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HomeMy WebLinkAboutcover pagePartnerships for a N[WMIAMI To: Honorable Mayor and Members of the City Commi lion From: Marva L. Wiley, President/CEO, Model City Trust ONCA. - 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.