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Meeting Minutes
Thursday, May 22, 2008
9:00 AM
PLANNING & ZONING
City Hall Commission Chambers
City Commission
Manuel A. Diaz, Mayor
Joe Sanchez, Chair
Michelle Spence -Jones, Vice -Chair
Angel Gonzalez, Commissioner District One
Marc David $arnoff, Commissioner District Two
Tomas Regalado, Commissioner District Four
Pedro G. Hernandez, City Manager
Julie 0 Btu, City Attorney
Priscilla A. Thompson, City Clerk
City Commission
Meeting Minutes May 22, 2008
RE.3 08-00520
Department of
Capital
Improvements
Program
RESOLUTION
A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH
ATTACHMENT(S), APPROVING THE TERMS OF, AND AUTHORIZING THE
CITY MANAGER TO EXECUTE THE MEMORANDUM OF UNDERSTANDING,
IN SUBSTANTIALLY THE ATTACHED FORM, BETWEEN THE CITY OF
MIAMI, MIAMI-DADE COUNTY, THE MIAMI SPORTS AND EXHIBITION
AUTHORITY, THE MIAMI ARTS MUSEUM OF DADE COUNTY
ASSOCIATION, INC., THE MUSEUM OF SCIENCE, INC, AND THE
HISTORICAL ASSOCIATION OF SOUTHERN FLORIDA, INC., FOR THE
IMPLEMENTATION OF THE MUSEUM PARK PROJECT IN BICENTENNIAL
PARK.
Motion by Commissioner Sarnoff, seconded by Commissioner Gonzalez, that this matter
be ADOPTED PASSED by the following vote.
Votes: Ayes: 4 - Commissioner Gonzalez, Sarnoff, Sanchez and Spence -Jones
Noes: 1 - Commissioner Regalado
R-08-0290
Chair Sanchez: Let's take up RE.3. RE.3. All right, RE.3 is also a resolution; no public input;
no public hearing. It is a resolution authorizing the City Manager to execute a memorandum of
understanding with the museums. All right, do you want to --? Mr. City Manager --
Pedro G. Hernandez (City Manager): Mr. Hernstadt will do the item. However, I wanted to do,
you know, as part of my introduction, that this is a non -binding agreement between the City, the
County, Miami Sports and Exhibition Authority, Miami Arts Museum, Museum of Science, and
the Historic Association of Southern Florida. And --
Chair Sanchez: There is no public hearing.
Mr. Hernandez: -- I wanted to lake you -- I want --
Steve Hagan: Excuse me, Mr. --
Chair Sanchez: There is no public hearing. It's a resolution.
Mr. Hagan: As a point of order. Under the citizens' bill of rights —
Priscilla A. Thompson (City Clerk): Sir? Chair --
Mr. Hagan: (INAUDIBLE).
Ms. Thompson: -- I don't have a name for the record.
Mr. Hagan: (INAUDIBLE).
Vice Chair Spence -Jones: You got to put your name on the record, Steve.
Chair Sanchez: But it's --
Mr. Hagan: Oh, Steve Hagan, 727 (INAUDIBLE).
Chair Sanchez: Madam Attorney, there is no public hearing on this item, correct?
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Mr. Hagan: (COMMENTS OFF THE RECORD).
Chair Sanchez: All right. Air. City Manager, you're recognized for the record
Mr. Hernandez: Mr. Chairman, Commissioners --
Chair Sanchez: Sorry for the interruption.
A4r. Hernandez: =- this is an item that it's an interlocal between the City, the County, the
Museums, and MSEA (Miami Sports & Exhibition Authority) in order to lease the two 4-acre
parcels that are going to be used for both museums. It only talks about the two 4-acre parcels,
not the park itself, and it's something that was heard by MSEA and approved last week. It was
also approved by the County and the boards of the respective museums. I want to also put on the
record that back in June of '07 when we were discussing the project grant for the Museum of
Art, that there were some conditions placed al that time by Commissioner SarnolT Spence -Jones,
and yourself, Commissioner Sanchez, and that those conditions will be discussed and negotiated
as part of the future definitive agreements that will be corning before you in the future.
Chair Sanchez: Just want to put on the record, there'll be plenty of public participation when we
get to the lease agreement, the management agreement, and the construction agreement. Based
on the procedure here today, this is a resolution; it'll -- there'll be a motion and a second, which
Ill entertain now; it'll be open for discussion, and then we'll vote on this item. So on RE.3, do 1
have a motion to approve?
Commissioner Sarnoff.' So moved, Mr. Chairman.
Chair Sanchez: There's a motion by Commissioner Sarnoff. Is there a second?
Commissioner Gonzalez: Second.
Chair Sanchez: Second by Commissioner Gonzalez. The item is under discussion.
Commissioner Sarnoff Mr. Chairman.
Chair Sanchez: Yes, sir. You're recognized for the record.
Commissioner Sarnoff I think it's imperative, as the City Manager suggested, that the Miami
Museum ofArt and I think it should also be imperative that science take heed of the caution that
we've placed on them in June 14, 2007 so that they demonstrate their fiscal ability and reliability
in their management and overseeing of their respective museum sites, and 1 want to make sure
that the City Manager, who's put on the record to his credit, that he will maintain the June 14,
2007 criteria, which I have a copy of if he'd like to read, as well as the discussions put on there.
1 know Commissioner Spence -Jones had a number of them, and that we continue lb harbor those
agreements and incorporate them in the respective either management agreement or the lease
itself. So with that, you know, I am --1 would like to urge my colleagues 10 pass this resolution
as 1 think it's time that we cite these museums on the park with fiscal responsibility.
Chair Sanchez: All right. Vice Chair Spence -Jones, you're recognized for the record.
Vice Chair Spence -Jones: Thank you, Mr. Chairman. The only two issues that 1 have regarding
this overall item, and it was explained by the City Attorney and by the City Manager regarding
the MOU (Memorandum of Understanding), that we will have the opportunity to include the two
issues in the overall agreement. And my biggest concern on June 14 regarding MAM (Miami
Museum ofArt) and regarding these agreements, one was this Community Benefits Agreement. I
thought that it was imperative that that would happen, and 1 don't know where we are from the
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Meeting Minutes May 22, 2008
standpoint -- and I'm assuming Roger's going to respond to it or somebody's going to respond to
the issue of the Community Benefits Agreement and the status of that happening, is that being put
in place? Because what 1 don't want to have happen -- it always seems as though things are
rushed because we got to get it done at a certain period of time, and then all of a sudden, we're
trving to throw everything in to make it happen, and then we're forced up here to swallow it.
Now, / was -- it was communicated to me that, okay, Commissioner Spence -Jones, this is the
MOU; we need to pass this particular item, but when the overall agreement comes, then we can
put the Community Benefits Agreement and the oversight board in place. I don't want this -- the
agreement to cone in front of us and we say, oh, we [sic] in the process of doing it, and it has
not happened yet. i would like to gel an update on the status of those two issues first before Igo
anywhere else, so can you give me that -- the update on the Community Benefits Agreement and
what you guys have accomplished since then, since June 14?
Mr. Hernstadt: Commissioner, Roger Hernstadt, assistant city manager. We have -- we are --
went over all the conditions from the June meeting with the respective museums, and we -- they
are aware, and they've expressed to me their willingness to work together to bring forth the
successful project that everyone involved can support and deal with the issues that the elected
officials from the City of Miami feel are vet)/ important for the City. So we have begun to talk.
We're doing the process of setting up regular meetings to work -- negotiate all the issues so that
we can, a, inform the Commission of the terms that we are in agreement of, inform the elected
officials of the terms that we're not in agreement on and what the perhaps middle ground are
and -- before bringing an agreement to the City Commission and MSEA for approval. And your
two points are forefront in our minds with respect to that.
Vice Chair Spence -Jones: Okay. With all due respect, Roger, I'm hearing what you're saying,
but can I get an update as to where we are with the Community Benefits Agreement and the
oversight board? Has there been any meetings regarding, you know -- I mean, I would like to
appoint somebody on this community oversight board that I think should sit on the board if we're
talking about this major development that's going to be happening in a city park. I would want -
- we would -- we should be talking to these individuals now before the agreement comes from the
County, and then we have to swallow whatever pill is given to us. So where are we with this
oversight board because 1 would like to at least put two people on whatever this oversight board
is? And the other issue for me is the Community Benefits Agreement. In order to create a
Community Benefits Agreement that's going to go into the overall agreement that we're going to
have with AIAM, we need to have the community's input on what those things are, so -- and that
takes time. So any update on that?
Terry Riley: May 1--? My name is Terry Riley, director of the Miami Art Museum. 1 just --
everything that Roger said is, of course, correct, but I would like to -- Commissioners to at least
know what the museums have been doing in anticipation of entering into more formal talks. One
of the requirements was $40 million in pledges, $8 million in cash. We have exceeded both of
those. In fact, I'm very happy to say that the $10 million Knight Foundation grant we got, plus --
and I'm able to announce this. for the, first time today -- a $5 million grant we received yesterday
from a major corporation put us well over that requirement. As such, if we had the plans ready
today, we could break ground and finish the project. We have enough money between the
County funds and the private funding to do that. The other requirements, we're passed the
MOU, which we hopefully will do today; take a proactive role in funding the park. I'd like the
Commissioners to know that we worked with the City and other parties to approach the Knight
Foundation for funding for the bay walk portion of the park. We've also had a discussion with a
private individual, who's capable of making $8 million -- eight -figure gift to support the
development and maintenance of the park. We've had the public hearings, as you requested. We
have made the parking available for the community in the design. We expect to meet the
requirement for the number of spaces pending ADA (Americans with Disabilities Act), security,
and visitor -safety requirements. And finally, we executed a grant agreement with the County
which requires that we not seek reimbursement for any sofi costs over 17 percent. So I'm sorry
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we haven't been able to get back to you and report On all these agreements, but we have been
doing these. A draft benefits agreement was submitted to the City Clerk after the June meeting.
We've updated that, and Alichelle Spence -Jones, I'm sorry, we did submit it to your office, to
your assistant. And we were able to increase our proposed programs and benefits to the
community because we've been bolstered by the Knight -- S10 million Knight Foundation gift, so
we've been very diligent and we've taken your issues very, very seriously. We've not been back to
report to you, but we want you to know that both Commissioner Sarnoffs and Commissioner
Spence -Jones' issues have been in the forefront of our mind.
Vice Chair Spence -Jones: Mr. Riley --
Mr. Riley: Yes.
Vice Chair Spence -Jones: -- first of all, let me commend you on raising the money and meeting
the requirements that was asked of the Commission and exceeding that because that was one of
the biggest issues. Let's be very clear. For me -- and again, it's -- we still haven't gotten a direct
response on the Community Benefits Agreement and the oversight board that we talked about
regarding the community being involved with what's happening in the overall park As far as the
draft agreement or the benefits agreement that you said that was submitted to our office --1'm
assuming you had submitted it to all the Commissioners' office. For ►ne, it's not really about
what 1 think; it's about making sure that the input comes in from the community regarding what
they feel needs to happen in a Community Benefits Agreement. So no matter what the board or
your team decides to put together regarding a benefits agreement to submit to us, it really
doesn't hold as much weight unless the community has real involvement or participation, and to
me it should be kind of the oversight board at least being put in place to then give comments on
what the Community Benefits Agreement should include. It shouldn't be that this is the benefits
that we're going to give you, community, without your input; and then from that point, we make a
decision on it. It needs to be vice versa.
Mr. Riley: We'd be happy to participate --
Vice Chair Spence -Jones: So my question is on the oversight board, have you pulled Together an
oversight board or started the motion of that?
Mr. Riley: I don't think the museums are empowered to pull that board together. 1 would defer
10 Roger.
Vice Chair Spence -Jones: Okay. Roger, please respond to that.
Mr. Hernstadt: Commissioner, in all honesty, we haven't started the oversight board process,
but as soon as -- there is a provision for a committee in the MOU, and we will begin working on
that immediately and make sure that the issues that you've raised are in the forefront, as 1 said
earlier.
Vice Chair Spence -Jones: Okay. I just -- thank you, Roger. What I wanted to just say in
closing, because 1 know how this whole thing, you know, unfolds most of the time. Again, we're
forced to rush and make decisions because we have these deadlines for whatever reasons that
are placed on us. I don't want to be placed in that position. If ! support the MOU, I want 10
support it with the understanding today that before that agreement comes back in front of the
City Commission, there would have been at least an oversight board meeting prior to us
agreeing or supporting or denying, whatever the case may be, that meeting. That needs to take
place -- that oversight -- and I think that we all should have someone appointed to sit on that
oversight board because a park is not just for one particular community; it's for the whole entire
city. And I think that it's important to consider a lot of the issues that the community have,
making sure that there's small business participation, making sure that there's local arts -based
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organizations involved 1 personally am going to say this and put it on the record. I know that
at least from the study that we've been doing with parks regarding our Little Haiti cultural
complex, our -- we've actually brought in someone to actually assess what needs to happen in the
cultural complex, and we've looked al several arts -based organizations in Miami. and the
consultants said they reached out to MAM several tines with any fol -- without any
follow-through or any input, one way or the other, just to get information. So I know if I'm
having a difficult time with just sitting down to have a basic interview about how cultural arts
organizations work so that we don't make a mistake with Little Haiti cultural complex, i can only
imagine what's going to happen if 1 have to rely on the oversight board being put in place before
the agreement or the Community Benefits Agreement being in place. 1 just -- my feeling is, you
know, it's very hard, for me to trust when people say they're going to do things and they don't
deliver. So while / may vote in support on it today, you need to be very clear that when it comes
to the next time, as far as the agreement is concerned, if this board isn't [sic] come together or
this benefit agreements has not had the input of the community, Spence -Jones answer or support
on this issue is not going to be here.
Mr. Riley: Commissioner, the answer to your points are yes, yes, yes, and to the extent that the
folks in Little Haiti are having an issue getting in touch with the right people, we'll be more than
happy to intervene and make sure that that happens.
Vice Chair Spence -Jones: No problem. That's it. That's all 1 have.
Chair Sanchez: Commissioner Regalado.
Commissioner Regalado: Thank you very much, Mr. Chairman. In the past days and weeks,
every time that we have read something or listened about the museums and MSE.A (Miami Sports
and Exhibition Authority) involvement and partnership with the museum and the City, we hear
that this is model to the Children's Museum in Watson Island, and in a way, those who say that
are half right because the Children's Museum was in the model to have something built that has
been a success, especially, for the residents of the City of Miami, but the problem that I keep
having with this agreement in terms of MSEA and the City and the County is that it's not like the
Children's Museum. Because I do have historical memory, and I do remember that this
Commission, before any MOU, before any talk, before anything was approved, written or
verbally, before anything was vote in this Commission, this Commission placed very strict
conditions on the museum, which has resulted in a tremendous benefit for the people of Miami.
And the first condition was that Miami residents pay half the price; whatever the price is, Miami
residents pay half the price. That is what the Children's Museum has done throughout this year,
and mind you, it has worked because more than 65 percent of the people that attend the
museums are City of Miami residents. Now .1 keep asking whether or not we could place the
same condition to start, and 1 keep getting the same answer, we cannot because it's funded by
GOB (General Obligation Bond) bonds and then the residents of the County will need to have
the same benefit. But my point is that the citizens of the City of Miami, the residents of the City
of Miami are paying three times for these museums, while the rest of the County is paying one
time. The residents of the City of Miami are giving the land free. The residents of the City of
Miami are paying ad valorem tax for the municipal bonds that are being given in terms of
several millions of dollars to the museums, and the residents of the City of Miami are paying ad
valorem tax on the County GOB bonds. So three times; we're giving the land -- the residents of
the City of Miami because we don't own the land, the residents do. We're giving the land, we're
paying ad valorem tax for the municipal bonds that were allocated to the museum. We are
paying ad valorem tax for the GOB County bond issue, and yet, we don't get a single benefit? To
me, that's wrong. And you can do whatever you want. You can say whatever you want to say;
that MOU has to be vague and start -- but I'!l tell you something. When the MOU about the
baseball stadium was approved, it was approved without any conditions, precise conditions.
After that was approved, everyone has already officially proclaimed that we have a baseball
stadium, and yet, we haven't even been able to resolve an issue that was voted 5/0 by this
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Commission, which is should the Miami police and the fire be the leading agencies in the
baseball park. And yet, we all say, officially, that we have a stadium. So my fear is that it's
going to be the sane. Residents of Miami will have no benefit, although we pay three times, and
the issues that you all placed officially as a resolution, as a mandate to the Manager, are not
included in the MOU. And 1 just think it's unfair to the people of Miami, and I still don't
understand why the residents ofwho are given the most expensive land south of
Manhattan -- because there is no other land in downtown waterfront -- and paying bonds,
municipal bonds, and paving County bonds cannot have a break in those museum. Thank you,
Mr. Chairman.
Chair Sanchez: You're welcome. Commissioner Gonzalez.
Commissioner Gonzalez: No. No comments.
Chair Sanchez: 1 have no discussion on the item. This is just an MOU. It's a step forward. The
final deal will come back to us, and we'll address all those concerns when it comes back to us.
So no further discussion on RE.3, which was a resolution. There was a first and a second.
We've discussed the item. No further discussion. All in favor, say "aye."
Vice Chair Spence -Jones: Aye.
Commissioner Sarnoff Aye.
Commissioner Gonzalez: Aye.
Chair Sanchez: Anyone in opposition, having the same right, say --
Commissioner Regalado: No.
Chair Sanchez: 4/1, Madam Clerk
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