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N[WMIAMI
To: Honorable Mayor and Members of the City Commi lion
From: Marva L. Wiley, President/CEO, Model City Trust ONCA.
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Subject: Conflict of Interest Waiver - M. Athalie Range
Date: July 9, 2004
RECOMMENDATION:
It is respectfully requested that the City Commission approve by four -fifths vote
the waiver of the provisions of Section 2-611 which establishes a conflict of
interest for the purchase of property located at 1620-24 NW 58th Street from M.
Athalie Range for the Model City Homeownership Zone Pilot Project.
BACKGROUND:
As you may know, the City of Miami acquired property in connection with the
Model City Homeownership Zone Pilot Project on April 3, 2002 from Mrs. M.
Athalie Range. At that time M. Athalie Range was serving as Chairperson of the
Virginia Key Beach Park Trust having been appointed by Resolution No. 1-127
on February 8, 2001.
The City Commission approved the purchase of several properties located in the
Model City Homeownership Zone on September 25, 2001, in Resolution No. 01-
1043. One of those properties was that of M. Athalie Range located at 1620-24
NW 58th Street. The resolution required a 4/5 vote because purchase price of
several of the properties exceeded the appraised values. Upon research into the
matter, we have not been able to confirm that the appropriate notice for a conflict
of interest public hearing was done.
Upon recent inquiry from the U.S. Department of Housing and Urban
Development, staff in the City Attorney's Office researched the issue regarding
whether a conflict of interest existed consistent with the City of Miami's code in
making the acquisition and what had the City done to address the conflict.
The City Attorney's Office has advised that the transaction would present a
conflict of interest under the provisions of the City Code and has recommended
that the waiver be sought from the City Commission for the real estate sales
transaction retroactively.
You will recall that the Conflict of Interest provisions of Section 2-612 of the Code
of the City of Miami provides that:
"No [officer, official and employee of the city,
including every member of any board, commission or
agency of the city] shall enter into any contract or
transact any business with the City or any person or
agency acting for the City..." (emphasis added).
The Trust is IegisIatively defined as:
"A limited agency and instrumentality of the city to
be known as the 'Model City Community
Revitalization District Trust' is created and
established. Use of the term Trust, in this division,
shall mean the Model City Community Revitalization
District Trust."
Thus, Section 2-612 of the City Code would prohibit purchase of land by the City
or the Model City Community Revitalization District Trust without a waiver of
the conflict of interest provisions consistent with Section 2-614 of the Code.
The Code provides the City Commission with the mechanism for waiving a
conflict of interest by a four -fifths vote and with a public hearing.
Assuming that the development area was designated without any regard to the
Mrs. Range's role as the Chair of another limited agency and instrumentality of
the City of Miami and Mrs. Range was treated in the same manner as other
property owners located in the area, no additional benefit inured to Mrs. Range
by virtue of her position relative to the City of Miami Board. Thus, this
recommendation is submitted for your consideration.
As a point of information, you should note that the N. Patrick Range was not
appointed to the Board of Directors of the Model City Community Revitalization
District Trust until May 9, 2004 (Resolution No. 02-547), after the April 3, 2002,
real estate sales transaction; thus, the City Attorney's Office has advised that the
transaction was "grandfathered" and does not present a similar conflict.