HomeMy WebLinkAboutCC 2003-08-08 MinutesMINUTES OF SPECIAL MEETING OF THE
CITY COMMISSION OF MIAMI, FLORIDA
On the 8t1' day of August 2003, the City Commission of Miami, Florida, met at its regular
meeting place in the City Hall, 3500 Pan American Drive, Miami, Florida, in special session.
The meeting was called to order at 9:09 a.m. by Chairman Johnny L. Winton with the
following members of the Commission found to be present:
Commissioner Angel Gonzalez (District 1)
Chairman Johnny L. Winton (District 2)
Commissioner Tomas Regalado (District 4)
ABSENT:
Vice Chairman Arthur E. Teele, Jr. (District 5)
Commissioner Joe Sanchez (District 3)
City Manager Joe Arriola
City Clerk Priscilla A. Thompson
ALSO PRESENT:
City Attorney Alejandro Vilarello
Assistant City Clerk Sylvia Scheider
Deputy City Manager Linda Haskins
1 August 8, 2003
1. RELATE PARROT JUNGLE PROJECT ON WATSON ISLAND, AUTHORIZE
MANAGER TO EXECUTE AMENDMENT TO DEVELOPMENT AGREEMENT BETWEEN
MIAMI-DADE COUNTY, PARROT JUNGLE AND GARDENS OF WATSON ISLAND, INC.
AND CITY AMENDING PAYMENT SCHEDULE OF $25 MILLION SECTION 108 LOAN
FROM MIAMI-DADE COUNTY TO PARROT JUNGLE TO CONFORM TO SCHEDULE OF
MIAMI-DADE COUNTY'S PAYMENTS TO U.S. DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT (HUD), UNDER CORRESPONDING HUD LOAN GUARANTEE;
MANAGER TO CONSENT TO MIAMI-DADE COUNTY'S SUBORDINATION OF
SECTION 108 LOAN TO ADDITIONAL DEBT, $3,776,000, THEREBY INCREASING
TOTAL AMOUNT OF SUBORDINATION TO $15,776,000.
Chairman Winton: Commissioner Regalado, if you'd lead us with the invocation, and
Commissioner Gonzalez, the pledge.
Invocation and pledge of allegiance delivered.
Chairman Winton: Madam Manager, the floor is yours.
Keith Carswell (Director, Department of Economic Development): Mr. Chair, Commissioners,
Keith Carswell, director for the Department of Economic Development. On 7/22, the County
modified an agreement to allow for an increase in the subordination of the Parrot Jungle's first
mortgage from 12 million to 15.8 million. Now, this represents a $3.8 million increase. Per the
joint participation agreement between Parrot Jungle, the County, and the City, the City of Miami
would have to consent to such an increase in the subordination. Also, the modification addresses
repayment schedule, which was inconsistent with what HUD (Department of Housing and Urban
Development) was paying and with -- what the County was paying HUD, and also what Parrot
Jungle was paying the County, and also the modification is a reduction in the administration fee
on the Section 108 Loan. Currently, the -- Parrot Jungle pays the County .5 percent over the
interest rate that HUD charges the County; that is being reduced from .50 to .25 percent over the
interest rate. I'd also like to note that the County has provided 2.5 million in additional financing
to Parrot Jungle; 1.5 million represents a forgivable loan, and an additional one million
represents a low interest loan of about three percent, repay over a ten-year period of time. Now,
this would provide additional working capital, as well as address some of the enhancements to
the botanical garden that's being constructed.
Chairman Winton: Yes, sir.
Commissioner Regalado: Question. Mr. City Attorney, do we have -- why do we have to vote
on this?
Alejandro Vilarello (City Attorney): Why do you have to vote on this?
Commissioner Regalado: Yes.
2 August 8, 2003
Mr. Vilarello: Well, you're not obligated to vote on this, as it's presented to you because it
includes a subordination consent, and you have the right to consent or not with regard to
subordination.
Commissioner Regalado: Right, but it requires a City Commission vote.
Mr. Vilarello: Yes, sir.
Commissioner Regalado: OK. Mr. Carswell, we were noticed of this City Commission meeting
the day before yesterday. I think it was the day before yesterday. How long have you been
involved in this deal? I mean, how long have you known the details?
Mr. Carswell: Well, we've been in discussions with the County relative to the issues. I think the
meeting -- there was a discussion with the Chair, and through being the Chair, a meeting was
called, a special meeting with the Commission.
Chairman Winton: I don't think that's what he's asking.
Commissioner Regalado: Are you aware that there is a law called the sunshine law in the state
of Florida?
Mr. Carswell: Yes, I am.
Commissioner Regalado: Are you aware that I cannot speak to the Chairman or any other
colleagues about a matter that requires a vote --
Mr. Carswell: Yes, I am.
Commissioner Regalado: -- under a penalty of law? Then why you and the Administration did
not come to inform me as a Commissioner that I have to vote on this deal?
Linda Haskins: Commissioner, may I answer that? There was a discussion that -- on
Wednesday, I believe, where there was a decision made to have a Special Commission meeting.
That meeting was not attended by Mr. Carswell. It was not attended by me. I put on the record
that there was a misstep in the communications, in terms of notification of either Mr. Carswell or
I. We are addressing that misstep in communication. It's not something that anyone is happy
with. We're all very disappointed that the communication got lost in the shuffle, and again, we
apologize to you, to all the Commissioners that we had a misstep in the communication, and we
will try to make sure that it doesn't happen again.
Commissioner Regalado: Well, you know, I came because this is a signature project for the City
of Miami, and I came because I made a phone call to the good doctor here and he took his time
to explain to me over the phone, for more than 10 to 15 minutes, all the details; that's why I
came, because nobody from the Administration gave me an explanation as to why I am voting on
this, so you know, next time you want to do it, I'll be coming here because I have never, ever
missed one single meeting of the City Commission, never, and I will be voting no, because you
3 August 8, 2003
know, the only thing that I have is my vote, and if you don't got -- if you guys do not understand
that elected officials need to be informed to make an informed vote, then I will have to vote no,
so you know, it's not about apology; it's about the process. I mean, immediately -- I mean, it's
City 101. You have a Commission meeting; you should talk to the Commissioner. Make sense,
right?
Ms. Haskins: Commissioner, you're absolutely right, and what happened here was not right.
Chairman Winton: Yes, sir.
Vice Chairman Gonzalez: Well, we don't have a motion. I'm ready to move a motion to
approve the resolution.
Commissioner Regalado: I'll second.
Chairman Winton: We have a motion and a second. I just have one question. Does -- what
does this do to the City's position, vis-a-vis, the -- is it Section 108 Loan? -- that we're going to
ultimately have to -- that -- where's the City's liability on this; that's what I'm -- ?
Mr. Vilarello: This action and the resolution that you're voting on specifically provides that
nothing you do today is going to be deemed or interpreted to expand the City's obligations or
rights with regard to the assignment of the 108 from the County to the City. That is a condition
in your resolution, and that condition is incorporated into the amendatory agreement between the
City, the County, and Parrot Jungle. We still have our obligation, as we contracted to do many
years ago, with regard to accepting the assignment of the 108 Loan when that -- when and if that
is possible.
Chairman Winton: OK, so we have a motion and a second. Any further discussion? Being
none, all in favor, say "aye."
The Commission (Collectively): Aye.
Chairman Winton: Like sign, opposed. Motion carries.
4 August 8, 2003
The following resolution was introduced by Commissioner Gonzalez, who moved for its
adoption:
RESOLUTION NO. 03-910
A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH
ATTACHMENT(S), RELATING TO THE PARROT JUNGLE PROJECT ON
WATSON ISLAND, AUTHORIZING THE CITY MANAGER TO EXECUTE
AN AMENDMENT TO THE DEVELOPMENT AGREEMENT BETWEEN
MIAMI-DADE COUNTY, PARROT JUNGLE AND GARDENS OF WATSON
ISLAND, INC. ("PARROT JUNGLE") AND THE CITY OF MIAMI, IN
SUBSTANTIALLY THE ATTACHED FORM, AMENDING THE PAYMENT
SCHEDULE OF THE $25 MILLION SECTION 108 LOAN FROM MIAMI-
DADE COUNTY TO PARROT JUNGLE (THE "SECTION 108 LOAN") TO
CONFORM TO THE SCHEDULE OF MIAMI-DADE COUNTY'S
PAYMENTS TO THE U.S. DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT ("HUD"), UNDER THE CORRESPONDING HUD LOAN
GUARANTEE (THE "HUD LOAN"); FURTHER AUTHORIZING THE CITY
MANAGER TO CONSENT TO MIAMI-DADE COUNTY'S
SUBORDINATION OF THE SECTION 108 LOAN TO ADDITIONAL DEBT
IN THE PRINCIPAL SUM OF $3,776,000, THEREBY INCREASING THE
TOTAL AMOUNT OF SUBORDINATION TO $15,776,000, PROVIDED
THAT THE FOREGOING SHALL NOT BE DEEMED OR INTERPRETED TO
EXPAND THE CITY'S RIGHTS OR OBLIGATIONS UNDER THE
DEVELOPMENT AGREEMENT OR THE JOINT PARTICIPATION
AGREEMENT BETWEEN THE CITY AND MIAMI-DADE COUNTY DATED
SEPTEMBER 9, 1998, WITH SAID AUTHORIZATIONS BEING SUBJECT
TO PARROT JUNGLE'S AGREEMENT TO INSTALL, AT ITS SOLE COST
AND EXPENSE, SOUND MONITORING EQUIPMENT ON VENETIAN
ISLAND, ACCEPTABLE TO THE CITY, TO VERIFY COMPLIANCE WITH
THE NOISE RESTRICTIONS UNDER THE PARROT JUNGLE LEASE; AND
AUTHORIZING THE CITY MANAGER TO EXECUTE SUCH DOCUMENTS
AS MAY BE REQUIRED TO ACCOMPLISH THE PURPOSE OF THIS
RESOLUTION, ALL IN FORM AND SUBSTANCE ACCEPTABLE TO THE
CITY ATTORNEY.
5 August 8, 2003
Upon being seconded by Commissioner Regalado, the resolution was passed and adopted by the
following vote:
AYES: Chairman Johnny L. Winton
Commissioner Angel Gonzalez
Commissioner Tomas Regalado
NAYS: None.
ABSENT: Commissioner Joe Sanchez
Vice Chairman Arthur E. Teele, Jr.
Vice Chairman Gonzalez: OK. Now, that I -- that we already voted on this, Mr. Chairman, I
also -- I'm also concerned with the lack of communication from the Administration to the City
Commissioners in items like this one. When my chief of staff called me and told me that we
have a special Commission meeting, I thought it was the regular special Commission meeting
that we agreed that we were going to need to have for other issues that are going to be on the
ballot before the voters of the City of Miami, so this also caught me as a surprise, but you know,
it's very unfortunate that we are not being informed of issues, you know, and they probably had
a lot of time to come to us and discuss with us these issues before we had to sit down and vote on
it.
Chairman Winton: Actually, I think that if I understood this right -- because I happened to be
here when it popped up and they grabbed me because I had to call the Commission meeting --
but my understanding is the way this actually got to us is that there was a process to get this new
loan approved by Parrot Jungle, and most of the players at the table, if I understood this right,
didn't think that they had to come back before the Commission for this approval, and it was
really kind of at the eleventh hour that it was determined -- and why it was at the 11th hour, I
don't know, but apparently, it was at the 1 lth hour that somebody determined that "Oops, we do
have to get City Commission approval," and that's how we ended up having to do this on such
short notice. It does not excuse the Administration not talking to you during that 48-hour period
from the time I heard about it. It doesn't excuse that --
Vice Chairman Gonzalez: All it takes is a phone call.
Chairman Winton: -- but I -- but it wasn't a long, ongoing process where they all knew that we
were going to have to have this meeting. That's the only point I'm making.
Vice Chairman Gonzalez: Well, anyway, I also want to congratulate the people of Parrot Jungle
because it's a beautiful project in the City of Miami and it's marvelous.
Chairman Winton: Bern, you want to say something?
Bern Levine: Commissioners, thank you very much for your time, and the rush here --
Chairman Winton: Bern, need your name and address.
6 August 8, 2003
Mr. Levine: Oh, Bern Levine, Parrot Jungle Island, 1111 Parrot Jungle Trail, Miami. We really
appreciate you taking the time. This sort of was an emergency because in order to get the
funding, the additional funding from the bank, we found out only -- I guess it was last week that
the City had to also approve this, and we owe a lot of money to some of the subcontractors here,
quite a bit, and this will allow us to get funded, and we appreciate everything y'all have done, so
thank you.
Chairman Winton: OK. Thank you.
Mr. Vilarello: Mr. Chairman, before you adjourn.
Vice Chairman Gonzalez: Congratulations and good luck.
Chairman Winton: Yes, sir.
Mr. Vilarello: Before you -- just for the record, Mr. Carswell read an amount of the
subordination. It's just -- in the resolution, it provides for a 3,766,000. That should be
3,776,000.
Chairman Winton: OK.
Mr. Vilarello: He actually read a larger number into the record, which is fine.
Chairman Winton: OK. Any other business?
Vice Chairman Gonzalez: OK.
Chairman Winton: Then we're adjourned. Thank you all for coming, and I'll probably see you,
before the summer is out, on the real special meeting.
7 August 8, 2003
THERE BEING NO FURTHER BUSINESS TO COME BEFORE THE CITY COMMISSION,
THE MEETING WAS ADJOURNED AT 9:20 A.M.
ATTEST:
Priscilla A. Thompson
CITY CLERK
MANUEL A. DIAZ
MAYOR
8 August 8, 2003