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HomeMy WebLinkAboutCC 2001-09-17 MinutesMINUTES OF SPECIAL: MEETING OF TLIE CITY COMMISSION OF MIAMI, FLOIUDA * 1. 4: * x On the 17`r' day of September 2001, the City Commission of Miami, Florida, met at its regular mooting place in the City Hall, 3500 Pan American Drive, Miami, Florida, in special session. The mooting was called to order at 9:11 a.m. by Vice Cliairman Wifredo Gort, with the following members of the Comm-nission found to he present: Commissioner Wifredo (fort (District 1) Commissioner Johnny L. Winton (District 2) Commissioner Joe Sanchez (District 3) Commissioner T on►as Regalado (District 4) ABSENT C.ommissimer Arthur 11,. Tcelc, Jr. (District 5) ALSO PRESENT: Carlos Gimenei, City Manager Alejandro Vilarello, City Attorney Walter .I. Foernan, City Clcrk Sylvia Scheider, Assistant City Clerk Vice Chairman Gort: (rood morning everyone and welcome to the special meeting. First we'll have the invocation by Commissioner Sanchez and the pledge of allegiance by Commissioner Itegalado, An invocation was delivered by Commissioner Sanchez, followed by Commissioner Regalado leading those present in it pledge of allegiance to the flag. (A) Oi DER.,OF DAY - ---- - - (B) MANAGER' COMMENDS STAFF ' AND ;COMMITTEE ON . WORK DONE ON.. WATSON 'ISLAND PROTECT. Vice Chairman Gort: Can somebody clieck with Teele's office and see i f he's on his w�►y or how long he'll be? It's my understanding, Teele just called in. He's stuck in traffic and lie's on his way. He should be here shortly, Is there any matter that we can take care of before we take the (INAUDIBLE), This is -- what I would like to do, if possible. You all have a presentation that September 17, 2001 3. (A) APPROVE MANAGER'S RECOMMENDATION AND ACCEPT PROPOSAL. SUBMITTED BY FLAGSTONE PROPERTIES, LLC FOR UNIFIED DEVELOPMENT OF MEGA YACHT MARINA AND MARINE FACILITIES, FISII MARKET, HOTELS WITi 1 TIMESHARE UNITS, CULTURAL AND EDUCATIONAL . FACILITIES INfCLUDING MARITIME MUSEUM AND PUBLIC GARDENS, RESTAURANTS, RETAIL, AND SUPPORT FACILITIES SUCH AS OFFICE, AND PARKING ON 10.8 ACRES OF CITY-: OWNED WATERFRONT PROPERTY LOCA'T'ED ON WATSON ISLAND AND 13.4 ACRES OF ADJACENT SUBMERGED LAND; PROVIDE THAT SELECTION OF FLAGSTONE.: PROPERTIES, LLC DOLS NOT. CONFER CONTRACTUAL RIGHTS UPON PROPOSER UNLESS THERE ]]AS BEEN FAVORABLE VOTE BY ELECTORATE; DiRECT CITY ATTORNEY TO PROVIDE WRITTEN EXPLANATION RI:GAIZD1NG MINORITY BUSINESS POLICY REQUIRED UNDER CITY OF MIAMI CODE; SEC. 2-696; DIRECTING THAT ANNUAL REVIEW BY COMMISSION OF SAID POLICY BE CONDUCTED. (B) DIRECT CITY AT'T'ORNEY TO PROVIDE WRiTTEN EXPLANATION REGARDING MINORITY BUSINESS POLICY REQUIRED UNDER CITY OF MIAMI CODE SEC. 2-696; DIRECTING uIAT ANNUAL REVIEW BY COMMISSION OF SAID POLICY BE CONDUCTED. Vice Chairman God: OK. You're oil. Dena Bianchino (Assistant City Manager): Good morning, Coulnlissioners. This is Dena Bianchino, Assistant City Manager for Planning and Development. 1'd just like to say how excited and happy we're licre -- to be here today that we arc. This is an important and exciting step I'or the City of Miami, as it represents the first major development of City property in a new cra of professionalism and development outreach, as evidenced by the Miami Development Summit of April 2001, The City Manager has thanked staff fbr their efforts in this process, l would specifically like to name the staff that was so hard working and did such a great job on this process Arleen Weintraub, Acting Director of Real Estate and Economic Development, Dianne Johnson, Developmem Coordinator/Real Estate and Economic Development, Alejandra Chong, Real Estate, Pasha Cardin, Real Estate, Vanessa Morales, City Manager's Office, and, most particularly, Meredith Nation, who served as the Project Manager for this project and worked so diligently to communicate under the cone of silence, all the requirements and changes. that came up in this RFP (Request for Proposal). The Ui)P (Urban Development Project) process, as we face it, is much different than any bid process that the City goes through. 11 is more complicated. We are asking to obtain from the private sector an integrated package of proposed improvements to the prollerty, including planning, design, CONS• action, leasing, and management. If sonleone is selected today, they will be a partner with the City of Miami. We will work closely with them on the penllitting process. We will Work with them 111 terms of sleeting your goes and objectives for Watson Island. The property being discussed today involves ten point eight acres of upland and thirteen point I0nu• acres of sub171erged property. The upland is primarily zoned commercial, so it is appropriate for development. As ,you know, you specified that a mega yacht marina and a fish market be required uses. "]'here are many other allowable uses oil this property: Recreational, entertainment, educational, cultural, marine facilities, convention, hotel, office, retail, parking and support facilities. Public purpose aril public use were mandated to be strong and integral components of the project. I just want to take September 17, 2001 M 0 was givell. Yost had tune to read the dlfferolt proposals that was given to ils. At the same lime, you have two -- the proposal being recommended and the recommendation f-om the Committee. What I would like to -- for the salve of time, what 1 would like to do, if you all agree, is have staff make all the presentations, and the Committee go ahead and write down all the questions that you would have and any other proposals, and after the presentation, wc'II ask the questions and we'll open to public hearings. All right,? if that's OK with you, i would like to follow that. Commissioner Winton: Fine lvith the Vice Chairman Gort: Any small matter that we call take? See i f -- Note for the Record: At this tulle the City Collltnission recessed, de facto, at 9:44 a.m. Vice Chairnlmm Goil: Let's get into item IA, which is the special election for November 6"', for the purpose of meeting the electorate of-- said election in question, and the -- Commissioner Regalado: Mr. Chairman? Vice Chairman Gort: The Village Council first. Commissioner 1Zegalado: Vlr, Chairman? Vice Chairman Gort: Yes sit'. Chairman Regalado: We're doing 1 first, and then IA? Vice Chairman (C ort: Conimisslone•r Teele is here. Chairman egalado: Yeah. 2' CONVENE SPECLt1L MEETING CONNECTION -,WITH. PROPOSAL TO PLACE ON, NOVEMBER .C, 2001 BALLOT SLATE' OF CANDIDATES FOR ELECTION TO COCOANUT GROVE vILLAC7h `CC)UNCIL. ; . PPROV i :RE(al.IEST: OF COCOANUT GROVE, VILLNoE .COUNCIL 'CHAT, MIA:MT- DADE COUNTY" SURI'slWISOR".OF ELECi'IONS PLACE SLATE., Ola CANDIDATES FOIA:; ELECTION.: AS . MEMBERS TO COCOANUT' GROVE VILLAGE COUNCIL ,,;AT APPROPRIA`T'E PRECINCTS ON NOVEMBER. G, -2001 CITY LECTION BALLOT; CONDITION SAID APPROVAL`UPON COUNCIL;;1).PA),'ING,,fAI,L ELIrCTION, COSTS, PRIOR 'TO°ELEC'.11ON, AND 2) 1VIF1?TING; ALL;CRI*rERIA SET BYSUPERVISOR, QF ELECTIONS. Vice Chairman Gort: All right. Let's ga. Carlos Gimenez (City Manager): Thank you, Mr. Chairman, Before %ve begin, first I'd like to thank the mcnibcrs of the comlllitteC: that pill their time and effort to review Lill the proposals and conte up with recommendations. I think tiley did an outstanding .job, and I'd personally like to September 17, 2001 • 0 thank them. Also, I'd like to thank members of the staff that have worked under a tremendous timeframe and constraints, and 1 think have put together an excellent work product and got us to this point at this time. I'd like to sec if I could get the City Attorney to give a description of the UDP (Unificd Developincnl Project) process. Alejandro Vilarello (City Attorney): Commissioners, at this point in the process, the Manager has communicated his recommendation to the City Commission, together with the reports of the committee and all the information gathered by the committee. The Commission has, at this point, an opportunity to review that act and approve the ;Manager's recommendation by affirmative vote of its members. in the event that you do not accept the Manager's recommendation, you may reject all proposals or you can seek direct recommendations firom the Review Committee, which will then make; a recommendation directly to the City Commission with regard to this project. Alto you •- if you should take that course of action and you return this to the Review Committee for a recommendation, then whatever the Review Committee recommends, you can approve by ail affirmative vote of the City Commission, or rgHct any reconlmcnclations to the Review Conmlince or reject all proposals. in any event, at this point in time, however, I do want to alert you to the fact that we arc on a short timeframe, with regard to the referendum question. I believe tomorrow is the last clay that the County will accept any referendum questions presented by the City Commission. Vice Chairman Gori: Let nle ask a question. Do WC also have the COC(llltrt Grove Special Election here today? Mr. Vilarello: Yes. 'That's -- a special meeting has been called for that purpose. Vice Chairman Gort: OK. Ilow many here -- how many individuals are here for the special meetings, the Coconut Grove and the charters? The Coconut Grove Village Council. I gLIess everyone is here for the most important. Let's go with die first one. Commissioner ,reele: I didn't understand. What did you Say, Mr. Chairman? Vice Chairman Gort: (REPLY INAUDIBLE). Commissioner Teele: Mr. Chairman. Vice Chairman Gorr: Yes. Commissioner Teele: May 1 understand the order of the day, please? 11 was my understanding that this meeting was convened for the purpose of discussing two separate (terns. One relates to the Watson item, which appears to be properly oil the agenda. .Items I — 1, 1 and IB. And the items relating to the instructions to the Clerk of Mianli-Dade County regarding the ordering of the ballot. Mr. Attorney, are those the two resolutions or the two call items that we voted upoll? Vice Chairman Gort: Yes. 3 September 17, 2001 Mr. Vilarello: Yes, those are the two items. And then there was an additional one called by the Commission, by submission to the City Clerk, for the call of the Coconut Grove Village Council election oil this ... to be placed on the ballot in November. Commissioner Tcelc: So, that's on this agenda, as well? Vice, Chainllan Goll: Right, Mr. Vilarello: Well, it's -- yes sir. It was called as a separate special meeting, starting at 9;45. Commissioner Tecle: All right. So, we have two separate items on this agenda, and a second SpCCiHI Co1111111SSloll 111CCting 011 the Coconut Grove Village Council? Mr. Vilarello: Yes, sir. Vice Chairman Gort: That is correct. Commissioner- Teele: All right. Thank you. Vice Chairman Gort: All right. The reason I MIMI the. question, "how many people were here," because this - we know this is going to take it loth; linic. They ought to be sort of short, and it' there was many people here, we would lake that item first, but since there are not that many individuals here, we'll go ahead and -- C.ommissionel- Teele: Mr. Chairman? Vice Chairman Gort: Yes sir. Commissioner Teele; I would move that we take up the Special Commission meeting called 1'or 9:45, and dispense with that .item. Commissioner Winton: Second. Vice Chairman Cort: It's been moved and second. Any further discussion? Being none, till in favor, state it by saying "aye." The Commission (Collectively): Aye. 4 September 17, 2001 LJ • The following motion Nvas introduced by C'.oll missloner Tc6c, who movcd its adoption: MOTION NO. O1-969 A MOTION TO CONVENE SPECIAL MEE'T'ING IN CO)NNF,CTION WITII 131WPOSAI, TO PLACE ON THE NOVEMBER G, 2001 BALLOT A SLATE OP CANDIDA"rES FOIL I L:I CTION TO '1'1-11 COCONUT GROVE VILLAGE COUNCIL. Upon biting, seconded by Commissioner Winton, the motion was passed and adopled by the following vote: AYES: Vice Chairnum Wifredo Gort Commissioner Tomas Regalado Commissioner Joe Sanchez. Commissioner Johnny L, Winton Commissioner Arthur E. NAYS: None. ABS ENT: None Mr. Vilarello: And there is a resolution placing the Coconut Grove Village Council election on the November 6"' ballot. coni lllssloner willlon: So 111ovcd, Commissioner Teele: Second, Mr. Chairman. Commissioner Winton: It's been movcd and second. Any discussion? Being none, all in -- Commissioner Tcelc: Would yogi 1ISI( the Clerk to read the iteral into the record, please'? Vice Chairman Gort: Read it. Walter FOCIM111 (City Clerk): .lust 11or the record, 1'ln reading liom last year's resolution. 1 don't have it -- Mr. Vilarello: Here, I've got this year's resolution. ,4t this point, the City A ttornev rend the resolution into the public record. Vice Chairman Gort: Any discussion'! Being nolle, all in favor, state it by saying "ayc." The Commission (Collectively): Aye. 5 September 17, 2001 The following resolution was introduced by Commissioner Winton, who moved for its acloption: RESOLi1TION NO. 0 1 -970 A RESOLUTION OF HEMIAMI CITY COMMISSION APPROVING THE REQtJI.'sS'f OF TIT COCONUT" GIZOVE VILLAGE COUNCIL TIIA'.l' THE MIAMI -DMF C.OUNITY SUPERVISOR OF ELECTIONS PLACE THE: SLATE OF CANDIDATES FOR ELECTION AS MEMBERS TO THE COCONUT GROVE VILLAGE COUNCIL AT THE APPROPRIA'T'E PRECINCT(S) ON THF NOVI MBFR (i, 2001 CITY Of, MIAMI ELECTION BALLOT: CONDITIONING SAID APPROVAL UPON THE COUNCIL. 1) PAYING ALL APPLICABLE I:I.i:CTION COSTS PRIOR TO SAID ELECTION, AND 2) ME PING ALL CIZITFRIA Si.T FORTH BY SUPERVISOR OF EL (Here follows body of'resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Conmrissiorter 'I*Cele, the resolution was passed and adopted by the following vote: AYES: Commissioner Tomas Regalado Commissioner .Toe Sanchez. Commissioner Johnny L. Winton Vice Chairman Wifi•edo Gort Commissioner Arthur E. Teele, ,Ir. NAYS: None ABSENT: None Commissioner Teele: Is that a unanimous vote, Mr. Chairman? Vice Chairman Gort: Yes. 6 September '17, 2001 3, (A) APPROVE MANAGER'S , RECOMML-NDAMN AND ACCEPT PROPOSAL.' SUBMITTED BY FLAGSTONE.;PROPERTIES,,,LLC EOR UNIFIED.:DEVLLOPMEN'T-,OF MEGA YACI-iT M.AR1.I`TA: AND. 4AR1NE FACILITIES l'IS.14MARKET, HOTELS WITH. TIMESHARE UNITS, CULTURAL. AND � EDUCAI'1ONAL FACILITIES IL CLUDING' MARITIME MUSEUM AND PUBLIC GARDE NS, RESTAURANTS, RETAIL, ANZ SUPPORT FACILITIES SUCH AS OFFICE ANLI�'PARKIXTG ON 10.8 ACRES ,OF CITY OWNED WATERFRONT PROPERTY LOCATED ON WATSON ISLAND ANu 13.4:,, " ' . :1z , `LAND; -PROVIDE T IAT ;SELECTION _,OF" ACRCS OF. ADJACENT SUI3MI.li.GED !FLAGSTONE PROPERTIES, LLC DOES NOT C,.ONFER`CONTRACTUAL RIGHTS 'UPON PROPOSER, UNLESS THERE HAS BEEN FfIVORA131;E VOTE.; BY ELECTORATE; DIRECT CITY ATTORNEY -'1'U PROVIDE WRITTEN rXI'LANA ION REGARDING MINORITY BUSINESS POLICY ,RE.QUIRED UNDER CITY OF MIAMI: CODE SEC. 2-696;, 13,1RC'CT'1NG THAT ANNUAL- REVIEW BY COMMISSION Or;.' SAID POLICY •BE CONDUCTED.,' (13) DIRECT G[TY �1'I"1'ORNEY TO PROVIDE WRITTEN EXPLANATION REGARDING MINORITY BUSINESS POLICY REQUIRED:`FUNDER CIT)".-OF MIAMI'' CODE SE-C. 2-696; DIRECTING THAT AN.N,UAL,REVIE,W BY. COMMISSION .Of' SAID POLICY 13ECONDUCT1'ED. Vice Chairman (.fort: OK, You're oil. Dena Rianchino (Assistant City Manager): Good morning, Commissioners. This is Dena Bianchino, Assistant City Manager for Planning and Development. I'd just like to say how excited and happy we're here -- to be here today that we are. This is ail important and exciting step for the City of Miami, as it represents the first major development of City property in a new cra of professionalism and development OLIO-eaCll, as evidenced by the Miami Development Sunlmil of April 2001. The City Manager has thanked staff for their efforts in this process. I would specifically like to name the staff that was so hard working and did such it Treat job on this process Arleen Weintraub, Acting Director of ]teal Estate and Economic Development, Dianne .lotlnson, Development Coordinator/Real )~state and Economic Development, Alejandra Chong, Real [,;state, Pasha Cardin, Real Estate, Vanessa Morales, City Manager's Office, and, most particularly, 'Meredith Nation, who served as the Project Manager for this project and worked so diligently to communicate Under the collo of silence, all the rCClUt1-C111CI1tS and Changes that came up in this RFP (Request for. Proposal), The I1DP (Urban Development Project) process, as we face it, is much different than any bid process that the City goes through, It is more complicated. We are asking to obtain ti•om the private sector an integrated package of proposed improvements to the property, including planning, design, C011SWtiction, leasing;, and management. If someone is selected today, they will be a partner with the City of Miami. We will work closely with thein on the permitting process, We will work with then] in terms of meeting your goes and objectives for Watson Island. The property being discussed today involves ten point eight acres of upland and thirteen point four acres of submerged property. The upland is primarily zoned commercial, so it is appropriate for development. As you know, you specified that a moa yaclit marina and it fish market be required uses, 'There are many other allowable uses on this property; Recreational, entertainment, educational, cultural, marine fiicilitics, convention, hotel, office, retail, parking and support fllcilitics. Public purpose and Scptemhcr 17, 2001 public use were mandated to be strong and integral components of the project. I just want to take a brief moment and go through with you the chronology on this project. Before the RFP was issued, staff met three times with the Waterfront Advisory Board to get there input into this process. In addition to that, Robert Parente, who is will) us today, was a member -- he's Chairman of the Waterfront Advisory Board, and he was also a member of the Review Committee, In December of 2000, you authorized us to issue the lZFP, including the directive that a mega yacht marina be a required use. in February of 2001, the RFP was issued. On May 10, 2001, a directive was given to us that a fish market be included as a required use. On May 24°', the deadline for receipt of proposals was extended until .July 16"1 at the request of a proposer, At that same meeting, you scheduled a special Commission meeting Ibr today for consideration of the City Manager's recommendation on the proposal. On .July 16"' three proposals were received by the City Clerk. In .July and August, our consultants, staff and the Review Committee worked very hard to review the proposals, and we are here today, at a public hearing, to discuss this issue. Copies of all the proposals and videos of the presentations were sent to your office for your information and l hope you had the opportunity to look at them. Just want to take fl minute to -- one filial thing. If this is approved today, we would immediately start doing two appraisals because the first thing that we recd to determine is -- that we're getting fair market value fair the property. That would be our first step. We would then would then negotiate a lease with the party that was chosen, and they would have so go through all City processes, including the Major Use Special Perntit, any special permits (hat would be required to do this prl.ject. We would work very closely with the proposer to get the proper approvals for a mega ,yacht marina. The way this agenda is going to go is as follows: After l am finished, which is about in two nlinUte:5, Craig RObil1S, who is Chairman of the Review Convnittcc, will give you a review of the committee's deliberations. After that, Scott Berman from PricewaterhouseCoopers will talk about the financial aspects of the proposal Then, Barry Abramson of Abramson and Associates, who is our real estate consultant, will talk about the return tier the City from the different proposals, and he is here, via conference call from Boston. The City Managcr will then give his recommendation, and then you will see a presentation by (he recommended group. At this time, I'd like to ask Craig Robins to present the committee's deliberations. Vice Chairman Gort: Commissioner Teck, you were not here at (Ile time, but what I requested, if it's all right with the members, let's hear the lull presentation. Any question that WO have, that we could write it do\vn, and then, at the end of the presentation, we'll ask the questions. Comnlissiol)er Teele: I'm in agreement with that, Mr. Chaiman. May I ask, before the presentation start, of the City Attorney, two questions? 1 need to understand the parameters. Nun)bcr one was a legal opinion provided to the evaluation committee or file City Manager regarding the so-called public use and the restrictions relating to the Watson Island as contained in the transfer of the land? Alejandro Vilarello (City Atloniey): In terms of a formal legal opinion... Commissiollor Tcele: Formal or informal. ik1r. Vilareilo: No. No formal legal opinion was provided. September 17, 2001 Commissioner Teele: Was an informal legal opinion provided'? Mr. Vilarcllo: The reviewed approval of the RFP in the process of legal sufficiency incorporates those issues. So, the answer is yes. Commissioner Tcele: At the end of the Manager's presentation, would you and your staff be prepared to comment, with some degree of specificity, regarding the deed restrictions or the use restrictions related to the Watson Island property, in the context, as we've discussed, say the land in front of Monty's and others their'S -- these SO-CailCd public use restrictions. And, secondly, was the criteria that the City Commission, used in terms of the scale, the scales that was used by the selection con1111r1lec? Mr. Vilarcllo: The scoring? Comillissionel- Teele: The scoring. Ylr. Vilarcllo: Was it that which was approved by the City Commission? Commissioner Tecle: Yes. Mr. Vilarello: The RFP itself wits before the City Commission, and was specifically approved. It was in tile... Commissioner'.I'eele: No. I'm talking about the selection committee, the scoring. Mr. Vilarello: That was part of the RFP, specilicall,y. Commissioner Teele: Thank you. Vice Chairinan Gort: OK. Yes, sir. Thank you. Craig Robins: Thant: you; Mr. Vice Chairman, It's an honor to appear before you and to have had the opportunity to represent the citizens of the City of Miami, along with the City Manager and you in this process. You probably hear a lot today, but in every meeting our committee always ended by commending the staff. Your staff really dill an oulstanding job, is a member of the private sector, I must say that I'm extremely impressed and was, in fact, warned Lhal I better not try to hire anybody [coni the team. They were exceptional. That the entire committee of five City stall members, which include Steve Bogner, Javier Carbonell, Linda Haskins, Bob Nachlinger, and Enrique Nunez is here today. In addition to live out of the six private sector members, Fred Burns, 'fool Carroll, John Hall, and Robert Parente are here, along Willi myself, Only Adolfo Lnriquez, who had to be out of town, could not join us. We engaged in a very serious process of looking at all of these proposals. From the onset, it was clear that there were three outstanding developers. Each project had very interesting attributes. Unnolably, it was wonderful that a company of the importance and financial strength of Ripley's was willing to join in on a bid. We also saw an extraordinary architectural design by the Watson Island partners. 9 September 1 7, 2001 Willy Bermello did an outstanding job of designing the building, but our job was to get more into the details, and as we got into the details, i think it became apparent to the committee -- and the vote reflects that -- that when considering the overall plan and the design of the developments, which was a large part of your criteria, the feasibility of management, operations of the development, and the return to the City, even after including what was a week minority participation oil the pati of'Flagstone, it was clear that in each of those categories, Flagstone was the superior proposal. Sonle of the highlights, which were not voted on, but of the project, the use of two five-star hotels, the integration ol'retail and food and beverage into the site, the fact that they complied with the basic requirements that you had, the commitment to management, the financial stability of that organization, all pointed towards choosing thelll. Overwhelmingly, our committee was motivated by the one arca where there was extreme difference, and that was with the financial return to the City. Ill the analysis were there where different (UNINTELLIGiBLE), depending on how you looked at it, the Flagstone proposal was at least two times superior economically to the other proposals, and I would say that that was the largest factor of motivation. We recommended unanimously -- well, one member of the committee dissented and the remaining 10 mcnibers unanimously voted for Flagstone Partners and recommended that the City Manager thereby make that recommendation to you. There was no ... Commissioner Winton: What was the vote again? Mr. Robins: It was 10 -- 10 -- one abstention, and the remainder of the committee unanimously voted for Flagstone. Commissioner Winton: And how many members was that? Mr. Robins: Ten. There is a committee of eleven; live City staff members, and sig: private sector members, and five ofeach group voted in favor of Flagstone. There was one abstention. We also recommended that the City Manager require that Flagstone address minority participation issues. We were not satisfied with that component of the proposal, and we asked that part of his recommendation to you, and critical to our approval, was that that be better addressed in the 011going negotiations. We also highlighted that tilt business deal that was offered by Flagstone should not in any way be reduced, that we felt that the City Manager, perhaps, could improve It 111 subsequent negotiations, and better the economic deal, but that that - while it wasn't the sole component that lead LIS to OUr CUIICILISi011, it was it critical one, and were theI'e to be all attempt to reduce ltle financial raturn to the City, the committee !flight have looked at these proposals differently. Also, since I assumc it's going to come up today, there was -- one of the committee members had a major issue, in addition to other smaller issues about minority participation. While I don't want to put words into that committee member's mouth, lie felt that the entire matter was before us unlawfully because you cannot consider minority participation since one of (lie groups that was identified in the minority participation is no longer a minority in the City, and there's a whole legal argument for that. We, as it committee, felt that we understood your desire of otic consideration of that criteria. We feel that that criteria is important to this kind of process, but, in order to just safeguard the process and ill case that colllpollent Of the decision making were to be subsegllNlltly stricken as a legal matter, we addressed it both ways, and we felt that the Flagstone proposal was superior, both Nvith that consideration and without that consideration. And, so, to the extent that there is a legal issue, at least we're 10 September 17, 2001 endeavored to cover it. I don't really see a particular need to take anymore of your time. If there are some particular questions, virtually, the entire committee is here and I'd be happy to address then]. Vice Chairman Gort; 'Thant( you. We'll be taking notes and we'll be asking the question at the end of the presentation. Who's next? Scott Berman: Mr. Vice Chair, members of the City Commission, Mr. Manager, ladies and gentlemen. My name is Scott Berman. I'm a partner with Pricewat.erhouseCoopers, resident here 111 .Miami, 200 South Biscayne. On behalf of Mr. Manuel Garcia, partner with Ground Company, our minority qualified partner in this engagement, 1 am delighted to stand before this Commission to offer, in sun]nlary .form, the results of Our frill's Work over their fast 45 days or so. Before I move into the balance of Illy remarks, let nlc first acknowledge the Work of Craig Robins and the Review Committee. In making their recommendation to the City 110anager, this committee have a very difficult. tisk. Three qualified applicants presented three innovative, professionally laid out, incredibly different proposals in almost every respect. Concept, design, product use, the marketing and operational plans, the cash flows, and the returns to the City of Miami. Barry Abramson, Who is with us by phone today, Will comment in a moment on the financial returns to the City. Our mandate at PricewaterhouscCoopers Was not to make a recommendation, but rather to validate and verifv the information supplied by the applicants in their proposal submissions. Our advisory services to the City deployed a multi task approach. First, PricewatcrhouseCoopers investigations practice undertook background checks on each principal applicant and their partners with a five percent greater participation. These checks identified any civil and criminal litigation history, and recorded personal defaults or bankruptcies. Additionally, we verified lclaers of reference by the applicants. 1 am pleased to report to this Commission that; based on our best efforts checks or the applicants and their principals, PricewaterhouseCoopers do not. identify any permit issues related to bllsil]Cs5 operations that should prejudice the City in their further consideration of any of the applicants. With the City's authorization, we did undertake a supplemental investigation of the principal applicant of the Flagstone proposal. Mr. Mcbmet Bayraktai, after identifying potential litigation in 'Turkey, during the course of our normal checks. Let me state:, unequivocally, that our best efforts review of the information in Turkey, as of the date of our study, determined that Mr. Mcbmet Bayraktar has not been named or indicted in any litigation. Therefore, we advise the City Manager that we were satisfied that the City could proceed) with this applicant or any of the others theirs. Our principal mandate on behalf of the City was to assess the market analysis provided in each of the tlu•ce proposals, including the verification of market assumptions, the evaluation of facility programming, and an evaluation of the economics in each, including an analysis of the projected cash flows, and a verificatiotl of the revenues and expenses, in the three proposals, seven different major uses were presented that, as submitted, had some ecollonlic bearing on project returns. These seven, hotel, time share and fractional ownership, marina, retail ill restaurant, aquarium, and marine expos, were the fucal point of our Work program to provide the City guidance that the uses presented are market supportable, the corresponding revenues, expenses and operating forecasts are reasonable, identifying any cases of overstatement, and that the (level opment costs are reliable. Then relying on our input, Mr. Abramson developed a straightforward sensitivity grid, which he will present in a moment, discussing the returns to the City. Our final report Was submitted to the City Manager on August 1 I September 17, 2001 30"'. With a critical eye, we have determined that the market support and accompanying cash 170ws for Flagstone and Watson Island partners to be deemed reasonable. Ill both cases, each exercised their developer's prerogative, which is not unusual in a competitive bid process, whereby PricewaterhouseCoopers deemed certain assumptions, within few of the proposed uses, to be somewhat aggressive, but nonetheless, let mr, emphasize not overstated to the point that impaired the integrity of the hid. Ili the case of Swerdlow Marine Partners, PricewaterhouseCoopers was restricted in its ability to carry out its full mandate. Given the limited market analysis that the proposed uses that would be subleased by the master tenant, Swerdlow, particularly, the marine expo facility. With regards to the proposed aquarium use, while (hero was limited data presented, PriceNvaterhouseCoopers considered the commitment to develop a handsome attraction by the subtenant, Ripley's, in their representation to sign a long- term lease, a positive; indicator. As Mr. Robins has just testified, the Review Committee is recommending the flagstone group to the Manager, so let ine spend a few minutes reviewing our findings related to this proposal. Flagstone is a property development company formed by the aforementioned Mcbmet Bayraktar, who is the chief executive officer and chairman of the board. Other members of the board include Mr. Sherwood Weiser, and Eric R. Kuhnc. A major component of the Flagstone's proposal consists of two chain -affiliated hotels, totaling five hundred and twenty-five rooms, and over two hundred and twenty thousand square feet of retail and restaurant space. A 54 -slip mega yacht marina, a fish market, and extensive theme gardens are included, to be rolled out in the year 2005. In terms of the master plan, the proposed uses a1lpear well programmed and thoughtfully Conceived, creating it new self-contained destination for Miami. Still, the applicant is committed, according to the representations, to setting aside 60 percent of the footprint for public access. The operating procedures, and the management plan presented were very thorough for a project at this stage in the development cycle. Though there's still work to be done in securing the hotel companies, high quality restaurant tenants, and upscaled retail operators. The development casts of two hundred and eighty-one million dollars (5281,000,000) is consistent with a project of this sire and magnitude. And as ,you will hear from Mr. Abramson in a moment, F'lagstone's proposal with respect to the anticipated return to the City, sits in first position, even under the most conservative scenario. One subject that Pricewa(erhouseCOopers was asked to assess was the development entity's financial strength and financial capability. In the ease of Flagstone, we can report that. this applicant appears to be creditworthy, having no record of bankruptcy or defaull. The applicant is proposing to take a 40 - percent equity position, totaling approximately a hundred and twelve million dollars ($112,000,000). ]'lie balance in the forward debt, approximately a hundred and sixty-nine million, is expected to be raised through sophisticated investment and banking institutions. 1 cannot stand before you and guarantee you that Flagstone will be successful in Carrying Out their financing plan. But as an advisor who has performed his share of due diligence on integrated real estate projects and as a former hotel developer myself, there is comfort in knowing the following: The Flagstone proposal, in its totality, is a very professional and thoughtful document, which is presentable in its current form, to the sophisticated investment community. Second, several of its board members have docurnented and proven experience in developing hotel, retail, and other leisure assets, which are the principal uses in the Flagstone proposal, And, third, this applicant has hired some of the best third party advisors, lawyers, architects, and specifically, financial consultants, who have the ability and the track record to identify sources of money. In closing, let me thank you for the opportunity to advise the City of Miami on this precedent setting real estate development for Watson Island. We were honored to be selected, 12 September 17, 2001 • 0 and thank the Manager and his staff for their unyielding effort to assure that we produced tile highest quality advice. Let me turn it over to our consultanting colleague, Mr. Abramson, who's grounded in Boston to give you an overview of the return to the City analysis. Barry Abramson: Thank you, Scott. Ain I on? Mr. Berman: Yes. Mr. Abramson: This is Barry Abramson of Abramson and Associates. I'm sorry I can't be with You in person today. I hope you'll understand, obviously, given the situation we have. Scott, very well S1i11111lari%cd fhc analysis that Coopers Priccwaterhousc (sic) has performed relative to the viability of the project. The charge that I had was to assess the projected financial benefits to the City of the various proposals. The primary financial benefits were tile. lease payments, obviously, as well as key potential tax revenues that would be garnered by I -lie City, and that would be the City share of real estate tares, and the other major source being Hotel i'oorn tax, the City's share of hotel room tax. We did not assess other revenues that went to other government entities. Our analysis, as Scott has indicated, came out strongly indicating that the Flagstone Property's proposal, by far, provided the best projected return to the City on -- in terms of its real estate revenues, in terms of the lease revenues, as well as over overall. You probably have a summary sheet up there on the screen, which shows the Ivey elements of the lease proposal. I won't burden you by going through that again. You've read it. But, it's clear that flagstone Property is proposing the highest guaranteed rent. It's also proposing a substantial participation rent. The real estate tax revenues and hotel revcnucs are also projected to be quite strong. "The numbers that you see, perhaps at the bottom of that analysis, are present values under very widely diverging scenarios of risk that you would attribute to those income streams. You know, we provided that, and in a very detailed breakdown of that, which you have in your packages, in order that people could make their own assessments of the projects and the various components of tile. project and of the revenue stream, but I have to say that given Scott Berman's presentation for the area that he Nvas responsible lir, which would be market and economic viability of the project, I think you have to consider that if the project is viable, and has a reasonable likelihood of providing the income streams projected by the developer, then you would have to go with the high end of the range that you're seeing for any proposal where you have that belief. So, in the case of Flagstone Properties, we would project the present value of those income streams to be up in the seventy million dollars ($70,000,000) range, and even if there were sonic concerns about maybe making their financial projections, which would impact participation rent, for some components, like the retail or restaurant component, it would Still be substantial. It would still be up int Seventy million, perhaps, not SeVCilty-tIlrCC Or SCVC11401,11' Million. To give you a little bit better feeling for this, on a basis other than present value because I know that's something that, you know, can be a little bit confusing for sonic folks who aren't financially oriented. i like to mention that, if you just look at a single -- a couple of single of points in time, the 1*1agstone's property proposal is providing, let's say, in the year 2005, the first operating year, a base rent of two million dollars ($2,000,000) and if you go out to 2010, which would be approximately tree sixth operating year, the guaranteed fent has climbed to two point three, million, and there would be an anticipated three to tlu-cc point four million dollars ($3.4 rnillion) of participation rent and real estate tax and hotel tax in that year, would be over five million dollars ($5,000,000). And if 13 September 17, 2001 there are any further questions oil this proposal, you know, certainly we'll be happy to answer those as we go forward in this session. Thank you. Vice Chairman Gort: Thant: you. Carlos Ginnenez (City Manager): Mr. Chairman, members of the Commission, as enumerated in my September 1 1 `}' mento, I concur with the findings of the Evaluation Committee, and I also will be recommending and l do recommend that Flagstone Properties as the developer for (INAUDIBLE). ;its. Bianchino: At this time, Judy Burke, Sehutts & Bowen, who is the attorney for the Flagstone team, will introduce the various tear members to you and they will give their presentation. Judy Burke: ,Mr. Vice Mayor -- Vice Chair person, Commissioners, Mr, Manager, ladies and gentlemen. My name is Judy Burke. I'm an attorney with the law I111n1 of Schults & Bowen. 1 work out of the Miami office as head of the firm's land use practice group and I overlook Watson Island. I was privileged to be asked to join the international development team assembled by Flagstone Properties, to respond to this unique opportunity. Bcfore introducing the Incredibly talented members of the learn that conceived and developed Island Gardens, I would like to take a moment to express our team's appreciation to certain people who got us here today. Our sincere thanks to Craig Robins and the nnembers of file selection committee, which included many prominent and dedicated members of the business community, as well as City's staff. We appreciate the many hours they spent reviewing these three proposals, holding public meeting, asking questions, collecting data. We thank them all for their enormous efforts, and, of course, for their endorsement and support. We'd like to thank the City's consultants, specifically Scott Berman and his team From PricewaterhouseCoopers, and Barry Abramson of Abramson and Associates. They did an excellent job on behalf of this City in analyzing both the development teams and the proposals. We also would like to express our appreciation to the City's administrative staff. First of all, for producing the Most comprehensive request for proposal I think that's ever been produced for a project in South Florida, in particular, like to thank Dena Bianchino, Arleen Weintraub, Dianne Tolinson, and Meredith Nation, who ran this process with tic highest degree of pro('essionalism, worthy of this great City. And, finally, our thanks to City Manager, Carlos Ginlcnez, for bringing this project before you today and for his words of encouragement and support. Now, to the development team. It was in March of this year that Mcbmet Bayraktar came into my office and told me he wanted to create a world-class mixed-use prciject on Watson Island. He recognized Watson Island as a jewel of Miami, and set about, assembling a team From the lour corners of tine world that would be worthy of this location. Mebnnet pioneered the mixed-use development concept in Turkey and is the developer of a one thousand -berth five -gold anchor illarula in the suburbs of Istanbul, and, so, he assembled the Icam. And who better than Eric Kuhne to provide the concept for this project Eric and Mcbmet had worked together in the past. Eric currently works out of both his New York and London offices, and is dedicated to the reintegration ofarchiteclure, landscape, and civic arts. Two of his Most retlowned illixod-use projects include Darling Park, which is Australia's largest waterfront development, and Bluewater, the most successful retail-USUred destination in Europe. Eric rvill speak to you today, both in his role as concept architect, and as a principal and a mcinher of the 14 September 17, 2001 board of Flagstone. And I am thrilled to say that Laic is with us today. Lric was in London last week IOr file grand opcning of one of his latest mixed-use projects. which was a great success, and lie anticipated traveling back to Miami last Tuesday. When the airports finally reopened, he fried every conceivable travel connection to get }tack here, with no luck, and I thought we'd have to go on without him. But yesterday afternoon Ile was able to get a flight in to Orlando and drove to Miami last night, and he's here with us, and I'm so glad that you will be able to liear about the concept directly frotn the mouth of its creator. I would like to now introduce the wonderful architectural firm of Spillis Candela/DM.IM. That is where tile initial concept that was turned into a reality, and the actual plans that complied .with City and County COdCS Was CITated. Tile Firm of Spillis Candela has been in existence. since. 1926 and I'm sure it needs no introduction to this Commission. Spillis and Candela is well known for the design of Bayside Marketplace, the Colonnade, and the renovation of the Eden (roc Hotel. Although many tine architects in that Grua were involved in our effort, I am very pleased that Julio Grabiel is with us today to make the: presentation. Also, on the creative side, the team searched fora landscape architect who could do justice to the garden architecture, which is Eric K.uhne's specialty. Edward D. Stone, Jr. and Associates, otherwise known as LDSA, agreed to join the team. EISA has a 40 -year reputation for dealing with complex projects in such Areas as hotels, resorts, attractions, and Ccotourisnl. F..DSA was responsible I'or the landscape architecture at the Atlantis resort and harbor in Paradise Island, for the Bal Harbour shops, and the shops at the Falls. Paul Kissinger from the IDSA has been with the development team Ii•onl its inception and i5 1101•C with LIS today. OfCOUrse, 1 started with a sizzle. However. Mehnlet, when lie Iornicd the team, recognized that in order to develop a project of this magnitude, he would need to engage the highest -level development management firm in the area. Jones Lang LaSalle. It's a real estate service and investment nlanagenicnt firm with business in one hundred markets in five continents. The firm is listed in New York Exchange and currently has seven hundred million square feet under management. Mebnlct had worked with Jones Lang LaSalle and other projects in Orlando, and based on that experience, he invited them to join the team. This word first, l would like to introduce Jeff Robins, who is our chief numbers crunchers, and also with us from ,[ones Lang LaSalle is Gregory Rumpel, Senior Vice President of the hotel division, and lie can answer all your questions about our fabulous hotels. Ill fOl•Illing; till,' teilnl, we knew that one specific area would be absolutely essential. We needed to engage a traffic Cngincer with a complete understanding; of the Miami arca, and our need to make the project truly accessible to the public. We were pleased that David PI LI Ill MCI', Of' David Plummet- and Associates, agreed to join the team. In order to fully understand the cost structure during the design period, Mcbmet bought Beers Construction Company onto the development team. Beers was founded in 1905 and is headquartered in Atlanta, Georgia. It has 1 l offiecs tllrOLI ,'llOUt the southeast, with offices in `Pampa, Orlando, Jacksonville, and North Pahl Beach. David .BRIS11 of .loncs Lang LaSalle worked the numbers with Beers and is here to answer any questions in that arca. Having built a orle-tllousand-slip marina, Mcbmct knew how important it was to pet the right marina operator in order to secure the coveted, five -gold Anchored designation, which is proposed for this development. Mebmel contacted Camper & Nicholsons Marinas Limited. This is the United Kingdom -based marina operator that has been in the loreiront of the international lnarilia development since the 1960s and has worked on ]nixed -use projects in 20 different countries. Sinton Errol, of Camper & Nicholsons, flew ill from London for the presentation before the sclec:tnon committee, and, of course, he intended to be here today. Like Eric, his flight was canceled and, tinflortunatcly, lie was unable to make alternative arrangements, but Sarah Montefiore frolli Camper's 1~t. Lauderdale, office is with las 15 September 17, 2001 • 0 today, and her team is prepared to answer any questions on the marina. Also, with us today are representatives of our cultural partners, Bruce Greer, president of the board of trustees of Fairchild Tropical Gardens, and Andy Bryan, the CEO (Chief ExeelrtlVC Officer) of the historical Museum of Southern Florida. The last member of our development team and a board member of 1-1agstone Properties is Sherwood Weiser. lair. Weiser, known as "Woody" in the Miami community, is chairman and CEO of the continental companies. Over his thirty-year career, .Mr. Weiser has developed or operated more than one hundred hotels. In addition to his expertise in the hotel area, Woody brings to the team his experience and insight into the Mianli community, which he has served as a leader for so many years. i would like to ask Woody to come forward and address the Commission. Thank you. Sherwood Weiser: "Thank. you, Judy. Mr. Vice Chair and Chairman of the Commission. If you'll allow ale a personal thought for a nlonlent. 'i'lie Iasi time l was in this building was some 22 years ago, believe it or not. I. came to appear before the Commission to secure condition to build a hotel across the street called the Grand Bay Hotel. And I must be honest with you; 1 haven't been back since that time, although I know sonic of you have visited. We're across the street. Vice Chairman Gort: Mr. Weiser, you're very well known to us, but could you please give us your name and address again, please. Mr. Weisel: OK. Woody Weiser, Sherwood Weiser, 3250 Mary Street, Miami, Florida. .fust permit nlc one more reminiscence, if you will, and that is that when which opened the Grand Bay Hotel across the street, there was a beautiful gas station sign that showed [icon oil It, said the City of Miami, and that was always something that I said that needed to go. So, today the two signs that you sec in front of this drive conning up are signs that our company placed there because we thought it was appropriate. In any event, to the matter before you. Just to (INAUDIBLE) bit of history and how I became involved in this project. I had the opportunity to meet Mr. Bayraktar through a very close personal friend of mine , a Frenchiiian, who is the largest developer of retail space in Europe, and after having nlct Mr. Bayraktar, the realization, which had been around Cor a long time, that. tllis C01111111rllity has never really utilized its waterfront in the manner both civically and business wise, that was appropriate for a City that i thought certainly should be one of the preeminent waterfront cities of the world, but if ,you look at Europe, and what they've been able to accomplish, I felt this community was far, far behind. When I met Mr. Bayraktar, I was incredibly impressed with his vision, with his thoughtfulness, with the trniourit of effort, time, and energy that lie had put into the proposed Flagstone project. i also had the opportunity through hint to nieet Eric Kuhne and as I went to London -- because I was very interested in seeing what Mr. Kuhne had done, i went to 131uewater -- I was totally captivated by what l think nlay be one of the pure genius design architects that 1 have met in illy career. I also had the opportunity to visit Mr. Bayraktar's properties in Istanbul. So, after that -- those ovents, I felt very comfortable in associating our company with this project. Our company, as I thitlk most of you know, we arc hotel developers, we're owners, and we're operators of various hotels. h1 this role today I'or Flagstone, we' play the role of the consultants for the hotel, conceptually; we will also provide technical services to the hotel, and once built, we will provide asset management for the hotels, and also I've agreed to serve as a director of Mr. Bayraktar's company, Flagstone. I think it's fair for me to say that the vision of' tile waterfront of Nlituni, both commercially and, of 16 September 17, 2001 course, my great interest in the civic development of this waterfront, I believe this would be an incredible asset to our community, and one that we could take our place, rightfully, with the rest. of the world, particularly, the world that is in the Mediterranean that l think we all, for so many years, have looked to as being the hallmark of what we'd like to see in Miami. So, I'm proud to be a part of it, and 1 hope that, in your deliberates, that you will consider this as, I believe, a brilliant plan for the conlnlunity. With that, lot the introduce to you Mr. Bayraktar, a good friend and someone 1 have greatest respect for. Mebmet. Mebmet Bayraktar: Good morning. Mr. Vice Mayor, Vice Chair person, Commissioners, City staff, City Chairman, selection committee members, and ladies and gentlemen. It was brick in last February— Vice ebruary— Vice Chairman Gort: Excuse me, sir. I need your name and address for file record. Mr. Bayraktar: I'm sorry. Vice Chairman Gort: 'Thank you. Mr. Bayraktar: My name is Mebmet Bayraktar, live in 506 Celebration Avenue, Celebration, Florida, It Nvas last Hcbntar•y where I got a letter from Mr. Gimcnez for this specific Watson Island RFP. As I read through it and looked through it, 1 knew exactly where Watson Island was because I've been coming regularly to Miami and area since 1978. And since then, I've seen Miami grow incredibly and became, and it's growing further to become one of the most incredible cities in the world. Not by its design and content, but it's becoming a melting pot I'or all these people all around. And myself, as a background in being -- lived in Europe, in my hometown, home country, and in U.S. for so many years, I see myself as a global citizen and a very good example of what is all Miami is all about. And naturally knowing the area and where I'm coming from, it was so exciting for me to consider taking a look at -- closer look at what was this RFQ (Request For Quali Gcation) all about, and I first walked into the site, City of Miami site and went through the process, I saw that this was very content, very well-done, very well Prepared RFP that I was so excited to go forward, and as Judy explained, 1 have carne back to Miami and sailed working on it and here we are today. And I'm honored to be presented by the selection committee because they have really clone a great ,job compiling all that beautiful, excited, three proposals that came by. And honored to be here and can't wait to go and get started. Because, as I explained, the City has great potential and it just tits perfectly with what we are doing and what we have done in the past. As I mentioned about this RFP, it showed what Miami wanted to do on this beautiful piece of real estate, and it shows that vision of the City, Mayor, Commissioners, and everybody who vote in this community, that they should wanted to have something very major and substantial built. So, all I have to do is create this -- stop creating or setting up establishing -- assembling this great team that we have now, and I would like to Put up highlights of what our proposal is all about. As it was explained by the City consultants, our project is being established by world class team of professionals, best land use and design, financial stability and capacity, and, of course, most importantly, may be best financial offer. Money is everything, but i would like to, as Eric will be complaining, going through the project anti the Content, I would like you to please take a look -- closer look at our 17 September 17, 2001 • public purpose and what we have tried to create as we were conceptualizing this project, and I'd like to introduce Mr. Eric K1.1111le. Please, Eric Kuline: Good morning. My name is Eric Kuhnc, i have offices in New York and in London. New York address is 50 Walker Street, in lower Manhattan, and I'm also -- my office in London is at 15G Street, in Clerkenwell. I'm going to move to the overhead projector for the presentation, and I think -- )'ill going to try to just sit this here. Can the volume be adjusted? Can everyone hear me OK? Commissioner Sanchez: Sir, can you state your name again. Mr. Kuhnc: My nanic is Eric Kuhne of Eric Kuhne and Associates, 50 Walkcr Street, New York City, in lower Manhattan, and 15G Street in Clerkenwell in the city of London. Commissioner Sanchez: thank you. Mr. Kuhnc: What I'm going to do is begin with the punch line first and conic back and visit it later. As Mcbmet said, what we're proposing is to create a mixed-use development that's going to retUrn a substantial revenue to the City of Miami. This draft here, which shows the projection of that revenue over the full 45 -year tend of the lease, shows two million a year as being proposed, with annual paynlents; a rnillion per year during the construction period. It also shows a one percent of gross revenues in the slight pink color here, began it to the base payments, and the top line here, which is a Civic Arts Endowment Trust, is an additional trust we v,1a111t to set up for the endowment of the public spaces oil the projects. And I'll conic back to this later. The point of this, though, is that over the course of the 45 -year length of term, there's a substantial amount of revenue poured in, as Barry Abramson had indicated during his telephone conference with us all, but we'll conic back to this towards the end. I think one of the most extraordinary tlllllgs for us, as we begin work on any project, is beginning to understand the expos of the community. All of you have witnessed Miami's growth over the past decades, into one of the most astonishing, international cities in _North America. The current investments that are happening within the characteristiCS of the leisure, components of Miami are astonishing. There is a remarkable investment that's currently going on, particularly held up by the duality of the Mandarin Oriental Hotel, the Four Seasons, which is about to open, and most recently, the spectacular opening* of the Ritz Carlton in Key Biscayne, that Woody Weiser was responsible for bringing to your coinnlunity. All of these things represent a massive shift in Miami's perception from the global markets. You see no", incredible interests, and we begun to experience this not only with hotels, but also retail and restaUratCllrs who illi sec Miami as the most advanced and innovative City on the eastern seaboard in North America. Its capitalizing on that massive momentum that you've started; that Mebmet Bayraktar assembled Woody and myself to begin to think about how to put together a mixed-use project that would be fitting to your community. One of our favorite shots when we look at the world today is this incredible aerial photograph of the Caribbean. All those points of lights, the concentrations of cities, civilization., conlinereC, trade, education, and enlightennlcllt. If you look at it on the global scale, the United States has the highest density of nighttime illumination of any country in the world. It's a testimony to the astonishing commitment that this country has towards innovation, entreprencurlalshlp, freedom of expression, and independent development. All of which you capsulized in the RFI', and all of 18 Seplernber 17, 2001 which we've tried to match in terms of our proposal. But something unique is about Miami as well. in (lie sense, as all of you know, with the massive growth of the airport, Miami's now the gateway, the international gateway, into the Caribbean and Latin America. All the undersea cable lines ritn through Miami. Almost all the principal shipping routes go through Miami. You are, in a sense, the gateway to the Caribbean and to Latin America, but also the way those parts of the world enter the United States, and as such, your position as being a leader, not just so much In America, but in this particular hart of the world's hemisphere is what makes potential of this mixed-use development to stand so well. All the data that came up -- and we don't have to even begin to go through our detailed research because every single constituent that we've talked to globally that is interested in either in investing, renting or operating a facility is pail of island Gardens, has all told us the same story. The inclusion of Miami now is one of the top 25 principal areas in the world says it all. You've lifted yourself as not Just to gateway citizens in Florida, but a gateway for the whole world to come into this continent. And the diversity of people that come through is astonishing. The mix of people from all continents around the world -- lurope, Canada, Latin America, South America, Central America, and the Caribbean -- is awesome, and it requires a special level of consideration in terms of investment and liliXCd-USC projects that is unlike anything else that's currently going on in the eastern seaboard. But, more importantly, what distinguishes Miami is, it is probably one of the most cosmopolitan, mixed race and ethnic communities anywhere in North America today. The freshness and the vitality of the diversity of the groups that are part of your community make Miami one of the strongest and most powerful emerging markets on the global marketplace. But as researcli continued, I began to look at the site itself, anti a lot of this would be telling what you all knew long before we got involved, that Watson Island has some of the most remarkable real estate anywhere on the eastern seaboard. It has at its most linldamental basis a western sunset, with a skyline of Miami in the foreground, but it also has Biscayne Bay, an astonishing body of water that is, in a sense, becoming the new town square of your community. The investments in the American Airlines Marina, Bicentennial Park, with all of its hope, all the potential that could go in there, that's under your jurisdiction. The Ocean Passenger Ship Terminal, all of these bits, including the investment of Parrot Jungle and the Children's Museum, and the new convention offices coming onto Watson Island all make this bay now a focal point 11rom one of the Finest bodies of water anywhere in the eastern seaboard to attend to. As part of our proposal to the Review Committee and to all of you, in the books we've prepared, is what we call the Islands Gardens Charter. It's a covenant between us, as developers, and all of you, to create not just the physical facility, but in operation facility that endures long after the construction crews leave. We always joke in the office that it grand piano is just another piece of furniture without a pianist, and the point is, is that it's not just the architecture and the physical facility that platters. ft's also the operations that sustain itself: It's the operations that we use, island Gardens, into the very cultural fabric o1' what Miami is about. We're talking about establishing it career and a skills job training program, as a fundamental part of this project, like we have done on three other projects in Europe and our project in Australia. We're talking about forming a cultural liaison with a Historical Museum of South Florida and the Fairchild Tropical Gardens. We're talking about integrating our activities into the rich cultural calendar of pageantry and lestivals that you've established and maintained with neighboring cities. All of this represents a duality of development that extends far beyond the physical construction. It is a commitment that we will be there through the entire length of the lease, and bCCOmC part. of your community. We have foto• -- at tilt forefront of this entire commitment a desire to Create the finest accessible public space anywhere in Miami, and that is a 19 September 17, 2001 tall order because you have one of the most walkable waterfronts anywhere around. And Watson Island, from the picnickers that show up there on Sunday, to the mad house of people that get there every morning to the fishing markets, is a quality of just watching the cruise ships turn around in the turning basins. Watson Island is one of the most remarkable pieces of public property. It was paramount in all of our work that we have preserved that public space, make it more accessible, make it more activated and animated, and make it more comfortable for not just the wealthy, the onerous to come and experience it, hilt every citizen in your corumunity to come and talk to. We make a distinction between public space and civic space. Public space is open space. it's what Watson Island has today, open space. But there's not much there. The civic space that we're talking about building transforms it with all the amenities of the family and a group of friends having a comfortable day-out experience, a place to walk and play for the kids, it place to eat, a place to do a bit of shopping, and a place to experience the quality of your City, Nvith members of the diverse community that you have. One of the things that we discovered long ago is that trade is what ])rings life to towns, and the quality of that trade is commerce itself. Public spaces in the world, the great public plazas we go to on our vacation and holidays are defined by the very nature of the diversity of the people that conic there, people who can leave their prejudices at hone, but mixed together in a public world and share each other's company, discovering a bit for themselves about the diversity of their own community, and learning a hit more about the quality of what makes, not only Miami, but this country so special. As we began to assemble the team of professionals, we were impressed by the diversity of people that Judy and Woody and even Mebmet's own contacts were able to put together. That team, led by the likes of Julio from Spillis and Candela, Paul Kissinger from EDSA, David from the Transportation Planning, David Plummer Associates, all represents a remarkable diversity of folks to capture the spirit of what your community is, and every one of them advocating all the lime for the diversity of the citizenry. As part of our working, we want to establish what we dill the stakeholders constellation. The stake holders council would begin to be developed as a partnership between you, as the City of Miami, and ourselves, Flagstone Properties, and Nve would deal with not just prime tenants of hotels, retail and dining, but also the cultural memberships that we have, not only with Fairchild ':Tropical Gardens and the Ilistor•ie MUSeI.n]l, but also the diversity of'cultural investments that are projected to go on. A new Performing Arts Center, opening up on the rumature of Brickell Avenue. A substantial opportunity with the Children's Muscum, Parrot Jungle, of course the continued operations of Chalk Airlines. All the ideas that are being talked about raider your leadership for Bicentennial Park. We see ourselves as being a partnership with all of those institutions. We have a tremendous obligation to make it one of the finest mega yacht marinas anywhere in the world. The five-gold anchor facility that Mcbmet developed in "Turkey is only one of two Europe, the other one being Bristol, and we plan to qualify for that designation and create the first live-gold anchor mega yacht marina in Miami on Watson Island. The logistics relationships how people move in and out of the site. David Plummer has been instrumental in making sure that we look at a modal split that deals not only with automobiles, but taxis, buses, bicycles, pedestrian access, coaches, shuttles, even restoration of the ferry service that you used to have in the bay, where we want to be working with all to members of the Biscayne Bay Group Business Association, that includes Bayside, the Ocean Passenger Tcnr►inal, the American Airlines Terminal, rind the potential Bicentennial Park. But more than this, the other stakeholders are the people that don't necessarily have any financial interest in what Watson Island is about. They are the citizens of your community. Working with them, perforn a strategy, and having them prat of the stakeholders council, means that the 20 September 17, 2001 residents and file citizens of (lie surrounding areas will have a voice, a regular voice to advocate For their particular needs as part of this development. It's our responsibility to you to help manage the diversity of people that come in contact with Watson island, and we will do that through the Stakeholders Council. The final component of this, and perhaps (lie most poignant, is employment itself. Flagstone proposes to set up a construction skills training- center as we have clone on Other projects where we will train (lie disadvantaged and underprivileged with construction skills to bring them off the welfare rolls, and bring them into mcaningful employment in the construction of our project. We have targeted a percent of out- entire construction work force to include folks cuff of the welfare rolls. We will be also then converting file construction skills training center into the careers skills training center, which will tap into all of the entry level jobs entry-level jobs in the hospitality and leisure industry, with the hotels, the restaurants, the retail, to provide people with opportunities to learn fundamental skills so that Watson Island and island Gardens, our development, will be seen as a long-term conuilitrtlent to your rolls to Increase employment opportunities for all of your citizens. We have signed the Miami first agreement as a commitment to do this, and participate in your leadership, to employ People frons your colrrtlunlity first. We are dedicated to do this, and this is not just altruism. It's enlightened self-interest, because if your can create an opportunity for an individual, who has not had it chance in life, they will become one of your best marketing people imaginable, and it carry the spirit of what Watson Island and Island Gardens is about throughout yclur eommrlllity, we will tap into the richness of not only the people that are prince market segments for our }patronage, but those that will simply want to come and walk and enjoy the public spaces. As we weal through the discussion of (he potential of the public purposes -- and this is just a surnalary of where we are -- we dealt first of all with the cultural components of lorming a liaison and linking with two of your major cultural facilities, Historic Museum of Sourth Florida, where we grant to build a maritime gallery, and, of course, the Fairchild 'Tropical Gardens, where Bruce Greer, his ClIthUS1aS111 to Create, in fact, one.. of the first salt water gardens displays anywhere in North America, lead us to actually set aside land on the project for these salt water gardens, which will celebrate the salt water diversity of plants from each of the live principal continents around the world, where people moved and came to Miami. Our commitment to open space and recreation is to provide sonic of the largest useable and protected and safe and served open space anywhere in your community. The fish markets continue to pump along, remarkable facilities -- and I know I'in going to mispronounce this -- but the Peseaderia and (he Casablanca fish markets are truly SOI1le Of the most remarkable operations that I've ever experienced, and whoever runs that small little bait and fish shop, that thing ought to be a museum piece. That is just remarkable out there. But we've committed because we feel that they are part of the sensibility of what Watson Island is about, we've given there space, not only for their operations, but they also provide dining facilities as well, and they also need spaces for their fishing fleet to clock. All that's in place in our proposal. in terms of maritime recreation, I think one of the most dramatic things about Miami is how (lie bays have become, in fact, one of the most heavily utilized parts of your leisure community, and we will extend that. Open it up with all Soils Of access for people corning by boats, any -- maybe a cauple jet skis to our project. The education component Will work mostly with the niuseurrl and the gardens to perlorn► a facility that schools Will actually be able to conic to and use as part of their explaining what the history of people is about. The nlaritinle museum will chronicle the five hundred year evolution of Miami from a struggling frothier to one of the strongest industrial, cornmercial, and leisure centers anywhere in North America. We've talked ubOU( eniploynlent, and, finally, the most important thing is the 21 September 17, 2001 stakeholders council, which is our public liaison commitment to you, as part of our overall public purpose. But enough of all the details and the charts, let's take a look at what we're talking about as a master plan. Today Watson Island sits on McArthur Causeway, evolving over time as a landfill into one of the most remarkable pieces of real estate we've ever come across, It's most telling feature is its western prospect, something quite unusual oil any eastern seaboard city, where you can actually sit outside and loot: at the sun setting over the skyline of' your community. That prospect sitting there looking back at the skyline of Miami, particularly at all the new developments that are going along Biscayne Bay, makes Watson Island one of the prestigious locations anywhere imaginable if your City. We wanted to build ► facility that not only had commercial presence, but also landmark status that the world would recognize as one of the finest mega yacht destinations anywhere on the planet, and believe mc, as you all know, mega yacht owners are a different breed of people. They have a requirement and a demand for luxury and amenity that is just quite out of most of our reach. And if we could provide a place where the wealth and the luxury of those yachts can come acid dock and mingle with common ordinary people like ourselves, then we've truly achieved something unique. Iii all the developments, xvllat we want to see is Watson Island integrated with the likes of the new Performing Arts Center at the (INAUDIBLE) of Brickcll Avenue. We also want to see the development of course of the American Airlines Terminal continue to extend closer to the waterfront. All the proposals That are being talked about for I3ieenteti►lia] Park, under your leadership, whatever we can do to help expedite and develop that would be fabulous. Bayside and Bayfront Park, remarkable facility, representing a commitment that all of you made that developed the waterfront years ago, and of course the ocean going passenger terminal that's been developed here. All of these pieces stitched together would be part of the ferry service restoration that we want to work oil with all of yoti. As we come in closer on the island, we can begin to see how the development actually Stitches itself into the geometries of the site, We sit within the curb of McArthur Causeway as it conies down from the bridge, heading over to South Beach, and align it with a parkway of our own, which would be heavily landscaped. The inain entrance boulevard that was already developed by Spillis Candela, with all of you, for the convention offices sillinb here, i5 maintained and the setback of that boulevard for the Children's Museum, (INAUDIBLE) on the north side of that so that there is a granadilla of trees coming into the convention and tourism offices, as well as you'll sec a reflecting pond in the maritime gallery, balancing the Children's Museum as a cultural centerpiece cooling Into tile project. The marine itself'sits as a display like a ship's compass opens up so that it maintains the clear view of all the public space across the water to the City itself. As ,you know, these mega yachts are like floating buildings, and when they park uptight to the waterfront, they actually become walls that block views. So, we were quite conscious about positioning the design so that there were walkways that had clear business open into the downtown, but also views between the boats to the City itself. Becoming closer, we begin to see how that all develops. What you see on this diagram is a retail street that runs through the center of the project, Retail is developed in a civic forth along both sides, open air retailing with covered arcades, not unlike the spectacular work that LDSA did 22 years ago with the developers of Bal Ilarhour shops. Also, their work on the Halls will provide small landscape streets, their break through, the buildings out in front, giving, firarne views across the waterfront to the downtown and the northern end of the downtown. The large hundred -foot right-of-way thal sits across through here also includes a large pool, with dining pavilions, and a landscape dining terrace, that will provide, what we think, is one of the most important commodities in Miami, shade. (iNAUDIRL,I) people are comfort in sitting 22 September 17, 2001 raider that sun while it sets. But in the end, first and foremost, this project was always about a marina, a remarkable marina in tact. And not just a marina, but a world-class marina that would attract the mega yachts of the world to come to your community. 'There's already mega yachts berths over at the end of South Beach, but Fort Lauderdale arguably has and is capturing a bigger proportion of this mega yacht market than you are.. With island Gardens Marina, we hope to develop a marina that would challenge all of that. " The two arms coming out are named after the two founding members of your community, Julia Tuttle and Henry Flagler, and each of those piers that extend out have a collection of over 20 slips each, to handle the diversity of yacht sizes that can park in that basin. We include a small turning radius inside the basin to handle all of the maneuvering of the yachts outside of the recreation space in Biscayne Bay. The curb break water that you see along the edge here is set up to accommodate in additional three yachts on either side for exhibition and visiting of prestige ships. As -is, a performance barge which sits here, whiCh is Set lip for those astonishing ceremonial visits of major and classic yacllts coming into Miami, and set up so that the crowd of people gathering to visit those yachts will not obstruct the free flow of people on tile'hundred-foot right-of-way. The fish markets sit over here in this pink area back off the hundred -foot right-of-way, but you'll hear from them if they want to be closer to the water, and we're anxious to work with the City to find the finest fish market facility that we can as part of Island Gardens development. You'll see and also that we've talked about adding something quite unique to marina design, and working with EDSA and Camper & Nicholsons, who are the ma•init engineers and operators, we developed this idea of actually having small little garden plots at the backside of every marina so that the marina slips are not seen. It's just another collection of floating concrete or fixed concrete jellies. They're actually seen a substantial part of the landscape experience of what Island Gardens is about. The experience of Camper & Nicholsons is remarkable. They tuanage some of the finest yacht marinas anywhere in the world, and are currently completing a facility Malta with these integrated gardens as part of its development. Camper & Nicholsons and Simon Enol, who we're working with, who can't be !fere today, are also operate one of the largest brokerage houses f'or mega yachts as well as charters for yachts, In addition, they'll be our prime operator of the facility. We tool: the liberty of taking your navigation chart and dropping in the master plan of Island Gardens so you can get it sense of scales. "those of you who are. yaclitees or sail mean begin to see how it fits in. And it looks even more compelling when you see it dropped in to one of tile, latest aerial photo owes. You can begin to see how the development of it fits into the fabric of all the rest of the developments around Biscayne Bay. As we mentioned, one of our first steps was to go to Fairchild Tropical Gardens to see if we can enlist their help in creating one of the most unique tropical gardens facilities as part of the development. Bruce Greer's enthusiasm by itself lifted all of our ideas of landscape to a much higher plateau than we could have done without him. The idea of malting it a centerpiece to show case salt water gardens as an annex to Fairchild "Tropical Gardens is astonishing, and the educational facilities we will have as part of that development will mean that it will be a place that not only children but the avid gardeners, which are a part of your community, can come and discover the type of species of plants that they can actually plant in a salt water environment, which is so typical of a lot of your coast lines. EDSA has captured the spirit of what we're about in this master plan, which includes not only heavily landscaped trees for shade along the promenade and the dining terrace, and in the retail precincts, but also an innovative roof garden that sits on the top of the parking garage, which will be part of the leisure facilities for not only the hotels, but an athletic club and it spa that will be open to the citizens of Nliami to use, Part of that, T might add, includes the 23 September 17, 2 00 1. • 0 substantial investment in the parkway along McArthur Causeway so that Parrot Jungic will look out on to increasing verdant collection of trees and forest that will extend the richness of their own jungle to our side of the parkway itself. Part of this includes an idea about garden architecture where we integrate ponds, trees, and architecture to provide a resort experience in the community. This resort idea, bringing the resort quality of life that you experience on your vacations into the routine of every day life is What is our signature around the world? We have done this successfully on four continents: Darling Park in Sydney, Bluewater in Europe, We're working iu the Middle East, and we're also doing now work here in America. We just opened a park last year in Fort Wayne, Indiana, which is now the first park in the United States that's actually producing a profit. It's actually run as a private business. You can build these public facilities and actually make money doing it. The commitment to file root' gardens is something quite real because the prospect of Island Gardens, as you curve off of that McArthur Bridge, that McArthur Causeway is paramount, and to be able to look down at a roof garden as opposed to an abandoned parking garage is absolutely essential for the success of our project. ']'his particular garden is a garden that we designed above four freeways in a parking garage in Sydney, Australia, servicing mixed-use office development, where 10,000 people work, and is currently the most successful waterfront development in all of Oceania the extension of the cultural work includes the liaison with the Historic Museum of South Florida, an absolute remarkable group, And what came out inmlcdiately afler meeting in the discussion of these ideas is that they've been trying for years to put together a maritime rnuseunl. We've not promised them an entire museum, but we have promised them a gallery, and the gallery is based on the incredible research that they've already completed on the diversity of the maritime history of your community. We want the maritime story of Miami to be told at Watson Island, and what better place to do it, with the ocean-going ships, the cargo area, the leisure activities of the boats, and now the mega yachts, it captures the full range of the commercial transportation and now leisure activities that your maritime history has grown to represent. The gallery we want to talk about is something that, again, is part of'the educational component, a display of all the ship models and the quality of cartography and map -making that have been unique to this part of the world will all be on display for everyone to experience. The neap -making, by the way, will tic into that fabulous festival that you have every year of antique maps. But part of it is making the gallery something that's accessible to your children. 1 grew up in -- all over the world. Nly father was in the Air Force, but one Of 111C thing's I renlenlbe• most when I was a child is, we took a model yacht that he built with nee and we tool: it selling at the small yacht pond in Central Park, and the quality of that experience was burned into my memory, and what we hope to provide here as part of the development of maritime gallery, is a boating pond, a yacht poled, which you can see in this illustration, which runs the length of the entrance boulevard across from the Children's Museum, where there will be shall boat rentals for children to actually sail model boats in that pond adjacent to the billowing sales of the maritime gallery at the main gateway into this eastern side of Island Gardens. The fish markets as T mentioned earlier have been an essential component of what Watson Island has been about for a long time, and when we first met with them, they remarked that we were the first ones to conic and talk with them about elle potential of incorporating them in the development. We were quite pleased with both of the families that are currently runniIlg Casablanca and Peseaderia markets. And they are a part of what we see is restoring one of the most fundamental components of Miami's relationship with the sea, which is to harvest the fish and the using of it by the restaurants and dining establishments in your C0111111111lity. billing on Watson Island, which currently is pretty much a casual affair of picnics 24 September 17, 2001 along the boating basin of Government Cut, picnics that you see people sitting up there with barbecues and the small casual dining that occurs on the weekends by the fish markets. This will be expanded dramatically as pari of our proposal. Markets we have, as part of the development, a crescent dining ierraee. This dining terrace sits and arches in front of a basin of a reflecting pond, looking Out on the skyline of Miami and, of course, the marina and (lie mega yachts themselves. Over 13 restaurants are planned that have a diversity of price points and menu items so that everybody in your community will have a chance to get something to cat and dine here. The idea is really simple. From something as predictable as a news cafe to the spectacle of dining along any Water front at night, but most importantly for us, under a filtered canopy of light of trees would provide a relief from the sun, both sunimcr and winter, and more importantly, something that extends well into the evening, where the waterfront can conic alive. This which is part of Darling Park in Sydney, a project that we developed. Fourteen restaurants that have broken all records in terms of attendance and patronage, but most importantly, it the safest place in Sydney for a group of friends or a family to go and spend it day outwith each other. Retail is the fundamental part of our proposal, and as PricewaterhouseCoopers and Barry Abramson annotated it's one of the pieces of the puzzle in terms of the return. We see the retail existing in a ground floor in the upper level of the first buildings along the front here and along the retail street. Those buildings will provide flagship stores in a garden setting. (INAUDIBLE) spectacular work at Bal Harbour shops have strongly (UNINTELLIGIBLE) it down. It sets a new standard of retail experience that we want to recreate at Watson island. Thatlandscape environment, ponds for children to have comfortable sitting, the beautiful store fronts, the rich array of shops are all part of a retail mix that we want to bring to your cornnttrnity, but it's a retail mix that is not set to cannibalize the: existing retailers in your town. What we want to do is bring a mix ofretailers from outside of Miami, both from America as well as Europe, to come here and provide an expanded retail offer, that demands, as your community is moved further into the world stage and the demands of the mega yacht patrons, require an expanded retail mix. And we don't want to get in competition with the developer up at tial Barbour by the way. We'll leave that to Mr. Rouse. Also, the work that EDSA did at the Falls in the restoration of that development after the hurricane has a sensitivity about huldscape, water, and the experience of that for families that we think is unmatched anywhere in America. We will integrate this with maybe not so much the rustic feeling of the Falls, but make it part of the experience of what the retail is at Island Gardens, and the list of shops we're talking to continues to grow. After the Review Committee's proposal, David Bili, Avi Alkas, and I went back to Europe in the eastern Mediterranean and we begun to talk with tenants that we've worked with on all the projects in Europe and eastern Europe, and we're finding, without exception, a high level of interest and commitment for all of these prime tenants, and we're talking with the hoards of directors of these groups to come to Miami. They are looking for a chance to conte into your community and they see Island Gardens as being that big gateway facility. 1f you look at the layout -- and .laliO Grabiel will go through a bit of this later -- you can begin to see the character of the way all of the retail shops are stacked, our retail street., blocks along through here, all of them opening up. These streets coming through like [his are frame views across the water, so we have total percolation of people and views all the way across into the harbor itself. And this is just a beginning list of the people we've talked to, who would like to come into Miami. These are the prime tenants. In terms of hotels, 1 can't under underestimate Wood), Weiser's leadership in helping create a quality of hotel mixture that fits into the hotel mix that you currently have in Miami, l lis success at opening the Ritz Carlton in Biscayne Bay -- in Key Biscayne is truly one 25 September 17, 2001 0 0 of the most reniarkablc, new hotels brought -on -title anywhere on the eastern seaboard, and we're proud that the Wave Hotel and the Lighthouse ITotel will be part of that fabric, but most importantly, as Gregory Rumple pointed out with .tones Lang LaSalle, there's a tremendous concern of how these things stitched together. You mix hotels, retail, dining, leisure, culture and public space with the marina, and it becomes the finest mixed-use development anywhere on the eastern seaboard that's item built in the east 20 years. That capacity will create a destination for the hotels that will sustain them during violent market shifts, and as we begin to talk about the character of the hotels, they have two primary options. One will deal with the business COmmunity coaling across Biscayne Bay to be pail of island Gardens, and the other is tapping into the boutique hotel field of South Beach so that we're basically trying to provide a mix of both markets coming together sat Island Gardens. And as you sec if this overall composition, the hotels may grab a hit of the skyline, but the strength of the invcstnlCtlt in both the hotels and the retail is that it brings (lie ground plain to life. And Julio will go through sone of the details on the hotels in just a hit. In fact, Julio, can I -- Julio, can I turn it over to you to kind of give an architectural tour of the project? Ladies and gentlemen, I'd like to introduce a gentleman that you all know, Julio Grabicl, from Spillis Candcla. Vice Chairman Gort: Let nlc ask a question. How longi; -- how much longer you're going to need for the presentation? 13CCause one of the Commissioners got to leave about 11:45. Mr. Ktihne: We have about ten minutes with Julio and i have a tell minutes summary, so we'll just make it... Commissioner Regalado: Look -- Mr. Chairman, the Manager knew this and they should have organized this meeting with the staff'so don't mind nie. I've got to leave. You all go on with it. don't have all the answers to all my questions, so 1 -- Vice Chairman Gort: We'll be back. Commissioner Regalado: -- I cannot ... Vice Chairman Gort: We'll be back. You can be back right? Commissioner Regalado: .No, no, no, no. i don't want to stop any process, so 1'11 just register my vote as no, and -- oil all issues because I think -- you know, 1 work for a living. Everybody knows that, even on a budget, (INAUDIBLE) 1 have to leave at this time. I can be here until midnight or 3:30 A M, but Fill sorry that you didn't realize ... Vice Chairman Gort: We'll be back. We'll be back. Fill going to make sure everybody gets all the answers. Commissioner Teele: Yeah. 13ut, .Mr. Chairman, we have a little bit of a problem. 1 mean, it's really unfortunate where we are, I think, right. now because it was illy understanding that we were going to be able to deal with this for the morning, and that was what was relayed to nic. Now, it just seems like we're here for a long haul. I mean, I would move today to provide free office space and lionorary citizenship to Eric Kuhnt, who has provided, i think, the Most 26 September 17, 2001 • 0 brilliant, the most thoughtful presentation I've ever seen as a City Commissioner, and our compliments -- it's just unfortunate that this presentation has not been vetted properly because it's really not fair, I think, to yourself or to the public to put Commissioner Regalado, myself, and maybe others in the particular time box that we're in now. Commissioner Teele: 1 mean, I certainly -- let me tell you this. With due respect to you, sir, that is the finest presentation I've ever been privileged to have is a City Commissioner -- Unidentified Speaker: The best is yet to come. Commissioner T'eelc: And I'm telling you, you know, as feu' as I'm concerned, we ought to pay your office space and get you to have in office in London, New York and Miami, because ,you would be a real asset to this community. Mr. Kuhne: Mr. Tecle, il' l could take five 111iIILItCS_iUSt to Close Out, I'd really appreciate il. May I continue? Vice Chairman Gott: Go ahead, finish. Mr. Kuhne: ,lust to finish quickly, the 1'1ni11 piece of this puzzle is act[- civic ibis prograill. We're committed to transforming every miijor development we do to tell a story of the richness of every community where we build, and the part of your community the story that needs to be told is something that all of you live everyday. We're talking about building; fountains that are dedicated to the history of the people that have colnc into your community. Sculpture panels that describe the maritime history of Miami's evolution over to past five hundred years. In coil temporary artist, like Michele Oka Donor, who did the spectacular floral with Spillis Candela. out at the international terminal at the airport, Jose Radia, and, of course, a mixture of dedication and memorial plaques to all of the people that were lost at sea. We want to have statues of Flagler and Julia Tuttle and talk about the swine initiative that they started that you're representing today, about creating opportunity in Miami for something remarkable to occur. Engravings in the architecture of quotations of literature of your region, and a collection of sculptural panels that carries on the richness of the Art Deco district, and a contemporary setting that describes how unique, in fact, this community is. But most importantly Cor all of us, in all of our weak, is trying to make this such a part of Mianli, you've created an opportunity on land that you own to transform this community through a landmark project. The City has asked us to be part of that and vve're committed to make. this thing become a touchstone at the very fabric of what Miarni stands for, not just in terms of money, not just in terms of commerce, but in Fact, the ethos of the community itself'. And, so, as you sit and look its we do on the precipice looking across at the skyline of Miami, perhaps dining in one of the restaurants, participating in one of the festivals of the festival calendar, the point on all of this is that we restore, as we talked about earlier, the primary part is to guarantee a return to the City of two million dollars ($2,000,000) a year, one percent of gross revenues, and a civic arts endowment trust fund that will ensure the maintenance and the openness of the public space over the life of the lease. Again, to conclude, we have a covenant and a Charter that we've proposed to combine all of these activities together, and we hope that you will loot: kindly on our application. We Life proud to be purl ofthis process and so grateful for the opportunity to meet with all of you this nlonling. Thank you, gentlemen, 27 September 17, 2001 • 0 Vice Chairman Gort: Thank you, sir. We'll have comments among board members. if you all recall, we were going to have this meeting at 1:30, but because of Rosh Hashanah, we changed it to 9 o'clock in the morning. I'm ready to conic back. l think this is a very important decision for the City of Miami, and I'm willing to conic back although I have to step out for five minutes to do a conference call at 2 o'clock, but ['nt willing to conic back at 1:30 -- 1 o'clock, 1:30. It's up to you all. Commissioner Regalado: Mr. Chairman? Vice Chairman Gort: Are we going to hear from the Commission at this time? We'll hear from the public later on. Commissioner Regalado: Mr. Chairman? Vice Chairman Gort: Yes, Commissioner Regalado. Commissioner Regalado: 1 can be here at 1.:15, 1:20. My only problem is that I have to do this program, as }you all know, from noon to one. I would also like to hcar from .Mr. Burns that is on the agenda. So, whatever -- 1 mean, I don't Have any other -- I don't have any other commitment, and I can be here ... Vice Chairman Gort: I don't have a problem. Commissioner Regalado: -- out of respect to the ,Jewish community, 1 think that we should be prudent because they all have to go and clean the house, and we know all the customs and all that. So... Commissioner Winton: We 1, I would lilac to be done before 3:30 because; I have a 3:30 meeting, if we can. But that's two more hours. Two more hours is a lot of time to get our questions answered and... Commissioner Rcgalado: I mean, this is what I said. I don't want to start any process, but 1 really have to go, 1 can be here at 1:15, 1:20, 1:30. Commissioner Winton: Move to re -adjourn at 1:30. Vice Chairman Gort: Let me ask you. He doesn't have to leave until 11:45. Why don't we get him to ask some of his questions? Commissioner Winton: Fine. Vice Chairman Gort: Until 11:45, and then we'll come back at 1:30, all right? Commissioner Regalado, you're going to ask your questions now? 28 September 17, 2001 • Commissioner Rcgalado: I wanted to listen to fired Burns on the report that he provided to the City Clerk. I guess it's a minority report of the -- you heard a maiority repos( from Mr.... Vice Chairman Gort: OK. What you're saying is, that you prefer to listen to those people in the public, come up with their opinions and suggestions? Coin nlissioner Teele: Mr. Chairman? Vice Chairman Gort: And we'll ask the questions later? Commissioner Regalado: Well... Commissioner'Fecle: You're calling for item I B? Commissioner R.egalado: Yeah. 'That's what .1'111 doing. Vice Chairman Gort: OK. Calling item IB. Go ahead. (INAUDIBLE' COMMENTS) Frederick Burns: Actually, I had seven pages of hand-written notes from illy oral presentation, but in light of the circumstances -- Vice Chairman Gort: I need your name. Mr. Burns: I'm Frederick 13. Burns. Vice Chairman Gort: Name and address. N-11% Burns: 1141 Coral Way. 'thank you for reminding nle, Willy. I'll limit lily remarks to the essence of where's the beef' Hopefully I've ;Submitted a minority report, as part of the Committee's report. After the Manager submitted his report, I submitted a second letter that set forth some observations and some serious concerns, which, this afternoon, if the Commission wishes 1110 to go into them, I will. But f would like to, at this time, in light of the time,.just Ilit the main issue. The consultants (lid not say anything but, as of the time, in effect, of their written report. Since then, there has been an earth -shattering event on the 1 P". Already hotels were questionable. The consultants put in their report that it was iluite aggressive, the hotel program and the other programs. T Would like to draw your attention to the market -watch report, which says - and Fill quoting —"however, that event" -- and I.Iley're referring to the Persian Gulf War - "was thousands of miles away and the big tlu•cat of terrorism 11,as the deterrent to travel." We think the fall-off in hotel demand will he fir more significant at this time. I don't understand how the Co111tliissloll call discharge its duties of awarding a two hundred eighty-one million dollar (5281,000,000) project that is to dependent on the lodging industry. This is the majol- component, without an update study, advising the Commission as to what the change of circumstances may be, what impact it may have on financability, and since it may not he permissible to have an update, I think the only alternative you have is to disapprove all of the 29 September 17, 2001 • • submittals. In (lie first two submittals I've given, I've submitted why, on the merits, they shouldn't be approved in any event. This just gives further reasons behind that position. Thank you. Vice Chairman Gort: Is that it? OK. Anyone else from the public? Yes, sir. (INAUDIBLE). Al Gonzalez: Good after afternoon, Commissioners. My name is Al Gonzalez. I'm an attorney with Adorno & 7cder. with offices at 2601 -- change to the other'? Yes. sir. My name is AI Gonzalez. Pill an attorney with Adorno & Zeder with offices at 2601 South Bayshore Drive. It's illy pleasure to be here on behalf of Watson Island Partners, one of yOtir bidders in this process. know it's been a long week and it's been a long day for you. I'll be very brief, but I think more statements make some points that have worthy of your consideration. it is, in fact, the province of this board to come tip with City policy, and although the staff has worked very diligently, it's not their providence to create policy i'or the City of Miami. 1 think, in this case, you need to analyze this proposal from a policy standpoint and, if you t10, there are some very good arguments wlty you should throw out all of these bids. First of all, all of the other bidders were non-responsive to your RFP (Request for Proposal). We've provided you a letter outlining, in detail, where we believe they have !ailed to respond to the RFP. 'The law is very clear, if you do not respond to ail RFI' in material sections, then you are non-responsive, and the bid should not he considered. Secondly, we would ask you to look at the economic viability of the project that is being recommended. The minority position of the Review Committee makes a very good point about the rnarket for hotel and retail. More importantly, however, if you look at this -- al. this proposal, you'll realize that they are suggesting a hundred and thirty-seven thousand square Leet of retail next to downtown Miami. There will be no more retail in downtown -Miami for the next 20 years if you approve this proiect. More importantly, the rental rates that they are suggesting are in the high eighties. That means they're going to compete with Bal I-Iarbour. You only have to look at Merrill, Place to realize that they're going to sue you. "ThcY're going to stop that process because they have covenants restricting those types of high-end retail shops from being anywhere other than Bal Flarbour in Dade County. So, at this very -- at .least you're going to have a litigation to contend with. More importantly, one of the bidders in this process, who actually did not proceed with a proposal, Andy Dockhail, which is -- I'nl sorry, WCI -- provided it report from Andy Dockhart to your Manager stating that there was absolutely no market for hotel. Now, we believe there is some market for hotel, but definitely not for two hotels. Secondly, i have a letter here from Palnl, Hibiscus, and Star and Homeowner's Association in which they outline their objections to Flagstone's proposal, They believe that it will increase traffic to their neighborhood; it would block the view corridor that exists now; it would increase noise and pollution, and loss of open space. I'd like to introduce that to the Clerk at this time. I also have a letter front Bayside Marketplace of their concern as to their econoillic problems assuming this was approved and i'll put that into the record as well. Thirdly, there is information in this RFP that was crucial, and that is about background information on all participants of the development team, as Nvell as the live percent phis stakeholders. Tile only information they provided was 11or their Chairman of the board, Mcbmet Bayraktar. They did not provide who else has a stake holding in this company above five percent, and, consequently, I don't believe that the review of the background of this team is complete. Finally, they didn't meet the minority participation requirement. That was stated in page 40 of the Review Committee requirements, and all you have to dei was really look at this report to know that they did not. So, the message 30 September 17, 2001 0 • out there is, the next time this City llas a major project, you don't have; to worry about earning minority participation, You can just move for Ward with whatever it is you want to propose. Vire request that this board consider these points and determine that if' -- that they, one, were not responsive to the RF13 and, consequently, could not be awarded the contract, and secondly, throw out all (lie bids and start over. You need a process that actually sets parameters for traffic, for view corridor. N'ou need a process that sets parameters fbr financial visibility; for background of those bidders. This process was too loose in those respects, and although people did tile best they could, 1 believe a better process could be put forth. Thank you very much. Vice Chairman Gort• Thant: you. Yes, sir. Mariano Cruz: Mariano Cruz, 1227 Northwest 26"' Street. I wasn't going to come to this hearing but since I went to the other hearing over there, I'm finished, mite as well. The only thing I have to remind the Commission is to have in mind the citizens of Miami, the taxpayers in your decision. Whatever benefits more the City of Miami. No one ever benefit more than lawyers here, only thing. They don't even live in Miarni. Whatever benefits the citizens of Miami, that's what (INAUDIBLE) remember, this will have to go to election November the 6th, OK, and to,yether with the CIP (Citizens Investigation Pastel) and the municipal election, which is fine. want -- I would know would be that possible. Remember, there was it place, like when my children were growing, 1 took them to Watson island to watch the Good Year Blrnip, the trucks (I,NA1JDll3L ), planes, the helicopters, and other things there, costing tile nothing, just the gasoline to drive there. I don't know anything will be left there that will be for the major (INAUDIBLE) owners and all these people there And, also, don't concern about the competition to Bayside or downtown. Just look at west of Flagler; Mall of the Americas, international Mall, Dolphin Mall, free enterprise. Let them compete. If you want to put a mall or do whatever, that's your business. 11' that thing is :zoning for (INAUDIBLE) 14, 15 restaurants, whatever you want to put in there. Let the free market force determine if you stay in business or not and pay rent to the City. Next year, when you sign that bottom line, that's to the benefit of the City taxpayers, which I am one. I'll be voting November the 6"', and (INAUDIBLE) influence a lot of people that vote together with me. Thank you. Vice Chairman Gort: Thank you. Anyone else'? Robert Parente: Good morning, gentlemen. Robert Parente, City of Miami's Waterfront Advisory Board and also a member of the Selection Committee, i did vote for the project, bill in the report I have sent some points that I want to make sure that you all are aware of. One of the main reasons that I went ahead and voted for this project because of the significant financial return to the City. But you should ]snow that the Waterfront Advisory Board adopted the RFP out of our body to the City staff with a suggested height restriction of 65 feet or a height equivalence of the highest point of McArthur Causeway Bridge The height restriction was removed from subsequent drafts to the RFP and never reinstated. However, the Waterfront Advisory Board understands that we are just an advisory board and the staff has every right to ignore or accept our recommendations. And we wish to say, for tile record, that we feel that the Island Gardcns proposal is perhaps a bit too dense and too high for this site. We understand that the return is very important to the City, but we don't think that all of the financial ills of the City can be solved with one project. We think sonic significant consideration must be given to 31 September 17, 2001 • • negotiating a slightly smaller project, and then reducing the return that the developer would have to give to the City. In return, the City gets something back and that is a different type of profit: more open air, more green space, and that is a return to the citizens that must be considered. While being chair of the Waterfront and as just a member, l can tell you, no one has ever come before the Waterfront Advisory Board, ever, and said please build a huge construction project on Watson Island. Howcver, we've heard significant input from many citizens asking its to keep it open and green, it's too valuable a piece of property in the City. 'this is illy opinion -- it's too much of a need for sonic re -occurring revenue to leave it -- we just don't have the option of leaving it completely open, which would lie wonderful. But a 25 -story building and a 14 -story building -- I'm not an architect and l'nt not going to attempt to become one -- we think, is a little bit too dense and could be lowered in order to open up view corridors and side lines to the waterfront sky line. We do feel that the project is beautiful and very well thought out. Another thing we felt was very important that, in addition to -- if, you know, this project goes forward as it is, it must have guarantees of that return because we hinged a lot -- I know I dill, as a Selection Committee member -- hinged illy vote finally based on that return and if, somehow, that gets negotiated away or awarded away but the project stays the same, we went in with thoroughbred horse and came out with a camel, and we don't want that. The final thing was the proposed partnerships with Fairchild Tropical Gardens and Historical MUSeellll of Southern Florida must be in the lease as required uses. They, too, can also somehow fall by the wayside or in year two or three of the project or whatever, all of a sudden the Historical .MUSee1111 is not there and it becomes lease space for retail operation. That would not be acceptable. Gentlemen, thank you very much, nud, again, I would like to acid to the chorus of people complementing City staff because they did really such a professional job that they need to be recognized for that. Thank YOU. Vice Chairman Gort: Thank you. Commissioner Sanchez: Mr. Chai1•rrlall, if I clay? 1 have a question for Mr. Parente. Vice Chairman Gort: We have one; snore. Commissioner Sanchez: As a member of the Review Committee, you were there for all three presentations? Mr. Parente: I was not there for the first two, but I was there for all the presentations. The first two were not presentations. They were just low gist stick meetings. Commissioner Sanchez: Alld, at the end, you voted fot' the one that was best for the citizens of Miami and the City of.Miami? Mr. Parente: I (lid, because the return was so significant -- illy -- you know, lily personal feeling was that the aquarium was wonderful, but that particular development team left so many questions unanswered. One of the required uses was a fish market, and they basically didn't cotyle in with it detailed plan in how they would handle a fish market. You don't ignore one of the two required uses, so -- basically, we -- I ended up voting for that because it was a beautiful 32 September 17, 2001 0 0 proJecl. Again, perhaps too big and too dense, but stilt the significant return to the City was what carried the day in my -- this selector's mind. Commissioner Sanchez: Thank you. Mr. Parente: Your welcome. Note for the Record: Commissioner Regalado exited the chambers at 11:41 a.m. Carter McDowell: Good morning. C.:onrmissioners. My name is Carter McDowell. 1 come before YOU wearing two hats: One, I represent Swerdlow Marine Partners, and, two; I'nl an immediate neighbor of this property. I live at 1000 Venetian Causeway, and I look directly across at this site when I look out my front door and out my windows. So, i have a number of different issues and concerns about this property. I think the thing that, to me, is the largest concern, as we sit here at this moment, is process. Not that -- and I think that these were technical issues, but that's not really what I mean. You heard it described to you earlier, that you had three dramatically different proposals with different uses, nine different uses, and they all had positive and negatives. ']'his proposal is beautiful. No one is suggesting it's not. it's an absolutely magnificent proposal, and they've presented it magnificently, but you also had other uses. And there are very real policy concerns, 1 believe, on this public piece of property - public piece of property - with a deed restriction to public uses. You, the Commission, have been put in a position where, in effect, you're given the right to either approve this project or throw them all out. You never will have the benefit ofhearing, in any significant way, the other two proposals, and the benefits and the importance of those proposals. This process has tied your hands. We wrote to the City Manager and begged that he send all of them to you so that you, the policy- makers of this Commission -- of this City, could make this decision, but, in effect., you have been -- that decision-making power has been taken away frons you. You have no ability, as you sit here right now, to effectively consider either the proposal that I represent, Swerdlow Marine Partners, or the proposal from Al Gonzalez, because of aiming and process. That's absolutely unfleir and candidly ridiculous. If you want to invite the inteneational developmentcommunity to come to your City, you should give them a fair and fill] hearing before the policy -makers, not allow the administration in this process to simply say, "This is your only choice. Take it or leave it." And that, .1 believe, is what's been handed to you. 1 think it is inappropriate and i think it has taken your ability to look at the policy issues. You just heard Mr. Parente say that, one; our proposal included the (INAUDIBLE) aquarium. There is no question that that was one, if not the single most interesting use, if you will, that every one of the committee members responded to, Everybody thought it was a wonderftil use. There is a video that's a remarkable facility and it was proposed by the Patterson Company. It's a five billion dollar ($5,000,000,000) company that said it was going to build it out of cash flow out of its pocket. There were no further approvals that were necessary. They wanted to be there. Your Chairman of your Selection Committ.ce -- and ] want to Correct that. It's not a Selection Committee. Although it did operate as a Selection Committee -- it is suppose to be a Review Committee. Sirleply reporting to you their view of the three proposals, not one proposal. That is what the law says in the City Code, Your Chairman of your Review Committee said, in the second meeting, if there is one sure tlliilg out of all these proposals, it's Ripley's because that company has the strength and they want to be there. But you don't have the opportunity to even consider it because it's not 33 September 17, 2001 before you because there's only one recommendation before you, You heard Mr. Parente say this project that is proposed, Flagstone, is too hig. It's not the towers that are necessarily the problem. Although they are tall and they will block view. 1 ask you to look carefully 4t the podium and the parking for this project. They may have two relatively slender towers -- and they presented you a wonderful rendering that shows my building in between the two buildings, but if you look at that rendering carefully, it's a bird's eye view looking clown and, indeed, our building is, in fact, shorter than the buildings on their proposal. What they don't tell you is that the backside -- and you see it up there on their figure -- the backside, the parking structure, 75 feet tall. There is a wall along the McArthur Causeway that is effectively 65 to 75 feel tall along that entire area so that the view corridor that they're keeping is only for somebody who's six or seven stories up in the air because, otherwise, you're not going to look through that view corridor between those towers. It's already blocked by structure that's between you and the downtown view, which is a magnificent view. You've heard Mr. Gonzalez raise questions and you heard Mr. Burns raise a question about the viability of this project. Look at it carefully. You're proposing two five-star hotels on this piece of property as part of Flagstone. Included in both of those hotels is a time-share element. I'd like to read you, very quickly, their own statement about what they're regent time share is. And this is their own statement: "More akin to a private country club, regent time share focuses on membership versus time." 'they go on "It's an exclusive, luxurious, well-appointed luxury residences." 'That's how they describe it, "Well- appointed residences." It has a gourmet kitchen in it. Why is that important? Because your RFP says that residential uses are not permitted, Not permitted. You used for a scrics of -- through a scrics of (UNINTELLIGIBLE) changed the RFP over lime, and went from saying time shares weren't permitted at all to -- after about an hour and a half discussion, as far as I could tell by reading the transcript before this Commission -- saying that time shares, under certain circumstances, were permitted, but you never released the prohibition against residential uses, i would submit to you, if you look around this community at the five-star hotels that have been built and/or are under construction, that every one of them, with one -- I thirdc maybe two exceptions -- includes a significant residential component, Why? Because they need presales in order to pull their Financing together. And I will tell you that, if you look at Flagstone's own proposal, under financing, it says that the individual components may be subject to presale requirements in order to be financed. It's their own words. So, now, residential is prohibited, Dive -star luxurious, exclusive, very expensive, akin to a private country club. Is that what your view of Watson island is, a private country club? A public/private country club? I don't think those; words go together, I think their counter -- they counter each other. But let's assume for a moment that indeed the residential component is not possible -- and I mentioned earlier the other projects. The Ritz Carlton on Key Biscayne has a major residential component. The Ritz Carlton in Coconut Grove across the street has a major residential component. The Four Seasons has a major residential component, Almost all of these proposed five-star hotels get their Financial and equity base from those kinds of things, I would suggest to you, particularly as Mr, Burns has pointed otit, in light of the events of the last week, which are beyond tragic, that financing a five-star liotel in this community, in any community, is going to be virtually impossible, unless you have that residential component that. you can rely on to make the financing work. i think it will allow cannibalize the five-star hotel product that is under construction and is coming on-line. We didn't have any live--- we had one, 1 apologize. The (:;rand .Bay across the street has been our lone four or five-star hotel in Miami. We now have Six -- or will have within a short period of time six. You're proposing to add the seventh and the 34 September 17, 2001 eighth and believe that, indeed, that's going to be financeable. i work with another tcan-r that was going to propose on this project. They could not figure out -- and they're a very strong, publicly traded corporation -- how to finance a hotel on this site. They dropped out. You also ]lave a two hundred and twenty-one thousand retail restaurant component in Flagstone's proposal. Two hundred and Twenty-one thousand square feet. That is a huge component. It is akin to the size of Bayside. As Al Gonzalez correctly pointed out -- actually, lie understated it -- they expect those tenants -- and their projections are that those tenants will be charged sixty to seventy-five dollars ($75) a square foot rent, plus a thirty-five dollars (S35) earn charge. They're expecting those tenants to be able to support a hunched dollars ($100) a square foot in costs. In order to do that, under any traditional retailing model, you have to be generating a thousand dollars ($1,000) a square foot in sales to be able to pay those kinds of rents. 'There is only one place that I'm aware of in this community that even conies close to that model, and on some of Their smaller stores they probably exceeded, and that's Bal Ilarbour Shops. Dadeland, which has been considered nationwide, one of tlic top malls for decades, generates between six and seven hundred dollars (5700) a square fool. They're (INAUDIBLE) sales per square foot of three hundred dollars (S300), a third more than what Dadeland docs. They have rto anchors. No anchors. Why is it that I, as a shopper --- and l live in the City of Miami -- why am I going to go to Watson Island to shop? Why is -- there are going to he -- why are there going to be enough people there to make that wort:? Certainly two hotels %vill not provide enough support to make that shop work. You have to assume that there's a reason for people to go and travel long distances and that -- ,you have to look at that in light of the competition that it laces. You have Merritt Park being built on the south, that has the (INAUDIBLE), and has gone after every high-end tenant that is available in the marketplace, and indeed is suing Bal Harbour Shops because of their non -compete previsions in their leases. So, you're dead centered between Merritt Place on one side and Bal Harbour to the north, and you're going to generate a thousand dollars ($1,000) a square foot in rent? i. dare say, not any time soon. Indeed, the other high-end stores that they might go after, the boutiques, the Versaces of this world, are already in South Beach, many of them, and more of thein are going there. Why? Because there's a huge number of people who are there, who walk by, who are not there just for that one thing, but, in fact, are already on the beach at the Delano, at the Lowe's, at other hotels. f would suggest to you that those numbers are not aggressive. They are oul in never never land. 'There is no way they're going to generate those kinds of dollars in that retail. And let's assume they do. What happens? You all own the land or you lease the land to Bayside. You gel. paid rent. from Baysiiic. When this project catulibalizes, Bayside, which it will, if it's successful -- guess who's the loser? You. I -lave you done a cross - benefit analysis to 'see if, in getting the rent here, if it's successful, what it does to the rent stream you get from Bayside? Have you really looked at what the pros are, (lie global pro and con of this process is? f would respectfully say you haven't because you don't have time to beCaLlse your staff hasn't been able to - and I also want to reiterate, I think your staff has clone a .magnificent job. 1 disagree wholeheartedly with their conclusions, as you know, but 1 think, on it practical level of dunning this process, they've done a magnificent job. I would ask you to seriously consider whether, in fact, a public use is a five-star hotel, with an exclusive private residential club, with a Bal Harbour Shop that is priced such that almost all of the population of the City of Miami won't be able to shop there, even if they wanted to, because they can't even begin to think about getting those kind of rents unless they're very high-priced and, indeed, their description of their project is a Bail Harbour -type project. .1 believe that you're probably going to move fbi-ward with this. I thirdc it is a shame, I thilulc that you have lost the opportunity and the 35 September 17, 2001 tinle to really consider the pros and the policy -level of this process. I think you're embarking on something that probably will never happen, especially ill light of this past week. .1 happen to represent the Miami Beach Marina. I can tell you, already, since last Tuesday, we've had three seasonal tenants, who had already signed slip leases, cancel since last 'Tuesday. That may be the beginning. We certainly hope it's not. But I can't conceive that it is better to bring two new hotels to compete with the existing seven new ones that are coaling onboard, bring -- the Marina, by the way, if* you listen to your Selection Committee and you loot: at the transcript, the one expert -- there were two experts actually on tine Selection Committee -- the Review Committee dealing with marine issues. They both said that the Swerdlow Marine Partners Marina Design was, by far, far and away, the best design for the marina, and, indeed, questioned whether this marina would work at all, give" its coil fi9tlratloll. That was the primary requirement. Someone suggested, by the way, that we didn't have a fish market. We absolutely included a fish market. it's in black and white. It's in our proposal. I'm not going to bother you with that, but 1 guarantee you, we included all the elements. You look at the economics. Let ale suggest the kind of out - of -box kind of thinking that you might have thought about had you been given the opportunity to consider our proposal and Itipley's. Ripley said clearly that they expected betweell one million and one point. five million people to go through their doors in the first year, and that it would build from there, and they can -- they've got to statistics to prove it in their other two locations, Which, by the, way, are Gatlinburg, 'Tennessee and 'Myrtle Beach in South Carolina, two huge urban areas with a huge population to draw on. Not. They exceed a million visitors a year in each of those locations. Imagine what they could do in the heart of this arra with the population that surrounds theta. Might you have considered establishing a ticket surcharge on attractions -- either as part of that proposal -- charge a dollar a head. it's not going to stop anybody from going there. You could generate a million or two million in revenue (snapped finger) overnight, and share in the success of that project, but, no, that's not before you because you haven't been given the opportunity to consider those kinds of things because this process took that policy -level decision away from you. it's not fair to us. It's not fair to the other team that opposes. It's not fair to the citizens of this community for you not to have tine opportunity to look at the whole (INAUDIBLE) of the different types of uses. We would ask either that you send this back to the Selections Committee, which is probably effectively throwing it out, to be honest, because we won't slake the referendum, but maybe we can continue and figure out a way to solve it, or that you throw them out and look seriously at what this process is and what it should be to make sure that, in fict, this property is (deal to the public, not just to the public that can afford a four or live hundred dollar ($500) a night hotel room or a third or fourth residence in a private residential Club in the Region Time Share. Thank you for your dine, Vice Chairman Gort: 'Thank you. Bernie Levine: Good morning. Bennie Levine, Parrot Jungle. I'm going to take two minutes. As a partner of the City of Mianli on Watson Island from the very beginning, Parrot Jungle has enlisted the City's help continuously. And, at this time, the City and the City Manager has selected a group and Parrot .lungle will go along with that selection. Vice Chairman Gort: Olt. We'll be back at 1:30. Commissioner Teele: Mr. Chairman, i move that the public hearing be closed. 36 September 17, 2001 • Commissioner Sanchez: Second. Vice Chairman Gort: it's been moved and second. Craig Robbins: Are there ... Vice Chairman Gort: Go ahead, ask your question. Mr. Robins: Is there any need or any questions of the ReviCw Conullittee or ... Vice Chairman Gort: That's the reason we're closing the public hearing, so we can have questions among ourselves. Mr. Robins: Oil, OK. I'm sorry. Vice Chainuan Gort: (INAUDIBLE). Mr. Robins: (INAUDIBLE) Vice Chairman Gort: Call the question. It's closed. That's it. YOU have to vote nn this. It's closed. Go ahead. Commissioner Teele: Mr. Chaiimlan, I don't know what the order of the day is. I do thirik, in fairness to the Selection Committee, we should probably engage in now, to some limited point, to the extent we want to -- because, I mean, you know, we doll't: wailt to destroy everybody's day. I, for one, would like to be on record as indicating that I've reviewed, very carefully, the large portions of the deliberation, and l really think this Commission owes a debt of gratitude to the Chairman and the individual members, including the City members, who participated in the process. f ani really overwhelmed with the amount of thoughtful discussions and deliberations that you all engaged in, and I think tile, process is extremely instructed, to me, as a Commissioner, and i would certainly ask the Chairman and the Clerk to prepare the appropriate documents of acknowledging their outstanding contributions to this City, and the appropriate letters for your files, because I really do think you've helped us in moving forward in this. i've learned, and I'm really concerned, particularly, with some of the comments of the minority report, just so that it's on the record. ;\fir. Attorney? Mr. Attorney, I'd like a written explanation regarding the minority business ordinance and the requirement (hat it be reviewed every two years, and the fact that it appears not to be reviewed. I want to categorically reject the comments, however, that a minority community, by population, is the basis of a designation, 'there is absolutely no basis of that in law or fact, in illy mind. Irthat's the case, then the black belt of Alabama Civil Rights laws wouldn't apply to black citizens because they may happen to. be a majority, and .I think, who's In a majority has Nothing to do with the minority provisions. But I'iu troubled by the notion that persons who do not appear to have any disadvantage or any apparent blockage to the market would take use of minority provisions. I think that's a valid point. And i think, just like in the discussions that we recently had about principal place of business, we need to review that. But for one, no company that is a multi-million dollar 37 September '17, 2001 company, whether they be black or Hispanic, should be able to claim minority provisions, in niy way of thinking, without sonic other consideration being given. I mean, I would hate to use -- as an example, what's the guy that owned BLT (Black Entertainment Television)? Bob Johnson. I would hate for Mr. Bob Johnson, as wonderful as lie is and as an American, to come in this Commission and take advantage of a black business or a minority business-- consideration. I just think we need to figure out it way to prevent billionaires, whether they be black or Hispanic or women, frons being able to -- because that mares a mockery of what it is we're all trying to do, which is provide for emerging and upward mobility. So, Mr. Burns, 1 want to be publicly acknowledge that i've learned a lot, particularly in this case that you've cited, the August case, that was written by .ludgc Stanley Marcus, who l happen to think is one of the greatest judges -- .jurist in the nation -- was surprised with his ruling however -- but it's very evident that you've given a lot of attention to that, and, again, 1 think it gives its cause to look, Mr. Attorney, at updating our regulations of true -- your City Attorney apparently said Qiat they've not been revised in 18 years, to the Committee. l don't know if that -- if you've looked at that, but that was what's in the transcript with tile -- i think it was Mr. liaz who made that reference, that the minority business regulations that were adopted have not been updated since they were done, yet the regulation of ordinance -- the Code itself'requires that they be updated every two years, and, indeed, Mr. Burns is correct, that we shouldn't oven put something like that into consideration. And, so, I think the process, to me, is going to be extremely Helpful. I will simply sav that I think that we did wrong, I think this Commission did wrong, I think the last speaker, who said that you're not a Selection Committee or Review Committee, was right. f want to take deep exception to the last speaker in questioning the process because the process is pursuant to our constitution, our Charter, and the Charter grants to the Manager the authority to submit one proposal or all proposals or something in between all of that, and the Manager has done what he deems to be right, and i don't think (hat the chart -- that the Manager has, in any way, abused or damaged the Charter or the right of this Commission to hear all of the proposals within the context of the Charter. That's his right. And, so, you're right, we don't have the other two proposals before us because he only referred one proposal to its, which is his right, and under the Charter, we can only consider what the Manager has placed before us, and that's contained in a Special provision that we're Operating under the Charter. But, again, l think your comments are extremely helpful, And one of the things we did wrong -- I'm going to be very candid -- as far as I'm concerned, we should never do it again -- we should not refer financial issue-, to the Revicw Committee, r think that is the worst thing we call do, which bets nie to this whole isstle ofpublic use versus the best deal for the City. Those are two separate considerations. I think the accountants, whom I'm deeply disappointed with, the depth and the magnitude of this evaluation -- because I think the last speaker draws upon what the real issue -- one of the real economic issues. It's not just direct money to the City, which is apparently the basis of the analysis, but I think the bigger issue is what this does in terms of the economic positioning of the City and the economic benefit to the City, both direct and indirect. In this case, indirect may be bigger than the. direct, Just to talk about the aquarium, as an example. We don't have any attractiotts in this - - we have very Few attractions that are destinations in Miami, other than the ones God gave us, which was the beaches and, -- i guess Bayside is -- is Bayside still the number one attraction outside of South Beach today, based upon the tourist data? And, so, you know, we need -- God lciiows this town needs an attraction as much as we need four more now hotels. We need things that are going to firing people here, and, in illy judgment, an attraction -- and that's why I thought that the speaker, Mr. Eric Kuhne, was so brilliant, because lie recognized (he fact that what really 38 September 17, 2001 • this town needs is an attraction. He made sort of the economic case for the economist, is that his -- the switcheroo that was going on very subtly, very stealthily, was the fact that we're no longer talking, about really a development, but an ath-action. Which is really, really the kind of argument that has to be made to convince, i think, a large number of people that this is what we need. We don't need another hotel here, per se. We don't need another, you know -- hotels are not what this town needs right now, per se. What we need are attractions to bring people to stay in hotels. And, so, Mr. Kulule has begun to redefine the project, 1 mean, very tastefully and very properly, that this is going to be an attraction. So, l just want to be on record as saying that. I think the process is extremely helpful, and I would very much like i'or the committee to lunow that we took your word seriously and that: we appreciate it. Commissioner Sanchez: Mr. Chairman, out of respect for professional courtesy, I think we have Iwo Commissioners that have stepped Out. We could recess, conic back at 1:30, and we can go with the portion -- statements that the Commission leas. Vice Chairman Gort: Commissioner Teele, are you through? Connn►ss►oner Teelc: I Just warped to tllank the committee because I k►low many of thein are not going to -- out of their courtesy to them, they're not going to be able to come back and we didn't give you anything -- case that Mr. Burns all we gave you, .l think is a hard time, and i want to apologize to you if you had to do typing, and we did not provide administrative support, as at least it's been alluded to by sonic, and I do think that we need to correct that situation, if that occurred. "thank you. Vice Chairman Gort: Thank you. We'll be back at 1:30. Mr. Robins: Are you expecting us to -- or would you like us to come back? I'm willing to, if you have questions of the Review Committee ... Vice Chairman Gort: If you could do that.,. Mr. Robins: And, just -- Commissioner Tecle, on behalf of the whole Review Committee, we're deeply grateful for your comments, and have tried our best to represent the City in this process. Vice Chairnian Gort: If you could -- we understand that -- and we're very grateful to you and the whole committee maybe for all the time and work they put into it. If you could conk back, we'd really appreciate it because I'm sure there are a lot of questions that will be asked of the process. Mr. Robins: 1 may be delayed but I will get here no later than 2 o'clock, and 1.'lt be happy, at that time, to work with you on any questions you have. Vice Chairman Gort: Thank you. Mr. Robins: Thank you, Mr. Chairman. 39 September 17, 2100 t THEREUPON, THE' CITY COMMISSION WENT INTO RECESS AT 12:12 P.M. AND RECONVENED AT 1:43 P.M. WITi( ALL MEMBERS OF THE CITY COMMISSION FOUND TO BE PRESENT. Vice Chairman Gort: Public hearing is closed, and we have questions from our board members. Commissioner Regalado. Commissioner Regalado: Mr. Chairman, I don't know what happened when I left, so -- but -- nothing? Olt. I have a question. Mr. Scott Berman, he went to the poditml and gave a very nice presentation, but he said that they could not guarantee those figures and I just don't understand that. Scott Berman: What I said, Commissioner, what I couldn't guarantee was this group's ability to secure Financing. Commissioner Regalado: OK. What docs that mean? Mr. Berman: I'll use a tootball analogy and tell you that we're in the First quarter, and financing usually happens at half time. Essentially, you go to the market, present your goods, your due diligence, your project, in order to secure, in this case, debt financing. The applicant, to their proposal, clearly stated that their financing plan consisted of 40 percent equity and 60 percent debt, and used the names of some sophisticated investors and investment houses and banks that they... Commissioner Regalado: The Manager told me 60 percent. Carlos Ginieiiez (City Manager): I would say, at least 40 percent. Mr. Berman: So, we're at a point where this group is ready and, in readying itself, to bo to the lending community to seek debt. So, I can't stand here and represent that they will be successful. i hope that clari ties my statement. Vice Chairman Cort: Commissioner Regalado, ,you have a question? Dena Bianchino: If] could just add to that, Commissioner. Normally, until a developer has control of the property, which, in this case, would be a lease, it would be very difficult for them to get very firm financing. Also, we never turned... Commissioner Regalado: No. I know, Dena. The reason I asked is because, when we discussed well, the first time I spoke to the Manager about this, lie mentioned 60 percent. So, I figured with 60 perectlt, you know, there is no much wonder because you have most of the financing in place. 'That's why 1 asked. It's 40 percent now. So, 1 just want to make sure that I had ruy figures correct. Commissioner Winton: A 40 percent equity is still very substantial equity upli•ont -- in front of the debt in a project like this. 1 wean, it's very, very significant. 40 September 17, 2001 Commissioner Regalado: No problem. But since the Manager told rale that and since i heard that phrase, I wanted to be clear on that. Ms. Bianchino: Commissioner-, I'd like to just say that 1 gave the Manager that information, and it was my incorrect answer that ,you got. So, I'll take responsibility for that. Vice Chairman Gort: Any other questions? Commissioner Regalado: Not now. Commissioner Sanchez: Mr. Chairman? Thalil: you, Mr. Chairman. First of all, let me just elaborate on what my colleagues have said about the presentation that's been putt forth and the hard work ofthe City staff that have been in this process for almost two years now, a process that I remember when it .first started. But whether people question the process or not, we basically directed the administration to hire experts oil this process. They went out and they hired who they considered to be the experts and fbl•enlost in trying to get the City of Miami the best possible deal for our City. We -- and this is the statement that I used (INAUDIBLE) we are the - - truly the public's assets. We are the guardians for that, and this is public land that we are looking at, and were looking out for the best development. Now, if we look at some of the restrictions that are for -Ili, first of all, the referendum that the taxpayers will have to vote on, and then, also, this process going to Tallahassee to get approval from the State of Florida, Internal improvement Trust fund Board of Trustees for this project, but if we look at what just happened in the last Commission meeting that we talked about, our budget, one of the most important things that we do here. We found that the City just barely made it scratching in dire strait of finals, but I clon't want to compensate funds for a project that's not going to be in the best interest of this City of Miami, but, by far, I. think that the presentation that has been made here and the people that participated in this Review Committee, that have taken the gime to review and make a recommendation to the City Manager, who is -- he is presenting to us today, the legislative body here, to either accept or deny. We have to look at it lot of things. One is, is the project going to be a project well accepted by our community? Is it going to cater to public events, which people will have the freedom to walk through that. project and enjoy it? Because, after all, it is for the residents of Miami and all welcomers that want to come to Miami and see what we're doing. But when we talk about this process, 1 think it's a fair process. It's not the perfect process, but it's the fair process. We've seen several professionals, which 1 have the utmost respect for that I know that have collie here and made statements in opposition to this. Of course, one -- and 1 wrote clown one, Mr. Burns, who I have the utmost respect for -- you know, all projects have the element of risks in terms of viability and perfbrinance. Every one who's going to build, it's going to take risks, and if we look at the City of people and we look at what we've done to make this City of Miami a world -Class community, we need to bring great projects that are coming fbrtll. We have yet to do that many, many years. I think that what -- how much tine (lid we spend on i-Iarbour -- Marina Harbour there? Ilow many years have we been in that? And we still haven't been able to get it off the gl'01111(1. Ilene there was a process that went through a process -- the administration has takell that -- the advice of that committee to present here today. You look at how much money the City's going to generate -- and 1 don't Nvant to focus on the farads because if the project wasn't well accepted and it's not a first-class project, thele 1 wouldn't support it. But 41 September 17, 2001 0 • when you look at the funds that are coming into the City and the statements that arc made here, nobody could guarantee that that's going to be a successful project, but ttie City of Miami, if we're going to enter into the 21st century as a first-class international community, this is a step in the right direction with this event.. First, it's got safeguards. It will be a referendum, but if the taxpayers in ;Miami don't like it, they could give it a thumb's down. That's number one. Two: Have to go to Tallahassee and you have to sell it, that it's going to he public, and, later on -- as a matter of fact, when this is voted, Mr. Chairnian, 1 would like the opportunity to present a resolution on any property - left -over property that is not committed to this project. 1 am prepared to have the City Attorney prepare a resolution, with the administration's approval, to prepare -- to make any additional property, leftover property, whether it's five acres, seven acres, remaining land as a grain and open space park .for the residents of Miami. So, when we look at the whole concept here, you basically have to look at what arc we going to offer the City of Miami: What are we going to offer the residents of the City of Miami? And what are we going to offer the City of Miami, which continues to every year barely make it by a budget, barely make it financially? And those are the things that we need to address. This is one of the many projects that should be carving in front Of us through a process, through a process That is a competitive process, just like everybody (lid here. It was a competitive process; went: through a committee; the committee selected it; went through the City's administration. Now, it's in front of us to select. NVIlether they question the process or not -- i respect whoever questions the process -- but our (iecision up here to select whichever one it may be, whether it be the recommendation by the Manager, is what's in the best interest of the City and the residents of Miami. 'Thank you. Vice Chairman Gort: Johnny, you have any questions? Commissioner Winton: Not yet. Commissioner Regalado: I have also comment afterwards. Vice Chairman Gori: OK. Go ahead. Commissioner Sanchez: Johnny, are you going to make -- Vice Chairman Gow Tecle, you wanted to... Commissioner Regalado: If 1. maty? Very, very brief, if the City Commission decides to place this on the ballot in November 11" -- I mean, 6"', 1 think that it's important that, if the City really wants this developed, the City participates in the information to the voters of the City of' Miami. I think about two years ago the Commission placed one of the items that Johnny, you're bringing through your committee to the voters, abOUt selling the property less than so much money, and at that lime we were in the midst of a crisis, and that administration not only did not support that in terms of information but, in a way, looked the other way, and this was defeated at the polls. f think it was 57 to 43 percent, and it was sad because we could have sold already several pieces of property without this process, especially a small piece of property. I just want to remind the members of the Commission and the participants on this project that the people of Miami has been hit very, hard, and the history -- the recent history, unfortunately, shows that when there is 42 September 17, 2001 something that is too good to be true, people don't believe it. Remember that Watson Island history dates back to when someone, many years ago, wanted to develop Watson Island, and the Mayor -- now our Mayor. A Commissioner then -- denounced these people, spoke about corruption, and it was the Commission that passed the 29B Amendment, and it was -- and it left the perception that when you have so much interest in developing a piece of prime land, you know, there's going to be something hidden and some ditty business. So, with that history and with the fact that only, according to a Survey that 1 have seen, only I 1 percent of the voters in the City of Miami have heard a lot about Watson Island and its development, and when you have to consider that the media and the commercial ... Vice Chairman Gort: Commissioner Regalado, lily apology a minute, but I have to make a conference call that I committed, but I'll be back in 10 minutes, OK. Commissioner Regalado: Surc. Sure. Note fur the Record: Vice Chainnan Gori exited the chambers at 1:57 p.m. Commissioner Regalado: Just wanted to say that tine media would be tilled with some of the mayorat candidates that would take most of the time and that would take most of the interest. 1 am afraid that people will not be able to get the whole information about this proicel. So, I just wanted to say to you that, as a person, that understanding a little the media and what will be aired and printed and if there were not an interest by the administration and by the proponents, 1 thin]: that this will not be approved, ifwe were to place it on the ballot.. And 1 think that that's one of the concerns that they have to address because, you know, it's very nice... Commissioner Winton: That who has to address? Commissioner Rcgaladlo: That the proponent and the adlllinistratioll have to address, Johnny, because if' we, as a government, are not caimnilted to supporta project, it doesn't platter if the proponent hire some public relation firms or whatever. Because, you know, what I'm afraid, as of now, we have not seen a commitment of the government to supllort the Charter amendments that are on the ballot only maybe 45 days from now or something like that. We got part of September and October -- so that is lily concern. 1 think -- you know, they can say whatever they want. You know, they can show whatever. They carr say that the process was perfect, but at the encs of the day, the voters are those who will make the decision, and if they cto not have the IilfOrnlalioil up to the last details, it lust won't pass because when people don't know, they vote no. And 1 just wanted to say that oil the record because I think it's important •-- we have to make ail important decision. It's 75 years of lease on prime land of the City of Miami. And .toe mentioned the Grove Harbour disaster, I was here when it was voted '96 for the first tirne, and -- and, by the way, this is not the first major development. ']'lie First major development of the City of Yliami, I think, is Parrot Jungle, and it was hard but, hopefully, it's on the way now, and it will he one of the things that we could show to the world. So, that -- Mr. Chairman, that is some of illy concerns. Commissioner Sanchez: Mr. Chairman? 43 September 17, 2001 • 1 • Commissioner Tccle: Mr. Chairman -- Mr. Manager, did you want to respond? 11' not, Commissioner Sanchez. Mr. Gimenez: Yes, As we intended to inform the voters of the proposal. That's all that we could do. We intended to inform them through our media. The proposal I'm sure we'll have different ways of informing the public, and they can advocate what (INAUDIBL L) the impact to the City (INAUDIBLE). Conirnissloner Teele: Commissioner Sanchez. Commissioner Sanchez: Mr, Chairman, move to accept and approve Ilse Marlager's recommendation so we call open Lip fol' dISCL1SS1011. So moved. Comlllissioncr Winton: Second. Commissioner Tcele: Moved and seconded by Commissioner Sanchez and Commissioner Winton. Commissioner Winton. Commissioner Winton: There's a whole number of issues here and 11111 going to start with one, Commissioner Tecle, that you brought up sonic tinge ago, a number of limes, but that, in itself; was, as far as I'm concerned, part of what got LIS here. I wash we had a little more time. And you were concerned about 1110 tinle ii•,111le some time ago -- and, frankly, if we would have gotten on with this thing when we were trying to get on with it, we probably wouldn't be in this boat where we don't have any opportunity to go back and renegotiate any component part of this. This deal gets done today and that's it, and if it doesn't get done today, there isn't a deal to be done 1br two years because this can't come before the electorate of the City ofMiami until November of 2003, We're in one now, right? OK. Which is really a shame. I mean, if you could bring them back in March or something, it's one thing. But two years from now is a long, long, long, long time, and... Commissioner Regalado: Johnny, you could. Commissioner Winton: I'm sorry? Commissioner Regalado: You could.. Commissioner Winton: You could, but I'm not sure that that's in the best interest of our co111111tt1lity, to host it -- to push this thing back for two years, Commissioner Regalado: No, I'm saying that you can bring it before. The Attorney could tell us about a remedy for that, COlrliniSSlollel- Winton: I'm sure... Alejandro Vilarello (City Attorney): You can certainly amend the City Charter so that the Watson Island development do not -- are not required to be brought back and considered by the 44 September 17, 2001 • 0 voters, only at general elections. That would require a Charter amendment process, which arguably could be done sooner than two years from now. Commissioner Winton: Well, that isn't at our disposal at the moment. Frankly, 1 don't remember if it's in our Charter changes, as it relates to this entire process, because we did make some changes to this process, but 11111 not sure we changed that part of it. We didn't change that part, did we? And it's too laic to make any other changes. So, the changes that we have going forward in our Charter for this coaling Novcnibe•, they're in place and they can't he modified at this point. So, as far as 1'nl concerned, we arc in a position where we either have to -- where we have to move forward today or wait for two years. T share some of the concern about the density of this project, in particular the retail component of the density. 1 think that it docs make nle nervous about the impact of that retail, not only on the island, but as it relates to the rest of the retail in the entire City of Miami, which has an entirely difterent set of its own hind of challenges. I'm also concerned about the visual effect of that very large parking structrtre on the island and the visual effect from the road and how we view the water as -- that roadway there is - - it could be dangerous, T guess some could argue, but it's a -- 1 think the road itself is a tourist. attraction. People love to drive up McArthur Causeway and look back at downto,�vn Miami. 1 mean, It's just a magnificent vic%v. And, so, YOU want to be real careful what you do to that -- that may (UNT1NTELLIG113Lls) on public lands -- that Illay hurt any of those view corridors. But I also have to say, on the flip side, that the attention to detail that y'all -- that the developers have paid to view corridors, to public spaces, the idea of bringing the historical mUSCUnl and -- to the site, the idea of creating a salt -water gardens, in conjunction with Fairchild Tropical Gardens, think, is an outstanding idea, and 1 think that the whole -- let's see name. T do this all the time. What's your name? Coin ni issioner Tecle: Eric Kuhne. Commissioner Winton; F.ric. I think that Eric's expertise at the table, 1 would have sworn thiel he was Elizabeth Plater-J..yberk. I nican, he has the whole story line on public spaces and how you inten•clate public spaces and private spaces together is just magnificent, and it's the kind of attention to detail I hope that we get in all developments throughout the City, W11COM' they're public, private, or just plain private. I mean, it's the kind of thing that you can bring to a community that can radically change the fabric of our community to the better. And 1 think that the attention, to detail that you all have made to that aspect of this project is magnificent. And I'm hoping -- and I'm going to support this project -- I'm hoping that, if illy fellow C.,onlrnissioners support this project, as we move forward, that there can be sonic significant additional adjustment to the way some of these -- the buildings are created so that we can maximize the public spaces and view corridors and create an ambiance there that is welcoming to all of the residents of the City of Miami. And, Eric, at one point, you started to talk about it When you were talking about the lisle market, and you also showed a slide of residents from the City of' Miami with their cars parked along the water's edge and they were doing a little barbecuing out there and that kind of thing, but the neat slide was a highly refined, very beautiful, well-manicurcoi waterfront area, and the folks in the little barbecue grill, they ain't going to be hanging out right there doing their barbecue. So, I hope that there's some additional detail paid to that aspect of how we truly meld regular Joe Blow Miami with the kind of customers that are going to have to spend the bis dollars to shop in the retail shops because many 45 September 17, 2001 • of the people that I know probably aren't going to be able to afford -- let nlc rephrase that. Many of the people I know won't he able to afford to shop in those retail shops. So, how would yott -- how you interconnect those two parts is another interesting challenge that, I think, is very important in this kind of public/private venture. And the last Comment] want to say is -- and if we had more time, we could work out and negotiate all these details. You know, if we_llad another three weeks or a month, We could fix a lot of things by sending it back to the Manager; letting him work with you guys, and we negotiate this kind of stuff, but we don't have that time. So -- and the last message is one that relates to the money that we spent oil the Development Conference, and the City of Miarni put a goodly amount of money in that Development Conference. We tried to bring developers here from around the world. We certainly got developers Isere from around the country, not nearly as many as I hoped that we would have. In fact, it was much more a local flavor than it was national flavor than it were an international flavor. This is a development team that is truly international, and 1 don't think that we Could have, under many other circumstances, brought to the table a better or more qualified international development team than we've attracted to this particular RFP (Request for Proposal), and I've told a host of people that have talked to me about -- in particular, media people -•• that have talked to me about, you know, what's going to happen with this RFP? And I said, I don't know. But I have said, over and over again, that this may be one of the first tinges in years and years and years and years that an R_UP process -- that's a joint venture between the City of Miami and the private sector - may be the first time in years that it didn't just get caught up in raw politics. And, so, that was, all by itself, very exciting to me because] think it sends a whole new signal to the world out there about the state of the political affairs within the City of Miami, and we have an Opportunity to send a message today that hasn't been sent in a longtime and that is, while each of us arC going to (10 the best we can to safeguard Our community's interests, and ) trust the opinions and thoughts of each of ally fellows Commissioners, because they work very, very, very hard at. that -- we don't always agree on all of these points and y'all have all seen us disagree many, many t1111es, bt.y at the end of the day, the disagreement has been professional disagreement, not raw, political disagreement, and it's all been -- it revolves around each of our individual opinions about how we create a greater City. And f trust that that -- l trust -- I know that's going to happen again today. I don't know whether this wins or loses, but at the end of the day, the decision's going to be made and the debate will be held, which will be a fair debate, over the pros and cons of this particular project. And the message to (lie development comnutnity, the world out there, is that the political arena in Miami is one that is interested in creating a great City and bringing good qualified people to the table. But 1 art going to -- its we move to the vote, 1 arts going to support this project. Note for the Record: Vice Chairman Gort returned to chambers at 2:07 p.m. Vice Chairman Gort: Once again, I apOlogizC for stepping out, but, unfortunately, i lead a C011fel lice call with sonic of the New York people and I couldn't stay Out of it.. But I have a couple of questions. l don't know if they've been answered, but Pd like to ask thele again. ']'here was a question asked about the legal opinion on the deed restriction on Watson Island. Has that been answered? Mr. Vilarello: Specifically, the question was whether there was a deed restriction, which required the use of property be for public purpOse, and there is such a deed restriction. The 46 September 17, 2001 method of dealing with it is simply to get a waiver ti, go to Tallahassee, to the Cabinet for the State of Florida Internal Inaprovernent 'frust Fund, Board of Trustees, and solicit a waiver of that. Vice Chairman Gort: O.K. Ms. Bianchino: Coin Ill issioner Gort, 1 can add to that. 1 think, in a positive way, in the mid 80s, we went to the state to change the zoning on that parcel, and they approved the rezoning of this particular piece to C-1 zoning. So, the state has already given their stamp of approval on a commercial use For this. Vice Chairman Gort: OK. On the revenue projections, my understanding is, there's sonic questions about the projections on the revenue on the hotels. Commissioner Tecic: Excuse me. I didn't understand. Say that -- what you just said again, in response to Commissioner Gort's question. Who just approved what? ,Ms. Bianchino: Yes, sir.- No. In the mid 80s we went to the state with a master plan for Watson Island. Part of the island, which we're talking about today, was -- got the approval of the state to he Zoned C-1. Commissioner Teele: Who did that -- who... Ms. Hianchino: The state of Florida. Commissioner Teele: OK. Like the White ]-louse. Now, who in the state of Florida did it'! Ms. Bianchino: Department of Community Affairs. Commissioner Tecle: Well, 1'd like to just reserve sonic comments on Commissioner Gort's question when he's finished with that, but go right ahead, Commissioner. Vice Chairman Gort: The question also was asked at lice unfortunate incident that's taking place with the Wall Street and what's going on economically, do you still believe you can get tile. finance for this project and you still believe you can be successful? Mr. K.uhrlc: Again, Eric Kuhne, working on Flagstone -- on the board of Flagstone Properties. The answer is, yes, we do believe this. We have a simple phrase, which works better in northern climates, and that is that "we buy straw hats in winter," which is to say that we do large-scale developments around the world that are counter -cyclical, In fact, during low periods of recession or economic slow -downs is when we precisely begin projects of this scale. As to t.11e events of the past week, I do not want to minimize the impact that that has had oil all of us, both personally and professionally, but l want to say one thing and it's very critical: we -- all of you and we sit at the other end of that spectrum of what happened in NeNv York on Tuesday, We are the builders of cities, Development in the best of times is a leap of faith. It is a commitment of believing in a community. We have investors globally that are looking for the safest place to put money, and property is one of the safest places during tight economic Bines. We believe that the financing 47 September 17, 2001 will be put in place and ti,c will open, as pl<uuled and as successfully as we've represented ill mir proposal. Thank you. Vice Chairman GOrt: You're projection, if accepted by the voters and this Commission, a completion date was a time period... Mr. Kullne: In three years. Vice Chairman Gort: In three years? Nlr. Kohne: Thi -cc years. four years. Three years of -- two and a half years of construction and a year of-- about it year of penllitting and design drawings, yes. Vice Chairman God: OK. Thank you. Mr. Kullile. Thank you. Vice Chairman Gort: Next question was in creating the Training and Skill Center, where people are going to he -- are you going to run that in conjunction-- are you proposing to -- and I don't recall right now reading the proposal. Are you going to run that in conjunction with the City or independently? Mr, Burns: Our history of doing these things are that we always want to run them in conjunction with the City. Ho%vever, we are prepared to run it independently. Vice Chairnian Gort: But you'll take either way? Mr. Burns: Yes, absolutely. Vice Chairman Gort: OK. Thank you. Also, the statement was made that you received a letter -- and Illy understanding is, the Iettcr f'or proposals that YOU sent out, you sent out to all investors or potential developers? Mr. Ginlencz: The R113 ... Vice Chairman Gort: The RIT that went out, the letter of'requesting ... Mr. Ginletle'z: Dena can answer ]low nlaIly People it hent ollt t0 - Ms, Bianehino: How many did we send that out to? Six thousand People. Vice Chairman Gort: So, it went out to -- OK. Ms. Dianchino: Yeah. 48 September 17, 2001 Vice Chairman Gort: OK. Thank you. Let me tell you -- I spent time looking tit all three proposals, and we had some very good presentations, and I have to tell you. I have close friends and all three of them very close friends, but at the same time, in looking at the different proposals, i had to make my decision based on whist 1 believe is the best for the City of Miami, and that's what I intend to (to. The most important thing is -- and I'm sorry that the people are complaining about the process. Didn't do it before, they did it after the selection was taking place or the recommendation was clone. So, i wish that a lot of those things would ]lave conte before that would have taken place. I personally think the -- if this }lasses today, it's going to have to go to the voters, and the unfortunate things that happens in Miami, a lot of individuals that do not part of the process have been accepted and (INAUDIBLE) probably hire lite lobbyists and campaign manager will do the whole thing to try to vote it down. I think we should try to look at the best interest of the City of Miami. Alit,' this takes me back when the Parrot Jungle was first created. i personally went out because 1 believed the Parrot Jungle was a great event. It's a great amenity for the City of Miami and it was just right for the north of Watson Island. The Watson Island, everybody's been talking about it for years, i think, for the first time, we're beginning to see sonic development taking place. And what I've seen in my own personal view is, we're our worst own enemies, let me tell ,you. Because the feedback that I get from investors and people outside of the Americas -- I'm talking about Europe and other countries -- they're very interested in coming to invest in the City of Miami. The only problem -- the only worry they have is too Much I)olities in the City, in tltc County, and in South Florida. So, Commissioner Teele, I thin]( you wanted to make some statements. Commissioner Teele: No. Mr. Chairman, actually, I was very interested in hearing your thoughts, and I'm totally in agreement with everything that you've said. Mr. Burns, you appear to want to be heard, and I'm willing to yield to you to - if you wall( me to ask ,you a question Of- if rif you want to say something. Mr. Burns: Thank you. hive seconds, Frederick B. Bunts, 1 141 Coral Way. Willy, it's hard to believe, over 30 years ago, you and 1. sat right. there on a Plamling and Zoning Board. I didn't think we were wasting our time. This is it two hundred and eighty-one million dollar (S281,000,000) project. The City saw fit to hire consultants who dealt with the economic aspect. I have reread all of the minutes; I've reread all the consultant's reports, and I have not seen where the City of Miami staff in Planning and Zoning, and what have you, has analyzed this font a point of view of aesthetics, reasonable visibility, setbacks, massing, floor area ratio, and as a personal observation, as an attorney, a real estate developer, and what have you, i think it's too nfuch on too little and it's inappropriate, and i think it would be irresponsible of this City not to have their own staff, at least, opine professionally on the project, and if there is such a report, I'm at a loss as to why I haven't seen it. Because I hate to tell you how many days 1 have spent pondering these issues. 'Thank yoi.i. Vice Chairman Gort: Thant( you, Burns. And I'm glad you brought up the idea when we. were serving the Zoning Board together. 'Thanks to the decisions that we took at that time, we have a Brickell Avenue today, and we have some of the best development taking place in the City of Miami, And I recall people standing there and stating tile same thing, ,you have too massive, loo much,,, and so on, So, I'm sorry, Mr.... 49 Sept.embcr 17, 2001 0 • Commissioner Winton: Excusc me. Can I ask it question? In terms of review of density and design and all that, doesn't this project have to go through a MUSP (Major Use Special Permit) yet? Ms. Bianchino: Yes. Commissioner Winton: And is not the MU'SP process a process where you review all of these things? It's not it requirement of the RFA process. It's a primary of the MUSP. Ms. Bianchino: Yes, sir. Commissioner Winton: Thank you. Commissioner Teele: I'll be happy to yield to Mr. -- the Chairman of the committee, Mr. Robins. Mr. Robins: Thank you. I just -- 1 wanted to know -- I've arrived back, and if there are any questions you have of the committee, 1'd be happy to answer them. And, also, so that you know, the IZPP clearly charged our committee to discuss and analyze the issues mentioned by I Ir. Burns, and they were all very much part of our consideration, and there is extensive dialogue ill the minutes about all types of planning, zoning, or density, height, and setback related issues. Commissioner Tccle: Mr. Robins, I appreciate, again, you coaling, as Chairman of the committee, and I'm very grateful for your insight, your contribution to the development Of Out - City, in particular, the design district. You might be pleased to know that the Commission agreed to work with Off-Strect Parking to facilitate without parking charges this coming weekend of your big annual event, so... Mr. Robins: It's nice of you to share the credit with your colleagues, Commissioner Teele, hccause we k ONA., how forcefully you single-handedly were in that effort, and we appreciate it. Conrinissioner Tcele: Well, I don't want to tale credit for that, but actually, it was ... Vice Chairman Ciort: And you can't talc it. Commissioner Tccle: It's the truth, but it was a part -- it was really the parking surcharge. Mr..Robins: I apologize for correcting the Commissioner. Cominiscioner Tcele: It's really the Executive Director parking surcharge and mysell, and he was willing to work it with us, but the Commission acknowledged it. I have a number of concerns, and 1 quite candidly wanted to hear what Commissioner Winton had to say, and not that 1 pair illy vote or vote behind or with anyone. I came here fully prepared to support this project or oppose this project, depending largely upon what the presentation was and what Comrrrissioner Winton and lily other colleagues thought. And, Commissioner Winton, who is responsible as the elected representative, who represents that arca, while he has no more vote than any of us, 1 certainly defer to his expertise in development areas, and particularly, in his 50 September 17, 2001 district. And I was concerned about many of the issues that Mr. Burns has raised. The question that I have, though, is that I've analyzed the voting tabulation, which, fbi- some reason, was never tabulated, not even in our presentations. It was presented -- and I've taken the raw data and I've tried to massage it, and so that It has sonic ntilncrical significance, but there are two things that strike nue about our instructions to you, that is through the RFP, and the first statement you made when you came up this morning was, "The first step in determining this proposal is if we're getting lair market value." That was your statement this morning. Mr. Burns: i don't think that was mine, but... Conlnlissioner Teele: No, no. I apologize. That was Dena Bianchino's statement. That was Ms. Bianchino's statement. I apologize. I have it noted here, DB, but I was Attributing that to you. That Statement bothers nic, and the statements of sonic of my colleagues bother nic, because i really do think that we need to stop looking at this property its property of the City. It is not City property, per se. It is property lleld in trust by the City Commission on hehalf, not of the citizens of Miami, but the citizens of the State of Florida. It's very clear. I've always admired Fuller Waren, At least everything i've ever read about hilll. His il10St fallnOtlS CU11n71CIlt was "Two post cards from Blountstown is a draft," and you won't appreciate that if you're not From north Florida, where he carne Ecom, BlountstUwll. But the fiCt of the platter is, it was Fuller Warred ill 1949 -- and there was no Secretary of State at the tinge. The Commission of Agriculture was the -- it's sealed by the great seal of the Department of the Commission of Agriculture, i guess, and maybe there was. 11 was a different board called the Trustees Of Internal Improvement Fund. Years ago, when I was a student in both rexas and Florida, the thing that I found most fascinating was the state -- the requirements of understanding your state, and we used to have to remember all these different boards. The Cabinet sits as a Board ofEducation and the Cabinet sits as the internal 'frust Fund, BUt the point that needs to lie made is that this land is land owned by the State of Florida and transferred to the City of Mianli as trustees in 1949 for the purpose of ensuring that it is held for (lie public, not for the residents of the City of Miami, not for tile, best market value that the City could get out of selling it or flipping it, but held in trust, not by the Department of Cotnnlunily Affairs, which 11,1s nothing to say or do with this, at all, Commissioner Gort, in response to that Zoning issue, but by the Department of -- by the Florida Cabinet sitting as trustees for the internal Improvement Fund. Now, that's significant .for this reason. We need to be careful, Mr. Attorney. We need to be very careful how we build a record, Ind you need to instruct 115. Sec, we've gone through this two or three tinges and we've blown it every time. I'm thinking now about the Mary Brickell land thele oil Brlckell, that this Commission, working with or without the Management and the Attorney, basically wound up destroying the whole trust agreement that we were holding that land for, and the heirs came back and said, `'We don't lilac the way you're handling aur land. When our great great grand daddy gave you all this land to hold, we didn't give you all the land to do what you all are doing or not doing. We gave it to you with specific provisions." In those cases, apparently had a reverter clause. This land apparently doesn't have it reverter clause. But I think we heed to be a lot more careful about how we build the record because. I can tell you this. You play get one response by Governor Jeb Bush. You may got a totally different response by Governor Greenleaf or -- so, I think everybody that is on the plane that I'm on is begiii.ning to understand what my concern is. My IlUniber one concern is, when we did this RFP, 1 was not fully knowledgeable, Mr. Attorney, Of the tremendous decd 1'eStl•ictioils that we're sort of saying, simply -- to use Voll' word, Mr. 51 .Septeinber 17, 2001 Attorney -- we simply have to go and get. 1 don't think we should assume away the problem, and 1 really think we need to take our role as stewards of public property a lot more seriously in the manner in which we Moth debate this, discuss this, and we act upon this. 1 would say that the action by the Cabinet, as it relates to Parrot Jungle, probably would give me more confidence than anything that: sante mid-level bureaucrat at the Department of Community Affairs may or may not have done because that clearly would not be at all controlling on what the Cabinet's disposition would be in doing this. But I don't think we should either give those -- and there seems to be substantial concern about this project. i don't think we should give those who may want to derail this project arsenal and ammunition to go to the Cabinet and say, this is not what your stewards or your trustees considered. They didn't consider the public purpose because it's very clear. It says that "the grantee shall never sell or convey or lease tite above-described land or any part thereof to any private person, firm, corporation for any private use or purpose. It being the intent, of the restriction that the laud that solely he used for public purposes, including municipal use and not otherwise." Now -- well, that's just all language, what we would call "boiler plate language, but, again, we don't need to assume away the problem. We've got to get permission from the Cabinet, and in making my vote today, 1 want to acknowledge the role of the Cabinet and my role as a steward of this land in determining that this land is public purpose, and, in that regard, Mr, Robins, the most instructive thing that i can see in the voting and the tabulation is this: Is that no matter [tow I cut the vote -- and, by the way, I had to throw out at least two votes: one City employee who voted the highest/lowest and another, a private employee who made no vote, Mr. Burns, at all. But in looking at the tabulation, which gave a maximum of 35 points in the consideration, Flagstone -- even if' you tlu'ow out the highest and the lowest, even if you just take the numbers -- flagstone is clearly -- and this is based solely on the design issues and the public purpose issues, so to speak, in terms of what: is in the public interest, without regard to the financial issues -- Flagstone would appear to have 224 raw votes, as compared to Swerdlow and Watson Island, both of whom are right at. 187 and 189, If you take out the highest and lowest, the result is the same. Flagstone is clearly separated from the other two. Swerdlow Corning in, actually, ahead of Watson Island, if you do that. So, the question is this: Without regard to finances, you all evaluated these proposals based upon a number of zoning -- of land use issues. Do you continue to support, based upon those tabulations, which are not bclbre us -- is it fair for me to deduct that flagstone was still the pull- away winner on just the non-financial issues, the issues more related to land use and in preserving the public right to use iho land? Mr. Robins: One could do an analysis, which would be slightly different than yours, which could help conclude that, but 1 think it would be unfair for us to do that. We were asked by you to consider 35 percent of the overall plan and design of the proposed development; 25 percent, the feasibility, the management and the operations. i assume those, along with the five percent minority participation, would be public,.. Commissioner Teele: Well, those tabulations are not before us. The only tabulations that were before -- Mr. Robins: No. Let me... 52 September 17, 2001 0 • Commissioner Tcele: But let nlc explain. That's not before us. i have no way of knowing what they are. All I can tell you is what was sent to me from the manager. The only tabulations sent to us from your group, that 1 can form my opinion on, are the one section, which require -- which provided for 35 percent of the overall plan and design of the proposed program; the range of mixed Uses; the extent of the public access and amenities; the fttlfillnlent of the design guidelines and program requirements; the extent and commitment to the public use of the objectives and goals; the appropriateness and the duality of the design; the appropriateness and the relationship of the upland -- the harmonious and eomplimentaiy (INAUDIBLE"). That's the only information that is before us, Mr. Robins. Mr. Robins: But, Commissioner Teele, to put it slightly differently, in what you asked us to do, 35 percent of our consideration was... Commissioner Tecle: And that's the only partof my question that I'm asking. 1 don't want to talk about the other 65 percent. 1 want to make sure that the record is clear, that there was consideration, at least by this Commission, of the things that I just read into the record, which is only the 35 percent. Mr. Robins: There is no question that all of these public put-l)ose related issues that you're bringing up were diligently considered and were incorporated as part of our record, and the recommendation that we made to the Manager was unequivocally based on consideration of those factors, as part of the overall criteria that you provided us in the RFP. Cornmissioller Tecle: All right. Now, if you want to talk about other financial issues, that's not before us. Mr. Robins: No. That's... Conlnlissioner 'recle: i mean, it was not transmitted in any -- I mewl, it was transmitted through the minutes; it was not transmitted from your report, but not in terms of the evaluation criteria. -,Mr. Robins: I think we -- if I've answered your question, I'm satisfied with... Commissioner Teele: Well, you certainly satisfied my question on that point because the concern that I really do have is this public use and appropriateness. Now, the issue that Conlnlissioner Gort has raised may have a solution, but it may riot be a solution that is what everybody has in mind right now. Let nlc ask you, Mr. Attorney. How long does a learn have to stay together under the RFP? Didn't we have a mininlum of three years or five years that... Mr. Vilarello I believe the language requires the lean to stay together for the first five years and at least three years after beginning operations. I could read you the exact language in a moment. While 1 find that language, Commmissioner, can I address one poi►it that you made? CommissionerTecle: Yes, sir. 53 September 17, 2001 Mr. Vilarello: You indicated that there was no reverter provisions in this deed. In fact, there is a reverter provision in this deed. So, i don't want to gel too far away from that point. if we violate that deed, with regard to private use, there is a reverter provision, but there is a process -- when f say, simply you need to go to the Cabinet that sits as the Internal improvement Trust at this point, the process is to get their approval and waiver of the (iced restriction. The exact language with regard -- to answer your lest question is, during the first five years of the lease agrrecment or three years after opening of the project, whichever is later, the key members of the team have to stay together. Commissioner Tce1c: Mr. Attorney, let tile tell you where I'm concerned. I guess because of the events of 'Tuesday -- and I just wish this team were a little bit more racially diverse and gender diverSe. I just would welcome the day when people, without any regard to minority rules, set asides, can say we want -- everybody talks about let's celebrate diversity, but the celebration ends right at the bank, you know. Everybody celebrates over cocktails and dinners and paelia and stone crabs and chittlings, but when it's time to go to the bank, it's every man (Ior himself and God be for us all, i wish this group were more racially diverse, but the one thing that I appreciate is you're 1101 involved in went -a -citizen is what I just -- sticking sonic names tip that happen to be named brand, Who said who. So, I -- oil one hand, I'm very disappointed. On the other hand, I'm appreciative that we're not playing a silly game that this City has become somewhat famous 116r. But where We wind up getting hurt and where this Commission gets hurt is in the area where we really have no -- we have very little control over what we've asserted, and it's where the attorney primarily, and tale Manager, go in and make up the contract. And in every case that we talk about these historic great cases, starting with the Sherman Whitmore or the Bedminster, or the marina thing, you know, the Commission has precious little to deal with those rent provisions and those contract clauses; yet, the Oversight Board holds us responsible in the case of Bedminster and all that, in case of (INAUDIBLE) editorial boards hold us responsible, and what frightens tnc is, here we arc saying we're going to approve this contract or we're contemplating this contract, which 1 don't have a real problem Witi1. What 1 have it problem with is going to the ballot in 45 days before any contract provisions have been put together, before any agreements have been made. We all know that it's going to take at least 18 months -- a year, 18 months — probably, realistically, 24 montlis to get everything so that we can have a binding; agreement. That is to say -- have any permits been pulled on this? (INAUDIBLE C'OMMEN'TS) Commissioner Teele: How long is it reasonably going to take to get the permits pulled? Nor. Gimenez: The developer is probabiy saying about a year, it least. Commissioner Teele: And, you see, we're so -- I don't blame us, but we're Dying to do this on the cheap because if we had the permits and everything, we could say, when the contract is signed, how much money is going to be there because we know. Now we've got this situation where we don't even know if permits can be pulled. We don't know if some rare sea grass is on the bed down thea or Some tnlique turtle that has made that his home or her [ionic, their homes. And, see, ill] this means is that, when the lease is signed -- how much money does the City expect to get, Mr. Manager? 1 -.low much money are we going to ask the proposed to put down? S4 September 17, 2001 0 • We heard all of this -- and the thing that bothers nuc about the accountant's presentation and the eighty million dollars ($50,000,000) -- in the range of sixty to eighty million dollars (550,000,000) is, they didn't say anywhere that this thing is contingent on a whole lot of things. Now, we did say, for us to vote here today, we want a firm commitment that the contractor is going to write a check. And how much money are we expecting to get when the contract is signed? Mr. Robins: Commissioner Tecle, just to give you a little insight, our committee was very concerned about this specific issue you're raising, and that is the precarious nature of being able to pull a permit on a mega yacht marina. And I'll ask staff to verify this because we asked this ducstion of each applicant, but one or the things that we were insistent upon knowing is whether delay or elimination of the illeg'a yacht component would (live thein the ability to renegotiate the overall pricing, and i believe the chosen proposal, specifically said on the record, and has agreed that any delays or changes due to that component would not give them the ability to renegotiate. And the reason is is because, as they explained to us -- and I just want to verify with staff that I'm not conrusing one proposer with another -- but they made it fairly clear that the mega yacht marina was more an amenity, something that they felt was very good for the community, but it was not going to be a major profit center in their deal, and, therefore, if that was delayed or it could not be achieved, it wouldn't affect the return to tilt: City. Ani I correct, Dena, in saying that? And, so, I -- I niean, we agree with your concern, and given our limited abilities, 1 think that we did address that anal vet it out fully. Commissioner Teele: But my concerns come from your deliberations, largely. I mean, as I said, I've read your transcript. But, Mr. Attorney, Mr. Matlager, how much money are you saying to its that the City is going to receive upon the contract signing and how much annually, while the. permitting is going on and - I nican, where -- you know the no-brainer in all this, "If it's too good to be true?" This ileal doesn't scorn to be too good to be [fife to 1110 beCa11SC it SCCmS to 1110 that if there is a permitting process issue, that what file developer is going to say is, "Hcy, 1 had a referendum; you voted; I'm going to sue you if you don't give nuc a contract." And, you know, this thin, can -- you know, you need to analyze this thing from the other side of the coin, not From the developer's side but from the City's side. You know, the problem with gentleman agreements is, when there's a disagreenlcnt VOL Cannot find the gentleman and these gentlemen agreements are fine as long as everybody's shaking hands and smiling. So, you know, let's send the developer — let's say that the marina doesn't go forward, then the guy is going to say -- the fine folks are going to say, "Well, we've bot a referendum. We want to go forward." And, so, what you've got now is just a wonderful retail development that someone said competes with Bayside. How do we guard against that? Dena Bianchino (Assistant City Manager): I think that would be something that (lie City Attorney would have to create language that holds the City harmless in the event that their referendum passes, but we cannot successfully negotiate a lease that we would not — Nvo would be held harmless frorn any action by the developer. Commissioner Teele: But, see, that's my concern. We need those hold hanndcss . i1' we're going to vote on this today, %ve need a series of iilanagcnlcnt-retluired issues to be contingent on this vote. I mean, t'm not comfortable voting blue skies right now because 1 can tell you what's 55 September 17, 2001 L, going to happen. It's happened in every deal we've done that we're not fully protected on. I mean, we need to know what are elle conditions, what are the reasonable conditions, business conditions, if we let this go forward? See, it seems to Inc that the easiest thing to do would be to get a unanimous or a vote on the project; instruct the Manager to negotiate, to go forward, to agree on certain permitting issues, and to place this issue on the referendum at the next available opportunity. Othel-wise, all we're getting ready to do is sign over a blank check to the developer, potentially, if there's a disagreement to the checkbook of the City of Miami and that's Illy concern. Vice Chairman Gort: Commissioner Tecle, I had the same, concern. The questions that I have - Illy understanding is, whatever decision we make here, you have to have a contract that has to conte back to us. Ms. Bianchino: Yes, sit- Vice ir Vice Chainnan Gort: And that's why the reason .1 wanted to make sure We all put our doubts on the table today because whatever --- .1 have a problem also with their saying this might not take place, but if it docs not take place, 1 want to make sure the City gets compensated, no platter What happens. So, these are tile things — my understanding is, We Call put on in this contract, aril I corrcet in my understanding? Ms. Bialnchino: Yes, sir, And I would like to read from the resolution that is bc(:ore you today, that further providing that the herein selection of Flagstone Properties, LLC as a successful proposer does not confer any contractual rights upon the said proposer unless and until there has been a favorable vote by the electorate as required by the City Charter, Section 29C -- and this is the important part -- and the proposed agreement has been executed by the City of Miami, which is you. So they have no rights in this resolution to anything until you... Commissioner Tecle: I don't read it exactly that way. And, Mr. Attorney, if' you drafted that, I've got sonle read Concerns with that language, but 1 will tell you right here, right now: if there is not a waiver of the proposal to bring any lawsuit against the City, based upon the referendum, if there cannot be or some form of -- Vice Chairman Gort.: Protection, Commissioner Tecle: -- protection (or the City, we're going to be here all night because I'm not going to open up a checkbook to the City on a lawsuit because, see, what could happen is, we could approve it; it goes to the relerendum; file r0brendurn approves, and then you core back and you've got the sank thing that people are saying about the Bullet Trails, Why hadn't the legislature funded the money for the Bullet Train? it was voted upon. And there is some implied contract when you put something to the voters and that can easily be remedied by everybody agreeing right here, right now that there will be a total waiver and there will be, you know, no lawsuits and releases and all of those kinds of appropriate releases if we can't reach an agreement, and all of things that have to be said and done. Mr, Attonley. Judy Burkc: Commissioner Teel c? 56 September 17, 2001 Commissioner Teele: EXCUse me. Let me just hear from the City Attorney. I'll be happy to... Alejandro Vilarello (City Attorney): fortunately, for the City, there can be no such implied contract as a matter of law in this state. Moreover, the RFP specifically addresses this. The only time that the City can be obligated or held liable under the terms of-- would be under the terms of an executed agreement subsequently approved by this City Commission atter the relCTendum is enacted. At this point in time, if you favorably place this before the electorate, there will be no agreement executed by the City until alter it receives a favorable vote. The only thing; that you can be held responsible to or obligated under Nvould be a signed executed agreement approved by this City Commission. Commissioner Regalado: Excuse me. Would you yield just one second? That is what I said when 1 made sonic comments. If we are going; to defend and publicize this before the voters, we cannot keep telling the people lies because we told them that Parrot Jungle will be done when everybody - and I think that everybody in the City -- and I, as a member of the media supported the Parrot Jungle - you cannot keep telling the people wrong information. if we don't have the details of what is really going to Happen, what is really the people of Miami are going to get, what kind of project is that going to be, you can't say to the people go ahead and approve this because, when you approve it and i f you approve it, it's going to go to the City Attomey and then the City Attorney is going to make sonic arrangement. So, we'1I be -- we have a situation where you, the people, are going; to be benefited by. 1 am not comfortable with defending this if we do not have the details. if we can hear say, you know, the City will be immune: to every and any legal recourse that the developer will have should he get it, l don't have a problem with that. Commissioner Teele: Legal and equitable. Commissioner Regalado: Accepted. Commissioner Teele: Mr. Attorney, you need to think about specifics. Legal and equitable. We need something along the lines that Cornmissioner Regalado's is saying because l mean, you know... Mr. Vilarello: Commissioner, of course -- as Cornmissioner Rebalado solicited right now, of Course, I can't give you a gtietrantee. I can tell you that the law in the: State of Florida is that as of this day. I lowe.ver, Ms. Burke may vrry well be able to... Commissioner Regalado: No, no. But you don't give the guarantee, Mr. City Attorney. They have to give the guarantee to this City, Mr. Vilarello: No. 1 understand that. Perhaps, Ms. Burke, has -• during the break, perhaps, has something to represent to the City Commission as (lie attorney for the (INAUDIBLE'). Ms. Judy Burke: Yes. If I could address that issue. My name is Judy Burke rind I'ni the attorney for flagstone Properties, and we state, unequivocally, on the record, we waive any right 57 September 17, 2001 0 • to bring any litigation against the City in the event this does not get passed at referendU111, and until a contract is entered into with the City that this commission approves -- Commissioner Teele: That's not the question. Ms. Burke: -- we waive our legal and equitable rights. Commissioner Teele: No, Ms. Burke. You may have misspoken yourself You said in case it doesn't pass. I'm saying in case it does pass. Commissioner Regalado: We're talking in case it does pass. Ms. Burke: Excuse me. Even if it does pass, until we have a contact with the City that is approved by this Commission, we waive our right to bring any litigations, cither legal or equitable against the City. C.`ommissioner Teele: NIS, Burke... Ms. Btirke: And we will sign whatever the Attorney draws up after this meeting, it' you would like to have it in writing. Commissioner Tech I'm not trying to he a lawyer, but that's tine 1'or you to say that. It has no meaning unless the principal says it in this Context -- and the reason is, you know, when the lawsuit sets riled, I can assure you, it won't be filed ny you. Mr. Eric Kuhnc: Mr. TeCle, please trust our work with Judy Burke. She docs represent our interests and we will, as she said, sign any agreement required to protect the City during this pi'oCeSS, until the contract is in place with the City Attorney and illi of you. Cot ninlssioner'Feel c: And if the matter goes before the voters -- if this Commission were to put it before the voters and it were to be favorably approved by the voters, you would still not bring a legal or equitable action against the City until... Commissioner Winton: Until after this signed contract. Commissioner 'recce: Until after a contract has been entered into. Mr. Kululc: Flagstone Properties, consisting of Mlebmet Bayraktar, Shculvood Weiser, and myself, Eric Kuhne., promise exactly as you said, to protect the City as you've described. Commissioner Teele: Eric, let nae tell you, you haven't been here that long, but this City has entered into agreements, which we were one hundred percent correct in and we didn't know that the developer didn't have the capacity, and it takes three to fourr to live years to unwind these things. And, so, they go into a lawsuit; then they bo into Chapter 11, and then they go into this. And by the tinge you uinvind all of this, it's three, four, five years down the road and it lot of frustration. 58 September 17, 2001 The following resolution Was introduced by Commissioner Sanchez, who moved its adoption: RESOLUTION NO, 01-971 A RESOLUTION OF THE MIAMI CITY COMMISSION APPROVING THE CI'T'Y MANAGER'S RECONIMENDATION AND ACCEPTING THF, PROPOSAL SUBMITTED 13Y FLAGSTONF. PROPERTIES, LLC ("PROPOSER"), FOR THE UNIFIED DEVELOPMENT OF A MEGA YACHT MARINA AND MARINE FACILITIES THAT WILL ACCOMMODATE VESSELS E1GIITY (80) DEET AND LARGER, A FISH MARKET, HOTELS WITH 'TIMESHARE UNFI'S, CULI'URAI. AND 1--:DUCATIONAL FACILITIES INCLUDING A MARITIME NIUSEUFM AND PUBLIC GARDENS, RESTAURANTS, RE'T'AIL, AND SUPPORT FACILITIES SUCH AS OFFICE AND PAIZICING ON APPROXIMATELY 10.8 ACRES OF CITY - OWNED WATERFRONT PROPERTY LOCA FD ON WATSON ISLAND AND 13.4 ACRES OF ADJACENT SUBMERGM) LAND; AUTHORIZING AND DIRECTING THE CITY MANAGER TO NEGOTIATE. A L,T:ASE AGREEMENT, IN A FORM ACCEPTABLE' TOTHE CITY A'170RNI Y, WITI-I SAID PROPOSER, TO BE IN COMPLIANCE WITH APPLICABLE CITY CHARTER AND CODE PROVISIONS, SUBJECT TO FINAL APPROVAL, OF THE CITY COMMISSION AND TO INCLUDE CERTAIN TERMS AND CONDITIONS MORE PARTICULARLY DESCRIBED HERI3IN; FURTI-LIR PROVIDING "Cl-lA'I TI -CE I113REIN SELECTION OF THE SUCCESSFUL PROPOSER DOES NOT CONFER ANY CONTRACTUAL. RIGHTS UPON SAID PROPOSER UNLESS AND UNTIL THERE HAS BEEN A FAVORABLE VOTE BY THE ELECTORATE AS REQUIRED BY CITY CHARTER SECTION 29-C ANIS THE PROPOSED AGREEMENT HAS BEEN EXECUTED BY THE CITY OF MIAMI; FUR'Tl1ER PROVIDING THAT IN THE EVENT AN AGREEMENT WIIICIL IS FAIR AND REASONABLE TO THE CI'T'Y CANNOT BE REACHED, THE, CITY MANAGER MAY DISCON'T'INUE' Nt GO`I'IATIONS AND 1'l1E SRI-F,,CTION PROCESS SHALL T1 RMTNATIE WLTIIOUT IlTNANCIAL. OR LEGAL LIABILITY TO THly CITY. Upon being seconded by Commissioner Winton, the motion was passed and adopted by the following vote: AYES: Commissioner Tomas Rulado Commissioner Joe Sanchez Commissioner Arthur 1. Tccic, .Ir Commissioner Johnny L. Winton Vice Chairman Wifredo Gort NAYS: None ABSENT: None 59 September 17, 2001 • 0 Commissioner Winton: Well, then, you need to be a little bit more clear because it sounded to me like you were. Vice Chairman Gort: Go ahead, Commissioner Regalado. We're not asking for that. Commissioner Regalado: Just only Commissioner Gort and myself were here when we were in the midst of the economic crisis and we were so enthusiastically supportive of Grove Harbour that we didn't took any or all precautions about sue and legal cases and all that, and, still, almost six years after that, this is in eyesore, not to mention that we're not getting money, not to mention that we promised that the economic crisis will be solved by doing; that, but it's still an eyesore. So, you know, I understand that the Commission cannot be the Commission of deferral, but they're going to — they're here to make money, not to modify the skyline of Miami. So, you know, if they want to make money, they're going to have to make some harsh decisions. I am going; only to vote yes i 1 we have an airtight resolution, Mr. City Attorney, that frees the City of Miami -- because even if Watson island is not built, at least we won't get sued, like Grove Harbor and the Civic Club and the City and all these real things. Commissioner Winton: Fin all in favor of that, by the way. I'm not arguing; that point Vice Chairman Gort: 'That's all we're asking Commissioner Winton: I misunderstood then because 1 thought ,you were talking about something else. I'm not arguing that point at all. Commissioner Regalado: No, no, no, no, no. I'm just you know, Mr. City Attorney, it's up to you now and it's up to them beeausc -- I metol, we don't have anything; to do. They have to agree and it has to be written inside this resolution. Mr. Vilarello: Yes, sir. Mr. Chairman, we can conclude the representations made in the resolution as part of the recitals as the condition upon which this City Commission acted. Moreover, the RFP has two pages of disclaimers that absolve the City's responsibility in the event that anywhere in this process, the process breaks down, so we will include those as a condition of the City Commission's approval in the resolution itself, if that's what the wish of the City Commission is. Commissioner Sanchez: Mr. Chairman? Vice Chairman Gort: Yes, sir. Commissioner Sanchez: Call the question. C'onimissionei- Teele: Let the Manager at least Answer my... Vice Chairman Gort: Go ahead, sir. Mr. Kuhne: Cal, T suggest that Judy — 60 September- 17, 2001 Commissioner Sanchez: The Manager or the gentleman? Commissioner Teele: The Manager. i... Mr. Kuhne: -- and the City Attorney draft whatever additional language is required, then we will sign it before we leave this afternoon? Thant; you. Vice Chairman Gort: OK. Any further discussion? Commissioner Teele: I'm asking the Manager to put on the record ]low much money we expect to receive when the contract is signed. Because it sterns to me that all these numbers are -- that we've heard, we've trot heard the real number yet, and I want to know what's the real number we're going to get when the contract is signed, and then one year after the contract -- and i told you I was going to ask you this hn the record a week ago - one year after it's signed, what's the minimum dollars we're going to got and two years after it's signed, what's the minimum dollars we're going to get? Mr. Manager or... Carlos Ginlenez (City Manager): Commissioner, that is the subject of negotiation, and we do have minimums in terns of their construction period; we have minimums of after construction. A million dollars during construction. Two million dollars ($2,000,000) after... C:oninissioner Teele: Well, your two years -- you know, it's going to take a year and a half, two years of permitting, by their own testimony. Mr. Gimenez: That's correct. Commissioner Teele: So, you're not answering my cluestion, al all. The day we sign this contract — because we need — this doesn't need to be something that's done by ambush, What is it we're looking to get on the contract signing? The first year after contract signing, while permitting is going on, what is it you allure looking at to require of the developer and the second year, after the contract is signed and the permitting process is going on? You lcrlow, we have the Mayor and we have evetybudy come in and talk about how much money we're going to get cm these developments. Candidly, I don't think we should look at development as part of our hudgct stream, just like — if you go back and you look -- and we've asked repeatedly and .1'11 renew that request -- would someone provide a revemw stream based upon the Bayside, based upon the day we entered into the contract and a revenue stream from (lie day we entered into the contract until now? Because'' we've not learned anything. We keep talking about development as ifit is the saving grace to the City of Miami. Well, if you're going to be around for the next 100 years, it will he, is my point, but these tinges of development realistically don't even begin to come on line in terms of significant dollars for 10 or so years after the Commission action. I mean, I don't think we're going to lie a big number -- l don't think we will be a big number in our budget in a mininium of live ,years, and 1. don't -- that's the point that Commission Regalado was getting at, is the point that i think all of us want to share and be a little bit intollectually honest that this action today and the action by the voters doesn't change the revenues of the City of Miami fol- a minimum of Five; years unless you all are prepared to put something oil the record 61 September 17, 2001 here. Now, ,Mr. Manager, I'm asking one more time: what do we expect to get when we sign the contract with the offerers, the proposal, these fine people, who, admittedly - and Commissioner Winton is right,.- have probably spent almost a million dollars (51,000,000) to date in just putting all of this together and they'll probably spend another half a million dollars ($500,000) on the referendum, looking at the size of this lobbying team that's coming together. So, a lot of Guccis. Mr. Kuhne: May I respond? Commissioner Teele, may I respond to that point? Commissioner Teele: 1 really would like to hear from the Manager, but I'd like: for you to clarify that. Mr. Gimenez: I'd like to hear from them (first, Commissioner. Mr. Kuhne: Attain, thank you for the opportunity to explain this. It is quite a valid question and during our debates we were quite concerned to get money flowing to the City as quickly as possible and that is not altruism. We need the City's Support in order to slake this thing work. The slick you see on the screen is, in fact, the first 14 years of the project. It shows where we are today. We 1110Vc into the next year. '['here is a flow of ,honey that yore leave. YOU have a hundred thousand dollars ($100,000) from its as part of the initial payment to actually subscribe to your request, and there's an additional fifty thousand coming as part of that upon the: successful vote that you had - that's before you today. Our proposal to you is that one million dollars ($1,000,000) flows to the City when any construction of oro• project begins on the site. IF the marina is delayed, it does not delay the million dollars flowing to you as a City. The marina, exists. We know the complications of tine pernlitling process oil that, Ave anticipated delays ir our performance and in our schedule and we are committed to begin the uplands development: without [lie marina permit and a million dollars (51,000,000) flows to the City when that work begins, and it continues to flow during the course of construction. At which point, just over -- as you can see to the yellow, which is the prinlary payment to the City of the two million a year. Commissioner Teele: If' 1 hear you correctly, what you're saying is, you're prepared to pay roughly a hundred and fifty thousand dollars ($150,000) based upon the actions of the Commission and the rel'erendunl, if it's successful... Mr. Kuhnt: We've already paid a hundred thousand as was required by the RFP, and there's an additional fifty thousand, as t understand it. Commissioner Tesla: So, that's a total of a hunched and 1i fly'? Mr. Kullne: Yes, that's correct. Commissioner "Pette: And then there will lie no Curtner payments Until construction starts, which YOU estimate on your chart would be about two years; is that right? Mr. Kuhnt: We're estimating we want fust -track the project, which mea11s that we'd like to start the foundation work before everything else is sorted out, and the wity oto- proposal is set to you is 62 September 17, 2001 thal t11C 1110111Cr1t We turn the first spade of earth on that site, you get a check for a million dollars ($1,0)0,000). Co111inissionci• Teele: And when will that be, based upon your... Mr. Kuhne: As quickly as possible from our standpoint. Commissioner Tcele: But you don't put that in a financial projection. You put a date. So, tell its what date you're putting in. Ain't no date as quickly as possible, not even in Texas. Vice Chairman Gort: For the budget fiscal year two or three or four. Mr. KLIII17C: I'vc just been advised by our lead team, that it's first quarter of 2002. Commissioner RegaIado: Two thousand and two? No, 2003. Mr. Kuhne: Our lead team has changed it to 2003. ]'ill terribly sorry. Vice Chairman Gort: 2002? That's sounds good. Conllnissioner Teele: We accept the 2002. Mr. Kuhtic: YOUr generoSity is legendary. Commissioner Tecle: On the record, you're saying 2003? Mr. Kuhne: TWO thousand three, that's Correct. I want to point out that tile fears that you regard we have the utmost respect for, your comment, Commissioner Regalado, is about the City supporting this. There is nothing truer. 'This is it partnership. I'm on stale owned properties as you've pointed out, Commissioner Tecle. We are all stewards of waterfront properties in this country. We want this proposal to succeed. It must be embraced and owned by not only by the citizens of Miami, but the State of Florida, and we will do whatever it takes in Tallahassee at the Cabinet, and Governor -- a gul3ernicatorial 110M to help sell the project on your behalf. Thank you. Vice Chairman Gort: OK. Any other questions'? Commissioner Teele: Mr, Chairman, I just -- the resolution before Its now is to approve to accept and approve the City Manager's recommendation. The next resolution is to set the date for the referendum; is that right? Vice Chairman Gori: That is correct. Mr. C.11meneZ: Yes, sir, Vice Chairman Gort: Your answer, ;Vit•. Attorney. 63 September 17, 2001 • Mr. Vilarello: Yes, sir. Tlie first resolution in your package is a resolution accepting or approving the City Manager's recommendation, as amended, by the City Commission, Commissioner Sanchez: Call the question on that resolution. Commissioner Regalado: Excuse tile. Mr. City Attorney. Vice; Chairman Gort: Yes, Commissioner Rcgalado: Where the provisions stated on the legal matters will be placed, on Number 1 or Number IA? Vice Chairman Gort: .In other words, the amendinent that has been proposed by the developers, can you make that part of the resolution? Commissioner Regalado: The legal immunity. Mr. Vilarcllo: That would be in item Number 1. The resolution approving the Manager's reconlimridation would be conditioned upon those concerns that you and Commissioner Tecle expressed, and we'll write that into the recitals and to the actual resolution. It will be a condition of this City Commission's approval, as 1 understand (lie position of the City Commission. Vice Chainnan Gort: OK. Is that understood? Cominissioncr Winton: Call the question. Vice Chainnan Gort: Roll call. 64 September 17, 2001 • The following resolution was introduced by Commissioner Sanchez, who moved its adoption: RESOLUTION NO. 0 1 -9 71 A RESOLUTION OF THE MIAMI CITY COMMISSION PENDING LEGISLATION Upon being seconded by Commissioner Winton, the motion was passed and adopted by the following vole: AYES: Commissioner Tomas Regalado Commissioner Joe Sanchez Commissioner Arthur 1-. Teele, Jr. Commissioncr Johnny L. Winton Vice Chairman Wifredo Gort NAYS: None ABSEN'T': None 4, MAKE `PROVISIONS FOR HOLDING SPECIAL MLRVICLPAL .ELECTION ON NOVEMBER G, 2001, FOR PURPOSE OF SUB M7'T'CING TU >LECTORATG 'RLFGRENIDUM BALLOT" QUESTION, BALLOT QUESTION NO. z; "SHALL. THE CITY LEASE''' CITY -"OWNED, LAND CONSISTING" OI~ 24.2' TOTAL UPLAND AND SUBMERGED: ACRES ON WATSON ISLAND TO' FLAGSTUN1a'PROPERT:IES; LLP, FOR. THE. DI VELOP.MENT OF A MEQA` YACHT MARINA, iFISH MARKET, HOTELS WITH TIMESHARE UNITS, A. MARITIME MUSEUM, PUBLIC'GARDENS, CIULTURAL, FACILITIES, RESTAURANTS, ,RETAIL AND SUPPORT FAQ'ILITICS, , FOR45 „YEARS WITH TWO TS ,YEAR'RENEWAh;S,''SU13JE. T TO A" MINIML`IVI; ANN' GUARANTEED: RENT OF $2,00.0,000 AND OTHERRCON`DITIONS THE''CITY MAY REQUIRET' Vice Chairman Gort: I don't know if you all received a copy of the letter from the Greater Miami Beaches and Hotels Association, saying that they would like to sec this project being done. Second the motion to set the date of the election. Commissioner Sanchez: Which date is that? Vice Chairman Gom November 6"" Commissioner Sanchez: So moved, Mr. Chairman. Commissioner Winton: Second, Vice Chairman Gort; There's a motion. There's a second. Any discussion? 65 September 17, 2001 Commissioner Teele: Mr. Chairman, I have an unreadlness, I'm going to be very honest with You. I've listened carefully to everything the attorney has said, but l really think that we are right back into this box of these unlawful delegations. Pill drawing oil nicnlory. 1 think Mr. Burns cited the Roxcy Bolton case in the city of Coral Gables. Tread all that stuff, and I wish you wouldn't write so much because sodic of us read it. Mr. Burns: You should have seen my first draft. Commissioner Teele: Well, I'm glad I didn't. Vice Chairman Gort: it was 14 pages. l read it. Commissioner Teele: But I just think that we have done this too much, too long of rushing things through and not really knowing what we're doing. I don't think, given the timeframe that the proposals have put on the record -- you know, we're two years from seeing any money. There's a lot of work to be done. I think that this is the lieight of frivolity for us. It is absolutely the Brilliant and brightest and best thing that I've seen from the developer's point of view to get LIS to try to put this on the ballot, and .I have no animosity at all against what you all have trying to do, i just think we ought to do our job as well as you're doing your job, There is no prejudice to this developer, absolutely no prejudice; in this action that we've just taken by giving hiin the right; it gives everybody a food year and ii half to work toward (lie permitting process and all of (his. Obviously, the developer is in a position where lie doesn't have the referendum, and, in that regard, the developer is at Borne more risk to be very candid with you, but why should we tell is citizens short without getting all the details and the facts'? We have an equal obligation on this side of the table to (to our job as the representatives of the people, as they have as entrepreneurs and developers. And I think for its to certify something to the voters, to use Commissioner Winton's words, if we don't know the (acts, and we don't have the facts and that's what we're going to be working out over the next few years, really is not where I want to he. I wish the developer -- l raise this with some of the people, the attorney this morning -- I wish (lie developer had come back and said, look, we're willing to work with you and be your partner on this, because that's what we're calling for, is a partnership, and partners don't do it the way we're getting ready to do it. We're basically getting ready to turn over pretty inuch the terpins and conditions to them and they're going to go out and sell it to the public, and this is why I disagree with the City Attorney, not oil the law, but on the politics. They've got to go out and put an ad campaign together, and you know what? They're going to make presentations and representations, which we have no control over. "That's just a political fact of life, and were getting ready to authorize them and to write thein a blank check to do that if we put this issue on the ballot for this November. There is no prejudice to the developer, The RFP (Request for Proposal) requires that there be five years; that the teams slay together; we can get a contract, possibly, within the next 60 clays, and 1 don't expect the developer, subject to the referendum -- a contract subject to the referendum. The same thing that we were trying to do with the Marlins, where we were going to do the referendum, subject to legislative action in Tallahassee, And, so, I think we need to -- we need, as the stewards of the City, to do our job as well as (lie developer's doing. l think this development teem is a dream team. I think, with one or two minor absences, but as constituted, is a dream team. 'Thc composition of this time at this point in time in our history makes me very, very proud to want to go Durward with this, and I'm very proud and l 66 September 17, 1-001 • 0 hope that you will get the hell out of Orange County and find you somewhere in Miami -Dade County, like the Grove or Little .Haiti, Qvertown, or some place that you would be comfortable. But, you know, we need to have quality citizens, like this development team that is coming forward. And I want to be very positive and encouraging the development team to make a long- tern) commitment. I'm totally impressed with the fact that the team Imows the difference between Aventura from Pine Crest and knows (lie difference between -- what's that exclusive thing lily wife goes to? Commissioner Regalado: Bal Harbour? Commissioner Teele: Bal Barbour. Bal Harbour. And these other shopping malls, And, so, we've got a team, you know, that i think we can be proud ot; but 1, for one, just want to lint tiie caution light oil; that we need to go a little bit slower on this. We're not going to lose one day if we have a true partnership at this point, and to be very honest with you, I'd like to be in a position to say, let's even go 50/50 with you on the upfront costs, subject to our being reimbursed, You know, those are the kinds of things that partners would talk about. If we've got to do a permitting, let's go 50/50, and once -- after the referendum, you pay us our money back because the truth is, we should have handed over to you a permit. That's what we Should have had in the RFQ (Request For Qualification) or the RFP. We should have had a permit there, and then we wouldn't even be in this discussion, but we haven't done our ,job. We don't have a permit. We're relying upon the private sector to do the permitting, and we can do it either way. But the fact of the matter is, is that there's going to have to be a permit clone. It's going to take at least a year, 18 months, two years. We're going to be nowhere near, with the environmental issues, and going before the Cabinet, on that.. And, so, illy view is, is that we ought to slow this down before we certify this to the voters, so that we know what we're going to be able -- the voters know what they're going to be able to get, and then we don't turn over to the voters a campaign that's going to be designed by a bunch of well -intended, well-meaning'PIZ people who really, really, literally, end of the day, are going to be speaking for this Commission. Whether we admit it or not, that's the way it's going to happen. And, so, I'm Just one person on this deal, but i will tell you this We need to protect the citizens and we need to do our job. And, so, I think we should go tbiward with this; and if it -- if this doesn't -- if this were to pass, that is, if we do agree to put this on the ballot in two years, 1, COr one, would be saying that the City should be a partner; we should spend 50 percent of all the costs, up until tho referendum, and then we get our money back. Anis that's, I think the way a partnership should be made, and not just trying to get -- do this on the cheap because that's all that we're trying to do. We're saying, we don't want to spend any money; it's all on you, ►unci, therefore, you've got the total lead on tl►iS. And I clon't tllinlc N1,c'i-c bciiig i-espoilsible to the Citi%eils. That's just one man's view, Ono person's view, and whatever the majority of the Commission does, I'm going to support it, whether it's on the ballot. in November -- I want to say this real clearly. I will, in all probability support this, whether it's on the ballot in November of 2001 or November of 2003. 1 think it's a great project, potentially, but 1 just think we need to get the I's clotted and the T's crossed, and know that it's a great project. Commissioner Regalado: Mr. Chairman? Vice Chairman Gort: Yes, sir. 67 September 17, 2001 Commissioner Regalado: That's precisely what I said, and CUtlln-iissloner Tecle has, in detail, explained it. When -- if there is no coil'illitlllent by the City of Miami, (lie Manager just said a few minutes ago that the only tlling that the City can do was not to advocate but to inform. Well, we didn't do that when we needed a Charter amendment, and it was in (INAUDIBLE), Mr. Manager. It was one of the tenth or eleventh manager that we had from that period of time. But the fact is that we are not doing the homework on the Charter amendment, Johnny, that you spent a year working oil. So, the information will he controlled by the developer, and that is what I said, and that was Commissioner Tecle said. Promises are going to be made to the people of Miami that we are not responsible. So, that's what l kept saying. There is a remedy. We don't have to wait until 2003. There is a process that we can do. There is a primary election in March, in the State of Florida, and that primary election is going to be held in the City of Miauii, too. That's what ... (INAUDIBLE COMMENTS) Commissioner Regalado: No, the September is the County, Walter. 1 think that the primary is for the gubernatorial... Walter Foeman (City Clerk): I've checked with David Leally and lie has nothing on the ballot. Commissioner Regalado: OK. Well, -- so, you know, I and sure that paved for a special election in the City of mianli with the support of (lie full Commission, which you have, becaUse yoU IUSt got five votes to support your project, lt's more cheaper than spending a million dollars ($1,000,000) in the next 30 to 40 days. Commissioner Winton: Conuliissioner Regalado, could we ask the City Attorney to answer your suggestion that there are other days of this -- that -- in which this referendum could he held, Commissioner Regalado: Sure. I'm just saying, Johnny, you know, that --we just supported this project. So, it means that we like this project. Now, whether or not we can participate, that's up to us and how to control that information, it's impossible, because, you know, like all candidates, every candidate says, you know, I'm going to do away with taxes and all that. They're going to say the best about this project, which is beautiful, and they have all (lie right to do it, but what 1'nl saying is, you know, we don't have the details to don't fie to the people of Miami, and that is a concern to me because I would love to campaign for a project of this magnitude. Mr. City Attorney. Mr. Vilarello: Yes, sir. We have a special provision of the City Charter dealing with Watson island, and it requires that the referendum to be held at a general election of the City. Elsewhere in the City Charter, we define general election as the elections of the Mayor and Commissioners. So, it must be November 6"', and the next one will be two years after that, the next general election. Commissioner Regalado: That's for (lie decision on the project. I'm talking about changing that. What is the process to change that? Can we do that sooner than two years? 68 September 17, 2001 Mr. Vilarello: Yes, sir. You can do that by special election. You have to adopt the question, no greater than 120 days before the election, no sooner than 60 days before the election. You can do it by special election or whatever other Citywide election that is held between now and then. Commissioner Winton: You can do what? Mr. Vilarello: Change the Charter. 'That's what Commissioner Rcbalado is asking. ChaIlge the Charter provision that applies to Watson Island, Commissioner Sanchez: Mr. Chairman? Vice Chairman Gort: Yes, sir. Commissioner Sanchez: Let me see if I get this right. We had a four-hour presentation; debated it for three hours; we agreed the project's a good project; we agreed it's financially good lbr the City; we approved it unanimously, and now we're willing to extend the Vote until the year 2002? '03? Let me do three -- I mean, lot me just say one thing. I'll) sure the devclopers not going to get one permit unless this passes the referendum. i think -- that's something that Pin just picking Up here. So, instead of delaying the process for two and a half years, we're going to extend it for almost five and a half years. `That's absurd. We just approved it right now, 1 nican, unanimously. You know, Pnl not going to question the voters. Put it out for referendum; let them decide how they're going to do it. [f'it's good for the City, thumbs up, thumbs down, but to extend it for live hand a half years -- here's another message that we're sending out: Here, come develop for us. Yeah, come down to Niiami to develop. We're going to treat you fine. We're going to help you all the way. And it's absurd. It's been a long day. it's absurd. Commissioner Winton: Mr. Chairman! Vice Chairman Gort: Yes, sir. Coil] III 1ssioiler Winton: I think that, atter this is said and done, I think your idea, Commissioner Regalado, is a good one. We -- it's too bad we didn't pick up on this -- because even the Charter changes were moving ibrward. Our new Charter changes don't address this issue, and that's really unfortunate, And 1 think that you're right that at some point down the rode, we need to revisit this issue and maybe go back to the voters with one additional Charter change with relates to how we deal with this entire process. However, the concern that -- and I don't disagree with You that you don't have a full package of a deal to submit to our voters, that they could consider, but that's not the fault of us. That's the fault of the Charter. The Charter was created that way and created this process. So, it's a Process we [level' deal with. However, there are safeguards that are unbelievable that still rests directly with us following a vote of the electorate. And the safeguards are we have to approve a Mayor Use Special Permit and that Major Use Special Permit process gives us unbelievably broad powers, as we've all come to learn. So, in the contract that we're going to ultimately sign with the developer, that contract has to come back before us, So, all the safeguards that we heed to protect the public interest before the First stone Eels unturned has to come hetore this Commission to make a decision. And, so, the only missing 69 September 17, 2001 Piece that T see in this, that would be nice to have, ]grant you that-- would be the piece that we have the whole deal nice; and neat and tidy and wrapped up and hand it to the voters, but our process doesn't allow us to do that. And to -- and the development community simply -- what would it -- I suspect that a proiect like this, the architectural costs, the engineering costs, and all that jazz that you're going to have to get just to get through [lie MUSP (major Use Special Permit) permitting process is going to be a couple more million bucks, three million bucks. 1 don't know. Some very, very significant number. And the developer community ain't willing to put four million bucks upfront and then pray to God that somebody out there voles yes instead of no. And they're not going to do that. I don't -- you wouldn't do that. I wouldn't do it, and f don't think we can expect thein t0 (to it. So, \Vllile I agree with you maybe -�- our process is flawed because of the wily aur Charter is worded, t think we still have all the safeguards in the world to protect this public's best interest on that site as we move for%vard. COn1t111ssioner Tecle: Mr. Chairman? Vice Chairman Gort: Yes, sir. C'onmlissioncr T'eelc: May l may 1 then -- because we seem to be -- I'd like to hear from that silver -tongue auditor that I've come to really respect and like:, Mr. Eric Kuhne. Mr. Ku}lnc, 1 raised a question and -- does it (to - in your mind, would it be a fatal blow to you all if we put the referendum off for two years and worked as partners in the ensuing process? Eric Kuhne: Gentlemen, we're going to work as partners. We want it on the referendum. We will work to achieve all that you're concerned about. We need the referendum to get the power -- to Ile empowered to Secure the permits, to complete our financing, to get if international tenants to believe in you and the City of Miami. We will achieve all of your concerns. The partnership is maintained. We need your support to get this on the referendum this November. Vice Chairman Gort: OK. further discussion.. Commissioner Winton: I'm ready to vote. Commissioner Sanchez: Call the question. Vice Chairman Gort: We need a motion. Commissioner Sanchez: 011, we got a motion. Commissioner Winton: We got a motion and a second, Vice Chairman Gort: Motion. You made a motion. You second'? Commissioner Sanchez: I second, 1, ollinlissioner Teele: Mr. Chairman? 70 September 17, 2001 Vice Chairman Gort: Yes, sir. Commissioner Tcele: Before we vote, I'd like for you 10 give us some leadership in this issue because you and Commissioner Regalado have been here the longest and you've seen things come hack to haunt Us I just would like to at least have a sense of how you see this issue on the date. Vice Chairman Gort: Commissioner, I lluve the experience of the Parrot Jungle, and I know sometimes it can be very confusing; to -- and we have elections coming tip November 6"'. We have a lot of candidates running and they're going to Ilse this as a political issue, hilt at the same time, I believe that the -- we had put all (lie resources together. One of the reasons we put a committee is to take the politics out of that decision, and that's why we selected -- by the way, 1 want to, once again, extend my coril;ratulations to the committee. I think the chairperson did an excellent job in representing the committee. I believe the -- Regalado has a point, and politically, we have to put this whole thing together because 1 am sure some of the people have been disappointed by today's decision, and I'll take on (INAUDIBLE). They don't do that. I hope they don't do that. I hope we join forces and we make sure that this project is really going to be a significant henelit for the City of Miami and fOr South Florida. (INAUDIBLE,) ,reason that we talked about the economic, but I believe one of the things that I'm listening and I'm hearing constantly from tale Convention and Visitors Bureau, (INAUDIBLE) from the people in downtown Miami, there are hotels in downtown Miami. We have a special committee that we're getting together to see how we can do -- and they are ill favor of .it. They believe that this type of event, they need it as soon as possible, and the more (INTAUDIBLE) that we could have in the City of Miami, the more people we can attract to the City of Miami. I understand your concerns, and I believe the statement was made by the: developer, that we will try to get as much information and documentation as possible, and agreement among ourselves in writing, because the people deserve to know. If not, they'll vote against it. And that's the chance we have to take. 1 personally believe that we should all vote for it. We should agree, and Nve should go all out in favor of this favor of this once we get -- make sure we have all the documentation needed to assure that we call answer all the questions that have been asked today, and the citizens receive those answers. Commissioner Teele: Mr. Chairman? Vice Chairman Gort: So, I... Commissioner Tcelc: In light of your comment, then 1 would ask Eric to coine back, please. W0111d you pronounce your last name properly? Mr. Kuhnc: it's -- we had a baseball Commissioner called i3oey Kuhne, and I pronounce my name: the same way, Kutnlc. Commissioner Teele: Kuhne, Mr. Kuhne, Yes. Thank you. 71 September 17, 2001 Commissioner Teele: Mr. Kuhne, can we receive your personal assurance that the campaign for this will be run in a manner that is in the highest quality and good taste, and that this issue will he segregated and handled strictly on the merits of this issue from you, and .Further your team -- and, further, that you all will work -- endeavor, to the extent practical, to clear the information, the campaign information, which is your first amendment right -- Mr. Kuhne: Yes. Commissioner Teele: -- with our City Manager to ensure that misinformation and misstatements are not disseminated? Mr. Kuhne: Commissioner Tecle, on behalf of Sherwood Weiser and Mebmet Bayraktar, the directors of Flagstone Properties, 1 promise you that wilt we work with the City to deliver the clearest and most truthful presentation of the potential of this project to all. the voters of your community. And one other think, gentlemen. We have a process that we work on all of our projects, and that is underpromising, and overdelivering. It is a different way of doing work, but it is the only way we can guarantee what we have offered to all of you. And the partnership, gentlemen, begins today. Commissioner Sanchez: We should get that from all the parties. Commissioner Tecle:. I'm going to, based upon the presentation that's been made oil the record, presentation that's been made off the record, I'm going to withdraw my objections to the date. Commissioner Regalado: Mr. Chairman? Vice Chairman Gort: Yes, sir. Commissioner Winton: Tomas, 1 have a meeting at 3:30, Commissioner Regalado: I know. Nl be brief. Commissioner Tecle has been very, very diplomatic. I'll be a little more upfront. You know, one of the proponents gave otic of the candidates the incumbent (INAUDIBLE). What he (INAUDIBi..E), Commissioner Winton: I was waiting for someone to (INAUDIBLE), Commissioner Regalado: -- and run your campaign ort the merits because if you don't, you're going to contradict some opposing forces, and this is precisely what I was saying. i mean, I hope that we don't see any checks from you on - or (lie Mayor or the other candidates because, you know, it's about what they say in Rome about (INAUDIBLl;), you know, "You don't only have to do right, but look. right." And... Commissioner Tecle 1 want to ob'ject to that, Commissioner, because some of tis are on the ballot and if the :Mayor got a chance to get... (LAUGHTER), 72 September 17, 2001 Commissioner Regalado: Wcll, I'll... Commissioner Tecle: if the Mayor got a chance to raise forty thousand dollars ($40,000) Commissioner Regalado: No, no, tWenty-four thousand dollars ($24,000). Let's... Commissioner Tecle: Twenty-four thousand dollars (S24,000) that -- well... Commissioner Regalado: Well, let me put it this way: if you give to the Mayor, you give to all of them. (LAUGHTER) Vice Chairman Gort: Let's go Commissioner Sanchez: All right. Hold it. Vice Chairman Gort: All right. Roll call. Roll call. Commissioner Winton: And we need -- before we do, we need the language read into the record. Mr. Vilarello: This is resolution that's in your package under I A, and I'll read the title: A resolution of the Miallll City Commission, witll attachments, making provisions for Molding a special municipal election on November 6"', 2001 for the purpose of submitting to the electorate at said election the filing referendum ballot question to be known as ballot question number 3: shall the City of Miami be authorized to lease City land consisting of 24.2 total upland and submerged acres on Watson Island to Flagstone Properties, LLP, for the development of a mega yacht marina, fish market, hotels with timeshare units, a maritime nluseucn, public gardens, culttu•al facilities, restaurants, retail, and support facilities fbr 45 years, with two 15 -year renewals, subject to capital investments, a mitlirtuun annual guaranteed rent of $2,000,000, and other conditions the City may require; describing the registration, books and records maintained under the provision of the general laws of Florida in Chapter 16 of the Code of the City of Miami, Florida, as amended, which the City has adopted and desires to use for holding such Special municipal election; designating and appointing the City Clerk as the official representative of the City of Mianli with respect to the use of such registration, books and records; authorizing and directing the City Clerk to publish notice of the adoption of this resolution and the provisions thereof pursuant to the applicable law, and directing the City Clerk to cause a certified copy of the herein resolution to be delivered to the Supervisor of Elections of Miami -Dade County, Florida, pursuant to applicable law. This is a resolution, which approves the question that was within the caption that I just read, and 1 would suggest, since this is the question that's going to the electorate, if you have any questions, now is your opportunity to change that question. We are limited to 75 words or less. Vice Chairman Gorl: UK. Roll call. 73 September 17, 2001 The Tollowing resolution WAS i17i1'OdUced by Conunissioner Sanchez, who moved its adoption: RESOLUTION NO. 01-972 A RESOI,U'1'ION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT (S), MAKING PROVISIONS FOR HOLDING A SPECIAL MUNICIPAL. ELECTION ON NOVEMBl.R 6, 2001, FOR THE; PURPOSE OF SUBMITTING TO THE CLECTOItATE AT SAID ELECTION THE FOLLOWING REFERENDUM BALLOT QUESTION, TO BE KNOWN AS BALLOT QUESTION NO. 2: "SHALL THE CITY LEASE CITY -OWNED LAND CONSLSTING 011 24.2 TOTAL UPLAND AND SI.113MERGED ACRES ON WATSON ISLAND TO FLAGSTONE PROPERTIES, LLC, IOR THE DEVELOPMENT OF A MEGA YACHT MARINA, FISH :'MARKET, HOTELS WITH TIMESHARE: UNITS, A ,MARITIME MUSFUM, PUBLIC GARDENS, CULTURAL FACLLITIE S, FOR 45 YEARS WITII TWO 15 -YEAR, SUBJECT TO CAPITAL, INVESTMENT, SUBJECT TO A MINIMUM ANNIJAI, GUARANTEED RENT OF $2,000,000 AND OTHER CONDITIONS THE CITY MAY REQUIRE?"; DESCRIBING THE REGISTRATION BOOKS AND RIPCORDS MAINTAINED UNDER THE PROVISIONS OF THE GENERAL LAW'S OF FLORIDA AND CI IAPTER 16 OF TF1 F. CODE OF THE CITY OF MIAMI, 1,LORIDA, AS AMENDED WHICH THC CITY HAS ADOPTED AND DEStR-FS TO USE FOR HOLDING SUCH SPECIAL MUNICIPAL ELEC:TION; llI SIGNATING AND APPOINTING THE CITY CI...I�RK AS TRE OFFICIAL REPRISENTA'T1VE OF THE CITY COMMISSION Wl'.CIi RESPECT TO THE USE OF SUCH REGISTRATION BOOKS AND RECORDS; AUTHORIZING AND DIRECTING THE CITY CLERK TO PUBLISH NOTICE OF PROVISIONS THEREOF PURSUANT To APPLICABI.I: LAW; AND DIREC'T'ING THE CITY CLERKTO CAUSE,, A CERTIFIED COPY Ole TME HEREIN RI SOLUTION TO BF DELIVERED TO THE SUPERVISOR OF ELECTIONS OF MIAMI-DADF COUN'T'Y, FLORIDA, PURSUANT TO APPLICABLE, LAW. (I-Ierc follows body of resolution, omitted here and on file in the Office of the City Clerk.) 74 September 17, 2001 Upon being seconded by Commissioner Winton, the motion was passed and adopted by the following; vote: AYES: Commissioner Tomas Regalado Con�missioner .roe Sanclhez Commissioner Arthur L. Tecle, Jr. Corn missioncr Johnny L. Winton Vice Chairman Wifredo Gort MAYS: None ABSENT: Nonc Vice Chairman Gort: Yes. And, once again, I'd like to thank the comliitlee for a job well done, and i believe this Chairman did a great jot). And wait a minute, before you all walk out. Those people that were not awarded the contract today, the City hopefully, we're going; to have some more projects to come, and let's make sure we get the benefit that belongs to the City. Yes, sir. Mebmet Bayr•aktar: Mr, Chairman, Commissioners, I'm honored and privileged to be here and starting this partnership, as you all said. 1t was your idea, first of all, the City's idea to get this project going, and it was my idea to come over here and start it �rrorlcing and assembling this beautiftil team we have now, and after that selections committee, review Committee, whatever we call them, that it became their baby also, *Island Gardens. Now, as of today, it becomes your, baby also, and by November Grp', it will be everybody's baby, and we're going to have to make; sure that Nve take good care oCthis little baby and it's going to grow and it's going to be a great example of what a city can do with entrepreneurs, developers, along with team members. And I'd like to thank you each and every one of you, but I'd also like to thank, on your behalf; my family, especially my two daughters, and my wife and my extended family because I've been here spending most of my tirne ... Commissioner Tecic: Are they here? Vice Chairman Gort: Yeah. Commissioner 'feele Are they here? Mr. Bayraktar: Not yet. They're probably getting ready to pack and come down here, and to thank you and I am committed to get this project going and I'm honored and privileged and so excited to get this going, and I can't wait for the grand opening; of the day, and I hope that we will all be one piece all together on that great day, and I don't expect that to be more than beginning of 2005, and I'm aiming to got this project grounded by 2005, .lanuary, or even by December, and that's my aim, and I'rri sure that everybody will be aiminC,' and helping; each other since it's -- this is our baby. Thank you very much. (APPI,AUS Is) 75 September 17, 2001 Vice Chairman Gort: It's our pleasure. Let rile give you one -- beim; the net§'corner this town, let file give you it little advice. Mr. Bayraktar: Yes. Vice Chairman Gort: The work really begins now. My suggestion is, you get together with the other two proponent and talk to them and make sure you bet as many help -- as much as -- we're going to help as 1I1llch as we can because we think it's a good project, but 1 think you should start talking to people. 'Thank you. Mr. Bayraktar: Thank you. Com ill issionet- Teele: Mr. Chairman? Vice Chairman Gort: Yes, sir. Commissioner 'reele: Meredith Nation? (APPLAUS E). `['here is one thing: Who is Meredith Nation, Mr. Manager? Who is Carlos Gimcnez (City Manager): Woman in red. Woman in red. Commissioner Teele: Mr. ,Manager, xhich we hear all sorts of things -- the good, the bad, the ugly -- and those of us in the Commission, most times we don't react to it, at least I don't.. There is one uniform statement that has come to everyone that has talked to file about this project, and that is, is that we have a superstar in the City. Her name is Meredith Nation. Truthfully, I did not know who you were personally, until today. But I want to thank you, on behalf ofall of us, for carrying yourself in such a professional and positive manner. Everyone -- the ones that have lost, the ones that are not Isere today, as well as those that are here, including the loyal opposition, Mr. Blu-lis even -- has said, you are nothing but in outstanding person, and it' they can get unanimity on that, I think weall owe you a salute. (APPL,AUSE) Meredith Nation: it's lily City, too, and it was my pleasure. (APPLAUSE) (INAUDIBLE COMMENTS) Vice Chairman Gort: Let's go. We've got to go to work. 76 September 17, 2001 THERE BEING NO FURTHER BUSINESS TO COME BEFORE 'r(IF: CI'T'Y COMMISSION, THE MEETING WAS AD.IOIJIZNI,[) AT 3:41 P.M. ATTEST: Walter J. Foeman CI'T'Y CLERK Sylvia S. Scheider ASSISTANT CITY CLERK (SEAL) .IOECAROLLO MAYOR 77 September 17, 2001