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HomeMy WebLinkAboutM-98-1069(rtv of 4siami, Xlvrix ARTHuR E. TEELe JR i.� irl Mly�l��l�'Lht ••• Mmomn&im To: Alejandro Vilarello, Cily AUomey From: Arthur E. Teele, Jr., Commissioner Dais: October 9, 1998 15 P.O. aOx 313-iV- . MIAM1, FLORIDA 33233-C)706 1•3051 �1150-s]90 FAX 130Z/ 25o•s?3] Re: Commission Discussion: Community Redevclopment Agency Assets et al. l am in receipt of your memorandum of October 8.1998, in regard to the above referenced subject. I appreciate your courtesy and diligent research of these matters which are of critical importance to the sustained development of the Southeast OvertownlPark'West Community Redevelopment Area. To facilitate a thoughtful discussion and final decision, 1 agrer, that it is imperative that a comprehensive review of the background and all related facts be presented to the City Commission. I believe that it is essontial that your office have sufficient opportunity to brief the Mayor, the Members of the City Commission, and the City Manager on this important matter prior to the City Commission meeting {October 27). Therefore, and in de*rence to your request, I will not initiate a discussion on these matters during the City Commission meeting of October 13. Ilowever, I fully !Meet this, and all related matters to be appropriately placed too the City Commission agenda of Tnexda-Ta0aiwA27,1998. Regards. Attachments (2) CQ The Honorable Wyor The ihlnclrable Vice Chairnun and Membus of dic City C munission Walla t'ueman, City Clerk Donald WwAnw, Co Manager iliIda Tejcra, C:RA Admwistmliv RI)hert Xricdrnan, WiIIiam i341um, blitabeth McBride, C RA Coward, Holland and Knight b8-106v CITY OF MIAM1 CITY ATTORNEY'S OFFI MEMORANDUM TO: Honorable Arthur E. Teele, Jr., City Co FROM: Alejandro Vilarello, City Attorney DATE: October 8, 1998 RE: Community Redevelopment Agency, Disposition of Assets :;r= As you are very much aware, during the City Commission's meeting of September 28, 1998, several issues were raised regarding the disposition of Community Redevelopment Agency ("CRA") assets and funds. Further, you requested that the City Attorney study the matter and report to the City Commission at its meeting of October 13, 1998. Pursuant to your request, my office has reviewed relevant federal and state statutes and regulations, and local legislation. We have also endeavored to locate relevant documents relating to the CRA and the Overtown/Parkwest Redevelopment District, with specific emphasis on the creation and disposition of CRA assets. Our research effort, with the assistance of the City Clerk and other deparbmts, has resulted in and necessitated the diligent review of hundreds of documents and transcripts. It has also necessitated marry inquiries and meetings. All of the aforementioned is, of course, an effort to discern and understand the legislative and administrative history of specific CRA transactions discussed by you, the Commission and the City Manager on September 28, 1998. As you can well -imagine, this task has, inevitably, proven to be an arduous one. Consequently res ect •s i ' discussion of this matter be erred to the Commission's meeting of Octo er 27, 99 nw� ) c: Honorable Mayor and Members of the City Corrunission Donald H. Warshaw, City Manager Walter I Foeman, City Clerk JF.M;YI:CRA 1ae*t;p of Wt101 CRA n n o to Teel..whk Litt? of Oinuti, Tfrl_ ikra AH I HUH E. rtLLt JH. •", ;_"" oT CiCMM193:ON_R T� q't», Vt [UV (A� 0 01-c viClo - . To: Onnald Warshaw, City Manager M" From: Arthur E. Teele, Jr., Commissioner Dam: October 6, 1998 - Rs: Agenda Items: Community Redevelopment Agency, ct al. P.O BOX 33070A MAW PLOA DA 33233.07,10 (2061250-5500 FAX t.;" i :50.5399 Pursuant to the City Commission discussion and actions at the September 28, 1998, City Commission meeting, an agreement was reached that the following items would be placed on the upcoming City Commission agenda (October 13, 1998): A. City Commission ratification of the FY 1998-99 Community Redevelopment Agency budget (ratified by the CRA Board of Directors on September 22,1998). B. Cooperation Agreements between the City of Miami and the Community Redevelopment Agency (approved by the CRA Board of Directors on September 22, 1998). In addition, based upon the budget discussion, and related issues that were unresolved at the September 28, I998, City Commission meeting, I request that the following items be placed on the October 13,1998, City Commission agenda: i. Discussion and Personal Appearance: Off -Street Parking Representative Re: The Status of Revenues diverted from Arena Parking Lots 057-60. 2. Discussion and Personal Appearance: Robert Friedman, CRA Counsel Re: Legal Implication of Revenues Diverted from Arena Parking Lots #57-60. 3. Discussion and personal Appearance: Mr. Charles Flowers, Chairman, Overtown Advisory Board Re: Revenues Diverted from Arena Parking Lots *57-60. 98-10 9 October 6, 7 998 a. Discussioa and Motion: Request for an Opinion from the Florida Attorney General, and the Florida Comptroller General in regard to the diversion of revenues and assets f rem Community Redevelopment Arcas. By copy and distribution of this memorandum to the Honorable Mayor and Members of the City Commission I am in compliance with the City Ordinance, and rules and procedures for "notice." Regards. Cc; TQ Honomble Mayor The Honombk Vice Chairman and Members of the City Commission Alex Vikrelk% City Attorney Waiter Foeman, City Clerk Hilda Tejem CRA Administrator Robert Friedman, CRA Cowie), Holland and KeWd William Bloom, CRA Counsel, Holland and Knight Elizabeth McBride, CRA Speeki Cmmsel, Holland and Knight 98-1069 October 27, 1998 The Honorable Vice Chairman J.L. Plummer and Members of the Miami City Commission 3500 Pan American Drive Miami, Florida 33131 COMMUNITY REDEVELOPMENT A G E N C Y amity of Miami CRA FY '99 Budget Plans, Programs and Activities (Annual Element) Dear Mr. Vice Chairman and MembeV of the City Commission: 300 Biscayne Bou:evarci "a, Suite 430 Miami Florida 33131 The City of Miami Community Redevelopment Agency (CRA) is pleased to present its FY '99 Budget/Plans, Programs and Activities (Annual Element). As you may recall, this budget and program of projects were reviewed and approved by the CRA Board of Tel. Directors at its September 22, 1998, meeting. (3051 This document represents the CRA's operational plan for FY '99. We believe that now is the time to forge the positive economic changes, to undertake substantial job expansion and job creation, and favorable business environments which have escaped the designated community redevelopment areas of Southeast Overtown/ Park West. Similarly this plan envisions incremental improvements to the infrastructure in the Omni Redevelopment District. Our budget and plan reflect this commitment. The CRA has established three goals for FY'99: 1. Increase property assessments and values, and stabilize the neighborhoods of Park West and Omni with the relocation of deterrent uses and development of infrastructure improvements. 2. Establish a recurring stable and reliable funding source for the CRA, with approved expansion of areas adjacent to and within the "spheres of influence" of the CRA boundaries. 3. Revitalize the Historic Third Avenue Business Corridor through planning and infrastructure improvements necessary to create an environment conducive to private investment and substantial job creation, with a view to recreate Overtown as a visitor and tourist destination Mecca. 579-3324 Fax (305) 372-4646 98-969 COMMUNITY REDEVELOPMENT The Honorable Vice Chairman J.L. Plummer A G E N C Y and Members of the Miami City Commission October 27, 1998 Page 2 The goals, objectives and priorities of the CRA FY '99 budget are based upon the CRA's statutory mandate to develop and implement a workable program "...to eliminate and prevent the development or spread of slums and urban blight..." Public Participation: Urban revitalization begins in the neighborhoods. It is critical that the community be our strategic partners as we create incubators of economic opportunity in Southeast Overtown/ Park West and the Omni Districts. In the past, government has made the mistake of "defining the urban issue" and crafting solutions without the benefit of input from the effected communities. Over the past 9 months, the CRA convened no less than 3 public meetings and workshops with residents and stake holders of both community redevelopment areas in order to define the perceived problems, and identify barriers to business, and develop potential solutions. The workshops were critical in refining the scope of activities that will be undertaken in FY '99 and beyond. An additional resource used in developing this budget was the response of the Southeast Overtown/ Park West communities drawn from the extensive and well documented public participation during the development of the 1996 Metro -Dade County/City of Miami joint Empowerment Zone application. The clear consensus of the residents of Southeast Overtown/Park West is the critical need for employment opportunities —jobs, jobs, jobs. The City Commission's recent action to create the Historic Third Avenue Business Corridor addresses this critical need. Conversely, the citizens of the Omni District communicated, through the Omni Advisory Board, the clear need to enhance their quality of life through increased park space, transportation and pedestrian related public amenities such as, grand entryways to the neighborhood, landscaping, and streetscaping. While the CRA Board acknowledges that the challenges facing the redevelopment areas are great, we are prepared to galavanize all of the human, financial and other available resources that are required to establish and promote sustained economic viability within its community redevelopment districts. It is important to aknowledge the institutional barriers to substantive economic development in the redevelopment areas- 1. The City of Miami has exacerbated the slum and blight in the redevelopment areas by its lack of code enforcement. The illegal dumping and overgrown vacant lots are pervasive throughout the Community Redevelopment Areas. Further, the City has sponsored the construction and rehabilitation of substandard multifamily units 98-1069 EAGENC OMMUNITY DEVELOPMENT Y The Honorable Vice Chairman J.L. Plummer and Members of the Miami City Commission October 27, 1998 Page 3 throughout the community redevelopment areas. These substandard structures do not meet City Code requirements related to open space, parks, or adequate refuse storage. This is a serious public health and public safety matter that should be addressed locally. However, if it is not addressed, the U.S. Department of Housing and Urban Development's Office of Inspector General may intervene. This "misinvestment" may total as much as $10 million. 2. The City has liens on hundreds of County Land Useage Code 90 ("CLUC 90") properties, and has identified hundreds of parcels of Vacant Government Owned Land ("VGOL"). The presence of CLUC 90 properties and VGOL in the community redevelopment areas of Southeast Overtown/ Park West and Omni contribute to the desperate condition of blight and reduce property values in the surrounding areas. The City must take all actions necessary to move these properties back on the active tax rolls. 3. Since 1993, the City of Miami knowingly diverted the revenues generated from arena parking lots #57, 58, 59, 60, away from development activities in Southeast Overtown/ Park West District. In my opinion, these revenues were inappropriately diverted to pay the operating deficit of the Gusman Theater. The arena parking lots are managed by the Department of Off -Street Parking, however they are owned and located in the Community Redevelopment Agency. An agreement by the City to repay the lost revenues in full will be sought by the CRA. 4. In FY '99, the CRA will seek a state legislative action to establish a pilot sales tax increment district to address the "pervasive poverty" which exists in the Southeast Overtown/Park West, and Omni Districts. 5. In accordance with the City of Miami's Interlocal Cooperation Agreement with Metropolitan Dade County, on an annual basis the County authorizes payments of the appropriate tax increment for both the Southeast Overtown/Park West and Omni Districts. To date, the County has failed to make these payments. During the second public hearing for the City of Miami's FY '99 budget, the City Commission directed the City Manager to move the City's portion of the tax increment payment for the Omni District into a capital project improvement account. This safeguard was undertaken to enable the CRA to prioritize capital projects within the Omni District, prior to making payments to the County's Performing Arts Center. Further, the City Manager was directed to conduct an analysis of the City/County Interlocal Agreement to insure that it is in the best interests of the City and the Miami CRA. This report is due at the City Commission meeting of October 27, 1998. s8-i069 COMMUNITY REDEVELOPMENT A The Honorable Vice Chairman J.L. Plummer G E N C Y and Members of the Miami City Commission October 27, 1998 Page 4 6. It is recommended, by separate motion, that the Miami City Commission defer any action on Metro -Dade County's attempt to pay the tax increment to the Omni District until the County undertakes a like action related to the Southeast Overtown/Park West District, and certainly not before the City Manager has reported to the City Commission on the advisability of the City/County Interlocal Agrement related to the Omni District. 7. It is further recommended that consideration be given, to expanding the CRA Board beginning January of 1999, from five to seven members (maximum per state law), to include consideration of the Mayor and an at large member who would be an area property owner. This at large member could be chosen by the Commission. City Commission Action Required: A. By separate cover, the proposed Interlocal Cooperation Agreement between the City of Miami and the Miami CRA has been provided. This Agreement memorializes the relationship between the City of Miami and the Miami CRA. It proposes the establishment of 5 year plan in which the City of Miami provides Community Development Block Grants, Home Investment Partnership Grants, and other eligible sources to "fully fund" the development activities to be undertaken by the CRA in the Southeast Overtown/ Park West and the Omni Redevelopment Areas. B. I will propose that the City Commission adopt a Resolution which states that commencing FY 2000, the CRA receives an additional $5 million annually, above the base year, for a five year period. At the end of the five year period a "sunset" review of the CRA will be undertaken, by an independent program and policy commission, and the City Commission will have the authority to determine if the CRA continues or ceases to exist. The additional $5 million is proposed to be expended as follows: $4 million in capital, land acquisition, code compliance and historic preservation; and $1 million for technical assistance, and planning support. C. It is further recommended by separate motion that the City Commission endorse the pending request that the County make payment to SEOPW in lieu of taxes. (Letter attached). It should be noted that all basic and essential municipal services in the redevelopment areas will continue to be provided by the City. The state law that authorizes redevelopment areas envisions that CRA's will be an "enhancement" not a "substitute" for municipal 98-1,69 COMMUNITY REDEVELOPMENT A G E The Honorable Vice Chairman J.L. Plummer N C Y and Members of the Miami City Commission October 27, 1998 Page 5 services and functions. Thus, it is our sincere hope that the City Manager will avoid the very human temptation to withdraw the resources and support for an entity whose sole purpose is to enhance the City of Miami and foster an improved quality of life for the residents and businesses within the Redevelopment Areas. The "base year" will provide a benchmark against which the Mayor, City Commission and the public can evaluate the administration's true commitment to the Redevelopment Areas. For the CRA to succeed, not only must it enjoy broad support from the residents and businesses, within of the community redevelopment areas, it will also be enhanced by the enthusiastic support of the Mayor, City Commission, Manager, and Administration. It is in this spirit that I believe the time has come to turn the page and focus our attention to make Overtown, Park West and the Omni the envy of every urban core in America. Warm personal regards. Faithfully, Arthur E. Teele, Jr. Chairman Community Redevelopment Agency Enclosures (2) cc: Alex Vilarello, Esq., City Attorney Walter Foeman, City Clerk Donald Warshaw, City Manager 98-�.06u situ of ffli inii.-Flnrii a 01 * n ARTHUR E. TEELE JR. Fax October 26, 1998 The Honorable Vice Chairman and � �00- Members of the City Commission 3500 Pan American Drive Miami, Florida 33131 Re: enda Item 15B - Interlocal Agreement City of Miami and Miami CRA Dear Mr. Vice Chairman and MembjK of the City Commission: Pursuant to the City Commission's consideration of the above reference item, enclosed is an outline of the proposed Interlocal Agreement (the Agreement) between the City of Miami, and the Miami Community Redevelopment Agency (CRA). I am hopeful that it will assist in your review of this important agreement. The interlocal agreement memorializes the relationship of the CRA with the City of Miami, and provides for the adoption of a five year plan to fully fund the CRA commencing in FY 2000 (October 1999). The Agreement proposes that the City of Miami provide Community Development Block Grant funds, and other eligible sources to fully fund the development activities undertaken by the CRA in the Southeast Overtown Park West and Omni Redevelopment Areas. In a separate Resolution, the CRA proffers a five year "sunset" review of the CRA by an independent policy and program commission. The Interlocal Agreement was negotiated with the City Administration over several weeks, and thorough and thoughtful discussions on all issues were exchanged. The CRA Board approved the precursor to this Agreement at its September 22 Board meeting and ceded to the City Commission the authority to amend and approve without further CRA Board action: the interim Executive Director was authorized to revise the budget and documents in accordance with Commission action. We look forward to the City Commission's consideration of this agreement and the companion legislation which will be introduced under my sponsorship at the October 27, City Commission meeting. Warm personal regards. Faithfully, Arthur E. Teele, Jr. Commissioner, District 5 Enclosure cc: The Honorable Joe Carollo Alex Vilarello, City Attorney Walter Foeman, City Clerk Donald Warshaw, City Manager INTERLOCAL AGREEMENT Between City of Miami, Southeast Overtown/Park West CRA and Omni Area CRA rrojects- mean the community redevelopment projects and activities, capital park improvem other activities or programs described in Exhibits A and B (part VI and VH11 =iaunsnes a cooperative relationship between City and CRAB to undertake and carry out the financing foi the program management, technical assistance, program administration, coordination, monitoring, development and services of staff, consultants and others. • Designates the CRAs as the exclusive party responsible for the planning, development, program management, technical assistance, coordination, project administration, monitoring, and other services for the completion of the Projects. • Declares the CRAB to a subgrantee of City for [IUD Funds - al-c y - r inancial tte9ourees Provided by City 4.1 City's commitment to funding, . City agrees to provide full financial support to CRAs for the above -described services needed for the 4.1 (a) Five Year Funding Plan projects, by establishing a 5-Year Funding Plan. • 5 Year Funding Plan to be established by a separate resolution • Funding to be subject to the annual appropriation, allocation and approval of the City Commission • Funding Plan to be coordinated with 5 Year Program Plan(See Article Vill • Requires a yearly amendment to the agreement to include the funding to CRAB and projects to be undertaken. 4.2 Base Year for Funding Purposes • Establishes FY 1999 as a Base Year for the purposes of calculating the City's ongoing commitment to fund activities under the Interlocal Agreement and provides funding to the CRAs for FY 1999 as follows • Programs Funds of $767,222 from HUD Funds for the Projects -See. 4.2(ax1) • General Fund Support of $279,488 — Sec. 4.2 (b) • Continuing City Payment of guaranteed entitlement associated with the Community Redevelopment Revenue Bonds 1990 Series and the debt services on the Section 108 Loan approved in 1990 and drawn upon in 1994 - Sec. 4.20 (1) and (2) • Establishes FY 1998 as the Base Year for establishing funding needed for human resources support — Sec. 4.2(d) • Permits the City to provide other financial support as approved and provided by the City Commission — Sec. 4.2.(e) 1 AR'CICLE/SEC'I'[ON 4.3 Reallocation and Rollover of • Provides for any unexpended funds at the end of any fiscal year to be reallocated and carried over into the next fiscal year for the Miami CRA, subject to any related agreement and subject to the Unexpended Funds approval and receipt of such funds from HUD • Permits the presence of unexpended funds at the end of a fiscal year to not be a negative factor for future funding of the CRAB 4.4 Disbursement of Funding to Fiduciary of Miami CRA . Provides CRAs with full and complete control and custody of moneys collected, approved, provided for and authorized for the CRAB by the City or any other governmental entity • Provides for the moneys to be deposited with a fiduciary as determined by the Miami CRA • Continues the provision of services and support related to the funds by the City's Offices of Management and Budget and Financing Article V - Personnel and Other Resources to he Provided by City 5.1 Use of City Personnel • City to provide and designate a number of city employees to serve as full-time staff of the CRAB for the provision of the aforementioned services. • City Manager authorized to provide for the annual detailing of city employees for services to CRAB. • Any new employees of CRAs, after the effective date of the agreement, shall not be city employees unless otherwise agreed • City employees servicing the CRAs shall continue to receive all their city benefits, but the CRAB shall determine their duties and supervision. • City Attorney to serve as general counsel to CRAs, unless the CRAB otherwise select a general counsel • City Clerk to serve as official custodian of records and documents for CRAs, keep minutes of meetings, publish notice of meetings, etc. • Any other employees may be provided, as available, for other support services as planning, computer technology, public works, upon the approval and concurrence of the City Manager • City and CRAB to enter into a reimbursement agreement for use of city employees. ARTICLE/SECTION 5.2 Selection of Executive Director of CRA CRA to select and employ a person or consultant as Executive Director and to determine qualifications, duties and compensation for the position. ' Article VI Responsibilities of Miami CRA 6.1 Responsibilities of CRA • Responsible for the planning, development, program management, technical assistance, coordination, project administration, monitoring and other services necessary for the completion of the designated Projects. • Designates the Executive Director of CRA as the party to manage all work and activities related to the Projects • For financing of projects in future years, the CRA shall prepare and submit to the City, prior to the City's appropriation, allocation and approval of its budget. a proposal which identifies the projects and activities to be undertaken by the CRAs. • Provides by amendments, alterations on projects by Executive Director on behalf of the CRA and written concurrence of the City. 61 Bi-Annual Reports to the City CRA to provide bi-annual status reports to the City, no later than April 30 and October 30 of each year, on the projects. 7.1 Mutual Cooperation Between the Incorporation and support of the legislative priorities and initiatives of the CRAs into the City's legislative Parties priorities and initiatives and City and CRA to work cooperatively upon the approval of any legislative initiative of the CRAs. Article V111—Establishment of Five Year Plan S.1 Establishment of Plan • Provides for the City and CRAs to provide for a 5 year programmatic plan for projects to be undertaken by the CRAB. • Plan requires the review and acceptance of the City Commission • Provides for Ciy's agreement to fund, subject to the availability of funds and appropriation by the City Commission, the overall plan as approved by the City Commission • Agreement for funding to be Article IX - Execution of Related Agreements 9.1 Execution of Any Required Provides for subagreementa as mnv be mmi;rorl i,...aa �.. a:__ _ US flu U or Miami Vade County, Agreements for the use of HUD funds or Safe Neighborhood - park Bond Funds, to be entered on behalf of the CRA by 9.2 Execution of Related Agreements the Executive Director and the City Manager on behalf of the City after the approval of the City Commission. 10.1 Termination • Interlocal Agreement terminates upon the dissolution of the CRAB; • Termination of subagrecment to be governed by the subagrecment Article IU -- Representations; Warranties; Covenants 11.1 Representations and Warranties • CRAs shall coordinate all community redevelopment activities in the Redevelopment Areas, and shall and Covenants of the City be able to seek supplemental and additional fundiug from other resources to support the Redevelopment Plans - Sec. 11.1(a) • City shall continue its routine and normal community redevelopment activities throughout the City, except as provided for with the Interlocal Agreement - Sec. 11.1 • City has a continuing obligation to pay and shalt pay the guaranteed entitlement for the $I 1,500,000 Community Redevelopment Revenue Bonds issued November 8, 1990, and shall continue to pay the debt service on the Section 108 Loan, obtained in 1990 and drawn upon in 19994, secured by HUD - Sec. 11.1(g) • City to continue to fulfill its obligations to deliver and provide municipal services in the Redevelopment Areas and the City at large, and a decision of the City shall control if there is a conflict relative to the delivery of services - See. 11.1(h) • City encourages the CRAB to apply for and seek state, federal and corporate grants and support to minimize the impact of the City's taxpayers relative to the disbursement of federal funds to the City - 11.2 Representations and Warranties and Sec. 11.1(I) Covenants of the CRAB • CRAs shall timely fulfill, or cause to be fulfilled, all of the conditions within the control of die CRAB or which are the responsibility of the CRAs - Sec. 11.2(d) • CRA to provide the City with copies of any applications to obtain grant moneys from other resou�res m or entities • CRA agrees to apply for state, federal and corporate grants and support to minimize the impact on the City taxpayer's related to the disbursement of federal funds to the City C • Provides for regular and special meeting not to City Manager —Sec. 12.1000 • Amendments to the agreement must be writing — Sec. 12.3 • Severability of any provision held to be invalid — Sec. 124 • Agreement effective upon execution by City and CRAB and upon filing with Clerk of Circuit Court — Sec. 12.5 • Prohibits an assignment of the Agreement — Sec. 12-6 • Provides for notices to parties — Sec. 12-8