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HomeMy WebLinkAboutOMNI CRA 2010-05-13 Supplemental MinutesCity of Miami City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Meeting Minutes Thursday, May 13, 2010 5:00 PM Supplemental Agenda Miami City Hall 3500 Pan American Drive Miami, Florida 33133 OMNI Community Redevelopment Agencies Marc David Sarnoff, Chairman Francis Suarez, Vice -Chairman Wifredo (Willy) Gort, Commissioner Frank Carollo, Commissioner Richard P. Dunn II, Commissioner CRA OFFICE ADDRESS: 49 NW 5th ST, SUITE 100, Miami, FL 33128 Phone: (305) 679-6800, Fax: (305) 679-6835 OMNI Community Redevelopment Agencies Meeting Minutes May 13, 2010 INVOCATION AND PLEDGE 1. 10-00616 Present: Commissioner Dunn II, Chair Sarnoff, Vice Chair Suarez, Commissioner Carollo and Commissioner Gort On the 13th day of May 2010, the Board of Commissioners of the OMNI Community Redevelopment Agency of the City of Miami met in regular session at Miami City Hall, 3500 Pan Amerian Drive, Miami, Florida. The meeting was called to order by Chair Sarnoff at 8: 37 p.m. and was adjourned at 8: 56 p.m. Note for the record: Comniissioner Carrollo entered the OMNI CRA Meeting at 8: 41 p.m. ALSO PRESENT: James H Villacorta, Interim Executive Director, CRA Clarence Woods, Assistant Executive Director, CRA Gail A. Dotson, Assistant General Counsel, CRA William R. Bloom, Special Counsel, CRA Pamela L. Latimore, Assistant Clerk of the Board CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("CRA") RATIFYING THE CRA'S $3,100,101 BID RESPONSE TO THE MIAMI-DADE SCHOOL BOARD'S RFB NO. 038-KK10 FOR THE PURCHASE OF THE PROPERTY AT 29 N.W. 13TH STREET, MIAMI, FLORIDA; AUTHORIZING THE ISSUANCE OF THE REQUIRED GOOD FAITH DEPOSIT, IN AN AMOUNT NOT EXCEED $310,010.10, AND EXECUTION OF A DUE DILIGENCE AGREEMENT, IN THE EVENT THE CRA IS THE SUCCESSFUL BIDDER; AUTHORIZING THE EXPENDITURE OF FUNDS, IN AN AMOUNT NOT TO EXCEED $50,000, FOR ENVIRONMENTAL INSPECTIONS OF SAID PROPERTY; AUTHORIZING THE PURCHASE OF SAID PROPERTY, IN AN AMOUNT NOT TO EXCEED $3,100,101, PLUS CUSTOMARY CLOSING COSTS, ADJUSTMENTS, AND PRORATIONS; AUTHORIZING SUCH ADDITIONAL INSPECTIONS AND DUE DILIGENCE DEEMED NECESSARY; FURTHER AUTHORIZING THE EXECUTION OF ALL DOCUMENTS NECESSARY FOR SAID PURPOSE, IN A FORM ACCEPTABLE TO SPECIAL COUNSEL; FUNDS TO BE ALLOCATED FROM OMNI TAX INCREMENT FUND, "PURCHASE LAND," ACCOUNT CODE NO. 10040.920101.662000.0000.00000. File # 10-00616 Cover Memo 05-13-2010.pdf File # 10-00616 Financials 05-13-2010.pdf File # 10-00616 Backup 05-13-2010.pdf File # 10-00616 Legislation 05-13-2010.pdf Motion by Board Member Dunn II, seconded by Board Member Gort, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: Commissioner Dunn II, Commissioner Gort, Chair Sarnoff, Commissioner Carollo and Vice Chair Suarez CRA-R-10-0045 Chair Sarnoff Okay, supplemental agenda. City of Miami Page 2 Printed on 1/11/2011 OMNI Community Redevelopment Agencies Meeting Minutes May 13, 2010 James H. Villacorta (Interim Executive Director, Community Redevelopment Agency): Yeah. Moving to the supplemental agenda, item number 1 is a resolution of the Board of Commissioners of the Omni Redevelopment District Community Redevelopment Agency ratifying the CRA's (Community Redevelopment Agency's) $3,100,101 bid response to the Miami -Dade School Board's RFB (Request for Bids) No. 038-KK10 for the purchase of the property at 29 Northwest 13th Street, Miami, Florida; authorizing the issuance of the required good faith deposit in an amount not to exceed $310, 010.10 and execution of a due diligence agreement in the event the CRA is deemed the successful bidder; further authorizing the expenditure of funds, in an amount not to exceed $50, 000, for environmental inspections of said property and authorizing the purchase of said property, in an amount not to exceed $3,100,101, plus customary closing costs, adjustments, and proration; authorizing such additional inspections and due diligence deemed necessary; further authorizing the execution of all documents necessary for said purpose. This -- at the request of the Chair of the Omni CRA, the CRA put in a bid for the Miami School Board's skills building immediately across from Karu & Y on Northwest 14th Street. We -- there were two bids, one for $3 million; our bid was for $3,101,000. We appeared to be the successful bidder. The School Board is taking up the item tonight at their meeting. If we are the successful bidder, we will need to provide a deposit and a due diligence agreement wherein we will examine the property. The building is in the redevelopment plan and is listed as a property that should be redeveloped into a commercial and retail space. We've been speaking with the City about using it for film post production, using the building for that purpose. It is -- the purchase price is below its assessed for tax value in 2009. We were unable to -- the bid went out between this past meeting and the current CRA meeting. We now must come up with a deposit of $310, 000 if we want to move forward. Chair Sarnoff All right. We have a motion -- Commissioner Dunn: So move. Chair Sarnoff -- by Commissioner Dunn. Is there a second? Commissioner Gort: Second. Chair Sarnoff Second by Commissioner Gort. Discussion, gentlemen. Commissioner Carollo: Discussion. Chair Sarnoff. Go ahead. Commissioner Carollo: Mr. Villacorta, I know it's a supplemental item, but when was it delivered to my office? Mr. Villacorta: It was delivered to your office yesterday afternoon. Commissioner Carollo: I guess that's why I didn't get a chance to read the whole thing. And this is -- and the purpose for the purchase of this building is for what? Mr. Villacorta: The CRA has been trying to acquire this property for going on 15 years. In your package you'll see there's letters from the School Board back -- trying to work out agreements with the CRA for the purchase of this building. About a month ago, the School Board decided to put it out for bid. We would be using it to redevelop it as a retail commercial complex or as a film post production complex. We've also had operators approach us as -- to use it as a restaurant facility for large banquets and try and draw tourists from Miami Beach Convention -- from Miami Beach to dinner service at this site. Currently it's being used as a warehouse to store schoolbooks and desks and chairs. It would also be suitable for use as an employment center, City of Miami Page 3 Printed on 1/11/2011 OMNI Community Redevelopment Agencies Meeting Minutes May 13, 2010 which the City is looking for the 10,000 square feet. It's 89,000 square feet on 121,000 square foot lot in the heart of the media entertainment district, as designated by the Downtown Development Authority, as designated by the City of Miami, and as designated by the CRA. This has been a long, long process. In the past, the School Board has refused to turn this site over to us or to allow us to purchase this site. Recently, they put it up for bid. The other bidder was a equipment company that would have used it to warehouse equipment. It's not really in keeping with what we're trying to do to redevelop the intersection of North Miami Avenue. This is two, three blocks down from the Performing Arts Center. It would be an acquisition that is in accordance with the redevelopment plan, that has been spoken about in the redevelopment plan since 1992. And you know, we were, again, 3 percent over the other bid and under the assessed for taxes value of this building. It's a huge parcel that we've already had inquiries about renting and using and inquiries from the City about using. Commissioner Carollo: Mr. Chairman. Chair Sarnoff Go ahead. Commissioner Carollo: I know you've had inquiries, but nothing solid yet, correct? Mr. Villacorta: The award was only -- the bid was -- the bids were opened at 2 p.m. on the 11 th. Today's the 13th, so we've had 48 hours. But in the past, we've had promoters in the area come to us and ask us would we give them grants to -- and low interest loans to try and acquire this facility in past years when the School Board was not willing to sell it at the time. Commissioner Carollo: I'm just looking at three point some million. It's a lot of money. I'm not even sure, you know, when we're going to get tapped out 'cause it seems like we're, you know, constantly giving out, you know, monies so -- and I haven't really had a chance to, you know, look at the accounts and see, you know, where are all these grants that we're -- or I don't know if grant's the proper word, but all these allocations -- Mr. Villacorta: Expenditures. Commissioner Carollo: -- you know, to the point where we start tapping out. Another concern that I have is not just acquiring the building. If we don't rent it out or so forth, who's going to be paying for the maintenance of the building? Who's going to be -- you know, the upkeep and all that? I mean, that's going to be something that, you know, is going to be -- I don't want to say in perpetuity, but you know, we're going to have to be ponying up. Mr. Villacorta: That is something to be considered. It's something we have considered. We currently have money in the budget available to acquire this property without impinging on any of our other commitments in the Omni CRA. We -- the plan calls for that area to be redeveloped. We would certainly want to prevent it from being its continued use as a warehouse. As you step out ofKaru & Yand the Ice Palace film studio, this is what you see directly across the street, iron bars, a facade that's -- while water tight and solid, it's shabby and it's being maintained as a warehouse. If you're in that area at night, at that intersection of North Miami Avenue and 14th Street, you can see the clubs that are starting to come there, the interest in the area that's starting to come there. This is an opportunity to acquire a major parcel at less than its assessed for taxes value. It works out to something -- $25.50 per square foot for this piece of property. We can put out an RFP (Request for Proposals) for proposals. If -- this would be an acquisition that would greatly -- we own no property in the Omni CRA. We own -- in either CRA. We own one building, the Ward Rooming House in Overtown. When the City comes to us and looks for locations -- we've had interest from a manufacturer to go in there, though that may not be the use you want to put in that media entertainment district. I'm sorry, we own the fire station that was given to us across the street, and that is being renovated by the City with the idea to put a restaurant in there. This is the heart of that media entertainment district. The opportunity to acquire this City of Miami Page 4 Printed on 1/11/2011 OMNI Community Redevelopment Agencies Meeting Minutes May 13, 2010 property after literally 15 years of trying is one I would recommend to the Board. Commissioner Carollo: Listen, I know it's late. At the same time, you know, I don't appreciate that, you know, I received it yesterday afternoon. With that said, three point something million dollars is a lot of money, and you know, I'm just concerned that, you know, we're spending the money and that doesn't guarantee us that that parcel of land doesn't remain the same or doesn't improve or so forth. And I know it's something that the Chairman really wants. I'm going to defer to his judgment and let him speak on the item. Chair Sarnoff Well, as you all know, the State has just given $252 million in tax incentives to film industry to come to Miami. We have been looking for a film location -- I don't want to say what the other location is 'cause there's still hopefully a bid out on that. And I think this has flexibility, this site. I think this site can be used as a sound stage. I think it could be used as a post production studio. I think it can be used, if need be -- I happen to know the manufacturer that would want to manufacture in there. However, I'm not sure that's the highest and best use you would necessarily want to use it for. I'm looking for a jobs program. I'm looking to create jobs. I think the acquisition of this property gives us the ability to really put it to a lot of people who talk a big talk but don't necessarily -- we'll find out if they walk the walk. The film industry has been saying to us, you know, where's your skin in the game? Where's your skin in the game? Now it's for us to say, where's your skin in the game? If it doesn't come, there are many other uses we could put forth with this. This is a huge piece of property in Omni that we can easily redevelop. This is what you do in hard times. You acquire what cannot have been acquired otherwise. And maybe it's Omni's turn to just simply fix this part of the Omni. This will have an immediate impact. Unfortunately, it came quickly. We tried to negotiate directly with the School Board. We didn't want to go to an RFP. They went through an RFP [sic]. We only learned, I think, night before last that we won. We won by $101, my recollection, and I think you have to take bold steps. Is this a bold step? I don't quite categorize it as bold, but I think it's a big step. And I think this is something we should -- if you're going to bet on somebody, bet on yourself. So let's bet on ourselves. Commissioner Gort: Well -- Commissioner Dunn: Go ahead. Chair Sarnoff. Go ahead. Commissioner Gort: Okay. The -- I think for a long time that whole corner, it was -- the film industry was pretty much in there make [sic] a lot of the film. And I recall at one time they wanted to buy the fire station. They owned four different buildings. I forget the gentleman's name who's the -- Chair Sarnoff Probably Rodriguez. Commissioner Gort: Right. Is he still in that area? Chair Sarnoff Yeah, yeah. Commissioner Gort: He's still there. Mr. Villacorta: He was still there and he was 15 minutes late to turn in a bid. Commissioner Gort: I know that area's got potential. The people are beginning to come into that one area, and this type of development I think will help, and that's one hole that we have within the district that needs to be fixed. City of Miami Page 5 Printed on 1/11/2011 OMNI Community Redevelopment Agencies Meeting Minutes May 13, 2010 Mr. Villacorta: We've also been working very closely with the American Black Film Festival. They are interested in working with us to do more things, but we don't have the venues. The fire station is under reconstruction. CIP (Capital Improvements Program) is working on it. This area, with this impetus and the property that we own, the property that Eugene owns, the clubs down the street -- We just, this year, gave a grant to Urbanite Bistro. They are hanging on. They're looking for someone to bring more investment into the area. The School Board is perfectly -- or was perfectly willing to let this sit as a storage warehouse for however many more years. The other bidder that got their bid in on time was also an equipment company. It would not help turn this area into the media entertainment district that the City, the Downtown Development Authority, and the CRA all call for in their development plans for the area. Commissioner Dunn: Mr. Chair. Chair Sarnoff You're recognized. Commissioner Dunn: Just on the Southeast Overtown/Park West, we just purchased a building, so I know the importance of trying to secure property and land, particularly in this buyer's market. I think that's what realtors call it. In light of the fact that Mr. Villacorta has indicated that this will not infringe -- or impinge on the current budgetary issues, I feel very comfortable with the -- at least us taking a bold step. Mr. Villacorta: We -- recently, we gave a grant to a facility a few blocks away. Perhaps you read the article about the guerilla developer in the Miami Herald a few days ago. We gave him a grant to rehab his building. We gave his tenant a grant to open a club. That club is now booked solid for events through October. When we tried to have the Black Film Festival come there to perform the teaching for the student item that you just passed, the movie and cinema lab, they were unable to accommodate us. This sort of reuse of this building will be a plus for the area. I'm not saying you won't have to spend money in maintenance; you will, but it's the sort of investment that the CRA has the wherewithal, we have the funds available. We should be moving forward in this area. Chair Sarnoff All right. Commissioner Suarez? No. All right, let's call the question. All in favor, please say aye." The Commissioners (Collectively): Aye. Chair Sarnoff. Okay. Is that it? Mr. Villacorta: That's -- Chair Sarnoff. Move to adjourn. Is there a motion? Commissioner Gort: Yeah. Vice Chair Suarez: So move. Commissioner Dunn: So move -- second. Chair Sarnoff Second. All in favor, aye." The Commissioners (Collectively): Aye. Chair Sarnoff Okay. ADJOURNMENT City of Miami Page 6 Printed on 1/11/2011 OMNI Community Redevelopment Agencies Meeting Minutes May 13, 2010 A motion was made by Commissioner Gort, seconded by Commissioner Carollo, and was passed unanimously, to adjourn today's OMNI CRA Meeting. City of Miami Page 7 Printed on 1/11/2011