Loading...
HomeMy WebLinkAboutSEOPW OMNI CRA 2003-02-24 MinutesCITY OF MIAMI, FLORIDA i INTER -OFFICE MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: ` Pris la A. Thompson Citv Clerk DATE: April 2, 2003 SUBJECT: REFERENCES: ENCLOSURES: Minutes of the CRA Meeting of February 24, 2003 FILE: Enclosed herein, please find a copy of the minutes for the February 24, 2003 CRA Meeting. These minutes are regularly distributed to the members of the City Commission for their reference and files. PAT:mm c: Joe Arriola, Chief Administrator/City Manager Alejandro Vilarello, City Attorney CITY OF MIAMI MEETING MINUTES OF MEETING HELD ON FEBRUARY 24, 2003 PREPARED BY THE OFFICE OF THE CITY CLERK/CITY HALL Priscilla A. Thompson/City Clerk 0 0 MINUTES OF THE REGULAR BOARD OF DIRECTORS MEETING OF THE COMMUNITY REDEVELOPMENT AGENCY FOR SOUTHEAST OVERTOWN/PARK WEST AND OMNI DISTRICTS On the 24th day of February 2003, 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 Old Miami Arena, VIP Room, 701 Arena Boulevard, Miami, Florida. The meeting was called to order at 5:12 p.m. by Vice Chairman Johnny L. Winton, with the following Board Members found to be present: Chairman Arthur E. Teele, Jr. (6:00 p.m.) Vice Chairman Johnny L. Winton Board Member Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez ALSO PRESENT: Carlos A. Gimenez, City Manager, City of Miami 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 Frank Rollason, Executive Director, CRA, City of Miami Annette Lewis, Chief Financial Officer, CRA, City of Miami Linda Haskins, Senior Advisor of Finance, City of Miami Anna Rojas, Chief Deputy Clerk, City of Miami 1 February 24, 2003 1: pTRECT CRA. GENERAL COUNSEL ,TO;ENSURE`.THAT`;AGENDA=ITEMS ACCEPTING,. STATUS REPORTS FROM GENERAI; COUNSEL IS COMPLETED.IN',TIME TO.BE'MADE-- .: n • PART OF; AGENDA PACKAGE. Vice Chairman Winton: Commissioner Regalado, can y'all come to the front? We're going to start the meeting. Commissioner Teele isn't going to be here until maybe around six o'clock. So I don't want to stay here until eight. So we're going to start this meeting. Commissioner Sanchez, would you mind providing the invocation, and Commissioner Regalado, you lead us in the pledge of allegiance? Ladies and gentlemen, could we have your attention, please? We're going to formally begin the regular agenda of the Board of Directors meeting. Excuse me. Hello. Hello. Thank you. Thank you. We're going to start the scheduled meeting of the CRA for both the Omni area and Overtown/Park West, this meeting of February 241h, 2003. And Commissioner Sanchez is going to lead us in the invocation, and Commissioner Regalado, the pledge of allegiance. An invocation was delivered by Board Member Sanchez, followed by Board Member Regalado leading those present in a pledge of allegiance to the flag. Vice Chairman Winton: Mr. Rollason, on the first agenda item -- it's obviously the consent agenda -- who provides the -- on point number two, accepting status report on general counsel, is that prepared by our City Attorney's Office or Holland & Knight? Frank Rollason (Executive Director, CRA): That's internal. That's through the City Attorney's Office. Vice Chairman Winton: Alex -- whoever is responsible for this, could we make sure we get that report done in time, so that it gets in the five -day -in -advance agenda? Because we're beginning to really press on him to make sure -- one of the major complaints that we've had for some time is that we need to get this agenda so that we can look at it before we get here. And I think staff s -- you know, we're getting close now. I think they're going to do a good job, so I'd like to make sure y'all are (INAUDIBLE) Alejandro Vilarello (City Attorney): We'll certainly have it in the next meeting. This wasn't prepared for agenda by the time the agenda was put out. We can report on it. It's significantly the same as the one before; however, we closed out a good number of those contracts. Vice Chairman Winton: Great. Thank you. 2 February 24, 2003 Board Member Sanchez: Mr. Chairman. Vice Chairman Winton: Yes, sir. Board Member Sanchez: If I could ask that special agenda items S2 be deferred and S5 be deferred. Reasons, they don't identify any funding source. Vice Chairman Winton: And we're also deferring regular agenda Item Number 4. They're not here today. And 11, there are some problems with that, as well. And number eight and 13 were deferred as a part of our agenda. So -- Mr. Rollason: Mr. Chairman, can we -- go back to S5 for a moment. There's a timeliness issue on that. The Winter Fest Music Fest starts in March, and there's an item coming up on Commissioner Teele's blue page on the 271h to coincide something with this -- of this with the Police Chief and the Manager. And if we have an issue on identifying exactly where that money is, if we can just, you know, defer that to a little later, and I will try to have an answer for you in this meeting, if that will be acceptable. Board Member Sanchez: No. I would like to defer the item. Mr. Rollason: All right. February 24, 2003 • Vice Chairman Winton: So we have a motion to defer -- Board Member Gonzalez: Second the motion. Vice Chairman Winton: -- S2, S5, 4, and 11. Further discussion. Being none, all in favor "aye." The Board Members (Collectively): Aye. Vice Chairman Winton: Like sign opposed. The motion carries. 4 February 24, 2003 i The following motion was introduced by Board Member Sanchez, who moved for its adoption: CRA/SEOPW MOTION NO. 03-10 CRA/OMNI MOTION NO. 03-08 A MOTION TO DEFER CONSIDERATION OF: PROPOSED RESOLUTION OF OMNI COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING THE EXECUTIVE DIRECTOR TO COORDINATE WITH THE CITY OF MIAMI PARKS AND RECREATION DEPARTMENT, AS A PART OF A THREE PILOT PROGRAM AT MARGARET PACE PARK, IN THE HIRING OF A FULL TIME EMPLOYEE WHO WILL BE ASSIGNED TO SAID PARK; FURTHER REQUIRING THAT THIS POSITION WILL FUNCTION UNDER THE AUTHORITY OF THE CITY OF MIAMI PARKS AND RECREATION DEPARTMENT AND SUBJECT TO THE POLICIES WITHIN SAME; FURTHER REQUIRING THAT THE TOTAL COST OF SALARY AND BENEFITS FOR THIS POSITION SHOULD NOT EXCEED $30,000 ANNUALLY EXCEPT FOR INCREASES RELATED TO THE CITY'S BARGAINING UNIT AGREEMENT(S) IF A FULL TIME CIVIL SERVICE POSITION IS UTILIZED; PROPOSED RESOLUTION OF THE BOARD OF THE SOUTHEAST OVERTOWN COMMUNITY REDEVELOPMENT AGENCY INSTRUCTING THE EXECUTIVE DIRECTOR TO INITIATE DISCUSSIONS WITH THE CITY OF MIAMI POLICE CHIEF OR HIS DESIGNEE TO DEVELOP AND IMPLEMENT INITIATIVES FOR THE SEOPW REDEVELOPMENT AREA FOR INCREASED SECURITY PATROLS EITHER THROUGH POLICE OFFICERS OR VIA PRIVATE SECURITY SERVICE UNDER THE DIRECTION OF THE CITY OF MIAMI POLICE DEPARTMENT AND ADDITIONALLY IN INCREASED SECURITY PATROLS VIA AN INNOVATIVE POLICE INITIATIVE TO ADDRESS THE HOMELESS ISSUES AFFECTING THE BUSINESSES WITHIN THE PARKWEST ENTERTAINMENT DISTRICT EITHER THROUGH POLICE PRESENCE OR VIA PRIVATE SECURITY SERVICE UNDER THE DIRECTION OF THE CITY OF MIAMI POLICE DEPARTMENT WITH FUNDS TO BE PROVIDED BY THE CRA IN AN AMOUNT NOT TO EXCEED $50,000.00; PROPOSED RESOLUTION OF THE BOARD OF THE OMNI COMMUNITY REDEVELOPMENT AGENCY INSTRUCTING THE EXECUTIVE DIRECTOR TO INITIATE DISCUSSIONS WITH THE CITY OF MIAMI POLICE CHIEF OR HIS DESIGNEE TO DEVELOP AND IMPLEMENT INITIATIVES FOR THE OMNI REDEVELOPMENT AREA FOR INCREASED SECURITY PATROLS EITHER THROUGH POLICE OFFICERS OR VIA PRIVATE SECURITY SERVICE UNDER THE DIRECTION OF THE CITY OF MIAMI POLICE DEPARTMENT; 5 February 24, 2003 REPORT FROM NATIONAL DEVELOPMENT COUNCIL: PRELIMINARY FUNDING STRATEGY AND STATUS REPORT; PROPOSED RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO IMPLEMENT A "FIRST SOURCE HIRING POLICY" FOR SERVICE CONTRACTS RESULTING IN CONSTRUCTION RELATED PROJECTS OCCURRING WITHIN THE SEOPW ' REDEVELOPMENT AREA (DEFERRED FROM JANUARY 27, 2003). (Here follows body of motion, omitted here and on file in the Office of the City Clerk.) 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. Vice Chairman Winton: Mr. City Attorney, do we have to -- are we required to have a motion on deferring items, or is that just -- it's the -- Mr. Vilarello: Yes. So that you can confirm the intention of the board to defer the item. Vice Chairman Winton: OK. Thank you. Commissioner Gonzalez. Board Member Gonzalez: Did you defer five? Vice Chairman Winton: No. We deferred 4 and previously deferred -- we deferred, at this meeting, 4 and 11. And in our agenda packet, 8 and 13 had already been deferred. In addition to that, Commissioner Sanchez asked that we defer S2 and S5. OK. Any other deferrals? Then to the regular agenda. And I guess I might say, for the sake of the audience, that there was a -- as you all know, there was a newspaper article in The Miami Herald today that had some discussion points from a number of Commissioners, and Commissioner Teele asked that we not enter into those discussions until he gets here, so we're waiting for him to get here some time between 5:30 and six. 6 February 24, 2003 • 9 ,P °3 , AUTHORIZE,CPk EXECiJTIVE. DIRECTOR�TO GRANT„ MATCHING. FUNDS ; $70 000;'` TO; DOWNTOWN `MIA,MI PARTNERSHIP. vOMNL FACADE -PROGRAM,: FOR -THEIR "OMNI PAINT PROJECT.'',IN MEDIA AND::ENTERTAINIVTENT DISTRICT: Vice Chairman Winton: Personal appearance, Number 3, Downtown Miami Partnership. Josie. Somebody. Ellen. Eleanor Kluger: Eleanor Kluger, Omni Advisory Board. Very happy to be here today, Commissioners. We want to show you what we've been working on for quite a while. We have the Miami Downtown Partnership with Josie Correa and Robert Geitner. And he's going to give you a Power program there. And Tina Spiro and Eran Spiro are our artists, who have done a master plan for the Omni area. And as you can see, we're going to paint the town red. And all of us that are here from the Omni area are wearing our red in order to tell you how much we all support this endeavor. It's the first time something like this has been tried, and we think we're going to really make a difference on a small budget. So I'm going to turn it over to Robert now, and he's going to tell you the particulars. Robert Geitner: I'm here to give you a brief overview of a program called the Omni Facade Program. The request in front of you today is a match grant to a project that's already underway and partially funded. Our project aims to spare reinvestment in the media and entertainment district by attracting attention to the area through color. Most of the buildings in this district are medium to small warehouses, single tenant, and over years of disinvestments, are in a state of repair, much like the photo you see here. Our program is primarily a paint program, and we're using paint because it's a cost effective way to create, a large impact in a very small area. Using a plan palette, the area that we're concentrating our attention on is the media and entertainment district in the Omni CRA (Community Redevelopment Agency). The program is a match grant program. The cost of the paint job for each one of these buildings, 65 percent of the cost is borne by a grant program, with a mandatory match from the property owner of a minimum of 35 percent. Our grants are capped at nine thousand, seven hundred and fifty dollars ($9,750) per project, and that's a maximum. Some of these projects come in far less. Again, the goal here is to attract attention to this specific neighborhood by using color in a very quick way. And taking buildings from the state you see this one in to a state like the one you see here below. The program area is inside of the Omni CRA 100 percent, and it's the area defined as the media and entertainment district. The target for the first portion of our program is the area directly adjacent and west of the new Performing Arts Center. And a significant reason for doing this is to sort of prepare the neighborhood for the opening of this magnificent facility, and this huge investment on behalf of the County, the City, and citizens in the area. We had a meeting last week with property owners in the area. There's been a wonderful expression of interest in the program, and some of our projects are already underway. Most of the projects you see line themselves up in a corridor along the North Miami Avenue and Northeast 141h Street intersection. And the hope is that the impact will be one that truly changes the scope of the street. Our funding. Seventy thousand dollars ($70,000) in grants have already been awarded to Downtown Miami Partnership specifically for this program from the Empowerment Zone Trust. We're here today to request a matching grant of seventy thousand dollars ($70,000) from the CRA to compliment our program. Our property owners in the area have a minimum required match of forty-nine thousand dollars ($49,000), bringing the total budget -of the program to one hundred and eighty- 7 February 24, 2003 nine thousand dollars ($189,000). Expenses for the program. Administration, twenty-three thousand dollars ($23,000). This is less than 12 percent of the total value of the program. Our grant projects, which is the bulk of this expense, is one hundred and fifty-six thousand dollars ($156,000). We are carrying a ten thousand dollar ($10,000) contingency fund to do minor plaster repair in order to precede the paint jobs on some of these buildings. Our program partners, the Downtown Miami Partnership, we've completed 350 fagades in the central business district in the last five years. We administer the City's Community Development Block Grant Program for commercial redevelopment, specifically the fagade program, and have managed to do projects that range from simply replacing awnings to buildings -- building paint jobs, signage, shutters, and are well experienced in working with the City staff on permitting issues for contractors. Eran Spiro and Associates, the designers who put together the coordinated palette -- notice I did not say uniform, but I did say coordinated palette -- for the buildings in the area. They're an urban planning and architecture firm that was selected by the Omni Advisory Board. The first phase of their project was funded by the Empowerment Trust. They have 20 years experience in creating paint schedules for high rise projects, domestically and in the Caribbean. Our timeline for the project as it stands right now. In August of 2002, the Omni Advisory Board looked at proposals for design concept and selected Eran Spiro and Associates. The Empowerment Trust funded the initial design concepts with a grant. In October of 2002, the Downtown Miami Partnership, sought cede funding from the Empowerment Trust to begin the program. That grant was awarded in October of 2002. In January of 2003, we began our first projects in the area. And today, in February of 2003, we're standing in front of the CRA requesting matching funds. Thank you. And now I'd like to bring up Mr. Eran Spiro from the design team. Board Member Sanchez: I have a question. Do you provide technical assistance also? Mr. Geitner: Yes, we do. Eran Spiro: Vice Chairman John Winton, Commissioner, Mr. Gonzalez, Regalado and Sanchez, Mr. Rollason, Executive Director of the CRA, and the staff, property owners, ladies and gentlemen, thank you very much for this opportunity to present to you -- the model -- to present to you the three-dimensional scale model, which prepared by our firm for the media and entertainment area. We've conceptualized this program some six months ago, and are very pleased that it is being considered for implementation by the CRA and by funding it. We would like to thank, particularly, Ms. Eleanor Kluger, President of the Omni Advisory Board, and her husband, Harold, who supported our idea from inception and guided us through progression. We further would like to thank Ms. Jacquelyn Rodriguez, the project manager of the Miami -Dade Empowerment Trust, who funded our work to reach this point. Further thanks I give to the DMP (Downtown Miami Partnership), who is enthusiastic about adopting and furthering this program of enhancing the beauty and urban amenities in downtown Miami. We're looking forward to a beneficial working relationship with the DMP, and the CRA on this project and other project ideas that could be realized by our collaboration in preparing strategic urban plans based on urban design element teamed with existing programs that are currently being planned and being implemented. We're pleased that all the parties concerned are actualizing the vision of a beautiful Miami is a place for a solid investment. At this point, I would like to introduce my wife, who is the artist who put the color palette together, and it created this beautiful palette that 8 February 24, 2003 you see on the plan. And she'll introduce some other members of our team. Thank you very much. Tina Spiro: Good evening. Thank you for having us here, and thanks again to all .the people who Eran mentioned. They've been invaluable. Vice Chairman Winton: Ma'am, could we get your name and address, please, for the record? Ms. Spiro: Tina and Eran Spiro. Eran Spiro and Associates, 8901 Southwest II01h Street, Miami, 33176. Vice Chairman Winton: Thank you. Ms. Spiro: I'd just like to briefly -- unfortunately, one of the team members is not here, which is Hector Burga. He was responsible for the construction of the model. We worked with a junior class from Design and Arts Senior High School -- Design Architecture Senior High School, DASH, and they helped us with the street surveys. Raymond Hall, who 'is right here, who is a senior architect with our firm for the past 15 years, and we've collaborated on many projects, some of them quite similar to this. There's also one other person here, who is -- Raymond, come up. Maxine Henry, urban designer and artist, who's also associated with our firm. If you have any questions regarding the color scheme or the colors or how it works -- and I'd like to point some things out on the model, if you will bear with us for a second. What Robert showed in his beautiful presentation, the buildings -- the addresses are represented by these buildings with a green pin. Those buildings are either preexisting recently painted buildings, which were painted at the owner's expense, which we'll try to incorporate so as to save money and extend this program to do as many new buildings as possible, or they are either being painting under the DMP first (INAUDIBLE) of the program, or they have been agreed to -- there's an agreement with the owners to paint. So, all of those little green headed pins are fait accompli. They're in the works. They'll be finished within the next two to three weeks. There's only one pending building here. And the others -- many of the others, we're in dialogue with the owners, and we -- many of them are here and they've been very enthusiastic about supporting this. If you have any questions regarding colors or -- I would just make one point, though. This is a color scheme that will keep changing. For instance, yesterday this man painted his building. He just got up and painted it. He didn't know about the project. So I had to change ten buildings in the area so that there would be some kind of sequence. So it's an ongoing kind of process. It's a living process, but we hope, in the end, it'll be extremely aesthetic. If you could visualize that the Performing Arts Center is here, it's in this position here, and the color palette picks up on the cladding of the Performing Arts Center. We have met with the architects, and consulted with them, and gotten samples of their materials so that there is a tonality that moves out from the Performing Arts Center. And we hope, eventually, if, you know, this catches on and it's enthusiastically received and funding is identified for phase II and phase III, that we will extend it over the area that's included in the model. Thank you very much for your time. Board Member Regalado: Got a question. Vice Chairman Winton: Yes, sir. Commissioner Regalado. 9 February 24, 2003 Board Member Regalado: Ma'am. Vice Chairman Winton: Or Board Member -- Ms. Spiro: Yes. Vice Chairman Winton: -- Regalado. Ms. Spiro: Sorry. Board Member Regalado: Are they going to paint The Herald building? Ms. Spiro: That's not included in the project. Board Member Regalado: And why not? Ms. Spiro: It would be nice if it was, but I think that they already have a color. Board Member Regalado: What color? Ms. Spiro: What color? We'll give them a color if they want to paint it. I can't say that this program can offer to paint it, because we're confined to, more or less, these derelict warehouses, which are the ones that are, you know, most in need of rehabilitation, and the ones that will most quickly move the neighborhood along. I will say that, for the time being, for instance, the new site of the Miami International Fine Art College was recently painted in a beautiful color scheme, which was very compatible with anything that's happening in the neighborhood. And The Herald maybe could use, with a little adjustment, and it would look very noble as part of the neighborhood. But -- Vice Chairman Winton: Is Oscar Corral here? Board Member Regalado: Yeah. He's there. He's noble. Vice Chairman Winton: I thought I saw him. I hope he can -- hey, Oscar, you -- I hope you're taking this note down, man. I want to see it. Board Member Regalado: But I've got another question. This is -- Ms. Spiro: Yes. Board Member Regalado: -- a more serious one. Ms. Spiro: Mr. Regalado. 10 February 24, 2003 Board Member Regalado: You know that most of the planes coming from South America and Europe come from the east over Miami Beach and the Omni area. Are they going to paint the roof? Ms. Spiro: This particular fagade program does not include funds for painting the roofs, but there is a design provision for painting the roofs, which is very simple to achieve. I just don't know where the funding will come for it. And that's why, in this model, I represented it in the ideal state, which is with the roofs painted. It just means laying down on each roof a scrim of gravel and spraying it. If you think of the impact that the Cristo Islands had on Miami, think of what this would have in terms of PR (Public Relations) and impact and just, you know, being very hip and something unique in the United States. A whole neighborhood that becomes a work of art, photograph from the air. I mean, it would really be a knockout. I mean, but the first -- Board Member Regalado: Because, you know -- Ms. Spiro: -- purpose is to get, you know, this neighborhood moving. Board Member Regalado: But it would -- I mean, half of the purpose of the program is PR, and if we were to have some designs or some art on the roof -- 80 percent of the flights come in during the day, twenty percent at night. So we're talking of, you know, pilots and captains calling the attention of the people. Ms. Spiro: Absolutely. Board Member Regalado: You know, "We are now entering the City of Miami. Look on your left or your right." Ms. Spiro: Absolutely. Board Member Regalado: They do that in several cities in Europe, by the way, and the Middle East. When you go to Istanbul, they tell you to look at the mosque. So, I don't know. Vice Chairman Winton: It doesn't sound like the funding is in place for them to take that step. Board Member Regalado: No roofs, just one wall. Ms. Spiro: Well, maybe -- with such a great idea, maybe the funding will follow. Vice Chairman Winton: Right. Board Member Regalado: Just an idea. Vice Chairman Winton: Yep. Ms. Spiro: Wonderful idea. 1 I February 24, 2003 Vice Chairman Winton: Commissioner Sanchez. Board Member Sanchez: Thank you, Mr. Chairman. Vice Chairman Winton: Or Board Member. Board Member Sanchez: You answered my questions with the pins. Those are the ones that will be participating. Ms. Spiro: Yes. Board Member Sanchez: Either they will be painting their own property or they would be participating in -- Ms. Spiro: They're participating in the program. Some of those that have pins in it were recently painted before the program -- Board Member Sanchez: Right. Ms. Spiro: -- came on stream. So, as much as possible, I've tried to leave them alone and retain them, because you don't want to reinvent the wheel. You know, make them paint twice. They just painted. Board Member Sanchez: Would this amount of funds be able to paint all the buildings that don't have a pin on top? Ms. Spiro: I think so. Mr. Geitner: With this level of funding in place, currently we're able to do anywhere from six to 12 fagades at this point. Board Member Sanchez: Right. Mr. Geitner: With an additional wave of funding in place, we'll be able to expand that program to 14 to 20 fagades. Board Member Sanchez: What's the additional wave of funding? Mr. Geitner: With funds requested today from the CRA. Board Member Sanchez: OK. Mr. Geitner: Seventy thousand dollars ($70,000) is in place, and the program is working right now. 12 February 24, 2003 0 Board Member Sanchez: So with this amount of funds here in this -- that you're requesting, with the grants and what you're getting from the CRA, that would cover all that? Mr. Geitner: We would then be able to pull up to 20 projects in the neighborhood together at that point. Board Member Sanchez: And would that cover exactly what you're presenting to us today? Mr. Geitner: It would cover 95 percent of what's in front of you today. Ms. Spiro: I'll also point out that what is provided for in the budget is the maximum per building. There's a huge difference between a building of this size and a building of this size. So -- Board Member Sanchez: That's exactly what I'm trying to get at. Ms. Spiro: Exactly. Board Member Sanchez: Are you going to have enough funds to complete what you're showing us here today -- Ms. Spiro: I believe so. Board Member Sanchez: -- because I need to know if you're either going to come back and be asking for additional funds. Ms. Spiro: It's possible, but I hope not. Board Member Sanchez: OK. Well, I hope not either. Ms. Spiro. Yeah. I hope not because -- well, we could come back for the roofs. But I think that, at this point, I've done a count and I have 31 buildings; several of them have already been painted. I think, if we're very careful with our funds and the costs are held to a minimum, and the contractors are chosen carefully, I think we can accomplish this. Vice Chairman Winton: Commissioner Gonzalez. Yes, sir. Board Member Gonzalez: Yes. Before I ask my question, Commissioner Regalado, please don't pick on my favorite newspaper. I don't like that. You said this project is in anticipation of the completion of the Performing Arts; is that correct? How long do you expect it's going to take before they complete the Performing Arts? Priscilla A. Thompson (City Clerk): I'm sorry. Ms. Spiro, you must -- Vice Chairman Winton: Please speak into the microphone. 13 February 24, 2003 0 0 Ms. Thompson: Thank you. Ms. Spiro: What the architects told us is two years. Board Member Gonzalez: Two years. Ms. Spiro: And, also, I figure probably two and a half years until it's operational. Board Member Gonzdlez: OK. What brand or -- let's not talk about brand. What kind of guarantee are you getting on the paint used on these buildings? Ms. Spiro: Well -- Board Member Gonzdlez: How many years guarantee? Board Member Sanchez: That's a good question. Vice Chairman Winton: Name and address. Josie Correa: Jossie Correa, Downtown Miami Partnership, 25 Southeast 2°a Avenue, Suite 1007, Miami, Florida, 33131. As you know, most of you are familiar with our Fagade Improvement Program -- Board Member Gonzdlez: A little bit. Ms. Correa: -- that we do in downtown and -- I know you're very familiar with it. But it's modeled after that. And when we go out, we get three estimates -- two to three estimates on each one of these projects, which really makes it competitive because then you get a really good price. You know, you've got the painters out there -- Board Member Gonzdlez: Josie, I'm not -- I'm all familiar with the Fagade Program, as a director of Allapattah Business Development, I -- Ms. Correa: OK. Board Member Gonzalez: -- have done probably -- Ms. Correa: I know. Board Member Gonzdlez: -- close to 2,000 fagade projects. What I'm concerned with is the guarantee that you're going to get on the materials. Mr. Spiro: We're going to -- Board Member Gonzdlez: That's all. How many years guarantee you're going to get on this paint? 14 February 24, 2003 0 Mr. Spiro: Mr. Gonzalez, mostly we'll get probably seven years guarantee on the paint. Board Member Gonzalez: That's what I want to know. Mr. Spiro: It's going to be a high quality industrial paint, with a lot of titanium in it of high quality. We're not going to use any cheap paint, with all due respect. Board Member Gonzalez: They're going to do like a regular paint job. They're going to do -- Mr. Spiro: No. Board Member Gonzalez: -- pressure cleaning. Mr. Spiro: Yes. Board Member Gonzalez: They're going to do sealer. They're going to do -- Mr. Spiro: That's correct. Board Member Gonzalez: All right. That's all. Mr. Spiro: Power wash, sealers, and painting in two coats. Board Member Gonzalez: That was my question. Mr. Spiro: And then details everything, also. You know, give it the trimming and all the detailing. Board Member Gonzalez: Thank you. Mr. Spiro: Yes. Thank you, sir. Vice Chairman Winton: Any other questions? Board Member Sanchez: So moved. Board Member Gonzalez: Second. Vice Chairman Winton: I have a motion and a second. Further discussion on the item? Being none, all in favor "aye." The Board Members (Collectively): Aye. Vice Chairman Winton: Like sign opposed. The motion carries. 15 February 24, 2003 The following motion was introduced by Board Member Sanchez, who moved for its adoption: CRA/OMNI MOTION NO. 03-09 A MOTION AUTHORIZING THE CRA EXECUTIVE DIRECTOR TO GRANT MATCHING FUNDS IN THE AMOUNT OF $70,000 TO THE DOWNTOWN MIAMI PARTNERSHIP OMNI FAQADE PROGRAM FOR THEIR "OMNI PAINT PROJECT" IN THE MEDIA AND ENTERTAINMENT DISTRICT, LOCATED IN THE OMNI COMMUNITY REDEVELOPMENT AREA. (Here follows body of motion, omitted here and on file in the Office of the City Clerk.) 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. Board Member Sanchez: I hope you could stretch the paint so you could get 100 percent done. Mr. Spiro: We will try. But also we hope to God you follow Commissioner Regalado idea about the roof, because we thought about it about four or five months ago because of the airplanes in the area, and I'm very happy that he mentioned it. And if there will be an addition to it, we will try to do some of the little buildings right away. But some of the large ones, we may need an additional funds, and the DMP will approach you on the costs. Thank you for your time. Vice Chairman Winton: Thank you. Board Member Gonzalez: I have a question. Vice Chairman Winton: OK. Board Member Gonzalez: Another question. I see some of the buildings that you have on your project that are tall buildings. Right. How many floors? Mr. Spiro: There's one building, which is nine stories tall, that's owned by Eugene Rodriguez (inaudible). All the other ones are two and three story maximum.. Board Member Gonzalez: Two and three stories. 16 February 24, 2003 i • Mr. Spiro: Yes, sir. Board Member Gonzalez: And -- two and three stories. And the maximum that you're allowing as a grant is nine thousand dollars ($9,000)? Mr. Spiro: Nine thousand seven hundred dollars ($9,700) per building, maximum. Board Member Gonzalez: That means that, probably, most of those buildings, probably, the owner's contribution is going to be a lot more than 35 percent. Vice Chairman Winton: That's correct. Ms. Correa: The project is fifteen thousand dollars ($15,000), of which the grant would pay for nine thousand seven hundred and fifty dollars ($9,750), and the property owner, five thousand two hundred and fifty dollars ($5,250). So, each project is fifteen thousand dollars ($15,000), or hopefully, less so that we can do more. And I've already -- we've already gotten estimates for about 10 of the buildings, and most of them are coming in at under fifteen thousand dollars ($15,000). That means that the money is going to go a lot farther. Board Member Gonzalez: All right. Board Member Regalado: So you still got (INAUDIBLE) Vice Chairman Winton: But your point is still an accurate point. Some of these building owners will end up paying more than the 35 percent, but -- Ms. Correa: Yes, that's right. Vice Chairman Winton: -- they get the -- you know, they still get -- Mr. Rollason: The get a nine thousand dollar ($9,000) incentive. Vice Chairman Winton: Right. Ms. Correa: They will be paying more on some of them. Vice Chairman Winton: So, there still would be some incentive there for them. OK. Thank you very much. Mr. Attorney, you want to -- William R. Bloom (Special Counsel, CRA): I was just clarifying that the language regarding the warrantees, the seven-year warrantees, was intended to be included in the resolution. So you've got your -- Board Member Sanchez: So you're stating that it is -- the language is on the resolution? Because there's -- 17 February 24, 2003 • • Vice Chairman Winton: That language was not in any resolution that we passed, so -- Board Member Sanchez: Well, apparently, there needs to be that. I mean, that's -- Commissioner Gonzalez inquired about a guarantee on the paint. I mean, we -- Unidentified Speaker: What type of a guarantee, specifically? Board Member Sanchez: Excuse me, sir. I'm not an expert on paint. Mr. Spiro: We will get it, sir. With all due respect, I agree with the attorney, we should have the guarantee on the paint. Vice Chairman Winton: So what do we need to do, Mr. City Attorney? Alejandro Vilarello (City Attorney): Nothing. We're going to make it a condition of the grant agreement. Vice Chairman Winton: OK, fine. Mr. Spiro: Thank you, sir. Mr. Vilarello: A minimum seven-year guarantee -- Board Member Regalado: I would -- Mr. Vilarello: -- materials and that the proper building preparation before painting. Vice Chairman Winton: OK. Board Member Regalado: Mr. Chairman, I would say don't buy it where they bought the paint for the Orange Bowl. Mr. Spiro: Thank you, sir. Board Member Regalado: Any place. Somewhere else. 18 February 24, 2003 SUBMIT MONTHIY,FINANCIAL"STATEMENTS FROM CRA'";CHIEF'`FINANCIAI✓ '" w. .bFFICER;FOR-.PERIOD .ENDING DECEMBER' 314 2002. r. . ..S a a- y s> DEFER PROPOSED, RESOLUTION AUTHORIZING' EXECUTIVE"DIRECTOR TO REMIT:; M �$1430 000'FROIVI-rTAX INCREMENT TRUST FUND OF OMMI'CRA'FOR PURPOSE OF, P'AUNG'DEBT SERVICE "ON'PERFORMING ARTS ;CENTER BONDS: . a x a ' a LE -.SPECIAL` MEETING F;OR THURSDAY;.FEBRUARY27,=2003.," AT 3 M". " V ,.. „P.,AT-=`` MANUEL' :ARTIIVIE • CENTER," 900' S.W:` :1-5T�'STREET FOR';PURPOSE" OFF bISCiJSSING=';PROPOSED. RESOLUTION.:`AUTHORIZINGgEXECUTIVE DIRECTOR TO' R"X,ICE'ONMPERFORMINGRTS3"CENMT4EMRNI,i, 0A"YN,RA FOR" A<PUR.OSE OFPAYING.DEBT SERBONDS: Vice Chairman Winton: I guess that takes us to number 6. Board Member Regalado: Five? Board Member Sanchez: Six. Vice Chairman Winton: Well, five is just a finance report in there that -- William R. Bloom (Special Counsel, CRA): Right. Vice Chairman Winton: -- as you all know from our last meeting, is meaningless until we get the audit completed, then the new CPA (Certified Public Accountant) firm on board. The agreement has been signed, by the way, by a new CPA firm. So they'll be starting shortly. It's going to get in there and help us put our entire financial package together -- Board Member Sanchez: But we haven't voted on it yet. Vice Chairman Winton: -- so that at some point in the not -too -distant future -- Board Member Regalado: We did. Vice Chairman Winton: Excuse me. At some point in the not -too -distant future we will have a routine financial report, and my suggestion is that it not be done by staff, but it be done from the outside accounting firm that we ought to put on some sort of retainer, just as a routine matter of business. And they would give us an updated financial report each and every month, just like we have at DDA (Downtown Development Authority) and a few other -- these other boards. Board Member Gonzalez: Mr. Chairman. Vice Chairman Winton: Yes, sir. Board Member Gonzalez: But I do have a concern here, and we -- you know, supposedly we have here in revenues, we have taxes as City, we're supposed to have two million, fourteen 19 February 24, 2003 9 thousand, four hundred and seventeen dollars ($2,014,417). In the actual, we have zero. Actually -- from the City. From the County, we have 1,344,103, and then interests and investments, fifteen thousand, eight hundred and thirty-six. Vice Chairman Winton: What page are you on? Board Member Gonzalez: I'm on five. I'm not in six. I'm in five, because we're going to discuss six. Vice Chairman Winton: No, no. What page, not the item number. Board Member Gonzalez: Page. Vice Chairman Winton: Item five, second page. Got it. Frank Rollason (Executive Director, CRA): Would you like an explanation of that, Commissioner? Board Member Gonzalez: No. I would like to finish my -- Mr. Rollason: OK. Board Member Gonzalez: -- my statement, and then I'll get your explanation. Your explanation, I'm sure that it's not going to satisfy not only my question, but the position that I'm putting to vote on something today in regards with his statements. What we have in total revenues is one thou -- one million three hundred and fifty-nine, nine thirty-nine. Supposedly, we were told that the money, the two million fourteen thousand four hundred and seventeen is there, but it doesn't show in this paper. And I'm going to be asked to be voting and paying the County one million forty-three -- one point forty-three million dollars ($1,430,000), which is going to give us a deficit, according to the statement that we have before us. And I'll tell you, being honest, I don't feel comfortable about doing this. I mean, if I'm giving a report that it shows that we're going to have deficit (INAUDIBLE) make a payment on number 6 -- on Item 6 -- Vice Chairman Winton: So, would you like to respond? Board Member Gonzalez: Personally, I really -- Vice Chairman Winton: I understand completely. Mr. Rollason: Let me respond to that. The report that you have in front you is for month end December 31. Board Member Gonzalez: OK. Mr. Rollason: You're getting that report now because by the time they close out December and we get the information, I cannot get it to you in January. And that's part of the problem with the 20 February 24, 2003 reports that we've been giving to you. They're almost two months old by the time we sit here. The money that comes from the City side ,was put into the budget at the beginning of the year to cover the amount of money that you're talking about. The City side, for the Omni, is an additional two million fourteen four seventeen. Board Member Gonzalez: Correct. Mr. Rollason: And for the Southeast Overtown/Park West, one point five million. Board Member Gonzalez: Correct. Mr. Rollason: What Finance tells me is that they booked that in January, as what's required. So when the January statement comes out, that money is there. And so, when we go to pay the one point four, which is in Item Number 6, the money is there. It really has been there budgeted since the beginning of the year, but it's not booked `til January because of the requirements of how it's to be put in line. The problem that we have is that the information we're giving you is not up-to-date at the time that we sit here. But, today, there's really not a relationship between the report that you see in number 5, and the action that we're asking you to take in number 6. The money in number 6 is there, and it is booked, and it's been that way since January. Board Member Gonzalez: Well -- but Mr. Rollason, I'm sorry, but if the money's there, we should have gotten an updated report showing that the money's there, and I don't have that in front of me. And if I vote on this item, I'm voting against -- I'm voting on a deficit. I'm voting on a deficit. And that is a problem. That is exactly the problem that I have with this agency. This is the problem with the accounting that I have, you know. I mean, if you're going to present before -- at least, before me -- I don't know how my colleagues feel about it -- but if you're going to present to me for voting to pay an "X" amount of money and we don't have the money, according to your own report, then I have a serious problem with it. I do have a problem with it, because I'm voting. And you know who's responsible? Me. You know who's going to say tomorrow -- you know who The Herald is going to say, Commissioner Gonzalez and Commissioner so and so and so and so voted on this. OK. It's not going to say you. It wouldn't be anybody from the staff. It's going to be the City Commissioners sitting here or the board members of the CRA. (INAUDIBLE) Mr. Rollason: I understand exactly what you're saying, and I can only represent to you that it is there in the January report, and I don't have the January -- Vice Chairman Winton: But why don't -- Board Member Gonzalez: It makes me very uncomfortable. Vice Chairman Winton: Why don't we take action on this item then next month, when you have the report? Mr. Rollason: The money -- 21 February 24, 2003 • 0 Vice Chairman Winton: You'd have -- January's report would come to us next month. Mr. Rollason: This is due, by the interlocal agreement on this, by March 31 st. Our next meeting is March 3ISt Vice Chairman Winton: And if it isn't paid by March 31 St, what happens? Board Member Sanchez: But Mr. Chairman. Vice Chairman Winton: Yes, sir. Board Member Sanchez: Executive Director, that is why you give me more reason to request a CPA firm and an internal audit, because it puts us in a situation where we have to change the status quo. All these ongoing practices have ended us being embarrassed. Articles coming out in the paper of the old ways that things are being done here. Frank, I've got the utmost respect for you. I support the position that you're in, but that's what has to change. I can't run my paycheck -- I can't pay my bills and balance my check this way in my house. Because if the money doesn't come in, guess what? I bounce checks. Mr. Rollason: I agree. And I'm saying to you that money is there. It's sitting there right now. It's been there since January. Board Member Sanchez: Well, why isn't it on the record then? Mr. Rollason: Because that's the -- this is the December end report, and Finance does not post that money until January. That's when they are required to put that money in the actual account. It sits in a general fund or a trust fund or wherever it sits until January, and they make the move. Board Member Sanchez: Can you change the process now for later on, when we're faced with this situation, that we would have the money -- it'll be in there and then we could pay, because I. don't have a problem with paying the County. Under the interlocal agreement, we have to pay that. The concern that Commissioner Gonzalez has and I have is that we don't have the money in the records now. You say it's in the account, but it's not in the record as being (INAUDIBLE) Mr. Rollason: And it's in the January records. It's not in the December. You've got December end. Vice Chairman Winton: So the point -- so, I think that -- I think Commissioner Sanchez' point is good. Something has to change. Either we change the date by which we pay the County, or the City changes the date by which it books it. Mr. Rollason: I think that -- Vice Chairman Winton: One or the other. 22 February 24, 2003 Mr. Rollason: -- if they book it just as they're doing it and we have a monthly report that is timely, you will have it in front of you when we meet in February. You'll have it. There's no reason that that can't be extrapolated and given to you in a meaningful report that's up-to-date. You shouldn't be two months behind when you're sitting at the dais. Vice Chairman Winton: Commissioner Regalado. Commissioner Regalado. Board Member Regalado: I think the Chief Financial Officer is here. Linda -- is Linda here? No? I don't know. Oh, she's here. Why -- I mean, we have been trusting here for many, many months and -- Linda, I mean, can you assure this board that the money is there, that the money is ready, that there is no problem, that we're not voting on any deficit, or, you know, any problem when we do this? Linda Haskins: Linda Haskins, Chief Financial Officer, City of Miami. The tax increment money comes in in January every year. So that tax increment money would not be reflected in the statement. The audit, as of September 30th, is still in process. So I haven't seen the final balances. I've gotten reports on the final balances, which show positive balances in both the TIF (Tax Increment Fund) Fund and the general fund. At this point -- yes, but this doesn't have all the -- you know. But based on the fact that the budget for this year has only one -- a little bit more than a quarter gone by, and the expenses that we've seen have not eaten up the entire TIF amount, I would say that that money is there. Vice Chairman Winton: I, frankly, think one of y'all ought to move to defer this to the next Commission. Board Member Gonzalez: Mr. Chairman, I'm ready to make a motion to defer this item. Board Member Sanchez: Second. Vice Chairman Winton: We have a motion and a second to defer number 6 to the next CRA Board meeting. Any further discussion on that? Being none, all in favor "aye." The Board Members (Collectively): Aye. Priscilla A. Thompson (City Clerk): I'm sorry. Vice Chairman Winton: Like sign opposed. Ms. Thompson: I'm sorry, Vice Chair. I just need clarification. We started off with a discussion on five, and now you're voting on six? Vice Chairman Winton: Yes, because it was only a discussion. There was no action on five. Board Member Gonzalez: There was no action on five. Ms. Thompson: OK. So you're actually voting on six? 23 February 24, 2003 0 0 Vice Chairman Winton: We're actually voting on six. Ms. Thompson: OK. Thank you. Vice Chairman Winton: Yes. So, again, that's Item Number 6. Any further discussion? Being none, all in favor "aye." The Board Members (Collectively): Aye. Vice Chairman Winton: Like sign opposed. The motion carries. The following motion was introduced by Board Member Gonzalez, who moved for its adoption: CRA/OMNI MOTION NO. 03-10 A MOTION TO DEFER PROPOSED RESOLUTION OF BOARD OF DIRECTORS OF THE OMNI COMMUNITY REDEVELOPMENT AGENCY (CRA) AUTHORIZING THE EXECUTIVE DIRECTOR TO REMIT UP TO BUT NO GREATER THAN $1,430,000 FROM THE TAX INCREMENT TRUST FUND OF THE OMNI CRA FOR THE PURPOSE OF PAYING DEBT SERVICE ON THE PERFORMING ARTS CENTER BONDS: Upon being seconded by Board Member Sanchez, 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. Mr. Rollason: Can I ask a question, Mr. Chair? Is it possible to bring this as a special meeting on the 27"', if we can satisfy that and get this to where we can pay it on time to the County, and do it at the City Commission meeting? Board Member Sanchez: I don't have a problem with it, as long as the amounts reflect that it's in the account. I don't have a problem. Board Member Gonzalez: Me neither. I don't have a problem. Vice Chairman Winton: But it better be clear. 24 February 24, 2003 Mr. Rollason: I understand. Board Member Sanchez: Frank. Vice Chairman Winton: And it isn't just showing that that line item has been entered in here. It's showing what fund balances are. That's the real issue here. How do you know that based on -- it's going to be easy to know that you have that one million, whatever the number is. The question is, how much other money have you spent -- Mr. Rollason: I understand. Vice Chairman Winton: -- that hasn't been reflected, that doesn't give you a fund balance that allows you to send the check? Mr. Rollason: We can put that together. We'll bring it back -- Vice Chairman Winton: Thank you. Mr. Rollason: -- on the 27th Vice Chairman Winton: Yes, sir. Alejandro Vilarello (City Attorney): Mr. Chairman, I think, if you'd like to do that, why don't you just pass a motion calling a special CRA Board meeting for the 27th of March, for this item only. Vice Chairman Winton: OK. Board Member Sanchez: So moved. Vice Chairman Winton: And if we don't have the information, we don't have to have the meeting, is that correct? Board Member Sanchez: For this item only. Mr. Vilarello: For this item only. Vice Chairman Winton: Yes. Board Member Sanchez: For this item only. So moved. Board Member Gonzalez: Second. Board Member Regalado: I thought you said the 27th? Mr. Vilarello: Yeah, March 271h 25 February 24, 2003 0 9 Board Member Regalado: Not February? He's talking about February. Mr. Rollason: I'm talking about Thursday. Board Member Regalado: He's talking about Thursday. Vice Chairman Winton: Oh. Well, you're not going to -- how are you going to -- Board Member Sanchez: I don't have a -- hey,listen, I don't have a problem -- Board Member Regalado: No, no. I mean, but you need notice, right? Board Member Sanchez: But just let the -- Frank, crystal clear. This is what we want to be, crystal clear on this. The money has to be in that account and reflect that the money is in the account on the record. Vice Chairman Winton: The fund balance. Mr. Rollason: And if the fund balance is there, so -- right. I mean, I will -- if I can get it together for Thursday, I'll do that. If not, I think the -- wasn't the meeting combined in March, to the second part of March? Vice Chairman Winton: Yes. Mr. Rollason: The second meeting in March. So, I mean, it's going to be late as it is. Vice Chairman Winton: OK. Mr. Rollason: We don't have enough notice? Vice Chairman Winton: So, Mr. City Attorney, if he doesn't have the -- if we've called for that special meeting and we don't have the information, then we just -- we won't have the special meeting. Board Member Regalado: No. We have to have the special meeting. Mr. Vilarello: (INAUDIBLE) March 271h Board Member Regalado: We have to have the special meeting, but -- OK. We'll do it March, if you don't have it, but it's got to be noticed. Mr. Rollason: I would think it's something that could be squared away tomorrow. Vice Chairman Winton: OK. So -- not me, I don't think so. 26 February 24, 2003 • 0 Board Member Regalado: And it's up to you, Johnny, the time that you want to set it. Board Member Sanchez: You know, I think this board is sending out a clear message that it's accountability, transparency from now on. Vice Chairman Winton: Mr. City Attorney, do we need a -- you said we need a motion on setting this special meeting? Mr. Vilarello: Either way -- either for February 27th or for March 27th. The City Clerk has a question. Ms. Thompson: I'm sorry. I'm concerned on the legal noticing requirement for calling this special meeting. Mr. Vilarello: It's 24 hours notice. They're doing it here at a special -- at a regular meeting, calling a special CRA board meeting. That's fine. Ms. Thompson: Do we have a time for the meeting? Vice Chairman Winton: Are we required to have a time? Mr. Vilarello: You should identify a time, yes, since it's (INAUDIBLE) Commission meeting. Vice Chairman Winton: Three o'clock. Board Member Regalado: Fine, Vice Chairman Winton: OK. So I need a motion. Board Member Gonzdlez: So moved. Board Member Sanchez: Second. Vice Chairman Winton: Got a motion and a second for setting the time at 3 p.m., Thursday, the 27th of February, as a time for a special CRA Board meeting, to discuss one subject and one subject only, and that's the issue over the funding of the Omni Tax Increment amount for the Performing Arts Center; is that correct? OK. The motion is seconded: Any further discussion? Being none, all in favor "aye." The Board Members (Collectively): Aye. Vice Chairman Winton: Like sign opposed. The motion carries. 27 February 24, 2003 0 The following motion was introduced by Board Member Gonzalez, who moved for its adoption: CRA/OMNI MOTION NO. 03-11 A MOTION SCHEDULING A SPECIAL BOARD MEETING FOR THURSDAY, FEBRUARY 27, 2003, AT 3 P.M., AT THE MANUEL ARTIME CENTER, 900 S.W. 1ST STREET, MIAMI, FLORIDA FOR THE PURPOSE OF DISCUSSING PROPOSED RESOLUTION AUTHORIZING THE CRA EXECUTIVE DIRECTOR TO REMIT UP TO BUT NOT GREATER THAN $1,430,000 FROM THE TAX INCREMENT TRUST FUND OF THE OMNI CRA FOR THE PURPOSE OF PAYING DEBT SERVICE ON THE PERFORMING ARTS CENTER BONDS. Upon being seconded by Board Member Sanchez, 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. Vice Chairman Winton: Thank you. OK. Do you -- by the way, that did deal with number six. And do you all have anything else you want to say about number five before I move to number seven? No? 28 February 24, 2003 54 AUTHORIZE ,INCIIISION" OF:. NATIONWIDE°:: RETTRENIENT SOLUTIONS F'AS" OPTIONAL:;"""W457;--,DEFERRED:: COMPENSATION ",PLAN,,,".PROVIDER.° TO,,':PE EMPLOYED -BY -AGENCY" Vice Chairman Winton: Number 7. Mr. Rollason. Frank Rollason (Executive Director, CRA): Number 7 is authorization so that we can enter in with Nationwide Retirement Solutions. It's another outfit that offers 457 plans to employees. There's no cost to the CRA (Community Redevelopment Agency) on this. It's just an option for the employees. The only one they have now is ICMA (International City/County Management Association). Board Member Sanchez: So moved. Board Member Gonzalez: Second. Vice Chairman Winton: Motion and second. Further discussion. Being none, all in favor "aye." The Board Members (Collectively): Aye. Vice Chairman Winton: Like sign opposed. The motion carries. The following resolution was introduced by Board Member Sanchez, who moved for its adoption: CRA/SEOPW RESOLUTION NO. 03-11 A RESOLUTION OF THE BOARD OF THE SOUTHEAST OVERTOWN COMMUNITY REDEVELOPMENT AGENCY (the "SEOPW CRA") AUTHORIZING THE INCLUSION OF NATIONWIDE RETIREMENT SOLUTIONS AS AN OPTIONAL 457 DEFERRED COMPENSATION PLAN PROVIDER TO THE PERSONS EMPLOYED BY THE AGENCY. CRA/OMNI RESOLUTION NO. 03-12 A RESOLUTION OF THE BOARD OF THE OMNI COMMUNITY REDEVELOPMENT AGENCY (the "OMNI CRA") AUTHORIZING THE INCLUSION OF NATIONWIDE RETIREMENT SOLUTIONS AS AN OPTIONAL 457 DEFERRED COMPENSATION PLAN PROVIDER TO THE PERSONS EMPLOYED BY THE AGENCY. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) 29 February 24, 2003 • Upon being seconded by Board Member Gonzalez, the resolution was passed and adopted by the following vote: AYES: Vice Chairman Johnny L. Winton Board Member Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None ABSENT: Chairman Arthur E. Teele, Jr. 30 February 24, 2003 0 0 6. GRANT=$72 `500 IN ,ASSISTANCE TO`GIL TEREM-Cb-OWNER OF GILI',5 CAAFE= .AND BAKERY FOR BUILD OUT F ° AFE. O C - Vice Chairman Winton: Number 9. Frank Rollason (Executive Director, CRA): Number 9 -- Vice Chairman Winton: Mr. Rollason. Mr. Rollason: this is the one that was deferred from the last -- Vice Chairman Winton: That is correct. Mr. Rollason: -- board meeting, dealing with Gili's Cafe and Bakery. Board Member Sanchez: I had requested a CRA compiled report on all grants that it had given to businesses. Do you have that ready? Vice Chairman Winton: Board Member Sanchez, could I interrupt for.one second? Board Member Sanchez: Sure. Vice Chairman Winton: Those of y'all in the back of the room, if you want to have a conversation -- Dan, Fred, y'all want to have a conversation back there, would y'all please go out into the hallway? We can't hear up here. And the people that are listening up front can't hear us. So, conversation's out. Thank you. Yes, sir. Board Member Sanchez. Annette Lewis (Chief Financial Officer, CRA): That will be presented at the March 31 s` meeting, sir. Board Member Sanchez: OK. I'm prepared to move the item. Board Member Gonzalez: Second. Board Member Sanchez: Pending that report be completed and presented to me. Vice Chairman Winton: OK. So we have a motion and a second. And the motion includes -- what's that, Commissioner -- I mean, Board Member Sanchez? Board Member Sanchez: The report be completed and presented to me. Vice Chairman Winton: OK. Board Member Sanchez: That I get that report. If I don't get that report -- 31 February 24, 2003 0 • Vice Chairman Winton: Fine. So a motion and a second. Do we have any further discussion on the item? Being none, all in favor "aye." The Board Members (Collectively): Aye. Vice Chairman Winton: Like sign opposed. The motion carries. The following motion was introduced by Board Member Sanchez, who moved for its adoption: CRA/OMNI MOTION NO. 03-13 A MOTION GRANTING $72,500 IN ASSISTANCE TO MR. GIL TEREM, CO- OWNER OF GILTS CAFE FOR THE BUILD OUT OF THE CAFE, SAID FUNDS TO BE DISTRIBUTED N THE FOLLOWING MANNER: $47,500 FOR EQUIPMENT THROUGH THE EQUIPMENT LOAN PROGRAM, $15,000 FOR IMPACT FEES AND $10,000 LOAN; SUBJECT TO COMPLETION AND PRESENTATION OF REPORT PREVIOUSLY REQUESTED BY BOARD MEMBER SANCHEZ OF ALL SMALL BUSINESSES THAT HAVE OBTAINED GRANTS THROUGH THE CRA. 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. Board Member Gonzalez: I would also like to get a copy of that report myself. Board Member Sanchez: (INAUDIBLE) Ms. Lewis: It will be distributed to all board members, sir. Board Member Gonzalez: Pardon me? Ms. Lewis: It will be distributed to all board members prior to the meeting. Board Member Gonzalez: Thank you. 32 February 24, 2003 7. RESCIND SEOPW%CRA'R>02=179 ".AUTHORIZING ADVANCING=OF:`sf-'S6 000 FY1'03 CRA ;BUDGETED, .PROJECT FUNDS-;TQ:>"CITY FOR' PREPAIZATaION OF-`PD&E `FOR'" RECONSTRIJCTIQN OF'NW 1a1'' STREET BETWEEN BISCAYNE BOULEVARDyAND NW4:Srii AVENUE: Vice Chairman Winton: Number 10. Frank Rollason (Executive Director, CRA): Number 10 is a change or a request from the administration to change the action that you took in December. In December you authorized the board to refer to then, the Public Works Department, the development of the -- program development and the environmentals for the 11`h Street Project. What I'm asking for here is that you rescind that and allow me to make a decision on whether I go to the City to do that or whether I go to one of our consultants to do that, rather than sending it to the City Public Works or to the CIP (Capital Improvements Project). Board Member Gonzalez: OK. So move number 10. Board Member Sanchez: Second. Vice Chairman Winton: We have a motion and a second on 10. Any further discussion? Being none, all in favor "aye." The Board Members (Collectively): Aye. Vice Chairman Winton: Like sign opposed. The motion carries. The following resolution was introduced by Board Member Gonzalez, who moved for its adoption: CRA/SEOPW RESOLUTION NO. 03-12 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN PARK WEST (SEOPW) COMMUNITY REDEVELOPMENT AGENCY RESCINDING SEOPW/CRA R-02-179 AUTHORIZING THE ADVANCING OF UP TO $150,000 FY'03 CRA BUDGETED PROJECT FUNDS TO THE CITY OF MIAMI FOR THE PREPARATION OF A PD&E FOR THE RECONSTRUCTION OF NW 11TH STREET BETWEEN BISCAYNE BOULEVARD AND NW 5TH AVENUE; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO DIRECTLY EXPEND UP TO $150,000 FY '03 CRA BUDGETED PROJECT FUNDS FOR THE PREPARATION OF A ' PD&E FOR THE RECONSTRUCTION OF NORTHWEST IITH STREET BETWEEN BISCAYNE BOULEVARD AND NORTHWEST 3'm AVENUE AND TO INCLUDE 5TH AVENUE UPON APPROVAL OF THE CRA BOUNDARY EXPANSION PLAN. 33 February 24, 2003 0 0 (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: Vice Chairman Johnny L. Winton Board Member Angel Gonzalez Board Member Tomas Regalado Board. Member Joe Sanchez NAYS: None ABSENT: Chairman Arthur E. Teele, Jr. 34 February 24, 2003 • 0 ;B.;;DE:FER`RERORT FRQIVI SPECIALnCOUNSEZ REG:tARDING COItiIPIsET€E,.HISTORY:0 Vice Chairman Winton: Eleven has been deferred. Item 12, special report from -- or a report from special counsel. Mr. Bloom. William R. Bloom (Special Counsel, CRA): In connection with the sale of P-5, the board has asked for a brief history of the costs incurred in connection with the acquisition and development in our proposed disposition of that property. The property was acquired by the CRA (Community Redevelopment Agency) for sixty thousand, one hundred and twelve dollars ($60,112). At the time of its acquisition, it had an appraised value of approximately sixty thousand dollars ($60,000). It is my understanding that a majority of the value in that appraisal was related to an apartment building that was located on the property that has since been demolished by the CRA. The CRA has incurred expenses of approximately twenty-five thousand, nine hundred and seventy-three dollars and thirty-one cents ($25,973.31) for demolition costs, engineering survey, environmental and architectural costs. The CRA also constructed a parking lot on the property. It was done through a change order to the contract to construct parking lot P-3. The amount of that change order was forty-three thousand dollars ($43,000) for a stipulated sum for that parking lot. Making a total investment of the CRA of one hundred and twenty-nine thousand, eighty-five dollars and thirty-one cents ($129,085.31). The property currently has an appraised value as parking lot of twenty-eight thousand dollars ($28,000). If you skip to the third page, there is a proposal to sell the property. There was competitive bidding done. The highest proposal was from J.E.J. for fifty-two thousand dollars ($52,000). And the appraised value, at this time, is twenty-eight thousand dollars ($28,000). That transaction was based upon cash of ten thousand, four hundred dollars ($10,400), and a purchase money mortgage of forty-one thousand six hundred dollars ($41,600). A number of issues arose in connection with that sale, specifically with respect to a -- at that time, an unrecorded mortgage in favor of Mr. Jackson encumbering the Jackson Soul Food Restaurant. That property -- to describe it best, I think, if you look to the second page in your handout, you'll see three parcels. The parcel in the upper right hand corner is the existing Jackson Soul Food Restaurant that has an existing first mortgage now of forty-three thousand dollars ($43,000). It has a second mortgage of two hundred and fifty thousand dollars ($250,000). Behind the restaurant, there's a small parcel of land that was also acquired by J.E.J., which is currently unencumbered. And then, the property to the south, at the bottom of the page, is the parking lot owned by the CRA, which is currently unencumbered. Vice Chairman Winton: Well -- Mr. Bloom: Part of the issue -- Vice Chairman Winton: Excuse me. Mr. Bloom: Part of the issues in developing this property is that to be able to get it into compliance with the City of Miami zoning code, is my understanding from the consultants, that a unity of title has to be prepared tying Jackson Soul Food Restaurant parcel with the parking parcel, so that it will be in full compliance. So, to accomplish that and to protect our position, 35 February 24, 2003 the CRA's position, with its forty-one thousand dollar ($41,000) first mortgage on the parking lot, it will be important -- we would have to spread the lien of our mortgage to the surrounding parcels. On the same token, the existing first mortgagee on the Jackson Soul Food Restaurant, which is an institutional loan in favor of Pacific Mortgage, would have to spread the lien of its forty-three thousand dollar ($43,000) mortgage to encumber the parking lot and the vacant parcel, so that they'd be in a position, if there was a foreclosure, that they would be able to acquire all the property. So what this sheet shows is that Pacific would end up, at the end of the transaction, with a first mortgage on all three parcels; that the CRA would end up with a second mortgage on the parking lot we're selling, a second mortgage on the unencumbered parcel behind Jackson Soul Food Restaurant, that's owned by J.E.J., and a third mortgage encumbering the Jackson Soul Food Restaurant. And that the existing two hundred and fifty thousand dollar ($250,000) second mortgage on the Jackson Soul Food Restaurant would be spread. It would be junior to the CRA's lien on the parking lot and the vacant parcel in the back. Mr. Rollason: Mr. Chairman, I think there are some things we need to add to this, because I've just been informed that this number is probably low, and there are some other figures that need to be included in here. This is the first -- Vice Chairman Winton: Which number is low? Mr. Rollason: The total amount of 129 should probably be something more like 150, 160. Board Member Sanchez: Move to defer. Board Member Gonzalez: Second. Vice Chairman Winton: Motion and second to defer. Further discussion. Being none, all in favor "aye." The Board Members (Collectively): Aye: Vice Chairman Winton: Like sign opposed. The motion carries. The following motion was introduced by Board Member Sanchez, who moved for its adoption: CRA/OMNI MOTION NO. 03-13 A MOTION TO DEFER REPORT FROM SPECIAL COUNSEL REGARDING THE COMPLETE HISTORY ON PARKING LOT 5 (P-5). (Here follows body of motion, omitted here and on file in the Office of the City Clerk.) 36 February 24, 2003 • 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 Joe Sanchez Board Member Tomas Regalado NAYS: None. ABSENT: None. Vice Chairman Winton: And I think what we really need to do is -- I tell you, the -- I can't figure out why we're doing this. So, when you come back with a proposal, I need to understand the rationale for us selling this site, given the fact that we've put all this money in it. I'm not sure I understand why we don't just hold it. So that's what I would like to understand when we get back to this point. And, Chairman Teele, welcome. Chairman Teele: Thank you. Vice Chairman Winton: And I'll give the -- Chairman Teele: I'm here primarily and solely to discuss the item that I read about in The Miami Herald. I did want to note that on the P-5 lot, asbestos was throughout the lot and the record does not reflect this asbestos treatment. The simple answer to the question that you've raised, Commissioner Winton, regarding P-5 is, if we can induce Jackson Soul Food to stay open for approximately eight additional hours -- as you know, they close at 1 o'clock. Vice Chairman Winton: Right. Chairman Teele: -- we could generate probably about 15 additional jobs. And the building cannot be made code compliant without this additional parking lot -- without this additional space. In other words, like all of the buildings in Overtown, none of them have any parking associated with them. And so, one of our strategies has been to provide parking, primarily, in the case of -- Mr. Yukon, the same thing -- primarily in the case of the businesses to provide parking space to meet the code. But in the particular case of this business, what we're really trying to do is to meet jobs, and under the law, under the building and zoning code, Jackson Soul Food cannot be upgraded and enhanced without additional land, because of the percentage of the building that is on the existing lot. Vice Chairman Winton: But we can't -- can we not just continue to own the land and they still do that expansion? Chairman Teele: Not according to the Planning Director and the Building Director. They're the ones -- 37 February 24, 2003 Vice Chairman Winton: Because, see -- the thought that I was wondering, you know, if you're going to -- if it costs that much money to create that opportunity, then the longer term strategy probably should be to just hold the land. And you may get your -- you may end up in a much better position 20 years from now, as opposed to today. And so, if they could -- you know, if you figure out a way to -- Chairman Teele: I don't know if you've seen the lot, but it's -- the lot alone can only be utilized by two entities. Vice Chairman Winton: I agree with that. And I have seen it. Chairman Teele: Mount Zion Church, which owns all of the land on three sides of it, and the Jackson Soul Food. Vice Chairman Winton: Oh, and Jackson Soul Food. Chairman Teele: The 3rd Avenue Business Corridor ordinance mandates that the CRA, the City, and the County must give preference to business activity, as opposed to not -for -profit church or other activities. And I would call your attention to the ordinance that, basically, is a guiding instruction that was adopted in 1998, that basically lays out the policy framework, from the 3rd Avenue Corridor from 8th Street to 141h Street. That the preference should be -- that the CRA and the City should use its powers to give way to business development and business expansion. That lot, alone, would just be -- and I guess what's not here is the picture. This lot was a derelict building visible -- it was three stories visible from I-95, that was an asbestos building, which meant nobody was going to do anything with it, that was a collection of homeless people. And I think if the City -- if the CRA and the City staff would give a picture, you'd see why it was done. But I think this is very, very -- Vice Chairman Winton: And by the way, I think that's an outstanding point. Can y'all bring us before and after pictures? I'm sure -- I know y'all have them somewhere. So, I think that's an important -- and it's an important part of the entire message to the public that is watching what we're dong, because this whole thing is not without some pretty significant justification here. And we have to make sure that we bring the whole story, not just the gross numbers, but the whole story to the table. Chairman Teele: Commissioner. Vice Chairman Winton: And you guys don't -- one more second. And particularly those colleagues of mine who have been in the development business, you know when buy a lot, even if it has a derelict building on it, that the appraised value is going to be -- unfortunately, somebody will attach a residual value to the shell, and so the appraised value is going to come in higher than should that shell -be gone. And so, that doesn't show here and reflect here, and that's an important part of our storyline. Yes, sir. I'm sorry. Chairman Teele: But, Mr. -- Commissioner Winton, if you take a look at any three or four lots that we've bought, you're going to see the same picture, because this is not a City agency. This 38 February 24, 2003 is a redevelopment agency. The derelict lots, the derelict buildings, the derelict structures that have been derelict in excess of five and ten, in this case over 20 years, will remain derelict unless the redevelopment entity goes in and buys it, demolishes the building. The day you demolish that building, you take a loss on paper of 80 percent of the value of the building -- of the lot. The lots in Overtown have a value, Johnny, of four to six -- at the time this occurred -- Vice Chairman Winton: Except, however, that if the City was doing its job, those derelict buildings would have been demolished a long time ago at the owner's -- Chairman Teele: Owner's. Vice Chairman Winton: -- expense. And that's -- Chairman Teele: At the owner's expense. Vice Chairman Winton: That's correct. And that's an argument that I'm going to make very strongly to the City of Miami. And then we don't get forced into -- because (INAUDIBLE) you're discussing -- Chairman Teele: Commissioner, I call your attention to 8th Street and 3Td Court, and the City passing a resolution -- an ordinance over four years ago. The City has been talking about it, the developer, and you have a huge derelict building, which is literally the opening -- the most important entrance into Overtown. Vice Chairman Winton: Right. Chairman Teele: When people come down that ramp -- Vice Chairman Winton: That's the first -- Chairman Teele: Southwest 8th Street -- Vice Chairman Winton: Yes. Chairman Teele: -- that's the image of Overtown that people see. That's what the Prime Minister saw -- I mean, the Foreign Minister to the Bahamas saw this weekend. That's what the Arch Bishop sees. That's what everybody -- and that defines in everybody's mind what Overtown is. Vice Chairman Winton: I agree. Chairman Teele: The City's done nothing and the City, basically, can't do that much. The CRA, on the other hand, has the obligation of being like a private developer for the purpose of removal of slum and blight. If you read Chapter 163, and that's the big problem, in that this is not a City agency. This is a state agency. It's a Chapter 163 agency. And the powers and the duties and obligations of a Chapter 163 agency are totally different from the hat that we wear as City 39 February 24, 2003 0 Commissioners. Our job is first and foremost, as a redevelopment authority, to remove slum and blight, and to commence the redevelopment. And if it were that simple, and the private sector could afford to do it, you wouldn't have Chapter 163 agencies. The fundamental role of the CRA is .contained on this paper right here. And any CRA in this state is gong to be involved in this. This is not about making money. We make our money, not on the sale of land, sir. We make our money on the redevelopment and the recasting of property values. And that's why, five years ago to this day, in February of 1998, the CRA collected how much money in January 30th of 1998? A hundred and forty-three thousand dollars ($143,000). The same CRA. Today, January 30th, as of this day, we're collecting how much money in property taxes? Annette Lewis (Chief Financial Officer, CRA): A total of two point three million between the (INAUDIBLE) Chairman Teele: Two point three million. It is mathematically impossible for any redevelopment agency in this- state to boast those kinds of numbers. It's impossible. It's just not -- it has happened, but it's mathematically impossible. You can't go from collecting the TIF (Tax Increment Fund) without changing the boundaries, without adding anything new, from a hundred and forty-eight thousand dollars ($148,000) to two point what, three? Ms. Lewis: I'm sorry. Two million, two fifty-seven, sir. Two point two million. Chairman Teele: Two point two million dollars ($2,200,000). I mean, in mathematical terms, that's times 20 or times 15. And everybody in the state is saying, "What the hell are you all doing? How could you do these numbers?" And what we're doing is removing slum and blight. The value of property is going up as we remove this stuff. And this has nothing to do with Omni. The item was deferred. Vice Chairman Winton: Chairman Teele, the gavel is yours. Chairman Teele: I came for the purpose of discussing the item -- was it discussed by Commissioner Sanchez? Vice Chairman Winton: No, we deferred all those items. Chairman Teele: I'd like to -- was there any other items to be taken up? Board Member Sanchez: Well, there are items left, but you're the Chairman. Vice Chairman Winton: There are still a number of regular agenda items, and several of the supplemental agenda items have yet to be hit. We just finished 12-A; and we're going to -- Chairman Teele: But I see some "S's" were done. Vice Chairman Winton: No. The two "S's" were deferred. S2 and S5 were deferred. So that leaves, 1, 2, 3, 4 and 6. 40 February 24, 2003 0 ,I.T....a:.. ; VTWWAOSOUTHEA,tORON, O', CNT9': "AIORIZEINUE° AS` g.... =. MONTH=TO; MONTH TENANT-.: WITH < NEW' PROVIDENCE, MASONIC , LODGE;,; INC:; AND" -IN FURTHERANCE'.OF :3RD AVENUE REDEVEI QPIVIENT_-PLAN,.,`:,` Chairman Teele: Is there a motion on S-1? Board Member Sanchez: So moved. Chairman Teele: Moved. Is there a second? Board Member Regalado: Second. Chairman Teele: Objection. All in favor say "aye." The Board Members (Collectively): Aye. Chairman Teele: All opposed. The following resolution was introduced by Board Member Sanchez, who moved for its adoption: CRA/SEOPW RESOLUTION NO. 03-14 A RESOLUTION OF THE BOARD OF THE SOUTHEAST OVERTOWN COMMUNITY REDEVELOPMENT AGENCY (THE "SEOPW CRA") AUTHORIZING THE SOUTHEAST OVERTOWN/PARK WEST CRA TO CONTINUE, UNTIL FURTHER ACTION FROM THE BOARD, AS A MONTH TO MONTH TENANT UNDER THE PREVIOUSLY APPROVED LEASE AGREEMENT (SEOPW/CRA R-02-6) WITH NEW PROVIDENCE MASONIC LODGE, INC., ON THE SAME TERMS (1000 SQUARE FEET @ $500.00 PER MONTH) AND IN FURTHERANCE OF THE 3RD AVENUE REDEVELOPMENT PLAN; AND FURTHER PROVIDING THAT THIS AUTHORIZATION SHALL BE RETROACTIVE TO DECEMBER 1, 2002. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) 41 February 24, 2003 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 Angel Gonzalez Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None ABSENT: None. 42 February 24, 2003 \J E ,10. AITTHORIZE EXECUTNE~ DIRECTOR TO, PROVIDE GRANT;,, TOr CI;UB `SPACE;:-F,OR`' .OF;:IMPACT FEES` LEVIED BY' 1VIIAMI'DADE WATER':AND SEWER AUTHORITY WASA a Chairman Teele: Item on S-3. Is there a motion? Board Member Sanchez: So moved. Chairman Teele: Second. Is there a second? Vice Chairman Winton: Second. Chairman Teele: Is there objection? All in favor say "aye." The Board Members (Collectively): Aye. The following resolution was introduced by Board Member Sanchez, who moved for its adoption: CRA/OMNI RESOLUTION NO. 03-14 A RESOLUTION OF THE BOARD OF THE OMNI COMMUNITY REDEVELOPMENT AGENCY (OMNI CRA) AUTHORIZING THE EXECUTIVE DIRECTOR TO PROVIDE A GRANT TO CLUB SPACE FOR 25% OF THE IMPACT FEES LEVIED BY THE MIAMI DADE WATER AND SEWER AUTHORITY (WASA); FURTHER AUTHORIZING THE ISSUANCE OF AN 18 MONTH LOAN AT THE LIBOR RATE IN AN AMOUNT NOT TO EXCEED 75% OF THE REMAINING WASA LEVY WHERE SAID LOAN WILL INCLUDE A PROVISION THAT WOULD ALLOW THE CRA TO MAKE A DEMAND ON SAME WITH THIRTY (30) DAYS NOTICE TO CLUB SPACE; FURTHER PROVIDING THAT THE TOTAL FUNDING MUST NOT EXCEED $200,000 FOR BOTH THE GRANT AND LOAN PACKAGE TOGETHER. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) 43 February 24, 2003 0 • 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 Angel Gonzdlez Board Member Tomas Regalado Board Member Joe Sanchez NAYS: None ABSENT: None. 44 February 24, 2003 0 0 . BOARD; INTANI7ElVI° WITH `BUSINESSES;=HOTLSI l:r;REQUESOMADVISORY OOMNUMAOCNOTERIEEDRARTIES:yTO"ADAPT"; 'CATKH MARGARETxPACE�PARK:FOR6PURPOSE-OF PROVIDING SUPPLEMENTAL SECIJRITI': AND,AESTHETIC MAINTENANCE:.., Chairman Teele: Item on S -- Board Member Sanchez: Four. Chairman Teele: Four was deferred. Board Member Sanchez: No, four was -- Vice Chairman Winton: No, five was deferred. Chairman Teele: This says four. OK. Item on S-4. This is a request to get -- to put it out here so that we can package something for businesses to adopt Margaret Pace Park. Vice Chairman Winton: Right. So moved. Board Member Gonzalez: Second. Chairman Teele: Is there objection? Discussion. Mr. Chairman -- Mr. Vice Chairman, Margaret Pace Park has a potential, in my judgment, of being the show piece of the City of Miami, particularly for conventions and conferences, and activities. Because it's small enough that people can feel intimate. It's close enough to three or four major hotels, the Renaissance, the Double Tree, the Marriott, that I think those entities could really get involved. And I really thing what we need to do is get some PR (Public Relations) kind of specialists that can take pictures that can be included in the various brochures for the Convention and Visitor's Bureau, et cetera. But I really do think that we have a potential of getting a good neighbor policy or something. Vice Chairman Winton: Great. Board Member Sanchez: And it's a fabulous idea. If it works, I wish that we could implement it in other parks throughout the City. Chairman Teele: Further discussion. All in favor say "aye." The Board Members (Collectively): Aye. Chairman Teele: All opposed. 45 February 24, 2003 The following resolution was introduced by Vice Chairman Winton, who moved for its adoption: CRA/OMNI RESOLUTION NO. 03-15 A RESOLUTION OF THE BOARD OF THE OMNI COMMUNITY REDEVELOPMENT AGENCY (OMNI CRA) REQUESTING THE OMNI ADVISORY BOARD, IN TANDEM WITH THE BUSINESSES, HOTELS, CONDOMINIUM ASSOCIATIONS AND OTHER INTERESTED PARTIES TO "ADOPT" THE MARGARET PACE PARK FOR THE PURPOSE OF PROVIDING SUPPLEMENTAL SECURITY AND AESTHETIC MAINTENANCE SUBJECT TO APPROVAL OF THE CITY OF MIAMI; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO WORK WITH BOTH, THE CHAIRPERSON OF THE OMNI ADVISORY BOARD AND THE DIRECTOR OF THE CITY OF MIAMI PARKS AND RECREATION DEPARTMENT, TO DETERMINE WHAT ITEMS ARE APPROPRIATE FOR SUPPORT FROM THE VARIOUS ENTITIES AND DEVELOP AN IMPLEMENTATION PLAN ACCEPTABLE TO THE CITY OF MIAMI. (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. 46 February 24, 2003 0 9 :12..-BRIEF COMMENTS REGARDING PARKING: LOT 7 AGREEMENT Chairman Teele: S-5 was deferred, and let's just defer S-6. Let's go -- was there any other items on the regular agenda that was deferred or not acted upon? Vice Chairman Winton: Yes, 14 and 15, we did not act on, and 1213; is that correct? Frank Rollason (Executive Director, CRA): Yes. Vice Chairman Winton: Twelve "B" we did not act on, right? Chairman Teele: Item 12B, is there a motion to approve? William R. Bloom (Special Counsel, CRA): At this point, Commissioners, we've circulated a revised lease addressing the majority of the comments from the Black Archives. We haven't gotten any feedback from the Black Archives. The CRA (Community Redevelopment Agency) staff was checking with the City of Miami's Risk Management Department to make sure everyone is comfortable with the insurance provisions that were contained in the lease. I'm not sure if that has been completed yet. And the environmental assessment is still underway, which really would have to be finalized before the lease would be effective. So I think it's really more of a time to report what the status is, which I've done, and not take any action as far as approving the lease, until the environmental work is done, and until we're here with the Black Archives with an executed lease to present to you. Chairman Teele: All right. 47 February 24, 2003 0 • AUTH(JRIZE `;EXECUTIVE DIRECTOR t TO EXPEND ` EUNDS' FROM::"1VIARGARET -- . , PACE PARK =PROJECT ACCOUNT, $5,00.0.00; „TQ PERFUR1Vh"REPAIRS.TO=: SIDEWAIK' . : a , , -. ADJACENT T,. SOUTH.;ENTRANCE- OF; MARGARET'PACE PARK,. LOCATED -;AT 1745 NORTH'=B SHORE'DRIVE". Chairman Teele: Item 15 is an item to fix the sidewalk around Margaret Pace Park for five thousand -- not to exceed five thousand. Thank you, Mr. Rollason, for bringing that forward. Board Member Gonzalez: Move Item 15. Board Member Sanchez: Second. Chairman Teele: Is there objection? All in favor say "aye." The Board Members (Collectively): Aye. Chairman Teele: All opposed. The following resolution was introduced by Board Member Gonzalez, who moved for its adoption: CRA/OMNI RESOLUTION NO. 03-16 A RESOLUTION OF THE BOARD OF THE OMNI COMMUNITY REDEVELOPMENT AGENCY (the "OMNI CRA") AUTHORIZING THE EXECUTIVE TO EXPEND FUNDS FROM THE APPROPRIATE MARGARET PACE PARK PROJECT ACCOUNT IN AN AMOUNT NOT TO EXCEED $5,000.00 TO PERFORM REPAIRS TO THE SIDEWALK ADJACENT TO THE SOUTH ENTRANCE OF MARGARET PACE PARK, LOCATED AT 1745 NORTH BAYSHORE DRIVE, MIAMI, FLORIDA; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO ENTER INTO AN AGREEMENT WITH AN APPROVED CONTRACTOR FROM THE CITY OF MIAMI VENDOR LIST TO PERFORM THE NECESSARY REPAIRS. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) 48 February 24, 2003 0 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. 49 February 24, 2003 14:y-:REQUEST'1VIIAMI CITY COMMISSION,, ASSIGN,mCITY'S:INTERNAL AiJIDITOR;aDR.:. af;a VTCTOR ` IGWE ,,"TO. ^CONDUCT-- FULL ., AND-`.3- COIVIPLETE,.WRITTEN`v AITDIT-,­ OF SOUTHEASY.,,:OVERTO.WN/PARK-' WEST, AND OMNI: REDEVEI;OPMENT` DISTRICT ,,COMMUNITY REDEVELOPMENT AGENCIES;'' D''IIZECT':THAT'CRA REIMBURSE• CITY. °L7TII IZIN.G TAX";INCREMENT FUNDS (T]F) FOR COST'OF SAID AUDIT: AMI1` -CITY=: ".COMMISSION,` ADOPT ATTACHED " RES(OLUTION`,, .CREATING ".'o ;r OVERSIGHT ' :.,COMMITTEE 't; ,.FOR -;4;SOU THEAS:T; g.,s... . OVERT OWN/PARK;`WEST AND;; OMNI,"IREDEVELOPMENT DISTRICYr>COMMUNITY:; aREDEVVELOPIVIENT AGENCIES. rv.m P .1. RECOMMEND ,, < TIIATm; 1VIIAML x CITY, : <,COlVIlVIISSIOlV" ADOPT: ATT"ACHED` ORDINANCE"PROVIDING, FOR`, PO_,_ TMENT,OFrvBOARD;`OF COMIVIISSTONERS SOUTHEAST;-,:OVERTOWN/PARK -WEST '`AND ``OMNI RI EDEVEI OPMENT D.ISTRICV COMMUNITYREDEVELOPMENT AGENCIES.' T Chairman Teele: Let's go to Commissioner Sanchez' item. Board Member Sanchez: Thank you, Mr. Chairman. There was an article that came out February the 9`h in The Herald that raised several concerns about the CRA (Community Redevelopment Agency). Questions that are perfectly reasonable. It put the credibility of the CRA in question with several issues of great concern. One, we've all heard about the building -- the three parking lots in Overtown, in how it's ballooned from four hundred and twenty thousand dollars ($420,000) to more than nine hundred thousand dollars ($900,000). As a result of a change of order, that was granted and signed. The two months after winning the contract, the company asked that the CRA amend it to a price of electrical work and fencing and irrigation. Of course, there was -- the process itself, if we would have been informed, which I felt that this board was not truly informed of all the information, I think that this board would have, instead of throwing out TMC undercutting bid, they left out a significant cost, we would have gone and go ahead and tossed it out for rebidding. But my point here is very simple. This board -- and this has -- basically, in many ways, have not been given the proper information. And, at times, not given you voluntary information. But at times, also, it has been withheld information that's very important on a lot of these items for us to make a reasonable decision on it. One of the concerns that was brought to my attention, that I did not know, was that an executive in the company, that won the parking lots contract, was a long-time business partner of one of the men who subsequently became the CRA Executive Director. I mean, that is clearly, to my knowledge, I think something that should have been told, or we should have been informed of that because -- I don't know. It just sent out a red flag and it should have sent all kinds of alarms. And once again, the question is, why weren't we informed? Another concern that I have, since 1997, the CRA has had seven interim or permanent executive directors, making it very difficult to follow through on projects. I stated very clearly that this revolving door of leadership has created a climate of zero accountability. Every time that a project is delayed or overpriced in budget, you hear the same thing: "It wasn't me" or "I wasn't here," or "it was he or she, who's no longer around," or "I inherited the problem." Well, this pattern of instability is unacceptable and must be stopped. 'Another concern of information that we were not provided, and we found ourselves dealing with it, on February the 101h, we learned the Community Redevelopment Agency, which received three hundred and seventy-nine thousand dollars ($379,000) in funding, came with restrictions to the CRA, that the CRA cannot meet. Now, we have to supplant the CD 50 February 24, 2003 (Community Development) money with general fund money to avoid having to return more than one million dollars ($1,000,000) received over the past three fiscal years. Once again, we were not provided the proper information. The board was not informed until we had this crisis. Several members, including myself, on many occasions, have asked very clearly, "Does this comply with HUD (Department of Housing and Urban Development) regulations? And we could pull all the records you want. And once again, the answer from the Executive Director was, "Yes, it does." Well, we find ourselves in a situation today that's embarrassing to the CRA, and all the members here. Once again, let me just say that this board is only as good as the information that it is provided to by the Executive Director, the legal staff, and its staff. Let me identify several major interest issues requiring immediate intervention. Areas identified by the internal audit that have not been resolved, and continue to be a problem, the absence of qualified staff at the CRA. There is no way of knowing if the CRA staff members qualified for his position -- he or she qualified for her position or his position. There is no measure of competence at the time of hiring, or performance at the time of evaluation. There is no form of procurement process, which leaves the door wide open for overspending, favoritism, and other abuses. Lack of finance accounting continues to be a big problem, and until we address them, and address them strongly, we're going to continue to end up in embarrassing situations. Also, the status of projects. We have no accountability whatsoever when it comes to funding and projects that are in place. I guarantee that, at the end of this year, we'll end up with a deficit. And once again, we'll end up violating the Anti -deficiency Act that was passed the City Commission. These are all key ingredients to failure, chaos, or as one executive director described it, a madhouse. These actions (INAUDIBLE) the CRA's image of being out of control, and in desperate need of reform. I have the utmost respect for Frank Rollason. I had the pleasure of working with him on the City. So did every Commissioner here. But when you make statements in the paper that clearly states -- stated he was stunned by what he found when he came on board at the CRA. Records are in disarray. Finances are a mystery. The agency may be functioning on a budget deficit. I would say that this is disorganized, disjointed, and lacking proper management and supervision. Well, I commend him for that because he's been the only executive director that has stood in front -- or made the statement of the things that are happening at the CRA. We cannot continue to close our eyes and pretend that the problem is going to go away. We realize that. At least, I do, as a Commissioner and a representative of this board. Considering that the present model has resulted in dozens of accusations, negative images in the press, and an Ethic Commission investigation, I feel the time has come for a drastic change. I am proposing a resolution as -- the City Attorney to prepare two ordinances for the City Commission. One is a resolution to create a CRA Oversight Committee, with two members appointed by the Mayor, one appointed by each Commissioner; to create a seven member body that will review the CRA's goals, finances, pending projects, and future direction. The Chairman of the CRA clearly stated in the July 291h meeting that he would entertain those thoughts, and this is one of the thoughts that I think is prudent to the future of the CRA. And I will -- those resolutions will be passed out. Did we pass them out already? Yeah, they were passed out, and we'll address them when I'm done with this. Once again, the CRA Oversight Committee -- once the CRA Oversight Committee has completed their task and reformed the CRA, a second resolution will be presented, and that resolution will be to disband the current CRA board and start anew with a board that is representative of the Overtown/Park West and Omni community. I also would like to get an opinion from both City Attorney -- the City Attorney and the CRA attorney as to a conflict of interest on doubling up as Commissioners and members of the CRA. 51 February 24, 2003 I will also be putting a motion forward directing the Executive Director to hire a firm to perform and internal audit of the CRA as quickly as possible. I don't have a problem with having the City auditor perform. However, the scope would include auditing revenues, expenditures, program, projects, project performance, as well as contractors, grants, and HUD compliance. Also, I would request, in the first meeting of May of the City Commission, a discussion item -- Chairman Teele: May or March? Board Member Sanchez: (INAUDIBLE) April. Around April, because there's going to be an action on this one taken, but it's something that I want -- I think it's very important for us to discuss in the Commission. And that would be addressing the issue of rotating chairman on all City boards; to include all City boards the chairman -- that Commissioners are chairman to rotate them every certain amount of years. Ladies and gentlemen, we must regain the public trust. This is not an attack on anybody's integrity. It's just that you get frustrated after so many years of being misinformed. And then, at the end of the day, you're the one getting a call from a reporter inquiring as to all these things that have happened, that really are an embarrassment to the CRA, which I believe has done a decent job. Commissioner Teele stated, you know, they've created a lot of revenues for the CRA, but we have to address those issues. And that's why it's important that we, today, discuss these things. Discuss them, open them up for healthy debate, and address them so we could continue the process of the CRA, but if we don't address these issues, that gray cloud will continue to be over the CRA. So, at this time, I'm going to open it up for the board to address the issues, and then I would like to present the two -- well, really it's two resolutions and a motion. Chairman Teele: What are the two resolutions you want to present? Board Member Sanchez: Well, you have them there, Commissioner. The first resolution is the creation of an Oversight Committee, with two members appointed by the Mayor and one appointed by each Commissioner, a total of seven that will review the CRA's goals, finances, pending projects, and future direction. That issue -- of course, we did pass one not long ago where you had the leadership, Commission Teele, where it directed the Mayor and the City Manager to put together a team to do the same thing. However, that has not been done. I just think for the integrity and the accountability and the transparency and the ethics of this board, that we work on creating an Oversight Board to address those issues for a period of one year. Chairman Teele: Mr. -- Commissioner Sanchez, why -- I think one of the better ways to have a thoughtful discussion is if you would make that motion. Now we can discuss that. Board Member Sanchez: So moved, Mr. Chairman. Chairman Teele: And -- Board Member Sanchez: Of course, I need a second for discussion. Board Member Gonzalez: Second for discussion. 52 February 24, 2003 0 0 Chairman Teele: And before we start, as you have correctly said, I have called for an Oversight Board. There was an ordinance in place that called for an Oversight Board of the CRA to review the policies, the directions, and the goals. The only thing that I would ask you do in this ordinance -- this resolution is restrict -- and this is going to sound like a conflict of interest to some, but it's inherent in the role of the Redevelopment Authority, like a DDA (Downtown Development Authority) Authority, that people who are stakeholders be involved in the process. OK. So, normally, Redevelopment Authority and Downtown Development Authority board members are property owners. And, again, what I don't want to see is some bastardizing of a very established Chapter 163 process in this community. And if we could restrict -- Board Member Sanchez: Total agreement with you. Chairman Teele: -- that to property owners -- Board Member Sanchez: Well, professionals pertaining to the field of redevelopment. Chairman Teele: Well -- but I don't -- I think the broader you make it -- you can make your resolution the way you want to, but I think it's really important that stakeholders -- because remember, the business of the CRA is the taxes that property owners pay. And with all due respect to businesses, businesses sometimes pay those taxes and sometimes they don't. But property owners, in all cases, are responsible for the taxes. And I strongly support the motion, and I strongly support the appointment process. Is this going to be one board to look at both the Southeast Overtown/Park West and Omni? Or would it be two separate boards? Board Member Sanchez: No, one board to overlook everything. Chairman Teele: And I certainly have no problem with that, because the staffing of two boards could get very time consuming and expensive, Commissioner Winton. But I do think that the redevelopment -- the law relating to redevelopment authorities is very clear. You can't spend money in one area in another, and you've got to basically use general funds to support these initiatives. Chairman Teele: Commissioner Winton. Vice Chairman Winton: I'm sorry. Mr. City Attorney, does this require two readings? Alejandro Vilarello (City Attorney): Well, the resolution is a resolution of the CRA Board -- Chairman Teele: No, no. Mr. Vilarello: It refers this to the City Commission. In this resolution, this Oversight Board is being created by the resolution, which is a one-year committee, and that's just by resolution. Vice Chairman Winton: So, it only takes one reading, which is this one? Mr. Vilarello: Yes. 53 February 24, 2003 0 CJ Vice Chairman Winton: The problem I have, Commissioner Sanchez -- Mr. Vilarello: Well, no. It's one reading of the City Commission. Chairman Teele: But this says -- Vice Chairman Winton: Well -- Chairman Teele: This motion said the CRA would do this. Mr. Vilarello: It's a referral to the City Commission to create an Oversight -- Board Member Sanchez: They pass the resolution here and it goes over to the City. Vice Chairman Winton: The problem I have in passing this tonight is that I -- it's like the point you've made over and over again, which are totally true. That is, I haven't had a chance to read this, and the devil's always in the details. And this is a long, long resolution, and I'm just nervous that -- you know, I don't know what's in here. I haven't had time to think about all the moving parts of this, and I would hate for us to take an action that is -- that sets in process something or parts of something that simply don't work. And so, that's my only concern about this. Board Member Sanchez: Commissioner Winton, I respect that, and I apologize for not providing this board with adequate time to review this resolution. I'm open for any suggestions. If you want to defer it to the next CRA meeting -- Chairman Teele: I also think we should have a CRA workshop or Commission meeting on this issue. I think that would be extremely helpful. Not today, at another meeting. Board Member Regalado: Mr. Chairman, you ought to know that we have a special CRA meeting for this Thursday at three p.m. Chairman Teele: For what? Board Member Regalado: To discuss the payment to the County on the performing arts. The board decided and the Vice Chairman decided three o'clock -- three p.m. So, if you all want to include this -- Board Member Sanchez: No, no, no. Commissioner Winton, this resolution is basically a very simple resolution. If you want the City Attorney to go ahead and read it -- I mean, it's just -- Vice Chairman Winton: Well, I've been reading it, and I'm not sure that it's -- 54 February 24, 2003 Mr. Vilarello: Just in form, it is a CRA -- a joint resolution of the Omni and the Southeast Overtown/Park West recommending that the City Commission establish the Oversight Committee. Vice Chairman Winton: But as an example, it says in here that the term of this group is going to be one year. Mr. Vilarello: Yes, sir. Vice Chairman Winton: In one section. I saw somewhere else where it talks about, you know, report annually on something, you know -- Board Member Sanchez: No, no. You have two -- there's two resolutions. Vice Chairman Winton: Well, I'm -- this is all attached in one. Page four, page 5. Board Member Gonzalez: This is the one up here that he's talking about. Vice Chairman Winton: So is this the right one? Board Member Sanchez: Yes. Vice Chairman Winton: This one with all the pages is wrong? Board Member Gonzalez: No, that one -- there's three resolutions, isn't it? Vice Chairman Winton: Yeah, I know. Commissioner Gonzalez: There's three of them? Vice Chairman Winton: Well, somebody needs to help me understand what I need -- Board Member Sanchez: Well, why don't we take one issue at a time, Commissioner Teele? I think it's important that we address this. I mean, I'm all for if you want to defer to the next Commission. It's a very simple resolution. You're going to have an opportunity to wear another hat, the Commission, and review it. It's basically an Oversight that has been done in the City many times in other situations. Vice Chairman Winton: Joe, I'm not opposed to it. Understand. I'm not opposed to this concept at all. I just want to make sure that what we're passing works, and it doesn't have conflicts in it, and it doesn't have misstatements in it. And that we all have enough time to think about what the mission of this Oversight Board is and we get that information in this resolution. And I couldn't figure it out from the quick reading, and I'm a -- you know, I'm a slow reader, so. Board Member Gonzalez: What happened is that they gave me two of those resolutions and they didn't give you one. 55 February 24, 2003 ® 0 Vice Chairman Winton: But see, this one doesn't explain anything. So this one that I have has a lot of the meat in it that we really need to think about. Board Member Sanchez: Right. Vice Chairman Winton: So just don't get me -- I'm in favor. Board Member Sanchez: Fine. Let's address one that we could all agree on. Let' s address — I'm.going to make a motion directing the Executive Director to hire a firm to perform an internal audit of the CRA. I think we both -- we all agree. It could be the City's audit, but I think that's a key issue here that I think that today we could agree on that. Vice Chairman Winton: And I would second that motion to invite the City's auditor, Victor Igwe into -- Board Member Sanchez: Well, I'm going to have withdraw the first motion, because I can't -- you know -- Chairman Teele: But you -- OK. Vice Chairman Winton: OK. I'm sorry. Chairman Teele: Are you saying the City -- he's saying an outside auditor. Board Member Regalado: Mr. Chairman. Chairman Teele: You're saying City auditor. Board Member Regalado: Mr. Chairman. Vice Chairman Winton: Yeah, he said -- Board Member Sanchez: I'm open to both. But I'll tell you what. I make a motion directing the City auditor to conduct an audit of the CRA -- directing the Executive Director. Mr. Vilarello: OK. Again, just to make sure that we're doing the correct direction, the CRA would be requesting -- Board Member Gonzalez: The City. Mr. Vilarello: -- the City to assign its internal auditor to conduct that internal auditor? Board Member Sanchez: That's correct. Board Member Regalado: Mr. Chairman. 56 February 24, 2003 Board Member Gonzalez: Excuse me. Chairman Teele: Commissioner Regalado. Commissioner Gonzalez. Board Member Regalado: Me? Chairman Teele: Yes, sir. Board Member Regalado: I think that this whole controversy is about money. And I think that the first step will be to bring Mr. Igwe, with his staff, to the CRA. The reason is that Mr. Igwe has been very successful in going into City departments, in the past three or four years, and accounting up to the last penny, and recommending to the City Commission, and the Mayor, and the Manager what his thoughts are in terms of contracts. As of now -- and I read everything -- all the reports of Mr. Igwe have been very, very detailed. And, you know, it shows one thing. It shows only one thing, that the contracts in the past were done wrong. And so, I think that the first step to credibility is to bring the City auditor. And I agree totally with Commissioner Sanchez and Commissioner Winton -- Board Member Winton and Sanchez. And I'm sure that the board was hoping that this would someday be discussed and approved. I will tell you something. I will tell you something about the other issues. And the other issues, I'm a little concerned because I'm sitting here -- I'm the only one that lived through the nightmare of the Oversight Board when it first was installed by then Governor Chiles. I was the only member of the City Commission that is still here. And I will tell you that that Oversight Board had a total disconnect of -- with the people and the residents of the City of Miami, and I'm afraid that this disconnect will apply to this Oversight Board. I think that we have to face the music. I think that we need to confront the truth that we need to bring the City auditor, with priority. You know, he has to leave everything and bring into this agency, because like Commissioner Sanchez said, the agency's name is under a cloud and we need transparency. But since this is all about money, we need to bring first the auditor. I would tell you, I will not relinquish my responsibility because then, you know, one year from now, we'll say, "Hey, you know, zoning matters are something that are really controversial and boring. Let's have the Zoning Board do just the side on the zoning matters." So I don't have any problem with facing these questions and looking for answers, but I dotbelieve that we should strongly request to the City Commission to send Mr. Igwe as soon as possible, with the a full staff, the full resources that he needs to do not a lengthy several month report study, but a quick one. Because, you know, the press needs to know. The people need to know. We need to know because we're responsible. We have probably made some mistakes because we did not have the information. So, Mr. Chairman, I, too, support to bring the City auditor, the City auditor, because I think it would give credibility to this drastic action. It is a drastic action. And so I will support Commissioner Sanchez motion. Chairman Teele: Commissioner Gonzalez. Commissioner Sanchez. Board Member Gonzalez: I almost forgot. OK. First of all, I don't think this Oversight Committee that the -- that Commissioner Sanchez is talking about is going to be the same type of advisory committee that we had when they were overseeing the City of Miami. First of all, because there were people on that committee that didn't relate to the City of Miami, and they 57 February 24, 2003 didn't know the needs, and the problems, and the things that were going on. Some of them were not even from the City of Miami. One thing that I agree with, he said if we're going to have an Oversight Committee -- I agree with Commissioner Teele -- there should be people that have stake in the community. Because one thing that really concerns me, as a board member of the CRA, dictate to people in certain neighborhoods or certain areas what to do and how to lead, or what to build or not to build, or what is a profit to them, what is not a profit to them. Even though I don't believe that this Oversight Committee will be the same Oversight Committee that we had made by the Governor, I have to agree that the -- thanks to the Oversight Committee, the City got on the right track. And, of course, the work of the City Commission and the Mayor, and everybody pitched in on the effort to get the City on the right track. As a conflict of interest, I'm also concerned with, you know, having the press call me and ask me to make comments on things about the CRA. And I -- 95 percent of the time or 98 percent of the time, you know, I decide not to make any comments because, first of all, I don't want to be used to direct attacks to any of my colleagues or any organization that I represent. If I have a certain feeling in reference to the organization or what is going on and the way that it's being directed or operated, then, you know, this is the right forum to discuss it and to put the things on top of the table, as Commissioner Sanchez has just done. I refer this (INAUDIBLE) proposition that has been presented here today. I proposed it about six or seven months ago, when we were involved in the same type of discussion. The problems that we -- the doubts that were in reference to the things that were happening inside the CRA, the different articles in the papers, and so on and so on and so on. I also expressed my concern at that meeting that I want to make sure that I didn't have any conflict of interest, because remember I was forced to resign my job. The job that I had, which I wasn't doing anything improperly -- all I was doing was breaking my back 10 and 12 hours a day to support my family. OK. And I was forced to resign my job because of supposed conflict of interest, and I did what I thought was the right thing to do. I didn't want any controversy. I didn't want to put a new shadow on the City Commission and my colleagues or the Mayor of the City of Miami. So I said, fine, I'll resign my job. And if I have to sell lemons or oranges, I will do that. But I won't do anything that is perceived as immoral or unethical. So I did that at the time. Here sometimes I still have in back of my mind the concern that there is -- if we're doing the right thing. I mean, you know, what I do here -- today we're taking action here as CRA board members, and on the 215' or on the 27th, we're going to be taking actions on the CRA as City Commissioners. So, you know, I don't know. I don't know. I may decide to consult an expert or a senior attorney or whatever, you know, and see if the City can pay for the advice. You know, we'll spend money on attorneys right and left for a lot of things. Well, I should have the right to consult an attorney, you know, and have the City pay for it. But I agree that some measurement has to be taken. I mean, something has to be done. Something has to be done. Most of us, sometimes we don't even have time to be involved with this. And Commissioner Teele has taken this upon himself. He's striving and pushing, and I understand his situation. He's trying to bring up a community that has been forgiven and abandoned for many, many, many years. Chairman Teele: It's about money. Board Member Gonzalez: Before I was a Commissioner, I was part of different boards in the Afro-American community, and I know because I went to that community and I participated 58 February 24, 2003 (INAUDIBLE) to try to help that community. So I know what he's going through and what he's trying to do. So if he needs -- how can we help him to be able to achieve his goals? Chairman Teele: On that point, if I may. Unidentified Speaker: Mr. Chair. Mr. Chair. Chairman Teele: No. This is a board discussion, sir. This is a board discussion. Unidentified Speaker: No problem, sir. Chairman Teele: All right. On that point, let me say this very clearly for the record. First and foremost, the CRA is a unique creature set up by state law. It is not something that operates in accordance with, nor should it, City rules and City procedures. It operates totally beyond a City. A CRA powers are far greater than a municipal power by law. Its mission and its role are to engage in things that cities don't engage in. The P-5 discussion is a classic example to me, Johnny. And I'm saying this because you've raised it. And if there is one person, with all due respect to the four colleagues that I have up here, who is colorblind and who does the right thing -- in fact, I'll say, publicly, the first time I met you, I met you in that Black restaurant having breakfast with the chamber. But this has gone beyond the issues that you read about in The Herald. There are some very powerful forces who want to maintain Overtown the way it's always been, and that is broke, poor, without jobs, without structure, without development. I don't need -- I, as the City Commissioner that represents Overtown, subject to a recall, I don't need the CRA to be the leverage point for me, as the Commissioner. In fact, the CRA is a yoke around my neck, both in times and in advocacy. I, as Chairman of the CRA, would never say, never say, the fact that every white businessman in this town, from Solomon Yukon, who's here, to Nathan Rock, who's a multi -millionaire, to the NAP (Network Area Point) owners, Manny Medina, to virtually everybody in the Omni, all of the white businesspeople get money from the CRA. Today we just loaned money for a very legitimate purpose, and I voted for it. And I voted for every one of them. How much money do we give for the downtown historic property? A million dollars ($1,000,000) to a millionaire? The fundamental point is this, Johnny. When black people start getting up into the atmosphere as businesses to receive the same kind of treatment for business development that whites, the manure hits the fan, and. that's what's going on right now. We go to the City Manager and the CRA Director and say, "Give me the list of black businesses that received grants and give me the list of white -owned businesses that have received grants." And I'll tell you right now. It ain't going to be one -tenth or one -twentieth, OK? And this is what's happening right now. There are some very powerful forces who don't want to see Overtown redeveloped. They see the grant programs: They see the redevelopment. They see the P-5. By you saying, "Why do P-5", you fall right into -- in my opinion, you fall right into the trap. P-5 is a totally undevelopable parcel to anyone, except Mount Zion. And you know who's going to wind up getting P-5? It's the power that be for the last 30 years that run this place —Mount Zion Church. You know why? Because a church can't create no jobs. You can pray. You can find yourself. You can find a moral pilot. The churches are important, particularly in the inner city. But the CRA's task of developing a plan to bring in franchises that are owned by African -Americans, to bring in businesses and expand businesses -- and I've talked about just expanding -- is running up against some brick walls. And I hear it all the time. I hear 59 February 24, 2003 it from both sides of the street. And all that I'm saying is, we, as a CRA board, and as a City Commission -- we just voted to give a million dollars ($1,000,000) to the guy -- what's the millionaire's name that owns Related Housing? Unidentified Speaker: Jorge Perez. Board Member Gonzalez: Jorge Perez. Chairman Teele: Jorge Perez. I support it. Board Member Gonzalez: We have four million -- Chairman Teele: I strongly support it, not backing up. But you're not going to change Overtown if you start nickel diming a hundred and twenty-eight thousand dollar ($128,000) lot. And then The Herald writes the story as if the money's been stolen or hijacked or it went up in the air. I mean, you know, the numbers are the numbers. You buy a piece of land, you destroy the building, you've just destroyed 80 percent of the value. It's just that simple. When you buy a lot with a building, you destroy the building. You've just destroyed 80 percent of the value of the lot. It's just that simple. It's no cyber math. You remove the asbestos, it's going to cost you an extra 12 or fifteen thousand dollars ($12,000). That's where the demolition cost is all up, because there was an asbestos removal. Most of the buildings -- the last building that we just demolished on Ilt" Street, we spent 15, twenty thousand dollars ($20,000) to remove the asbestos. That's the lot right next to Mr. Yukon's building, that one day I hope will be a parking lot. So I have no -- I'm responding to Commissioner Gonzalez, because I want to be very clear. I believe that the request for the auditor is outstanding. I particularly believe it's outstanding since The Herald is nice to impute 40 -- somebody said -- I didn't read the article. I swear to God, I didn't read it. But somebody said the Herald, article said CRA has spent forty-three million dollars ($43,000,000). Was that in the article? Did anybody read it? Unidentified Speaker: It wasn't in it when I read. Chairman Teele: That the CRA has spent forty-three million dollars ($43,000,000) or so. Unidentified Speaker: Mr. Chairman, it wasn't there. I have a copy of the article here. Chairman Teele: Could I see it? Unidentified Speaker: Yes, sir. Chairman Teele: So the point is this, is that I think an audit of the CRA, from the beginning to where we are right now, is in order. I'm going to tell you, just so that it's real clear on the board, most of the money went to slumlords. Most of the money that the CRA has spent in its 18 years of existence went to slumlords, and that's where the vast majority of dollars have gone. So I strongly support bringing in the auditor, as long as we direct the audit in written form, so that it's broad enough that we don't -- you know, we don't just channel it into one area. We look at A to Z. I think the CRA resolution should be amended for the CRA to reimburse the City, from TIF 60 February 24, 2003 9 0 (Tax Increment Fund) funds, for whatever the cost of the audit is, because I don't think this should be about how quickly it can be done or who cheaply it can be done. I think it should be a full audit by the -- and clean this thing up once and for all. And I strongly support it. Board Member Sanchez: Mr. Chairman, if I may. You know, where I come from, you speak the truth and you fear no one. And let me assure you that this has nothing to do with, you know, racism. It's about an agency that is borderline dysfunctional. It's an agency that requires assistance from the outside so it could be reared back into guidance and going down the right, proper tracks of accountability, productivity, clemency. In other words, people need to realize that they need to start winning the trust of this board. I've said it very clear. I will stick with my four issues that are here, you know. If the board here wants to vote it down or if the Commission wants to vote it down -- Chairman Teele: We're going to support it a hundred percent. Board Member Sanchez: Well, but I think that the issues cannot be, you know, smoke screened and, you know, find ways to derail it. I think that the audit itself is a step in the right direction. I think that the Oversight Board of professional people that deal with development, lending institutions, professionals that could provide a lot of guidance to this board is a key issue now in restoring the credibility of the CRA. Also, the other issue that I want to bring forth is -- Chairman Teele: Let's do that, that motion. Let's vote on that one. Board Member Sanchez: Call the question. Chairman Teele: This is on bringing in the City auditor, and you've accepted the amendment that the CRA -- Board Member Sanchez: Yes, sir. Chairman Teele: And this is just for Southeast Overtown/Park West at this point? Board Member Sanchez: No. This is the -- everything. It's a look at everything. Board Member Regalado: Mr. Chairman. Vice Chairman Winton: Southeast Overtown/Park West and Omni. Board Member Sanchez: Yes. Chairman Teele: Which one do you want to start with? Board Member Sanchez:.I think we should look at all of them. I don't know who to start with. We need to address every issue. I mean, we cannot cut corners here. We need to digest the beast. 61 February 24, 2003 0 • Board Member Regalado: Mr. Chairman, you're right. You have to start somewhere. Chairman Teele: Let's resolve it in the City Commission. But let's go ahead and approve this. Because he'll have an opportunity, I think, to meet with the City Attorney and the auditors and refine the resolution, but I want Commissioner Sanchez to work his will, and that's what I'm going to support. And we're not going to obfuscate it and it's not going to get killed somewhere down the road. I give you my firm commitment. All those in favor of the motion say "aye." The Board Members (Collectively): Aye. Chairman Teele: All opposed? The following motion was introduced by Board Member Sanchez, who moved for its adoption: CRA/SEOPW MOTION NO. 03-15 CRA/OMNI MOTION NO. 03-17 A JOINT MOTION OF THE BOARDS OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST ("SEOPW") AND OMNI REDEVELOPMENT DISTRICT ("OMNI") COMMUNITY REDEVELOPMENT AGENCIES REQUESTING THAT THE MIAMI CITY COMMISSION ASSIGN THE CITY'S INTERNAL AUDITOR, DR. VICTOR IGWE, TO CONDUCT FULL AND COMPLETE WRITTEN AUDIT OF THE SOUTHEAST OVERTOWN/PARK WEST AND OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCIES (THE "CRAS"); FURTHER DIRECTING THAT THE CRA REIMBURSE THE CITY UTILIZING TAX INCREMENT FUNDS (TIF) FOR THE COST OF SAID AUDIT. (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 Angel Gonzalez Board Member Joe Sanchez Board Member Tomas Regalado NAYS: None. ABSENT: None. Chairman Teele: Now, you wanted to bring up the Oversight Board. 62 February 24, 2003 0 0 Board Member Sanchez: Yes. The Oversight Board, Commissioner -- I believe that you want to defer it, and that's fine. All that I ask is that it be put at the next CRA's board meeting, so we could further discuss it. Clearly, the language states very clearly that the members -- who the members are, their term limits, and the members that.we'll be selecting; two by the Mayor, and one appointed by -- or three by the Mayor. Chairman Teele: The soonest we could properly act on this by the City Commission, Commissioner Winton, would be the single meeting in March. And that is -- we've agreed not to have the first meeting in March, I think. Unidentified Speaker: He's right. Chairman Teele: So could we agree then, as a board -- you'll put it on the agenda for the meeting in March, and then we'll have a CRA Hall Meeting before that so that we can flush that out. In that way, you can work that rule as well. Is that acceptable to you? Board Member Sanchez: Yes, sir. Vice Chairman Winton: And I do want to spend -- I think -- as I've listened to everybody talk, I think it's even more -- I think it's crucial that we talk about what this board will do and will not do. And I told you three or four times that, you know, I'm not opposed to it. And -- but the more I listen to the dialogue, the more it became clear to me that if we move forward -- and I'm not sure how I feel right now about this independent group, frankly. But the more I thought about -- as Commissioner Regalado said, he was viewing this as an Oversight Board much -- acting like the Oversight Board that the Governor approved. I don't think that's what you were thinking about, but it just brings into focus the differences that we could all be thinking about here, and brings into focus, in my mind, the need for us to really think hard about what we think the mission is here. And I will tell you that one of the reasons why I'm leaning further away from this idea is that, frankly, I'm not sure they know what they can do, nor am I convinced that they can do anything until we get this independent audit completed, that will look at not just the finances -- because Victor doesn't look at just -- Igwe doesn't look at just finances. He looks at operations issues, at policies and procedures, and manuals, and everything related to the operation and finances of the organization. When you get that report back, then you have a roadmap for moving forward to fix a lot of things. And I don't -- and I'm just kind of putting this out there upfront right now. As I've thought about this, I don't -- you know, I'm not sure that we're not just creating one more thing that becomes part of the mess, at least, right now until such time as we have at least created a roadmap for moving forward. Board Member Regalado: Mr. Chairman. Chairman Teele: Commissioner Regalado. Board Member Sanchez: Did we vote on (INAUDIBLE)? Board Member Regalado: I -- 63 February 24, 2003 • Chairman Teele: We voted on the first one, didn't we? Board Member Regalado: You asked which CRA should be first. I think that I can ask the person that did not brought this to the table. I would have, and I think that's the least we can do. I think it's important that we decide that Mr. Igwe starts his audit -- Chairman Teele: But this Commission -- this body cannot make that direction. Board Member Regalado: I understand. Chairman Teele: That's the discussion. I'm trying -- Board Member Regalado: It's a recommendation. Chairman Teele: I'm trying to make it so that we can have that discussion and debate, because the City Commission can direct it. Board Member Regalado: I understand that. Chairman Teele: The CRA Board can't. Board Member Regalado: No, I understand that. But -- so, you see, what we're trying to do here is to set the stage in tomorrow's headline to start with a new CRA, and this is the most intelligent and the most important because it's about where the money is, and what's been happening in the CRA. And my suggestion was to start on the CRA in the Overtown area, because there were some allegations that had been published. And then go on to the Park West and Omni, because he has to start somewhere. Chairman Teele: You can't bifurcate Overtown from Park West. It's only one (INAUDIBLE). Board Member Regalado: Well, it's Overtown/Park West, and then go to the Omni. Board Member Sanchez: Mr. Chairman. Vice Chairman Winton:. Mr. Chairman. I'm sorry. Board Member Sanchez: If I may? Commissioner Regalado, I totally disagree with you. I think we have an opportunity to address all the issues here. I think that a key factor here in restoring credibility to the CRA, first is the audit. I agree with you. Then putting together a committee, or an Oversight Board of professionals that could provide a lot of guidance to the CRA. It's prudent that we put professionals for a year. We will have the right to appoint those individuals that will give great recommendations to the CRA. If we do not do that, or if we don't take the appropriate actions today, then the headline tomorrow will be "The CRA Board Members Refuse to Take Action." So, today, we have an opportunity. And I'm one who has never swum across the river halfway. You know, if -- you know, you can't be wishy-washy here. You've got to do it or you're not going to do it. So, you know, I'm going to go ahead and put these three 64 February 24, 2003 resolutions to a vote. And if you want to vote against it, that is perfectly fine with me. I've never been one to swim across the river halfway. Vice Chairman Winton: Usually, you drown. Board Member Sanchez: I know how to swim. Chairman Teele: Let me - if I may. Do you have another resolution you want to move? Board Member Sanchez: Yes. It's a resolution to create a CRA Oversight Board with two members appointed by the Mayor, one appointed by each Commissioner, to create a seven - member body that will review the CRA's goals, finances, and pending projects, and future direction. So moved. Vice Chairman Winton: I thought we were taking that up at the -- I thought we had discussed holding off voting on this until we had a chance to review this thing. You've changed your mind? Board Member Sanchez: Yes. We'll go ahead and vote on it today. I mean -- Vice Chairman Winton: I'm not going to support -- I don't understand this. Chairman Teele: Well, I think one of the most important principles -- legislative principles that I've always been involved in is you never ask a colleague to vote on something if they require information, if they've not been given sufficient time. Vice Chairman Winton: I don't understand -- Chairman Teele: And that doesn't mean that you're not in favor of it. Personally, I'm in favor of it and I'm willing to vote tonight, because I realize it'll take a year before anybody -- before you explain what Chapter 163 is. I'm not sure all five members here understand we're in Chapter 163. So, I mean, you know, when you start bringing in people, they can't opine about something they don't know, because this is not Municipal Law 100 or 101. This is a whole different law. And when you read The Miami Herald stories, it's very clear, you know -- Board Member Sanchez: But, Commissioner -- Chairman Teele: -- that they're applying a municipal standard to a Chapter 163 entity, and therefore, they come up with the fact that money's missing. When -- you know, when you redevelop, money is going to be missing. If you tear down a derelict building, then money's going to wind up missing, if you use that as the analogy. Board Member Sanchez: But, Commissioner, there are other services that, you know, that they could provide. Project management, staffing, accountability. I mean, there's all kinds of other services -- 65 February 24, 2003 • 9 Vice Chairman Winton: Who, this committee? Board Member Sanchez: It's not knowing -- Chairman Teele: A committee? Board Member Sanchez: Three sixteen -- yes. Vice Chairman Winton: This committee's going to provide project oversight? Board Member Sanchez: Well, no, no. They're going to have people appointed to that Oversight Committee that will provide, you know, guidance in a lot of issues. It doesn't have to be those issues. But, basically, you're just creating one issue. There's a lot of -- we have a lot of things wrong with the CRA, just not one thing. Vice Chairman Winton: But Commissioner Sanchez, that's my whole point. I don't know what I'm voting on. I don't know what these people -- what we're asking these people to do. I don't know the kinds of people we really need to be effective in this deal. I mean, that's why -- Board Member Sanchez: Mr. City Attorney, could you read the resolution? Mr. Vilarello: If I could just clarify one issue. It's a joint resolution of the CRA's making a recommendation to the City Commission, that the City Commission create the Oversight Committee. Chairman Teele: Well, I'm not prepared to do that. I'm prepared for the CRA to create -- because it -- the City --'look, the City has less knowledge about what the CRA does than the CRA does. When you read all of those internal emails, it's very clear, you know, what the standard their view's in. I mean, Jim, you're the Attorney. You see the training that has to go on. So, the CRA is a preliminary agency as it relates to Chapter 163. If we're going to invite -- Board Member Sanchez: But (INAUDIBLE) Chairman Teele: If we're going to bring somebody in to give oversight, it should not be City oversight. It should be Chapter 163 oversight. It should be Chapter 163. The worst thing that could happen to the CRA is we start conforming with the kind of stuff that The Herald is reporting. Board Member Sanchez: Can we agree that it needs oversight? Chairman Teele: I fully agree -- Board Member Sanchez: Thank you very much. Chairman Teele: -- that the CRA could benefit from oversight. And I fully agree that the CRA Board of Directors should not be the City Commission, which you've not brought up. And I 66 February 24, 2003 0 • fully agree that we should rotate chairs of boards. I fully agree. But the problem was, when the CRA was created, it was a broke, upside down agency. It had no money. Once you got money, everybody's willing to help out. But the fact -- and we're there, and it's going to continue to make money. And so I'm more than willing to say we should have a chairman of the CRA that rotates among the City Commissioners, and we should have a CRA Board, I believe, that is more reflective of the property owners and the business community in both Omni and in Southeast Overtown/Park West, with one staff. I mean, I've always taken that position. Mr. Judy can tell you chapter and verse. And we don't have to wait a year to do that. I'm willing to do that next week. Board Member Sanchez: Was there a second to my -- Board Member Gonzalez: Well, I'll second the motion for the Oversight Board -- Board Member Sanchez: OK. Board Member Gonzalez: -- or committee or whatever. Board Member Sanchez: There's a motion and a second. Could you read the resolution? Chairman Teele: Is that being appointed by the City or by the CRA? Mr. Vilarello: By the CRA or the City? Board Member Gonzalez: By the CRA. Board Member Sanchez: No, the City will appoint it, not the CRA. The City will appoint it. Chairman Teele: I can't support that. Board Member Regalado: Well, why -- excuse me. Why is that? I mean, the -- I don't -- Board Member Sanchez: I think it should be done outside. That way it's seen as -- Board Member Regalado: But we are going to make the appointments. Board Member Sanchez: But outside the CRA. We make it here, let's -- you know, let's make it outside the CRA. Just -- Board Member Regalado: I don't -- Board Member Gonzalez: Mr. Chairman. Board Member Regalado: I don't understand this. 67 February 24, 2003 • Board Member Gonzalez: Commissioner Sanchez, if your proposal -- your proposal, if I understand it correctly, is that the Mayor is going to have three appointments, and each one of the Commissioners -- Board Member Sanchez: Two. The Mayor makes two appointments, sir. Board Member Gonzalez: I'm sorry. Board Member Sanchez: Two appointments by the Mayor, one by the Commissioners. Board Member Gonzalez: One by the Commissioners, right. So, actually, I don't see the difference, because now we go back to the same principle that I was talking about. We are the Commissioners and we are the board members of the CRA, so what difference does it make if we make the appointments at a Commission level or we make the appointments as a CRA board member? I don't see. The only difference is that if we do it as the CRA, the Mayor doesn't have his appointments, because the Mayor is not a member -- Chairman Teele: Oh, no. This body could authorize the Mayor -- Board Member Gonzalez: OK. Chairman Teele: -- to make appointments to that board. Board Member Gonzalez: There is the solution. Chairman Teele: But I think the real issue here is, what rule book are they going to play 'by? And if they're going to play by City Charter, then I'm opposed to it. If they're going to play by Chapter 163, I'm strongly in support of it. But I'm telling you, when you listen to the City staff, when you listen to people talk about redevelopment, they don't know Redevelopment 99, say nothing about 100. 1 mean, you read the memos. Read the emails. They're applying -- "The City Charter says this." Well, the City Charter is trumped by Chapter 163. Chapter 163 is what governs this agency, and it trumps the City Charter, and it trumps the City ordinances. Board Member Sanchez: Call the question. Vice Chairman Winton: Well, is this body going to be advisory Board Member Sanchez: Yes. Vice Chairman Winton: -- to the board of the CRA? Or is it going to have some sort of -- Board Member Sanchez: Mr. City Attorney, could you read the resolution? Mr. Vilarello: Purely advisory. Board Member Gonzalez: Advisory. 68 February 24, 2003 Board Member Sanchez: There's no harm. Mr. Vilarello: To the agency. Board Member Sanchez: There is no harm, whatsoever. Chairman Teele: This resolution has to go to the City? Board Member Sanchez: Yes. Chairman Teele: I'm going to -- Mr. Vilarello: The way it's proposed here, sir. Chairman Teele: I'm going to vote for it to go to the City so that I can vote from the City to send it back to the CRA. Because I think it needs to be very clear that Chapter 163 is going to be the guiding rule. And if the City does it, it's got to be very clearly written, not this manila envelope resolution that we have, that Chapter 163 trumps everything, and that the City staff and the City Attorney and the Mayor's appointments and our appointments, will be consistent with Chapter 163, and they will be guided by Chapter 163 and not the City Charter and not the City ordinances. Board Member Sanchez: Mr. Chairman, I'm sure that Mr. Bloom and Mr. Villacorta are excellent attorneys, but they're not the only ones that know, you know, the rules and regulations of the CRA. Board Member Regalado: Mr. Chairman. Board Member Sanchez: Call the question. Board Member Regalado: Before you do that. Vice Chairman Winton: I want a roll call. Board Member Regalado: If I may? I think that this idea is a good idea, but I still -- I think it would be unfair for the people that we decide are going to be members of the Oversight Board to come in blind, to come in -- you know, to not know what is going on. It would be us putting them in harm's way, in terms of we saying, "OK. It's your responsibility. You know, you're going to deal with that." I think that we should have, at least, the benefit of the audit to tell these people, which I am in favor of this board -- but I do think it has to come from the CRA, not from the City, because it doesn't make sense to come from the City. But I think it would be unfair to appoint this board without them knowing the results of a detailed audit. This is all about money. It's all about possible mismanagement. I don't understand why we want to give that responsibility. So I don't have a problem in voting now. I don't think we should run from the 69 February 24, 2003 responsibility. This is our problem. We have faced bigger problems in the City Commission, and we have dealt with. So I am ready to vote. Board Member Gonzalez: Mr. Chairman. Chairman Teele: Mr. -- Commissioner. Board Member Gonzalez: Commissioner Regalado, I don't think anybody's trying to run here from anything. I don't think there is any cowards here in the City Commission or the board members. You know, we're not trying to run anywhere. We're not running anywhere. There is nowhere to run. But what we're trying to do -- Commissioner Sanchez trying to do, he's trying to make sure that the proper things are done in order to avoid the constant articles in the different newspapers, and the constant comments -- public comments outside, which are putting our prestige and our names in the arena. That's what we're doing. We're not running anywhere. We're going to be here. At least I'm planning on being here in November. Board Member Regalado: But, Angel, you know how you solve the problem with the article? Board Member Gonzalez: Well, but -- Board Member Regalado: You give them the result of the article. Board Member Gonzalez: Listen, don't -- Board Member Regalado: Full results of the article. Board Member Gonzalez: Listen -- Board Member Regalado: Money was missing there. This project was mismanaged. That's the only way to (INAUDIBLE) Board Member Gonzalez: Well, as a journalist, you know that that's the effect of the articles in the newspaper. I was portrayed as being a criminal, a fugitive, you know. They insisted so much in that, that I was about this much to catch a plane and go to Spain, you know. Jesus Christ. The way they was looking for me, and it wasn't real. But that's press. You are a journalist. That's press and they have the right to write in the papers whatever they want to do on whatever information they find. Board Member Sanchez: Roll call. Board Member Gonzalez: And we're the ones that have to report to their information, because people don't call them to ask them, you know. Board Member Regalado: Angel. Board Member Gonzalez: People call us. 70 February 24, 2003 ® 0 Board Member Regalado: Angel, the press is not the message. The press is the messenger. The message is that the CRA is, you know, in chaos. And the only way to solve these articles are to get this audit -- full audit, with a respected person -- Board Member Sanchez: But it's in chaos, not just because of its finances. Board Member Gonzalez: Exactly. Board Member Sanchez: It's in chaos because other issues that we need to address. Vice Chairman Winton: Mr. Chairman. Board Member Regalado: Joe. Board Member Regalado: Well, OK. Chairman Teele: Commissioner Sanchez, are you finished? Commissioner Winton. Vice Chairman Winton: You know, I hate to be redundant, but I can't go to the vote without repeating this one more time, and I'll add a couple of things. First of all, Commissioner Sanchez, you know, I commend you for stepping to the plate and making some bold moves here. I mean, that was the right thing to do. But I also don't want to create a new mess that we're going to have to unsort. And Victor Igwe's audit will not be just an audit about the financial condition of the CRA. His audits look at all the operations, from top to bottom, of the CRA, which is one of the reasons why you can't necessarily say which one do you want to do first, because from an operational standpoint and procedure standpoint, it's one. From a finance standpoint, it's two. But from the rest of the picture, he has to look at it as one. But this body that we're going to create -- and I agree with Commissioner Regalado a hundred percent -- this -- we're putting them in an impossible situation. They won't know the first thing to go and look at. And even if they know the first thing they want to go look at, they can't find it because no one can find it. Until we get both our KPMG (Klynveld, Peat, Marwick, Goerdeler) audits done, the accountant cleaning up our books that we authorized to be hired at the last board meeting, and Victor Igwe finishing a complete operational and financial internal audit of the CRA, that committee can't do a job of any kind. And so, it's for that reason that I'm simply not going to support creating that Oversight Board at this time. They can't do a job. We will create -- we will put them in a mess that is going to come right back to this table again. So end of my -- I'm ready to vote. Chairman Teele: All in favor say "aye." Board Member Sanchez: Roll call. Vice Chairman Winton: No, no, no. Roll call. (COMMENTS MADE DURING ROLL CALL) 71 February 24, 2003 Chairman Teele: Yes, for the purpose of having an intelligent debate at City Commission. Board Member Sanchez: And sending it back to the CRA. Chairman Teele: And sending it back to the CRA. Board Member Sanchez: OK. Priscilla A. Thompson (City Clerk): The motion is adopted three/two. The following resolution was introduced by Board Member Sanchez, who moved for its adoption: CRA/SEOPW RESOLUTION NO. 03-16 CRA/OMNI RESOLUTION NO. 03-18 A JOINT RESOLUTION OF THE BOARDS OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST ("SEOPW") AND OMNI REDEVELOPMENT DISTRICT ("OMNI") COMMUNITY REDEVELOPMENT AGENCIES RECOMMENDING THAT THE MIAMI CITY COMMISSION ADOPT THE ATTACHED RESOLUTION CREATING AN OVERSIGHT COMMITTEE FOR THE SOUTHEAST OVERTOWN/PARK WEST AND OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCIES (THE "CRAS"). (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. Board Member Angel Gonzalez Board Member Joe Sanchez NAYS: Vice Chairman Johnny L. Winton Board Member Tomas Regalado ABSENT: None. Board Member Sanchez: The other resolution that I have is, once the Oversight Board completes its task, the ordinance that we'll present it at the City Commission will be to disband the current CRA Board, and start anew with a board that is representative of the Overtown/Park West and Omni community. So moved. Board Member Gonzalez: Second. 72 February 24, 2003 Board Member Regalado: Excuse me. I got a question. How long is that? Board Member Gonzalez: (INAUDIBLE) Chairman Teele: This is a resolution to do what? Read that again. Board Member Sanchez: It's a resolution disbanding the current CRA Board and start anew with a board that is representative of the Overtown/Park West, and Omni community, as soon as the Oversight Board completes its task. Chairman Teele: So you're passing a resolution now -- you're prejudging. Board Member Regalado: How long? Board Member Sanchez: They all go together like -- this goes together like peanut butter and jelly. Board Member Regalado: But how long? Board Member Sanchez: Ham and cheese. Board Member Regalado: How long? Ninety days, one year? Board Member Sanchez: Cafe con leche. Board Member Regalado: Joe, how long? How long? Board Member Sanchez: It all depends. I mean, we could drag this out forever, or we could do it, you know -- Board Member Regalado: No, no, no. How long is the Oversight Board? Board Member Sanchez: The Oversight Board is for a year. And once they come back and give their final result, then, you know, we, as Commissioners -- Board Member Regalado: But I thought you said you can expend it six more months. Board Member Sanchez: No, I didn't say that. I didn't say anything about expending anything. I don't want to expend this another minute. Board Member Regalado: No, the Oversight Board. Board Member Sanchez: The Oversight Board is for a year. 73 February 24, 2003 0 Vice Chairman Winton: So, it's for a year. And so, by the end of a year, this board gets disbanded and we have -- Board Member Sanchez: Johnny, the deal is that -- you know what. Vice Chairman Winton: I'm just asking. Board Member Sanchez: We're not walking away from it. We're not turning our backs on it. Vice Chairman Winton: Right. Board Member Sanchez: They're going to correct the problem, and then we're going to turn it over to the people -- Vice Chairman Winton: I'm going to agree with you. I think a year, you know -- if we don't have this thing all squared away within a year, we need to be fired. Chairman Teele: If not less than a year, and not more than a year. Vice Chairman Winton: Right. Chairman Teele: Would you change that to not more than a year? Board Member Sanchez: Absolutely, sir. Chairman Teele: All right. Then let's all vote for this. Vice Chairman Winton: I'm ready. I understand. Board Member Sanchez: Roll call. (COMMENTS MADE DURING ROLL CALL) Board Member Regalado: I'm voting on this "yes," because I think it's important to send a message about the future. But I still -- I am very troubled with this notion of sending important people, people that have businesses in the area, into a quagmire. I think it is our responsibility and ours only. And I'm -- to disband this board and appoint members of the community, yes. I'm voting "yes." 74 February 24, 2003 0 The following resolution was introduced by Board Member Sanchez, who moved for its adoption: CRA/SEOPW RESOLUTION NO. 03-17 CRA/OMNI RESOLUTION NO. 03-19 A JOINT RESOLUTION OF THE BOARDS OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST ("SEOPW") AND OMNI REDEVELOPMENT DISTRICT ("OMNI") COMMUNITY REDEVELOPMENT AGENCIES RECOMMENDING THAT THE MIAMI CITY COMMISSION ADOPT THE ATTACHED ORDINANCE PROVIDING FOR THE APPOINTMENT OF A BOARD OF COMMISSIONERS FOR THE SOUTHEAST OVERTOWN/PARK WEST AND OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCIES (THE "CRAS"). (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. Chairman Teele: Now -- Board Member Sanchez: I have another issue, and this is just for point of notice. In the April meeting, at the City Commission, I would ask the City to put as the agenda item the discussion of addressing the rotating chairman of all City boards, that's MSEA (Miami Sports and Exposition Authority) Bay Front Park, DDA (Downtown Development Authority). Chairman Teele: Well, this is the CRA Board meeting. Board Member Sanchez: CRA. Chairman Teele: That's not germane for this meeting, Commissioner. Mr. Director, would you present, within 30 days, a plan for me to move this board to a board of property owners, consistent with state law or a series of options, to do so within the next 30 days, consistent with State -- Chapter 163. Let me do it this way. Mr. Attorney, let me instruct you -- and would you work with that Sears Roebuck lawyer extraordinaire, who has a plan, I'm sure, already written 75 February 24, 2003 out? Don't you, Dick? OK. All right. And would you make a copy of those options available, because it would be my intent to move forward well before that. I've always said that. Mr. Judy was asked to do that about four months ago. And there is no reason -- also, would you opine as to whether or not a person could resign from the board that is currently constituted, as well? Vice Chairman Winton: He's already done that. Mr. Vilarello: You can resign, but you would have to give up your Commission seat. Chairman Teele: Or don't come to meetings. I think we've taken up enough tonight. Is there -- did you want to make another statement for the press? Vice Chairman Winton: Move to adjourn. Board Member Sanchez: No, not for the press. Chairman Teele: All right. Board Member Sanchez: But I do want to make this statement to the board. I really appreciate you taking the time to debate these issues in a healthy and professional manner. It really shows the professionalism, both from the members here at the CRA and from the staff and for everyone. Thank you so much. Chairman Teele: And I want to just say, for the record, unfortunately, I was late because of health reasons. I probably will not be there on Thursday, but I came back solely for this meeting tonight. We'll call a meeting. We'll call a meeting for the Black Archives if there's an item of time sensitive. 76 February 24, 2003 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 7:20 p.m. ATTEST: PRISCILLA A. THOMPSON City Clerk SYLVIA SCHEIDER, Assistant City Clerk +atom Qp�T[U ARTHUR E. TEELE, JR. Chairman 77 February 24, 2003