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HomeMy WebLinkAboutCC 1986-05-01 MinutesMINUTES OF SPECIAL MEETING OF THE CITY COMMISSION OF MIAMI, FLORIDA On the 1st day of May, 1986, the City Commission of Miami, Florida, met at its regular meeting place in the City Hall, 3500 Pan American Drive, Miami, Florida in Special Session. The meeting was called to order at 4:11 p.m. by Mayor Xavier Suarez with the following members of the Commission found to be present: Commissioner Joe Carollo Commissioner J. L. Plummer, Jr. Vice -Mayor Miller J. Dawkins Mayor Xavier L. Suarez ABSENT: Commissioner Rosario Kennedy ALSO PRESENT: Cesar Odio, City Manager Lucia Allen Dougherty, City Attorney Matty Hirai, City Clerk Walter J. Foeman An invocation was delivered by Mayor Suarez. Commissioner Plummer then led those present in a pledge of allegiance to the flag. 1. CEASE EFFORTS TO EXTEND DEVELOPMENT ORDER ISSUED FOR DEVELOPMENT ON WATSON ISLAND Mr. Carollo: If I may, I'd like to request the members of the Commission if, before we begin, we could wait a few more minutes for Commissioner Kennedy to arrive. In the meantime, I'd like to pass out a resolution that I'll be presenting at this meeting. Mayor Suarez: Is that the one that the City Attorney has? Could you pass that around, please. Mr. Plummer: Mr. Mayor, since this is a special call of the commission pertaining to emergency matters, it is appropriate that you put on the record the reason for the call. Mayor Suarez: Thank you, Commissioner. The reason is that we're coming upon a deadline for the Watson Island project and we have information that the investors that were represented to this Commission to be part of the project that would possibly make it viable - or some of those investors - are pulling out of the project which may or may not take away its viability from the viewpoint of this Commission. I understand that the successful bidder would like to address whether it's proper or fair at this point for this Commission to instruct the City Manager not to make an appearance in the cabinet on May 6, which is the day before our next regularly scheduled Commission meeting, and I understand that, from a memo received from Commissioner Carollo, that he would like to propose, and from this resolution that the City sees totally its involvement in the Watson Island project. And those are the reasons that we're here. I don't think there's any problem, Mr. City Manager, unless you want to give us any kind of a report on this in listening to the successful bidder tell us why we should not do what has been proposed in the memo that you, by now, have seen, or in the resolution that I can read to you that was Just passed out by Commissioner Carollo and reads as follows: "Motion No. 86- 295 adopted April 22, 1986, regarding the development of Watson Island', is hereby rescinded and the proposal of Miami Marine Exposition, Inc. to develop cultural, recreational and entertainment facilities on Watson Island is hereby rejected. Section 2: The City Administration is hereby directed to cease vg 1 May i, 1986 efforts to extend the development order issued for development on said island." Would you like to address either of those two proposals, or anything else you want to tell us about the situation with your investors? Mr. Plummer: Mr. Mayor - Mayor Suarez: Commissioner Plummer. Mayor Suarez: I think it would be appropriate, not only as a request, but as a common courtesy that we do give a few moments to Commissioner Kennedy. Mayor Suarez: Do we have any report on Commissioner Kennedy? She had previously said she would be available at four. Mr. Plummer: I saw her about three o'clock and she told me she would definitely be here at 4:15. Mr. Odio: Two minutes. Mr. Carollo: She'll be here in a couple of minutes. I agree with Commissioner Plummer that this is too important of an issue to begin without her here. Mr. Plummer: May I enquire, just for a question of the Manager? Mayor Suarez: Go ahead. Mr. Plummer: Mr. Manager, that information which came forth about the investors withdrawing their support, have you received anything official, in writing? Mr. Odio: No, sir. The only information that I have is what I read in the paper this morning. Mr. Plummer: All right. Have you received any phone calls or an oral authorization that they are withdrawing - from any of those investors? Mr. Odio: Are you saying from that group? No, I have not. Mr. Plummer: All right, thank you - just for the record - and we will stand and wait for Commissioner Kennedy. Mayor Suarez: Let's take a two minute recess and wait for Commissioner Kennedy. Mr. Plummer: My colleagues - remember that next Thursday and Friday night is the "Ribs and Roast" program. You've not been a Mayor during a Ribs and Roast program. Commissioner Carollo was last year. He was the recipient of the award, presented by Mr. Howard Gary. Mr. Mayor, I want to forewarn you - on your life, don't you miss iti Mayor Suarez: What is the date again? Mr. Plummer: That's next Thursday and Friday. Thursday is dress rehearsal and Friday night is the biggie. Especially you, Mr. Mayor, I think that if you miss it ... Mr. Odio: What is that? Mr. Plummer: Ribs and Roast. Mayor Suarez: You're not saying that I'm going to be the object of some of these, are you? Implying ... ? Mr. Plummer: I'm saying, Mr. Mayor, that next Saturday morning we might have a special Commission meeting! Mr. Odio: You're talking about tomorrow night? Mr. Plummer: No. It's a week from tonight. Mr. Odio: We have Commission meeting. vg 2 May 1, 1986 Mr. Plummer: No, we changed it to Wednesday, remember? Mr. Mayor, may I also report for ...? Is the recorder on? Mr. Mayor, I had indicated to you before that as Chairman of the Exhibition Committee that we planned on having a report and a recommendation to you by the first of June. I want to tell you at this time that yesterday we granted an extension of two weeks so that Hill York would be able to bring in their engineers and architects to see if, in fact, what they are saying they can do, they can do, but we did want to give every opportunity for them to be able to submit a proposal and we will now be hopefully coming back in around the 15th of June, so we have reopened - anyone who wants to make proposals or add to a present proposal that they have ... John - when is it, what's the deadline now - the 20th? The 20th of May. So I just wanted to make that report to you. Mayor Suarez: Mr. Plummer, as Chairman of the Oversight Committee for the proposed Exhibition Center, have you received any further statements or reports from Mr. Antonio Zamora who, I understand, appeared before your Committee on April 3rd, representing the Abella Group? Mr. Plummer: Mr. Carollo, we did receive, yesterday, a proposal and an offer on that particular parcel. Mr. Zamora, himself, was not present. It's not a simple thing to understand. That is part of the total complex which is now being called by the FPL. Mr. Abella owns that property individually and has offered, yesterday, to sell that only to the City of Miami. But that was made in writing and I would be glad to give you a copy of that, if you wish. I have it in my car. Mr. Carollo: I would certainly appreciate that. I am correct in repeating what was said by Mr. Zamora in the April 3rd meeting - Mr. Plummer: Would you like me to get it for you now? Mr. Carollo: If you would, I would appreciate it. Mr. Plummer: Sure, be happy to. NOTE FOR THE RECORD: Commissioner Kennedy entered the meeting at 4:19 p.m. Mayor Suarez: Let me state for the record, this Commission is now reconvened. The recess is over and we reconvene on the issue of the Watson Island project and resolution proposed by Commissioner Carollo. Mr. Carollo: Commissioner Kennedy, there should be a resolution that I am proposing for this special meeting before you. If you would take a couple of minutes to read it while Commissioner Plummer comes back then we could hear from whatever attorneys or interested parties might be present here. Mayor Suarez: This is awfully short notice. I understand Tom and Al - I think you understand the exigency of the situation in view of the cabinet meeting. Mr. Cardenas - please go ahead. Mr. Al Cardenas: Thank you. For the record, my name is Al Cardenas. I represent Miami Marine Exposition as well as John Meyer and Bernardo Fort Brescia personally. Here, with us, has my arrived my colleague, Tom Carlos, who is an investor and also the attorney for Watson Island Development Corporation who is here to speak on behalf of that entity, as well as some of the individual investors within it. If I may proceed, I, of course, heard about one o'clock or 1:30 of the upcoming meeting and have not had a chance to fully think out the legal status of this situation in view of what it is that we have read and heard and watched in the media since yesterday evening. My only comment to this Board at this time is that we do the following. One, hear from Tom Carlos, who is the official spokesman for the individual investors within Watson Island Development Corporation to get the actual status of that situation from the mouth of their attorney and, after we do that, that you give thought and consideration exactly to what it is that has transpired to date and what is that we are supposed to be embarking upon with the City Manager. If I recall correctly, last week, when we met for the second time before this Commission and for the fifth time in the process, vg 3 May 1, 1986 which has been a lengthy and thorough one, it was decided by members of this Commission, with a number of reservations that this matter should be forwarded to the City Manager to commence negotiations with a number of caveats. And those caveats including identifying the investors in the group, which at that time - and the percentage ownership that they would have within the investment company that was part of the applicant. It was also mandated, and I think the Mayor made some statements relative to it, that there would be some minimum equity criteria that this City Commission wanted the City Manager to demand of the successful bidder at the time that these negotiations were taking place so that the City could be assured that some minimum standards were being met. I believe that none of the things which were demanded are at risk of being complied with - according to my client, Mr. Meyer - as long as appropriate time - and we feel appropriate time is what was called for last week - has given to us to proceed with our efforts to provide the City with assurances of who the investors are, what percentage ownership they have in the project, as well as the equity investment commitment that was made. Let me add, if I may, that we spoke with both Bechtel and Dean Whitter this morning and both entities assured us that, one, they are aware of the recent developments which took place between yesterday and today and they are still both anxious to continue to participate in this process and would very much ask that you allow them to do so. I would like, at this time, if I may, to ask Tom Carlos to come to the microphone. I believe he has accurate information to provide you based on the things which we've heard between yesterday and today. Tom ... Mayor Suarez: Before you do that, Tom, let me just - you made a statement that I believe you meant the opposite. You said that none of the items that we had mentioned before as criteria - such as the 20 percent minimum equity requirement - and correct me if I'm wrong, but I want to make sure the record reflects exactly what you mean, Al - are at risk of being complied with at this point. I think you meant that ... Mr. Cardenas: Thank you. If that's what I said, I'm sorry, and thank you for allowing me to correct the record. There's every intention to comply with every one of those requisites. Mayor Suarez: Thank you. Mr. Tom Carlos: My name is Tom Carlos. I reside at 3990 Leafy Way in the City of Miami and, as previously indicated, I have been identified as an investor in Watson Island Development Corporation. Yes, it is on short notice. In fact, although I do not have Spanish as my native language, I, for some reason, was listening to QBA and was overhearing an interview of Commissioner Carollo's where he had asked for a meeting and that there was going to be a meeting at four o'clock. I cut short my destination, turned around, and came back here - for whatever benefit that I could be in such a proceeding. Let me address the facts as to what has taken place. First of all, Watson Island Development Corporation itself has not withdrawn its support from the development team put together by Mr. Meyer and, having spoken with the investors of Watson Island Development Corporation, let me reiterate that, number one, we have a great deal of faith in the project itself as being a project of benefit to this community and a project that is eminently financeable in terms of its revenue status and its capability of being developed. Our concern has been with respect - or at least a number of the participants in Watson Island Development Corporation - have questioned their ability to be effective and contribute effectively to that element which is the financing aspect of this project. It has been felt that the project, which was in the status of evaluation to determine whether or not it had the financial capacity, was being jeopardized by the manner in which that process was being conducted. The process was one in which we felt that it would be conducted through the City Manager's office and we found that, commencing with the last hearing wherein statements were directed to those individual investors based on political considerations and that their participation in the project was less than desirable - not because of what they brought in terms of their business acumen or their ability to make the project viable financially, but as a result of their role as leaders and civic activists in this community. Thinking that that might have been a limited concern and one that they had been properly addressed at that forum, it appeared that as investors were to be considered, that these investors would undergo some form of public scrutiny, albeit not here before the Commission, or through some direct channels, and that those people would have to defend their actions in some public forum in which neither their time nor their energies could be expended effectively in terms of making this project successful. So several v8 4 May 1, 1986 of the investors, therefore, have raised that issue as to whether they would be able to be effective, whether they would be able to make a positive contribution. As a result of that, we made an announcement yesterday, one, that we were withdrawing, or that those investors would be withdrawing, subject to an ability to meet with the development team and assure the development team that their withdrawal would be orderly, with an opportunity for the development team to secure alternate investors who did not subject the project to that type of criticism. I won't go into the criticism. I think I could spend all afternoon in some of the issues that were raised and it's hard to tell whether they're accurate or not - again, because of the forum chosen to debate those particular issues. I guess I would be responding to an interview or I would be responding to an article and would get involved in what was meant or what was intended. Mr. Carollo: Tom, excuse me. You and your friends and business associates have had plenty of time to debate the issues involved. We debated the issue at the last time we met before this Commission for three hours, even though you refused to answer a lot of questions in the debate that we've had and, at any time, you and your investors and associates have had the opportunity to debate, face to face, with anyone who has an opposing view in just about any media in this town. Mr. Carlos: Well, I don't know that I have anything further to add than what I've already stated. I thought we were prepared and made assurances that all the disclosures that were called upon, that all the conditions that were proposed, that we would be cognizant of them and we would endeavor to meet those conditions so that the citizenry of the City of Miami represented by this Commission would adequately be protected in that particular investment. If there are any questions at this time that I can answer, I would be happy to do so. I would hate to think that a response to what we thought was an inappropriate forum for the debate of these particular issues and a response by individuals who made an assessment that they thought that they would be less than effective and that their continued involvement in the project would jeopardize the project, I think was a fair one to make early on and, at the same time, that they had committed to go through that evaluation process and make their withdrawal from the project as smoothly as possible without subjecting the project to a dislocation at this time. It is not an indication in any way of their feeling about the merits of the project or the financial feasibility of the project. I think that's not been in question, nor is it in question on their part today. Mayor Suarez: Can you tell us specifically which ones are now withdrawing? Mr. Carlos: Well, the evaluation - what we don't want to do is engage in the names of groups or associations, but apparently a group of us who are identified with a particular organization in this community and the efforts which we attempt in behalf of that organization have been called into question and if there's, number one, any doubt or question about our carrying out the objectives of our participation in that organization, we'd like to make that clear and not, under any circumstances, place our roles in that organization in question. And we have to try and reconcile that with our involvement in the Watson Island project. If we can't reconcile that then we will have to withdraw from the project as investors, but only after we have done so having worked out our financial commitments and responsibilities to Watson Island Development Corporation. Mrs. Kennedy: Mr. Mayor - Mayor Suarez: Yes, go ahead, Commissioner. Mrs. Kennedy: Along those lines I see some very basic points. First of all, the developers of Watson Island have had over one year to obtain the proper financing. Mr. Plummer: (off mike) Almost two. Mrs. Kennedy: Almost two, OK. Then, obviously, the group headed by Jorge Mas, Pepe Hernandez and Tony Zamora they thought it was the most promising one or they would not have presented it at last Tuesday's meeting. Now they talk about obtaining other sorts of developers. I don't know, that may or may not be the case, but what is certainly the case is the cloud of suspicion that has fallen upon Watson Island. vg 5 May 1, 1986 Mr. Carlos: Well, I can understand that. At the same time, there are other investors in that group who have made far greater financial commitments, really, in the Watson Island Development Corporation than the individuals whom you have mentioned. In terms of a local participation, it certainly has had an effect on those three individuals, and probably myself, because of our association. It has also been brought to our attention - at least from the interview - that, apparently, a prospective investor who has received recognition in this community for having been recognized by a special day - a person that I really don't know personally but I felt had something to contribute to this particular project - that the manner in which he was to be evaluated or his participation was to be evaluated, was in the public forum, as opposed to allowing us to present what information we had regarding this individual, allowing us to receive the City Manager's position on this matter and, eventually, the position of the Council. It's the manner in which we are proceeding that causes us this problem. It, in some way, charges the atmosphere to such a degree that investors will become very susceptible to having their motives impuned that it's going to be very hard for these investors to come forward. It leads through the group that we have put together in terms of a local effort. Mr. Carollo: But, Tom, you, most of all, being an attorney, and being an attorney that is a very successful attorney in zoning matters before governmental bodies, know well that the way we do things in this state is under the Sunshine - under the Sunshine, not in backroom deals - and that any time that we have had leases that this City has entered to we have done things in the Sunshine. Now, when I had asked questions of you at the last time that we discussed this issue here, publicly, you refused to answer me when I wanted to find out on the 37-1/2 percent that the Watson Island Development Corporation has, what percent of that each of the twelve individuals in your group had and you refused to answer how much money each of the investors had placed. I understand why now. Let me read to you in case you haven't kept up to date on this issue. This is in today's Miami Herald, in an article by Justin Gillis, whom if he is incorrect in what he wrote, he's right here and you could ask him further questions. He states that United Nations Ambassador, Jean Kirkpatrick, called him to set the record straight and say that she had never been an investor in the project, despite the claims of the developers. Now, what you represented to this Commission was that all twelve of the people named in your group, including Ambassador Kirkpatrick, who has my utmost respect and admiration, were investors in this development. Mr. Carlos: There were several statements you made, Commissioner Carollo. One, the question of whether we are going to deal on this matter in the Sunshine. I don't have any problem in dealing with this matter in the Sunshine, in a public forum, before this Commission, or whatever designated body. Mr. Carollo: Apparently you have in the past, Mr. Carlos. But, nevertheless, go ahead, sir. Mr. Carlos: I'm not going to debate with you because, with respect to the information that I had received in terms of Ambassador Kirkpatrick's involvement was that she was an acknowledged investor in the project and we therefore represented that she was. We stand corrected if that information was erroneous. Mr. Carollo: Well, for the record again, as Ambassador Kirkpatrick told the Miami Herald, that information is certainly erroneous and the representation that was made to us by you and others in your group was very, very erroneous. Mr. Carlos: Well, I'll let you draw your own conclusion from that. I'm not going to debate it at this point in time. As I indicated ... Mr. Carollo: You know, Tom, you started by saying today that you haven't had the opportunity to debate this issue in the proper forums. Now if this is not the proper forum to debate this issue, then what is the proper forum? I'd like you to tell me. Mr. Carlos: I have no objection. That's why I'm here. Mr. Carollo: But you keep saying that you don't want to debate. You started by saying, and complaining, that this issue was not being debated in the vg 6 May 1, 1986 0 proper forum. Now, you are saying you don't want to debate it here. But then you're coming back and saying that you have no objections to debating. Which is it? Mr. Carlos: It's not a question of a debate. It's a question of the information. I mean, you've represented certain things through the newspaper that Ambassador Kirkpatrick is not an investor in the project ... Mr. Carollo: I'm reading what she has stated to the papers. Mrs. Kennedy: So who's right, then? Mr. Carlos: Well, I assume that we've had some miscommunication, or at least the representative of our investment team has had some miscommunication with Ambassador Kirkpatrick. I'm not going to question whether Ambassador Kirkpatrick's statement is correct. I'm going to accept that. Mayor Suarez: Tom, suppose - and I'm not saying that this would be something that I would propose, but just as a supposition to see how your investment team would feel about it - that we would give you - and this Commission would be disposed to do this - until the last working day prior to the cabinet meeting. In other words, we're talking about next Monday - I believe I'm correct on that point - to come up with substitute investors. I think the understanding of this Commission, from press reports, is that these individuals are no longer involved, although you have stated that there are some remaining things for them to work out. But suppose that the consensus here and from the Miami Herald reports and so on is that these people have basically pulled out, and certainly the confidence of this Commission that they're involved has lessened to the point of disbelief that any of them are really involved in this project, but suppose we gave the City Manager until Monday at five in which to determine whether you had substituted these investors with others equally creditworthy or equally committed to the investment of the same amounts of money. Now, does that solve anything for you? Mr. Carlos: Well, I think it does. First of all, I think that the people who are on the investment team in Watson Island that there's more than enough commitment of capital, and the actual capital that was primarily going to be put up was other than by those three individuals. Two of those individuals made the commitment to assure the development team that those monies would be forthcoming. The actual monies that will be forthcoming are from other individuals in that investment team other than those three that have been mentioned here. I think that we can accomplish that and I think at the same time we ought to be given an opportunity to understand. Notwithstanding the remarks of Commissioner Carollo - and I've tried to stay away from engaging in a criticism of the manner in which he has conducted his assessment thus far. I think, as a Commissioner, he's entitled to approach it any way he wants to but I think the end result of the manner in which he has done it, you know, makes certain things very difficult. You have a prospective investor. You see from an interview you almost have what is tantamount to red -baiting and you find that under those circumstances that people say: "Wait a minute! I can't conduct my affairs or my participation in this thing seems to be politically motivated, or politically motivate one of the Commissioners to in some way deprive this project from its fair consideration in the process that's been outlined by this Commission." Mr. Carollo: Tom, I resent very much that you're trying to find scapegoats for your inefficiency to come through with the things that you promised on this project and for the misrepresentations that you have given to this Commission. Now, as far as Ambassador Kirkpatrick goes, no one told her what to say. This is what the lady said. Everyone was curious. That's why I kept asking at the last Commission meeting why were you hiding all these so-called investors? Now, I'm beginning to see why. The difference is, Tom, that you're involved in this and when you represent clients before governmental bodies like you are now, you're doing it for your own private business, which is great, and I commend that. You see, I don't have to play those games because I have nothing to gain here. My sole responsibility is to protect the interests of the people of Miami, not to protect the interests in the pockets of people like you. I'd like to get something in the record straight. Are you here in representation of the Watson Island Development Corporation alone or in representation of the Watson Island Development Corporation and the Abella Group? vg 7 May 1, 1986 0 Mr. Carlos: I represent the Watson Island Development Corporation itself. There are no commitments to the Abella Group and no understanding has been reached with the Abella Group in terms of its participation. Mr. Carollo: Well, if that's the case then why is the entire agreement that you all reached three days before this Commission first met on this on April loth and one day before that you incorporated this Watson Island Development Corporation as a corporation in the state of Florida? The agreement that you all reached with Mr. Meyer of Miami Marine Exposition, Inc. states everywhere in this contract that the Abella Group is the person that is being counted on for the money. Let me start from page one, if I may. Mr. Carlos: Commissioner Carollo, I don't ... Mr. Carollo: No, no, I want to get this in the record, whether you like to hear it or not, sir. On page two, if I may, section B: "Subject to reduction, as set forth below, the partnership has set aside up to fifty percent limited partnership ownership positions in exchange for a forty million equity investment. This has, subject to certain conditions, been offered to a group headed by Albert Abella - the Abella Group. If the Abella Group fails to satisfy such conditions or if rejected in whole or in part by the Abella Group, it will be available to some other equity investor." It goes on and on about the Abella Group. It says in section C on page 2: "It is understood and agreed to by the parties hereto that Watson Island Development Corporation's 37-1/2 percent interest in the partnership is based not only on its equity contribution but also on its arranging for the Abella Group to invest at least $20 million in the partnership." And it goes on and on talking about the Abella Group. Now, which is it, is this contract a farce or did I make up this contract or is what you're telling me not accurate? Mr. Carlos: Commissioner Carollo, you misconstrue my remarks. There's no question about it that the group that I represent has explored the investment opportunities with the Abella Group and it is so stated in that agreement. You asked me as to whether Abella - whether I was representing him or whether I was representing the Watson Island Development Corporation. I am representing the Watson Island Development Corporation. As of this date there is no commitment from the Abella Group to the Watson Island Development Corporation or vice versa and one of the issues that has been debated in the public forum has been - I say the public forum, outside of these Chambers - has been the qualifications or the suitability, let's say, of Mr. Abella to participate in this. We recognize that through the process of identifying who our investors are, and we are committed to that process and we have indicated that should any investors be added to the Watson Island Development Corporation that they would be disclosed and that they would be made known to the City Manager so that the full Commission would be aware of who was participating in the project. We've not been given that opportunity, but yet there has been debate, chosen by members of this Commission, by individuals on this Commission, to debate the qualifications of Mr. Abella in other fora. This makes it very ... Mr. Carollo: Mr. Carlos, we can have a debate on any issue that you would like right here, in a public forum, where I think it's appropriate place to have it in. Now, I think if anyone's been baiting, it's been your group that was Abella-baiting, Mr. Meyer and his group, to get the 37-1/2 percent because his whole contract, as it is read, it certainly, gives the distinct impression that you were able to reach the contract with Mr. Meyer's group based on baiting with the Abella Group. In fact, I'll even go further than that. On April 3, 1986, one of your business associates and law partner of Xavier Suarez, went before the Oversight Committee on the proposed exhibition center and he stated there that "I represent Mr. Abella on other matters and had the opportunity to visit him in London". Clearly, he is representing him. He went there trying to cut some deal with the City of Miami for Mr. Abella's acre and a half of land - the Miami River near the Miami Convention - some kind of deal where he was hoping the City would take that land in exchange for something, hopefully, on Watson Island. Again, if I may, sir, introduce for the record the letter that Mr. Abella sent to Mr. Meyer on March 25, 1986. Xavier, would you like a copy of this if you haven't already seen it? It be more than happy to provide one for you. It states the following: "As you know, I have the intention to exert my efforts to raise the necessary equity funds to make the Watson Island project a reality - approximately US$40 million and I am in the process of making contacts for this purpose. In order vg 8 May 1, 1986 to express my belief in the project as you had it presented to me and as submitted in detail to the City of Miami, as set out in your letter of February 26, 1985, and its attached studies, a copy of which was given to me and the possibility of obtaining the necessary equity funds, I hereby confirm to you my intention, subject to the terms and conditions set out below to invest the proceeds of the sale of the property controlled by me in the northwest of the Miami Avenue Bridge more properly described in Exhibit A and attached hereto, the property and the ownership of the project." The property that he is talking about here is the property that Mr. Samoa came before the committee's meeting for the exhibition space on April 3 and acknowledged that he was representing Mr. Abella. I can only imagine when he said that he was representing Mr. Abella that that was also the law firm which he was partners, at least definitely on that date, with Mr. Suarez and others. And the letter goes on to say: "Based on recent offers and events, it is my belief that the fair market value of the property is in excess of US$20 million. As stated above, this intention of investment is subject to the following terms and conditions: (a) that the sale of the property referred to above takes place during the course of 1986 pursuant to existing conditions." And it goes on and on and on and is signed: "Yours sincerely, Albert Abella", who heads the Abella Group. Now, ... Mr. Carlos: May I reply to that? Mr. Carollo: Certainly, sir. This is why ... Mayor Suarez: Before you do, Tom, before you do, let me redirect this back to what we're here for and make the following statement and the following motion. My understanding, from direct conversations with Francisco Hernandez, is that he himself is no longer involved as an investor in this project. As such, I don't belip;%e 1 ha a a conflict - if I did have one before, which was never truly ;;!ear to me, but therefore I can participate in the voting. I am going to pass the gavel over to Commissioner Kennedy and move the following, based on your response to my p-ior question. Remember, I asked you if you thought that in the next, effectl.vely forty-eight hours, the next two working days, you would be able to substitute these people who we understand, from reading the Herald, from direct communications, from a variety of sources, that will not be part of the development group. You have, frankly, not given me a satisfactory answer, Tom, as to why this Commission should continue to instruct the City Manager to appear, and the Administration, to appear before the cabinet on May 6. I don't really believe you can solve that problem by then. Frankly, this is a project which has lasted a long time and as to that particular point, it is my motion that we do in fact direct the administration not to appear before the State of Florida Cabinet meeting on May 6, 1986 to ask for an extension of the Watson Island project. That is my motion. I presume you've got - and the investors who've put a lot into this and a lot of time and a lot of effort - other ways to try to revive this project. I don't know what this Commission will do in terms of the continuing negotiations with you. If you could, at a later time, satisfy this Commission that at least the seed money is in, let alone the additional cash equity. I've always felt that you need a 20 percent cash equity criteria here in order to be able to proceed, you know. I've made that clear. I've made that public, even though I didn't vote. I abstained on the last vote and I'm not sure that you can come up with that but if you were able to come up with that and if this Commission saw fit to reconsider all of this it would be up to the Commission. But, as of now, I make the motion that we not be represented at the Cabinet meeting on next Tuesday. Mr. Carollo: If I may, I'd like to second the motion - only for the purpose of discussion, mind you, so we can clear up the smoke a little bit in this charade that we're seeing further develop before us... Mayor Suarez: The motion ... Commissioner, he's asked for clarification of the motion. The motion is... Mrs. Kennedy: The motion is to direct ... Mr. Carollo: The motion, Miller, is part of the motion that I presented before you. I don't mind the Mayor ... Mayor Suarez: Wait, wait, wait, Commissionerl The motion, Commissioner Dawkins, is that we direct - it's what the memorandum that Commissioner Carollo passed out today - the thrust of it - that we direct the vg 9 May 1, 1986 J�1 � administration not to appear before the Cabinet meeting on May 6 of this week on behalf of the extension for the Watson Island project. That's my motion. Mr. Carollo: In other words, what the Mayor is saying is that he copied part of my motion and not all of it completely, which is f ine - I don't mind you doing that, Xavier, you know - at least you're finally heading in the right direction - but I still need to clear up the air on your conflict of interest. Mr. Carlos stated very clearly, in English, for the record that Mr. Hernandez and the other investors would withdraw, subject to them finding substitute investors. It is obvious that Mr. Meyer has a contract with these people and it appears that what they've done is thrown it from an airplane 20,000 feet without a parachute. It is my understanding that Mr. Meyer was informed after these individuals from the Watson Island Development Corporation went on the air on WQBA saying that they were withdrawing from this project. He had not been informed up to that point. Now, based on the fact that the attorney that represents this group, that represents Mr. Hernandez, has stated clearly that they are only withdrawing subject to finding substitute investors. I think it is more than clear that Mr. Hernandez is still part of this. He has not withdrawn yet. Furthermore, I think the air has to be cleared out on another matter. On the April 3 meeting 1986 on the Oversight Committee meeting of the proposed Exhibition Center, your law partner, Mr. Antonio Zamora, stated that he was representing Mr. Abella on other matters and had the opportunity to visit him in London. Now, was he representing Mr. Abella as part of the firm, or was he moonlighting and doing it on his own and doing this behind your firm's back? Which is it? Was the Abella Group represented by your firm or was Mr. Zamora deceiving your firm at the time that he was supposed to be working for them and representing them on his own? I think that needs to be answered. Mayor Suarez: I'm not going to answer ... Mrs. Kennedy: OK, we have a motion ... Mayor Suarez: Madam Chair, I'm not going to answer that question. Mr. Carollo: Excuse me, if I may, Rosario. Mayor Suarez: I'll clarify whatever - any questions that any ... Mr. Carollo: Xavier I want to get for the record ... Mayor Suarez: Commissioner, I don't have to state anything for the record other than what I have stated. Mr. Carollo: Certainly! Certainly! Fine! You don't have to say anything. Mrs. Kennedy: OK. I have the gavel and I have a question on this motion. Are you saying, Commissioner Carollo, that Mayor Suarez should not be voting because the group is not completely out and there might be a conflict? Mr. Carollo: Exactly that! The attorney that's representing this group stated clearly, in English, that this group has not withdrawn yet, that it will withdraw subject to finding substitute investors. Furthermore, his law partner stated April 3 that he was representing the Abella Group. I take that to mean that the firm was. Mayor Suarez: I'll clarify that point... Mr. Carollo: Well, fine. Mayor Suarez: ...insofar as it may have anything to do with this motion. I can assure you that ... Mr. Carollo: If I may ... Mayor Suarez: Commissioner Carollo, please, I can assure you that Mr. Zamora at no time represented the Abella Group in regards to the Watson Island project. Mr. Carollo: Then he's lying? vg 10 May 1, 1986 Mayor Suarez: Nor did he ever represent the Abella Group while he was a partner of mine, but that's the only thing I need to state on the record. Mr. Carollo: Mr. Suarez, would you like for me to get the tape right now and play for you Mr. Zamora's own words? I'd be more than happy to. Mayor Suarez: You read it before. You said that he stated ... Mr. Carollo: Well, if you don't believe me, though, I'll get it for you to make sure there's no doubt in your mind. Mayor Suarez: Commissioner, you read it - that he represented the Abella Group in other matters. I guarantee you, and I state so for the record, that... Mr. Carollo: If I may, I'd like to, at this point in time, withdraw my second to part of my motion that Mr. Suarez presented and present my full motion now as originally was given to the members of the Commission. And this motion - or should I say resolution - rescinding motion number M-86-294 adopted April 22, 1986, regarding the development of Watson Island, rejecting the proposal of Miami Marine Exposition, Inc. to develop cultural, recreational and entertainment facilities on Watson Island. Further directing the City Administration to cease efforts to extend the development order issued for the development of said island. And I present this in the form of a motion. Mayor Suarez: So moved by Commissioner Carollo. We've got two motions on the floor. Mr. Carollo: No, sir. There's one motion because I withdrew my second to part of yours. Mayor Suarez: You're quite correct. The other motion was not seconded. We have a motion. Mrs. Kennedy: We have a motion there - I have the gavel back - to direct Mayor Suarez: No, because this one is not my motion ... Mrs. Kennedy: Not your motion? OK. Mayor Suarez: I'm not sure that the other one was ever rescinded because it was not seconded because we didn't give a chance to anyone else: to second it. Did anyone want to second the motion that I had previously made to simply instruct the administration not to appear on May 6 before the Cabinet? Commissioner Carollo withdrew his second on that one. Going once, going twice! OK, we've got a new motion - that one was not seconded. This motion is the exact text of this resolution here? Mr. Carollo: This is the exact text of the resolution that was presented to each member of the Commission when this meeting was first begun. Mayor Suarez: So moved. Mr. Plummer: Is it seconded? Mayor Suarez: No second so far. Mr. Plummer: Well, excuse me, I wanted to ask a question. Mrs. Kennedy: Why don't you second it for purposes of discussion? Mr. Plummer: I'll second it for purposes of discussion. All right. Under discussion. Mr. Gilchrist, if there is no appearance before the Cabinet on - whatever that date is next week - the project is effectively dead. Is that correct? Mr. Gilchrist: Yes, sir. It would have to go back to a whole new process in terms of going through the Regional Planning Council - an application ... Mr. Plummer: So what are we really arguing about here, because, on the record, I voted against going back to the Cabinet, so I'm on the record, and that was my original vote and I still could not - no way I could hold my head vg 11 May 1, 1986 A up in front of that Governor and say, "please, one more time!" I said that before and I say it again. So, really, the only thing we need t•o do is a motion to tell the City Administration to cease to extend the development order and that kills the project. UNIDENTIFIED SPEAKER: Sir, I would like to ... Mr. Plummer: Well, but wait a minute! Let me tell you my concern and I think this is the thing that Carollo is trying to bring out and that is that in no way is the administration to do any negotiation. You see, the motion of 86- 294 sent you to negotiate. Now, at this particular time, I don't think there's anything to negotiate because there is no question that regardless of whose statements are right or wrong, there is a credibility gap. It exists. And I'm not here to say who established it. I'm not saying who's wrong. But there's no question that there's a gap. Now, if what I understand you to say is that without going before the cabinet the project is dead and the only way that it could be revived is to go out - if we were to ever go out - with new RFPs. Is that correct? Mr. Gilchrist: Well, no. Sir, I think that the developer could, along with the city, go back through the application for development order process. Mr. Plummer: OK. Then Carollo's making a good point. Mr. Odio: Yes. Mr. Gilchrist: It took us two, three years ... Mr. Plummer: OK. Now, I am withdrawing my second at this time and the reason for it is this. I am in concurrence with two out of the three points that are in this resolution. Mr. Carollo: Which is the one you're not in concurrence with, J.L.? Mr. Plummer: I am in concurrence - let me go positive Joe - I am in concurrence to rescind motion 86-294. And, of course, based on my previous vote, I have to vote against letting the administration appear before the cabinet. Now, what I'm saying - and let's understand what I'm saying for the record - I am not rejecting the proposal. Mayor Suarez: You're not precluding further negotiations? Mr. Plummer: Yes, yes. I am precluding further negotiations until - for this one vote - until they come back in here - if they ever do - and prove to me that they have got a viable and substantial financial package on questions without a break in credibility. Mr. Carollo: I'll be more than happy, J.L., to amend my motion to say that. I think it is clear that if we are not going to go before the Cabinet meeting that this would not be extended. Mr. Plummer: Predicated on that amendment to the resolution, I second the motion. Mr. Dawkins: Under discussion. Mayor Suarez: Commissioner Dawkins. Mr. Dawkins: Are we saying - not we - am I voting to say that by not sending this up and asking the Governor's Cabinet to give it another transfusion, that it is dead henceforth, now and forever more? Mr. Plummer: No. Mr. Dawkins: You're not saying that? Mr. Plummer: No, what you're ... Mr. Dawkins: What are we voting ... ? Mayor Suarez: Give us a scenario that would allow them to proceed. Commissioner Dawkins, we're all thinking about the same thing, here. How could it possibly proceed if it doesn't go before the Cabinet at this point? vg 12 May 1, 1986 Mr. Plummer: Very simple. What the problem is, Mr. Mayor, is the D.R.I. That is the problem. What the Cabinet, in effect, has done over these many years and many times, has extended the D.R.I., so that hopefully there was a proposal could come in. Now, in no way are you killing any further action. But it would - you remember I brought out the other day - and I made this very clear, or I thought I did, but after reading some things I wonder if I did - that I made, on the record, that the developer agreed to every point of the present D.R.I. and would be subject to further modifications. Now, Commissioner Dawkins, to answer your questions. What this, in effect, would do is make the developer go back through an entirely new D.R.I. Mr. Dawkins: OK, but in the event ... Mr. Plummer: ... or any other developer. Mr. Dawkins: But in the event that all those good citizens who were out here the other day telling me that we should not develop Watson Island, caught a bus and went to Tallahassee and encouraged the Cabinet not to extend the D.R.I., would that kill the project? Mr. Odio: (off mike) Oh, yes. Mr. Plummer: Yes. Mr. Dawkins: That would? Now, all you good folks out there who told me ... Mr. Plummer: Excuse me! As presently proposed ... Mr. Dawkins: ... that I was wrong for voting for Watson Island. Get you a chartered bus, find out when they going to meet and go up there and convince them to kill this project. Now, treat them just like you treated me. All of you came down here en masse to tell me I was wrong for voting for this project. Now, we'll see where your guts are. Catch you a bus and go on up there and tell the Governor not to extend the D.R.I. and the project is dead and we always will be able to show my grandchildren what open space looked like. Mr. Carollo: I think what the Commissioner is trying to say is: "no guts, no glory!" Mayor Suarez: As a legal matter, Al, do you have standing if the City does not participate in the Cabinet hearing to petition for the extension? Mr. Cardenas: Well, let me tell you what the status, now, of this matter is. It is my understanding ... Mr. Carollo: Excuse me, Al, if I may, I'm sorry to interrupt you, but I think this has to be cleared up for the record, also. Mayor Suarez: Wait, Commissioner, we're going to have him clear up the question I just asked him, please. Do you have standing from your understanding to even apply for ... Mr. Carollo: Certain, Xavier, no problem. Mr. Cardenas: For the record, the matter is correctly before the Cabinet on its agenda. Staff, it's my understanding, has already issued a recommendation in favor of the extension. It's my understanding, from an informal polling of the members of the Cabinet, that barring action from the City, they intend to improve the extension of the D.R.I. It was made very clear to me that if the City itself did not wish for an extension that it would be a very extremely rare case for it to be given. So my conclusion is that if the City withdraws its support of the extension that D.R.I. will, in effect, die. If it merely takes a passive role, we have a chance to prevail. If it takes a positive role, I see no way it can fail. Mayor Suarez: That doesn't really answer my question. Do you have standing to argue before the Cabinet on behalf of the project, or not, if the City does not send any representatives to ... ? vg 13 May 1, 1986 ONNI Mr. Cardenas: I think the City is the party in interest. I don't see how it... Mr. Odio: Excuse me. The request was not their request. We were instructed by the Commission and we wrote the letter, not them, and if we withdraw, they're out. Mr. Plummer: Let me interject, if I may. Mr. Cardenas: That's correct. Mr. Plummer: Let's remember what the Cabinet is approving. I think it's very crucial. I think it's very important. The Cabinet put forth six criteria that had to be met by - what was it, April 6 or 10, whatever that deadline day was. Every one of the criteria had, in fact, been met, with the exception of one and that one is what we're about today - the financial package. Mr. Cardenas: If I may respectfully disagree ... that sixth category, we have taken the position it is moot because that category was only necessary if it involved public funding. Once public funding was not necessary for this project, that category became moot and I assure you, Commissioner Plummer, that the State of Florida has taken that legal position, as well. Mr. Carollo: Al, if I ... Mr. Plummer: Excuse me! Counselor, I will take objection to that. I was at the meeting. I want to tell you that the one concern that was expressed to me privately was that the Cabinet did not want to find itself in a position that a project was approved that failed and they could be blamed for it, so they were more interested in the total financial picture than the financial feasibility. Mr. Cardenas: Well, reasonable men can differ. I'm giving you the input I've received on the subject. Mr. Plummer: Reasonable men can disagree - they don't have to be disagreeable. I agree with that. Mr. Cardenas: That's right. Mr. Carollo: Al, whom are you representing here today? Mr. Cardenas: I'm representing John Meyer, Bernardo Fort and Miami Marine Exposition as an applicant. Mr. Carollo: Are you representing the Abella Group also? Mr. Cardenas: No. Mr. Carollo: OK. For the record, did John Meyer or Miami Marine Exposition bring the Abella Group into the picture, here, or not - into the development of Watson Island? Mr. Cardenas: I don't believe either John Meyer or Miami Marine Exposition or myself have ever met Mr. Abella. Mr. Carollo: Then I was correct in the statements that I previously made that the people, the individuals that brought the Abella Group into the picture were the people from the Watson Island Development Corporation, is that correct? Mr. Cardenas: That's correct. I believe Mr. Meyer, in the execution of the agreement, agreed to Mr. Abella being sought out as a developer - as an investor - by executing that document. Mr. Carollo: By executing the document after he was presented to him ... ? Mr. Cardenas: That's correct. Mr. Carollo: ... by the Watson Island Development Corporation. If I can, for the record ... You are and have been the attorney representing Mr. Meyer and Miami Marine Exposition, Inc., correct? vg 14 May 1, 1986 Mr. Cardenas: Since over a year ago. That's correct. Mr. Carollo: When was Mr. Meyer or you, as his attorney, first notified that these people were pulling out and, if that is the case, if they are actually pulling out? Mr. Cardenas: I was advised yesterday evening ... Mr. Carollo: Approximately what time, sir? Mr. Cardenas: I was advised yesterday evening by John Meyer, I would say 6:30 or maybe 7:00. Mr. Carollo: Six -thirty to seven in the evening? Mr. Cardenas: That's right. I understand, though, that the individuals in question did call my office at about 5:30 and I was unavailable at that time. Mr. Carollo: Now, did they say that they were pulling out completely or did they say that they were pulling out subject to finding substitute investors? Mr. Cardenas: I have not directly asked them that question myself up till now. It was my understanding that they did not intend to continue to be investors in the venture but under what circumstances or at what time was not described to me. Mr. Carollo: In the contract that Miami Marine Exposition, Inc. has with the Watson Island Development Corporation, are there provisions in that contract that they just can't pull out like this, like supposedly has been alleged that they claim they were going to do as they said on the radio yesterday? Mr. Cardenas: Well, the contract speaks for itself ... Mr. Carollo: In other words, would they be in default if they would just pull out, period? Mr. Cardenas: If they pulled out, period, the contract would be concluded but the Watson Island Development Corporation, as an entity, I understand, based on what Tom just said, has not decided to pull out - if what he said is ... Mr. Carollo: I hope the Mayor heard that. Counselor has stated that as he understood it, also, none of those individuals, none of your friends - Pepe Hernandez, Tony Zamora, Jorge Mascanosa have pulled out. They're still part of this group. But if, in fact, again, if they would pull out - not as Mr. Carlos, represented here, finding a substitute - but just pull out, period, would they be in breach of the contract that they signed with Mr. Meyer's people? Mr. Cardenas: It depends if Mr. Meyer is agreeable to their pulling out or not. Mr. Carollo: That's understandable. Let's say he's not agreeable. Would they be in breach of their contract? Mr. Cardenas: If the Watson Island Development Corporation - if they individually pulled out of the Watson Island Development Corporation, that, in and of itself, would not affect this contract unless - because our provity, in other words, our contractual relationship, is with the corporation. Now, if their pulling out results in the corporation defaulting under the terms of the contract then the corporation, of which they're a part, would be in default, or in breach of the contract. Mr. Carollo: So, in other words, you've answered my question in the affirmative, that if they all pull out, like is being represented, that is their intention without finding substitute investors, then they will be in breach of the contract. Mr. Cardenas: Well, we have an assurance ... Mayor Suarez: You need not answer any legal ... vg 15 May 1, 1986 Mr. Carollo: Xavier - would you mind ... Mayor Suarez: Commissioner - ! Mr. Carollo: No, would you mind ... Mayor Suarez: You need not answer any legal conclusions. Mr. Carollo: I'm still speaking to the gentleman ... Mayor Suarez: Commissioner, please! You need not answer any legal conclusions, Al, if you don't ... Please! Mr. Carollo: When I am done, sir, if you want to ask any questions, you go ahead and ask them. Mayor Suarez: You need not answer any ... Commissioner, please! Mr. Carollo: If you want to play attorney, I suggest you reapply to the City of South Miami. Mayor Suarez: Commissioner! As Chairman ... Mr. Carollo: We have a City Attorney, sir, that can answer the questions to US. Mayor Suarez: Please - at the back! Mr. Carollo: You are not our City Attorney and this gentleman is a qualified professional attorney. You don't have to give him legal advice. Mayor Suarez: Commissioner! I'm telling you! I'm ruling! The Chair rules that you need not answer any legal conclusions ... Mr. Carollo: Fine! He knows that he does not have to answer anything that he does not have to. Mayor Suarez: Commissioner! Mr. Carollo: Xavier! Mayor Suarez: I'm going to rule you out of order! Now ... Mr. Carollo: You can rule me out of order any time that you want, sir. Now, you've interrupted me very rudely. Mr. Cardenas knows that he does not have to answer any questions - just like Mr. Carlos does. Now, Al ... Can I proceed? Mayor Suarez: Commissioner, let me complete my statement. Commissioner, please! Mr. Carollo: You just want to interrupt this meeting so that no further questions are asked. Mayor Suarez: You can ask all the questions you want. You need not answer any legal questions that are conclusions ... Mr. Carollo: Fine! Then, when you've finished, I'll ask some more questions. Mayor Suarez: You can ask all the questions you want. Once again, for the record, and to clarify. You need not state your legal conclusion on any contractual arrangements if you don't want to. I don't think I have to tell you that, but just in case ... Mr. Carollo: I'll make sure that I send the additional resume that you presented here to South Miami for you. Now, if I may, Al - based on what you're telling me, then, the conclusion that I'm reaching is basically that the contract that we have been given the bottom line is that the Watson Island Development Corporation in itself had certain contractual obligations with Mr. Meyer's group - the Miami Marine Exposition, Inc. - and the first that you were informed of any potential investors within the Watson Island Development partnership leaving was yesterday evening. Now, I keep hearing that this is vg 16 May 1, 1986 being changed, that is being changed. This reminds me of the game that you've three shells and a bean and you move it around and try to find it. Since this originally begun over a year ago to now, the changes that have been made here is unreal. It seems that every other month you have new people involved in this. You don't know who's in first, who's second. We don't know who we're dealing with, here. Mr. Cardenas: Well, for one year ... Mr. Carollo: All that I know is that nobody wants to acknowledge that they know Abella. I think we're going to have to start getting buttons made up that "I don't know Abella!" Nobody wants to take responsibility for him but, in the meantime, this whole contract that you've all agreed to is based around the Abella Group giving $40 million or, at the very least, $20 million. Mr. Cardenas: Well, that one I do take exception with. I think that contract is perfectly performable by both the Watson Island Development Corporation, John Meyer, Bernardo Fort, if Abella is not an investor. Mr. Carollo: Nevertheless, nevertheless - and there are some other provisions to that effect granted. Mr. Cardenas: Right. Mr. Carollo: It is written into this contract that the Abella Group is being given - and I'll read it again: "Subject to reduction, as set forth below, the partnership has set aside fifty percent limited partnership, ownership position, in exchange for a forty million equity investment. This is subject to certain conditions being offered to a group headed by Albert Abella - the Abella Group." And then further down, in section C, it says: "It is understood and agreed to by the parties hereto that W.D.I.C.'s 37-1/2 percent interest in the partnership is based not only on its equity contribution but also on its arranging for the Abella Group to invest at least twenty million in the partnership." This reminds me of a novel that's quite famous. The only difference is that I think we're going to have to call this novel "Ali Baba and the Forty Million Dollars!" Mr. Plummer, you still have seconded my motion, correct, sir? Mr. Plummer: As amended, yes, sir. Mayor Suarez: We have a motion and a second as amended. Mr. Plummer: Mr. Mayor, let me just put on the record, and I want to make it clear, that it is my understanding as of right now that Mr. Hernandez has withdrawn. Mr. Jorge Mas has withdrawn and, predicated on that, those were the strengths that I voted to send it to negotiation. Al, I want you to understand that. It was indicated by the banker who was here that the letter of credit - unlimited letter of credit - was based on the strength and integrity of those two gentlemen. And, as far as I'm concerned, if those two gentlemen have withdrawn, as well as others, I think that this Commission must - we have no choice - we must know the total, full and financial picture that it is viable. So, for that reason, I am going to vote to rescind the motion, predicated on those people have withdrawn. And, of course, the second part of that motion is my long standing. Mr. Carollo: J.L., this is irrelevant to this point in time, but, nevertheless, the records should be corrected. The letter of credit that they talked about was not actually a letter of credit, it was a line of credit. There's a big difference in that. Mr. Plummer: Well, I think we know the financial capability of the two people who were represented on that line or letter of credit. Mr. Carollo: To be very frank with you, I have some grave reservations about the financial capabilities of those individuals. Mr. Plummer: Well, I don't. Mr. Carollo: But it's not the time to get into that. Mr. Plummer: I don't. vg 17 May 1, 1986 Mrs. Kennedy: Still under discussion, let me say that, like Commissioner Plummer, I also voted because of the local investors involved. I don't think that a project of this magnitude can change investors every couple of days. I just don't see how we can do it. I think it's like Humpty Dumpty - it's going to be very hard to put it together again. Mr. Carlos: Commissioner Kennedy, that's one of our concerns, too, because I think that a person who was born, raised in this community I think, for me, it was a bold step forward to say I want to engage in a business endeavor with the degree of scrutiny that this endeavor would undergo - and the other investors as well. The point that we are trying to make is that the other investors as well, even though there are investors in this group - in the Watson Island Group that have the financial wherewithal and the capability to continue this project, it appears that various things, with respect to Mr. Abella, all of a sudden are being described as sinister. And, yet, I have not seen any evidence or any indication that warrants an indictment of Mr. Abella. However, ... Mr. Carollo: No one's ever said anything such of the sort, Mr. Carlos. The problem is - and the question is - frankly, does this community, does this Commission want to give up fifty percent of the equity of the Watson Island Project to foreign investors, people that are not American nationals. Mr. Carlos: Commissioner, you complained about being interrupted by your fellow Commissioners. Mr. Carollo: Sir, you have plenty of time to finish what you want to say. We can stay here all evening if you like. I'll wait here, listen to you. Mr. Carlos: No, I don't have the desire to engage with you in the direction in which you are going and, apparently, that is basically our concern, our problem. We feel that the manner in which the evaluation process is being conducted has caused this project to seek its own reevaluation within its investors so as to strengthen that ability. We don't feel that the ability of the Watson Island Development Corporation to underwrite this investment has been diminished. What we have done is that because of the attacks that have been made politically, and you indicated I have a political consideration at the end of your agenda at the last meeting and you elevated it to a political consideration. Mr. Carollo: Mr. Carlos, the only political considerations that have been given here have been the political considerations that your group, from the start, had, thinking that because of your political muscle - as the word would describe - that you could do anything you pleased here and you were going to be taking Watson Island away like as if it was a Christmas gift. Mr. Carlos: We would like ... That is one of the reasons for the reconsideration of the situation. Mayor Suarez: I gathered that. Mr. Carlos: We just don't think that's the atmosphere or the climate in which good business can be applied to this process. I think I have had my comment. I do want to leave with the point: Watson Island is a meritorious project. Of course, that evaluation is one for this particular Commission, one in which business people don't wish to underwrite unless this Commission is fully behind it. Secondly, I don't know that anything is in danger by leaving the status quo and allowing the Cabinet to act on, apparently, a willingness to extend this matter for an additional period of time so that the financial situation of the Watson Development Corporation can be brought to the attention of the City Manager. And, hopefully, the City Manager would be given an opportunity for that material to be given to him. Thirdly, I want to represent that the remaining investors in the Watson Island Development Corporation will be able to demonstrate that they do have the wherewithal to continue this project. I understand that, again, in terms of, maybe, other considerations, you may wish, at this time, to take a pass on that. I would think there's nothing to be lost by merely stating that you can, hopefully, amend that particular motion before you vote and give the City Manager an opportunity to receive whatever additional information - financial information - within a prescribed period of time and then take your vote based on that information in front of you. vg 18 May 1, 1986 Mrs. Kennedy: Tom ... Mr. Carollo: If I may, Tom, you said "remaining investors". You had a list of twelve people that were presented to this Commission. Out of these twelve people, which are still left and which are not? Mr. Carlos: Well, the only ones that have had a serious consideration as to whether their participation adversely impacts on the investment team are the four members that are members of the Foundation. Mr. Carollo: And Jean Kirkpatrick, stating that she was never part of this, so that's five out of the twelve that either resigned now or were never involved to begin with with this project. Are the others still part of this team? Mr. Carlos: My understanding is that they are and ... Mr. Carollo: Can we get some letters signed by them to that effect if they still are? Mr. Carlos: I would like to be given that opportunity and be able to be given that opportunity for them to demonstrate within a very short order whether you want it by Monday five o'clock, or whether you wish to allow the proceedings in Tallahassee to proceed without any recommendation from this Commission or any action being taken from this Commission to give us ten days to respond and to provide that information. And we'll allow our participation to rest on that evaluation. Mr. Plummer: Well, I think the way the motion is couched at the present time, Tom, that this Commission will not make a recommendation either way - for or against. Now, let me say to you, because I think I know what I'm saying, but maybe some other people don't. This doesn't kill the project - what it does - it says that there has been established a credibility gap and I don't think anybody questions that, and that before anything proceeds any further, that gap has got to be satisfied and eliminated, OK? And, as far as I'm concerned, let's say, for example, that the Cabinet does not extend the D.R.I. on next Tuesday, I guess it is. They can still apply with a proposal, a package and go back through the D.R.I., which he had agreed to do, anyhow. So the project is not necessarily dead. What my one vote is saying to you - if you can come back here and demonstrate a totally good, financial package, I'll consider it. I'm not saying I'll vote for it, but I'll consider it. But at this particular time I think there's too much gap of the credibility. Mr. Carlos: I accept your assessment and analysis, Commissioner. Mrs. Kennedy: And to follow that, let me tell you that for a project on Watson Island to be successful it must start without any clouds or any doubts. Mr. Carlos: Commissioner, that's why this assessment and evaluation is ongoing at this time. I think that various elements were injected into the evaluation process and we felt that they were creating just such a cloud. They were jeopardizing our ability to perform that particular function and, of course, that cloud that you indicated and we sought to dispel that cloud as a result of the action we've taken. Mr. Dawkins: Call the question. Mayor Suarez: Let's call the question. Let's close the debate and vote on this. Mr. Dawkins: What are we voting on first? Mayor Suarez: We're voting on a motion as now, a resolution as amended, here in front of you, Commissioner, basically rescinding the prior resolution and directing the City Administration not to intervene in the Cabinet hearings on behalf of the Watson Island project. vg 19 May 1, 1986 The following resolution was introduced by Commissioner Carollo, who moved its adoption: RESOLUTION NO. 86-306 A RESOLUTION RESCINDING MOTION NO. M-86-294, ADOPTED APRIL 22, 1986, REGARDING THE DEVELOPMENT OF WATSON ISLAND; FURTHER DIRECTING THE CITY ADMINISTRATION TO CEASE EFFORTS TO EXTEND THE DEVELOPMENT ORDER ISSUED FOR DEVELOPMENT ON SAID ISLAND. (Here follows body of resolution, omitted here and on file in the Office of the City Clerk.) Upon being seconded by Commissioner Plummer, the resolution was passed and adopted by the following vote - AYES: Commissioner Joe Carollo Commissioner Miller J. Dawkins Commissioner Rosario Kennedy Vice -Mayor J. L. Plummer, Jr. Mayor Xavier L. Suarez NOES: None. ABSENT: None. DURING ROLL CALL: Mr. Carollo: I vote "yes" and, again, while voting yes, I would like to remind Xavier that from what both Counselors stated, Mr. Hernandez has not withdrawn, therefore, if he had a conflict of interest last time, he would still have one now. Mr. Plummer: It looks like the good old days have returned! Mrs. Kennedy: I thought a woman on the Commission would change all this! Mr. Plummer: You promised ... I Mrs. Kennedy: I know, and I still - I tell you, it's not as bad, it's not as badl Mr. Dawkins: I'm voting "yes", and in voting yes, I would hope that all those individuals who were here last week be sure and check with the Governor so when it comes back to me the Governor will tell me "no" and I will not have to vote yes, even if they have the money. Mayor Suarez: Everyone's making an editorial announcement at this point. I just want to clarify that Mr. Albert Abella, to correct Commissioner Carollo's statement, is known by certain people. In fact, apparently, he had a day dedicated to him by the City of Miami in 1981 by the prior Administration. In any event, I vote "yes". Thank you, Al. Gwen, there's no reason for you to make any statement other than to tell us, of course, that you are against the project. Ms. Gwen Richman: (off mike) (inaudible comment) Mayor Suarez: We have so noted and we can clarify anything for you in private. There's no need for you to ... It would not be procedurally proper. This Commission stands adjourned. Thank you, who have participated in this session. vg 20 May 1, 1986 THERE BEING NO FURTHER BUSINESS TO COME BEFORE THE CITY COMMISSION, THE MEETING WAS ADJOURNED AT 5:31 P.M. ATTEST: Batty Hirai CITY CLERK Walter J. Foeman ASSISTANT CITY CLERK Xavier L. Suarez M A Y O R t NCOHPIORATED � isE 96 vg 21 May 1, 1986 Cl"im"'Y OF lNr,.IAMI DOCUMENT MEETIND DAB MAY 1, 1986 I-NDEX COMMISSION REfRIVY DOCIHDIT IDENTIFICATION ArTTnN Aim rnnr wl RESCIND MOTION NO. M-86-294, (APRIL 22, 1986) REGARDING THE DEVELOPMENT OF WATSON ISLAND; FURTHER DIRECT THE CITY ADMINISTRA- TION TO CEASE EFFORTS FO EXTEND THE DEVELOP- MENT ORDER ISSUED FOR DEVELOPMENT ON SAID ISLAND.