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HomeMy WebLinkAboutOMNI CRA 2014-12-11 MinutesCity of Miami City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Meeting Minutes Thursday, December 11, 2014 12:00 PM Miami City Hall OMNI Community Redevelopment Agency Marc David Sarnoff, Chair Francis Suarez, Vice Chair Wifredo (Willy) Gort, Commissioner Frank Carollo, Commissioner Keon Hardemon, 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 December 11, 2014 RESOLUTIONS 1. 14-01269 OMNI Community Redevelopment Agency Present: Chair Sarnoff, Vice Chair Suarez and Commissioner Gort Absent: Commissioner Carollo and Commissioner Hardemon On the 11 th day of December 2014, 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 American Drive, Miami, Florida. The meeting was called to order by Chair Sarnoff at 3: 09 p.m., and was adjourned at 3:19 p.m. ALSO PRESENT: Pieter A. Bockweg, Executive Director, CRA Barnaby L. Min, Assistant General Counsel, CRA Todd B. Hannon, Clerk of the Board CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENTAGENCY ("OMNI CRA"), WITH ATTACHMENT(S), AUTHORIZING THE EXECUTIVE DIRECTOR TO ISSUE AN INVITATION TO BID, IN SUBSTANTIALLY THE ATTACHED FORM, SOLICITING PURCHASERS FOR THE OMNI CRA OWNED REAL PROPERTY LOCATED AT 1401 N. MIAMI AVENUE, MIAMI, FLORIDA. 14-01269 Cover Memo.pdf 14-01269 Legislation.pdf 14-01269 Exhibit.pdf Motion by Vice -Chair Suarez, seconded by Board Member Gort, that this matter be ADOPTED WITH MODIFICATIONS PASSED by the following vote. Votes: Ayes: Commissioner Gort, Vice Chair Suarez and Chair Sarnoff Absent: Commissioner Hardemon and Commissioner Carollo CRA-R-14-0066 Chair Sarnoff. I'd like to welcome everybody to the Omni CRA (Community Redevelopment Agency) meeting of September -- December 11, 2012 -- '14. I not only don't get the day right; I probably won't get the year right. But hopefully, I get the rest right. So what I did to the Board here is I thought it would be a good idea not necessarily to sell, but to see if there's interest in selling the historic building, because it will remain historic, for the Firehouse where the Omni is located. Now, bear in mind, we can do a number of different things. We could sell the gross floor area, strip it of that right; we could sell the TDR (Transfer Development Rights), strip it of that right; or we could sell two of the three, hold onto the fee simple absolute or sell the whole thing together. And by the way, if we come back and -- somebody comes back with a very low number, we simply don't sell. I just think in this escalating real estate market, coupled with -- I sort of share, I think -- I don't want to speak for Suarez, but I sort of share your sentiment, which is, "What is government's role; what is its function? And it should be an owner of certain properties." I just think it's worth taking a look in a market that's probably at a zenith, if this is something worth doing, so what I asked the director of the CRA to do was to do a Request for Invitations to Bid on the property site itself so I bring that to bear. Board Member Gort: Well, my understanding in talking to the director, there was two different appraisals. One came out to about two -point -something; the other one came out about $8 million, so there's a discrepancy there. At the same time, when you put anything together, I think City of Miami Page 2 Printed on 2/4/2015 OMNI Community Redevelopment Agency Meeting Minutes December 11, 2014 we should get the most value, and I agree with you. I don't think government should be in the business if we can benefit out of it, great, it's a lot better for the CRA. But at the same time, I believe we have the air rights to sell, also, because of historical site. So there's a lot of value to that property, so I don't have any problem as long as we get the maximum. Vice Chair Suarez: Mr. Chair. Pieter A. Bockweg (Executive Director, Omni Community Redevelopment Agency): Okay. Chair Sarnoff Go ahead. Vice Chair Suarez: Thank you. First, I think there's been some issues or discrepancies related to how much was spent on rehabbing the property, so I think I would want the executive director to actually put on the record how much we've spent on the property. As far as I'm concerned, as you stated, I think that's pretty much my philosophy. As long as we're not bound by whatever action we take to actually sell, to me, I'm a little bit drastic or dramatic when it comes to this issue. I think all our property should be for sale, every single one in the City, pretty much, with the exception of some jewels like the -- Board Member Gort: City Hall. Vice Chair Suarez: What's that? Yeah. City Hall. Board Member Gort: City Hall, Police Station. Vice Chair Suarez: And, of course, Miami Marine Stadium, and other jewels that we -- that are -- you know. But I think, you know, personally, property is very fungible. It can be sold very easily. I would urge you not only to put a Request for Invitation, but also some sort of a listing that is a nonbinding listing, because a lot of realtors, commercial realtors look at the MLS (Multiple Listings Service), so they may not see an Invitation for Bid, which is kind of -- it's very much -- it's very common for government property that's being sold, but it's not very common for private sector property that's being sold. So you may want to put it on -- but you have to be careful, too, that you're not binding yourself. Even if you put some sort of like -- let's say you say that the asking price is 4 million, and it's really worth 10 million. And somebody says, "Well, we're going to give you the asking price," and how do you get out of that? So you have to look at the legalities of that. That's why I'm -- that's the only concern that I have, is terms of binding our self but I don't have a problem getting offers on the property at all. Chair Sarnoff Well, I think what we're going to do is simply get invitations, which means this is going to come back to us. And you may say, "Well, this guy's offering us 5 million, but he's going to do this with the property, and we like that." Somebody's going to offer 7 million, but he's going to -- by the way, it's historic, so it's never going to lose that designation and -- Vice Chair Suarez: Right. Chair Sarnoff -- there's not very much you could do with an historic site, you know, other than uses, but I think anything we do should come back to this Board. The only other thing you should be aware of is that it's got TDRs to sell, which means it's historic property which presently has a 1 multiplier. I believe we're going to bring to this Commission shortly in the MiMo (Miami Modern) District a non-contributing building, so it could be a vacant piece of land. It's a 1.75 multiplier. A contributing building I believe gets a 2.5 multiplier, so it seems justified that we should have at least a 2 multiplier on historic structures anywhere in the City of Miami just to bring it in line with what we have been doing and done in MiMo, so that does bring more value. Vice Chair Suarez: Right. And just for the -- for purposes of clarity, that means -- just -- and not City of Miami Page 3 Printed on 2/4/2015 OMNI Community Redevelopment Agency Meeting Minutes December 11, 2014 that there's anybody necessarily watching this, but it's a transfer of development rights. In other words, because it's a historic property, it really can't be developed. So therefore, you're leaving, quote/unquote, "development on the table," which would be what you could have developed had it not been a historic property. So it's the difference between what you could have developed it and what it has to be -- what it has to stay at. And you're saying that there should be a multiplier of 2 to I for that sort of development right. Chair Sarnoff And I'm saying that I believe that's true -- Vice Chair Suarez: Right. Chair Sarnoff -- everywhere in the City of Miami; that a historic structure that's declared should get a 2 multiplier. Vice Chair Suarez: And the reason there is you want to incentivize people to have historic properties and there is a value lost, in essence, and we've seen that in places -- in cases that have come before us where people have wanted to maintain a property historic, but they think that the economic value of -- the lost value is too great, so we're giving them an incentive to do both. Board Member Gort: What I understand from the both attorneys is what they want to see is something go out nonbinding. Chair Sarnoff Right. Mr. Bockweg: If I may -- Board Member Gort: Is that correct; is that what we're saying? Barnaby Min (Deputy City Attorney): (UNINTELLIGIBLE) Board Member Gort: Okay, thank you. Mr. Bockweg: Ili may, Mr. Chair; just to address Commissioner Suarez' concern -- question -- the total amount the CRA -- the property was deeded over to the Omni CRA by the City of Miami. Vice Chair Suarez: For acquisition, cost zero. Mr. Bockweg: Zero. The total rehab cost for the historic building, which is on the National Historic Registry, so it will not be changed from a usage standpoint, is $2.9 million; $2, 944,102.48 to be exact. Vice Chair Suarez: Good. Mr. Bockweg: The -- so what I'll -- what I'm hearing from the Board is I'll put the Invitation to Bid. Everything -- this is just asking approval to put something out. The bidders will come back and I will have to bring it back before you for final approval. On top of that, one of the deed restrictions is -- when the property was deeded to us -- is that City Commission will also have to approve the final sale. So once the Board approves it, then I will have to bring it back to City Commission before that's approved, and the reason for that is because it's originally a City of Miami building. Chair Sarnoff Is there any sense to putting a minimum, or are we better off just staying away from that? Mr. Bockweg: Well, the appraisals that was discussed by Commissioner Gort, one was done on City of Miami Page 4 Printed on 2/4/2015 OMNI Community Redevelopment Agency Meeting Minutes December 11, 2014 the market value and the other one was done on an investment value, so the calculations were that vastly different between the two. I would look to the Board if you would like an absolute minimum. I have an idea of what we cost -- like I told you -- how much we put into the building. I have an estimate of how much TDRs we have to sell; add a dollar value to that. But it's really up to the Board on what that number should be. The number that's in the packet in front of you is the minimum that we spent on the building, so the $3 million; that does not include the TDRs. Vice Chair Suarez: But let me just say that as a general principle -- and this is an odd case, because we got the land for free, so that's odd right there. Usually, you pay for the land; that's incorporated in the value. And then if you spent 2.9 improving the land, the value should be north of the improvements, certainly; otherwise, you made a bad investment. So, you know, when you're talking about land plus improvements, just alone, excluding the TDRs, you should be at sufficiently over $3 million, exclusive of the TDRs. Now, TDRs is a whole 'nother ball game. Board Member Gort: Let's come out a minimum 4 million. Chair Sarnoff Right, you're very close, at least. Board Member Gort: Minimum 4 million. Let's see what they come up with. Vice Chair Suarez: But that's exclusive of the TDRs, maybe. Chair Sarnoff No, that probably includes the TDR. Vice Chair Suarez: Really? Chair Sarnoff Think about that, because unless we -- once we value up the TDRs, then you're probably at 5 million, but as it sits today, it's probably a minimum 4, but it's probably going to go to a 5. Board Member Gort: Doesn't mean we have to accept that when it comes back. Chair Sarnoff Right. Board Member Gort: That's why it's -- got to make sure it's nonbinding. Chair Sarnoff Why don't -- Mr. Bockweg: It's -- I'm sorry. Chair Sarnoff -- we give you the opportunity to spend about three months. Nobody's in a rush, but, certainly, you're going to get the zenith of the market and see what comes back. Mr. Bockweg: Okay, I'll make sure that I come back -- I'll put it out for an "X" amount of time. I'll put it out in the beginning of the year or mid -January, about there for about 30 or 60 days; come back before the Board once I'm within -- I'll put a minimum of $4 million. That is not binding. Chair Sarnoff Okay. Mr. Bockweg: So you have the right to reject any and all bids. Chair Sarnoff I'm going to take that as a motion by Commissioner Suarez, and I'm going to take it as a second by Commissioner Gort. City of Miami Page 5 Printed on 2/4/2015 OMNI Community Redevelopment Agency Meeting Minutes December 11, 2014 ADJOURNMENT Board Member Gort: Yes. Vice Chair Suarez: Right. Chair Sarnoff All right. All in favor, then please say "aye." The Board (Collectively): Aye. Chair Sarnoff All right. Thank you. The meeting is now closed. Mr. Bockweg: Thank you. Board Member Gort: Thank you. Can we get the Attorneys Office to announce the next meeting? Todd B. Hannon (City Clerk): Chair, Chair. Board Member Gort: Yes. Mr. Hannon: I just need two minutes to flip the tape. Board Member Gort: Okay. The meeting adjourned at 3:19 p.m. City of Miami Page 6 Printed on 2/4/2015