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HomeMy WebLinkAboutSEOPW OMNI CRA 2002-10-29 Minutesw�. CITY OF MIAMI CRA MEETING MINUTES OF MEETING HELD ON OCTOBER 29, 2002 PREPARED BY THE OFFICE OF THE CITY CLERK/CITY HALL Priscilla A. Thompson/City Clerk 79 MINUTES OF THE REGULAR BOARD OF DIRECTORS MEETING OF THE COMMUNITY REDEVELOPMENT AGENCY FOR SOUTHEAST OVERTOWN/PARK WEST AND OMNI DISTRICTS On the 29th day of October 2002, 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 the Manuel Artime Center, 900 Southwest First Street, Miami, Florida. The meeting was called to order at 2:15 p.m. by Chairman Arthur E. Teele, Jr., with the following Board Members found to be present: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny L. Winton Board Member Tomas Regalado Board Member Joe Sanchez ABSENT: Board Member Angel Gonzalez ALSO PRESENT: Carlos A. Gimenez, City Manager, City of Miami Frank Rollason, Assistant City Manager, City of Miami Alejandro Vilarello, City Attorney, City of Miami William R. Bloom, Special Counsel, CRA, Holland & Knight Priscilla A. Thompson, City Clerk, City of Miami Sylvia Scheider, Assistant City Clerk, City of Miami Annette Lewis, Executive Director, CRA, City of Miami Anna Rojas, Chief Deputy Clerk, City of Miami October 29, 2002 29. ACCEPT REPORT FROM CRA EXECUTIVE DIRECTOR REGARDING CRA DIRECTIVES. ACCEPT REPORT IDENTIFYING CRA APPROPRIATIONS SINCE FISCAL YEAR 2000. RECEIVE MONTHLY FINANCIAL STATEMENTS AS OF MAY 31, 2002, JUKE 20, 2002 AND DULY 31, 2002. ACCEPT UPDATED STATUS REPORT OF CRA OWNED PROPERTIES DATED AUGUST 12, 2002. Chairman Teele: Gonzalez indicated he would not arrive until 2:30. And we told him that we would go forward, with the understanding that we wouldn't start sharp at two. The time is now approximately 2:15, so we've split the difference. Mr. Attorney, Madam Director, thank you very much. The first item is the consent agenda, Items 1 through 5. Discussion on any of the items relating to 1 through 5. Item Number 1. Vice Chairman Winton: Mr. Chairman. Chairman Teele: Commissioner Winton. Vice Chairman Winton: Not on Item Number 1. On number 2, do you want to -- do you want me just to hit on the two that I had some comments on? Chairman Teele: Yes, if you don't mind. Vice Chairman Winton: Yeah. On both 2 and 4 what I asked the Executive Director to do was to change the format of both of those reports so that it ended up with information that was -- while those reports may be meaningful to the Executive Director, they didn't have meaning to me as a board member. So I don't know if she's given you a copy of the proposed format changes that add additional information. And with the additional information, I think those reports can become useful to -- certainly to me as a board member. And I don't know if you've seen those changes in format or not. And if you haven't -- Annette, do you -- Annette Lewis (Executive Director of CRA): I'm here, sir. Vice Chairman Winton: Where's Annette? Oh, I'm sorry. Do you have the hand -scribbled notes that I made? Ms. Lewis: Yes, I do, sir. Vice Chairman Winton: OK. So, Commissioner Teele, it may not be important for you to even look at that right now. If you want to look at it, we have it. If you don't, that's fine. We can 2 October 29, 2002 move on. The other issue relative to Item Number 2 is that I just want to make sure that we're not -- with Item Number 2, that we're really not approving anything. This is a report that the Executive Director has put together, and it mixes capital with operations, and I can't tell if -- and it isn't done project by project. It seems to be in some sort of sequential order that's all right. I mean, I'm not opposed to the sequential order. I just want to make it clear that we're not -- that when we look at this report and it comes before us, and even with the modified format that I've asked for, this isn't us approving anything. This is simply an informational report in front of us, but it approves absolutely nothing. And so, I just want to be real clear about that. And that concludes my comments on CA (Consent Agenda) items. Board Member Regalado: Mr. Chairman. Chairman Teele: On Items 1 through 5. Yes. Board Member Regalado: When we get done with that, I have a motion, as part of a direction I received from the CRA (Community Redevelopment Board) Board. Chairman Teele: All right. On Items 1 through 5. Items 1 through 5 don't approve anything. Vice Chairman Winton: No, I'm only talking about item -- when I said, we're not approving anything -- Chairman Teele: You were talking about number 2. Vice Chairman Winton: I'm talking about -- yes, that's correct, I'm talking about Number 2. I wasn't talking about all the items. I'm simply talk -- when I made those comments, it's only about Item Number 2. I just wanted to be clear that we're looking at an informational report, but we're not approving anything. Chairman Teele: Right. Item Number 4 was withdrawn, as per your request for reformatting. So, what we have before us is just the information receiving Items 1, 2, 3, and 5? Vice Chairman Winton: That's correct. Chairman Teele: All right. Is there a motion to receive those? Board Member Regalado: Move it. Vice Chairman Winton: So moved. Second. Chairman Teele: Is there objection? All those in favor say "aye." The Board Members (Collectively): Aye. 3 October 29, 2002 The following motion was introduced by Board Member Regalado, who moved for its adoption: MOTION NO. CRA/SEOPW 02-157 MOTION NO. CRA/OMNI 02-81 A MOTION ACCEPTING A REPORT FROM THE CRA EXECUTIVE DIRECTOR REGARDING CRA DIRECTIVES. (Here follows body of motion, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Vice Chairman Winton, the motion was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny L. Winton Board Member Joe Sanchez Board Member Tomas Regalado NAYS: None. ABSENT: Board Member Angel Gonzalez The following motion was introduced by Board Member Regalado, who moved for its adoption: MOTION NO. CRA/SEOPW 02-158 MOTION NO. CRA/OMNI 02-82 A MOTION ACCEPTING A REPORT IDENTIFYING CRA APPROPRIATIONS SINCE FISCAL YEAR 2000. (Here follows body of motion, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Vice Chairman Winton, the motion was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny L. Winton Board Member Joe Sanchez Board Member Tomas Regalado NAYS: None. ABSENT: Board Member Angel Gonzalez 4 October 29, 2002 ON M The following resolution was introduced by Board Member Regalado, who moved for its adoption: RESOLUTION NO. CRA/SEOPW 02-159 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST (SEOPW) COMMUNITY REDEVELOPMENT AGENCY (CRA) RECEIVING THE MONTHLY FINANCIAL STATEMENTS AS OF MAY 31, 2002, JUNE 20, 2002 AN JULY 31, 2002, AS PRESENTED BY THE CHIEF FINANCIAL OFFICER OF THE CRA. AND RESOLUTION NO. CRA/OMNI 02-83 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OMNI COMMUNITY REDEVELOPMENT AGENCY (CRA) RECEIVING THE MONTHLY FINANCIAL STATEMENTS AS OF MAY 31, 2002, JUNE 20, 2002 AN JULY 31, 2002, AS PRESENTED BY THE CHIEF FINANCIAL OFFICER OF THE CRA. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Vice Chairman Winton, the resolution was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny L. Winton Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None ABSENT: Board Member Angel Gonzalez The following motion was introduced by Board Member Regalado, who moved for its adoption: MOTION NO. CRA/SEOPW02-160 MOTION NO. CRA/OMNI 02-84 A MOTION ACCEPTING UPDATED STATUS REPORT OF THE CRA OWNED PROPERTIES DATED AUGUST 12, 2002. (Here follows body of motion, omitted here and on file in the Office of the City Clerk.) 5 October 29, 2002 Upon being seconded by Vice Chairman Winton, the motion was passed and adopted by the following vote: AYES: Chairman Arthur E. Teele, Jr. Vice Chairman Johnny L. Winton Board Member Joe Sanchez Board Member Tomas Regalado NAYS: None. ABSENT: Board Member Angel Gonzalez 6 October 29, 2002 30. AUTHORIZE ACTING CRA EXECUTIVE DIRECTOR TO EXPEND $50,000 TO CONDUCT EXECUTIVE SEARCH FOR CRA EXECUTIVE DIRECTOR. Chairman Teele: OK. Now, Commissioner Regalado, you had a motion you wanted to make? Board Member Regalado: Yes, sir. I -- remember I was directed to start a process for the Executive Director search, and I -- we have been communicating with the City Manager, Human Resources, and the Executive Director of the CRA (Community Redevelopment Agency). And I have a motion allocating an amount, not to exceed twenty-five thousand, to conduct an executive search for the position of CRA Executive Director, and further directing the City Manager to initiate the search, based on the process as described -- Chairman Teele: Wait, wait, wait. Board Member Regalado: -- in his memorandum, dated October 17`h, 2002. Chairman Teele: For this motion, you can make the first motion. In the next meeting, you can make a motion directing the City Manager, but you can't direct the City Manager from -- in a CRA motion, respectfully. Board Member Sanchez: So, in other words, all we're doing is we're approving -- Chairman Teele: Making the money available. Board Member Regalado: Making the money available. Board Member Sanchez: Making the money available for the headhunter search? Chairman Teele: Yeah. Board Member Regalado: Sure. Board Member Sanchez: Second. Chairman Teele: And in the next meeting, we can -- Board Member Sanchez: Second. Board Member Regalado: Sure. No problem. Vice Chairman Winton: I would like to -- I'm not sure that's enough money. So -- Chairman Teele: Well, why don't we say not to exceed fifty thousand dollars ($50,000), and -- Vice Chairman Winton: Yeah. 7 October 29, 2002 Chairman Teele: -- that way -- Vice Chairman Winton: I was going to say, I don't want to telegraph -- well, it's not even telegraphing a number. I mean -- because all these agencies charge roughly the same kind of thing. So, the management or whomever will conduct this negotiation, with a search firm, will negotiate the best deal for us. And so, frankly, I would ration it up to seventy-five thousand, to make sure we have an appropriate range to work with, and if it costs thirty-five, Hallelujah. If it costs seventy, then we don't have to come -- we don't have to wait another month just to start the process. Board Member Regalado: Johnny, I don't have a problem. I just thought on that figure, because for the City Manager search, we had said not to exceed fifty thousand and I figured that an agency of the City would not be comparable to the City itself. So that's why I brought -- and besides, let me tell you. The Manager has done a good job in describing -- in giving a lot of information. They don't have to do their homework. They will just give them the process, and it pinpoints in the memos -- different memos from the Manager, it pinpoints -- it narrows the search. So that's why -- I've read all the memos, and that's why I brought the number of twenty- five thousand. Vice Chairman Winton: Well, I just don't want you to have not enough money, and, therefore, you have to wait until there's another CRA board meeting. There's a huge -- the CRA has a very, very big agenda and Annette can't do all this stuff. We all know that. Board Member Regalado: No problem, at all. It's as you wish. I mean, I don't -- Vice Chairman Winton: I'd rather give you more money -- authorize up to -- you don't have to spend it, but authorize up to the seventy-five thousand dollar ($75,000) level and don't spend what you don't have to spend. Board Member Regalado: In fact, I have copies of the memos from the Manager. Chairman Teele: What's the dollar amount you're going to accept, 50 or 75? Board Member Regalado: Fifty. Fifty. Chairman Teele: Is there a second? Commissioner Sanchez: Second. Chairman Teele: Is there objection? All those in favor, signify by the sign of "aye." The Board Members (Collectively): Aye. The following resolution was introduced by Board Member Regalado, who moved for its adoption: 8 October 29, 2002 RESOLUTION NO. CRA/SEOPW 02-161 RESOLUTION NO. CRA/OMNI 02-85 A RESOLUTION OF THE BOARD OF DIRECTORS OF COMMUNITY REDEVELOPMENT AGENCY (CRA) (subject matter: AUTHORIZING THE ACTING CRA EXECUTIVE DIRECTOR TO EXPEND AN AMOUNT NOT TO EXCEED $50,000 TO CONDUCT AN EXECUTIVE SEARCH FOR A CPA EXECUTIVE DIRECTOR. (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 L. Winton Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None ABSENT: Board Member Angel Gonzalez Chairman Teele: On the point, we have authorized fifty thousand for a Manager, Johnny, and it would just seem to me that fifty would be sufficient. There's two things -- two or three things that should be noted in this context. Number one, most of the redevelopment authorities are looking now to Miami, given what has happened in the Southeast Overtown/Park West District, going from a hundred and forty-eight thousand to well over two point five million dollars ($2,500,000). I think, you know, one of the things is you're going to wind up looking out of state largely, because this CRA is about as big and marginally as successful as any at this point in time. Secondly, Commissioner Regalado -- Board Member Regalado: Yes, sir. Chairman Teele: -- this is very important, and I had hoped to deal with it while Ms. Lewis was out. When we talked Ms. Lewis a year ago into taking the job, we indicated to her that we would do, within 30 to 60 days, a salary range adjustment. I'm going to ask that you take that under advisement, as a part of your process in meeting with the City Manager and the various departments -- I mean, the Human Resources Department, and come in with a recommendation regarding the current Acting Executive Director, because the salary structure that we set up is nowhere near fair, we know it's not fair, given the fact that she's been doing two jobs, based upon what the management audit is showing, et cetera. We need to take a look at that. So, I'm going to ask Commissioner Regalado if you would, as a part of this whole review, look at that issue, as well. Board Member Regalado: OK. 9 October 29, 2002 31. RECEIVE AUDITED SEPTEMBER 30, 2001 FINANCIAL STATEMENTS AND MANAGEMENT LETTER. Chairman Teele: Item number 6. Commissioner Winton, do you have enough information that you've requested on this? Vice Chairman Winton: Well, yes. I have -- you know, I've carefully reviewed the letters. I'm sure, you know, we've all read the management letter. There are many of the same things there two years in a row. And the answer is, Commissioner Regalado's task here. You know, until we get that task completed, we're really going to be seriously hamstrung, and we cannot address the lion's share of those issues without some additional help. Now, one of the things that I haven't spent enough time thinking about, that I'll just kind of think a little bit out loud here, is whether or not we should consider, particularly on the accounting side and some of the crucial issues that were outlined in the management letter on the accounting side, we might want to think about or have some discussions somewhat about whether or not we ought to pay for some additional services from the outside, on a temporary basis, until we get our house in order. And, frankly, I haven't had enough time to -- you know, I don't know if it is that I didn't have enough time, or just flat didn't think about it but whatever the case may be -- Chairman Teele: Well, I can tell you right now that I'm always in favor of paying for outside services in lieu of hiring staff, and if there has been a mistake made -- if a mistake is made, I'm always going to opt in favor of keeping the staff levels as small as possible, and hiring outside people. Because, you know, the CRA (Community Redevelopment Agency) has moved like an accordion. Five years ago, you know, the CRA didn't have three projects that it was working on, and the CRA budget was a hundred -- TIF (Tax Increment Fund) was a hundred and forty-eight thousand dollars ($148,000). Today, it's a whole different set of facts and circumstances. And so, I think, you know, Johnny, what might be very helpful is, in the next meeting, why don't you come back with a recommendation and meet with the City management, based upon the -- Vice Chairman Winton: I will. Chairman Teele: -- the contracts that we have outstanding, the various audit firms that we have under contract. They -- you know, with the City, they could be piggybacked to do some accounting services, and we retain our own separate independent auditor. Vice Chairman Winton: That's right. I agree. So I'll look at that and bring back a recommendation at the next meeting. Chairman Teele: And work with Ms. Lewis on that. Vice Chairman Winton: Right. Board Member Sanchez: Mr. Chairman. Chairman Teele: Commissioner Sanchez. 10 October 29, 2002 Board Member Sanchez: The management letter clearly has made recommendations on just about every aspect, both on the Financial Department budget compliance, on payroll, project cost accounting, operational review, authorization of check signing. I mean, these recommendations - Chairman Teele: Check signing? The CRA doesn't write any checks, do we? Annette Lewis (Executive Director of CRA): Sir, that -- Board Member Sanchez: Well, they have recommendation here. Ms. Lewis: We outsource our payroll and Julie Weatherholtz, her signature was still on the check stock that ADP (Automatic Data Processing, Inc.) -- Chairman Teele: Yeah, yeah, but see, again -- because this is -- the one thing that I said when I took over, I will not be responsible for the finances. You know, the finances of this organization are done by the City of Miami. Let me ask a question again. Do we do any check signing? Ms. Lewis: No, sir. Chairman Teele: OK. So, any references to check signing, et cetera, are City of Miami issues, as our fiduciary? And I don't mean -- you know, because -- but go ahead. I wanted to clarify that point. Pardon. Board Member Sanchez: Point well taken. Just the management letter clearly stated -- and they did their job -- and he clearly identified an observation, that we note that one of the authorized signatures on the agency's payroll check is no longer employed. But I just went down through the recommendations that are made by the management letter, and what we -- our goal is to make sure that next year -- Chairman Teele: Yeah. Board Member Sanchez: -- we comply with all of these, because if you looked at the management letters that are previous, we went year after year after year basically -- you know, whether we didn't comply with it or it was -- it was just an ongoing practice, and that's -- it's concerning to me and it's alarming to me to make sure that next year, once we bring in an Executive Director and we have -- we do the proper things to make sure that these recommendations are complied with. Chairman Teele: I agree with you one hundred percent, but I think it's important to know the context of this. Because of the timeline on the audits, you've got two audits, literally, within 60 days of each other. Ms. Lewis: Correct, sir. Chairman Teele: So, it's not like going -- I mean, you're right. 11 October 29, 2002 Board Member Sanchez: Commissioner, and both audits were basically the same. Chairman Teele: Were basically the same, over the same basic time periods -- timelines. OK. And I think that's a very good point. But I think, again, those matters that relate to finance are a part of the management audit, but just so that the board knows, those matters are contracted out to the City of Miami. Vice Chairman Winton: Well, they may be but we're still responsible. So, we've got to -- Chairman Teele: We're responsible in another hat, but we're not responsible -- Vice Chairman Winton: We're responsible in this hat that we have on right now. As the CRA Board, we have the ultimate responsibility to see to it that whomever we hire for contract services, whether it's the City of Miami or KPMG (Klynveld, Peat, Marwick, Goerdeler), does the work that we need done, in a fashion that it should be done in, in a professional manner, and on time and all that jazz. And so, we still -- it's -- Board Member Sanchez: (INAUDIBLE) Vice Chairman Winton: We have to shoulder the full blame and, at the end of the day, the public's going to look to us anyhow. So, even if there were a legitimate way out of that box, I'm not like -- you know, that's our responsibility and we're going to pay attention to that. And besides we're good enough to do it. So -- Chairman Teele: Exactly. Vice Chairman Winton: So end of story. Chairman Teele: Further discussions on the management audit. Commissioner Winton, will you look at the issue of contracting out some of the services that have been identified, and give us your views? Vice Chairman Winton: I think what I was -- what I would like to -- and I'm going to go through the management letter, and look at the issues relative to the management letter and I'm going to go through it with a couple of people that are, you know, that understand all the accounting stuff, and I'm going to bring back recommendations. I'm going to bring back recommendations to hire someone, an entity, or two different entities or whatever the case may be, so that we can get at the heart of the issues in the management letter. That's going to be the principal, primary, round one focus and then we'll move to other things that we may need to immediately thereafter. Chairman Teele: And, Commissioner Winton, I would strongly prefer that those entities be an entity and not individuals. Vice Chairman Winton: No -- I agree with you, by the way. 12 October 29, 2002 Chairman Teele: More adept, more ability to get it done -- Vice Chairman Winton: Agree a hundred percent. Chairman Teele: You know, less of the -- all right. So can we just -- can we have a motion to accept or receive the -- Vice Chairman Winton: So moved. Board Member Sanchez: Management letter? Chairman Teele: Yes. Board Member Sanchez: So moved. Second. Vice Chairman Winton: And the audits. Board Member Sanchez: Second. Chairman Teele: And the audit. Moved by Commissioner Winton, second by Commissioner Sanchez. Is there a disagreement? All those in favor say "aye." The Board Members (Collectively): Aye. The following resolution was introduced by Vice Chairman Winton, who moved for its adoption: RESOLUTION NO. CRA/SEOPW 02-162 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST (SEOPW) COMMUNITY REDEVELOPMENT AGENCY (CRA) RECEIVING THE AUDITED SEPTEMBER 30, 2001 FINANCIAL STATEMENTS AND MANAGEMENT LETTER AS PREPARED BY KPMG. b RESOLUTION NO. CRA/OMNI 02-86 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OMNI COMMUNITY REDEVELOPMENT AGENCY (CRA) RECEIVING THE AUDITED SEPTEMBER 30, 2001 FINANCIAL STATEMENTS AND MANAGEMENT LETTER AS PREPARED BY KPMG. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) 13 October 29, 2002 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 L. Winton Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None ABSENT: Board Member Angel Gonzalez 14 October 29, 2002 32. AUTHORIZE CRA TO ENTER INTO AGREEMENT WITH OFFSTREET PARKING (MIAMI PARKING AUTHORITY), $12,500, FOR PLANNING AND DESIGN OF PARKING LINER BUILDING TO SUPPORT 24 HOUR ENTERTAINMENT DISTRICT IN PARKWEST REDEVELOPMENT AREA. Chairman Teele: OK. Items 7 and 8 are particularly, I think, important to the future of the CRA (Community Redevelopment Agency), and I think it's really important in terms of what it is this Board has expressed, at least, my understanding of our working relationship, not only with the private sector but with Off-street Parking. And I note Mr. Noriega was here. Is he here still? OK, Art. I just wanted to make sure that you were here. Item number 7, would you explain it, Ms. Lewis? Annette Lewis (Executive Director of CRA): Item number 7 is the CRA partnering with Off - Street Parking, and a private developer, in commissioning a study for the planning and design of a parking minor building to support the 24-hour district. The initial project site was the site that we had gotten -- the CRA Board had given authority to purchase the -- I think it was 901 Northeast First for two point nine five million. The private -- a private developer in this case has purchased it, and wants to work with the CRA in terms of the concept that was presented by Dover Kohl at that meeting for the site. In addition to that, we've asked to expand the study, not only for that site, but surrounding areas, to get a more comprehensive look at what the stakeholders are requesting in the Park West area, which is not only parking, security, and other amenities, in order to, you know, have other developers come in and those who are there, to stay. So, in this case, the CRA will be -- well, we're requesting that we authorize twelve thousand five hundred. Mr. Noriega's group is going to put twelve thousand five hundred, and then the other half is being -- Chairman Teele: Twenty-five thousand is coming from a private developer? Ms. Lewis: Correct, sir. Vice Chairman Winton: Oh, OK. So we represent one-fourth of the -- Ms. Lewis: Correct. Chairman Teele: This is a true public/private partnership -- Vice Chairman Winton: Yeah. Chairman Teele: -- and the important thing -- Vice Chairman Winton: I like that. Chairman Teele: -- is this is in the heart of where we're getting our money. I mean, our TIF (Tax Increment Fund) is coming from -- largely from this area. I don't agree necessarily with the characterization that's contained in the resolution, which is the -- to support the 24-hour district, because this is really going beyond the 24-hour -- it's within the 24-hour district, but this 15 October 29, 2002 building is not going to be about a club. This building is really going to be a typical mixed use building, residential lofts, with a parking component that supports the -- Ms. Lewis: Retail (INAUDIBLE) Chairman Teele: -- 24-hour but it's also retail, et cetera. And the developer -- is it clearly disclosed who the developer is and all that? Because I think it's really important that there be transparency. As I indicated, the developer is the largest developer of these types on South Beach and that is a joint venture between the Robbins -- Ms. Lewis: Scott Robbins. Chairman Teele: -- Company and Tony Goldman -- Ms. Lewis: Correct, sir. Chairman Teele: -- who is Mr. South Beach, the Chairman of the Tourist Development. And let me just say this, Commissioners, Board Members. They overbid -- they out bidded us for the land. Our price was two point -- Ms. Lewis: Two point nine five. Chairman Teele: Two point nine. Their price -- they pay two point seven for seventy percent of it. Ms. Lewis: Correct, sir. Chairman Teele: If you take their price -- Mr. Attorney, and I need you to do a legal memorandum -- they paid the equivalent of about three point three million dollars ($3,300,000) - Ms. Lewis: Correct, sir. Chairman Teele: -- for the parcel. They immediately came back and said, "Look, we did this on Miami Beach very successfully with the public sector, with Miami Beach." They keep making reference to some building, apparently, that's got ivy now coming all down the parking lot. And they said this is an ideal public/private partnership kind of thing. It will -- it is about residential. It is not about the club district, per se. The building is designed to be a mixed -use residential/commercial, with a first floor retail and a parking facility. What they're looking for Off -Street Parking and us to do is to literally own the parking component of it, if you will. We've basically said, we've got some real concerns about some of the environmental issues on the street level. And so, this study is to try to figure out what the building could be, what it will be. We felt it important to let Off -Street Parking take the lead, and empower them to sort of weigh in on the parking side of this. And as opposed to arguing about this, we appear to be all on the same side. 16 October 29, 2002 Vice Chairman Winton: This is fabulous. Do we have a motion yet? Chairman Teele: Not yet. Vice Chairman Winton: So moved. This is on 7, right? Chairman Teele: Yes. Vice Chairman Winton: So moved. Board Member Sanchez: Second. Chairman Teele: Is there objection? Art, would you just state, for the record, that you all are going to move forward and you're going to keep our board informed because, basically, what we're doing is, we're going to make the grant to Off -Street Parking. They're going to then come back and keep us informed. Again, the idea is no need for us to go out and hire a staff person now to do parking. Let's work with Off -Street Parking, et cetera. Vice Chairman Winton: Yeah. Art Noriega: Art Noriega, Executive Director, Miami Parking Authority. Yeah, we are in full agreement. Our intent is to move forward, study the feasibility of this project on site, work with the developer and report back to the Board our findings. Vice Chairman Winton: This is great. Chairman Teele: No further discussions. Thank you very much, Mr. Noreiga. All those in favor say "aye." The Board Members (Collectively): Aye. Chairman Teele: Those opposed? The following resolution was introduced by Vice Chairman Winton, who moved for its adoption: RESOLUTION NO. CRA/SEOPW 02-163 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST (SEOPW) COMMUNITY REDEVELOPMENT AGENCY (CRA) AUTHORIZING THE CRA TO ENTER INTO AN AGREEMENT WITH OFFSTREET PARKING (MIAMI PARKING AUTHORITY) IN THE AMOUNT OF $12,500 FOR THE PLANNING AND DESIGN OF A PARKING LINER BUILDING TO SUPPORT THE 24 HOUR ENTERTAINMENT DISTRICT IN THE PARKWEST REDEVELOPMENT AREA. 17 October 29, 2002 (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 L. Winton Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None ABSENT: Board Member Angel Gonzalez 18 October 29, 2002 33. AUTHORIZE CRA TO ENTER INTO AGREEMENT WITH OFF-STREET PARKING (MIAMI PARKING AUTHORITY), $79,076, FOR PLANNING AND DESIGN OF PARKING LOTS UNDERNEATH I-395 TO SUPPORT 24 HOUR ENTERTAINMENT DISTRICT IN PARKWEST REDEVELOPMENT AREA. Chairman Teele: And this is the long-standing agreement -- a long-standing disagreement that is an agreement underneath 395, Johnny, the compromise. And this is a grant for Off -Street Parking, Number 8. Vice Chairman Winton: To do the planning for those parking lots? Chairman Teele: Yes. Vice Chairman Winton: So moved. Board Member Regalado: Second. Chairman Teele: Is there objection? All those in favor say "aye." The Board Members (Collectively): Aye. The following resolution was introduced by Vice Chairman Winton, who moved for its adoption: RESOLUTION NO. CRA/SEOPW 02-164 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST (SEOPW) COMMUNITY REDEVELOPMENT AGENCY (CRA) AUTHORIZING THE CRA TO ENTER INTO AN AGREEMENT WITH OFF-STREET PARKING (MIAMI PARKING AUTHORITY) IN THE AMOUNT OF $79,076 FOR THE PLANNING AND DESIGN OF PARKING LOTS UNDERNEATH I-395 TO SUPPORT THE 24 HOUR ENTERTAINMENT DISTRICT IN THE PARKWEST REDEVELOPMENT AREA. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) 19 October 29, 2002 r 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 L. Winton Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None ABSENT: Board Member Angel Gonzalez Chairman Teele: And, again, the biggest problem that we've got in the City, the biggest problem we've got in the redevelopment area is parking. Parking is really the critical issue here. And Off -Street Parking we've really got to bring those parking online, as you know, or we're going to have some serious issues. 20 October 29, 2002 34. AUTHORIZE ACTING CRA EXECUTIVE DIRECTOR AND CRA COUNSEL TO NEGOTIATE AGREEMENT WITH TECHNOLOGY CENTER OF AMERICAS (TECOTA) FOR LEASE OF UP TO 300 PARKING SPACES IN PARKING LOT 58 LOCATED ON NORTHWEST 1ST COURT BETWEEN NORTHWEST 8TH AND NORTHWEST 9TH STREETS FOR TENANTS OF TECOTA BUILDING. Chairman Teele: And speaking of that, do we have the representative of Terremark that wants to come in and lease parking to meet zoning requirements? Are they present? Lucia Dougherty: I'm not sure this is on. Yes. Yes, sir. Mr. Chairman, members of the Board, Lucia Dougherty, with offices at 1221 Brickell Avenue. I'm here on Item Number 8, in which I represent the owners and the operators of TECOTA (Technology Center of America), which is -- Chairman Teele: You're on Number 9. Go ahead. Ms. Dougherty: Excuse me. Number 9, which is the owners and operators of the Technology Center of America. With me is -- joining me today is Bill Biondi. We would like to -- this is a 750,000 square foot building, of which about 150,000 square feet or 120,000 square feet we would like to lease to companies. We are actually talking with two major companies, who would like to relocate into this building on the fifth floor. In order to do that -- in order to entice them to lease in this building, we actually need to provide the parking, which currently the building doesn't have. So we are seeking to lease Lot 58, or actually have an option to lease Lot 58, which is approximately 3 -- 450 feet away from yours. We would run a shuttle. We'd only run it during the days, between 7 and 6:30 pm, and on Saturday, between 8 and 1 pm. And we would like this lease to run concurrently with our lease that we would enter into with the company that would locate on the fifth floor of this building. So we would ask that you authorize your Executive Director to work with us to enter into a potential option to lease up to 300 parking spaces, and bring that back to you for future consideration. Vice Chairman Winton: Mr. Chairman, you're the one brought me into the deal on this NAP (Network Area Point). We were all very, very supportive of the NAP, still supportive of the NAP. Bill Biondi is a good friend, but we simply cannot lease parking spaces to the NAP at significant below -market rates. Because what's happening here, if we do that, we're then giving that building an unfair competitive advantage of any other office building that may be able to provide office space to that same group of tenants, and that is fundamentally wrong for government to do. This building was designed, and the whole pitch was about it not having parking, and we're not going to put tenants in there that need parking, which was the whole pitch why they didn't need parking. Now, that industry went in the tank. There were all kinds of problems. And so, now there's a need to try to fix the problem, which I understand completely. But they have to fix the problem competitively. They cannot fix the problem by coming to government and getting a real sweetheart deal for leasing spaces. Ms. Dougherty: We concur. We're not asking for anything other than market rate. What we've proposed is the same as a commercial lot, immediately adjacent to it. But, again, we're subject to negotiations with you on market rates. 21 October 29, 2002 Vice Chairman Winton: So, I think what we need to do is -- what's your timing? William Bloom (CRA Special Counsel): Excuse me, Commissioner. With respect to the lots that the request concerns, they involve the property, which is subject to the St. John's Lyric Village litigation. They're also the lot that's subject to the Sawyer's Walk litigation. So, we wouldn't be able to do anything with respect to those lots, until that litigation has been resolved. Chairman Teele: Yeah, but -- I'm not -- we could give them a lease, but it would be subject to termination based upon that litigation. Mr. Bloom: That's true. Chairman Teele: Yeah. Mr. Bloom: So, Chairman Teele: This is the same lot that we leased to Ter -remark to build the building. Actually, we leased it to -- Mr. Bloom: To (INAUDIBLE), which had a relatively short term remaining. Chairman Teele: No, no, the lots that -- the first lot that we leased them was the lot... Mr. Bloom: We didn't exchange so that NAP could be constructed, so that the -- what was J. J. Kelly moved from site of the NAP to one of these lots owned by the CRA, so that construction could be -- could proceed. That lease had a relatively short term remaining, and to the extent the Board wanted to do a new lease on a short term -- Chairman Teele: But, Counsel, what I was saying is that the lease -- it's not that we can't enter into a lease. The lease would be subject to termination, based upon an outcome of those litigations. Mr. Bloom: Yes, Commissioner, you could do that. Chairman Teele: I think the best thing to do is to authorize the Special Counsel, and the Executive Director to sit down and negotiate with them. I think the advice that you're giving, Commissioner Winton, is certainly policy direction to them, that is, don't come to us looking to, in effect, upset the marketplace. Although, I would -- and I agree with you. Although, I would quickly add that redevelopment authorities generally do upset the marketplace in their redevelopment areas, in terms of subsidies or whatever, but I think there's no reason to do that in this case, at all. And I believe that the advice that you're giving the Executive Director, and the attorney, and anyone else and any other advice would be welcomed, but I would see no reason why we could not authorize them to negotiate, and to come back and see what it is. Vice Chairman Winton: In -- 22 October 29, 2002 Chairman Teele: I will say this. We stand to lose -- Board Member Regalado: Mr. Chairman. Chairman Teele: -- a lot of money, a lot of our TIF, if the TECOTA (Technology Center of the Americas) totally fails. I mean, if that is -- you know, we've got some interest in keeping our momentum going forward, but that's no reason to give away the parking, to agree with your point. Mr. Bloom: Commissioner, I would be happy to help with the negotiations. Unfortunately, I have a conflict, which is why I was not involved -- Chairman Teele: City Attorney. I meant the City Attorney. Mr. Bloom: Right. Chairman Teele: Yeah. Vice Chairman Winton: And when they're dealing with those negotiations, I might add that had there been a contemplation that there would be office space available -- and I'm going to speak to the point that Lucia made that -- well, there's a parking lot, you know, right across the street, where they only -- well, there's no demand, so that's the reason it's two dollars ($2) a foot. I mean, two dollars ($2) a day. If this building would have been constructed with the intent of having office space, there would have been a requirement to build a parking garage. And then you have to pay off the debt service on the parking garage, and give your equity a return on capital, and then you've got to calculate your parking rate per day based on that formula, and I'm not necessarily suggesting that we have to get that far, but we've got to get a lot further than the parking lot that's vacant across the street, because there's no demand. Thank you. Board Member Regalado: Mr. Chairman. Chairman Teele: Commissioner Regalado. Board Member Regalado: I -- you know, I yield always to Johnny when we talk about these issues of real estate and, you know, development and the work that you and Commissioner Teele are doing in the downtown CRA, Park West area. It's great. But I was listening to all this, and I was remembering that we all fought for the NAP; that we created a task force for the NAP; that we had a party for the NAP, so I figured that this is not another -- just another building. It should be sort of a signature place for the development, especially of the internet and services. I think that we need to figure out a way to make this a successful venture, because the story -- and this is the way I see things -- the headlines is going to be: "NAP Fails. City of Miami could not do it." So, I'm just -- you know, I agree and -- Vice Chairman Winton: Commissioner Regalado, the NAP isn't going to fail. The developer may fail. The NAP isn't going to fail. There's -- 23 October 29, 2002 Board Member Regalado: Well, but the story, Johnny, is going to be "The NAP failed." Vice Chairman Winton: The NAP isn't -- listen to me. The NAP isn't going to fail. The developer may fail, and another developer may come in and own the facility, but the NAP isn't going to fail. The infrastructure and the tenants that are in there, that aren't already bankrupt, are the backbone of the NAP and it's already in place. Now, I don't have any desire to see the developer fail, but the point I'm trying to make is that what they're looking for isn't about the NAP. What they're looking for is about generating an income stream from office tenants that could go in any office building in downtown Miami. Now, they may be connected to and be a part of some of the companies that have technical equipment, but they still don't have to be in that building, which was the pitch that came to us to begin with. Bill Biondi: Mr. Chairman, may I respond to Commissioner Winton's comments? Chairman Teele: Your name and address for the record. Mr. Biondi: My name is Bill Biondi. I reside at 2000 South Bayshore Drive, Coconut Grove, 33133. Chairman Teele: Bill, let me tell you how I see this. You're about to get a right to negotiate, and a lot of us are saying our own views, but if you -- Mr. Biondi: I will -- Chairman Teele: Say whatever you'd like to say. Mr. Biondi: OK. Board Member Regalado: Or just tell him, "Quit while you're ahead." Mr. Biondi: I want to agree -- Chairman Teele: Because you're going to get what you asked for. Mr. Biondi: Thank you, Mr. Chairman. Chairman Teele: That is, the right to negotiate. Mr. Biondi: Yeah, and that's all we're asking for, and I appreciate it and I hope you'll vote that way. But I want to agree with what Commissioner Winton is saying, in that three years ago, we were looking at "X" and now we're looking at "Y." And we're not here -- we're not trying to ask for the City to give us anything that they wouldn't give to anybody else. But we do have -- we, collectively, the City of Miami, and all of us here -- have a tremendous amount at stake relative to the success of TECOTA and the NAP. And Commissioner Winton is correct. The NAP is an entity owned by Terremark, which is a tenant in the building on the second floor of TECOTA. TECOTA is a real estate development owned by three equity partners, one of which 24 October 29, 2002 is Calor Development, which is the Miami Heat, as you know. But what we're trying to do is to make TECOTA and the NAP a success, because it does have a tremendous -- right now it's under a tremendous spotlight in the City of Miami, and in that particular area in the City of Miami, and we're trying to make this thing work, and we're just looking for some help and guidance from you all and we appreciate everything that you can do for us. Thank you. Chairman Teele: Well, I still come back and say one thing. The NAP -- the TECOTA building is the only major construction in our redevelopment area. We've got a lot of reuse going on, and that reuse is very important. It is -- but the NAP was built when nobody else would build anything in that area. It's within one block of the Camillus House and, you know, nobody's going to build a hotel where the NAP is. Nobody's going to do this. Nobody's going to do that. And I, for one, want to do everything that we can in the context, not of the City of Miami, but the Redevelopment Authority, to ensure the economic stability of our tax increment district. And the NAP is very much -- it's a hundred million dollar ($100,000,000) part of that district. So, I see it a little bit differently from my colleague, Commissioner Winton. I don't have as much difficulty in providing some support, but I do feel very strongly that what we cannot afford to do is damage and destroy an industry that is very important to the City of Miami, a new industry, and that's parking, and parking is a new industry in this City. I mean, it wasn't five years ago that you could park all day downtown for five dollars ($5), or whatever the dollars were and today it's a lot more than that. So -- and we're getting a surcharge from that. So, we don't -- I don't want to see us come in and, through using government subsidies, turn upside down an industry. And I'm in a total agreement with Commissioner Winton on that point. Further discussions? Further directions to the City Attorney and the Executive Director? If not, the question is called. All those in favor, signify by the sign of "aye." The Board Members (Collectively): Aye. Vice Chairman Winton: What are we voting on? Chairman Teele: The motion is to authorize the City Attorney and the Executive Director -- Vice Chairman Winton: OK. Chairman Teele: --to negotiate. Vice Chairman Winton: Yep. Chairman Teele: All opposed? 25 October 29, 2002 The following motion was introduced by Chairman Teele, who moved for its adoption: MOTION NO. CRA/SEOPW 02-165 A MOTION AUTHORIZING THE ACTING CRA EXECUTIVE DIRECTOR AND CRA COUNSEL TO NEGOTIATE AN AGREEMENT WITH TECHNOLOGY CENTER OF THE AMERICAS (TECOTA) FOR A LEASE OF UP TO 300 PARKING SPACES IN PARKING LOT 58 LOCATED ON NORTHWEST 1ST COURT BETWEEN NORTHWEST 8TH AND NORTHWEST 91H STREETS FOR TENANTS OF THE TECOTA BUILDING SUBJECT TO TERMINATION BASED UPON OUTCOME OF PENDING LITIGATION IN THE ST. JOHN'S/LYRIC VILLAGE AND SAWYER'S WALK CASES. Upon being seconded by Vice Chairman Winton, 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 Joe Sanchez Board Member Tomas Regalado NAYS: None. ABSENT: None. Chairman Teele: All right. Ms. Dougherty: Thank you very much. Chairman Teele: Thank you. 26 October 29, 2002 35. AUTHORIZE CRA TO NEGOTIATE AND ENTER INTO INTERLOCAL AGREEMENT WITH CITY WITH RESPECT TO CONSTRUCTION OF DOMINO PARK WITH AMENITIES AT OVERTOWN'S ATHALIE RANGE #1 MINI -PARK. Chairman Teele: Two quick things -- and, again, I guess the CRA (Community Redevelopment Agency), we don't hire a lot of press people. We should, perhaps, but there's never really been an announcement. The staff is to be commended for going to the County Park Bond Committee and competitively winning -- how much was it, three hundred thousand dollars ($300,000)? Annette Lewis (Executive Director of CRA): That is correct, sir. Chairman Teele: But we never issued a press release. We never -- did y'all ever send out a memo to the -- Ms. Lewis: Well, we actually have a pocket item coming up that addresses the Domino Park, and Ms. Chelsa Arscott has been instrumental in terms of putting the grant proposal together, and doing the presentation in front of the Safe Neighborhood Parks Bond Fund, along with the Parks Director and staff. She's -- Chairman Teele: Well, the good news that's being -- the Board is being advised of is that the Safe Neighborhood Bond Committee awarded the CRA and the City three hundred thousand dollars ($300,000), subject to matching funds, I would suppose. Vice Chairman Winton: Can you repeat that again so I'm focused better? I don't understand what happened. Sounds like something really good. Chairman Teele: Something good happened, and Ms. Arscott probably should come up. The CRA staff, planning staff, Ms. Arscott, working directly with the Parks Director, who is extremely helpful, made a grant application for -- under this discretionary pot of money, in which all the other cities and everybody is applying for money -- some of the bond proceeds. And we won three hundred thousand dollars ($300,000) to redo the area under 395, known as the Athalie Range Mini Park. And that is going to be a Domino Park, consistent with resolutions that have come out of the CRA and the City for two years. Particularly, the previous Commissioner Gort, I think, passed a resolution directing that we find a suitable site for dominoes -- hosting dominoes in the Overtown area. Ms. Arscott, you might just want to say your name and clarify anything that I've misstated. Chelsa Arscott: Yes. Chelsa Arscott, Policy and Programming Administrator at the CRA Office. You're correct, sir. On July 29'h, 2002, the CRA Board approved motion M-02-141, which authorized the CRA to apply for grant funds from the Safe Neighborhood Park Bonds Initiative. On August 22°a, the Miami City Commission adopted resolution R-02-932, which appropriated the matching funds from the Homeland Defense Neighborhood Improvement Bond Issue. On September 19' , the CRA and City of Miami Parks Department went forth in front of the Miami -Dade County Safe Neighborhood Office and was awarded three hundred thousand dollars ($300,000) for the construction of a park at Athalie Range #1 Mini Park in Overtown. In front of you, we had submitted a copy of the brochure for the Athalie Range Park. It has four 27 October 29, 2002 components that we're hoping to address, and we are -- we scheduled a Public Design Workshop for Saturday, December 71h. We're looking to have the committee to provide input on the design of the holistic park, and since the City of Miami Parks -- I'm sorry, Planning Department is engaging a firm to do a Comprehensive Parks Plan, we're hoping to submit the design concepts from the Committee for consideration of the entire renovation of Athalie Range Park. Chairman Teele: Do you need any action by this Board? Ms. Arscott: Yes, sir. We have a pocket item there. It's a resolution authorizing the CRA to enter into an interlocal agreement with the Parks Department for construction of a Domino Park at Athalie Range Park. Ms. Lewis: Mr. Chairman, this agreement is much like the Margaret Pace Park because the grant is actually awarded to the City of Miami Parks Department, and we will be the sub or second party to that agreement, sir. So that's -- Chairman Teele: OK. But let the resolution -- instead of saying, "interlocal with the Parks Department," say with the "City of Miami," as opposed to the Parks Department. Because, you know, again, we get into who does this thing and it's four or five different entities, especially with this new capital process. Board Member Sanchez: Just for point of clarification, are the funds coming from the Safe Neighborhood Park Bond or is it coming from the bonds? Ms. Arscott: Yes. Actually, it's coming from the Safe Neighborhood Parks discretionary interest. Board Member Sanchez: Of each district? Chairman Teele: Huh? Ms. Arscott: No, no. Chairman Teele: No, no, no. This has nothing to do with City of Miami. This is County. Vice Chairman Winton: Here's what the problem is. Y'all need to -- in our packet, there should be something that has the outline, and maybe it's here. Maybe I'm missing it. But we ought to have the dollar amounts, you know. Board Member Sanchez: Because it -- Vice Chairman Winton: Who, where -- you know, where what money came from so that we can see very clearly where dollars come from, when dollars are coming from us and where dollars are going. Ms. Arscott: There are two funding sources: One is the Miami -Dade County -- 28 October 29, 2002 01 Chairman Teele: Is there a document? That's his issue. Is there a document? Ms. Arscott: Yes, sir. One document is a resolution, which was adopted by the City Commission -- Vice Chairman Winton: Where is that? Ms. Arscott: -- and that document -- Chairman Teele: Is there a document here with us? Ms. Lewis: No. Ms. Arscott: No, sir. Chairman Teele: OK. Ms. Arscott: We have reference to the resolution number, sir, in the resolution in front of you. Chairman Teele: All right. Well, let's do this. We've got a very busy agenda. We can -- if you'd like, we can let you all put a document together, so that the Board is fully briefed on what they're voting on. Because you -- we have two or three different bond issues and -- Ms. Arscott: Two. Chairman Teele: -- and what -- Board Member Sanchez: Mr. Chairman, if I may. That is my point here. All I want to know is where the money's coming from. Is it the Safe Neighborhood Park bond? Is it the bond -- the issuance of bonds that the money's coming from? That's where I want to know, where the money -- because you said matching funds. Chairman Teele: The good news is -- the answer is, this is County money that was competitively made by the City and the CRA for three hundred thousand dollars ($300,000). The matching dollars were previously approved to come from the City district -- you have the resolution? Ms. Arscott: Yes, sir. Chairman Teele: Where is the money coming from? Ms. Arscott: It's coming from the Homeland Defense -- Board Member Sanchez: Right. 29 October 29, 2002 Ms. Arscott: -- Neighborhood Improvement Bond Issue, and that was approved by the Miami City Commission on August -- Chairman Teele: No, no, no. What pot of money from that? That resolution -- that has got -- Ms. Arscott: Money was allocated -- Board Member Sanchez: Park enhancement. Your district park enhancement. Chairman Teele: Is it -- you've got to understand -- is this District 5 park money? Is this -- Board Member Sanchez: Yes, it is. Chairman Teele: -- quality of life? It's coming from District 5, right? Board Member Sanchez: Yes, sir. Ms. Arscott: Yes, sir. Under the Athalie Range Park/Gibson Park Annex Project. Board Member Sanchez: It's very simple. We could -- you know, we could confuse all this. You got money from the County, three hundred thousand dollars ($300,000). It's fine. You went in front of the Bond Board and you got three hundred matching dollars -- three hundred thousand dollars ($300,000) matching bond from the park enhancement from District 5. Very simple. We don't need to complicate this. It's great. Six hundred thousand dollars ($600,000), get the park done as quickly as you can. It's great. Chairman Teele: And the important thing is that the CRA is -- just like at Margaret Pace Park, we are the facilitator of it -- the public liaison. The contracts will probably be awarded through the CRA. It may be awarded through the capital program, and that's the kind of thing, I think, that the interlocal agreement will work out. What they need is the authority to negotiate the interlocal agreement. Would you move that, the authority to negotiate the interlocal agreement? Board Member Sanchez: I don't have a problem with that. You'll probably get the park done faster. Chairman Teele: So moved by Commissioner Sanchez. Board Member Gonzalez: Second. Chairman Teele: Is there discussion? Yes, ma'am. Welcome. Rosa Green: I was just wondering, could I speak on that -- Chairman Teele: Yes, ma'am. Ms. Green: -- six hundred thousand dollars ($600,000)? 30 October 29, 2002 LMM Chairman Teele: Just give your name and everything for the -- address for the record. Ms. Green: Rosa Green, 415 Northwest 6"' Street. I'm really concerned about the money that's being allocated for parks, with all the other needs that we have there in Overtown. I know that maybe you can only spend the money for parks, but the people that she's talking about, that would probably be under that bridge, none of them are here. So I'm wondering who suggested that we put a domino park over there by Jefferson Reaves Health Center, as a resident of Overtown ? What we really -- I mean, Commissioners, what we really need is somebody to see all that filth and combed gardens over there in Overtown. I live there, and it's a disgrace for you guys to sit down here and appear oblivious to what's really happening in the Overtown area. Now, Commissioner Sanchez, I know you're looking surprised but, perhaps, you haven't rode down 51h Avenue. From 5th Avenue beginning at 6th Street, take a ride down there, you know. I saw the street sweeper on my way here on 7th Avenue. He was sweeping the streets. We're in dire need of those kind of services in Overtown. Vice Chairman Winton: So, you don't want a park, is that what you're telling me? Ms. Green: No. We have enough parks. We -- Vice Chairman Winton: Yeah. Well, you can't use this money for anything -- Ms. Green: -- have enough parks, and you can upgrade those that we have there. Chairman Teele: Ms. Green? Chairman Teele: Yes, sir. Chairman Teele: The park that we have there now -- and that was one of the points that I'm going to make to the staff. You all need to go out there seven days a week, before the Charrette, and invite the people that are there everyday playing checkers and dominos. Right now there is a park. There is no bathroom there. There is no running water there. We're not talking about building a new park. We're talking about re -- upgrading the existing park that is there. You know where people sit out right under -- Ms. Green: I see them sitting there, and I prefer them to sit there hidden from the streets, because the worst sitting out there on 3rd Avenue, and they're still some sitting there, which we never had many years ago, before any of you guys got into office. Chairman Teele: Yes, ma'am. Ms. Green: Third Avenue and 2nd Avenue was our mecca for Overtown. But now, it seems to be a big park and they're sitting over the street. I understand that these people do need some recreation. I understand that they need -- but we -- at that time, we had it. What's happening? Twenty-five Years CDBG (Community Development Block Grant) Funds, CDD -- CDCs (Community Development Corporations) and nothing gets built. Nothing happens in Overtown. 31 October 29, 2002 Now, I'm riding down 81h Street in Little Havana, and even in Wynwood, there's a lot of construction. And I'm telling you, I never knew how this system worked, until I retired and I start coming down and sitting in these meetings, and see people stand here like this is a welfare line, year after year, asking for money, and never doing anything tangible that we can see with the money. So now, you -- we're going to hold you all accountable to really come out and see what's going on with the money. How come Overtown so close to downtown -- it is downtown. They call it Overtown, I guess, to differentiate from the black neighborhood -- looks like it looks. Because I'm telling you, this is awful. And then somebody get up here talking about a Domino Park, maybe they should go over there on 81h Street and play with the Hispanic. We talking about diversity. I mean, we don't need that. And then now it's going to be second class, right by the Health Center. And all the people coming there, they're going to be afraid when they look at the those homeless people under there. Because I see guys lying there sleeping, and everything goes on there and nobody seems to worry about it. I mean, I wouldn't even want to elaborate on what they do under there, as I pass. And I pass there because I live over there, and that's where I want to live, and I'm proud to be living in Overtown. So, I would hope that you, the knowledgeable people, the people who have the City in your hands, would think, when you start giving out the taxpayer's money, do they really need that worse than we need a clean environment for our kids and grandkids and great grandkids to grow up in? I thank you. Chairman Teele: Thank you, Ms. Green. Yes, ma'am. Mary Hill: May I speak on this subject? Chairman Teele: Yes, ma'am. Ms. Hill: I'm Mary Hill, and applaud Ms. Rose. Thank you for speaking up and speaking the truth. As founder of the Economic Opportunity Acts and Amendments in the White House, policies, laws and services that coming through these states, revenue sharing, Title XX grants, and I'm in agreement that something is wrong. There is billions and billions of dollars that have been coming through these states. I'll be out in the community and I'm going to be here always. My work is in the community, where the poor people are, and I don't see the results of those monies because they are earmarked monies coming from my efforts, coming through these states to help the poor people, regardless of race, creed or color. And I'm speaking from public policy, public law 95-568, 92-4 -- 242, and I could go right on. There are 67 laws. I have been -- I'm a product from Overtown. This inspired me to speak today. Chairman Teele: All right. Ms. Hill: I was reared up Overtown. Chairman Teele: All right. Ms. Hill: And I want you all to know that something is wrong, and I definitely know it's wrong. It's the policies and the laws have to be implemented, according to statutory laws. And Mary Hill, founder, going to have to recognized down here, that those monies for it's earmarked, 32 October 29, 2002 revenue sharing, Title XX concept came from my effort in those polices. Those monies that's coming through here -- Chairman Teele: Thank you, Ms. Hill. Ms. Hill: -- we need to -- I'm sorry. Chairman Teele: Thank you very much. Ms. Hill: OK. Thank you for letting -- allowing me to speak -- encourage me to speak, because I am a product from Overtown and I am a federal official, nationally, and it's not reaching the poor from my intent. Thank you. Chairman Teele: Thank you, Ms. Hill. Board Member Sanchez: Mr. Chairman, just to clarify. I -- you know, I'm a hundred percent in support of the park. Ms. Green, I have the utmost respect for you. I have driven through the area. Let me just say that anything's better than what's there right now. And you do have people that are sitting just on milk crates and entertaining themselves through checkers or whatever sport they're playing. You know, I'm in support of the park. My thing is, this is an issue that may have just been not properly with documentation up here, and it's confusing with all the -- you know, we didn't have funds at one time. Now we have so much funds that it's -- it could be very confusing with all the bond issues, Safe Neighborhood Park Bond, and the Bond Board and all this stuff. All that I want to make sure is, that the proper documentations of where the money is coming from are provided to us, so we can make an intelligent decision on it. That's the only question that I had on it. But I do -- have driven through the area. If there's any Commissioner up here that has questioned many issues of the CRA, it has been me. But I have been driven by the area and I've seen the improvements. You know, I criticized some of the parking lots that were going up, and I realize now that, in my district, we have a dire need for parking. And it's a problem today and it's going to be a problem in the future. So, you know, I'm just telling you that the only question that I have is to make sure that the fundings are -- properly identify where the funds are coming from. Chairman Teele: Item -- on the motion, all those in favor say "aye." The Board Members (Collectively): Aye. Chairman Teele: All opposed? 33 October 29, 2002 M The following resolution was introduced by Board Member Sanchez, who moved for its adoption: RESOLUTION NO. CRA/SEOPW 02-166 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST (SEOPW) COMMUNITY REDEVELOPMENT AGENCY (CRA) AUTHORIZING THE CRA TO NEGOTIATE AND ENTER INTO AN INTERLOCAL AGREEMENT WITH THE CITY OF MIAMI WITH RESPECT TO CONSTRUCTION OF A DOMINO PARK WITH AMENITIES AT OVERTOWN'S ATHALIE RANGE #1 MINI -PARK. (Here follows body of 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: 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. 34 October 29, 2002 M .r, 36. AUTHORIZE CRA ACTING EXECUTIVE DIRECTOR TO WORK JOINTLY WITH BLACK ARCHIVES FOUNDATION AND MIAMI TIMES ON PROMOTION AND DISPLAY OF OVERTOWN ART MURAL PROJECT. Chairman Teele: On item number 10, the Muriel. I would ask that you have it -- work jointly with the Black Archives Foundation and the Miami Times, remembering the Miami Times was founded right there in Overtown, and they've got one of the -- a unique history. Is there a motion on Number 10? Board Member Gonzalez: Move Number 10. Board Member Sanchez: Second. Chairman Teele: Is there objection? All those in favor say "aye." The Board Members (Collectively): Aye. The following motion was introduced by Board Member Gonzalez, who moved for its adoption: MOTION NO. CRA/SEOPW 02-167 A MOTION AUTHORIZING THE CRA ACTING EXECUTIVE DIRECTOR TO WORK JOINTLY WITH THE BLACK ARCHIVES FOUNDATION AND THE MIAMI TIMES ON THE PROMOTION AND DISPLAY OF THE OVERTOWN ART MURAL PROJECT. 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 L. Winton Board Member Angel Gonzalez Board Member Joe Sanchez Board Member Tomas Regalado NAYS: None. ABSENT: None. 35 October 29, 2002 37. WITH RESPECT TO ARENA TOWERS PROJECT, AUTHORIZE CRA TO (i) WAIVE REQUIREMENT THAT WATCH OMEGA HOLDINGS L.P., PROVIDE AUDITED FINANCIAL STATEMENTS FOR 1996 THROUGH 2O01 AND IN LIEU THEREOF ACCEPT FINANCIAL STATEMENTS THAT HAVE BEEN REVIEWED BY KPMG FOR 1997 THROUGH 2001; (ii) WAIVE REQUIREMENT THAT TENANT PROVIDE FINANCIAL STATEMENT FOR 1996 SINCE BOOKS AND RECORDS WITH RESPECT TO ARENA TOWERS PROJECT ARE NOT AVAILABLE TO TENANT FOR THAT YEAR; (iii) CONFIRM THAT PROFESSIONAL MANAGEMENT, INC., IS "ACCEPTABLE OPERATOR" AS DEFINED IN LEASE; (iv) AGREE THAT TENANT SHALL BE ENTITLED TO ALL RIGHTS OF AN "INSTITUTIONAL INVESTOR" WITH RESPECT TO PURCHASE MONEY MORTGAGE; AND (v) AUTHORIZE ACTING EXECUTIVE DIRECTOR TO EXECUTE ESTOPPEL LETTER IN CONNECTION WITH LEASE. Chairman Teele: One final thing. Mr. Attorney, we've got a situation now where one of our wayward projects that was done some 20 years ago is now ready to change hands and they need a lot of support. William Bloom (Special Counsel): That's correct. Not a lot of support, but there is a few technical issues that have to be clarified with respect to the lease. They're asking for some minor waivers and they're asking for acknowledgment of certain status. I believe some representatives from the Watch Omega Holdings are here today, together with the proposed purchaser, Biscayne Bayview Tower Associates and their property manager, which is Professional Management, Inc. The waivers that are required deal with the requirement under the lease that audited financial statements be provided for them, the years 1996 through 2001. The developer does not have financial statements available for 1996, because they acquired title to a foreclosure action. They're proposing, in lieu of that, they provide us in-house company prepared financial statements, certified by their Chief Financial Officer, together with financial statements being reviewed by KPMG (Klynveld, Peat, Marwick, Goerdeler), a Certified Public Accountant. They have deposited, in escrow, 150 percent of the rent, plus interest, due under the terms of the lease, to secure the payment of the rent, which has remained unpaid. Chairman Teele: Are they trying to close it before December 301h, is that their idea? Mr. Bloom: I believe their intention is to close within the next 30 days. Vice Chairman Winton: Yeah, I think it's less than that. Chairman Teele: Well, again, if you're asking us to take a final action today -- are you asking us to take a final action? Mr. Bloom: Yes, Commissioner. Chairman Teele: I would be prepared to support, you know -- when's the next Commission meeting? Priscilla A. Thompson (City Clerk): November 191h, sir. 36 October 29, 2002 Chairman Teele: I would be prepared to just call a special meeting just for that item. It should be all technical, non -controversial. But, again, I think the Board ought to at least know the history of the project. You know, we have no documentation really before us, in the context of what were their month -- their annual payments. They've not made any payments. Mr. Bloom: They have not made any payments. However, the rent under the lease is one -tenth of one percent of their revenue. So the average annual rent, I believe, is in the neighborhood of five or six thousand dollars ($6,000) a year. Chairman Teele: But they've made no payments? Mr. Bloom: They've made no payments. They did -- Chairman Teele: Is GE (General Electric) Capital the owner of this, or who's the owner of this property now? Mr. Bloom: Watch Omega Limited is the owner. It's a partnership, of which General Electric Capital Corporation has an interest. I think representatives are here today to -- Chairman Teele: This is the low rise directly across from the Miami Arena? Mr. Bloom: That's correct. Chairman Teele: And, again, just so that -- this predates me, of course. I wasn't -- but just so that the Board is aware, this was built on CRA (Community Redevelopment Agency) property, and it was very much like the previous deal, where the owner was only obliged to make payments under certain conditions and -- Mr. Bloom: Right. Chairman Teele: -- if he made a profit and... Mr. Bloom: This was a lease done in 1988. It was entered into between the original developer, Park West Limited and the City of Miami, and subsequently assigned by the City to the CRA. Watch Omega, again, acquired title through a foreclosure action in 1996. We discovered last year that the real estate taxes had not been paid, with respect to the property. And after our demand, Watch Omega paid approximately one point two million dollars ($1,200,000) in real estate taxes and interest. Chairman Teele: Well, let's thank them for that. Mr. Bloom: Again, Commissioners, I think they're really asking for some minor technical issues. In reality, they could go through and assign the lease without our consent. They've asked for an estoppel letter, which they're entitled to under the terms of the lease. And under the terms of the lease, if they enter into a management agreement, in a form approved by the CRA -- 37 October 29, 2002 and they've agreed to enter into a management agreement utilizing a form previously approved by the CRA with a qualified operator -- and it's our understanding that Professional Management, Inc. qualifies as a qualified operator -- there's no approvals required by the CRA Board, but it's an automatic approval. So, really, what they're asking for is to give them assistance with respect to the issue relating to the financial statements, which were not audited, and also to be given the rights, since they intend to take back purchase money mortgage so that they would be acknowledged as an institutional investor, as defined in the lease, so that if there is ultimately a foreclosure, they would have certain rights or secure -- Chairman Teele: What is the motion of the action you're asking us to take? Mr. Bloom: What we're asking you to take is to authorize, number one, the waiving of the requirement of audited financial statements for the years 1996 through 2001; to waive the requirement that any financial statement be provided for the year 1996, and in lieu of providing a financial statement for that year, which would be the basis for calculating the rent, that the tenant pay the average rent, which is calculated to be due and payable for the years 1997 through 2001 as the rent for 19961; that instead of providing audited financial statements for 1996 through 2001, we accept financial statements certified as being true and correct by the Chief Financial Officer of the tenant, and have those financial statements reviewed by a Certified Public Accountant. And those would be the basis of calculating the rent plus the interest on the rent, calculated at prime plus two percent, from the date it was due until paid. This would also require that Watch Omega, the tenant, put 150 percent of that money in escrow. And it's my understanding, it's been wired to my trust account to be applied immediately to pay the past due rent, with 50 percent being held in escrow, until the financial statements are delivered so they can be reviewed. The motion also asks that the Board recognize that Professional Management, Inc. qualifies as a qualified operator under the terms of the lease, and representatives from Professional Management are here today to speak about their experience, if called upon. And, lastly, it's to recognize the tenant as an institutional investor, in terms of the definitions under the lease, so that they can take back a purchase money mortgage and being given the same rights they originally had when they owned the mortgage on the property. Chairman Teele: I think what you're asking for is absolutely reasonable, but I do think what you're asking us to do is to substitute the judgment of a professional staff. I mean, professional staff has got to make the determination that they are qualified... Mr. Bloom: Commissioner, with respect to the qualifications, the lease specified the requirements. They had to manage at least 500 apartment units. There couldn't be a housing violation against their company that had been determined adversely. So they provided an affidavit for Mr. Mitchell supporting that they do qualify. And, again, Mr. Mitchell, is here if you'd like -- want to speak to his company. The reason this is before the Board is because of the minor variations. If not, staff could have approved these items without Board action. Vice Chairman Winton: What's the downside, if we don't approve this today? Stephen Katz: It just delays our transaction beyond -- 38 October 29, 2002 EM Chairman Teele: Just give us your name and address for the record. Mr. Katz: I'm sorry. Sorry. My name is Stephen Katz. I'm with Greenberg Traurig in Ft. Lauderdale, 515 East Las Olas Boulevard, Ft. Lauderdale. The transaction has been ongoing for some months -- Vice Chairman Winton: Could you speak...? Mr. Katz: Apologize. The transaction has been ongoing for some months, and we have a closing date scheduled for a week from Friday. It's become important that a transition occur, because we've been in limbo and, you know, management has been suffering. It's been difficult to manage the property, while in the middle of a sale transaction. And if the sale transaction is delayed further, it could have, you know, detrimental effects to the property and to occupancy. And it would be beneficial, we think, to the property -- you know, in general if the transaction -- the transition were to occur in the very near future. Vice Chairman Winton: And who's the buyer? Michael Friedman: The buyer is going to a Florida limited liability company that we're forming for the purpose of acquiring title. But it's affiliated with the ownership of the building immediately to the north of the subject building, which we call Park Place by the Bay, for which we negotiated a purchase of the ground lease last year. Chairman Teele: Please state your name and address for the record. Mr. Friedman: I'm sorry. I'm Michael Friedman. I'm with Park Place Associates, and my address is 930 Washington Avenue, Miami Beach. We've been in contract with Watch Omega Holdings, I believe, since April or May. And, at some point, if we're unable to go forward with the transaction, I believe it might just collapse. Vice Chairman Winton: Commissioner Teele, the advantage, from my viewpoint -- and I'm sitting here making sure that -- or trying to think about all the issues relative to that resolution, and trying to figure out where our downside may be in each of those points. But the upside is clear to me, and that is that the buyer has done a heck of a job of improving the adjacent property, that helps the neighborhood tremendously. And I can't -- and I don't think we can say the same thing for the seller. So there is an upside for us in the neighborhood in getting this transaction done, I think, certainly with this group. So, I guess the issue that we have to figure out quickly is whether or not there's any downside to any of the points that have been presented. I was struggling to find any. I don't see any. These aren't -- Chairman Teele: I can't find the downside either. Vice Chairman Winton: Me neither. So I guess that said, I might forsake a discussion. Move the -- is this a resolution? Mr. Bloom: Resolution. It's in the -- 39 October 29, 2002 0 Vice Chairman Winton: Move the resolution prepared by our CRA Attorney. That was prepared by you, right? Mr. Bloom: Yes, it was. Board Member Sanchez: Second. Chairman Teele: Further discussion? All those in favor, signify by the sign of "aye." The Board Members (Collectively): Aye. Chairman Teele: All opposed? 40 October 29, 2002 a The following resolution was introduced by Vice Chairman Winton, who moved for its adoption: RESOLUTION NO. CRA/SEOPW 02-168 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("THE CRA") WITH RESPECT TO THE SOUTHEAST OVERTOWN/PARK WEST LEASE AND DEVELOPMENT AGREEMENT DATED JUNE 15, 1988 AS AMENDED BY FIRST AMENDMENT TO LEASE AND DEVELOPMENT AGREEMENT DATES NOVEMBER 3, 1988 (COLLECTIVELY THE "LEASE") BY AND BETWEEN PARK WEST, LTD. AND THE CITY OF MIAMI, AS SUBSEQUENTLY ASSIGNED TO THE CRA WITH RESPECT TO THE ARENA TOWERS PROJECT (THE "ARENA TOWERS PROJECT") AUTHORIZING THE CRA TO (i) WAIVE THE REQUIREMENT THAT WATCH OMEGA HOLDINGS L.P., A DELAWARE LIMITED PARTNERSHIP (THE "TENANT") PROVIDE AUDITED FINANCIAL STATEMENTS FOR THE YEARS 1996 THROUGH 2O01 AND IN LIEU THEREOF ACCEPT FINANCIAL STATEMENTS THAT HAVE BEEN REVIEWED BY KPMG FOR THE YEARS 1997 THROUGH 2O01; (ii) WAIVE THE REQUIREMENT THAT TENANT PROVIDE A FINANCIAL STATEMENT FOR THE YEAR 1996 SINCE THE BOOKS AND RECORDS WITH RESPECT TO ARENA TOWERS PROJECT ARE NOT AVAILABLE TO THE TENANT FOR THAT YEAR AS A RESULT OF A FORECLOSURE ACTION PROVIDED TENANT PAYS AS RENT FOR THE YEAR 1996 THE AVERAGE RENT DETERMINED TO BE DUE AND PAYABLE FOR THE YEARS 1997 THROUGH 2O01; (iii) CONFIRM THAT PROFESSIONAL MANAGEMENT, INC., A FLORIDA CORPORATION ("PMI") IS AN "ACCEPTABLE OPERATOR" AS SAID TERM IS DEFINED IN THE LEASE: (iv) ACKNOWLEDGE AND AGREE THAT TENANT SHALL BE ENTITLED TO ALL RIGHTS OF AN "INSTITUTIONAL INVESTOR" UNDER THE LEASE WITH RESPECT TO A PURCHASE MONEY MORTGAGE, INCLUDING ALL THE RIGHTS AND REMEDIES UNDER SECTION 6.1 (c) (ix) OF THE LEASE; AND (v) AUTHORIZE THE ACTING EXECUTIVE DIRECTOR TO EXECUTE AN ESTOPPEL LETTER IN CONNECTION WITH THE LEASE. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) 41 October 29, 2002 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 L. Winton Board Member Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None. ABSENT: None. Chairman Teele: Look. The only thing I'm going to say is, this is a very complicated transaction, I think. The fact that the buyer and the seller have gotten together and paid over a million dollars ($1,000,000) in property taxes to bring everything current is very helpful. But please don't come back with us, with a gun to our head, that we've got to do something or the deal could fall through, if you propose to buy the ground lease underneath it or any other transactions. I really don't think it's fair to this body to put us in a position where you all have been working since April. We get an opportunity, with a gun to our head, either do it or we kill the deal. And with all that said, we certainly want you all to continue to invest in the community. Mr. Katz: We plan to. Thank you. Chairman Teele: Must be some good deals out there. You bought both pieces of property. Mr. Chairman -- Chairman Regalado, we have gone well over our allotted time. 42 October 29, 2002 38. DIRECT CLERK OF CRA BOARD TO ADVERTISE EXECUTIVE SESSION TO DISCUSS PENDING LITIGATION IN LYRIC VILLAGE CASE FOR NOVEMBER 19, 2002 AT 2:00 P.M. Chairman Teele: Is there anything else, Madam Director -- Madam Executive Director, Mr. Attorney. William R. Bloom ( Special Counsel, CRA): Commissioner, one thing that I would request is the CRA (Community Redevelopment Agency) board of directors schedule a shade meeting to discuss the Lyric Village litigation so we can talk about some settlement options and try to bring that deal to a close. Chairman Teele: All right. Well, we need to move it and second it now, because it has to be done in an open meeting. Mr. Bloom: Yes. Chairman Teele: So, Commissioner Winton, would you move it at the re -- Vice Chairman Winton: Did we pick a date? Mr. Bloom: We should pick a date. Vice Chairman Winton: Next Commission meeting? Chairman Teele: Well, let's pick the 191h, the next Commission meeting. Vice Chairman Winton: Yeah. So moved. Chairman Teele: For 2 pm. Board Member Gonzalez: Second. Annette Lewis (Executive Director of CRA): Sir, we do have one final pocket item. Chairman Teele: Well, hold it. Hold it. Ms. Lewis: I'm sorry, sir. Chairman Teele: Is there discussion? All at the request of the Attorney for a meeting under -- and the Clerk will note and do publication of the notices, as required by law. All those in favor, signify by the sign of "aye." The Board Members (Collectively): Aye. Chairman Teele: Those opposed have the same right. 43 October 29, 2002 un The following motion was introduced by Vice Chairman Winton, who moved for its adoption: MOTION NO. CRA/SEOPW 02-169 A MOTION DIRECTING THE CLERK OF THE CRA BOARD TO ADVERTISE AN EXECUTIVE SESSION TO DISCUSS PENDING LITIGATION IN THE LYRIC VILLAGE CASE FOR NOVEMBER 19, 2002 AT 2:00 P.M. 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 NAYS: None. ABSENT: Board Member Joe Sanchez 44 October 29, 2002 39. DEFER CONSIDERATION OF PROPOSED IN -FIND ASSISTANCE AND FUNDING TO GEORGE SANCHEZ FOR "NEUTRAL GROUND" PROJECT FOR 7:00 P.M. ON THIS SAME DATE (See #) Chairman Teele: Madam Attorney -- Madam Director. Annette Lewis (Executive Director of CRA): Sir, we have one more pocket item, and this is coming from George Sanchez. Last year, around this time, we had approved La Bendicion in relation to the art basel. Mr. Sanchez is proposing a neutral ground fair, also related to art basel, but he's asking for a little bit more this year than he did last year. He's asking the CRA (Community Redevelopment Agency) for fifty percent of his budget, which is fifty-one thousand, four hundred. Chairman Teele: Well, we're going to have to ask Mr. Sanchez to meet with each of the Board members, individually, and to go through that and we will set a meeting. When is this, in December? Ms. Lewis: That is -- George Sanchez: Yeah, the date of the event is December 51h. And that time is somewhat of the essence, unfortunately, because just with the planning and execution, it's in 30 days. I brought the things forward some time ago, but there was just -- I guess we were working on some of the logistical details to have it voted upon. Chairman Teele: Would this be in the Omni area? Ms. Lewis: Yes, sir. Mr. Sanchez: Yes. Same location we were moving the venue. And the reason why the cost went up is that we changed the location of that party from being in the Ice Palace Film Studio to in the street, literally, to try to get -- on North Miami Avenue. And I spoke to DOT (Department of Transportation) about doing part of it, if we cleaned up underneath 395, to actually tent that and do part of it right underneath the expressway, so we would have that concentrated effort. And I would like to point out that being that the Albert Jane Group is not doing an event, there really is nothing else happening down in that neighborhood, like there was last year, if we don't go forward with something. Chairman Teele: Well, we'll call a special meeting to take this item up, but I think the District Commissioner is going to have to be comfortable, Commissioner Winton, and you're going to have to have a recommendation from him. I don't mean to -- Vice Chairman Winton: George, how much -- so, what's the timeline here? I mean, I know it's December 51h Mr. Sanchez: I'd have to -- 45 October 29, 2002 Vice Chairman Winton: When's our next Commission meeting? Mr. Sanchez: I'd have to turn in bills like by the end of the week to have this executed, because it takes another week to 10 days for the City to cut the checks. And with Thanksgiving being the weekend before December 51", time is of the essence. I mean, as it is, it's -- I'm under the gun, if we're going to pull it off. And, you know, the fair is coming, everything is going through, the coordination -- all the coordination has been created between busing people from the Design District over to the area for the event. Vice Chairman Winton: How much did we give last year? Ms. Lewis: Fifteen thousand, if I'm not mistaken. Mr. Sanchez: Fifteen. And then there was another -- well, the thing is, it was two separate things. This year I've put it together. Vice Chairman Winton: OK. Mr. Sanchez: Last year it was the art exhibit. This year I've added to the art exhibit a component of an African -American artist named Ernest King, that would be exhibiting inside of a container, underneath the expressway, across from where I would do the installation of the La Bendicion. And then there was the party component, which was Neutral Ground, that was held at the Ice Palace. That was jointly sponsored through CRA and the Empowerment Trust. Vice Chairman Winton: And how much was that? Mr. Sanchez: That was another ten thousand. Ms. Lewis: But the CRA didn't give ten thousand. Mr. Sanchez: The CRA didn't -- no. The Empowerment Trust gave 20 for that. Chairman Teele: I thought our commitment last year was fifteen thousand. Mr. Sanchez: It was for the one portion. Then, for the other event, it was another "X" amount of dollars. So this year I put everything together, and I'm trying to make it larger scale to keep bringing more and more people down there because, in the end, the investment dollars that that community's making into that neighborhood increases the TIF (Tax Increment Fund) fund. You get more people buying real estate, and it increases the tax revenue for the CRA and to improve the entire community. Vice Chairman Winton: Well -- and, Commissioner Teele, I think you're the one that educated me last year on the significance of art basel, and they'll be here, you know, principally in Miami Beach, but I was surprised at the number of venues that are going to be -- private venues, but in the City of Miami, particularly, in the Wynwood section, where we've got some of the major collections in our community are there. And there's going to be open to the public and private 46 October 29, 2002 M receptions showing off those collections that are in Wynwood. So, it's a big deal. I think the only thing that you're probably nervous about, which is the same thing I'm nervous about -- this is the first time I've seen the budget, and fifty thousand dollars ($50,000) is a big chunk of dough. You know, if it was 15 or 20, I wouldn't be batting an eye, but 50 made me give -- so, where's the fifty thousand coming from -- the other fifty thousand coming from? Mr. Sanchez: I've -- only speaking to different sponsors. I've spoken to the Empowerment Zone again, and different private -- some private sources. I've spoke to people at Bacardi. I spoke to some to some people at Sanchez Levithan; different advertising agencies. Vice Chairman Winton: How many of the developers in the area have ponied up money for this? Mr. Sanchez: Nobody's putting up a dime for it, because then it becomes too -- one of the problems with doing that, Johnny, is that in going directly to certain people -- and one of the reasons the event's called Neutral Ground, and it takes place underneath the expressway, is that it's not benefiting any one particular person. Vice Chairman Winton: Well, yeah, but that's my point to all of then. You all need to step up and -- Mr. Sanchez: No. I mean, they're supporting it, but they don't want to -- like most people -- I mean, everybody else who got the higher tax bill. So, it's a -- Chairman Teele: Everybody else what? Mr. Sanchez: Well, everyone that got an increased tax bill. Chairman Teele: Yeah, but where do you think the money that you're asking for is going to come from? Mr. Sanchez: It comes directly out of that, so they feel that that's where it's come from. Chairman Teele: See, I would be much more enthusiastic if you were having this in a place that pays taxes. I know that may sound a little -- but, I mean, I have said all along, any event that we can put in Big Time Studios or any of those facilities over there, I'm in favor of it, because they're paying taxes and they get their money back by us having venues there to -- Mr. Sanchez: Well, I don't think -- I mean, if it comes down to something like that, I don't think it's a problem doing it again at Big Time, except for if Fast and Furious goes over schedule, which they're already going over schedule. That was another reason for taking it out of Big Time, is that Fast and Furious, because of the rain, was supposed to be out December I" of Big Time, and it seems like they're going to be there longer. Chairman Teele: They're going to be there, and I'm sure Big Time's praying they're there until next December. 47 October 29, 2002 Mr. Sanchez: Who wouldn't? I mean, they want them there for another year. Vice Chairman Winton: George. Mr. Sanchez: I don't blame them. Vice Chairman Winton: You said something earlier. You've been trying to get this before us for some -- what do you mean by that? Mr. Sanchez: Well, no. I took it to CRA. Probably about two months ago, I left a package over there, and I left one in your office, and I left one in Commissioner Sanchez' office and I don't believe I left one in Commissioner Regalado's or Gonzalez' office. Vice Chairman Winton: Well, I certainly didn't read it. Mr. Sanchez: Well, I put it there though. I absolutely put it there. Chairman Teele: Fifty thousand dollars ($50,000) is sticker sharp around here. Mr. Sanchez: So, forty-nine thousand, nine hundred ninety-nine is fine? I mean, however -- if it needs to be modified -- my only concern is the timeline. I mean -- Vice Chairman Winton: You know what I would be comfortable with -- Mr. Sanchez: -- time is somewhat of the essence. Vice Chairman Winton: -- is 30. I am going to make some phone calls for George -- Chairman Teele: Do it. Vice Chairman Winton: -- to some of these developers around there, and put the arm on them. And if they -- and, frankly, if -- you know, I see both sides of this, as I'm sitting here talking. You know, I see our side, which is the government side, and we're trying to do the appropriate thing with the public's tax dollars, except the public's tax dollars, it's out of the increment, so it isn't out of the City's general fund. It's out of the taxpayers in this very specific district, who have -- who benefit from this, and this is a public thing. It isn't a private thing. So, what George is trying to do is something within a defined geographical boundary area, with money that those taxpayers, specifically, are paying into our fund over here, from a CRA standpoint, to be used for economic development. Well, there's no question this kind of thing becomes economic development. So I understand that piece where I was coming from, when I first started talking as well. This is public money. Well, yeah, it's public money but it's not the same kind of public money as the general fund money. That's real public money. This is a very different kind of public money. This is much more like DDA (Downtown Development Authority) kind of money. And so, I first started to say, "Well, if the property owners around there don't want to pay to support this, then why should we?" Except that's really -- the more I talk about it, that's wrong -- 48 October 29, 2002 h,.._. Chairman Teele: It is their money. Vice Chairman Winton: -- because it is their money. Mr. Sanchez: It is their money. Vice Chairman Winton: It is those property owners' money -- Mr. Sanchez: Exactly. Vice Chairman Winton: -- that he's talking about spending in that area, to create an event in that area that leads to the kind of economic revitalization that we need, and he isn't doing it up east on waterfront. He's doing it back west in the whole neighborhood. So -- Board Member Sanchez: Are you prepared to support thirty thousand? Chairman Teele: Are you here on this item, sir? Vice Chairman Winton: Well, I am trying to figure out if it shouldn't be more. You know, I was at thirty because I was going to go beat up the property owners and make them pay more money, but that --as I began to hear myself say that, I recognized how almost irrational that is, because it's those property owners' money that we have in the first place. Chairman Teele: Commissioner Winton, I think what George is trying to do is great. I'll tell you where I'm a little nervous. If we're going to become the art basel funding agency each year -- I mean, I'm concerned about -- Vice Chairman Winton: I agree. Chairman Teele: -- the precedent, where we're now becoming, you know -- Vice Chairman Winton: I agree. Chairman Teele: There's a -- art basel is great. There's no question about it, but I don't think we can afford to become pitted in one activity. We've got to do a lot of things to try to keep the excitement and the interest about the Omni redevelopment area going, and I would feel a lot more comfortable if some of the Omni property owners were here saying, this is what we'd like to do. But -- Mr. Sanchez: Can I address that very briefly? Chairman Teele: No, no, no, no. Mr. Sanchez: No? 49 October 29, 2002 Chairman Teele: This is a Commission discussion. Mr. Sanchez: All right. Chairman Teele: I'm going to move that this item be deferred until after this meeting, at 7 o'clock, unless Commissioner Winton is ready to make a motion. Because it's not fair to all these other people that are here for the planning and zoning issue, that's supposed to come up at 3 o'clock. And Commissioner Regalado -- Chairman Regalado has been extremely -- Board Member Sanchez: Patient. Chairman Teele: -- patient. Vice Chairman Winton: So we're going to bring it back after the -- I agree. Chairman Teele: I was -- Board Member Sanchez: Second. Your motion is to defer. There's a second to defer. Bring it back at seven. Chairman Teele: Motion to defer it until 7pm tonight. Board Member Sanchez: Second. Chairman Teele: Seven pm tonight. All those in favor say "aye." The Board Members (Collectively): Aye. Chairman Teele: All opposed say "no." The following motion was introduced by Chairman Teele, who moved for its adoption: MOTION NO. CRA/OMNI 02-87 A MOTION TO DEFER CONSIDERATION OF PROPOSED IN -KIND ASSISTANCE AND FUNDING TO GEORGE SANCHEZ FOR THE "NEUTRAL GROUND" PROJECT FOR 7:00 P.M. ON THIS SAME DATE. 50 October 29, 2002 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 L. Winton Board Member Joe Sanchez Board Member Tomas Regalado NAYS: None. ABSENT: Board Member Angel Gonzalez Chairman Teele: The item is deferred. The CRA agenda is now recessed, and they'll only take up that one item. And, Mr. Chairman, let me apologize to you and thank you for your patience. Let me apologize to all the people that are here, that came in for these zoning items at 3 o'clock. We're running a little bit behind time and thank you very much, Mr. Chairman. Board Member Regalado: Thank you. Thank you. Note for the Record: At this point, the Community Redevelopment Agency for the Southeast Overtown/Park West and Omni District went into recess at 3:37 p.m. and reconvened at 7:24 p.m., with all members of the Community Redevelopment Agency found to be present, except Chairman Teele. 51 October 29, 2002 72. AUTHORIZING THE EXECUTIVE DIRECTOR TO PROVIDE IN -KIND ASSISTANCE AND FUNDING, UPON THE AVAILABILITY OF FUNDS, IN AN AMOUNT UP TO $51,400, SUBJECT TO THE AVAILABILITY OF FUNDS, TO EVENT COORDINATOR GEORGE SANCHEZ FOR THE "NEUTRAL GROUND" PROJECT SCHEDULED TO TAKE PLACE ON DECEMBER 5, 2002 (See #39). Board Member Regalado: Now, we are going into the continuance of the CRA (Community Redevelopment Agency) that we started at 2pm this afternoon. Vice Chairman Winton is chairing. Vice Chairman Winton: Could I ask, Commissioner Regalado, if you would mind chairing this discussion? Board Member Regalado: Absolutely. Yes, sir. Vice Chairman Winton: I have spent time thinking about this issue, and I think I articulated my position earlier this evening, but I would like to rearticulate the point. If you remember, in one of my discussion points, I was about to say, "Well, you know, get the the property owners to come to the table with more money, because they're the ones that are going to benefit." But as I was about to say that, it dawned on me that, you know, this is a tax increment district. And so, the CRA is capturing all of the incremental income that's being generated by the added value that those property owners are already bringing to the table. So, the fact of the matter is, they're already writing those checks and giving it to us in the CRA. This is not money that's going to the general fund, so the general taxpayers of the City of Miami would not be paying this. It would come strictly out of CRA, and it is within the CRA district boundaries. This project, I think, could go a long way towards being one of a series of steps that we could take, that could lead to significant redevelopment of the area. And as a consequence -- and because they don't have a lot of additional time -- I'm going to move that the CRA provide the additional fifty-one thousand, and whatever the change is, money that the sponsor has asked for to pull off this event in the appropriate fashion. So moved. Board Member Gonzalez: Second. Board Member Regalado: OK. We have a motion and a second. All in favor say "aye." The Board Members (Collectively): Aye. Board Member Regalado: It passes. 52 October 29, 2002 The following resolution was introduced by Vice Chairman Winton, who moved for its adoption: RESOLUTION NO. CRA/OMNI 02-88 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OMNI COMMUNITY REDEVELOPMENT AGENCY (CRA) AUTHORIZING THE EXECUTIVE DIRECTOR TO PROVIDE IN -KIND ASSISTANCE AND FUNDING, UPON THE AVAILABILITY OF FUNDS, IN AN AMOUNT UP TO $51,400, SUBJECT TO THE AVAILABILITY OF FUNDS, TO EVENT COORDINATOR GEORGE SANCHEZ FOR THE "NEUTRAL GROUND" PROJECT SCHEDULED TO TAKE PLACE ON DECEMBER 5, 2002. (Here follows body of 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: Vice Chairman Johnny L. Winton Board Member Angel Gonzdlez Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None ABSENT: Chairman Arthur E. Teele, Jr. Board Member Regalado: Thank you. Good luck. Mr. Sanchez: Thank you very much. Board Member Regalado: Don't even say anything. Is it over? That's it. Goodnight. Board Member Gonzdlez: Goodnight. Unidentified speaker: Motion to adjourn. Move to adjourn. Commissioner, we need to move to adjourn. Vice Chairman Winton: Move to adjourn the CRA Board meeting. Board Member Sanchez: So moved. Board Member Regalado: Yeah. We have a motion and a second. All in favor say "aye." The Board Members (Collectively): Aye. 53 October 29, 2002 The following motion was introduced by Board Member Regalado, who moved for its adoption: MOTION NO. CRA/SEOPW 02-170 A MOTION TO ADJOURN TODAY'S COMMUNITY REDEVELOPMENT AGENCY (CRA) BOARD MEETING. Upon being seconded by Board Member Gonzalez, the motion was passed and adopted by the following vote: AYES: Vice Chairman Johnny L. Winton Board Member Angel Gonzalez Board Member Joe Sanchez Board Member Tomas Regalado NAYS: None. ABSENT: Chairman Arthur E. Teele, Jr. 54 October 29, 2002 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 7:27 p.m. ATTEST: PRISCILLA A. THOMPSON, City Clerk SYLVIA SCHEIDER, Assistant City Clerk (SEAL) ARTHUR E. TEELE, JR. Chairman 55 October 29, 2002 RECEIPT DATE: December 20, 2002 SUBJECT: Minutes for the October 29, 20029 CRA Meeting. MAYOR DIAZ VICE CHAIRMAN WINTON COMMISSIONER GONZALEZ COMMISSIONER SANCHEZ CHAIRMAN REGALADO COMMISSIONER TEELE CITY MANAGER Received Bv: =hte r- 0ff, Cc