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HomeMy WebLinkAboutSEOPW CRA 2016-03-30 MinutesCity of Miami City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Meeting Minutes Wednesday, March 30, 2016 5:00 PM Camillus House 1603 N.W. 7th Ave., Bldg. B Miami, FL 33136 SEOPW Community Redevelopment Agency Keon Hardemon, Chair Wifredo (Willy) Gort, Vice Chair Ken Russell, Commissioner Frank Carollo, Commissioner Francis Suarez, Commissioner SEOPW CRA OFFICE ADDRESS: 819 NW 2nd Avenue, 3rd Floor Miami, FL 33136 Phone: (305) 679-6800, Fax: (305) 679-6835 www.miamicra.com SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 Present: Commissioner Suarez, Commissioner Carollo, Vice Chair Gort, Chair Hardemon and Commissioner Russell On the 30th day of March 2016, the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency of the City of Miami met in regular session at Camillus House, 1603 Northwest 7th Avenue, Miami, Florida. The meeting was called to order by Chair Hardemon at 5: 08 p.m., recessed at 8: 07 p.m., reconvened at 8:15 p.m., and was adjourned at 8:19 p.m. Note for the Record: Commissioner Suarez entered the meeting at 5:10 p.m. ALSO PRESENT: Clarence E. Woods, Executive Director, CRA William Bloom, Special Counsel, CRA Renee A. Jadusingh, Staff Counsel, CRA Barnaby Min, Deputy General Counsel Todd B. Hannon, Clerk of the Board APPROVING THE MINUTES OF THE FOLLOWING MEETING: Motion by Vice -Chair Gort, seconded by Chair Hardemon, to APPROVE PASSED by the following vote. Votes: Ayes: Commissioner Russell, Chair Hardemon and Vice Chair Gort Noes: Commissioner Carollo Absent: Commissioner Suarez Todd B. Hannon (City Clerk): Excuse me, ladies and gentlemen. Excuse me, ladies and gentlemen; ifI could please have you silence your phone before the meeting begins. Thank you. Chair Hardemon: I'd like to bring this Southeast Overtown/Park West Community Redevelopment Agency meeting to order. Today is Wednesday, March 30, 2016; noting the presence of Board Members Wtfredo Gort and also Commissioner Carollo; and myself, the Chairman, Keon Hardemon; and Commissioner Russell is approaching at this moment, also. The first order of business is approving of the minutes from January 25, 2015 [sicJ. Is there a motion to approve those minutes? Vice Chair Gort: Move it. Chair Hardemon: Been properly moved. Is there a second? Chair seconds. The minutes from January 25, 2016 have been properly moved and seconded. Any unreadiness in the vote? Hearing none, all in favor, say aye." Board Member Russell: Aye. Vice Chair Gort: Aye. Chair Hardemon: Aye. Board Member Carollo: No. Chair Hardemon: Motion passes. Board Member Carollo: Mr. Chairman, I just haven't seen these. I don't have them, so that's why I would vote a iio, 'because I haven't seen this. Mr. Hannon: An e-mail is sent out before the meeting that contains the minutes for the meeting City of Miami Page 2 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 PRESENTATION 1. 16-00013 that's scheduled on the agenda, so I can forward that email along again if you would prefer. Chair Hardemon: Thank you. CRA PRESENTATION 2015 AUDITED FINANCIAL STATEMENTS. PRESENTED Chair Hardemon: Moving on to now RE.1. Clarence Woods, III (Executive Director, Southeast Overtown/Park West Community Redevelopment Agency): Commissioner, do you want to hear the presentation of the audited financial statements, which is presentation 1? Chair Hardemon: Oh, I'm sorry; I apologize. Yes. Miguel Valentin: Commissioners, good evening. Miguel Valentin, CRA (Community Redevelopment Agency) financial officer. I'm having Richie Tandoc -- he's going to be giving you the presentation as to how we came out on the financial statements for fiscal year 2015. At large, we obtained an unqualified [sic] opinion, and he will be elaborating more. Richie Tandoc: Good afternoon, Chair, Board Members. My name is Richie Tandoc. I'm a partner with Samson, Kline, Jacomino, Tandoc & Gamarra. I am the partner in charge of the Southeast Overtown/Park West CRA's audit engagement for the fiscal year ended September 30, 2015. Before I get into my brief presentation, I just want to thank Miguel and Clarence and their staff for their continued cooperating in assisting us in completing this year's audit; the agency, in cooperation with the City's Finance Department. I believe -- Miguel, did you provide them with a copy of the presentation, this presentation? Okay, you don't need that. I'll just go over some -- a couple of the highlights of the required communications and audit results for your September 30 audit. We did issue an unmodified opinion, which is a clean opinion, which is dated December 4, 2015. We also issued a report on the agency's internal controls over financial reporting and on compliance, and other matters for the year ended September 30, 2015. And we noted no material weaknesses or material noncompliance issues therein. With regards to significant and/or unadjusted audit adjustments, we have no significant audit adjustments during the current year's audit. Any adjustments that were made were made by Miguel, the finance officer, and approved by us. With regards to fraud and illegal acts, we are not aware of any fraud or illegal act that occurred during that fiscal year involving senior management or any fraud or illegal acts involving any employee that would cause a material misstatement of the financial statements. With regards to independence, we are independent of the CRA and the City. We have not performed any non -audit services for the agency during the fiscal year ended September 30, 2015 other than assisting in the preparation offinancial statements. With regards to the management letter, we have issued a management letter in accordance with the rules of the Auditor General of the State of Florida, which is also dated December 4, 2015. And we did not report any significant deficiencies on material witnesses therein. If you have any specific questions about the finance statements, I'd be happy to address those. Chair Hardemon: You're recognized, sir. Board Member Carollo: Thank you, Mr. Chair. Thank you, Mr. Chairman. And welcome, Mr. Tandoc, and thank you for the work that you all did. I have one question, and I'm going to recommend that in the future, whenever we have a audited financial presentation that the audited financial are put into the backup material, because it's not there; and Mr. Woods, we mentioned City of Miami Page 3 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 that. At the same time, we had the discussion today, and it was stated that the annual financial statements were online. They are not, so -- Mr. Valentin: Yes. I acknowledge your comment, but I think early January, we hand -delivered the audited financial statements to the taxing authorities, along with the Commissioners. In the event that you need an additional copy or something, I will be -- Chair Hardemon: So then, what we need to do then, next time, if you have it on the agenda, provide another copy of it. Mr. Valentin: Not a problem. Chair Hardemon: The point is that -- Mr. Valentin: I -- Chair Hardemon: -- with as many pieces of paper that we read -- Mr. Valentin: Yes. Chair Hardemon: -- every single agenda that we focus on -- not only just as the CRA, but as a City, those things kind of get lost in the shuffle. Board Member Carollo: Not only that, Mr. Chairman. It's not just about me, the Board Member; it's about the public. Mr. Valentin: Okay. Board Member Carollo: I know for a fact that unless I received that, which I'm not disputing that, you know, it was provided to my office -- Chair Hardemon: Okay. Board Member Carollo: -- and I did get to see it; however, it's not provided in the backup, so I don't know how the public is seeing it, and it's not online. So, once again, I don't know how the public is seeing your audited financial statements. Mr. Valentin: They -- we are posting them in our website, but -- Board Member Carollo: Are the audited financial statements, as of September 30, 2015, posted online right now? Mr. Valentin: It is my understanding, yes. Board Member Carollo: I went online today after I had the meeting with Mr. Woods, and I could not find them. Mr. Valentin: Okay. Chair Hardemon: Are they posted on the CRA's website and not the --? Mr. Valentin: Yes, yes. All our financial statements, along -- as well as the financial re -- the annual report, they are being posted in our website. Maybe that was an oversight. It's well taken, and I will follow your recommendation for the future. City of Miami Page 4 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 Chair Hardemon: See, what happens is, if you post it on this -- if you give us the backup here, you know that when the public wants to look at it for today's date, it'll be there. It'll be easily accessible, because they know that we're discussing that issue. Mr. Valentin: Okay. Chair Hardemon: So that makes it a little bit more convenient. Board Member Carollo: But, Mr. Chairman, twofold: I think it should be there as a backup to this; and at the same time, you know -- and I think you're disputing this, but I welcome anybody to go online now and see if those audited financial statements are there. I am telling you, after our meeting today, I went online; I could not find them, so -- Mr. Woods: We'll make sure; we71 make sure that they're posted as soon as tomorrow if they're not there. Mr. Valentin: Most likely, it was an oversight for my part and -- Board Member Carollo: Thank you. And with that said, I'm going now on memory on the one that was provided to my office. Mr. Tandoc, were there any management letter comments? Mr. Tandoc: No, sir, there were not. Board Member Carollo: With regards to providing theJnan -- the monthly financials, were there any issues regarding that; providing monthly financials to this Board? Mr. Valentin: Yes. There was a comment that from this point forward, the recommendation made by our external auditor is that we need to present a monthly financial report to the Commissioners. That was a practice that we were doing in the past. We modified slightly, because I was emailing the financial reports to you, to the Commissioners through email, but we were not incorporating that -- such a report in the agenda; but from this point forward, we're going to be doing it. Board Member Carollo: Okay. I mentioned that because it was something that I was totally against when you had that change that no longer be provided on the agenda; and at the same time, I think the auditors -- and I don't want to put words into their mouth -- but I think the auditors found that we weren't even receiving them on a monthly basis. The Commissioners were not receiving them on a monthly basis, and I don't know about quarterly. So I don't want to put words into your mouth, but, you know, it's something that, back when we had this change, I was totally against it, and I'm glad that at least the auditors now have corrected the issue, and I would hope that we will follow their recommendation. Mr. Woods: No problem; we will make sure that you get the full financial statements, documents, budget -- Board Member Carollo: Monthly. Mr. Woods: -- monthly. Board Member Carollo: Thank you. Mr. Woods: No problem. Chair Hardemon: Well, first, I do want to say to the executive director and to your leadership, to the -- everyone that's under you -- good job. The fact of the matter is that it was a -- what we -- City of Miami Page 5 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 RESOLUTIONS 1. 16-00156 used to be called Unqualified opinion,'but not it's un -- what is it? Unidentified Speaker: Unmodified. Chair Hardemon: Modified. Board Member Carollo: Unmodified. Chair Hardemon: Unmodified opinion. That is what the CRA continues to receive. That is a good thing; it shows that we're fiscally responsible. It shows that we're doing the right thing with the funds, and no one is doing anything illegal; especially when the hands are controlling the dollars that are responsible for the redevelopment of this community. So I don't want to send the wrong message. Board Member Carollo: Understood. Chair Hardemon: The message is that this CRA is doing what it's supposed to do and it continues doing what it's supposed to do, like any other organizations that are in the City of Miami and Miami -Dade County, so congratulations. Any other questions? Hearing none -- Mr. Woods: Thank you, sir. Mr. Tandoc: Thank you. Chair Hardemon: (UNINTELLIGIBLE). Thank you very much. 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 TAX INCREMENT FUND AND GENERAL OPERATING BUDGET, FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2015 AND ENDING SEPTEMBER 30, 2016; DIRECTING THE EXECUTIVE DIRECTOR TO TRANSMITA COPY OF THE AMENDED BUDGETS TO THE CITY OF MIAMI AND MIAMI-DADE COUNTY. File # 16-00156 Cover Memo.pdf File # 16-00156 Legislation.pdf File #16-00156 Exhibit.pdf Motion by Board Member Suarez, seconded by Vice -Chair Gort, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: Commissioner Russell, Chair Hardemon, Commissioner Suarez and Vice Chair Gort Noes: Commissioner Carollo CRA-R-1 6-0005 Chair Hardemon: Let's move on now to RE.1. Clarence Woods, III (Executive Director, Southeast Overtown/Park West Community Redevelopment Agency): Commissioners, Resolution -- the first resolution is a resolution of the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment City of Miami Page 6 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 Agency, with attachments, approving and adopting the CRA's (Community Redevelopment Agency) Tax Increment Fund and general operating budget for the fiscal year commencing October 1, 2015 and ending September 30, 2016; directing the executive director to transmit a copy of the amended budgets to the City of Miami and Miami -Dade County. Commissioners, as you know, in July, we present a proposed budget, which is not the actual budget; we do so in July, because we're a part of the City's CAFR (Comprehensive Annual Financial Report), and we have to have our budgets into the City before the City's budget hearings in September. So those budgets that you approved in July were proposed budgets. We have now received the actual increment, the actual revenues from Miami -Dade County; we received that in January. And now we can present you the actual budget, and that is what you have in this package; the actual budget, which is not that much different from the proposed budget here today. Board Member Suarez: Move it. Chair Hardemon: It's been properly moved. Is there a second? Vice Chair Gort: Second. Chair Hardemon: It's been properly moved and seconded that we pass RE.1. I'll open up the floor for public hearing at this time; and also, I want the record to reflect the presence of Commissioner Suarez, who is the movant. Is there anyone here that'd like to speak on the record about the item? Board Member Carollo: Commissioner -- Chairman. Chair Hardemon: Seeing none, I'll close the public hearing. Board Member Carollo: Real quick. I had a conversation with Mr. Woods. I received this yesterday. I don't think it's ample time for me to review the full budget and vote on it, so I will be voting /co." Chair Hardemon: Is there any further discussion? Seeing none, all in favor, say aye." Board Member Russell: Aye. Board Member Suarez: Aye. Vice Chair Gort: Aye. Chair Hardemon: Aye. Board Member Carollo: No. Chair Hardemon: Motion passes. 2. CRA RESOLUTION 16-00278 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ACCEPTING THE RECOMMENDATION TO SELECT MARCUS SAMUELSSON DEVELOPMENT GROUP, LLC ("MSDG"), AS THE TOP RANKED DEVELOPMENT FIRM TO DEVELOP 920 N.W. 2ND AVE. MIAMI, FL INTO A RESTAURANT/ENTERTAINMENT VENUE ("PROJECT"); AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE WITH THE City of Miami Poge 7 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 TOP RANKED PROPOSER TO PERFORM THE PROJECT; FURTHER AUTHORIZING THAT IN THE EVENT AN AGREEMENT IS UNABLE TO BE NEGOTIATED WITH MSDG, THE EXECUTIVE DIRECTOR IS AUTHORIZED TO ATTEMPT TO NEGOTIATE AN AGREEMENT WITH CRESCENDO JAZZ & BLUES LOUNGE, THE SECOND HIGHEST RANKED PROPOSER FOR THE PROJECT; FURTHER DIRECTING THE EXECUTIVE DIRECTOR TO PRESENT ANY PROPOSED AGREEMENTS TO THE BOARD FOR ITS CONSIDERATION, AND IF SATISFACTORY, APPROVAL AND AWARD; CLARIFYING THAT THIS RESOLUTION IS NOT INTENDED TO BE AN AWARD OF DEVELOPMENT RIGHTS OR TO OTHERWISE CREATE ANY RIGHTS WHATSOEVER IN ANY PROPOSER REFERENCED HEREIN. File # 16-00278 Cover Memo.pdf File # 16-00278 Backup.pdf File # 16-00278 Legislation.pdf File # 16-00278 Submittal -Jasmine Johnson-Proposal.pdf Motion by Board Member Suarez, seconded by Board Member Carollo, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: Commissioner Russell, Chair Hardemon, Commissioner Suarez, Vice Chair Gort and Commissioner Carollo CRA-R-1 6-0006 Chair Hardemon: Moving on now to RE.2. Clarence Woods, III (Executive Director, Southeast Overtown/Park West Community Redevelopment Agency): Resolution Number 2 is a resolution of the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency accepting the recommendation to select Marcus Samuelsson Development Group, LLC (Limited Liability Company) as the top -ranked development firm to develop 920 Northwest 2nd Avenue in Miami into a restaurant/entertainment venue; authorizing the executive director to negotiate with the top- ranked proposer to perform the project; further authorizing that in the event an agreement is not able to be negotiated with MSDG (Marcus Samuelsson Development Group), the executive director is to authorize -- is authorized to attempt to negotiate an agreement with Crescendo Jazz & Blues Lounge, the second highest ranked proposer for the project; further directing the executive director to present any proposed agreements to the Board for its consideration, and if satisfactory, approval and award; clarifying that this resolution is not intended to be an award of the development rights or to otherwise create any rights, whatsoever, in any proposer referenced herein. Board Member Suarez: Move it. Discussion. Chair Hardemon: It's been properly moved. Is there a second? Board Member Carollo: Second. Chair Hardemon: It's properly moved and seconded that we pass RE.2. 171 open up the floor for public hearing at this time. Is there anyone from the public that'd like to discuss or make a comment about this item? State your name and your address for the record, please. Jasmin Johnson: Good evening. Jasmin Johnson, 504 Northwest 54th Street. Good evening, Board and community. My name is Jasmin Johnson, and I'm representing my family: my father, John Johnson; my mother, Gwen Johnson; and my brother out there, Brandon Johnson. On behalf of them and myself we thank you for your review and consideration of our application for RFQ (Request for Qualifications) 1601. We submitted this proposal in good faith and with City of Miami Page 8 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 tremendous pride. It means much to us that we have qualified second, as we have yet in turn to public bids [sic]. Thank goodness for the guidance and support of the community who encouraged us to go forward with this proposal. After -- it's rare that the family of an insurance broker and real estate broker venture into the restaurant business, but this just so happened to be one of my mother's bucket list dreams. With the support of my father and my family, in 2010, we opened Crescendo Jazz & Blues Lounge. So that's why, when this RFQ came our way, I was overwhelmed with joy. This is the dream. As a young, homegrown African -American female, a graduate of Booker T. Washington Senior High School, Miami Dade College, and FIU Chapman School of Hospitality; as a small business owner, I've always wondered when the opportunity would rise again for people like myself to make a legacy for Miami. So I believe this is where we belong. I believe it was all meant to happen. We had to open on Biscayne Boulevard for over three years; a lease had to be purchased; and we had to meet the people we met to be right here. So as I am right here in front of you, I'm saying, here we are, a black -owned, homegrown brand; a brand with history; a brand who wants to be in Overtown; and a brand who affected thousands of people from Miami to Paris; a brand that created memories, saved marriages, and made new ones. Here we are, authentic Miami showing up. We want to bring back the dream of Historic Overtown, and what better way to start with the selection of homegrown investors? A victory for Crescendo Jazz & Blues is a victory for Overtown. We look forward to joining Marcus Samuelsson amongst other fabulous venues to help revive the heart and soul of Historic Overtown. Thank you again for the opportunity. Chair Hardemon: Thank you very much. Board Member Russell: Thank you. Vice Chair Gort: Thank you. Chair Hardemon: Is there any other person that'd like to speak at this time? Out of retirement. Al Crespo: Huh? Chair Hardemon: Are you out of retirement? Mr. Crespo: Oh, I just take temporary breaks to just get back in the swing of things. Board Member Suarez: Recharge the batteries. Chair Hardemon: Can you state your --? Mr. Crespo: Al Crespo. I just have a question. Is there any public money attached to this proposal? It doesn't seem to be -- Chair Hardemon: Mr. Woods? Mr. Woods: No. Mr. Crespo: Okay. Mr. Woods: There isn't any public money at this point that I know. Mr. Crespo: Okay, thank you. Chair Hardemon: Is there any other person that'd like to speak on the record? Seeing none, I will close the public hearing at this time. Discussion. City of Miami Page 9 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 Board Member Suarez: No, I'll go ahead and defer. I think I'm good. I mean, I think it's important that -- to note that this went through an RFQ process, and so there's discussion about, you know, whether or not, you know, CRA (Community Redevelopment Agency), on its procurements should be going through that. And I just wanted to recognize that in this particular case, and the Overtown CRA did do that. That's all. Board Member Russell: Mr. Chair. Chair Hardemon: There are many times that things go through RFQs within the Overtown CRA's -- Board Member Suarez: I know. I just wanted to -- just because that's a specific concern that's been addressed, I just wanted to highlight that; that's all. Chair Hardemon: You're recognized, sir. Board Member Russell: Mr. Chair, I'm glad to see Crescendo here. And I just had a question for the executive director, because I don't believe there's any backup documentation for Crescendo in the public documentation; is that correct? Mr. Woods: No, we didn't put it in this -- in the item because Crescendo is not the group that we're electing today to enter into negotiations with. They will be -- if we can't come to some agreement with the first or the top -ranked proposer, we will then engage Crescendo, but Crescendo's proposal, we have posted -- well, we can post all of -- Vice Chair Gort: Right. Mr. Woods: -- the proposals on our website, so everybody can see everybody that actually submitted. Board Member Russell: Right. I was just thinking that on our agenda, since we're being asked to vote on something that if Samuelsson doesn't work out that you'll automatically be able to begin negotiations with Crescendo; that their backup documentation should be included; not all six, because we're not voting on all six. Mr. Woods: Right. Board Member Russell: We're actually voting, though, on Crescendo today. And we don't -- the documentation isn't in the public -- You sent it to my office when we asked for it, which I very much appreciate. And it seems absolutely fine and no problem, whatsoever. And as I said, I'm very glad to see them here today. I just think for public transparency, it'd be good if that it's on the agenda for us to vote on, then it's also on the, you know, the backup documentations there. Mr. Woods: That hasn't been a practice, but we can begin to employ that as our practice in situations like these when we have more than one proposer to be considered. We can have both proposals in the backup documentation when we bring it before you. Chair Hardemon: One of the things that I want to ensure, though, Mr. Woods, that we don't do is begin to provide -- when someone ranks number one -- I described this before -- I believe that -- Mr. Woods: Yeah, we had that situation before. Chair Hardemon: We had a situation where someone was ranked number one. Mr. Woods: And we did one. City of Miami Page 10 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 Vice Chair Gort: Right. Chair Hardemon: And they were forced to negotiate with number two, even though they ranked number one. Other times, we've had someone who was ranked number one, and they wanted number two to secede number one; automatically just go with number two first, rather. And so any of those things I just don't want to see. You know, when people bid for projects -- I don't care if they're construction projects, if they're storefronts, whatever they may be -- I want them to feel confident that if they come to the CRA that they've gone through a process that was fair, and they walk away having competed in a fair way. And if they win or lose, they can say, At least the process was done the way that makes me feel comfortable. "And so, what I don't want to see, even if we have more information, is just the -- Mr. Woods: Top -ranked proposer -- Chair Hardemon: -- top -ranked person feeling -- being pushed to negotiate with the number two automatically, when they've placed number one. Mr. Woods: And what I would say about this is that if -- in the event that we are not able to reach an agreement with the top -ranked proposer, we would come back and we would have that documentation or the backup for the second -ranked proposer. So if we can't come to an agreement with number, there will be an opportunity for number -- for us to come back with the backup documentation for number two and, you know, for informational purposes, we can put it on our website as well; there's nothing to preclude us from doing that. We just try not to make the agenda so voluminous with all of the documents. I mean, it's trying to be green friendly, if you will, but if it's the desire of this Board to, you know, have -- in this situation, situations like there where you have a one and a two -- prospective two -- that we can put it in the agenda. Chair Hardemon: And technically, you don't have to put the number two. For instance, the fact that you put number two on there, you don't have to do that. Mr. Woods: Right. Chair Hardemon: You do that just to show -- so that you won't have to come back before us and say, Listen, the agreements didn't'=- Yve didn't come to an agreement'= - Mr. Woods: Right. Chair Hardemon: -- lind I think we should now go with number two and negotiate." Mr. Woods: Exactly, exactly. Chair Hardemon: So it's a matter of procedure. But it's -- I'm sure it's no problem for him to print an additional 100 pieces of paper to add to the agenda. Mr. Woods: Yeah. Chair Hardemon: Any further discussion about this item? Board Member Russell: No, thank you. I mean, I'm -- I've studied through it from you sending it to me directly -- Chair Hardemon: Right. Board Member Russell: -- and I appreciate the transparency amongst us. I'd say just in the City of Miami Page 11 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 future, if we've voting on it -- I don't need all of them. I'm not asking for, you know, hundreds of pages. I think just if we're voting on it that the backup be on the agenda. Mr. Woods: Noted, and will do. Board Member Russell: Thank you. Chair Hardemon: Any further discussion? Seeing none, all in favor, say aye." The Board (Collectively): Aye. Chair Hardemon: All against? Motion passes. 3. CRA RESOLUTION 16-00018 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY, AUTHORIZING A GRANT IN AN AMOUNT NOT TO EXCEED $110,000, TO FIN CARE INVESTMENTS, LLC, TO UNDERWRITE COSTS ASSOCIATED WITH THE BUILD OUT OF "GERALD'S GRAPHICS & PRINTING"; AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE ALL DOCUMENTS NECESSARY FOR SAID PURPOSE; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO DISBURSE FUNDS, AT HIS DISCRETION, ON A REIMBURSEMENT BASIS OR DIRECTLY TO VENDORS, UPON PRESENTATION OF INVOICES AND SATISFACTORY DOCUMENTATION; ALLOCATING FUNDS FROM SEOPW, "OTHER GRANTS AND AIDS," ACCOUNT CODE NO. 10050.920101.883000.0000.00000. File # 16-00018 Cover Memo.pdf File # 16-00018 Financial Form.pdf File # 16-00018 Backup.pdf File # 16-00018 Legislation.pdf Motion by Board Member Suarez, seconded by Board Member Carollo, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: Commissioner Russell, Chair Hardemon, Commissioner Suarez, Vice Chair Gort and Commissioner Carollo CRA-R-1 6-0007 Chair Hardemon: Moving on now to RE.3. Clarence Woods, III (Executive Director, Southeast Overtown/Park West Community Redevelopment Agency): Resolution Number 3 is a resolution of the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency authorizing a grant in an amount not to exceed $110,000 to Fin Care Investments, LLC (Limited Liability Company), to underwrite costs associated with the buildout of Gerald's Graphics & Printing; authorizing the executive director to execute all documents necessary for said purpose; further authorizing the executive director to disburse funds at his discretion or on a reimbursement basis, or directly to vendors upon presentation of invoices and satisfactory documentation. Commissioners, this is a grant to a business that has operated in Overtown for some time and left; and now, they're looking to come back. They're looking to come back and operate in a storefront that we funded that needs businesses in that storefront. It's the Carver Apartment and Shops. They will operate in that space. It's -- this money will go towards the buildout and some equipment. That equipment will have a UCC (Uniform Commercial Code) filing, which means that it has to -- it's City ofMiami Page 12 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 all -- it will be the property of the CRA (Community Redevelopment Agency) unless at some point the business no longer operates there and they want to move. If they are going to do that, then they would have to pay the CRA the salvage value for the equipment, or leave it there in that space for somebody else to come and operate it there. That's what this particular grant is for. Chair Hardemon: 171 open the floor for public hearing at this time. Is there anyone from the public that'd like to speak on this item? Simone Lee: Good evening, everyone. My name is Simone Lee from Fin Care Investments, 801 Northwest 3rd Avenue. We would like to thank you all for the opportunity of allowing us to be here. We met with the chiefs of staff, the -- we also met with some of the Commissioners. Chair Hardemon: Can you move the mike up? Ms. Lee: Can -- oh, okay. Thank you. We would like to thank the CRA for the opportunity for allowing us to submit our proposal in, and welcome us back as well as a business to the Overtown area as well as the community. So thank you all. Board Member Suarez: Move it. Board Member Carollo: Second. Chair Hardemon: It's been properly moved and seconded. Vice Chair Gort: Thank you. Chair Hardemon: Is there anyone else from the public that'd like to speak on this item? He said thank you. "Okay, public hearing is closed at this time. Is there any discussion? Seeing no discussion, all in favor, say aye." The Board (Collectively): Aye. Chair Hardemon: Motion passes. 4. CRA RESOLUTION 16-00162 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING A GRANT, IN AN AMOUNT NOT TO EXCEED $300,000, TO HUMAN RESOURCES OF MIAMI, INC. TO UNDERWRITE COSTS ASSOCIATED WITH THE CONTINUED OPERATION OF THE OVERTOWN BEAUTIFICATION TEAM FOR 2016; AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE ALL DOCUMENTS NECESSARY FOR SAID PURPOSE; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO DISBURSE FUNDS, AT HIS DISCRETION, ON A REIMBURSEMENT BASIS OR DIRECTLY TO VENDORS, UPON PRESENTATION OF INVOICES AND SATISFACTORY DOCUMENTATION; FUNDS TO BE ALLOCATED FROM SEOPW TAX INCREMENT FUND, ENTITLED "OTHER GRANTS AND AIDS," ACCOUNT CODE NO. 10050.920101.883000.0000.00000. File # 16-00162 Cover Memo.pdf File # 16-00162 Financial Form.pdf File # 16-00162 Backup.pdf File # 16-00162 Legislation.pdf City ofMiami Page 13 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 Motion by Board Member Suarez, seconded by Board Member Carollo, that this matter be ADOPTED WITH MODIFICATIONS PASSED by the following vote. Votes: Ayes: Commissioner Russell, Chair Hardemon, Commissioner Suarez, Vice Chair Gort and Commissioner Carollo CRA-R-1 6-0008 Chair Hardemon: Moving on now to RE.4. Clarence Woods, III (Executive Director, Southeast Overtown/Park West Community Redevelopment Agency): Commissioners, Resolution Number 4 is a resolution of the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency authorizing a grant in an amount not to exceed $220, 000 to Human Resources of Miami to underwrite costs associated with the continued operation of the Overtown Beautification Team for 2016; authorizing the executive director to execute all documents necessary for said purpose; further authorizing the executive director to disburse funds at his discretion or on a reimbursement basis, or directly vendors upon presentation of invoices and satisfactory documentation. Board Member Suarez: Move it. Board Member Carollo: Second. Chair Hardemon: It's been properly moved and seconded that we -- Board Member Suarez: Discussion. Chair Hardemon: -- RE.4. Is there anyone from the public that'd like to speak on this item? I thought I saw someone coming. Seeing no persons I'll close -- oh. Marcia Cartey: Good afternoon, Commissioners and all of the community, and everyone in their rightful places. First of all, I'd like to say thank you very much for having given us an opportunity to serve the community. This is, I believe, our fifth year, and we have helped so many. Normally, each year, we help between 30 to 48 individuals with job skill training and preparing them to leave one level of existence, and going out to be gainfully employed. Some of the highlights from last year was that we trained about 30 and we placed about 21, I believe, in jobs and colleges and, you know, vocational training, et cetera. And even that trend that has been started, we're getting ready to start now, and some of the ones that we started training for the new level -- because we start training -- they already are being employed. So we are very grateful that you've allowed us to be a part of the community and to give back. One of the objectives that we were hoping that we could pursue when we sent our proposal in -- we sent in for an increased amount of 235, 000, which was an increment of 15,000. Our reason for that was because there has been a desire to increase the number of hours per the crew members from four hours per day to a total of 25 hours per week. That 15,000 would allow us to increase the number of hours during the year by 2600. And I don't know if that can be considered, but an additional 15,000, increasing us from the 220,000 currently to 235,000 -- which I did submit the proposal for that -- would assist us in being more effective in the community. That 15,000 would increase the number of hours for the project as a whole by 2,600 hours; that's number one. And number two, we were also going to increase -- giving them more training with OSHA (Occupational Safety Health Administration) and landscaping, and externships with some of the partners that we're working with in the community. So I just thought I'd put that out there; but most importantly, I'm just very grateful that you are allowing us to be of benefit to the community, and just like to say thank you. Chair Hardemon: Can you state your name and address for the record, please? City of Miami Page 14 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 Ms. Cartey: Yes. My name is Marcia Cartey. My address is 915 Northwest 1st Avenue, Miami, Florida 33136. Thank you. Chair Hardemon: Thank you very much. Penny Taylor. Hi. My name is Penny Taylor, and about two years ago, I was jobless. I met the Commissioner; Mr. McQueen; Mr. Joseph; Mr. Woods, and all the CRA (Community Redevelopment Agency) members. They told me to go to Blue Shirts, which is Ms. Shaneetha and her mother; they hired me, and after it was over for the two years, they placed me. Now I'm with the Camillus House with Yellow Shirts. They also got the neighborhood kids, like my son, Mousy; the other guy; they got them off the street and gave them direction. So this program means a lot to our neighborhood, and please keep it. Chair Hardemon: Yes, ma'am. Thank you so much. Ms. Taylor: Thank you. Alice Moss: Good afternoon. My name is Alice Moss. I used to work for the CRA and I also worked for the Blue Shirt. And I was a drug addict 30 years. God bless me to come in the CRA to work for the Blue Shirt. I needed schooling to help me get in school. Now I have my DED -- I mean C -- DAD [sic]. And I just want to say thank you for letting me come in because by my age -- I'm 57 years old -- I thought I couldn't make it, but once I got in the Blue Shirt, I got a dream now. I went from blue; now I'm in yellow; next is purple. Amen. (Applause) Darren Julius: Good afternoon, ladies and gentlemen. I'm going to make this quick; quick and briefly. Chair Hardemon: Can you -- Mr. Julius: This program actually work -- Chair Hardemon: -- state your name again for the record? I'm sorry. Mr. Julius: For the record -- sorry. My name is Darren Julius. First, I'd like to give the honor to God and to each one of you in your briefly [sic] respectable place. First, this program actually worked because a person like myself, I was homeless as well, and they helped me get my own place now, and I'm continuing to looking forward to growing with this program. And I also like to thank Sergeant Black for the CRA Police Department. He have made this work for me. Thank you. Mr. Woods: I think he's talking about Sergeant Blackerby. Mr. Julius: Sergeant Blackerby. Chair Hardemon: They call him Black Man." Shaneetha Omoaka: And last but not least, good afternoon, everyone. My name is Shaneetha Omoaka, 915 Northwest 1st Avenue, Miami, Florida 33136. I would like to thank you for giving us a chance to help the community turn around from how they were to how they are today. Thank you. Chair Hardemon: Thank you very much. City of Miami Page 15 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 (Applause) Timothy Barber: Timothy Barber, 819 Northwest 2nd Avenue, Lyric Theater. I just want to say that the Blue Shirt Program is a great program; I'm speaking on behalf of them. Many times, we used to have to come in the morning and clean up around the Lyric. Now we come there -- the Lyric -- they're around there all the time, and they work in the neighborhood. I think it's very important that we continue to support this program. Many of the Blue Shirt workers come to the Lyric and work events at night as well. So these are great people trying to do some great things. And this program really is a step-up program, and I hope that you continue to fund it. And if they're trying to increase it, please consider that increase so they can help more people of Overtown community directly. Thank you. (Applause) Chair Hardemon: I just want everyone to realize that I would need you to keep your clapping to a minimum. I understand we're excited about the program, it's a great program; however, it delays the meeting, because we have to wait for you to quiet down, and then you have to listen to this boring speech, and if that happens after every great, you know, orator, we're going to have a long, long meeting, and we don't want any of that. So is there any other person from the public that'd like to speak on the item? Seeing none, I'll close the public hearing. There is not a motion on the floor though. Board Member Suarez: Yeah. Chair Hardemon: There is? Board Member Suarez: I moved it. Todd B. Hannon (City Clerk): Yes, sir. It was moved by Commissioner Suarez; seconded by Commissioner Carollo at 5:35. Chair Hardemon: All right. Any discussion? Board Member Russell: Yes, Mr. Chair. Chair Hardemon: You're recognized. Board Member Russell: Thank you. I spoke briefly during my briefing with Mr. Woods and Mr. Shiver and tried to understand a little better about the payment structure of the employees as they're going through this training, and as they're working. And recognizing that starting from square one, they're in the most vulnerable position where every dollar counts and every bit as important. And ifI understand correctly, they're paid currently at $9 an hour. Mr. Woods: Yes. Board Member Russell: Plus benefits; probably around 11 -- Mr. Woods: Yes. Board Member Russell: -- about a value of about $11 an hour. Mr. Woods: Yeah. Board Member Russell: I wanted to know what it would take to get them to $15 an hour to start. City of Miami Page 16 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 (Applause) Mr. Woods: We did the analysis, and it's a little more than we even anticipated than what we guesstimated yesterday. Miguel has the numbers and he can give you the numbers for what it would take to make that happen. Board Member Russell: Thank you. Well -- Miguel Valentin (Financial Officer): Yes, Commissioner. Clarence directed me to prepare the analysis. If we do so, by keeping only 11 crew members, we need to increase the budget by $110,000, roughly; on top of the $235,000 that they requested. The only thing that I wanted to let you know -- and I don't want to say anything without consulting to my boss -- but if -- let's say that the Board, they want to go ahead and do something like this. I have some contingency pockets in my budget that they are going to allow me to add that funding that we need in order to accomplish that, but that will be -- Board Member Carollo: Mr. Chairman. Chair Hardemon: You're recognized, sir. Mr. Woods: So, in essence, he's talking about moving money from other areas in order to accomplish that. Chair Hardemon: Commissioner Carollo. Board Member Carollo: Thank you. How are you come -- real quick, how are you coming up with that figure? That figure seems a lot higher than what I thought. Mr. Valentin: Yes, because -- Board Member Carollo: So how are you calculating that figure? Mr. Valentin: Yes, because you need to take into consideration that the budget that they submitted to us, the salary that it was contemplated was $9 an hour. Board Member Carollo: Understand. Mr. Valentin: Then if they want to be paid at $15 an hour, it's a $6 increase, plus fringe benefits. If you want me, I will show you. Board Member Russell: You're misunderstanding my request then. Board Member Suarez: Yeah. Board Member Russell: I was going from the -- Board Member Suarez: Right. Board Member Russell: -- after benefits. Board Member Suarez: Right. Board Member Russell: They're probably around 11. City of Miami Page 17 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 Board Member Carollo: Right. Board Member Suarez: He's saying gross to gross. Board Member Russell: So we're looking to get with benefits -- Board Member Carollo: Exactly. Board Member Suarez: He's saying gross to gross. Board Member Russell: The original estimate that was given off the cuff was about $20, 000 increase. The second estimate that was given was about 50. Board Member Carollo: Right. Board Member Russell: This is now 100, so I -- Board Member Suarez: Gross to gross. Board Member Russell: -- I'd really like to understand the backup numbers, because -- Board Member Carollo: Exactly. Board Member Russell: -- I understand the difficulties in a normal business of day to day, where you're dealing with revenues and expenses, and the cost of employing. But here we are in a unique opportunity where this is part of our job as a Board, and if we can offer this, I want us to offer this. Mr. Valentin: Okay. The figure that I gave you, that I just gave you, is contemplating fringe benefits. That will be 25 -- I think it's 24 percent out of the total amount in gross salaries. I follow their assumptions when it comes to the budget that they submitted to me, and I'm able to show you the numbers. Chair Hardemon: I have a question for you. Mr. Valentin: Yes. Chair Hardemon: For the crew manager, the crew manager right now -- that is not a trainee; that is not an employee -- but the crew manager, the $20, 000 that the crew manager gets paid, that's based off an hourly rate of what? Mr. Valentin: The crew manager, in their budget -- Chair Hardemon: Is there -- are there any crew managers here that can tell me? Unidentified Speaker: I can tell you. Chair Hardemon: Can you tell me? Unidentified Speaker: Yeah. Chair Hardemon: Come step forward. Unidentified Speaker: It's $12. City of Miami Page 18 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 Mr. Valentin: It's 11.50. Unidentified Speaker: $12 an hour, a crew manager. Chair Hardemon: Okay. So let me ask you a question, because we have to understand it in the context of what we're looking at here. This is a training program. Unidentified Speaker: Right. Chair Hardemon: There are many programs that don't receive what -- I would look at this like a stipend; to me -- Unidentified Speaker: Yeah. Chair Hardemon: -- it's an hourly stipend for working and learning these skills, and then to move on to get another job. So you would be increasing the hourly stipend or the wage for the trainees. I would assume that the crew manager wouldn't get paid -- Unidentified Speaker: No. Chair Hardemon: -- less than the trainee. Mr. Woods: That is an increase for the crew manager, as well. Mr. Valentin: Let -- I forgot -- Chair Hardemon: It does include -- Mr. Valentin: -- to tell you, and I'm sorry. In my assumption, I was contemplating that. Board Member Suarez: An equivalent increase in that salary. Mr. Valentin: Exactly. And the figure that I gave you right now, it contemplates an increase to the crew manager -- to the crew leader as well as the crew manager. Board Member Carollo: And by the way, Mr. Chairman, that's why it was important to see how he was coming up with that figure, because it seemed kind of high. Chair Hardemon: Right. So are you satisfied with his description of it now? Board Member Carollo: I think we need discussion, because it was -- I don't think it's contemplating what Commissioner Russell had envisioned, and I think he -- I don't want to put words into his mouth, but I think he actually even stated that, because he was thinking that they were all in at approximately 11. And he thought, Okay, how do we get them to 15? "So it was about, you know, three, four dollar difference. Vice Chair Gort: Four. Board Member Carollo: He was -- Miguel was calculating about six dollar difference, and I wasn't even sure. That's why I wanted to see that you were calculating some now that would increase from 15 to something higher. Mr. Valentin: Well -- Chair Hardemon: Commissioner -- well, go ahead; and then Commissioner Suarez. City of Miami Page 19 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 Mr. Valentin: Yes. Remember that I'm taking into consideration that they are going to -- suppose to be making $9; then I -- and I increase it to $15. On top of that, then I am contemplating the fringe benefits. Mr. Woods: Which is -- Board Member Carollo: Right; which is now -- Chair Hardemon: Commissioner Suarez. Board Member Suarez: I have a motion on the floor, right? Chair Hardemon: Yes. Board Member Suarez: So I want to modifir my motion so that the minimum gross pay is increased to $15; gross pay -- okay? -- and that the corresponding percentage increases apply throughout the other positions. Chair Hardemon: So that includes the administration with the management. Board Member Suarez: Right. Chair Hardemon: We have $43,000 that management gets? Board Member Suarez: Correct. That'll be less than what -- yeah. That'll be less than what you calculated, because you were going off net to gross. Do you get what I'm saying? So you were going off the net figure of $9; you were increasing that to 15. That would have been a net to net increase; and then you were doing fringe benefits on top. What I'm saying is the gross pay will go from 11 to 15 -- Mr. Valentin: Okay. Board Member Suarez: -- and then that corresponding percentage increase will be applied across the board to the other positions. It'll be less than what you posited, but, you know, I'm not going to ask you to, you know, calculate it all right now. I think what he's trying to do is enact a principle. Mr. Valentin: Yes. Board Member Suarez: And I think what we're doing here is supporting the principle, and so that would be my motion; that's my amended motion. Board Member Russell: Mr. Chair. Board Member Carollo: Seconder agrees, but with discussion. Chair Hardemon: You're recognized. Board Member Russell: Thank you. And maybe you can help me. Math wasn't my best, but I just did a couple quick numbers. You mentioned that the benefits are typically 24 percent of the gross. And if we're looking at a $15 gross, that would be put the net as 12.16, if I'm not mistaken. And so, to increase them to 12.16 as the base from 9 would be about a 35 percent increase over what they're getting right now. So I would -- I'm hoping that that's certainly not a hundred thousand dollar increase in the budget. I understand that changing management as City of Miami Page 20 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 well is a factor I hadn't considered, but -- Board Member Suarez: If you're at 220 -- right? -- which is the number we're at -- Mr. Woods: He actually did it at 235. Board Member Suarez: Okay. So if we're at 235 and that's -- and it's a 35 percent increase, that's one third, approximately, so it's going to be about a $100,000 increase. Mr. Woods: Yep. Board Member Suarez: Approximately. Mr. Woods: Yep. Board Member Suarez: Which I'm prepared to do. I mean, I think -- Chair Hardemon: Decorum, please. Everyone, please, quiet in the back. Board Member Suarez: I'm prepared to do it because we -- again, look, we've done this a lot at the City Commission level. We're enacting a policy and these are public funds, but we're saying that we're willing to spend funds in conformity with what we feel are essentially a -- I hate to use like the word, because it's going to sound -- it's a very technical term what I'm about to use -- but what we feel is a living wage, in a sense, in this context. So I'm okay with that if you are; otherwise, you know, you can mod fy the motion. I mean, you can modift it however you want, but I'm good with a modified motion. Board Member Carollo: Mr. Chairman. Chair Hardemon: You're recognized, sir. Board Member Carollo: Thank you, Mr. Chairman. Will this eliminate or reduce the amount of employees that we have? Mr. Valentin: No, because -- Board Member Carollo: Okay. Mr. Valentin: -- we're adding more money. Vice Chair Gort: (INAUDIBLE). Board Member Carollo: Okay. Mr. Valentin: I will -- Chair Hardemon: But we got to remember that these -- they're only training for how long? How many weeks is their training program? Ms. Cartey: Well, actually, like for the year now. Mr. Woods: Yeah. Ms. Cartey: An entire year. And normally they -- City of Miami Page 21 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 Vice Chair Gort: You got to go to the mike. Ms. Cartey: Yes, sir. The training is for a year. When we get near the ninth month, they're starting to move away to positions. So they tend to really stay with us for nine months and between the tenth month and the twelfth month, they're starting to be employed and enter college and -- Chair Hardemon: So one of the organizations that they go to is the DDA (Downtown Development Authority), correct? Ms. Cartey: Say it again. Chair Hardemon: One of the organizations that they transfer to -- Ms. Cartey: Is DDA. Chair Hardemon: -- the DDA. Ms. Cartey: University of Miami also. Chair Hardemon: Do you know how much the DDA charges -- I mean pays their employees an hour? Ms. Cartey: We have two of them here. Board Member Carollo: It's going to be a pay cut. Chair Hardemon: Oh, it's going to be a major -- no, you know, I -- Ms. Cartey: I don't even know. Chair Hardemon: We have some people that are leaders of the DDA. Unidentified Speaker: Right here, right here. Ms. Cartey: Yeah, because they left from us and went to DDA. Chair Hardemon: Right. Do you know -- can -- do you mind telling us what the hourly rate is for salary for the DDA? Board Member Russell: I can tell you what it'll be when I'm done with it. Mr. Woods: They're going to come back to the Blue Shirts. Board Member Suarez: Yeah, they're going to want to -- they're never going to want to change color shirt. Ms. Moss: I don't want to change right now. Our hour -- we work six hours a week. We get minimum wage; $8.05. Board Member Suarez: There you go. Chair Hardemon: So you were already above. Can you -- Board Member Suarez: Yeah, it's all good. City of Miami Page 22 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 ChairHardemon: -- come to the microphone, please? Vice Chair Gort: My understanding is from your statement that you had a 71 percent positive placement. Board Member Suarez: That's amazing. That's great. Vice Chair Gort: You have 30 student and you placed 21. Ms. Cartey: Yeah. Vice Chair Gort: What is the pay rate when they go into the private sector? Ms. Cartey: Why is the pay rate -- what? Mr. Woods: What it is." Vice Chair Gort: What are the hourly rate? Ms. Cartey: How many hours do they work? Board Member Suarez: No. Mr. Woods: No. When they -- Ms. Cartey: Pay rate; when they come to us or when they leave? Mr. Woods: They go to a new job. Vice Chair Gort: When they leave. Ms. Cartey: Oh. Shaneetha, you want to place -- Mr. Woods: Well, the DDA, she said it was -- Ms. Cartey: Okay, fin momento." Vice Chair Gort: The DDA I understand. Ms. Cartey: Thank you. One second, please. Vice Chair Gort: The DDA shouldn't be doing that. Ms. Cartey: My daughter, really, she -- Vice Chair Gort: And they started that program a long time ago. Ms. Omoaka: It varies be -- hello. My name is Shaneetha Omoaka. It varies depending on what job they go to. Vice Chair Gort: Right. Ms. Omoaka: So they can go to a job that can be a little bit higher, but they can also go to a job that's a little lower. City of Miami Page 23 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 Chair Hardemon: Do you have any range that you've seen over time? Ms. Omoaka: Yes. It ranges from 8 to about 19. Mr. Woods: Some has been placed with the City of Miami Sanitation Department, right? Ms. Omoaka: Yes; yes, they have. Vice Chair Gort: Yeah. Ms. Omoaka: They start at 12. Vice Chair Gort: Right. Chair Hardemon: Is there any further discussion? Board Member Russell: Mr. Chair. Chair Hardemon: You're recognized, sir. Board Member Russell: Should the increase amount be tied to the change in the rate of pay rather than just the -- if just the amount is changed, there's no stipulation of how they spend it, correct? So they -- Mr. Woods: No, it would -- Board Member Russell: -- it would -- Mr. Woods: -- have to be for the increase -- Board Member Russell: -- be awarded clearly to -- Mr. Woods: -- in the -- Board Member Russell: -- for the increase in the pay. Mr. Woods: Right; not for any other aspects of the program. Board Member Russell: Right. Mr. Woods: Not for supplies -- Board Member Russell: Additional -- Mr. Woods: -- administration and all of that other stuff. Vice Chair Gort: Just for the use of payroll. Mr. Woods: Just payroll. Chair Hardemon: The -- I have a question, because I'm thinking through -- One of the things that we've done within the CRA, for instance -- or even -- well, one thing I want we all -- I want us all to consider, for instance, when we think about our children, we -- in the CRA we have employment programs, and many of our employment programs, I've always tried to reduce the City of Miami Page 24 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 administrative cost of those programs so that you can provide more dollars to the students. So, for instance, in the City of Miami, we've done projects where -- our summer program, where we had our summer interns, they receive about minimum wage. In the projects that I've done in my anti -poverty dollars, we always make sure they had about $10 an hour. And so I just want us to also to start to think about when you start to make decisions that affect the hourly wage, are we thinking about this? And I -- we could talk about it now because -- we're talking about in the future. Are you considering this for children that are doing internships that are getting paid, and then those subsequent increases in the salaries? Because what I've always argued was that if someone -- if the program is for students and it's about training for those students, those students should get, one, a decent wage. But the people who are the trainers shouldn't have these wages that are really, really high where they're costs of employment are going way up because of the money that's going to a trainer and not necessarily a student who is a resident of the Overtown area. So do these policies that you -- that we're trying to start to implement, will they include our summer programs, our children, things of that nature, where we're spending sometimes 300, $400,000 a budgeting cycle for? Have any thoughts? Board Member Suarez: Can I just -- I missed what you said, but I have a thought on the program itself. I think issue number one for me is beautification is a huge citywide issue. Vice Chair Gort: Yes. Board Member Suarez: And it's something that at the City Commission level, we got to do a better job in our budget upcoming, and I'll be pushing for it. I pushed for it last year; I didn't get as much as I wanted. And I'll push for it again this year. It's a way for us to take pride in our community and it's a way for people to get skills and I think doing it -- you know, one of the people came up and talked about how they were getting kids off the street, which right now is a huge issue. And I think increasing the pay is our way of trying to do what we can. You know, obviously, over time, that could create some constraints, and that's what we have to look at. Chair Hardemon: Right. I mean, I think that's one of the things -- Board Member Suarez: Right. Chair Hardemon: -- well, first of all, part of the reason that we created this program is for training and beautification. Board Member Suarez: Right. Chair Hardemon: I mean, those two things -- Board Member Suarez: Right. Chair Hardemon: -- are important in the CRA Plan. I know many of you who are critics have read that plan. But the plan takes into consideration that we provide training to the people who live in Overtown area. Many of the people who are Blue Shirts aren't say, young people just getting out of school. Board Member Suarez: Right. Chair Hardemon: I mean, these are people who are getting their lives back together, and we want to move them on to something productive. So they're usually up age mature adults. Board Member Suarez: Sure. Chair Hardemon: And so -- but we just have to consider the same way -- for instances, how City of Miami Page 25 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 many Blue Shirts are in the program today? Ms. Omoaka: 13 plus two on call. Chair Hardemon: 13 -- Vice Chair Gort: That's about 42. Chair Hardemon: So -- Vice Chair Gort: 13. Chair Hardemon: -- you know, these types of decisions just start to affect: One, the number of people that we can service; and then two, how we can go about doing it. So, I mean, it's just things that we have to consider. Board Member Suarez: It's a fair comment. It's a fair comment. Chair Hardemon: But, you know, as always, I mean, it's -- if it's the will of the Board to increase the wage -- the thing about it is increasing wages is such an important thing, because that's what we've been fighting for, right? We've been fighting for increased wages. And, my God, we have an agenda item today where we don't even have $15 an hour, and that's by a major development company that's supposed to be providing jobs to our community. So, I mean, there are so many tremendous opportunities. I just want, if we're going to do it this way, then the same support that we have at this level to effect a change here, I want to see it effected in other organizations, as well. Board Member Suarez: And I would just say about that last comment, you know, we're heading in the right direction. We've made strides from the moment that we all got here; particularly since you got here, Chair. And now, with Commissioner Russell, obviously, he's continuing the process of pushing the envelope. And I do think there's a distinction between a program that we fund ourself with our own money and an incentive package that we're asking another entity to come in, you know, I think that there is a distinction. But, you know, look, I'm okay with this. I mean, I think we can take it -- just like I sort of fought hand in hand with you to reduce that affordability on that one deal that we did, you know, a couple meetings ago, I think we can sort of take this on a leap of faith and see where it goes and see what kind of an economic impact it has long term, and then, you know, we can always assess. Board Member Russell: Mr. Chair. Chair Hardemon: You're recognized, sir. Board Member Russell: Yes. I -- what you brought up earlier, to respond to that, it's -- there are complications to -- and repercussions of this, and I do recognize that it is complicated. And as the Chair of the DDA, I can promise you that I'm going to do the same thing there, too, because this is important to me. This is something that I've learned about in the last year a lot as I was campaigning and as I was talking to people and just learning what it's like to live on 8 or $9 an hour and to be working -- even working full-time, and making minimum wage; you're still working poor. And in my mind, if you're working, you shouldn't be poor. And where we have a chance to change that, we've got to. It will be complicated. We're going to have some fairness issues here and there. We're going to have employers with issues on this, and we'll have to weigh them as they come. I think this one's a pretty easy one that we can decide to move on and be together on. I'm very in favor of this. Mr. Woods: Commissioners, if I can, I just want to put on the record that there are so many City of Miami Page 26 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 stories from the Blue Shirts that Nathaniel comes to me almost every week, and some of them wanted to get up and tell their stories here, but it's so many. I mean, we would have to be discriminating as to who would we let speak. But this is a program that, again, you're hearing from them that it's changing their lives and it's given them opportunities where they would not otherwise have. So I know that they appreciate the consideration that we are deliberating right now. Chair Hardemon: The Blue Shirts I think has proven to be one of our most successful programs Mr. Woods: Yes, yes. Chair Hardemon: -- especially because it touches the people that we intend to touch. Mr. Woods: Absolutely. Chair Hardemon: And I don't think there are many programs that do it quite that way. We've seen programs that have come and that have gone because they were not touching the community as we thought that they should. So I know that when I look at the Blue Shirts and when I go through Overtown, those are people that I see every single day. These are people that I know; these are people that run into all the time. And so that's why this is -- it's important, because what it brings to Overtown is higher wages for the people that live there and that's what we've been trying to bring for a very long time, so it makes sense to do it in this way. I just have one request. I ask that you spend your dollars in Overtown. Mr. Woods: In Overtown. Chair Hardemon: Jackson Soul Food, House of Wings, you know, to places like that. So all in favor, say aye." The Board (Collectively): Aye. Chair Hardemon: Motion passes. Mr. Hannon: As amended. Chair Hardemon: As amended. 5. CRA RESOLUTION 16-00161 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT ACCEPTING A GRANT IN THE AMOUNT OF $50,000 FROM THE KNIGHT FOUNDATION TO UNDERWRITE COSTS ASSOCIATED WITH THE PRODUCTION OF THE 2016 OVERTOWN MUSIC AND ARTS SCHEDULED TO OCCUR ON JULY 23, 2016; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE ALL DOCUMENTS NECESSARY FOR SAID PURPOSE. File # 16-00161 Cover Memo.pdf File # 16-00161 Backup.pdf File # 16-00161 Legislation.pdf Motion by Board Member Carollo, seconded by Board Member Suarez, that this matter be ADOPTED PASSED by the following vote. City ofMiami Page27 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 Votes: Ayes: Commissioner Russell, Chair Hardemon, Commissioner Suarez, Vice Chair Gort and Commissioner Carollo CRA-R-1 6-0009 Chair Hardemon: Moving on now to RE.5. Marcia Cartey: Thank you. Clarence Woods, III (Executive Director, Southeast Overtown/Park West Community Redevelopment Agency): Commissioners, Resolution Number 5 is a resolution of the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency accepting a grant in an amount of $50, 000 from the Knight Foundation to underwrite -- Chair Hardemon: Decorum, please. Decorum. Board Member Carollo: Move it. Board Member Suarez: Second. Chair Hardemon: It's been properly moved and seconded. Is there any discussion on this item? I'll open the floor for public hearing. Is there any public hearing? Seeing none, all in favor, say Bye." The Board (Collectively): Aye. Chair Hardemon: Motion passes. 6. CRA RESOLUTION 16-00160 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING A GRANT, IN AN AMOUNT NOT TO EXCEED $250,000, TO HEADLINER MARKET GROUP, INC. TO UNDERWRITE COSTS ASSOCIATED WITH THE PRODUCTION OF THE 2016 OVERTOWN MUSIC & ARTS FESTIVAL, SCHEDULED TO OCCUR ON JULY 23, 2016; AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE ALL DOCUMENTS NECESSARY FOR SAID PURPOSE; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO DISBURSE FUNDS, AT HIS DISCRETION, ON A REIMBURSEMENT BASIS OR DIRECTLY TO VENDORS, UPON PRESENTATION OF INVOICES AND SATISFACTORY DOCUMENTATION; FUNDS TO BE ALLOCATED FROM SEOPW TAX INCREMENT FUND, ENTITLED "OTHER GRANTS AND AIDS," ACCOUNT CODE NO. 10050.920101.883000.0000.00000. File # 16-00160 Cover Memo.pdf File # 16-00160 Financial Form.pdf File # 16-00160 Backup.pdf File # 16-00160 Legislation.pdf Motion by Vice -Chair Gort, seconded by Board Member Suarez, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: Commissioner Russell, Chair Hardemon, Commissioner Suarez, Vice Chair Gort and Commissioner Carollo City of Miami Page 28 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 CRA-R-16-0010 Chair Hardemon: Moving on ow to RE.6. Clarence Woods, III (Executive Director, Southeast Overtown/Park West Community Redevelopment Agency): Resolution Number 6 is a resolution of the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency authorizing a grant in an amount not to exceed $250, 000 to Headliner Market Group, Inc., to underwrite costs associated with the production of the 2016 Overtown Music and Arts Festival scheduled to occur on July 23, 2016; authorizing the executive director to execute all documents necessary for said purpose; further authorizing the executive director to disburse funds at his discretion on a reimbursement basis, or directly to vendors upon presentation of invoices and satisfactory documentation. I just want to make a clarification with respect to this particular item. It's a companion to item number 5. What the CRA (Community Redevelopment Agency) -- the CRA's contribution really will be -- is 200,000; 50,000 of that is the $50, 000 grant from the Knight Foundation. So the CRA's out-of-pocket cost would be $200, 000 for the festival for this year. Chair Hardemon: Commissioners, before we have any motions or any votes, or public discussion, I know there's a presentation that we wanted to make sure that everyone had a chance to see behind us. So we're going to kill the lights and play the presentation. Note for the Record: At this point, a video presentation was published. Chair Hardemon: Commissioners, I'm going to allow Mr. Musdadiq Muhammad to have an opportunity to speak. He's one of the organizers of the Overtown Music and Arts Festival. Musdadiq Muhammad: Good evening, distinguished Board of Commissioners and distinguished audience of Overtown. It's been our great pleasure to present the Overtown Music and Arts Festival; a community that is really enriched with rich history and deep cultural activities. What we try to do is shed a positive light on the positive things that are going on in Overtown to make us a beacon or a light for, you know, a national program. And so what you see here is -- Chair Hardemon: Decorum, please, in the back. Please limit your discussion. If you have a -- if you have something to talk about, just do us all a favor and step outside of the room so we can hear. Mr. Muhammad: One of the things that you see here in our first year, I think we had a little over 6,000 attendees. Last year, we had over a little 7,500, and with the pouring down rain, it still didn't stop. And so, what you have is, when you saw the children -- I think the band camp was being held at one of our other historical locations, which is the Lyric Theater -- they was able to participate, bringing in national artists and just having people to look at Overtown in a different light. We can look about the big things that's happening in Overtown with the stadium and all those other good things, but the integrity of Overtown and what we're trying to do never to be -- we don't want that part to be remiss when people look at Overtown. So this Overtown Music and Arts Festival just gives us -- solidifies us as a community that is largely based on the integrity of what Overtown was at a time before. So that's it. Chair Hardemon: Thank you very much. I'll open the floor for public discussion. Is there anyone from the public that would like to speak about this item? Seeing none, I'll close the public hearing. Board Members. Vice Chair Gort: I'll move it and -- Board Member Carollo: Second. Vice Chair Gort: -- let me tell you, 39 years ago, we had a festival called Calle Ocho. It was an City of Miami Page 29 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 7. open house, and the first one, I think we had about 70,000 people. We had a lot of publicity. Today you have over a million people going to this, but the most important is it has become a tourist attraction. Today you have 10 to15 buses going through the area and they all -- let's all face this -- tourism is a clean industry that produces a lot of money. We all have traveled before and we can -- whenever we travel, we buy a lot of stuff So I think this is one way to bring the people here in Overtown, learn about the culture; learn about the history, which is very important. Chair Hardemon: The motion was properly moved -- Board Member Suarez: Second. Chair Hardemon: -- by Commissioner Gort and seconded by Commissioner Suarez. The one thing I would like to say -- I don't know if this mike will work. Can you hear me now? Better. Okay. Board Member Suarez: Oh, yeah. Chair Hardemon: Okay. One day I read something in the paper that talked about the Overtown Music and Arts Festival, and it described it as a block party. And I was offended; and I was offended particularly because you wouldn't say that about Calle Ocho, which is a State festival now, recognized by the State Legislature. You wouldn't say that about the food and wine festival, and you wouldn't say it about these major festivals that represent particular communities, but you have the nerve to say it about Overtown. And it upsets me, because within our Redevelopment Plan, within the Redevelopment Act, it allows for marketing dollars -- it allows for dollars to be used to advertise or market the redevelopment area, because you can build a city, but if no one knows about it, they won't come. And so here we are with an opportunity to market the redevelopment area to people that many have never seen before, many forgot a long time ago, to show them that we have no housing, to show them that we have no commercial businesses, to show them that we can spend our dollars with businesspeople in our community and have a good time and be safe. The one thing that I've become sure of is that when I turn on Channel 7 News, Channel 6 News, Channel 10 News, Channel 4 News, if anything negative happened in Overtown, they will show it. Our community has gone through decades of degradation in the news media. They've gone through decades of people telling you, Don't go to Overtown. "And so now, when the Redevelopment Agency decides that it wants to attract you to Overtown, the same way that the GMCVBB [sic] attracts you to Greater South Florida; the same way that Visit Tallahassee attracts you to Tallahassee; Visit Florida attracts you to Florida, there's a problem, and there shouldn't be. There shouldn't be, because when you attract more than 7,000 guests to an area where people have told you not to go to, not to buy drugs, but to have a good time and to learn about what's happening in that community, that is a good thing, and it should be celebrated. Back in the '20s when Overtown was largely owned by whites, the one thing that the black people did in the streets was had -- were had -- was had festivals. They would march down 2nd Avenue, past all the businesses -- the Junkanoo would -- and I'm sure you all know that. The Junkanoo would march down the streets, and they would celebrate that part of their ownership in this community. And there's never a day that I've seen more people gather in Overtown than who gathers for the Overtown Music and Arts Festival. And one day, I wish that when our work is complete that people will continue to gather like that moving forward and that's why I support this item, and I hope that you all support it, too. Is there any other discussion? Seeing none, all in favor say Bye." The Board (Collectively): Aye. Chair Hardemon: Motion passes. CRA RESOLUTION City of Miami Page 30 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 16-00014 A RESOLUTION THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY, WITH ATTACHMENTS, AUTHORIZING THE EXECUTION OF THE CONVENTION CENTER ECONOMIC INCENTIVE AGREEMENT, IN SUBSTANTIALLY THE ATTACHED FORM, WITH P & G INVESTORS, LLC (THE "DEVELOPER"), IN CONNECTION WITH THE DEVELOPMENT OF A 600,000 SQUARE FOOT CONVENTION CENTER AND A 1,700 KEY HOTEL (COLLECTIVELY, THE "PROJECT") AT MIAMI ARENA SUBDIVISION. File # 16-00014 Submittal -Javier Fernandez-Presentation.pdf File # 16-00014 Cover Memo.pdf File # 16-00014 Financial Form.pdf File # 16-00014 Back up.pdf File # 16-00014 Legislation V2.pdf File # 16-00014 ExhibitA.pdf File # 16-00014-Submittal-SEOPW Exec. Director -Blended Rate Model for TIFF.pdf File # 16-00014-Submittal-SEOPW Exec. Director-MDC Responsible Wage.pdf File # 16-00014-Submittal-Javier Fernandez-MDM Presentation.pdf File # 16-00014-Submittal-Javier Fernandez-MDM Video.pdf Motion by Board Member Carollo, seconded by Board Member Russell, that this matter be CONTINUED PASSED by the following vote. Votes: Ayes: Commissioner Russell, Chair Hardemon, Commissioner Suarez, Vice Chair Gort and Commissioner Carollo Note for the Record: CRA Resolution #7 was continued to the April 25, 2016, Southeast Overtown/Park West CRA Meeting. Chair Hardemon: Moving on now to RE.7. Clarence Woods, III (Executive Director, Southeast Overtown/Park West Community Redevelopment Agency): Commissioners, Resolution Number 7 is a resolution of -- it's a resolution of the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency, with attachments, authorizing the execution of the Convention Center Economic Incentive Agreement, in substantially the attached form, with P&G Investors, LLC (Limited Liability Company) -- the Developer'=- in connection with the development of a 600,000-square-foot convention center and a 1,700-key hotel -- collectively, the Project'=- at Miami Arena Subdivision. Chair Hardemon: Would you like to say something, sir? Javier Fernandez: Good afternoon, Mr. Chairman, Members of the Board. Javier Fernandez, here on behalf of MDM. Actually, P&G Investors, LLC is the project entity requesting -- in request of today's incentive -- approval incentive agreement. If you'd like, we're happy to walk you through a brief presentation on the project and the request and what we believe to be the impacts, or happy to turn it over to the Board with any questions you may have. I'll proceed at your -- Chair Hardemon: A presentation would be fair. Mr. Fernandez: Okay, great. Mr. Chairman, again, thank you for the opportunity, and we'd like to begin by first thinking staff, who, over the -- very many months we've been working with to actually get this item to this particular point. This has been a long and arduous process, and I'd like to really acknowledge staff and their human effort to get us to this point today. I'd also like to thank the folks who are not here for working with us up to the last minute to agree on the City ofMiami Page 31 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 outline of the proposed labor peace agreement that'll be yet another component of the community benefits package that you'll learn about in a few minutes here. Again, I'm here on behalf of MDM, the parent of P&G Investors, LLC; proudly here to present what we think will be a project that will help anchor the redevelopment of Southeast Overtown and Park West through the development ofa 750-million-dollar convention center hotel that we believe will advance -- not only serve as an anchor, but a tremendous generator of enthused economic demand for ancillary development throughout this portion of the district. The proposal before you again has an estimated project cost of $750 million. It will be built in two phases. The goal is to provide first-class internationally competitive meeting space that will be comprised of 600,000 gross square feet of total convention areas, and 350,000 of that square footage would actually be the meeting space and exposition halls, banquet halls, banquet facilities, et cetera that will comprise the facility. The second phase, which we believe will actually break ground fairly concurrently with the first; again, the first phase being the convention center and 1100 Group Tower that you see at the right of the image before you. Second phase, which is the hotel tower at the rear of the structure, is an additional 600-key hotel, which will be connected to the convention center, as well, and share all of the back of the house loading and other facilities as part of the second phase, which we anticipate would break ground within three months of the start of the first. Moving on to the next slide, during construction, we anticipate the project will generate approximately 850 jobs. Beyond the jobs, I think the significance of this project as we move towards discussing the permanent opportunities is that for many years now, Overtown, by virtue of recent history and investments made by the Federal Highway Administration has been a community that has been driven by or passed over. This facility, we believe, will put Overtown at the center of downtown Miami, making it the epicenter for future convening activities in our community. When coupled with a lot of the other investment you're seeing around All Aboard Florida, again, Overtown will be the lead destination, we believe, within this portion of downtown Miami. The project itself will generate, once operational, about 1,350 permanent jobs; those jobs, we will fill, in conformance with a series of local hiring requirements that are specified in the document before the Board. We believe that the project will also induce additional demand for 2,500 more jobs -- I'm sorry -- 25 [sic] more hotel rooms -- excuse me -- that will be built within a five-minute walk or ride of this proposed facility. We also believe there'll be induced demand for another 4,235 permanent jobs that will be borne of the demand created by the facility, and will result in new retail service and small business opportunities for folks currently in the community, and folks that will obviously fill out a lot of the vacant space in and around the immediate project area. Again, at the end of the day, this project will serve to connect in large measure this isolated part of the community with the renaissance that's happened elsewhere to the south and east and downtown Miami, and Brickell. Moving on to the next slide, you can see the project is situated at the site of the old Miami Arena; it is proximate to transit. We've got, in addition to All Aboard Florida and its proposed head house for its intermodal -- sorry -- inner city passenger rail service, we are at the -- again, the head house also for Tri-Rail and its future service into downtown Miami that was supported by this very Board. We are located near Metrorail; the Overtown Metrorail Station, as well as Metromover. So this is transit -oriented development at its best, and will provide inbound guests -- a lot of the discussion on the Beach was related to traffic and traffic -related impacts. With the Orange Line service for Miami International Airport, the location of the site is perfectly situated to accommodate inbound guests via transit and alternate modes as opposed to single passenger occupancy vehicles. It'll also leverage a lot of the existing or recent public investment around Museum Park; those institutions that have been located there, our Performing Arts Center, all of which, in conjunction with, hopefully, the redevelopment of the Overtown Folklife District will create a cultural entertainment district that will service this project in large measure. Next slide, please. MDM, through P&G Investors, LLC, is the project sponsor; they are a local community stakeholder. Both of the principals have lived here all of their adult lives. They have been building hotels and projects for the last 30 years and have an excellent execution record. We don't just conceptualize projects; we take them from concept to execution. MDM has been an instrumental part in creating mixed -use pedestrian neighborhoods, both in downtown; Dadeland, which transformed significantly in the last decade; the Brickell Financial District City of Miami Page 32 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 through their investment of the (UNINTELLIGIBLE) Marriott, as well as their investments in downtown Miami through their multi phase project called Metropolitan Miami, which is now finalizing the last stages of development with Met Square and Met 3. Our firm, MDM, is reflective of the community's diversity, both in terms of its geography and its ethnic and racial makeup. 95 percent of our more than 700 employees today are from Miami -Dade County; 20 percent are actually drawn from the very zip codes the CRA (Community Redevelopment Agency) is targeting through this incentive agreement; again, that's without any incentives to hire from these community's today as a matter of our current operating model. 11 percent of our workforce today is African American, and 13 employees presently are residents of Overtown and the redevelopment area. MDM believes in local partnerships. We've got an extensive history, which I'll tell you a little bit more about shortly, working with local institutions to become part of the communities in which we invest. We purposely set about creating intentional demand by keeping our program very limited. This project, as I'll discuss further, really is intensely focused on the hotel and convention and meeting services. At the end of the presentation, we will discuss how that relates into creating opportunities for off -site retail and other services that can be anchored by local entrepreneurs. Finally, because of their good work and track record, our principals were acknowledged -- that work was acknowledged recently with a Lifetime Achievement Award by the Urban Land Institute's Southeast Council. Next slide, please. We're very proud that, coming into this meeting, we've actually been working very diligently over the last 18 months to execute on a series of partnerships that will undergird this effort in working with community. Historically, we have had an extensive partnership with organizations like Sylvester Cancer Center; the Miami Children's Initiative in Liberty City; Big Brothers, Big Sisters; the United Way, and Chapman Partnership. And we hope that this project will expand our corporate philanthropy and partnerships in large measure. Today we have executed -- we're happy to report, and it's reflected in the agreement -- an MOU (Memorandum of Understanding) with Miami -Dade County Public Schools, focused on targeting high-schoolers coming out of the various academies: hospitality and tourism, finance logistics engineering; all disciplines that are going to be necessary in the operations of this hotel to create learning -to -work opportunities with a goal of hiring them either into a permanent career or into a transitional job that will allow them to continue their education, hopefully join the hospitality industry. For those of us who are from Miami -Dade, we know that we've had a checkered history in terms of the involvement of African Americans in the hospitality industry, as evidenced in the past boycott here in 1992. And we hope to work through Miami Dade College, Miami -Dade County Public Schools and others to basically increase the number of African Americans specifically that are working (UNINTELLIGIBLE) jobs at our facilities and to that end, we're actually targeting or channeling our partnership with these institutions, and focusing on high schools that have a majority African American population; specifically, Edison, Northwestern, Booker T. Washington; and the fourth one is Jackson High School. We're also working with Goodwill to support their mission. They have a facility in Liberty City that will provide our laundry services for the facility. They actually have a very sophisticated plant there in operation that'll have a double bottom -line effect of not only helping them round out their surplus capacity, but expand their ability to hire folks with disabilities, folks with less than perfect employment records, and we've committed as part of our contract to supplement our per -pound remittance to basically help with an additional operating contribution. And we're also working very hard with the Overtown Youth -- Children's Coalition to prioritize family and children's issues in Overtown. We recognize that this community has to be healthy; it has to be successful if our project is going to be successful, as well. We want to make sure that families and children are achieving the best social and educational outcomes they can in the neighborhood. Finally, we're very focused on the fact that there is a lot of additional hotel products in addition to our own that is coming online, and so we're elaborating on a partnership with CareerSource to ramp up training and efforts and increase the workforce -- available workforce within Miami -Dade County. Moving on to the next slide, what we're asking for is, we think, very straightforward. We are -- we expect that this project will be valued at about approximately $525 million when on the tax roll. That will generate approximately $6.1 million in recurring revenue that would be deposited within the CRA's Trust Fund. We initially had asked for a 75 percent incentive package. Through City of Miami Page 33 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 negotiations, that's been reduced down to 65 percent, with the CRA staff. And we're happy to report that this request was reviewed by a third party consultant on behalf of the CRA, who believes this request to be well on the low end of similar contributions provided to projects of this kind by public sector agencies. So we think that this is a very good economic deal, in addition to a very good community and inducement deal for the CRA and Overtown. We hope that the surplus revenues that will -- or the additional revenues that we will generate via this project, as well as revenues that may be capture if, in fact, the extension that is an essential part of this request goes forward -- that's to an extension of the life of the CRA -- will help fund activities in other priority areas; those being affordable housing, we believe; workforce training and development; children and youth services; and also, in focusing on physical redevelopment projects that help recreate or pay homage to the history and culture of Overtown. Next slide, please. In going through the negotiations, we were presented with a number of requests, and with few exception, I think we've met every single one of the demands that we've been presented with. I can go through an exhaustive list, but rather than take up the Board's time and the public's time, I'll simply highlight that -- I think there are only two items on the next two slides that we have not been able to come to terms with on the CRA; and frankly, those are not -- out of a desire not to provide the CRA with an equity stake, but we find ourselves here requesting the support because we have an equity gap. So to grant the request that's being requested would water down the benefit and undermine our attempts to procure the financing we need to execute the project. So we think that with the 65 percent TIF (Tax Increment Fund), there is sufficient residual TIF that will allow for meaningful investment within the community for projects other than the one we are proposing; and moreover, because we have negotiated -- your staff has negotiated caps on our maximum gross contribution, we expect that over time, as we out perform our projected valuations, the actual total percentage will be reduced, and the CRA will retain additional future revenues. Next slide, please. As I mentioned earlier, we have a very light program that's -- that consists principally of the convention center, 600,000 square feet; the 1,700 rooms as part of the hotel component; and then one and a halffood and beverage establishments; and very little kind of core hospitality functions actually resident within the hotel. The benefit of that is that we have various needs from our various client groups, be they convention center clients, hotel guests, and obviously, daily visitor guests that will create both referral opportunities for local businesses, as well as off -site opportunities. And so we prepared this list to just basically illustrate the kinds of services that we will -- that will need to be provided to our convention center clients that we will not be affording them through our program or through direct services as MDM. Those include, you know, marshaling, truck security, entertainment, entertainers, guides, printing and reproduction, setup and takedown of exhibits, et cetera. All of these identified, and many more opportunities are ways that we can work with the community to basically induce additional economic activity in the surrounding neighborhood. Next slide, please. In the area of our hotel clients, because our program is so constrained, there are typical kind of amenities, like expansive gym, a spa that will not be available within the property's footprint. That will allow us to create what we would call a concierge referral program where we could work -- and we've included this in the incentive agreement -- have fairs, identi opportunities; work with local vendors to screen them, to approve them, and then create a referral network. So as our guests come in and ask for these services, we are basically externalizing these opportunities to the neighboring community. Next slide, please. And lastly, the project itself by virtue of its operation, will also create demands for retail and other -- food and beverage, and service opportunities within the neighborhood itself. Childcare will become a paramount issue. They're not presently probably adequate significant -- sufficient childcare facilities in the neighborhood to service our hotel employees. As I mentioned, beauticians, bike rentals, dining and restaurant opportunities will become part of the amenity package that the neighborhood will need to develop in order to really have a well functioning neighborhood and a successful facility in this regard. With that, I won't take up any more of your time; we'll close our presentation. If the Board has any questions that we can answer regarding the agreement, we're happy to field them at this time. Thank you. Board Member Suarez: I'm going to move it for discussion and get the ball rolling. City of Miami Page 34 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 Chair Hardemon: It's been moved -- Board Member Russell: Second for discussion. Chair Hardemon: -- and it's been seconded for discussion; however, before we move into discussion, I would love to hear from my community. Some of you I recognize; some of you, I do not, I've never seen. Is there anyone from the public that'd like to speak at this time? Irby McKnight: Good evening. I'm Irby McKnight, chairperson of the Overtown Community Oversight Board. This project has been passed by the Board. It has had several meetings where they came to the community. We didn't get any major objections, so I'm not here to oppose the project. I'm here to represent the community wishes and that this project go forward. However, I would like to see some benefits directly to the community for this project happening. For an example, we could use a scholarship fund for residents of the community so that they can improve their educational skills; that is not very difficult to achieve. Thank you on that. On another item, number two, the CRA should help local businesses and people first, as that's why it was established. Locals should have a leg up over outsiders; maybe a point system would work. While we know Samuelsson from TV (television), we also know Crescendo from the community, and would always support the community over a television personality; any time, that's what we want to see. Thank you for understanding. And remember, locals leading the way will make it possible for our young people to think they can make it, as well. Thank you very much. Darryl Holsendolph: Good evening, Commissioners. My name is Darryl Holsendolph, representing the Miami -Dade Branch of the NAACP (National Association for the Advancement of Colored People). This is about my third time actually hearing information on this project. Back in September of last year, I got information from a Mr. Joe Hendon that lists about 60 opportunities that clearly says convention hotels, minority employment, and business opportunities. So as I watched this presentation today, and even when we had the event at the church, we said, This project needs to make sure that there are opportunities for African Americans. "Historically, this community -- people come and say things and want us to approve and support them, and once it's approved, they turn around and give us the finger. So, you know, I'm extremely disappointed that we've had several conversations about the -- and I think they're disingenuous, because now I'm hearing about liff-site. "When you're build in convention property, it is all-inclusive. You don't put the moneymaking things away from the property. So just in the things that they present today makes me feel that it's a bait and switch again, because here's what they initially said; and now this presentation shows something totally, totally different. All the services that generate revenue -- they already talked about construction, but the money is post -construction. Business opportunities would go on forever if we're granted those opportunities, but it seems like things are changing. I did speak with them prior to coming up, but I'm just extremely disappointed, because we've said since September, You need to extend yourselves to our community and show this list."' doubt if anybody in this room has seen this list; about 60 opportunities from construction to preferred services when these big conventions come, but we're not in the loop. ICBB brings conventions to this time, and we're on the outside looking in. And I'm totally against this until they bring people that look like us on the team to make this happen. Thank you for hearing my rant, because I'm tired of coming to these meetings with the same developers that come and take dollars out our community and we're sitting on the outside, looking at them make money. We need to make a difference today and vote down this project so that we will get a chance at the table. Bishop James Adams: My name is Bishop James Adams. I'm the senior pastor of the St. John Institutional Missionary Baptist Church in Overtown. In looking at this agreement -- first, I want to say that I do support this project. I support what our Commissioner stands for in terms of reinvestment in the community, but one thing that is stark about this is that -- and it was a key point in the meeting at Trinity; and you, Commissioner, brought this up. In regards to ownership City of Miami Page 35 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 in Overtown, all of these projects that are coming -- Miami Worldcenter, who's going to receive a 57 percent TIF; 65 percent for others -- but there is no ownership in Overtown. This was a sticking point. This was something that you expressed to us that you were going to try to fight for. And I'm here to stand behind you in that we are not satisfied. Listen, there are other communities and other projects who give back to local communities. Two percent gross revenues MDM gives to the Miami -- I'm sorry -- to the Marriott Dadeland Project. 2.5 of gross income is proposed on the Miami Beach Convention Center. And there are others as it relates to the Innovation Tower. Why is it that a project who has been touted as being something that is going to help Overtown does not have a revenue -sharing agreement? I think that this item should be deferred, and until the point that they're willing to give Overtown over -- Overtown partnership and revenue share. It should be shelved until we are able to hammer that out. Thank you very much. Chair Hardemon: Thank you. Any other persons that'd like to speak on this item? Marquise Hardrick: Marquise Hardrick, pastor of Trinity CME (Christian Methodist Episcopal) Church of Overtown, 411 Northwest -- 511 Northwest 4th Street, Miami, Florida 33128. This agreement should not be approved today. There are too many loopholes, too many problems. First of all, I want to talk about that according to the Memorandum of Understanding among the District Board of Trustees of Miami Dade College and MDM Development, LLC, they are preparing to -- employment for 1,300 employees, but only giving a grant of $100,000, which -- representative of only $77 per potential employee. That's problematic. There is no commitment to interview or even hire graduates from that local training program. The local hiring requirement allows MDM to claim an employee that has not even lived in Overtown within the last three years. In fact, this agreement puts enforcements in the hands of a single individual, one person. And that one person is not even an elected official that the community can hold responsible. For me, this seems problematic and a major loophole. In other words, this CRA can levy down $100, 000 worth of fines, but one individual can say, 1%Imm, just give me $25,'br Give me $500, 000,'br Don't give me anything at all. "And there is no checks and balance within that system as laid out in the current agreement. For me, that's very problematic. So right now, I'm saying that there's too many loopholes, too many issues, too many instances where Overtown employees cannot be hired and still satisfied. So I'm asking that we defer at this moment the current agreement. Chair Hardemon: Is there anyone else from the public that would like to speak? Latousha Daniels: Good evening. Reverend Latousha Daniels, the St. John Institutional Baptist Church, 1328 Northwest 3rd Avenue. I'm going to first open up, as I did in Trinity when we had our meeting just a few months ago, by applauding you, Commissioner Hardemon, in your hard work in trying to make this agreement happen. I also want to publicly commend MDM as being one of the one developers that have been amenable to at least hearing out and responding to the community as far as it relates to a community service, or a community relations agreement. However, the current agreement, as my colleagues have already shared, has some loopholes; and most certainly, one of those things is a real community commitment. This community, Overtown, really needs real partners; not just people who'll say they'll do it, but really real partners, who are really committed. And one of the things that we most certainly noticed is that in this commitment, MDM could pay as little as $25,000 a year and avoid hiring anyone from the Overtown community. I know that there are other developers that are being held responsible and have to hire within Overtown; but that, as $25, 000 as a penalty place [sic], I believe in the kind of income that -- revenue they're going to bring most certainly is almost an insult to us. And so, more importantly also, they have the ability to create just part-time jobs. They don't have to hire everyone full-time; they can just hire people part-time; that is unacceptable. And so I would like to encourage, Commissioner and this CRA, for you to come back and relook at this agreement and look at real commitment, and real partnership. Thank you very much. City of Miami Page 36 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 Chair Hardemon: Seeing no other person that would like to speak -- oh, that is a lot. Then I'm expecting you all to speak. Unidentified Speaker: You all want to speak, right? Then you all got to get up here. Everybody line up. Levon Johnson: How you doing, Commissioners? Levon Johnson, 1490 Northwest 3 rd Avenue. I'm the president, CEO (Chief Executive Officer) of Ultimate Guard Protection Services. We got started about a year and a half ago with the help of the CRA and the Commissioners. Thank you, Commissioners, for allowing us to put this program together. We train officers from the community and we put them directly to work. We need partnership, we need help with these local developments -- local developers coming in the area to help create jobs. We have a vast majority of Overtown residents with security license that are unable to find work, and work is coming to the community. These developers are coming in and we need their partnership to help these Overtown residents with license gets jobs; therefore, we can come with a partnership to eliminate slum and blight, and make sure people stay out of trouble. And who better to serve on these projects than the people of Overtown? So we want to stand strong and be a partner with them. Ultimate Protection Services, the staff is here -- part of the staff. We working on a project now about 95 percent done. We're in talks with Worldcenter; many other projects. But this particular item, we definitely need MDM, that partnership, to help. And I've spoken with Mr. Herden [sic], and he promised us we -- you know, we gonna make it work. And we want you to come to the area, we want you to develop, but we want to be a part of it. Thank you. Chair Hardemon: Are you a resident of Overtown? Mr. Johnson: Yes, I am. I've been a resident of Overtown 29 years. And I applaud you, Commissioner, for all the work that's being done. I see it, we grasp it. We want to be with you. I appreciate it. Chair Hardemon: Thank you, sir. Are you speaking, sir? La'Shawn Naylor: Good evening. My name is La'Shawn Naylor. I'm a devoted resident of Overtown for 51 years. I would like to address some of the facts of Overtown. I've been to several agencies applying for jobs, and some, I've gotten success; some, I haven't. But there are not no long-term goals. You know, I'm a single parent of four, and I also have five grands. And I've been incarcerated, so, you know, I have some flaws; but I've cleaned that up, and I'm in school currently now for a computer class to learn Microsoft ware. What I'm trying to say to you all today is -- I have a AA (Associate of Arts) degree. I've been to school 12 years; I have a high school diploma; and I've been up and I've been down. I've experienced homelessness and everything else in the Overtown community. I have also attended and been a part of several projects in the Overtown community as far as building as a buck horse operator in the construction field. These jobs are good temporarily, but I'm looking for a long-time goal; something that I could retire and sit back and look back upon, you know, and share with my grandkids and grow old with. I'm asking you today if there's an employer, a voice here that's listening that can give me some assistance with jobs, housing; you know, something that I can long-term with; you know, something that I can be comfortable with and I can sit back, and enjoy my later years. I'm 51 now, so I don't know how long I have and I don't want to waste it. I'm asking you all, as a devoted Overtown member for 51 years, someone on this committee step up today and do something for the single black female parents in Overtown that's trying to climb the ladder of success, and succeed. Thank you. Chair Hardemon: Thank you. Before you speak, I'm hoping that someone from Convention Center Hotel really takes her seriously and is approaching her about a job. You talk about in this agreement the number that you have that you're required to hire from Overtown. I don't know; it's not as high as I would like. And so you could start right now; that's development. But City of Miami Page 37 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 Sumarra Thomas: Hi. My name is Sumarra Thomas. I'm a resident in Town Park Plaza South, and today I'm talking to you guys because -- about the work in Overtown. Every time they have a job fair, they say they going to hire the resident in Overtown; we a first priority. I done been to every job fair that's Overtown and all -- I don't have a job. It's like every time you call -- you go. Overtown resident is first and then you go and you apply for the job and you call them back, it's no work. And it's like the companies come Overtown and promising us jobs and it's no jobs over here, and that's my concern. You know, y'all come over here and build and, you know, it's no jobs for the residents in Overtown. They hire everybody else, but they don't hire us. And if they is hired they -- we on the job for three or four months and then we get laid off, and that's my concern. Chair Hardemon: Thank you very much. Ms. Thomas: You're welcome. Wendi Walsh: Good afternoon, Commissioners. My name is Wendi Walsh. I am the principal officer for United Care Local 355. We represent approximately 7,000 hospitality workers, including hotel workers here in South Florida. We're at 1525 Northwest 167th Street in Miami. A lot of our members are here today. And first, I just want to thank the Chairman and the Commissioners for the support that you've given to our members in this project and over the years. I think it's no secret that we have been very passionate about this project over the last couple of years. And from the start, our goal has been to make sure that this project brings good jobs to the residents of Overtown, like the two women who just spoke, who are just looking for a good job that they can rely on for themselves and their families. Our belief has been that a labor peace agreement with MDM is critical to achieving that goal, and I'm very happy to report that we have achieved a labor peace agreement with MDM, which we are very happy about. I do understand that there are outstanding issues that are going to come up here with the Commission today, and we support our allies and their concerns about the project and the direction, but we do think that a labor peace agreement having been secured is a way to alleviate some of the concerns that have come up around the permanent jobs, in particular. You know, our members are housekeepers and dishwashers; they're mostly people of color, mostly women, and these are the folks that we look out for every day. If this project is to go forward, our intention is to work in partnership with MDM, to provide applicants from Overtown, to make sure that folks get hired, get trained, and have the ability and the skills and training that are going to be necessary; not only to get hired, but to be successful in those jobs. Thank you. (Applause) Ken Degori: Good afternoon, Commissioners. Ken Degori. I am the operating partner of liven Miami, 29 Northeast 11 th Street, which, as you know, sets on the border of Overtown and Park West. As a local business that has put its money where its mouth is with a more than forty -million -dollar investment; which also employs more than 300 people, the better of half of which are of minority groups, I would like to speak as an emphatic supporter of the Marriott Marquis Tax Incentive Plan, and I think that the tax revenue and the employment opportunities speak for themselves. Thank you. (Applause) Chair Hardemon: Please. That -- I don't know -- I almost said something offensive. That means no clapping. IfI bang the gavel, that means quiet. We have to have decorum. There's no clapping at these meetings, okay? If you want to show support, wave your hands, but no clapping. I understand that -- you know -- many of you time -- it's first time being here, but please just try to understand where we are. Yes, ma'am. City of Miami Page 38 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 Cynthia Hernandez: Hi. Good evening. My name is Cynthia Hernandez. I am the executive director of the South Florida AFL-CIO (American Federation of Labor/Congress of Industrial Organizations). Our address is 4349 South -- Northwest 36th Street, Miami Springs 33166. I'm here to express some concerns about the Economic Incentive Agreement and also to raise questions regarding it. Number one: There is no revenue share in this agreement, and that is a big concern. Number two: The enforceability is solely on the CRA director. What kind of enforcement powers does the CRA -- or does the executive director have of the CRA? There are very low penalties for hiring locally [sic]; $25,000 is really a slap on the wrist. And particularly, the penalty structure really incentivizes hiring local -- actually more part-time workers than full-time workers. And so, as I represent 120,000 working families throughout Miami -Dade County, many of whom reside in Overtown, this is a big concern for us. And I'd like to ask Commissioners this evening today that before we roll out the red carpet for developers, as we often like to do in Miami -Dade County, that we look at this agreement and we really think about who are we really revitalizing this for. You know, CRAs and TIFs are to revitalize our communities; not wealthy developers. Thank you. Chair Hardemon: Thank you, ma'am. Is there any other person? Kenneth Ratner: Hi. My name is Ken Rattner. I'm a resident of 900 Biscayne and I work in downtown, and I'm here to thank you as a Board for working so diligently on this project. A lot of people don't realize that there is no perfect deal; if there was, we'd have a perfect candidate for President coming up, and I can't think of one yet. But honestly, very few people know that convention centers around this country in every major city lose money, they don't make money, and what you guys have negotiated is a pretty good deal that I think will help the community. We need this project. We need to clean up the neighborhood. I work with the 11 and Touche Miami Group. They've put their money where their mouth is. Anyone that comes through that door that's looking for work, as long as they have the proper papers and they act professionally, they've been hired. They do the right thing. We need a couple of more companies to help build the momentum. Again, I want to thank you at the Board level, because people don't realize how hard it is to balance all this. Continue doing your good work; and after 18 months, let this thing go through. Thank you. Chair Hardemon: Good job. Thank you. Al Crespo: Well, we couldn't get through without a Trump't'eference, could we? Al Crespo. Chair Hardemon: He's going to make Overtown great again. Mr. Crespo: Sir? Chair Hardemon: He's going to make Overtown great again. Mr. Crespo: I'm sorry, I can't hear you. Chair Hardemon: Trump; he's going to make Overtown great again. Mr. Crespo: There we go. Okay, so, you know, for the last three or four years, I've attended a lot of meetings at City Hall, here, a few at the Omni; although their meetings tended to be about a minute and a half long. And I've heard all these developers come and make basically the same promises. One of the things that's never discussed is that fact that because all of these projects -- Worldcenter, SkyRise, Watson Island, this project, the condos that were built along the boulevard -- all of these projects reference Overtown as being a blighted area, which qualifies these developers for Empowerment Zone funding and tax write-offs. There are a number of benefits that accrue to developers who build in and around Overtown well before they come to your door. City of Miami Page 39 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 I've never heard anybody talk about that -- either from the developer side, or from the City Commission side -- to inquire, flow much money are you benefiting from building in Overtown when it comes to these enterprise and other zones that give you benefits for building here? "So that's something that I think you all need to factor in. The second thing I'd like to say is, you know, I think it's time that the five ofyou face straightforward the fact that you need to tackle this 15-dollar-an-hour wage and just make it across the board, and demand -- everyplace, like today, where you can put the money up, you put the money up, because it's a lot better for you to put the $15 up and give it to the people of Overtown than to give it to a developer; but at the City Commission level that you set a standard of $15 in as quick a time period as possible, and that you write that into all of these contracts and all of these agreements, because there are a lot of poor people who have just been screwed over by all that's happened in the last 10 years in this country, you know. And there's something that you all can do and I think you should do it, and get it over with. Thank you. Chair Hardemon: Is there any other person that'd like to speak on this agenda item? Mr. Crespo: Let's hear it, come on. Chair Hardemon: Seeing none, I'll close the public hearing at this time. I want to clar fy something. The statement was made earlier that everything that -- well, first, you have to understand that this is Mr. Woods' recommendation. You are the executive director. It's your recommendation to this Board of an agreement that you think is acceptable; not only for us, but for the members of our community. And so in this whole process of things, one of the things that I did was organize a meeting; a meeting that was attended by many of the people who are here today to express what things they expected from an agreement of this magnitude. At that agreement [sic], many of the things that we asked for are here in some form. And so, the statement was made that everything that we asked for basically -- not word for word -- but basically that we received. And I want to be clear about how things are different. So, for instance, when there's a wage dispute. The wage dispute that I recommended that you argue for was that if someone was being paid $10 an hour and they were supposed to be getting paid, say, 15, that if it was found to be true and the company did that purposefully that they would have to forfeit that ten -dollar payment they did make; and then, also, the $10 -- $15 an hour that they were supposed to make to that employee. We wanted to find a way to encourage: One, employees to come to us to let us know that they're not getting paid the wage that they were guaranteed; and then two, to dis-incentivize the company for attempting to get into some form of -- well, really, wage theft, if you will. Currently in the agreement, for instance, it says that it is -- for instance, it will be $10 an hour plus 20 percent of penalry fee, which is different, and that difference may or may not be something that would discourage them from doing it; so things like that. Also, for instance, we talked about the wage, and I believe that you have it coined as enhanced living wage. "One person that knows what the enhanced living wage would be, would be Mr. Nitin Motwani. I'm not sure if he's here or not, but he knows that it is the living wage -- Board Member Suarez: He invented it -- Chair Hardemon: -- plus one dollar. Vice Chair Gort: Right. Chair Hardemon: It's the living wage plus additional funds; not necessarily one dollar. And within our documentation, it does not read that way. In our documentation, it reads that it is a specific dollar amount; that if the living wage, for instance, increased, it doesn't account for that additional wage. Vice Chair Gort: Right. City of Miami Page 40 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 Chair Hardemon: And so you have issues like that. One of the biggest things that we talked about was -- Mr. Fernandez: Mr. Chair, if may interrupt; ifI could just clam a couple points on those two items. All right if proceed or --? Sorry, I didn't mean to interrupt you. Chair Hardemon: I don't think there's much that needs to be clarified with that. Mr. Fernandez: I just wanted to clarify we do have -- in the penalty, we do pay the employee the hour that they -- as a complete -- we -- they get no credit for the hour where they're underpaid, and we pay 20 percent penalty on top of the -- whatever hour they're owed. So I wanted to clarify that point. Chair Hardemon: Yeah, that's exactly what I stated. Mr. Fernandez: I'm sorry. I misunderstood, and I apologize. On the living wage, in the prior agreement we had, we dubbed the living wage. "Frankly, it was a negotiated wage to the parties. Chair Hardemon: Enhanced living wage." Mr. Fernandez: What we're doing in this case is we're actually tracking the County's Living Wage Ordinance for services, so it'll just annually -- so -- and the floor will be set in accordance with that schedule. Chair Hardemon: Right, correct. Mr. Fernandez: Yeah. Chair Hardemon: Which is the living wage. And what we did in the last agreement was an enhanced living wage. So what you've just said is that it's a dollar cheaper under this agreement than it was, for instance, at Miami Worldcenter. What I'm saying to you is that -- Mr. Fernandez: Commissioner, actually, it's actually more, because, frankly, the negotiated wage that was in the last agreement was not actually the published living wage in the County's wage schedule. The 11.58 we negotiated in the last agreement was actually less than the 12.43 -- 12.63 that's in this document pursuant to the current living wage notice, and that -- yeah. Chair Hardemon: I could have sworn that it was tied to the County's ordinance. Mr. Fernandez: We -- Mr. Woods: But it wasn't -- what we found is that it wasn't the living wage at that time; it was actually less than what the living wage was. That's what I was trying to explain. Chair Hardemon: But it's still -- but it's tied -- I'd say -- what I'm trying to explain to is this -- Mr. Fernandez: Yeah. Chair Hardemon: -- all these agreements are supposed to move our community forward, okay? So, for instance, today we received in this agreement as you provided to us a -- the agreement was, for instance -- you were not here. So there's -- so that's a major accomplishment -- Mr. Woods: Labor peace. Board Member Suarez: Yeah, that's great. City of Miami Page 41 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 Chair Hardemon: -- labor peace agreement. That's, I mean, that is a major accomplishment that has never happened before. As I understand it, it's worded pretty interestingly here within our documentation, but it talks about responsible wages. There are responsible wages here. The way that it's listed is a bit confusing, because I'm not sure ifI have a better agreement than I had before or worse, and -- but the idea is that every agreement that we move forward should be better than the last. Every time we negotiate something for our community, we should have more benefits. When we talk about small business opportunities for a site like that -- I mean, I agree with Mr. Holsendolph. I mean, I've never seen a convention center hotel that does not have opportunities for small businesses. I went -- I had a chance to visit Caesar's Palace that has a convention center attached to it, but there were many businesses that were there -- for instance, one was a chocolate shop that, apparently, per square foot, earned more revenue than any other business that was located in that facility. So what I'm saying is that we've made some progress, but I think we can do better particularly when you're looking at a part of this agreement that says 2030, we know that our CRA -- Mr. Woods: Sunsets. Chair Hardemon: -- sunsets. And then it says that, And if this'=- if the CRA is extended to 2042, then this agreement will move forward with that and continue to get TIF revenue. So you're going from $50 million to $115 million, but where is the value in that for us? I mean, is not going from 50 to $115 million worth something? I mean, is that not worth all responsible wages? Is it not worth a ownership, or some type of revenue sharing? Is it not worth -- if, for instance, if in 2042 this org -- in 2030 this organization sunsets or it gets extended to 2042, and it sunsets then. MDM will have no longer a responsibility to Overtown that we can enforce; there's nothing. There is no revenue, there is no -- there's nothing but TIF. And the reason that you have the TIF -- I'm sorry -- will no longer -- will cease to be TIF. I mean, it'll be revenue that comes into the City of Miami, and the City of Miami will then be able to, you know, pay for services throughout this -- the City. However, the people who are residents of Overtown cease to have any real stake and value in that property compared to having a small revenue sharing; which, as I understood earlier, has been paid by other projects similar to this and by this company itself MDM; not necessarily the one that we're contracting with right now. And so, you know, I'm just of the opinion that there is still more work that can be done. I'm of the opinion that going from 50 to a possible 115 or so million dollars has value. I'm of the opinion that the penalties are very low. These penalties are lower than what we had with Worldcenter. That -- these penalties are lower than what we had with Worldcenter. Mr. Fernandez: Commissioner, I -- Chair Hardemon: One second, one second. The percentage -- the dollar amount per percentage point are lower. We started with Worldcenter asking for $100, 000, up to $100, 000 in penalties. And in a lot of these agreements here today, it doesn't reach a quarter of that -- or it reaches a quarter of that. And I think that we've -- I certainly don't think we made as much progress as I would like to see. And I -- you know, there's a lot -- Overtown/Park West could use this type of facility. I think it would do good for Miami -Dade County and Overtown, but the people -- I mean, as you heard, then the people have to be able to benefit from it. And I don't know if the way that it's written if enough benefit would come from it. I may or may not have the support of my colleagues when it comes to something like that, because we want to see development more forward, but I'm not satisfied. And I'm not going to get too further into it. I'll just tell you that this is your proposal, and I hope that you're willing to stand on it, because it's your proposal. And when I look at this, I don't think we bargained well enough for where we are today, but, you know, that's just my opinion. Commissioner Suarez, I know you had something that you wanted to say. Board Member Suarez: Oh, man, it's a mouthful. All right. So, you know, obviously, first and City of Miami Page 42 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 foremost, I think that a convention center is needed and is beneficial -- extremely beneficial to the City of Miami; certainly one in the urban core. And I think sometimes we get bogged down by some of the deal points, and we lose sight of the bigger picture, which we need to be reminded; no further than what happened in Miami Beach just a few weeks ago, where by six percentage points, the residents of the Beach voted down their convention hotel, which is going to have an impact on their economy, for better or for worse. Obviously, the people of that city spoke. 1 think, you know, I wouldn't mind going through some of the specifics, because there were some things that were said, and I just wanted some clarity on some issues. One issue was the fines and the penalty. My understanding is if, for example, the hiring wasn't met for whatever reason in Overtown that the penalty would be $1.5 million. Mr. Woods: What -- the -- yeah, that's on the -- Board Member Suarez: Construction. Mr. Woods: -- labor side -- Board Member Suarez: Right. Mr. Woods: -- on the construction. And what I think we have to keep in mind is that -- Board Member Suarez: And on the continuing jobsite, it's like $900, 000 a year. Mr. Woods: Well, that's the total exposure. Board Member Suarez: Right. Mr. Woods: Remember what happens here -- and I don't know if the public has had an opportunity to read through the whole agreement -- that $25, 000, which most spoke on regarding the permanent employment for the full-time hiring is a number for the redevelopment area, which the redevelopment area is a lot small -- well, it's smaller than the whole Overtown area, but there are different layers that they will have to pay penalties for if they don't hit certain goals. Now, 1 will say that as we were finalizing and tweaking the penalties, what we did on the construction side was we inverted the penalty structures to where it was weighted more heavily in the redevelopment area. We just didn't put that in the document, because it should have been the same for the permanent employment. But having said that, the total amount of exposure, which Commissioner Suarez was talking about here on the labor for all of the areas if they don't hire is $1.5 million; that's for the labor. And then for the skilled, the total amount is $2.1 million. So what people are looking at -- Chair Hardemon: And that's the total amount if they don't do -- they don't meet any of it? Mr. Woods: Oh, I'm sorry; it's total all together. I'm sorry. It's 2.1 altogether. Chair Hardemon: And so if they don't meet any of the hiring requirements -- Mr. Woods: That's -- Chair Hardemon: -- it's only 2.1, right? Mr. Woods: Right, right. So what 1 think is happening is you're looking at one line item and you're just saying, Well, for that particular line item, that's not enough. "And in this case, I would agree on the permanent employment for the redevelopment area, it's not enough, but it was -- we intended to invert that from the wider area from the whole County and weight the redevelopment area a little more heavier when it came to the penalties; not necessarily increasing the total City of Miami Page 43 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 amount of exposure, but making it weight more heavily in the redevelopment area. But for the total amount of exposure in penalties for the permanent employees, it's 911,000 a year; the total amount of exposure for penalties. Board Member Suarez: No, no, I mean, I have a lot of questions and other comments but -- Chair Hardemon: No, you can move ahead. Board Member Suarez: -- look, I think that was one of the issues. I just wanted some clarity on that issue, because it was brought up by someone who came up. Another issue that was brought up by someone who came up and spoke was the ability of the executive director to waive the penalty, and I don't know how the Board feels about that issue. I'm not particularly satisfied with that. I don't think that's something that is in the best interest, necessarily, of -- I mean, I don't want to even put you in that position, to be honest with you, because I don't think that's a position you would ever want to be in. And for penalties to mean something, they have to enforceable. Mr. Woods: True. Mr. Fernandez: Mr. Chairman, if I may, just on that point, we have had conversations with a couple of members of this Board, and we are happy to have those provisions stricken from the agreement. We are committed to these percentages. We're committed to the penalty structure. We think we're going to meet and exceed all of the requirements in this category. So if the Board has more comfort in eliminating, that was done basically out ofa desire to recognize if -- because there is a -- one -tier in particular -- the Overtown tier is about five blocks larger than the redevelopment area tier. It was done in large measure just to allow the executive director some discretion if we did everything we could; for some reason, there just weren't enough people available to be hired, and demonstrated that the penalty is to be waived in that context. We do not expect to be granted a waiver, so if it's the Board's pleasure, we are fine with that provision being eliminated. Board Member Suarez: I think -- thank you. 1 think another issue that was brought up -- and I want to thank the representative of Unite here, who's worked very diligently. And I think, in terms of wages, obviously, we've set some standards that I think are -- thanks to you, really, Mr. Chair. You've led the way, and I think -- and, you know, obviously, we have. And Mr. Crespo came up here and talked about how do we continue that process, and I think what we've done here in terms of the labor peace agreement, which, as you articulated, has never been done before, allows for the prospect of an entity to bargain for and protect the future employees of this institution. And I think that is something that, for me, is a major component of this. I know that was a -- you know, I know that was a very hard fought and hard negotiated agreement, and I'm very proud of it and the work that went into that. We do have a component of this deal that is important, and we hadn't been doing this until recently, and I think we talked about it in -- at Commission -- which is the developer paid a independent auditor; in other words, that the independent auditor paid out of the funds of the project. And I think, you know, one of the issues that we had is we did TIF agreements. We did all kinds of agreements, and there wasn't really an auditing mechanism; we sort of relied on the CRA as a Board, or as an entity to make sure that these agreements, after we signed them, would, in fact, be upheld. And I think one of the things that we did differently is we said, No, no, we're not going to'=- that doesn't work, doesn't make any sense. You know, we need to have someone that's independent and that's funded to audit and make sure that these -- all these standards, which are -- it's -- I mean, this is a very thick contract, with a lot of different provisions -- are met. Obviously, this is a project that I don't think is going to go forward unless they can get the extension of the Overtown CRA. And I think we have a tendency when we do a subsidy project, a TIF generator, as we talked about in our Commission meeting -- we said that TIF drivers and TIF generators are good so long as we're doing the back end stuff; which is affordable housing, et cetera. And I think we all agree that Overtown has done a magnificent job -- we've said it -- that it's done a magnificent job in City of Miami Page 44 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 investing in affordable housing. And 1 would say that of the funds that are unspent, 80 to 90 percent of them are dedicated towards affordable housing. I think we forget that a project of this magnitude definitely has a large subsidy, but it also has -- it generates a tremendous amount of TIF; probably somewhere in the vicinity of 40 to $45 million in TIF that's going to be generated through the life of the CRA -- or the extended life of the CRA if we're able to do that. And the secondary component of it is one that's really near and dear to my heart, and should be near and dear to everyone else's heart, I think, which is -- depending on what the County does, if they do agree with this extension; and depending on who you believe and what kind of an extension it is -- it could provide anywhere from 200 to $350 million of TIF, which could build a tremendous amount of affordable housing, and could stem the tide of gentrification, which is a big issue in Overtown; it's a big issue in Liberty City; it's a big issue in -- everywhere in the City of Miami. It's a big issue in Little Havana; it's a big issue all over the place. And the biggest problem that we have is our land cost. And, you know, what we see happening right now in the County is they're using their own assets to build affordable housing. They're doing one in my district -- Smathers -- where they have two public housing projects that they're renovating; and then, they're building an additional tower on the envelope. And I think they're doing -- they're contemplating doing one in your district, Commissioner. And, you know, the point is that they have land with capacity, but they don't have the money. So unless we start thinking about how we're going to invest in preventing gentrification in our community, we're going to -- the statistics that we've been seeing, we're at -- 20 percent of our impoverished areas are losing population; whereas 20 -- you know -- whereas our more wealthy areas are gaining 20 percent in population. That trend, unfortunately, is going to continue. So, you know, I mean, those are thoughts. You know, I heard and I listened to the bishop, who I very much esteem. He asked me -- actually, he called me and he asked me to write a letter in favor of the labor peace agreement, which I did, and it -- you know, I think it in part helped get there. And so that was a community concern that he expressed to me, and I did that. As for these other deals on Dadeland or the Tower -- the Tower deal, it's in our Code that they have to sign, you know, a benefit agreement. The other deals, I don't know if they're apples to apples comparisons, because I believe in those other deals, the public entity is actually contributing land, which we're not doing in this particular case, and so I don't know; I just don't know. I don't know, I don't know if they're an apple to apple deal. I don't know enough about it. Chair Hardemon: $15 million is a lot -- you can buy a lot of land. Board Member Suarez: No, I -- listen, it'll buy you about an acre in downtown; that's exactly what it'll by -- over time, by the way. Present value is not the same. But I'm just saying I don't know that those are apples to apples comparisons. I just don't know, because I don't know enough about those deals, and nobody came to me with that concern before, so I'm just telling you that. William Bloom: Commissioner -- Board Member Suarez: Yeah. Mr. Bloom: -- Dadeland is a ground lease with the County, so it includes all those office buildings, and we're not going to be -- Vice Chair Gort: Speak into the mike. Mr. Bloom: And MDM got one of the phases to build a hotel, so they're paying the ground rent in the lease negotiated with the County. Board Member Suarez: Right. And -- right. What I'm saying is I just don't know about those deals to see whether it's an apples to apples comparison; that's all I'm saying. And no one came to me before today with that concern, so that's a concern that I have, because you're dealing with City of Miami Page 45 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 a big deal with a lot of parameters. And, you know, it's hard to make comparisons when you don't know all the details of the things that you're comparing them to; particularly in this -- of this size and magnitude. So I just -- look, you know, I've been doing this for a while. You all know that I believe in the Hospitality Institute. I think it's one of the few industries where you can start in the bottom and you can become a hotel manager; you can become -- make your way up the top of the chain. Our Hospitality Institute has been -- maybe not as successful as the Blue Shirts, but it's been in operation for many years, and it's been extremely successful in terms of placing and training people, and I just feel that it's an anchor industry that -- I don't want to lose this opportunity. You know, I've been pushing for this project to be heard by the CRA, because I really believe that it's one that's beneficial for our community. And, look, we tore down a convention center that was an inadequate convention center right next to City Hall. We converted it into a park; although that's what I think Miami Beach should probably do with theirs. And -- because that's what I think their residents want, to be frank with you. But I think we in the City need to have a convention center; it needs to be in the heart of our City; and, you know, I'm obviously open do discussion and what are the better deals that we can get for the CRA and for the City, but I'm generally supportive of the project, and I think I've been very clear about that. I've been very straightforward about that, and, you know, I hope we're able to get there. Board Member Carollo: Mr. Chairman. Chair Hardemon: You're recognized, sir. Board Member Carollo: Thank you, Mr. Chairman. I want to begin by thanking everybody that has come out. Obviously, this is important for our City, Overtown; and our City as a whole. I do believe that we do need a convention center. I do believe that the CRA's job is redevelopment. And in all fairness, I believe the majority of what Commissioner Suarez said, and I want to see if we could get there; maybe even tonight. One thing that -- I know it was mentioned a lot today, and I want to already address it, and let's start getting to if we're going to negotiate or not -- revenue sharing. I think we need to speak about revenue sharing, and I would like to, you know, hear from the developers with regards to revenue sharing. Mr. Fernandez: Mr. Chairman, if I may. Commissioner, with respect to revenue sharing, I think Commissioner Suarez' point is a valid one; it's not an apples to apples comparison. In this context, we are actually acquiring the land, so there's a significant capital outlay upfront to take down the real estate to build the facility. In those other deals, it's on County -owned land. There's no capital outlay at the inception to acquire that land. That's why you've got a base rent structure with a kicker, in essence; with a percentage of gross rents. And so I think the deal structures are markedly different, and why we do not have revenue share as characterized in those other agreements. We do have a revenue share concept here, I would say, insofar as there's a 30 percent of the residual TIF that the CRA will retain, and with a cap on total revenue to our project, over time, as the valuation grows, our percentage of the TIF will actually decrease, so that's what we've negotiated. We think it's a fair arrangement, and I think it speaks to the issue of wanting to retain revenues for the benefit of the CRA. Board Member Carollo: I don't think it's enough. Mr. Fernandez: Sorry? Board Member Carollo: I don't think it's enough. I think we're going to have issues -- Mr. Fernandez: Commissioner, I just want to -- Board Member Carollo: -- finding consensus. City of Miami Page 46 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 Mr. Fernandez: I understand that. And it may be that what we propose is inadequate; and frankly, we appreciate the hearing, and we would greatly appreciate your support this evening. This deal, in essence, will net this project at 65 percent; roughly 35 to $36 million in the present value. And if you look at the analysis, it's not my words. I'll just read you very quickly an excerpt from your own consultant's analysis, which concluded -- and I'll -- a couple -- The level of public support for a high impact generating project is relatively low considering other large convention hotel projects. "Another quick excerpt: The resulting leverage'= IRR (Internal Rate of Return) -- approximately, it's 14.9 percent or 12 percent without the TIF. These figures drop significantly under more conservative revenue estimates. These return on equity figures could be considered somewhat low given the cost and risk associated with the project. "So that's the agreement as presented without any further modifications. I think if we depart too far from the structure, frankly, the deal, with all the other requirements that we're being asked to undertake, really becomes infeasible financially for our client. Board Member Carollo: Mr. Chairman. Chair Hardemon: You're recognized, please. Board Member Carollo: And again, I started out saying that I believe in this project. I believe this is what the CRA is tasked to do; help redevelop an area that's very badly needed. I think, in general, you could get the large majority of the people to support this project. However, I don't know if we're there yet, and I don't think you may have the support, maybe, tonight. I think maybe that we do need to defer it and work on it more; I'm not sure. I just don't -- I'm not seeing you getting the support tonight. So, you know, I'll listen to my -- the rest of my colleagues and we'll see where it goes. Mr. Fernandez: Okay. Chair Hardemon: You're recognized. Board Member Russell: Thank you. I'm very thankful to finally be at the table, sitting and able to speak openly. This sunshine law really gets in the way here. But here we are, and this is our chance to talk with each other, and this is our chance to be the last stand of negotiation with this developer. Clarence -- Mr. Woods has done a great job, but you're dealing with professional negotiators here. We have a professional lobbying firm, we have a professional developer, and they come to the table and set the table, and then we chip away at it. They say, We want 75 percent of the tax we generate to come back to us. "And we say, Well, how about 65? "And they say, flow about 70? We're okay. "I think we can do a lot better than that, because I think we have a responsibility that hasn't really been brought up here as much tonight. We're fighting so much over each of the benefits and each of the penalties and each of the items that are very important, but the biggest issue -- the elephant in the room here is the TIF deal itself. And if we're so worried that we're going to lose the deal if we rock that boat, we really need to step back and look at what we're dealing with. I'm brand new to this. I still speak in laymen's terms about the CRA. And ifI understand it correctly, a TIF generator is a good thing to incentivize a developer to come here so that we can generate taxes in an area and use it for good. What do we have to do to get them to come? That's our job; is to incentivize a developer to enter a blighted area and invest in it. He's not entering a blighted area. He's entering a beautiful piece of property between Worldcenter and one of the greatest train stations that this country is ever going to see. He is entering a fantastic position to have a beautiful convention center that this city is going to love. I am not trying to blow up this deal right now; I want to see this happen. I know it can happen and I know we need it. In my business, I've been going to conventions for 30 years -- the Javits Center in New York; the Orange County Convention Center in Orlando; the Salt Palace in Utah. I've seen what a good convention center can do to a community and the businesses that pop up around it and the things you draw, and we have -- all of those we've been to -- that I've been to -- don't hold a candle to what we offer in Miami if we had a really good City of Miami Page 47 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 convention center, and we're going to start drawing some of these excellent expos down here. Some of these conventions that would normally go to other cities are going to get really excited to come here. So I'm not an opponent to this; very much in favor of this. I just think we can negotiate a better deal. $115 million of our taxes going to this deal, is that what we need to get them to the table? I don't think so. I think their level of acceptance might be a lot better than that. Let's take, for example, if there were no deal on the table at all, because if we're getting back 70 percent, 70 cents on the dollar of every tax they generate -- let's say if there were no deal at all, what would they do, or what would anyone else do? Even if someone came in and did a development 30 percent the size, instead of a $750 million development. Let's say they did a quarter of a million dollar development, and there was no TIF deal, that would still generate the same amount of money for our CRA that we're getting from this deal. So we're giving away a lot, a lot, a lot, a lot. All the other things that we've brought up tonight, I'm really glad to hear, because those were all on my list, too. The labor peace agreement, I'm glad to hear we're all onboard with that; and I'm really glad to hear at the eleventh hour that it came through, and I applaud you very much for that. I had issues about the waiver of penalties; solved. I think that's excellent. To put Mr. Woods in that position where the pressure is going to be on to waive these penalties, and whether or not these penalties are achievable or not, or -- you know. And when they don't, if they didn't meet it, for you to have to be in the position of justyYing what they did or not to get out of the penalties, that's -- if we're waiving a penalty, that's a failure. If we're assessing a penalty, that's a failure. The only success is that they met the hiring goals. And part of the reason, in my heart of hearts, I believe that they're willing to accept taking off the waiver is -- in Mr. Fernandez' voice that he's ready to meet and exceed those goals, my worry is that he's just ready to meet and pay those penalties, because the penalties aren't high enough. 2 to $3 million -- let's say they didn't meet one single goal; they didn't meet a single goal. They didn't hire anyone they were supposed to -- but, of course, they will. I mean, they need a lot of labor. They're going to be hiring locally as far as the eye can see. They're going to do the best they can. But let's say they didn't meet any goal. That's a $3 million penalty. We're giving them $115 million. They'll write that check today. They're not held -- the teeth aren't within this -- Mr. Fernandez: Commissioner, ifI can -- Board Member Russell: -- to force them. Mr. Fernandez: -- ifI may -- I apologize. Chair Hardemon: Just to clarify for the record -- Mr. Fernandez: Yeah. Chair Hardemon: -- I'm sure what he's going to do is -- the 115 is overtime. That's the only fair comment that we'll put here, but you're absolutely correct. I mean, we still have to pay -- you're paying -- how much is it per year in incentives or in the tax rebate is it per year that we'll be paying, starting? Mr. Woods: It's 65 percent, not 70. Chair Hardemon: No, no, but per year. Mr. Fernandez: It's 4 -- it's $3.958 million, sir. Chair Hardemon: Okay, thank you. Board Member Russell: Thank you. So for every year that we -- they generate 6 million in gross revenue, we're giving almost 4 million back, and that's -- what's left is for the CRA. And over time, to think of that as a positive, it's very good, but does generate, but did we need to give that City of Miami Page 48 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 much away to get them there to bring this deal about? And I think rather than allowing them to set the table at which we come to negotiate, knowing the numbers a little better, perhaps the table could be in a more equal favor for the City and for the developer. Could they survive if, rather than giving them back 75 percent, we were giving them back 25 percent? Could they survive if the penalty, rather than $3 million for complete noncompliance were $9 million, if we tripled that penalty; if it had just enough bite to it that we know they're going to reach it? And if the worry is -- and I do understand and I really appreciate Mr. Fernandez for being so open about the goals. The -- reach -- meeting the CRA goal is very achievable. Meeting the Overtown goal, that's double the CRA goal when the Overtown overlay is not double the size of the CRA is going to be difficult to meet, maybe; or maybe it's going to be very easy to meet, because it's -- Chair Hardemon: We're getting new residents, too. We're getting new residents. Board Member Russell: Exactly. So, you know -- Vice Chair Gort: Quite a few of them. Board Member Russell: -- if those numbers are -- you know, he -- they should feel worried that a waiver isn't in place, because the penalties should be painful enough that they're going to meet the goals; we're forcing them to find the employees, train the employees; you know, hire locally and do it right. I think everything here is -- that we're doing is on the right track, and what I'm proposing is quite a departure from the proposal that's been put to us today. It's nearly a third of the TIF that they're asking for. And it's triple the penalty if they don't meet, but that's where I am. And I expressed to them the other day when -- in my office and -- that under the current terms of the settlement, of the offer, I'm a lio, 'but I don't want to be a fio. " Mr. Fernandez: Commissioner, ifI can just address a couple ofpoints. Since I haven't had an opportunity to speak to all of you as a body before on this matter, I think -- Chair Hardemon: Before -- Mr. Fernandez: Yeah. Chair Hardemon: -- you go into it, I just want to make sure that -- are there any other comments from the dais? Mr. Fernandez: I apologize, Commissioner Gort. Mr. Bloom: I did have more comments. Chair Hardemon: You have more -- I want to make sure you get an opportunity to speak, but I want to -- Vice Chair Gort: (UNINTELLIGIBLE). Let him finish it. Chair Hardemon: Go ahead. Vice Chair Gort: I'll yield to you. Board Member Suarez: I want to yield to -- Vice Chair Gort: I'll yield to you. Board Member Suarez: -- the Commissioner, because -- City of Miami Page 49 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 Vice Chair Gort: No problem, go ahead. Board Member Suarez: No, I really want to -- Chair Hardemon: Well, since you all -- Board Member Suarez: -- yield to you. Vice Chair Gort: Now, look, mainly, I think we all understand the importance of the convention center. We all understand that tourism, how important it is. I was in a meeting the other day with the Greater Miami Convention and Visitors Bureau, and we were talking about the -- how things are changing. Today people go to the convention, but they don't go by them self [sic]; they take their family. Miami's an idea place to bring the family. We all want to do this, but at the same time, you need to understand this is a community -- and I remember way back, it used to be a great community. All of a sudden, they started building the expressways and so that ruined a lot of the City communities. And they deserve to get something back. And let's face it, you can create affordable housing, but if those people that live there don't have -- they're not earning the income they need to survive, it's going to make it very impossible. So talking about the -- if we can increase the 115,000 you need to maintain the increase in living wages permanent -- Mr. Fernandez: We are. Vice Chair Gort: They'll be permanent employer [sic] forever. Mr. Fernandez: We are. Vice Chair Gort: Somehow, the one thing that people lacks in here is we've had a lot of people making a lot of promises in here, but how can we make sure that those promises are going to be done? We might not be here in a few years. Who the -- how are we going to make sure that those compliance take place? Who's going to take charge of this? Who's going to do it? And like I said, I don't agree that everything should be put on the executive director. I think this should be supervised by us and someone else, too; the whole Commission. Board Member Suarez: Mr. Chair. Vice Chair Gort: I think we're almost there. We need to just sit down and go over the penalties. Board Member Suarez: Look, I -- we've done in the City several deals that are percentage of gross with a minimum rent where we supply the land. We did it with Grove Harbor Marina or Scot -- well, it's Grove Harbor. Actually, all of our waterfront leases are -- or where the City is the owner of the land -- are minimum rent with a percentage of gross. If we were to buy this land and we wanted to, you know, lease, do a long-term lease where we were doing a minimum rent with a percentage of gross for a convention center, I think that would make sense; that's why I'm thinking that it has to be an apples to apples comparison. As far as I know -- and I could be wrong on this, but -- and I've said this before in Commission meeting -- in CRA Board meetings -- but a billion times zero is zero. Two billion times zero is zero. Chair Hardemon: It'll not be zero. Board Member Suarez: What's that? Chair Hardemon: It won't be zero. Board Member Suarez: No, no, I'm just telling you, a billion times zero is zero. Two billion City of Miami Page 50 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 times zero is zero. We've done, I believe -- if I'm not mistaken; maybe I'm wrong -- at least since I've been here, I think we've only done three TIF deals. Mr. Woods: This would be the second. Board Member Suarez: Okay. We did the Tibor Hollow one. Mr. Woods: That was in the Omni. Board Member Suarez: Okay, that was in the Omni. Is that built? Mr. Woods: No. Mr. Bloom: No. Board Member Suarez: Okay, so it's not built. Is the Miami Worldcenter Project built so that they're getting TIF back now? Mr. Woods: No, not yet. Board Member Suarez: Okay. So how much has that cost our community so far? Mr. Woods: Nothing. Board Member Suarez: Right. How many jobs has that produced? Mr. Woods: Jobs? That -- Board Member Suarez: Yeah. How many jobs has that produced? Mr. Woods: None. Board Member Suarez: How much development has happened in those two projects? Mr. Woods: None. Board Member Suarez: Okay. So I don't know what's going to happen in the urban core. You may be absolutely right; maybe a development a third the size happens there; maybe a development three times the size happens there. I don't know what the density -- allowable density is. I do know what hasn't happened there in a long time, and it's been a vacant lot since the Miami Arena was torn down; it's a vacant lot now. And you're right, you know, it may be a -- you know, it may be a deal where we can pass on the deal and -- you know, and maybe it happens today; maybe it doesn't happen today; maybe it happens in five years, in 10 years, in 15 years; I don't know. So I just -- I wanted to provide a little bit of context, because we threw out a lot of things there that are -- that sound good; and certainly, everybody here can be a negotiator. We have -- what, how many? -- 200 negotiators in the room here today. But, you know, negotiation is about a give and a take. And at some point the person can walk or the person can stay. And, you know, again, I'm willing to continue the conversation, but a billion times nothing is still nothing. Board Member Russell: Mr. Chair. Chair Hardemon: You're recognized, sir. Board Member Russell: It's absolutely true, but unless we're willing to walk, we can't negotiate City of Miami Page 51 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 the best deal. Board Member Suarez: Okay. So let's go. Board Member Russell: We have to be able -- be willing to walk away from a deal that's not good for the City. We're talking about Marriott here. This isn't just a small-time local developer. Board Member Suarez: Right. Board Member Russell: This -- if -- Mr. Fernandez: Commissioner, it's -- Board Member Russell: They recognize the value. They recognize the value of a convention center and a hotel in this exact location. I don't want to lose them, but I don't think we're going to. Board Member Suarez: I hope you're right. Board Member Russell: I think we're going to cut a good deal -- Board Member Suarez: I hope you're right. Board Member Russell: -- that will work for them, and is definitely going to work for the City. Board Member Suarez: I hope you're right. Chair Hardemon: The one thing I will say is that in this -- sitting here today, being able to hear the opinions of my colleagues, I feel heartened. I feel heartened, because there are many things that I made known to my community when we had the public hearing that I want to see in this document that just aren't there the way that I expected them to be there. And I think with everyone listening to what we're saying, I can see that many of you will -- some people may say that Commissioner Russell is unreasonable in his demand of wanting a third of the TIF. But is he? Am I more reasonable because I haven't challenged the percentage the way that he has? We don't know. We don't know these things. Part of the reason we don't know these things is because we don't know if they need the money like they say, you know? Those things had not been in -- from what I see from the documentation that's in front of me today. Maybe it's different, but those things haven't been presented before us today. We received a memo from someone who looked at a type of deal like this who said that this deal was good. I think that this deal is good for a community in the sense that it provides these opportunities. But the question has to be whether or not at this junction [sic] today this agreement is ready to move forward, and I don't think that it is. And there was a statement that I made when Worldcenter passed, and I said, You know, this agreement isn't perfect. "And I -- one thing I said was that -- and I made this comment to you before, Mr. Woods -- that Worldcenter -- The best deal that the CRA has ever given is behind us,"meaning that when Worldcenter was considering coming to this community, there was really nothing there for them to come to. Now that we have Worldcenter, even in its reduced size, there is something that, as Commissioner Russell explained, that this development is being introduced into, because you have many different projects that are walking distance from this project that are going to be tremendous TIF generators that -- and some of them have not requested any TIF from. And so when you talk about all the different issues that we've brought up, and you talk about even revenue sharing, I mean, my goodness, it's revenue. I'm not trying to take blood from a rock, but, you know, it's revenue. And so I just think that there is lots of work that could be done. I think that Miami is in a great position. I think that we will receive a convention center. We will receive -- we continue to receive TIF off of this project. And if the developer chooses to walk away because we couldn't get revenue sharing, we couldn't get City of Miami Page 52 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 responsible wages for our people that live here, we couldn't get the things that I think are just socially responsible, morally upright, then the shame is not on us. The shame is not on us. We are in a position of strength, because we have the potential revenue. It may not be as great if they don't build the project that they proposed to us today, and if they choose to build something smaller, just because we decide -- because we said that we want better for our community, then we should not feel bad. I want -- at the end of the day, I want to be able to go home and feel good about the decision that I made. And many times, you know, it can be a challenge. And in this one -- and as yet, it's still a challenge. When I read the Miami Herald, I want the Miami Herald to reflect that, you know, we did our best to make this a deal that is acceptable for our community. Many times, the Miami Herald won't do that, and the Miami Herald has never represented the Overtown community. I will tell you this: When Colored Town was Colored Town and Miami Herald was Miami Herald, it never reflected the values that we want in our community, so, you know, don't hang your hat on it; but at the same time, they have a duty to report at least the truth. And the truth is that we have to be able to show that we did our due diligence for this community. And I think that the developers will continue to push for what they want, and they should, because that's what they pay their lawyers to do. And so I just want to know that the person I'm paying to negotiate on my behalf -- you, Mr. Woods -- that you do your due diligence for us, also. Mr. Woods: Absolutely. Board Member Russell: And we'll have your back when you do. Chair Hardemon: You're recognized, sir. Mr. Fernandez: Commissioners, I think they're all fair points you're making, and the deal has to make sense; not only for the community, but it's got to make financial dollars sense. And we've spent the better part of the last 18 months in conversation and negotiation with your CRA just to get to this moment. Quite frankly, from what I'm hearing, the chasm is so large; I'm not sure we'll be able to bridge the gap based on the comments I'm hearing, simply because you have to recognize with what we're requested to do from the community standpoint, there are additional upfront costs that those requests impose upon the project that otherwise wouldn't be there. And our challenge is not amortizing cost over time, backend cost on the permanent employment side. It's really dealing with the upfront cost of getting a project financed. So it's not a desire that we don't want to pay responsible wages, Commissioner; we've talked about this at length. Even if you offered us a hundred percent of TIF, we've -- share with you're the construction cost. We can't amortize or offset those costs. So what it does from a financing perspective is it doesn't advance the project's goal any further. So -- Chair Hardemon: My question for you this this -- because this is coming. Mr. Fernandez: Yeah. Chair Hardemon: If there was a policy within the Southeast Overtown/Park West CRA that stated that any development deal, any TIF generator, any grant that we give in excess of $4 million requires us to have responsible wages for all classifications, you're telling me that you would not apply for a grant for $115 million? Mr. Fernandez: For this project, I'd have to answer lio. " Chair Hardemon: Okay. And that, to me, is a policy decision, but think about that. If we are saying that -- as Commissioner Russell stated -- we want to pay $15 an hour, what we've called -- even though we have responsible wages, which can be higher than that -- if we wanted it to be our policy that all the projects that we invest in get paid a responsible wage, which is where we were supposed to be going, then you have to -- you -- if you get more than $4 million in a grant City of Miami Page 53 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 or some type of TIF structure, then you have to provide that. I guarantee you that people will still come to the CRA for funds, because there's still a benefit. So then, my question is to you: Can you describe for all of us, then; describe where your sources offunds are coming from? What is this -- your financing mix? And I ask that to you, quite frankly, because of this: Many people come to the CRA and they tell us, We can't do this if you don't give us this money." Mr. Fernandez: Correct. Chair Hardemon: And I've never understood that thought process. When Tri-Rail came, Tri-Rail explained that they needed $69 million. We said -- Mr. Fernandez: Respectfully, that's a different project; it's not the (UNINTELLIGIBLE) project. It's a public improvement. Chair Hardemon: I understand what you're saying, I understand what you're saying. Mr. Fernandez: Okay. Board Member Suarez: And by the way, that was $69 million (INAUDIBLE). Chair Hardemon: But I will tell you this: The bottom line is this: Is that we said that you need to diversift your funds; find different ways to finance the project. And we ended up investing. We potentially invest like $17 million in the project -- Southeast Overtown/Park West CRA -- which is a significant savings. So what I'm saying to you is this: Why is it that, in your words, you believe that we are the end all/be all, rather than just like any other investor; a part of the investment mix? So you're telling me that if I give $115 million that you can't find another 10, 15, 20? Mr. Fernandez: Commissioner, I think -- I hope you would agree I'm pretty good at finding money for the project. We've done it successfully in the Tri-Rail context; we've worked very hard to divers fy the funding mix there. We started this conversation -- I shared with Commissioner Russell yesterday -- not at the CRA. We started at Miami -Dade County, because, frankly, from our perspective, beyond the tax TIF that we generate, we generate significant CDT (Convention Development Tax) and TDT (Tourist Development Tax) revenues; and we've talked about this as well, sir. We started there to see if we could access some of those future revenues, as is done in many other markets. Many of these deals are a combination of TIF and tourist tax revenues, because, again, there's a direct nexus between this type of project and the receipts that it generates. So, unfortunately, because of other forward commitments that the County has, there's no capacity to strike a deal for a project like this. So we're -- unfor -- you know, better or worse, we're here at the CRA, asking for this particular agency, which is not only going to -- and I understand it's a significant commitment offunds on a project -specific basis, but I think we're also losing facts of a couple important points. One is this project will induce demand for an additional 2,500 hotel rooms, which will probably generate about another 8 to $10 million of recurring TIF a year. We're not asking for TIF beyond that which we're generating. It will generate about another $425 million of recurring economic activity in this submarket by virtue of its being located here. Again, that's going to have tremendous externalized benefits that we're not capturing. Chair Hardemon: So -- but help me under -- Mr. Fernandez: And I just want to close with this point: There projects typically -- the inducements are not for the convention center; they're for the convention center headquarter hotel; much like what's on Miami Beach. Lots offolks will say there was not subsidy involved in that deal, but there is land being contributed by the public agency at a probably below market rent given its location, with very favorable terms and exceptions to allow the hotel to stabilize. City of Miami Page 54 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 And, yes, there's a kicker over time that improves economics of the deal for the jurisdiction. In this case, we're not asking for a subsidy for the hotel. We're asking for a subsidy to build the convention center, which are typically publicly owned. The public has a risk not only through the construction financing, but the maintenance and operating cost. And as you all know very well -- I don't have to share that history with you -- the Knight Center, which is your public conference facility bleeds the City a significant amount of money annually, as Mr. Ratner mentioned. So we are just looking for some support to help lower the cost of construction of what would otherwise be a public facility, and, you know, we met before. You asked us to go back and work with your staff to further show you our financials, share with you some more diligence about our expected pro forma. We've worked with your third party consultant. We've told him that we have a debt to equity mix of roughly 50/50, and his results are in your packet. I think his results don't speak for me; they speak for themselves. He's analyzed these deals across the country, and this is an inherently responsible deal. I understand we could always hope to have a lower TIF. I would say to you if a lot of these project obligations with respect -- particularly respect to construction and construction -related cost, which are, frankly, our impediment -- were lowered or removed, and we had commitments with respect to permanent employment, which I think is what we all want, is to give people in the community a chance to succeed and have a future that's meaningful, with a strong career, we could probably do more over time, because we receive the funding over time. From a time value perspective, there's symmetry in terms of the structure. So if you reduce some of the upfront obligations, I think we could lower our TIF request; maybe not to 35 percent, but certainly substantially below where we are today; but in the absence of that, in the absence of some concessions on those issues that impose additional upfront cost, frankly, I'm not sure how we're going to get to a deal. Chair Hardemon: Counselor, right now, the -- I'll call on you -- deal -- the CRA sunsets in 2030, just about 2030. Mr. Fernandez: That's correct. Chair Hardemon: Your -- the request will be -- and what is covered within this agreement -- is that it will sunset at 2042, and you will have then those rebates through 2042. If, for instance, we sunset in 2043, would this request have been to 2043? Mr. Fernandez: Commissioner, I think from the outset we've been very clear that we're looking -- what we were looking for, hoping for was a contribution from this agency of $50 million net present value. That request has not changed. The percentage TIF has been modified, so whether it requires to go out to 2042 or 2045, what we're looking for was $50 million net of cost to help induce the construction of this facility. So if it could be done in a shorter period of time, certainly, we'd be happy to reduce the term of this agreement. Chair Hardemon: So you said $50 million? Mr. Fernandez: Net present value; not gross, which is, I think, what's been referred to in terms of the 115 or the 50 million through 2030. Chair Hardemon: So, say for instance that this community decides -- not in this year -- that they want to extend the life of the CRA to 2042. So, for instance, I think that there -- personally -- are lots of issues that complicate the issue of extending the life in a certain way. Mr. Fernandez: Certainly. Chair Hardemon: I have the position that the CRA does not need to be extended currently, because there are so many dangers in its extension, because of adding different representatives on it, because of the possibility of recapturing additional dollars from the CRA that would go outside of this community. So there -- I think there -- for me, personally -- I mean, I could talk City of Miami Page 55 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 about that for a long time, but I'm not tonight, but -- so there are complications. So I personally wouldn't even move to extend it in my time period, and so I can imagine, for instance, this issue would come up; the community will want to have input on the community redevelopment plan, and we would have to have some input about whether or not we need it to be extended. Someone (UNINTELLIGIBLE) will tell us, You should extend it, you need extension,'but do we need it today? And I would, you know, tell my community, Well, no, we don't. I think that we could make do with what we have today. "So if, for instance, you don't get the extension during this time period, what happens to your project? Mr. Fernandez: As conceptualized, they would probably change dramatically. I mean, we have made no secrets that the project requires -- again, because the number we're trying to meet in order to build a facility of this size, you know, way below $50 million at this point, but we're at $35 million, roughly, based on the package you have in front of you. It would probably change, and I don't know how. I'd have to consult my client and their design team and their construction to figure out what the cost implications that would be; but, certainly, there's not enough capacity in the near term through 2030 to bring forward the revenues we would need in order to realize the project. Chair Hardemon: So you wouldn't try to find additional resources to invest in the project? Mr. Fernandez: We could. I think -- Chair Hardemon: Besides public money. Mr. Fernandez: -- I mean, for example, could we go to the County and ask them for an economic development grant for $10 million? Potentially, we could do that. Potentially, we could do that; however, there's a long line of projects, unfortunately, that have applied ahead of us, and the prospects of that happening I would say are fairly low. Now, if between the members of this body and the members of the County Commission, they decided to reprioritize projects, that's -- if it was a particularly worthy project of that kind of investment, frankly, a $10 million grant would be a lot -- would be very meaningful, because it gets -- it deals with a lot of the time -- money -tie value issues that I've been referring to, because it's money, again, upfront, at the outset. Again, whether that's possible or not, I don't know. Today, based on what we've analyzed are the potential opportunities, this is the only viable financing opportunity. I know there's been some mention by Mr. Crespo about other incentives that developers get by virtue of their location here. I just want to remind this body the State Legislature last year allowed the Enterprise Program to sunset, so those incentives that were available before, which are, frankly, not that meaningful for new construction at the scale that we're proposing have gone away in terms of incentive to hire from the very community that you're seeking to have us recruit from. So, again, unfortunately, the universe of potential options I think is very narrow. We're happy to work with you to find other partners. I understand that this agency does not want to carry the burden on its own, but, frankly, I think we also have to recognize that you're not, insofar as the money that comes to the Trust Fund is a contribution of both City and County revenues that make up the composite of those dollars. So there is participation from not just this agency, but, again, a deferral of revenues that would go to those two jurisdictions. Board Member Suarez: Mr. Chair. Chair Hardemon: Commissioner Suarez -- Board Member Suarez: I'll yield, and then I'll listen to the Commissioner -- Board Member Russell: Thank you. Board Member Suarez: -- and then I'll say what I want to say. City of Miami Page 56 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 Board Member Russell: I appreciate you bringing up the sunset issue, and I think you -- I understand where you're going with that, and that's something that I had also discussed with the gentleman in my office; that there is no guarantee that the extension will happen, and we can't -- Board Member Suarez: True. Board Member Russell: -- promise a deal beyond the current sunset, but they're willing to get started on the deal that we offer them and -- Mr. Fernandez: Right. Board Member Russell: -- it wouldn't be 115; it would be 50 -- right? -- if it only went to the 2030 point. By the time it gets approved, they will have had to have started I would assume. There is no imminent approval of the extension at this point. And in my opinion, the extension should not be weighed on what projects we want to accomplish. The extension should be weighed on the necessity within the community. Chair Hardemon: Correct. Board Member Russell: And I have no doubt it will still be there in 15 years. Chair Hardemon: Correct. Board Member Russell: And we will still need to extend, perhaps, but that decision isn't made yet. So, like you said, I really believe that they will start if we approve a deal up to the 2030 point, and they -- if it doesn't extend, they will find -- we're not the only game in town for financing and for -- just like you said. They will -- they are very savvy and they know how to find money and this is the easiest pot to go to, but there are other opportunities that, you know. Where we get them to, they will take the baton and move it forward if they want to do this project. Mr. Bloom: Commissioners, to clarij57 what's in the agreement, if they don't get the extension, don't get the City and the County to waive the right to share under the global agreement of revenues from this project by January 1, 2018, unless they waive that requirement, the agreement automatically terminates. Chair Hardemon: Right. So they -- so you're saying that they won't -- they will not -- what's the proposed -- Mr. Fernandez: Commissioner, if I could address this point, really, what we're asking for -- Chair Hardemon: -- what's the proposed -- hold it. What's the proposed groundbreaking date? Mr. Fernandez: We would, assuming the stars aligned, like to break ground at the beginning of next year. Chair Hardemon: Right; which is before 2018. Mr. Fernandez: Correct, correct, but that presupposes we're able to, you know, work with this body to procure an extension, do all the other requisite things. Really, today, what my clients are asking for is a signal from this Board that they are willing to make this commitment should all those other things happen so that we can begin to spend a significant amount of dollars, you know, multiple millions of dollars to move towards, you know, construction documents, that we can permit, and be shovel ready when those other prerequisites are finalized; that's really what we're asking. Really, at the end of the day, this agreement provides us no guarantees of any future revenues and we recognize that if these things do not happen within that time period, City of Miami Page 57 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 likely, we will have missed the market and the opportunity to deliver this project. Board Member Suarez: And let me just say, Mr. Chair, because, you know, real estate, I know a little bit about it; it's very cyclical. So you may not have an opportunity to do a major development -- I don't know how many more major developments are going to be built. We're just finishing up one in Brickell, which is a million plus; and they have no job requirements, by the way. They don't have to give jobs to anyone in our community as far as I know. Chair Hardemon: But they don't have any public subsidy, either, though, right? Board Member Suarez: Exactly. Chair Hardemon: Right. Board Member Suarez: And that's my point. My point is you get one with the other. So when you're talking about, you know, your moral obligation, you know, I -- that hits home for me, because today, just before lunch, I had three different people approach me, requesting help with affordable housing. And we have a crisis in our community where we have far more need for affordable housing than we have the ability to fill. And we see article after article after article that talks about how our community is being gentrified and how people are getting pushed out, and the objective numbers are there. And so, for me, I feel that, you know, something that can provide a significant number ofjobs in our community by contract, if we don't take advantage of that opportunity, then I feel morally responsible for that. So, I mean, again -- Mr. Fernandez: Commissioner, if I can echo a sentiment about -- I apologize. Chair Hardemon: Wait; let him finish. Board Member Suarez: No, I mean, I -- look, I -- we often -- again, we often focus on the subsidy. We don't focus on the generation, which this will generate about 40-plus million. And then, you have someone who is going to be equally vested with the CRA in doing what I think needs to be done for this community, which is I do think the Overtown CRA needs to be extended; I do think that, okay? Chair Hardemon: Not today. I don't think -- Board Member Suarez: I mean, it needs to be extended as quickly as possible, because the community and the need is there. So, I mean -- I never got a chance -- I think there was a discussion item on it in the Commission meeting. I wasn't here when that happened, so I didn't get a chance to express my thoughts on it. I would have not supported the extension of the Omni CRA until -- to be completely frank with you -- Chair of that organization until you came onboard and sort of talked about a change in philosophy of that organization . But because the philosophy has been -- and because the Overtown CRA has demonstrated an ability to provide affordable housing, for me, I think it would be a tremendous tragedy if we didn't do that as a means of trying to provide a significant amount of affordable housing in this community. I think that would be a shame, to be completely frank with you, so. Chair Hardemon: You know, the one thing -- I would say that I told you before, Javier; you've heard me say this. Certain -- and when I say it, you know I mean it. When I say I want to help you, you know that I mean it. Mr. Fernandez: I know you do. Chair Hardemon: Right? And when I tell you that if you do these things, I'll support you, you know that I mean it. And the bottom line is that I don't -- I want to help you, but I think you just City of Miami Page 58 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 have to do more than what you've done thus far, and I think that that's how you're going to help -- you're going to win the support; at least of the majority of this body. And if you're able to do that, then, you know, there are some benefits that will come from it. I mean, on the presentation, I remarked that one of the slides said something to the effect that about 90 to 95 percent of the employees with -- it wasn't MDM-- well Marriott -- were from Miami -Dade County. Mr. Fernandez: Yeah. No, those are MDM employees today. Chair Hardemon: MDM. MDM. Okay. And so, you know, so I looked at even what the requirement was within our documentation, throughout Miami -Dade County, our penalty structure basically said that you have to have about 70 percent, you know? And so I can see why it would be so easily that you would agree to the number; especially at a low percentage point. Mr. Fernandez: Commissioner, I just want to highlight again, we're -- this is a project that doubles -- Chair Hardemon: No, I understand that. Mr. Fernandez: -- 20 timers our workforce. So it's -- again, if we do that today -- Chair Hardemon: I understand that, but what I'm saying to -- the reason I say this -- Mr. Fernandez: Yeah. Chair Hardemon: -- is that if you are -- see, there were a lot of people here earlier, but it's getting nighttime in Overtown, right? If you are a Overtown resident or you work in Overtown, stand up. Okay. Now, if you are -- stay in -- keep standing. If you are an employee of MDM of these standing people, remain standing. Mr. Fernandez: Commissioner, we didn't think this item would be heard; we had them stay home. Chair Hardemon: No, no -- Mr. Fernandez: I apologize; otherwise, we'd have employees here. Chair Hardemon: -- no, no, what I'm saying -- but what I'm saying, I know that we tend to bring a lot of people to show support, but what I'm trying to demonstrate to you is that, you know, it makes me really nervous when we talk about providing jobs to this community. I mean, the things -- it's not your fault. I will say this: It's not your fault that when Flagler came in and he gave the land to Colored Town and the blacks had opportunity to live and be here, and then they were eminent-domained; they were removed. And Liberty Square was built in the '30s and they were pushed there. And then, they -- the community was then changed to an industrial area, so you could put dumps there. And the Miami Police Department was overtly racist, and their civic arm was the KKK (Ku Klux Klan), terrorized the community. And when the hurricane came and when blacks were on their roofs trying to fix their roofs and their buildings that they paid for that they were removed forcibly by the police to go fix the homes that were on the Beach; and, I mean, this history that continues to go on. And when they couldn't move enough of them out through what they used to call slum clearance -- Hum clearance'ivas code word for removing the blacks, because after the 1926 hurricane, when all the properties that were along the water were underwater, they realized that Overtown was still standing. And when -- so they wanted their land, because it was always considered to be downtown, right? Flagler's Hotel was built. There was really no need now for it to be there so you start to take more Indian land from Liberty City, right? You take that land and you start to put blacks over there. And then, you have the 14,'11'=- when I say, 'A,', 'B,' 'C,' and 'D' code land,'those in Overtown know what I'm talking about, City of Miami Page 59 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 because not only was Overtown D'graded land, because you had blacks there, but any potential place that there would be blacks was graded down. I mean, all these things before you even get to the expressway coming in; before you get to, really, summarily taking away the property. One of the biggest things that blew my mind about the history of Overtown, people talked about -- Everyone knows what a lynching is, right? Most people think it's just a hanging, but really, it's really the prosecution of a person without giving them a chance to actually have their chance in court; but summarily, it usually ended in death. Lynchings happened in Overtown all the time, and it wasn't -- lynchings were not just because you did something wrong, because you had the nerve to look at a white woman in her eyes; that's not what lynching was just about. Lynchings were also about property. Mr. James will not give me his 13 parcels that he owns in Overtown, but if you kill him, you got it. So there have been so many things that really stained, I think, the history of this community that it just -- it's so disheartening to me when I'm trying to just fight for something to make it positive where we don't have an opportunity to participate. I don't think that I'm being unreasonable. I don't think that I'm asking for too much. I'm just trying to ensure that the -- that this community benefits, because every time we build, you know, an affordable housing, it's not like counselor. Ifyou could find a way to make where -- ifyou build an affordable housing project that has 400 units that the only people who will live in that unit [sic] are people who are currently residents in Overtown, find a way to do that; because then, that can show me that we won't be gentrifying that community. We get more residents, but the residents are people who already live there. There's someone who wants to move out of their mother's house. And so, I'm saying this to you to say so much more happened to that community that hurt it before 95 (Interstate 95). When I think about the leaders that were here that couldn't stop that train, that couldn't stop the City of Miami, that couldn't stop the zoning codes; that couldn't stop the gerrymandering; that couldn't stop the Miami -Dade County; that couldn't stop Federal practices all over the nation of removing blacks from land that they thought was valuable, I mean, I stand along that lineage of people. And certainly, you don't want that burden to, I guess, remove the ills of the past, but you have to understand that when you're creating a project that's going to have an impact on that community that, no, it's not Overtown, but it's just to the right of it, but -- Mr. Fernandez: It's Overtown, sir. I think it's Overtown; I've always thought of it as part of Overtown, personally. Chair Hardemon: -- so when you consider that, what I'm saying to you is that you have to consider the history and you have to do something that would at least make us feel proud that we're moving the ball forward. Commissioner Russell, he may think that it's the number of the TIF. I'm more amenable to a higher TIF; not what you proposed, but a higher TIF because of the impact that it will have on that community, because the way that 1 see it is that I want to see this community really and truly prosper. I want to see ownership. I want to see the things that show that, you know, these people are going to be here for some time. And in the conditions that they've existed in, don't come to the benefit of someone else, but come to the benefit of them. And I think that there are so many more potential partners; there's so many more businesses that we can affect; there's so many more positive things that we can do in this agreement that aren't burdensome. I mean, for instance, when you think about Goodwill, I mean, Goodwill was written into the agreement. Anybody in Overtown work for Goodwill? You know, I mean, come on. And I think I'm being kind in the way that I'm going about doing this. All I'm saying is they need the work -- Mr. Fernandez: Commissioner, I think -- Chair Hardemon: -- I think that -- Mr. Fernandez: -- your words are well heeded. Chair Hardemon: -- the best thing you can do is continue it unless you want to take a vote, and City of Miami Page 60 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 we can -- I mean, we can do that, too. Mr. Fernandez: I think I'll close with the volume statement. I think your -- Board Member Russell: We need tape. Chair Hardemon: Oh, we need time out. Okay. All right, catch your breath. Anybody else needs a time out; four minutes, four minutes recess. Ready? Bringing this meeting back into order; noting the presence of all the Commissioners, they're here. Commissioners, I would love to entertain a motion to defer, I think, to give this body and the developers an opportunity to just finish working out the rest of this deal. Board Member Carollo: Second. Todd B. Hannon (City Clerk): Excuse me. Chair Hardemon: You would be the first. Mr. Hannon: Chair, we do have a motion and a second on the floor. Commissioner Russell, would you like to withdraw your second so that --? Board Member Russell: I'll withdraw. Mr. Hannon: Okay. Chair Hardemon: I thought that that would have been a superseding motion -- Board Member Carollo: So I make -- Chair Hardemon: -- to defer, no? Mr. Hannon: In this particular example, it's better for the seconder to go ahead and just remove his motion -- Chair Hardemon: That's fine. Mr. Hannon: -- so that the record's perfectly clear. Chair Hardemon: Okay. Board Member Carollo: Mr. Chairman, is the motion removed? Chair Hardemon: The motion is removed, yes. Board Member Carollo: I make a motion to defer this until the April 14 meeting; or to have a special CRA meeting on April 14. Chair Hardemon: I would -- Mr. Fernandez: Mr. Chair, ifI could make a -- Vice Chair Gort: Discussion. Chair Hardemon: Right. City of Miami Page 61 Printed on 7/15/2016 SEOPW Community Redevelopment Agency Meeting Minutes March 30, 2016 ADJOURNMENT Vice Chair Gort: I think the -- we've all spoked [sic] how we feeling. I think the developer being here, they understand what we're going through. They understand what you're thinking and your thoughts, but I think we should sit down with them and negotiate as soon as possible. Chair Hardemon: Commissioner, the -- I agree with you. The hesitancy that I have about the 14th is that, of course, that's a Commission meeting date. It's not a practice of the Southeast Overtown/Park West CRA to meet during the -- during Commission meeting dates. I like for my meetings to be here within the Overtown area so that as many people can come. The only meeting I've ever had within the -- on a City Commission day was the very first meeting I've ever had, and besides the people that were on the agenda, there were no residents from Overtown there. I think this decision, I think, warrants being in the Overtown community, at least when it's being considered. Board Member Carollo: I don't have a problem with that except I don't want to make it a habit of having two or three meetings per month, so, you know -- Chair Hardemon: So that's why I'm saying just one -- Board Member Carollo: -- so I -- Vice Chair Gort: I find this to be a very important meeting. I think we been at it for a long time. We've never had two meetings per month, but I think this is very important. I think everybody here wants to see it done, and I think we should go into it. Board Member Carollo: Question: Timetable. Would you be amicable for the next CRA meeting; defer it to the next CRA meeting? Mr. Fernandez: Mr. Chair, I think it probably would behoove us to wait till the next CRA meeting strictly because it would allow us to have a little bit more time, so we're not pressed against agenda deadlines at the meeting of the 14th. So if it's the Chairman's pleasure to have it on April -- think it's the 25th, that Monday -- Chair Hardemon: 25th, that's the scheduled date. Mr. Fernandez: -- I think we're amenable to that date. Board Member Carollo: So my motion will be -- Mr. Fernandez: But thank you for your offer. Board Member Carollo: -- to defer this item to the next CRA meeting. Board Member Russell: Second. Chair Hardemon: It's been properly moved and seconded that we defer this item to the April 25 meeting; of course, with the understanding that the executive director will be engaged in full negotiations with the developer. Any other discussion? Seeing none, motion passes. This meeting comes to -- adjourned. Mr. Fernandez: Thank you. The meeting adjourned at 8:19 p.m. City of Miami Page 62 Printed on 7/15/2016