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HomeMy WebLinkAboutCC 1997-06-20 MinutesI op -P, 40 ;mi. I Ncoull, M M.1) �A Is i ES Alk co, ■ PREPARED BY THE OFFICE OF THE CITY CLERK CITY HALL WALTER FOEMAN CITY CLERK ;t, INDEX MINUTES OF SPECIAL. MEETING June 20, 1997 ITEM SUBJECT LEGISLATION PAGE NO. NO. 1. DISCUSSION CONCERNING LATEST DISCUSSION 2-10 COUNTY OFFER FOR DISPOSITION OF FEC / 6/20/97 BICENTENNIAL (MARITIME) PARK PROPERTY -- (A) BASE RENT: CITY RECEIVES LESS ON PRESENT VALUE BASIS -- (B) ENVIRONMENTAL REMEDIATION: NO LIMIT TO CITY'S COST TO CLEAN PROPERTY -- (C) NO DEVELOPMENT RESTRICTIONS -- (D) COORDINATE DEVELOPMENT WITH DOWNTOWN DEVELOPMENT AUTHORITY NOT MARITIME BOARD -- (E) CITY POLICE AND FIRE SERVICES ON NON - PORT PROPERTY ONLY -- (F) REMOVAL OF REVERTER CLAUSE FROM MUNICIPAL JUSTICE TRACT ( 1155 NW 11 ST.) -- (G) SALE OF STADIUM WAREHOUSE ( 850 TO 824 NW 23 ST.) AT APPRAISED VALUE -- (H) COUNTY TO MAINTAIN MIAMI RIVER SHORELINE & BISCAYNE BAY SPOIL ISLANDS -- (1) COUNTY OFFER IS SILENT ON DRI MITIGATION COSTS / LEGAL COSTS OF ARENA -RELATED LAWSUITS / ADVERSE LITIGATION DAMAGES -- VICE MAYOR REGALADO EMPHASIZES NEED TO RESOLVE ISSUE OF PUBLIC PERCEPTION -- COMMISSIONER GORT EXHORTS BUSINESS ENTITIES TO PARTICIPATE IN NEGOTIATIONS -- BRIEF COMMENTS BY COMMISSIONER PLUMMER ON WHETHER COUNTY COMMISSIONERS HAVE CONSIDERED FEC / BICENTENNIAL PROPERTY PURCHASE ISSUE -- COMMISSIONER PLUMMER FURTHER REITERATES NEED FOR MARITIME BOARD. 2. COMMISSIONER GORT ANNOUNCES START DISCUSSION 11 OF NATIONAL ASSOCIATION OF LATIN 6/20/97 ELECTED OFFICIALS (NALEO) CONVENTION IN MIAMI. k, i MINUTES OF SPECIAL MEETING OF THE CITY COMMISSION OF MIAMI, FLORIDA On the 20th day of June, 1997, the City Commission of Miami, Florida, met at its regular meeting place in the City Hall, 3500 Pan American Drive, Miami, Florida in regular session. The meeting was called to order at 7:12 a.m. by Mayor Joe Carollo with the following members of the Commission found to be present: Vice Mayor Tomas Regalado Commissioner J.L. Plummer, Jr. Commissioner Wifredo Gort Commissioner Humberto Hernandez ALSO PRESENT: Edward Marquez, City Manager A. Quinn Jones, III, City Attorney Walter J. Foeman, City Clerk Maria J. Argudin, Assistant City Clerk ALSO PRESENT: Mayor Joe Carollo An invocation was delivered by Commissioner Gort who then led those present in a pledge of allegiance to the flag. i 1 June 20, 1997 ----------------------------------------------------------------------------'------------------------------------ 1. DISCUSSION CONCERNING LATEST COUNTY OFFER FOR DISPOSITION OF FEC / BICENTENNIAL (MARITIME) PARK PROPERTY -- (A) BASE RENT: CITY RECEIVES LESS ON PRESENT VALUE BASIS -- (B) ENVIRONMENTAL REMEDIATION: NO LIMIT TO CITY'S COST TO CLEAN PROPERTY -- (C) NO DEVELOPMENT RESTRICTIONS -- (D) COORDINATE DEVELOPMENT WITH DOWNTOWN DEVELOPMENT AUTHORITY NOT MARITIME BOARD -- (E) CITY POLICE AND FIRE SERVICES ON NON - PORT PROPERTY ONLY -- (F) REMOVAL OF REVERTER CLAUSE FROM MUNICIPAL JUSTICE TRACT ( 1155 NW 11 ST.) -- (G) SALE OF STADIUM WAREHOUSE ( 850 TO 824 NW 23 ST.) AT APPRAISED VALUE -- (H) COUNTY TO MAINTAIN MIAMI RIVER SHORELINE & BISCAYNE BAY SPOIL ISLANDS -- (I) COUNTY OFFER IS SILENT ON DRI MITIGATION COSTS / LEGAL COSTS OF ARENA -RELATED LAWSUITS / ADVERSE LITIGATION DAMAGES -- VICE MAYOR REGALADO EMPHASIZES NEED TO RESOLVE ISSUE OF PUBLIC PERCEPTION -- COMMISSIONER GORT EXHORTS BUSINESS ENTITIES TO PARTICIPATE IN NEGOTIATIONS -- BRIEF COMMENTS BY COMMISSIONER PLUMMER ON WHETHER COUNTY COMMISSIONERS HAVE CONSIDERED FECBICENTENNIAL PROPERTY PURCHASE ISSUE -- COMMISSIONER PLUMMER FURTHER REITERATES NEED FOR MARITIME BOARD. ---------------------------------------------------------------------------------------------------------------- Vice Mayor Regalado: All right. Mr. City Manager, go ahead. Mr. Edward Marquez (City Manager): Good morning, Mr. Vice Mayor and Commissioners. I believe the purpose of this meeting was to go over the... where we stand with the FEC (Florida East Coast) property, and before you, there should be a memo that I sent out a couple days ago that had compared the last offer proposed to the... by the County versus their previous offer. I'm just going to focus on the major components here. On base rent, we have the schedule over the last... at the very end is the schedule of the base rent, and as you can see, their June 16th offer amounts to approximately ten million dollars ($10,000,000) less, on a present value basis, than their May 6th offer. They did make a movement... NOTE FOR THE RECORD: Mayor Carollo enters the Commission chamber at 7:14 a.m. Commissioner Plummer: Well, but I think there's one more important and more significant thing for this City in the analyzation. Their up front down payment is four million less, but in the year two and three, this time, they make no payments at all in the year two and three. And I think that's very significant for a City that's in probably... looking for this kind of recurring revenue. We don't get it. So to me, that's very significant in this - whatever you want to call it - an offer. Mr. Marquez: That's correct, sir. I've included the actual offer in this. It's attached as Exhibit A. Under the area of environmental remediation, the old offer had absolutely no limits. It said that the County would put away... that the City would put away fifteen million dollars 2 June 20, 1997 ($15,000,000) into escrow to pay remediation costs. Under this new offer, it specifies that both parties would be liable for up to ten million dollars ($10,000,000) of environmental costs, and they could walk away from the transaction. However, that leaves a question as to if we... if someone walks away from the transaction, as I said, he's still liable for those environmental costs that have not been paid. The example here is, if environmental turns out to be forty million dollars ($40,000,000), and it's projected as that, and the City and the County have put in their ten million dollars ($10,000,000), are we stuck now with the twenty million dollars ($20,000,000) of additional environmental costs, especially since it's been identified? The other provisions on here, or lack of them, as I say in here, deals with what they're willing to put on the side and what they're not. The County kind of placed no restriction as to hotel, gaming, office or residential development on the property. General retail activities would be limited up to 150,000 gross leasable square feet, and that includes 30,000 additional retail square feet around the arena, itself. The County did agree to construct a five hundred thousand dollar ($500,000) bridge to Bayside, and they contemplate that the public park will be no less than... no less than 45 percent of the upland area. Also, development of the property was to be coordinated with the DDA (Downtown Development Authority), as opposed to the Maritime Board. The County suggested that City police and fire services only be extended to non -port property. I think our position has always been, especially in fire services, if there's a fire at the site, our fire services would be servicing it, as a practical matter. The County agreed to remove reverter clauses on two parcels of property. We threw in a couple non -economic items in our last counteroffer, so that we could up the value of the offer to us. This included lifting of several reverter clauses on property that the City owns, so that we can better develop that. Now, that's an economic worth to us, but that's at no cost to them. They agreed to remove the reverter clauses on two parcels of property around the municipal justice tract in exchange for us agreeing to sell them the MJC MUNICIPAL JUSTICE CENTER facility. Now, that's the facility that's currently used for correctional purposes, and other County -related purposes. They're leasing it from us on a month -to -month lease. We have that on the bidding list right now, and we hopefully will have that sold to the private sector by July 31st of this year. At least, we're opening up the bid and then closing by September. We want it on the tax roll and, you know, not to mention the fact that we want one less jail in the City. The County also agreed to sell us the stadium warehouse at its appraised value. We do... We will own the stadium warehouse once we put a sports use to it. That was part of the Lummus Island transaction years ago, which the County contingently gave us the land, pending a sports use. They are going to sell it to us now. And if we were to buy it as part of compensation on this transaction, it's really a case of buying the same property twice. The County did agree to maintain the Miami River shoreline and Biscayne Bay SPARR Islands. Our original counteroffer had them maintaining the Bayside shoreline and the arterial roads and canals, as well. Commissioner Plummer: Which is their responsibility anyhow, so we're just asking them to do what they're supposed to be doing in a regional nature. Mr. Marquez: Again, we were trying to, in our offer... I agree. We were trying to get them to do things that should not be all that onerous to them. The new offer is silent as to pays DRI (Development of Regional Impact) mitigation. Their prior offer had the City totally paying that, but... and DRI mitigation can, if it's not done correctly, can cause tens of millions of dollars. Mitigation could be the widening of Biscayne Boulevard, feeder streets, exchanges, et cetera. My bottom line conclusion... Well, before... and I said this publicly before. What the City has been trying to do has been to limit its liabilities and maximize its return, because there are other potential development projects out there. Taking everything into account today, this counteroffer from the County... last offer is less than what they previously offered. Commissioner Gort: Can you recall the date of the previous offer from them? Mr. Marquez: Excuse me? 3 June 20, 1997 0 Commissioner Gort: Can you recall the last... Commissioner Plummer: It's on the chart, isn't it? Commissioner Gort: ... for the previous offer? Mr. Marquez: The previous offer officially was May 6th from them. Commissioner Gort: May 6th. Mayor Carollo: Well, we had said the original offer. That's the original offer... Commissioner Plummer: No, the last. He said the last. Mr. Marquez: That was the last one. There was an April offer that had a combination of properties. They were going to pay us a hundred and seven million dollars ($107,000,000) base rent, but we had to sell them several pieces of property, along with the FEC property. Vice Mayor Regalado: Where are we now on the Municipal Justice tract, as of now? What can we do with that land right now? Mr. Marquez: Right now, we are marketing that land feverishly. We have it listed on the Net, we've got the... We've talked to the broker community. We've... realty broker community. We're getting... We had, I believe, something like 81 bid packages go out on that formally, to request it from that. We've talked to over 600 brokers. We're hoping for bids. We're hoping for at least three bids, come July 31st, which is the date scheduled for bid opening. Vice Mayor Regalado: Yeah, but do we need to resolve the problem of the reverter clause before? Mr. Marquez: No. The reverter clause is... we can work our way around it. We were just trying to make life easier for us, and we were trying to give the County an item to give to us that has an economic value to us. Mayor Carollo: That reverter clause basically states that two small parcels of land that are to the side of that project, and what we have out to sell does not include those two small parcels, that if we, the City of Miami, would sell that, that would revert back to the County. So by us asking them to have... lifted that deed restriction, it was not going to cost them anything. And really, it was no sweat off their backs. The other problem that we have with their constant request to have jail or processing sites in that parcel of property is that misdemeanor crimes are different than the felony crimes. Felony crimes, for the most part, people, once they're brought to a processing center, when they're brought to the jail downtown, they will stay in the jail. They are not bonded out. With misdemeanor crimes, within just a few hours, they might be out on our streets. And these are people that are brought from Homestead, Florida City, Miami Beach, North Miami, unincorporated Dade County, and then they're left to walk out through our streets. And this is what has happened to many of our neighborhoods, where these misdemeanor people that are brought in and are let out within a few hours. Then they're going through our neighborhoods, breaking into cars, into homes, committing additional crimes. And it's making life very difficult for our residents. So we really don't want those processing centers, or another misdemeanor jail facility within the City of Miami. Commissioner Plummer: Mr. Mayor, I assume we're here for the report. We've heard the report. Other than that, I don't know what we're here for. I thought we were very emphatic last 4 June 20, 1997 'T A week when you, as our designee, went to that meeting, with the full intention of this board, unanimous, and I think somewhat adamant, that was the last offer. And I really don't know why we're here this morning to do anything further. I mean, to me, they've insulted this Commission when they insulted you. And as far as I'm concerned, that offer which they've made is an insult. I mean, it's less now than what it was before. So I really... I didn't mind coming this morning to see these glorious faces out in the audience, but as far as I'm concerned, we should make a counteroffer in the Manager's package, and it's that, plain piece of paper. I don't know what else to say. Mayor Carollo: Well... Commissioner Plummer: I mean, they don't understand what this Commission has said unanimously, adamantly, on a number of occasions, and we've not deviated. And I don't know why they think we're going to. I mean, they're trying with public pressure, there's no question, to try to say that the City is a bad guy. And I've been telling you this for the past six months that they're posturing to put this City as the bad guy. And we're not the bad guy. We're going along with what their appraisal was. And so if we're wrong, it's... they were wrong. I see these people on TV, you know. The man from the Heat called a press conference, said we should act like grownups. Well, if he was on there to try to be a mediator, he threw gasoline on the fire, as far as I'm concerned. But... Commissioner Hernandez: Well, Mr. Mayor, I think you did the right thing by calling this meeting. I... Commissioner Plummer: Oh, I don't... the report, yes. Commissioner Hernandez: I think we are acting as adults, and I think the right thing to do is to sit down today and talk about this. I think the non -economic items that we requested are fair, they're just, they're reasonable. And it seems that now, they're playing hard ball. They don't want to come to the table and bring this to a resolution. Mayor Carollo: See, but Commissioner, it's more than just those non -economic items. Frankly, those, we put in there so that we could give it some real value to us without them having to put up any money from their pocket. But, you know, as the Manager pointed out, the parcel that they came back with, wanting us to buy it at three quarters of a million dollars, we own that already. We would be buying it twice. We're going to take steps, legal steps, so that they will have to give us the deed to that land. The Key, Virginia Key site by Key Biscayne, that particular site, we have a letter from the County before, three of us who are on this Commission, that gives the City permission to go and do the type of project that was considered at that time, which is, frankly, the one that we're considering, and maybe some modifications that would only enhance the project more, but nevertheless, the same type of project that we're considering doing there in the very near future. So we feel that, you know, that letter that we received in '95 will still stand. And now I could go on into some of these other particular parcels that we put down, and you'll basically find the same situation in all of them. But besides the monetary part, which is important to the City of Miami, there were other areas that the Manager covered very well that we cannot put the City of Miami in a situation, and they would have to be resolved clearly before this City could sign off on selling or leasing this land to anyone. And we stated clearly that leasing is the way that we're going. The DRI (Development of Regional Impact) is one key area. We have to make sure that that's spelled out in such a way that we don't find ourselves in the future with millions of dollars of additional responsibility, that all of a sudden, we have to pay for all kinds of new expressways or roads coming out or into the location. And in as far as our responsibility to clean up any possible contamination that's found in the property, there has to be some guidelines, too. If they want to dig up the whole place, because they want to maybe add on another slip or two, that makes it, you know, different. This is not your usual project. So 5 June 20, 1997 w� w we shouldn't be on the hook for an unlimited amount of monies for other things, such as that nature, that they want to do there. The fact that they do not want to sign off in not building any hotels, office buildings, residential buildings, gaming facilities, whether it's Bingo, or whether... Who knows down the road what the State might approve or not approve there? That concerns me, because that could be a direct competition to this City in other projects that we have or might have in the future. These are some of the key areas, the ones that I've mentioned, that I 4 think are just as important as the final monetary amount that's agreed upon for this lease. The bottom line that I see is that when we're being given a counteroffer that is not at least the same amount as the one that was given the week before, and there's no movement up, but on the contrary, the movement is back, in excess of over ten million dollars ($10,000,000), I find it very difficult in trying to bring to conclusion any sort of negotiations when those are the tactics that are used. Now, even though... and I need to clarify this. In the summary of terms and conditions that I was given by Mayor Penelas, it did not state that in the last two years, 44 or 45, we would get any money from this project. If you remember, we were going to be getting additional dollars up front, and then in years 44 and 45, we would give it to them rent free. Even though that did not specify it in the papers that I received that you were sent copies, verbally, he said that that's what would be done. But nevertheless, what the paper also states is that up front, in the first three years, we were going to be receiving some twelve million dollars ($12,000,000) less up front. And the present value of this latest counteroffer is some ten million three hundred and sixty thousand dollars ($10,360,000) less in real dollars to us. So having said that, I mean, this Commission has gone on record in our position. If there's anything else that any of the members of the Commission would like to add... Commissioner Plummer: Mr. Mayor... Vice Mayor Regalado: I would like to say that there is another issue that we have to, or we should discuss, and we need to resolve, and it is the issue of perception, rather than reality. The people of Miami and the people of Dade County do not care, nor they don't understand about the details that we are discussing - whether a reverter clause should be taken off from one property, whether the City of Miami Police should patrol the Port of Miami. The people of Miami and the people of Dade County are watching us and Dade County to see whether we are going to have an arena, or whether the Miami Heat stays or leaves South Florida. So we should make it clear to the people of Miami and to the people of Dade County that this Commission wants that team to stay in Miami, that we would like to build that arena in the City of Miami, and that it's not our fault. It seems now, if you hear what is being said on the radio, if you hear what is being talked on the street, it seems that the City of Miami is the one that does not want to make a deal, that does not want to resolve this situation, that the County has been very patient, that the County has been... has gone above and beyond their call of duty to resolve this problem. And at the end of the day, we'll wind up being the ones that did not make the deal. So, I mean, it has to be made clear that we want to resolve this situation, and if there is somebody at fault, it has to be 50150, not 90 and ten percent. So, Mr. Mayor, I think... I don't know how we can do it, but I think that we need to discuss and resolve this issue of perception. Commissioner Hernandez: Permission? Mayor Carollo: Go ahead. Commissioner Hernandez: I know you agree, as well as I think everyone agrees that this is probably one of the most important, if not the most important project that's going on right now, that's being negotiated. We worked very hard, you worked very hard, and I'm sure the County has worked very hard in bringing this to fruition. We can't, in my opinion, at this point in time, just walk away from this deal and say, "It's either this or nothing." I don't know... We called a workshop the other day to talk about Watson Island. I don't know if our position now is to sit down with the County and see if one way or another we can hammer this thing. 6 June 20, 1997 M:� r Mayor Carollo: That offer has been on the table for the County. In fact, it's been made by this Commission before. If they want to come and have an open discussion with us publicly, so that offer has been there. I think sometimes, Commissioner, maybe the thing to do is, you know, just wait a little more. Let the dust settle a little bit. I know some of the people from the County are not in town now. They're off to San Francisco, to the conference that's there now. So let's give it some time maybe, and see what happens in the next few days until... Commissioner Gort: Mr. Mayor... Mayor Carollo: You know, we'll be meeting next week on the 26th, anyway. Commissioner Gort: Mr. Mayor, I think one of the... When I first got elected in '93/94, we talked about maximizing the properties on the waterfront. We've discussed in DDA what could be done, and we tried to come up with certain projects that could be used, something very similar to Bayside. At that time, we were approached by the port, and by the people of the County, and we were told they would like to see an expansion of the port. It shows good faith that the City of Miami did not continue to try to seek any other project, and that the DDA would fully supported the expansion of the port. So I think that shows our support for the expansion, and for this property to be used by the County from way back in 1994, before the Heat was even in the picture. The Miami Heat came afterwards... Commissioner Plummer: Afterwards. Commissioner Gort: ... and I think we are showing good faith by negotiating here openly, the last time we were here. We got the two contracts in here. I think the press has got a hold of them right now, and they can look at it and see what happens. Now, this last offer is ten million dollars ($10,000,000) less than the one they made before. And you know the Downtown Development Authority and the people downtown want to keep the Heat in there. They work very hard to keep it in here. So I hope the County looks at this, and at the same time, that the Heat looks at this. And since they're a third party, they should probably get involved, also. You know, we've got a representative from the Chamber of Commerce in here. They should look at the contract. They're business people. They could maybe mediate a little bit, also. Mayor Carollo: Not all only that, Commissioner, but if we're going to talk about real business terms, frankly, what business entity, what business corporation would just, carte blanche, take their property out of the market, which is basically what we have, in discussing with anyone else other possibilities, and give someone virtual exclusivity in negotiating on that property, like we have? A normal business entity, a corporation would do numerous studies as to the best use and potential of that property, and would meet with numerous other people before they would decide if they are going to deal exclusively with someone or not, and would certainly have done things in a different manner than we have been dealt with. I think this Commission has dealt in good faith. As I said the last time we discussed this, negotiating in public and putting a laundry list of things was not the way to go. I didn't like doing that, but we basically were put into that situation. And at the same time, the City of Miami does have a lot of possibilities of things that we could do on that property. Commissioner Plummer: Well, Mr. Mayor, it's my understanding as of last Monday, at five-o- one, the Manager is under full instructions to proceed with an RFP (Request for Proposals). Mayor Carollo: That's correct. Commissioner Plummer: And if he hasn't done it, then shame on you. 7 June 20, 1997 Mayor Carollo: And they were supposed to come back to us in September, giving them enough time to be able to put an RFP together. Commissioner Plummer: Have you started the RFP process or not? That was the instruction of this Commission. Mr. Marquez: Yes, sir. Commissioner Plummer: OK. That's fine. Mr. Mayor, I have a question. I know that the Mayor of Dade County has a veto power, but has there been any discussion from the City side, or you, individually, with the Commission, itself? Has there been any discussion? I've not heard any comments, whatsoever, from any Metro Commissioner. All of the comments have come strictly from the Mayor, and I'm just asking if the Commission has addressed the issues at all. Mayor Carollo: Well, to my knowledge, in a public meeting, they have not, Commissioner. But I really don't want to get into some of the game playing that has been used against us, and throwing it back at them in that way. They have not... Commissioner Plummer: Well, Mr. Mayor, I got to tell you... Mayor Carollo: And we all have relationships with different members of the Commission there. Some, you know, are a little more up to date on it, some are not. But, you know, how they do their business, I'm not getting involved in, nor am I going to try to find a trojan horse over there. Commissioner Plummer: Let me just tell you this. I must tell you one thing, and then I'm going to tell you my position, very clearly. OK? You know, I've been very, very emphatic, there had to be a Maritime Board. You know, that wasn't my idea. You know whose idea that was? The County's idea. In the first interlocal agreement from the County, they demanded a Maritime Board, two City Commissioners, two County Commissioners. Those four were to elect an independent, not from the City or from the County. We didn't ask for that. They demanded that. Yet, down the line, they saw fit to take it out, without even a vote or a public hearing. They just eliminated a Maritime Board. Maritime Board, which is supposed to protect the front door of this City. Mr. Mayor, the final analysis, as far as this Commissioner is concerned, I think the offer which we have made to them is fair. I think it is a fair offer. And as such, I have no regrets. I have nothing to say, other than if they wish to come back at this offer or better, we'll have another meeting. But I don't think there's any more meetings to be had after this one today, unless their offer comes to what we said on Monday was the minimum offer the City would take. Amen. Mayor Carollo: Commissioner, you know, we've all spoken our peace. And I wanted to have this meeting so that some people that are trying to give the wrong perception, like the Vice Mayor stated, won't be able to, so that some people can't go to radio and say that this is the Mayor doing this, the Commission thinks differently. I have been working together with all of you, sharing with all of you every step of the process. The Charter indicates I am the spokesperson for this Commission, so that's not a title that I need to ask permission to have. But nevertheless, you all saw fit to name me as your negotiator, on top of that. One thing that I would like to close this meeting today by saying is the following: When we talk about perception, the Vice Mayor is very correct that we have to look at perception. And I've stated publicly that I don't think this should be something that we should be looking at as who's right, who's wrong. If the other side does not want to make a deal, for any reason, and... You know, I've come to the conclusion that maybe there are others on the other side that really don't want to make a deal. 8 June 20, 1997 �t� Commissioner Plummer: Oh. Mayor Carollo: And we're being used as the excuse. I never have said this publiclyy before, but I'm beginning to feel this way, because you... You don't offer ten million dollars ($10,000,000) less in a deal when the week before, you were offering ten million three hundred and sixty thousand dollars ($10,360,000) more. But some years ago... Commissioner Plummer: Imagine what they're going to offer us next week. Mayor Carollo: Some years ago, when there was the idea of a team that didn't even have a name yet that eventually came to be known as the Miami Heat was brought up to this Commission, that a group of investors wanted to bring professional basketball to Miami, it was this City that, by itself, went and did what no one else was willing to do. No one else from Dade County government, Broward County government, Fort Lauderdale or anywhere else put up a single cent to build an arena in the City of Miami, so that professional basketball could eventually come, and, yes, professional hockey, also. If we hadn't done that, the Miami Heat would not be here today, and we would not have a Florida Panthers here to play. At the same time, years later, when the discussion began on new arena or arenas, some tried to give the false perception that it was because a member of this Commission, or because of what a prior Commission had stated, in taking ten million dollars ($10,000,000) from the building of the new arena that we built. Otherwise, it would have been an arena that would have been good even today, and we wouldn't be facing this situation today. That's absolutely not true. What the Commission of the past did here when it approved the present Miami Arena, it approved exactly what the Miami Heat wanted - because at the time, there were no Florida Panthers - what the Miami Heat wanted for their arena in Miami, which is basically the same replica of the new team that came to Florida, the Orlando Magic, basically the same arena that they have in Orlando. If this Commission or the Commission at the time, rather, would have kept the additional ten million dollars ($10,000,000) in that arena, it only would have maybe have provided for some ten or twelve additional sky boxes. That's basically what it would have paid for. So it would not have made a difference, whatsoever. The reason that today teams want different types of arenas is basically the economics for the team owners. The salary cap has been going higher, and higher, and higher every year in major basketball. The NBA (National Basketball Association) salaries keep getting higher. That's why the salary caps keep going up. And the way that they can bring in the additional revenue is by being able to sell additional sky boxes, whereas if you don't have a minimum of some 60 or more sky boxes, in an arena, most professional basketball teams don't feel that they can make a go at it. We only have 18 sky boxes at the Miami Arena. If we would have built 18, 11 more, at most, it would have brought us up to 30. We still would have been way under. Commissioner Plummer: That's where the big money is. Mayor Carollo: That arena was built according to their specifications and their needs. One additional area of perception. If you could, Mr. Manager, I was told something last week, and I would like for you to verify it and get the information to each member of the Commission. Back around '88, I believe it was... Maybe J.L. might remember. I don't think I was here at the time when it happened. It could have been before '88, but I don't think so. I was told '88. Commissioner Plummer: Go ahead. I'll tell you when. Mayor Carollo: The Port of Miami and the new bridge that was going to be built - it's built today - needed some three acres from FEC. And in '88, I believe they paid some five million dollars ($5,000,000) or so for - six million dollars ($6,000,000) for those three acres. Is that correct, Commissioner? 9 June 20, 1997 I i Commissioner Plummer: Correct. If it's six million dollars ($6,000,000) for those three acres in '88, that would mean that back in '88, they felt that the whole 60 acres we have there - not 50.22, like an appraisal that we were given said - the almost 60 acres that we have there would have been worth the assessed value that the County has given that property today of in excess of a hundred and twenty-one million in 1988. But ten years later, I think that even the most pessimistic business people would say that property would have to be worth more today than it was in 1988. So... Commissioner Plummer: They couldn't build the bridge without it. Mayor Carollo: So if you could look into that, Mr. Manager, I think it's something that is just food for our thoughts. Commissioner Plummer: Mr. Mayor, I might give you a little bit more food for thought, if you want, because I was there. And when you speak about the arena that presently is there, I, with others - God rest his soul, Gene Marks, who was the chairman of the Sports Authority, who built that place on time and in budget - when... we met with them across the street one morning, and Mr. Marks told them, he said, "If you want more seating in there, I can change the configuration and give you approximately another 2,000 seats in the arena by a different configuration." And the immediate response was, "God, no, we don't want any more seats. It's going to look like a phantom center now." I was there, and that was the words of the officials of the arena at the time. You know, it's like, I guess, the same time when I sat in the Orange Bowl for the first game of the Dolphins. There were like 4,000 people there. And for the first two or three years, if they had 12,000, they were doing well, in a facility that holds 75,000 people. Mr. Mayor, I think that if we don't proceed to go with the RFP of trying to do something with that property, I think we would be derelict in our duties. I think we would be less than honest with what we told the Oversight Board, that we were going to make every effort to utilize and capitalize on surplus properties. Obviously, my opinion is very strong that they are not going to make any offers that are what I would even call legitimate offers. And as such, we need to proceed immediately to do something with that property, and to get it out to an RFP. There's a lot of people that I think that might be interested, but we'll never know if we don't get out there and ask. You know, it wasn't us, it was not the City who said to the Heat, "We'll build you a facility." It was the County. The County said, "We got the money and we'll build the facility." So let them do it. But again, my bottom line is I think the offer made to the County is a fair offer. And as such, I have no regrets or no determination to change my mind. Mayor Carollo: All right. Commissioner. Commissioner Plummer: I move... Commissioner Gort: Well, I've got an announcement when we finish with this meeting. Mayor Carollo: Excuse me? Commissioner Gort: I have an announcement when we finish with this meeting. Mayor Carollo: Oh. OK. Then if I could finish it by saying, J.L., the "fish have come home to roost." Commissioner Plummer: Well, as I... Mayor Carollo: This meeting is adjourned. Commissioner Plummer: Mr. Mayor, as I told you the other day, there's no "chickens in the ay. 11 10 June 20, 1997 0 2. COMMISSIONER GORT ANNOUNCES START OF NATIONAL ASSOCIATION OF LATIN ELECTED OFFICIALS (NALEO) CONVENTION IN MIAMI. Commissioner Gort: Mr. Mayor, I'd like to announce that the... As of yesterday, the NALEO, which is the National Hispanic Elected and Appointed Officials, opened up their convention at the Hyatt. The registration has been the highest in the last five years. We have over 600 representatives from all over the United States present at the Hyatt today, and you all are invited to come over. Mayor Carollo: Thank you, Commissioner. And I personally would like to compliment you and thank you for the hard work that you have put into this personally. This convention would not have come to Miami if it hadn't been for the hard work and leadership that you've shown. So on behalf of all of us, thank you. THERE BEING NO FURTHER BUSINESS TO COME BEFORE THE CITY COMMISSION, THE MEETING WAS ADJOURNED AT 7:53 A.M. ATTEST: Walter Foeman CITY CLERK Maria J. Argudin ASSISTANT CITY CLERK 0 M JOE CAROLLO MAYOR INCORF'�ORATED 18 96 11 June 20, 1997