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HomeMy WebLinkAboutSEOPW CRA 2011-03-10 MinutesCity of Miami City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Di • IN O9▪ IEP 19 1i? Meeting Minutes Thursday, March 10, 2011 2:00 PM or thereafter SPECIAL MEETING Miami City Hall 3500 Pan American Drive Miami, Florida SEOPW Community Redevelopment Agency Richard P. Dunn II, Chairman Francis Suarez, Vice -Chairman Marc David Sarnoff, Commissioner Wifredo (Willy) Gort, Commissioner Frank Carollo, Commissioner CRA OFFICE ADDRESS: 49 NW 5th ST, SUITE 100, Miami, FL 33128 Phone: (305) 679-6800, Fax: (305) 679-6835 SEOPW Community Redevelopment Agency Meeting Minutes March 10, 2011 RESOLUTIONS 1. 11-00170a Present: Chair Dunn II, Commissioner Sarnoff, Vice Chair Suarez, Commissioner Carollo and Commissioner Gort On the 10th day of March 2011, the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency of the City of Miami met in special session at Historic Miami City Hall, 3500 Pan American Drive, Miami, Florida. The meeting was called to order by Chair Dunn at 5: 04 p.m. and was adjourned at 5:37 p.m. ALSO PRESENT: Pieter Bockweg, Executive Director, CRA Veronica Xiques, Assistant General Counsel, CRA William R. Bloom, Special Counsel, CRA Priscilla A. Thompson, Clerk of the Board CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("CRA"), WITH ATTACHMENT(S), AUTHORIZING THE EXECUTION OF AN AMENDMENT ("FIRST AMENDMENT"), IN SUBSTANTIALLY THE ATTACHED FORM, TO THAT CERTAIN GRANT AGREEMENT DATED MAY 13, 2010 BETWEEN THE CRAAND CAMILLUS HOUSE, INC. File 11-00170a 03-10-2011 Cover Memo.pdf File 11-00170a 03-10-2011 Legislation.pdf File 11-00170a 03-10-2011 Legislation (Attachment).pdf File 11-00170a 03-10-2011 Legislation (Signed).pdf Motion by Board Member Sarnoff, seconded by Board Member Suarez, that this matter be ADOPTED WITH MODIFICATIONS PASSED by the following vote. Votes: Ayes: Commissioner Gort, Commissioner Carollo, Chair Dunn II, Commissioner Sarnoff and Vice Chair Suarez CRA-R-11-0014 Chair Dunn: Want to call the portion of the Southeast Overtown/Park West CRA (Community Redevelopment Agency) meeting to order. We're going to address the agenda item 2 -- or agenda item 1. It's only one item. Mr. Executive Director. Pieter Bockweg (Executive Director, Community Redevelopment Agency): Thank you, Mr. Chair. Commissioners, before you is an amendment to a grant agreement that was approved by the CRA Board on May 13 of last year. This amendment to the funding -- to the actual grant for Camillus House is to make sure that Camillus House will be able to complete its project and be able to obtain a funding gap loan from the bank to complete phase one of the project. Before you, the amendment will allow the initial $2 million to go towards hard costs of construction that's already been taking place. It will also -- the rest of the $4 million will be conditioned to certain conditions, which I will explain to you a little bit further before I -- after I finish explaining the item to you. It will also give Camillus House an additional year to complete the relocation, and it will allow us an additional year to exercise the option to purchase the old Camillus House site on North Miami Avenue. Now if you give me a moment, Mr. Chair, I'd like to go through the executive summary, which I have provided the Commissioners to kind of run you through exactly what was in the agreement and what is in the agreement now. As I said, City of Miami Page 2 Printed on 9/8,2011 SEOPW Community Redevelopment Agency Meeting Minutes March 10, 2011 Camillus House requested this amendment as a result of having problems obtaining -- attaining a financing for the gap loan to complete the project. And I'm looking at the executive summary that I provided with you, so if you'd like to follow along, by all means. Initially, the $2 million was provided to Camillus House would go to an escrow and would be provided to them provided that all the conditions are met. Now in this amendment, the initial $2 million will be going towards hard costs which have already been completed in the construction of Building B -- I'm sorry, D and F, which is -- F is the garage; D is a housing, and B will ultimately be the kitchen. Camillus House is also obligated -- which is -- we have entered into the agreement now before you -- is obligated to repay the $2 million if the CRA -- if the initial funding conditions are not satisfied by 2012 February 28. This is a new provision in the agreement that was not there prior to make sure that we are assured that the building will be completed and these monies will go to the completion of phase one. Item number 2, the agreement initially said that the $2 million would only fund $2 million prior to completion of a new facility. That now has changed. The CRA is now agreeing to fund an additional $4 million prior to completion, but the only condition that we -- I had on there is to make sure that the funding agreement is in place that they have with the bank. Again, if the funding agreement is not in place and they do not complete the project, there is a provision now in the agreement that they will have to reimburse the CRA for the total amount. It says Camillus House is also given an additional one year to complete the new facility. We are, like I said, have an additional year to purchase the last -- the old facility on North Miami Avenue. Now, the purpose, like I said, for this entire amendment is to make sure that Camillus House is able to get its grant loan -- I'm sorry, the gap loan to complete phase one. Phase one of the project is Building D, as in David, F, as in Frank, and B, as in boy. F is the garage, which is currently topped off. Building D is almost topped off, and Building B, as in boy, has not been constructed yet. But as you will see in the amendment, that the bank is underwriting Building B, which is why we are in this amendment before you. The main reason why we wanted to make sure these amendments were in place in the grant agreement was to make sure that people continue to work, do not lose their job, and the total completion of Camillus House will be realized. And the total completion as defined in the agreement is the building of Building B, D and F, plus the demolition of the current site on North Miami Avenue. That is before you, and I know that Camillus House is here if you have any questions on what is before you. Thank you. Chair Dunn: Is there a motion? Commissioner Sarnoff So move. Vice Chair Suarez: Second. Chair Dunn: Any discussion? Commissioner Carollo: Yes, Mr. Chairman. Chair Dunn: Commissioner Carollo. Commissioner Carollo: Thank you. First of all, I'd like to say that obviously I would like to see the construction of the new buildings, and we've already committed for the $10 million. Now it's just how that money is allocated or how do we actually give that money over to Camillus House. I see that it's obvious that the terms have changed, and I would like to briefly go over them. With regards to the first $2 million -- I'm going to be going off the executive summary -- and it stipulates Camillus House is obligated to pay the $2 million to the CRA if the initial funding conditions are not satisfied by February 28, 2012. So I went back to see the initial funding conditions in the original agreement, grant agreement, which is number 14. There towards the end, in the event of the foregoing initial conditions precedent [sic] to the grant have not been satisfied or waived by February 28. That's -- that whole paragraph, it's part of the first amendment, correct? Okay. City of Miami Page 3 Printed on 9/8/2011 SEOPW Community Redevelopment Agency Meeting Minutes March 10, 2011 Mr. Bockweg: Yes, sir. Commissioner Carollo: And reading into -- and my intent here is that if the initial funding conditions are not met, we can actually, the CRA, obtain those $2 million back. So I want to read to you and I'll see -- and I'll tell you the part that I have a little difficulty with and I think a friendly amendment will satisfy that. It's the part that says in the event any of the foregoing initial conditions precedent [sic] to the grant have not been satisfied or waived by February 28, 2012, then in such event the CRA shall have the option of, number one -- and there's actually three -- waiving the applicable conditions and proceeding in accordance with this agreement. Two, extending the time period for complying with the initial conditions precedent [sic] from February 28, 2012 until August 30, 2012. Or number three, which is what I'd like to incorporate as a friendly amendment, it says terminating this agreement, but I want it to read terminating this agreement whereupon all payments, advances, or other compensation paid by the CRA to the grantee shall be immediately returned to the CRA. William R. Bloom (Special Counsel, Community Redevelopment Agency): Commissioner, the paragraph that you're talking about is dealt with in Section 1(a), where Camillus House has agreed to repay the $2 million, which is secured by a mortgage on the facility. What you're asking for is consistent with what is already in the agreement. It's belts and suspenders. So Camillus House does not object to that change consistent with what it already says. Commissioner Carollo: Okay, so there's no issue with that amendment -- that friendly amendment? Mr. Bockweg: I personally don't have a problem with it, Commissioner, and I don't think Camillus House would because, like Bill said, it goes with the overall idea of why the amendment was put in place. Commissioner Sarnoff.- Where is that in the agreement, Bill? Could you just give me the page number? Mr. Bloom: If you look on page 2 -- Mr. Bockweg: Page 2, Commissioner. Mr. Bloom: -- 1(a), about the middle of that paragraph. Grantee and Charity Unlimited and Good Shepherd shall guarantee the repayment of the $2 million in the event the initial funding conditions have not been satisfied or waived by February 28, 2012, and Charity Unlimited and Good Shepherd shall grant a mortgage to the CRA securing the guaranty, which mortgage shall encumber Parcel 1 and the 99-year lease with respect to Parcel 2 which mortgage shall be junior to an existing first mortgage having outstanding principal balance of approximately $1 million. So the intent in the document has always been if those conditions have not been met, that the $2 million which is advanced now would be repaid at that time. Vice Chair Suarez: May I just interject here real quick, Mr. Chairman? I think what you're also saying is that it's also secured. Mr. Bloom: It's secured -- Commissioner Carollo: Second. Mr. Bloom: -- by a -- Vice Chair Suarez: Right. City of Miami Page 4 Printed on 9/8/2011 SEOPW Community Redevelopment Agency Meeting Minutes March 10, 2011 Mr. Bloom: -- second mortgage. Mr. Bockweg: Second mortgage. Vice Chair Suarez: But the second -- whether it's a first or second is really -- the security -- the quality of the security is contingent on the value of the land. So, I mean, is this land worth more than $3 million? Mr. Bloom: I believe the appraisals that we've seen before, speaking from memory, were approximately $3 million was the value of that property. Vice Chair Suarez: Got it. Mr. Bloom: So you have a $1 million first mortgage -- Vice Chair Suarez: Right. Mr. Bloom: -- and we would be second on the second mortgage. Commissioner Carollo: Now this is for the first $2 million. Mr. Bockweg: That's correct. Mr. Bloom: This is for the first $2 million. Commissioner Carollo: So you don't see a problem with that amendment that I proffered? Mr. Bockweg: I -- Commissioner, I don't see a problem with that friendly amendment that you made because ultimately the security is still there, that in case they do not meet those conditions, that we have a -- something in place to get reimbursed. Mr. Bloom: I just want to make sure that Camillus House is also in agreement. Chair Dunn: Yes. Could you state your name for the record, please. Bob Dickinson: Yes. Bob Dickinson. I'm the chairman at Camillus House. Good afternoon. I guess now it's good evening. All the conditions have been met, our lawyers tell us, with one condition that hasn't been. And that is one of the precedent conditions is financing. Now we're in a classic chicken and the egg situation. We've gone since last May trying to secure financing. We're trying to unencumber this CRA document so we can obtain the financing. There is a slight possibility we won't be able to get the financing, but well still be able to complete phase one, one way or the other. It may slip. So the real issue here is if it's the intent of the Commission to do whatever is possible to make sure that this building is built, that these three buildings are built, then I would suggest you eliminate as a friendly -- in your friendly amendment the condition about financing. Let's make sure that we get the job done. Then the rest of it all flows out because all of the rest of the situation has been met. Now the last thing you said, if I heard you right, Commissioner Carollo, is that the 2 million would be paid immediately. And I'm not sure if we can pay immediately or not. I mean, we have -- it's -- the 2 million is secured by some -- a mortgage and other things. We'd have to liquidate that, you know, so we need some good faith on what immediately is. Are those (UNINTELLIGIBLE) reasonable --? Commissioner Carollo: I could put it as far as immediately within a reasonable amount of time. And a reasonable amount of time, I mean, is subject to interpretation, but I don't mind putting a reasonable amount of time. City of Miami Page 5 Printed on 9/8/2011 SEOPW Community Redevelopment Agency Meeting Minutes March 10, 2011 Mr. Bockweg: Well, Commissioner, ifI may, the word lfnmediately'fs kind of a -- is not really accurate. The monies are reimbursed to the Camillus House once they provide evidence that those costs have been incurred. So once we have those costs incurred, we will be reimbursing Camillus House with the $2 million for the hard construction costs. So as soon as we have the information, which -- and we have gathered a significant amount of information already based on that, they will be reimbursed accordingly once that information is provided. Commissioner Carollo: Well, I don't want to throw a wrench in all this, but if you look at our default, I'm taking the language right out of the default, so that's already in the contract that you've all agreed to. Mr. Dickinson: And that's fine. I just want to make sure that was everybody's intent on what immediately is. And immediately is -- sounds better now that I heard it when you said it. Commissioner Carollo: Listen, I mean, in all fairness, I think the intent is for you all to receive the funding and for the construction of the buildings and to complete the construction of the buildings. However, we are now -- andl say tibe,'7 mean the CRA, is now being placed in a situation where we are absorbing a lot more of the risk and that's why, you know, I just want to make sure that we have protections in case the buildings are not built. Again, the amount, $10 million, is not the issue. That's been approved in the past and so forth. It's just that, you know, the way we're providing the money now, it's a lot more riskier to the CRA. Mr. Dickinson: Right. Commissioner Carollo: And I'm just trying, you know, to -- Mr. Dickinson: And I appreciate that. And if we've lived with that in the past, then we'll live with it now. But just understand while it's been everybody's intent since last May and ratified last September, the banks look at this and they say you must be kidding. So what we're trying to do is make this bank friendly so we can conduct the last $7 million gap loan 'cause we're self-financing the first 9 million. We had no choice but to do that or we'd be laying off 50 people right before Christmas. So everybody's intention is right here and that's how we want to go ahead. Mr. Bloom: Right, but to clar, we have met with representatives at the bank that you intend to do the loan with -- we have met with representatives at the bank that intend to make the $7 million loan to make sure that they're comfortable with the deal and that the funding agreement is something that'll work between what the CRA needs and what the lender needs to accomplish the completion of the project. Mr. Dickinson: Okay. Chair Dunn: I wanted to -- Mr. Dickinson: Well, if the City lawyer is comfortable that the banks are going to lend us the money on the basis of this, I certainly have no further questions. Thank you. Chair Dunn: Just wanted to, for the record, quantdy. What -- when the word risk was used, is there any real -- I mean, there's always a risk whenever you do -- but what is the risk? Mr. Bloom: The first $2 million, we've looked at lien waivers to know that that money was spent for hard costs. We're getting a mortgage to secure the repayment of that $2 million if Camillus House isn't able to obtain a loan or obtain other sources to be able to complete the project. Now the risk that the CRA would have is if during the construction of the project the bank has City of Miami Page 6 Printed on 9/8/2011 SEOPW Community Redevelopment Agency Meeting Minutes March 10, 2011 approved the budget and they're going to be disbursing the funds like any construction loan. Now there's always the possibility of change orders, cost overruns, and at that point, if the loan gets out of balance, meaning there isn't sufficient funds in the balance of the loan from the bank and from the CRA to complete the project, Camillus House would have to advance those funds. So the risk that the CRA would have, the risk that SunTrust or any lender would have is that when there's a cost overrun, Camillus House can't cover the shortfall. At which point construction would stop; SunTrust could foreclose its mortgage. Now we're hoping that, you know, the experienced lender will make sure that there's adequate reserves in the loan to make sure that this won't happen, but that's your risk. There's, you know, no control over large change orders. Chair Dunn: Right, but I've heard -- what is the likelihood of something like that happening at this point? Mr. Bockweg: Again, Commissioner, we feel very comfortable with how this amendment was changed. Because, remember, we had to walk a fine line in making sure the project actually gets completed and then helping Camillus House get the gap financing to make sure it gets completed. So the way this is drafted before you now, that's why we had negotiated and to make sure that there is a repayment, which initially was not in the agreement, if they do not meet the conditions and there is no funding agreement. Chair Dunn: And ifI may. You pretty much were able to negotiate that aspect of thae funding agreement? Mr. Bockweg: Yes, sir. Vice Chair Suarez: Mr. Chairman. Chair Dunn: Want to commend you on that. Yes, go right ahead Vice Chair. Vice Chair Suarez: Thank you. I just want to make clear that this amendment that we are going to hopefully approve -- because I'm completely in support of it -- that this will actually allay the bank's fears and will allow us to go forward with the financing 'cause I think that's the purpose of us doing this -- Mr. Bockweg: That was the entirely pur -- Vice Chair Suarez: -- in the first place. Mr. Bockweg: I'm sorry, Commissioner. Vice Chair Suarez: So can you answer my question? Mr. Bockweg: Yes. Vice Chair Suarez: Will this do the trick, for lack of a better --? Mr. Bockweg: Our meetings that we've had with Camillus House and their proposed lender feel that the changes that we are here makes the bank a lot more comfortable giving them that gap loan than they did previously. There is possibly one more small step that we need to take or that we will assist Camillus House in taking, but as far as from the CRA's side and our loaning obligation, the bank, from our -- from what I understand, and Camillus House can agree, feel a lot more comfortable with the language in front of us than what we had. Vice Chair Suarez: So they should not come back --I mean, there should not be a reason to come City of Miami Page 7 Printed on 9/8/2011 SEOPW Community Redevelopment Agency Meeting Minutes March 10, 2011 back on this particular grant agreement beyond today? Mr. Bockweg: No, sir. Vice Chair Suarez: Okay. Because I think, you know, we have to put this in -- this decision in perspective. You know, obviously the terms have changed. We have security, but it's not an arm's length transaction, as if we're buying and selling a house or something like that. This is for an enormous public benefit, and that's the purpose of what the CRA is created. So I just wanted to state that for the record. Commissioner Carollo: Mr. Chairman. Chair Dunn: Commissioner Carollo. Commissioner Carollo: Going back to the question that you asked, could the executive director or Mr. Bloom explain or further explain your question that you had, Commissioner Dunn, with the difference of how the funding was going to be provided in the initial agreement and how the funding is proposed to be provided now. Mr. Bockweg: Commissioner, in the initial agreement, all $10 million, at $2 million per year, would go into an escrow account. That escrow account will be managed by a third party, and then once everything was completed, which means the construction ofB, D, and F, plus the demolition of their current location on Miami Avenue, that is when we would then disperse the $10 million to Camillus House. Commissioner Carollo: And stop right there. And that's why I'm saying that now it's more riskier. Because before they had to finish com -- they had to complete the construction of everything. If not, our money is safe in an escrow account and we could get that money back. It's not like that anymore. And now he'll explain what this proposed amendment is. Mr. Bockweg: And Commissioner, you're 100 percent correct. There is a little more risk. However, the $2 million disbursement -- or I should say the total $10 million disbursement, the conditions that were in place initially -- in the initial contract are still in place, except for the initial $2 million, which will be reimbursed to them for costs already incurred. So all of the funding conditions and conditions that -- earmarks and benchmarks that they need to meet are still in place. So from that respect, the money does not go into escrow. You are 100 percent correct. The first $2 million will be going to them and be reimbursing them for costs already incurred. The following $4 million would be given to them as long as it's part of the funding agreement that they have in place with the bank. By that time, the Camillus House hopefully -- we're all anticipating will have completed phase one. The last $4 million -- four. Two initially -- Commissioner Carollo: Two, four. Mr. Bockweg: -- and then four million -- so we have four million dollars. Commissioner Carollo: Six, right. I'm thinking the last 2 million is the completion, the 10. Mr. Bockweg: No. The last $4 million are kept in security to make sure that the entire phase one is completed. Commissioner Carollo: Okay, so hold on. Two million dollars initially. Mr. Bockweg: Right. Commissioner Carollo: Then an additional $4 million. City of Miami Page 8 Printed on 9/8/2011 SEOPW Community Redevelopment Agency Meeting Minutes March 10, 2011 Mr. Bockweg: Right. Commissioner Carollo: That -- two plus four is six, right? Mr. Bockweg: Correct. Commissioner Carollo: Okay, gotcha. Mr. Bockweg: So then the last 4 million, we will still hold until everything is complete under the term of the completion definition in the contract. So that's how it's divided up now. Commissioner Carollo: So $6 million now will be going -- and I don't mean now 'cause I know there's dates, March 15 and then so forth -- but now in this new amendment or proposed amendment, $6 million will go up front, for lack of a better term, wherein before it'd still be in an escrow? Mr. Bockweg: Correct. The first $6 million is now going before the completion of the project instead of will be -- instead of completion of the project afterwards. Commissioner Carollo: And what I was trying to do with that friendly amendment was with the initial $2 million, should by any reason construction stop or not occur or they default, that it comes back to the CRA. So I'm trying to put us in a better position so we get that money back and then we have to speak about the $4 million because I want to make sure that, once again, construction stops or they -- whatever occurs to default, we could get the $4 million back. Mr. Bockweg: I think it's -- Chair Dunn: Let me see -- Mr. Bockweg: I'm sorry. Chair Dunn: -- if I get this, Executive Director. I think the reason for the amendment in one aspect was to ensure that construction of phase one would continue and be completed. Am I --? Mr. Bockweg: Our priority is the completion of phase one for the community to make sure that people -- Chair Dunn: I was going to -- yeah, right, for the jobs aspect. That -- because what happens, you have to show a level of continuity and thus far we've been getting some pretty good reports in terms of the jobs aspect. But also with the caveat that the money would be secured. Mr. Bockweg: And Commissioner, I don't want to put a false pretense out there. It's not as if we would give all $6 million right away. Commissioner Carollo: I understand. Mr. Bockweg: We are still doing $2 million per year -- Chair Dunn: Okay. Mr. Bockweg: -- and those benchmarks still need to be met as per the original grant agreement. Vice Chair Suarez: Thank you. City of Miami Page 9 Printed on 9/8/2011 SEOPW Community Redevelopment Agency Meeting Minutes March 10, 2011 Chair Dunn: Commissioner -- Vice Chair Suarez. Vice Chair Suarez: Thank you, Mr. Chairman. I think also the -- we're in a very difficult funding -- bank funding environment, and I think the bank had probably some heartburn over the fact that we would be -- even though it makes more sense for the CRA perspective that we're putting the money in an escrow account because it's safer for us -- Chair Dunn: Sure. Vice Chair Suarez: -- from their perspective, it becomes subject to the whim of the political fickleness of this body that could say later, you know, we want to defund it for whatever reason. We want to -- we need the money for something else, and for the bank to make a hard commitment of dollars in this environment, they want a harder commitment from the body. So that's my understanding of why the bank was requesting this, which, to be completely honest with you, I don't blame them. If I were the bank, I'd do the exact same thing. Mr. Bockweg: Right. That repayment would realize a lot sooner by the bank than after completion of the entire phase one. Commissioner Carollo: Mr. Chairman. Chair Dunn: Yes, sir. Commissioner Carollo: So taking it by steps again, on the first $2 million -- once again, Ilh reading off the executive summary where it says Camillus House is obligated to repay the $2 million to the CRA if the initial funding conditions are not satisfied by February 28, 2012. Going back to initial funding conditions and in the event that it has not been met and so forth, once again, I would like to add a friendly amendment on number 3 stating that terminating this agreement whereupon all payments, advances, or other compensation paid by the CRA or grantee shall be immediately returned to the CRA, which is language at the default. Commissioner Sarnof Maker -- Chair Dunn: Okay. Commissioner Sarnof -- accepts. And Mr. -- Chair Dunn: Okay. Commissioner Sarnoff.- -- Chair. What Vice Chair -- I don't know what to refer to you as -- Commissioner Carollo: Commissioner. Commissioner Sarnoff.- -- as Commissioner Carollo is asking for is part of the agreement -- there's nothing wrong with putting it in Section 10 -- I guess it's in -- Commissioner Carollo: Section 10. Commissioner Sarnoff. -- Section 10, replacement of the following section 14(m). It's language that's there. It could be put in there again. It would not change the agreement. It should not harm or concern your banker at all. Just to give you guys a little bit of perspective -- and I -- and actually the Chairman -- I should say Commissioner Gort in this circumstance -- probably has the greatest historic knowledge of this entire project. But when we started this entire concept, we were really the first people to step up. You're also dealing with the greatest fundraiser probably in the history of Miami -Dade County in Mr. Dickerson [sic]. And we City of Miami Page 10 Printed on 9/8/2011 SEOPW Community Redevelopment Agency Meeting Minutes March 10, 2011 challenged him by giving a $10 million grant. And he more than stepped up to that challenge. I think in the Miami Herald today, you saw that NCL has agreed to give $5 million. If you've ever been to anything he's put on, I've yet to see him raise less than $1 million at any event. So when we started this process, it was probably '06/'07. The environment was very, very different. Banks were loaning money in extremis, is probably the right word. And we put some hard and fast -- and I was the one that drafted -- asked to be drafted, candidly, a lot of those tough provisions because it was really thought to be a challenge grant. Every time he has found a roadblock, he's overcome the roadblock by spending -- I don't want to say his own money, but the money that he's raised. When Christmas came around and they were going to lay people off, they decided to self fund A number of the buildings will be self funded. I'm not saying that's right; I'm not saying that's wrong. But you really can't throw a roadblock in front of Camillus and not have them find a way to get over it, and that's really what you look for -- that's what we should look for in anyone that's a partner with the City of Miami or a partner with the CRA. And he's been a good partner, and he's been an honorable man. And if anybody wants to find out how to fundraise in Miami -Dade County, just follow him around for about a month and you'll figure out how he does it. He does it because he has a great reputation. So I just -- to put it in perspective, in '06 and '07, it was really coming out in the baby stages as a challenge grant. He's more than met that challenge. He's exceeded that challenge. And I hope that everybody will support me as the maker of the motion of following in this agreement. And there's nothing wrong with you adding the additional language. It shouldn't bother a bank. It's in the agreement to begin with. Chair Dunn: Does the seconder agree? Vice Chair Suarez: I amend my second, yeah. Chair Dunn: Okay. Okay, there's a motion and a second on the floor. All -- Commissioner Carollo: Mr. Chairman -- Chair Dunn: Yes. Commissioner Carollo: -- hold on. Before we vote, something that Commissioner Sarnoff just mentioned. They just received a $5 million grant today? Commissioner Sarnoff.- They did. Commissioner Carollo: Can that $5 million grant replace the 4 million that we may have to put upfront? Commissioner Sarnoff.- I think you'll find the way they got it is in 15 years. Is that right? Five million dollars in 15 years? I only know what I read in the Miami Herald. Mr. Dickinson: It was a $5 million pledge over 15 years (UNINTELLIGIBLE) -- Chair Dunn: Oh, yeah. Mr. Dickinson: -- with a biannual payments, and we have the first check for $156,666.66. So the answer -- the short answer to your question is (UNINTELLIGIBLE) no. Chair Dunn: No. Commissioner Gort: Mr. Chairman. Commissioner Carollo: Can't say I don't stick up for the CRA and try to -- City of Miami Page 11 Printed on 9/8/2011 SEOPW Community Redevelopment Agency Meeting Minutes March 10, 2011 Chair Dunn: Commissioner Gort. Commissioner Gort: Like I stated before, I have a history of 20 years in dealing with Camillus House. And for 20 years, we've been trying to find an additional location because the present location has really been kind of hard for the downtown area for the development of that whole area. And at the same time, by the move that has been made, the 7th Avenue corridor, Northwest 7th Avenue corridor needed some new development to take place in there. And I can tell you right now, the University of Miami with the two buildings that they're building there, in addition, two other buildings are going to be going up and having the Camillus House building right next to it within two blocks has really created a lot of development in that area. At this time, there's a major property that used to be the McArthur milk complex on 7th Avenue and northwest -- between 23rd to 25th, major development is going up in there. So for a change, we seeing something taking place within the Northwest 7th Avenue corridor, which is so much needed in that area. So I would like to tell you -- Commissioner, I agree with some of the points you bring up. I think it's very important looking at the -- that we spend our money wisely, but this is one project that I really will vote for it at any time. Chair Dunn: Commissioner Carollo. Commissioner Carollo: Thank you, Mr. Chairman. I have another question on number 12, CRA budget approval. The CRA shall support grantee in seeking approval from Miami -Dade County to confirm that no additional budgetary approvals will be required from Miami -Dade County on an annual basis regarding the disbursement of the grant. Could you define support? Mr. Bockweg: Well, to me -- Commissioner Carollo: On number 12. Mr. Bockweg: -- Commissioner, support would mean going in front of the County Commission and supporting that resolution to -- 'cause it's my understanding that the County will be drafting that resolution and, as partners with Camillus House, support to me means going in front of the board and expressing our support for that resolution in ultimately passing. Chair Dunn: Any other questions or comments? There's a motion and a second. Motion by Commissioner Sarnoff, seconded by Vice Chair Suarez, as amended. All in favor, let us hear by saying liye. " The Commissioners (Collectively): Aye. Chair Dunn: So moved. I do want to say -- I want to thank our Law Department. I want to thank Mr. Bockweg for working diligently to bring about that amendment, and to Camillus House. We look forward -- in the words of our illustrious governor, let's go to work. Priscilla A. Thompson (Clerk of the Board): You have to adjourn your meeting. Commissioner Carollo: Adjourn. Ms. Thompson: Chair. Commissioner Gort: Move to adjourn. Commissioner Carollo: Motion to adjourn. Chair Dunn: It's moved. City of Miami Page 12 Printed on 9/8/2011