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HomeMy WebLinkAboutOMNI CRA 2011-03-28 MinutesCity of Miami City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Meeting Minutes Monday, March 28, 2011 5:00 PM Frederick Douglass Elementary School 314 N.W. 12th Street Miami, Florida OMNI Community Redevelopment Agency 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 Agency Meeting Minutes March 28, 2011 FINANCIALS 1. 11-00261 RESOLUTIONS 2. 11-00263 Present: Commissioner Gort, Commissioner Dunn II, Chair Sarnoff and Vice Chair Suarez Absent: Commissioner Carollo On the 28th day of March 2011, the Board of Commissioners of the Omni Redevelopment District Community Redevelopment Agency of the City of Miami met in regular session at Frederick Douglass Elementary School, 314 Northwest 12th Street, Miami, Florida. The meeting was called to order by Chair Sarnoff at 5: 25 p.m. and was adjourned at 5: 43 p.m. ALSO PRESENT: Pieter Bockweg, Executive Director, CRA H. Bert Gonzalez, Assistant Executive Director, CRA Veronica Xiques, Assistant General Counsel, CRA Priscilla A. Thompson, Clerk of the Board CRA REPORT FINANCIAL SUMMARY FOR THE PERIOD ENDING FEBRUARY 28, 2011. File 11-00261 03-28-2011 Financial Summary.pdf PRESENTED Chair Sarnoff. All right. Want to welcome everybody to the meeting of the Omni CRA (Community Redevelopment Agency). We're going to get right to it. I'd like the CRA report on financials. You're recognized for the record, Mr. Director. [Later...] Chair Sarnoff All right, let's get back to the financials. Miguel. Miguel Valentin: Yes, sir. Miguel Valentin, CRA (Community Redevelopment Agency) financial officer. We are going to be presenting the combined statement of financial position as of February 28, 2011. For Omni CRA, the cash balance that we're disclosing is 39,224,804. Again, there is no reportable condition to report to the board. Chair Sarnoff Thank you. Any questions? All right, thank you, gentlemen, for attending the Omni CRA. We're going back to the Southeast Overtown/Park West CRA. Priscilla A. Thompson (Clerk of the Board): So your meeting stands adjourned. Chair Sarnoff. Meeting stands adjourned. Ms. Thompson: Thank you. Chair Sarnoff Sorry, Madam Clerk. CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY City of Miami Page 2 Printed on 8/29/2011 OMNI Community Redevelopment Agency Meeting Minutes March 28, 2011 ("CRA") AUTHORIZING THE EXERCISE OF THE FIRST OPTION TO EXTEND THE TERM OF THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CRA AND SFM SERVICES, INC. TO PROVIDE LANDSCAPE MAINTENANCE SERVICES ON CRA PROPERTIES FOR ONE (1) ADDITIONAL YEAR, AT A TOTAL COST NOT TO EXCEED $4,452; ALLOCATING FUNDS FROM OMNI TAX INCREMENT FUND, "OTHER CONTRACTUAL SERVICES," ACCOUNT CODE NO. 10040.920101.534000.0000.00000. File 11-00263 03-28-2011 Cover Memo.pdf File 11-00263 03-28-2011 Financial Form.pdf File 11-00263 03-28-2011 Backup (Landscape Maintenance Sites).pdf File 11-00263 03-28-2011 Backup (Original Contract).pdf File 11-00263 03-28-2011 Legislation.pdf Motion by Board Member Suarez, seconded by Board Member Dunn II, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: Commissioner Gort, Commissioner Dunn II, Chair Sarnoff and Vice Chair Suarez Absent: Commissioner Carollo CRA-R-11-0018 Chair Sarnoff All right, moving on. We're going to go to CRA (Community Redevelopment Agency) resolutions. CRA resolution number 2. Pieter Bockweg (Executive Director, Community Redevelopment Agency): Mark. Mark Spanioli (Director of Engineering and Construction): Good evening, Commissioners. Mark Spanioli, CRA. This is a companion item to the Southeast Overtown/Park West. It's a resolution of the Board of Commissioners of the Omni CRA authorizing the exercise of the first option to extend the term of the professional services agreement between the CRA and SFM Services, to provide landscape maintenance services on CRA properties for one additional year, at a total cost not to exceed $4, 452. Vice Chair Suarez: Move it. Chair Sarnoff All right, we have a motion by -- Commissioner Dunn: Second. Chair Sarnoff -- Commissioner Suarez, second by Commissioner Dunn. Any discussion, gentlemen? Hearing no discussion, all in favor, please say aye." " The Commissioners (Collectively): Aye. Mr. Spanioli: Thank you . 3. CRA RESOLUTION 11-00265 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING THE PURCHASE OF COMMERCIAL GENERAL LIABILITY AND PROPERTY INSURANCE COVERAGE FOR THE PROPERTY LOCATED AT 29 N.W. 13TH STREET, MIAMI, FLORIDA, THROUGH PAN AM ASSURANCE AGENCY, INC., FOR A ONE (1) YEAR PERIOD COMMENCING City of Miami Page 3 Printed on 8/29/2011 OMNI Community Redevelopment Agency Meeting Minutes March 28, 2011 4. 11-00276 MARCH 29, 2011, IN AN AMOUNT NOT TO EXCEED $55,000; REALLOCATING FUNDS THEREFOR FROM OMNI GENERAL OPERATING FUND, "BUDGET RESERVE," ACCOUNT CODE NO. 10030.920101.896000.0000.00000 TO OMNI GENERAL OPERATING FUND, "INSURANCE," ACCOUNT CODE NO. 10030.920101.545000.0000.00000. File 11-00265 03-28-2011 Cover Memo.pdf File 11-00265 03-28-2011 Financial Form.pdf File 11-00265 03-28-2011 Backup.pdf File 11-00265 03-28-2011 Legislation.pdf Motion by Board Member Suarez, seconded by Board Member Dunn II, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: Commissioner Gort, Commissioner Dunn II, Chair Sarnoff and Vice Chair Suarez Absent: Commissioner Carollo CRA-R-11-0019 Chair Sarnoff. Item number 3, Mr. Director. Pieter Bockweg (Executive Director, Community Redevelopment Agency): Mr. Chairman, item number 3 is the issuance of insurance to Pan Am Assurance Agency for the insurance of the skills building that we recently purchased from the School Board. The total amount is not to exceed $55, 000. Chair Sarnoff. Mr. Director, is this a comprehensive policy that will cover all liability as well as damage to the property? Mr. Bockweg: This is property and liability insurance. Chair Sarnoff All right. Is there a motion? Vice Chair Suarez: Move it. Commissioner Dunn: Second. Chair Sarnoff. Motion by Commissioner Suarez, second by Commissioner Dunn. Any discussion, gentlemen? Hearing no discussion, all in favor, please say i ye. " The Commissioners (Collectively): Aye. CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("CRA"), WITH ATTACHMENTS, AUTHORIZING THE EXECUTION OF AN ECONOMIC INCENTIVE AGREEMENT, IN SUBSTANTIALLY THE ATTACHED FORM, WITH HOTEL DE L'OPERA, LLC, FOR THE DEVELOPMENT OF THE MIKADO MIXED -USE PROJECT. File 11-00276 03-28-2011 Cover Memo.pdf File 11-00276 03-28-2011 Backup.pdf File 11-00276 03-28-2011 Legislation.pdf File 11-00276 03-28-2011 Legislation (Attachment).pdf File# 11-00276 03-28-2011 Legislation (Signed).pdf City of Miami Page 4 Printed on 8/29/2011 OMNI Community Redevelopment Agency Meeting Minutes March 28, 2011 Motion by Board Member Suarez, seconded by Board Member Dunn II, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: Commissioner Gort, Commissioner Dunn II, Chair Sarnoff and Vice Chair Suarez Absent: Commissioner Carollo CRA-R-11-0020 Chair Sarnoff. All right, Item number 4. Pieter Bockweg (Executive Director, Community Redevelopment Agency): Mr. Chair, item number 4 is a financial incentive agreement with the CRA (Community Redevelopment Agency) and Mikado. We believe that this project is a benefit to the CRA and the overall mission of the CRA. It will do away with slum and blight, provide guaranteed jobs as far as operations. It will also provide job and training opportunities during the construction phase of the contract, and it will also generate more TIF (Tax Increment Fund) for the area to then again be reinvested within the Omni CRA. I have provided an executive summary to all of you. I'd be more than happy to go through it and answer any questions. In essence, the TIF reimbursement is a maximum of $600, 000. Now what that means is that the total TIF generated for that project will have to be 1.2 million at a minimum for them to be able to achieve their $600, 000 reimbursement. That 600,000 reimbursement is also tied to jobs and the amount of permanent jobs that are present, full-time, as well as the construction cost of the project. The penalties of those monies are a direct reflection of their percentage of the points where they need to be and the reduction of that percentage. And I have some scenarios laid out if you'd like me to go further, Mr. Chair. Chair Sarnoff Yeah. Would you go through the scenarios, 'cause I want to understand exactly how many jobs will be created and how much TIF revenue will go to those jobs. Mr. Bockweg: As of right now, as the contract -- the optimal maximum TIF revenue that will be reimbursed is $600, 000. Twenty-five percent of that is tied to jobs, so let me run it through for you as simplified as I can. It is required that they have a permanent 268 jobs on site at all times, full-time jobs. If they provide 268 jobs, then we'll reimburse a total amount of $300, 000. If they have, for example, 200 jobs, which is a -- they would only have completed 75 percent of their obligation, 25 percent will be deducted from the $300, 000 and so forth. Give you another example. If you have 160 jobs, that is a total of 60 percent of where they need to be of 268 jobs; 40 percent of that $300,000 will be deducted from that TIF reimbursement. Chair Sarnoff And let me see if I understand this. These will be construction jobs followed by permanent jobs, correct? Mr. Bockweg: No, Commissioner. The scenario that I just gave you is based on permanent jobs of 268. There are provisions in here, in the contract that -- an aspirational goal of 30 percent of the workforce on that site during the construction phase will have to be -- will be 30 percent. That includes going out to the community for job fairs. It will also include having the opportunity to generate skill sets and training for new skill sets for those individuals that do not have it. It's important to note that currently this contract will term at the duration of the CRA, which is 2030. We are anticipating to go online, if you will, with this project in 2015. If they do not go online by 2017, there is a penalty phase associated with that. As well as if they do not go online by 2019, this contract is null and void and no reimbursement will be taking place. Chair Sarnoff All right. Let me open up a public hearing. Is anybody from the public wishing to be heard on this item? Please step up. Jeanne Westphal: Good afternoon, Commissioners. My name is Jeanne Westphal. I live at 1750 North Bayshore Drive, Miami, 33132. I live at the Opera Tower, which is the building right next to where the Mikado will be built. I support the project because, first of all, as many of you City of Miami Page 5 Printed on 8/29/2011 OMNI Community Redevelopment Agency Meeting Minutes March 28, 2011 know, I'm a tourism person and this definitely will help tourism into that area. The addition of the Mikado will really make that a hotel complex that will be convenient to the cultural attractions that we have, plus good transportation with the Metromover, and it will be a great asset. Also, talking about jobs, since many of you know my history regarding jobs in the area, definitely this will be an opportunity for the large inventory of people that the Hospitality Institute has and has trained to find jobs, certainly permanent jobs in the hotel, the new hotel, but also construction jobs. So I think we can offer to (UNINTELLIGIBLE) an inventory that they can find and put people to work immediately. So I feel that this is a great asset to the area and I'd like to give my support. Thank you. Chair Sarnoff Thank you, Ms. Westphal. Anyone else wishing to be heard? Mariano Cruz: Yes. Chair Sarnoff Step up quickly. I don't let people take their time here, Mr. Cruz. Mr. Cruz: Disability, okay. Chair Sarnoff. We share that same disability presently. Mr. Cruz: I was in Vietnam while all of you were in college (UNINTELLIGIBLE) and all that, okay. Listen, Mariano Cruz, 122726 Street. I have to say one thing. Anything that happen within City limits is fine with me. I support it because we have to get -- the more buildings we get there, the more revenue we get for the City. And I mentioned the other day at the City Commission, I don't want to see in September anything like happened last September. You do your homework and be ready because I'm going to be there. Even if I don't pay tax in the City or debt service, okay, still when I go and buy something on the street, I have to pay taxes. And I go to the Beach. Remember what I say, 9, 10 percent, you know, the tourist tax there. I pay. I pay taxes in the City when I buy something there, okay. There's nothing more certain than death and taxes. I remember about jobs -- I see Dr. Ahr here. You know, you be coming, and I'm still waiting for the jobs for Allapattah in the Camillus House. It's almost done and there's nothing there for people in Allapattah. And you know, this Camillus House there (UNINTELLIGIBLE) because Allapattah (UNINTELLIGIBLE). I got to tell you that in public because I called you and nothing happened and nothing happened and nothing happened. What do I tell my people when they tell me about jobs for Allapattah? But in Overtown everybody was opposed to Camillus House and we were opposed. And then when Arriola and the Commissioner talked to me, I decide not to oppose. I was the one responsible because Commissioner Regalado at the time, he switched the vote that day, June 24, 2005 because I got good memory, very good memory. I don't need the computer (UNINTELLIGIBLE). Chair Sarnoff Thank you, Mr. Cruz. Mr. Cruz: Oh, that's it. Chair Sarnoff Thank you, Mr. Cruz. Mr. Cruz: No, I support this. Chair Sarnoff Thank you. Mr. Cruz: I support that. Chair Sarnoff I -- Vice Chair Suarez: I move it. City of Miami Page 6 Printed on 8/29/2011 OMNI Community Redevelopment Agency Meeting Minutes March 28, 2011 Mr. Cruz: That give me time to (UNINTELLIGIBLE) -- Chair Sarnoff It was the end I needed to hear, that you support this. I wasn't sure the direction you were going, but I got it now. Vice Chair Suarez: I move the item. Chair Sarnoff Anybody else wishing to be heard on this issue? Mr. Hollo, you're recognized for the record. Jerome Hollo: Good afternoon, board members, Chairman. One Hundred South Biscayne Boulevard, Suite 900. I'm here to answer any questions you might have. And I'd just like to say -- and we're here. We've been working in this community for about 40 years now. We've created a lot of structure. We've created a lot of increment taxes. We've created a lot of jobs. And I've worked -- my company has worked with Ms. Westphal and the Hospitality Institute in the past, and we have hired individuals from the Hospitality Institute, some of which are still working for us in the area, and we look forward to creating this project and enhancing the Omni CRA. Thank you. Chair Sarnoff Thank you, Mr. Hollo. Vice Chair Suarez: Move it. Chair Sarnoff We have a motion by Commissioner Suarez, second -- Commissioner Dunn: Second. Chair Sarnoff -- by Commissioner Dunn. Let me close the public hearing. Any discussion, gentlemen? Anyone wanting to discuss this? Commissioner Gort: I have a couple of questions. Chair Sarnoff. Go ahead. Commissioner Gort: And this is not only with this project, but many of the other projects. We get a lot of the promises that's being made that they're going to create jobs, then at the end we have people like Mr. Cruz coming in front of us that jobs were not created. My question is, the developer's going to be also the owner of the hotel, or that's going to be a different operation? Mr. Hollo: Yes, we are. We've got a separate manager, and there are certain requirements as far as, as you've heard, jobs fairs and hiring, trying to hire as much as 30 percent from the CRA district, if possible. Commissioner Gort: Thank you. The second question is not only to this project but any other project. Whenever the developer is one entity and then somebody else is the one that's going to operate independent, can we hold them to the contract where they have to provide the jobs? If you all recall, we spent quite a few dollars in training people in Overtown so they can get those jobs, so I think that there's a great list of individual waiting to get hired, so I don't think there'll be -- because part of the contract when I look at it is If qualified. "I think within the area with the courses that we've had, we have enough qualified to apply for those jobs, so I hope they go back to there. Mr. Bockweg: Yes. City of Miami Page 7 Printed on 8/29/2011 OMNI Community Redevelopment Agency Meeting Minutes March 28, 2011 Mr. Hollo: I -- Commissioner Gort: Not in particular with your project. This is -- Mr. Hollo: Well, I -- at least -- if you don't mind -- for this contract, the way they use ivalified'fs not -- there's two -- qualified here is defined as being in the Omni CRA, the Southeast Overtown CRA, and the City of Miami. And then we will have to -- when we interview the people, we'll have to see what are they actually in -- not defined qualified to do in the project. And to go to the point about the jobs, no matter who owns the project, if the job -- the full-time jobs aren't met, you don't get the money. Commissioner Gort: You don't get the -- right. Okay. Mr. Hollo: So -- Commissioner Gort: Thank you. Commissioner Dunn: Mr. Chairman. Chair Sarnoff You're recognized for the record -- Commissioner Dunn: Thank you. Chair Sarnoff -- Mr. Chairman. Commissioner Dunn: Thank you. I certainly welcome an addition of a hotel. I would be remiss for various reasons. One, Miami is now, because of the vision that you and many of the residents and developers in that area, in the Omni district understand, we're getting an overflow now from Miami Beach. And in order to be competitive, we have to get people coming back over on the west side of the bay so that we can, one, be competitive, and then, of course, it is a pleasant site -- you cannot overlook the fact that there are many institutes. We know about the various institutes that prepare our young people for -- as well as all ages for jobs in the hotel industry. And, of course, it is -- it's a breath of fresh air. I have to share recently I was visiting someone at the Marriott Marquis, which is some kind of hotel, and to see -- I believe the gentleman, the concierge, couldn't have been no more than about 26 or 27, maybe 20 -- no, I think he was like 22 or 23, and he was an African American. And he said that one day his goal was to own a hotel. And so it -- that was a couple of months ago and I was just -- you know, it was just good to see. And so these are the kinds of things that hopefully will come from our actions and the support of the CRA. Chair Sarnoff Thank you. Commissioner Suarez. Vice Chair Suarez: Thank you, Mr. Chairman. I just have a question for the executive director. What is the incremental revenue that this project is going to generate for the CRA? Mr. Bockweg: Well, the studies that we have done, it's anywhere from $900,000 to 1.2 plus. Obviously, that depends on the property values and et cetera, but they will not be able to get -- Vice Chair Suarez: Right, 50 percent of that. Mr. Bockweg: -- the $600,000, which is the maximum, until they reach 1.2 million, if possible. Vice Chair Suarez: So, in essence, we're going to be generating $600,000 a year in incremental revenue for the CRA and 200-plus permanent jobs? City of Miami Page 8 Printed on 8/29/2011 OMNI Community Redevelopment Agency Meeting Minutes March 28, 2011 5. 11-00264 Mr. Bockweg: That's correct, additional. Vice Chair Suarez: Have we voted on any other item this year that is going to do that for the CRA? Mr. Bockweg: Not as of yet, but there's more to come. Vice Chair Suarez: Okay, just wondering. Chair Sarnoff. All right. You know, government's role and function -- we certainly know the government's role and function in a CRA, and that's to promote development. Good incentives, well-defined incentives can help development. Certainly, maybe three to five years ago, we didn't need those incentives. Certainly, today -- Miami used to be called -- the favorite bird was the crane. It's very hard to find a crane in Miami today. I think this is what I would describe -- and I think Commissioner Suarez hit it directly on the head. We're about to create TIF revenue from revenue that was not going to be here to begin with unless this incentive happened. I think this is a well thought out document, and I want to thank the director for working with this, William Bloom -- is not here with us today -- for equally putting this together. This has been a negotiated deal which has taken a long time, but most deals that have taken a long time are worthwhile endeavors. I think this one really hits it on the mark in terms of the proper incentive. Now one warning to the community. America is the land of opportunity, but not the land of guarantee. So I forewarn you all, just because you show up doesn't mean you're going to get the job. You've got to want the job. You've got to do the job. And you have to have a little moxie to stick with the job. So remember, doesn't mean you're going to get the job, but it's up to you to go out there, pursue it, and then hold the job. And that's really upon you; again, the land of opportunity, not the land of guarantee. All right, all in favor, please say aye." The Commissioners (Collectively): Aye. CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING THE EXECUTION OF AN AGREEMENT, IN A FORM ACCEPTABLE TO GENERAL COUNSEL, WITH AKERMAN, SENTERFITT & EIDSON, P.A. FOR REPRESENTATION AND LOBBYING SERVICES BEFORE CONGRESS AND FEDERAL AGENCIES REGARDING LEGISLATIVE ISSUES AND APPROPRIATIONS REQUESTS, FOR A TWO-YEAR PERIOD COMMENCING APRIL 1, 2011, IN AN ANNUAL AMOUNT NOT TO EXCEED $24,000, FOR A TWO-YEAR TOTAL NOT EXCEED $48,000, PLUS REASONABLE EXPENSES AS APPROVED BY THE EXECUTIVE DIRECTOR; ALLOCATING FUNDS FROM OMNI TAX INCREMENT FUND, "PROFESSIONAL SERVICES," ACCOUNT CODE NO. 10050.920101.531000.0000.00000. File 11-00264 03-28-2011 Cover Memo.pdf File 11-00264 03-28-2011 Financial Form.pdf File 11-00264 03-28-2011 Backup.pdf File 11-00264 03-28-2011 Legislation.pdf Motion by Board Member Suarez, seconded by Board Member Dunn II, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: Commissioner Gort, Commissioner Dunn II, Chair Sarnoff and Vice Chair Suarez Absent: Commissioner Carollo City of Miami Page 9 Printed on 8/29/2011 OMNI Community Redevelopment Agency Meeting Minutes March 28, 2011 DISCUSSION ITEMS 6. 11-00132 CRA-R-11-0021 Chair Sarnoff. Number 5, Mr. Director. PieterBockweg (Executive Director, Community Redevelopment Agency): Mr. Chair, number 5 is the extension of the contract for lobbying services with Akerman Senterfield [sic] for the Omni CRA (Community Redevelopment Agency). Again, I think this is an important aspect to -- for the CRA for us to be recognized at the Florida Delegation up in D.C. (District of Columbia). Vice Chair Suarez: Move it. Commissioner Dunn: Second. Chair Sarnoff. Motion by Commissioner Suarez, second by Commissioner Dunn. Discussion, gentlemen? Hearing no discussion, all in favor, please say aye. The Commissioners (Collectively): Aye. CRA DISCUSSION DISCUSSION ITEM REGARDING MIAMI ACCESS TUNNEL PROJECT. File 11-00132 02-28-2011 Cover Memo.pdf File 11-00132 03-28-2011 Cover Memo.pdf File 11-00132 02-28-2011 Port of Miami Tunnel Update.pdf DEFERRED Chair Sarnoff. All right, item number 6 is a discussion item. Pieter Bockweg (Executive Director, Community Redevelopment Agency): Item number 6 is deferred, Commissioner. Chair Sarnoff. Deferred. City of Miami Page 10 Printed on 8/29/2011