HomeMy WebLinkAboutOMNI CRA 2012-09-13 MinutesCity of Miami
City Hall
3500 Pan American Drive
Miami, FL 33133
www.miamigov.com
Meeting Minutes
Thursday, September 13, 2012
12:00 PM
or thereafter
MIAMI CITY HALL
3500 Pan American Drive, Miami, FL 33133
OMNI Community Redevelopment Agency
Marc David Sarnoff, Chair
Francis Suarez, Vice Chair
Wifredo (Willy) Gort, Commissioner
Frank Carollo, Commissioner
Michelle Spence -Jones, Commissioner
OMNI & MIDTOWN CRA OFFICE ADDRESS:
1401 N. Miami Avenue, 2nd Floor, Miami 33136
Phone: (305) 679-6868
www.miamicra.com
OMNI Community Redevelopment Agency
Meeting Minutes September 13, 2012
1.
12-00968
Present: Commissioner Spence -Jones, Chair Sarnoff, Vice Chair Suarez, Commissioner Carollo
and Commissioner Gort
On the 13th day of September 2012, the Board of Commissioners of the Omni Redevelopment
District Community Redevelopment Agency of the City of Miami met in regular session at Miami
City Hall, 3500 Pan American Drive, Miami, Florida. The meeting was called to order by Chair
Sarnoff at 5: 35 p.m. and was adjourned at 6: 21 p.m.
ALSO PRESENT:
Pieter Bockweg, Executive Director, CRA
H Bert Gonzalez, Assistant Director, CRA
Veronica Xiques, Assistant General Counsel, CRA
Priscilla A. Thompson, Clerk of the Board
CRA RESOLUTION
A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI
REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENTAGENCY
AUTHORIZING THE PURCHASE OF COMMERCIAL GENERAL LIABILITY
AND PROPERTY INSURANCE COVERAGE FOR THE PROPERTY LOCATED
AT 1401 NORTH MIAMI AVENUE, MIAMI, FLORIDA ("FIRE STATION NO. 2"),
THROUGH BLUEPRINT INSURANCE COMPANY, FOR A ONE (1) YEAR
PERIOD COMMENCING SEPTEMBER 1, 2012, IN AN AMOUNT NOT TO
EXCEED $35,000; ALLOCATING FUNDS FROM THE OMNI GENERAL
OPERATING FUND, "INSURANCE," ACCOUNT CODE NO.
10030.920101.545000.0000.00000.
Motion by Board Member Spence -Jones, seconded by Board Member Carollo, that this
matter be ADOPTED PASSED by the following vote.
Votes: Ayes: Commissioner Spence -Jones, Commissioner Carollo, Commissioner Gort and Chair
Sarnoff
Absent: Vice Chair Suarez
CRA-R-12-0057
Chair Sarnoff You guys ready?
Commissioner Spence -Jones: Yes. I'm sorry.
Chair Sarnoff No, that's all right.
Vice Chair Suarez: My apologies.
Chair Sarnoff Get it out of our system now. I want to welcome everybody to September 13,
2012 Omni CRA (Community Redevelopment Agency) meeting. Mr. Director, I'm going to let
you go directly into it, if you wouldn't mind starting.
Pieter Bockweg (Executive Director, Community Redevelopment Agency): No. Thank you, Mr.
Chair. Bert, if you could take item number 1.
H Bert Gonzalez: Good afternoon, Commissioners. Bert Gonzalez, assistant director for Omni
CRA. This first item is our purchasing of commercial general liability and property insurance
for the property located at 1401 North Miami Avenue, also known as fire station number 2,
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which will be our Omni CRA headquarters. It is --
Commissioner Spence -Jones: So moved.
Commissioner Carollo: Second.
Chair Sarnoff All in favor, please say aye."
The Commissioners (Collectively): Aye.
2. CRA RESOLUTION
12-00970
A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI
REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY
AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH DOUG BRUCE
AND ASSOCIATES FOR GOVERNMENTAL REPRESENTATION AND
LOBBYING SERVICES IN TALLAHASSEE, FLORIDA, FORA TWO-YEAR
PERIOD, COMMENCING JULY 1, 2012, IN AN ANNUAL AMOUNT NOT TO
EXCEED $28,800 PLUS APPROVED EXPENSES NOT TO EXCEED $2,500,
FOR A TWO-YEAR TOTAL NOT TO EXCEED $62,600; AUTHORIZING THE
EXECUTIVE DIRECTOR TO EXECUTE ALL DOCUMENTS NECESSARY FOR
SAID PURPOSE, IN A FORM ACCEPTABLE TO GENERAL COUNSEL;
ALLOCATING FUNDING FROM OMNI TAX INCREMENT FUND,
"PROFESSIONAL SERVICES," ACCOUNT CODE NO.
10040.920101.531000.0000.00000.
Motion by Board Member Spence -Jones, seconded by Board Member Gort, that this matter
be ADOPTED PASSED by the following vote.
Votes: Ayes: Commissioner Spence -Jones, Commissioner Gort and Chair Sarnoff
Noes: Commissioner Carollo
Absent: Vice Chair Suarez
CRA-R-12-0058
Chair Sarnoff Item number 2.
Pieter Bockweg (Executive Director, Community Redevelopment Agency): Item number 2, Mr.
Chair, is the two-year extension of the Omni CRA's (Community Redevelopment Agency's)
lobbyist, Doug Bruce. You will notice that the total amount is 28,800 plus --
Commissioner Spence -Jones: So moved.
Chair Sarnoff We have a motion. Is there a second?
Commissioner Gort: Second.
Chair Sarnoff. Second by Commissioner Gort. Any discussion for the record? Hearing no
discussion, all in favor, please say aye."
Commissioner Spence -Jones: Aye.
Commissioner Gort: Aye.
Commissioner Carollo: No.
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3.
12-00828
Chair Sarnoff Okay, don't like Mr. Bruce. Well put that for the record.
Commissioner Carollo: Actually, I don't know Mr. Bruce. I'm not sure why we're paying so
much money.
Chair Sarnoff I'm just teasing. I'm just teasing.
Commissioner Carollo: But I don't know why we're paying --
Commissioner Spence -Jones: You opened the door.
Commissioner Carollo: -- so much money in lobbyists. I'm trying to move it along, but if you
want discussion, I'll have discussion.
Chair Sarnoff No. I'll keep it straight.
CRA RESOLUTION
A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI
REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENTAGENCY,
WITH ATTACHMENT(S), DE -ALLOCATING $769,799 IN CARRYOVER FUNDS
ASSOCIATED WITH PREVIOUSLY AUTHORIZED PROJECTS, AS MORE
SPECIFICALLY SET FORTH IN ATTACHMENT "A," AND ALLOCATING SAME
TO THE PORT TUNNEL LOAN AND THE MIAMI ENTERTAINMENT
COMPLEX.
File # 12-00828 07-26-2012 Cover Memo.pdf
File # 12-00828 07-26-2012 Legislation with Attachment.pdf
Motion by Board Member Spence -Jones, seconded by Board Member Gort, that this matter
be ADOPTED WITH MODIFICATIONS PASSED by the following vote.
Votes: Ayes: Commissioner Spence -Jones, Commissioner Gort and Chair Sarnoff
Noes: Commissioner Carollo
Absent: Vice Chair Suarez
CRA-R-12-0059
Chair Sarnoff Item number 3.
Commissioner Carollo: Okay.
Pieter Bockweg (Executive Director, Community Redevelopment Agency): Item number 3,
Commissioners, is the de -allocation of projects that are currently finished. I need to make one
correction in the reso. There's a scrivener's error. It says 769, 799. The actual amount is
763, 799. As the reso states, this -- these monies will be divvied up between the port tunnel line
item, which will I -- which I will touch upon when we do our budget, as well as the future home
of the film studios, the MEC (Miami Entertainment Complex).
Chair Sarnoff I'm sorry, future what?
Mr. Bockweg: Home of -- film studios, the MEC.
Commissioner Gort: The MEC.
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Chair Sarnoff All right. Is there a motion on item 3?
Commissioner Spence -Jones: So moved.
Chair Sarnoff We have a motion by --
Commissioner Gort: Second.
Chair Sarnoff. -- Commissioner Spence -Jones. Is there a second?
Commissioner Gort: I second.
Chair Sarnoff. I'm sorry. Commissioner Gort seconds. Any discussion? Hearing no --
Commissioner Carollo: Yeah.
Chair Sarnoff. Go ahead.
Commissioner Carollo: Mr. Chair --
Chair Sarnoff You're recognized.
Commissioner Carollo: -- you have here -- Thank you. -- port tunnel and Miami Entertainment
Complex. Can I have the breakdown of how much is for what?
Mr. Bockweg: Yes. I was going to bring that up in the very next line item, which is the budget.
There is about -- out of the 760, 000, 602,000 from that is going towards the port tunnel line item,
and the remainder is going towards the MEC.
Chair Sarnoff Any further discussion? Hearing no further discussion, then all in favor, please
say aye."
Commissioner Spence -Jones: Aye.
Chair Sarnoff Aye.
Commissioner Gort: Aye.
Commissioner Carollo: No.
Chair Sarnoff. Register one no.
4. CRA RESOLUTION
12-00801
A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI
REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENTAGENCY
("CRA"), WITH ATTACHMENT(S), APPROVING AND ADOPTING THE CRA'S
PROPOSED GENERAL OPERATING BUDGETAND TAX INCREMENT FUND
BUDGET FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2012 AND
ENDING SEPTEMBER 30, 2013; DIRECTING THE EXECUTIVE DIRECTOR
TO TRANSMITA COPY OF EACH BUDGET TO THE CITY OF MIAMI AND
MIAMI-DADE COUNTY.
File # 12-00801 07-26-2012 Cover Memo.pdf
File # 12-00801 Signed Legislation with Attachment.pdf
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Motion by Vice -Chair Suarez, seconded by Board Member Spence -Jones, that this matter
be ADOPTED PASSED by the following vote.
Votes: Ayes: Commissioner Spence -Jones, Commissioner Gort, Vice Chair Suarez and Chair Sarnoff
Noes: Commissioner Carollo
CRA-R-12-0060
Chair Sarnoff. CRA (Community Redevelopment Agency) number 4.
Pieter Bockweg (Executive Director, Community Redevelopment Agency): Number 4,
Commissioner, is the proposed budget that I'm proposing for fiscal year 2012-2013. Before you
is both the operating budget, as well as the special revenue budget. There are a couple of things
that I'd like to point out in the budget that I'm proposing before you in the special revenue side.
And those two -- one specific line item is on page 3, which I handed out to everybody about a
week and a half ago -- and prior to that, as well, in July. On page 3, on line item number three,
you will see a line item of $6 million for the port tunnel. It's important to note -- and just before I
get to that, right above that you'll see an allocation for the future -- for the PAC (Performing Arts
Center) payment of this year, which we are estimated to be 3.3 million thereabouts. It's
important to note that this year's contribution to the CRA fund was about $9.6 million.
Ninety-nine percent of that $9.6 million, I have allocated towards these two line items; 6 million
-- well, 5.3 million into the port tunnel and 3.3 million into the PAC payment. Obviously, the
PAC payment we have to do, so there's no two ways about that. It's 35 percent of the overall TIF
(Tax Increment Fund). The reason why the proposal that I'm putting before you has 5.3 million
allocated for the port tunnel is I want to make sure that the Omni CRA is in a fiscal position from
now and moving forward in the future to be able to pay the debt service of the port tunnel. We
have been very actively negotiating and sitting down with -- in conjunction with the City's
Finance Department and Janice and Steve Petty. We are looking at all options of financing,
whether that be a loan, bank -- bond, bank loan, or even private equity. We had put out an RFP
(Request for Proposals), which we got the results back on Monday, so we have a pretty good idea
of what our annual debt service payments will be. The reason why I say a pretty good idea is
because, obviously, we're not closing today so that might fluctuate, you know, by the time we
close. But I want to make sure that the Omni CRA, who, per the global agreement is paying the
debt service for that port tunnel of -- which is $45 million remaining, is in a position to make
sure that the City is not so-called responsible or on the hook for that debt service payment. So I
thought it was prudent to put a coverage -- to put a cushion of at least three years into a line
item. And every year here forward, I would suggest that we replenish that line item to keep the
number at six million for however unforeseen circumstance that might occur in the future. The
other thing I'd like to point out, if you recall, earlier this year there was an item before you that
the County had mistakenly overcharged us for the PAC payment in 2007-2008, I recall. This
year my overall Omni budget allocation is 610,000. The reason why it is 610,000 is because that
is the amount that we were reimbursed -- or I should say that we were credited by the County in
paying for this year's PAC contribution. So, in essence, we subtracted that from this year's PAC
payment. This year's PAC payment was about $1.9 million. So what we did was instead of
taking the operating budget from the overall contribution this year, we, in essence, just took it
from what we were credited for the overpayment and put that into the operating budget. Of
course, as always, I welcome any questions or any clarifications that you may have.
Chair Sarnoff Madam CFO (Chief FinancialOffcer), would you step up? Commissioner
Spence -Jones will acknowledge, I rarely ever do this. My experience with you is limited. My
interaction with you has not been that much. But the time that I had to work with you with
regard to the tunnel, the tunnel payment, whether we were going to go out to bond, whether we
were going to go to the private equity market or whether we were going to renew the loan, I
thought your behavior and your demeanor and in very, very adverse meetings here in the City
was exemplary. I have never seen a CFO act with such candor, grace, and cunning as I
witnessed with you. And I just want you to know from the time I've spent as an attorney litigating
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many, many accountants and accountings for very large corporations, all the way from Burger
King to Pillsbury, and having deposed quite a few CFOs in my time, I thought your job --
on-the-job training and on-the-job experience was exemplary. And I just want to say that the
time that I've been here and the times that I've met with you, I think everybody should know just
how capable and good you are and how tough you can be.
Commissioner Spence -Jones: And I just want to know --
Janice Larned (Chief Financial Officer): Thank you, sir.
Commissioner Spence -Jones: -- why you felt that Commissioner Spence -Jones would -- doesn't
see that side.
Chair Sarnoff 'Cause you know I don't commend that many people.
Commissioner Spence -Jones: I know you got a soft side to you.
Commissioner Gort: Yes, he does.
Chair Sarnoff It was shown today. But I just --
Vice Chair Suarez: I think you have a soft side.
Commissioner Gort: He knows how to hide it well.
Commissioner Spence -Jones: You know how to be sweet when it's necessary.
Chair Sarnoff. Well --
Ms. Larned: Professional.
Chair Sarnoff -- I just want -- I want you guys to know that our CFO stood up for the City
because the City is the one that's going to -- is the one that's the obligor; stood up for the Omni,
which is the guarantor of that obligation on what I will say to you will be the greatest public
works project in the history of the City of Miami -- only history will decide whether that's true or
untrue -- that will mend the fences, Commissioner Spence -Jones, between your neighborhoods
and my neighborhoods so there's no longer a scar up and down in between them, and the
downtown will grow as it should grow together. And that's how much I believe in the port tunnel
project. And I can give you numbers and facts and, you know, 170, 000 jobs and -- and I love the
770. Seventy percent of every African American that makes $70, 000 a year does it at the port.
That's -- I love that 770 argument. I don't know if it's true today; it was true three years ago.
Commissioner Spence -Jones: Okay.
Chair Sarnoff So port tunnel was always important to me. Madam CFO protected the City with
regard to the port tunnel payment. Pieter Bockweg is the director, was there 18 months ago
making sure that we lived up to the guarantee obligation that the Omni made before any of you
got here to make sure that the payment for the tunnel would happen. And I got to tell you, this is
probably the most conservative budget you can think of because this budget could withstand a
number of economic casualties and still make the payment. And I think that's the way we should
do it. I think it's the way we did do it. I just want to thank you, Pieter, and Bert, for working
with the CFO because you guys went through some meetings with some people that were pretty --
was going to use the word Ptell-bent"-- and I'll probably have to put a buck in my jar in my office
'cause we have the bad words things -- but were pretty hell-bent, I think, in the city on not seeing
that this bond take place. And I think the CFO worked her way through it. And if I'm using the
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word bond incorrectly, I mean, the payment occur. So thank you, Madam CFO.
Ms. Larned: May I respond --
Chair Sarnoff Please.
Ms. Larned: -- Mr. Chair? This was a team effort. I appreciate the complimentary words, but
Pieter Bockweg stepped to the line with me, and there have been some considerable questions,
tough questions, and he's been lockstep with me the whole way. Bert Gonzalez, you couldn't ask
for better support. So it really has been a team effort and I think that they -- your recognition of
that is critical. I think it's appropriate for the other board members to know. And I'm hopeful
that we'll be as successful in that partnership in bringing this puppy home, if you will. Thank
you.
Vice Chair Suarez: Mr. Chair.
Chair Sarnoff Thank you. Yes, sir.
Vice Chair Suarez: Thank you. I couldn't agree with you more. I had several interactions with
Pieter and with Janice on this issue, and I found them, on this particular issue in particular, to
be very open-minded, to also be able to differentiate and discuss a variety of different options.
And I'm very hopeful that everything will be done timely so that we can meet that obligation,
which is, you know, something that's very important to the viability of our city. So I agree with
you and I concur with your assessment of not only Janice's handling of it, but also Pieter's as
well.
Chair Sarnoff And we've been at this for 18 months.
Vice Chair Suarez: Right.
Chair Sarnoff And just so you know, Commissioner Spence -Jones, I sort of have experienced
what you had said before, which is obstacles in the City. And I think -- I hope we've overcome
all those obstacles. I know we have in one respect. And you know, I read in the paper some
comments that this is a problem. It's only a problem if we allow it to become a problem 'cause
we are prepared and we are ready. And Pieter, you did exactly what I asked you to do. You
started this 18 months ago. You stepped it up in January. You got us to where we needed to be,
and I think you did a great job. And Bert, I know you were there every step of the way and you
took all my phone calls and you took quite a few irate phone calls from me. And Madam CFO, I
probably need to apologize to you for two phone calls. And I think we got -- I think the ball's on
the 1-yard line. It's now up to this board and maybe the Commission just to kick it over. So with
that said --
Commissioner Spence -Jones: Mr. Chairman, I just want to be clear on -- Was there an issue?
Chair Sarnoff There was.
Commissioner Spence -Jones: Okay, 'cause -- so --
Chair Sarnoff It's probably best left unsaid.
Commissioner Spence -Jones: Oh, okay. All right, because at this point, I --
Mr. Bockweg: I can tell you where we are today to give you all an update where we are. Like I
said, we have received the RFP responses. We are in the midst of evaluating that right now and
comparing all options. And we will be coming before you all to give you briefings, most likely
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next week, and we are shooting to bring this -- or we're aiming to have this in front of the City
Commission on October 11, along with the financing structure, which Janice will be putting
before you on October 11. I'll be bringing an item before you in the Omni CRA meeting of an
interlocal agreement --
Commissioner Spence -Jones: Okay. I just want --
Mr. Bockweg: -- between the City and the CRA.
Commissioner Spence -Jones: -- I think that maybe -- now it's kind of jogging my memory just a
little bit. I just wanted -- Janice, if you can come back. I think -- I don't know if the Chairman
was necessarily talking about, you know, all the various discussions, but I know that one of the
concerns we had from the Overtown CRA, which you basically said there was not going to be an
issue with the issuance of the bonds on this -- for the Omni CRA part of it because it's two
separate entities anyway, correct?
Ms. Lamed: Correct.
Commissioner Spence -Jones: So that was one of the -- Pieter, that was one of the issues or
concerns?
Mr. Bockweg: No, no. Our concerns -- the hurdles that we had were completely separate and
above from the Overtown CRA process of going to the bond.
Commissioner Spence -Jones: 'Cause they're two separate things.
Mr. Bockweg: It's completely --
Commissioner Gort: Yeah.
Commissioner Spence -Jones: So they're not going to affect each other one way or the other.
Commissioner Gort: No.
Mr. Bockweg: Zero. That's right.
Commissioner Spence -Jones: Right, so --
Mr. Bockweg: An RFA (Registered Financial Advisor) has advised us and he did that one day
where we were here when your item was heard, Commissioner, that they're completely separate
entities --
Commissioner Spence -Jones: Separate things.
Mr. Bockweg: -- and they will be looked at as completely separate entities. The hurdles that
we're referring to were more from an internal side and making sure that we put ourselves in a
position to get to the goal line and make sure that we're in a position to meet the $45 million
deadline.
Commissioner Spence -Jones: Oh, okay.
Mr. Bockweg: That --
Commissioner Spence -Jones: And that is the January timeframe that Janice has been -- I'm not
going to use the word harping on, but making sure we don't miss it.
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Ms. Larned: I'll take that as a compliment --
Commissioner Spence -Jones: Okay.
Ms. Larned: -- because in all honesty -- and what needs to be kept focused --
Commissioner Spence -Jones: Yeah.
Ms. Larned: -- is that our payment in full for $45 million is due to Wells Fargo January 3.
Commissioner Spence -Jones: Okay, so now I'm getting it, okay. I just -- maybe I'm the only one.
Vice Chair Suarez: No, no.
Commissioner Spence -Jones: Okay.
Commissioner Gort: Both entities can provide the debt service.
Commissioner Spence -Jones: Okay.
Commissioner Gort: It's no problem. They're separate.
Vice Chair Suarez: We're on schedule.
Commissioner Spence -Jones: So --
Vice Chair Suarez: We're on schedule, correct?
Commissioner Spence -Jones: Okay.
Mr. Bockweg: Yes, we are.
Vice Chair Suarez: Okay. That's it.
Chair Sarnoff. All right, so is there any questions on RE (Resolution) -- was it RE.4?
Commissioner Spence -Jones: Yeah. This is the general budget, though, right?
Chair Sarnoff It is.
Commissioner Spence -Jones: So I do -- I didn't have any issues about the --
Mr. Bockweg: I'd like to make one comment, and I'd like to just to remind the board, remember,
you're going to have two gos at this. This budget that's before you is more of a draft until we get
the actuals from the County in November, and we will be bringing the final budget before you in
February. So any concerns or changes that you want to make can be done at that time and from
now until that time.
Commissioner Carollo: Mr. Chairman.
Chair Sarnoff You're recognized for the record, Commissioner Carollo.
Commissioner Carollo: However, those changes is really the revenue side. The expenses, you
foresee them staying the same. And in the meantime, you could be spending from this budget
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that we approved, correct?
Mr. Bockweg: That is correct. But Commissioner, those line items can change at any time at the
will of the board for de -allocation or allocation for new projects.
Commissioner Spence -Jones: Right. We have monthly CRA meetings anyway. So the next
month, if there's an issue or concern, we can --
Mr. Bockweg: Absolutely.
Commissioner Spence -Jones: -- address it then. I just have a couple of questions on some of the
items. I don't want to cut you off. Carollo, you got -- you finished?
Commissioner Carollo: No. I mean, I have issues, but I'll yield to you.
Commissioner Spence -Jones: All right. Well, my -- I don't have issues. I just have things that
I'd like to have added. I don't want to use the word issues. Just really quickly on -- and this is
just making sure we make note. I do want to see both CRAs work a little hand in hand on some
of the items. As Commissioner Carollo mentioned earlier about Doug Bruce, we didn't talk
about Akerman Senterfitt, but I would like for us to work hand in hand -- and I think I talked to
you about this, Pieter, as well -- putting together a very strong legislative agenda on the state
side and the federal side for both CRAs. So I'm hoping that we can -- I mean, 'cause at this point
we are paying them.
Mr. Bockweg: That's right.
Commissioner Spence -Jones: So at the end of the year, we really want to be able to say
something came out of it, so I just want to make sure that I put that on the record, that we do put
together a very strong legislative plan on the state and the federal side of it so they'll know what
we want to see happen and we should be doing it together.
Mr. Bockweg: I will sit down with Clarence and brief both chairs and the other board members
to make sure that it's all one cohesive action plan.
Commissioner Spence -Jones: Okay. So that was on the legislative stuff. The other thing that I
just wanted to make sure -- we talked about this and we've been talking about this for a few
weeks. As you know, part of the Omni's expansion included a certain portion of Overtown and a
certain portion of Wynwood, actually.
Mr. Bockweg: That's correct.
Commissioner Spence -Jones: And we always wanted -- the reason why we did that is because
we realized back then when we made the expansion was that we needed to pick up the slum and
blighted areas. The budget itself does not really reflect a lot of Overtown, but I just wanted the
overall board to know that we have sat down, you and I, and my chief of staff, and I feel pretty
confident that we are able to work on some key projects for the Over -- for that portion of
Overtown and that portion of Wynwood that would include demo, rehab, and beatification. I'm
not asking for a number today, Pieter, but I do want to make sure it's duly noted that we identify
some resources out of this budget because I know that you did mention that there are some items
that you just -- you know, you were, you know, cautious about and you added enough, you know,
beef --
Mr. Bockweg: There are some items that are under budget.
Commissioner Spence -Jones: -- to the --
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Mr. Bockweg: There are some --
Commissioner Spence -Jones: -- patty.
Mr. Bockweg: -- projects that are under budget. I mean, that are under budget, so the progress
-- we're being very strict as far as how much money we spend on the projects, so we are under
budget on certain projects, yes.
Commissioner Spence -Jones: Okay. So I would really like to work along with you to make sure
for those areas that are in my portion of the district, that we do look at demo, rehab, and
beautification projects because I think it's important that we do focus on some of the slum and
blighted areas that, quite frankly, that's what the CRA is intended to do.
Mr. Bockweg: I agree with you 100 percent, Commissioner, and you have my commitment to sit
down with you and your staff to see what we can come up with.
Commissioner Spence -Jones: No problem. And last, but not least, I know we have -- in our side,
we have the Overtown police visibility pilot program. On your side, I believe -- on our side, we
have dollars that we -- Are you putting more money into it this year? Yeah.
Commissioner Carollo: Three fifty.
Commissioner Spence -Jones: Yeah. So I know that I've asked Commissioner Carollo -- I'm not
trying to give you more responsibility, but since he's the only man sitting up here that did, at one
time or the other, wear a blue suit --
Commissioner Carollo: Brown.
Commissioner Spence -Jones: -- uniform -- excuse me, brown --
Commissioner Carollo: Brown.
Commissioner Spence -Jones: -- uniform -- I would definitely want to make sure that we work
together on putting together a real visibility plan along with the police department. As you
know, again, you do pick up a certain portion of our district --
Mr. Bockweg: That's right.
Commissioner Spence -Jones: -- and in the Wynwood area. And I would just like to make sure
that we're covering enough areas through this particular grant. So working along with
Commissioner Carollo, he's going to make himself fully available for you.
Mr. Bockweg: I can assure you, Commissioner, that with the police visibility grant, all areas of
the Omni CRA, including the Wynwood area, is taken in consideration and make sure that that
money goes to good use.
Commissioner Spence -Jones: Okay.
Mr. Bockweg: So I can assure you that it's not left behind.
Commissioner Spence -Jones: Okay. And that -- with that being said, well done on the budget. I
have no other issues. And thank you so much for working along --
Vice Chair Suarez: Has there been a motion on this?
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Commissioner Spence -Jones: -- with my office to get it done.
Mr. Bockweg: Yes, ma'am.
Vice Chair Suarez: I move it.
Commissioner Spence -Jones: Second.
Chair Sarnoff We have a motion by --
Commissioner Spence -Jones: Oh, I'm sorry. Ooh, I'm sorry.
Chair Sarnoff -- the Chairman, second by Commissioner Spence -Jones.
Vice Chair Suarez: Go ahead, Commissioner.
Commissioner Spence -Jones: Yeah, but I think he had --
Chair Sarnoff And I -- I'm not --
Commissioner Spence -Jones: Okay.
Chair Sarnoff I'm just getting the motion on the record.
Commissioner Gort: Yeah.
Chair Sarnoff I realize that --
Commissioner Gort: Discussion's coming up.
Chair Sarnoff -- Carollo's not done. He's just starting. Commissioner Carollo is recognized for
the record.
Vice Chair Suarez: Well, thankfully, we have Commissioner Spence -Jones that has a timeline on
the whole thing tonight, right?
Chair Sarnoff And I do look for Commissioner Spence -Jones's support to move him along.
Commissioner Carollo: I --
Commissioner Spence -Jones: Do you need some more water?
Commissioner Carollo: -- will go quickly, and just for the record, issue with this budget.
Anyways -- and like I said, I'll go quickly. Legal, once again, we have three attorneys. I don't
think we need all those attorneys. Professional services: Out of the 140, 000, 100 is for lobbyists.
And there's nothing against Doug Bruce. I don't even know the person. It's just I don't have any
plans or why we're spending so much on lobbyists. It's way more than the City of Miami
spending. And if you tie this to the other CRAs, I mean, in all fairness, we're spending a lot of
money in lobbyists. Moving on to the Administration, over $30, 000 for health coverage for two
people I think is way too rich.
Commissioner Spence -Jones: What did you say now?
Commissioner Carollo: Over $30, 000 for health coverage for two people --
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Commissioner Spence -Jones: Oh.
Commissioner Carollo: -- is way too rich. I think $30, 000 for travel and per diem is way too
much; $30, 000 for promotional marketing material, way too much. And again, I'm just touching
on some of the items. On page 4, this is something different that I just want to get some clarity,
Mr. Bockweg.
Mr. Bockweg: Page 4 of the operating or special revenue, sir?
Commissioner Carollo: Construction in progress.
Mr. Bockweg: Okay.
Commissioner Spence -Jones: Which page of which now? Special revenue?
Mr. Bockweg: Yeah, special revenue, page 4, construction in progress. Yes, sir.
Commissioner Carollo: With Museum Park, I see you have here $5 million. I think originally it
was a lot more or it was required for us to spend closer to 50 million. And I don't know
contractually how much of that, you know, it's clear or not. So I want to verify, you know, the $5
million, that it's enough to do what, I guess, we have to do by the whole contract. What's it
called, the --?
Mr. Bockweg: The global agreement.
Commissioner Carollo: The global agreement.
Mr. Bockweg: And I'll have Veronica address the contract side and the legal side. I just want to
make sure that we -- that I put the correct number on the record. The CRA to date has spent
$12.6 million on the Museum Park. Now, I can break that down for you, but just to give you an
idea of what that money is, it's $2 million for the remediation, which the CRA is responsible.
Commissioner Carollo: However, it was only $1 million because the amount was only $1 million
and the rest was, I think, returned to the CRA.
Mr. Bockweg: It's -- Well, you --
Commissioner Carollo: No?
Mr. Bockweg: -- are correct in some way, Commissioner, because our projection was that we
were going to be a million dollars under budget. However, circumstances have changed. The
art museum did use a million dollars out of that two million dollars, and we are anticipating for
the science museum to be using the other million dollars. And the reason why I say the -- that
circumstances have changed, I know that while the science museum has been digging, they have
found dirty soil and they have found oil and whatnot contaminants in the ground. So as far as
the budget is concerned, that line item still remains the same. It has not been de -allocated or
returned to the --
Commissioner Carollo: Gotcha.
Mr. Bockweg: -- board. Five million dollars has been allocated for future construction of the
park.
Commissioner Carollo: Right.
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Mr. Bockweg: We have allocated $1.1 million from the CRA budget for the bay walk. That
includes a matching grant of $1.1 million from FIND (Florida Inland Navigation District).
Commissioner Carollo: FIND.
Mr. Bockweg: I do not include that $1.1 million in my overall $12.6 million number. And if you
recall about two years ago, the Omni CRA did reimburse the City $4.3 million for that overall
project. And of course, it includes some small items, which is the demolition and also the Cirque
du Soleil item. But overall, we have spent 12.6. The contractual side, I'll let Veronica from the
Law Department answer that, Commissioner.
VeronicaXiques (Assistant City Attorney): Commissioners, good afternoon. VeronicaXiques,
City Attorney's office. Contractually, the CRA has met all of their requirements. Their -- the big
requirement would have been $68 million, and that was contained in the global. It would have
been. The reason it would have been is because the global was an expression of the parties'
intent, and the global had two specific dates by which the City had to complete what was called
the park component and the entire project. And because those dates came and went, the
condition that the City fulfill its obligations were not completed and so the CRA doesn't have any
continuing obligations. That's on the global side. On the development agreement side, the
development agreement was an agreement between the City and the two museums. It did not
involve the CRA. The only intention in that document was if the boundaries are expanded --
which we all know they were -- then the CRA board will have the option to consider using TIF
revenues for further improvements. But that is all the contractual obligations. This board, as the
CRA board, has not acted to make any further pledges of the TIF revenues. So at this time, the
CRA is finished with its contractual obligations.
Commissioner Carollo: What about maintenance?
Ms. Xiques: Well, the $2 million maintenance is subject to the City's termination of the park
component, not the minimum park component as required, but the park component as described
in the Museum Park master plan. That has not been done. That is not in the projected near
future to be done, so until that is finished, there is no -- the CRA's obligation to kick in the $2
million doesn't come in.
Commissioner Carollo: Okay. I'm okay with your answer for right now, you know. Just in the
near future, I think I want to revisit this. So I just want to make sure that right now the 5,000 --
I'm sorry, the $5 million that you have is sufcient.
Mr. Bockweg: The -- I have Albert Sosa here from the CIP (Capital Improvements Program)
Department. If you include the $5 million and the 2.2 million for the bay walk CRA portion and
the FIND grant, we are well on the way in meeting that obligation and making sure that the
project gets completed. Now understand, it has been somewhat value engineer due to the
economic circumstances that we're all facing, so -- but from my understanding, that will be
sufficient for phase one.
Commissioner Carollo: Okay. And the last thing I just want to point out is your budget reserve.
Why do you have so much in budget reserve?
Mr. Bockweg: Again, is that special revenue or operating?
Commissioner Carollo: This is in total revenues. You have a budget reserve of a hundred
thousand.
Mr. Bockweg: Commissioner, I would -- I always like having it in there. Again, I cannot touch
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any budget reserve without the board approval. I just want to be in a position that any
unforeseen circumstances come up, that I'm in a position that we have a cushion to follow
through with that, per the board's will, of course.
Commissioner Carollo: Listen, Mr. Bockweg, I usually am not one that has a problem with
having reserves. I think it's actually quite healthy, and government should actually start taking
actions to obtain more and more reserves because in a rainy day or something may happen, then
they could tap into those funding. Actually, sort of what happened to the City, except we didn't
have enough reserves. So I'm not against having reserves. I just want to make sure that we're
prudent about how we use them. And at the same time, I'm seeing that in so many other, you
know, categories, you have reserves, you have reserves in professional services - other. You have
reserves in other contractual services. You have reserves in, you know, interfund transfers; the
administration part, you have another 132, 000. So there's reserves all over the place.
Mr. Bockweg: Commissioner, if it's the will of the board to reduce those reserves, I don't have
an issue with that. All I'm -- I cannot -- we cannot touch upon those reserves without the
approval of the board. And I -- and if you recall, about a year and a half ago to eighteen
months, you had all passed a resolution that even if it's within the $4,500, which is my limit that I
have -- that it allows, if the money is in the reserves, I cannot do it even within that limit so.
Chair Sarnoff Commissioner, let me just say this about reserves. I asked that reserves be
placed in here. If you know much about the Omni TIF generation, it has experienced wide
fluctuations. That's why I asked that we have a sufficient amount of money to withstand one or
two wide fluctuations. I asked him to put the same thought process with regard to what I
anticipate the tunnel payment could be, and I also anticipated -- you know, we had three
embassies have been attacked. So far, the financial markets are not doing anything about it, and
apparently, withstanding it great. But you know, as well as I know, the economy and valuations
on real estate have been unpredictable at best since 2008. And I just want to be able to
withstand a fluctuation so that a decision you didn't make or one you're going to live through,
which is the tunnel payment, is not borne by the City of Miami, but is borne exclusively and
solely by the Omni CRA. With regard to the -- I just asked them to put the same thought process
with regard to his operating budget, knowing fully well that that money can be swept, if you will,
at any time you decide. It can be put to another use, but at least it's there. And if something
unforeseen comes up, you go, Mr. Bockweg, I sat here with you during the budget. I know you
have adequate reserves to withstand that issue.
Commissioner Carollo: And Mr. Chairman.
Chair Sarnoff Yes, sir.
Commissioner Carollo: And again, like I said, I'm not against having reserves. I just want to
make sure that, you know, it is used for emergency and in a prudent manner. Unfortunately,
governments usually, when they have reserves, everybody's looking at it and saying, Hey, we can
raid this at any time and we could use this money for this and that, so I'm just being cautious
about it so --
Chair Sarnoff And I'm -- and I agree with that statement, by the way.
Commissioner Carollo: You know, so that's why I just mentioned it and I'm doing it for the
record so, you know, you're aware that I am looking at this. And you know what, I may agree
with some of these reserves. I just want to make sure that, you know, they're put to good use.
And with that, I am done.
Commissioner Gort: May I ask a question?
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Commissioner Carollo: Told you it'd be quick.
Chair Sarnoff Commissioner Gort's recognized for the record.
Commissioner Gort: My understanding is reserve cannot be touch without the approval of the
board. Am I correct?
Mr. Bockweg: I cannot touch the reserve at all --
Commissioner Gort: Okay.
Mr. Bockweg: -- even within my $4,500 limit without the --
Commissioner Gort: Thank you.
Mr. Bockweg: -- board's approval.
Commissioner Gort: Also, my understanding, a question about the lobbyist. My understanding,
there was a lot of work that had to be done in Tallahassee in order to keep the CRA. At the same
time, my understanding, we're working very closely with your lobbyist and the City lobbyist for a
new program that might bring additional funds to the City of Miami. Am I correct?
Mr. Bockweg: Yes, sir, you are.
Commissioner Gort: Thank you.
Mr. Bockweg: I would like to add something, Mr. Chair, ifI may. One of the things that we are
looking into is a partnership with Miami -Dade School for possibly having to do with the MEC
and training for future film. And I think Robert Townsend is -- I don't have a lot of details to
that, but that is one of the things that we're looking into in conjunction with Commissioner
Spence -Jones oice.
Commissioner Carollo: Mr. Chairman.
Chair Sarnoff You're recognized.
Commissioner Carollo: I'm still not solely convinced on the MEC. I did that leap of faith --
Chair Sarnoff. Why?
Commissioner Carollo: -- originally. And I'll tell you, you know, recently, we heard that Trump
wanted to come here and build a big movie studio down south, and I thought, shoot, if that
happens, where's the MEC -- where does that put the MEC? So I don't know where we are with
that, you know. I'm not following closely with it, but I know it did come up. And again, we're
investing money in this MEC, you know. There are expenses associated with this MEC. So, you
know, I just want you to know that I'm not just trying to vote against something. I'm -- you know,
there's reasoning behind some of the decisions that I make, and I'm trying to go quickly 'cause,
you know, I don't want to take up too much time, but I want to make sure that all my colleagues
know that everything I do up here is in good faith. And if you see me voting no, there's reasons
behind it, just some may take a lot more to explain than others. And you know, with regards to
the MEC, you know, that's an issue that, you know, I remember. I don't know if it was a month
and a half, two months ago, you know, when that came up with the whole Trump thing and, you
know, it was in all the papers and all the news. I thought, Well, shoot, what's that going to do to
our MEC and the money we've invested already, you know, including maintenance and liability
insurance and all that stuff
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Chair Sarnoff. I can assure you -- let me take it backwards from what you said. I can assure you
that the MEC will make money simply by what we rented out right now. So, in other words, the
insurance I have to outlay, the cost of air con -- there's no air conditioning, but if we brought air
conditioners -- everything would come out positive simply by the rental rate we could get for it.
With regard to the vision of the MEC, you know, I don't know how many of you followed Donald
Trump, and I don't know how many of you have followed how many times Donald Trump
companies have gone into bankruptcy, but the number's eleven.
Commissioner Gort: Quite a few of them.
Chair Sarnoff Right. And that's because Donald Trump lends his name quite frequently, but
that's about all he lends. You know, and I thought to myself, so they put a movie studio, I don't
know, 44 miles away from Miami and it's a big, big facility. Wouldn't it still be great to have a
movie facility right in downtown Miami to complement that? Or do I really believe that movie
studio will ever get built? You know, I don't know. I know this is not the first time he has
announced a movie studio in another part of the world that never came true. I am not a County
Commissioner, so I have not been briefed as maybe other County Commissioners have. And I
play the scenario game in my head: Well, what if it comes and what if it doesn't come? And I --
you know, I look -- here's what I look for. How can I bring a labor -intense industry into the City
of Miami that pays a fair wage? And anyone's definition of a fair wage is going to be different
'cause there's going to be folks that are going to make a lot of money, and there's going to be
folks that are not going to make quite so much money. But I'm looking for a labor -intense
industry. And as you know, almost everything today as a result of this and as a result of other
things, is less and less labor intense. But moviemaking, sound staging, and all these things
commensurate with entertainment are still labor intensive. And I'm not aware of this and I'm not
aware of this changing a lot of that. And if you add a component to that of possibly a charter
school so we could teach kids how to do that, we may be actually creating something in Miami
that few have thought about. And is it a leap of faith? No two ways about it. Disney was a leap
of faith. Many things that have turned out great are that leap of faith, and many things have
turned out -- and you'd be right -- more often than not don't come to fruition. But this is a
chance to bring an entire industry that we have really never had in Miami to Miami in a place
that it really does belong next to the Performing Arts Center, in a place that we have fixed the
streets, that we still have a great deal of raw land still available across the street from what
would likely be another movie facility, Eugene Rodriguez's building, the Ice Palace, and is it still
--? There's nothing I'm ever going to say to you to convince you that it's not a leap of faith
'cause it would be a leap of faith for everyone here to make that. But sometimes to have a vision
is a leap of faith. And I will tell you this, before a dollar gets spent any further on the MEC --
and I mean the reconfiguration dollars -- I will make sure that everybody has been briefed,
rebriefed, and you could say, You know what, Commissioner, I have a lot of faith in you, but not
enough faith to say it warrants spending 8, $9 million on this. Andl will come to you with a plan
that I think will show you how we'll recapture this money and recoup it. We're not quite there yet.
The lynchpin of everything in this budget, everything depends upon us having an adequate
amount of money to pay the obligation of the City of Miami for the tunnel payment. Andl have
done everything I can do to put a big enough number there, as I think even you would be -- I
hope you're impressed, that we have put a huge reserve together that you could say, You know
what, Commissioner, you could -- you might even be able to stand one more downturn and that
payment is not in peril. And I am extremely fiscally conservative. I think the one thing you've
learned about me, I may be socially pretty liberal, but on a fiscal side, I'm extremely conservative
in my numbers, and I want to have reserves and I want to have adequacy. I don't -- I made the
commitment. I made the vote to vote for the tunnel, knowing full well the City of Miami could
not afford that tunnel payment. The only one that could afford it was the Omni. Commissioner --
I'm sorry, Mr. Chair, you're recognized.
Vice Chair Suarez: Thank you, Mr. Chair. I think the Commissioner's right in his -- the board
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member's right in his characterization of this as a leap of faith. I was very inspired when you
came forth with this idea because -- and I remember thinking to myself you know, this is
something you are leading on this issue and we are following. And I admired the fact that you
were willing to kind of go out there, put yourself out on a limb. I remember a while back you
asked the question, What are the base industries in Miami? And I remember thinking to myself
well, there's a few that aren't base industries that should be, and one of them is the film industry,
and I think the other one is the technology industry. And I think, you know, as I learn more and
more about the film -- and I'm by no means an expert on it, but I've taken some time to learn
more and more about it. And there is no area in the country, other than Los Angeles, where you
can't -- where you can attract filmmaking, even in a place as beautiful as Miami, without some
sort of government subsidy, bottom line. You can -- a movie studio will film in Wisconsin, not
that there's anything against Wisconsin, but a movie studio will literally film in Wisconsin on the
basis of whatever tax credits they get and the cost of production. They'll make it work, you know.
And I think that's why the Florida tax credit program was so important the last couple of years.
But it is sort of what comes first, the chicken or the egg. And I think by doing the MEC, you are
saying, we're going to go first. We're going to take that leap. We're going to take that risk. We're
going to try to implement this vision. And you know, we have -- I think you're right. I think that
was a good purchase, as evidenced by when we sold a part of it to Florida Department of
Transportation for more money than we even bought it for. So I think it was a good real estate
play just on the real estate play. And I think it'll get that more and more valuable simply because
of where it's located. But I think there is an opportunity, and we saw it with discussions of Burn
Notice and an area with the death of Tony Goldman that we're talking about an area that has
experienced a tremendous renaissance. It is a great opportunity for the film industry to come
into that area. And maybe the next Burn Notice -- maybe not Burn Notice. Maybe the next Burn
Notice type show films in Wynwood instead of the Grove, you know. And so there's a variety to
what we are putting together for the film industry, and I think that's what's going to make it
anchor down in Miami and successful, like you said, as a base industry that will hire a
tremendous amount of skilled laborers and jobs that are -- I would characterize them as good
jobs. I mean, they're not low paying jobs. They're good jobs. And I think the CRA also has a
role to play in that as well in training people to fill those jobs. So I'd like to see that be some
future component of where the MEC goes and where the film industry comes to Miami. But in
any event, I'm going to be excited to hopefully see your plan be developed as to how we're going
to get it completed.
Commissioner Spence -Jones: Mr. Chairman.
Chair Sarnoff You're recognized, Commissioner.
Commissioner Spence -Jones: Thanks. I just wanted to just add a couple of you know, things to
the discussion. And you know, in the very beginning, you know, I had some concerns about, you
know, what exactly was going to happen with the MEC and how it was going to actually benefit
the industry and whether or not it was going to actually hurt private industry that had come into
the area and invested their own personal money and basically was struggling to survive their
own existing facilities. But as time has gone on, I see that there is, you know, a synergy that can
happen between all the venues. And I know that between the Omni staff and, I believe, you as
well, Mr. Chairman, you have sat down with various representatives to try to figure out how all
of the facilities can benefit each other. I don't know if the MEC is all the way worked out as of
yet as to what it's truly going to be as of yet. I'm sure it's going to morph into several other
things. But any energy that we can put around this industry, I think, is absolutely necessary.
Commissioner Suarez -- or Chairman Suarez happened to come to a screening we had at the
Adrienne Arsht Center with Robert Townsend a few weeks back. And you know, the whole thing
that we're trying to do in the Overtown area is, you know, all these institutes, whether or not they
be culinary, hospitality, landscape institutes, any institute that we can train people and put them
on the right career path, get young people involved in something that they're already excited
about, where they could have an opportunity to work not only in front of the camera but behind
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the camera that will keep them off the streets and positive I think is necessary. And that was the
reason why I wanted to make sure on your side, Pieter, that we do work together. It doesn't
make sense for me to be doing it in Overtown in partnership with the School Board to create or
expanding their academies in the School Board district without, you know, at least working hand
in hand with you guys that are taking more of -- you're honestly doing a much bigger project
than we are. Ours is strictly just, you know, training kids to -- and young adults in the area of
those fields so they can go to work right now. But once the facility is actually built, this becomes
a real place for them to learn, to get, you know, certified, and you know, really exposed to major
projects. So I support, you know, the MEC moving in that direction and it morphing into
something that can really become beneficial to every facility that's in the area. But I also look
forward to us priming the pump right now. I don't want us to wait three years for the building to
be built and then we haven't cultivated a talent pool that can benefit from what we're building.
So I look forward to working along with you and Mr. Chairman --
Vice Chair Suarez: Yes, ma'am.
Commissioner Spence -Jones: -- on that issue -- Well --
Vice Chair Suarez: Me?
Commissioner Spence -Jones: The other Mr. Chairman.
Vice Chair Suarez: I'm sorry. Sorry.
Commissioner Spence -Jones: You're not -- different meeting.
Vice Chair Suarez: Sorry.
Commissioner Spence -Jones: And Mr. Chairman --
Chair Sarnoff I'm the junior league chairman.
Commissioner Spence -Jones: -- on really trying to make sure that we prime the pump now so
that people are ready to go on the projects. That's it.
Chair Sarnoff. Okay.
Commissioner Spence -Jones: I'm done.
Commissioner Gort: There's a motion and a second (UNINTELLIGIBLE).
Chair Sarnoff. All right. We have a motion. We have a second. Any further discussion? All in
favor, please say Eye."
Commissioner Spence -Jones: Aye.
Vice Chair Suarez: Aye.
Chair Sarnoff Aye.
Commissioner Gort: Aye.
Commissioner Carollo: No.
Chair Sarnoff All right, we --
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Commissioner Carollo: No.
Chair Sarnoff -- register one no. All right, I think we're done with the agenda, right?
Mr. Bockweg: We adjourn the Omni --
Commissioner Spence -Jones: Yes.
Mr. Bockweg: -- and now --
Vice Chair Suarez: Midtown?
Mr. Bockweg: -- Midtown.
Chair Sarnoff. Okay.
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