. Chairman Teele: -- in developing the appropriate updates. Vice Chairman Winton: Do we need a separate motion to make that happen, though? Chairman Teele: Yes. Properly. Vice Chairman Winton: So, Jeff, if you don't mind, would you restate kind of the motion? And I'm going to move it. Mr. Berkow: The motion would be to engage counsel to review the existing Code provisions, as they relate to Southeast Overtown/Park West; to incorporate the recent Development Order Amendments, and to propose any additional amendments that would be necessary. Vice Chairman Winton: And to review the fee structure that were (inaudible) 43 December 11, 2001 cm Mr. Berkow: Including the fee structure, yes, sir. Vice Chairman Winton: So moved. Chairman Teele: Moved. Is there a second? Board Member Regalado: Second. Chairman Teele: Is there objection? All those in favor say "aye." The Board Members (k ollectively): "Aye." Chairman Teele: All those opposed? The following motion was introduced by Vice Chairman Winton, who moved for its adoption: SEOPW/CRA MOTION NO. 01-138 A MOTION DIRECTING THE CRA ATTORNEY TO ENGAGE BERKOW & RADELL ASSOCIATES TO REVIEW EXISTING ZONING CODE PROVISIONS AS RELATES TO SEOPW, INCORPORATE REGIONAL IMPACT DEVELOPMENT ORDER AMENDMENTS AND PROPOSE ANY ADDITIONAL NECESSARY AMENDMENTS INCLUDING REVIEW OF CURRENT FEE STRUCTURE. 44 December 11, 2001 Upon being seconded by Board Member Regalado, the motion was passed and adopted by the following vote: AYES: Board Member Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez Vice Chairman Johnny Winton Chairman Arthur E. Teele, Jr. NAYS: None ABSENT: None Chairman Teele: Mr. Attorney? Mr. Attorney, what I would ask you to do is to meet with Mr. Berkow and bring forth an agreement that we can ratify for the dollar amount. But, obviously, you have a limit of authority of five or six -- four or five thousand dollars ($5,000) now that he can begin to work on that. Mr. Berkow: Thank you. Chairman Teele: Thank you. 45 December 11, 2001 M 35. AUTHORIZE EXECUTIVE DIRECTOR TO SELECT NO LESS THAN TWO OR GREATER THAN THREE RESPONDENTS TO CRA RFQ FOR MISCELLANEOUS CONSTRUCTION MANAGER AT RISK FOR VARIOUS PROJECTS IN SEOPW AND OMNI CRAS AND RETURN RESULTING SELECTIONS TO CRA BOARD FOR RATIFICATION Chairman Teele: All right. Did we do seven? Board Member Gonzalez: Yes, we did. Chairman Teele: Eight? Annette Lewis (Acting Executive Director): Resolution authorizing the Executive Director, pursuant to CRA (Community Redevelopment Agency) Board Resolution 01-106, to select a miscellaneous CM (Construction Manager) at Risk for projects in the Southeast Overtown/Park West and Omni CRA's. Chairman Teele: Motion by Commissioner Winton. Second by Commissioner Regalado. All those in favor, say "aye." The Board Members (Collectively): "Aye." Chairman Teele: Those opposed? 46 December 11, 2001 sm- The following resolution was introduced by Vice Chairman Winton, who moved for its adoption: SEOPW/CRA RESOLUTION NO. 01-139 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST AND OMNI REDEVELOPMENT AGENCIES ("CRA") AUTHORIZING THE EXECUTIVE DIRECTOR TO: 1) SELECT NO LESS THAN TWO (2) OR GREATER THAN THREE (3) RESPONDENTS TO THE CRA RFQ (ATTACHED) FOR A MISCELLANEOUS CONSTRUCTION MANAGER (CM) AT RISK FOR VARIOUS PROJECTS IN THE SEOPW AND OMNI CicAS; AND II) RETURN RESULTING SELECTIONS TO THE CRA BOARD FOR RATIFICATION. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Board Member Regalado, the resolution was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny Winton Board Member Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None ABSENT: None 47 December 11, 2001 M 36. AUTHORIZE EXECUTIVE DIRECTOR AND DIRECT CRA COUNSEL TO ENCOURAGE CITY COMMISSION TO INITIATE ANY ACTIONS TO ADDRESS WASA ISSUES AS RELATES TO REDEVELOPMENT AREA. Chairman Teele: On number 9A, is that moved by Commissioner Winton? Vice Chairman Winton: Yes, it is. Board Member Gonzalez: Second. Chairman Teele: Second by Commissioner Gonzalez. And this is to encourage the -- well, wait a minute. Vice Chairman Winton: This is on WASA (Water and Sewer Authority). Chairman Teele: We can't direct the City Attorney here. We can direct -- well, we can direct the -- I guess we can direct the CRA (Community Redevelopment Agency) Attorney. Annette Lewis (Acting Executive Director): Well, he is special counsel. Alejandro Vilarello (City Attorney): You can direct me. The City Attorney is general counsel to the CRA. Chairman Teele: I understand. But we direct the CRA Attorney. Mr. Vilarello: On item 9A? 48 December 11, 2001 M Chairman Teele: We'll direct general counsel. You're wearing a slightly different hat. I don't think the CRA Board should ever be an instruction -- Ms. Lewis: General counsel then? Chairman Teele: -- of giving any instructions to any City official in that capacity. Ms. Lewis: So, should I -- Chairman Teele: It's the same thing, but just say general counsel. Mr. Vilarello: Mr. Chairman, I'm sitting here as general counsel to the CRA at this moment. Chairman Teele: All right. I'm not going to split hairs with you. It's been moved and second. We're asking that the City Attorney encourage the City Commission to address the WASA issues, all those in the redevelopment area. Have we tried --and this is one of the things -- Mr. Hernandez, we ought to go over and try to have a meeting with WASA, and see if we can come up with a pilot agreement. And it's going to be even worst in the Omni. But we ought to go ahead and talk about putting the piping in. We really should try to be aggressive about this. Vice Chairman Winton: You know, I think that the City Commission passed a resolution months and months and months ago to take all the steps necessary to deal with this problem we're having with WASA, which is absolutely blocking the redevelopment of emerging neighborhoods within the City through their grossly excessive fee structure. And I think that -- when the City Commission itself goes back into session, I'm going to reintroduce this subject so that we can begin to move on that particular issue. It's time to face the County down, one way or the other. 49 December 11, 2001 Chairman Teele: Commissioner Winton, let me just say this. I think it's really incumbent upon you to meet with the Mayor and explain this issue to him. Otherwise, it could look like we're just creating a problem as he comes into office. And I really -- Vice Chairman Winton: Great point. I will do that. I will do that. Chairman Teele: I really think that you're a person that's in a position to meet with the Mayor on this. Is Mr. Richard Haylor here? Why don't you just take the podium. On this resolution, which is a resolution relating to the CRA trying to get Water and Sewer, and instructing the City Attorney to work with the City Commission to address water and sewer areas, is on the floor. All those in favor of that motion by Commissioner Winton, say "aye." The Board Members (Collectively): "Aye." Chairman Teele: All opposed? The following resolution was introduced by Vice Chairman Winton, who moved for its adoption: SEOPW/CRA RESOLUTION NO. 01-140 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("CRA") (subject matter: authorizing the Executive Director and directing CRA Counsel to encourage the City Commission to initiate any actions to address WASA issues as it relates to the redevelopment area). (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) 50 December 11, 2001 � � � Upon being seconded by Board Member Gonzalez, the resolution was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele. Vice Chairman Johnny Winton Board Member Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None ABSENT: None 37. INSTRUCT EXECUTIVE DIRECTOR TO MEET WITH MR. RICHARD HAYLOR OF W.H.E. ENTERPRISES IN CONNECTION WITH POTENTIAL JOBS TO BE CREATED IN OMNI REDEVELOPMENT DISTRICT, 1756 NORTH BAYSHORE DRIVE, AND COME BACK AT NEXT CRA BOARD MEETING WITH RECOMMENDATION. Chairnan Teele: Now, I asked number 20, which is a public appearance, to come forward. And would you just introduce yourself, Richard, and tell the public a little bit about who you are and why you're here? Richard Haylor: Certainly. My name is Richard -- Chairman Teele: Is Jason here? Jason Walker. Vice Chairman Winton: Jason Walker? 51 December 11, 2001 M cm Chairman Teele: Yeah. Vice Chairman Wiv+on: He's somewhere. Do you want him? Chairman Teele: I just thought he might want to come out for the -- Mr. Haylor: Richard Haylor at W.H.E. Enterprises, located in 1756 North Bayshore Drive, Bay Park Plaza. And we've opened part of a new entertainment venue in Bay Park Plaza. Unfortunately, we've only owned part of that because of the extremely heavy Water and Sewer impact fees of some seventy-two thousand dollars ($72,000). Chairman Teele: Seventy-two thousand dollars ($72,000). Mr. Haylor: Yes, sir. Yes. I have the calculations. Chairman Teele: This is the building directly in front of Margaret Pace Park that Mr. Haylor just built. Mr. Haylor: Yes, sir. Chairman Teele: And I know that a lot of people are here on the 1800 Club Building. There's the same problem. Mr. Haylor: Yes, sir. We're just one block down from the 1800. Vice Chairman Winton: And Soyka was the same problem. And everybody that tries to come into the re-emerging neighborhoods and get a -- you know, and this isn't even a new use. This 52 December 11, 2001 N was an approved use, where we're getting really taken to the cleaners. But new uses are even more taken to the cleaners. Sorry. Mr. Haylor: No, No. Please. That's exactly right. We've only opened less than half of the actual area, although, we're actually paying rent on the full area. And to reduce the actual impact fees, we had to change the whole design, the concept and, literally, the furniture. Because the way the impact fees were calculated were on the difference between stores and chairs and types of tables that you have. So, to reduce that massive impact, which really would have stopped the whole deal altogether, we had to build false walls, reduce the area, reduce the furniture, the occupancy, and also the people that I'm employing. I'm only employing half the staff I would be employing from the local area. And I'm trying to encourage and get into downtown. I think there's a lot of potential in downtown. And it's a shame that things are being held up in this way. Vice Chairman Winton: But the County wants to create jobs, mind you, in the entire County, including the City. But they've got this new profit center called Water and Sewer. So, they're really taking everybody to the cleaners, and they're preventing us from creating new jobs because they're interested in a new damn profit center instead of charging the right mileage rate that they ought to be charging in the first place. Chairman Teele: Commissioner Winton, we're going to go -- Board Member Sanchez: Tell us how you really feel, Johnny. Chairman Teele: We're going to -- for the first time, we're actually three years ahead of schedule on the Omni. So, this January, we will go -- we will meet the interlocal agreement. I would appreciate if you would move to instruct the Executive Director to meet with Mr. Haylor? 53 December 11, 2001 'I _4� Annette Lewis (Acting Executive Director): Haylor. Mr. Haylor: Haylor. Chairman Teele: Taylor. Is it Taylor? Mr. Haylor: Haylor. Sorry. It's my accent. Chairman Teele: H-A-Y-L-O-R or T-A-Y? Mr. Haylor: H-A-Y-L-O-R. Chairman Teele: Mr. Halyor, and to recommend -- to come back before the Board in the next meeting for some support, based upon jobs that will be created in the Omni area. Vice Chairman Winton: So moved. Board Member Sanchez: Second. Board Member Gonzalez: Second. Chairman Teele: Moved and second. All those in favor say "aye." The Board Members (Collectively): "Aye." Chairman Teele: All those opposed? 54 December 11, 2001 `N. M The following motion was introduced by Vice Chairman Winton, who moved for its adoption: OMNUCRA MOTION NO. 01-35 A MOTION INSTRUCTING THE EXECUTIVE DIRECTOR TO MEET WITH MR. RICHARD HAYLOR OF W.H.E. ENTERPRISES IN CONNECTION WITH POTENTIAL JOBS TO BE CREATED IN OMNI REDEVELOPMENT DISTRICT, MORE PARTICULARLY THE AREA OF 1756 NORTH BAYSHORE DRIVE, AND TO COME BACK AT NEXT CRA BOARD MEETING Will H A RECOMMENDATION. Upon being seconded by Board Member Sanchez, the motion was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny Winton Board Member Angel Gonzalez Board Member Joe Sanchez NAYS: None ABSENT: Board Member Tomas Regalado Chairman Teele: And I note the presence of someone else who's here to build the 1800 Club, and it's the same problem. So, if we can begin to try to get a handle on this, we'd solve a lot of people's problems. 55 December 11, 2001 Mr. Haylor: Thank you very much. Chairman Teele: Thank you. All right. Thank you. 38. AUTHORIZE EXECUTIVE DIRECTOR TO DISBURSE $73,290.15 IN ASSISTANCE TO THREE BUSINESSES THAT WERE RECIPIENTS OF CRA'S COMMERCIAL REVITALIZATION SUPPLEMENTAL GRANT PROGRAM. Chairman Teele: The next item is item number -- Board Member Sanchez: Ten. Board Member Gonzalez: Ten. Chairman Teele: Ten. Annette Lewis (Acting Executive Director): Sir, before you move on to number ten, item number nine actually had two items. The first one was resolution approving the disbursement of Water and Sewer connection fees as it relates to Resolution 01-41. Chairman Teele: All right. And is that the one with the Two Guys Restaurant, Jackson Soul Food, and Just Right Barber Shop? Ms. Lewis: That is resolution 01-41 that provided a hundred thousand dollars ($100,000) for WASA (Water and Sewer Authority) impact fees, sir. Chairman Teele: All right. 56 December 11, 2001 Board Member Sanchez: Question. Chairman Teele: Commissioner Sanchez. Board Member Sanchez: Thank you, Mr. Chairman. Can you provide us with a broken down of all the assistance that we have given those businesses, and how much have they used as to what we've given them? Ms. Lewis: The complete package, including technical assistance? Board Member Sanchez: Yes, please. Ms. Lewis: Yes, sir. Chairman Teele: All right. I can answer one part of that, just for the record. The grant with Jackson Soul Food, Two Guys Restaurant, and Just Right Barber Shop requires -- is construction. The technical assistance, as the technical assistance with all of our agencies, such as the NET (Neighborhood Enhancement Team) or any of that, is billed as an internal administrative expense. So, what I want to make sure you do is that you go in and break out all of the internal administrative expenses, as well as any consulting expenses that have been used on the projects that he's asking for. Ms. Lewis: Yes, sir. Board Member Sanchez: Mr. Chairman, what I want to get cleared is, if we are providing, whether it's technical assistance, I want to make sure that if they have used it and they're using 57 December 11, 2001 it. Because I think in the phases of assistance that we're providing, I don't want to be able to -- I want to do it in phases and make sure that it's being done. I don't want to be -- you know, I don't want to take a business and give them four funds for assistance and then find out that they're not being used. I want to make sure that, if you give them money for technical assistance, that they're using the technical assistance; construction, that they're using it, so we know exactly -- you know, I just don't want to take several businesses and just throw money at them and not make sure that they're using the money. Chairman Teele: And we are one hundred percent -- I'm one hundred percent in agreement, but let me just be clear so that there's no misunderstanding. In the case of Jackson Soul Food, Two Guys Restaurant, and Just Right Barber Shop, they have received zero dollars from the CRA (Community Redevelop Agency) to date. The expenditures to date have been consultants and staff that are advising us in doing the project. They have a grant agreement and under that grant agreement, even there, they will get zero dollars. Under the grant agreement, we will make payments pursuant to their costs. In other words, if they have a plumbing contractor, we will pay the plumbing contractor, and that will be based upon the City inspectors and the Development Director, as well as an owner's representative or, in this case, there won't be an owner's rep, but a CM (Contract Manager) at Risk that will make those. So, in no cases -- and this is just to protect everybody. We are not giving out money to businesses, with the exception of the people that got the -- that own the NAP (Network Area Point) -- Vice Chairman Winton: Right. Terremark. Chairman Teele: Terremark. We gave them cash of about three hundred and some thousand dollars. Ms. Lewis: Three seventy-five. 58 December 11, 2001 1S. *-0 Chairman Teele: But in no case will we provide any cash loans or funds to any business, unless it comes back through a process. I'm totally opposed to that. Mr. Lewis: And the grant agreement does reflect that. Board Member Sanchez: Ok. Chairman Teele: But, please, provide the Commissioner with whatever information he required. But we've not expended -- is that correct, we've not expended -- Mr. Lewis: That is correct, we have not drawn on any of the CRA grant dollars for construction. Board Member Sanchez: Have they drawn out? Have they -- Ms. Lewis: No. We have not paid any contractors -- Board Member Sanchez: No. So, it's not touched. Chairman Teele: The problem is this -- and we may as well just put it on the table. The plans that have been drawn, that we approved, are somewhat of a problem in permitting and in budget, and these were our plans. You know, we're trying to figure out how to -- well, that is what Mr. Hernandez is going figure out -- Ms. Lewis: David's specialty. Chairman Teele: -- how to get us out of this box. Because the plans that we've represented to the 59 December 11, 2001 public and to the owners and the budget don't match. And, you know, we don't want to mistreat a business owner. On the other hand, Commissioner Gort -- former Commissioner Gort has raised a number of concerns and feels that we're dragging our feet, and I want to put that on the record. Because he said he's going to start coming to these meetings and insist that we get those three businesses done. So, the problem we have is that the plans that we have are in excess of our budget and have not been permitted, and there are a series of issues associated with that. So, no money has gone out the door to these -- to any of these three businesses. Ms. Lewis: That is correct. Vice Chairman Winton: Now, on nine itself -- I want to make sure I understand this. What we're doing here is authorizing a grant award to pay for the WASA impact fees on Jackson Soul Food Restaurant. Chairman Teele: No. What we're doing is -- that agreement was already done. The Director, for whatever reason, feels that she needs authority to release the money. There's a resolution that's what, six months old, eight months old? It was done in May, because Commissioner Sanchez had a lot to say about that agreement. Remember, it was in May. Ms. Lewis: Right. Well, there was the May, then there was -- it was modified in July. Chairman Teele: All right. Ms. Lewis: But it was -- Vice Chairman Winton: But the amount is seventy-three thousand dollars ($73,000). 60 December 11, 2001 Chairman Teele: Seventy-three thousand dollars ($73,000). Not to exceed seventy -- Vice Chairman Winton: And that's to WASA? Chairman Teele: That goes to WASA. Vice Chairman Winton: And, so, the point I want to make here is -- you know, our typical CRA meetings are not on NET 9. Is this one on NET 9? Chairman Teele: Unfortunate -- Board Member Sanchez: Yes. Chairman Teele: Yeah, this is on NET 9. Vice Chairman Winton: Well, this is the perfect information for the public to have, which goes back to the point that we talked about just a minute ago. Jackson Soul Food Restaurant is an existing, long-standing restaurant. Been there a long time. The expansion that they're doing is relatively minimal; yet, WASA wants seventy-three thousand dollars ($73,000) as their fee -- impact fee for this minor expansion in an African -American neighborhood that's trying to get some jobs going. I mean, that's just totally irrational. Chairman Teele: To put it on the record, Jackson Soul Food, as I recall, employees twelve people. If this expansion is done, they will extend their hours and they will be doubling their work force up to 25 people. That will make Jackson probably, along with Peoples Barbeque, the largest single employer in Over -town, an area where unemployment is 40 percent. It's impossible to ask a business to pay seventy thousand dollars ($70,000) in water and sewer costs. Now, in 61 December 11, 2001 OM fairness -- Vice Chairman Wir:ton: No, no. This is just the impact fee. Chairman Teele: This is water and sewer fee. This is water and sewer fee. Now, let me -- Vice Chairman Winton: This is the fee. This ain't hard costs. Chairman Teele: This ain't hard costs. Vice Chairman Winton: This is the fee just to pay them their profit margin, if you will. Chairman Teele: For which the County Commission -- the County government takes off about 15 percent for the overall administration of Metro -Dade County government. Board Member Regalado: Sixty-seven million. Chairman Teele: Sixty some million dollars a year as an indirect cost to run Metro government. But this is the point. There's two points on this. This fee was not in our budget. So, the resolution recognized this as a separate grant amount to Water and Sewer, on behalf of Jackson Soul Food and Two Guys and Just Right Barber Shop. And what this resolution simply does is authorizes the Executive Director to release the money. Vice Chairman Winton: Do we have a motion already? Chairman Teele: Yes. We have a motion and a second. All those in favor say "aye." 62 December 11, 2001 The Board Members (Collectively): "Aye." Chairman Teele: All opposed? The following resolution was introduced by Vice Chairman Winton, who moved for its adoption: SEOPW/CRA RESOLUTION NO. 01-141 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("CRA") AU T riORIZING THE EXECUTIVE DIRECTOR TO DISBURSE AN AMOUNT NOT TO EXCEED $73,290.15 PURSUANT TO SEOPW RESOLUTION NO. 01-41 IN THE PROVISION OF ASSISTANCE TO THREE BUSINESSES THAT WERE RECIPIENTS OF THE CRA'S COMMERCIAL REVITALIZATION SUPPLEMENTAL GRANT PROGRAM. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) 63 December 11, 2001 LOM Upon being seconded by Board Member Regalado, the resolution was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny Winton Board Member Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None ABSENT: None Chairman Teele: All right. Board Member Regalado: No. Mr. Chairman? Chairman Teele: All right. We need a motion by Commissioner Winton and we need a second by Commissioner -- Board Member Regalado: Second. Chairman Teele: -- Regalado. Vice Chairman Winton: So moved. Chairman Teele: All those in favor say "aye." 64 December 11, 2001 The Board Members (Collectively): "Aye." Chairman Teele: Those opposed? 39. AUTHORIZE EXECUTIVE DIRECTOR TO MEET WITH MANAGER TO IDENTIFY CERTAIN REAL PROPERTY LOCATED WITHIN CRA EXPERIENCING .FINANCIAL DIFFICULTIES WITH CITY WHERE SUBJECT PROPERTY MAY SERVE FOR CRA "RELOCATION" PURPOSES. Chairman Teele: A resolution -- 10 -- authorizing Executive Direction to meet with the City Manager regarding relocation issues and finding suitable properties. Annett Lewis (Acting Executive Director): What this resolution seeks to do -- as a part of the Redevelopment Act of 1969, we are allowed to have places for relocation for displaced persons, as well as possibly businesses. And the CRA (Community Redevelopment Agency) would like to explore what possibilities exist in the City. Vice Chairman Winton: So moved. Board Member Gonzalez: Second. Board Member Sanchez: Second. Chairman Teele: All in favor say "aye." The Board Members (Collectively): " Aye." 65 December 11, 2001 INN Chairman Teele: All opposed? The following resolution was introduced by Vice Chairman Winton, who moved for its adoption: SEOPW/CRA RESOLUTION NO. 01-142 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("CRA") AUTHORIZING THE EXECUTIVE DIRECTOR TO MEET WITH THE CITY MANAGER IN AN EFFORT TO IDENTIFY CERTAIN REAL PROPERTY, LOCATED WITHIN THE CRA, EXPERIENCING FINANCIAL DIFFICULTIES WITH THE CITY OF MIAMI WHERE SUBJECT PROPERTY MAY SERVE FOR CRA "RELOCATION" PURPOSES AS DEFINED BY PERTINENT REGULATIONS GOVERNING THE CRA. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) 66 December 11, 2001 Upon being seconded by Board Member Regalado, the resolution was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny Winton Board Member Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None ABSENT: None 40. PURCHASE AGREEMENT FOR ACQUISITION OF PROPERTY OWNED BY CHURCH OF THE DIVINE MISSION. Chairman Teele: Number 11. Annette Lewis (Acting Executive Director): Resolution authorizing the Executive Director to enter into a purchase agreement for the acquisition of property located at 910 Northwest 2°d Court, owned by the Church of the Divine Mission. This resolution proposes to acquire this property as it relates to the 9th Street Mall expansion. It lies within -- it's on the same block where we're planning to do the expansion. And at this time, Rabbi King, who has expired, his daughter, who is currently attempting to wrap up his estate would like to sell this property. The CRA (Community Redevelopment Agency) has an appraisal for a hundred and forty-two thousand. And they have -- in your package; you will see two hundred and ninety-five thousand. But as of late Friday evening, they've come down to two hundred and fifty-two thousand. What 67 December 11, 2001 I would recommend is that we take their offer for the two hundred and fifty-two thousand dollars ($252,000) and go ahead and provide for the items that Sister Muriel King has requested, which is the memorialization of Rabbi King an(. his mission as it impacted Overtown. She has also requested a marker be placed, and that can be done in a location that coincides with the extension of the mall, considering the fact of the location, as well as Rabbi King's image is on the west side of the building, and they would like to preserve that part of the building to be delivered to their -- where they have established their new mission. Board Member Sanchez: Has anybody done an appraisal on the property? Chairman Teele: Year. Commissioner Sanchez: And it's -- Ms. Lewis: A hundred and forty-two thousand. Board Member Sanchez: And how much are they asking for? Ms. Lewis: Two fifty-two. Chairman Teele: Two ninety-five, reduced to two fifty-two. Board Member Sanchez: And your recommendation is to buy the property at two fifty-two? Ms. Lewis: Yes, sir, because in -- we have done some research, and there has been cases where we've acquired properties in -- well, at around two times the appraised value. And what this will do for the redevelopment district, especially since we're considering it as a part of the expansion 68 December 11, 2001 of the 91h Street Mall that will improve the values of surrounding areas, as well as allow us to continue with this project, which has already been authorized and has begun in the redevelopment district. Vice Chairman Winton: Is this the last parcel to be purchased for the 9th Street Mall expansion? Chairman Teele: It's the last improved -- it's the last improved parcel. Vice Chairman Winton: Well, 1 guess the question I'm trying to get at is, you know, you can always justify paying greater than some appraised value if you know you don't -- you know if you're at the end of the line. What you don't want to do is pay significantly over an appraised value if there is additional property to be bought, because you just raised the bar. So -- and I don't know how this fits. Chairman Teele: Commissioner, this is the last improved parcel. However, there is one additional parcel where the value is -- the purchase price is already three times what our appraisal is. So this does not affect that one that one much smaller structure there. That's the one that we authorized the City Attorney to seek eminent domain. This -- Vice Chairman Winton: We did authorize the City Attorney to -- Chairman Teele: Already, on that -- Vice Chairman Winton: On that parcel. Chairman Teele: -- on that parcel. Yeah. 69 December 11, 2001 M Vice Chairman Winton: OK. Chairman Teele: Now, the Attorney for this church is Tony Brigham, who would prefer that we do eminent domain. As you know, eminent domain would take some considerable time. And I really don't think it's in the best interest of the City -- of the CRA -- to entertain that. But to take the Executive Director's recommendation is what I strongly recommend. I do want, however, to bring to the Commission -- the CRA's attention the things that Ms. Lewis alluded to, but didn't make clear. Under this, we're going to spend some more money. We are going to make a video -- and they feel very strongly about this -- that will represent the life and work of Rabbi King. And for those of you who don't know, Rabbi King was one of the more colorful personalities that migrated to Miami, after having shut down President Jimmy Carter's church in Plains, Georgia. He was the gentleman who demanded to be seated in the church. He also had the distinction of running against me three times for public office, and was extremely colorful. His mission, which I think he called a divine mission -- and the Herald did a lot -- and we probably should have had the obit piece and all of that here -- was sort of a symbolic place where people went. After his death, it's fallen in deep state of disrepair, and, in fact, is the subject of feeding of homeless on street corners, in violation of City codes, among other things. This is clearly, at this point, a blight, a strong blight on the redevelopment efforts. And I think, given that this is a church, we're talking about acquiring, in effect, the property owned by a church that we really would be much better off not getting into eminent domain and all of that with this, and let's just try to work through the family's wishes, in addition to the little plaque that they would like to memorialize him. Would you move the item, Commissioner Regalado? Board Member Regalado: Yes, sir. Board Member Sanchez: Second. 70 December 11, 2001 0 Chairman Teele: Moved and seconded. Vice Chairman Winton: Commissioner Teele, Chairman Teele, I just inquired about eminent domain, and I think it's important to this discussion, in terms of the action we're going to take, which is to pay considerably above the appraised value. So I would like the City Attorney to put on record or to answer this question: What's the timing that it takes to eminent domain a property such as this? And what do you think the costs are associated with it, legal costs and others? Alejandro Vilarello (City Attorney): Well, there's two associated legal costs with an eminent domain process. But Lhe first place you need to start with is, you need -- the CRA needs to request that the City Commission take this property for a public purpose, because the CRA has been limited in its authority to exercise its eminent domain powers. The City is then limited in exercising its powers by some public purpose. So it has to be part of the public purpose, which means at some point in time, you can't use this for a private purpose or something less than a park, or some other kind of governmental use. So assuming that in the plans, this particular parcel, we're going to use it for some public purpose that would be a limit on the City's ability to go forward. Now, having said that, there's two eminent domain processes. One's a quick take, where essentially, you immediately -- you oppose the appraised dollars into the court registry. You immediately take -- you go to court and file a lawsuit, eminent domain action. Then at some time over the next year, a jury will determine how much you're going to pay. There's no backing out of that scenario. You'll pay what the jury awards, plus attorney's fees to the owner of the property, plus the City's Attorney's fees. Alternatively, you could take what's called a slow take, in which case, you'd go through approximately the same yearlong process. At the end of the jury award, you determine whether or not you want to acquire it for that price or not. In either case, you pay your attorney's fees and the attorney's fees for the property owner. 71 December 11, 2001 Vice Chairman Winton: And attorney's fees today. Mr. Vilarello: Well, it's -- at this point, in trying to retain counsel on the other parcel, our fee quotes have been in excess of four hundred dollars ($400) an hour, and in all likelihood, 80 hours or more of our lawyers' time. There are three agencies that do a lot of government eminent -- I'm sorry. Chairman Teele: Alex, would it be fair to say that somewhere between thirty and fifty thousand dollars ($50,000) would be what our attorney -- and remember, we're responsible for both sides. Mr. Vilarello: That's a fair statement, yes. Chairman Teele: So fifty thousand dollars ($50,000) is the number we've been looking at. So, I mean, you know, at that point, you're right there, anyway. Board Member Sanchez: Yeah. Vice Chairman Winton: So when you're looking at the differential between -- what are the numbers again? One -- Board Member Gonzalez: One forty-two to two ninety-five. Chairman Teele: The minimum legal fees, if we're successful, will be a hundred thousand dollars ($100,000). Fifty thousand on our side. The other side is going to charge at least that amount. Probably much more. Ms. Lewis: Commissioner Winton -- 72 December 11, 2001 OR Vice Chairman Winton: So it's a hundred thousand dollars ($100,000) additional -- Ms. Lewis: A hundred and ten thousand. Vice Chairman Winton: -- that we're going to pay when we could get stuck with a whole lot more than that in either of these processes. So. Board Member Sanchez: So based -- Chairman Teele: So iiiat's the motion, is to do it? Board Member Sanchez: Yes. Chairman Teele: And we do require four votes on this to pass. All those in favor, say "aye". The Board (Collectively): Aye. Chairman Teele: All opposed? Is there anybody being recorded no -- five, unanimous votes. 73 December 11, 2001 The following resolution was introduced by Board Member Regalado, who moved for its adoption: RESOLUTION NO. SEOPW/CRA 01-143 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY (CRA) AUTHORIZING THE EXECUTIVE DIRECTOR TO ENTER INTO A PURCHASE AGREEMENT FOR THE ACQUISITION OF PROPERTY LOCATED AT 910 N.W. 2ID COURT OWNED BY THE CHURCH OF DIVINE MISSION; 1) INSTRUCTING THE CITY ATTORNEY TO PREPARE REQUIRED DOCUMENTS INDICATING THAT THE ACQUISITION PRICE WILL BE FOR THE AMOUNT OF $252,000; 2) PROVIDING FOR CLOSING WITHIN 90 DAYS OF EXECUTION OF THE PURCHASE AGREEMENT; 3) PROVIDING FOR DATE CERTAIN AS TO THE TURNOVER AND PHYSICAL CONDITION OF SAID PROPERTY; 4) PROVIDING FOR THE MEMORIALIZATION OF THE RABBI KING, NAMELY A VIDEO AND BRONZE MARKER, HIS CONTRIBUTIONS TO THE OVERTOWN COMMUNITY; AND 5) PROVIDING FOR THE PRESERVATION AND DELIVERY OF HIS IMAGE THAT CURRENTLY EXISTS ON THE WEST SIDE OF THE STRUCTURE. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) 74 December 11, 2001 M Upon being seconded by Board Member Sanchez, the resolution was passed and adopted by the following vote: AYES: Board Member Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez Chairman Arthur E. Teele, Jr. Vice Chairman Johnny L. Winton NAYS: None ABSENT: None 41. DIRECT CRA EXECUTIVE DIRECTOR TO ESTABLISH SELL PRICE OF $50,000 FOR PARKING LOT P5 LOCATED AT 936 N.W. 3'm AVENUE WITH 100% OF PURCHASE PRICE GOING TO CITY'S DEPARTMENT OF COMMUNITY DEVELOPMENT AS PROGRAM INCOME WITH CONDITIONS THAT BUYER IS TO MAINTAIN PROPERTY AS PARKING LOT AND PROPERTY IS TO BE PUT ON TAX ROLL. Chairman Teele: The next item, please. Annette Lewis (Acting Executive Director): This is the discussion item addressing the sell price of P5, which is 936 Northwest -- Chairman Teele: What is the Manager's recommendation? Ms. Lewis: The Asset Management appraisal, which is also the recommendation, is twenty-eight 75 December 11, 2001 thousand dollars ($28,000) for this parking lot. Chairman Teele: Now, pursuant to State law again, if we're going to dispose of anything -- and Mr. Judy is the expert -- we have to give notice for 30 days and we have to do a lot of things. So we are going -- our plan was always to dispose of P5, and I'm recommending, notwithstanding the Manager's recommendation -- I mean, notwithstanding the Asset Management value, that a minimum value of at least fifty thousand dollars ($50,000) be established for the price. Twenty- eight thousand -- is the Manager's recommendation a part of this? Vice Chairman Winton: Commissioner Teele, I'm totally lost on this. Board Member Sanchez: It's number 12, sale price for 936 Northwest 3rd Avenue. It's P5. That is the parking lot next to Jackson Soul Food. Ms. Lewis: Right behind Jackson Soul Food. Board Member Sanchez: Right behind or right in front. Ms Lewis: That's the one that abuts Jackson Soul Food. Vice Chairman Winton: But I'm reading something about -- as a result, the actual amount due to Community Development is a hundred and thirty-one thousand dollars ($131,000). I don't understand it. Chairman Teele: Yeah, because -- Board Member Sanchez: Who are we selling it to? 76 December 11, 2001 Chairman Teele: It's got to be a bid. Commissioner Winton, this is a -- again, Community Development dollars -- now, Ms. Lewis, correct me if I'm wrong. We used CD (Community Development) dollars in this. Ms. Lewis: Yes, sir. Chairman Teele: This resolution, if we sell this, will have to come back. That one hundred percent of the purchase price goes to Community Development as program income. Ms. Lewis: Yes, sir. Chairman Teele: Ok. So that's the answer. Vice Chairman Winton: Are we trying to sell -- I just don't understand what we're really doing here. I'm trying to get that peace. I don't understand yet. Chairman Teele: Well, what we have is too much information here. It's a simple issue. We took a building that was a slum and blight. It had homeless on it. We bought it. We tore it down. We improved it. We turned it into a parking lot. Believe it or not, we spent a hundred and some thousand -- a hundred and thirty thousand, probably, which is just internal record keeping. But after you do all of that, that parcel is valued at twenty-eight thousand dollars ($28,000), OK? And that's what -- Vice Chairman Winton: Valued by whom at twenty-eight thousand? Chairman Teele: Well, by the Asset Management. That's why we asked for an outside opinion. 77 December 11, 2001 Ms. Lewis: Ms. Billberry had gotten an official appraisal prepared, and that's what came back. Board Member Sanchez: Mr. Chairman? Vice Chairman Winton: OK. So, I understand. Chairman Teele: Commissioner San -- it's valued at twenty-eight thousand dollars ($28,000), but because all of the money that was used was Community Development, we're keeping the record, detailed records, and if the lot is sold, it will have to be all of the money. One hundred percent of the proceeds will have to be turned in to Community Development as program income. But the only issue before us today is pay -- to establish a sales price. The Asset Management appraised and written recommendation is twenty-eight thousand, and I'm asking that it be at least -- established, at least for our purposes, for fifty thousand dollars ($50,000). If we don't get a bidder, we have to go back out with it again. Vice Chairman Winton: Are we required to sell this? Board Member Sanchez: Mr. Chairman? Chairman Teele: We're not required to sell it. But when we built it, we built it for the purpose of redeveloping it and putting it back out into the community, and trying to establish comparable values. Commissioner Sanchez. Board Member Sanchez: Mr. Chairman, this -- to me, it doesn't make economical sense or business sense. One, we bought the property for twenty-eight thousand dollars ($28,000). We put in a hundred and thirty thousand to create a parking lot, which this parking lot is so needed there. I mean, that was the -- the whole concept there was to create adequate parking This is 78 December 11, 2001 one of the parking lots that provides adequate parking for all the businesses that come in there. Now we're going to sell it for fifty thousand dollars ($50,000) or whoever buys it. The only good thing about it I see, it will go back in the tax rolls. Chairman Teele: Right. Board Member Sanchez: But other than that, somebody could buy it and put a fence in it, and it's no longer a parking lot. So, it defeats all the purposes that were set out, since -- it doesn't make sense to me. It just doesn't make any sense. Chairman Teele: Weil, let me try to explain to you. First of all, we paid seventy-two thousand dollars ($72,000) for it, not thirty thousand. It was a building. It was a vagrant building that was full of asbestos, that had been there for twenty years; that would be there for the next forty years. Commissioners, welcome to Redevelopment 101. And this is a problem with redevelopment. Redevelopment is -- the reason that we are a governmental entity doing this is that the private sector cannot do it. The only entity that can go in and buy buildings, tear them down, and put them back out on the -- to the public is a redevelopment authority. It is not going to ever make economic sense. If it makes economic sense, then you won't have a redevelopment authority. We are the only entity that can go in and do that. And redevelopment, by its very nature, means you're going to lose money. This is not about making money on the front end. It's about making money on the long end. The way we get our money back is one way: taxes. That's the in game for redevelopment. The property of P5 is one of three in a general area. It was the smallest one. The large parking lot, which is P3, which is -- this is a parking lot that houses how many cars, 12? Eight, twelve? Ms. Lewis: I'm sorry, sir? 79 December 11, 2001 Chairman Teele: How many -- Board Member Sanchez: No. More than that. Vice Chairman Winton: How many cars -- Chairman Teele: No. This is only an eight to twelve parking space. Ms Lewis: That is correct Chairman Teele: This is only a twelve -car parking space. P3 is the one that Commissioner Sanchez is making reference to, which is for the redevelopment of the whole area -- which is for the parking for the area. P5 is the one that we acquired for the purpose of getting it back out onto the tax rolls, and trying to establish comparable values. And, so, that was a part of our strategy when we first started out. There was P3, P4, and P5 all within the general area. Vice Chairman Winton: Is there a minimum time that this property has to remain in use as a parking lot or -- before we can sell the property? Chairman Teele: No. Alex Vilarello (City Attorney): The statute requires it to remain a parking lot for a period of time. It doesn't define how long, how short a period of time. I believe there is a recommendation that it be for at least a 10-year period of time. So, that would be a condition of the sale. Vice Chairman Winton: And in terms of our action at valuing this at fifty thousand dollars 80 December 11, 2001 ($50,000) today, that's all we're doing. We're not authorizing the sale of this property or even the marketing of this property by this action, is that correct? Mr. Vilarello: No. Yes, you are. Chairman Teele: Well, it was my understanding that, pursuant to -- when we brought these properties up -- and Mr. Judy was the Acting -- he was the Executive Director when this was done. We purchased P5 for the purpose of removing the slum and blight that was there. It was a two-story asbestos vacant building that had been there for the better park of twenty years and it was homeless congregated. We said, when we bought it, that we would develop it and turn it back over to the pubii; for the purpose of a parking lot. Now, at the time, both Mount Zion and Jackson Soul Food were asking us to give it to them. And my position is, we're not giving away any more land to anybody, churches or anybody. The key thing we can do is, we can provide a grant to somebody, but when you give away land, you destroy your values. And, so, what we're hoping is that either Mount Zion or Jackson will obviously acquire this property, and if they come to us and ask for support for that, then that's another story. But we want to get our property values up. Vice Chairman Winton: So -- but this action doesn't do anything, other than set value. And in order to sell it or even put it on the market, we've got to take another action at some point down the road? Chairman Teele: That was not my understanding. Board Member Sanchez: No. Chairman Teele: If you would not like to take an action, then why don't we defer the item, and 81 December 11, 2001 0 have -- Vice Chairman Winton: Because what I'm thinking about here is that, if we want to put this property -- future reference, there's going to be -- because you have convinced me, as I've told you several times, that the kind of parking facilities --parking lots that you have built in the CRA (Community Redevelopment Agency), as far as I'm concerned, really do add value because they're really class lots, and that gives the development community a sense that there's something positive going on. So, I've bought into that concept. There seems to me, however, if our mission is to clean slum and blight and we want to create sites for the private sector to come and buy from us, we have huge risk at spending a whole bunch of money to turn it into a parking lot, put it back on the inarket, because then we lose the parking that's valuable, and we've spent a lot of money to get it there. We could actually turn it into a park, literally. You know, green grass, nicely landscaping, the same kind of potential wall around it to create that same kind of thing, and spend a lot less money, if that's what our intent is. Chairman Teele: Our intent was to create a comparable value. We authorized the construction of five parking lots. Pl, which is the only one that has not been built, is up near 14tt' Street, right in front of St Johns Church, between 14th Street and 13th. That has not been built. P2 is behind the washhouse and over by where we were trying to build the fast-food franchise. And that parking lot was primarily designed to support the commercial activities in that vacant land over there, which we were calling the Job Creation Center. P3 is the large parking lot, which is servicing that entire area, which is behind -- which is directly in front of the building where we're providing the grant to build out the commercial area and, hopefully, create somewhere between fifty and a hundred jobs, the so-called Solomon Yuken Housing Facility there. P4 is the building -- is the parking lot right next to the Masonic Lodge, and that was primarily parking that Mr. Yuken had hoped to buy from us, at some point, as a way of addressing his tremendous parking for the housing. And P5 was a lot that Mount Zion and Jackson had both tried to get, 82 December 11, 2001 and we said we would go in and we would clean it up, but we would not give it to either one, and we would let the highest price determine it. If we can get a good price for P5, then we're in a much better position to meet with Mr. Yj�ken on P4. And that lot -- and P4, obviously, would have a value of well over a hundred thousand dollars ($100,000), if we were to dispose of it. But we made no commitment to Mr. Yuken or anyone to sell P4, but really to try to create comparable values in terms of it. There is no comparable. I mean, you never had a parking lot in Overtown. I mean, you don't even have parking in Overtown. So, what we're trying to do is create comparable values. Why don't we defer this item and -- Board Member Sanchez: Move to defer the item, Mr. Chairman. Vice Chairman Winton: Well, it seems to me that we're in a position to take some sort of action. I'm just a little -- because what you're -- in addition to -- you're trying to get a value base set here, but -- is this action -- are you trying to also get, as a result of this action, to actually put the property on the market? Chairman Teele: Absolutely. We're trying to get three things: One, we're trying to return this property back onto the tax rolls at the highest possible value that we can. Number two, we're are trying to establish a comparable value that will begin then to move up all of the vacant land and comparable properties, should we do it. And number three, it is our hope that the church or Jackson's will come in and bid it. Hopefully, they'll bid against each other and-- otherwise, if we don't have two bidders, somebody's going to bid twenty-eight thousand, and that will be it. Vice Chairman Winton: And are we going to require that any of the bidders maintain that lot as a parking lot -- Chairman Teele: Absolutely. 83 December 11, 2001 Vice Chairman Winton: -- for some period of time? Chairman Teele: That's a condition -- that would be a condition of the bid. Vice Chairman Winton: And are we going to further require them to put the property on the tax roll? Chairman Teele: Well, once we sell it, it's on the tax rolls right away. Vice Chairman Winton: Because if a church buys it, they have an exemption. And, so, we don't want to allow that exemption. Chairman Teele: But that would -- well, yes, we need to further require that. Yes. Vice Chairman Winton: So -- you know, if we had those conditions placed on this, I don't think the logic is bad, because there are no comparables and, so, we couldn't set the comparables. You do get it back into the marketplace. So, if we get taxes developing on this property, then you have additional revenue coming in that's going to make things begin -- feed the revenue stream here that can allow us to make some additional things happen. And over time, you're not going to sell these things at a lost, at all. Chairman Teele: Absolutely. So would you move it? Vice Chairman Winton: But getting it on our tax roll, I think, is very, very important. Commissioner Teele: All right. 84 December 11, 2001 11- Board Member Sanchez: But what assurance do we have that we don't sell it to a church and then it doesn't go on the tax rolls? Vice Chairman Winton: Because we put it in the -- Chairman Teele: Because that will be a condition that he's putting onto it. Vice Chairman Winton: Yeah, it's a condition of sale. Chairman Teele: First of all, all we're doing is approving-- we're not selling it. We're advertising it. If somebody doesn't buy it for our minimum price, it ain't gonna be sold. Vice Chairman Winton: And we're still going to have to approve any sale. Chairman Teele: You've got to approve any sale. Vice Chairman Winton: Or any contract, so ... Board Member Sanchez: I understand, Commissioner Teele. But, you know, if we accomplish what we want to accomplish here, which we work very hard at, I'm saying that five or ten years from now, there's going to be need for parking lots. And then we're going to sit here eight years from now and go "that was a bad deal. Why did we sell that parking when we're going to have to create more parking, with all the things that are going with the redevelopment in the area?" So, what I don't want to do -- and when I look at the numbers, we basically have put -- maybe you and I aren't in agreement on this issue, but the City -- the CRA has expended more than two hundred thousand dollars ($200,000), and now we're going to sell the property for -- we're 85 December 11, 2001 asking fifty thousand dollars ($50,000), or maybe it's twenty-eight thousand dollars ($28,000), if two bidders show. So, it doesn't make sense to give up even if it's three parking lots, which it's not. I just don't see it as a business -- it doesn't make any business sense. Now, I could see putting it in the tax rolls and, fifty years from now, you've made that money and some. I could understand that. Chairman Teele: That `s what we're saying. Board Member Sanchez: Well. But -- Chairman Teele: BUL just so that you know this, the only thing next to this parking lot is a church and Jackson Soul Food. So, there is no demand or need, other than for the church, which really wants it -- I mean, the pastor and the Board passed a resolution, which we turned down. And we turned down their resolution because the 3rd Avenue Business Corridor requirement states that we must first give priority to business activities, as opposed to open space or religious or whatever. And, so, what we're trying to do is build up the market. And I think, with Commissioner Winton's restrictions and a minimum price, if we don't get the minimum price, we're just going to be stuck with it. Board Member Sanchez: And the minimum price is fifty thousand? Chairman Teele: That's what I would recommend. Vice Chairman Winton: Right. Do we have a motion? Chairman Teele: No. 86 December 11, 2001 Board Member Sanchez: No. Vice Chairman W;-iton: I'll make the motion. Chairman Teele: Moved. Will you second it, Commissioner Gonzalez? Board Member Gonzalez: Yes, I'll second. Chairman Teele: All those in favcr say "aye." All opposed? Board Member Sanchez: One no. Chairman Teele: One no. The following motion was introduced by Vice Chairman Winton, who moved for its adoption: SEOPW/CRA MOTION NO. 01-144 A MOTION DIRECTING THE CRA EXECUTIVE DIRECTOR TO ESTABLISH A SALE PRICE OF $50,000 FOR PARKING LOT P5 LOCATED AT 936 N.W. 3' AVENUE WITH 100% OF PURCHASE PRICE GOING TO THE CITY OF MIAMI' S DEPARTMENT OF COMMUNITY DEVELOPMENT AS PROGRAM INCOME AND WITH CONDITIONS THAT BUYER IS TO MAINTAIN PROPERTY AS PARKING LOT AND PROPERTY IS TO BE PUT ON TAX ROLL. 87 December 11, 2001 Upon being seconded by Board Member Gonzalez, the motion was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny Winton Board Member Angel Gonzalez NAYS Board Member Joe Sanchez ABSENT: Board Member Tomas Regalado 42. DIRECT CRA EXECUTIVE DIRECTOR TO PROVIDE $15,000 ONE-TIME GRANT, WITHOUT PRECEDENT, FOR PURPOSE OF ASSISTING POINCIANA VILLAGE HOMEOWNER'S ASSOCIATION WITH PAYMENT OF CURRENT BILLS, DIRECT EXECUTIVE DIRECTOR TO REPORT IN 60 DAYS ON ANNUAL FINANCIAL PLAN FOR THIS PROJECT. Chairman Teele: All right. We've got the issue that everybody's here on, and Mr. Igwe, why don't you come forward and give us a good summary. Does everyone in the public that's here on Poinciana Village have access to the audit report here? All right. Madam Director, please. Victor Igwe (Director, Internal Audit): Victor Igwe, Internal Audit. Back in July of this year, we were directed to perform the review of specific transactions that relate to Poinciana Village. There were five specific issues that were looked at. The first and foremost to us, the promises that were made to the landowners to entice them to invest in the partnership. Our review disclosed that there is — I mean, there's only one original landowner that invested in that partnership, and that original landowner is the Sawyer's Development, Inc. They made two 88 December 11, 2001 investments. The first investment was made in 1986. They invested one hundred and fifty thousand dollars. That investment gave them limited partnership status, and that investment also calls for the Sawyers to get specified percentages of return and also return an investment. On exhibit 1 of the report, which is on page 18, it shows the original principal, which was invested on February 1, 1986. They invested a total of a hundred and fifty dollars ($150). The accrued interest... Vice Chairman Winton: They invested what? Unidentified Speaker: A hundred and fifty thousand. Mr. Igwe: A hundred and fifty thousand dollars ($150,000). The accrued interest from '86 through our competition in July of this a year, a total of two hundred and forty-two thousand five hundred dollars ($242,500). The total principal of accrued interest amounted to three hundred and eighty-two dollars and five hundred. Now, the total payments that they've received up-to- date is only sixty thousand dollars, eight hundred and fifty-eight dollars. Therefore the balance due, as of the date of this report, is three hundred and twenty-two thousand three hundred and twenty-one dollars and twenty-three cents ($322,321.23). That investment was made in 1986. There was a subsequent investment that was made in 1990. Prior to the investments, the Sawyers had that principal in a certificate of deposit, which, on interest — which was returned 11.65 to 13.8 percent. They invested that additional two hundred thousand dollars ($200,000) into the partnership, not as a limited partner, but as a (inaudible). The accrued interest, up to July 31 s` of this year, was a hundred and ninety-eight thousand six hundred and fifty-seven dollars ($198,657). That gives us a total of principals and accrued interests of almost four hundred thousand dollars ($400,000). They get paid sixty-six thousand nine hundred and forty-nine, and currently they are owed three hundred and nine thousand, nine hundred and sixty-one dollars and eighty-two cents ($309,961.82). 89 December 11, 2001 I-,,11� 7 Vice Chairman Winton: Well, what happened to the three hundred and twenty-two thousand from exhibit 1 ? Mr. Igwe: That's the original investment that was made as the limited partnership in the partnership. It's separate and distinct from the second one. Chairman Teele: On page 5, on the last paragraph, you say, "therefore, the Sawyers may have regrettably lost of total of six hundred and fifty-four thousand twenty-nine dollars and fifty-five cents ($654,029.55)." Is that still a good number? Mr. Igwe: That's the correct number. Chairman Teele: Well, I never heard you say that number. Mr. Igwe: Well, the combination, when we add to the 322 from the 155... Chairman Teele: If it was your money, would you combine it? Mr. Igwe: I don't think I would feel good. Chairman Teele: OK. So, what we... Vice Chairman Winton: Well, I don't understand yet, so... Mr. Igwe: OK. There are two investments, sir. The first investment was, as a limited partner, which was a hundred and fifty thousand dollars ($150,000)... 90 December 11, 2001 M 1.,V Vice Chairman Winton: And you assumed a ten percent interest rate; you added all that up, and then get... Mr. Igwe: Yeah. (Inaudible) It was specifically specified in the partnership. Vice Chairman Winton: Oh, at a ten percent annual return to investors on a limited partnership interest. Mr.Igwe: Exactly. Vice Chairman Winton: So, that would have come to three hundred and twenty-two thousand after the sixty thousand they received. Mr. Igwe: Right. But when you add that to the 150, that gives us a total principal and 'a total interest of three hundred and eighty-two thousand. Vice Chairman Winton: But this other two hundred thousand was treated as equity. Mr. Igwe: An additional — it was an additional contribution. It's not a contribution as a limited partner. Vice Chairman Winton: Right. It's an equity contribution, you said. Mr. Igwe: Right, equity. Chairman Teele: No, no, no, no. No, no. Where are you getting the word equity? Because it 91 December 11, 2001 am was my understanding, when we had this discussion in '98, that it was a loan. Mr. Bloom, you need to correct the record because this thing played out — and what we said we would do — it's taken us three yep -s, but to get to the bottom of this. William R. Bloom: William R. Bloom, 701 Brickell Avenue. Yes. It was my understanding that, initially, the Sawyers invested one hundred and fifty thousand dollars ($150,000) for a limited partnership interest, and, in approximately 1998; they had made a loan to the partnership of two hundred thousand dollars ($200,000). Vice Chairman Winton: In 1990 or 1998? Chairman Teele: Nineteen ninety. Mr. Bloom: Excuse me. Nineteen ninety. Vice Chairman Winton: Of two hundred thousand, but there is — and what happened to all the interest? There's an interest table here of a hundred and ninety-eight thousand six hundred and fifty-seven dollars ($198,657) that you assumed here. Who got that? Mr. Igwe: That interest was not paid because the partnership lost two point one million dollars ($2.1 million) from 1988 through year 2000. Vice Chairman Winton: Well, if it wasn't — was this interest earned; is that what you said this was? Mr. Igwe: It accrues, but wasn't paid. 92 December 11, 2001 U Chairman Teele: It was accrued, but not paid out. Mr. Igwe: Accrued but not paid — well, a-tually, they got paid a total... Vice Chairman Winton: But how do you accrue it at 13 percent? I mean, where did that come from? Mr. Igwe: Well, the — first of all, the second contribution of two hundred thousand dollars ($200,000) did not have any written agreement. It was a verbal agreement between the partnership and the Sawyers. Vice Chairman Winton: That said that the interest rate would be what? Mr. Igwe: That says that they would have paid 11.65 percent and 13.8 percent, if you look down what has the asterisks. Vice Chairman Winton: Try that on me again. Mr. Igwe: OK. On page 19... Board Member Winton: I'm looking at it. Mr. Igwe: OK. They invested — if you look up on the schedule, on 3-8-90 they invested a hundred thousand dollars ($100,000). Vice Chairman Winton: I got it. Right. 93 December 11, 2001 Mr. Igwe: OK. That hundred thousand dollars was withdrawn from a CD that was earned in the interest of 11.5. Then, subsequent to that, they invested an additional ninety-five thousand dollars ($95,000) on that same date, from a second CD portfolio that was generating 13.8 percent. (Inaudible), in 1992 the parties agreed that the interest rate should be at eight percent, a flat interest rate. Vice Chairman Winton: And accrued, not paid? Mr. Igwe: And accrued. So, when you state percentages and came up with the interest. Vice Chairman Winton: OK. I'm clear at this point. Mr. Igwe: So, like the Commissioner pointed out, the Sawyers may have lost in excess of six hundred thousand dollars ($600,000) in this investment venture. The other audit finding we have here, as it relates to the commitments of promises that were made to perspective buyers at a time the units were sold. The brochure that was used at a time they were marketing those units disclosed or indicated a lot of amenities that were provided. Among them includes — I'm on page 13. It indicated that it will provide private exterior decks, and to raise modern swimming pool, landscape deck, meeting rooms, enclosed recreation areas and large landscaping. Vice Chairman Winton: Where are you? Mr. Igwe: On page 13. When we set up to do this audit, we were specifically directed to review specific transactions. This happens to be one of those. The audits disclose that these amenities that were promised up to the date of the audits must have been — had not been realized. The reason being, that there's an ongoing contractual issues between the CRA and the developer. And we are recommending that those contractual issues be resolved, and the resolution of those 94 December 11, 2001 Cm contractual issues will enhance the realization of these amenities. Mr. Bloom: To clarify the legal issues that we're speaking to, the amendment to the lease with respect to Poinciana Village set certain conditions that had to be met by the developer for the developer to have development rights with respect to the 91 units. Those conditions were not met by the terms of the lease. The developer did not get the right to develop those 91 units and notice of that has been sent to the developer. Chairman Teele: All right. We need to get through this. Mr. Igwe: The last objective that we looked at was the reasonableness of the association fees that are currently paid by the owners, and we have a schedule, which is exhibit 4, I believe — exhibit 3, I'm sorry, and it's on page 20. On that exhibit we did two analyses. We looked at the projected annual costs of maintaining the property at the current levels, which is the 64 units, and we also looked at the projected costs for the second phase, which will be the initial first phase and the second phase, and that will be 155 units. Our analyses indicated that what it will actually cost them to properly maintain the first phase of this project would be two hundred and sixty-five dollars and thirty cents ($265.30) for each unit. And we also did some analyses and projected some costs as it relates to the entire phase I and II projects, and that would have resulted in the hundred and sixty-nine dollars and thirty-three cents ($169.33), but, however, currently, the owners are paying two hundred and eight dollars ($208) for association fee, so we're recommending that the board decide to give them some form of relief as it relates to association fees. Vice Chairman Winton: And we do that how? Mr. Igwe: Excuse me, sir? 95 December 11, 2001 �1, -_f Vice Chairman Winton: Don't you have a specific recommendation in here? Mr. Igwe: We are recommending that the board raise the land lease fees... Vice Chairman Winton: About how much? Mr. Igwe: For ten dollars and twenty cents ($10.20) a month. Annette Lewis (Acting Executive Director): The total amount in our report... Vice Chairman Winton: It's not ten dollars ($10). What's the land lease fee? Ms. Lewis: Ten thousand nine thirty-seven and fifty-two cents. Chairman Teele: Say that again. Ms. Lewis: As referenced in page 17, it's ten thousand nine thirty-seven and fifty-two cents. Vice Chairman Winton: And is that an annual fee? Ms. Lewis: Yes, sir. Mr. Igwe: Yes, that's annualized. Vice Chairman Winton: And, so, if we waive the land lease fee until such time as the other phase, which was promise these tenants in place, then the estimated — the monthly association 96 December 11, 2001 fees will be reduced from a hundred and ninety-three dollars and seventy-six cents ($193.76)? Chairman Teele: No, no. It's two... Mr. Igwe: Well, let me clarify something. Chairman Teele: The fees are, right now... Mr. Igwe: The two hundred and eight dollars ($208) that are currently paying is not even sufficient to currently pay for all the costs associated with the 64 units, which is the first phase of the development projcct. So, if you waive the ten thousand dollars ($10,000), they still don't have enough-- you know, the amenities really — that would really be needed to pay for the (inaudible) associated costs would be two hundred and sixty-five dollars ($265). So, if you (inaudible) want to give them a relief, I will consider giving them relief based on the 155 units, which will be the hundred and sixty-nine dollars and thirty-three cents ($169.33). Chairman Teele: Let me... Vice Chairman Winton: I didn't follow that at all. Chairman Teele: Let me — before we all get into this, let me just say this. This is a very complicated matter, but it's very bottom line to everybody that has a unit over there. I would state three things very quickly. Number one, we need to be careful about the precedent we set, that we don't wind up with a cost that, one, we're responsible for when we're not responsible; number two, we need to also be careful that we don't distort the marketplace. In other words, whatever is reasonable and associated with the units that are there, we don't need to disturb that. And number three; I think we should provide some relief. However, I strongly take exception 97 December 11, 2001 * -e from the outstanding auditor's recommendation, which is a policy recommendation. I think providing a waiver of land rents is the last thing we should do. I would strongly support providing them with a grant to pay the l--nd rent, but I don't think at — for one hundred percent of it, but I don't think we ought to not get our money because I think it raises a whole series of legal issues, unintended, as to whether or not we've created some precedent that they don't have to pay it down the road. So, whatever it is -- if it's ten thousand dollars ($10,000), 1 would strongly recommend a grant to pay that so that that could be paid back to us, because I think it's important that the land rents be paid. Remember, it is the land rents that was the basis of our two million dollar ($2,000,000) settlement. That's what was owed to us, folks, so let's don't give up — or let's don't give up the economics of how this thing has been put together. My recommendation to the board, subject to the discussion of the Commissioners, is that we should recognize some small amount of money now, whether it be ten to twenty-five thousand dollars ($25,000), that we should provide immediately against a credit toward whatever the Executive Director comes back and recommends, in writing, having met with them. But I don't think we can negotiate in public how this is going to be — for example, the Executive Director -- you are a CPA (Certified Public Accountant), is that right, Ms. Lewis? Ms. Lewis: Yes, sir. Chairman Teele: So, the Executive Director in this case is uniquely, I think, trained to sit down and work through all of these issues, but what we don't want to do is not recognize what the internal auditor has said, is that, if we're going to do this, we need to ensure that this thing is sufficiently funded. In other words, whatever we do, we need to insist that there are reserves established so that we're not being — come back every six months saying, "by the way, we didn't add this." We need to sit down and go through this line by line by line. I strongly support that we ought to create a reserve — a credit right now of fifteen thousand, twenty thousand. I understand that the Florida Power & Light bill is owed immediately. I see that the security bill 98 December 11, 2001 of fifteen thousand dollars ($15,000) is owed immediately. So, somewhere around twenty thousand dollars ($20,000) as a — authorizing an immediate payment against a credit — against an agreement that the Executive Director would come back in 30 days and present to us, I think would be a fair way to do it, but I'm really concerned now about voting now to forgive rent, for example, because I think the one thing we ought to be prepared to do is give them a grant for the rent and let them pay us our rent back because I think, that way, we establish the precedent that this has value and that we're not waiving rent. Because once we start waiving rent — I can tell you, there's a whole bunch of other folk that owe us rent, that they're going to come in and ask for waivers too that haven't been paid, and we've been very laid back about collecting rents. But some churches owe us rent; some other folks owe us rent, and I'm just very concerned about the unintended consequences of waiving rent at this point. I would have no problem providing a grant for the rent on an annual, you know, case -by -case approach, but they have to pay it back to us. Board Member Sanchez: Mr. Chairman? Vice Chairman Winton: Yeah, this would be really a loan. Board Member Sanchez: I'm prepared -- yeah, it's... Vice Chairman Winton: I mean, not a —if we're going to have to pay it — could be zero interest. Are you — you're suggesting that they're going to pay it back at some time? Chairman Teele: I would propose that it be a grant. Board Member Sanchez: A grant would guarantee of reimbursement when they complete the additional units. 99 December 11, 2001 .,00 Chairman Teele: I would propose that it be a grant to them, but I think whatever we provide them — I'm talking about a grant, plus we've got to provide them with another grant. We've got to provide them with... Board Member Regalado: But a grant is a grant. Chairman Teele: A grant is a grant. And they're not going to have the money to pay us back. I mean, you know, this isn't a commercial unit. These are all houses. These are residential and I don't think we ought to get into loans on this thing. We either ought to give them a grant or we ought to say, "Look, you know, we're not going to give you that money because we're not a bank." And I don't think we should get into — I'm adamantly opposed to loans by the CRA, by the way. I'm strongly in support of grants. If it's going to carry forth on a redevelopment purpose, then let's give them a grant and move on. So, Commissioner Winton, Commissioner Sanchez, Commissioner Regalado. Board Member Regalado: You said it. It's too complicated, but for me, it's very easy to understand. It's been said that the most important investment a person makes is a home, so when a young couple gets married, they do the numbers and say, "Can we pay? Can we have this down payment? Can we pay the mortgage?" When these folks went to buy, they did their numbers according to what they were told that it was going to happen, that is, how many units and the amount of money that they would have to pay for maintenance and fees and all that. It turned out that it was bad business and the City got in the middle and — so happen now they're stuck with a lot of bills. And, you see, my problem is that — I recognize that we need to come up with something immediately, but we also need to do something that, for them, means that they will be committed to keep living there because it's the most important thing. If we say, "Well, you know, we're going to see what we can do in the future and we're going to try to untangle 100 December 11, 2001 this mess," there is going to be some people that says, "You know, I'm giving up. I'm going to lease or see my apartment, my unit," and at the end of the day, we're going to have an empty project. We need to say today here that we support these people and that we're ready and willing to go an extra mile so they can hold on until we resolve this problem. So, Mr. Chairman, I understand, a grant is a grant and I think that if we have to, we should ask the CRA, say, well, you know, we need to save that building, and we are going to go out with a checkbook and pay the electricity bill, whatever, maybe not individually but collectively, and say the building for the board — for the residents there. So, I am prepared to support any grant that this board will decide on, but also to make a commitment that, you know, in three or four months from now, when the bills will start piling up again, we're going to have some kind of solution for this problem. So, Mr. Chairman, I'm reauy to vote. Board Member Gonzalez: Mr. Chairman, I have a couple of questions. Chairman Teele: Commissioner Gonzalez. Board Member Gonzalez: One of my questions is, what is the actual deficit that they're running into now? Mr. Igwe: You mean the total... Ms. Lewis: I think Mr. Randy Ross is here from the Homeowner's Association, who does the accounting. Randy Ross: Yes. I'm Randy Ross, Treasurer of the Poinciana Village Homeowner's Association. You asked what the actual deficit is right now? 101 December 11, 2001 CM Board Member Gonzalez: Yes, sir. Mr. Ross: Bear with me a second while I locate it. Our current total accounts payable, (inaudible) invoices on hand, is seventeen thousand six hundred eighty-nine dollars and thirty- seven cents ($17,689.37). Of that, Fifteen thousand dollars ($15,000) or fifteen thousand thirty dollars and seventeen cents ($15,030.17) are past due invoices. And roughly twelve thousand dollars ($12,000) is owed to our security company, which is kind of our biggest immediate problem. Board Member Gonzalez: How old is this building? How old is this building? Mr. Ross: The first building was completed in 19—I believe 1988. Board Member Gonzalez: Do you have a reserve account for whenever you need to do the parking lot, to replace your roof, to do your — you have — you never did that? Mr. Ross: We do not know. Board Member Gonzalez: The Condominium Association Board of Directors never opened a reserve account, as mandated by Florida Statute? Mr. Ross: No, sir, we haven't. We haven't had any money to do that, and that is mandated but it also can be waived with a vote of the general membership. Mr. Igwe: That was one of our recommendations, for them to have a reserve account. Board Member Gonzalez: I see that we have a problem now. We have a problem, that we need 102 December 11, 2001 to preserve these families in that building; we need to help them one way or the other come up with the — paid up the bills, and be even with their expenses, but what really concerns me is what is going to happen in the future? I mean, what — how long is this going to take place? For how long is this going to, you know...? Chairman Teele: Commissioner Gonzalez, you've just put your finger on the issue. The issue is not the problem — the issue for these fine gentlemen is the problem that they're presenting. The issue for us is, how long are we going to be in this, and what kind of precedent are we creating? The day you let the first dollar out the door, we've created a precedent. I want to correct one thing that Commissioner Regalado may have left the impression. We just put money into this. I mean, no good deed goes unpunished. The first project that I undertook, as Chairman was to complete the phase III or the phase that was just completed. How many units was that? Mr. Ross: Twenty-four. Chairman Teele: Twenty-four. So, 24 of the people that are there, at least, could not have relied upon what was being said in '88 and before. I mean, because this project is in real trouble and 24 of those units have been occupied for less than a year now — just about a year — what is it, a year and... Mr. Ross: Almost two years. Chairman Teele: Almost two years, OK. So, you know, we do have that distinction, but we need to treat the whole property as one project. What is your request of us today? Dale Bryan: Mr. Chairman, thank you, sir. Dale Bryan, from the Association also. We did share with you some additional information from the auditors and, basically, I think we are in 103 December 11, 2001 4 :_, M agreement with the numbers. And, as Mr. Igwe said, it takes two sixty-five per month to run — for us to stay whole, as the Commission indicated they wanted to do. And if it's completed, we wart 169. So, the difference basically — the difference that's required on a monthly basis, including the waiver or if you want to add that back some other way, would be the lease payment and an additional eighty-one dollars seventy-three cents ($81.73). That totals five thousand two hundred and thirty seventy-two. If you're saying.... Chairman Teele: Per month. Mr. Bryan: Per month Chairman Teele: Wait, wait, wait. Let's be clear on the numbers. Mr. Bryan: Per month. Per month, sir. Yes. Chairman Teele: Five thousand how much? Mr. Bryan: Two hundred and thirty seventy-two per month. Chairman Teele: Does that include the rent payment? Mr. Bryan: Yes. Chairman Teele: To the CRA? Mr. Bryan: Yes, it would. 104 December 11, 2001 Chairman Teele: So, five thousand dollars ($5,000) a month or roughly sixty thousand dollars ($60,000) a year is what your request would be for us? Board Member Sanchez: Yes. Mr. Bryan: Well, that would say that the development won't start for a year. We will finish it. But whatever the period is that it takes for the development, that's what we would need. Chairman Teele: Well, it's going to take at least 18 months to do a development, so — or at least, you know, two years. Mr. Bryan: I'll take your numbers, sir, 18 months. Board Member Gonzdlez: So, we're talking ninety thousand dollars ($90,000). Board Member Winton: No, no, no, no. No, no, no. No, no, no, no. Chairman Teele: Ain't no permits been pulled, so... Vice Chairman Winton: No. Here's — listen. The actual cost, according to these numbers, is two hundred and sixty-five a month. The projected annual cost, that there's 155 units is 169 per month. So, that has to be in somebody's estimates over there, that they had to anticipate that, at minimum, I'm going to be paying a hundred and seventy dollars ($170) a month, and so the differential between the 265 and the 169 for 64 units is six thousand dollars ($6000) per year. Now, I don't know how we jumped to sixty thousand. At sixty, what are we doing on — you have to have an anticipation that you're going to pay something for your maintenance fee; otherwise, you wouldn't have moved into a condominium. There's an anticipation that you're 105 December 11, 2001 �_ w going to have a charge every single month. The anticipation couldn't have been that you're never going to have a maintenance fee. Mr. Bryan: May I just go over the numbers we have here, and...? Vice Chairman Winton: Please. Mr. Bryan: I think Mr. Igwe might be able to shed some light into that too. The present costs, what it actually takes for us to pay the security, the light, the water, all the stuff that (inaudible) for the common areas is two sixty-five thirty, as you just remarked. What it would take, bearing all 164 units — 155 units when it's completed, would be one sixty-nine. The difference between that, per unit, is ninety-five ninety-seven per month. All we did, basically, was to annualize the amounts that we would need. Chairman Teele: Let me ask you this because -- Mr. Bryan: I'm sorry --for the total on a monthly basis. Chairman Teele: -- Commissioner Winton is touching right upon the point that I think is going to get everybody the sticker shock here. Does your assumption — see, there're two things that I want to ask about your number: number one, does your number — what does your number assume the annual cost is going to be based upon those other units? How many other units we're talking about, 90 units, 91 units? Mr. Igwe: Ninety-one, right. Chairman Teele: What is your assumption of the additional costs associated with the 91 units? 106 December 11, 2001 1.01 And this is why this is a lot harder than just taking a number and dividing because, remember, those are — that's a — what is it, a 20-story building, as presented? Mr. Bryan: If I might refer, sir, to the... Chairman Teele: What was it? Twelve? Twelve -story — 12 stories is (inaudible). Mr. Ross: Twelve stories. Mr. Bryan: Twelve stories, yeah. Chairman Teele: What does your assumption of the additional dollars? Mr. Igwe: That would the difference between 314. Chairman Teele: No, no, no, no. Vice Chairman Winton: Yeah. And I made a mistake by the way. My statement was absolutely in error. I reran my number and their number is right. My number is wrong. Chairman Teele: It's close — their number is right. Vice Chairman Winton: Yes. Chairman Teele: But I'm trying to understand, do they have the whole number or they're giving us their number. 107 December 11, 2001 Mr. Bryan: This is the auditor's number that we have adopted, sir. Chairman Teele: So, you've taken his number? Mr. Bryan: Yes. Chairman Teele: Victor, what do you assume will be the incremental increase cost? Mr. Igwe: That would be the difference between three hundred and fourteen thousand nine hundred and ... Chairman Teele: No, no, no. The additional costs to operate. Mr. Igwe: The additional costs to operate the second phase? Chairman Teele: Yes. Mr. Igwe: That would be —just give me a second. Mr. Bryan: Mr. Chairman, while he's doing that, may I just interject, sir? Mr. Igwe: That would be about a hundred and eleven thousand dollars ($11,000). Board Member Sanchez: How much? Chairman Teele: A hundred and eleven a year? 108 December 11, 2001 M Mr. Igwe: A hundred and eleven thousand -- Board Member Sanchez: Eleven thousand. Mr. Igwe: --a year, right. Chairman Teele: See — let me tell you something. You're not going to run a 12-story building with a full-time clerk or security or anything for eleven thousand dollars ($11,000) Mr. Igwe: Excuse me, sir. Keep in mind that some of the costs are fixed. Some of them are variable. Chairman Teele: I understand. I understand. But you've got the structure there. You've got an 11-story building that you're adding, and my question is, how much new cost are you adding for the security, for the maintenance, for the receptionist or whatever for that new building? Mr. Igwe: It would be a hundred and eleven thousand dollars ($111,000) — approximately... Vice Chairman Winton: Right, hundred and eleven thousand. Chairman Teele: Commissioner -- did you want to make a point? Mr. Bryan: Mr. Chairman, to say what were the additional costs would be to say that the 265 that we currently pay is reasonable because the whole problem is, the 265 that it actually cost now is totally out of line. It's more than we should pay. So, the comparison needs to be what we would pay if everything was in order, which would be 169 per unit, per month. 109 December 11, 2001 Chairman Teele: Well, I think the point that I want to get back to, that this just underscores Commission Winton and Commissioner Gonzalez just touched upon. If we don't get that other complex built, we're going *o be dealing with this on an annual basis for the next three to four to five years, if we take it up the first time. Mr. Attorney. Mr. Bloom: Commissioner, just to add to your statement, again, I want to reiterate, the 91 units was to be constructed pursuant to the original RFP (Request for Proposal) for Poinciana Village. The CRA had taken the position that the rights with respect to those 91 units has terminated, and, so, there would be no 91 units as originally envisioned. The CRA would be, in the future, go out with a new RFP to select another developer to develop those units, so you should take that into consideration in your deliberations on how to help these individuals, with respect to their problems with the assessments, but it's not realistic to factor into your planning that they'll be 91 additional units constructed pursuant to the old deal when the old deal is no longer on the table. Chairman Teele: Commissioner Winton, you're the developer here. We have really got to expedite that next phase if this project — otherwise, we're just going to be — this is going to become a cash... Board Member Winton: Well, we can't expedite that until we get the lawsuit resolved, right? Chairman Teele: Is that phase under a lawsuit? I thought Commissioner... Mr. Bloom: Commissioners, no, there is no lawsuit at all involving Poinciana Village... Chairman Teele: Are we free to go out right now with an RFP on that? Mr. Bloom: That's true. Yes, we are, sir. 110 December 11, 2001 Vice Chairman Winton: There's the... Mr. Bloom: The issue is — why I say that, legally, based upon the lease documents, Poinciana Village Limited, who is the tenant under the lease, has no rights to phase II of the project. We've told them that their rights have terminated. They have communicated back to us that they believe they do have rights with respect to that phase. Chairman Teele: Well — see now we're getting ready to... Vice Chairman Winioii: That's a different story. Chairman Teele: Commissioners, I think this is, as Commissioner Winton said, is a very complex matter. I think we've got a precedent. I would recommend that we provide a fifteen thousand dollars ($15,000) one-time grant immediately to Poinciana, to pay current bills -- you know, in the spirit of December 23ra, 4th, and 5`}', to pay current bills, subject to the Executive Director's approval, and that the Executive Director should report back to us within 60 days on a plan, a financial plan relating to this project, that would be an annual financial plan and not a permanent financial plan. Vice Chairman Winton: And I can tell you from where I sit, I see nothing but — even though this is within the CRA district, where you can rationalize periodically different rules, but I see nothing but headaches coming for us if we do anything other than what you just said at the beginning of the statement, and that is, in the spirit of trying to provide some support to this complex, we would make a one-time grant of fifteen thousand dollars ($15,000), but to get into the business of bailing out people's condominium fees is — I can't think of a worse kind of precedent to set, and where that ultimately takes us with any other future developments within 111 December 11, 2001 the CRA district or any future CRA districts. Chairman Teele: Is there a second to that motion? Vice Chairman Winton: Second. Chairman Teele: No, no. That's your motion. Vice Chairman Winton: Oh, OK. Board Member Gonzalez: I'll second that motion. Vice Chairman Winton: Second to my motion. Board Member Gonzalez: I'll second the motion. Chairman Teele: OK. The motion is that the CRA, in the spirit of December 23rd, 24th, 25th is considering — when is Kwanzaa, by the way, 26th, 27th, 28th9 Twenty-sixth. All right. Twenty- third through the 28th or whatever. Kwanzaa is actually, what, eight days, seven days? In any event, in the holiday spirit, a one-time grant, without a precedent, for the purpose of assisting, subject to the approval of the Executive Director of the appropriateness of the expenditures that will be made pursuant to that grant. Board Member Gonzalez: Mr. Chairman, that — this grant — this is going to be a solution on a short-term. We need to find out a solution for a long-term because this is going to come back to us next month or within two months. 112 December 11, 2001 Chairman Teele: Right. Well, let's do this part first. Vice Chairman Winton: And I'm trying to send a signal that, you know — it might come back, but it's going to — I'm going to be hard pressed to say yes again. You know, I don't — I just don't see that as our role. Chairman Teele: Mr. Attorney. Mr. Bloom: Commissioners, ir. light of the legal situation with respect to Phase II, I would recommend that the board pass a resolution authorizing special counsel to file declaratory action with respect to phase it so the title can be clear. Chairman Teele: Right after this motion. Right after this motion. Now, this is to the Homeowner's Association and this is without... Board Member Sanchez: In the spirit of giving. Chairman Teele: In the spirit of the holiday, and this is not a precedent, OK? In other words, this is a one-time kind of issue. And all the other issues are left unresolved at this point in time. Is that... Mr. Bryan: What you're saying, so that will buy us time, while all the issues are worked out? Chairman Teele: Right. Is that satisfactory to you, Mr. Bloom, and... Mr. Bloom: Yes. 113 December 11, 2001 �. r Chairman Teele: All right. Madam Director? Now, the one thing I want to make sure — and I don't want to get the NET (neighborhood Enhancement Team) people on us — I want to make sure that your authority to release the funds is conditioned on the appropriateness of the expenditures and compliance with the NET requirements that are there. In other words, we've got a bunch of code issues there and that trailer has got to go. You cannot have a construction trailer where there is no permit been pulled, and we're not going to provide a subsidy to maintain something that is blight. So, I want to be very clear about that. Ms. Lewis: No. The tractor and... Chairman Teele: The Lractor has been removed. Ms. Lewis: Right. But the trailer is still there. Chairman Teele: OK. Is that acceptable to you as a condition on the motion? Vice Chairman Winton: Absolutely. Board Member Sanchez: Call the question. Chairman Teele: All those in favor say "aye." The Commission (Collectively): "Aye." Chairman Teele: All opposed? 114 December 11, 2001 The following motion was introduced by Board Member Winton, who moved for its adoption: SEOPW/CRA MOTION NO. 01-145 A MOTION DIRECTING THE CRA EXECUTIVE DIRECTOR TO PROVIDE FIFTEEN THOUSAND ($15,000) ONE-TIME GRANT, WITHOUT A PRECEDENT, FOR THE PURPOSE OF ASSISTING THE POINCIANA VILLAGE HOMEOWNER'S ASSOCIATION WITH PAYMENT OF CURRENT BILLS, SUBJECT TO THE APPROVAL OF THE EXECUTIVE DIRECTOR; FURTHER DIRECTING THE EXECUTIVE DIRECTOR TO REPORT IN vu DAYS ON AN ANNUAL FINANCIAL PLAN FOR THIS PROJECT, SUBJECT TO COMPLIANCE WITH THE NEIGHBORHOOD ENHANCEMENT TEAM'S (NET) REQUIREMENTS AS IT RELATES TO CITY CODE VIOLATIONS. Upon being seconded by Board Member Gonzalez, the motion was passed and adopted by the following vote: AYES: Board Member Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez Vice Chairman Johnny L. Winton Chairman Arthur E. Teele, Jr. NAYS: None ABSENT: None 115 December 11, 2001 M Chairman Teele: Congratulations and Merry Christmas and Happy Hanukah and Happy Kwanzaa. Mr. Bryan: Thank you very much for the initial steps, sir. Thank you. Chairman Teele: Initial steps. 43. DEFER CONSIDERATION OF DISPOSITION OF FOOD FRANCHISE "PUDGIES CHICKEN" OF STEPHANA CLARKE & COMPANY. Chairman Teele: We've got to complete this. Now, could we defer item 14? Moved to defer by Commissioner Regalado, seconded by Commissioner Sanchez. All in favor say "aye." The Board Members (Collectively): "Aye." The following motion was introduced by Board Member Regalado, who moved its adoption: SEOPW/CRA MOTION 01-146 A MOTION TO DEFER CONSIDERATION OF AGENDA ITEM 14 (DISPOSITION OF FOOD FRANCHISE "PUDGIES CHICKEN" OF STEPHANA CLARKE & COMPANY). 116 December 11, 2001 Upon being seconded by Board Member Gonzalez, the motion was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Board Member Gonzalez Board Member Regalado Board Member Sanchez Board Member Winton NAYS: None. ABSENT: None. 44. AUTHORIZE EXECUTIVE DIRECTOR TO ENTER INTO AN AGREEMENT WITH STREET LIGHT MAINTENANCE IN SEOPW. Chairman Teele: A motion to authorize the Executive Director to enter into a Street Lighting Agreement. Board Member Sanchez: Moved. Chairman Teele: Moved by Commissioner Sanchez. Board Member Gonzalez: Second. Chairman Teele: Seconded by Commissioner Gonzalez. All those in favor say "aye." 117 December 11, 2001 The Board Members (Collectively): "Aye." The following resolution was introduced by Board Member Sanchez, who moved for its adoption: SEOPW/CRA RESOLUTION NO. 01-147 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY (THE "CRA") (subject matter: authorizing the Executive Director to enter into an agreement with Street Light Maintenance in the SEOPW). (Here follows body of the resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Board Member Gonzalez, the resolution was passed and adopted by the following vote: AYES: Board Member Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez Vice Chairman Johnny L. Winton Chairman Arthur E. Teele, Jr. NAYS: None ABSENT: None 118 December 11, 2001 45. AUTHORIZE CRA EXECUTIVE DIRECTOR TO DISBURSE FUNDS REQUIRED TO ACQUIRED PROPERTIES ON LIST OF LANDS AVAILABLE FOR TAXES AND PERFORM NECESSARY TASKS TO ENSURE PROPER CONVEYANCE OF SAID PROPERTIES TO CRA. Chairman Teele: Motion, on number 17, authorizing the Executive Director to disburse funds for the properties to Miami -Dade, pursuant to the resolution -- Board Member Sanchez: You skipped 16. Chairman Teele: I know. Board Member Sanchez: You want to defer that one or -- Chairman Teele: We're going to have to just make sure we know what we're doing on 16, just for a minute. Motion by Commissioner Regalado. Is there a second? Board Member Sanchez: Second. Chairman Teele: Second by Commissioner Sanchez. All those in favor, say "aye." The Board Members (Collectively): "Aye." 119 December 11, 2001 The following resolution was introduced by Board Member Regalado, who moved for its adoption: SEOPW/CRA RESOLUTION NO. 01-148 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST REDEVELOPMENT AGENCY ("CRA") AUTHORIZING THE CRA EXECUTIVE DIRECTOR TO DISBURSE FUNDS REQUIRED TO ACQUIRE PROPERTIES ON THE LIST OF LANDS AVAILABLE FOR TAXES AS IDENTIFIED IN MIAMI-DARE COUNTY'S RESOLUTIONv NO. R-981-01 (ATTACHMENT A) PASSED ON SEPTEMBER 13TH' 2001 AND PERFORM THE NECESSARY TASKS TO ENSURE THE PROPER CONVEYANCE OF SAID PROPERTIES TO THE CRA. Upon being seconded by Board Member Sanchez, the resolution was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny Winton Board Member Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None ABSENT: None 120 December 11, 2001 46. TABLED: PROPOSED RESOLUTION AMENDING FANNIE MAE LOAN AMOUNT FROM $1,200,000 TO $1,575,000 (See #48). Chairman Teele: Now, this is a resolution on the loan amount from Fannie Mae, not the grant amount to the developer. Annette Lewis (Acting Executive Director): That is correct, sir. Chairman Teele: OK. Vice Chairman Winton: Which item are you on? Chairman Teele: We're on item 19. Board Member Gonzalez: Nineteen. Chairman Teele: I'm sorry. I apologize. Note for the record: Item 19 was tabled. 47. AUTHORIZE CRA EXECUTIVE DIRECTOR TO EXPEND $15,000 IN IN -KIND SERVICES FOR AMISTAD AMERICA PROJECT IN FURTHERANCE OF CITY'S FINANCIAL COMMITMENT OF $100,000 Chairman Teele: Item 18 is the Amistad. We have the captain of the Amistad here. We took it up. Sir, you want to just put your name on the record, please. Name and address for the record. 121 December 11, 2001 M Captain William Pinkney: It's Captain William Pinkney, and it's New Haven, Connecticut. Chairman Teele: It's a pleasure to have you here, Captain. Vice Chairman Winton: Welcome. Chairman Teele: And Commissioner Winton, who's been working -- staff s been working with you all, as well. The City Commission just approved a commitment of providing upwards of a hundred thousand dollars ($100,000), for this, through our various agencies. One of the agencies is this. And I would request, Commissioner Sanchez, if you would move, authorizing the Executive Director io expend and provide in kind up to fifteen thousand dollars ($15,000), for the Amistad. Board Member Sanchez: So moved. Vice Chairman Winton: Second. Chairman Teele: Moved by Commissioner Sanchez, seconded by Commissioner Winton. And that is the CRA (Community Redevelopment Agency) is resolving to expend and provide in -kind services up to fifteen thousand dollars ($15,000) towards the City's commitment of a hundred thousand dollars ($100,000). Is there unreadiness? All those in favor, say "aye." The Board Members (Collectively): "Aye." Chairman Teele: All those opposed? 122 December 11, 2001 The following motion was introduced by Board Member Sanchez, who moved for its adoption: OMNFCRA MOTION NO. 01-36 A MOTION AUTHORIZING THE CRA EXECUTIVE DIRECTOR TO EXPEND AN AMOUNT UP TO FIFTEEN THOUSAND DOLLARS ($15,000) IN IN -KIND SERVICES FOR THE AMISTAD AMERICA PROJECT IN FURTHERANCE OF THE CITY OF MIAMI'S FINANCIAL COMMITMENT OF ONE HUNDRED THOUSAND DOLLARS ($100,000). Upon being seconded oy Vice Chairman Winton, the motion was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny Winton Board Member Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None ABSENT: None 123 December 11, 2001 48. AMEND LOAN AMOUNT OF FANNIE MAE LOAN FROM $1,200,000 TO $1,575,000, ESTABLISH ESCROW ACCOUNTS AS REQUIRED BY TERMS OF AGREEMENT AND INSTRUCT FINANCE DEPARTMENT, CRA'S FIDUCIARY, TO WIRE RELATED CLOSING COSTS ONCE FANNIE MAE HAS PROVIDED WIRING INSTRUCTIONS (See 446). Chairman Teele: On Item 19. This is the Fannie Mae loan, and this is -- Fannie Mae has worked with us. And this is not the amount that we're going to making the grant for. The amount of the loan is from the amount that Fannie Mae is advancing us for five years, and it is in the amount of one point five million. Moved by Commissioner Regalado. Is there a second? This authorizes the CRA (Community Redevelopment Agency) to borrow one point five million dollars (1,500,000) from Fannie Mae on very favorable terms and conditions. Vice Chairman Winton: And this is the Solomon Yuken Project? Chairman Teele: This is towards the Solomon Yuken Project. Nine hundred thousand of these funds have been committed to the Solomon Yuken Project. Vice Chairman Winton: So moved. Board Member Sanchez: Second. Annett Lewis (Acting Executive Director): Sir, that was increased to one million, one seventy. The two seventy, which there's a documentation in your package, that was as a result of doubling the commercial space from seventy-five hundred to fifteen thousand square feet, as well as the facade. 124 December 11, 2001 Chairman Teele: Well, I'm going to tell you this. I'm going to ask for a public sunshine law meeting and a workshop. because we all need to know what we're doing on this project. Because, you know, somehow these big projects, the NAP (Network Area Point), this million - dollar project, all go through. But then the People's Barbeque, Jackson Soul Food, and Two Guys Barber Shop, or whatever, everybody puts those under a microscope. We need to know what we're doing here on this project, as well, Madam Director. So, I'm going to ask for -- Vice Chairman Winton: And, by the way, I asked that question when I met with the Director. Chairman Teele: -- a sunshine law meeting on this. Who is going to be the owner's rep. on this project? Ms. Lewis: H. J. Ross has been selected. Chairman Teele: OK. H. J. Ross. A motion is moved by Commissioner Regalado, seconded by Commissioner Winton, on the loan proceeds. All those in favor say "aye." The Board Members (Collectively): "Aye." Chairman Teele: All those opposed, say "No." 125 December 11, 2001 The following resolution was introduced by Board Member Regalado, who moved for its adoption: SEOPW/CRA RESOLUTION NO. 01-149 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("CRA") (subject matter: amending the loan amount of the Fannie Mae Loan from $1,200,000 to $1,575,000, establishing an Escrow Account as required by the terms of the agreement and instructing the Finance Department, CRA'S fiduciary, to wire related closing costs once Fannie Mae has provided wiring instructions). Upon being seconded by Vice Chairman Winton, the resolution was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny Winton Board Member Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None ABSENT: None 126 December 11, 2001 49. DIRECT EXECUTIVE DIRECTOR AND CRA STAFF TO COOPERATE WITH BANK OF AMERICA AND ANY OTHER LENDER OR INVESTOR HAVING DISCUSSIONS WITH SAWYER'S WALK, LTD. IN CONNECTION WITH PROVIDTNG FINANCING OR CAPITAL IN CONNECTION WITH SAWYER'S WALK PROJECT. Chairman Teele: A resolution authorizing the Executive Director to cooperate with the staff on Item 22 with the Bank of America or any lending, having discussions on Sawyer's Walk. This is upon the advice of counsel; is that correct, Mr. Bloom? William Bloom (Special Counsel, CRA): That's correct. Chairman Teele: All right. And we're not changing our position on anything. We're simply saying we're not inhibiting anything, is that right? Mr. Bloom: That's correct. Chairman Teele: All right. Is there a motion? Board Member Gonzalez: Move. Chairman Teele: Moved by Commissioner Gonzalez Vice Chairman Winton: Second. Chairman Teele: Second? Vice Chairman Winton: Second. 127 December 11, 2001 , .✓ Board Member Sanchez: Second. Chairman Teele: Second by Commissioner Winton. All those in favor say "aye." The Board Members (Collectively): "Aye." Chairman Teele: All those opposed? 128 December 11, 2001 Im The following resolution was introduced by Board Member Gonzalez, who moved for its adoption: SEOPW/CRA RESOLUTION NO. 01-150 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("CRA") DIRECTING THE EXECUTIVE DIRECTOR AND THE STAFF OF THE CRA TO COOPERATE WITH BANK OF AMERICA AND ANY OTHER LENDER OR INVESTOR HAVING DISCUSSIONS WITH SAWYER'S WALK, LTD. (THE "DEVELOPER") IN CONNECTION WITH PROVIDING FINANCING OR CAPITAL IN CONNECTION WITH THE SAWYER'S WALK PROJECT (THE "PROJECT") AND DIRECTING THE EXECUTIVE DIRECTOR AND THE CRA'S ATTORNEYS TO PROVIDE ANY AND ALL INFORMATION THAT MAY BE REASONABLY REQUESTED BY BANK OF AMERICA OR ANY OTHER LENDER OR INVESTOR IN CONNECTION WITH THE PROJECT, NOTWITHSTANDING THE LITIGATION (THE "PENDING LITIGATION") BETWEEN THE CRA, THE CITY OF MIAMI AND THE DEVELOPER IN CONNECTION WITH THE PROJECT STYLED CITY OF MIAMI, ETC, ET AL. V. SAWYER'S WALK, LTD., ETC., ET AL., CASE NO. 00-28860 (CA 09), 11TH JUDICIAL CIRCUIT COURT. 129 December 11, 2001 Upon being seconded by Vice Chairman Winton, the resolution was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny Winton Board Member Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None ABSENT: None 50. AUTHORIZE CRA EXECUTIVE DIRECTOR AND ATTORNEY TO TAKE APPROPRIATE LEGAL STEPS (INCLUDING FORECLOSURE) IN CONNECTION RECOUPING MONIES OWED BY PROPERTY OWNER OF ARENA TOWERS FOR DELINQUENT TAXES. Chairman Teele: What is the status of -- what's the Arena Towers? William Bloom (Special Counsel, CRA): The Arena Towers is the apartment complex across from the Miami Arena, where there is an issue with respect to unpaid real estate taxes that have not been paid since 1993 on that project. Pursuant to the terms of the lease, it's the obligation of the tenant to pay those taxes. We've met with the tenant. We've made demand on the tenant. The tenant is now investigating the situation. And their intention is to pay those taxes. However, they are making some noises that they feel that the CRA (Community Redevelopment Agency) may have prejudiced their position by not making an earlier demand on them to pay the taxes. 130 December 11, 2001 Board Member Sanchez: What does the lease agreement say? Who's responsible? Mr. Bloom: The lease agreement said that the landlord, at that time, which was the City of Miami, and the tenant, were to protest the taxes. The City of Miami protested the taxes for 1993 and lost. The City of Miami protested the taxes in 1994 and lost. Since 1993, as a result of those two lawsuits, the property has been on the tax rolls, and the developer has not paid the taxes. Vice Chairman Winton: Since nineteen ninety -- Mr. Bloom: Since iyy3. Now, the current owner of the property acquired title in a foreclosure action in 1996, approximately the same time that the judgments putting the property on the tax rolls were answered. It's something that, even though the CRA did not put them on notice of, they should have done their due diligence, discovered the taxes that were unpaid, and been responsible for it. Vice Chairman Winton: Absolutely. I mean, everybody and their grandmother owns real estate and knows you should pay real estate taxes. So, you know, it seems to me that the motion ought to be to take whatever steps we have to take to either bring them current or foreclose or whatever remedy we have to solve the problem and not dance around here. This is baloney. Commissioner Gonzalez: That's right. Vice Chairman Winton: Pay. They owe the taxes. Pay or we're going after you. So, I don't know what our remedies are in the -- Chairman Teele: Why do we have to go after them? Why can't the County go after them? 131 December 11, 2001 Mr. Bloom: Well, the County's remedy would be to have the property sold, and a tax deed issued. Vice Chairman Winton: No, no. We'd rather sell it. Trust me. Mr. Bloom: I think it's appropriate at this point. We had previously issued a demand letter to pay them. Now we're giving them a follow-up letter. We're giving them ten days to pay, or else we're going to pursue our rights and remedies under the lease. Chairman Teele: Motion authorizing the Executive Director and the Attorney to take whatever actions deemed appropriate to force the payment of the taxes or to secure the CRA's position. Vice Chairman Winton: So moved. Board Member Sanchez: Second. Chairman Teele: Moved and seconded. Is there objection? All those in favor say "aye." The Board Members (Collectively): "Aye." 132 December 11, 2001 The following motion was introduced by Vice Chairman Winton, who moved for its adoption: SEOPW/CRA MOTION NO. 01-151 A MOTION AUTHORIZING THE CRA EXECUTIVE DIRECTOR AND ATTORNEY TO TAKE APPROPRIATE LEGAL STEPS (INCLUDING FORECLOSURE) IN CONNECTION WITH RECOUPING MONIES OWNED BY PROPERTY OWNER OF ARENA TOWERS FOR DELINQUENT TAXES. Upon being seconded by Board Member Sanchez, the motion was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny Winton Board Member Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None ABSENT: None 133 December 11, 2001 51. AUTHORIZE EXECUTIVE DIRECTOR TO OFFER BLOCK 56 TO CAMILLUS HOUSE AS ALTERNATE SITE IN ITS PLAN FOR RELOCATION. Chairman Teele: At long last, we've got one other, the victory issue. Item 34. Board Member Sanchez: Twenty-four. Annette Lewis (Acting Executive Director): Twenty-four, sir. Chairman Teele: Twenty-four. A resolution authorizing the Executive Director --what are we doing, Madam Director? We indicated that we do want to bring this matter to closure now, the Camillus House. Ms. Lewis: Yes, sir. Chairman Teele: Are there representatives of the Camillus House here? Vice Chairman Winton: There were. Chairman Teele: All right. Just for the record. Madam Director. Ms. Lewis: On November 15`h, the CRA (Community Redevelopment Agency), along with the City Attorney and Special Counsel, were authorized to proceed with updating the agreement -- the existing agreement with Camillus House. However, in additional discussions, it was discovered that an alternate site was never discussed. So, this just allows us to offer these lots -- or these blocks, I'm sorry, or one of these blocks to meet their relocation needs. 134 December 11, 2001 Chairman Teele: Any one of the three lots? Ms. Lewis: Yes, sir. Chairman Teele: I would like to take off the lot that's adjacent to Poinciana Village. Vice Chairman Winton: Agreed. In fact, we ought to pick the lot. I mean -- Chairman Teele: Say again. Vice Chairman Winton: We ought to look at which of those lots -- maybe we give the authorization. But you ought to look at just the geography and, from a planning standpoint, and pick one. Chairman Teele: It's very clear that the lot facing 6th street, that is, the southern most lot, is far more preferable. It's closer to the existing Camillus House, and it does not flow through the heart of Overtown, et cetera. Vice Chairman Winton: And it's near the Post Office and those kinds of things. So, you're right. Chairman Teele: It's near the Post Office, et cetera. Dick Judy: That's the lot, which -- that currently the Trailways buses are parking on. Chairman Teele: Exactly. 135 December 11, 2001 L� Vice Chairman Winton: Well, so what. Unidentified Speaker: It's 55. Vice Chairman Winton: Oh, OK. Chairman Teele: Yeah, the southern -- Which number is that? Vice Chairman Winton: What number is that lot? Chairman Teele: Mr. Judy, what number is the southern most lot? Ms. Lewis: Richard? Mr. Judy: Yes, sir? Chairman Teele: What's the southern most lot? What number? Mr. Judy: Fifty-six. Chairman Teele: You're sure? Mr. Judy: Yeah. Towards the station. Chairman Teele: The one that the buses are on now? 136 December 11, 2001 Mr. Judy: That would be it. Chairman Teele: Fifty-six. Mr. Judy: Fifty-five is the one that's all grass. And above it is 46 and 45. Vice Chairman Winton: OK. So... Chairman Teele: Well, we've got 36, 46 and 56. In any event, the lot that faces 6th Street, the southern most lot of the two. Now, in addition to this, have we gone out with appraisers for various parcels of land that we're seeking, Ms. Lewis? Ms. Lewis: Yes, sir. Chairman Teele: And we don't have any conclusion on those at this time, right? Ms. Lewis: We requested two appraisals to date. We have one in our possession, and we're awaiting the other. Chairman Teele: All right. The purpose, sir, is that the CRA (Community Redevelopment Agency) had a special board meeting in November, instructing the Executive Director to treat the Camillus House relocation as the highest priority of the Agency, and this is just coming back as another option. We're looking at several other locations, as well, within the CRA, and we have a legal opinion regarding the ability of the CRA to purchase outside of the district or even to use eminent domain in some cases. By the way, Mr. Attorney, you and Attorney Judy should confer on some issues at some point. 137 December 11, 2001 William Bloom (Special Counsel, CRA): No. All I do is (inaudible) -- I know it's a Charter. All the statues belong to the people of the United States, and I just have to read it and somebody else can say no. Chairman Teele: All right. Mr. Attorney. Mr. Judy: Just to clarify one issue with respect to the lots in question. They are subject to an existing lawsuit -- Chairman Teele: We're aware of that. Mr. Judy: -- brought by the County against the City for reversion of title, and they're also involved in a lawsuit brought by the CRA against Sawyer's Walk Limited. Board Member Sanchez: Jesus Christ. Ms. Lewis: And the resolution does take that into -- it's "subject to" in the resolution. Vice Chairman Winton: So, you need a motion? Chairman Teele: A motion, yes. Vice Chairman Winton: On lot 56, did we decide? Chairman Teele: Fifty-six, or the lot that's occupied by the buses. Vice Chairman Winton: Yeah. Whichever it is. 138 December 11, 2001 Board Member Sanchez: Second. Dale Bryan: Mr. Chairman? Chairman Teele: Yes. Mr. Bryan: Again, Dale Bryan, Poinciana Village. Are these lots part of the lots that was supposed to be part of the entire completed project for the Poinciana area there? Chairman Teele: No. ioinciana is only one block. That's one project. There is one component of Poinciana that has not been completed. There's another partnership in all of that. Mr. Bryan: OK. But that's part of the entire complete geographic area that we -- Chairman Teele: It's geographically near -- it's geographically within two blocks of Poinciana, yes. Mr. Bryan: All right. But, you know, as we understood it, that was all housing or housing/commercial. And what you're saying here now, we have the possibility of Camillus House being -- Chairman Teele: Yes, sir. Mr. Bryan: -- located there? Chairman Teele: Yes, sir. 139 December 11, 2001 Mr. Bryan: This is news to us, sir. Vice Chairman Winton: Well, wherever it goes, it's going to be news to someone, I can assure MIJ Board Member Sanchez: Yeah. Chairman Teele: All right. On the motion, all those in favor -- we're not voting on anything but to -- sir, let me -- because, you know, this is this Marlins thing all over again. Government has to study certain things. We're not voting to do anything, but saying we're going to look at various locations. And what we've said, repeatedly, is that we're going to look at all of the locations that we can to provide a suitable place for the Camillus House. This is being added to the list of locations. All right? Mr. Bryan: OK. Thank you, sir. Board Member Sanchez: Call the question. Chairman Teele: All those in favor, say "aye." The Board Members (Collectively): "Aye." Chairman Teele: All those opposed? 140 December 11, 2001 M The following resolution was introduced by Vice Chairman Winton, who moved for its adoption: SEOPW/CRA RESOI TUTION NO. 01-152 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("CRA") (subject matter: authorizing the Executive Director to offer Block 56 to Camillus House as an alternate site in its plan for relocation). Upon being seconded by Board Member Sanchez, the resolution was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny Winton Board Member Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None ABSENT: None Chairman Teele: Are we doing a better job on updating the agreement? Have you all had conversations with us, and are we moving forward, sir? Peter England: I personally, have not, Mr. Chairman. But I believe that your representative and our -- your legal representative and ours have been in regular contact. 141 December 11, 2001 Chairman Teele: Very good. Well, it's our intent to try to resolve this issue within the next 60 to 90 days, at least, preliminarily, to make a decision. Mr. England: Thank you. That would make us very happy. Appreciate it, Mr. Chairman. 52. (A) AUTHORIZE CRA EXECUTIVE DIRECTOR TO EXPEND AN AMOUNT $10,000 FOR TRANSPORTATION COSTS FOR CHILDREN WHO RESIDE WITHIN CRA AREA TO ATTEND "VICTORY FOR YOUTH VICTORY DAY" EVENTS. (B) AUTHORIZE FILING OF DECLARATORY JUDGMENT ON BEHALF OF CRA ON POINCIANA VILLAGE PARTNERSHIP RELATING TO UNCOMPLETED PHASE. Chairman Teele: All right. We have one other item. What is the Victory issue -- the Victory for Youth? Annette Lewis (Executive Director): The Victory for Youth Chairman Teele: What's your recommendation? Ms. Lewis: I had originally ten thousand dollars ($10,000), sir. Board Member Sanchez: Sixteen ... Ms. Lewis: The Victory for Youth -- and there is a representative -- two represent -- three. Chairman Teele: All right. 142 December 11, 2001 Ms. Lewis: It is -- this is their second year of having this event, and Chairman Teele: Is it in the CRA (Community Redevelopment Agency) area? Ms. Lewis: No. The ten thousand was agreed to in terms of transportation for children located within the Overtown area to the event, which is -- was at the Tamiami. Chairman Teele: All right. Moved by Commissioner Sanchez. Seconded by Commissioner Regalado. And it's subject to the expenditures, all being approved by the Executive Director for the appropriateness of them, consistent with the law. All right. All those in favor say "aye." The Board Members (Collectively): "Aye." Chairman Teele: All opposed? The following motion was introduced by Board Member Sanchez, who moved its adoption: SEOPW/CRA MOTION 01-153 A MOTION AUTHORIZING THE CRA EXECUTIVE DIRECTOR TO EXPEND AN AMOUNT OF TEN THOUSAND DOLLARS ($10,000) FOR TRANSPORTATION COSTS FOR CHILDREN WHO RESIDE WITHIN THE CRA AREA TO ATTEND THE "VICTORY FOR YOUTH VICTORY DAY" EVENTS, SUBJECT TO EXPENDITURES TO BEING APPROVED BY CRA EXECUTIVE DIRECTOR. 143 December 11, 2001 Upon being seconded by Board Member Gonzalez, the motion was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny L. Winton Board Member Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None. ABSENT: None. Chairman Teele: Did you want to say something? Roland Gonzalez: Yes. I would just like to commend the CRA Board. I actually had a plaque. A lot of people don't know about Victory for Youth. And one of the reasons why I'm here is, the County actually -- and Mr. Teele and some of the Commissioners have been notified when I've been to your offices. We had over eleven thousand kids this year with Victory. I don't know the proper way of how our children of this community reach our different entities to request the funding, and what the issues are. We're working, as a new entity -- for this particular issue, we're working with Dade County School System. But I can surely tell you, we had three thousand kids that have issues in Victory for Youth on Victory Day. Some of those are families, and everything that is being passed to you right now is, actually, all the letters from the Department of Juvenile Justice, Children and Families, and all Dade County School systems. These are the kids that have the problems, and that's basically what we're doing now. 144 December 11, 2001 Chairman Teele: All right. Next year, if we're going to be -- let's start early. We don't -- we can get buses cheaper probably than you can, either Mr. Gonzalez: Well, I want to state for the record that this fund was not only for buses. Basically, these funds are actually to serve these kids with their needs and their problems. I have -- like I said, I want to state it for the record -- Chairman Teele: All right. Mr. Gonzalez: -- that these are kids that are -- mothers that have tumors in their heads or they don't have any needs, and my job, as Victory for Youth -- and I want to state it as a record -- is that we provide these kids the services that this community and our tax dollars provide. Chairman Teele: And the resolution understands that, and requires that you and the Executive Director make sure that all of the CRA dollars are within the scope of what the CRA can spend its money for. Mr. Gonzalez: Thank you. Chairman Winton: And it seems to me that, particularly, because a goodly number of these dollars -- well, frankly, I guess I don't understand. It seems to me that one of the things that we ought to have is some sort of a report card at the end of the day that identifies the number -- because it is within the CRA boundaries, we ought to know how many children are served in whatever mechanism. You're talking about this service, which I don't get yet, because I thought it was all busing. But we ought to have some sort of report card at the end of the day about how many kids within the CRA district have been served. 145 December 11, 2001 Mr. Gonzalez: Sixty-five percent are coming of Overtown, and the rest of the whole community, just for your records. And it's all in black and white. Chairman Winton: Sixty-five percent of your eleven thousand came from Overtown? Mr. Gonzalez: No. I said sixty-five percent of the kids that have needs are coming from the Overtown. Board Member Winton: Well, what's -- sixty-five percent of what, then? You said -- what was the Mr. Gonzalez: I said their needs. Their needs, meaning that each kids that -- each of these Commissioners have been told -- they have their own writing and their own needs that they have. Whether they can graduate from fifth grade Board Member Winton: How many kids is that? Mr. Gonzalez: Sixty-five percent of three thousand, sir. Board Member Winton: Oh, sixty-five percent of three thousand. Mr. Gonzalez: That's correct. Board Member Winton: All right. Mr. Gonzalez: That rode to victories. Those are the issues that I have to handle now. 146 December 11, 2001 Chairman Teele: Let me just tell you one thing -- because I don't want to get this record too far a field, and we've got a lot of other people waiting. Mr. Gonzalez: Right. Chairman Teele: You need to sit down with the Executive Director and work -- the CRA is not about Overtown, OK. The CRA is about one eighth of Overtown and, candidly, it stops at 14th Street. Most of the folk that live in Overtown live north of 14th Street. So, we need to be careful that we're using the redevelopment dollars for redevelopment, for the people that live in the area. But, you know, we're not going to split hairs. You've been approved and you're going to have to work that out with them, and we're happy to be of service to you. But I don't want anyone assuming that Overtown is CRA, because we're not. We're a very, very small part of Overtown and, unfortunately, the part where very few people live. It stops at 95. Mr. Gonzalez: Thank you Chairman Teele: Two quick things. The City Attorney -- the Attorney has asked that we pass a resolution authorizing the filing of the — William Bloom (Special Counsel, CRA): Declaratory judgment. Chairman Teele: -- declaratory judgment on — Mr. Bloom: Poinciana Village Limited Partnership. Chairman Teele: On Poinciana Village Partnership relating to the uncompleted phase; is that correct? 147 December 11, 2001 Mr. Bloom: That's correct. Board Member Sanchez: So moved. Chairman Teele: Moved by... Board Member Gonzalez: Second. Chairman Teele: Moved by Commissioner Sanchez. Seconded by Commissioner Gonzalez. Is there any need for ciarir"ication, Mr. Attorney? We've got this. We need to make sure we get the resolution done. All those in favor say "aye." The Board Members (Collectively): "Aye." Chairman Teele: All opposed? The following resolution was introduced by Board Member Sanchez, who moved its adoption: SEOPW/CRA RESOLUTION 01-154 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("CRA") (subject matter: on behalf of the CRA, authorizing the filing of a declaratory judgment on Poinciana Village Partnership relating to the uncompleted phase). 148 December 11, 2001 (Here follows body of the resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Board Member Gonzdlez, the resolution was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny L. Winton Board Member Angel Gonzdlez Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None ABSENT: None 53. COMMENTS BY EXECUTIVE DIRECTOR ON ART BASIL RECEPTION TO BE HELD AT ICE PALACE, 10:30 P.M., ON DECEMBER 13, 2001. Chairman Teele: Motion to adjourn. Before we do, is Mr. Sanchez here? Is it Sanchez, George Sanchez? Board Member Sanchez: No, he's not here. Chairman Teele: Just so that everybody is aware, the -- Board Member Sanchez: But that's during Commission meeting. 149 December 11, 2001 11�.,00 Chairman Teele: Huh? Board Member Sanchez: T_t's during the Commission meeting. Chairman Teele: It's during the Commission meeting? No. This party is going to -- this reception is going to be -- it starts at 10 o'clock, is that right? Ten thirty. Annette Lewis (Acting Executive Director): That is correct, on the 13th. Chairman Teele: On the 13th, 10:30 p.m. And this is going to be -- the place to be the Ice Palace. At 10:30 it siaris. Board Member Sanchez: It's all right. I'll be there. Chairman Teele: It's one of those kinds of parties. Board Member Sanchez: I'll be there. Chairman Teele: And the City staff, we need to get the word out. But this is a part of the Art Basel, and it's the improvements or the art statement underneath 95 -- underneath 395. Motion to adjourn -- Board Member Sanchez: So moved. Chairman Teele: -- by Commissioner Sanchez. It's seconded. All in favor say "aye." The Board Members (Collectively): "Aye." 150 December 11, 2001 The following motion was introduced by Board Member Sanchez, who moved for its adoption: SEOPW/CRA MOTION 01-155 A MOTION TO ADJOURN TODAY'S COMMUNITY REDEVELOPMENT AGENCY (CRA) MEETING. Upon being seconded by Board Member Regalado, the motion was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny Winton Board Member Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None ABSENT: None Chairman Teele: Mr. Chairman of the Commission, I apologize for taking so long. Board Member Regalado: No problem. 151 December 11, 2001 u THERE BEING NO FURTHER BUSINESS TO COME BEFORE THE COMMUNITY REDEVELOPMENT AGENCY FOR THE SOUTHEAST OVERTOWN/PARK WEST AND OMNI DISTRICT, THE MEETING WAS ADJOURNED AT 5:23 P.M. ATTEST: WALTER J. FOEMAN, City Clerk SYLVIA SCHEIDER, Assistant City Clerk (S E A L) ARTHUR E. TEELE, JR., Chairman 152 December 11, 2001