HomeMy WebLinkAboutM-81-0131t
' LAW OFFICES
'i t}: `�,\C`'(t RtS�S I3t.c cK j'r.i:t-, COLA` t� Srnrc)�, P. A.
P. O. BOX. 340800
IRWIN J. BLOCK 2401 DOUGLAS ROAD
MITCHELL R. BLOOMBERG
CHARLES A.CITP14 iti,4Lalj. 1'1,0111MIL Z:11:!-L t3051 446-2200
BPUCE JAY COLAN
GENE ESSNEP
MAR'IN VINE CABLE ADDRESS �MIAt+itLAW
SAMUEL GO:) December 221 1980
SARA B. HERALD
BERNARD JACOBSON
TH EODOPE KLEIN
MA14UEL LUBEL s�
REBEKAH J. POSTON
JOSEPH H. SEROTA d
STUART L. SIMON
LINDA ANN WELLS
r
Honorable Maurice Ferre
Mayor of the City of MiaitAi co ;
City Hall, Dinner Key ..
Miami, FL 33133 ry _
REi proposed Housing Finance Plan
Dear 2•laurice :
I would welcome an opportunity to appear before the City Commission
at its meeting on Thursday, February 12, 1981, in order to review and
discuss the proposal I previously sent you and the other members of
the Commission, embodied in the report entitled, "A City of Two Tales".
Obviously, I would be happy to meet with you and/or Dick Fosmoen prior
discuss the same, if you thin}: that is appropriate.
to the meeting to disc
Without I trust, in the least bit seeming presumptious, I would like
to appear at tY?e meeting of the Commission on February 12th, rather
than at a housing workshop where many other matters relating to the
production of housi.nc would be discussed. I think it is important to
draw a very clear distinction between concepts presently being
advanced to the Commission for the reduction of minimum sizes of
apartrents, zoning. requirements and other such matters, as opposed
t0 it?C b1 _ _ t ^ `1C.. C F pr _ding mor Alin io lip vi ui i i J make fiOtlSl ng
feasible for low and ^moderate income families.
If possible, I would also li}:e to request that this appearance be
scheduled as one of the early items on the agenda, since past experience
has indicated to me that as the day goes on, it becomes more difficult
to gain the attention of all the Commissioners on a matter as important
as this.
With kindest personal regards, I remain
r
' •, _ _ - ~Jilt,r v , t . •_ .akL .xv i :.ice. ...
� � �� i ;-rt,. � "-,ate-� �"� I I �• � t!���.r:..:t � � .ter � _ -•
.,,� �� ' -�-' . :. • _r r_= ° ;,�: fill
�� •ice _7M�'•��� _ ��.1� � / 'rF �Fh. � ::. - :r..::.:-:._ �. ..1
f
t�-+t* !,•r`��;" :fit . , , . r - - _ S �..ti, „,:... �c �.. -. _.. - - - - - -= � ��•--'..�
yyc�
city
a
P
4
At Miami embarks upon the last two decades of this
Cehtury, it finds itself experiencing an unprecedented rate of
growth and development in its downtown core and surrounding
areas. At the same time many of its "off shore" neighborhoods
are in a rapidly accelerating state of decline, with little
possibility of revitalization.
Miami's recent growth can best be described as a "City
of Two Tales." one in which new luxury condominiums, hotels
and office structures, housing the people and the business of
affluence and prosperity are built in great numbers; and the
other where slums, substandard housing, and all of its
concomitant problems, are growing at an alarming rate.
one is zealously fueled by capital funds generated
from all parts of this nation, and more recently, from all
parts of the world. The other is one where funds for
d66ks in a new att museum and library presently under
construction; but have not developed the financing capabilities
to properly house people of low and moderate incomes. We have
helped make possible the building of gleaming new towers in our
downtown area, but are unable or unwilling to redeem the
adjacent ghettos.
Miami in some respects is a "City of Facades." When
seen from beautiful Biscayne Bay, perhaps its principal natural
asset, it appears in all of its splendor: attractive, exciting,
vibrant with new buildings housing the leaders of finance and
commerce, and the residential palaces of the affluent. It is
often referred to as the Magic City. As viewed from Biscayne
Bay it projects its most pleasing and shiny new personality,
onto a veritable Magic lantern screen, pretending that no other
part of the City exists.
Within the shadows of the prospering downtown core and
only a few blocks from the shoreline of beautiful Biscayne Bay,
Miami's decadence lies. Here is located its slums,
deteriorated neighborhoods and its hopeless and frustrated
citizens. It is the home of the disadvantaged, the breeding
ground of crime and delinquency and the source of future
occupants for the jails and hospitals of this community.
Inhumane conditions exist in the midst of plenty. Its
1 inhabitants do not participate at the banquet tables of growth
and prosperity in this community. They are the victims of
apathy and indifference of a bommunity which hopes that by some
form of magic the problem will disappear. It is a forty year
old hope:
Its residents desperately cry out for help, but their
shrill voices are deafened by the noise and clatter of
Construction tools, building the sleek new structures, which
enjoy the beauty and serenity of Biscayne Bay, an asset which
belongs in common to all of the citizens of Miami.
Ghetto residents seek real and meaningful solutions to
their housing and economic problems and are eager to
participate in their planning and implementation. They receive
instead, announcements of the creation of new boards and
committees to study the problems. Funds allocated to its
deteriorated neighborhoods are in miniscule proportions, with
built-in assurances of a continuing defeat.
In order to attempt to rectify this gross inequity, it
is essential that we recognize that Biscayne Bay is owned by
the total commiunity. Its resources are an important asset of
the total community - not just of those who live, or who own
property, on its shores. It is morally and legally correct for
the political and business leadership of this community to make
such a determination.
Once such a determination is made, it is equitable and
logical to conclude that a portion of the tax revenue generated
from properties built on bayfront land and other close -by
j. $1 1 * it' 11'
Areasr be set aside and used 'for the redevelopment of the "cuff
shore" areas of the community.
PROPOSAL
The City and County Commission should pass the
necessary legislation, designating the area shown in the map as
Exhibit A, as a "Bayfront Development Area," and agree that its
real estate tax base be "established" as of January 1, 1981 for
the purpose of determining the amount of any future tax
increment. The process would be similar to the procedure
followed under Florida law in establishing a redevelopment
district and subsequently implementing a tax increment
financing plan.
Under current procedures, the "off shore" communities,
which contain slum and blight are designated as redevelopment
districts. Thereafter a redevelopment plan is prepared and its
implementation is generally financed with federal grants, and
in some instances City and County funds, which could include
proceeds of a tax increment financing program.
This proposal reverses the procedure. It recognizes
that the Bayfront properties, which utilize and benefit from
the community -owned Biscayne Bay, should be the source from
which funds should be derived in order to assist in the
redevelopment of the depressed "off shore" neighborhoods.
I , 0 0
This procedure is equitable and fair. It is easy to
admihister. It does not impose any new taxes. It does not
require a new or expanded bureaucracy for its implementation.
It simply recognizes the principle that BUT FOR the presence of
Biscayne Bay, the properties built on its shoreline and
surrounding areas would not be as valuable and desirable.
The underlying principle of the proposal can best be
illustrated by using the Omni project and the surrounding area
as a case study. In 1978, the Omni complex, consisting of a
huge enclosed retail mall and a 600-room hotel was completed at
a cost of approximately 70 million dollars. It is an
outstanding example of an intensive urban development which
adds economic viability to the downtown core of Miami. It is
an exciting "urban happening" and meeting place.
Shortl:, after its completion, the Plaza Venetia
project, located behind Omni and situated on the shores of
Biscayne gay, was started. Phase one, of three planned phases,
consisting of apartments, hotel rooms and related facilities
has now been completed. Phases two and three are planned for
development over the next several years and when completed will
be a major and outstanding contribution to the growth and
development of downtown Miami. The projected cost of the three
phases of Plaza Venetia is approximately $300,000,0U0.
Within 6 blocks due West of these developments, as
shown on the map, Exhibit B, lies an area of the community
5�
which is commonly referred toy as Overtown. Its substandard
housing, consisting primarily of two-story run down apartment
buildings, locally referred to as "concrete monsters" can best
be described as disgraceful. These conditions have existed in
one form or another for 40 years or more and unfortunately will
continue to exist unless substantial funds, on a continuing
basis, over a period of many years, (at least 20) are
specifically allocated to its redevelopment.
One other classic example of how Biscayne Bay, a total
community owned asset, is used to enhance and insure the
economic viability of a project is Brickell Key, formerly known
as Claughton Island. It is an island, located near the mouth
of the Miami River and Biscayne Bay, is connected to the
mainland by a bridge, and is within walking distance of
downtown Miami.
As a result of its excellent location, as well as its
outstanding planning and development program, it is
experiencing a great deal of success and market acceptability.
Its first condominium building consisting of 300 apartments is
completely sold out, and its economic future bright and almost
assured.
The amount of development which is taking place in
just these three projects is mind boggling. When completed in
1986, their estimated assessed valuation for real estate tax
purposes will be approximately $1,300,000,000. This amount is
based on 1980 dollars and does 'not take into account any factor
for inflation.
As a matter of comparison, the taxable value of all
real property located within the City of Miami for the year
1976, was only $3,789,137,846.
Projects such as Omni, Plaza Venetia and Brickell Key
are important economic contributions to the well-being of
downtown Miami and the total community and should be
encouraged.
This proposal seeks to establish a fair and reasonable
mechanism whereby the City and County will automatically use a
substantial portion, but no less than 50%, of the increased tax
revenue received from the Bayfront properties to redevelop the
"off shore" communities. Such a program should be carried out
over the next two decades so that by the year 2000, these
neighborhoods can be redeveloped in an appropriate and
desirable manner.
SUMMARY
In 1969, Bill Baggs, then editor of the Miami News,
Proposed
a
plan which called
for the
development
of
Miami "from
the
ghetto
to the Bay". He
clearly
understood
and
constantly
articulated tho fact that this community could not develop its
waterfront property and allow its blighted areas to stagnate
to Novembet, 1910, Rai Goode, then County Manager and
liar one of Miami's most active and outstanding citizens, issued
a challenge to the community at the annual meeting of the
Community Relations Board, entitled "Who Will Blow the Trumpet
for the Coun,y's Ill Housed?" It was a clear and unequivocal
message that this community could not afford to allow a
substantial portion of its citizens to live in slum and
blighted housing. Shortly thereafter, a community -wide
committee was formed under the auspices of the Urban Coalition
to respond to the challenge. It was composed of influential
citizens, builders, representatives of the banking industry,
and others from all segments of the community. In May, 1971,
it rendered its report which called for "the production in the
next two years, of 10,000 units of 'subsidized housing that are
safe, sanitary and decent and located in suitable neighborhood
environments."
Now, after almost ten years, during a period of
substantial economic and social progress, only approximately
25% of the goal has been met. During this period of time, our
political leaders and the chief administrative officers of the
City and County have been committed to the goal of providing
decent housing in a suitable environment for all of our
citizens. They have put forth their best efforts and energies
to do so. Nevertheless, the goal has not and cannot be met
under present funding limitations.
0 9
The "off shore" area.4 have not been redeveloped, nor —
Will they be, if the City and the County must continue to look -
to Washington for funds with which to carry out such a vast and
Costly redevelopment program. History has shown that it
Matters little which political party is in power in
Washington. Sufficient funds, received in a timely manner and
on a continuing basis have never been available to properly
i
i
address the problems of redeveloping the slum and blighted
areas of this or any other community.
i The City and County should create a fund in which the
ti -
incremental real estate taxes collected from the "Bayfront
Redevelopment Area" would be placed. It might properly be
designated as the "Twenty -First Century Housing and
Redevelopment Fund."
Such funds would primarily be used as they are
collected, on a year to year basis. If necessary, some limited
amount of bonding could be utilized in order to carry out one
or more particular projects. Any bonds which would be issued It
would not be of a general obligation' nature. Rather, they
OEM --
would be similar to those issued in a tax increment financing
plan and would be somewhat similar to a revenue bond. Perhaps
i -
they could 13c? designated as a "Moral Obligation Bond" since
rim6ral agreement" with the residents of the "off shore" areas,
to provide the funds with which to properly redevelop these
long neglected areas of the community.
The funds so collected could be used to acquire land,
for redevelopment purposes and for the construction of housing
in the slum and blighted "off shore" neighborhoods. These
funds should also be utilized for acquisition of parks and
other facilities which make a geographical area become a
cohesive and attractive neighborhood.
It should also make funds available to families which
require assistance in acquiring new and/or existing
single-family homes under the various programs presently being
implemented by the City and County. Both of these governmental
agencies have successfully carried out home ownership
assistance programs on a limited basis and have hands-on
experience in recognizing the great benefits to the assisted
families and to the community in having such families enjoy the
great American dream of private home ownership.
The enormity and importance 'of the redevelopment
process will require a great deal of effort and cooperation
between the public and private sectors. There is a unique
opportunit;• in Miami to establish various forms of creative
partnerships between public agencies and those in the private
sector engaged in the construction industry, such as builders,
Savings and Loan Associations, Mortgage Bankers, Commercial
Banks, Realtors and others.
0 * 0.F
Miami has been fortunate in establishing such
relationships during the past several years. It has a base
upon which to continue and enlarge upon such activities.
An important benefit of such relationships is the
possibility of "leveraging" public funds by virtue of the
participation of the private sector lending institutions, which
will result in bringing about a greater impact in the use of
public funds.
Indispensable partners in such relationships are the
community based organizations and institutions which already
exist in the neighborhoods. Their participation can guarantee
the local residents that they will be involved in the
redevelopment process.
This proposal is simple and straightforward. It is a
means of recognizing that Biscayne Bay is an asset which
belongs in common to all of the citizens of this community.
Its implementation can be carried out by the City and County
Commissions, without any approval from Tallahassee or
Washington. It requires the political - courage and leadership
to articulate the realities of the situation and the subsequent
passage of ordinances in order to initiate and carry out such a
program.
I believe that the proper and timely implementation of
this program can eliminate the slum and blighted areas of our
community by the end of this century.
C
1-9
M
r77-1
U. J.
Downtown Development ►
Authority
Overtown C.D. Target
Area
Proposed Bayfront z Z ?S
Redevelopment Area ---------- -
at
tt Sri
k* S4
M
CAUS,E*41
Lu
MW tS ST
20 St
'C AE :'.'A T
01W f4 ST =\m--
Zzz
K
000"..1"A sit
E .: xv
r
N W. 20 ST.
N.W. 14 ST
KW. B St
W
Q
w
W. MAGLER ST
SW.6 ST.
W
> W
W < >
�Q <
� N
P1 < 1
�� II z' II li a II n I1 I II�Vt zL--� L—
f r--- ID
"El 1�C�C�a ,1
��- O 1
�n�---- ,
===7
IL
PLAZA
'ENETIA
PHASES
MAC.ARTHUR
CAUSEWAY
co
W
W
Z
♦♦a++
'V
Y I
•i
-K Y
AREAS OF SLUM & BLIGHT 111"1 1 1 �'
0 »o •00