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HomeMy WebLinkAboutSEOPW OMNI CRA 2005-01-31 MinutesCity of Miami City Hall 3500 Pan American Drive Miami, FL 33133 www.ci.miami.fl.us Verbatim Minutes Monday, January 31, 2005 5:00 PM Miami Arena 701 Arena Boulevard -VIP Room Miami, Florida www.ci.miami.fl.us/cra Community Redevelopment Agency Johnny L. Winton, Chairman Jeffery L. Allen, Vice Chairman Angel Gonzalez, Board Member Joe Sanchez, Board Member Tomas Regalado, Board Member CRA OFFICE ADDRESS: 49 NW 5th ST, SUITE 100, Miami, FL 33128 Phone: (305) 679-6800, Fax: (305) 679-6835 Community Redevelopment Agency Verbatim Minutes January 31, 2005 Present: Board Member Gonzalez, Board Member Regalado, Vice Chairman Allen and Chairman Winton Absent: Board Member Sanchez On the 31 st day of January, 2005, the Board of Directors of the Community Redevelopment Agency for the Southeast Overtown/Park West and Omni Districts of the City of Miami met at the Miami Arena VIP Room, Miami, Florida. The meeting was called to order at 5:11 p.m. by Chairman Johnny Winton and was adjourned at 6:15 p.m. ALSO PRESENT: Frank Rollason, Executive Director, CRA, City of Miami James Villacorta, Assistant General Counsel, CRA William Bloom, Special Counsel, CRA Priscilla A. Thompson, Clerk of the Board Sylvia Scheider, Assistant Clerk of the Board Lourdes Slazyk, Assistant Director, Planning & Zoning Department, City of Miami ABSENT: Jorge L. Fernandez, General Counsel, CRA CONSULTANT REPORTS 1 04-01376 CRA REPORT RICHIE C. TANDOC, PARTNER OF THE FIRM OF SANSON, KLINE, JACOMINO & COMPANY, LL: FINANCIAL AUDIT FOR FISCAL YEAR 2004. COVER MEMO.pdf BACKUP DOCUMENTATION.pdf DISCUSSED Chairman Winton: Good afternoon, ladies and gentlemen, fellow board members. I would like to call to order the CRA (Community Redevelopment Agency) Board meeting of January 31 -- Jan -- start that over again -- January 31, 2005, and our first item is a report on our audit for fiscal year 2004. Frank Rollason (Executive Director, Community Redevelopment Agency): Yes, sir. Mr. Richie Tandoc from Sanson Kline will give a report. Chairman Winton: Great. Richie Tandoc: Good afternoon, Chairman and board members. My name is Richie Tandoc. I'm a partner with Sanson, Kline, Jacomino & Company, in charge of the CRA's audit engagement for the fiscal year ended September 30, 2004. First, I'd like to thank Frank and his staff for their cooperation in assisting us in completing the audits of the agencies. I believe this is the earliest the audit's ever been completed. We couldn't have completed these audits without their full cooperation and assistance, and the cooperation with the City's Finance staff We completed the audits and issued our reports on the Omni Community Redevelopment Agency and the Southeast Overtown/Park West Redevelopment Agency back in November 2004, and you should have received a copy of the financial statements for each agency, along with our opinions included therein. Our opinions were both unqualified, meaning you have a clean opinion, and both were dated November 16, 2004. In addition, we issued our reports on internal control and compliance, and other matters, also known as the yellow book report, as required for governmental entities, both of which were also unqualified opinions and dated November 16, 2004. We also issued our management letter for each of the agencies, also dated November 16, which you should have received a copy for your review. We came up with only one observation City of Miami Page 2 Printed on 2/8/2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 this past year, and which is listed in Appendix A to the management letter. We also followed up on all prior years' observations, which are listed in Appendix B to the management letter, all of which were resolved during the fiscal year 2004. If you have any specific questions regarding the audit or the management letter, I'd be happy to address those. Chairman Winton: I'm not sure -- has the CRA ever had an audit that was, one, finished essentially on time; and two, that had no issues; and three, where the management letter has virtually nothing in it? Mr. Tandoc: I believe -- well, not since the last couple years, no. This -- the audit was never done this early. We made it a point to get it done early because I believe the Oversight Committee had asked us to try to get it done earlier this year, and I believe, with the help of Frank -- with the hiring of Frank, the CRA's become a lot more clean. Vice Chairman Allen: Yeah. I think this is admirable. Chairman Winton: Anyone else from the board like to make a comment? Do we need to accept the audit? We don't? Vice Chairman Allen: No. Chairman Winton: OK, great. Thank you very much, and Frank, and to your staff, congratulations on a job well done. It's so much more pleasant to sit here and go through an independent audit that is clean, where there's no issues, where all of the back issues have been resolved so that both the public and us, sitting as board members, have a real sense that people know what's going on, people know where the dollars are; that you can actually follow the trail of expenses, and that they're rational; they're legitimate and they're clean, and that's a great feeling, so, Frank, thank you very much, and to your staff, thank them, as well. Mr. Rollason: Thank you, sir. 2 04-01183 CRA REPORT GEORGE STAPF OF THE NATIONAL DEVELOPMENT COUNCIL: STATUS REPORT ON GROW MIAMI FUND. COVER MEMO.pdf BACKUP DOCUMENTATION.pdf DISCUSSED Direction to the CRA Executive Director by Chairman Winton to follow up on the small businesses that have been referred to micro -lenders or other entities and give the Board a status report the next meeting to show how said businesses have been assisted, in compliance with the mission of the CRA. Direction to the CRA Executive Director of the CRA by Chairman Winton to develop a method help small businesses set up proper written business models and financial statements which allow them to apply for loans; further, to invite micro -lenders to participate and provide their input in the development of said plan. Chairman Winton: The next report is -- another report from George Stapf. Frank Rollason (Executive Director, Community Redevelopment Agency): This is from George Stapf. This is National Development Council and the Grow Miami Fund, and this has been in operation now for a few months, and it was really time to bring Mr. Stapf to the board, and sort of give you an update at where he is and some of the difficulties he's encountered, and some of the progresses that we've made. City of Miami Page 3 Printed on 2/8/2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 George Stapf. Good afternoon, Mr. Chairman, members of the board. George Stapf director, National Development Council. I've been asked to give you a brief update on the activity of the Grow Miami Fund over the past 11 months, since we last spoke with you. Attached to your agenda is a summary of some 50 businesses and individuals that our staff and your staff have met with over the past 11 months. In addition, we have held a number of group presentations, including a one-half day training session on loan applications for businesses in the combined CRA (Community Redevelopment Agency) areas. The issues that we've encountered and been able to deal with are -- a good number of those individuals we would define as being entrepreneurs with business plans, as opposed to operating businesses, and we simply were not in a position to offer them financing. A second group were sole proprietors, whose only financial information were tax returns, and unfortunately, those tax returns showed limited profitability, insufficient to repay any borrowing, and finally, we had a group of borrowers that were really real estate investors, who are not eligible to borrow under the Small Business Administration. That said, however, we were able to issue three term sheets for three individual loans; combined totals just under $800, 000, representing total new investment of more than 2, 000, 000. Of those three term sheets, one loan has closed. That loan is in Omni. We have a second loan, which we assume approval will occur in the next ten days, closing later in February, and on the third loan, we're awaiting a decision on the borrower as to whether or not they wish to accept the loan. Where do we go from here? After a year in the street, I think what we've identified is, is that Grow Miami Fund is a tool that will be valuable as the program of work is implemented, the Grand Promenade, the Entertainment District, the decision on Crosswinds, as businesses present themselves to provide the goods and services that those projects will demand. It's a viable program. Your total exposure on that $800, 000 in loans, at this point, is $190, 000. The balance of the 800,000 is our investment. I'll be happy to answer any questions. Vice Chairman Allen: Mr. Chairman. Chairman Winton: Yes, sir. Vice Chairman Allen: Yes. Could you tell me, Mr. Stapf what's been your assessment -- or what is your assessment as it relates to the businesses that were located in the Southeast Overtown area? I noticed -- I was going through most of this and, in some cases, there were just introductory meetings, or have you been able to really quantify anything in your meetings relative to those businesses located in the Southeast Overtown portion of the CRA? Mr. Stapf Fully two-thirds of the past 12 months were spent in Southeast Overtown west, Commissioner Allen. Vice Chairman Allen: Yes. Mr. Stapf And the observations that identified to you in terms of the issues, the entrepreneurs, the sole proprietors and the real estate investors are really the key identifiers from our experience in Southeast Overtown; business plans not operating businesses. Vice Chairman Allen: Wait. Could you repeat that again, please? Mr. Stapf We had a lot of individuals in businesses who were entrepreneurs -- Vice Chairman Allen: Right. Mr. Stapf -- who had business plans, not operating businesses; were not in a position to borrow funds. We had other borrowers approach us whose sole financial information were tax returns, and those tax returns identified limited profitability insufficient to repay the borrowings that they City of Miami Page 4 Printed on 2/8/2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 were asking us for, and that is not unlike our experience in other communities. We are a lender who works at the grassroots level -- Vice Chairman Allen: Right. Mr. Stapf -- and have tried to cultivate and work with those borrowers to a point where, if we can't assist them, we've at least pointed them in a direction where, at some point, we can assist them or pointed them in the direction of someone who could. Vice Chairman Allen: And having said that, could you give us some examples? Like, for example, you may have met a business individual, based on their tax returns, they didn't meet a certain threshold that will enable them to borrow, as you will. What, in fact, did you recommend or do for that particular business? Mr. Stapf We would refer them to the Small Business Development Center. We would refer them to a micro -lender. Vice Chairman Allen: But did you also continue with, if you will, some sort of means of tracking that individual once you made the referral, just to determine whether or not there was this, you know, referral made and there was some sort of outcome to that referral? Mr. Stapf We have not done that. No, Commissioner. Mr. Rollason: He has not, Commissioner, but through our office, we have a liaison that worked with him, and then when there was a follow-up -- Vice Chairman Allen: Right. Mr. Rollason: -- to go to another outfit, we did that in-house, and he stayed strictly with the Grow Miami Fund. Vice Chairman Allen: I see. Well -- Chairman Winton: And are you still tracking them? Mr. Rollason: Yes, sir. Vice Chairman Allen: Yeah. Chairman Winton: I'm sorry. Go ahead. Vice Chairman Allen: OK. Yeah, now one other question. With respect to the entities that you examined in the Southeast Overtown area, what about their business plans? You spoke to that. Was it inadequate or -- could you expound on that a bit? Mr. Stapf They were looking, by and large, Commissioner, for equity, not debt. Vice Chairman Allen: OK. Mr. Stapf And this product, Grow Miami Fund, which is affiliate with the Grow America Fund, is a U.S. (United States) Small Business Administration Loan Program, and that was really the major difficulty. Vice Chairman Allen: OK, so no jump on financing here, if you will. City of Miami Page 5 Printed on 2/8/2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 Mr. Rollason: IfI might add, in some of the discussions I've had with CD (Community Development), there is some consideration being given to maybe expanding this program citywide, and not just within the CRA. We have -- as you know, our portion is being funded with CD dollars, from the CRA side, and so we had the issue that we're dealing with to make sure that we expend those funds within a timely fashion, just like all the CD money that we're now facing some hurdles with, so Barbara and I have had some discussions about expanding this program because the other program that is available within the City is more of a microprogram, a lot lower amount than what we're talking about here -- and, George, what's the amount that we can loan up to on these businesses? Mr. Stapf Up to $2, 000, 000. Mr. Rollason: -- up to 2, 000, 000, so it really fills a void that this other program doesn't, and there may be some other businesses that this might become a very valuable tool that Barbara would like to explore citywide. Chairman Winton: And I would guess, particularly, in Allapattah and along Southwest 8th Street, that program -- Mr. Rollason: Right. Chairman Winton: -- probably could have -- get some real traction. Board Member Gonzalez: Definitely. Chairman Winton: So that's good. Mr. Rollason: And what we would look to do, if that's the -- if that is how it looks like it might head, is we would come back to this board to allow that funding that we have in place for this year to be expanded to the rest of the city, not just within the CRA, because that was an allotment that we got for the CRA to use with a program, so the only thing I said with Barbara is, is that I would want to come back to the Board and say, since it appears that we're not able to expend the full amount this first go -around, why don't we expand it for the city and not just turn that money back. Chairman Winton: Now, I want to make sure that you continue to follow up on the small businesses, though, that's been referred to whatever micro -lender we're sending them to or any other entity that we might be sending them to. I would like to follow up carefully on that to make sure -- Mr. Rollason: All right, sir. Chairman Winton: -- that that happens because our mission is -- our mission is not citywide; it's within our geographic boundaries, and we want to do everything we can -- Mr. Rollason: Yes, sir. Chairman Winton: -- to help give a leg up to any of the businesses that are already here, and those who may want to start up, so if we can help them any way possible, that's part of our mission, so you might give us a report on that at the next board meeting. Mr. Rollason: All right. Chairman Winton: Give us an update on that. City of Miami Page 6 Printed on 2/8/2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 Mr. Rollason: OK. Chairman Winton: Thank you. Yes, sir. Vice Chairman Allen: Mr. Chairman, one last question. Mr. Stapf, if you were in my shoes and these various businesses that are located in the Southeast Overtown area were to come to you and complain to you that, "Yeah, this guy came around, but all he does is give us a perfunctory meeting. We need help. We need funding. You know, this has been going on forever and ever. I mean, that's all we ever get is somebody come to sit and meet with us, but no one ever comes to fully help us." What would you say to them if you were in my shoes? Mr. Stapf As it relates to this program, Commissioner -- Vice Chairman Allen: Right, as it relates to these programs, because they're a bit fed up that all they ever get is a perfunctory meeting from individuals that supposedly are supposed to help them. Now, this is the perception they have. I mean, they're trying to do the best they can, and they look to you as someone, if you will, as a savior, to some extent, to help them get up and running, so if you were in my shoes, what would you tell them? Because I'm pretty sure I'll be contacted pretty soon regarding this issue. Mr. Stapf What I would suggest you discuss with them is what we discussed with them, Commissioner. This is a loan program. The requirements are that your business is properly organized; that it is generating revenues and profits; that there is a reasonable expectation that you can repay the loan. If you are looking for a grant, if you are looking for equity, this is not the program for you. If you are a start-up business, this is not the program for you. If you are a real estate investor that has a building that you want to buy that you can lease to other businesses, this is not a program for you. That is our experience in Southeast Overtown. Chairman Winton: Commissioner Regalado -- or Board Member Regalado. Board Member Regalado: Thank you, Mr. Chairman. I see that several of the business that have been in touch with you are either film or photography industry. I see also an introductory meeting regarding a building acquisition for Olay TV (television). That is a satellite network, Spanish programming. My question is, on this case -- which, by the way, I think that the logical place for TV outlets and cable outlets would be the Omni area because of the closeness of downtown and the beach, and all that, but I see here that it's building acquisition. What can you do for them if they do want to come to the Omni area? Mr. Stapf The program, Commissioner, can provide financing for working capital, equipment and leasehold improvements. In fact, when we focused our attention on Omni area specifically, one of the greatest needs for the property owners there who are looking to fill their buildings are assistance in their leasehold financing. I do not recall the specifics of the borrower you just mentioned; most of these were handled by our loan officer, but I would suspect that, in this case, we discussed working capital and leasehold improvements. Any follow up or lack of follow up was on the business's end. Board Member Regalado: No, but what I meant is that, for instance, this company who just went national on the stock market now, if they do want to build a studio, would you help them in terms of -- or building -- Mr. Stapf If they've gone to a publicly held company, they're no longer eligible. Board Member Regalado: OK. All right. That's it. City of Miami Page 7 Printed on 2/8/2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 Chairman Winton: OK. Anything else? Yes, sir. Vice Chairman Allen: Yeah, just one other question. Respectfully, Mr. Stapf it just appears to me that the nature of your program, frankly, in my opinion, is not suited for the Southeast Overtown portion. Because if you're -- you're doing debt financing, if I understand your objectives in your program. It just seems to me, just based on that, these companies or entities would never qualf, and maybe I can turn to Frank. Is there any other solution, because I think this is -- no disrespect to you -- a waste of time, to be honest with you. Mr. Rollason: Well, we have to go back a little bit in history as to why we're at this point, and we're at this point because the CRA was getting into the loan business and was doing a woefully poor job at it. These loans were defaulting -- Vice Chairman Allen: Right. Mr. Rollason: -- and the direction from the Board was to go out and, instead of us being in the loan business, to get an outfit to come in and do these loans of the capital nature we were talking about. Vice Chairman Allen: Right. Mr. Rollason: And at that time, some of the loans we were giving were larger than the micro - loans that the smaller outfits give, and so, therefore, we went to this program and brought this in to the Board -- Vice Chairman Allen: Right. Mr. Rollason: -- because they could handle the capacity that some of the requests that we're getting here for the CRA to loan. For instance, Club Space, if some of you may recall, came in here looking for $250, 000, and which we gave a $50, 000 grant and the $200, 000 loan, we never went forward with. Others, we've had at $65, 000, and some, we've had -- I remember another one was, I don't know, 35, $40, 000, and some of those businesses do not have the business plans or maybe should not have gotten a loan, exactly like what Mr. Stapf has said. We have given those loans and those loans -- those businesses have gone out of business and we have not been repaid and we've had to turn those into a grant is what has happened after the fact. Vice Chairman Allen: I see, so it appears to me that these companies in Southeast Overtown would need more technical assistance than anything, right? Mr. Stapf That's well stated, Commissioner. Vice Chairman Allen: I mean, comprehensive technical assistance, correct? And there should be a different criteria used -- and, again, that's not asking for any preferential treatment, but there should be a different criteria used for those companies in the Southeast Overtown area. I mean, it seems to me your approach is, if you will, a Wall Street approach. You mean -- you're not lowering the bar. It appears to me you're doing, if you will, micro -milking type of financing, and these companies just -- I mean, these entrepreneurs that you're speaking of just -- there's no way they could qualify or even come under your guidelines. It just seems to me it's -- Mr. Stapf I mean, I can under -- Vice Chairman Allen: You do understand what I'm saying? Mr. Stapf I can understand your frustration. City of Miami Page 8 Printed on 2/8/2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 Vice Chairman Allen: Right. Mr. Stapf. And having, you know, been directly involved in the street -- Chairman Winton: Excuse me. Could I -- Mr. Stapf -- in that -- Chairman Winton: -- interrupt you for a second? Would those of you who are sitting in the audience and chitchatting, if you have something important to say, would you please go out in the hallway and talk and not talk in here so that we can all hear? Thank you. Go ahead. Mr. Stapf Those concerns that you raised are real, and we experienced them in the street. I mean, this product is the -- is a product of the U.S. Small Business Administration, the largest small and minority business lender in the country. In the case of Southeast Overtown, the activity -- the business activity level -- Vice Chairman Allen: Right. Mr. Stapf -- is very minimal. Vice Chairman Allen: I know. Mr. Stapf The synergy and the critical mass -- Vice Chairman Allen: Exactly. It's not there. Mr. Stapf -- is not there. Vice Chairman Allen: It's not there. Mr. Stapf And this product is not well suited to that. Vice Chairman Allen: It isn't. Mr. Stapf Is there another product that could be designed for that? Possibly, but the standard should still be focused on, you know, the answers to, you know, that very reasonable question: If I loan you money, can you pay me back? Vice Chairman Allen: Pay back. Mr. Stapf And that's -- that was our charge, and if we couldn't determine that there was a reasonable expectation for that entrepreneur or that business to pay you back, we couldn't make them a loan and didn't. Mr. Rollason: I think also is a good point for you to realize is that the amount of money that we put in, which was like 471, ifI recall, George, is the -- Mr. Stapf That's correct. Mr. Rollason: -- amount that we have put in, and you matched that with what amount of money? Mr. Stapf A million, five. Mr. Rollason: So what happens is, with a rotating fund, it -- when you get the repayments, we City of Miami Page 9 Printed on 2/8/2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 had it revolving -- Vice Chairman Allen: Revolving, right. Mr. Rollason: -- and I think that we need to find another vehicle to try to help some of those businesses that don't qualf for this, but for what this does, it's a very good program for people to get in with. Chairman Winton: Well, it seems to me, there's two steps: One is -- and I'm sorry, what's your name again? Vice Chairman Allen: Mr. Stapf. Mr. Stapf George Stapf. Chairman Winton: George Stapf. George, that one of the things is that we need to figure out how we can help the businesses that don't understand what a business model really ought to look like, so that they could, in fact, apply for funds and get somebody to believe there would be some reasonable expectation to repay those funds, that we could help those businesses. Now, by the way, not everyone wants their financials to be nice and neat and clean -- Mr. Rollason: Right. Chairman Winton: -- so we need to understand that. There's a lot of businesses in all neighborhoods out there, big ones and little ones, don't want their financials all nice and neat and clean sometimes, but those who do and those who need help, we ought to figure out a method and bring some resources on board to help those businesses to set up the right kind of both written business model and financial statements that could allow them to, in fact, apply for a loan either from a micro -- Vice Chairman Allen: Right. Chairman Winton: -- one of the micro -loans, or a loan from you all, and so that would be one step. The second part is finding who those other lenders might be, the micro kind of lenders that we can also bring to the table to help these smaller businesses. Because the fact of the matter is, in the Overtown, Park West and Omni -- Vice Chairman Allen: Area. Chairman Winton: Did I say that all right? Vice Chairman Allen: Um-hmm. Mr. Rollason: Yeah. Chairman Winton: The two different CRAs. Vice Chairman Allen: Two different CRAs, Southeast -- Chairman Winton: That with the -- the real fact of the matter is that the economic development boom is picking up substantial steam, and it started from the east and it's going west. The westernmost boundaries of our two districts are the two that have the greatest challenges today and will need the greatest amount of assistance, and those that are on the eastern boundaries, frankly, I'm not going to lean as favorably towards giving -- providing government assistance anyhow because the markets are taking off, so if we could really get our efforts focused on those City of Miami Page 10 Printed on 2/8/2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 areas in greatest need the impact we could have could be quite dramatic, but we've got to get focused on that. Vice Chairman Allen: Right. If I may, Mr. Chairman, you said something very operative. Let me ask you, Mr. Stapf throughout your analysis of these respective businesses in the Southeast Overtown area, how do you quantifir the nature of the services they were providing? Was it primarily, what? Give or take, was it weighted heavily in one area or the other? Mr. Stapf Personal services. Vice Chairman Allen: OK, personal services in the way of -- Mr. Stapf Some business services. Vice Chairman Allen: But mostly -- Mr. Stapf By and large, mostly personal services. Chairman Winton: Because that's what the businesses are. Vice Chairman Allen: Yeah. Mr. Stapf No retail, obviously. Vice Chairman Allen: Right. No re -- right, just personal service, right. Mr. Stapf But service -oriented, principally, personal. Vice Chairman Allen: OK. Chairman Winton: So could you work on that and maybe, George, you guys -- with your vast knowledge and resources of national -- maybe you can help us craft a little better, more focused plan here that could work. Mr. Rollason: We've had one of the CDCs (Community Development Corporations) come to us and offer to work with us to help in the neighborhood, especially in the Overtown area, that maybe they could put on workshops with us to help the business owners to put together the type of portfolios and put those things together, but -- Chairman Winton: How's a CDC going to know how to do that? Mr. Rollason: Well, they have some people on board that have some expertise in that area that wanted to help us. Vice Chairman Allen: Right, and -- Mr. Rollason: But listen, there's some way -- Chairman Winton: Well, I'm -- Mr. Rollason: -- we can -- Chairman Winton: -- always skeptical there, so -- Mr. Rollason: OK. City of Miami Page 11 Printed on 2/8/2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 Chairman Winton: -- you know, I want to make sure we've got real professionals that can get real things done and can get it done on a timely basis where we can have an impact, and if the CDC is qualified to do that, OK, but I'm very skeptical of -- Mr. Rollason: All right. Vice Chairman Allen: What about some of these colleges? Is there -- Mr. Rollason: No. We've got -- we have some areas there that we've been working on with Miami -Dade Community College -- Vice Chairman Allen: OK. Mr. Rollason: -- with different entrepreneurial activities, and I know Florida Memorial College has been working with us, and they have a program and a public workshop for Overtown, second week in March. It's already set up. Chairman Winton: Anything else on this issue? Vice Chairman Allen: Just quickly. Lastly, Frank, is there anything within the City that -- any comparable program that I could look to or -- that comes to mind? Mr. Rollason: Well, there's the other fund that is, I guess, quasi sponsored by the City, or -- the microprogram -- Vice Chairman Allen: Micro -- Chairman Winton: Micro -loan program. Vice Chairman Allen: Right. Mr. Rollason: -- that's going -- Vice Chairman Allen: That one. Mr. Stapf Accion. Vice Chairman Allen: Right. Mr. Rollason: Accion. Vice Chairman Allen: Accion, OK. Chairman Winton: OK, anything else? George, thank you very much. Mr. Stapf Thank you. 3 04-01392 CRA DISCUSSION BERNARD ZYSCOVICH OF ZYSCOVICH, INC.: OMNI CRA REDEVELOPMENT PLAN. COVER MEMO.pdf DISCUSSED City of Miami Page 12 Printed on 2/8/2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 Chairman Sanchez: Bernard, you're up on the Omni CRA (Community Redevelopment Agency) Redevelopment Plan. Frank Rollason (Executive Director, Community Redevelopment Agency): Mr. Chairman, the purpose of this tonight is to give the Board -- which most of you have seen this. There's a couple of you we have not been able to get with -- but a quick synopsis of where we are with the result from the Steering Committee, and then to inform you that it's our intent to begin the public workshops, so this is not a meeting to inform the public. It'll go very quickly, and then, if everybody's on board, we will start the meetings with the public in February to start to get their input into it into more detail, so Bernard. Bernard Zyscovich: OK. Thank you very much. This is a report of status in a very abbreviated format. I would like for you to know that we've been working on this project for several months. We've gone through meetings with Steering Committee, with the Commissioners, with stakeholders, the School Board, major property owners, so this represents a give-and-take process that's been going on now for quite a long time. The Omni area specifically is extremely significant in terms of its regional area. As you can see from the map, the Omni is in yellow. It's at the nexus point between the communications to the beach, the working areas of Jackson and downtown, and it's also a very important location within the prospects of future transportation systems. There's a cultural entertainment center that the County and yourselves have invested significantly in, in the (PAC) Performing Arts Center, and there's also an element of entertainment districts related to late night entertainment that we can take advantage of and will become a component part of the plan, in terms of the entertainment district being proposed. I'd like to show you these just because they're interesting and fun. This is a little bit of research we've done in terms of this area, in terms of its historic urban form. First, as you can see, the slide on the right, where the little white dots are, that's the original edge of the waterfront. All of the land to the east of it, everything in the light blue, has been filled, and these are fascinating pictures because you can see that McArthur Causeway, all of Bayfront Park, all of the area currently known as Bayside, the ports, all of that has now been filled land, so one of the issues is, is that, in some ways, we're inventing something, and in other ways, we're basically just putting things back the way they were. Some of the thoughts here are that we would be reconnecting existing streets in the red. The yellow shows you the street grid. You can see, in the slide on the right, the tracks and the trolley along 2nd Avenue that used to exist. We're planning to have a new transportation system once again, so as we begin to analyze the Omni -- and this is very broad brush -- we realize that the Omni is in the state it's in for several reasons, in our opinion. One is that it's been disconnected, with the highway system, from the rest of the city, and there are some major developed buildings, namely, Omni and the Miami Herald, that have aggregated many blocks and have become, in a sense, urban barriers to redevelopment, and you can see the blow up of 1-395 during construction, how it literally took the neighborhood and cut a swath through it, and some of the results that I'm reading in the papers myself will be potentially changing as the result of our attempt and everyone's attempt to reconnect. The Omni Mall is another example. In the red, on the upper slide, you can see what those three blocks used to be configured like, and it's also interesting that, before the mall started, Jordan Marsh used to face Bayshore, and that was actually the preferred street, not Biscayne Boulevard, and that, with the advent -- in the slides, as you can see, from this kind of low edge waterfront part of the City, we now have a very vital and thriving urban environment. The Herald building, likewise, has gone through the same thing. Here's a slide toward Miami Beach before the Herald. You can see that all the land was filled and the Herald building has been constructed and as we all know, both the Omni and the Herald actually are in place since the beginning of our redevelopment ideas on this project. We've had meetings with the ownership of both properties, and I think it's part of the excitement of this Omni redevelopment that has put these properties in play in the private market, so when we begin to look at the overall plan objectives, the red arrows show you the places that we intend to reconnect circulation. The green shows you opportunities for new bay walk and green space. The district along the highway, along 14th Street, shows you our concept in terms of a diagram for the Entertainment District, so we want to create a sustainable regional City of Miami Page 13 Printed on 2/8/2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 destination. We want to have mixed income housing. We want to have improvements to the public realm that would include streetscape, you know, transportation, parks, and we want to also promote public private development and include them in the plan, and that way, the CRA will be better able to leverage their investment when it's in conjunction with private development, so to briefly go through these -- and I'm going to be really quick -- we would like to find a way to recreate the Omni Mall into something that is more connected and a bigger part of the overall community. There's a tremendous amount of development potential there, and we're hopeful one day that could occur. The Herald, likewise, we're looking for a way to reconnect it to the bay, and we're in contact with the Herald, and I'm sure we'll be in contact with the proposed new purchasers, and we think that out of that will come some form of 14th Street extension to the bay. The School Board has, likewise, gone through transition. They own -- between the School Board and the City -- a significant amount of property in the Omni area, and there's currently ongoing conversations with the PAC, the School Board and other public entities to develop new parking and new private investment and public private investments, as well. In terms of the regulatory strategies, we have been looking closely at the existing zoning. We have some initial proposals, and we will be moving forward with the regulatory piece of this project, following the public hearings that Frank was talking about, so that is what Omni could be built out to be like. We've included some of the towers that have been proposed on the boards, and this gives you an indication of the way the massing and the density play out in terms of the zoning. One thing you should notice is the flat area that runs kind of from the bay toward the west is centered on 14th Street, which we're proposing will be the major entertainment street. We're looking to keep the heights down next to the street, if possible, in order to create a really pleasant pedestrian connection. The Performing Arts Center is a magnet, and we're looking, with projects to the west, to enhance that for a sustainable long-term entertainment district for the City, and here you can see some sketches of the district expansion. The area in light blue is the current Entertainment District, and we're looking at all three districts within the City to see how we can compress them and combine them into one center district, entertainment district. The design guidelines will be created to facilitate the objectives. Here you can see ideas that are a little more detail -oriented in terms of the character of 14th Street as a blues and jazz district. We're looking specifically at the properties surrounding the PAC to create a unified streetscape, landscape, solve the parking long-term and near term as a way of creating a very exciting district that surrounds the Performing Arts Center. The green space is highly important. We are seriously thinking about proposing some additional fill, which is why I wanted to show you how all of that area was filled because it wasn't our idea. It's all been done in the past, but we believe that with some strategic thinking and some good biology, we can actually create a bay walk, regardless of what happens with the private properties, and if it takes five or ten years to go through the regulatory process, from the prospective of our mission, that's reasonable. Streetscapes and landscaping, new trolleys, new parking, the preservation of historic resources, the streetcar, specifically, we've been lurking with HDR to help plan the alignments. We want to get involved with the literal bricks and mortar components of what's involved in creating better streetscapes along 2nd Avenue. We have some very specific ideas we're anxious to share with your master planners for museum park on how we can extend South Bayshore Drive, where that purple arrow is, in order to facilitate the extension of pedestrian movement across the highway, and also to help provide a sense of place when people arrive in the City next to the Howard Johnson's and feel like they have no idea where they are. We also have some thoughts on the FEC (Florida East Coast) crossing, and would like to propose an additional crossing at 17th Street to help reconnect the area to the west and the east as a way of overcoming some of those issues; some transportation and street realignments, so all in all, we have a very ambitious and I think progressive set of ideas regarding Omni. We're currently in the point where we have a draft report completed. We still need to fill out the financial and implementation chapters and the public hearings, and then we'll be back to you for approval of the plan. At which point, we can move into the regulatory process. Chairman Winton: Would you -- Bernard, would you put on the record, please, the boundaries of the Omni CRA? City of Miami Page 14 Printed on 2/8/2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 Mr. Zyscovich: The Omni CRA is bounded on the south by 836, on the west by FEC, on the east Chairman Winton: By 395. Mr. Zyscovich: 3 -- I'm sorry, 395. I always get the numbers confused. FEC to the west, approximately 20th Street on the north and Biscayne Bay on the east. Chairman Winton: Thank you. Any questions or comments? Vice Chairman Allen: Just only, Mr. Chairman, I guess you've got to be quite pleased. Board Member Regalado: One question. Chairman Winton: Those are pretty pictures. Board Member Regalado: One -- Chairman Sanchez: I've seen a million pretty pictures in my life. Yes, sir. Board Member Regalado: On the landscaping, Bernard and the green areas that you are proposing, which I think that everybody would go for it, do you have any ideas on how to maintain those? Mr. Zyscovich: Well, some of them -- for instance, the one to the south of the PAC is really intended to support the Performing Arts Center. The one -- Board Member Regalado: Which it would be their responsibility then? Mr. Zyscovich: Which could be at least partially their responsibility in conjunction with the County. The bay walk, likewise, if we're successful in creating one, would have to be a multi - disciplined area responsibility. Chairman Winton: But let me interrupt you for a moment because I think it's important to put this on the record. The fact of the matter is that a landscape plan hasn't been developed. This is conceptual. Board Member Regalado: I know that. Chairman Winton: So what -- Board Member Regalado: I know that. Chairman Winton: -- the landscaping materials are -- and there's certainly a movement within the City of Miami to xeriscape all of this stuff so that maintenance costs are significantly less than the historical process of planting things that don't really belong in our -- Board Member Regalado: That's what I'm saying. Chairman Winton: -- environment, so you have to water them all the time, and if they're not watered, they die. Board Member Regalado: That's what I'm saying. City of Miami Page 15 Printed on 2/8/2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 Chairman Winton: So I don't think that -- you can't look at these pictures and figure out what the landscaping plan is. Mr. Zyscovich: Exactly. That -- Chairman Winton: These are just simply pretty pictures that show what the area kind of globally could look like if we can ever get there, and -- Mr. Zyscovich: Well, I think that the -- Chairman Winton: -- but it is designed to be the guiding principles -- Vice Chairman Allen: Right. Chairman Winton: -- relative to how we spend money in the public sector and how we encourage the private sector to spend their money, so that 20 years from now, you can end up looking like this. Mr. Zyscovich: Right. The point of this is -- aside from the pretty pictures -- is to create a set of guidelines in picture and text that eventually becomes adopted, which allows the CRA to spend the money to help create these opportunities, whether public alone or public private, so our mission is really very ambitious because we're trying to think of every conceivable thing we can that makes sense to put into the plans so that later on, if you, as policymakers, decide to spend the money on it, it'll be in the plan, and therefore, you'll be allowed to do that. Vice Chairman Allen: Quick question, Mr. Chairman. Bernie, sorry I missed the meeting with you, by the way -- with you and Frank. I apologize. Mr. Zyscovich: We'll get there one day. Vice Chairman Allen: But having said that, let me segue to the Omni Mall itself. As you very -- as you are aware of that -- I guess that structure now was formerly used as some telecommunications outfit or something. Mr. Zyscovich: Uh-huh. Vice Chairman Allen: So it's -- you're suggestion now the best and most profitable use of that would be to reconstruct it as a mall -- Mr. Zyscovich: No. Vice Chairman Allen: -- that Omni project, the Omni Mall? Mr. Zyscovich: No. What we're suggesting -- and we've had meetings with some of the ownership and they put the property up for sale. To best of my knowledge, the previous owners have repurchased it at a much higher price. What we're hoping happens is that, somewhere along the line, they will see the development opportunities of the residential housing and many other office components, cultural components that could become significant improvements to the property. The property can, according to zoning, handle 5,000,000 square feet of development, which is significantly more than what's on the property now, so one option for them, clearly, is to continue to remarket it as is. I'm sure, at some point in time, there will be someone along the way, hopefully, this group, that sees that with new investment, they would have a much more valuable property. At that point, what we're saying is, let's bring it back into a series of blocks that have street improvements, and not have it be one three -block long mega structure -- City of Miami Page 16 Printed on 2/8/2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 Vice Chairman Allen: I see. Mr. Zyscovich: -- that basically separates the properties on the east from the proepties on the west, which is why we have so much redevelopment problems, historically, in the Omni area. We need to reconnect the parts of the city to each other. Vice Chairman Allen: I see. Chairman Winton: Anything else? OK. Board Member Regalado: No. Chairman Winton: Bernard -- Board Member Regalado: I just mentioned the, you know, landscaping and the maintenance because I remember, as a journalist, I was covering, many years ago, the plans for Bicentennial Park and, you know, one of the questions we asked at that time, you know, to the City leaders and the Manager was, well, you know, who's going to maintain those trees and those beautiful green areas? Remember, the City Manager said, "It rains pretty much in downtown Miami." Chairman Winton: That must have been 25 years ago. Board Member Regalado: It was 25 years. Chairman Winton: Because I know when the last time that park was maintained. Board Member Regalado: I know. Chairman Winton: OK. Mr. Zyscovich: OK. Thank you very much. Chairman Winton: Thank you very much, Bernard. FINANCIALS 4 04-01378 CRA REPORT FINANCIAL SUMMARY THROUGH MONTH ENDING DECEMBER 31, 2004, EXTERNAL AUDIT FINDINGS AND OTHER OBSERVATIONS. DOCUMENTATION.pdf DISCUSSED Direction to the CRA Executive Director by Chairman Winton to set up a meeting between Miguel Valentin, Chief Financial Officer, the Executive Director, and himself to discuss modifying the financial report to include certain key points. Chairman Winton: Item Number 4. Frank Rollason (Executive Director, Community Redevelopment Agency): All right. Item Number 4 is the financial summary through the month ending in December 31. At this meeting, you had requested that we give a oral presentation -- Chairman Winton: Right. Mr. Rollason: -- and Mr. Valentin, Miguel Valentin, who's an employee of the CRA (Community City of Miami Page 17 Printed on 2/8/2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 Redevelopment Agency), a CPA (Certified Public Accountant) -- he's been with us since November of '03, and has come on board and has transitioned from the outside consultants that we had with Harvey, Branker & Associates, and he has been the -- Chairman Winton: He's full-time with us now? Mr. Rollason: Yes, sir. Chairman Winton: Is that what you just said? Mr. Rollason: Yes, sir. Chairman Winton: Well, I want to thank you also for the -- because I'm sure you had a lot to do with the audit -- Mr. Rollason: A lot. Chairman Winton: -- that we just got. Miguel Valentin: Thank you. Chairman Winton: So my personal hat's off to you. As I said, it's a pleasure to get an audit that was as clean as you can get. Any organization as complex, with as much federal funding and other kinds of funding as the CRA has, has to have some sort of issues. That's just kind of normal, but y'all have done an outstanding job, and we got absolutely -- and for those who walked in late, the CRA's audit was just -- the audit was presented by our external auditor and the audit came through as clean as you could get an audit, so thank you. Mr. Valentin: Thank you, sir. Good evening. Well, in connection with the monthly report of the City of Miami Community Redevelopment Agency for the period ended December 31, 2004, I cert the following: First, this report -- that you can find on pages one through five -- fairly presents no material (UNINTELLIGIBLE) the result of operations as of December 31, 2004. Second, this report, on pages six through ten, discloses in an accurate fashion the disbursements made in the month of December. This time, I wanted to do it in this way because, in this way, you know where the monies are coming. Third, the agency has not incur in any violation of the Anti -deficiency Act. Four, no cost overruns have taken place in the approved CRA Capital Improvement Plan for fiscal year 2005. Board Member Regalado: Wow. Mr. Valentin: Well, if you have any questions, I will be more than happy to answer you. Chairman Winton: Any questions? Board Member Gonzalez: It's great. Chairman Winton: OK, and maybe you, Frank and I can get together at some point out of the CRA Board meeting. I'd like to walk through the financials and talk about how we might modify this report, put a little bit more meat in it. We don't want a long, long report, but I also want you to hit on a few key points. We ought to meet in private and talk about that, so that you'll know what we might want to bring out at the board meetings, OK? Mr. Valentin: OK, perfect. Mr. Rollason: I could -- at tomorrow's meeting that I have with you, I could bring him with me City of Miami Page 18 Printed on 2/8/2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 and we could hit on those, if you want to do that at your office. Chairnian Winton: OK. Well, call nie ahead of time. We might have to move that meeting back a bit. Mr. Rollason: OK. Chairnian Winton: Thank you. Mr. Rollason: All right. Chairman Winton: OK, thank you very much. RESOLUTIONS 5 04-01188 CRA RESOLUTION A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("CRA "), WITH ATTACHMENT(S), AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE AN AGREEMENT, IN A FORM ACCEPTABLE TO GENERAL COUNSEL, WITH BERCOW AND RADELL, P.A., IN AN AMOUNT NOT TO EXCEED $70,500 PLUS UP TO $3,000 FOR REIMBURSABLE EXPENSES, TO: (1) AMEND THE DEVELOPMENT IMPACT FEE ORDINANCE FOR THE CRA REDEVELOPMENT AREA AT A COST NOT TO EXCEED $28,500; (2) UPDATE THE SOUTHEAST OVERTOWN/PARK WEST DEVELOPMENT OF REGIONAL IMPACT (DRI) DEVELOPMENT ORDERS FOR INCREMENTS I AND II AT A COST NOT TO EXCEED $22,000; (3) REVIEW THE FEASIBILITY OF INCREASING INCREMENT III ALLOCATIONS TO MEET MARKET DEMAND AND LAND USES AT A COST NOT TO EXCEED $12,000; AND (4) DETERMINE THE NECESSITY OF EXPANDING THE DRI BOUNDARIES FOR INCREMENT III TO INCORPORATE THE EXPANDED CRA BOUNDARIES APPROVED BY CITY OF MIAMI ORDINANCE NO. 12247 , PASSED AND ADOPTED ON JULY 27, 2002, AT A COST NOT TO EXCEED $8,000, ALL AS MORE SPECIFICALLY DETAILED IN "EXHIBIT A" ATTACHED HERETO; FUNDS TO BE ALLOCATED FROM SEOPW TIF FUND, "PROFESSIONAL SERVICES - OTHER," ACCOUNT CODE NO. 689001.550108.6. 270. COVER MEMO.pdf FINANCIAL INFO. FORM.pdf BACKUP DOCUMENTATION.pdf LEGISLATION.pdf Motion by Board Member Gonzalez, seconded by Vice Chairman Allen, that this matter be ADOPTED WITH MODIFICATIONS PASSED by the following vote. Votes: Ayes: 3 - Board Member Gonzalez, Vice Chairman Allen and Chairman Winton Absent: 2 - Board Member Sanchez and Board Member Regalado CRA-R-05-0003 Chairman Winton: Item Number 5. Frank Rollason (Executive Director, Community Redevelopment Agency): Item Number 5 is a resolution requesting authorization, allowing me to enter into an agreement to update the DRI ( Development of Regional Impact), and this is in -- sorely needed. It is behind and Jeff Bercow is City of Miami Page 19 Printed on 2/8/2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 here, who did the original DRI for the Southeast Overtown/Park West, and Lourdes Slazyk is also here, who I -- I'd really like to have Lourdes speak first to the issue as to what the urgency of this is, and then, if Mr. Bercow wants to add something, or you have any questions of him, that's fine, but I think Lourdes, coming from the City's side and perspective with the DRI, can really give you a good perspective of where we are. Lourdes Slazyk: Thank you. For the record, Lourdes Slazyk, Planning Department, City of Miami. I think the DRI -- and you all remember this from, you know, your Commission -- when you wear your Commissioners' hats. It's a very important tool in attracting major development to downtown and to Southeast Overtown/Park West. Downtown has seen a lot of success. The DRI is something that makes developing in these areas more attractive than even other cities throughout the state that don't have these sorts of DRIs in place. It takes a lot of the State process out, especially for major development. In Southeast Overtown/Park West, I'm happy to say that there's been a lot of redevelopment activity going on, particularly on Biscayne Boulevard and we're starting to see a lot of interest in Park West and same thing in the Southeast Overtown part, the Crosswinds project, which we expect to be seeing soon. Vice Chairman Allen: Excuse me, Lourdes. Could you -- could those who are speaking back there please be quiet? We're listening to a report, a very important report. Thank you. Ms. Slazyk: OK. Anyway, so a lot of the credits that have been used in the Southeast Overtown/ Park West DRI recently are projects that have been approved; the 900 Biscayne, the 10 Museum Park, Marina Blue, Marquee and 700 Biscayne. What this means is the redevelopment's coming and it also means that we're starting to use up the credits from the Southeast Overtown/Park West DRI. We have a good amount left, but they're going fast, and with a lot of the interest that I'm seeing right now, in particular, in Park West, I believe these are going to start going really fast, and it's very important that the increment three of this DRI get going as quickly as possible, or else it will put development on waiting lists, so it's very important. Chairman Winton: OK. Anything else? Board Member Gonzalez: I'll move the item. James Villacorta (Assistant General Counsel): Commissioner, can I correct a scrivener's error? On page two, the second to the last "whereas," stating that Bercow & Radell is currently doing work for the City. That's an error and it should come out. Chairman Winton: I'm sorry, what's the error? Mr. Villacorta: That Bercow & Radell is currently doing work for the City. Chairman Winton: And they are not, you say? Mr. Villacorta: They are not. Chairman Winton: OK, fine, so we have a motion. Need a second on the resolution. Vice Chairman Allen: Second. Chairman Winton: Any further discussion? Being none, all in favor, "aye." The Board Members (Collectively): Aye. Chairman Winton: Like sign, opposed? The motion carries. Number 4 -- 6, sorry. Frank. City of Miami Page 20 Printed on 2/8/2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 Vice Chairman Allen: I'm sorry. If we could, respectfully, back to 5, did you not want to hear from -- Chairman Winton: No. Vice Chairman Allen: OK. Chairman Winton: We don't -- the motion's passed. Vice Chairman Allen: Passed. Chairman Winton: Jeff knows what he's doing. Vice Chairman Allen: (UNINTELLIGIBLE), right. Chairman Winton: Get working. 6 04-01377 CRA RESOLUTION A JOINT RESOLUTION OF THE BOARDS OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST AND OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCIES ("CRAS") AUTHORIZING THE EXECUTIVE DIRECTOR TO EXERCISE THE CRAS' OPTION TO EXTEND THE AGREEMENT FOR EXTERNAL AUDITING SERVICES WITH SANSON, KLINE, JACOMINO & COMPANY, LLP, FOR ONE YEAR AT A COST NOT TO EXCEED $46,000; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO REQUEST SINGLE AUDIT SERVICES, IF REQUIRED, AT AN ADDITIONAL COST NOT TO EXCEED $7,000; FUNDS TO BE ALLOCATED AS FOLLOWS: $38,000 FROM SEOPW TIF FUND, " PROFESSIONAL SERVICES -ACCOUNTING," ACCOUNT CODE NO. 689001. 550108.6.280 AND $15,000 FROM OMNI TIF FUND, "PROFESSIONAL SERVICES -ACCOUNTING," ACCOUNT CODE NO. 686001.590320.6.280. COVER MEMO.pdf FINANCIAL INFO. FORM.pdf BACKUP DOCUMENTATION.pdf LEGISLATION.pdf Motion by Board Member Gonzalez, seconded by Vice Chairman Allen, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 3 - Board Member Gonzalez, Vice Chairman Allen and Chairman Winton Absent: 2 - Board Member Sanchez and Board Member Regalado CRA-R-05-0004 Chairman Winton: Number 6. Frank Rollason (Executive Director, Community Redevelopment Agency): Number 6 is the -- is a resolution authorizing me to enter into an extension with Sanson, Kline, Jacomino & Company for the audit for this coming year, and -- Board Member Gonzalez: Mr. Chairman, I move Item 6. Chairman Winton: Great. Vice Chairman Allen: Second. City of Miami Page 21 Printed on 2/8, 2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 Chairman Winton: Have a motion and a second on approving the extension of the contract for our auditor, who did a great job; got the audit out on time, maybe for the first time ever in this CRA (Community Redevelopment Agency), and we got a clean reading, maybe for the first time ever in the CRA, so -- Vice Chairman Allen: Terrific. Chairman Winton: -- it's a great thing to re -up these guys. We have a motion and a second Any further discussion? Being none, all in favor, "aye. " The Board Members (Collectively): Aye. Chairman Winton: Like sign, opposed? The motion carries. 7 04-01393 CRA RESOLUTION A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("CRA "), AUTHORIZING THE EXECUTIVE DIRECTOR TO MAKE PAYMENT IN THE AMOUNT OF $19,500 TO DESIGN -BUILD INTERAMERICAN, INC., THE CONSTRUCTION MANAGER -AT -RISK FOR THE JACKSON SOUL FOOD RENOVATION PROJECT, AS FULL PAYMENT FOR ALL PRE - CONSTRUCTION SERVICES; FUNDS TO BE ALLOCATED FROM SEOPW TIF FUND, "CONSTRUCTION IN PROGRESS," ACCOUNT CODE NO. 689001.550108.6. 860. COVER MEMO.pdf FINANCIAL INFO. FORM.pdf BUDGET STATUS;FUNDING SMRY..pdf BACKUP DOCUMENTATION.pdf LEGISLATION.pdf Motion by Board Member Gonzalez, seconded by Vice Chairman Allen, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 3 - Board Member Gonzalez, Vice Chairman Allen and Chairman Winton Absent: 2 - Board Member Sanchez and Board Member Regalado CRA-R-05-0005 Chairman Winton: Number 7. Frank Rollason (Executive Director, Community Redevelopment Agency): Number 7 is a result of the action taken at the last board meeting, where we were instructed to sort of hold on to Jackson Soul Food construction until we can get the billboard issue squared away, and we are diligently working on that. In the meantime, with a Design -Build type of contact, the contractors brought in when the engineer architecture about 30 percent, who was H.J. Ross redoing this work for us, as you'll recall, so DBI (Design -Build InterAmerican) was brought on board and they performed this work of design, along with H..J Ross, to the tune of $19,500, and what this does is allowed me to make the payment for that design work. There's no construction. It's strictly -- Chairman Winton: The design work's already completed. Mr. Rollason: That is correct. City of Miami Page 22 Printed on 2/8, 2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 Chairman Winton: So -- OK. Board Member Gonzalez: 171 move Item 7. Vice Chairman Allen: Second. Chairman Winton: Motion, second Discussion. Being none, all in favor, "aye. " The Board Members (Collectively): Aye. Chairman Winton: Like sign, oppose? Motion carries. 8 04-01436 CRA RESOLUTION A RESOLUTION OF THE BOARD OF DIRECTORS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY (" CRA"), AUTHORIZING THE EXECUTIVE DIRECTOR TO INCREASE BY THE AMOUNT OF $10,000 THE CRA'S CONTRIBUTION TO THE COST OF THE DOWNTOWN DEVELOPMENT AUTHORITY'S COMPREHENSIVE STUDY OF THE PARKING REQUIRED IN THE OMNI REDEVELOPMENT AREA TO ACCOMMODATE THE PERFORMING ARTS CENTER OF GREATER MIAMI; FUNDS TO BE ALLOCATED FROM OMNI TIF FUND, "OMNI PROFESSIONAL SERVICES - OTHER," ACCOUNT CODE 686001.590320.6. 270. COVER MEMO.pdf FINANCIAL INFO. FORM.pdf BACKUP DOCUMENTATION.pdf LEGISLATION.pdf Motion by Board Member Gonzalez, seconded by Vice Chairman Allen, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 3 - Board Member Gonzalez, Vice Chairman Allen and Chairman Winton Absent: 2 - Board Member Sanchez and Board Member Regalado CRA-R-05-0006 Chairman Winton: Number 8. Frank Rollason (Executive Director, Community Redevelopment Agency): Number 8 is a request that came from the DDA (Downtown Development Authority). As you will recall, the CRA (Community Redevelopment Agency) was requested and approved a grant in the amount of $15, 000 to assist with the study for the parking situation with the Performing Arts Center. We received another request from DDA asking for another ten. The stipulation was put that some other agency would put some money in the pot also besides the CRA, and the Performing Arts Center has come forward and already put another 10,000 in themselves, and so I'm asking to match that with another 10,000. Chairman Winton: Need a motion. Board Member Gonzalez: Move Item 8. Vice Chairman Allen: Second. Chairman Winton: Second. Discussion. Being none, all in favor, "aye." City of Miami Page 23 Printed on 2/8, 2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 The Board Members (Collectively): Aye. Chairman Winton: Like sign, opposed? The motion carries. 9 04-01437 CRA RESOLUTION A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY (THE "CRA") AUTHORIZING THE EXECUTIVE DIRECTOR TO SELL TO BAYVIEW TOWERS ASSOCIATES, LLC ("BAYVIEW") ALL THE CRA'S RIGHT, TITLE AND INTEREST IN FEE SIMPLE TITLE TO THE PROPERTY DESCRIBED ON EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF (THE " PROPERTY") AND THE CRA'S INTEREST, AS THE LANDLORD, UNDER THE TERMS AND PROVISIONS OF THAT CERTAIN LEASE AGREEMENT THE "LEASE") BY AND BETWEEN THE CITY OF MIAMI AND PARK WEST LTD. ("PARK") DATED JUNE 15, 1988 FOR (i) THE PAYMENT OF A PURCHASE PRICE OF FIVE HUNDRED THOUSAND DOLLARS ($500,000.00 ); (ii) BAYVIEW EXPENDING NOT LESS THAN THREE HUNDRED THOUSAND DOLLARS ($300,000.00) TO IMPROVE THE 9TH STREET MALL BETWEEN N.W. 1ST AVENUE AND NORTH MIAMI AVENUE WHICH IMPROVEMENTS SHALL BE SUBJECT TO THE APPROVAL OF THE EXECUTIVE DIRECTOR OF THE CRA, AND COMPLETED WITHIN EIGHTEEN (18) MONTHS OF CLOSING; (iii) BAYVIEW PAYING TO THE CRA SEVEN PERCENT (7%) OF THE GROSS PURCHASE PRICE RECEIVED BY BAYVIEW FROM THE SALE OF INDIVIDUAL CONDOMINIUM UNITS COMPRISING A PORTION OF THE PROPERTY PROVIDED NOT LESS THAN TWO MILLION ONE HUNDRED THOUSAND DOLLARS ($2,100,000.00 IS PAID TO THE CRA WITHIN TWO (2) YEARS FROM APPROVAL OF THE PLANS BY THE EXECUTIVE DIRECTOR OF THE CRA; (iv) BAYVIEW TO PAY ALL UNPAID RENT DUE AS OF THE DATE OF CLOSING; AND (v) THE REIMBURSEMENT TO THE CRA OF ALL COSTS AND EXPENSES INCURRED BY THE CRA IN CONNECTION WITH THE TRANSACTION INCLUDING, WITHOUT LIMITATION, APPRAISAL FEES, ATTORNEYS' FEES, AND CLOSING COSTS, NOT TO EXCEED $50,000. COVER MEMO.pdf BACKUP DOCUMENTATION.pdf LEGISLATION.pdf Motion by Board Member Gonzalez, seconded by Vice Chairman Allen, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 4 - Board Member Gonzalez, Board Member Regalado, Vice Chairman Allen and Chairman Winton Absent: 1 - Board Member Sanchez CRA-R-05-0007 Chairman Winton: Number 9. Frank Rollason (Executive Director, Community Redevelopment Agency): Number 9. Number 9 is the fee simple sale of the land underneath Bayview Towers. This was the issue that we advertised and has been going back and forth for several months, and we have negotiated a deal, which you have here in the package. I know, at one time, Otto was going to be here tonight . I don't know if Otto showed or not, and if not, Bill, you're here, if you want to run through the details, or I can give you the details of the plan -- I mean, of what the agreement is. City of Miami Page 24 Printed on 2/8/2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 Chairman Winton: One or the other. Mr. Rollason: I'll go forward with it then. Chairman Winton: OK. Mr. Rollason: All right. In your package, you have a synopsis of all the negotiations that went on, from step to step to step. What we ended up with is that -- a deal whereby they will give us -- or they will pay, at closing, $500,000. We will receive seven percent of the gross sales of the units, as they are converted. Chairman Winton: Could you back up a step? Mr. Rollason: Yes, sir. Chairman Winton: I think what you need to do is put on the record what the original lease document stipulates. There's a long-term lease under this property and this lease is being converted to fee simple -- Mr. Rollason: Yes. Chairman Winton: -- and there were certain conditions in the original lease document that I think are important to put on the record so that we can show what the benefit is with the new offer on the table versus the original -- Mr. Rollason: The original deal that we were in. Chairman Winton: -- terms in the original lease. Mr. Rollason: Bill, I'm going to -- Vice Chairman Allen: Bill. William Bloom (Special Counsel, CRA): The original lease contemplated -- you're paying percentage rent. Chairman Winton: What's the term of the original lease? Mr. Bloom: The rent -- the original lease term was 99 years. There's about 87 years to go. The annual rent that's being paid is approximately $3,200 per year. The lease provides that if the property is converted to condominium homeownership, that the CRA (Community Redevelopment Agency), as landlord, gets five percent of the gross sales price. Chairman Winton: Five percent -- Vice Chairman Allen: Five -- Chairman Winton: -- of the gross sales price? Mr. Bloom: That's correct. Chairman Winton: And I would like to point out -- now, what was the -- what's the -- what are the annual lease payments? City of Miami Page 25 Printed on 2/8/2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 Mr. Bloom: Approximately $3,200 a year. Chairman Winton: OK, so just from public benefit, if you're an investor and you're buying an income stream -- now, the number's a little skewed in today's market because the market's pretty crazy, but historically, you would look at that income stream, and I'm going to get that income stream. I want a ten percent return, so how much would I pay to get that $13,000, and the math is, in normal times, you'd pay about $130,000 to get that income stream. Today, in a normal environment -- in today's environment, with cap rates lower, you might be willing to pay $200, 000 for that long-term income stream, and that's the real math of it. Mr. Bloom: But they -- the math, at first, is $3,200 per year, and the math -- Chairman Winton: Oh, three -- Mr. Rollason: 3,000. Mr. Bloom: 3,200. Chairman Winton: Oh, three -- so that's $30,000 or 50, so -- Mr. Bloom: But you also factor in the reversionary interest in the project, in 87 years when the title to the improvements would vest in the CRA -- Chairman Winton: And in today's marketplace, no one will factor those in, but then you have -- moving right along. Mr. Bloom: When you take an appraised value of that, discounting it back -- Vice Chairman Allen: Right. Mr. Bloom: -- to today's dollars, it comes out to approximately $200, 000 per year. Vice Chairman Allen: Per year. Mr. Bloom: And this proposal is, again, $500, 000 now -- Vice Chairman Allen: Right. Mr. Bloom: -- seven percent of the sales price, with a minimum of two million, one to be paid within two years, plus $300, 000 -- not less than $300, 000 to be expended in connection with improvements to the 9th Street Mall. Chairman Winton: How much? Mr. Bloom: $300, 000. Chairman Winton: For the 9th Street Mall? Vice Chairman Allen: 9th Street Mall. Mr. Bloom: Right. Mr. Rollason: In that piece of the mall that runs between those two buildings, between First Avenue and North Miami Avenue. City of Miami Page 26 Printed on 2/8/2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 Chairman Winton: OK. Mr. Bloom: Plus, they pay out their rent current to the date of the termination and they pay out costs to the transaction. Chairman Winton: And when does the seven percent get paid? Mr. Rollason: It gets paid -- Vice Chairman Allen: At each closing. Mr. Rollason: -- as we go, with each closing. Vice Chairman Allen: Each closing. Mr. Rollason: And so -- but the deal is, is that if they do not convert right away or it's slower, we get the 2.1 regardless of where they are, but let's say that it goes better than what is anticipated at 2.1; we get that. In other words, the minimum we'll get is a 2.1 in two years. Chairman Winton: The minimum we get is 2.1, so if -- Mr. Bloom: Right. If they do -- Chairman Winton: -- prices go up, then we're -- we get seven percent of a higher number -- Vice Chairman Allen: Right. Chairman Winton: -- and we get that. Mr. Bloom: That's correct, but again, if they do nothing, they do absolutely nothing, we get $ 500,000; we get $300, 000 improvements to the 9th Street Mall, and we get $2,100, 000 two years from now. Chairman Winton: Two years from now -- Mr. Bloom: Right. Chairman Winton: -- if they do nothing. Mr. Bloom: If they do nothing. Chairman Winton: OK, so -- Vice Chairman Allen: So that's a total of 2.9, based on what he just said Chairman Winton: Yes. Mr. Bloom: Right. Vice Chairman Allen: All the numbers, yeah. Board Member Gonzalez: All right. Vice Chairman Allen: Give or take. City of Miami Page 27 Printed on 2/8/2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 Mr. Bloom: And we're hoping, again, that there'll be an upside with the increase in the percentage interest, and again -- Vice Chairman Allen: Right. Mr. Bloom: -- as Frank was indicating, Otto and Linda Haskins were both involved in the negotiations and support the recommendations. Chairman Winton: OK. Board Member Gonzalez: All right. Mr. Chairman, I move Item 9. Vice Chairman Allen: Second. Chairman Winton: We have a motion and a second. Do we have any further discussion on Item 9? If not, all in favor, "aye." The Board Members (Collectively): Aye. Chairman Winton: Like sign, opposed? The motion carries. 10 04-01394 CRA RESOLUTION A JOINT RESOLUTION OF THE BOARDS OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST AND OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCIES ("CRAS") AUTHORIZING THE EXECUTIVE DIRECTOR TO EXERCISE THE CRAS' OPTION TO RENEW THE LEASE AGREEMENT WITH CITADEL ARENA CORPORATION FOR THE CRAS' OFFICE SPACE AT 49 NORTHWEST 5TH STREET, MIAMI, FLORIDA, FOR A PERIOD OF ONE YEAR, COMMENCING SEPTEMBER 1, 2005, AT THE RATE OF $13,561.67 PER MONTH, OR AN ANNUAL AMOUNT OF $162,740.04 ($16.27 PER SQUARE FOOT), INCLUDING TAXES, UTILITIES, AND 16 PARKING SPACES; FUNDS TO BE ALLOCATED FROM GENERAL OPERATING FUND, "RENT BUILDINGS," ACCOUNT CODE NO. 689004.550010.6.620. COVER MEMO.pdf FINANCIAL INFO. FORM.pdf BACKUP DOCUMENTATION.pdf LEGISLATION.pdf Motion by Board Member Gonzalez, seconded by Vice Chairman Allen, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 4 - Board Member Gonzalez, Board Member Regalado, Vice Chairman Allen and Chairman Winton Absent: 1 - Board Member Sanchez CRA-R-05-0008 Chairman Winton: Item 10. Frank Rollason (Executive Director, Community Redevelopment Agency): Item 10 is the authorization, which is a little bit premature, but you can -- this is to give me the authority to renew the lease in the office building that we currently are occupying, and the reason I'm bringing it now is that, if it's a desire not to do this, we need to start looking now as to what other options would be. I personally feel that we've got a good deal in the place that we're at, or City of Miami Page 28 Printed on 2/8, 2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 we have a fair deal, and I think it would -- unless something better comes between now and renewal time, I think it would be good for us to go forward with this. Board Member Gonzalez: When is the renewal time? Mr. Rollason: The renewal is August, and I have to notify them 30 days prior to that of our intent to renew. They -- Chairman Winton: The landlord really doesn't want us to renew. Mr. Rollason: Yeah. They'd be very happy for us to go bye-bye. Chairman Winton: They can get a better deal, so I think we have a good deal here, not a reasonable deal. Board Member Gonzalez: All right, so I move Item 10, then. Vice Chairman Allen: Second. Chairman Winton: We have a motion and a second. Any further discussion on Item 10? If not, all in favor, "aye." The Board Members (Collectively): Aye. Chairman Winton: Like sign, opposed? The motion carries. 11 04-01375 CRA RESOLUTION A JOINT RESOLUTION OF THE BOARDS OF DIRECTORS OF THE SOUTHEAST OVERTOWN/PARK WEST AND OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCIES ("CRAS") ESTABLISHING A POLICY AUTHORIZING THE EXECUTIVE DIRECTOR, IN CASES OF EMERGENCY, TO ADVANCE PERSONAL FUNDS TO PAY BOARD APPROVED CRA EXPENSES AND TO THEN SEEK REIMBURSEMENT UPON SUBMISSION OF PROPER DOCUMENTATION AND APPROVAL BY THE CRAS' FINANCIAL OFFICER; EXCEPT THAT, IF THE AMOUNT TO BE REIMBURSED EXCEEDS $1,000 THE APPROVAL OF THE CRA'S CHAIRMAN OR VICE-CHAIRMAN SHALL ALSO BE REQUIRED. COVER MEMO.pdf BACKUP. pdf LEGISLATION.pdf Motion by Board Member Gonzalez, seconded by Board Member Regalado, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 4 - Board Member Gonzalez, Board Member Regalado, Vice Chairman Allen and Chairman Winton Absent: 1 - Board Member Sanchez CRA-R-05-0009 Chairman Winton: Item 11. Frank Rollason (Executive Director, Community Redevelopment Agency): Item 11 is an issue City of Miami Page 29 Printed on 2/8, 2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 that -- the only issue that came out from the audit. It was one of the observations. This is a resolution that will create a policy that will effectively make it appropriate for me to take the actions that I took on an emergency basis, and that's ifI do use my own personal funds -- Chairman Winton: Well, why don't you -- Mr. Rollason: -- to -- Chairman Winton: -- put on the record what the issue was -- Mr. Rollason: What happened -- Vice Chairman Allen: Right. Chairman Winton: -- that was brought forth in the management letter in the audit so that everybody understands -- Mr. Rollason: All right. Chairman Winton: -- what that is, and then we can understand what -- Mr. Rollason: All right, sir. Chairman Winton: -- the corrective action is. Mr. Rollason: The issue was that, on two separate occasions, there were events that were taking place within the CRA (Community Redevelopment Agency) that, at the last minute, there was -- the funding was not present at the time of the event for the event to go forward. One was during the Happy Birthday Miami Concert in Margaret Pace Park. The sound people showed up and said that they expected to be paid at the time that they -- half when they unloaded the truck and half at the end of the concert. At that time, the performers -- the orchestra was setting up on the stage and we were faced with a situation. I wrote them a check -- a personal check for $7, 000 to cover that event. Chairman Winton: And you didn't make that a donation to the CRA? Mr. Rollason: No, I did not. In fact, the next day, I got a call from the bank -- Chairman Winton: We're a not -for -profit entity, you could -- Mr. Rollason: -- saying that -- Chairman Winton: -- have taken that off your income tax. Mr. Rollason: Yes, I could have. -- saying that they were there cashing my check and was it to cover that, and I said, yes, to do that. Vice Chairman Allen: That's pretty standard in the entertainment industry. Mr. Rollason: Yes. Vice Chairman Allen: You must -- right. Mr. Rollason: Well -- City of Miami Page 30 Printed on 2/8/2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 Vice Chairman Allen: You pay then -- Mr. Rollason: -- we didn't have that. Vice Chairman Allen: Yeah. Mr. Rollason: And the other event was there was a banquet -- if you remember the back to school event, there was a banquet to be held, an awards banquet, at a particular hotel, and we had the check to cover the front part of that, a City check, and the hotel ran the City check through their system at night -- it was after 5 o'clock on a Friday night -- and the check -- Board Member Gonzalez: Don't tell us that the check bounced. Mr. Rollason: Yeah, the check came back insufficient funds, but -- so they called me in a panic. I was on my way home and I got a call from the Masonic Lodge and the hotel, and I tried to explain to the lady in the hotel that, you know, that there's something wrong. The check has to be good, and she says, look, I'll run it again. She ran it again. It came back insufficient funds, so I said, well, Monday, I'll take care of it, and she said, no, either I have it now or the event's not going to take place, so I -- at that night, I put about $3,500 on my credit card and they had the event. I found out on Monday that the way the City's checking account works is that all of it is zero balance and there is no money in the checking account, and the banks know that when the checks come in, they move the money over and they cover the checks, but because they were running the checks at night, they didn't have that money moved over by the bank and it sits with a zero balance, so I mean, that's the way it's run. It keeps the best float for the City on the interest of the money, and they just move the money as needed, so the auditor came to me and had had these two observations and said, you know, this really looks unusual that, number one, somebody would even take their personal money and do this, and number two, there's no policy for you to do this. Vice Chairman Allen: Right. Mr. Rollason: So what this does here tonight is that it authorizes me to do this, and then, if it's over -- I think, over an amount of $1, 000, that it would be reviewed by either the Chairman of the Board or the Vice Chairman of the Board so they could see what the circumstances were that I -- were to write this check. Board Member Gonzalez: Mr. Chairman, I'll move Item 11. Vice Chairman Allen: OK, and so this is in a way of both your reimbursement and a motion? Mr. Rollason: Well, I've been reimbursed. Chairman Winton: No, no. He's been reimbursed. Mr. Rollason: I've been reimbursed. Board Member Gonzalez: He has been reimbursed. Chairman Winton: So this is to set new policy for the future. Vice Chairman Allen: You've been reimbursed, OK. Mr. Rollason: Just a policy -- Vice Chairman Allen: Right. City of Miami Page 31 Printed on 2/8/2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 Mr. Rollason: -- of doing it. Vice Chairman Allen: Yeah. Chairman Winton: And what I've asked him to do is -- the way the policy was originally drafted, the internal -- your controller -- Mr. Rollason: Right. Chairman Winton: -- or somebody -- Mr. Rollason: Right. Chairman Winton: -- would sign off on it -- Mr. Rollason: Our CPA (Certified Public Accountant), right. Commissioner Winton: -- so you had two people in the same entity signing off. I said that's OK up to $1, 000 -- Vice Chairman Allen: OK. Chairman Winton: -- but if the amount is over $1, 000, the approval for reimbursement has to come to either the Chairman or the Vice Chairman of the Board so there's somebody on the outside looking at it, and that's just cleaner. Vice Chairman Allen: Right, with proper documentation. Chairman Winton: Bingo. Mr. Rollason: And, of course, there's no guarantee that the next Executive Director of the CRA would do this. Of course, if it were -- happened to be the City Manager, there's no problem with the funding there, so I'm sure he'd write whatever you had to have. Board Member Gonzalez: You bet. Mr. Rollason: But -- Chairman Winton: We have a motion and a second. Board Member Gonzalez: Big pockets. Chairman Winton: Do we have any further discussion? Board Member Regalado: I -- just one. I'll -- Chairman Winton: Yes, sir. Board Member Regalado: -- support this item. I wish you'd change the word "emergency" to " urgent need" because we don't want to -- Mr. Rollason: No, I -- Board Member Regalado: -- be in the paper tomorrow. You know, CRA is also with City of Miami Page 32 Printed on 2/8/2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 emergencies -- Vice Chairman Allen: Right. Board Member Regalado: -- resolution, but -- Mr. Rollason: Well, these also, so that you -- Vice Chairman Allen: Well, that's -- Mr. Rollason: These are events that the Board has already approved. Board Member Regalado: No, I know that. Mr. Rollason: It just was a problem with the actual cash flow. Board Member Regalado: No, I know that. Chairman Winton: We need a second to the motion. Board Member Regalado: Second. Chairman Winton: We have a motion, second. Discussion. Being none, all in favor, "aye. The Board Members (Collectively): Aye. Chairman Winton: Like sign, opposed? The motion carries. REPORTS 12 04-01379 CRA REPORT SUBMISSION OF PRINTED STATUS REPORT ON PENDING LEGAL MATTERS (NO BOARD ACTION REQUIRED). STATUS REPORT.pdf DISCUSSED A motion was made by Board Member Allen, seconded by Board Member Gonzalez, and was passed unanimously, with Board Member Sanchez absent, to waive any conflict of interest on the part of the law office of David Cardwell in providing a legal opinion to Sawyer's Walk, Limited regarding the use of TIF (Tax Increment Funds) in connection with said project, noting that the Cardwell law firm is currently under an engagement letter with the CRA (Community Redevelopment Agency). Frank Rollason (Executive Director, Community Redevelopment Agency): And -- Chairman Winton: 12. Mr. Rollason: -- Number 12 is the update on the legal -- status of the legal events, which you notice is down -- Chairman Winton: It's in the -- right. Mr. Rollason: -- to one page now, so -- James Villacorta (Assistant General Counsel): There is -- City of Miami Page 33 Printed on 2/8/2005 Community Redevelopment Agency Verbatim Minutes January 31, 2005 Chairman Winton: Outstanding. Mr. Villacorta: -- one thing from the Law Department. As a result of the Crosswinds settlement, Sawyer's Walk is required to obtain a legal opinion from counsel regarding the use of TIF (Tax Increment Fund) funds for that project. They'd like to use the attorney that we use, David Cardwell, and the CRA (Community Redevelopment Agency) needs to pass a motion waiving any conflict of interest on the part of the law office of David Cardwell in providing a legal opinion to Sawyer's Walk, Limited, regarding the use of TIF funds in connection with that project, as he is under an engagement letter with the CRA. Chairman Winton: Need -- Vice Chairman Allen: I'll move -- Board Member Gonzalez: I'll second it. Chairman Winton: We have a motion and a second. Discussion. Being none, all in favor, "aye. The Board Members (Collectively): Aye. Chairman Winton: Like sign, opposed? The motion carries. Anything else? Board Member Gonzalez: That's it. Chairman Winton: Meeting's adjourned. City of Miami Page 34 Printed on 2/8/2005