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HomeMy WebLinkAboutSEOPW CRA 2011-07-25 MinutesCity of Miami City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Di • IN O9▪ IEP 19 1i? Meeting Minutes Monday, July 25, 2011 5:00 PM FREDERICK DOUGLASS ELEMENTARY 314 NW 12TH STREET MIAMI, FL. 33136 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 July 25, 2011 FINANCIALS 1. 11-00662 Present: Chair Dunn II, Vice Chair Suarez, Commissioner Carollo and Commissioner Gort Absent: Commissioner Sarnoff On the 25th day of July 2011, the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency of the City of Miami met in regular session at Frederick Douglass Elementary School, 314 NW 12th Street, Miami, Florida. The meeting was called to order by Chair Dunn at 5: 07 p.m., recessed at 7:25 p. m., reconvened on July 28, 2011 at Miami City Hall at 10:17 p.m., and was adjourned at 11:13 p.m. ALSO PRESENT: Pieter Bockweg, Executive Director, CRA Clarence Woods, Assistant Executive Director, CRA Veronica Xiques, Assistant General Counsel, CRA William R. Bloom, Special Counsel, CRA Todd Hannon, Assistant Clerk of the Board Chair Dunn: Good afternoon. We want to welcome you to our CRA (Community Redevelopment Agency) meetings, Southeast Overtown/Park West, Omni and Midtown. We ask that you would cut your beepers off, pagers off, phones off. Put them on vibration or on silence rather, if you need to do that, as I tell you. And also, we're going to ask that you would -- when you -- if you have an item that you'd like to discuss, please come to the microphone. State your name, your address, and we'll go from there. At this time, we're going to ask Commissioner Francis Suarez to lead us in our invocation, followed by a pledge of allegiance by Vice Chairman Carollo. Invocation and pledge of allegiance delivered. Chair Dunn: Let me take the liberty to introduce our CRA board members. Everyone is present. We have to my far left, your right, Commissioner Frank Carollo. He's also Vice Chair of our City Commission. To my immediate left, we have Commissioner Marc Sarnoff, who is the Chair of the -- Chairman of the Omni CRA. To my immediate right, we have Commissioner Francis Suarez, who is also the Chair of our Midtown CRA. And to my far right, your left, we have Commissioner Willy Gort, who is also our Chairman of our City of Miami Commission. CRA REPORT FINANCIAL SUMMARY FOR PERIOD ENDING JUNE 30, 2011. File # 11-00662 7-25- 2011 Financial Summary.pdf PRESENTED Chair Dunn: At this time, we're going to proceed with our order. We're going to ask for the financial summary. Miguel Valentin (Financial Officer, Community Redevelopment Agency): Good evening, Commissioners. As usual, we're going to be presenting the combined statement of financial position for Southeast Overtown/Park West. As of June 30, 2011, the total cash that we're reporting for this month is 24, 948, 468. And also I wanted to put on record that there is no reportable condition to make you aware of. Chair Dunn: Are there any questions? Commissioner Carollo: Mr. Chairman. City of Miami Paget Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 RESOLUTIONS 2. 11-00663 Chair Dunn: Commissioner Carollo. Commissioner Carollo: Thank you. I just want to state for the record the same thing that I've been stating month after month with regards to our financials. Once again, we have budgeted so much money and then the actual expenses are very, very little. There's a big disparity. So I won't go on in detail. I'll just say that, you know, the same thing that I've said in the past, I'm saying it again. Thank you. Mr. Valentin: Yes, sir. Chair Dunn: Any other comments or questions? CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("CRA") RATIFYING THE EXERCISE OF THE SECOND ONE (1) YEAR OPTION TERM UNDER THE AGREEMENT WITH SANSON, KLINE, JACOMINO & COMPANY, LLP TO PROVIDE EXTERNAL AUDITING SERVICES TO THE CRA, ATA COST NOT TO EXCEED $33,000, ALLOCATING FUNDING FROM SEOPW TAX INCREMENT FUND, "ACCOUNTING AND AUDITING," ACCOUNT CODE NO. 10050.920101.532000.0000.00000. File # 11-00663 07-25- 2011 Cover Memo.pdf File # 11-00663 07-25-2011 Financial Form.pdf File # 11-00663 07-25-2011 Legislation.pdf File # 11-00663 07-25-2011 Signed Legislation.pdf Motion by Board Member Carollo, seconded by Vice -Chair Suarez, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: Commissioner Gort, Commissioner Carollo, Chair Dunn II and Vice Chair Suarez Absent: Commissioner Sarnoff CRA-R-11-0035 Chair Dunn: All right, let's go to the next item. We went out of order. Unidentified Speaker: Excuse me, sir. Chair Dunn: We're going to go to -- One second there. Unidentified Speaker: Yes, sir. Chair Dunn: We really just -- I'm not disrespecting, but we got to kind of -- Unidentified Speaker: Okay. But can I get a moment -- Chair Dunn: Don't worry. You'll -- Unidentified Speaker: -- to speak before it's all over? City of Miami Page 3 Printed on 11/22,2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 3. 11-00664 Chair Dunn: At the right time, yes. Unidentified Speaker: Okay, yes, sir. Thank you. Chair Dunn: All right. We're getting ready to do our second item. We're going to yield now to -- it's item number 3. Pieter Bockweg (Executive Director, Community Redevelopment Agency): It's item number 2, Commissioner. Commissioner Gort: 2. Chair Dunn: Item number 2, yes. Mr. Bockweg: And item number 2 is the extension of our auditor, who has been in contract with us since '09, and he's up for renewal so we want to extend his contract. Commissioner Carollo: So move. Vice Chair Suarez: Move it. Second. Chair Dunn: Motion by Commissioner Gort, second by Commissioner Suarez. All in favor, let us hear by saying aye." The Commissioners (Collectively): Aye. CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("CRA") AUTHORIZING THE INCREASE TO THE CONTRACT COMPENSATION AMOUNT BY $7,800 FOR THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CRA AND SFM SERVICES, INC. ("SFM") TO PROVIDE LANDSCAPE MAINTENANCE SERVICES ON CRA PROPERTIES FORA ONE (1) YEAR PERIOD, INCREASING THE TOTAL COST NOT TO EXCEED $42,864; ALLOCATING FUNDS FROM SEOPW TAX INCREMENT FUND, "OTHER CONTRACTUAL SERVICES," ACCOUNT CODE NO. 10050.920101.534000.0000.00000. File # 11-00664 07-25-2011 Cover Memo.pdf File # 11-00664 07-25-2011 Financial Form.pdf File # 11-00664 07-25-2011 Backup.pdf File # 11-00664 07-25-2011 Legislation.pdf File # 11-00664 07-25-2011 Signed Legislation.pdf Motion by Board Member Gort, seconded by Board Member Carollo, that this matter be ADOPTED WITH MODIFICATIONS PASSED by the following vote. Votes: Ayes: Commissioner Gort, Commissioner Carollo, Chair Dunn II and Vice Chair Suarez Absent: Commissioner Sarnoff CRA-R-11-0036 Chair Dunn: Item number 3. Pieter Bockweg (Executive Director, Community Redevelopment Agency): Item number 3, City of Miami Page 4 Printed on 11/22,2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 Commissioner, is -- Chair Dunn: Can we -- excuse me. Can we have quiet in the back, please? Unidentified Speaker: Yes, sir. Chair Dunn: Thank you. Mr. Bockweg: Item number 3, Commissioner, is an addendum to the contract which is a scrivener's error in the reso. I need to change it. Instead of saying increased to the contract compensation, it's an addendum to the current contract with SFM. Once the CRA (Community Redevelopment Agency) Board had decided to not support Roots in the City more, we needed to indemn fy -- not indemn, amend, sorry, the SFM contract to make sure that they were able to maintain and clean those lots. SFM was awarded a contract in March of this year. It went through a fair, competitive process. The number that is in the reso is not accurate. It is -- the number 7,800 needs to be changed to -- Mark, what's the number? Mark Spanioli (Director, Engineering and Construction, Community Redevelopment Agency): Five thousand and nine dollars. Mr. Bockweg: -- $5, 009, and this will take care of the maintenance for the area by the Ward Rooming House. Commissioner Gort: And the reason we doing this is 'cause we have two additional lots that they have to take care of. Am I correct? Mr. Bockweg: Well, the reason why is Roots in the City were in charge of maintaining those lots and Roots in the City is no longer there. Commissioner Gort: Move it. Vice Chair Suarez: Second. Commissioner Carollo: Second. Chair Dunn: Been motioned by Commissioner -- Vice Chair Suarez: As amended. Chair Dunn: As amended. Commissioner Gort: As amended. Chair Dunn: As amended by -- Do you accept the amendment, motioner? Commissioner Gort? Commissioner Gort: Yes. Chair Dunn: Seconder -- Commissioner Carollo: Yes. Chair Dunn: -- do you accept? Been motioned by Commissioner -- as amended by Commissioner Gort, seconded by Commissioner Carollo. All in favor, let us hear by saying Eye." The Commissioners (Collectively): Aye. City of Miami Page 5 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 [Later...] Grady Muhammad: And not only that, more importantly, on item 3 that we didn't get a chance that was the SFM Services, we have to definitely give opportunities, we talking jobs with one of the graduates, Howard and Howard Property Management. That's part of the graduates from the NANA (Neighbors and Neighbors Association) team for the businesses. With the business, we should definitely look at giving that local business preference that the City Commission just approved, that 10 percent plus that 5 percent office. He's a local businessman. SFM Services is in Hialeah Gardens, and truthfully, he underbidded SFM, so we got to give some of these workers and companies that go through the CRA, we got to give them opportunities to be able to get those contracts as well. Vice Chair Suarez: And I just want -- Todd Hannon (Assistant Clerk of the Board): Excuse me, Chair. Chair Dunn: Go ahead. Mr. Hannon: I'm sorry. Excuse me, Chair. Can I just get the speaker's name on the record? Mr. Muhammad: Grady Muhammad. Mr. Hannon: Thank you. Chair Dunn: Okay, Commissioner Suarez, one second. Vice Chair Suarez: Thank you, Mr. Chairman. I think -- I want -- there was something that the executive director said and I wanted to kind of explain it a little further. The way the City's process works is we don't necessarily go away from the lowest bidder. We give people who have local -- we give people who are -- come within range of the lowest bidder and who have local employees, we give them the opportunity to come in and accept the lowest bid and do the work at that price. I think the way we do it is -- Mr. Muhammad: A best and final offer. Vice Chair Suarez: -- the best and final offer, exactly, where we allow -- what was that? Mr. Muhammad.- Yes. And in the end -- Vice Chair Suarez: Exactly. Mr. Muhammad: -- we definitely got to go with this -- Vice Chair Suarez: So it's almost like you get two bites at the same apple. Mr. Muhammad: Yes, sir. And with -- the only thing that I saw with the executive director and the presentation, we've already given Camillus House the $10 million. Camillus House hasn't created no jobs for my neighborhood. Mr. Bockweg: That's not true. We have -- Mr. Muhammad.- We haven't given -- Mr. Bockweg: That's not true. City of Miami Page 6 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 4. 11-00549 Chair Dunn: Okay, you got two -- Mr. Muhammad: I do know we haven't given jobs -- Camillus House has not provided the jobs for our community. That's a fact. Chair Dunn: All right. Mr. Muhammad: Thank you, Mr. Chair. Chair Dunn: Mr. Lee Varity [sicJ, I promised him, and then we're going to recess this until Thursday's meeting. It will be continued until Thursday. Mr. Lee Varity [sic] want to say something before -- Lee Variety: Good evening. Chair Dunn: Go ahead. Mr. Variety: I'm Bishop Lee Variety. I've been asked by the community to step up to the plate and find out what's going on and to call a rally between all the different community leaders, which hopefully I'm still able to do. Mr. Gort, I would like for to get with you all and we talk -- Chair Dunn: Please, we -- please. Thank you. Go ahead, Mr. Varity [sic]. Mr. Variety: Okay. So that before we even get into the process -- and I know you work hard -- I would like to set a meeting with you all when we get a chance and then we'll start from there and let me just leave this alone right at the moment, okay, 'cause I know you trying to do the right thing. But one thing that I heard that I want y'all to pay closer attention to that needs to be a priority in this situation, based on the federal regulations, this is all based around slum and blight so that mean poor people is involved. So far I haven't seen where poor people have been able to get any of these millions that I've been hearing y'all talk about and I would like to be able to have someone to explain to me how the process go and (UNINTELLIGIBLE) and we'll do it in private. I'm going to leave it alone right now, sir. Chair Dunn: Let me state -- Mr. Variety: Thank you. Chair Dunn: -- state for the record, the Southeast Overtown/Park West meeting is in recess and we'll reconvene on Thursday, July 28, at 6 p.m. at Miami City Hall, which is located at 3500 Pan American Drive. Thank you. Commissioner Gort: Move to adjourn. Chair Dunn: Good night. Is there a motion? No, we're recessing. Motion to contin -- to recess? No, no need. No need. All right, thank you. CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING THE ISSUANCE OF A GRANT, IN AN AMOUNT NOT TO EXCEED $670,000, TO MTZ CARVER LLC TO UNDERWRITE COSTS ASSOCIATED WITH DEMOLITION WORK, STRUCTURAL AND INTERIOR FRAMING, INSTALLATION OF PLUMBING AND HVAC SYSTEMS, City of Miami Pagel Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 ELECTRICAL REWIRING, CABINETRY, ASBESTOS ABATEMENT, AND LANDSCAPING AT THE GROUND FLOOR COMMERCIAL UNITS AT 801 NW 3RDAVENUE, MIAMI, FLORIDA; AUTHORIZING THE EXECUTIVE DIRECTOR, AT HIS DISCRETION, TO DISBURSE THE GRANT ON A REIMBURSEMENT BASIS OR DIRECTLY TO VENDORS, UPON PRESENTATION OF INVOICES AND SATISFACTORY DOCUMENTATION; AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE ALL DOCUMENTS NECESSARY FOR SAID PURPOSE, IN A FORM ACCEPTABLE TO GENERAL COUNSEL; ALLOCATING FUNDS FROM SEOPW TAX INCREMENT FUND, "OTHER GRANTS AND AIDS," ACCOUNT CODE NO. 10050.920101.883000.0000.00000. File # 11-00549 07-25-2011 Cover Memo.pdf File # 11-00549 07-25-2011 Financial Form.pdf File # 11-00549 07-25-2011 Legislation.pdf File # 11-00549 07-25-2011 - Signed Legislation.pdf Motion by Vice -Chair Suarez, seconded by Board Member Gort, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: Commissioner Gort, Commissioner Carollo, Chair Dunn II and Vice Chair Suarez Absent: Commissioner Sarnoff CRA-R-11-0034 Pieter Bockweg (Executive Director, Community Redevelopment Agency): Mr. Chair. Chair Dunn: Yes. Mr. Bockweg: Item number 4, 5, 6, 7, these are all RFPs (Requests for Proposals) that we'll be issuing. There most likely will be some discussion. I'm more than happy to go through them very quickly, but I'm sure that the Board would want -- Commissioner Gort: RFP that have been issue or (UNINTELLIGIBLE) issue? Commissioner Carollo: Defer? Mr. Bockweg: They're going to be issued. Commissioner Gort: They're going to be issue. Mr. Bockweg: Well, no, they're being awarded. I'm sorry. Commissioner Gort: They'll be awarded, okay. Mr. Bockweg: They're being awarded. Commissioner Gort: It's not going to be issue; it's going to be awarded. Chair Dunn: So is there -- What is the pleasure of this board? Commissioner Carollo: Defer? Chair Dunn: We can -- I'll tell you what, let's see, but we know basic -- let's just go with item number -- Mr. Bockweg: Number 4? City of Miami Page 8 Printed on 11/22,2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 Chair Dunn: -- 4, yes. Mr. Bockweg: Okay. Chair Dunn: We'll see where we are. Chelsa Arscott: Chelsa Arscott, CRA (Community Redevelopment Agency) program administrator for the CRA. Item number 4 is a resolution authorizing a grant, in an amount not to exceed $670, 000, to MTZ Carver LLC (Limited Liability Company), to underwrite costs associated with the rehabilitation of a vacant, three-story commercial building, the Carver Apartments and Shops, at 801 Northwest 3rdAvenue. The project's scope of work includes demolition, structural and interior framing, installation of plumbing and HVAC (Heating, Ventilation andAir-Conditioning) systems, electrical rewiring, cabinetry, asbestos abatement and landscaping. This project is estimated to cost $1.8 million. To date, MTZ has invested $191,000 into the project and anticipates the creation of four new jobs inside its organization for work associated with the property and approximately 24 new jobs from perspective commercial tenants. MTZ has secured financing for the project from the Florida Housing Finance Corporation. They have a first mortgage on the property. Overtown Renaissance LLC, there is a seller financing on that -- on the property. The City of Miami, through its HOME (Home Investment Partnership Program) obligations and the CRA, would be providing a grant if this board approves. The total aggregate amount of funding is 1.12 million, approximately 61 percent of the project budget. The CRA grant, if approved, would represent approximately 39 percent of the overall project. MTZ is requesting a grant in the amount $662,024 to offset a portion of the costs associated with the renovation of the residential component of the project and to fully fund the commercial ground floor, which is approximately 3,900 square feet, and it would give us approximately four new commercial bays. MTZ has acquired the necessary building permits from the City of Miami for the project and has indicated it is ready to mobilize within 30 days if the requested CRA funding is awarded. The property is currently vacant and is presently inhabitable. The CRA has elevated job creation and affordable housing as priority objectives, as stated in the 2009 amended and restated Overtown/Park West plan. Commissioner, I just wanted to point out there is a scrivener error as Igo over the project in summary. The Carver Apartments consist of ten residential units and, as I said, 3,900 square feet of commercial retail space on the ground floor. The residential units is being funded primarily through a low -interest rate loan from the City of Miami HOME funds. That HOME program has an income restriction guideline of 80 percent AMI (Area Median Income). On page 3 of this memorandum to the Board, I did list 140 percent AMI. That is incorrect. It is 80 percent AMI. The CRA is only funding a small portion of the residential units and the condition that will be imposed by the City is consistent with the CRA's affordable housing policy. So we will accept their restriction if this program goes forward. The commercial component will be fully funded by the CRA. And in your package, after the image of the project site, you will see how the funding is to be allocated for the retail and for the portion of the residential that the CRA will be funding. We have spoken to the developer in length about the concerns from the CRA Board. So to address Board Member Sarnoffs issue about simultaneous closing, the CRA, again, will be fourth in terms of the financing. So we're last in in terms of this project. There are some adjustment that will have to be made because the developer had came to us back in 2009. This process has taken a tremendous amount of time because we told the developer to come back once they had secured access to the property and once they had obtained their other financing. They have done so and now they're coming to us to get that funding. When they originally went to the City, they were looking for a grant of $750, 000 for the CRA. That amount has been reduced as we went back and forth looking at the numbers with the developer so it's now down to 670. In terms of the project schedule from Board Member Suarez, one of the things we talked to the developer, which is different from how we've done in the past, in our grant agreement, there will be a very specific construction timeline. We asked the developer to give us a very specific -- a very conservative timeline for the overall project, from the date the funding's approved by the City of Miami Page Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 CRA, including time frame for negotiations going back to the City for their, you know, adjustments based upon our grant recommendation. And that we would hold them accountable for the construction period, and any delay the developer would have to come before you and make their case because the CRA has negotiated this overall timeline. They estimate that the overall timeline will be about 215 days for this project to be completed. So again, in your cover memorandum I have identified a grand opening date from -- of April 2012 if funding is approved tonight. To address Commissioner Carollo's concern about funding disbursements, again, because we have voiced our concern to the developer, the sheet that I -- the schedule of values is what will be included in the grant agreement. The contractor would have to make draws based upon the schedule of values. And again, any changes, any deviance from the information that we have negotiated and included in the grant agreement will have to be brought back before the board and the developer will make its case to you for why these timelines and delays have been met. And finally, in terms of Chairperson Dunn's concern about job creation, one of the conditions we told the developer will be imposed is a restrictive covenant because we had negotiated that the ground space will be made available at an affordable rate, just like how we've done in the past with Arena Square and other sites, for a five-year period total. So if at any point a business comes in and that space become vacant, the property -- the affordability period is (UNINTELLIGIBLE) until a new tenant comes in. And I just want to put one more thing on the record. In terms of the justification -- 'cause we always like to give a big picture -- the project is consistent with a conceptual build -out plan as detailed in the Overtown/Park West plan. Specifically, the project site is located within the target area defined in the plan as Project Area B, the Historic Overtown Folk Life Village. And the proposed facade treatment and intended use of the property is consistent with the guidelines stipulated at page 15 and Appendix A of the Historic Overtown Folk Life Village master plan, which is incorporated by reference in the plan. The project will be the second initiative within the defined Project Area B, the first being the completion of the 9th Street Pedestrian Mall streetscape, which you saw pictures of in the presentation, and the restoration of the historic Ward Rooming structure, which again, you saw in the presentation. That was our initiative. The plans have forced the goals for the area and the priority action steps necessary to eliminate conditions of slum and blight. And again, job creation, creating infill housing, diversity in housing types and retaining affordable housing is a stated objective as well as improving the quality of life for residents. We have the developer here and his team. We also have -- and his contractor. We also have representatives of the City of Miami to answer any questions you may have on the project. Chair Dunn: Before we hear from our -- let me hear from the -- is the person -- developer who's speaking on this item. And then we will hear from -- Anyone that's going to speak on this item, could you come to the podium and state your name, address for the record, please. Don Patterson: Good afternoon, Commissioners. Thank you so much for your time. As Ms. Arscott has pointed out, we've come a long way in this process for an affordable housing project to include job creations as well. My name's Don Patterson. I'm president/CEO (Chief Executive Officer) of Mt. Zion Developments. We are birthed out of Historic Mt. Zion Missionary Baptist Church. Mt. Zion Developments is the manager of the entity MTZ/Carver, which actually owns the building. And what that means is Mt. Zion Developments and staff and the project team will be the operators putting forth construction for substantial rehab. I have to tell you, Ms. Arscott did a fantastic job of pointing out all the highlights of this project and benefits. Anything I say is going to help -- only be redundant, but I think a couple items are important to mention. The idea that we currently have ten vacant units at 3rdAvenue and 8th Street is unfortunate. What we intend to do is do a complete gut rehab, walls, ceilings, the floors, replacing the existing cabinetry with materials and fixtures typical of a market -rate housing unit. Additionally -- in addition to the construction jobs, we expect by way of the retail spaces, again, to create between 20 and 30 jobs, local jobs, to include services or -- I'm sorry, retail products such as quick -serve restaurants. We have a local vendor who is a well-known barbecue vendor in Mr. Talmadge Frazier. We have been approached by tax preparation entities seeking space in the retail. There is an -- a small business called PostNet which bought -- was bought out by -- I'm sorry, what is City of Miami Page 10 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 it, Mailboxes Etc was bought out by PostNet. PostNet has also expressed an interest in occupying space at this location, a women's clothing boutique and many others. In addition to the -- this is the existing building. As you can see, the structure is comprised of a simple box structure. And this what we -- what is presented here is the conceptual drawing of what we propose this project would ultimately look like. Going back to the idea that the building itself is a box structure with the benefit of some creative architects, they were able to create stucco bands, colors and awnings and pop -outs that offer some dimension and make the building itself appear to be a bit more contemporary and in line with some of the quality building structures you see in newer neighborhoods throughout Miami -Dade County. This is the floor plan -- actually, it's the site plan for the first floor which shows the floor plan to include four retail spaces that have been partitioned off. The larger end -- I'm sorry, the larger spaces are directly on the corner at 1,500 square feet and the balance of the retail spaces are between 8 and 750 square feet each. This is an example -- I'm sorry, this is the floor plan for the second floor. You can see that there are five apartment units. We have four twos and one one -bedroom unit on each floor for a total count of ten apartment units. The third floor is very similar so I didn't include that slide in this presentation. These are elevations for the project. Again, the architect used some pop -outs to create some dimension. We have the attractive awnings. On this north end, I'd like to point out, is sort of an indoor/outdoor arrangement. It's a covered patio so the retail vendant [sic ], preferably a restaurant, would have the benefit of having sort of an indoor/outdoor cafe, which helps to create some traffic in the area and ultimately could benefit the occupant for that retail space. Instead of limiting him to the 800 square feet, he gains an additional 200 square feet by way of a covered patio. And this is the south end of the building. This is the rear of the building, showing service entrance to the retailers, and the two levels above are balconies for the residential spaces. And this is on the north end. Again, we show a covered patio with railing for indoor/outdoor cafe activities. So ultimately, what we're doing is we're taking a very ugly building and making it very attractive. By way of the retail activity that begins to occur within that space, there becomes additional commerce traffic that is likely to venture north on 3rd Avenue, ultimately creating additional commerce traffic for those businesses up to, say, 14th Street. So it's not just about this particular building, but it's about not just -- it's about extending improvements and actually creating a vision for -- of the greater 3rd Avenue business core and ultimately helping to begin the process of changing the look of the Historic Overtown Folk Life District as we know it today. Thank you for your time, and I'm prepared to answer any questions you may have. Chair Dunn: Commissioner Suarez, and then I believe Commissioner Gort. Vice Chair Suarez: Thank you, Mr. Chairman. Thank you for making those adjustments to the record regarding the affordability of the units. I believe that our HOME funds required a different formula than what was presented to us in our packet. This did go to a competitive bidding. And my understanding that only 311,000 of the CRA portion is going to the residential construction, ifI'm not mistaken, that is dedicated to the actual roofing. Is that correct? Ms. Arscott: Commissioners, in your package, there's a schedule of values and it specifir all the line items associated with the residential, as well as commercial. So a portion of the funding is expected to go towards demolition and earth work. A large percentage is going to go to roofing, as well as to plumbing. And that schedule, Commissioner, is on -- is two pages after your cover memorandum. Mr. Patterson: Commissioner Carollo -- Suarez, the answer to your -- Vice Chair Suarez: Yes. Mr. Patterson: -- question is yes. Roofing is -- as it relates to the overall project is actually priced at $50, 000. It is a poured membrane roofing system that reflects light and ultimately creates energy efficiencies within the building. City of Miami Page 11 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 Vice Chair Suarez: Okay. Chair Dunn: Commissioner Gort. Commissioner Gort: My question is, the parking facility, where is it located at? Mr. Bockweg: If may. Don, if may. The parking, Commissioner -- Mr. Chair, the building is actually grandfathered in, so under the code they do not need required parking. There is some parking on the street, as well as Mt. Zion. But another item coming before you is the item on the corner of 3rdAvenue and 9th Street, which we are proposing to make into a surface parking lot to accommodate the retail in the building. And Mr. Patterson and I will be negotiating a lease for that lot, which of course we'll be bringing back to the Board for ultimate approval so that the commercial tenants will be able to use that parking lot there. Commissioner Gort: Well, I know it's grandfather in, but parking's one of the things that you need for retail. A lot of the people that are going to be coming in, they don't live there, but they're going to need parking to come in. And if you want those business to be successful, they got to have places where the people can go to. Mr. Bockweg: Absolutely. And that's one of the reasons why we're building that lot on the corner. I'm sorry -- Mr. Chair -- I'm sorry. Chair Dunn: Yes. Mr. Bockweg: IfI may, I have a question for Mr. Patterson. I need -- I think it needs -- it's important that needs to be brought up. I've gotten a few calls today related to an individual that had some interest prior, and I just want to make sure it's clear and on the record as it relates to a -- and Don, if you could answer these questions for me -- Mr. Patterson: Certainly. Mr. Bockweg: -- as it relates to Sandy Walker, who, as I understand it, was the previous owner of that piece of property. Could you kind of put on the record for us, as you know it or as it is, the relationship that she has with that property currently? Mr. Patterson: Overtown Renaissance Properties is an entity that was created by Ms. Walker and two other partners. The interest within this project is limited to a second mortgage that they have on the property and it's -- and I'll explain. We purchased the property for 410. Florida Housing Finance funded only the residential portion of the project, which totaled $260, 000. The balance was $50,000. The Overtown Renaissance partners agreed to fund a second mortgage to the tune of 150. We paid down 11, so ultimately when we went to close, we had debt to the tune of $139 -- I'm sorry, $139, 000 for that particular mortgage. Going forward, it's been almost two years now since we closed on the loan. And over time, we've actually paid an additional $50,000. So our current debt for that second mortgage is limited to $89,000. Mr. Bockweg: And what is her financial interest in the overall development, if any? Mr. Patterson: None. Mr. Bockweg: Okay. Thank you. Chair Dunn: Commissioner Carollo. Commissioner Carollo: Thank you, Mr. Chairman. A few things that I just want to point out and City of Miami Page 12 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 maybe, you know, we could discuss and see if we could come to some consensus. I'm not crazy that MTZ on -- is only putting 10 percent of the total construction cost. I wish they would put more skin in the game 'cause they're only putting 10 percent. I would have liked to see the AMI actually be at 60, 50 percent instead of 80. Mr. Patterson: I'm sorry? Commissioner Carollo: AMI. Mr. Patterson: You would prefer that it was at 150 percent? Commissioner Carollo: No, 50 percent. At 60, 50 percent, more or less. I would have liked to see that. For the amount of money, only ten residential units. I would have liked to have seen more residential units for the amount of money that we're paying because I'm not just allocating the CRA part. I'm also seeing City of Miami HOME funding and so forth. For the whole amount, I would have liked to have seen more than ten residential units. As far as the jobs, you stated four jobs and then twenty-four jobs. How can we have some certainty within those four and twenty-four jobs? It seems like the four jobs are more solid, but those twenty-four jobs aren't necessarily -- you know, that's more like in the private sector and it could occur. And how can we have some certainty that those jobs will come from the Overtown area, first of all; and second of all, from the City of Miami. Mr. Patterson: Okay. You asked four questions. I'm going to allow Chelsa to answer one of them. The first one is related to the contribution from Mt. Zion Developments within the deal. Commissioner Carollo: Right. Mr. Patterson: The information you have is limited to the investment into the property. Understand that Mt. Zion Developments has been involved in this project for, you know, almost three years. We did not include the fact that we spent nearly 200,000 in project management activities, everything from securing loans, negotiating agreements with prospective lenders, going through the underwriting process, the RFP -- or RFQ (Request for Qualifications) and then RFP process with the general contractors. All of that could and should be seen as an investment on top of the dollars that were put into the project. But you know, for the -- for our purposes, it was limited to the investment in the building. The next item was related to the cost per unit for affordable housing. Look, we -- when we first took on evaluating this particular property, we did go through an analysis to determine if it was better to knock down the building and build new. Unfortunately, with current zoning, if we eliminated that building, a whole lot of other issues would have entered into the equation that would make it prohibitive not just from a cost standpoint but from ultimately what we would get in a building product. So what we realized is we have an opportunity to take an existing building, make it attractive and at a level where it sets the benchmark for the quality of housing that could actually -- housing and retail that could actually happen within the Historic Overtown Folk Life District. And then -- oh, and by the way, we're priced at $93, 000 per unit. A project directly on the other side of I-95, the Madison View project, was built at $125, 000 per unit and that includes their ability to gain a volume discount. It was 120 units. We're talking ten units. So I think we -- you know, from a cost comparison, I think we're doing quite well. And then the last item, sure, we're going to have four jobs created by way of Mt. Zion Developments within our entity. The 24 jobs is an estimate. What ultimately -- unfortunately, what it's going to depend on is our ability to attract businesses that have a need for as many -- in all four spaces, a need for up to 20, 25, 30 employees . And the last part of the same question is is how do we ensure that those jobs are from the community. Mt. Zion Developments, 501(c)(3) nonprofit, in existence for -- since 1965. Our chairman, who unfortunately couldn't be here with us, Reverend Ross, is on vacation but sends his best, will make sure that the jobs that we create within this property are first made available to folks local to the area. And that's my commitment as president of the organization, working with my board City of Miami Page 13 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 who will hold my feet to the fire in making sure that happens. Commissioner Carollo: A couple more questions and I just want to follow up on the AMI. Mr. Bockweg: Commissioner -- Commissioner Carollo: Is there any way of lowering the AMI? Ms. Arscott: Sure. Mr. Bockweg: Commissioner, as far as the jobs are concerned, I just want to make sure that that is also something we can make it a requirement in the grant agreement, okay, so that's another mechanism that we can use. Ms. Arscott: And Commissioner, again, just to reiterate some of the things that Don Patterson had said. To be clear, of the total project cost, 61 percent are loans. So the developer has to repay those funds. So of the four funding sources I mentioned, the first -- the Florida Housing Finance must be repaid. The seller financing, the developer has advised he has paid down, but the remaining balance must be repaid. And the City's funding is a loan. It's a low -interest rate loan, but a loan nonetheless. So the only funding in the project that's a grant will be the CRA. So in a sense, the developer's contributing 61 percent in the project. As it relates to the HOME -- the AMI -- and just so that the other board members are aware, at 80 percent area median income, a family of one, the maximum income is $38,650. That's the maximum income at an 80 percent AMI At a 50 percent, the maximum income is 24,150. So if we had -- Commissioner Carollo: It's a big difference, though. Ms. Arscott: No, I understand. And if we have a person who makes more than a particular AMI, they will be restricted from entering into that property. With this specific project, the HOME guideline required that 20 percent of the units will be made available to those with a maximum AMI of 50 percent and the -- Commissioner Carollo: I'm sorry. Say that again, I'm sorry. Ms. Arscott: Twenty percent of the project -- so that would equal two -- Commissioner Carollo: Two. Ms. Arscott: -- and 80 percent of the project -- so the remaining eight units will be made available at maximum 80 percent. And again, these are guidelines depicted -- I'm sorry, defined by HOME guideline. This is not something the City or the CRA can just change. Commissioner Carollo: So eight will be at -- eight units will be at 80 percent AMI and two units will be at 50 percent -- Ms. Arscott: Yes. Commissioner Carollo: -- AMI? Ms. Arscott: Yes. And then to address the other concern about adding more units, as Mr. Patterson pointed out, with the Overtown area -- and we have experienced this with other developments -- in order to have that footprint to garner a project that will accommodate more units, the developer would have to amass more land. And so because historically those properties were made at a zero lot line, the moment you demolish or rehab, you remove all -- City of Miami Page 14 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 Commissioner Carollo: Setbacks. Ms. Arscott: -- grandfathering and that you have the setbacks and it's going to be setbacks according to the Miami 21 and then you will now have -- Vice Chair Suarez: Requirements for parking. Ms. Arscott: -- certain requirements for parking and then it makes the deal out of whack. And we've experienced this same issue with other developers. And I think that's all your questions. Commissioner Carollo: That's it. And I have two more follow up questions. One is someone mentioned as far as some of this starting in 2009, so I want to make sure that we still have the funding from Florida Housing Financing [sic], City HOME and so forth. And if we approve this today, are you also shovel ready? I mean, is this -- Ms. Arscott: Yes. Commissioner Carollo: And I know it's a refurbish so it's -- Ms. Arscott: Right. Commissioner Carollo: -- but will you be -- how fast will this be moving or --? Ms. Arscott: Well, the developer can answer that question. I know they've had their permits ready since 2010 and they have to get it renewed, you know, while this entire process, you know, was vetted. But in terms of being shovel ready -- and the developer can put it on the record -- but we have, you know, spoken to the various parties involved, asked for certain updates from the various parties, and so I know today that the first mortgage is in place. At some point, you know, there's certain things that had to be done to take out certain (UNINTELLIGIBLE) financing, but currently the only loan that has not closed yet is the City of Miami's HOME. And as I mentioned, we're going to do that as a simultaneous closing. The developer would have to go back -- if funding is approved by the CRA, the developer will have to go back to the City HOME loan committee to, you know, make some adjustments and then at that point we will have a simultaneous closing with the CRA. Mr. Patterson: Yes. No. We are fully permitted and the project is shovel ready. Vice Chair Suarez: Move it. Chair Dunn: There's a motion -- Commissioner Gort: Second with discussion. Chair Dunn: Okay, there's a motion and a -- Derek Cole: Can I interject? Chair Dunn: No, no, no, no, no. Mr. Cole: I think it's a great project. Chair Dunn: Okay, but you -- Mr. Cole: I really like what -- City of Miami Page 15 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 Chair Dunn: Okay, thank you. But it's -- we're -- Mr. Cole: -- Dunn's doing. Chair Dunn: Time is of the essence, sir, please. Okay, there's a motion by Commissioner Suarez and a second by Commissioner Gort for discussion. Commissioner Gort. Commissioner Gort: My understanding looking at that building, Igo through that building -- excuse me. Can I get your attention for a minute? Can I get you up here? Unidentified Speaker: Absolutely. Commissioner Gort: The traffic that goes through that 3rdAvenue, people going to the expressway, if it was me, my idea was knock that box down. Now looking at the drawings you got in here, if you can -- that place -- if we have the commitment it can be built that way, I think it could be excellent for a retail, the right retail in that corner 'cause that corner after you improve it, you got the amount of people going through there. If you have the right market and the right advertising in there, you should be able to pick up a lot of clients in there. The most important thing, once again, is the parking. Make it accessible to the people to be able to get out. If you look at the traffic pattern in there, you got I don't know how many thousands of cars go through there every day and that's something you need to take advantage of. Mr. Patterson: You're -- Mr. Bockweg: As well as all the traffic that comes off of the 8th Street exit going to -- Commissioner Gort: Right. Mr. Bockweg: -- the arena. Mr. Patterson: You're absolutely right, Commissioner Gort. At that intersection, it generates roughly 22,000 cars per day. A large percentage of it going northbound gets on the freeway and keeps going. The hope is is that with -- and with your support in creating this attractive building, it'll slow down traffic, there'll become an interest in becoming patrons to some of the retail projects on the ground and then venture further to the north to experience what else we're doing in -- on the 3rdAvenue corridor. Commissioner Gort: It's the entrance to Overtown. It's one of the main entrances of Overtown, sir. Mr. Bockweg: That's right. Chair Dunn: Anyone else? Commissioner Gort: My second question is, we -- the CRA is going to be supervising and working with them to make sure that all the loans are on and -- Mr. Bockweg: Absolutely. Commissioner Gort: -- all the permits are on before anything we do. Mr. Bockweg: Absolutely. Commissioner Gort: Okay. Thank you. City of Miami Page 16 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 5. 11-00665 Commissioner Carollo: Mr. Chairman. Chair Dunn: Yes, Commissioner Carollo. Commissioner Carollo: The executive director mentioned something as far as being able to put some type of covenant or some type of -- as with regards to the jobs into the agreement. Mr. Bockweg: In the actual grant agreements, yes, sir. Chair Dunn: Commissioner Suarez. Vice Chair Suarez: And I think the Vice Chairman makes a good point. It's something that I want to talk about in relation to the overall budget, which probably I would be more inclined instead of hiring a second attorney, which we have not yet really determined that we have a need for just yet, having someone that audits all our -- Yeah, I know. Commissioner Carollo: A fourth attorney. Vice Chair Suarez: I know. Hiring someone that audits our contracts and our grants, someone that is looking to make sure that the promises that are being made to the CRA are being kept, I think this is an issue that we've had to deal with at the City level and I think it's something that we need to continue to do because I think we want to maintain the highest amount of credibility with the community that when somebody comes up here and says that they're going to create jobs, that they're actually creating jobs. It's all well and good for them to say. It's even nice for them to put it in an agreement, but you know, unless someone is continually checking after the fact to make sure that these things are being done, we have no way of knowing whether they're actually happening unless someone brings it to our attention. So I think that's a prudent thing. Mr. Bockweg: On the -- Commissioner, just to answer that point, on a lot of the grants that we're putting out now, we are doing that. Remember, we have quarterly checks and making sure that those requirements are being met; for example, like Folk Life Friday and other grants that we're doing prior to their project continuing. But I understand what we can do for projects like this. Chair Dunn: And if I may add -- and we'll -- if there are no other questions, we can put the motion to vote. If may add Mt. Zion is in the community, so unlike other developers, they don't really have nowhere to have. Mr. Bockweg: It's across the street. Mr. Patterson: Amen. Chair Dunn: Amen. And folk out here will put it on you. All right, we have a motion by Commissioner Suarez, a second by Commissioner Gort. All in favor, let us hear by saying aye." The Commissioners (Collectively): Aye. CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING THE EXECUTIVE DIRECTOR TO ENTER INTO AN AGREEMENT IN AN AMOUNT NOT TO EXCEED $155,000, WITH CLARK CONSTRUCTION USA, LLC TO DEVELOP A 23-SPACE PUBLIC PARKING LOT ON CRA OWNED PROPERTY LOCATED AT 276 NW 9TH STREET, City of Miami Page 17 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 MIAMI, FLORIDA; AUTHORIZING THE EXECUTIVE DIRECTOR, AT HIS DISCRETION, TO DISBURSE FUNDS DIRECTLY TO VENDORS, UPON PRESENTATION OF INVOICES AND SATISFACTORY DOCUMENTATION; AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE ALL DOCUMENTS NECESSARY FOR SAID PURPOSE, IN A FORM ACCEPTABLE TO GENERAL COUNSEL; ALLOCATING FUNDS FROM SEOPW TAX INCREMENT FUND, "CONSTRUCTION IN PROGRESS," ACCOUNT CODE NO. 10050.920101.670000.0000.00000. File # 11-00665 07-25-2011 Cover Memo.pdf File # 11-00665 07-25-2011 Financial Form.pdf File # 11-00665 07-25-2011 Backup.pdf File # 11-00665 07-25-2011 Legislation.pdf File # 11-00665 07-25-2011 Signed Legislation.pdf Motion by Vice -Chair Suarez, seconded by Board Member Gort, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: Commissioner Gort, Commissioner Carollo, Chair Dunn II and Vice Chair Suarez Absent: Commissioner Sarnoff CRA-R-11-0037 Chair Dunn: All right, item number 5, which is really a companion item in a sense, right? Applause. Pieter Bockweg (Executive Director, Community Redevelopment Agency): Go ahead, Mark. Mark Spanioli (Director, Engineering and Construction): Good evening, Commissioners. Mark Spanioli, CRA (Community Redevelopment Agency). Item number 5 is a resolution authorizing the executive director to enter into an agreement, in an amount not to exceed $1 55, 000, with Clark Construction USA, to develop a 23-space public parking lot on CRA-owned property, located at 276 Northwest 9th Street. As we mentioned earlier, this item is in conjunction with the Mt. Zion development that -- Chair Dunn: Excuse me. Can we -- Unidentified Speaker: Yes, sir. Chair Dunn: -- keep it down? Thank you. Go ahead. Mr. Spanioli: This item is in conjunction with the Mt. Zion development that you just approved. We put out an RFP (Request for Proposal) to develop the parcel. The parcel is directly adjacent to the Mt. Zion property. And this way that we could provide the parking that would be required or available to the retail spaces for the Mt. Zion development. We properly advertised the RFP and the idea is to ultimately enter into a lease agreement with Mt. Zion Development for that public parking for the retail space. The development of the parking lot is going to be in the same standards and specifications as the other parking lots that we have along 3rd Avenue that are CRA-owned and operated. Vice Chair Suarez: Move it for discussion. Commissioner Gort: Second. Chair Dunn: There's a motion -- Go ahead. City of Miami Page 18 Printed on 11/22,2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 6. 11-00666 Vice Chair Suarez: Thank you, Mr. Chairman. Commissioner Dunn: Okay, there's a motion by Commissioner Suarez for discussion, second by Commissioner Gort. Vice Chair Suarez: Thank you. Very quickly, does this have also a jobs component to it or is this something that we are building and then this is for companion, you know, to the project that we're building next door? Mr. Spanioli: This is simply a construction project to develop the parcel and it'll just be a parking lot once it's completed. I don't see any job component other than the temporary construction jobs. It's a two and a half month time frame, but there's no permanent construction -- or permanent jobs, excuse me. Vice Chair Suarez: My question is, in the RFP that we issue, is there some sort of a requirement that the contractor that bids on the work have a certain amount of employees that come from the CRA area? Mr. Bockweg: I -- if I may, Mark. And Commissioner, that's a great question because one of the things that we started doing this year, instead of just focusing on the lowest bidder, which is all good and well, we also want to make sure we look at the component of local hires, of people within the community being hired. This project in itself, as far as the construction side of it, there is not a local hire. The -- what is good about this project, though, which is the maintenance of it which will be part of the Overtown enhancement team, which will hire between 11 to 13 people from the community as far as the maintenance is concerned. So -- but as far as a hire from the -- for the construction, no, there is not. We got two RFPs -- responses. One of them just did not qualify and this one came in as the -- but it is something that I can require. It is something that I can require, Commissioner, from the -- from when I give them the contract. Commissioner Gort: Right now I think we have the -- a couple of schools going on, teaching people trade in the welcome and hospitality and with all the constructions. I think some of the laborers can be picked up and make sure that at least they hire a couple of people from Overtown. Mr. Bockweg: We'll make sure we include that as part of their contract. Commissioner Gort: Call the question. Chair Dunn: All right. We have a motion by Commissioner Suarez, second by Commissioner Gort. All in favor, let us hear by saying aye." The Commissioners (Collectively): Aye. CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE A DEVELOPMENT AGREEMENT WITH CARLISLE DEVELOPMENT GROUP, LLC AND PALMETTO HOMES OF MIAMI, INC. FOR THE DEVELOPMENT OF A MIXED -USE BUILDING LOCATED 1201 N.W. 3RDAVENUE, AND 229-247 N.W. 12TH STREET, MIAMI, FLORIDA City of Miami Page 19 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 File # 11-00666 07-25-2011 Cover Memo.pdf File # 11-00666 07-25-2011 Backup.pdf File # 11-00666 07-25-2011 Legislation.pdf File # 11-00666 07-25-2011 Signed Legislation.pdf Motion by Vice -Chair Suarez, seconded by Board Member Carollo, that this matter be ADOPTED WITH MODIFICATIONS PASSED by the following vote. Votes: Ayes: Commissioner Gort, Commissioner Carollo, Chair Dunn II and Vice Chair Suarez Absent: Commissioner Sarnoff CRA-R-11 -0038 Chair Dunn: Item number 6. Clarence Woods (Assistant Director, Community Redevelopment Agency): Good evening, Commissioners. Item number 6 is a resolution of the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency authorizing the executive director to negotiate a development agreement with Carlisle Development Group, LLC (Limited Liability Company) and Palmetto Homes of Miami, Inc., for the development of a mixed -use building located at 1201 Northwest 3rdAvenue and 229 Northwest 12th Street, 247 Northwest 12th Street in Miami, Florida. Back in September of 2010, we received an unsolicited proposal from the Carlisle Development Group as well as Palmetto Homes, LLC. We took some time and vetted that proposal, looked at it for sufficiency, did our due diligence and decided that we would then issue an RFP for the development of that land. On April 8 of this year, we did submit an RFP -- well, issued an RFP for the development of the properties. We received four proposals at the City Clerk's office -- Chair Dunn: Can someone please cut their pager off or phone off? Thank you. Mr. Woods: We received four proposals at the Clerk of the Board, the City Clerk, and at that time we established a review committee to review the proposals. We held oral presentations. After our oral presentations, we did rankings for the four proposals. The Carlisle Development Group and Palmetto Homes proposal was determined to be the top -ranked proposal and we are here now seeking your permission to go ahead and enter into a development agreement with that particular group. It would then come back before you with all of the specifics of the development. Chair Dunn: Before we hear from my colleagues, now you talked about a review committee that did -- who consisted of that review committee? Was it anyone from my staff or anything? Mr. Woods: Yes. The review committee consisted of myself, Mark Spanioli, who's our engineer, director of engineering, as well as Chelsa Arscott, who's our program administrator. Chair Dunn: And there were four other developers that were --? Mr. Woods: Yes. Chair Dunn: So this was not a no -bid? Mr. Woods: No. This was a legitimately issued RFP where we received four proposals at the Clerk's office. Chair Dunn: All right. Mr. Bockweg: I just want to make sure that I include something on the record, Mr. Chair. Forgive me. I want to make sure that I amend the reso to include the following whereas clause. City of Miami Page20 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 7. 11-00667 And it is to read as such: Whereas this resolution is not intended to be an award of development rights or to otherwise create any rights whatsoever in the recommended proposer. Vice Chair Suarez: Move it. Chair Dunn: Motion by Commissioner Suarez. Vice Chair Suarez: Is that it? Chair Dunn: Is there --? Commissioner Carollo: Second for discussion. Chair Dunn: Okay, second for discussion. Commissioner Carollo. Commissioner Carollo: I think he answered my question, but I just want to verify. This will be coming back to this CRA (Community Redevelopment Agency) Board for approval, correct? Mr. Woods: Absolutely, with all the terms and conditions of the negotiations. Vice Chair Suarez: And with the modified language we're not -- Commissioner Carollo: Exactly. Mr. Woods: Absolutely. Chair Dunn: Any other comments, questions? There's a motion by Commissioner Suarez, second by Commissioner Gort -- Commissioner Carollo. All in favor, let us hear by saying bbye. " The Commissioners (Collectively): Aye. Chair Dunn: So moved. Next item, gentlemen. Next item. Commissioner Gort: Who's Palmetto? I don't know -- Unidentified Speaker: I'm right here, Mr. Gort. Can you see me? Commissioner Gort: Are you sure? Chair Dunn: Don't snatch, what is it, victory out of the jaws of defeat, yeah -- defeat from the jaws of victory. Grady Muhammad: Mr. Chair, we definitely -- the community is definitely in favor of this proposal. We're going to likewise hold an ironclad agreement. Mr. Lundy and Palmetto Homes, as well as the Carlisle Group, we know they're doing a great job, but we definitely will have an ironclad agreement. We're definitely in favor of the proposal. Chair Dunn: Go ahead (UNINTELLIGIBLE) and then we're going to move on. Go ahead. Let -- okay. CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ACCEPTING THE SELECTION COMMITTEE'S City of Miami Page21 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 RECOMMENDATION AND AUTHORIZING THE EXECUTIVE DIRECTOR TO ENTER INTO NEGOTIATIONS WITH THE TOP THREE RANKED FIRMS IN RANKING ORDER FOR THE ENGINEERING AND ARCHITECTURAL DESIGN SERVICES OF THE OVERTOWN GREENWAY CONNECTIONS PROJECT; File # 11-00667 07-25-2011 Cover Memo.pdf File # 11-00667 07-25-2011 Backup.pdf File # 11-00667 07-25-2011 Legislation.pdf File # 11-00667 07-25-2011- Signed Legislation.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, Chair Dunn II, Vice Chair Suarez and Commissioner Sarnoff Absent: Commissioner Carollo CRA-R-11-0039 Chair Dunn: (INAUDIBLE). We're going to open up as a -- We recessed on Monday the Southeast Overtown/Park West CRA (Community Redevelopment Agency), and we're going to pick up on item number 7. We stopped on item 6 on -- when we recessed on Monday. Pieter Bockweg (Executive Director, Community Redevelopment Agency): Thank you, Mr. Chair. I'll allow Mark to introduce the item, and we'll try to be as brief as possible. I know everybody's tired and it's late. Mark Spanioli (Director of Engineering and Construction): Good evening, Commissioners. Mark Spanioli, CRA. I just handed out a map. I just wanted to go over this really quickly so you understand what the item is about. Basically, this item is pertaining to the Overtown Greenway. Last month you all approved funds for a portion of the greenway shown in yellow on the map that CIP (Capital Improvements Program) is undertaking for us. What's shown in blue is the 9th Street Pedestrian Mall, which was built many years ago, which we recently rehabilitated. And what we have proposed is to create the connections for the project, which is shown in green, which is -- would be phase one of the connection between the 9th Street Pedestrian Mall and the 11 th Street -- or 11th Terrace section that CIP is building today, and then going from the east at the southern end of the pedestrian mall to meet up with the future bay walk along Museum Park. So what we've done is we went ahead and put together an RFP (Request for Proposals) to have consultants come in. And we've interviewed the consultants and we've ranked three top -ranked consultants to help us with this process, doing the design of the Overtown Greenway Connections project, as we're calling it. And before you today is a resolution accepting the selection committee's recommendation, authorizing the executive director to enter into negotiations with the top three ranked firms in ranking order for the engineering and architectural design services of the Overtown Greenway Connections project. And if you have any questions, I'd be happy to entertain them. Vice Chair Suarez: I'll move the item. I do have one question. Chair Dunn: Moved for discussion. Is there a second? Commissioner Gort: Second for discussion. Chair Dunn: Second by -- moved by Commissioner -- Vice Chair Suarez: I actually have two questions. The first -- Chair Dunn: -- Suarez and second by -- City of Miami Page22 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 Vice Chair Suarez: Thank you. Chair Dunn: -- Commissioner Gort. Vice Chair Suarez: The first question was you said in the process that you interviewed the applicants? Mr. Spanioli: Yes. We had -- we put out an RFP. We collected the proposers from the -- the proposals from the consultants. We went through a short -listing process where we ranked them based on the criteria in the RFP. Once we short-listed them, we called in the top five ranked firms at that point and we interviewed them on oral presentations, and then the selection committee chose the top three ranked firms as required by state statutes for CCNA (Competitive Consultation Negotiation Act). Vice Chair Suarez: You knew I was looking for you to say that, didn't you? Mr. Spanioli: Yeah, absolutely. Vice Chair Suarez: Thank you. (UNINTELLIGIBLE) a good constituent. Mr. Spanioli: Yeah, thanks. Vice Chair Suarez: Yeah, so you did oral presentations on this. Mr. Spanioli: Yes, we did. Vice Chair Suarez: Thank you. This goes more to the -- you know, we do all kinds of different things with the CRAB and they're meant to do different things as well. This goes more to the slum and blight component of the mission of the CRA versus, you know, trying to create jobs or something like that because you're trying to beautt the area and make it more attractive for people generally to be in and to frequent. Mr. Spanioli: That's correct. This is a direct quality of life issue that we are attacking here. I mean, generally, what we're trying to do is if -- you have the 9th Street Pedestrian Mall. It's been built for many years. You have CIP in conjunction with us building the next section, which is in yellow, and then you're going to have these gaps, and if it's not connected, you basically have what we have like the 9th Street Pedestrian Mall which leads to nowhere. And our idea is to create connectivity. We're going to be connecting not only the greenway but we're going to be connecting transit stations for Metrorail, which is going to have a bike path component, so it's just giving that connectivity and it's going to allow the Overtown community to be connected to the water ultimately as we travel to the east and connect with the Bicentennial/Museum Park bay walk. Vice Chair Suarez: Thank you. Mr. Spanioli: You're welcome. Chair Dunn: Anyone else for discussion? There's a motion by Commissioner -- Mr. Bockweg: Excuse me, Mr. Chair. I apologize. I need to put in the same whereas clause that we put in for number 6, and I apologize. Vice Chair Suarez: As amended -- as about to be amended 'cause I know what whereas clause you're going to put in there. City of Miami Page23 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 Mr. Bockweg: And the clause -- the whereas clause to be included in the contract is this resolution is not intended to be an award of development rights to any two -- development rights or to otherwise create a right whatsoever in the recommended proposer. Vice Chair Suarez: I amend my motion to -- Chair Dunn: You amend -- Vice Chair Suarez: -- incorporate that language. Chair Dunn: Does the seconder amend his motion? Commissioner Gort: Yes. Chair Dunn: Okay. It's been motion and second with the amended -- with the amendment by Commissioner Suarez and Commissioner Gort, respectively. All in favor, let us hear by saying aye." The Commissioners (Collectively): Aye. Chair Dunn: Ayes have it. Mr. Spanioli: Thank you. 8. CRA RESOLUTION 11-00668 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("CRA") AUTHORIZING THE EXECUTIVE DIRECTOR TO EXERCISE THE CRA'S OPTION TO RENEW ITS LEASE WITH CITADEL ARENA CORPORATION FOR THE CRA'S OFFICE SPACE AT 49 N.W. 5TH STREET, MIAMI, FLORIDA, FORA PERIOD OF ONE YEAR, COMMENCING SEPTEMBER 1, 2011, AT THE RATE OF $6,250.00 PER MONTH PLUS THE FLORIDA POWER AND LIGHT UTILITY BILL FOR THE SPACE OCCUPIED BY THE CRA, OR AN ANNUAL AMOUNT OF $75,000.00 ($7.50 PER SQUARE FOOT) PLUS ELECTRICITY, INCLUDING TAXES, ALL OTHER UTILITIES, AND 16 PARKING SPACES; FUNDS TO BE ALLOCATED FROM THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY GENERAL OPERATING FUND, "RENTALS AND LEASES, "ACCOUNT CODE NO. 10030.920101.544000.0000.00000. File # 11-00668 07-25-2011 Cover Memo.pdf File # 11-00668 07-25-2011 Financial Form.pdf File # 11-00668 07-25-2011 Legislation.pdf File # 11-00668 07-25-2011 Signed Legislation.pdf Motion by Board Member Sarnoff, seconded by Vice -Chair Suarez, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: Commissioner Gort, Chair Dunn II, Vice Chair Suarez and Commissioner Sarnoff Absent: Commissioner Carollo CRA-R-11-0040 Pieter Bockweg (Executive Director, Community Redevelopment Agency): Mr. Chair, number 8. Number 8 is the renewal of our lease for the CRA (Community Redevelopment Agency) offices. City of Miami Page 24 Printed on 11/22,2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 Just to give you a quick background. The CRA offices had a contract for the renewal of the leases. We were anticipated to pay next year $18.32 per square foot. I obviously thought that was way too high and I'm assuming the Board did too, so I sat down with our landlord and renegotiated the contract as is, to $15 per square foot. That's a $3.32 savings, which comes out to a number of $33,200 gross. Along with those net negotiation, I did commit to paying the FPL (Florida Power & Light). Currently, our FPL is reimbursed by our landlord. We ran the numbers and on an average, it's about $628 in FPL a month -- FPL bill per month, so our net savings with the reduction of price per square foot is $25, 652. Obviously, this rent gets paid half from the Omni and half of the Overtown CRA. That's why in your material you'll see $7.50 per square foot. Commissioner Sarnoff.- Well, in that case, I would like all the lights left on in the Southeast Overtown/Park West and none of the lights lefi on in the Omni. Mr. Bockweg: But again, I thought that $18.32 was way too high. We got to the number of $15 -- just to give a quick background -- is we did a comparison of you know, what most office spaces are being rented for from a renewal lease side. Not a brand-new lease; just a renewal. And $15 was the lowest that we came to and so that's why we negotiated to $15 -- Commissioner Sarnoff.- Chair? Mr. Bockweg: -- a square foot. Chair Dunn: Yes. Commissioner Sarnoff.- Pieter, when are the new offices going to be done? Mr. Bockweg: We have started the interior demo of the firehouse number 2. The permits are signed. The work orders are signed. We'll be starting that on Monday. There was a quite -- a little bit of a confusion, if you will -- not a confusion, but an issue with, of course, Rock of Ages is using the firehouse number 2 currently for their movie, so we had to iron out some insurance issues and whatnot with the contractor and Rock of Ages, but that's all settled. Anticipated timeline for completion of that entire building will be about 16 to 18 months, and that's long term. That is -- we're trying to do as much as we can as fast as possible. I'm committed to doing it underneath that time. Vice Chair Suarez: Mr. Chairman. Chair Dunn: Yes -- Commissioner Gort: Yes. Chair Dunn: -- Commissioner Suarez. Vice Chair Suarez: Quick question. This is just a one-year extension then? Mr. Bockweg: Yes, sir. Vice Chair Suarez: Okay, 'cause what I want to avoid is a situation where the office space is ready and we still have months lefi on the lease and we're -- you know, that's -- Mr. Bockweg: I couldn't agree with you more and that's why we just put it for one year. I was just told by Mark, our engineer, that we will be able to do it less than 14 months or 16 months, less than that. City of Miami Page 25 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 Commissioner Sarnoff. Your goal should be to be in there in that year. Mr. Bockweg: I agree. That is our goal. And we would have had that -- we had some problem Commissioner Sarnoff. Keep the Omni side clean. Move into the Southeast Overtown/Park West side. Chair Dunn: I thought we were in this together. Commissioner Gort. Oh, I thought you had -- no? Okay. Any other questions? Is there --? Commissioner Sarnoff: So move. Chair Dunn: Motion by Commissioner Sarnoff. Vice Chair Suarez: Second. Chair Dunn: Is there a second? Vice Chair Suarez: Second. Chair Dunn: Second by Commissioner Suarez. And I just wanted to -- well, I wanted to add that this is pretty much the best of a bad situation. This is the best we can do at this current time, but it is -- I'm glad you put that stipulation in there. All in favor of the motion, let us hear by saying aye." The Commissioners (Collectively): Aye. Commissioner Sarnoff. By the way, I'm in the same boat with the DDA (Downtown Development Authority). They had a lease extension for I think like 12 years and it went -- five, six years before I even got on there, and the amount of rent we're paying is incredible and there's nothing you can do about it. Vice Chair Suarez: I want to know who their leasing agent is, 12 years. Commissioner Sarnoff. You actually know who their leasing agent is. Vice Chair Suarez: Really? I wonder if they got their commission upfront for all those 12 years. Commissioner Sarnoff. It's a good question. It's a good point. 9. CRA RESOLUTION 11-00669 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING A GRANT IN AN AMOUNT TO EXCEED $80,000.00 TO THE CITY OF MIAMI FOR THE BEAUTIFICATION AND IMPROVEMENT TO THE AREA BETWEEN THE NORTHBOUND AND SOUTHBOUND LANE OF 1-95 FROM NW 11TH TERRACE TO 1-395, COMMONLY REFERRED TO AS THE V-AREA, AND THE SOUTHBOUND EXIT FROM 1-95 AT NW 8TH STREET; AUTHORIZING THE EXECUTIVE DIRECTOR TO DISBURSE THE GRANT, AT THIS DISCRETION, ON A REIMBURSEMENT BASIS OR DIRECTLY TO VENDORS, UPON PRESENTATION OF INVOICES AND City of Miami Page 26 Printed on 11/22,2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 SATISFACTORY DOCUMENTATION; FURTHER AUTHORIZING THE EXECUTION OF ALL DOCUMENTS NECESSARY FOR SAID PURPOSE, IN A FORM ACCEPTABLE TO GENERAL COUNSEL; ALLOCATING FUNDS FROM SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT OTHER GRANTS AND AIDS, ACCOUNT CODE NO. 10050.920101.883000.0000.00000. File # 11-00669 07-25-2011 Cover Memo.pdf File # 11-00669 07-25-2011 Financial Form.pdf File # 11-00669 07-25-2011 Backup.pdf File # 11-00669 07-25-2011 Legislation.pdf File # 11-00669 - 07-25-2011 - Signed Legislation.pdf Motion by Board Member Gort, seconded by Board Member Sarnoff, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: Commissioner Gort, Commissioner Carollo, Chair Dunn II, Vice Chair Suarez and Commissioner Sarnoff CRA-R-11 -0041 Chair Dunn: Next item. Pieter Bockweg (Executive Director, Community Redevelopment Agency): Item number 9, Mr. Chair, is the grant to the City of Miami for $80, 000 in relation to the streetscape work that was done, and there is a grammatical error on the item. Instead of 1-95, it should read I-95. This is work that we are providing a grant to the City for the $80, 000. The work has been completed to full completion, and as well, we would have done the work anyway, so this work -- this is a grant for $80,000. Commissioner Gort: Move it. Vice Chair Suarez: Move it. Todd Hannon (Assistant Clerk of the Board): Excuse me, Chair. Just -- as well on the record, I just wanted to point out there is a scrivener's error in the title basically where it says authorizing a grant in an amount to exceed. It simply just needs to say authorizing a grant in an amount not to exceed. Just want to make sure, you know, put it on the record. It's just a scrivener's error. Commissioner Gort: Why did you change it? Mr. Hannon: Not amended. Mr. Bockweg: Thank you, Todd. Chair Dunn: It was motioned by Commissioner Gort, seconded by Commissioner Sarnoff All in favor, let us hear by saying i ye. " The Commissioners (Collectively): Aye. Chair Dunn: Ayes have it. So moved. 10. CRA RESOLUTION 11-00670 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT City of Miami Page 27 Printed on 11/22,2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 (10.) 11-00670 AGENCY ("CRA"), WITH ATTACHMENT(S), APPROVING AND ADOPTING THE CRA'S PROPOSED GENERAL OPERATING BUDGET AND TAX INCREMENT FUND BUDGET FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2011 AND ENDING SEPTEMBER 30, 2012; DIRECTING THE EXECUTIVE DIRECTOR TO TRANSMIT A COPY OF EACH BUDGET TO THE CITY OF MIAMI AND MIAMI-DADE COUNTY. File # 11-00670 07-25-2011 Cover Memo.pdf File # 11-00670 07-25-2011 Backup.pdf File # 11-00670 07-25-2011 Legislation.pdf File # 11-00670 - 07-25-2011 - Signed Legislation.pdf File# 11-00670-07-25-2011-OMNI SEOPW and MIDTOWN General Operating Budgets.pdf File# 11-00670-07-25-2011-Revenue Fund Budget.pdf Motion by Board Member Carollo, seconded by Vice -Chair Suarez, that this matter be DEFERRED PASSED by the following vote. Votes: Ayes: Commissioner Gort, Commissioner Carollo, Chair Dunn II and Vice Chair Suarez Absent: Commissioner Sarnoff CRA-R-11-0042 Note for the record: Item #10 was deferred to July 28, 2011, at which time the recessed SEOPW CRA Meeting will reconvene for the remaining items not acted upon during the July 25, 2011, SEOPW CRA Meeting. CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("CRA"), WITH ATTACHMENT(S), APPROVING AND ADOPTING THE CRA'S PROPOSED GENERAL OPERATING BUDGET AND TAX INCREMENT FUND BUDGET FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2011 AND ENDING SEPTEMBER 30, 2012; DIRECTING THE EXECUTIVE DIRECTOR TO TRANSMIT A COPY OF EACH BUDGET TO THE CITY OF MIAMI AND MIAMI-DADE COUNTY. File # 11-00670 07-25-2011 Cover Memo.pdf File # 11-00670 07-25-2011 Backup.pdf File # 11-00670 07-25-2011 Legislation.pdf File # 11-00670 - 07-25-2011 - Signed Legislation.pdf File# 11-00670-07-25-2011-OMNI SEOPW and MIDTOWN General Operating Budgets.pdf File# 11-00670-07-25-2011-Revenue Fund Budget.pdf Motion by Chairman Dunn II, seconded by Board Member Sarnoff, that this matter be ADOPTED WITH MODIFICATIONS PASSED by the following vote. Votes: Ayes: Commissioner Gort, Chair Dunn II, Vice Chair Suarez and Commissioner Sarnoff Noes: Commissioner Carollo CRA-R-11-0042 Direction by Vice Chair Suarez to the Executive Director to provide the board with a quarterly report detailing the CRA's (Community Redevelopment Agency's) compliance with its grant agreements and contracts. Chair Dunn: All right, at this time we'll have the CRA (Community Redevelopment Agency) for City of Miami Page 28 Printed on 11/22,2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 the year 211 [sicJ/212 [sic] budget approval. I'm going to ask Mr. Bockweg if he would lead us off in that. It's item number 10. Pieter Bockweg (Executive Director, Community Redevelopment Agency): Thank you, Mr. Chairman. Before you -- and I have briefed most of you -- is the budget for 2010. There are a few line item changes in there that I am proposing, which I'd like to go over with you now. All of you were hand -delivered a line item -- and I'd like to take a look at the operating budget for Southeast Overtown/Park West. The first thing I propose for 2012, if you'll notice on page 1, is the budget reserve. That is almost a 50 percent less from last year. Last year it was $400,000. This year it is 285. The line item changes that we are proposing in this year's budget are as follows. There are two -- I am proposing two new positions, an extra attorney for the CRA, as well as a project manager. As you can see from the presentation I just did, we are expecting a lot of projects to go on line. I can tell you after a year of experience with the CRA that we are understaffed. Everybody is wearing a lot of different hats. And because we are moving forward and trying to move forward as efficiently as possible, I am anticipating that we will need another project manager coming up in the future when most of these projects start coming online. This is not to say that I will be hiring a person. It is just allowing the Board for that position to be open. Now all the changes that you'll see within the budget are correlated to those three positions. And I think it's important to note that one of the City -- CRA attorneys that you see highlighted in your agenda -- or your line item budget is the one that I recently hired with your approval, is Carmen Cabarga, for the CRA after our attorney before that had left us. The other line items that I think is important to point out is the -- on page 5 -- there are no changes up to page 5 -- well, there might be some smaller ones, but the more significant ones are the ones that are highlighted, all have -- relating to do with the Black Police Precinct, which again, is a property that was conveyed to the CRA this year. There are, of course, expenses associated with that, whether it be maintenance, operation, you know, and everything that goes along with that. There is a line item there for the CRA FPL (Florida Power & Light) invoices. That is part of our lease negotiations that I did with the landlord. I can touch upon that now to really kind of get into the thick of that, but that is something that we'll be discussing with the lease item coming up. The other item here before you is the purchase of another vehicle. Because none of the executive staff or anybody for that matter on the staff receives a car allowance, I can tell you that we drive significant miles to and from meetings and City Hall and whatnot and this is the purchase of one vehicle for the executive staff to use. And those are the most significant changes before you in the line item budget. The overall budget increase, which have to do, of course, with the two position -- the positions as well as the Black Police Precinct, and of course, the insurance and maintenance of the various buildings that we know control, there's an overall increase of 10 percent to our budget from last year. If any questions, myself and Miguel are here to address them. Chair Dunn: Commissioner Carollo. Commissioner Carollo: Thank you, Mr. Chairman. Mr. Executive Director, with regards to the budget reserve, even though, yes, it appears like less than last year, why do we need a budget reserve when in a lot of the items you have a contingency in there? So if you have a contingency -- let's say for salaries, you have a contingency of 25 -- $26, 000, more or less, and for healthcare you have a contingency of 16,000, more or less, and for -- it seems like every item you have a contingency. Why then on top of all these contingencies do you have a budget reserve? Mr. Bockweg: Well, Commissioner, as far as the budget reserve, I think it's -- and I am not a CPA (Certified Public Accountant), so please -- and that's why I have Miguel here to answer it more directly. Commissioner Carollo: But you do have your finance person, right? Mr. Bockweg: That's right. He's here to answer the more direct questions. But I think it's City of Miami Page29 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 prudent when creating a budget to have some sort of reserve in there for unforeseen circumstances. There are things that are coming -- that come up from a day-to-day that, you know, might come up that might need to be spent. And remember, Commissioner and the Board, it is very important -- and I'll make sure that I'll be repeating this through the course of the night -- there is no expenditure, whether it's in the budget reserve or the contingency or any project which is over $4,500 that cannot be spent. It has to come before the Board. Every single expenditure above $4, 500 has to come before the Board. I just find it when preparing a budget -- and we listened to you, Commissioner, from last year that, you know, $400, 000 was maybe a little excessive, so we have decreased it to 285, but there are unforeseen circumstances that -- you know, this is the operations budget. If we don't have at least a little bit of a cushion in there that if something comes up -- and I can't say what because, you know, I'm not psychic -- but if something does come up, we're going to have to deallocate some of that money from projects that are approved in the budget and then bring it to the operating, so that's why we have some reserve. Commissioner Carollo: So you mean -- you're telling me you're going to have to deallocate monies from some of these projects that realistically have a carryover of I think 25 million in this to cover some expenses? Mr. Bockweg: No, no. What I'm saying -- Commissioner Carollo: Because in all fairness -- and I am hearing what you're saying, but you're setting a contingency. You're -- in other words, you're double dipping. You're setting in each item for salaries, for healthcare, and we could go on down the line, you have a contingency, but then you're double dipping. Then towards the end, you have available funds to be allocated for any administrative expenditures on a needed basis, 285, 000, so you're setting another contingency or another reserve and -- Mr. Bockweg: Let's -- Commissioner Carollo: -- and I think realistically we're starting to lose control of some of these budgetary amounts. Mr. Bockweg: Well, I guess the easiest way that I would defend the 285, Commissioner, is let's say there is a bunch of projects going online very quickly and we did not budget for additional positions or additional staff that might need to be hired or any such thing like that. This would allow us to do that and at least have it in reserve. And again, this is a -- close to a 50 percent decrease from last year and this will allow us to have the money, with your approval, for that allocation to be used for other staff or other unforeseen circumstances. Commissioner Carollo: If that occur, in a midyear adjustment, couldn't you come back to this board and back to the City Commission and just get it approved? Mr. Bockweg: I would have to come back to this board but -- Commissioner Carollo: So why not do that? Mr. Bockweg: -- the difference, Commissioner, is instead of de -allocating money from a project, we are now simply saying it comes from the operating budget reserve. And I don't want to run the risk of if that happens, that we would have to de -allocate a project, approve the wire transfer to the operating budget, and then have that money available for that extra staff member, as one example. Commissioner Carollo: The truth of the matter is, I disagree with what you're saying because we could always do an adjustment and this money -- put it somewhere else or on another reserve City of Miami Page 30 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 and then just bring that -- you know, come before this board, get it approved, come before the City. As a matter of fact, we're going to have a midyear adjustment. We're going to have an end -of -the -year adjustment. So at that time, you could come before us. Miguel Valentin (Financial Officer, Community Redevelopment Agency): And Pieter -- Mr. Bockweg: I think it's also important to note -- and go ahead -- I'll let you talk in a second, Miguel -- is we are being extremely fiscally conservative with our budget. We are running a total of a 3 percent operating budget, which is -- under state statute we are allowed 20 percent, legally under state statute. We are only running a 3 percent, and that 3 percent includes this budget here, which I think is extremely fiscally conservative. Mr. Valentin: Yeah. Commissioner Carollo: I haven't done the calculation, but I could tell you that out of all of these salaries and all of these employees, over 40 percent of your employees make almost $100, 000. Mr. Bockweg: Well, Commissioner, I think, you know, as far as the salary -- Vice Chair Carollo: Almost 40 -- and it's probably going to be closer to like 42 percent -- Mr. Bockweg: There are two -- Vice Chair Carollo: -- make close to $100, 000. Chair Dunn: What -- let me just -- Mr. Valentin: There's only two people. Chair Dunn: -- let me interject something because I think that -- I want to put out -- I think -- and we're going to continue this dialogue; it's important. But I think we want to compare and contrast to get a true picture. And I can't speak of the reserves. We need to deal with that, but let's just look at what we're operating at right now. And I just -- I'm talking about the budget now overall. We're operating at about 3 point -- what we're trying to do now would be 3.5 percent. If you compare that -- and I think that's the only way we can do it -- to a quasi organization like Bayfront Trust -- let's just compare -- their budget total all is about $3.8 million and 2.3 million is used for operation. About 34 percent of that is utilized for personnel, which would be equivalent to about $800, 000. If you compare it to the DDA (Downtown Development Authority) -- and this is not to -- this just want to do a comparative analysis so that we can see if we're being consistent with all of the other organizations that resemble the CRA. If you compare it to the DDA, it's about 11 percent of operations. If you compare it to the MPA (Miami Parking Authority), it's about -- I'm sorry, they operate at about 11 percent. And the MPA operates at about 40 percent. So we're still -- and we can tweak whatever needs to be tweaked and what can be tweaked. But in terms -- and certainly, I would not support or stand for anything that's not brought before us that -- if there are any changes. But when you look at the fact that the CRA has operated under budget, we are allocated or allowed about 20 percent and we're operating at 3.5 percent, I don't want us to lose that because that's important in comparison to similar organizations. And I think that is something that we need to be aware of. And in some of the areas, for instance, when you start talking about trying to bring the goods and the services, development into the -- let's just take -- since we're dealing with Southeast Overtown/Park West -- we don't want -- and I'll say it like this, as lightly as I can and with all due respect -- to treat the Southeast Overtown/Park West as a second-class organization or agency. We don't want to do that. We want to make -- if it's consistent, we want to be consistent with what's happening with other organizations in the City. I -- as I stated to you from day one, I want to -- I'll do whatever and I'll agree whatever is fair and what's consistent. But if the others are operating at City of Miami Page 31 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 a higher rate and we're only at 3.5 percent and everything is legit and legal, then I would have to fight for that 3.5 percent. But I know we can tweak it and I'm not talking about the details, but I -- the overall picture still puts us under 20 percent. So I just wanted to kind of put that out there for our consideration and then we can deal with the other things. But when you look at 3.5 percent and when you look at the fact -- and we know we understand that this is the only agency that gave back $13 million overall, Southeast Overtown/Park West, all of the CR -- to the City of Miami last year. So we have to -- want to put all those things in line. We are a team player. We are being consistent. We're trying to stay within the means. We don't want to create any morale issues for the rest of the departments and rest of the City, but when you look at some of the things that are occurring, even as relates to some of the perks and fringe benefits that are afforded to other directors, there are some things that are left to be desired. I just wanted to kind of put that out there. I'm not trying to grandstand or anything. I just want to put the facts out and then let's see how we can proceed from there. Commissioner Carollo: Mr. -- Chair Dunn: Go ahead, Chairman -- Commissioner. Commissioner Carollo: Thank you, Mr. Chairman. A few things with that. Like I said, I haven't calculated the overall amount, whether it's 3 percent, 3.5 percent. I'm not really sure what it is. I would have to calculate that. I can tell you this, a big difference between Bayfront Park Management Trust and this is that Bayfront Park uses absolutely no ad valorem revenues . We actually earn our money by doing events and so forth. So we actually use no tax dollars whatsoever. Now I can tell you that 40 something percent of all the employees of Bayfront Park Management Trust do not make close to $100,000. Mr. Valentin: Okay. Commissioner Carollo: I could tell you that. And I'm sure with the DDA it's the same and so forth. And think about it, out of the total amount of employees jobs filled, 40 something percent make almost $100, 000 or more. Think about it. Mr. Valentin: Yeah, but -- Commissioner Carollo: That's a lot. Mr. Valentin: -- it's -- Mr. Bockweg: I'd like to address that, Commissioner, if I may. And I want to make sure that we put everything on the table as it relates to that because I want to make sure that we represent things in perspective, so to speak. The CRA took the same cuts last year in salary that the City of Miami did. There are other agencies that did not take any cuts in salary like the City of Miami employees. The City -- the CRA is not under the City budget. We are not in financial trouble. We are actually very prudent with our money. We, like I said, only operate at a 3 percent of our budget, which, from where I'm sitting and from a day-to-day operation standpoint, is extremely conservative. And considering that the CRA, in my opinion, is probably the best economic development tool that we have in the City, I think it's important that we allow that agency to do what it's doing and as I showed you in the presentation how we're moving forward. Now we took those cuts at the will of the board, of course, and that's fine. But the cuts that we took had zero impact on the City overall budget. It had zero impact on anything else as far as the other agencies concerned. And I made it a point when I met with my staff last year as it relates to that and I said you know, guys, that's okay. Let's keep moving forward Let's do the job even harder and it's not an issue. But from the outside looking in, Commissioner, we are an (UNINTELLIGIBLE) dependent agency and you are the same -- the board members of the agency is the same as the City Commissioners, and I understand that. And -- but we are City of Miami Page 32 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 independent from the City of Miami. And legally, a 3 percent operating budget is very reasonable. Now as it relates to the salaries, there are two people on staff at the CRA that make $100,000 a year. Everybody else makes 95 and below -- well, everybody else, the other 40 percent you're referring to, makes 95 and below. It's important to know that my staff is made up of 11 people. These are all cuts that we took. There are assistant directors, project managers in the City of Miami that get paid more than us, way more than us, with a lot more benefits. We're not complaining. We're just doing our job. But I want to make sure that we are looked at as an independent agency from the City because, you know, that's how we operate and we shouldn't be compared to City employees or City salaries or anything like that in that respect. Commissioner Carollo: Mr. Chairman, could I just address two small points? Chair Dunn: Absolutely. Commissioner Carollo: Real quick. With regards to the $13 million, $10 million, whatever it was, was that a repayment of a loan to the City of Miami? Mr. Valentin: No. Mr. Bockweg: No. The $13 million -- it gets broken up as follows. Five point two million of that was a reimbursement to the City for expenses that they -- operating expenses that they did for the Overtown CRA from the year 2000 to 2005. Then there's another $40, 000 which we reimbursed the -- Mr. Valentin: No, 4 million. Mr. Bockweg: -- Bayfront Trust this year. And there's also in the item, as far as you'll see today, another $80, 000 which we are reimbursing for work done within the CRA. The other 4.3 to make up that total -- well, there's more. The 4.3 from the Omni side has to do with the reimbursement for the cost associated at the City with the plans for Museum Park, which when the boundary was expanded is now part of the CRA. There is also another $3 million of a bond financing that the City had done in the past and wasn't put in the overall refinancing of when the City put the refinancing. And to tell you the truth, Commissioner, the City -- CRA got stuck with that bill for $3 million and that was associated with the CRA offices , which was money allocated for CRA offices. It wasn't part of the overall financing of that bond that the City did and we got stuck with that bill. So it's a little more than $13 million, but that's how it gets broken up. Commissioner Carollo: One last thing. I just want to put one more thing for the record. You're saying that the operating budget of the CRA does not affect the City one bit. However, the monies that we're receiving, these carryovers is actually ad valorem taxes that are not going to the City, that are not going to pay police officers, that are not going to pay firefighters and paramedics, that are not going to pay solid waste and are coming to the CRA. So it does affect the City. And realistically, we got to account the best way possible with these funding with this money with these revenues because the truth of the matter is in a month and a half or so, these same CRA board members are going to have to come up with some real tough decisions and we're going to have to face very employee of the City of Miami, you know, and see exactly how we balance this budget and how we take care of this deficit that is extremely large. And the truth of the matter is, yes, at least $5 million from this CRA is not going to the City of Miami for this year alone because why? It's going to the CRA. So realistically, yes, I think we need to account for our money the best way possible. Mr. Bockweg: Let me -- Mr. Chair, if I can address that real quick. Sorry. Chair Dunn: And I just -- I think -- and I want to -- we want to -- this is -- 'cause -- after Commissioner Carollo, Commissioner Suarez, and then Commissioner Sarnoff. But I do want to City of Miami Page 33 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 get back to the original intent and let's not lose sight of that. I believe this is healthy discussion. It is to help to remove -- and it's not any of our fault that's sitting up here -- the blight and the poverty that already existed if things -- and that's a big thing, "if" -- had been done properly in previous -- in the very beginning as we had this discussion not too long ago at the County Commission level, there would be no need for a CRA. But such as it is, we are where we are because of what did not take place. And just to -- and that's, you know, the argument about trying to move projects quickly because, yes, the community does want to see things. They deserve to see things. At the end of the day, in all due respect, Commissioner Carollo, I have to face these folk out here. I got to face them. And I -- I mean, they want to know. So if it's -- if the -- I want us to be as frugal -- I respect and admire you to the utmost when it comes down to the accounting procedures. But if it's legal and it's legit and it falls within the purview of what CRAs are supposed to do, I would appreciate it if, as you have done, this board would follow me. And if we want to -- I'm not trying -- let me put this on record. I'm not going to jail for nobody. Yeah, I said it. I said it. I don't mix [sic] my words. And I said this, I don't have a bagman. I don't have a bag lady. I got a community that I'm trying to help. That's my goal. That's my desire. That's my intent. And I know previously some things may or may not have happened, but God knows I'm trying to do -- and I think this is important for this dialogue because if we were doing what we supposed to do, then ultimately -- but I have to say, I have to face these folks out here and I'm not -- you know, I do, and they're expecting whoever sits in this seat to fight for the dollars that are rightfully theirs in terms of helping to improve, to remove the blight and the poverty. So some things may not be 100 percent traditional and conventional, but I believe at the end of the day, you know, I'm going to do my best within -- now, here's the key -- trying to balance the morale and dealing with the overall scheme of the City. But it is not the CRAss fault that the City is in the condition that it's in today. I want to give it back, and then -- okay, Mr. -- Mr. Bockweg: Mr. Chair, I'd like -- Chair Dunn: Go ahead. Let him go first and then -- Commissioner Carollo: Thank you, Mr. Chairman. And I appreciate your words. And you know that I think debate, discussion is healthy. Chair Dunn: It's good. Commissioner Carollo: I've always said it. And as you're facing all these folks here, you know, all that I'm trying to do is make sure that more money goes into what it's intended to and that is to help blight, to help blum [sic]. Applause. Commissioner Carollo: And that's why I'm looking at these administrative costs and so forth and I'm saying can we cut. Yes, we can. As a matter of fact, if we start getting into the details, I'll show you that not only did we double dip on the reserves, we're double dipping on phone expenses. I here -- I see here an allowance for the executive director as a phone expense. And then if you keep going down, you see it once again. So why does -- why is there two allowances for phone expenses? So that's stuff that I'm seeing that I'm saying -- and what I'm doing is helping you face all these people here so we cut our administrative expenses and we put more money into the residents where it belongs. Chair Dunn: All right. Mr. Bockweg: Mr. Chair, if may. Chair Dunn: Go ahead, Mr. Bockweg. City of Miami Page 34 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 Mr. Bockweg: I kind of want -- I want to go back for a minute to what Commissioner Carollo had mentioned regarding the City and the overall reserve going into the City. Cutting the reserve of the CRA budget does not affect the City budget at all. The TIF (Tax Increment Fund) money that gets -- and I think this is an important note not only to clarify for everybody is that our budget gets generated from the TIF that is collected every year. But the revenue that we get is only based purely in direct correlation with the work that the CRA does. All the TIF -- all the revenue that was generated prior -- in ad valorem tax still goes to the City. We just get the incremental increase. Now -- and as I said, I think it's important that the CRA, in my opinion, is the only mechanism for a community like Overtown that is guaranteed it has money to be reinvested in the community. That is a -- Chair Dunn: Excuse me. Can you all be quiet? Can you tone it down in the back, please? Thank you. Mr. Bockweg: -- state requirement. And that is the only mechanism that I can know of where that is a requirement that the people of Overtown and the surrounding areas within the CRA boundary are assured that that money is in place to be reinvested in that area. The money that would rather be in the budget reserve -- which, again, it's $285, 000 for unforeseen expenses. It's a 3.5 percent operating. I can understand if it was at 19, 18 percent, but we're at 3 percent. We are significantly understaffed as we are now once the projects start moving forward. And I want to make sure that, you know, things are kept in perspective in the sense of where that money would go. If the CRA did not exist, Commissioner, tomorrow, the money allocated for the projects would still not go to the City of Miami. It would still be allocated for those projects for at least three years. So the CRA budget cannot help the City's overall financial turmoil in respect to decreasing our budget reserve or, you know, moving forward with the projects. But Miguel, if you want to address the cell phone. Mr. Valentin: Yes. And Commissioner Carollo, I perfectly understand your concern. But what happen is you need to take into consideration one fact. Our CRA budget, it needs to be approved by the Miami -Dade County. And what happen is we need to have this flexibility in our budget because otherwise since we commence the cycle, then all of a sudden we are going to be requesting another adjustment to the board to be approved, then we need to restart the cycle. And that's why we need to keep that flexibility in our budget. Also, I wanted to put on record that the salary that you are seeing here is being divided among the CRAs, specifically Omni and Overtown. For instance, Pieter's salary is 108, 000. That will be divided between the two CRAs. This 2 million budget, it covers the three CRAs. This is something very important that we need to take into consideration. Mr. Bockweg: In essence, what -- and I'll make sure we're -- in essence, the people that you see making $100, 000, if it was one CRA, it would be $50, 000 salary. Mr. Valentin: And also about the budget reserve, again, this is a very time-consuming process because after you approve this budget, the City Commission needs to adopt the budget, and right after I need to forward that budget to the County. If I make another change to this budget, then I need to restart the process. This example -- I'm going to be giving you the perfect example. That happened when we decided to reimburse the City the 10.4 million. We need to restart the pro -- the budget cycle again. And also, I wanted to put something on record. The budget reserve in this case is very useful. Like I'm going to be telling you Carmen's example. She was hired in fiscal year 2011. At that time, the current CRA legal counsel, he was making 58,200. Now the salary as she was hired was 87,000. At that time in my budget I didn't have enough money to cover her salary. What happened was Pieter made the request to the board to move some money from the budget reserve in order to be able to hire her. And in this way, I don't need to go through the predicament of restarting the budget cycle again because the problem is -- it's not here dealing with the CRA Board as well as with the City Commission. The problem is dealing with the County, that they take too long in approving our budgets. I just -- I wanted to -- City of Miami Page 35 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 Vice Chair Carollo: Mr. Chairman, real quick. Chair Dunn: Go right ahead, Commissioner Carollo. Commissioner Carollo: The last thing we spoke about was double dipping on phone expenses and all of a sudden we got back into the reserves, which I thought we had already spoken about. Can you explain to me why the executive director needs two phone allowances? Mr. Valentin: Well, you know, I was doing what the board told me to do. That was part of his compensation package. They approved a cell phone allowance for him and -- Commissioner Carollo: Why is it again in the per diem? Mr. Valentin: Well, this is part of his compensation package. Mr. Bockweg, he's entitled to the cell phone allowance. He's entitled to full family health insurance and his salary and that's it. Commissioner Carollo: Right, but why is he getting two phone allowances? Mr. Valentin: No. Basically, we are paying his cell phone directly to the vendor. Commissioner Carollo: Right. But then I see here, in travel and per diem, another cell phone. Executive director, twelve months, 85,200. And then you have it also in cell phone allowance another 1,800, so you're double dipping. Mr. Valentin: Well -- Mr. Bockweg: No. If I may. And -- Chair Dunn: Mr. Bockweg. Mr. Bockweg: Yeah. The cell phone allowance, which is $150, which is far below than any other director gets in any agency or department -- but however, my cell phone allowance is for my personal cell phone where a lot of people still reach me on and I want to make sure that I'm always reachable not only for the Board but also the public. The CRA has also provided me a phone solely directed for the CRA. Commissioner Carollo: I'm just going by what you provided to us -- Mr. Bockweg: And that's the answer. Commissioner Carollo: -- and I'm seeing here on two separate line items one cell phone allowance with -- for 1,800, which I believe the Board approved that, and then if you go into travel and per diem, you see another cell phone for you for another $1, 000 -- $1, 020. So I don't know why you have a second cell phone allowance. And I don't believe the Board approved this one. Mr. Bockweg: Again, I have a cell phone for my personal cell phone allowance, which is to make sure that that's the one I always have on me as it relates to phone calls 'cause that's the one that people have my phone number for. The other cell phone that I have is for the CRA, which addresses all the CRA issues and the phone calls and the e-mails (electronic) that I get on that. That is why I have -- that is why there's that line item. Chair Dunn: Let me just say something. I think what -- and I have to agree with my comrade, colleague, Commissioner Carollo. Some kind of way that needs to be placed on there where -- I City of Miami Page 36 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 don't know. I'm not an accountant so this is not -- but whatever falls within the budget allotted for the cell phones, if we stay within that, then we won't have any problems, whether it's personal or private or whatever, I don't know how, but I think that probably adjustment needs to be made. Because I -- again, I do my very best, not perfect, in trying to avoid even the appearance or perception of anything. That's why -- and I know -- I'm going to say it. That's why when there was a gentleman that tried to imply that I had a cozy relationship with somebody that was being considered for -- I had to straighten that out because I'm not -- that's not the way it is. We're going to do it based on merit and based on who can get the job done and what's fair, what's legal and what's legitimate. Now I will say that it is okay for black people to have friends because everybody has friends. But friends will have to go through the proper procedure because if you've been in this community for 25, 30 years as I've been -- and of course, you're going to know people. Every -- just about everybody in this room I know, in some shape, form or fashion I've had some kind of contact with. So -- and I'm putting this on the record because it's necessary. So that shouldn't prohibit me because I know them or they know me from them being able to apply. But now if we do something illegal or something that's out of order, then that's when the problem persists, but I want to put that on the record. Everybody has people that they know, acquaintances or whatever, and -- but I'll -- let's see if we can get that straightened out in terms of that. If there anything else, Commissioner Carollo? Commissioner Carollo: Oh, yeah. There's more. There's a lot more, actually. And that's something that, you know, I will not approve. I will not approve two cell phones, especially when we allotted the maximum amount that was approved by this Board and now we see another line item for another $1, 000. Question, Mr. Executive Director, how many legal counsel do we need? First of all, how many attorneys do we have right now? I see two before us, but how many attorneys do we have right now? Can you explain this to me? Mr. Bockweg: Currently, I have one general counsel, which is the City Attorneys office. We have outside counsel from Holland & Knight who is only used for special and very complicated real estate projects and agreements that we move forward, and he is on -- he only gets paid when he gets -- does something. He is not on retainer. He only gets paid per hour. So he only gets used when we need him on complicated real estate issues. I do have one other in-house attorney, staff counsel. The staff counsel is for, obviously, the resos, doing legal contracts, grants, everything that -- day-to-day operations, my general -- my counsel in the office does. The overall reso approval and other smaller things or legal opinions come from the City Attorneys office. Commissioner Carollo: So -- Mr. Bockweg: So day-to-day -- I'm sorry, Commissioner -- but day-to-day, Carmen does all the legal work. And I can tell you that is drafting grant agreements, reviewing them, making sure that the grant agreements are followed, research, preparing the agenda, preparing the cover memos. I mean, this is a lot to do for one individual. And I know that the City Attorney's staff -- City Attorneys department is understaffed and as well is overworked. There are a lot of things that I am turning to in-house counsel for that -- not sending it towards the City Attorneys office. And we are -- I can tell you that Carmen is very busy with all the day-to-day operations that relates -- and having an extra person there will help with, number one, the workload; number two, with additional research; number three, with, you know, additional room to do the resos. And keep in mind that now that we are moving forward and we are getting a lot of work done and we're getting developments moving forward, you know, the more work that you do and the more developments -- development that you do, there's a lot more questions that get raised and there's a lot more legitimacy questions that get raised, how it reflects to our State Statute 163, the legality of certain things, et cetera, et cetera, et cetera. And I find it very prudent for us as an agency and as well as the Board to make sure that we are covered with all -- with that advice from our legal departments and from our legal staff to make sure that everything moving forward and what I bring to you is perfectly legal as according to our state statute. And sometimes the City of Miami Page 37 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 City Attorneys office is overworked and, like I said understaffed, and I need to make sure that that information is provided to me as efficiently as possible. Commissioner Carollo: So -- I lost track. You have three attorneys working for you right now, correct? Mr. Bockweg: I have two attorneys working for me right now and I have another attorney that I - - on a need to -- not a need to know, but a need basis, meaning ifI have a complex real estate negotiations, he comes in. So I have two attorneys right now. Mr. Valentin: Like Camillus House. Commissioner Carollo: And this would be Mr. Bloom, correct? Mr. Bockweg: That's correct. Commissioner Carollo: 'Cause I see him in every CRA board meeting and I don't know if every CRA board meeting we have a complex real estate transaction. Mr. Bockweg: Well, I want to make sure that he's here to answer any questions that you might have from an institutional knowledge and make sure that you get all the information accurately provided to you. Commissioner Carollo: So in other words, we need three attorneys every time we have a CRA meeting? Mr. Bockweg: Well, again, my attorney here is on staff so that salary is approved. We're getting - - she's getting paid. The City Attorney's office is our general counsel. And I have Bill Bloom here, for the most part, to make sure when issues are raised that you have the historical institutional knowledge that the other attorneys might not have to answer them. And again, Bill Bloom is only used when there are complex situations or, in this case, a meeting to make sure that you are well informed. Chair Dunn: Commissioner, could we just -- hold your point. I want to give our colleague -- Commissioner Carollo: Definitely. Chair Dunn: -- Commissioner Suarez and Commissioner Sarnoff an opportunity. But one thing I will be moving to do -- so, again, my whole thing is fairness and consistency. Why don't we just - - I want to direct -- move up -- agree to move up the budget on the phone to what the other directors get and then that way you won't have to -- that way it will be -- you'll show consistency and won't have to be pulled from anywhere else. Can we look at doing that? Just bring it up to - - what is it, 500 -- what the other --? Mr. Bockweg: The phone allowance -- Chair Dunn: Phone allowance. Mr. Bockweg: -- for directors? I think it's anywhere from -- Mr. Valentin: Over 300. Mr. Bockweg: For a phone allowance? Chair Dunn: Let's look at that. City of Miami Page 38 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 Mr. Valentin: Easily. Chair Dunn: Let's just look at doing that and then we won't have to go through this. Commissioner Suarez. Vice Chair Suarez: I'm not sure I know where to go from here. I really, really don't. You know, I am -- again, we started off this discussion -- we've kind of Ping-Ponged around, but we started off this discussion talking about our carryover balance. To me that is the most pressing issue that the CRA has. And to me, you know, whether our operating expense is 3.5 or whatever, 3.4 or 3.6 or 3.7, to me if you can justifir that whatever additional dollar that we spend in operating budget is going to bring quicker our carryover balance down, meaning that we're going to get more projects done, more things that benefit the community, which is what this entity was created for, I'm in favor of that. For example, for me, to have an additional project manager makes sense. I'll explain to you why that makes sense. If we have $25 million worth of outstanding projects essentially, if we're going to get that money on the street and we're going to do it right, we need a project manager to oversee that, otherwise, it's going to be a disaster. We have right now I think one project manager for all the projects of the CRA and we have, I guess it's an assistant, which is -- what would you consider that other position? Is that like an assistant project manager? It's the project inspector, so it's kind of like an assistant. Is there anybody there -- Unidentified Speaker: Yes. Commissioner Suarez: -- someone helping you? Okay. Mr. Bockweg: Yes. Vice Chair Suarez: So you basically have one project manager to manage $25 million worth of projects, which are not five big projects. They could be, you know, 25 or 30 or 40 or 50 projects. So I think that's a wise expenditure. I'm not 100 percent sold yet on having an additional legal counsel. We just hired a legal counsel at a higher rate from our prior legal counsel, and I'm excited about our new legal counsel and I'm hopeful that we can not repeat some of the things that were happening over the last few months, one of which we caught in our briefing. Like the Vice Chairman says, I'm not going to get too much into that. You all know how I feel about the phone allowances. I was kind of shocked to know that there was a second one personally. And I think, you know, this is a healthy debate. I think there is one aspect of this entire -- going through this whole process now versus going through it in September. That is a little bit complicated for us as Commissioners, who are also CRA Board members, which is exactly what the Vice Chairman said. Whatever decisions we make, we do have to justifir them to the general public and to the CRA residents. We're under a tremendous amount of scrutiny, deservedly so. And we need to make sure that everything that we're doing, we're doing it properly and we're doing it for the benefit of the CRA residents. And I think when that comes into question, people start to question why we have a CRA, and that's unfortunate, but it does happen. So, you know, to me whether it's 3.5, whether it's 3.6, whether it's 3.7, I mean, there's some things here that you cannot compare. I think the City, just to give you an example, has over 50 -- or at least it did last year, and I don't know if it still does after the cuts that we administered last year. But last year when you put in the all in -- what they call the all in, I think we were above 50 percent of people making over $100, 000 in the City. So I don't know if that changed after we made our salary reductions. I haven't heard anything about it since. So it'd be interesting to see, you know, whether or not that number has changed. In any event, those are my comments on the budget, you know. I -- unfortunately, I have to go, so I don't know if we're going to -- Chair Dunn: Commissioner Sarnoff. City of Miami Page 39 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 Commissioner Sarnoff. There's an old saying in law or actually for trial lawyers. Just 'cause you can doesn't mean you should. And what I mean by that is just 'cause you can be at 25 percent doesn't mean you should be at 25 percent. Having said all that, I ask myself what is the primary function of a CRA. Okay, I know what you guys are saying, cure slum and blight. But how do you do it? What is the closest thing in the private sector to a CRA? The closest I can come to is a bank 'cause occasionally you act as a grantor and sometimes you're a developer and sometimes you're actually a contractor. So I would expect to see in a CRA a number of lawyers who make sure that we get the documents we need to demonstrate that we're being judicious and careful with the people's money, especially these people's money because you're the people that need it the most. So having said that -- Applause. Commissioner Sarnoff -- I would expect to see counsel on the CRA. Don't applaud. I'm not a good guy to applaud. Save it for the other guys. They're much better guys than me. Legal counsel's going to cost you anywhere from 65 to $85, 000. Guess what, folks? Four years of school, three years of law school, they come out about 150,000 in debt. These guys are going to make a certain amount of money. Then you're going to have a project manager/engineer. Well, guess what engineers? They go to school for four years, then they get tests. They're going to get very close to 85, 95, $100, 000. You happen to have a very experienced engineer. And then everybody else is going to be somewhere in between that. Apparently, it looks like if you average everybody, you're making about 73,000 a year. But again, you're a very highly administrative agency because primarily what you do, you act as a bank 'cause primarily you're not really a developer -- occasionally, you do do it. And if you ever look at developers, look who's on their staff. But primarily, you're a bank. That means a lot of lawyers. That means a lot of CPAs (Certified Public Accountants), and that means an occasional engineer. And guess what, that's what you have. Now I also agree with the Vice Chair, which is let's not over reserve and let's not double reserve. And I was a little bit swayed by your argument 'cause I didn't understand that 'cause I was more than -- you know me, I'm not the most compromising guy in the world, yet I thought I could work out a compromise. I must think I'm like ready to go to Palestine and figure out how that's going to work. But I was actually agreeing with what the Vice Chair had to say because I don't want to see a reserve and then find out there's another reserve and find out there's a contingency. 'Cause in some respects, he's right. It's sort of like a triple cushion, if you will. But then, Miguel, you make a good point, which is ifI make a change to this budget and don't put a reserve in, I then have to go back to the County. Mr. Valentin: And this is a problem for me. Commissioner Sarnoff Oh, I know the problem. It's a problem for everybody. If you go to the County, number one, it'll take you four months to get on their agenda. They'll pull you twice. And then they'll make some gratuitous statements, and then they'll say to you, okay. But for that six to eight months, you won't know that you're okay with the County budget, and then the lawyers will start getting involved and saying, you know, Commissioner, you don't have an approved budget. But I was more than swayed by what the Vice Chair had to say. And I don't know if there isn't a way of compromising or working this thing out a little more efficiently, but in terms of salaries, cost, you're a bank. The CRA is a bank and it's a lender, and it also is a developer. So the closest thing you have to the private sector is that, and that's the way this organization should operate. And you should hold their feet to the fire and you should make sure that as much of the bank's money hits the street because you know me up here. I'm not the affordable housing guy. I know, nobody likes me. But I'm the guy that thinks the CRA should create jobs. I'm the guy that thinks the first thing you get is a job, and that's just my take on life. Now I sometimes go the other way when you guys convince me this is a good affordable housing project. But to me, the way I was brought up, the first thing you got was a job, and the job got you everything in life you needed. So I apologize for the little bit of the philosophy, but I thought the only way to blend what everybody is saying is to say we know what we're here to do. We're City of Miami Page 40 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 here to cure slum and blight, but what do we act like in the private sector? A bank and occasionally a developer. So I'd expect us to look administratively like a bank and administratively like a developer. Chair Dunn: Commissioner Gort. Commissioner Gort: The one question that I have is how much have we paid in the past for not having the right supervision? I'm a great believer that we have to have the right people making sure the job that has to be done, it gets done. Sometimes we try to save in some line of -- and in the end, it costs us a lot more. So I don't have a problem with the salaries, but I think it's very important whoever we have performing has got to make sure that they do the performance. Whoever supervise them, we got to make sure they supervise. We have a lot of contracts that going to be coming up. I mean, we been going in this I think it's twenty something years now and trying to come out -- I don't know how many master plans we have in this area. I believe we have about five different master plans. I think it's -- 30? Okay. I mean, I been going to a lot of meetings since 1993 and we've had a lot -- it's time that we get something done and I think it's being done. But I think it's very important. These arguments are very important 'cause this happens to us on the Commission all the time. One Commissioner will bring up an issue and we all discuss it, but at the end, we'll come up with a conclusion that what is the best for the residents of the City of Miami. So what you're hearing here, I'm glad you're sitting here and you're listening to all this 'cause we talk about transparency and that's taking place. I think one Commissioner, Commissioner Carollo's an auditor and he's an accountant. He really looks at all the numbers and he'll bring things up and we'll discuss it. And we always -- I can assure you, we make the right decision after we discuss it for a while. We go through this a lot so just be patient. Thank you. Chair Dunn: Okay. I'm inform -- Commissioner Carollo -- but time is of the essence in terms of our colleagues. Commissioner Carollo: Mr. -- yeah, Mr. Chairman, just -- Chair Dunn: Before we -- go ahead. Commissioner Carollo: -- real quick. I just start -- like I said, I kept hearing that 3 percent, the 3.5 percent, 3.4 percent and I said I haven't calculated the numbers. Are you taking into consideration that 25 million to do your percentage? Mr. Valentin: Yes. This is -- this -- but let me answer this. Commissioner Carollo: So annually, it's not 3 percent. Mr. Valentin: Well -- Commissioner Carollo: You're just using all this carryover and carryover -- Mr. Bockweg: We are -- Commissioner Carollo: -- to use as -- Mr. Valentin: But let me -- Commissioner Carollo: -- a percentage. Mr. Valentin: Do you want to answer this or --? City of Miami Page 41 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 Mr. Bockweg: Go ahead. Commissioner Carollo: Realistically, it's not 3 percent. It's a lot higher than that. Mr. Valentin: No. But I want to -- Mr. Bockweg: Well, no. Commissioner, actually it is 3 percent 'cause our budget is $25 million. Mr. Valentin: No, 33. Mr. Bockweg: Currently, today our budget is $25 million, so it is 3 percent. Commissioner Carollo: Well -- Mr. Bockweg: If you base it on a recurrent revenue of collected TIF every year, I can tell you from the research -- Mr. Valentin: Eleven percent. Mr. Bockweg: -- we are still below the other agencies that there are in the City of Miami, including -- Commissioner Carollo: Right. Mr. Bockweg: -- the DDA, Bayfront, and as well as MPA. Commissioner Carollo: But your current revenue, you're using all the carryover from all the previous years. Mr. Bockweg: But -- Commissioner Carollo: Realistically, you have here, what is it, five and three. You've got five and three. You've got about eight point something million. It's not 33.8 million. Mr. Valentin: Yes. Commissioner Carollo: You're using the 33.8 million in order to do a lower percentage, but if you do it just off of the 8 million, which is your current ad valorem, it's a lot higher than three point whatever percent. Mr. Valentin: I want to say something, Pieter. Mr. Bockweg: Commissioner, I mean, that is one way of looking at it. However -- Commissioner Carollo: Well, it's the right way of looking at it. Mr. Bockweg: Well -- but when I look at the budget, I see $33 million. I don't see 8 million; I see 33. Mr. Valentin: Let me -- Commissioner Carollo: Yeah, 'cause we're not spending the money. We're budgeting it -- Mr. Bockweg: But that's -- City of Miami Page 42 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 Commissioner Carollo: -- every year. We're budgeting it like, yes, we're going to spend it and we don't. We just carry it over. So in a way, you could say it's a myth because you're using it just to pretend that, yeah, we're going to allot those money and we're going to expend it, but it just goes time after time. One of those projects, the resolution was from '06. Mr. Bockweg: I -- well, I respectfully disagree wholeheartedly with saying it's a myth and that we're just automatically adding on the money just to make our operating budget look good. That is just -- Commissioner Carollo: Well, I mean -- Mr. Bockweg: -- absolutely not true, but -- Commissioner Carollo: Listen, I guess I wasn't as diplomatic and other people will be more diplomatic about it, but the truth of the matter is, I mean -- Chair Dunn: Let me hear from Miguel. Let me hear him -- Commissioner Carollo: Sure. Chair Dunn: -- respond to that -- Mr. Valentin: No. And the Commissioner -- Chair Dunn: -- 'cause that is -- Mr. Valentin: -- is absolutely right. But if you compare the one million that we're going to be using only for the -- from Overtown, divided by the 8 million, it's going to be roughly like 11 percent. Commissioner Carollo: Or 13. Mr. Valentin: Still, we're in compliance. But Commissioner -- and I know that you're right about this, but this computation, when we go to the County and present the budget, the County, the people that they are assessing the budgets, they take our budget as a whole, the 33 million. And then if you divide 1 million, divide it by 33 million, then you are going to be coming up to 3 percent. I am just -- there are two ways of looking at it. One way is in the way that you're looking at this. Commissioner Carollo: Which is correct. Mr. Valentin: Well -- but remember, at the County -- and I'm able to show you the resolution -- they are stating that we're using only 3 percent. Commissioner Carollo: Because they're not CPAs. They're not accountants. Mr. Valentin: No. They are CPAs too, and that's why -- well, Pieter is mentioning the 3 percent. But still, we are under the 20 percent. I'd like to put on record that -- Mr. Bockweg: The 11 percent is still below any other agency -- Mr. Valentin: The 20 percent. Mr. Bockweg: -- in the City of Miami. City of Miami Page 43 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 Commissioner Carollo: I'm not even sure it's 11 percent. I think it's a little higher than 11 percent, but I'll give you it's still under 20 percent. Chair Dunn: Let me do something. Let me -- I'm going to pass the -- I'm going to make a motion that we make some adjustments, that -- with the phone. Commissioner Carollo: Mr. Chairman. Chair Dunn: Yes. Commissioner Carollo: Can we actually defer it? Mr. Bockweg: No. Well -- Applause. Commissioner Carollo: We're going to be listening to all the other CRA budgets -- Chair Dunn: Okay. Commissioner Carollo: -- in -- on Thursday's meeting, I believe. Mr. Bockweg: Well, we will be listening -- we will have Omni on Thursday and Midtown on Thursday. Commissioner Carollo: Right. Like I said -- Mr. Bockweg: But we do need to pass the budget before September. Chair Dunn: So we'll have -- we're going to just -- well, we'll end up -- we're going to defer the whole meeting 'cause we're going to lose a quorum. Mr. Bockweg: We don't have a meeting in August. Chair Dunn: So we're getting ready to lose -- y'all keep clapping 'cause we're getting ready to lose a quorum. Okay, all right, but we'll defer the meeting to Thursday. Mr. Bockweg: The entire meeting? Chair Dunn: We're getting ready to lose the quorum. Mr. Bockweg: Okay. Chair Dunn: I'm here. Commissioner Sarnoff Well -- and I don't want anybody to think I'm walking out. I actually have a HUD (Department of Housing and Urban Development) meeting I have to go to at City Hall, so I don't want you to think I'm -- Chair Dunn: Yeah, that's what I'm saying. Commissioner Sarnoff -- walking out of here. I mean, I -- Chair Dunn: Yeah, I'm here. Yeah, he has a previous engagement. I believe the others -- I'm here. So now -- unless the others can stay for the rest of the agenda. City of Miami Page 44 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 Commissioner Carollo: I have a -- Chair Dunn: I'm here. Commissioner Carollo: -- Silver Bluff -- Chair Dunn: Here. Commissioner Carollo: I -- either way -- Mr. Chairman. Chair Dunn: Yes. Commissioner Carollo: Either way, I think we need to defer the budget. Chair Dunn: That's done. Commissioner Carollo: As far as the other items, I'll stay as long as possible. 171 be late, but -- Chair Dunn: Okay. Commissioner Carollo: Let's try to -- Mr. Bockweg: So let me -- I just want to understand. You want to -- Commissioner Carollo: And any item that will be controversial -- Chair Dunn: Sure. Commissioner Carollo: -- can we just defer them? Chair Dunn: If we think -- yes. Okay, so what we're -- Commissioner Carollo: So let's -- Chair Dunn: -- going to do, can we have a motion to defer it to Thursday's meeting? Vice Chair Suarez: Second. Commissioner Carollo: Motion to defer the budget to Thursday's meeting, Thursday's City of Miami Commission meeting. Chair Dunn: There's a motion by Commissioner Carollo -- Unidentified Speaker: Excuse me. Chair Dunn: -- second -- Vice Chair Suarez: Second. Chair Dunn: -- by Commissioner Suarez to defer the budget item until Thursday. All in favor, let us hear by saying "aye." The Commissioners (Collectively): Aye. Chair Dunn: So moved. City of Miami Page 45 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 Chair Dunn: Resolution -- item number 10. And before -- I'm going to yield to our executive director, Mr. Pieter Bockweg, but before he comes forward, there were a couple of things that were mentioned. I do want to ask us to be considerate of the fact that I believe last Monday we've already spent a good hour plus on this item. Not to rush anything, but we just -- I just witnessed a heavy-duty issue in the police department and we kind of moved along, passed it on, and so I just -- I do -- I believe there are going to be some issues that address -- I do welcome healthy debate. I think it's good for the process. All I've said from the outset is that our budget is treated the same as all other agencies. Last year I asked that we be fair in the budget process, but I question whether we were looking back in retrospect. I kind of sat back and watched as the CRA (Community Redevelopment Agency) became, I believe, the whipping boy for the fire department and the blogs and everybody was lining up taking shots at the CRA out in, you know -- the Herald, in spite of the fact that we gave $13 million back to the City as a -- what is it, a re Commissioner Carollo: Reimbursment. Chair Dunn: -- reimbursement, you know. In spite of the fact -- I do want to acknowledge that, yes, while the other agencies -- and I'm not here to impugn any other agencies, but we do and we have agreed to give 50 percent of a billion dollars over the next 15 to 25 -- 20 years. That's about a half a million dollars that will go to be split up between the County and the City, so this comes from the TIF (Tax Increment Fund) revenue, so I don't want it to look like that this CRA is just -- let me say it like this, a welfare agency. It is in fact paid its dues. It's paying its dues. And it is trying to make good on what should have been done by those who were before us that they didn't do. And one of the most devastated areas in the City of Miami is Overtown. It has -- we talk about 14 percent in the City -- when the City as a whole catches a cold, Overtown catches pneumonia. And it is apparent during that time that the staff benefits -- and I'm not just talking specifically and exclusively the executive director. Staff benefits and compensation were cut more severely than any other agency, in my estimation. I accept responsibility for that. But I believe that we should have done a better job -- meaning I -- protecting the agency that serves the district that really needs it and will benefit the City as a whole. I just talked about a half a -- wait a minute, not a half a million -- $500 million. Five hundred million, yeah. Five hundred million dollars. And so this year I'm not going to allow the CRA to be treated like a second-class citizen under the guise of being fiscally prudent. Now earlier today when we were discussing the auditing firm, we acknowledged the expertise that each of us bring to the table, and we have established a custom of deferring to the judgment of the district Commissioner. This CRA budget affects my district. And I heard that echoed by just about all of us, if not today, that has been the tone and tenor. Employees of the CRA have done an excellent job. I wish I had that report. For the record, I'm just -- I'm not going to go through it. But for the record -- we saw this on Monday night, the presentation that was made on Monday. For the record, in a year's time -- and somebody correct me ifI'm wrong, please -- I believe the CRA -- and a lot of it was due to monies being ready through bonding, but nevertheless, we have demonstrated -- you see more -- and thanks to you, thanks to you. We've demonstrated more progression in a year's time in the historicity of the CRA, period. So I -- you know, I cannot sit back and allow, you know, this agency to just be disregarded. A hundred and thirty-six dwelling units renovated or in prog -- and I don't want to go through -- we did it Monday. You saw the young people come today doing the summer youth job program. We saw that, you know. When you see young people like that, that reduces blight and poverty. These children now have an opportunity to realize -- and thanks to you. I just want to show the value because I went to the County the other day because our County budget has to be -- our budget has to be ratified, approved by the County, and everybody -- oh, you know, I hope that this comes a time when we won't need the -- yeah, but we got a long ways to go because we got a lot of catching up to do. Nobody factors in that. And I am not going to stand idly by especially -- and we talk about fairness. That's all I've been asking for the whole time. Let's be fair, let's be consistent. That's all I'm requiring. And you know, what I'm asking is not unreasonable, nor irresponsible. With these adjustments, our budget is still right at 3.5 percent of the total budget -- expenditures, pardon me. And again, one of the issues that I City of Miami Page 46 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 want to bring out is it is not of any consequence to the general fund. We just dealt with an issue -- I don't know what the issue is. Some people was ringing out $1.8 million being over budget, three point some -- and we just kind of went along like it was nothing. If that had been the CRA, all hell would have broke loose. And see, I just -- that's all -- I mean, we just went along. Nobody said too much, blah, blah, blah. And we're talking about 1.8 million -- I don't know what the figures are. And not only that, we had -- it appears, based on a memo based on the Manager's account, we had a police chief -- What word you want me to use? Did he deceive him? Did he lie to him? Was he disingenuous? Was he misleading? These are the kind of things that I think that need to be on the record. So if we going to be fair, let's be fair across the board because I'm telling you, I'm not going to sit back. I'm a fair guy, but ifI think that somebody's trying to pull wool over my eyes, especially as relates to the people that we serve -- I'm going to support everybody in their respective districts. We've given deference to everybody, but when it comes down to CRA, let's keep the same thing. We have some philosophical differences. I'm simply asking no more and no less. And I know -- Vice Chairman Carollo, I respect your fiscal ability and your expertise. I've never tried to stop you and I never will, but I just want you and all of my colleagues to be fair when it comes down to the CRA. Most of the times we have, but quite frankly, I've had some differences with the way you have handled matters pertaining to your district, but I deferred because you know your district better than I. I got to have the same treatment. I got to have it. I ain't asking for it. I got to have it. Applause. Chair Dunn: Please, please, please, please. Please, please. I got to have it. I'm not asking. I got to have it, okay. So with all due respect to my colleagues, this is not the City's budget. I just wanted to put that on the record. Now I'm going to give Mr. Bockweg an opportunity to address some of the things that were mentioned on Monday. But just -- let's just be fair, guys. Let's be fair and we're going to have -- we're going to be -- we're going to get the City out of our trials and tribulations, our deficit. But I am not going to allow things to be business as usual. I mean, and think about it, I can remember vividly -- and I don't want to beat on it. People used to line up -- whenever it was a CRA issue, people would line up. They would pack -- and had nothing to do with it. I had people who never set foot in Overtown act like they know more about Overtown than me. Oh, don't sell your -- that's a -- Well, move on. Go ahead. Commissioner Gort: Are you upset, by any chance? Chair Dunn: Yes, I am. Commissioner Gort: Oh, okay. Chair Dunn: Yes, I am because I don't like that. I don't like it. And I said I don't like it. Don't like it. I'm the nicest guy, easy to get along with, but we're talking about historical perspective, cultural perspective. Now if something is not right, if it's wrong, if it's illegal, I ain't going to be a part of it, so let me put that on the record. If it doesn't make fiscal prudence, I'll yield, but let's be fair and consistent. Pieter Bockweg (Executive Director, Community Redevelopment Agency): Thank you, Mr. Chair. There's a couple things that I'd like the opportunity to clear up from last Mondays meeting that I took some exception to as far as some implications that were brought up or presentations that might have suggested some impropriety on not only my part but that of my staffs. So I'd like to address two issues particularly that was brought up on Monday. The first one I'd like to bring up is the cell phone allowance. It was presented that we were double dipping as it relates to my cell phone allowance. I wanted to clear that situation up so that we are on the record and understand what the situation is there. When I joined the CRA, the Board approved $150 phone allowance for myself as one of my incentives. When I walked into the office the next morning, I was handed a cell phone saying this is the executive director cell phone City of Miami Page 47 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 for e-mails (electronic). This is yours for e-mails. Now, you, the Board, had approved $150 for me for the phone allowance. I use all phone -- personal phone calls, business phone calls, all phone calls from my personal phone. I've been in the City for -- working for the City over six years now. Everybody knows my cell phone. They don't have -- the phone that I have for the CRA is only used for data, only e-mails. That is why there are two cell phones. It is not double dipping. I have one for data, one for calls. I have no issue whatsoever if it's the will of the Board to consolidate everything into one cell phone. If that is the will of the Board, I have no issue with it, but I did have an issue with the implication that we were double dipping related to $150 charge. That's one thing that I'd like to clear up. The second thing, there were some misstatements made on Monday that 40 percent of my staff make close to $100, 000 in salaries. I wanted to just clam that issue. It is true that 40 percent of the staff -- of the overall staff that represent all three CRAs make close to $100,000 a year. And I'm just going to talk about me personally now as the executive director and this goes for all my staff, except for two individuals. I represent -- I oversee three CRAs. I get paid $108, 000 -- $108,200 as my salary. Half of that is paid from Overtown. The other half is paid from Omni. So I'm actually paid $54,100 to oversee one CRA. That is the same for all my staff, with the exception, like I said, for two individuals. Mr. Woods, who is the assistant director for Overtown, gets paid 100 percent from Omni. And my other assistant director for -- I'm sorry, for Overtown. And Mr. Gonzalez, who is the assistant director for Omni, gets paid 100 percent from Omni. The rest of my staff all gets paid the salaries across-the-board. Now the reason why I bring that up -- and I want to make sure that things are represented in the correct light. And the reason why I bring that up is as follows. I have a comparison -- I -- and like I said, I'll make this personal, to me alone. As overseeing one CRA -- let's take the Overtown for example. I have a budget of $33 million that I oversee. And like I said, I am paid $54,100 to oversee that CRA. If you compare that to other CRAs within South Florida, Hollywood, the beach district, Hollywood, the downtown district, Boynton Beach CRA, Riviera Beach CRA, even the North Miami CRA. The North Miami CRA executive director gets paid $202, 000 to oversee one CRA whose budget is $11 million. The Hollywood Beach CRA executive director oversees the beach district as well as the downtown district. He gets paid $65, 000 from each. The executive director of Boynton Beach oversees one CRA, again, with a budget of $11 million, and he gets paid $130, 000. The Riviera Beach CRA executive director of a budget of $5 million gets paid 137 million -- $137, 000. So I want to make sure that, from a personal standpoint, I -- my salary is $54, 000 for one CRA. I happen to oversee all three. I have agreed and will continue to agree not to get paid for the Midtown CRA. Granted, I -- there's not a lot of work there, but there is still work and my -- all my predecessors got paid a salary from Midtown CRA. I will continue not to get paid from the Midtown CRA, and I have no issue with that. But I want to make sure that the numbers that get thrown out get represented in the correct light. The other thing that I wanted to address is the concerns with the contingency that were in the budget. And I must say, I heed to the Board's concerns, particularly that of Commissioner Suarez. I actually agree with you, so the budget that I am proposing for you tonight is amended to have all the contingencies eliminated on all the line items. There will not be a contingency in the budget. I am proposing that the contingency, which totaled $62, 000 -- it's actually 62,539 -- get moved to the budget reserve. Now that budget reserve currently stands at $285,103. With this increase, it'll end up being $347,642. Now just to address the budget reserve real quickly -- So, again, the budget before you does not show any contingency. It is important that we have a budget reserve for the CRA, whether it be additional costs for expertise, again, which have to come to the Board, whether it be unforeseen circumstances, an additional position that might need to be created or whatnot, insurances, any unforeseen circumstances that we personally do not have a control over. It is vital that we do have a budget reserve for the very fact that if for any reason we need to touch that money, which I have to come to the Board for approval no matter what, we have that money available. If we do not have that money available, we have to start a four- to six-month process all over again 'cause ultimately, the County approves our budget and we would have to come in front of the CRA Board, City Commission, the County TIF Committee, the County Finance Committee, and then finally the County Commission. And that could be over something as small as a $5, 000 increase, for example, in car insurance. I'm just giving you a crazy example. Yes, Commissioner. City of Miami Page 48 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 Vice Chair Suarez: That's assuming no deferrals. Mr. Bockweg: Yes. That's correct. That is correct. And that -- to me, that would put us in a bind. And again, the budget reserve is there for unforeseen circumstances that I would, regardless of what it is, have to come before the Board for approval, just like I did when I hired the attorney, Carmen, when I -- when we hired her for her salary. So those are the things that I wanted to clear up. And like I said, I wanted to make sure that I heed to the Board's concerns regarding the contingency. I agree with you. Before you there is a budget with no contingency in the line items. Thank you, Mr. Chair. Chair Dunn: I open the floor -- Yes, Commissioner Suarez and Commissioner Carollo. Vice Chair Suarez: Thank you, Mr. Chairman. I'm going to make just two brief comments. Keep them very brief. I know -- and out of respect for you and the comments that you made. One is, I think I would appreciate if you could consolidate your -- as you've offered, Executive Director, to consolidate your phones 'cause I think that's a valid issue. I have my -- all my data, you know, everything consolidated onto my phone. So I think that's a valid concern. The other suggestion that I had made at the last CRA was before -- and you know, I don't mind if the contingency reserve is what you suggest before -- Mr. Bockweg: Budget reserve, not contingency. Vice Chair Suarez: I'm sorry. My apologies, budget reserve. I would prefer that the second legal counsel position be, you know -- instead be an auditor position until -- because I know that there's -- from my understanding, there -- you know -- and the Vice Chairman made a good point -- right now there's somewhere between two and three attorneys present at the meeting. So maybe -- I think there's some transitional issues regarding the City Attorneys office and that -- so when those things occur, then at that point, you know, if you find that the volume of legal work is such that you need another attorney, you know, then we can do it from the budget reserve. But the position that I think for me is very important is some sort of a position or someone who has a responsibility of auditing the contracts to make sure that all of the requirements, particular the ones related to job creation, are being followed And I think that's something I expressed in the last meeting and I just wanted to reiterate. Mr. Bockweg: IfI may, Commissioner. I thought about that and your concern as it relates to an auditor in the CRA. Just to give you a little background as far as the procedure, how it works internally that we've created We have an individual -- and I'll name them out 'cause they're here Percilla. She is someone who not only inspects, visits, but with a fine-tooth comb, so to speak, runs over and looks at all invoices making sure that the requirements that are part of the grant agreement are being met. I'm sorry. Vice Chair Suarez: I was going to say, ifI may, what I would appreciate then under -- if she's the one that you're going to designate to do that, that we get a report, you know, contract by contract or whatever her activities are, that we actually receive a report that details, you know -- so that we know that everything that we're approving after the fact is being implemented. Mr. Bockweg: If you'd like, Commissioner, I can give you a biannual report on the grant agreements that you have approved. And just so that you know that the system that we've created does not stop with one individual. It goes from Percilla who reviews it. Obviously, we have Carmen, who is an attorney, who also makes sure that everything is being met within the actual grant agreements. From there it goes to our assistant director, who is also intimately involved of course with the contract and makes sure and double checks that everything that Percilla signed off on is signed off on on his behalf and making sure that it gets done. Ultimate -- well, not ultimate -- the next step is bringing it to Miguel. As you know, Miguel is a CPA (Certified Public City of Miami Page 49 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 Accountant). He also comes from Victor Igwe's office, so he has some auditing experience. He, of course, relies heavily on Percilla and Clarence -- and Clarence or Bert, depending on the CRA - - but he also takes a look at it. And then, ultimately, it comes to me. So along the lines of all double checking, there are -- what's the word I'm looking for? -- buffers, so to speak, that every single person -- there's a checks and balances to make sure the job gets done and the things are done. And to go along with your point, Commissioner, when I became executive director, I could - - I don't agree with you more. I couldn't agree with you more because the main thing here is to make sure that we hold the people accountable for the money that ultimately the Board approves to give to certain projects. That is the people's money, and I am committed 100 percent, and I think we've had some instances that proves that they need to be responsible with the money that you ultimately approve. So -- and I'm sorry to be long-winded, Commissioner, but that is why I almost feel it's even more important to have an additional attorney present than a specific additional auditor. Vice Chair Suarez: Would the Chairman be okay with us getting a quarterly report or some --? Chair Dunn: Absolutely. Vice Chair Suarez: Would you be okay with that? Chair Dunn: I have no problem with that. Mr. Bockweg: Absolutely. Vice Chair Suarez: Do we need to make a motion or --? Chair Dunn: No. Wait a minute. Commissioner Carollo had something. Commissioner Carollo: Yeah, but (UNINTELLIGIBLE) answer for -- Vice Chair Suarez: Do we need to make a motion or --? Chair Dunn: I think when we make the motion for the budget -- I don't know. I'm going to ask the attorney. Veronica Xiques (Assistant General Counsel): You don't have to make a motion. You're just going to give the executive director a directive and he's going to follow whatever you need. Mr. Bockweg: Do you want me to e-mail it or hand -deliver it or how would you prefer? Vice Chair Suarez: I think you should do both -- Mr. Bockweg: Okay. Vice Chair Suarez: -- personally, but you know, I'm okay with e-mail. I read my e-mails so -- Mr. Bockweg: Not a problem. Vice Chair Suarez: -- you can send it to me by e-mail if you want. Chair Dunn: Commissioner Carollo. Vice Chair Suarez: Save trees. Commissioner Carollo: Thank you, Mr. Chairman. I'd like to begin by saying that I appreciate City of Miami Page 50 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 your passionate statements, but still, some of the facts are still the facts. I mean, you know, the 40 percent of salaries, the double phones. I don't know -- I mean, I don't know how many phones you carry. I only carry one phone, you know. So some of the facts are still the facts. As it stands right now as it is, I'm not going to be able to approve this, you know. You know, I could save a lot of time if you all are comfortable with it and so forth. We could go ahead and vote for it. I cannot approve this, not the way it is. And as a matter of fact, you know, you speak about fairness. Listen, I think one way or another, all of those employees from the City of Miami are going to take some type of cut, at least that's what it appears, you know. Maybe we'll know more tomorrow. We'll see if there's some negotiations. But the truth of the matter is, these salaries are staying the same. And yes -- listen, I'm sorry. I don't have time, you know, to look at every issue and look at what every CRA makes or so forth. I've heard rumors and I'm not going to go by rumors where maybe some CRA districts, the City Manager of that CRA actually does the job. But the bottom line is I'm not going to debate every fact. I don't think there's a need for it. And at the same time, if you're the Chairman and you're saying you're okay with it, the other Commissioners are okay with this budget, I can tell you, I'm not okay with it. I'm not okay with all this carry forward. I'm not okay with, you know, so many projects that still have not been started, still there's no movement. So, you know, I'll leave it at that. I don't know how much you want to debate or not. Chair Dunn: I do believe that there are some adjustments due to some of the things that you brought up that -- some concessions that we'd be willing to make to adjust the budget because certainly, the appearance of fairness and avoiding the appearance of -- and I'm going to just use your word -- double dipping, I would like to basically see a consolidation of the phone allowance at $200 a month, which is pretty much the going rate for directors in the City of Miami currently. I would like to see the executive director receive a car allowance of $500 a month, just like all the other directors receive. And he should be reimbursed only $1, 000 for last year's car allowances because last year after the meeting, when we had our meeting, I had to look every one of those employees -- I'm not just talking about Mr. Bockweg -- and some of the employees actually had tears in their eyes because there are some that are not in that 100,000 or close to 100,000 category. So I think when we make statements like that, we have to be careful that we look at the overall scheme of things. Certainly, we want to appear -- I mean, certainly, we want the morale to be high in a tough fiscal crisis for the City employees, but you know -- and I'm not going to beat it because I -- I'm not going to beat on the issue or beat this horse, but you know, I just heard some things that if they were even intimated with the CRA as it related to the police department, we'll be on the front cover of the Miami Herald, and I've seen that. I've seen situations like that, and that's where my frustration comes. I mean, I don't even speak to the Herald, to one reporter anymore because I was mischaracterized as having a friend, and that's why I made the statement that I made. And so that's what irks me when people who've never been in my shoes pontificate certain things that they don't know anything about, you know. You have to -- you know, just this past week or past two weeks -- and I don't want to get into -- we had about ten shootings possibly in the District 5 area. Four people got shot. A 17-year-old girl right now who I know, who I pastored, just so -- I didn't know that she was -- I'm not saying right, wrong or indifferent. She doesn't have a leg now. And you know, we hear certain things. And let me say something, and I want to say this for the record. People in Overtown came to me, the residents, and said, hey, you know, we're having problems with crime here. You know what, a Commander Ferro, I have the utmost respect for him. You know what I did? I said, you know what, I'm going to put aside my differences. I just want to -- and let's provide the best quality of life. I heard my colleague, Commissioner Suarez, say policing is a high -- is the number one priority. I'm going to say it like I heard Congressman Alcee Hastings say it. I want everything everybody else wants for our district, and that's all Pm saying, the same quality of life. We got a long ways to go, and I don't want to muddy the issue with a lot of comment, but I think it's good, it's healthy. The debate is healthy because I hear you. I heard you that night. That's why I asked the people -- the accountant, somebody explain 'cause, you know, I'm not getting no clarity. So I'm not asking -- but I just want us to be consistent across-the-board. And you know, I'll leave it at that. But I am not anti police. I even -- you know, I know it's bad when I feel a City of Miami Page 51 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 blockage. I can't even hardly work with my police chief. That doesn't feel good. We got problems in my district. We got problems in Overtown. I want a relationship, a working relationship with the police. I need that. Now you guys have it, but I don't have it, and that's all I've been saying from day one. And that's another issue. I'm not going to get into that 'cause that -- so that's where my passion comes. Commissioner Carollo: And Commissioner Dunn -- Commissioner Gort: Wait a minute. Let me clam something. Chair Dunn: Okay. Commissioner Gort: I'm the one that brought the pocket item and not only for the police, but for all the departments. Now in here, unfortunately, we have a lot of say-so, rumors, and somebody comes in here and makes a testimonial, I want to see proof. I want to see in paper. If you make a statement in here -- that's why I asked -- I wasn't going to have a debate back and forth between the union and the police chief. That's why I asked the budget director, please let me know where we're at, give me the numbers, give the numbers to them. It doesn't mean that we don't care. We do care. At least I do. And the reason I brought it up is because I got problems with the budget and I've been (UNINTELLIGIBLE) budget for the last six month, I want to see every month what's happening and I want to make sure we concur with expenses and we comply with the budget. I wasn't going to have a debate here between the two individuals. That's why I asked the budget department, bring me the numbers, give the numbers to the FOP (Fraternal Order of Police). And if they have a difference, they can come up with the numbers where they have the proof, come up with it. Chair Dunn: And Commissioner, I respect that and I agree with you. Commissioner Carollo: Mr. Chairman. Chair Dunn: So I do -- I will -- my statement should reflect that, but I'm just saying -- and you know, this is a frustration that I've been carrying on for almost -- what are we, in July -- from January to July, seven months, going on eight months. And I want very badly -- I want to be able to have a working relationship with every director. I mean, come on. I'm not crazy. If we're going to be a team, we got to have a good working relationship. Now I don't want to dwell on that 'cause that's not the issue. Commissioner Carollo: Mr. Chairman. Chair Dunn: Yes, sir. Commissioner Carollo: And thank you. And I'm glad you say -- stated that that you don't want to dwell on this. To be honest with you, first of all, I think you know me good enough that if I really thought there was some financial issue in the police department or so forth or it does really come to light where we're seeing numbers, I think you know me good enough that -- know that I'm not going to stay quiet. I'm going to speak and I'm going to speak my mind and I'm going to speak tough. But let's just recap what happened -- which I really thought it wasn't healthy, to be honest with you, and it was right in the -- right after a conversation that I thought was very healthy. I thought it was a debate that was very healthy, and we did something productive out of it. We established a resolution for the Manager to bring us every Commission meeting all the new hires with all that. I thought that was very productive. Now remember, this was a pocket item now in the middle of my discussion items and I yielded. We had no previous notice that this was going to come up, at least I didn't, and they start throwing numbers back and forth. I don't know what numbers are right, you know. We're saying June numbers that haven't been published. She's coming with May. And the bottom line is, I just can't -- I can't -- there's -- City of Miami Page 52 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 listen, although I believe there's many things that I've established in this Commission, but one of the things that I've established is, listen, I don't jump the gun. I want to see the hardcore numbers, not just he -said, she -said. You know, I asked the budget director to come before us and see if we are still within budget, even though I knew that seven million for next year because of this new revenue stream that isn't coming in, but what about this year? And that's why I asked. And she said, yeah, this year is going to be four or five. Are we still within budget? She said yes. I am not going to react on hearsay. I am not going to react on numbers that haven't been verified So that's why I've held back. And I understand your frustration. I understand your frustration. And I will admit, although it was never as bad, think about if they named him City Manager. Think about that. I didn't have a very good relationship with Johnny, and it was obvious. I mean, some of the recommendations were just -- I thought were horrible, and still, they named him City Manager. What did I do? I worked with the guy. And let me tell you something, I am proud to say that we are building a very good working relationship, you know. All this stuff with the Marlins stadium we spoke about, guess what? Johnny was right there. Alice was right there. I mean, it was a team. And we put everything to the side. We used good faith, and I have to admit, you know, we're working very good together. Chair Dunn: And -- Commissioner Carollo: So think about that. Think about if they named the police chief City Manager, you know. And I guess what I'm saying is, believe me, I know your frustration. I hear your frustration, but it can't be generated this way to the Commission because what just happened here, you know, there was nothing that I could identify like, yes, you're right. He is over his budget. There is no plan in sight. Then you start seeing me really acting -- and come on, Commissioner. You know me. I will not keep quiet, you know. If that would occur, I will not keep quiet. I will state my mind. And everything that I stated at Monday's meeting, could I have been more diplomatic? Yeah. But the truth of the matter is, it is what it is. You know, it's not erroneous information. Maybe you want to -- you could portray it one way or another. Maybe I could have been more diplomatic. But the truth of the matter is, the numbers are right of what I said. Now, you know, even -- which I respect you as the chairman of the CRA -- Overtown CRA -- think about it. Three of us up here don't have a CRA and our areas are very needy, you know. Our areas are very, very needy. So you know, even with fairness, is it really fair for our areas? I'll tell you what. One of the first things that I thought of when I came here, I was going to push for a CRA because East Little Havana needs one. I spoke to the County Commissioner. I mean, he was so for it that I'm not even going to depict how he spoke to me, but yes. And he told me, I will push in the County. Frank, we've got to do this and so forth. However, I thought, you know what, what may be great for my district may not be good for the City as a whole, and I also have to look at the City as a whole because the truth of the matter is that money, that TIF revenue that's going to go up, it's not going into police. It's not going into fire, solid waste. So I made a decision and I told the County Commissioner in that area no. You know, at this present time, you know, with the financial situation that we're facing, I don't think it's good because the City as a whole is going to suffer. That's the decision that I made. But when we speak about fairness, again, you're the chairman of the CRA. You're also the -- you're district Commissioner. So on two separate fronts, you know, yes, we as a committee -- as a Commission have chosen, even though it's not written, but yeah, we've practiced that the district Commissioner, the chairman of the CRA -- and I don't want to say double dip or so forth, but you know what -- you understand what I'm saying. On both occasion, we yield to you. But still, some of these numbers, I just can't, you know. Some of these salaries, I just can't approve this. I mean, listen, even the phone. The phone, realistically, the way you've consolidated and you said give him what everyone else gets, it's actually still less than these two put together when you add them up, the two line items for the phone. So again, everything that I have said was legit. I could also tell you it was in good faith because I'll tell you what, paying three attorneys, possibly four attorneys, is not going to cure slum and blight in Overtown. So believe me, what I'm trying to do is put more money into the Overtown area. That's what I'm trying to do, make sure that it goes more into projects. And you know, again, I'm not going to prolong this meeting, you know. I will yield to the will of this City of Miami Page 53 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 Commission. However, I respectfully, you know, let you know that, you know, I'm going to vote against. Chair Dunn: All right. Commissioner Sarnoff. I mean, Commissioner Suarez. Vice Chair Suarez: It is late. Commissioner Sarnoff. What a compliment. I'm sorry. Chair Dunn: Thirty -- twenty years ago. Vice Chair Suarez: I think I, you know, can understand some of the Vice Chairman's frustration living in a district that doesn't benefit from a CRA and the work that really goes into being a CRA board member. It's a lot of work and we do it because, you know, it's our responsibility. If this were a vote on a carryover balance, I would vote no, I'll be honest with you. I mean, if this were a vote based on -- because we have the same issue in Omni. We have a huge carryover balance. If our vote was based on the carryover balance, I'd vote no for both the budgets. But the fact of the matter is we inherit -- and I hate to say that because it does sound -- sometimes it sounds wrong to say that we inherited something, but the fact of the matter is the carryover balance when we took over was roughly the same amount of money, maybe a little bit more. Mr. Bockweg: It was a little bit more. Vice Chair Suarez: Right. So, in fact, since we arrived, we've started to work down the carryover balance. And it is very disturbing, I think, to us. We've been managing it for about a year and we've had two executive directors in that time. And you know, I do want to see significant progress on that. I think that is something that, you know, we are -- we're still putting into place the controls to make sure that the money that we spend is being spent appropriately. And we -- so we need to do that all at the same time, like sometimes we stop -- we slow things down or we stop them because we think, look, this is not the right direction. This is not the right way to go. So, you know, it's kind of a catch-22 sometimes. We're slowing things down, we're stopping things that we don't think are correct or proper, and then at the same time, we want to get that money spent, which I think is -- and get it on the street so that it actually benefits the residents of the different CRAB, which is what these entities were created for long before -- in fact, maybe even before I was born. No, not before I was born, but long before. So, you know, I share the Vice Chairman's frustration on the carryover balance. I'm going to vote in favor of this budget because -- out of respect for some of the comments that you made today, Chairman. You know, I share his frustration. If I were just to vote for the -- on the carryover, you know, I -- I'm yielding on my own stuff because I'm also -- you know, I'm a stickler for the phone allowances. I'm a stickler for the car allowances. I mean, I could really dig in and try to, you know, really make a case and I have, you know. And I was right there with the Vice Chairman, you know, fighting on all these issues. I'm going to yield, okay, and I'm going to support the budget. But you know, we need to right this ship and we need to do it this year and we need to get, you know, a plan where this carryover balance starts really, really coming down and we start to see that benefit for that community. Chair Dunn: Thank you. Commissioner Gort. Commissioner Gort: Let's look at it this way. The -- I've seen the CRAs for a long time. They have not performed as well. Like you said, all of us have been here about a year. I think in a year we have seen some changes. We have seen some improvements within both districts. Personally, I've seen it and I be going in both districts for a long time. What I would like to see is the carryover -- my understanding is we got to come up with a plan how we're going to spend that money. I think the Omni's got some expenditures, some progress that has been done within the Omni. I think we'd like to see the same thing in Overtown. I think right now in City of Miami Page 54 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 Overtown/Park West you have created certain services to help the community, to educate the community and to make sure they can get them jobs. But I think the $25 million carryover, you've got $10 million project you're coming up with. You also have the green -- In other words, I would like to see a master plan. I've seen 30 different master plans and they were never carried out because there was never funding for it. I think we have the funding right now. We should put that master plan together and let's do it. It's about time that we do that. And I don't have any problem. I will vote for the budget. Chair Dunn: Thank you. Commissioner Sarnoff. Commissioner Sarnoff God it's late. It's all been said. You know, I'd love to see us -- I like to see 5-0 votes, I really do. I think it sends a unified message. If it meant taking out one of the legal counsel, if it meant changing a couple things to get Commissioner Carollo's vote, you know, I'd certainly support that. I like the fact that we walk in a room, we walk in together, and I'd like to try to get there. Is there any way of getting there tonight? Commissioner Carollo: I think it -- let's just go with a 4-1 and we'll still walk unified and so forth. It's just a 4-1 vote. It happens here and there. You know, I appreciate you wanting to, you know -- but you know what, it's late. Let's just -- Commissioner Sarnoff.- Okay. Commissioner Carollo: -- move forward. It appears like, you know, it's going to pass 4-1, so let's just go that route and, I don't know, take it up in Commission or -- during Commission meeting or something. I don't know. But let's just go that route. And by the way, there's something that I do want to say that I don't think I've said before. And I just want you to know that according to HUD (Department of Housing and Urban Development) numbers -- and you could see by distribution of CDBG (Community Development Block Grant) and so forth -- as far as poverty, as far as need and so forth, my district is right there right behind yours. And they're not my numbers. Look at HUD numbers. Look at the CDBG, one that goes to funding for needs and so forth. You'll see East Little Havana is in dire need and they're not my numbers, but you know -- Chair Dunn: I respect that. I'm going to pass the gavel to -- There's already a -- I'm going to pass it to -- fictitiously pass it to -- figuratively, rather, pass it to Commissioner Suarez. I would like to make a motion, in light of what was said, to see the executive director receive a consolidation on his phone allowance of $200 a month, receive a car allowance at $500 a month, and be reimbursed only $1, 000 for last year's car allowances, inclusive of the budget. Vice Chair Suarez: There's a motion. Is there a second? Commissioner Sarnoff. Second. Vice Chair Suarez: There's a second by Commissioner -- Board Member Sarnoff All in favor, signify by saying "aye." Commissioner Gort: Aye. Chair Dunn: Aye. Vice Chair Suarez: Aye. Commissioner Carollo: No. Todd Hannon (Assistant Clerk of the Board): As amended. City of Miami Page 55 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 DISCUSSION ITEMS 11. 11-00671 12. 11-00672 Vice Chair Suarez: Yes. Chair Dunn: Yes. Vice Chair Suarez: Register -- Commissioner Carollo: Yeah -- Vice Chair Suarez: -- Commissioner -- Board Member Carollo as no. Commissioner Carollo: -- register me as a no. Vice Chair Suarez: Thank you. Chair Dunn: Thank you. Commissioner Carollo: Register me as a no. Chair Dunn: Thank you. Mr. Bockweg: Thank you, Commissioners. CRA DISCUSSION DISCUSSION ITEM ON CITY YEAR. File # 11-00671 07-25-2011 Cover Memo.pdf NO ACTION TAKEN Pieter Bockweg (Executive Director, Community Redevelopment Agency): There is a presentation due for the next item by City Year, but I believe they have left, so there are no more items for Southeast Overtown/Park West, Commissioner. Chair Dunn: Is there a motion to adjourn this meeting and go into the --? Commissioner Carollo: So move. Vice Chair Suarez: Second. Chair Dunn: Southeast Overtown/Park West meeting is adjourned. All in favor, let us -- there's a motion and a second. All in favor, let us hear by saying Eye." The Commissioners (Collectively): Aye. CRA DISCUSSION EXECUTIVE DIRECTOR'S PRESENTATION. File # 11-00672 07-25-2011 Cover Memo.pdf File#11-00672 07-25-2011 Activity Report July 2010-July 2011.pdf DISCUSSED City of Miami Page 56 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 Chair Dunn: At this time, we're going to ask -- we're going to go a little bit out of order. We're going to ask our executive director, Mr. Pieter Bockweg, if he would give us a presentation of the year in review. Pieter Bockweg: Good evening, Commissioners. Pieter Bockweg, executive director of the CRA (Community Redevelopment Agency). I wanted to provide not only the Board but also the public with a year in review. Believe it or not, it's been a year since I was appointed as the executive director of the CRA, so time flies when you're having fun. But I at least wanted to make sure that everybody here is aware of how much we have done and where we have gone in the last year. Now as you recall -- and Commissioner Carollo just touched upon it -- one of the biggest issues that I've had and concerns not only that I've heard from the Board but also the public is why such a high carryover fund balance. What is the problem? Why are you not spending that money? Well, I can tell you that it is the culture in the CRA to make sure that we pay as we go, meaning that we want to make sure that we have the money in the bank prior to commencing a project. We don't want to be stuck in the situation where we end up starting a project but then do not have the money to complete it. So as you will see in a presentation that I will (UNINTELLIGIBLE) to you this evening, it will kind of give you an idea of the things that we have done. The projects that we have completed within this year is -- and as you can see -- and I think you can follow along with the handout that has been provided to you -- the Northwest Ist Avenue resurfacing, the Ward Rooming House, which will ultimately look into becoming an art gallery or some sort of space to be used for the community, the 9th Street Pedestrian Mall. That is phase one of an overall bigger plan which we'll be presenting to you a little bit later on this evening to kind of show you how that will tie in to phases two, three, and four. As far as the business assistance, we have the corner store, where we provided $5, 000 to Jerry's and Joe's Pizza, which actually had its soft opening this past week, and the House of Wings, which will be opening up very soon. Job creation, one of the things that were completed -- and remember, the reason why it's up as a completed project is because it is a reoccurring grant that we provide to the Hospitality Institute, but that is one of the grants that we have completed this year as well for job creation. Quality of life, the Poinciana Village, Northwest 7th and 8th Street, the planters that we had put in to make it more pedestrian friendly for all the people walking downtown and going to events. And you know, as part of the safety issues, we also implemented a project where we doubled the wattages for all the lights, from 6th Street all the way to 11 th Street, from Miami Avenue to Biscayne. And that we feel is an important aspect because we want to make sure it's safe for the community to walk around in a lighted area. As you can see by the pictures, these are some overviews as far as what they looked like before and after; the after picture, of course, the projects that have been completed this year. Now the projects in progress. Like I said, when we -- when I was appointed one of the biggest issues is really get moving, get things done. And these are the projects which I want to present to you which we are moving along and are in some sort of way or fashion in motion. We are putting out a bid for the 14th Street streetscape, meaning from the railroad tracks all the way to 7th Avenue, which is in conjunction with the Omni side. The Northwest 3rdAvenue streetscape, which is an extension of the current streetscape project, which was completed, but it ends at 14th Street, we want to extend that past 14th Street to 20th. The Overtown greenway, which is a -- the greenway which was approved -- the money was allocated last month and this month -- on this month's agenda, you'll see the RFP (Request for Proposals), which we've issued for the overall approval to get the project going. And the parking facility which we'll be building on the corner of 3rdAvenue and 9th Street, which is in conjunction -- and again, is also on the agenda tonight but is also in conjunction with the Carver development, which is also on the agenda. Public facilities, we started moving and we've actually started with the rehab of the Overtown Community Center, which is known as St. Ebenezer Church, which is on the corner of 3rd Avenue and 11 th Street. The overall goal there is to really create an area for the community to attend for community events as well as a computer lab on the basement floor for the community to use. Gibson Park is underway. There was some lapse in construction due to permitting, but from my understanding, that will be -- the permits will be in place if not by the end of this month, the beginning of August and construction will commence for the overall completion. I have been told that they will meet the deadline -- if not meet the deadline, be like a City of Miami Page 57 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 month or so off the overall completion of that project. And of course, the Frederick Douglass Elementary school, which is something that the Board has approved for me to go ahead and start negotiations with the School Board, which is the wonderful school we are at tonight, for the overall redevelopment of that. Affording housing -- one of the items on the agenda is a 1201 Northwest 3rd Avenue location. If you recall, when I started I think the best way for us to really get projects going is leveraging what we own and what we control. And this is a land that the CRA does own. This is an item that is on your agenda, which I hope you will approve, to provide some needed affordable housing, as well as some retail and commercial space on the bottom. Included in that proposal ultimately will also be the relocation of the library, which is currently at Gibson Park. We will be moving that across the street. The 801 Northwest 3rd Avenue, which is, again, an item on your agenda, which will also provide some affordable housing, and the 1300 Northwest 3rd Avenue, which is a rehab, which is close to completion for also affordable housing. And you'll see some pictures associated with those, what they look like now and what they will hopefully look like in the future. Going along with the projects in progress, all these projects you see here, Two Guys, Carver, Joe's, House of Wings, multiuse outdoor facility, which is -- we all know as the Grand Central multiuse facility which was awarded $200,000 to create a multiuse facility, a park for the residents and whatnot, and Folk Life Friday. All these we believe are important aspects. Every single one of these are job creating activities. We will not know the full effect of those job creations until, of course, we have the grant monitoring kick in for these, but these projects are all going and moving forward, some of which have already opened and are operating. Job creation. The projects you see here, which are six, Gibson Park, Camillus House, Hospitality Institute, summer youth employment program, Overtown Enhancement Team, and the UM (University of Miami) Life Science Center. Now let me just preface the UM Life Science Center. There is no agreement in place with the UM Life Science Center. We are still in negotiations. We are still discussing that. We are closer to discussions what I think will ultimately meet the needs of the community, but there are no -- there is no contract. However, they have shown and provided information that they have hired people from the community. With the exception of Camillus House, we have not gotten those complete numbers, but all the other projects here, the total job creation we're anticipating is 322 jobs. And that is just current. That is not continuing. For example, the OF [sic] Life Science Center, there will be a reoccurring job, and we're negotiating that as well as long-term employments, as well as some scholarships in place for students within the Overtown area. And of course, the Hospitality Institute is a reoccurring grant and they have accepted the first quarter 149 people from Overtown, and we consider the program to be very successful to really get people placed in the hospitality field. And the next slide, you'll see some more photos of hopefully what future projects are looking like now and what they will be looking like. The next slide again is the historic preservation for projects in progress. The Black Police Precinct, we have recently taken that over from the City of Miami, and we're looking to really make and bring that facility back to life and really have it be used for what it was originally thought to be used. And then the Culmer Overtown Library, which, again, is part of what I said with the -- from Gibson Park going into the 1201 3rd Avenue development. Quality of life, Camillus House, 7th Avenue campus, that's moving forward very rapidly. We're very excited about that. That will generate jobs. Again, I do not have the accurate number at this time. I will provide that to you as soon as I receive it, but that project is up and going. We amended their grant agreements. It got passed at the County budget and everybody is very excited about that and moving forward. And of course, the Overtown Enhancement Team, which is the creation of the Board to really hire the people from within the community to do similar to what the DDA (Downtown Development Authority) does with the debt service and where they have people within the community take care of their community, which I think is a great asset. Now operationally, these are a few things that we, in the Administration, have installed to what I think is ultimately a more efficient and a more productive way of working. If you recall, I did hire a communications director 'cause I thought making sure that the public is notified and getting the word out exactly what we're doing is a very important aspect of the CRA. With that department, we have revamped the CRA logo, which of course is behind you, along with a scholarship for a young man from Booker T. Washington, who now has a scholarship for his -- for the next four years of his school, with a limit of $500, of course, but it City of Miami Page 58 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 is a scholarship. We also established the electronic and print newsletter with weekly distribution cycles, so we thought it was important that the public are aware of the things that are going on. We distribute these newsletters electronically through e-mail (electronic) and for those individuals that do not have an Internet capability, we do hand them out in various locations within the community. And just to be aware to show how we make sure that we keep the community in touch, most of the locations chosen that we distribute them are suggestions of the Overtown Advisory Board, who of course is the arm to the community. Branding, again, is the new CRA logo. We have installed, and you will see going down 3rd Avenue, different signs that has the logo on it, that shows the project. We think it's an important aspect of the CRA to make sure we brand ourselves to see -- and to show the community what we're doing and to make sure we, you know, quiet some of those perceptions that, you know, nothing is actually really going on. We have -- you know, the performance -- the overall performance I thought was a very important aspect of the operational side. We implemented a grant monitoring system to make sure that the grantees comply with the grant. This is the mechanism which we use to enforce the contract that we and ultimately the Board approves for the grantees. There are monitoring forms where they need to fill out to make sure that those goals are being met and which I think is extremely important to make sure that the CRA's being fiscally responsible and accountable for the money that ultimately we spend in different projects and grant opportunities. Along with that, we've also established a grant application schedule which really kind of shows, you know, when the grant applications come in, how long it takes to review, when they're going out, how much money the percentage is of the overall budget, et cetera. I think it's important that we make sure we get those grant applications out as quickly as possible when they come in for review. And we're close to within 30 days to get them out and processed. Cost savings. We did several cost savings, and one of those we will be discussing today with the lease agreement. But just to give you an idea of the overall cost savings which the CRA has done this year -- and I don't mean this to be as a joke or anything, but we did save 64 percent with the new contract for the copy machine, which obviously is not that much of a savings, but it is a savings after all. The new media director, which I have hired in place of David Karsh, is coming in at close to $10, 000 less in salary, which is an overall savings. The CRA office rent, which I will be describing in more detail, but there is a net savings of close to $26, 000 there. And of course, also the street lighting contract which we renewed, which had an overall savings of 53 percent with lower maintenance, which the Board ultimately approved. We streamlined projects like the film and entertainment capital outlay program and the art exhibit, which of course is a big, important aspect of Art Basel and making sure we attract people to the community and to visit the community. Now as far as making sure that ultimately the CRA is doing what it's supposed to be doing and getting projects out, here are a few of the solicitations that we have issued to this point and some of which is on the agenda tonight, which I hope for overall approval. The redevelopment for the parking lot on 3rd and 11 th -- 3rd and 9th Street, I'm sorry, 1201 3rd Avenue, which, again, will provide the commercial and affordable housing, the Overtown Enhancement Team we put out to bid, and then we had a response and it was assigned. The RFQs (Requests for Qualifications) that we have done is for the greenway, the Northwest 3rd Avenue phase two, which will be coming to you on the next CRA meeting in September or October because obviously we do not have a meeting in August. The funding availability for the media and entertainment grant proposal, we put that out, as well as leasing opportunities for two bays within the Arena Square building. Other -- I think it's important to know one of the other things that we will be doing in the upcoming year is putting out a lot more RFPs as it relates to the properties that the CRA owns. I'm a firm believer that that is the easiest way and the fastest way for us to get projects going, leveraging our land that we control and own and making sure that obviously we leverage that money to get the most bang for our buck, so to speak. As a summary, this year we have renovated or are in progress 136 affordable dwelling units. The total grants proposal coming into the CRA for the Omni -- for the Overtown only -- and I think that needs to be specified -- for the Overtown -- Southeast Overtown/Park West CRA is 60 grants for a total of $43 million. We have issued, awarded, or will be awarding $4.1 million of those grants. And the job creation, as we had said earlier, were not only the list of six that we had provided, but like I said, at a minimum, 322 jobs for the community. That is my presentation. I City of Miami Page 59 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 am welcome to answer any questions you may have. Chair Dunn: Yes. Thank you so much. At this time, Chairman Suarez. Vice Chair Suarez: Thank you, Mr. Chairman. I think that we all share the Vice Chairman's concerns regarding the escalating balance -- carryover balance. One of the things that we talked about when you and I briefed on the budget was maybe something that we should discuss as a Board, which has to do with leveraging. Obviously, the Commissioner -- Commissioner Sarnoff is a big proponent of leveraging, which I agree with. I think one of the, I guess, detriments to leveraging is that -- or contingencies in terms of our projects -- and maybe leveraging isn't the right word. Maybe contingencies is the better word. -- is that when we give out a project, if there are several contingencies and our portion of it is only one part of it, that could mean that we, in essence, lose control of a project and a project can take an undetermined amount of time. So I think something that we should discuss as a Board is to what extent do we want to have -- be giving out projects with several contingencies versus us picking projects that we can finance, that we can control, like we do, for example, with our CIP (Capital Improvements Program) projects. We have a project. We have funds dedicated for those sources. Sometimes there's several pots, but they're funds that we already have established and we dedicate those funds to that project. We know that project's going to go forward. We know it's going to be completed and then we can track that progress. You know, I think we all agree that $25 million is not a healthy level of carryover. It has to be, you know -- I mean, I suppose there would be some amount of carryover 'cause there's some amount of TIF (Tax Increment Fund) that's coming in that may be slightly faster than what we can construct or that what we can appropriate or what we can -- maybe appropriate's not the right word because we appropriate it all, but what we can spend. Mr. Bockweg: Right. Vice Chair Suarez: But certainly, 25 million is too much, and it's something that we have to, I think -- going forward, this Board has to discuss as far as how we want to utilize this money. Are we going to continue to utilize this money giving away projects that have contingencies in them that essentially, you know -- I mean, I agree with the leveraging component of it. If we can get a project that we can just use a certain amount of CRA funds and then have other sources come in and supply the, you know, remainder of the money, obviously that's something that we should be encouraging. But if those contingencies aren't coming to fruition, then you know, are we getting those projects back? What are we doing? Mr. Bockweg: Well, Commissioner -- and we did have a lot of conversations about that during our briefings. And I think -- and let me just start with and differentiate two items. First, in reference to the CIP allocation of projects -- and we had discussed this -- that is -- the progress of the CIP, that is the same for the CRA. These are projects that we fund 100 percent. These are projects that we have control over the timeline, you know, notwithstanding permitting and things like that which everybody is subject to. But we also have those deadlines within those projects that we fund 100 percent of the time. In reference to the actual loan process or the -- and I think that's -- and I think it's a way that you're bringing it up to really get a hold of that $25 million carryover fund balance. You know, I think it's a big important aspect of the CRA to incentivize people, companies, corporations, individuals to relocate into the CRA. You know, business 101, you have the jobs, people have the money in their pocket, and you know, 85, 90 percent of the time they're going to spend the money within the community that they live, which will only create a domino effect of course. And I feel sometimes having -- you know, looking at that loan that we spoke about and I thought about it afterwards, I think creating a loan system will ultimately not provide the incentives for those companies and developments to come in. I think there's a lot of ways that we can put timelines on these grant agreements or these developments that they're leveraging on our property. There are timelines that you can impose on myself saying, you know, Pieter, you need to come back here within 90 days and present to us a development City of Miami Page 60 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 agreement. If that doesn't work, we move on with another developer. You know, we can put those mechanisms in place, but I think it's important that, overall, we incentivize the people to come and build and work and live within the community. And providing that incentive, I think, is a very important thing. Creating an extra cost to those people to come in there by way of a loan and, you know, receiving some percentages and principle and interest of course on that loan payment I'm afraid won't create that incentive. And I think it's more valuable for us to create the opportunities for the community than create a interest payment of you know, 2, 3, 4 percent. And that's not to mean, Commissioner -- which I agree with you wholeheartedly -- that we can't create milestones or we can't create requirements within those grant agreements when the project gets approved; for example, the one that's before you tonight. Vice Chair Suarez: Right. Mr. Bockweg: I'm all for that. And I want to make sure that -- and I'm willing to work with whatever the Board directs me to do as far as a timeframe, and I think that will also get those projects moving faster ultimately. Vice Chair Suarez: Yeah. And that's not really -- I mean, I don't think that the loan -- that's not really what I'm talking about. What I'm talking about is there's some projects that we can finance and that we can finance a large portion of it and obviously that would diminish the amount of total projects that we could do. If we were to -- let's say to say for the 25 million, we're going to self -finance all these projects. Obviously, we'd have less ability to finance more projects. But the reverse is also true. If we're trying to leverage that money ten to one, that would be fantastic, obviously. But if that means that, you know, 80 percent of our projects are going to be up in the air for some undetermined amount of time that we have no control over, then we're going to continue to accumulate this carryover balance. They're going to be allocated to projects, but we're not going to see progress. Mr. Bockweg: True. Vice Chair Suarez: And I think what's frustrating is sometimes to the community is not seeing the progress and not seeing the dollars on the street so -- Mr. Bockweg: And rightfully so. I agree with you. And then that's why myself -- Vice Chair Suarez: Maybe we should talk about the mix as a Board, you know, and that's what I'm getting at. Maybe we should talk about the mix. Maybe we can control to a certain extent our pipeline and say, look, these are a certain percentage of our projects that we're going to finance, we're going to get going, we're going to put that money on the street, and then there's some other percentage of our money that we're going to leverage, you know, and -- which will be a little bit more speculative in terms of what the timeframe is. Chair Dunn: Commissioner/Chairman Sarnoff. Commissioner Sarnoff. Yeah. I just want to give a little explanation on leveraging where we've been, where you guys find yourself now, and hopefully, where we go. When Ifirst came on the City Commission, CDBG (Community Development Block Grant) had a procedure where they would actually loan the money to the developer before the developer even went to get a bank financed loan. And what happened is they would sit with the money, they couldn't get their bank financing loan, and they went nowhere with these projects. And every three years, they'd come in for an extension and this and that -- exactly. Then what we did as District 2, which is now a CDBG procedure, is they have to have a simultaneous closing. They have to demonstrate to us that if they're going to have a 10 million bank loan, a $4 million CDBG grant, or even a CRA for that matter, that that all occur at the same time so that everybody understands their financing package is in place and that is leveraging. So -- but there have been a number -- and City of Miami Page 61 Printed on 11/22/2011 SEOPW Community Redevelopment Agency Meeting Minutes July 25, 2011 ADJOURNMENT understand, there's a project that you could all research very easily. It's called Jazz Village. It's a project I voted against, and yet, Jazz Village required us to acquire two pieces of property. We now are the acquirer and owner of two pieces of property and Jazz Village did not get its HUD (Department of Housing and Urban Development) financing. So we're sitting, having relied upon a developer and not gotten anything for it, with two pieces of property that are not valuable pieces of property when budgets require discretion. None of you sat here for it. I didn't vote for it. Yet, that is a clear description of how you don't proceed forward as a CRA or even for CDBG funding. Chair Dunn: Any other questions, comments? And I just would add a couple of points. That basically 100 percent financing totally, whatever way it's comprised or composed, would move the project. And what we need to do probably is look at limiting how we allocate the funding. But once people have the money in place, however be -- that's done, it is what moves the project. But one thing 1 wanted to sort of bring out, I want to personally thank you, Mr. Bockweg, because -- and I have a copy that I'm going to loan -- I'm going to trust Reverend Willie Williams with this because oftentimes, and rightfully so, people are raising the question what are we doing -- I'm going to loan this to you, now -- in Southeast Overtown/Park West, and I just want to thank our executive director, thank this Board. And I want everybody to look at me and read my lips clearly. This is progress that has been done in one year, a little over a year. So, you know, you could hear all the riffraff you want to, but the painted picture is right here. I'm going to give this to you and if anyone comes by the -- Bobby, you can come on up. I'll have my staff person to give it to you. And we'll hopefully have some more to disseminate out into the community. This is it. This is it right here. This is where the action is, the jobs, the construction, moving the projects. We've had the support. Yes, we've disagreed and that's going to continue to happen, but ultimately we've been agreeable. And what probably disturbs me more than anything is to hear someone say ain't nothing being done. And I'm going to say it ebonically: Something is being done. The proof is in the pudding, and we are just getting started. So I want that to go out because it's so easy for so many other things that go out that don't have merit to it. So I can't thank you enough for giving us this presentation at a glance. It breaks down the numbers. It breaks down the employment, the goals, the objectives, what's in progress, what's been completed So it's right there in our faces. No one can go around saying, oh, nothings been -- something is being done probably more rapidly than ever in the history of the CRA. So I want to put that on the record. So I want to thank you, thank this Board for your support thus far, and in one year. This is one year, not two years, not three years, not four years, but one year. And it's not as -- and we not even scratched the surface yet on some of the things that are forthcoming. I do know that there are things in the community that we want to improve, that we are going to improve, and I appreciate your enlistment and your support and even your disagreeing, but let's look at the truth. I got to preach a little bit. You know the truth and it will make you free. Any other questions or comments? Thank you so much. I guess you might as well stay there. Mr. Bockweg: Thank you. Chair Dunn: Thank you, Mr. Bockweg. The next thing we want to look at is out of order and then we will go into order of what it is. Because this is one of the things that is disturbing to me, that is -- been a issue ever since there was a CRA, right, wrong or indifferent. I'm not saying it was wrong. Some arguments have been valid. And hold me accountable, as I said from day one. But you look at what has happened in one year and these things are not easy to accomplish because there are legal issues that we have to deal with, there are logistic issues that we have to deal with, there are timeframes that we have to deal with. It's just not, you know, abracadabra, here it is. No. It takes time, but we are working. We can do better and we will do better. The meeting was adjourned on Thursday, July 28, 2011, at 11:13 p.m. City of Miami Page 62 Printed on 11/22/2011