HomeMy WebLinkAboutCC 2009-12-17 MinutesCity of Miami
City Hall
3500 Pan American Drive
Miami, FL 33133
www.miamigov.com
1
,r , e
lc
IYfi9HP CHAU :
... IR�YD
f}..V\
Meeting Minutes
Thursday, December 17, 2009
9:00 AM
SUPPLEMENTAL MEETING
CONTINUED AND ADJOURNED ON DECEMBER 22, 2009
City Hall Commission Chambers
City Commission
Tomas Regalado, Mayor
Marc David Sarnoff, Chairman
Frank Carollo, Vice -Chairman
Commissioner District One
Francis Suarez, Commissioner District Four
Commissioner District Five
Pedro G. Hernandez, City Manager
Julie O. Bru, City Attorney
Priscilla A. Thompson, City Clerk
City Commission
Meeting Minutes December 17, 2009
Present: Vice Chairman Carollo, Chair Sarnoff and Commissioner Suarez
On the 17th day ofDecember 2009, the City Commission of the City ofMiami, Florida, met at its
regular meeting place in City Hall, 3500 Pan American Drive, Miami, Florida, in regular
session. The meeting was called to order by Chair Marc David Sarnoff at 9: 05 a.m., recessed at
11: 08 a.m., reconvened at 11: 25 a.m., recessed at 1: 47 p.m., reconvened at 3: 36 p.m., recessed
at 6: 41 p.m., reconvened at 7: 08 p.m., and recessed the meeting at 7: 39 p.m. to be continued to
Tuesday, December, 22, 2009 at 9: 00 a.m.
ALSO PRESENT:
Julie O. Bru, City Attorney
Pedro G. Hernandez, City Manager
Priscilla A. Thompson, City Clerk
On the 22nd day ofDecember 2009, the City Commission of the City ofMiami, Florida,
continued its meeting from December 17, 2009 at its regular meeting place in City Hall, 3500
Pan American Drive, Miami, Florida, in regular session. The meeting was called to order by
Chair Marc David Sarnoff at 9:16 a.m., and adjourned at 10:08 a.m.
ALSO PRESENT:
Julie O. Bru, City Attorney
Pedro G. Hernandez, City Manager
Priscilla A. Thompson, City Clerk
APPROVING THE MINUTES OF THE FOLLOWING MEETING:
Motion by Vice Chairman Carollo, seconded by Commissioner Suarez, to APPROVED
PASSED by the following vote.
Votes: Ayes: 3 - Commissioner Carollo, Sarnoff and Suarez
END OF APPROVING MINUTES
RESOLUTIONS
SP.1 09-01420 RESOLUTION
Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION AUTHORIZING THE
Attorney DIRECTOR OF FINANCE TO PAY TO AND ON BEHALF OF MILADY
IRRIZARRY, SUBJECT TO THE CONDITIONS IMPOSED BY CHAPTER 440,
FLORIDA STATUTES, THE TOTAL SUM OF $35,000, IN FULL SETTLEMENT
OF ALL CLAIMS AND DATES OF ACCIDENT ALLEGED AGAINST THE CITY
OF MIAMI, ITS OFFICERS, AGENTS AND EMPLOYEES, WITHOUT
ADMISSION OF LIABILITY, EXCLUDING A CLAIM FOR FUTURE MEDICAL
BENEFITS, UPON EXECUTING A SETTLEMENT AGREEMENT AND
GENERAL RELEASE OF THE CITY OF MIAMI, ITS PRESENT AND FORMER
OFFICERS, AGENTS, AND EMPLOYEES, FROM ANY AND ALL CLAIMS
AND DEMANDS; ALLOCATING FUNDS FROM THE SELF-INSURANCE AND
INSURANCE TRUST FUND, INDEX CODE NO.
05002.301001.515000.0000.00000.
09-01420 Legislation.pdf
09-01420 Cover Memo.pdf
09-01420 Cover Memo 2.pdf
City ofMiami Page 2 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Motion by Chair Sarnoff, seconded by Commissioner Suarez, that this matter be ADOPTED
PASSED by the following vote.
Votes: Ayes: 3 - Commissioner Carollo, Sarnoff and Suarez
R-09-0587
Julie O. Bru (City Attorney): Mr. Chair, maybe we could take SP.1, which is the only thing that's
left over in the supplemental. This is a settlement of a workers' compensation claim that I --
Chair Sarnoff Let's do that. I agree.
Ms. Bru: Yeah. And by the way, I did send you some supplemental information that you had
asked for.
Chair Sarnoff I did.
Ms. Bru: Okay.
Chair Sarnoff And you know what? I'll make a motion to approve -- well, you want to put
something on the record?
Ms. Bru: Yeah. This is a resolution that seeks authorization for settlement of all claims against
the City of Miami by Milady Irrizarry, in the amount of $35, 000, excluding a claim for future
medical benefits regarding the heart bill.
Chair Sarnoff All right. I move SP.1.
Vice Chair Carollo: There is a motion by Chairman Sarnoff. Is there a second?
Commissioner Suarez: I'll second the motion.
Vice Chair Carollo: Second by Commissioner Suarez. Any discussion? Hearing no discussion,
all in favor, say "aye."
Chair Sarnoff Do we need to open up a public hearing on that? Madam Clerk? No? Okay.
Ms. Bru: No.
Chair Sarnoff Sorry.
Vice Chair Carollo: All in favor, say "aye."
The Commission (Collectively): Aye.
Vice Chair Carollo: Anyone in opposition has the same right, say "nay." Motion passes.
SP.2 09-01431 RESOLUTION
Department of
Public Facilities
A RESOLUTION OF THE MIAMI CITY COMMISSION AUTHORIZING AND
DIRECTING THE CITY MANAGER AND THE CITY ATTORNEY TO TAKE ALL
NECESSARY AND APPROPRIATE ACTIONS IN ORDER (1) TO REQUEST
THE ESCROWED FUNDS TO BE PAID PROMPTLY TO THE CITY OF MIAMI
("CITY") UNDER THE ESCROW AGREEMENT, DATED SEPTEMBER 27,
2005 ("ESCROW AGREEMENT") WITH FLAGSTONE ISLAND GARDENS,
LLC, A DELAWARE LIMITED LIABILITY COMPANY, AS SUCCESSOR BY
City of Miami Page 3 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
MERGER TO FLAGSTONE PROPERTIES LLC, AS DEVELOPER
(COLLECTIVELY, "FLAGSTONE") AND SHUTTS & BOWEN, LLP ("ESCROW
AGENT), (2) TO TERMINATE THE AGREEMENT TO ENTER INTO GROUND
LEASE, DATED JANUARY 1, 2003, INCLUDING ALL EXHIBITS AND
AGREEMENTS ATTACHED THERETO, AS SUBSEQUENTLY AMENDED
(COLLECTIVELY, THE "AGREEMENT TO ENTER") WITH FLAGSTONE FOR
THE MEGA YACHT MARINA AND MIXED USE WATERFRONT
DEVELOPMENT PROJECT ON WATSON ISLAND (THE "PROJECT"), (3) TO
TERMINATE AS NECESSARY ALL EASEMENTS GRANTED TO
FLAGSTONE AND ALL OTHER AGREEMENTS WITH FLAGSTONE, (4) TO
RETURN TO AND OBTAIN FOR THE CITY, ALL RIGHTS IN THE PROJECT,
THE PROPERTY, THE ESCROWED FUNDS, AND THE RELATED PERMITS,
GOVERNMENTAL APPROVALS, DOCUMENTS, INSTRUMENTS AND
AGREEMENTS, AND (5) TO PROTECT THE CITY'S INTERESTS AND
RIGHTS IN THE PROPERTY AND THE PROJECT.
09-01431 Legislation.pdf
09-01431 Summary Form.pdf
09-01431-Submittal-City Manager -Letter from Shutts and Bowen.pdf
09-1431-Submittal-Release requested by Chair Sarnoff.pdf
TABLED
Motion by Chair Sarnoff, seconded by Commissioner Suarez, that this matter be ADOPTED
WITH MODIFICATIONS PASSED by the following vote.
Votes: Ayes: 3 - Commissioner Carollo, Sarnoff and Suarez
Direction by Mayor Regalado to the Administration to provide an update for the City
Commission on the situation with Flagstone during the January 14, 2010 Miami City
Commission Meeting.
Direction by Chair Sarnoff to the City Attorney to provide documents associated with the City of
Miami's interest in the Flagstone property.
Chair Sarnoff But Mr. Mayor, my intent is to leave your schedule intact as best I can so to
bring all your issues I can up --
Mayor Tomas Regalado: Thank you.
Chair Sarnoff -- for you in the morning. I believe you brought a very important one. It's called
SP. 2 on the -- gentlemen, I am on the Mayor's supplement -- well, it's the supplemental agenda.
Mayor Regalado: Right.
Chair Sarnoff It is SP.2. It is a discussion -- a resolution that the Mayor is bringing in regards
to what we colloquially call Flagstone. Mr. Mayor, for SP.2, you are recognized for the record.
Mayor Regalado: Thank you, Mr. Chairman, Mr. Vice Chairman, Commissioner Suarez. I am
bringing a resolution that we discussed with the Administration and the City Attorney, and it
reads as follow. As you said, it's SP. 2, supplemental agenda number 2, and it says, "A resolution
of the Miami City Commission authorizing and directing the City Manager and the City Attorney
to take all necessary and appropriate actions in order, number one, to request escrow funds to
be paid promptly to the City ofMiami under the escrow agreement, dated September 27, 2005,
with Flagstone Island Gardens, a Delaware Limited Liability Company, as successor by merger
to Flagstone Properties T,T C (Limited Liability Company), as developer, and Shutts & Bowen; to
terminate the agreement to enter into ground lease, dated January 1, 2003, including all exhibits
City ofMiami Page 4 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
and agreements attached and amended with Flagstone, for the Mega Yacht Marina and
mixed -use waterfront development project on Watson Island; number three, to terminate as
necessary all easements granted to Flagstone and all other agreements with Flagstone; number
four, to return to and obtain for the City all rights in the project, the property, the escrow funds,
and the related permits; to protect the City's interest and rights in the property and the project.
Now let me tell you a little of history. When the voters ofMiami were asked to go to the polls
and approve this project, I, as a City Commissioner, went in all media outlets, community groups
and campaign in favor of this project. We enlisted the help of the fishermen that were in Watson
Island at that time, because the project had components offish markets and restaurants. And the
City was very, very proactive in pushing for the referendum. And we, as elected officials,
campaign for weeks, and the people ofMiami approved this project. When the project was
selected, I was in favor of the project. When the project team came to the City Commission
seeking extensions, I, as a City Commissioner, along with the other members of the Commission,
approved their extension. So I have been, I can tell you, one of the cheerleaders for this project,
andl wish that we could do this project. We all know about the global meltdown -- economic
meltdown, and we understood that. I think it was last year when we again approved an
extension and the issues that the developer wanted. However, for several month [sic] the
developer has not paid the rent, and that is an important issue because, number one, that is a
contract. And as we have to honor Miami 21 because it's a contract, we have to build the garage
in the Marlin [sic] Stadium because it's a contract. The people that enter into contracts with the
City must also honor their contracts. And we do understand the economic situation of the world
and of Florida. So it is important also to understand that when some tenants of the City of
Miami, be it the Marina or the Manuel Artime, are behind in their rents, they get a letter of
eviction. And if they don't pay, they are evicted, and that's that. That's the law. Get two
attorneys, one accountant, so that's the law. So today I offer you this resolution. However, I
received a letter that I shared with the Administration -- I think that you all got a copy -- that the
developer is willing to bring a cashier's check for the money that they owe to be current on their
rent. That is an important step, but it's not enough, because we have acted in good faith
granting all the extension that the Administration has requested and they have requested to the
Administration. We have acted in good faith whenever they say that they have a problem, but we
also have a problem. We have the most precious land in the City ofMiami, which is there
dormant. And, by the way, there is a pile of trash that -- you know about it -- it looks really bad
to everyone that drives by the McArthur Causeway, and we need to do something about that.
And that is important because Watson Island should not be a pile of trash. We have Jungle
Gardens on one side, the clubs. We have the Children's Museum, and we hope that we can get
this project going on. So I would propose to you that you have the decision today, whether you
want to do it now or you want to do it later in the day, but today we should take some kind of
action; number one, terminate the lease and all and any agreements and move on and try to find
either another project or some other use, or number two, accept their payment for them to be
current, but with a caveat. If -- andl understand, according to the letter, that they do want an
extension past February of next year. If you were to grant that extension, then they need to pay
in advance their monthly payments up till the extension so you guys don't have to worry about
when we are discussing other important issues that we need to and say, Mr. Chairman, Mr. Vice
Chairman, Commissioners, we have this problem of not being current by the developers. So we
have the alternative. Would they pay and be current and also sign a letter that they would make
a commitment to pay in advance? Can we take the advance payment from the escrow, the
$500, 000 that is in escrow, with no condition of them suing the City or anything and hope that
they can get the financing for the project? That is -- I think andl know that all of you are really,
really interested in the budget process. We do need to have predictability also in the budget, and
we can't depend whether or not we get paid each month by the developer. I understand, Mr.
Chairman, that the developer is here. And whatever you want to do is fine, but I just ask that you
all make a decision today. I would love to have the developer come up and say we're going to
pay, we're going to be current, and we're committed to, if you guys give us the extension, get our
payment schedule in order and pay up to the extension that they are seeking. So that is my
proposal, Mr. Chairman.
City ofMiami Page 5 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Chair Sarnoff Mr. Mayor, I actually have a proposal will put in front of the Commissioners,
but I'd like to get their discussion. I think we do owe it -- allow Flagstone to put on the record
whatever they'd like to put on the record. I think what we then would do, Mr. Mayor, with your
agreement, is table the discussion for about three hours; bring it back, see where we are, and
then I will tell you that I will call for a vote at 5 o'clock this afternoon and that vote will be, you
know, final. But they have the whole day in which to resolve issues. Madam City Attorney, I
hope you have a very fast pen and a very fast typist because the private sector would be able to
resolve this today, andl know you're going to beat the private sector today. So with that said,
I'm going to open up the public hearing, and I'm going to allow Flagstone to present.
Brian May: Mr. Chairman, Commissioners, Mayor, Brian May, with offices at 235 Catalonia
Avenue, in Coral Gables, representing Flagstone. First of all, I want to, you know, just
appreciate your consideration in allowing us to put certain things on the record. First thing
want to say on behalf ofMehmet Bayraktar, the principal of Flagstone, who's here today -- we
have Bruce Davidson here, who's a financial expert, who we want to put a couple of things on
the record there, and we also have Alex Tachmes and Kevin Cowan from Shuns & Bowen. The
first thingl want to say is Flagstone does not blame the Mayor or the Administration or -- at all
for bringing this item forward. We understand that it's, you know, your job as elected officials
and the job of the Administration to look out for the best interest of the City and the best interest
of your assets. That being said, we also understand that the City is frustrated with the project,
and we understand that frustration, because Flagstone shares some of that very frustration that
you share. However, I think it's important to note -- and the Mayor put it on the record, I think,
a little bit, but it's important to note that the frustration that's being caused is not caused not only
by Flagstone's lack of paying for the last four or five months, but it's really caused -- the
underlying cause is the global financial markets, which have basically imploded. It's not a
situation here where Flagstone has not performed. They've actually performed admirably. As
much as the City went out and promoted the election, the referendum way back in 2002,
Flagstone spent considerable dollars out of their pockets, over $500, 000, to pass that
referendum, and it was overwhelmingly approved by the voters by 68 percent. And much like
was the environment at that time trying to get the project going and off the ground, now more
than ever in these economic times, what is really required is that all parties come together and
try to work towards a resolution here that is beneficial for everybody, so we're here in that spirit,
and we're here to try to reach that conclusion. Again, this situation that Flagstone is in is no
different than any other developer across the country and across the globe. Thousands have
been victimized by the lack of financing and the lack of lending in the private sector, but
Flagstone, despite that, you know, has moved forward and put the project in a position where, in
fact, it is shovel -ready. They fought off two lawsuits challenging the project and did a very good
job at doing that. Unfortunately, that took about two years and actually led to the previous
extension that was granted by this Commission back some time ago. In addition to that, it
secured agreements with hotel operators. They actually closed on a financing back in December
of 2008, only to have it pulled from out underneath them late in -- early in 2009. So the question
here is, you know, where do we go from here? We put an offer on the table to the City. We are -
- the -- Flagstone is agreeing to pay the money in arrears that it owes the City, but the reality of
the situation is that Flagstone needs an extension of time in order to begin construction on the
project itself and, specifically, the Marina, which would be the first item to be developed on the
project. It is really in these economic times the only component of the project that has the ability
at this point to be financed. I -- Bruce Davidson is here from WestLB, and he can speak to that
in just a moment. But the financial markets are such that, you know, hospitality developments
and retail developments and restaurant -type developments and those type amenities are not
really financeable at this point in time. They haven't been financeable going all the way back
into mid 2008. In fact, the loan that Flagstone did close on in December of 2008 was the only
construction loan that was closed on by Bank of America in the fourth quarter of 2008, the only
one. And despite the fact that it was closed, unfortunately it wasn't funded That's neither
Flagstone's fault nor the City's fault. It's just a matter of the situation of where we are. So with
City of Miami Page 6 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
that, I'd like to have Bruce Davidson come up and just give you a little bit of a sense of where the
financial markets have been, what the state of them are at the moment, especially with regard to
the hospitality components and also the prospects going forward. And then I'll just speak a little
bit about the extension that we desire. Thank you.
Chair Sarnoff Thank you, Mr. May. Mr. Davidson.
Bruce Davidson: Mr. Chairman, Commissioners, thank you. I appreciate the time to speak in
front of you.
Chair Sarnoff All right, you need to state your name and your address for the record.
Mr. Davidson: Sure. Bruce Davidson. I reside at 28 Kennedy Drive in Clark, New Jersey. I am
the former head -- global head of Hospitality Finance for WestLB, a large German banking
institution. I had left the bank in February of this year and currently an advisor and consultant
to former clients of mine in the hospitality sector. Just real briefly, I'll give you an overview on
what my focus was on WestLB, and we can speak briefly about the financial markets. At WestLB
we were a major player in the global hospitality finance business that focused primarily on
development financing, both here in the U.S and selected regions throughout Europe and Asia. I
- - over the course of my career there, we did about $3 billion of construction financings. And as
of late 2008, WestLB pulled out of the hospitality business because it became a noncore asset for
the bank in its global restructure. That being said, the financial markets, as we all know, have
gone through a convergence of a perfect storm with banks investing in special investment
vehicles, having workout loans on their books, and many legacy assets that have struggled to get
done have impacted raising additional equity construction costs to increase dramatically; has
put even the most premier developers and investors at the brink of many, many failures of
projects. That being said, it's -- the hospitality industry has been one of the most difficult asset
classes inside real estate, even when you go back to the late '80s, early '90s when it was a class
of assets that many people did not look to do. As the markets continued to rise, there were a lot
of banks that jumped into the hospitality market, because they realized that there was an ability
to one, make some fee and spread inside the bank, and you had a handful of specialty lenders as
WestLB who focused in the hospitality world. With the meltdown of the credit markets, you have
- - a lot of institutions have now pulled back, have left the US (United States), as WestLB has
pulled out of the market as well in hospitality. So you have lost some of the major players in the
world, in my opinion, who focused on the hospitality world. Construction lending right now is
an extremely difficult process. It is, in my opinion, a very unlikely loan to place. Anything from
$15 million and below have had some fraction, very little. Anything 15 million and above has
been virtually impossible. And then the large-scale projects, it's -- it has not happened. On a
going forward basis where I have focused my views, the projects that will get done over time will
happen in two ways. The paradigm of underwriting by both investment banks and commercial
banks will dramatically change. You'll have more conservative underwriting, straightforward
plain vanilla lending again versus what has happened over the last five years. The projects that
are in the pipeline right now that will eventually get done will have top -tier sponsorship,
experienced developers, well-known equity investors. In my opinion, those are the deals that will
get done. My involvement in Island Gardens was from the Shangri-la component of the project.
While I was at WestLB, I was a big component -- supporter of it inside the bank based on the
focus, based on the sponsors, and based on my view of what believed of what that project could
bring to the City ofMiami. As far as the projects -- as far as prospects for future lending, I wish
I could sit here and tell you when that will -- when lending will open up again. I don't have a
crystal ball. I could tell you that a lot of institutions are working through their issues. There's a
lot of out -of -work out going on right now, but I do believe that there is some factors that are
currently happening right now that are positives in the right direction as we go forward
Chair Sarnoff Thank you. Any Commissioner would like to have a colloquy of Mr. Davidson?
Mr. -- Commissioner Suarez, you're recognized.
City ofMiami Page 7 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Commissioner Suarez: Thank you, Chairman. I have a question -- a couple of questions, and
this may be -- Mr. May, if you want to jump in on this question, you're welcomed to. I
understand -- my understanding of this project is that because of the financial condition, it
actually become less expensive. Because of the reduction in construction, cost has actually
become about half as expensive as it was originally envisioned; is that correct?
Mr. Davidson: That is correct.
Commissioner Suarez: Okay. What part of the project has to do with -- 'cause it seem like what
you're saying now is the most viable aspect of the project is the marina or the -- it's a mega yacht
marina or something to that effect.
Mayor Regalado: The mega yacht marina.
Commissioner Suarez: How much of the project is that -- you know, what's the dollar amount of
that mega yacht marina? How much of the project is that?
Mr. May: The estimate to actually take the marina out of the ground, get it up and running is
about $35 million. That's what's been put on the table in terms of -- and what's been looked at in
terms of financing it.
Commissioner Suarez: And in your opinion, is that something that can be obtained within a
reasonable amount of time? When I say reasonable, I mean three months, six months, you know,
a year.
Mr. Davidson: It's a very good question. My expertise is not in marina financing. I'm a
hospitality --
Commissioner Suarez: Okay.
Mr. Davidson: -- focused lender --
Commissioner Suarez: Okay.
Mr. Davidson: -- and investment banker. IfI was to offer opinion just knowing the banking
markets, because I do have close to 20 years of capital markets in banking background --
Commissioner Suarez: Right.
Mr. Davidson: -- I do believe that the ability to have the marina financed is viable. I cannot
give you an estimated time frame on when that will be. I just -- I -- we don't have a crystal ball
for that.
Commissioner Suarez: Okay. No. Okay. I guess another question that have is I -- ifI -- I've
seen the project in its, you know, kind of inception phase or whatever, in its planned phase, or
the way it looks. There's also a convention center component to this project. Is that not correct?
Is there some convention center space here?
Mr. May: There is -- yes, there is a meeting space to it.
Commissioner Suarez: Meeting space?
Mr. May: Absolutely, yes.
City of Miami Page 8 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Commissioner Suarez: What's the square footage? Do you know?
Mr. May: Fifteen thousand square feet.
Commissioner Suarez: Fifteen thousand square feet. Okay. Where I'm going with all this is,
you know, I'm not so sure that Miami needs more hotels at this particular moment. You know, I'd
love to hear your perspective, Chairman, and your perspective, Mr. Mayor, on that. I think -- it
seems to me that what you're saying as well is, you know, there are some maybe aspects of this
project that are more viable than others. I'm not sure. But I think the overriding -- I don't know
if you want me to just address the questions to him that I have and then we can --
Chair Sarnoff Well, my --
Commissioner Suarez: -- bring it back for some kind of a general --
Chair Sarnoff -- you know, my -- I think what we'll do is we'll bring it back to the Commission.
I just -- as each witness comes up, and I'm --
Commissioner Suarez: Okay.
Chair Sarnoff -- going to assume, Mr. Davidson, you're here as an expert witness?
Mr. Davidson: That is correct.
Commissioner Suarez: Well --
Chair Sarnoff Are you --?
Commissioner Suarez: -- I -- no more questions on this expert witness.
Chair Sarnoff Gotcha. All right. Now Commissioner Carollo, any colloquy?
Vice Chair Carollo: Yeah. When you're talking about the amount, 35 million and so forth, it's
my understanding you're just speaking about the marina.
Mr. Davidson: No, sir. I'm speak -- I'm representing that I'm speaking about the component that
I was involved with as far as the hotel side of it. That is --
Vice Chair Carollo: So you're speak --
Mr. Davidson: -- my -- I'm -- my expertise. Sorry.
Mr. May: The 35 million is for the marina component.
Vice Chair Carollo: That's what thought.
Mr. May: The estimated cost for the entire project is in the range of $450 million in today's
construction cost dollars.
Vice Chair Carollo: That's what thought.
Mr. May: And the previous cost estimate was in excess of $600 million, but due to the market
and the downward trend on construction costs, we were able to build -- the full component today
would be about $450 million.
City of Miami Page 9 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Vice Chair Carollo: So 450 instead of 600, 000, more or less. However, when you're coming
before us, are you speaking about just building the marina? Because it's my understanding
that's the route that you all were going to take, just building the marina and not necessarily
funding for the hotels and so forth. It seems to me that -- and again, just correct me if I'm wrong,
but it seems to me you've been having difficulties obtaining funding just for the marina, let -- not
even for -- you know, considering the hotels and so forth.
Mr. May: We have had difficulty funding anything, okay -- financing anything at this point.
There's -- that's no -- that's absolutely the case. There's no getting around that. It's just -- the
terms that, you know, have constantly been pushed upon the project both from a macro financing
perspective and also just related to the marina. You know, they're just very stringent in this
environment, in this global economic crisis. I mean, it is -- a good analogy would be anybody
trying to go get a mortgage on a house today. It's just a lot different than it was a year and a
half or two years ago.
Vice Chair Carollo: No. I --
Alex Tachmes: Mr. Commissioner, ifI could just add. Alex Tachmes, for the record, from Shuns
& Bowen. Just to refresh the memory of those Commissioners who may not have been here
before. I know Commissioner -- Mr. Chairman Sarnoff and the Mayor were obviously part of the
Commission. But in April of last year, the Commission considered a fourth amendment to the
agreement entered into the ground lease on this project, and they're already contemplating that
the notion that the economy and the lack of funding may require a development of this project by
phases. And the marina was in fact supposed to be the initial phase because it -- there was a
perception that that might be easier to fund or finance. So my point is that the direction in which
you're going and the questions is basically the same type of thought process that the prior
Commission was taking into account viewing the state of the economy, the lending markets, and
deciding to phase in this multifaceted project one step at a time based on what was easiest to
finance loaded at the front.
Vice Chair Carollo: And the reason why I'm asking some of these questions, which, by the way, I
have lots of issues that, you know, at the appropriate times we'll address. The reason why I'm
asking this is going back to, you know, the past, as far as building it in phases. There has to be
some concern as far as, let's say, (UNINTELLIGIBLE) extended. Let's say you do get the finance
for the marina. Now do we stop there? And then what happens once the marina's there and --?
You know, we're assuming the marina's there. What happens to the hotels? What happens to all,
you know, the rest of the project, which I think is substantially more than the actual marina? So
it's a big concern thatl have, andl think for obvious reasons, not to mention that, Mr. Davidson
Mr. Davidson: Yes, sir.
Vice Chair Carollo: -- couldn't even give us any type of assurance as far as obtaining finance or
when the possibility would that be. So that doesn't leave me with a warm and cozy feeling.
Mr. Davidson: Well, Mr. Vice Chairman -- andl appreciate your comments andl do want to
address that. It's very difficult for me to sit here and try to pin down an actual time frame. I just
-- that I just don't know. But as we can all agree, real estate is a very cyclical market. We sit in
an environment today that is just unprecedented. We went through a time in the late '80s, early
'90s that had similar factors. With everything that has happened inside the banking world, there
are issues that are being resolved as we speak today. The banking world will come back.
Construction, financing will come back. It's a matter of time of when the banks, one, get their
issues worked out, and two, feel comfortable about when to start lending again. As I said
earlier, a lot of that underwriting is going to change to conservative structures. There'll be a
reintroduction of certain elements to transactions that were taken off the tables as the markets
City of Miami Page 10 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
continue to get heated, again, over the last -- call it the last five years. So again, to go back to
your question, I can't give you -- I'm not an expert and have a crystal ball to give you a time
frame on when that would happen, but can tell you from a personal perspective, seeing what
have seen over the course of my career in the banking world, that I am confident that that
financing market will come back for the right projects and the right sponsors.
Vice Chair Carollo: Andl have no doubt that they will, but in the meantime, what happens? We
have beautiful city property there that, as of right now, we're not receiving anything in return. I
mean, yes, we have a lease. However, it's in default. I know that you've offered to make the
payments, which makes me wonder why hasn't the payments been made? All of a sudden you got
allow of cash, $500, 000, that's owed to the City. I think, out of good faith, you should pay that
money and not use it as leverage for an extension. I think, out of good faith, which I believe you
are coming in good faith, you should actually pay that money to the City 'cause it's owed to the
City. So I'm -- right away I wonder why hasn't it been paid? 'Cause, yes, I do agree that the
banking market will come back. However, in the meantime, what happens to the City? We need
funds.
Mr. May: Commissioner -- and that's -- you know, that's a valid point. And you know, that's
your job, Mr. Vice Chairman, and we understand that you take that seriously, and it's not
something that Flagstone takes lightly. But the reality of the situation is that the project and the
developer is under severe pressure, due to the financial markets. If he had cashflow coming off
of the project to pay the City, he would be doing it all day long. The reality of the situation is
that, you know, the idea of termination is not something that's new. It's been out there for a
couple months. And when that notion was introduced, knowing that dollars are in escrow and
knowing -- clearly knowing that a February 11 deadline was not going to be met, the more that
we ticked through time, right, we knew that we weren't going to be able to hit a February
out -of -the -ground deadline for starting the marina. Then the notion of paying fully the rent and
also having the threat of termination basically led Mr. Bayraktar to stop paying. In addition to
sort of those circumstances, okay, the situation is clear that there's just not -- everybody in the
world as a developer is going through short-term liquidity issues, and that is the case here. And
you know, one thingl would like to just put on the table to keep in mind. The actual strength of
this project for the City is that it is contemplated at this point, as it was back at the previous
extension, as a phase development. The one thing that is an upside for the City is that if an
extension is granted and we can come to some terms about how to structure that extension, that
the prospect of the developer breaking ground on the marina triggers construction rent to the
City of $83, 000 a year. And if the marina's actually built, the City now has a performing asset --
andl would submit to you that a termination will only set back the ability of the City to make that
asset perform, because any change to the project itself okay, has to go back out to a referendum.
Sny change or a master planning change would require, you know, a whole new RFP (Request
for Proposals) or competitive process potentially. And so the best prospects for getting the asset
to perform is to try to take some pressure off of the developer and try to get the project in
situation where we can actually get the marina built and have the assets start performing for the
City not just in short-term consideration of use payments, but in terms of actually having a -- an
asset that's going to cashflow to the City for a very long period of time. The one thing that is
very clear about the project is that demand for a mega yacht marina has not waned globally.
There is a lack of marina space. There are private developers all over this city and all over
South Florida who are thinking about how can they put together a mega yacht marina, because
Miami is a shining star globally, and those type of people who have those type of assets, being
mega yachts, would love to come here if there's a real facility to service them. So I would --
Chair Sarnoff Mr. May --
Mr. Davidson: -- just ask you to keep that in mind.
Mayor Regalado: Mr. Chairman.
City of Miami Page 11 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Chair Sarnoff -- I'm sorry -- if you don't mind. Mr. Mayor, could I ask a question of Mr. May?
What was the reason --? I heard -- you said the reason for not paying. What was the reason
again, 'cause I want to write it down?
Mr. May: I know. I need to say this carefully.
Chair Sarnoff No, no, no. Say it like you said it before.
Mr. May: I did. I said it carefully before. Look, it's no secret. We're not here to -- we're here to
try to be transparent and -- you know, it's actually good that this is taking place. Andl commend
the Mayor; it's taking place on the public record. There's an escrow of funds, the $500, 000 --
Chair Sarnoff Right.
Mr. May: -- that is sitting there. The City, in the event of a default, has certain rights to those
funds.
Chair Sarnoff Right.
Mr. May: As the deadline was approaching --
Chair Sarnoff Right.
Mr. May: -- okay, for a February deadline to break ground on the marina --
Chair Sarnoff Right.
Mr. May: -- and therefore a very certain default coming into play.
Chair Sarnoff Right.
Mr. May: With the short-term liquidity issues that the developer has, he didn't think it was a
smart business decision to continue to pay the City, knowing that his project was certainly in
jeopardy in terms of the deadline that was forthcoming, so --
Chair Sarnoff Okay.
Mr. May: -- from the standpoint --
Chair Sarnoff So let me ask a question then. I know you're trying to do this carefully. And I'm
just trying to get on the record why you didn't pay. So there was no nonperformance on any City
personnel or the City itself?
Mr. May: We haven't alleged that, no.
Chair Sarnoff No. My question to you, there was no nonperformance by the City, City
personnel that caused your client not to pay?
Mr. May: Not that I know of.
Chair Sarnoff Okay. And so you cannot allege any fault on behalf of the City for the failure of
him to meet his contractual obligations?
Mehmet Bayraktar: Good morning.
City of Miami Page 12 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Chair Sarnoff Good morning.
Mr. Bayraktar: Most of you already know me. Mehmet Bayraktar. I've been addressing on and
out of the City Hall since 2001, March, because I was invited by the City back in 2001,
February. I was hence selected by the City staff and some of the people here and who are not
here anymore. I was invited -- one of the handsful [sic] of less than -- at the time, I've been told
-- 10 developers outside of this country to come and propose and respond to RFP, so that's how I
am here, back in 2001, March 6, 2001, when we had the site visit with other developers who
were invited. And since then and after especially becoming successful to won [sic] the RFP as
myself and my team, I have decided to move to Miami, and since 2002, I live here full time, andl
have not done any other development. I didn't do anything else. I didn't do any other investment
personally since 2001. And I've been working trying to get this beautiful project done and --
because I know Miami since 1979. That was my first visit, when I stayed with my parents in
Fontainebleau Hotel, which came back. Andl still have a picture, interestingly enough, with my
sisters --
Chair Sarnoff Sir, I understand you want to introduce yourself --
Mr. Bayraktar: No, no. I'm just --
Chair Sarnoff -- to the new Commissioners. My direct question -- let me -- don't interrupt the
Chair. You're always going to be better suited not. Let me get my question out. My question to
your agent, Mr. May, was whether the City was in any kind of breach of contract. My question
to you, as the principal, is the City in breach of contract?
Mr. Bayraktar: City, in principle, was not in the breach of the contract. They have been very
helpful from the first day to date, andl appreciate and thank you for that. The reason I didn't
pay is I have already out of pocket and committed for this project, for Island Gardens, $64
million.
Chair Sarnoff Are you aware of any contractual right that you have that gives you the right not
to make the payments due to the City?
Mr. Bayraktar: No. IfI may wrap up. Because I paid 64 million, my commitment, per our
agreement, is $22.4 million, not more, as the developer. I have overextended already 40 million
more in the belief that financial markets, which we closed our loan, which we closed our equity,
in the present with the perception sometimes for some people who know -- who don't know the
details that this project has not been financed, refinance hundred percent with the banks and
with equity. Because the banks couldn't do the syndication, I kept spending the money out of
pocket, but was out in the open when the institutional investors, which was -- happens to be the
world's -- one of the world's biggest investors in institutional equity -- they basically -- they
didn't refund me my payments. If they did, I would have been more than happy to catch up with
the payments. That's why --
Chair Sarnoff Are you aware --
Mr. Bayraktar: -- I couldn't pay.
Chair Sarnoff -- of any contractual provision with the City that gives you justification for not
making the payments?
Mr. Bayraktar: I am not legal expert, so --
Chair Sarnoff Okay.
City of Miami Page 13 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Mr. Bayraktar: -- I'm saying, you know, I'm a developer. I know how much I spent, how much --
what I had to spend legally, per the contract. The rest is legal matter that maybe Alex can
answer.
Chair Sarnoff Thank you. I'm going to recognize the Mayor.
Mayor Regalado: Thank you, Mr. Chairman.
Chair Sarnoff I apologize for taking so long.
Mayor Regalado: No, no, no, no. I just want to make a point and -- Brian mention something,
but I just want to make it public. I did not meet with them in private, nor I think you didn't too,
because I wanted this discussion in public, all details, everything in public, because I think that
the people ofMiami deserve to know what is going on with that project that they voted for. Andl
just want to make that public. The other thing that I want to say is that as a past Commissioner,
I do understand the phases. We are not here to put pressure on the developer to say you got to
build the hotel like in three month or you got to do the restaurants in five month. We understand
that the most viable project is the mega marina, and I'm sure that the Commission also
understand that. And this is what we are talking about. However, what we -- our position is --
andl thank Mr. May for, you know, bringing the problems that the City will have if we were to
terminate the contract. That's -- will be our problem, not yours. But it's important that we
finalize this issue today, if possible. If you guys want to defer, that's fine by me. But I think it's
important that maybe in the afternoon, like you said, by 5, 6, whatever, we finalize this issue.
And we understand, according to the letter, they're willing to bring a cashier's check to pay what
they owe the City and be current. However, they know -- and Mr. May mentioned it -- that there
is a half a million dollar in escrow that the City legally can access if contract was terminated.
So my proposal again is would you consider an extension -- andl -- nobody knows. The
Manager doesn't know how long of an extension they want. You don't know. You don't know.
You don't know. I don't know. We don't know. So hopefully, they'll say. But we need to have
assurances that at least you're trying to move the mega marina. And this is the whole discussion
here, the mega marina in Watson Island, and we understand all the other situations that you
have in the markets and all that. But in the case that you seek from the Commission an extension
-- and we don't know how much that will be or how long -- we need to know from you that the
City could draw if you don't -- are able to pay your monthly rent out of the escrow so we make
sure that we are -- we have a working relationship with you. And like you said, it's a good deal
for you. It may be a good deal for the City because you have the permits. You are shovel -ready.
But we also need to know that we have a viable project in the City? And so I just want to hear,
through the Chairman, if Mr. May will say that you do have a cashier's check to be current and
you would consider that if payments are not made, if the Commission where to grant your
extension -- I don't know if they do -- then if there is a problem with the rent, we could draw the
rent from the escrow and -- I think it's very simple. I'm not sure if this is a difficult legal issue,
but I just wanted to hear from you.
Chair Sarnoff Mr. Mayor, why don't -- if you wouldn't mind, I'd like to put some things on the
record --
Mayor Regalado: Absolutely.
Chair Sarnoff -- and then maybe --
Mayor Regalado: I think that you just did.
Chair Sarnoff I did. I think got some things on the record, but I'd like to say some things
'cause I know you andl sat over here to our right as many, many extensions were asked for, and
City ofMiami Page 14 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
as you supported me in demanding and procuring a higher rent because we were trying to
motivate these folks. And let me just say this to you, Mr. Mays -- May, excuse me. While the
$500, 000 is a nice gesture, in reality Flagstone Island Gardens owes the City of Miami four
hundred and fifteen thousand present dollars, which is $83, 000 per month, times the four
months, which you client just admitted there is no justification for him not paying. On January
1, 2010 they will owe us in excess of $500, 000. As you're aware -- you did a good enough job in
negotiating with the City ofMiami -- that there are no late fees in the written agreement; our
fault, and we didn't do a good job in representing the citizens. Liens had been filed upon the
property, which commenced January 22, 2009, in the approximate amount of two point --
$2,137,149. These liens include Bicon, Inc., PHA Lighting Design, Sieger Suarez Architectural,
Arteman & Associates, Coastal Systems, Langan Engineers, and these liens have not been
discharged, have not been bonded out by Flagstone, despite repeated notices and demands by
the City in accordance with the agreement to enter into this contract. Flagstone, as you know,
Mr. May, had years to get financing and build its projects. And as everyone is aware, since
2001, hundreds of other projects in the City ofMiami did procure their finance during the same
period. I don't believe, for one moment, that the sole reason for the delays is the global
economic crisis. I also believe Flagstone had certain credibility issues. Flagstone promised
ING as an equity partner. I know Commissioner Regalado was sitting next to me when we heard
the fortuitous news that ING was absolutely unqualifiedly committed, but obviously, ING was not
committed. Flagstone represented letters at a previous Commission meeting describing
proposed debt financing. They said the proposed debt financing was a sure thing, but obviously,
it wasn't the sure thing that they told this Commission. At one time -- at one point in the
Commission meeting, Flagstone told the City attorneys that there was a closing statement; yet,
Flagstone refused to let any City staff keep a copy of the document. As a lawyer, I can tell you
the frustration the City Attorney must have had because you could look at the document, but you
can't touch the document. And we did not get a copy of that document. And the City Attorney
and the staff were simply not allowed to do the due diligence that they are fiduciarily [sic]
obligated to do on behalf of the citizens, taxpayers of the City ofMiami. This was a huge red
flag at that time. We admonished you. Commissioner, at that time, Regalado admonished you
for not allowing us to have a copy of the closing statement, but the three other Commissioners
prevailed upon us in saying we were just being overly cautious. Flagstone had discussions with
many lenders and none have stepped up, at least none that you've ever provided proof to us.
Now you bring to us a letter, and you use the word ADIA as a possible equity partner. I assume
those letters referred to Abu Dhabi Investment Authority. I cannot be positive because ADIA is
not spelled out. And as you've told us before, you spent hours drafting that letter; I suspect you
were very careful in not doing that. But if, in fact, it is Abu Dhabi Investment Authority, ADIA is
well-known for its secrecy and further, ADIA has been in serious financial reversals in recent
years. We have no correspondence from ADIA, nor do we have any contact information for
ADIA. Are these more promises? Flagstone appears to have no agreements with any hotel
companies. It has no leases with any potential retail tenants. The City has a meager $500, 000
in escrow, andl think that's at Shuns & Bowen. Is it time to pull the plug? I don't know. I could
tell you what this Commissioner would recommend. And this is what I would recommend, and
you all have time to think about this. You immediately provide to us $500, 000 in a cash wire
transfer or certified check made payable for your past due obligation rent for which your own
principal admitted there's no justification for him having not paid for the August, September,
October, November, December, and January 2010 rent. Flagstone immediately pays one million
in cash as prepayment for months February 2010 through January 2011. The City, I think, then
should consider extending its agreement until January 31, 2010 provided Flagstone prepays the
$1 million. Flagstone immediately place two million in escrow or settle all liens with the liens
placed upon the property. You choose how to do that, but you have got to demonstrate your
ability to extinguish the liens. Flagstone agrees to increase its security deposit from $500, 000,
which it presently has existing, to $1.5 million to cover possible future liens against the property.
Flagstone must immediately sign an affidavit, which they have acknowledged publicly before this
Commission today, stating that the City ofMiami is not responsible for any delays or difficulties
encountered in the project. These are just my thoughts. I've been through this project. I believe
City ofMiami Page 15 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
actually in the water side part of this project. I thinkMehmet can pull this off. But look at the
red flags in this file. You asked me to consider all the good things he's done. I can do that. But
I have to consider what the record evidence shows as well. The record evidence clearly shows
even his own lawyer, Lillian Ser, has a judgment against him for $674, 031.78. He owes a
judgment to Beach Tower T,T C in the amount of $236, 203. He owes Miller Legg & Associates
$3,340. Presently, today, Flagstone owes $913,575 in judgments. That is the record evidence,
Mr. May. That is, in fact, the full picture, not just what he's telling Santa Claus this Christmas
season. I come back to the Commission.
Mayor Regalado: HI may, Mr. Chairman.
Chair Sarnoff Mr. Mayor, you're recognized for the record.
Mayor Regalado: Thank you. I think it's important that we make a decision today. We cannot
let this issue come back in 30 days or 60 days because although -- if we were to terminate today,
we will have then much work to do to decide what is best for the area, what should we do. And
we may not have in the near future some rent in terms of City budget, but it's important that the
people ofMiami know exactly why are we doing this and what is going to happen with that land.
We need to have predictability. We need to understand if this project is ever going to get off the
ground. And what the Chairman has put on the record is a lot of information, which cast a
doubt about the ability of the developer. However, we're still willing -- I'm sure he and you -- to
consider an extension, but we need to have the City being paid and we need to understand that
the City is in the right course in terms of the property that you all want to develop. So I thank
you. I think it's important that the City is publicly not at fault in this situation. We understand
the markets. We understand the global economic meltdown, but we need to move on. We need
to have this thing resolved today. Andl think that you offer a good argument. When you said
that you might table this and have the developer discuss amongst themselves and then come back
to us with --
Chair Sarnoff Mr. Mayor, I think it's my intention to ask them to come back at 2 o'clock and
that will afford them some more time, if they want to come back later in the very end of the
session of this Commission meeting.
Commissioner Suarez: Mr. Chairman, can I be recognized for a second?
Chair Sarnoff Commissioner Suarez, you're recognized.
Commissioner Suarez: I very much like your proposal in terms of you know, having this
particular developer do some objective things that we can hang our hat on before getting any
kind of additional consideration from the City. I would like to add to -- kind of parch to your
negotiated offer. One would be I think -- and I'm not sure if this is a part of what your offer is --
would be that if -- well, first, that there would be no further extensions, if that can be made part
of the agreement, andl think that if the developer fails in any kind of a further extension that the
City would grant them under the conditions as you specified, that they would agree to vacate the
property within 30 days and would waive their right to litigate, you know, either any kind of
deposit issues or any kind of eviction issues regarding -- because I think -- what I'm getting here
is that we're -- we would be bending over backwards under these circumstances, you know.
When we talk about numbers -- and this is all about the numbers -- you know, obviously
everyone here knows -- it's no secret that the City is in dire economic -- is in a dire economic
situation. And just one phase of the project is a $35 million construction and we're talking about
$83, 000, you know, monthly rental payments or a million dollar a yearly rental payments, and I
think Commissioner Carollo eloquently put it that, you know, we're not here to be kind of -- to
use rental payments to influence us in any way, shape, or form. What was the word that --?
Vice Chair Carollo: Leverage.
City ofMiami Page 16 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Commissioner Suarez: -- right, to be leveraged against -- something that we have a clear right
to, to be used as leverage for future consideration. So I just want to put on the record that I
agree with the Chairman's proposal. Obviously, this is the first time I hear it, so I don't know the
particular numbers themselves, whether those are firm or whether those are something that the
Chairman would be willing to -- this Commission would be willing and the Mayor would be
willing to negotiate. Not sure what his position on that is. But I think the two other provisos are
necessary, that they vacate the property within 30 days if they do not perform with whatever new
extension is granted, if there would be one, and that there are no further extensions. I think
enough is enough. I think with all -- when you throw all this into the mix, you know -- I think one
of the things that we need to do for our city -- one thing -- one benefit that the City can derive
from this is avoidance of a potential litigated issues, avoidance of this thing being dragged out
and having a nonperforming asset, which is an invaluable asset to the City ofMiami. So I think
if that -- those components can be incorporated into the settlement agreement, that would help
me tremendously.
Chair Sarnoff I think the best thing at this point is just to table the discussion till 2 o'clock.
That gives you time to react. We'll bring it back. If you need further time, we'll table it until --
for about until 6 o'clock, or if you'd like to make a comment? I mean, it seems to me you have
some things to consider. There's staff over there to speak with. I think Commissioner Suarez is
suggesting that there may be some room and maybe there is some room. I certainly always
would listen to our City Manager as to what his recommendations are. I certainly would listen
to the Mayor as to what his recommendations are. But I think tabling this and doing this in the
sunshine, going over to the Commission -- to the Administration side, coming back in the
sunshine, if you need to go back one more time, and then bringing it back one last time in the
sunshine would facilitate this Commission's well thought out decision, so what I'm going to do is
table this until 2 o'clock-- excuse me?
Mr. May: Can we make one comment with regard to the liens that you raised --
Chair Sarnoff Sure.
Mr. May: -- if that's possible? I'd to have Alex Tachmes from Shuns just speak to the lien issue,
Mr. Chairman, and then we'll close.
Mr. Tachmes: Mr. Chairman, with regard to the issue of the liens, we had done a little bit of an
analysis about that. I assume that either all or most of these liens had been filed under Chapter
713, which is the mechanics lien statute of the Florida Statute. That statute in the definition
section specifically excludes City property as the real property that is subject to liens, so while
we need to look at this issue a bit further, I believe that we would probably be able to go into
court -- or the City could -- and have the liens extinguished as not proper liens against City
property.
Chair Sarnoff Yeah. I understand that they may or may not be proper, but the underlying debt
or the underlying commitment or the underlying duty to pay those debts is certainly, I think,
something this Commission should consider. Whether you're allowed to lien something or not
doesn't satisfy at least the Chairman. Whether it satisfies the Vice Chair or Commissioner
Suarez, I don't know, and we haven't discussed it. The fact is that he's not paying his bills.
Mr. Tachmes: Yeah. And I understand the point. And you can understand that the -- I'm sure
these consultants were supposed to be paid out of the construction loan, which, of course, has
not come. But do want to say --I know it give you concern as a city. Well, we own the
property and we don't like having liens on our property. I believe pretty strongly that those liens
should be able to be removed and not encumber that city land.
City ofMiami Page 17 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Chair Sarnoff Very good. So we're going to table this for right now.
Mayor Regalado: Mr. Chairman, one final.
Chair Sarnoff Yeah. I'm sorry, Mr. --
Mayor Regalado: If you can tell us, Mr. May, what is the time range that you're seeking for the
extension so we know and the members of the Commission understand during these hours that
you will be meeting with your folks?
Mr. May: Mr. Mayor, there are really -- there are two extensions that really need to take place.
And the first extension is with regard to actually beginning construction on the marina, andl
would say, without having a chance to caucus with Mr. Bayraktar, that the Chairman's proposal
of a year is in the range, okay. The second extension that, just by logical conclusion would have
to take place, is an extension of the outside date to actually complete the entire project because
2012 again, in this environment, without any financing actually secured for that portion of the
project, putting too much pressure and just makes, you know, default fait accompli if it stays in
place, so that is the answer to the question.
Chair Sarnoff All right. Just --
Mayor Regalado: I mean, that's --
Chair Sarnoff Mr. Mayor, I'm going to move this along in this agenda.
Mayor Regalado: Absolutely.
Chair Sarnoff We still have more things to do for you.
Mayor Regalado: Shouldl bring another controversial item or --?
Chair Sarnoff No. I want to vote on your first controversial item. I want to get that out of the
way. I want to go back to -- we're going to finish you up, Mr. Mayor, I promise. And by the way,
this is it. You're not going to get four issues anymore. I mean, I don't want to do "in
conclusion."
Mayor Regalado: In conclusion.
Chair Sarnoff All right. PZ. 1, gentlemen.
Roy Hardemon: Mr. Chair, excuse me.
Chair Sarnoff Yes, sir.
Mr. Hardemon: I have to go back to work, andl was standing here for quite a long time to
respond on the public hearing portion, since you open up to the public. And was wondering
could put my comments on the record before I have to leave.
Chair Sarnoff I'll give you two minutes, sir, to put your comments on the record.
Mr. Hardemon: Andl appreciate it, Mr. Chairman. Mr. Chairman, Roy Hardemon, participant
of the Liberty City Trust, 655 Northwest 48th Street. I'm --
Chair Sarnoff Sorry.
City of Miami Page 18 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Mr. Hardemon: -- here on the behalf of this project because as a kid, I used to fish behind that
arena, andl always saw the boats -- fast boats go through. Never saw them as an adult in that
area, and it was a real exciting thing for me. And the appropriate analysis that see the
Chairman, Mr. Starnoff [sic], which the district Commission in there did, was a valid
appropriate analysis, andl enjoyed it and it is real solid. I think they should follow your advice
and come clean with that rent and pay it for this project can stay on schedule at this time, you
know, because it ain't nothing like having a Commissioner that really could champion things for
their district. And, you know, as a Liberty City person, you know, we just humble enough to say
that was a good thing. And follow through as we look at these items throughout all the districts.
Thank you.
Chair Sarnoff Thank you, Mr. Hardemon.
Mariano Cruz: One minute.
Chair Sarnoff No, no, no. You can always stay.
Mr. Cruz: No. Mariano Cruz --
Chair Sarnoff I'm going to give you one minute.
Mr. Cruz: -- 1227 26th Street. One minute.
Chair Sarnoff One minute for Mr. Cruz.
Mr. Cruz: You know, I've been here through all this, and you know, this is part -- that
referendum was the Carollo Amendment. I was here. The Carollo amendment passed because
there was a lot of things there. Even not too long ago, years ago, the Rusty Pelican too went to a
referendum. They are not in default. They paying the City. What is the delay? What the delay?
What happen to the Casablanca there, (UNINTELLIGIBLE), (UNINTELLIGIBLE) that was there
in Watson Island, the marina? And when Manuel Garcia was working there at the Watson
Island Marina, there was no trucks around there. You know; you went there with me.
Everything was clean. How come they couldn't clean? Oh, they got the high price lobbyists and
lawyers and all consultants here. No. We need you (UNINTELLIGIBLE) worry about the
people there, the taxpayers ofMiami, the residents of the City ofMiami. That's what
(UNINTELLIGIBLE). No more delay. Either pay up or shut up.
Chair Sarnoff You could have said that at the very beginning. All right. Thank you. We're
going to table this discussion now.
[Later...]
Chair Sarnoff All right. Why don't we go, gentlemen, to the CA (Consent Agenda)? Now we
can get back to hopefully knocking off some things. Mr. Mayor, you here for any particular
item?
Mayor Regalado: I was hoping to review the Flagstone, but I don't want -- I don't know when
you want to do this. There was a time certain. You want to wait until 5 or --?
Chair Sarnoff I was told -- I was just asked by our CFO (Chief Financial Officer) to give five
minutes, so --
Mayor Regalado: I think that you all should be briefed on what they offer. I have been briefed
already, so I just wanted to understand when do you want to do it, at what time?
City ofMiami Page 19 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Chair Sarnoff My understanding from my one moment conversation from our CFO is that they
were still upstairs and they may want to come downstairs, andl think we're in the process of
getting them downstairs. And if you don't mind, I'm just going to take the CA agenda and if
they're not --
Mayor Regalado: No, no, no, no. I'm fine. I'm -- I just want to be here for the discussion.
Chair Sarnoff I agree; you should be.
Mayor Reglado: Okay.
[Later..]
Chair Sarnoff All right, RE.8.
Mayor Tomas Regalado: Are we going to --?
Chair Sarnoff Oh, I'm sorry. You're right. I apologize. We were going to put Flagstone. I
apologize. Sorry, Mr. Mayor. I'm just seeing you too often these days.
Mayor Regalado: I was -- Mr. Chairman, Mr. Vice Chairman, Commissioner Suarez, I was
briefed by the Administration this afternoon on the proposal. I understand that you all have
been told the proposal that Flagstone representatives have offered, and frankly, I am very
disappointed. Everything that we hoped, everything that we want for the City to move on with
this project, to me is -- has just collapsed with that proposal. And -- but since we want to work
in the Sunshine -- and we should -- the people ofMiami should know what exactly they're
offering. I could tell you, andl hope that you agree, that this proposal is unacceptable for the
City ofMiami, and that we should move forward and terminate the lease agreement. But it's
important that we hear what the Flagstone representative has to say in terms of what they are
offering for moving on with the contract.
Chair Sarnoff Mr. May.
Mr. May: Mr. Chairman, Commissioners, Mr. Mayor, first of all, on behalf of Flagstone, we
want to thank you for the offer that you made. We respect its intent. We believe it was made in
good faith to try to move the project forward, andl want to let you know that we appreciate it.
Unfortunately, the offer that's been put on the table is just one that's really too rich and too much
for Flagstone to handle at this point in time, given the economic circumstances of both Flagstone
and the overall economy. The proposal that was put on the table would have required an outlay
of at least $3 million and potentially $5 million by Flagstone, really, before January 30, as we
saw it. Although the timeframe wasn't exactly laid out, that's our view of it. However, in
Flagstone's effort to put their best foot forward and try to really put something on the table that
at least could be considered by the Commission and by the Mayor, we would offer the following
to the City. Number one, we would propose that the City execute the fourth amendment to the
agreement with a 12-month extension for Flagstone to take possession of the ground lease, and
that date would equate to January 30 of 2011. And we would agree that there would be no more
extensions for Flagstone to take possession of the ground lease. If they don't take it by that time,
they would be deemed in default. We would also propose, number two, upon extension -- upon
the execution of the fourth amendment, that Flagstone release $500, 000 that is currently in
escrow to the City to cure the consideration of use payments that are currently in arrears and
those that are due through January 30, 2010. Number three, we would propose that Flagstone
make consideration of use payments to the City from January 30, 2010 through the deadline to
take possession of the ground lease, which is January 30, 2011, of $41, 666 per month, which
would equate to an overall value of $500, 000. Number four, we would propose that that
$500, 000 be put into escrow on January -- by January 30, 2010, and that the escrow be set up so
City ofMiami Page 20 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
that the City draws down monthly payments automatically each month through January 30,
2011. We want to point out, obviously, that that equates to Flagstone providing the City a
million dollars between now and January 30, 2011, which is really all that Flagstone can handle
at this point in time. In addition, we would agree that Flagstone will have to remove all liens on
the property within 120 days of the execution of amendment four to the agreement, or that we
would be in default of the agreement and the City could terminate. We would also agree to
collaterally assign all permits and marina agreements to the City as part of amendment four.
And we would agree to provide a release that the City is not responsible for any nonpayment by
Flagstone and simply want to point out if we don't come to an agreement, obviously Flagstone
would retain all its rights and defenses moving forward. That, in essence, is the proposal that we
can put forward at this time. We appreciate the Commission's consideration. We appreciate the
Mayor's consideration. We think that it is the best way possible for everybody to try to give some
time for the financial markets to recover, to get the marina out of the ground and actually have
an asset that's performing, so we appreciate your consideration. Thank you.
Chair Sarnoff Mr. May, just -- if you don't mind because -- and you're the messenger. Don't
take this the wrong way.
Mr. May: Please don't shoot me.
Chair Sarnoff No, I won't shoot the messenger.
Mr. May: Thank you.
Chair Sarnoff I'm going to be as courteous as I can. In trying to establish a meeting with
myself and the Mayor, I called you last night, and I did so at the Mayor's chief of staffs request
to establish that the $500, 000 cure rental defaults would not be coming from the escrowed
money, correct?
Mr. May: Yes.
Chair Sarnoff And you confirmed to me last night that that would not be part of the escrow
money, is that correct?
Mr. May: That's correct, yes.
Chair Sarnoff And now you come to us and you say, release the $500, 000 placed in escrow as
security to make up the cure rent, correct?
Mr. May: Yes, yes.
Chair Sarnoff So we've actually fallen backwards in times, not forward
Mr. May: Well, I don't know. Maybe from yesterday to today, we've fallen backward, but we
haven't fallen backward from the agreement to today. In fact, I would say that --
Chair Sarnoff I wanted to make --
Mr. May: -- the City would be going from a point of getting nothing but go to court after this
versus actually having someone come up and offer to put dollars on the table to move forward.
Chair Sarnoff Well --
Mr. May: It may not be exactly what you and I had talked about or expected. Frankly, I
expected and was told that -- I thought that would be put on the table, but in light of everything
that occurred this morning, it's not. That's all 1 can tell you.
City of Miami Page 21 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Chair Sarnoff No. And part of getting into a relationship with anyone -- I mean, I could -- if I
went into a contract with Larry Spring or something, I could put a book together and it could
evidence our agreement, but inevitably, any agreement comes down to the integrity of the two
people because everybody will hire a lawyer, like a Lucia Dougherty, a Vicky Garcia -Toledo,
and they will scrutinize these words until they come up with a lever to get them into court. And
that's my point. My point is that I'm not sure that the person that we are in contractual privity
with is any longer a person who we should be in contractual privity with, and all the words in the
world will never change that aspect. Andl want you to know I really appreciated your candor
and your frankness, but I also don't think Flagstone appreciates its position that it's in as of
today when it clearly went on the record and said the City has done nothing inappropriate to put
-- when it was in default on its lease payments. So any release in the world that Flagstone would
like from the City is to me a hollow gesture and a worthless gesture. You could sue all you want.
I would imagine the City Attorney, in her good wisdom, will take a certified copy of the
transcript today and immediately move for summary judgment and get the escrow money back,
so your back part of your deal is simply words of no meaning. And again, this is not to you, Mr.
Mays [sic]. The numbers that you bring back to us, though, are just so woefully inadequate. I
mean, I sat there with then -Commissioner Regalado when you were at 30 or $35, 000 a month,
and we got you to be 80-some-odd -- 83,000 a month, and it was to move you along so that you
would start the construction. And now you come back to us, and you ask us to bring it down to
41,000 a month, and, you know, really the numbers have very little meaning to me because, the
end of the day, I believe we're going to get your $500, 000. I believe this is going to go to
something akin to a new RFP. I asked the City Attorney very clearly on the record, andl asked
our CFO (Chief Financial Officer) and our person in charge of our assets, we already have -- if
you're in default, the permits that you already have are ours, and so I don't understand what
you're giving us other than what you're saying is the 500,000 that we said to you in this letter, by
the way, even though last night said it wasn't -- not you personally, butt said it wasn't coming
from the escrow; oh, it is coming from the escrow, and in addition to that, Commissioner, I want
to reduce my rent by half.
Mr. May: Mr. Chairman?
Chair Sarnoff Right.
Mr. May: Couldl make one point of clarification?
Chair Sarnoff Sure.
Mr. May: The collateral assignment of permits and marina agreements, the permits as I
understand it on the agreement -- this was raised by your staff not by us. The permits are
collaterally assigned. What we added to the offer was any marina agreements that we would
develop between now and the end of the extension period. So I just want you to understand,
that's not an issue that we raised to try to, quote, unquote, you know, "hollowly sweeten the pie."
It was a request that was made by us -- I mean, by staff and we've attempted to try to meet that,
so --
Chair Sarnoff Understood.
Mr. Mays: But I understand your overall point.
Chair Sarnoff I understand. Andl leave this to Commissioner Suarez and then to
Commissioner Carollo.
Commissioner Suarez: I guess my question is -- andl think -- there are two concerns that I have.
One concern is that the Chairman made an offer that I think was to ensure the financial integrity
City of Miami Page 22 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
of the City. Obviously, the City is cash strapped. We have many, many, many challenges in
terms of fiscal year 2009. Who knows if we'll have challenges fiscal year 2010, and then we'll
eventually start getting around to budgeting for fiscal year 2011. So, you know, every decision
that we make with reference to money, it's got to be under the tightest basis, you know, under the
tightest basis. So, you know, the only -- I mean, being a real estate attorney, my impetus is
always to try to figure out a way to get the parties to agree, to see if we can come to some sort of
a solution to this so that it's in best interest of both the parties and then both the parties can walk
away happier as a result. You know, I don't know if this is -- is your offer nonnegotiable? Is that
your final offer, like the guy says on the game show?
Mr. May: I was told that we would be caucusing several times today, and so far it's only been
once, so --
Commissioner Suarez: That's not your final offer then?
Mr. May: We're willing to listen.
Mayor Regalado: Mr. Chairman, ifI may.
Commissioner Suarez: Mr. Mayor.
Mayor Regalado: One of the things that -- it really shocked me was that -- when I was briefed is
that first you, the Commission, have to approve the extension, and then we'll talk. It doesn't have
any logic at all because here we are the entity that has not been paid. The smartest thing would
have been -- well, not the smartest, because they have very smart people, but what we expected
was here's the check. As we were told we're bringing a check, cashier's check, $500, 000. We
will cure the past due rent, and we will ask for an extension. And if we get the extension, then
well, we ask can we take the money from the escrow? And it would be sort of a million dollars
from here to January of 2011. And l just don't understand why they do not want to make an
investment in the most important project that the City ofMiami will have in the next years, and
they have already invested a lot of money. I don't think that this is an issue about money and not
-- and the City not getting money in the next month or if we have to go to court, which we all
know that we will prevail for what happened here this morning, but it's important to send a
message to the people ofMiami and to everyone who wants to come and develop in the City of
Miami that we do care about our land, that we want our land to be developed in the right way,
and we were hoping that this would be the right way, and that we are good stewards of the
people's money, and that we cannot send a message that developers can do anything and
everything that they want in the City ofMiami. So I don't know if you want to send it back, but --
I mean, you guys are almost done with the agenda, and we should not defer this for any later
day. We should get this done today.
Commissioner Suarez: Let me just say -- Mr. Mayor, I'm sorry for interrupting. I'm totally in
agreement with you. I don't think this should be deferred or delayed. If they're not willing to
make a deal today, I don't think there's anything else to talk about. I think the only thing that I
had in question -- I think what I've seen as the overriding consistency between all our positions
is that we are not -- it doesn't seem to me that the Commission is prepared, nor the Mayor, to
support any kind of a solution to this issue which does not guarantee the City that the City's
going to get the money that they deserve or that they have contractual right to. In other words,
in this case, we're talking about a million -dollar extension and the City would be getting half of
what -- under unguaranteed situation. So I think what I was kind of trying to get at is if there
was some smaller period of time where the City was guaranteed to get the money that they
contracted for, guaranteed, that might be something that you're interested in and that might be
something that the City's interested in, with some additional provisions, which are the ones that I
proffered in reference to Chairman Sarnoffs proposal, which are -- and think there's a lot of
value here -- that if whatever timeframe, whatever time extension is granted, maybe granted,
City ofMiami Page 23 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
then if that time expires, that the developer will agree to vacate the property within 30 days or
within 15 days or within 10 days or within 5 days, whatever, and will agree not to litigate its
right to remain in the property and not to litigate any kind of liquidated damages, any kind of
deposit that we have held in security of our rent payments. So that's kind of where I was going
with that. If there was some smaller period of time where you could make the same guarantees
that are being requested by the Mayor and by the Chairman -- I'm just trying to be the real estate
attorney and come to some sort of an agreement, but if it can't be done, it can't be done.
Chair Sarnoff Commissioner Carollo.
Vice Chair Carollo: Mr. Chairman, thank you. I just don't want to start setting the precedent --
and that's why I asked the question -- well, it was actually the first -- one of the first questions I
asked as far as your payment and why you didn't pay and all that, and using that for leverage.
And the reason is I don't want to send the message that if you're in default with the City of
Miami, then that buys you the opportunity to leverage and to wheel and deal. I think that sends
the wrong message. I think, especially when you could have paid the City -- you didn't have to
be in default. You actually had the funds, according to what you said, and you could have paid
and you decided not to because it was a business move. You know, that sent the wrong message,
at least to me, as far as, you know, the good faith. Andl think we need iron -clad commitment
from you all should you do some type of extension. I can tell you right now, at least with my
vote, what you have offered, you will get a no. If we want to go back to the drawing board, we
will. However, I also want to make sure and certain that we don't set a precedent that if you
want to negotiate with the City ofMiami, you go in default and then use that for leverage.
Mr. May: Can I respond to that? 'Cause I -- you know, I think that's a very valid point, Mr. Vice
Chairman. I just want to say one thing. The developer's acted in very good faith from the
beginning of the project. He's invested $46 million, okay, of cash into the project and has
commitments, okay, on the table of about $64 million, including equity and debt that he's
undertaken to fund the project to this point. The problem that he has is that in the environment
that we're in, short-term liquidity for him, even though he has a lot of means and he has a very
wealthy family, it's just not there. And it's the same for everybody. And so the problem is, when
we come to a situation like this, let's remember that the consideration of use payments only
started back in April of 2009. So those were never contemplated from the beginning, but
because of the economic times that we're in and the setbacks that have taken place through
lawsuits, he was forced to come back and ask for an extension. And in exchange for that
extension, he was asked to pay $83, 000 a month in consideration of use payments. Since then,
the situation in terms of the economic environment has only gotten worse. And the problem that
we have is that there's a disconnect between the City's need to garner funds, okay, from a project
that has not gotten off the ground with the fact that someone can't pay those kind of funds. We're
not coming back asking for a cut in the consideration of use payments because it's just a great
idea. It's a tough idea. We just can't handle those payments. In good faith, we have to come
back to you and say we can't handle those. We could handle $41, 666 a month, and we're willing
to put that money in an escrow that the City draws down on. That's the guarantee of those
payments from January 30 to January 30. So the disconnect is in a time where the economy's
running up, and a developer misses a deadline, and he comes back to you and you tighten the
economic screws on him, that makes sense because there's a whole lot of certainty and faith that
someone can get something off the ground and regain fraction. The problem we're in is that the
screws are getting tightened even further here and the financial means to meet those demands
aren't there. And that's just the reality of the situation. If the City has to terminate because of
that or move on because of that, look, we all understand. But I want you to understand it's not
because Mr. Bayraktar is not a good faith person. It's not because he's not trying. I mean, this
guy has closed a loan in December of 2009 only to have it taken from him. He's willing, as part
of this offer -- it still stands from the letter that we sent on Monday -- to open up all books and
records to the City. So it's not a situation where he's, you know, trying to one-up the City. He's
actually agreeing to basically release a million dollars, which I think in today's day and age is
City ofMiami Page 24 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
not a bad thing for the City. It's probably a good thing. It may not be everything that the City
wants, but in light of where we all are economically, we think it makes sense in terms of it's the
best foot that we can put forward We're willing to listen to further ideas. We're willing to go
back and caucus but, at the moment, based upon where we are, that's where we are.
Chair Sarnoff Let me just say something to you because in law, we have expressions called
anticipatory repudiation and contract. I believe you're past anticipatory repudiation. I believe
you're actually in breach. And we should've sent or should send a letter to you that says give us
assurances. Now, here's my problem with the assurances. And this is something that's done
under the uniform commercial code. This is something that's done for all contractual rights. As
an owner -- let me be a representative of the City of Miami -- I am keenly aware that there are
$2.7 million in liens, which tells me that your -- Mr. Becktar [sic] is not paying his bills. Then
there is another two or two and a half million dollars in judgments, which includes his lawyer of
about $600, 000, which further tells me he's again not paying his bills. And what you're asking
us to do is rely upon your assurances that he is a good guy, that he's going to get things done
despite all the objective evidence and criteria out there that he is a man in failure because he is
not even addressing his judgments. I mean, if I remember in that list that I read for you this
morning, somebody just took a judgment against him a month ago, and in October, there was a
host of judgments taken against him. So here you are coming to us and saying instead of let me
come current and leave you secure with the previous security deposit you left with us, let me use
my security deposit and let me half my rent to you and I'll put the money all up front --
Mr. May: That's not right.
Chair Sarnoff -- but you can only draw down on it so much at -- on a monthly basis. And in
return, give me some extensions of time to work this out. And, you know, I don't see any of that
as a real assurance. So the City comes to you, you say that -- we come to you and we say you're
in breach and you say here are my assurances and your assurances really are half of your
obligations, and I just don't see that. And maybe you'll say, you know, Commissioner, when that
was negotiated, it was a great deal, but today it's not a great deal. Isn't that the bet that we make
-- when I bought WorldCom in the stock market -- andl bought a lot of WorldCom -- it seemed
like a really good idea at the time --
Mr. May: Yeah.
Chair Sarnoff -- but don't have any WorldCom anymore. And ifI could undo time andl could
go back and get my WorldCom stock, I might not be sitting here right now.
Mr. May: Commissioner, I have one question. Do you know of any leaseholder to the City of
Miami that's paying you $83, 000 a month, whether they have a project that's built or not built?
Is there anyone who's paying you that kind of money?
Chair Sarnoff I don't know that. That's a truthful statement. On the other hand, in the words of
the Mayor, I don't know anybody that had the rights to build this. And you might say things have
changed, but that was pretty spectacular, and that's what the voters voted for. And you're saying
to me now, well, you know what? It's really not worth that. And I -- you know, I understand
that.
Mr. May: Well -- but under the original agreement, the $83, 000 would've never kicked in until
he actually broke ground on the property, and all I'm saying is that there are plenty of people out
there with the City who have fallen behind on payments who have actually functioning
businesses that are producing cash flow off of their property. This is one in which there is no
cash flow andl would submit is probably paying a higher rent than any one that is producing
cash flow.
City of Miami Page 25 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Chair Sarnoff Then just address --
Mr. May: So it's just an issue of sort of trying to treat everybody --
Chair Sarnoff -- one thing with me.
Mr. May: -- a little more fairly.
Chair Sarnoff Address the concept is your client failing. Because why is he allowing judgment
after judgment after judgment to be taken against him?
Mr. May: Because it's difficult for him, in an environment where short-term liquidity is a
problem, to keep funding the project out of his pocket knowing that he's already funded it out of
his pocket to the tune of $46 million in cash. So it's really hard. It's not like he just doesn't want
to pay people. What he's trying to do is buy time, secure financing, and then pay those people
off. That's the idea. And that is --
Chair Sarnoff And --
Mr. May: -- practically not -- and would submit to you, it's not only what Mr. Bayraktar is
doing these days, it's what thousands and thousands of developers and businesses are doing all
across America and all across the globe. It's a tough time and people are having a tough time
meeting their obligations, from the average homeowner to the small business owner to someone
like Mr. Bayraktar. And if he's failing, there's a whole lot of other people that are failing too.
Chair Sarnoff All right. So what is the pleasure of this Commission?
Vice Chair Carollo: I believe we should, once again, proffer what you had mentioned in the
past, see if they come back with anything different. And if not, we'll take a vote.
Chair Sarnoff Yeah. I think the Mayor was ambitious when he said we're almost done with the
agenda. I think we'll be here for another three or four hours, gentlemen. So what suggest is we
table this and we give them one more chance to come back with something a little more concrete.
Is that agreeable, Mr. Mayor? Is that all right?
Commissioner Suarez: That sounds good to me.
Chair Sarnoff We'll bring you back at 7 o'clock.
Mayor Regalado: They -- Mr. Chairman, I think that everybody knows that the City has been
very patient and, you know, yes, maybe there is no one -- maybe the Rusty Pelican is paying a lot
of money now.
Pedro G. Hernandez (City Manager): Mayor, there're two that are paying the same amount in
that range, the $1 million a year.
Mayor Regalado: So -- and they did start paying, and they do have a restaurant, but they went,
like you guys did, to the voters. The voters approved an extension. It took several years, and on
top of what they seek, an extension, the City Commission placed on them a lot of new things that
they accept that they will be doing, which means more money invest in City properties and
building a garage in Virginia Key and all that. So I just hope that they can understand that all
we want is to hopefully keep this project, but you got to know, Mr. May, that number one, we
were told that you guys will be bringing a check, that we will not draw from the escrow, that we
will keep that escrow alive. If you were seeking an extension and the Commission would grant it,
that we could draw or take that escrow. But the point is that we do not have any guarantees that
City of Miami Page 26 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
come next year, you will have the financing and we just need to know. And we don't -- we need
to have an assurance that this project is a viable one. So I, you know, don't think that we're
afraid of being sued because we all know what went on this morning here. We just -- we're sad
that we may lose a project that everybody worked for and campaigned for, as we did back many
years ago. But we need to send a clear message that, you know, like the Vice Chairman said, I
mean, you default and then use the default as a leverage to gain some issues. If you guy accept
$83, 000, you have to keep paying $83, 000. Like you said it, a contract is a contract, when we
were discussing the Marlins. We have to honor all the contracts. Even if we cannot sell bonds,
we have to build the garage. We have to pay the Arscht Center, which by the way, you should
read Miami Today's article today and the cash flow that the Arscht Center has because of the
Omni. And we should be paying -- if we don't get the extension of the CRAs (Community
Redevelopment Agencies), we should pay the $50 million for the tunnel. So the City has to pay
everything, honor every contract, and then the City's clients don't. So I don't know.
Chair Sarnoff Let's do this, Mr. Mayor. Why don't we table it 'til 7. I don't know that there'll
be a different result, Mr. May, but maybe you caught some of the impressions of the Commission
and maybe there is some movement that can occur. And if not, then we'll take it up exactly at 7
o'clock and we'll vote and we'll get it done.
Mr. May: Fair enough. Thank you.
Chair Sarnoff All right. Thank you.
[Later..]
Chair Sarnoff Now is Flag --
Priscilla A. Thompson (City Clerk): No, no, no, no, no. Don't move yet, please, sir, okay? We
still have another page of items.
Chair Sarnoff We do?
Vice Chair Carollo: PZ (Planning & Zoning) items.
Ms. Thompson: Turning to your -- what we call the cheat sheet, page 3, you still have SP.1 that
hasn't been taken up, and then you also have a district item page on there, as well as we still
have two PZ items that have not been taken up.
Chair Sarnoff From the supplemental agenda?
Ms. Thompson: Right. So we have -- that one -- when we combine the regular and
supplemental.
Chair Sarnoff I want a -- I know these Commissioners want a break. I want a break. I want to
know if Flagstone is here 'cause I'd like to get that done? Once Flagstone's here --
Mayor Regalado: They're coming down.
Chair Sarnoff All right. I want to let the Mayor go home, if he wants to. Then right after the
Flagstone, I'd like to take a break. I'm sure you guys would like to take a break. Then we have a
PZ agenda to go through. We'll start off of the supplemental agenda and complete that.
[Later...]
Mayor Regalado: So it's time. And thank you for your -- I told them a few minutes ago that they
City of Miami Page 27 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
needed to come down because we have three members in the City Commission that had been
sitting there since 9 a.m., and if one of them wishes to take a little break, we don't have quorum.
So it's very -- I know it's been very difficult for you and this long agenda is something that --
well, we had to do it, but we want to thank you for all the good work you've done today. Andl
think that when the Manager brings this gentleman down, we will have some kind of resolution
that you all can debate and decide what basically --
Larry Spring: Larry Spring, chief financial officer. Commissioners, the Flagstone
representatives are on the phone with their client right now talking about the last set of --
Chair Sarnoff All right. So let's -- Mr. Mayor, if you don't mind, we're going to take some other
issues up during the interim.
[Later...]
Chair Sarnoff All right. I think we're done with the special agenda. Does anybody want to
start with the Planning and Zoning, or is it just taking a long time to get that phone call out?
Julie O. Bru (City Attorney): Mr. Chair --
Chair Sarnoff Yes, ma'am.
Ms. Bru: -- if we're not going to take up Flagstone now, perhaps you should close the regular
meeting, and this would be a good time to close the regular meeting and now open up the P&Z
(Planning & Zoning) meeting.
Chair Sarnoff If we close the regular meeting, do we reopen it to --
Priscilla A. Thompson (City Clerk): No.
Chair Sarnoff -- address Flagstone?
Ms. Thompson: No, no, no. What you can do --
Chair Sarnoff So can we take --? Go ahead.
Ms. Thompson: I'm sorry.
Chair Sarnoff Go ahead, Ms. Eisenberg.
Ms. Thompson: What you need to do is just recess -- just -- the term is recess -- this meeting,
then you can go into your Planning and Zoning. When you're finished with that, or whenever
you want to take a break from that, you can go back and reconvene.
Chair Sarnoff All right. Let's take a recess from this meeting, and now Madam --
Mayor Regalado: Mr. Chairman.
Chair Sarnoff Yes, sir. They're here?
Mayor Regalado: They were told to come down and --
Chair Sarnoff They are here.
Mayor Regalado: -- I think -- okay, they're here. So we are good to go. And --
City of Miami Page 28 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Chair Sarnoff Mr. May, you asked what kind of day it would be. Was it the day you expected?
Mr. May: Yes. You were very upfront and clear about that.
Chair Sarnoff So why don't you come up here and why don't you address the Mayor.
Mr. May: Mr. Chairman, Commissioners, Mayor, at this point we had some very good and
fruitful discussions, I think, with staff and also the Mayor sat in for some of it, and again, we
appreciate that. The problem that we have is that we cannot get authorization from our client to
actually release the escrow immediately without some firm commitments from the Commission
and the Mayor, frankly, that we can have an extension in a fourth amendment for 12 months that
would require us to replenish the escrow, to have that escrow drawn down if we miss payments.
And what we would require is a reduction in the consent to use payment from 83,000 a month to
41,000 and change. So that's where we are. We would -- you know, we think we're close to
trying to strike a deal, but you know, we can't really get any commitment to release that escrow
without those kind of commitments. And so, we would ask, respectfully, to please defer the item
and allow us to continue to work on it. If that's not the will of the Commission or the Mayor, we
understand, and you know, we'll move on.
Chair Sarnoff May I could help you along 'cause I know something I would be supportive of.
Release the $500, 000 to bring you current. Replenish the $500, 000 before the next Commission
meeting. Enter into conversations with the City -- you're going to have to do this anyways. I
mean, I believe you're going to be forced to do this legally. Enter into the conversations with the
City regard to whatever you think is necessary, whether it's lease reductions. Do it at a more
level measured pace than one day negotiation. Realize the position I think you find yourself in.
Counsel rarely gives very good advice when they've just reacted to things that their principal has
said on the record in front of the City. But it seems to me if you just get a commitment to release
the $500, 000, that brings you just back to the status quo ante of your lease default. Replenish
the $500, 000. Puts you back to the status quo ante of where your lease agreements place you.
And then we would commit to not bring this up until the February agenda, and that gives you 30
days in which to negotiate whatever deal you think you need to negotiate. And that's really
where you find yourselves technically under the lease right now.
Mayor Regalado: Mr. Chairman, ifI may. That is precisely what told them upstairs, that they
should come here tonight and say we want to pay. We want to be current. And even use the
escrow, so the City will draw the money that you owe from the escrow, and then begin the
conversation. The thing is that they do not want to be current unless you approve a resolution
that believe you should not approve. It's wrong to say, well, I will pay you what owe you if
you extend 12 months, if you reduce my monthly payment, if you notify me if you guys are going
to use the land for other uses temporary as it is. It's not right. And so, I'm just -- I -- like you, I
don't want to see the project fail. But they just -- it would have been easier for them just pay
today and give us room. Actually, you were kinder because I told them, well, in January, you
can come back. Is February a date that they could come back? Fine. But what told them
upstairs is that I would not support and would even veto a resolution that compounds I pay you
what I owe you, but in order for me to pay you what I owe you, you have to give me this and that
and that and that. And I think that that would -- that's wrong. And I told them. And that's alll
want to say. So, it's up to them. I don't think you should take another break. I mean, how long -
Mr. May: Mr. Chairman?
Vice Chair Carollo: Mr. Chairman.
Chair Sarnoff Go ahead.
City of Miami Page 29 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Mr. May: Couldl clan fy what --?
Vice Chair Carollo: Out of all of the issues that were brought up, this is the one issue that from
the start I mentioned. I mentioned the $500, 000 as leverage, using that as leverage. You'll find
during -- you know, within time and so forth, that I could be flexible. However, I can tell you
right now that I will vote no for anything that has to do with you give us the $500 [sic], which
you owe us -- and yes, I understand, it's a little bit less, but the -- you'll give us the monies that
you owe the City in exchange for additional time. No. I refuse for you to use that as leverage
because I will not set that precedence. So that's how I stand. Should you want to pay us and be
up-to-date, I do not have a problem with going on regularly and you have until February, which
is -- I think that's what the contract is. However, I can tell you right now that I'm prepared, you
could call the question, to vote no and terminate the contract because I will not be in a situation
where I use money that is owed to the City as leverage against us.
Chair Sarnoff You know, Mr. May -- and I'm going to let you speak, Commissioner, but --
Mr. May: Can I clam one thing? I want tojust --
Chair Sarnoff Sure.
Mr. May: -- one thing for the record. We have spoken to the client, who is here, but this
decision can't be made just by the family here in the States. And we tried to reach Turkey; it's 2
o'clock in the morning. It's -- you know, waking somebody up at 2 o'clock in the morning and
saying, hey, guess what, here's the deal without having to walk through it for an hour, as
anybody -- any one of you would do if you were in their shoes is just a very difficult task. We,
you know, do understand the need to release the escrow immediately. We're not asking to
necessarily completely tie the City's hands, but we need something coming back the other way
that would at least, you know, help us with some of the terms that we need.
Vice Chair Carollo: You do. You have an additional two months to work it out with us. You do
have something coming back. You have 'til February. However, this is monies owed to the City.
So why should we accept monies that owed to us in exchange for an extension? I mean, you said
yourself hey, it was just a business decision not to pay the City. Well, I think -- at least with my
vote -- I'm making a business decision.
Mr. May: Well, we -- you know, we made commitments -- you know, in the discussion we've had,
we've made commitments to release the escrow, to replenish the escrow upon the execution of
agreement under terms we put on the table. If those are not workable for the Commission, then
they're not workable. But it's really hard for us to get authority tojust release the escrow tonight
and say, hey, we want to come back. It's really hard to explain that to folks that are half asleep
in Turkey, but --
Chair Sarnoff Well, let me --
Mr. May: -- I understand where you're coming from. I'm not debating it. I'm just saying --
Chair Sarnoff -- fix --
Mr. May: -- we are where we are.
Chair Sarnoff -- impediments because, Commissioners, I don't know what your schedules are.
Is anybody leaving town for Christmas? All right. So let me ask you this -- Mr. Mayor, I don't
know if you'd mind -- what if we called a meeting at 10 o'clock, we spent one hour on this,
whether it be December -- I'm just picking dates, gentlemen. Could be --
City of Miami Page 30 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Ms. Thompson: I'm sorry, Chair. Did loan you the 2010 calendar or --?
Chair Sarnoff You did. Thank you. Ms. Eisenberg, you're trying to get me in trouble. All right.
We could do this December 22, December 29. I'm trying to take away the impediment of your
communication. I am giving you every opportunity to communicate with your client and to get
the necessary instructions. I'm even willing to give up, let's face it, it'll be two hours of our day,
so that the citizens ofMiami know that when they go to bed, hopefully, on December 31, that
they have 500 thousand more dollars that they should have had to begin with. Andl don't like
getting into principles. I happen to think Commissioner Carollo is right. You know, I'm trying to
give you time. Even if -- and this was suggested by -- let me give him credit -- the chairman of
the City -- of the Village Council. What about taking a bond for your next $500, 000? Which
means if you are people of substantial wealth, it's a 1 or 2 or 10 percent, and the City would
accept that if it's a triple A bondable company so you don't have to put up the 500, 000. But if
you do default, at least the City knows it's got the $500, 000. And that satisfies your cash flow
needs. It satisfies the citizens ofMiami because if you're in default, we go against a bondable
company. If you are who you say you are --
Mr. May: I am (UNINTELLIGIBLE) --
Chair Sarnoff -- and mean that respectfully, Mr. May -- if you are a creditworthy individual --
andl mean your clients --
Mr. May: I know that.
Chair Sarnoff -- then your cash flow impediment is taken up. So -- when people negotiate, I
always try to take away what they claim, respectfully, to be their impediments. I want to take
away your Turkey communication requirement. I want to give you ample time to communicate.
This Commissioner wants to see the $500, 000 released. This Commissioner would be agreeable
to you coming back with a triple A bondable company for another $500, 000. I don't need to see
you in January. You can negotiate with the Mayor, you can negotiate with the City Manager or
any of his designees to come up with what you think is a plausible situation [sic]. Now I will tell
you this, $41, 000 to me is not plausible, but I am sensitive to your issue. So from there, Mr.
Mayor, would you be agreeable to a special meeting?
Mayor Regalado: Absolutely. But we should do it early next week --
Chair Sarnoff All right.
Mayor Regalado: -- because it's much better. And the only thing that he needs to do is just wait
for a while and then call Istanbul. And it would be their --
Mr. May: I'd rather go to Istanbul actually, but I guess I'll call.
Chair Sarnoff You know, I've been to Istanbul.
Mr. May: It's a very beautiful place.
Chair Sarnoff Greatest city I've ever been to in my life.
Mr. May: Yeah.
Mayor Regalado: It's called the city of the thousand mosques. But -- and it's very beautiful.
But, however, you should have done this earlier in the day. It's -- I mean, this Commission, you
have to understand, has been very patient.
City ofMiami Page 31 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Mr. May: Absolutely.
Mayor Regalado: This -- at least this Administration would not be as much -- as patient as in
the past. Andl would ask you, andl think that -- and Mr. Chairman, I'll be here for any date
early next week, either Monday in the afternoon or Tuesday. They just need a day. That's all
that they need. Tuesday. But I would tell you that what I heard upstairs, it would not -- you
would not agree with it. So I will just say to you that -- what I said. I don't think you have the
votes downstairs with this proposal. And -- so I believe that we should just give them the time to
communicate with the family, butl think we should do it, and we should do it early in the week,
and we should do it in a way that they know -- you know that this City Commission will not
accept less than the payment and we would not accept any conditions in order to get paid. We
will get paid and discuss then the conditions. And this is the way that I'm sure that we want to
do. This is the way we will do it, and this is the way the Administration will do it.
Chair Sarnoff Is this something you desire or something worthwhile?
Mr. May: Sure.
Chair Sarnoff So December 22 at 9 o'clock in the morning, gentlemen? I don't know what your
schedules are.
Vice Chair Carollo: I have Bayfront Trust meeting. I don't know what time that starts.
Chair Sarnoff Those are lunches, usually. If we don't resolve this in an hour, it's fine. We're
not going to resolve this.
Vice Chair Carollo: And by the way, I lean towards the will of this Commission. But I have to
admit, I'm reluctant to do this. I'm not totally sold on this -- setting a special meeting. I mean, it
seems to me this Commission said various times today, we're going to decide this today. So
again, in order to be flexible, I will lean the way this Commission seems to be heading, but I'm
not really too happy about it.
Chair Sarnoff Well, let me proffer.
Ms. Bru: Mr. Chair, procedurally, if you are going to have a meeting next week, instead of a
special meeting, you can just recess this meeting, continue it 'til next week. In that way, you
don't have to incur the expense of advertising or anything.
Chair Sarnoff I actually knew that.
Ms. Bru: Okay.
Chair Sarnoff I thinkl made that -- I thinkl remember that mistake. All right. I'm going to
move to recess this meeting to December 22 at 9 o'clock.
Vice Chair Carollo: We have a motion by Chairman Sarnoff. Do we have a second?
Commissioner Suarez: I will second it.
Vice Chair Carollo: Second by Commissioner Suarez. Any discussion? Hearing no discussion,
all in favor, say "aye."
The Commission (Collectively): Aye.
City of Miami Page 32 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Chair Sarnoff Mr. May --
Vice Chair Carollo: Motion passes.
Chair Sarnoff -- think --
Vice Chair Carollo: Anyone in opposition have the same right, say "nay." Motion passes.
Chair Sarnoff -- long and hard about -- if your issue is cash flow, think about using a bonding
agency.
Mr. May: It's a good -- very good suggestion. We will.
Chair Sarnoff And you should thank Patrick Sessions. It was his.
Mr. May: Thank you, Patrick Sessions.
Mayor Regalado: Thank you.
Mr. May: Thank you, Mr. Mayor.
Note for the Record: The following discussion and Commission actions took place when the City
Commission reconvened on December 22, 2009.
[Later...]
Chair Sarnoff Just -- I want to give everybody a one -minute head start. We're going to
reconvene the December 17, 2009 Commission meeting, the sole purpose of which was to bring
up the Flagstone Island Gardens issue that was brought up by the Mayor. Mr. Mayor, you're
recognized for the record.
Mayor Tomas Regalado: Okay.
Chair Sarnoff Oh, I'm -- you know, I didn't know I had that power.
Mayor Regalado: You do. You have the power to cut off. But good morning, Mr. Chairman,
Mr. Vice Chairman, Commissioner Suarez. This is not a special meeting, as you said. It's just a
regular meeting that we're continue. We had one matter that was pending, and you decided late
last week that we will give the Flagstone representatives time to respond to your request and our
request, and the issue was very simple, whether we terminate the contract and the lease or do
something else. Last night, I received a copy, and you also have a copy, of a letter from Schutts
& Bowen, representative of Flagstone, and it says -- and I'm reading on the record -- "Dear
Mayor Regalado, at your request and the request of Commission Chairman Sarnoff and
Commissioners Carollo and Suarez, our client, Flagstone, has instructed us to turn over to the
City ofMiami, as soon as possible, $498, 000 we currently hold in escrow pursuant to that
certain agreement to enter into ground lease, as amended, the agreement, in payment of all use
fees and bringing Flagstone completely current under the agreement through January 31, 2010.
With this gesture, Flagstone hopes to show the City a spirit of good faith and cooperation and
not litigation, and ask the Mayor and Commission to please appreciate that this global economic
crisis that has crippled homeowners, small business, and major developers alike, it is a time for
support and cooperation in the development of this beautiful waterfront project for the City of
Miami. Respectfully, we request that between now and the February 11, 2010 City Commission
meeting, Flagstone have the opportunity to meet with the City, negotiate the terms of a fourth
amendment to this agreement. The terms can be incorporated into a written document, fourth
amendment, and presented to you and the City Commission for consideration in February."
That's the letter. I think that with this letter, we achieve half of what we set to do last week, and
City ofMiami Page 33 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
that is to have Flagstone current on the payments to the City ofMiami for the month of August,
September, October, November, December, and January. The total is $498, 000 out of $500, 000
in escrow. I have spoke to the Manager and Public Facilities and the CFO (Chief Financial
Officer), and we believe that we should take the money as soon as possible, which should be
today, tomorrow. Banks are closed at noon on the 24th. We need to have the money in the City's
account during the next two days. And then, if you allow, our office, the City Manager, the City
Attorney, Public Facilities, the CFO, will start talking to them. And, of course, throughout the
talks, we will be consulting with you, members of the Commission, because I heard you loud and
clear what you all want. And it's something that we have to consider when we sit down to talk.
Every issue that was presented by you will be part of the talks with Flagstone. We understand. I
can tell you that in our agenda will be what Chairman Sarnoff, Vice Chairman Carollo,
Commissioner Suarez had to say. I took notes, and that would be part of the talks to resolve. I
know that you know that we want this project to succeed. Everybody does. But we cannot allow
a tenant of the City ofMiami to be behind in payments, so this is the first step. Andl would like
you to consider accepting the money with no conditions. There is [sic] no conditions at all in
this acceptance that will make us offer them an extension, offer them certain amount of payment.
That will be part of the conversations that will be brought to the City Commission on February
11. However, I want the Administration to bring an update in public to the City Commission on
the first meeting in January so you can all discuss in the Sunshine what is going on with the
talks. So having said that -- Mr. Chairman.
Chair Sarnoff Thank you, Mr. Mayor. I have a question before we discuss this as
Commissioners. I guess I operated under the assumption, Mr. Tachmes, that a trust account
check in the amount of $498, 000 would have been provided to the City by now.
Alex Tachmes: Mr. Chairman, no. I don't -- that wasn't the intention. We will be releasing it as
soon as possible. I understand the City Attorney is aware of a procedural issue we need to deal
with with regard to the money. I assume you've been briefed about that, but can discuss it a bit
further if you like relating to a garnishment motion that was filed.
Chair Sarnoff Well, maybe she can help us, because I'm not aware of any reason why a check
would not have been provided. But let her explain it.
Ms. Bru: We have the escrow agreement that gives very specific instructions about how the
monies are to be disbursed. And it is our understanding that Flagstone is willing to release that
without any objections or any kind of notice to the agent of any dispute involved between the
parties. However, there has been a motion filed by former counsel to Flagstone for seeking
garnishment of those funds, which would have to be resolved before the escrow agent would be
allowed to release the funds. I think the motion was filed on December 17.
Chair Sarnoff Who filed the motion on whose behalf?
Ms. Bru: Lillian Ser filed it.
Mr. Tachmes: Let me just give you an update on that situation. Counsel for Lillian Ser, former
in-house counsel for Flagstone, filed a garnishment motion. Our firm is currently preparing an
answer to the garnishment motion. We think the motion has no merit because the money that she
is seeking to garnish does not belong to Flagstone. It belongs to the City. And therefore, her
desire to attach those monies or grab those monies, since it does not belong to Flagstone, which
is the alleged debtor to Lillian Ser -- it doesn't belong to Flagstone, and therefore, the monies
can't be garnished. Notwithstanding that, our litigators in our office are telling us that as
escrow agent, we can't release those monies until a court rules on the garnishment and an
answer to the garnishment motion. I spoke with the City Attorney before the hearing started.
We're going to file the motion -- the answer on an expedited basis. We're going to request an
expedited hearing before a judge. Andl also suggested that it would be a good idea for the City
City ofMiami Page 34 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
also to file some piece of paper in connection with the hearing to confirm that it does agree that
the money is theirs so that there's no -- it's just not a claim on our part saying that the money
belongs to Flagstone, but the City does agree that it is their funds as well. And then we're
hoping that a judge will rule promptly that the money belongs to the City. After that occurs, we
will immediately wire the money to the City.
Chair Sarnoff Well, let me ask Madam City Attorney. Is there not an agreement that Flagstone
could enter into that clearly identifies the money as being that of the City to demonstrate that it
would be Lillian Ser versus the City's money, or are you satisfied that that's the status quo ante
right now?
Ms. Bru: Well, they made an offer by virtue of the letter that we received, andl think if we
wanted to ensure that there is no -- there's no dispute, which is the terminology that's used in the
escrow agreement, is that the parties have the ability to dispute any of the parties' eligibility to
the funds, so I would suppose -- and I would recommend -- that some sort of statement signed by
an individual authorized to represent Flagstone declaring that there's no dispute that the City
has the absolute right to these funds without any kind of setoff on the part of Flagstone. We can
have something prepared, and that could be part of the court record also.
Chair Sarnoff One of the things, Mr. Tachmes, that I did -- and I'm not the best at this -- is I
drafted a document that I've seen banks draft in the most recent times. It says Flagstone
Gardens T,T C (Limited Liability Company), through its authorized representatives, attorneys,
and agents disclose here -- disclosed below hereby agrees this hopefully 20th day of December,
or whatever day we're in, 2009, that it is obligated to the City ofMiami in accordance with the
agreement to enter into the ground lease, the ground lease and its amendments, including but not
limited to the payment of consideration for use payments without any rights of setoffs,
counterclaims or defenses.
Mr. Tachmes: Mr. Chairman, without having seen the written language, conceptually, that's
fine.
Mayor Regalado: Mr. Chairman, ifI may?
Chair Sarnoff Yes, Mr. Mayor. You're always recognized.
Mayor Regalado: This attachment -- that new twist was not included in the letter that we
received yesterday, and it is a little difficult to understand why because showing good faith, we
were all in the belief that the City will get the money immediately, which is what you owe to the
City. So, Madam City Attorney, I'd like to understand from your point of view when and how we
will get that money, and what do we need from them today? Because we need to understand
what is our legal rights.
Ms. Bru: Mr. Mayor, you're referring to the funds that are in escrow?
Mayor Regalado: Right.
Ms. Bru: Okay. I believe that -- and we are preparing a motion for the Commission that based
on their representations that they are not disputing the City's right to those funds under the
escrow agreement and pursuant to the terms of the agreement to enter into the lease. So we will
memorialize this understanding at this point to ensure that they're releasing the City from any
claim that they might have to dispute the disbursement of the funds, and then the other -- the only
other thing that we would have to do is to collaborate with them in order to defeat the motion for
garnishment that has been filed, and that is all that it takes. We are then further recommending
that additional steps be taken today to ensure that going forward, once we have settled the issue
of the release of the escrow funds, we can deal with the rest of the items that are still on the
City ofMiami Page 35 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
table.
Mayor Regalado: I would suggest that you would present your document. I would suggest that
they would accept it. And I would also ask the Commission to move forward accepting the
payment, but that we need to -- that they need to understand that if this takes longer than the
date of the Commission in January where we are supposed to give you an update, they will
understand that the terms of the payment are the same as we have now. 'Cause one of the issues
that they want is -- and we -- I'm sure that you all recognize their predicament that we consider
some kind of reduction in rent. But not until we get the amount we cannot even discuss the rent
issue. We could discuss the extension, but with the same rent, unless and until we get that money
that belongs to the City. I mean, this money belongs to the City. So it's important that we
understand that.
Chair Sarnoff Madam City Attorney, have we filed an intervener action? Have we intervened
in it?
Ms. Bru: On the motion to garnish that has been filed?
Chair Sarnoff Yes.
Ms. Bru: Not at this point, no.
Mr. Tachmes: We'll be sending our answer to the motion to the City, and then that's -- my
understanding -- and again, I'm not a litigator -- is typically an answer to the motion is filed and
then if another party has claim to those funds, that party then is served with a copy of it, and they
then respond. But we'll be requesting, Mr. Mayor, an emergency hearing before a judge. We
believe that if the City also requests it, given that it is a municipal government entity, that I think
that will have more weight in trying to get an expedited hearing. So we will do whatever we can
to get accelerated treatment of that motion on the hearing.
Chair Sarnoff My understanding is you're in front of Judge Pedro Echarte, who is extremely
conscientious about moving his docket and extremely conscientious about giving hearings very,
very quickly. I would expect that by the end of business today, somebody has done the necessary
paperwork. Maybe by the end of business today is ambitious. But maybe by the end of this week,
which is a short week, that we have certainly demonstrated to the Court our interest in the
property, namely the $498, 000, and that we request an expedited hearing on same. He is
extremely good at granting those. He is an extremely efficient judge. I don't expect to hear back
in February, well, we're still waiting on Judge Echarte to set the hearing. That is not the case.
That is not the type of judge he is. So to some degree, Mr. Tachmes, I want to make sure that
your office, Schutts & Bowen, which is an excellent litigation firm, does everything they need to
do to get this expedited. And Madam City Attorney, I don't want to hear about us in any way,
shape, or form not being up to the task in expediting the hearing on same as quickly as possible.
Ms. Bru: Okay. I think I'd also like to put on the record that according to the escrow
agreement, I believe that at this point since Flagstone has already agreed and conceded and
acknowledged that the City is entitled to that money, under the escrow agreement, you could put
that money into the registry of the Court. In that way, the only thing that remains is for the
Court to determine that Madam Ser has no claim to that money and it belongs to the City. So I
would suggest that you, along with the good faith that you are expressing thus far, is to go ahead
and deposit that money into the registry of the Court immediately.
Chair Sarnoff Well, actually, you have that in an interest -bearing account?
Mr. Tachmes: I believe we do, yes.
City of Miami Page 36 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Chair Sarnoff You might be better suited -- in an attorney's trust account, $498, 000 may turn
into 505 to $507,000.
Mr. Tachmes: It's a bit over 500 at this point.
Chair Sarnoff Having done a number of interpleaders, what happens is you give it to the court,
they take their fees, and $498, 000 becomes $490, 000, and good lawyers always can agree to
leave in their trust account, which we all know we're subject to disbarment should we do
anything appropriate with, andl know Schutts would never do that, and thereby the City would
be entitled to the rents, royalties, and interests that that trust account is able to generate, and put
us in a position of maybe being up 510, $515, 000. So with that, I want to bring it back to the
Commissioners for their thoughts.
Vice Chair Carollo: I have a question for Madam City Attorney. And one of the questions, I just
want to confirm that I know exactly what we're dealing with. Once there's a special hearing and
it has decided who ultimately can obtain that monies, that's when the funds will be released to
the City?
Ms. Bru: Under the escrow agreement, the escrow agent has the obligation that if there is a
claim made by a third party -- At this point, there is no dispute between the parties to the
agreement to enter because they have now acknowledged that the monies are the City's, and
they've acknowledged that they're going to release those funds to the City. However, there's a
third party that now has filed a motion in court claiming some sort of entitlement to those funds,
and therefore, they cannot release it until the court makes the determination as to whether or not
that motion has any merit.
Vice Chair Carollo: Once the Court makes the determination, can that party -- andl understand
anything is possible -- but how probable is it for that party then to make a claim against the City
for those funds?
Ms. Bru: I don't believe that there's any claim whatsoever available to that third party against
the City for any of these funds.
Vice Chair Carollo: So the bottom line would be once they have -- once it goes to trial -- I don't
know what's the exact terminology.
Mr. Tachmes: It's just a hearing.
Ms. Bru: A hearing.
Vice Chair Carollo: Once it goes through the hearing and the determination is made, that's
when you can release the funds --
Mr. Tachmes: Correct.
Vice Chair Carollo: -- and so forth? And then we -- the City, in essence, has to wait until that
trial actually takes place?
Mr. Tachmes: And Commissioner, let me just make a quick comment about that. We -- you
know, the filing of this motion for garnishment was something that we did not expect, and what
occurred after we had a meeting -- I believe it was after our last meeting here. So had it not
been for that motion, we would be ready to wire that money to the City immediately. We then got
served with a motion. I frankly think -- and again, stressing I'm not a litigator -- I don't think
this motion even would have had merit four months ago, because the money was always a
security deposit. It was never the clear money of Flagstone. The City's always had an interest in
City of Miami Page 37 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
it, since it's -- it was security -- it's security for an agreement. So I don't believe the motion has
merit. You have my word that we're going to request today an emergency hearing for the judge
as soon as possible. We will file our answer to the garnishment today, and we will move as
quickly as possible to get this done. Our client has -- as we already -- we indicated in our
answer to the garnishment, which the City Attorney will get, and I'll restate here on the record --
our client relinquishes any interest it has to that money. And if it wasn't for this garnishment
motion, which is a very -- you know, an unfortunate court filing, we would have been able to
wire that money to you today or tomorrow, subject to doing some paperwork. So we're sorry to
be put in this predicament. We -- as Schutts & Bowen -- we certainly can't disburse the money
with a garnishment motion pending until there's a court order that rules one way or the other,
and as soon as that's resolved, the money will be sent immediately.
Vice Chair Carollo: When were you notified of the garnishment of funds? When were you
served?
Mr. Tachmes: We were served -- it was either right after the hearing or the day after our last
hearing here.
Vice Chair Carollo: What date was that?
Chair Sarnoff Last Thursday.
Vice Chair Carollo: So right after the Commission meeting, you're saying? One last question.
Mr. Tachmes: Or that day. It was --
Vice Chair Carollo: Right, the Commission --
Mr. Tachmes: -- very recent.
Vice Chair Carollo: -- meeting day. One last question. Instead of paying the City through the
escrow funds, is there a way of paying the City through other funds and then getting reimbursed
through the escrow so we have the money up front?
Mr. Tachmes: Commissioner, obviously, that's -- that would be another way to handle it. Given
our client's financial situation, I don't think that's something that's realistic right now. We'd
rather get to the hearing. We're confident we're going to prevail. If we don't prevail at the
hearing, naturally that would be the next step 'cause we acknowledge we owe you the money. So
if the money can't come from the escrow because that money is gone, we'd have to get you the
money some other way.
Vice Chair Carollo: Thank you.
Chair Sarnoff You're recognized, Commissioner Suarez.
Commissioner Suarez: Thank you, Chairman. Thank you, Vice Chair. Thank you, Mayor.
Madam Attorney, I have a question. Is the motion for garnishment, is that an appealable
motion? In other words, if, for some reason, Flagstone wins the motion, the -- or I guess better
said, if the creditor loses their motion for garnishment, is that something that can be appealed?
Ms. Bru: Honestly, I'd have to check with the litigator on that. I don't know the answer to that.
Commissioner Suarez: All right. Well, I think what Vice Chairman Carollo was getting at, in
essence, is that, you know, this can kind of get held up, and it may get held up if it gets appealed,
so it -- maybe what makes the most sense is to try to start figuring out a different way to account
City of Miami Page 38 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
for that money and then have that money transferred over. For example -- andl think we had
mentioned it -- the Chairman had mentioned in the last meeting, you know, the possibility of
bonding certain money. And certainly, what may be done in this case, I believe, if your client is
so willing, to possibly bond the money in escrow for purposes of the garnishment motion so then
we can get the money immediately. And then if it is, you know, appealed or, you know, God
knows what other procedural -- you know, if you don't -- we don't get the hearing right away,
you know, if the judge is out of town, even though the judge is someone who has a reputation for
hearing motions on an expedited basis, if he's out of town, you know, if anything happens, you
know, we have that -- those funds available immediately. And then your client doesn't have to
take the full brunt of the financial hit of having to put those monies up twice, in essence.
Mr. Tachmes: Let me suggest this, Commissioner. I don't think that's a bad idea. Let -- if we
can, let's see how quickly we can get that hearing, which I'm hopeful we can get it expedited.
The Mayor has indicated he wants a progress report by your January meeting. If the money has
not been released by that January meeting, then I think we sending up -- putting up a bond or
getting the money to you in an alternate way, we'd be amenable to doing that, or at least I'll
speak to my client about that. But give us an opportunity to get to a hearing, which I'm hoping
between the request of the City ofMiami and Flagstone and Shuns & Bowen, as escrow agent,
given, you know, the importance of this project that a judge will agree to hear it on an expedited
basis. And as I said, I'm confident that we will prevail. If an appeal is filed, yes, I agree with
you that that -- if that delays -- and maybe the City Attorney knows, but to the extent that an
appeal's filed, we may be able just to release the monies, unless the appellant files a bond
themselves.
Commissioner Suarez: Right.
Mr. Tachmes: So, you know, there's a lot of criteria to consider, but you have our word, we will
get you the money as soon as we can.
Ms. Bru: You know, and we will also look at, Mr. Chair and members of the Commission,
whether or not we have any kind of claim or action that we can file against Lillian Ser, because
of what she's doing with respect to her interference with our ability to get these funds.
Mr. Tachmes: And our client is also examining the same options.
Mayor Regalado: Mr. Chairman?
Chair Sarnoff Yes, Mr. Mayor?
Mayor Regalado: I think that what we're hearing is that the Commission, by January 14, which
is a Commission date, should have the information that either the hearing is over or that on or
before January 14, you will find the money to make your company current. That way, it would
give the Commission assurances that we can go on with the later part of the talks in terms of the
extension and the rent and the conditions that you all will be accepting -from the City. But it is
important not to drag this, because it makes the City to take a very difficult position to negotiate
with you if we don't have the money on hand by January 14. Andl think that it is important,
because that way, we know that from that moment that we get the money, we can move forward
on -- and we need to consult the members of the Commission, and you need to consult the
principal, and we need to have this done by February, which is the cutoff date.
Chair Sarnoff Sure.
Mayor Regalado: You understand that February 11 is the cutoff date for anything.
Brian May: Mr. Chairman?
City ofMiami Page 39 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Chair Sarnoff Yes. You're recognized, Mr. Mays [sic].
Mr. May: Mr. May, on behalf of Flagstone, we fully understand your comments. I just want to,
you know, again sort of reiterate that Flagstone is doing everything that it can do by virtue of the
letter and then authorization to release in order to make the good faith effort to pay the City the
monies that are owed. We would certainly be hopeful, while the legal proceedings take place, to
facilitate the release of the dollars that we can sit down and talk with the City about the balance
of terms going forward albeit that the rent obviously would not be discussed as you wish, Mr.
Mayor, but we would like to discuss all the other terms that would be requisite of any kind of
fourth amendment to the agreement to enter into the ground lease, so --
Chair Sarnoff And Mr. May --
Mr. May: -- again, we appreciate the comments, and you have our full faith and commitment
that we will move forward as expeditiously as possible. And certainly, Mr. Mayor, you and your
staff will, you know, have an opportunity to judge our actions prior to January 14 in terms of our
actions to move forward and to facilitate the release of the dollars. So thank you.
Chair Sarnoff Mr. Mayor, there may be very justifiable legal reasons for you wanting to tender
the escrow money and they're your legal reasons and they may be very practical ones, andl
think that this Commission should give you every reasonable opportunity to utilize that money in
paying an acknowledged debt to the City ofMiami taxpayers. I think what the Mayor and
everybody up here is saying, at a certain point in time, should that proceeding become
protracted or burdensome, that they are looking for an alternate source for you to satisfy your
indebtedness to the taxpayers of the City ofMiami. I know from the Chairman's standpoint and
my district Commissioners' standpoint, I'm going to afford you the opportunity to use dedicated
funds to the City ofMiami for very distinct and discreet legal reasons that understand, that
suspect Commissioner Suarez understands, being a lawyer as well, andl suspect implicitly as
Commissioner Carollo understands as being a CPA (Certified Public Accountant). With that
said, it is imperative to me -- andl think it would be imperative to this Commission -- that, as a
good faith gesture, Mr. Tachmes, as the attorney -in -fact and the attorney on behalf of Flagstone,
execute the agreement we've provided to you, which essentially says that you understand that
you are obligated to the City ofMiami in accordance with the agreement and to enter into the
ground lease and its amendments but not limited to the payment of consideration for use
payments without any rights of setoffs, counterclaims, or defenses. To me that demonstrates an
act of good faith and showing that the status quo ante is truly the status quo ante, and that is that
going forward it is a good faith negotiation not predicated upon beliefs, misunderstandings, or
issues, but predicated upon a financial scenario that all of America is facing, and you're asking
for some modicum of relief from the taxpayers on what are substantial rent payments on a
non -income -producing property that very likely will not produce income in the 2010 year. So to
me it's imperative -- I hope it is on behalf of my Commissioners -- that you acknowledge and feel
that you can execute this agreement, so I can make a motion that I think you would find very
receptive in terms of our moving forward and acknowledging the difficult financial times we find
ourselves in.
Mr. Tachmes: Mr. Chairman, we -- I'll acknowledge on the record that we -- our client is
releasing those monies to the City and acknowledges that they have no setoff rights against that
money. As you can understand, though, andl think as any first year lawyer also could tell you,
until I've had a little bit of a chance to review this and send it to our client, a deal of this
magnitude, I can't agree to this exact language right now and sign it on the dais today. If you
give us till the end of the day, I'm sure I could have it sent to our client and review it. But
conceptually, as I said, we have no issue and I've stated on the record; I'll repeat on the record,
our client has no interest in that money and our client has no right of setoff against that money.
City ofMiami Page 40 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Chair Sarnoff Yeah. Andl imagine, Mr. Tachmes, what I'm saying is slightly different, andl
suspect you know it is, and in addition thereto. I want an acknowledgement that there are no
defenses to the ground lease, its agreement to enter into it, and its amendments. And that is
discreetly a different position I'm trying to put you in, and that is to demonstrate to this
Commission, to this Mayor, to that City Attorney, to that chief financial officer that we're starting
in February -- or as the Mayor would say, starting negotiations in January understanding that
the City ofMiami has done nothing of any sort to place you in any kind of predicament of breach
that you have no rights or defenses to the executions of the agreements that you have placed on
behalf of your client through the taxpayers for the City ofMiami so that any negotiations to
amend that come from a mere acknowledgement of placing the taxpayers for the City ofMiami in
the best possible position they can be placed for the year 2010 moving forward and seeing how
long we can move forward under a modified position.
Mr. Tachmes: Mr. Chairman, I do -- yes, I do see the nuance in the language that you pointed
out. I'm not prepared to make that statement right now. I would ask that we -- that the City see
that we are interested in proceeding forward in good faith. We're ready to release half a million
dollars to the City. We actually want to do it today, but -- and we said we have no rights of setoff
against those funds. We've even gone so far in our meetings with the staff last week to say that
we acknowledge we have no allegation of wrongdoing against the City for anything they've done
to date. But the kind of sweeping language that you refer to is not something thatl could in
good conscience as a lawyer agree to right now.
Chair Sarnoff Andl understand that. And I'm more than prepared to table this till the end of
the day or to table this until the next Commission meeting, because I think it's -- I think an
acknowledgement that you have no defenses is important to this -- at least, it's important to this
Commissioner -- because there are defenses that I've heard mentioned, such as frustration of
purpose, Krell versus Henry. I'm seeing if Commissioner Suarez remembers his contract 101
class. And anybody who wants to know what Krell versus Henry was -- you remember the
coronation of King Henry? All right. I want to make sure that that defense is not a defense
that's going to be lodged against the City.
Mr. Tachmes: If we -- Mr. Chairman, respectfully, if we are asked to -- that the core issue the
City was looking for was the release of the money without conditions, and we're doing that
today.
Chair Sarnoff Big difference. We're talking past each other maybe as lawyers like to do, but
we're on a public record. I understand and acknowledge that this half a million dollars, you're
saying you have no rights to it whatsoever. I'm moving on from step one. Now I'm at step two.
Step two, I would like an acknowledgement either on the record disclosing that you are the
attorney -in -fact and attorney for Flagstone, and you can say categorically that there are no
defenses to the ground lease, its amendments. I prefer it be in writing so that this document has
a life of its own. But I need to hear that to move forward
Mayor Regalado: Mr. Chairman, can I --
Chair Sarnoff Yes, sir, Mr. Mayor.
Mayor Regalado: -- suggest something? On January 14, we can -- besides the update on
whatever talks there have been between the City and Flagstone, we can place that as a condition
to move forward in the talks. So today, the only thing we do to accept the money, direct the City
Attorney to intervene, wait for the hearing, and by the first meeting in January, we can make that
part of the -- to continue the talks that would end before -- on or before February 11 of 2010, if
that is something that you would consider?
Chair Sarnoff I think we can do that, Mr. Mayor. I think you --
City ofMiami Page 41 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Mayor Regalado: I mean, we don't want to come back tonight at 7 p.m., but because --
Chair Sarnoff You think work this Commission a little hard?
Mayor Regalado: But -- no, it's worth it. I think that the whole discussion in the Sunshine, it's
important that we have it, and it's important that they disclose this today. Fortunately, it wasn't
in the letter. But I would suggest that today we accept the money with the condition that the City
Attorney intervenes, and that they seek an expedite [sic] hearing, and then by the first meeting in
January, your meeting, the three of you will consider to include that as part of the talks with
other issues that you may have so we can, from the 14th on to February, continue the talks, if
that's acceptable.
Chair Sarnoff Mr. Mayor, I'm going to agree with you on that, but -- well, I'm going to ask for
one additional thing, Mr. Tachmes, and that would be --I would like -- andl hope these
Commissioners would like to see carbon copies of the letters that you send to Judge Echarte; I'd
like to see the notice of hearing, as well, sent to my e-mail (electronic); and I'd like to be
apprised of the date, time, and place of the hearing. And, Madam City Attorney, I'd like to see
our papers that indicate our interests in the property, which would include our motion to
intervene if you think that's the appropriate motion to file, any answers we make due to the
garnishment, as well. I want to bring this to a head as quickly as possible. I want to get the
taxpayers their half a million dollars as soon as possible. And with that, I'm going to -- I know
Commissioner Suarez had some comments he wanted to make. Go ahead, Commissioner Suarez,
you're again acknowledged for the record.
Commissioner Suarez: Thank you, Chairman. My only comment is -- andl think it's a -- maybe
an Achilles' heel that we happen to be attorneys as well as Commissioners in this particular
context, so we can't -- it's hard for us not to exert our attorney hat -- put on our attorney hat. I
think one of the things that maybe both the City and Flagstone's legal counsel can explore -- and
I don't know if this is incorporated -- going to be incorporated in your answer -- is, you know,
the possibility of exploring 57105 frivolous motion and attorneys' fees, because this is going to --
this not only does it delay our ability to collect these escrow funds, it's incurring a cost.
Certainly it's not free to have the City Attorney and the City Attorneyss Office -- it's not free to the
City ofMiami taxpayers to have the City Attorney and the City Attorney Office working on this,
and it's -- there's a cost. So I think it kind of ratchets up the pressure as well on the third -party
creditor, if they're filing a motion for escrow funds -- a garnishment motion for escrow funds,
that seems to me to be a completely frivolous motion, andl would -- without telling you how to
do your job and maybe suggesting to you one avenue that the City can pursue, I think pursuant
57105 sanctions against the third -party creditor is an additional way that we can recover some
of our costs incurred in this process.
Mr. Tachmes: I agree. And we'll certainly look into including that as a demand in our motion.
Ms. Bru: As I have said, we would look and see whether or not we have any causes of action
against Lillian Ser for what she's doing in interfering with our right to receive these funds,
especially in light of the fact that she's very familiar with the provisions in the escrow agreement
and the purpose for which the escrow was established.
Chair Sarnoff To the Commission, I'd like to propose a motion. I --
Mr. Hernandez: Mr. Chairman, if you would allow me, I'm sorry, before you do the motion. I
just wanted to clam for the record that the agreement to enter into a ground lease actually
expires February 1, 2010. If we agree to the February 11 date, which happens to be a City
Commission meeting date, we would in essence be extending the agreement by 10 days.
City ofMiami Page 42 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Chair Sarnoff Well, I'm not sure that we are agreeing to that at all, because I want to hear this
brought up to the next Commission, and I want to know the status of where we are at that time.
Mayor Regalado: And this is what we proffered. This is what we proffered. On January 14, you
will all have a report, because the Manager is right, the agreement ends on February 1. And,
you know, it may -- we may have the need for a short Commission meeting at --
Chair Sarnoff On February 1.
Mayor Regalado: -- the end of January, or in the last Commission meeting in January, we can
bring the agreement. I understand that they need the time, but there is a lapse of several days
that it's -- that we don't have an agreement. So, you know, Mr. Chairman, I guarantee you that
we will bring on the 14th an update of the talks. By then the City Attorney will have the details
of the hearing, I'm sure, that we all know before. But we will have -- we can incorporate what
you requested. They will have time to check that. And we may even say, well, we will bring a
finalized version of the agreement on the last meeting in January prior to the end of the contract.
So I don't think that 10 days will make or break the agreement. I mean, if -- I mean, we're
willing to work with you guys. So you have to understand their request. And I'm committed to
bring it to you on the 14th. I mean, everything that we have done and, plus, you would add some
issues that we can discuss. And then, from that day, we have 14 -- 10 days, Madam Clerk, City
Clerk. We have --from the 14th to the last Commission meeting?
Ms. Thompson: That's two weeks exactly. Two weeks to the day.
Mayor Regalado: So it's two weeks, so it's -- I mean, it's not going to be a problem to have that
finalized for you before the cutoff date of the agreement.
Chair Sarnoff And, Mr. Tachmes, I just want you to know it's imperative to me that a document
such as this be entered into by Flagstone Island Gardens, LLC, or some reasonably semblance
that acknowledges that there are no setoffs, counterclaims, or defenses to the ground lease, its
amendments thereto. I will not proceed forward on behalf of the taxpayers if that
acknowledgement does not come forward so --
Mr. Tachmes: I understand your request.
Chair Sarnoff All right. With that said, I'm going to make a motion.
Vice Chair Carollo: Before you make a motion, Mr. Chairman, I believe there's a public
hearing. I want to close the public hearing and then accept your motion.
Chair Sarnoff All right. Public hearing closed?
Vice Chair Carollo: Public hearing closed.
Chair Sarnoff I'm going to do a motion to accept Flagstone's offer to pay the $498, 000 from the
monies being held in escrow by Shutts & Bowen and to waive any rights Flagstone may have to
contest the release of such funds to the City under the escrow agreement. This payment will
likely bring Flagstone's payment obligations current and may, in fact, do that. Further agreeing
to meet Flagstone -- with Flagstone to attempt to negotiate a fourth amendment to cure the
remaining defaults under the agreement to enter into a ground lease, provided that if such
agreements cannot be reached by February 1, 2010, the agreement to enter shall expire in
accordance with its term and the City Manager shall be authorized to take all actions to
terminate as necessary all easements granted to Flagstone and any and all agreements with
Flagstone and to return to and obtain for the City all permits, governmental approvals, and
documents. That is my motion.
City of Miami Page 43 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Vice Chair Carollo: We have a motion by Chairman Sarnoff. Is there a second?
Commissioner Suarez: Mr. Chairman, can you repeat the second half of it? I'm sorry.
Chair Sarnoff Sure. I'm a court reporter.
Commissioner Suarez: Sorry.
Chair Sarnoff The agreement to enter -- this payment will bring -- wait. Let me get to where
your second part is.
Commissioner Suarez: Yeah.
Chair Sarnoff Provided that if such agreement cannot be reached by February 1, 2010, the
agreement to enter shall expire in accordance with its terms and the City Manager shall be
authorized to take all actions necessary -- I'm sorry, actions to terminate as necessary all
easements granted to Flagstone and all agreements with Flagstone and to return to and obtain
for the City all permits, governmental approvals, and documents.
Vice Chair Carollo: That's the motion again. Is there a second?
Commissioner Suarez: I second the motion.
Vice Chair Carollo: Second by Commissioner Suarez. Just -- I have one quick question. Is that
the escrow amount plus all interest?
Chair Sarnoff I would accept that as an amendment thereto.
Commissioner Suarez: Yeah. Andl was just going to say as another minor amendment maybe
not only directing the City Manager, but also the City Attorney to terminate, you know, if --
Chair Sarnoff I'll accept, as an amendment, all interest, rents, royalties, and that the resolution
shall authorize the City Manager in concert with the City Attorney.
Commissioner Suarez: Perfect.
Vice Chair Carollo: Okay, we have a motion, we have a second. All in favor, say "aye, " with
amendments.
The Commission (Collectively): Aye.
Vice Chair Carollo: Motion passes. Any opposition have the same right to say "nay. " Motion
passes.
Mayor Regalado: Thank you.
Chair Sarnoff Thank you, Mr. Mayor. This meeting -- we need a motion to adjourn.
Mr. May: Mr. Chairman.
Vice Chair Carollo: Do I hear a motion to adjourn?
Chair Sarnoff Is there a comment from --?
City of Miami Page 44 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Mr. May: Just one question, ifI may. Are we to assume that on January 14, there will be a
discussion item or a report item on the agenda?
Mayor Regalado: It will be a discussion item, and we hope that you're here --
Mr. May: Absolutely.
Mayor Regalado: -- to answer any questions from the members of the Commission. And some
ideas may be proffered at that meeting, so the Mayor and the Administration have the guidelines
to continue the talks. So, yes, it would be --
Mr. May: Very good.
Mayor Regalado: -- placed on the agenda. Do you want to do it at a time certain, Mr.
Chairman?
Chair Sarnoff Yeah, let's give them a time certain. I'd actually -- to be quite frank with you, I'd
like to bring it up while we're fresh first thing in the morning.
Mayor Regalado: Okay.
Chair Sarnoff So why don't we do it at 9 o'clock?
Mr. May: Sure.
Mayor Regalado: Okay, we'll be here.
Chair Sarnoff And --
Vice Chair Carollo: (UNINTELLIGIBLE) with me.
Chair Sarnoff -- we'll do a time certain 9 o'clock. And Mr. May, you've done a magnificent job.
Continue the job that you're doing. Just remember, it's nothing personal.
Mr. May: Thank you for your consideration. Thank you, seriously.
Chair Sarnoff Thank you. All right, motion to adjourn?
Commissioner Suarez: Second.
Chair Sarnoff All in favor?
The Commission (Collectively): Aye.
END OF RESOLUTIONS
City of Miami Page 45 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
ORDINANCE -SECOND READING
SP.3 09-01136 ORDINANCE Second Reading
City Manager's
Office
AN ORDINANCE OF THE MIAMI CITY COMMISSION, AMENDING THE
CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED (THE "CODE"), TO
AUTHORIZE THE INCREASE OF VARIOUS FEES THROUGHOUT THE
CODE; CONTAINING A SEVERABILITY CLAUSE AND PROVIDING FOR AN
EFFECTIVE DATE.
09-01136 Summary Form FR/SR 1-14-10.pdf
09-01136 Legislation FR/SR.pdf
Motion by Vice Chairman Carollo, seconded by Commissioner Suarez, that this matter be
CONTINUED PASSED by the following vote.
Votes: Ayes: 3 - Commissioner Carollo, Sarnoff and Suarez
END OF SECOND READING ORDINANCE
City of Miami Page 46 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
DISTRICT 2
CHAIRMAN MARC DAVID SARNOFF
D2.1 09-01056 DISCUSSION ITEM
PARKING SPACE REQUIREMENTS:
DISCUSSION ABOUT PARKING SPACE REQUIREMENTS FOR
MULTI -FAMILY BUILDINGS, FOR OFFICE BUILDINGS, FOR AFFORDABLE
HOUSING PROJECTS, FOR BUILDINGS WITH RETAIL TENANTS AND FOR
MIXED USE BUILDINGS.
GIVEN THE FISCAL CRISIS THAT AFFECTS THE CITY, STATE AND
NATIONAL GOVERNMENTS AND THE NECESSITY TO REDUCE FUNDING
FOR PUBLIC TRANSPORTATION HOW HAS THE CITY OF MIAMI
RESPONDED TO THE NEW REALITIES?
DISCUSSION ABOUT THE PLANNING DEPARTMENT REVIEWING
REQUIRED PARKING SPACES PER UNIT AND/OR PARKING SPACES PER
SQUARE FOOT. DISCUSSION ABOUT REQUIRING MORE PARKING
SPACES ON -SITE THAN CURRENTLY MANDATED.
09-01056 E-mail.pdf
DISCUSSED
Chair Sarnoff All right. What else on the supplement [sic] agenda can we get done?
Priscilla A. Thompson (City Clerk): Okay. You have, under your district pages on
supplemental, D2.1, parking space requirements.
Chair Sarnoff All right. Let's -- I'll do my District 2 page item. Parking space requirements,
about the requirements for multilevel -- multifamily for office building affordable housing
projects. What I want to bring to this Commission's attention is that -- and it's really true about
affordable housing. Any time we give bonuses for affordable housing, we oftentimes grant them
a variance in terms of the amount of parking requirement that they have. About four months
ago, I toured the City with approximately half of all of the new high-rise buildings, and a
substantial amount of them were afforded parking variances. And to my amazement -- 'cause
when we sit here as Commissioners, we're told half of these parking pedestals remain empty.
That was not what I saw. And it may very well be the parking pedestals are empty, but I can tell
you on the streets, they are parked everywhere. And on Biscayne Boulevard, there were two
projects that were granted some significant parking variances before I became Commissioner,
and again, I didn't walk up and down the parking pedestal to see whether they were or were not
filled. What I can tell you though is around 18th Street, 19th Street, they are parked all over the
place. I think Elvis Cruz actually took some photographs of certain affordable housing projects.
Again, I'm not here to tell you that the parking provided indoors is taken or not taken. I wouldn't
know. But I am here to tell you what you visually see when you go up and down the streets, and
it seems to congregate around the buildings that we give these parking variances to. And one of
the things you might want to consider, it was my hardest part to digest in Miami 21 was that even
Miami 21 reduces the required parking. Now in the higher -end substantial luxury buildings,
rarely will you ever see anyone take that kind of chance on a building and reduce the level of
parking; they actually increase it. But when you go a little bit west and substantially in a lot of
City of Miami Page 47 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
your neighborhoods, you're going to see people taking advantage of the parking decrease, 'cause
it's obviously a lot of money to build a parking space. You need to be cognizant, I'm sure you
are, that as we sit here as a board and everybody comes before us and you're going to hear
affordable housing and how laudable this project is -- oh, and by the way, we'd like a 30 percent
parking waiver. Sounds great, and in the abstract, seems like it would work. However, I know
you go to your neighborhoods. I know you must have four pairs of shoes by now that have been
worn out -- well, both of you, actually. You both lost -- God, you were what, 220 pounds when
you started and you were 230? You both worked very hard and walked very hard, so I know you
know your neighborhoods. Just be cognizant of the reductions in parking. Miami 21 gave a 30
percent reduction if the site was located within a quarter of a mile of what they call a transit
corridor or a half a mile radius of transit, TOD, which is a transit -orient development. Andl --
it's the part ofMiami 21 I found difficult. But certainly something that's going to come back to
us next Commission, you're going to hear about some affordable housing projects and how
they're going to ask for waivers. And Elvis, if you have a photo display, that might tell the story
a little better.
Elvis Cruz: Yes. Yes, I do. And ifI can make some comments --
Chair Sarnoff Sure.
Mr. Cruz: -- Mr. Chair? Sure. Elvis Cruz, 631 Northeast 57th Street, secretary, Miami
Neighborhoods United, speaking on behalf of that organization on this very important issue that
has affected neighborhoods throughout the City. Again, Commissioners Suarez and Carollo,
there has been a prevalent mindset, a group think that has pervaded this city for a number of
years, and I'm hoping that your fresh look will notice that the emperor isn't wearing any clothes
on this issue. Miami 21 will decrease the parking requirements for many building types which
were already too weak to begin with, often on the rationale that less parking is needed if public
transportation is nearby or if it is affordable housing. Now the problem is that idea simply
doesn't pass the common sense test. Even if a residential building is near mass transit, not
everyone has a destination that's served by mass transit. The latest trend in urban planning is
called pedestrian friendly. And while researching this, I found a very interesting quote. It said
98 percent of all citizens are in favor of pedestrian friendly as long as it's the other 2 percent
that's doing the walking. Pedestrian friendly usually manifests itself as car unfriendly in the
hopes of forcing the public to live without a car, whether they want to or not. This is coercive
social engineering, and it's a gift to developers who no longer have to build as many parking
spaces. So use your common sense and ask yourself some very simple questions. How many
driving age adults do you know who don't have a car? How many couples do you know who
only have one car? When was the last time you took the bus? How many of your friends and
family take the bus? How can we expect someone to pay hundreds of thousands of dollars to
own a condo unit but not expect them to want to own a car? Anecdotal evidence proves that
even the previous parking requirements for buildings causes harmful spillover parking for the
area around it, and Miami 21 changes are even worse. And here's some pictures. Here's a
condo on Coral Way. After it was built, spillover parking happened in the neighborhood,
resulting in a residential parking zone where the citizens now have to pay for a permit to park in
front of their own house. The Parking Authority would consider this to be a solution. To the
citizens, this is part of the problem, and the problem was that that condo you see there was built
without sufficient parking spaces. Here is a low-income housing project. It was built with a $24
million tax subsidy. The developers came before this Commission on April 26, 2007 and they
requested and received a parking reduction. They argued that affordable housing residents
don't have enough cars to justify building the parking spaces. They said "Our overflow parking
is already built into this development." But if you visit that location any morning, you can see 30
cars parked on the street and along the railroad tracks across the street. Now those developers
did say on the record that if there were a parking problem, the City could require them to add
floors to the parking garage which was being designed to accept additional floors, if needed. I
hereby formally request that you do so. In closing, I urge you to not be fooled by the notion that
City ofMiami Page 48 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
City parking requirements are currently acceptable or should be lessened. This is harmful to
both the neighborhoods around the building and to the residents of the buildings themselves.
Current parking requirements should be increased, not decreased. Commissioner Sarnoff, thank
you for bringing this item to the agenda. It's much appreciated. Commissioners Carollo and
Suarez, please see that the emperor isn't wearing any clothes and that parking space reductions
only help developers' interests and hurt the public interest. Thank you.
Chair Sarnoff Thank you, gentlemen, for listening to this. And something I just think -- if you
could just keep in the back of your mind when you're going down the street and you see a
medium -density high-rise, ask yourself, is this affordable housing and did this guy or this
developer get a reduction? 'Cause there will be reductions coming in front of us, as you heard
this morning. I think they said we're going to come in asking for a 20 percent reduction. It's a
beautiful project, but remember, we took -- we did push a project on a community -- well, we put
a project on a community 'cause we thought it was the right thing to do. They're going to come
back to us, andl guarantee one of the things that that community is going to object to is the
inadequate parking that we present. Let's be careful that we give them a nice project that has
adequate parking. So, all right. Flagstone. Still no Flagstone.
Vice Chair Carollo: I suggest we take a recess and --
Chair Sarnoff All right. Let's take our -- we're going to recess for 20 minutes, gentlemen? Is
that all right? How long do you need?
Vice Chair Carollo: I don't need much, 15 (UNINTELLIGIBLE).
Chair Sarnoff Let's take a 15-minute recess.
END OF DISTRICT 2
City of Miami Page 49 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
PART B: PLANNING AND ZONING ITEMS
PZ.1 09-01421zt ORDINANCE First Reading
AN ORDINANCE OF THE MIAMI CITY COMMISSION AMENDING
ORDINANCE NO. 13114, PASSED ON OCTOBER 22, 2009, ADOPTING A
NEW ZONING CODE, TO BE KNOWN AS THE "MIAMI 21 CODE", FOR THE
ENTIRE CITY OF MIAMI, FLORIDA, IN ORDER TO EXTEND THE ACTUAL
EFFECTIVE DATE OF ORDINANCE NO. 13114 FROM FEBRUARY 19, 2010,
TO MAY 20, 2010; AND ALSO TO EXTEND THE REPEAL OF ZONING
ORDINANCE NO. 11000, TO MAY 20, 2010; CONTAINING A SEVERABILITY
CLAUSE AND PROVIDING AN EFFECTIVE DATE.
09-01421zt CC Legislation (Version 1).pdf
09-01421zt CC FR 12-17-09 Fact Sheet.pdf
09-01421zt.-Submittal-Patrick Range.pdf
09-01421-Submittal-Commissioner Sarnoff.pdf
LOCATION: Citywide
APPLICANT(S): Pedro G. Hernandez, City Manager, on behalf of the City of
Miami
FINDING(S):
PLANNING DEPARTMENT: N/A.
PURPOSE: This will extend the actual effective date of the adoption of the new
"Miami 21 Code" and the "Miami 21 Atlas" for the entire City of Miami to May
20, 2010.
Motion by Commissioner Suarez, seconded by Vice Chairman Carollo, that this matter be
PASSED ON FIRST READING PASSED by the following vote.
Votes: Ayes: 3 - Commissioner Carollo, Sarnoff and Suarez
Chair Sarnoff All right, I don't see the -- yes, he is here. Instead of going to the CAs (Consent
Agendas), what I'd like to do is, I believe, go into the supplemental agenda, gentlemen. It should
read your Thursday, December 17, supplemental agenda. IfMr. Mayor would not mind, I'd like
to do PZ.1 first. And I believe, Mr. Mayor, that is your extension for Miami 21, if you'd like to
present?
Mayor Tomas Regalado: Good morning, Mr. Chairman, Mr. Vice Chairman, Commissioner
Suarez. On your agenda you have a proposal to extend for 90 days the Miami 21 project. When
we first announced this possibility and we place it on the agenda, some people said that the
intent was to delay, to kill Miami 21. That is not the intent of this proposal. Miami 21 was
approved by the City ofMiami Commission and, of course, we respect them -- the majority. And,
of course, I am very happy to continue with the work ofMiami 21. However, there were some
issues that needed to be addressed, especially by new Commissioners whose districts will be
impacted by Miami 21. The main issue is Miami Neighborhoods United. As we all know, Miami
Neighborhoods United worked for more than three years with the staff and the different
community groups, and they presented many amendments. Of those amendments, very few, if
any, were included in the last draft that was approved finally by the Miami City Commission.
That is an important issue, because Miami 21 was announced as the residents' project and, as
such, the residents had input in some of the meetings. There were, we were told, hundreds of
meetings, butl will tell you that there were several meetings where the input of the residents
City ofMiami Page 50 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
were heard. The other meetings were with developers and attorneys and staff. So at the end,
Miami 21 was approved, and there were some amendments, minor, some; others, substantial, in
terms of different corridors that needed to be addressed. Because of area Commissioners
pushing for their ideas, some of these amendments were not included. So my request to you is to
extend for 90 days the implementation ofMiami 21 in order for the new Commissioners to have
time to meet with the different neighborhood groups and of course, the other two Commissioners
-- I notice chair is missing -- to have the opportunity to look at Miami 21, because we will live
with Miami 21 for the rest of our generation and the next generation. And it is important, I
know, that there are some projects that have been designed or are in the process of being
designed as Miami 21 would have wanted it, but that's not something that it would prohibit them
from continue, because Miami 21 will be implemented when you decide if we should include
some of the minor amendment or substantial amendments or whatever the case you decide or just
leave it as it is. So it's for you to decide. I know that the Chairman was the only person on this
Commission now that voted in favor ofMiami 21, andl do respect that. Andl -- as part of the
Administration and as Mayor, I will pledge to you that Miami 21 will be implemented, but with
the input of the new members of the Commission. It is important that you decide how do you
want to go about it, if you want to take time to meet with the Administration and the
neighborhoods, if you want to examine what is going on the code, any and all. Andl know that
you all are overwhelmed with what we have ahead, but it's important because this project will be
the roadmap for development in the City ofMiami for the next decades. There's also one issue
that it was called to our attention by members of the neighborhoods association, and it is the
noise ordinance, whether or not that ordinance wouldn't impact the residential in buildings that
are designed with Miami 21 guidelines, and it's -- it will be up to you to decide if that ordinance
should be amendment [sic] for that reason or it should be kept as it is and deal with the different
aspects of the ordinance and the work/live setting ofMiami 21. So that's the only request. It's
just an extension. It's not an intent to kill. I respect the decision of the Commission, andl will
support the decision of the Commission in approving Miami 21. Andl just hope that we have the
time to look at the different aspect of the legislation so maybe we can amend, and if we can just
place one or two amendments that would have the input of the residents, to me that's very
important because, after all, we're here to work for the residents. So that's, Mr. Chairman, the
proposal.
Chair Sarnoff Thank you, Mr. Mayor. Prior to bringing it back to the Commission for a
motion, I'm going to allow the public. Anyone from the public wishing to be heard on this PZ.1
supplemental issue?
Mariano Cruz: What is the issue?
Chair Sarnoff Miami 21.
Mayor Regalado: Extension ofMiami 21. Extension for 30 -- 90 days ofMiami 21.
Mr. Cruz: To delay.
Mayor Regalado: Ninety days.
Mr. Cruz: Ninety, okay.
Chair Sarnoff Just state your name for the record.
Mr. Cruz: Mariano Cruz, 1227 Northwest 26th Street. I'm not going to mention the different
boards of which I belong because that's -- no. That's not the point here. The point here, I am a
resident of the City ofMiami. Maybe I am a fee payer, or you know I pay taxes indirectly,
whatever. But Miami 21, I was in favor ofMiami 21. You know why? It will simplify the
process, 'cause I am tired -- if you want to put anything of value, you got to hire one of the land
City ofMiami Page 51 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
use, high price attorneys here. The people in my neighborhood, they don't have the money to
hire Lucia Dougherty, and they are not Jorge Perez or Tibor Hollo or any of those people. No.
They are simple people, but reside in the City ofMiami. And maybe those people pay more in
taxes, according to their income that the millionaire from Coconut Grove, okay. So I am for the
delay because there are many things in Miami 21 that were not say [sic]. Planners from the
outside -- planners -- when we have a Planning Department? What are those planners doing
here in the City? High -price Planning assistant director to blah, blah, blah, blah, and they have
to hire planners. They didn't hire Francisco Garcia that was forced to resign from the City
Planning Department, and he could make more money working for Elizabeth Plater-Zyberk as a
consultant, and very legally. Consultant, $100,000. At the end of the year, you get a 1099. You
pay 20, 25,000, and everything is legal. All that income becomes legal because as soon as you
pay the IRS (Internal Revenue Service) -- remember, Al Capone. The only thing they could
caught Al Capone was he didn't pay the IRS. And here, as long as you pay the IRS, you clear,
okay. Consultant fees. Look at -- over $3 million cost Miami 21. And the Herald can say
nothing. Full pages advertising in the Herald where the City could have mail to the people that
came the first time. They could have mailed letters or something. I am simple. I had to comply
with the general circulation newspaper. Very simple. No. Full pages, full pages. Twenty
thousand dollars page, eighteen thousand dollars going to where? To McClatchy in
Sacramento, McClatchy that owns -- bought Knight Ridder. You know why? Because the
bottom line here, what matter is the cash.
Chair Sarnoff Finish up.
Mr. Cruz: I am for delaying that for 90 days, because then we'll have the full Commission here.
Chair Sarnoff Thank you.
Mr. Cruz: Thank you.
Chair Sarnoff Anybody from the public wishing to discuss this matter? The public hearing is
opened. The public hearing is now closed, coming back to the Commission. Is there a motion?
Commissioner Suarez: I'll make the motion and would like to discuss it, please.
Chair Sarnoff All right. There's a motion. Is there a second?
Vice Chair Carollo: Second for discussion.
Chair Sarnoff All right. For discussion, Commissioner Suarez, you're recognized for the
record.
Commissioner Suarez: Thank you, Chairman. You know, from a public policy perspective, I am
not a big fan. Andl think, throughout the campaign, I've been very upfront about not being a
huge fan ofMiami 21 simply because, you know, I felt like the amount of money that was spent
on Miami 21, I still haven't been able to get a handle on how much money exactly was spent on
Miami 21. I feel from a public policy perspective, it could have gone to at least some better uses,
such as affordable housing, which is a big, big need in our community, but nevertheless, that was
an administrative decision to spend the money at the time to completely redo our zoni ication
[sic] Code. Andl think, you know, the public has had an incredible amount of input on that
Code. I think -- I agree with the Mayor that -- andl appreciate the Mayor bringing this issue to
our attention. I believe that the public has vetted it to a certain extent. I still think there is more
that we can do from the perspective of having public input, making -- maybe making changes to
Miami 21 before its implementation, and also getting input from the business community to make
it better. I agree with the Mayor's position that -- I've only been a Commissioner for three
weeks. I think it's three weeks in two days. And as a real estate attorney, I'm in a unique
City ofMiami Page 52 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
position -- although I'm not a land -use attorney, Mariano, just so you know. I'm not a land -use
attorney, so don't worry about it. Hey, I'm a real estate attorney. But I'm in a unique position to
understand Miami 21 and still, yeti need more time to fully be briefed on it and understand it to
the extent where I can be as much a believer in Miami 21 as I think some of the other residents
and the Chairman is. I think -- I'm very open to that. I think it's important for -- that the Mayor
stated -- because I did receive about six or seven e-mails (electronic) from concerned citizens
yesterday that were concerned about the possibility that this was one step towards repealing
Miami 21, andl thinkl --I agree with the Mayor, andl appreciate the fact that he stated it on
the record, that this is not what we're doing here today. And what we're doing here today simple
is giving the Commissioners more time, giving the public more time, giving the business interest
and the legal community more time to, you know, vet Miami 21 and implement changes that will
make Miami 21 work for the best interest of the citizens of the City. Redoing a zonification [sic]
code is a very ambitious project. I mean, you're doing -- you're changing one wholesale aspect
of the way the City works, so I think doing it carefully is something that makes a lot of sense.
And also, you know, I think the timing of it -- as it stood today, we would have the full
five -member Commission taking office January 20, andl believe the enacting date was like the
first week of February, so they will be struggling with the same kind of things that we're
struggling with in terms of getting up -to -speed on all the matters that we're get getting up to, and
then have to understand Miami 21 within a basically two -week time frame. So, you know, again,
I just want to reiterate that this is not one step towards repealing it. Regardless of my public
policy concerns, those decisions were already made by a past Administration. Miami 21 was
vetted. I went to some of the community meetings as a board member for Coral Gate
Homeowners Association to become familiar with Miami 21 and its impact on the residences,
and so -- you know, that's all want to say. I appreciate the Mayor bringing this item forward.
It does help us, as Commissioners, understand Miami 21 better, and llook forward to beginning
that process. I've already started to set meetings with people who will further educate me so that
I can be as much of a fan ofMiami 21 as certainly as the Chairman is.
Chair Sarnoff Thank you. Commissioner Carollo.
Vice Chair Carollo: Thank you, Mr. Chairman. I think everyone's come to realize -- and if they
haven't soon, they will -- that I take great responsibility and pride as being a steward of the
people's money, the taxpayers' money, so I do want to start by saying that I'm not exactly sure
how much of taxpayers' money we have used for Miami 21, but have a feeling that I will think
it's way, way too much. Saying that, it seems to me that the main argument, Mr. Mayor, that
you're making and hearing Commissioner Suarez, my colleague, is that we all need more time to
understand Miami 21 or to better see all the different facets of it. As one who can tell you that
went to the very first meeting ofMiami 21 and many others after, I also will say that I'm not one
who rushes into things, andl think we need more time. In addition, I think have established
that pay attention to details, being an auditor, a CPA (Certified Public Accountant), and a
former investigator, I do pay a lot of attention to details. And the extra time, I think, will
behoove all of us. Even though sometimes when I pay attention to details, some people don't like
it and they throw little hints here and there, but yes, the truth of the matter is thatl do pay
attention to details. And --
Chair Sarnoff You know, minutemen were great people.
Vice Chair Carollo: -- with that said, it appears to me like the Commission -- andl don't want to
speak for any Commissioner here -- but it appears to me like the Commission is leaning towards
the extension. However, I also want to point out that if we feel we all need more time to meet
with community groups, business leaders, the Administration for this item, then in the regular PZ
agenda, PZ.9 through 15 also deals with Miami 21 as far as codifying it, which means that we
should also need more time for that. I think it's only fair. If we need more time for Miami 21, I
think we will need more time for any PZ items that deal with Miami 21. So I want to leave that
for the record. I'm sure once those PZ items come up, then I will address it, andl will be saying
City ofMiami Page 53 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
that I want to defer at least 60 days for us to review it. With that said, Mr. Chairman, I give you
back the floor.
Chair Sarnoff Thank you, Commissioner Carollo. Mr. Mayor, I want to thank you for enlisting
your support; that it is not the intention of this Administration in any way, shape, or form to
derail Miami 21. And to the Commissioners here, you will learn on a number of issues I call --
or I would refer to it as much blood was spilled on the dais and much blood was spilled on the
dais on Miami 21. I probably have spent in excess of probably 97 meetings on Miami 21. I'm
not going to tell you anything in this world could not be made better, but the birth process
occurred and the birth process happened, and there is a Miami 21. And like it or not, the actions
of three Commissioners govern what goes on in the City ofMiami by way of -- for instance, both
the Mayor andl did not vote for the baseball stadium, but you will find us now supportive of the
baseball stadium simply because three people voted for it. There may even be an irony involved
in that, because they're no longer here. However, that being said, you will also stand upon the
shoulders of those before you, and Miami 21 in fact did pass. I have no problem with granting
the 90-day extension, but will say one thing that you all should take strong, strong, strong
cognizance of. The real estate community requires predictability and confidence in this
Commission; predictability in knowing that the ordinances that we pass are enacted because --
let me use you -- a very hard example. And met with these folks yesterday. I tried to get them
to meet with each of the other Commissioners. This is called Santander Bank Tower. This will
be the signature building in the City ofMiami. It is right next door to what think is the best
building in the City ofMiami, which is the Espiritu Santos [sic] building. This building is built
on Miami 21 standards. For them to build this building under Miami 21, they spent in excess of
$1 million. And they came in to me and they said "We may not even build this building if you go
back to 11000. " And all any real estate person wants from their government is predictability
and confidence and that is what this Commission has got to bring. There's nothing wrong with
changing Miami 21. I'm well aware of the issues that Commissioner -- I apologize -- Mayor. He
used to be my Commissioner -- of what Mayor Regalado is bringing up, and those issues should
be vetted, and there may be amendments, and you gentlemen may have amendments as well, but
I want to give you a little bit offorewarnance [sic]. On May 1 -- or whatever this May deadline
is -- we have got to be predictable in coming out with a code that the real estate community can
operate under. This will not only bring over 2, 000 jobs, it will bring a new bank, the second
largest bank in the world. And let's face it, folks, the first largest bank in the world is Chinese, so
you're never going to beat that one. But the second largest bank in the world will make its home
in the City ofMiami and that's big and that's a plus, and they did it under Miami 21 because they
believe in this city. They believe in that ordinance. So I just want to impress upon each
Commissioner that we stand upon the shoulders of those that are before us, and like it or not, we
follow what they did to the best of our ability. So with that said, we have a motion and we have a
second.
Maria J. Chiaro (Deputy City Attorney): Mr. Chair.
Chair Sarnoff Yes, ma'am.
Ms. Chiaro: Before you vote, even though your agenda does not indicate such, I am informed,
by way of e-mail, that this item was advertised for 10 o'clock. I suggest that you --
Chair Sarnoff I asked that question and they said it was not advertised for 10 o'clock.
Ms. Chiaro: It is not on the agenda as 10 o'clock, but I received an e-mail that said it was
indeed advertised for 10 o'clock, so you can keep this discussion. I just suggest that you not vote
until after 10 o'clock, you reopen the public hearing, and if someone shows up at 10 o'clock that
wishes to speak, that you take those comments.
Chair Sarnoff Okay. Now I have a little bit of an issue with either your office or the Clerk's
City ofMiami Page 54 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
office. I specifically asked this morning was this a specially advertised agenda, and they said
"No, it was not." It does not indicate anywhere on the agenda to be heard after 10 o'clock.
How, as the Chairman, am I supposed to know, once I've been told something is not going to be -
- or not required at a certain time, I take the matter up, this Commission debates it, and then it
may needs [sic] to redebate [sic] it. How do I prevent that from happening in the future, Madam
Clerk -- Madam City Attorney?
Ms. Chiaro: As I said, I had received an e-mail not three minutes ago that it was advertised for
10 o'clock. I checked the agenda --
Chair Sarnoff All right, then let me go to the Clerk.
Priscilla A. Thompson (City Clerk): Commissioner, we do not handle the advertisings for P&Z.
We checked the agenda as well, as you started the discussion, and it is not, I repeat, not listed on
the agenda for 10 o'clock. So the only thing that I can say is that we had no knowledge -- our
office had no knowledge of this being advertised for 10 o'clock, and it's not on the agenda.
Chair Sarnoff Who's the person responsible for P&Z, advising the Chairman what time things
are to be heard? Anyone in the audience, including this entire regime, can tell me that answer?
Ms. Chiaro: The ads are prepared by Hearing Boards. It was advertised for 10 o'clock.
Chair Sarnoff I'm sorry. Who's the person responsible, with a heartbeat and a pulse?
Ms. Chiaro: The Hearing Boards, Anel --
Chair Sarnoff Who's the Hearing Board person?
Pedro G. Hernandez (City Manager): It's Anel Rodriguez.
Chair Sarnoff And is she here?
Ms. Chiaro: He.
Mr. Hernandez: No. Anel.
Chair Sarnoff He. Okay, Anel, come up to the mike.
Anel Rodriguez (Administrative Assistant II, Hearing Boards): Good morning, Mr. Chair,
Commissioners.
Chair Sarnoff Good morning, Anel. Does -- anywhere on this particular supplemental agenda
does it indicate a date certain for PZ.1 ?
Mr. Rodriguez: No, it does not.
Chair Sarnoff Time certain. I apologize, sir.
Mr. Rodriguez: No, it does not.
Chair Sarnoff Why does it not?
Mr. Rodriguez: I guess it was an oversight. And you know, the items were brought to me last
week, very last minute. The P&Z items are usually advertised after 10 a.m. They were
advertised after 10 a.m. They did not meet the 10-day rule, however, so -- you know,
City of Miami Page 55 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
unfortunately, it was an oversight on the agenda, but I [sic] can rest assure that that won't
happen again.
Chair Sarnoff Thank you, Anel.
Mr. Rodriguez: Apologize.
Chair Sarnoff Okay. All right, so what we'll do is table PZ.1.
Commissioner Suarez: Mr. Chairman.
Chair Sarnoff Yes, sir. You're recognized.
Commissioner Suarez: Can I just say one thing in response to what you said? I just want to --
since we have a little bit of time -- state that on matters such as this, I think you brought up a
very, very valid concern when you brought to our attention the building, which is a, by the way,
beautiful looking building that would create thousands and thousands of jobs for the City of
Miami. And as Commissioners, we can only make decisions based on the information that is at
our disposal, so I encourage members of the business community to come forward obviously, to
their district Commissioner with issues that they have, but also to come forward to the other
Commissioners, because it was reported in the Miami Herald that, you know, there was a project
that was in jeopardy as a result ofMiami 21, so it's good to hear also the counterargument. If
there's a project in jeopardy because of a delay in Miami 21, you know, I encourage members of
the business and legal community to come to my office after, of course, having met with their
district Commissioner and bring it to my attention. Obviously, all these things are happening
very, very quickly, and there's no one -- no one's at fault for that, and we're trying to
accommodate everyone to the maximum extent possible, but I just wanted to mention that.
Chair Sarnoff And just to give you an indication, Commissioner. I was offered that meeting on
four hour's notice. I broke my schedule because they were coming in from out of town. I asked
them both to walk over to both of your offices. I don't know that they did or didn't. I said it was
imperative that you both learn -- I call it the yin and the yang. There are those that want to
delay 21 and those that, as a result of 21 being delayed, will be -- could be substantially
harmed. Andl don't know what the outcome of that was. I know that had to completely change
my day around to take that meeting. I had no problem with it. I'm the district Commissioner
where it's going to happen, but a building like this -- and to have -- it's a Spanish bank. It is the
second largest bank in the world -- to have them as -- their headquarters here in Miami, I think
is a feather in all of our caps. Andl know your particular wife, I think, works right down the
block. Andl think the three signature buildings in Miami is Espiritu Santo, the Santander, as
well as Four Seasons. I don't think there's a prettier block in all ofMiami, and there may not
even be a prettier block in probably about 50 other cities in America, so --
Mayor Regalado: Mr. Chairman.
Chair Sarnoff Yes, sir, Mr. Mayor.
Mayor Regalado: I did learn of the building yesterday, and I think it's a very important project
for the City. Andl just want to, once again, repeat my commitment that this is not in any way an
intent to derail Miami 21. In fact, what I would propose -- and you're right, I saw the rendering;
this is a signature building. And what we should do as the Administration and the elected body
of the City is to pledge that we will have some kind of a task force within the departments to help
out in expediting plans and inspections for that building. And let me tell you, we did that several
years ago when the communications hub was built in Park West here in downtown Miami, and it
was successful because it saved a lot of time, and they were under a timeline. So not only I am in
full support of the building, of the whole project, but think that we should do more and just not,
City ofMiami Page 56 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
you know, be at the groundbreaking and look happily, but we should commit that they will have
our support in terms of facilitating the different process that they will have to go through, the
Zoning Department, the Building Department, the Fire Department, everything that that kind of
a building needs. So I just wanted to say that I am very supportive. And no fear; there is no
intent here of derailing Miami 21.
Chair Sarnoff Thank you, Mr. Mayor. What we'll do is -- and to move this agenda along, we'll
table this discussion. We'll take the vote, and I'll open up a public hearing in 15 minutes.
[Later...]
Chair Sarnoff Mr. Mayor, we're going to bring up PZ.1. I'm going to open up the public
hearing on PZ.1. And Madam Clerk and Madam City Attorney, am I allowed to bring up our
comments as previously discussed earlier so we don't need to rediscuss it?
Ms. Chiaro: Yes, Mr. Chairman.
Chair Sarnoff All right.
Ms. Thompson: I just want to make sure for the public to know. This is PZ.1 --
Chair Sarnoff I was going to say, Madam Clerk. You're beginning to school me. It reminds me
of my Third Grade teacher, but we won't get into that. Miami 21, PZ.1. This is a public hearing.
The public hearing is now opened. This is brought up by the Mayor earlier today for a 90-day
extension. He was very, very clear on the record that this is not, in any way, shape, or form to
harm Miami 21. The public hearing is now opened. The public hearing is now closed, coming
back to the Commission. Do we have a motion?
Commissioner Suarez: I will make the motion again.
Chair Sarnoff All right. And do we have a second?
Vice Chair Carollo: Second. However, I do want to say that just like I said before, it seems like
this Commission is (UNINTELLIGIBLE) for extension and should we do that, I also want to
consider -- in the general PZ agenda, PZ.9 through 15 deal with Miami 21. I would also wish
for those to be extended or deferred for at least 60 days, in light of what everyone's argument
has been, which means they want more time to look into it and so forth. So I want to put that
into the record.
Chair Sarnoff Go ahead, Mr. Manager.
Mr. Hernandez: I agree with Commissioner Carollo with maybe one exception, PZ.9, since PZ. 9
deals with bars, lounges, et cetera, that -- or at least that maybe you want to see or have an
ability to act on it sooner. The others, I do totally agree, they are more, you know, Miami
21-related and can wait.
Chair Sarnoff All right. Well, let's -- we'll address them as they come up. So we have a motion.
We have a second. Any further discussion, gentlemen? Hearing none, seeing none --
Ms. Thompson: It's an ordinance.
Chair Sarnoff I apologize. It's an ordinance. I was testing the City Clerk to see if she was
listening.
Ms. Chiaro: Mr. Chairman, and l just want to make it clear that this is a procedural change to
City of Miami Page 57 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
our Zoning Code. It's procedural only; there are no substantive changes to Miami 21. When
this comes back on second reading, it will merely extend the effective date with no substantive
changes. There are, if you extend the effective date ofMiami 21, some items that will need to be
dealt with administratively, as you alluded to in your earlier discussion, that is some reliance on
an effective date, and so we will deal with that administratively. But again, this is procedural
only. It did not go to any of the lower boards because there were no changes to the substance of
the Zoning Code.
The Ordinance was read by title into the public record by Deputy City Attorney Maria J. Chiaro.
Ms. Thompson: Your roll call.
A roll call was taken, the result of which is stated above.
Ms. Thompson: The ordinance has been passed on first reading, 3-0.
PZ.2 09-01422zt ORDINANCE First Reading
AN ORDINANCE OF THE MIAMI CITY COMMISSION AMENDING
ORDINANCE NO. 13115, PASSED ON OCTOBER 22, 2009, WHICH
AMENDED ORDINANCE NO. 10544, THE MIAMI COMPREHENSIVE
NEIGHBORHOOD PLAN OF THE CITY OF MIAMI, FLORIDA, IN ORDER TO
EXTEND THE ACTUAL EFFECTIVE DATE OF ORDINANCE NO. 13115
FROM FEBRUARY 19, 2010, TO MAY 20, 2010; CONTAINING A
SEVERABILITY CLAUSE AND PROVIDING FOR AN EFFECTIVE DATE.
09-01422zt CC Legislation (Version 1).pdf
09-01422zt CC FR 12-17-09 Fact Sheet.pdf
LOCATION: Citywide
APPLICANT(S): Pedro G. Hernandez, City Manager, on behalf of the City of
Miami
FINDING(S):
PLANNING DEPARTMENT: N/A.
PURPOSE: This will extend the effective date of the Land Use designations
within the interpretation of the 2020 Future Land Use Map section of the Future
Land Use Element; and extend the effective date of the change to the 2020
Future Land Use Map designations of specific properties in accordance with the
Miami 21 Atlas.
WITHDRAWN
Chair Sarnoff Madam Clerk, I understand that PZ.2 is withdrawn from the City Clerk [sic], but
they want to put it on the record.
Julie O. Bru (City Attorney): PZ.2 would have been extending the effective date of the comp.
plan amendments, but since that already took effect by its very terms, we're withdrawing it.
Pedro G. Hernandez (City Manager): And that's PZ.2 in the supplemental.
Chair Sarnoff Right. Would have been page 8, gentlemen, in your supplemental agenda.
City ofMiami Page 58 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
PZ.3 09-01423zt ORDINANCE First Reading
AN ORDINANCE OF THE MIAMI CITY COMMISSION AMENDING
ORDINANCE NO. 13116, PASSED ON OCTOBER 22, 2009, WHICH
AMENDED CHAPTER 23 OF THE CODE OF THE CITY OF MIAMI, FLORIDA,
ENTITLED "HISTORIC PRESERVATION", TO REFLECT THE PROVISIONS
AND LANGUAGE OF THE MIAMI 21 CODE; IN ORDER TO EXTEND THE
ACTUAL EFFECTIVE DATE OF ORDINANCE NO. 13116 FROM FEBRUARY
19, 2010, TO MAY 20, 2010; CONTAINING A SEVERABILITY CLAUSE AND
PROVIDING FOR AN EFFECTIVE DATE.
09-01423zt CC Legislation (Version 1).pdf
09-01423zt CC FR 12-17-09 Fact Sheet.pdf
LOCATION: Citywide
APPLICANT(S): Pedro G. Hernandez, City Manager, on behalf of the City of
Miami
FINDING(S):
PLANNING DEPARTMENT: N/A.
PURPOSE: This will extend the actual effective date of Ordinance No. 13116
to May 20, 2010.
Motion by Commissioner Suarez, seconded by Vice Chairman Carollo, that this matter be
PASSED ON FIRST READING PASSED by the following vote.
Votes: Ayes: 3 - Commissioner Carollo, Sarnoff and Suarez
Chair Sarnoff Now, PZ.3, I think we could probably present that. You've been waiting here for
a long time. I've seen --
Pedro G. Hernandez (City Manager): Yes.
Chair Sarnoff -- you all day.
Mr. Hernandez: Yes.
Chair Sarnoff Mr. Manager, someone's going to owe you lunch. I've got you six lunches so far.
Mr. Hernandez: But I -- how many do I owe?
Chair Sarnoff You don't owe any yet so far. Go ahead, PZ.3.
Roberto Lavernia (Chief of Land Development): For the record, Roberto Lavernia, with the
Planning Department. PZ.3 is a request from the Planning Department to change the zoning
atlas designation. In 1989 when the comp. plan and the atlas or the Ordinance 11000 was in
place, there is a little piece in here that you have in your package the -- an aerial photograph.
Vice Chair Carollo: You're talking about PZ.3 in the regular agenda item.
Mr. Lavernia: Yes, sir.
Vice Chair Carollo: Not PZ.3 in the supplemental.
City of Miami Page 59 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Chair Sarnoff Supplemental.
Vice Chair Carollo: No. He's talking about the general agenda.
Mr. Hernandez: Right.
Vice Chair Carollo: Andl think we're (UNINTELLIGIBLE) supplemental, so --
Chair Sarnoff We're going to finish --
Vice Chair Carollo: -- I just want to make sure.
Mr. Hernandez: I owe one.
Chair Sarnoff Mr. Manager, you owe this entire Commission dinner at Joe's. You've just blown
it. And this will be not on the taxpayers' dime.
Mr. Hernandez: I felt sorry for the gentleman here that's been here since --
Chair Sarnoff I understand. I feel sorry for a lot of people. PZ.3 on the supplemental agenda.
I believe it would be -- I'm not going to say, butl think it'd be Ms. Uguccioni who would be
doing it.
Ellen Uguccioni (Planning Department): Yes, sir. Good evening, Commissioners. Ellen
Uguccioni, Preservation Officer. This is a companion ordinance to Miami 21 and refers to PZ.1,
PZ.2, and is asking to be deferred for another 30 -- effective 30 days -- I'm sorry, 90 days.
Vice Chair Carollo: Ninety.
Ms. Uguccioni: Ninety days.
Chair Sarnoff All right. So we have PZ.3. Is there anyone from the public wishing to be heard
on the supplemental agenda item PZ.3, page 9 on the agenda? Seeing none, hearing none, the
public hearing is closed. It comes back to the Commission. Can I have a motion, gentlemen?
Commissioner Suarez: I'll make the motion.
Vice Chair Carollo: Second for discussion.
Chair Sarnoff Okay. We have a motion and a second for discussion. Commissioner Carollo,
you're recognized for the record.
Vice Chair Carollo: I just want to mention again this is a Miami 21 issue that we are going to
extend for 90 days. We're going to be seeing a lot of PZ (Planning & Zoning) items now -- I
think it's 9 through 15 -- andl'm going to ask that those also be deferred at least 60 days or so
forth. With that say [sic], I second andl'm ready to vote.
Chair Sarnoff All right. So we have a motion. We have a second. All in favor, please say
"aye."
Priscilla A. Thompson (City Clerk): No. This is --
Chair Sarnoff Oh, I'm sorry. It's an ordinance.
The Ordinance was read by title into the public record by Deputy City Attorney Maria J. Chiaro.
City of Miami Page 60 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Ms. Thompson: Your roll call.
A roll call was taken, the result of which is stated above.
Ms. Thompson: The ordinance has been passed on first reading, 3-0.
11:00 A.M.
PZ.4 08-00680Iu ORDINANCE First Reading
AN ORDINANCE OF THE MIAMI CITY COMMISSION, WITH
ATTACHMENT(S), AMENDING ORDINANCE NO. 10544, AS AMENDED, THE
FUTURE LAND USE MAP OF THE MIAMI COMPREHENSIVE
NEIGHBORHOOD PLAN, PURSUANT TO SMALL SCALE AMENDMENT
PROCEDURES, SUBJECT TO § 163.3187, FLORIDA STATUTES, BY
CHANGING THE LAND USE DESIGNATION OF REAL PROPERTY
LOCATED AT APPROXIMATELY 1421 NORTHWEST 61ST STREET, MIAMI,
FLORIDA, FROM PARKS AND RECREATION TO MEDIUM DENSITY
MULTIFAMILY RESIDENTIAL; MAKING FINDINGS; DIRECTING
TRANSMITTALS TO AFFECTED AGENCIES; CONTAINING A
SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE.
08-006801u Analysis.pdf
08-006801u Land Use Map.pdf
08-006801u & 08-00680zc Aerial Map.pdf
08-006801u School Board Concurrency.pdf
08-006801u PAB Reso.pdf
08-006801u CC Legislation (Version 2).pdf
08-006801u & 08-00680zc Exhibit A.pdf
08-006801u CC FR 12-17-09 Fact Sheet.pdf
LOCATION: Approximately 1421 NW 61 st Street [Commissioner - District 5]
APPLICANT(S): Pedro G. Hernandez, City Manager, on behalf of City of Miami
FINDING(S):
PLANNING DEPARTMENT: Recommended approval.
PLANNING ADVISORY BOARD: Recommended denial to City Commission on
September 16, 2009 by a vote of 7-0. See companion File ID 08-00680zc.
PURPOSE: This will change the above property to Medium Density Multifamily
Residential.
Motion by Commissioner Suarez, seconded by Vice Chairman Carollo, that this matter be
PASSED ON FIRST READING PASSED by the following vote.
Votes: Ayes: 3 - Commissioner Carollo, Sarnoff and Suarez
Chair Sarnoff Madam Clerk.
Priscilla A. Thompson (City Clerk): Yes, sir.
Chair Sarnoff I believe we're going to go to a PZ (Planning & Zoning) agenda. I think you
City of Miami Page 61 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
need to swear in the witnesses.
Ms. Thompson: Ladies and gentlemen, if you are here and you will be testing or speaking on
any, any of the P&Z items -- would that be correct, sir, Chair?
Chair Sarnoff Yes, sir. Yes, Madam --
Ms. Thompson: Okay, so that would be if you're on the regular agenda, the supplemental
agenda, or the P&Z agenda, I need you to please stand, raise your right hand so I could
administer the oath. And please, if you're speaking, don't forget to sign in with our staff
members.
The City Clerk administered oath required under City Code Section 62-1 to those giving
testimony on zoning items.
Ms. Thompson: Thank you.
Chair Sarnoff What I'd like to do is do, in the supplemental agenda, PZ.4, which was scheduled
for a time certain 11 o'clock. Are you lost, Madam City Attorney?
Maria J. Chiaro (Deputy City Attorney): You said the PZ agenda. You mean the sup -- the PZ
items on the supplemental agenda, right?
Vice Chair Carollo: No. The regular PZ item, I believe.
Chair Sarnoff No. PZ.4 was the -- is in the supplemental agenda, so it's our booklet
supplemental. It was the one scheduled for 11 o'clock. It is PZ.4 in our supplemental agenda.
Ms. Chiaro: Okay. Got it.
Chair Sarnoff By the way, Madam Clerk --
Commissioner Suarez: Mr. Chairman.
Chair Sarnoff -- my Third Grade teacher was Ms. Eisenberg.
Ms. Thompson: Okay. And I'm just -- I'll do all that I can to recalibrate your thought process
regarding her.
Chair Sarnoff All right. Just hit me as Ms. Eisenberg would do. She'd never let me get too far
afoot.
Ms. Thompson: I'll do my best.
Chair Sarnoff All right, PZ.4.
[Later..]
Chair Sarnoff All right. Now we're up on PZ.4 in our supplemental agenda, time certain 11
o'clock. I apologize; we are 29 minutes late. Present for the record.
Roberto Lavernia (Chief of Land Development): For the record, Roberto Lavernia, with the
Planning Department. PZ.4 andPZ.5 are companion items. It's a request to change the future
land use map of the comprehensive plan and the zoning atlas. The request is to change this lot
that is designated PR (Parks & Recreation) to the same designation that is in here. The City
City of Miami Page 62 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
owns property on both sides of this, and it was a request -- I don't know if the City Manager is
going to back me on this -- a request for a low-income project in this area. In order to do that,
this needs to be changed to the residential designation. At the lower board, it was some
complaints of the neighbors saying that this is a single-family area. It is not. It's a medium
density residential area. Even when there's existing single-family in an R-3 designated area.
That was major complaints about in here. The Planning Advisory Board recommended denial to
Commission in PZ.4, and the Zoning Board recommended to the City Commission denial
because they want to increase the amount of PR -designated area within the City. Thing that was
done in the process ofMiami 21, we increased the square footage of the area designated PR.
The Planning recommendation for these two items is for approval. Thank you.
Vice Chair Carollo: Mr. Chairman.
Chair Sarnoff What was the Planning Advisory Board's recommendation?
Mr. Lavernia: Planning Advisory Board recommendation was for denial on September 16.
Chair Sarnoff Okay. I'm sorry. You're recognized for the record.
Vice Chair Carollo: Thank you, Mr. Chairman. And just for the record, PR is park?
Mr. Lavernia: Yes, sir.
Vice Chair Carollo: Thank you.
Chair Sarnoff All right. So we have a public hearing now. Anybody from the public wishing to
be heard, please step up.
Elvis Cruz: Mr. Chairman.
Chair Sarnoff I'm sorry. Do you want to do a presentation, the affordable housing folks?
Estrellita Sibila: Yes. Thank you. Estrellita Sibila, with law offices at 2525 Ponce De Leon
Boulevard. I'm here this morning on behalf of Carrfour Supportive Housing. They're an
affordable housing developer here within the Miami -Dade County area and have had many
successful projects within the City ofMiami. Just a point of some history for this site and the
reason that we're here today. Back in 2006 there was a legislative mandate that came from the
State that required the cities, municipalities specifically, to identify parcels that are suitable for
affordable housing development. As a result of that, the Community Development Department
identified these specific parcels to the south of the park that you'd see -- they identify the parcels
that essentially run from this portion of the street all the way to this end as a site for an
affordable housing development site. An RFP (Request for Proposals) was issued by the
Department of Community Department in which Carrfour was the responsive recipient of that
RFP. That was back in 2006. Since then the project has been awarded state tax credit financing
dollars in the amount of 7.5 million. The County has also set aside some money from their funds
in the amount of 1.6 million to fund this project. And the City ofMiami is also funding it with
$343, 000 of their HOME (Home Investment Partnership Program) money. This has been a City
initiative. It's a City -owned site. It has the support of the City Manager and the Planning
Department. And really what we're here to do today is just wrap up this one matter to make this
affordable housing project a reality. What we're looking at is the development of 60 affordable
housing units in one of the more depressed areas of the City ofMiami. This -- these parcels that
we're seeking -- there's only one parcel of the totality that we're seeking this change. The parcels
historically had affordable housing units there. They were some older buildings that were
intended to be replaced with this project. This was all contemplated by the City when this whole
RFP was issued when we came in and responded to it, and after everything was tied together,
City ofMiami Page 63 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
they realized, wait, there's a zoning issue and we need to have that changed. It's been a long
history. This was initiated by the City Manager's office back in June 2008, I believe is the first
time that this appeared on any agenda. Our issue is if we continue to delay this, we're at
jeopardy of losing the tax credit finance dollars, and basically, we'd be -- we'd walk away and
the City would lose not only the 60 units of affordable housing in this area, but also the $10
million of money that would be coming to you all without having to spend additional money.
What the other proposal that we've been working with because we're aware of the issue with the
loss of park space is to acquire the corner piece that's owned by a private individual. There's a
corner piece that -- essentially, African Square Park runs the distance across the block. This one
piece in this corner is owned by a private individual. GSA (General Services Administration)
owns this piece. And the City ofMiami owns other two parcels. What we're doing now is we
have a contract to purchase this City -- this privately -owned parcel that's on the corner that
would essentially be a swap of this park area for a park area on this side, which makes more
sense to have a linear connection across African Square Park. Now, some people would like to
see this all a park, and what we have here is -- it's completely divided by an alley. There's a
wall. There's a buffering of trees. There's a lot of logistical and tactical things that have to be
overcome to make that happen. Now what we're -- what we'd like to remind you all is the state
mandate for affordable housing and the initiatives that have been taken by the City and the
money that's been spent by the City in order to make this come true. Now we're asking for your
support here today. There are other folks from the Liberty City Council, Liberty City Trust,
Liberty Square Council that are here to speak on behalf of this item. They've been working with
Carrfour for the last two years in order to bring this new opportunity to the area and also to
make sure that the folks in the Liberty City area are able to have some employment opportunities
here. We're looking at 75 construction jobs during the 16-month approximate build out for this
site, and we're looking at between 3 to 5 full-time jobs that will remain at this site once the
development is in place. We have -- we're proposing 60 units; 30 of them are two -bedrooms, 15
one -bedrooms, 15 three -bedrooms, so it's a nice unit mix. And if you're familiar with the
Carrfour projects, they provide quality affordable housing. These units would serve families
within the 60 percent median income, so it would be very low rents that would be affordable to
the residents in this area. And we'd be happy to provide any additional information. Our
architect is here. Yeah. This is actually the rendering for the site. It's a low-rise development.
It's no more than 35 feet high. We've made it garden style to keep consistent with the area
contextually, and the projects also going to have different energy efficient features, water
conservation features.
Chair Sarnoff How do we know that gets built? In other words, we, as Commissioners, let's say
we're attracted to your argument, how do we know for a fact that that particular design gets
built?
Ms. Sibila: Well, you still have the blanket of your Community Development Department and
their financing for this. Plus, we have the tax credit financing that's essentially tied to this
project, in terms of the number of units that get financed the unit square footages and all of that.
So the way that it works when you propose one of these projects for state tax credit financing,
you first need to have an RFP that was -- or some sort of approval, and then it goes head to the
State. The State then vets it out, depending on the location, what kind of accessibility to services.
They have certain criteria that they look at before they award a project actual funding. It's a
very competitive process. It's not -- you know, there is maybe 25 projects that are awarded
throughout the state, and the number has been dwindling in the past couple of years. It would
really be a shame to walk away from that opportunity at this point.
Chair Sarnoff I still -- I'm not understanding how I know, as a Commissioner, with any
confidence, that that project gets built -- I mean, I know ordinarily, when we do certain things in
the Commission, there are covenants given to us and they have to be voluntarily tendered, but I
don't know for sure, as I sit here -- andl may be impressed with that, you know, design, that I
know that gets built.
City ofMiami Page 64 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Ms. Sibila: Well, we've contemplated a covenant. Our issue is that the properties are owned by
the City, so we can't covenant and promise if we're not the property owner yet. The transfer of
the properties wouldn't occur until the construction financing is closed upon. And have Mr.
Toledo here on behalf of Carrfour that could speak a little more to the financing and the -- when
Chair Sarnoff But this Commission wouldn't see the project again, right? I mean, based on the
size of the project, we're not going to see it -- I don't know if it requires a Class II permit or --
Ms. Sibila: It requires a Class II Special Permit, and we'd also be seeking a special exception to
reduce some parking by 20 percent.
Chair Sarnoff Okay. So that would get -- the special exception, theoretically, can get it here,
but nothing guarantees that this Commission sees it again.
Ms. Sibila: The Commission -- well, depending on how it goes in the lower boards, the
Commission may or may not see it.
Chair Sarnoff Right, unless it's appealed. Right. So there's no guarantee that we, as a
Commissioner, see this project again?
Ms. Sibila: We could make whatever -- you know, we could come back and have you all
involved in the Class II process, in the special exception process --
Chair Sarnoff Okay.
Ms. Sibila: -- just so that you -- what you see is what you get. You know, there's no way for us
to proffer a covenant on property that we do not own --
Chair Sarnoff I understand.
Ms. Sibila: -- and the --
Chair Sarnoff I just -- I want them to understand that what they're seeing there is an aspiration;
it is not a guarantee. And there are times that this Commission is guaranteed what they're
seeing there gets built, unless there's some modification that they agree with.
Ms. Sibila: At this point, we've been through the internal design review process twice. We've
already gone through zoning review, so our plans have been approved by the Zoning
Department in terms of meeting the Zoning requirements. So we are basically at the stage where
we're just trying to get the zoning in place so we can move forward with the actual development.
The money's all there. It's fully financed
Chair Sarnoff I understand.
Ms. Sibila: So it's just a matter of the approval from this Commission for the land use and the
zoning change that we need to make it a reality.
Chair Sarnoff Does any Commissioner wish colloquy?
Commissioner Suarez: I'm sorry?
Chair Sarnoff Do you wish colloquy with the witness?
City of Miami Page 65 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Vice Chair Carollo: Yes. I have a question.
Chair Sarnoff Go ahead, Commissioner.
Ms. Sibila: Yes, sir.
Vice Chair Carollo: Depending who you listen to, Steve Hagen may tell you, whether he's right
or not, that the City ofMiami is one of the major cities with the least amount of park space.
Would we be losing any park space if we change the zoning?
Ms. Sibila: Under the proposal that we've been working out, we'd be acquiring that corner
parcel, which is equivalent in size. If not, the difference is about 200 square feet to the park area
that we would be rezoning. So there would be almost a wash.
Vice Chair Carollo: However, we would have to rezone it before you actually acquire that.
Ms. Sibila: We would acquire it under the current zoning, and the City would then have the
opportunity to go ahead and rezone it and make it park as well.
Vice Chair Carollo: Right. But my question is is there a chance that we rezone and then you all
don't buy that parcel and we actually reduce parkland? In other words, more or less, the same
as Chairman mentioned, is my question. How are we assured that you are actually going to buy
that property and make it parkland? Obviously, subject to the Commission rezoning it parkland.
But what assurance do I have that we're not going to reduce parkland and you're actually going
to buy that property?
Ms. Sibila: Right now we have the property under contract. The way that we're trying to
structure it is to build in the acquisition cost for that corner parcel into the monies that's going to
be paid to the City for the lots that we're developing on. Originally, the City was not going to --
was going to give those lots to the nonprofit developer Carrfour in order to develop those sites.
They later found out that those sites were bought out with certain bonds that wouldn't allow the
City to outright give it to us. We're going to be paying $303, 000 to the City for those lots, and in
addition to that, we're going to allocate another 150,000 on top of that, which is going to be
used to purchase the corner lot. We're trying to make it all happen at the same time that we get
the construction closing so that way all of the properties are transferred at the same time. The
City would have the ability to then have that contract assigned to them and the money in hand to
then finish closing out that transaction. So we wouldn't get anything until you all get it, so it's all
going to happen at the same time. In terms of once we get to the point at community
development when all of the zoning is in place, you'll still be holding that money.
Chair Sarnoff Commissioner Suarez. All right. This is a public hearing. I'm going to open the
public hearing. Anybody from the push wishing to be heard, please step up.
Ms. Sibila: If this Commission doesn't mind, ifI could have a few minutes for rebuttal at the end,
in case I need it?
Chair Sarnoff Yeah. We'll decide whether you need it.
Ms. Sibila: Thank you.
Bobby McGhea: Good morning. I'm a homeowner at 6400 Northwest 11 th Avenue.
Ms. Thompson: Chair, ifI might get the name.
Mr. McGhea: Bobby McGhea.
City ofMiami Page 66 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Ms. Thompson: Thank you.
Mr. McGhea: And I don't live in a depressed area. Matter of fact, I live less than five miles from
the ocean and the land that my house set on is coral, andl don't even need flood insurance. IfI
lived in Hallandale, it'd be oceanfront property. Everyone and their brother want to come to
Liberty City area. This gentleman here, the architect -- don't know his name. Seen him a
hundred times in Liberty City want to develop something. If the land is so oppressed, why is
everyone trying to develop? And what they have done is they have came with a new term called
affordable housing. We got a complex called Coral Plaza; sit on 54 Street. Half of it's empty.
We got another one here on 2nd Avenue and 72nd Street; half of it's empty. We got another one.
You having a zoning about a graveyard, a historical site. They digging up bones. They still
building. More and more buildings they're putting in, but nobody to occupy. You got another
one come up at 755 68th Street, where they want to go into a high -density residential area, but
no one seeing nothing commercial. We don't need no more housing. We need some jobs. You're
talking about this parcel of land here. No one here lives around there. I'm the closest person
live to that neighborhood, andl live on 64th Street, 11 th Avenue. That is three blocks west and
three blocks south of that area. It's time out for everybody and they brother speaking for the
residents and the homeowners that live there. If you want to know how people feel, you need to
knock on their door and ask them how is this going to influx [sic] your neighborhood. This
going to create more traffic? This going to create more people living in here? Is this going to
make an at -risk area, people breaking into your house? How do you feel about this? Instead of
hearing from the community, people that work there for a living that don't even live in the
neighborhood. I urge you, please listen to the homeowners and the residents in this
neighborhood and not all these people on paid salaries.
Chair Sarnoff Thank you, Mr. McGhea.
Elvis Cruz: Mr. Chairman, Commissioners, Elvis Cruz, 631 Northeast 57th Street, speaking to
you today as the secretary ofMiami Neighborhoods United. As you well know, that organization
is extremely committed to preserving neighborhoods and parks. Commissioners, especially our
new Commissioners -- Carollo and Suarez -- your election represents the great thing about
democracy, the ability to bring in afresh perspective, new blood. You do not have to follow the
beating drum of the past. Having said that, let me tell you what's going on here. The City of
Miami Commission, the Goody Clancy Study, which showed that Miami is very deficient in park
space and urged the acquisition of much more park space. Now let's go backwards in time to the
late 1970s, early 1980s when the City was trying to do just that, and they established African
Square Park. My memories of that time are a little dim, but I'm fairly certain, although I haven't
been able to -- haven't had the time to do the documenting on it -- that the reason this small
parcel is zoned park is because it was part of the plan to acquire the entire block as a park. It
makes no sense at all to have one tiny little piece of a block as a park. So the City got this piece
of land, they zoned it park, and they went about the process of acquiring the rest of the block to
create the rest -- an entire block park. And what happened? They got almost all of it done. As
the young lady mentioned, they didn't get this last piece. And then, for whatever reason,
institutional amnesia, they decided, no, we don't want a park now. Now our big thing is
affordable housing. Mr. McGhea spoke very eloquently about how successful or unsuccessful
that is or how necessary it is. However, imagine, if you will, building affordable housing in
Coral Gate Park or Shenandoah Park. This neighborhood deserves having this entire block be a
park, African Square Park. There's plenty of other land in the area that can be used for
affordable housing that has no zoning issues, if there is, indeed, a need for that. Furthermore, as
some of the residents who do live right across the street -- two of them are here today -- as they
will tell you there are numerous buildings up and down 61st Street that are currently vacant and
boarded up that could be purchased and could be rehabbed and could be turned into affordable
housing. That way we could have the win -win situation of having the park that the City had
worked on for many years and having affordable housing and rehabilitating what is now derelict
City ofMiami Page 67 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
property. They also mentioned a parking reduction. I'll speak to that later on. Just want to
mention for now, parking reductions are harmful to the neighborhoods around it. I thank you
for listening. And, again, you'll be hearing from some other neighbors that live right across the
street. Thank you.
Chair Sarnoff George, what -- any reason you want to speak?
Pedro G. Hernandez (City Manager): He's trying to correct the record.
George Mensah (Director, Community Development): Just to correct the record. George
Mensah, director of Community Development. A statement was made that properties was
purchased in the name of being a park. These properties were a part of the properties purchased
as part of the Liberty City Trust area when they were trying to acquire properties. The
properties were purchased using HOME funds. Those also was the monies that we had to repay
back to HUD (Department of Housing and Urban Development) because this construction didn't
take place. So I just wanted to correct the record on that.
Chair Sarnoff Why isn't the Liberty -- is the Liberty City Trust here?
Elaine Black: Yes.
Chair Sarnoff Do they want to -- are they going to be speaking publicly? Let me put it to you
like this. I hope the Liberty City Trust will speak. So let's continue the public hearing.
Katonya Mincey: Hello. My name is Katonya. I'm a homeowner, directly across the street from
this park. I believe it should stay a park and be expanded because there are already numerous
apartments that are vacant, so it's no need for yet another one. And that is my belief. It will be
beneficial to the children in the area. They have nowhere to go. It would help us all. Thank
you.
Chair Sarnoff Thank you.
Tangelia Sands: Good morning.
Chair Sarnoff Good morning.
Ms. Sands: My name is Tangelia Sands. Andl am a homeowner, andl live directly --
Chair Sarnoff Just put your -- yeah, put your address on the --
Ms. Sands: -- I live at 1466 Northwest 61 st Street, directly on 61 st Street, right across from
African Square Park. Andl think that it will be a great help for us to get the park expanded
because, number one, our children really don't have anywhere to go. Our smaller kids, we don't
want them crossing 62nd Street or going down to -- crossing Northwest 54th Street to go to
Charles Hadley Park or 12th Avenue, you know, and risk the chance of them being hit by a car
and possibly killed, you know, hit-and-run. Another thing heard the lady speak on they want to
put apartments there, rental apartments where people come and go. They don't pay they rent.
They come and, you know, stay for three months. They know how to get evicted. You know, we'll
stay here a extra three months. They know the process. They come in the neighborhood and --
some of them are thieves. While we're out working, they breaking in our homes that we work
hard for. And another thing, we already have lack of police in the area, and you're talking 60
units at about what, maybe at least 4 to 5 people living in each unit? That's a lot of people.
We're talking about maybe, you know, 250 to 300 people in one block. Where they going to park
at? In front of our houses? We don't know. But would greatly appreciate, you know, having the
park expanded so our high-energy children in the area will have somewhere to go, you know,
City of Miami Page 68 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
locally without going outside their own neighborhood. And another thing with the park, if they
can expand the park -- for instance, my son didn't even get a chance to go to the summer
program because the limited space, the capacity. It was -- you know, it just wasn't enough that
they could not take all of the children. And you have people coming out of the area utilizing the
space at the park, and by the time we can go there to sign our kids up for the summer programs,
they say, you know, we only have just a little bit of space, you know. If the park was bigger, we'll
be able to take more children.
Chair Sarnoff Thank you, ma'am.
Ms. Sands: Thank you.
Herschel Haynes: My name's Herschel Haynes, and I live at 4601 Northwest 15th Avenue. I'm
also chairman of the Hadley Park/Model City Homeowners Association. Andl should say -- still
morning -- good morning, Mr. -- Commissioner -- I mean, Chairman and your fellow
Commissioners. I concur really with what Mr. Bobby McGhea -- he's a board member of the
organization. He's very familiar with what's going on in the Model City area and everyone else
that has spoken here. We were here before the PAB (Planning Advisory Board) a couple of
months ago, and we were very pleased to hear them totally reject this project, and they
advocated what the people want, which is to add more space to the park because like the -- Ms.
Sands, the lady before me, we have -- on Hadley Park itself, it's overloaded with children from,
you know, the Model City area, and we're hardly able to accommodate them because it's so
many children that are trying to get into activities on the park. And so what we would like you to
do is look at futuristically if there are -- there is a huge demand now -- look at what the increase
is going to be in the next couple of years. And so we would just like you to visionarily [sic] look
ahead as the board looked ahead and help us out with rejecting this and in favor of increasing
the space on the park. Thank you.
Chair Sarnoff Thank you.
Steve Hagen: Steve Hagen, chair of the Parks and Public Space Committee ofMiami
Neighborhoods United. I -- for the new Commissioners, I'm sure you know the figures, but 3.1
acres is what we had eight years ago of -- 3.1 acres per thousand residents. That's equal to
about 135 square feet for the population ofMiami. We've added -- when the condos get filled --
and we have a lot of affordable housing that's gone up around, you know, various areas of the
City. When all this gets filled -- I mean, we have affordable housing units on 79th Street that
are, you know, half vacant as well. When all these units get filled though, that's an additional
50,000 roughly population to the City. We haven't added any parkland so our parkland ratios
will go down to 116 square feet per person. It used to be if we tripled our park space, we would
rise one slot on the list of 27 cities. Now, if we triple our park space, we still stay last. So there's
no question this we need park space. African Square Park is a tiny park. One thing that Ms.
Sands didn't say is that when her child was younger, couldn't get her into a program at African
Square Park; had to go someplace else because the facilities there are so small. I don't know
how this RFP ever got issued. It should have never gotten -- this thing -- we shouldn't even be
wasting our time here. How this ever got issued is beyond me when you have land that is
contiguous to an existing park. This is a no-brainer. Now, $330, 000I guess of HOME funds
that were used for this, last time I checked, I think we have about 1.2 or $1.3 million of impact
fees that are designated for the use of purchasing parkland. Let's get into those fees. Let's
purchase this and make this all parkland. This was denied by the Planning Advisory Board. Do
you know that? You know, the opposition said, you know, it was passed by the Planning
Department; so what? It was denied by the Planning Advisory Board. And further, the Planning
Advisory Board voted unanimously to make all the land contiguous and make it parkland,
change it to PR. So in terms of the impact of this, roughly 300 persons, if we're looking at 5
people per unit, additional -- about 300 persons. Well, if we follow our impact on our park plan
to add 3.1 acres of parkland to reach additional thousand people, then this should -- this project
City ofMiami Page 69 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
alone should be adding an acre of park space to the City, and -- well, their offer is to purchase,
you know, a very small portion. So for all those reasons, I think this should be denied. Thank
you.
Chair Sarnoff Thank you. Is Liberty City Trust going to present? Go ahead.
Carol Gardner: I'll let them go first, Liberty City Trust.
Chair Sarnoff No. You're up there now; please go.
Ms. Gardner: Okay. My name is Carol Gardner. I'm 675 Northwest 56th Street. I work for
Tacolcy Economic Development Corporation. I'm the president of the agency. We are also a
joint venture project -- partner with Carrfour. I know that a lot of people were up here quoting
how many empty apartments that are in -- located in that area, andl am not aware of it. We
own over 350 -- 320 units of affordable housing. We have to turn people away because we are
just about fully occupied or they can't afford our rents. There are a lot of individuals, many
individuals that are seeking shelter. This particular project that we're working on with Carrfour
will offer very low affordable units which are not offered in our complex or the other ones. This
would allow those people to at least be able to live in affordable housing. I don't know what has
happened if this economy, not that we don't need parks. We always need parks. I think we're
making a very good recommendation by making -- purchasing the land over in the corner, which
makes it more of a contiguous park, but there are a lot of individuals that need affordable
housing, and that portion of the population has not changed. The demand for affordable
housing is still out there, very -- and especially very low. And we're offering very low with this
particular project. Thank you.
Chair Sarnoff Thank you.
Elaine Black: Good morning. My name is Elaine Black from the Liberty City Trust. In 2006,
the Liberty City Trust Board voted on this project. It's part of a -- our overall development plan.
Let me just say that the plan was definitely to have this area as garden -like apartments for the
residents. We acquired four sites on the other side of the street, and we are very fortunate to say
the first greenhouse was built over there with another similar type of house next to it, and we
built two additional properties. So residential properties are now located across the street and
the plan is to build garden -type apartments for low-income residents at 60 percent, where they
would have yards for the kids, as well as space for parking and other facilities. So I can
understand that everyone wants to have single-family homes across the street from them, but
initially, our plan was to use this land that was initially acquired for residential use to be
residential, low-rise, garden -type apartments for the residents that really need it. I know there
are vacant properties in the community, but many of those vacant properties are in very, very
poor condition. Therefore, whenever we come up with an affordable apartment complex in
Liberty City, we generally sell out within a month of completion of that project because there is
such a need, and we're very excited about this project because it has three bedrooms as well as
two bedrooms for families. So I understand all of concerns, and yet, we support the development
of Hadley Park as well as the expansion of African Square Park. That's why I'm very excited
about the possibility of expanding African Square Park to the full block face on MLK (Martin
Luther King) Boulevard. Thank you.
Chair Sarnoff Thank you.
Ms. Sibila: Commissioners, we've heard a lot --
Chair Sarnoff Do you think you need rebuttal?
Ms. Sibila: Excuse me?
City of Miami Page 70 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Chair Sarnoff Do you think you need rebuttal?
Ms. Sibila: Just a couple of words.
Chair Sarnoff All right. Wait, wait, wait. Let's let rebuttal happen when this all needs to be
rebutted. Anybody else wishing to speak, if you don't step up to the microphone now, you will
not be admitted. All right. Go ahead.
Ken Knight: Good morning, Commissioners and Mr. Chair. I'm in the position of Solomon, and
you seem to be -- we seem to be in our community torn both ways, but I'm here --
Ms. Thompson: Excuse me.
Mr. Knight: -- for the record --
Chair Sarnoff I think she's going to ask for your name and your address.
Mr. Knight: My name is Ken Knight. I'm a member of the Hadley Park/Model Cities [sic]
Homeowners Association. But Mr. Chair, I'm here for --
Chair Sarnoff Mr. Knight --
Mr. Knight: Yes.
Chair Sarnoff Before my teacher, Ms. Eisenberg, yells at me --
Mr. Knight: Yes.
Chair Sarnoff -- she's going to ask for your address.
Mr. Knight: Okay, 1281 Northwest 56th Street. Mr. Chair, I'm here for informational purposes
for this body, andl hold a document, Mr. Chair, called the United States Recovery Reinvestment
Act. And Mr. Chair, I implore this body to get this hardcopy because you, Mr. Chair, being
forward thinking, and there again, and you think green like a lot of us. And I'm saying that we
have yet to scratch the surface of this act, and this government body should have this act and all
the Commissioners should have this act hardcopy. Now, in giving the ruling which you did this
morning with regard to Miami 21, appropriately, I think that given this situation, it's -- we need
to react just as appropriate because we don't know how this whole thing is going to pan out with
Miami 21. And there again, because it involves everything in this aspects, and this project's
included. So to defer the matter until we have (UNINTELLIGIBLE) and a better consensus of
the community. I think we will be using the Wisdom of Solomon, but -- because there again, I'm
for green space, but we can't eat grass; we need jobs, we need housing, and the like. But I also
know that unless it's a decision of we, the people, then we really violate not only the Constitution
of the United States, but the people that live in this community. So I would ask, respectfully, Mr.
Chairman and Commissioners, that until we get a better consensus, that we don't err on either
side or the other; that we appropriately defer this matter so we can build a better consensus, and
we have better vision as directed by this Commission with regard to Miami 21 and the activities
in District 5. Andl implore you, again, Mr. Chair, do not let anybody fool you. This document
by the US Government, we need to have in hand because we have yet to scratch the surface on
all of this potential for our community.
Chair Sarnoff Thank you, Mr. Knight.
Mr. Knight: So I thank you very much.
City of Miami Page 71 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Chair Sarnoff Go ahead with your rebuttal, counsel.
Ms. Sibila: Thank you. I just wanted to restate for the record what we're doing is we're actually
swapping out that park space. There's no net loss to the City. From the analysis that the
Planning Department did for us, specifically the level of service that's been established by the
comprehensive plan for park space is 1.3 acres per 1,000 residents. With these -- this rezoning,
we are not -- we still meet the level of service, and we have an excess capacity, citywide, of
182-plus acres of park space, which would accommodate future growth in the City of about
140,000 residents. If we look at it and extrapolate the data for District 5 alone, we have in
excess of 6.6 acres of park within that district area, which would accommodate another 5,000
residents. When we've been -- you know, we've been working hand -in -hand with the City on this
matter for about two and a half years now, and Mr. Mensah's office has been an instrumental
part in making this happen. This is a vision of the City. We're just here to help the City carry
out that vision. And we ask that --
Chair Sarnoff Do you have your park space written down? I can just take a look at it.
Ms. Sibila: Absolutely.
Chair Sarnoff Thank you. You can proceed, I'm sorry.
Ms. Sibila: I just wanted to give you a moment so that you could take a look at that. But what
we're -- you know, what we'd be accomplishing is no net loss of park space for the City, 60 new
units of affordable housing, 75 construction jobs, which will focus on having residents of the
area to take responsibility for those jobs. We've already committed in writing to Liberty City
Trust, Liberty Square Council to seeking out citizens from the area for these jobs, and we're also
looking at the money's that's already been funded by the State, the County, and the City that
would otherwise be a substantial loss if this did not pass today. We ask for your support and
thank you for the time.
Chair Sarnoff Thank you. All right, the public hearing is now closed, coming back to the
Commission. I recommend we discuss this before a motion. Commissioner Suarez, you're
recognized for the record.
Vice Chair Carollo: Mr. Chair.
Chair Sarnoff Commissioner Carollo, you are recognized for the record.
Vice Chair Carollo: Thank you, Mr. Chairman. And just a quick question. No parks -- it'll be
an even swap. There'll be no park space lost? It seems to me, at least from here -- and maybe
my vision starting to go -- but it seems like that that parcel that is PR is slightly larger or larger
than the parcel that you're thinking of acquiring and turning into parkland.
Ms. Sibila: They're both 50 by 100 square foot lots. That is a typical --
Vice Chair Carollo: So it's just not due to scale or however you would say? In other words --
Ms. Sibila: The difference is the properties that are on 62nd Street have an additional
requirement for dedication of right-of-way so you end up losing a little bit more. That's why you
see how the green area kind of -- is higher. It jogs down a little bit and those essentially -- the
jog that you see is additional dedication for public right-of-way that's required. It's required by
the subdivision regulations, so that's the main difference in the square footage, but essentially,
it's a straight swap. It's a 50 by 100 square foot lot.
City of Miami Page 72 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Chair Sarnoff Gentlemen, I've just been advised by the Clerk that in 15 minutes, we're going to
lose the hand language interpreter -- sign language interpreter, excuse me, and that would be a
cost to the citizens if we don't go through the PH (Public Hearing) agenda as quickly as we can.
Knowing how you both feel about tax consequences, I'm going to suggest we break from this, we
go right to the PH agenda; make sure we utilize our sign language person, and then we come
right back to this. I apologize.
[Later...]
Chair Sarnoff All right, we're going to go back to the one -- the -- I think it was PZ.4 that we
had opened and, just before lunch, we're going to take up FR.1, and then we're going to have
lunch. Are the PZ.4 folks out there?
Vice Chair Carollo: Oh, PZ.4 from the special --from the supplemental.
Chair Sarnoff Right, the one that we tabled.
Vice Chair Carollo: Yeah, yeah, yeah, yeah.
Chair Sarnoff All right. Gentlemen, you owe the City Manager lunch.
Commissioner Suarez: I accept.
Chair Sarnoff He's up to his fifth lunch now. All right, gentlemen, we're on PZ.4. The public
hearing, I think, was opened, andl believe the public hearing was closed, but will do it once
again. PZ.4. Anybody wishing to be heard before this Commission that has not already spoken
on PZ.4 from the supplemental agenda, please come and approach the podium, who has not
been heard before. Do you have something you want to add, Elaine?
Ms. Black: Yes.
Chair Sarnoff Go ahead.
Ms. Black: Elaine Black, Liberty City Trust, 4800 Northwest 12th Avenue. I just wanted to add
that the Liberty City Trust as well as Commission [sic] 5 had supported this project because of
its significant impact as far as jobs, bringing in dollars for housing into this area. So I just
wanted to make sure that was noted that it had support. Thank you.
Chair Sarnoff Thank you, Elaine. All right, the public hearing is open. The public hearing is --
you spoke.
Mr. Hagen: One little addition.
Chair Sarnoff You got 30 seconds.
Mr. Hagen: When this was first noticed, I went out -- it was about a week after the notice and --
to take pictures of the property and so forth, I saw no red notices that were posted. I also spoke
to Ms. Sands and she had no recollection of any red notices ever being posted on this. I just
think that this whole thing, like I said earlier, shouldn't even be here because if there had been
public input -- andl think the public was just sort of like isolated from this whole affair.
Chair Sarnoff Thank you. All right, public hearing. Anybody wishing to be heard on PZ.4?
Hearing none and seeing none, now it comes back to the Commission. Gentlemen, you want to
discuss this before proffering a motion?
City of Miami Page 73 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Commissioner Suarez: I have some questions.
Chair Sarnoff Go ahead. Commissioner Suarez, you're recognized for the record.
Commissioner Suarez: I think one of the residents came up here and made a very good point.
And I'm one of the -- I'm a big proponent of affordable housing. I think we deferred something
today in terms of modifying some of the affordable housing guidelines because we didn't have
some clarification prior to making that decision that think would have helped us and educated
us on that decision. These are -- there's going to be eight units, correct? This project is eight
units?
Ms. Sibila: No. The project is 60 units.
Commissioner Suarez: It's -- eight units is the affected part, seven or eight?
Ms. Sibila: The affected --
Commissioner Suarez: The part that wants --
Ms. Sibila: Are you asking what the density would be for that one particular portion?
Commissioner Suarez: Yes.
Ms. Sibila: It's 65 units to the acre and it's 5,000 square feet, so I'd have to calculate.
Commissioner Suarez: That's okay. My question is what would the rent amount be?
Mr. Sibila: I could have Mr. Toledo or Paola from Carrfour answer that. They have the specific
numbers, but it's set by the State --
Commissioner Suarez: Okay.
Ms. Sibila: -- so it's not something that we have the flexibility to change in the future.
Carlos Toledo: Carlos Toledo with Carrfour Supportive Housing, 1398 Southwest 1st Street.
The rents are calculated each year by the State using the HUD calculations, which they used --
or calculate using data from various median incomes in various metropolitan areas. So each
year they come out with these rents and they're based on a percentage of the incomes and they're
also calculated based on household size. The current rent for a 60 percent unit for a
one -bedroom, I believe the gross rent is somewhere in the mid 500s and it's about 6 and change
for a two -bedroom and about 800 for a three -bedroom. There's also a utility allowance that's
deducted from the rents which takes into consideration the utility cost that a resident pays so the
net rent would be less, so the actual rent that they pay is less. And the utility allowance is also
calculated each year based on the utility costs. And we use the -- Miami -Dade Housing -- Public
Housing Agency's utilities allowance form, which is also -- they calculate it and submit it to
HUD and that gets approved by HUD, so --
Chair Sarnoff Thank you.
Commissioner Suarez: Somewhere between 5 to $800?
Mr. Toledo: Correct.
Commissioner Suarez: Depending on the size of the apartment.
City of Miami Page 74 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Mr. Toledo: Yes.
Commissioner Suarez: In your fundraising scheme -- in your funding scheme, could you build
your project with the current land use as it stands right now?
Ms. Sibila: We wouldn't be able to, and the reason that we wouldn't is that the money that's been
allocated to this through the State funding is based on this particular project, the design and the
unit mix. So if we were to go back and take out the units that would be within that portion of the
park area, we would essentially change the deal with the State and essentially they could take
away that money because we are now not complying with what they originally funded
Commissioner Suarez: Well, my question then is -- and this is what don't understand -- how
could you have gotten funding in the first place? Was there a presumption that this was going to
be changed or --? I don't understand. Do you understand my question? Because it seems to me
that if it is -- I mean, it's here. There's some -- there's a lot of debate, and this is a very -- for me
this is an extremely, extremely tough decision because I've been saying since the first minute I
got up here how much and how in favor I am of affordable housing and how -- what a need it is
in our community. By contrast, sometimes you have two very, very important and needed
interests that serve the public that come into conflict. It happens. And it makes a decision for
people who -- you know, reasonable minds can differ. And my question is, you know -- I guess
you're here because you have to be here in terms of requesting the zoning change of that small
parcel?
Ms. Sibila: Yes. And we're basically here to support the City's application. This is a
City -initiated --
Commissioner Suarez: I see.
Ms. Sibila: -- application by the City Manager.
Commissioner Suarez: Right.
Ms. Sibila: The only reason we're here is because we have an interest in the outcome --
Commissioner Suarez: Right.
Ms. Sibila: -- but this has been initiated by your department.
Commissioner Suarez: I understand. But my -- what I'm not understanding very well is when --
you're saying that the financing is tied to the specific project that you guys --
Ms. Sibila: Yeah. (UNINTELLIGIBLE).
Commissioner Suarez: -- proffered to the State? And my question is when you proffered that
project to the State, I mean, this park was in the middle there and -- I mean, why wasn't that
taken into account is my question because now you have to come to the City and put the City --
some of the Commissioners, the Manager -- go ahead, Mr. Manager.
Mr. Hernandez: Commissioner, ifI may, maybe to try to clam. This area used to be where
homes were constructed and the land was zoned as parks, but there was no park there. Maybe
even a home was there at some point. There were homes along the area that were demolished
and -- this is sort of unusual where you have this parcel which, in essence, is disconnected from
the park to the north via an easement. That -- it may be a mapping error at some point.
Commissioner Suarez: My question is why wasn't this done before financing was applied for?
City of Miami Page 75 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
You know, it's like -- you know, you're far along here. I mean, you have a $10 million
commitment from the State. You have, you know -- I mean, this decision, it seems like it's coming
after the fact. You know, why wasn't this decision taken or made -- if this was essential to the
construction of the project, why wasn't it done before these people, you know, went to the State
and expended their time, their energy, their resources, you know, to make this project viable for
the community? Why wasn't the zoning designation handled then?
Mr. Hernandez: Commissioner, the only way I can that is, in my opinion, it is a mapping error.
Chair Sarnoff Right.
Mr. Hernandez: Because over time that had other uses. Somehow that parcel was -- had an
earlier zoning as park. It was never used as that. It was a residential area. Andl do agree with
you in the sense that if it was an error, it should have been picked up before.
Ms. Sibila: We went ahead and did some research at the County for the aerials and this is from
the 1973 aerial where you could see the parcel that was being utilized for residential purposes. I
could just pass this along for you all to take a look at. It's hard to see, but it's -- and all the
contiguous portions as well were the units that were -- we were set to replace are also reflected
on this map as well.
Chair Sarnoff All right, let's continue.
Commissioner Carollo: Mr. Chairman.
Chair Sarnoff Go ahead. You're recognized, Commissioner Carollo.
Vice Chair Carollo: By the way, I agree with Commissioner Suarez, andl want to add to that
one, ask a question. I'm not asking anyone to have a crystal ball, but at the same time if this
project does not get approved, what would happen? I keep --
Mr. Hernandez: Well, the -- if --
Vice Chair Carollo: -- hearing the --
Mr. Hernandez: -- if it's not -- if --
Vice Chair Carollo: -- you know, expansion of parkland, the expansion of parkland, so should
this not get approved, what would happen?
Mr. Hernandez: Well, they would lose the ability to do that project at that location.
Ms. Sibila: What we can do between now and second reading is we could prepare a covenant
that would tie us to the development that you see today. It's been reviewed and signed off by the
Zoning Department, so we already have our set of plans that are fully completed, reviewed,
scrutinized, have been reviewed by the Internal Design Review Committee twice now and as
recently as Tuesday so we could finish tying up all the design issues. We could prepare that
covenant, have it for you all between now and second reading. In that way, at the time that the
construction financing is closed on and the properties are transferred, you'll already have that
covenant in your hand and give you that assurance.
Commissioner Suarez: Mr. Chairman, can I --?
Chair Sarnoff You're recognized, Commissioner Suarez.
City of Miami Page 76 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Commissioner Suarez: Thank you, Mr. Chairman. I think that's an interesting idea. I think
Commissioner Carollo also made a -- had a question prior to the break about the additional
parcel. I'm not sure that -- it's not outlined there, what the additional parcel because it's not a
swap of the PR for that.
Vice Chair Carollo: Right. It's a --
Commissioner Suarez: It a swap of essentially the same sized parcel at the end of the block,
right? Thank you. And so I think maybe another potential -- I don't know what your time frame
is for closing on that on that piece of land, but if you're going to proffer things that we can look
at between first reading and second reading, you know, I think it would be helpful from a
perspective of a Commission that is concerned about reduction in parkland, number one, and a
follow-through on a proposed development that, you know, that parcel has already been
acquired by that time. Is that something that can be done? Or is that within the timeline of the
contract that you currently have?
Ms. Sibila: I don't know if the timing is going to work out specifically as you laid it out. The
way that the funding would be allocated for the purchase would be within the purchase funding
for our project for the sites that we're purchasing from the City. So in the line-up that we've
created, it would happen at the same time as the construction financing comes into place. We'd
get the construction financing, the City transfers us those properties, and we transfer this one at
the same time. And for an earlier question that this Board had was the actual square footages.
It's about 30 square feet less than our parcel. And the reason being is since it's a corner lot, it
has an additional radius dedication.
Vice Chair Carollo: So my vision isn't that bad after all.
Chair Sarnoff I have some questions.
Mr. Hernandez: I was going to ask a question. If the --
Chair Sarnoff How can you --
Mr. Hernandez: -- assignment of that parcel to the City, if it could be a condition to the
conveyance of the land?
Chair Sarnoff Somebody say some -- cannot --
Gilberto Pastoriza: Commissioner, Gil Pastoriza, 2525 Ponce. I think --
Chair Sarnoff You're getting paid for this, Gil?
Mr. Pastoriza: Right now I'm not being paid for this.
Chair Sarnoff Okay.
Mr. Pastoriza: No.
Chair Sarnoff So the advice is worth what you're getting. I'm just kidding.
Mr. Pastoriza: Yes. The thing in tying the two properties, that is going to be very difficult,
Commissioner, because we're not ready within 30 days to really close on that deal, okay.
Chair Sarnoff I have some questions. It says $343, 000 of HOME funding which comes from the
City of Miami; $1.6 million of surtax from the Miami -Dade County; $7.5 million from the income
City of Miami Page 77 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
-- low-income housing tax credit program. IfI tallied that up, that's about 8.3, $8.4 million.
What is the square footage of this housing project and what is it going to cost per square foot to
build this?
Ms. Sibila: I want to say -- and they'll clam -- the total construction cost is a little bit over $10
million. They have additional funding from private money to fill in the gap between what the
state, federal and local money that we're getting.
Chair Sarnoff But my question's a little more curious. Is it $300 a square foot, $200 a square
foot, $1,000 a square foot?
Bruce Carlson: Bruce Carlson, 242 Southwest 5th Street. The actual square footage is roughly
69,000 square feet. That's the floor area, not --
Chair Sarnoff All right.
Mr. Carlson: -- including the balconies or stairs or built environment.
Chair Sarnoff I'm going to ask now my CPA (Certified Public Accountant) to give me a square
footage estimate.
Mr. Carlson: In actuality, it'd be about $150 a square foot to 100 --140 to 150.
Chair Sarnoff Okay. So it's -- okay.
Mr. Carlson: It is reasonable.
Chair Sarnoff All right. You know, let me just say something to my fellow Commissioners. I'm
not the guy up here that's going to be exuding affordable housing. When I first came on this
Commission -- I almost want to use that French word, which is like the (UNINTELLIGIBLE) of
the day. The issue of the day was affordable housing, andl very much sat here in amazement
because I really thought where are the jobs? It was all about jobs. And everybody was like it's a
3.4 percent unemployment rate. Are you a moron? Andl think a couple of times Commissioner
Sanchez may have actually called me that, which was fine. Andl didn't understand why all we
talked about was affordable housing. We didn't even talk about the economy. We didn't even
talk about what it took to afford a house. Andl said to them back in --I think it was my first
meeting, January 2007. I said there's going to be plenty of affordable housing. Just wait. And it
looks like there is plenty of affordable housing. Andl think our unemployment rate now in the
City ofMiami is 11.4 percent. Andl'm not saying have a crystal ball. What am really trying
to say very inartfully [sic] to everybody is I'm not a big advocate of affordable housing, yet I will
tell you one company I met during my days of being a Commissioner that is truly a great
affordable housing developer and that's Carrfour. Andl could tell you stories about what think
about affordable housing. They do not hold true to Carrfour. Carrfour is an amazing affordable
housing developer. They do what they say and they say what they do. Andl'm a little bit
surprised, quite frankly, that this -- andl think probably the Manager is too -- is controversial
because this is going to place what appears to be, in my estimation, very attractive housing for a
very affordable price that has the magic low-income housing tax credit program, and you're
going to find very few people able to qualf or be in that lucky lottery of receiving this. And
what we're arguing over is park space. Andl think everybody would know I'm probably the
biggest park advocate in this -- at least on this dais, and hopefully, I won't be 'cause I hope there
are people that take even a more significant role in that than I have. And we're talking about 30
square feet. Andl heard some people make some arguments -- andl think they're nice people --
that who are these people that are going to move in here and how are they going to affect the
neighborhood? And right away you're indicating these are not good people and you're
indicating that you don't know who they are and -- you know, I don't know that Commissioner
City ofMiami Page 78 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Suarez gets to say to the next -door neighbor "And who is that person moving in next door and
what are they all about?" You have an amazing amount of land in Liberty City that needs to be
utilized and it needs to be utilized well and served well. And everything I'm seeing in this
particular project seems to indicate that the square footage cost is correct. They got that
amazing lottery win. You are trading one park space for another park space. Yes, you're not
netting park space, but you know what you're netting? Taxpayers, taxpayers. You're going to be
netting people who are going to be paying ad valorem taxes to the City ofMiami and, yes, we
need to find more spark space. Absolutely right, absolutely correct. But is this the issue? Is this
the housing project that you want to expend your energy, your political capital in opposing?
'Cause I don't see it. And mean, I wish there was a District 5 Commissioner here, but I just
don't see this. I've been critical, to be quite frank, of the Liberty City Trust at times, but this a
good project. I mean, there's nothing here that doesn't seem to meet any kind of muster in terms
of a good affordable housing project, so -- andl wanted to go on the record in saying -- I'm
usually not the guy that's going to be up here advocating for affordable housing. If you guys
wait another 10 months, there'll be a lot more affordable housing. And if you wait another year,
there'll be a lot of commercial development available 'cause we're not done yet, folks.
Unfortunately, we're not done. So with that said, I don't know if we had a motion.
Commissioner Suarez: I'll make a motion.
Chair Sarnoff Is there a second?
Vice Chair Carollo: What -- was there a motion?
Commissioner Suarez: The motion is to change the zoning.
Maria J. Chiaro (Deputy City Attorney): This is the land -use change and then there'll be --
Commissioner Suarez: Right.
Ms. Chiaro: -- a companion --
Commissioner Suarez: Oh, I'm sorry.
Ms. Chiaro: -- on the zoning change.
Commissioner Suarez: A land use.
Chair Sarnoff Are you willing to proffer your covenant?
Ms. Sibila: Yes. We're willing to put it under our name. It'll be effective once it's closed and it's
under our name. It'll happen simultaneously and you'll be holding that, so we will commit to it
fullheartedly.
Chair Sarnoff Is that for this one or the next one?
Ms. Chiaro: That will be this -- the next one.
Chair Sarnoff Okay. All right, so we have a motion and we have a second?
Vice Chair Carollo: Second for discussion. I just want to say a few things for the record.
Chair Sarnoff I'm sorry. You're recognized.
Commissioner: Thank you, Mr. Chairman. How things -- how a Commission change within a
City ofMiami Page 79 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
few months, huh? How things change on a Commission, huh? With that said, I think
Commissioner Suarez says how he's a proponent of affordable housing and, in all reality, so am
I, but at the same time, I think the issue that I brought was the park space and the assurance that
it will be a swap, even though it's not going to be a swap. I wanted some assurance that it will
happen because, yes, even though affordable housing is important to me, so is park space. And
what I don't want is to rezone it, you get your project done, something happens, and then next
thing you know you can't purchase it or it falls through or so forth. Where are we at, you know?
We lost park space. So that was the issue that I brought up, Mr. Chairman, andl think
Commissioner Suarez just brought up or asked if somehow there could be some type of condition
or subject to where we could get some assurance that the swap would actually occur and that
this project will actually be built, as it was one of your concerns, Chairman Sarnoff.
Chair Sarnoff Well, there's two answers to your question. They will proffer a covenant on the
next PZ (Planning & Zoning) item. That is the covenant that they will build that particular
project. The other thing we have in our pocket, they don't build, we rezone it back to park. It's
our land, so --
Commissioner Suarez: I think that --
Chair Sarnoff All right, let's call the question.
Commissioner Suarez: Let's do it.
Chair Sarnoff This is a -- is this an ordinance?
The Ordinance was read by title into the public record by Deputy City Attorney Maria J. Chiaro.
Ms. Thompson: Your roll call.
A roll call was taken, the result of which is stated above.
Ms. Thompson: The ordinance has been passed on first reading, 3-0.
PZ.5 08-00680zc ORDINANCE First Reading
AN ORDINANCE OF THE MIAMI CITY COMMISSION WITH
ATTACHMENT(S) AMENDING PAGE NO. 12, OF THE ZONING ATLAS OF
ORDINANCE NO. 11000, AS AMENDED, THE ZONING ORDINANCE OF THE
CITY OF MIAMI, ARTICLE 4, SECTION 401, SCHEDULE OF DISTRICT
REGULATIONS, BY CHANGING THE ZONING CLASSIFICATION FROM PR
PARKS AND RECREATION TO SD-1.1 KINGS HEIGHTS ORCHARD VILLA
SPECIAL DISTRICT, FOR THE PROPERTY LOCATED AT APPROXIMATELY
1421 NORTHWEST 61ST STREET, MIAMI, FLORIDA; MAKING FINDINGS;
CONTAINING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN
EFFECTIVE DATE.
08-00680zc Analyisis.pdf
08-00680zc Zoning Map.pdf
08-006801u & 08-00680zc Aerial Map.pdf
08-00680zc PAB Resos.pdf
08-00680zc CC Legislation (Version 2).pdf
08-006801u & 08-00680zc Exhibit A.pdf
08-00680zc CC FR 12-17-09 Fact Sheet.pdf
LOCATION: Approximately 1421 NW 61 st Street [Commissioner - District 5]
City of Miami Page 80 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
APPLICANT(S): Pedro G. Hernandez, City Manager, on behalf of the City of
Miami
FINDING(S):
PLANNING DEPARTMENT: Recommended approval.
PLANNING ADVISORY BOARD (PAB): Recommended denial to City
Commission on September 16, 2009 by a vote of 7-0. Also on September 16,
2009, the PAB recommended to the City Commission to consider increasing the
size of the existing "Parks and Recreation" zoning in this area and direct the
Planning Department to re-examine the existing "R-3" zoning on this block and
surrounding blocks, by a vote of 7-0. See companion File ID 08-006801u.
PURPOSE: This will change the above property to SD-1.1 King Heights
Orchard Villa Special District.
Motion by Commissioner Suarez, seconded by Vice Chairman Carollo, that this matter be
PASSED ON FIRST READING PASSED by the following vote.
Votes: Ayes: 3 - Commissioner Carollo, Sarnoff and Suarez
Chair Sarnoff All right, PZ.5 is the companion item. I don't think opened up the public
hearing simultaneous. Did I, Madam Clerk?
Ms. Thompson: Yes, you did. It's my understanding that you treated them as companions; you
took all your public input and then you closed the meeting.
Chair Sarnoff All right. So is there now a motion on PZ.5?
Commissioner Suarez: I make the motion.
Chair Sarnoff First off is there a covenant that they'd like to proffer?
Ms. Sibila: Yes. We'd like to proffer a covenant that between now and second reading, we will
tie ourselves to the development plan as proposed today and has been approved -- or has been
reviewed by the Internal Design Review Committee and the Zoning Department.
Chair Sarnoff All right. Now, do I have a motion?
Commissioner Suarez: I make the motion.
Chair Sarnoff Is there a second?
Vice Chair Carollo: Second, butt just want to verify all that legal language means that we're
going to have a swap of land and it's going to be built and we have some assurance?
Chair Sarnoff The covenant will do that for us.
Vice Chair Carollo: Second.
Chair Sarnoff All right, we have a motion and we have a second. All in favor -- Oh, I'm sorry;
it's an ordinance.
The Ordinance was read by title into the public record by Deputy City Attorney Maria J. Chiaro.
Ms. Thompson: And may I ask, Chair, of the City Attorney what bearing does the covenant has
as far as the motion on the exact -- on the -- I'm sorry -- the ordinance?
City of Miami Page 81 Printed on 1/8/2010
City Commission
Meeting Minutes December 17, 2009
Maria J. Chiaro (Deputy City Attorney): No. We will accept the covenant as proffered on
second reading. The record is clear, however, that it has been proffered.
Ms. Thompson: Thank you. Ready for your roll call.
A roll call was taken, the result of which is stated above.
Ms. Thompson: The ordinance has been passed on first reading, 3-0.
END OF PLANNING AND ZONING ITEMS
CONTINUATION OF MEETING TO DECEMBER 22, 2009 AT 9:00 AM
A motion was made by Chair Sarnoff, seconded by Vice Chair Suarez, and was passed
unanimously, to recess the Regular Commission meeting until December 22, 2009 at 9 a.m.
ADJOURNMENT
A motion was made by Chair Sarnoff, seconded by Commissioner Suarez, and was passed
unanimously, to adjourn the December 22, 2009 Commission Meeting.
City of Miami Page 82 Printed on 1/8/2010