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HomeMy WebLinkAboutSEOPW OMNI CRA 2006-06-26 MinutesCity of Miami City Hall 3500 Pan American Drive Miami, FL 33133 www.ci.miami.fl.us * IMCORP GROTED lEmSIE Co l 11, • Meeting Minutes Monday, June 26, 2006 5:00 PM Meeting Location: The Double Tree Grand Hotel in the Key West Room 1717 North Bayshore Drive Miami, Florida SEOPW and OMNI Community Redevelopment Agencies Michelle Spence -Jones, Chair Angel Gonzalez, Vice Chair Linda M. Haskins, Commissioner Joe Sanchez, Commissioner Tomas Regalado, Commissioner ************************** CRA OFFICE ADDRESS: 49 NW 5th ST, SUITE 100, Miami, FL 33128 Phone: (305) 679-6800, Fax: (305) 679-6835 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 Present: Vice Chair Gonzalez, Commissioner Sanchez, Commissioner Regalado, Chair Spence -Jones and Commissioner Haskins On the 26th day of June 2006, the Board of Directors of the Community Redevelopment Agency (CRA) for the Southeast Overtown/Park West and Omni Districts of the City of Miami met in regular session at the Double Tree Grand Hotel, Miami, Florida. The meeting was called to order by Chair Michelle Spence -Jones at 5:11 p.m. and was adjourned at 6:33 p. m. ALSO PRESENT: Frank Rollason, Executive Director, CRA, City of Miami James Villacorta, Assistant General Counsel, CRA Pamela E. Burns, Assistant Clerk of the Board Chair Spence -Jones: Good evening and welcome to the CRA (Community Redevelopment Agency) meeting. We'd like to at least start off with a prayer, and I'd like to ask my fellow colleague to lead this for me, Commissioner Sanchez -- I should say Reverend Sanchez; he's so good at it -- as we open up our meeting. Invocation delivered. Minutes are transcribed verbatim. Periodically, agenda items are revisited during a meeting. "[Later...]" refers to discussions that were interrupted and later continued. FINANCIALS 1 06-00916 CRA REPORT FINANCIAL SUMMARY THROUGH MONTH END MAY 31, 2006. 06-00916 Financial Summary.pdf DISCUSSED Chair Spence -Jones: OK. We're going to go ahead and start. Actually, I'm going to ask Frank Rollason to give us the CRA (Community Redevelopment Agency) report on the financial summary. Frank Rollason (Executive Director, Community Redevelopment Agency): I'll have Miguel Valentin, who's the financial officer for the CRA, go over the financials. [Later...] Miguel Valentin (Chief Financial Officer, Community Redevelopment Agency): Good afternoon, Chairman and Commissioners. On page 1, you will have the combined statement of financial position for May 31, 2006. On the first item as cash unrestricted under Southeast Overtown/Park West, we are disclosing the amount of $551, 042, and under Omni as cash unrestricted, we are reporting 795,914. I will like to tell you that these monies were going to be -- they are going to be used for the funding needed to carry out the item number 5 that later on you will have the opportunity to review. Besides that, there is no reportable condition to inform to the Board, and everything is sound and very well. Chair Spence -Jones: Good. I just want to ask you one quick question just so that I have clarity before we move on to the next item. I don't know if any of my colleagues have any questions, but I just had one. Regarding the Bayview Tower land sale, that -- can you speak to me -- speak on that just a minute so I understand exactly where that came from? Mr. Valentin: Yeah. Basically, under the footnote, those are the items that made up the total of City of Miami Page 2 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 551,042. Chair Spence -Jones: Right. Mr. Valentin: This is part of the proceeds that we obtain out of that sale transaction, and still they are available for your -- for you for whatever -- Chair Spence -Jones: OK Mr. Valentin: -- you wanted to do. Mr. Rollason: We have several line items of cash that are not TIF (Tax Increment Fund) money. Chair Spence -Jones: OK Mr. Rollason: We used to have general fund money, but we don't anymore, so because of the sale of that land -- and you'll also see in the 2007 budget is the anticipated payment this year from Bayview of the what, 2.1 million that they owe us this year is also in the projected revenues for this year, and there's also the sale of the land for P5, which is what, about 40 --? Mr. Valentin: Forty-one thousand -- Mr. Rollason: Right -- Mr. Valentin: -- seven hundred forty four. Mr. Rollason: -- and those are unrestricted cash amounts that can be utilized as a Board -- Chair Spence -Jones: OK -- Mr. Rollason: -- discretion to use. Chair Spence -Jones: -- and just so that I have a understanding, I know I've had several briefings from Villacort [sic] regarding this whole issue of you know, the Jackson Soul Food issue. Is that a different account altogether that's not shown here, or is it shown in this overall amount? Mr. Rollason: The Jack -- Chair Spence -Jones: Like where do you put those dollars? Are they separate from --? Mr. Rollason: They are separated now. They've been budgeted for that project, and they are identified in the -- when you look at the capital projects in Southeast Overtown/Park West, you will see the item there for Jackson Soul Food -- Chair Spence -Jones: OK -- Mr. Rollason: -- restaurant with that money -- Chair Spence -Jones: -- so it's a separate -- Mr. Rollason: -- and that money is accounted for and separated. That is TIF money. Chair Spence -Jones: OK. All right. Thank you. Does my colleagues -- any of my colleagues have any -- City of Miami Page 3 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 RESOLUTIONS 2 06-00917 Commissioner Sanchez: Just one -- Chair Spence -Jones: -- questions? Sure. Commissioner Sanchez: -- question. I just want to make -- be very clear that, Mr. Finance Director, you stated very clearly there are no reported conditions -- Mr. Valentin: No, sir. Commissioner Sanchez: -- to this legislative body. Mr. Valentin: No, sir. Commissioner Sanchez: Thank you. CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("CRA"), WITH ATTACHMENT(S), APPROVING AND ADOPTING THE CRA'S PROPOSED GENERAL OPERATING BUDGET AND TAX INCREMENT FUND BUDGET FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2006 AND ENDING SEPTEMBER 30, 2007; AND DIRECTING THE EXECUTIVE DIRECTOR TO TRANSMIT A COPY OF EACH BUDGET TO THE CITY OF MIAMI AND MIAMI-DADE COUNTY. Cover Memo.pdf 06-00917 Back-up.pdf 06-00917 Legislation.pdf DISCUSSED Commissioner Spence -Jones: Thank you. We'll move on to the resolutions. Frank, you -- Frank Rollason (Executive Director, Community Redevelopment Agency): All right. Commissioner Spence -Jones: -- item number 2. Mr. Rollason: Item number 2, we have both budgets for the two CRAs (Community Redevelopment Agencies) this evening. By resolution of the Board several years ago, the executive director is directed to bring the budgets to the Board no later than the June meeting of each year. The Board can take whatever action they deem appropriate, and we can bring back changes or modifications for a final approval in July. We don't meet in August, and then what we'll do in August is we'll forward those to the City to get on the City Commission meeting of September to have the budgets accepted, so we can look at them tonight, answer any questions that you may have, and then bring them back in July, or you can approve them as they are tonight, or you know, whatever your pleasure is. The first one is Southeast Overtown/Park West CRA, and what I'd like to do is just hit on the projects -- if you go to the very back sheet, you will see the capital projects that we're looking at for '07, and you will notice that there are two rows of exits -- X's that run down; one says appropriated prior to FY fiscal year) '07, and when -- it's right at the back of item number 2. When you turn to -- that's it, and now go right to the last page of that tab and you'll see a sheet -- keep going -- and there'll be a printed sheet, which is cap -- there you go right there -- with capital projects and grants. The X's that you see under '07 is exactly what we were talking about. Those are projects that have had appropriations -- City of Miami Page 4 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 actions that the Board has taken putting the money into those projects prior, but because the way the CRA budgets run, that they don't -- all the money doesn't get turned back and start all over again, when these items have been appropriated, we carry those items forward to the next year and those projects continue, and we have that money locked up, and when you look on the left-hand side, where it says "Budgeted for FY'07, " is where we're adding monies to the projects, so when you look at the 3rd Avenue Business Corridor Streetscape project, the first item on the agen -- on the list, you see that there was $750, 000 that was approved prior to the '07 budget. This year I'm recommending that we add another million dollars to that out of the TIF (Tax Increment Fund) money that's coming for that project, so when you approve this budget, you, in essence, approve the additions that we're talking about as far as budgeting the dollars, and then when I go to spend that million dollars into the 3rd Avenue streetscape, I'll come back to the Board with an appropriations resolution saying now I want you to let me spend the money, and the money is there because we budgeted it in the budget, so that's basically, you know, how it works, so as you look -- as we run along here, running down these items, you'll see that there's an additional $250,000 that we're adding to the Overtown sidewalk, curb, and gutter project. We already had $850,000 in that project. We've been told by CIP (Capital Improvements Program) that it's not going to be enough, so they think it's somewhere around a million, so I'm saying let's put $250, 000 in there, and you know, try to have enough to get that project completed, and then as you take the Ward Rooming House -- the Ward Rooming House, you see that there's $40, 088 left. That's out of the $600, 000 that we appropriated for that budget, and we now have 40,088 left, but now when we start talking about building out or doing something in the inside, if you drop down a line, you see in the '07 budget, I'm recommending that we put another $200,000 in the Ward Rooming House so that we've got the cash to do the build -out. If and when we go to do the build -out, we'll come back here to the Board for an appropriation and say we want to go forward and do the Ward Rooming House. We have the money; it's in the budget that was approved in '07. These budgeted amounts that are in here, you have the latitude to change the projects as we go through the year, but what it does now is it identifies the money and it locks it up into projects that make sense at this point in time. It's only when you make the appropriation that the money's locked in that we actually go forward to spend the money, and then, if you drop down towards the very bottom, you'll see that we're looking at putting another $200, 000 in the Lyric Plaza project, and we're putting $100, 000 -- it's a new project -- on some decorative lighting on the Grand Promenade to try to do something on the back. We hired a consultant, who is doing several designs for us, and I'm not exactly sure what he's going to come back with or the amounts, but this seemed to me a reasonable figure to get a pilot program behind the clubs on the Grand Promenade with some lighting, little more decorative lighting than just the streetlights, so if there's any questions on any of those -- when you drop down to the grants on the bottom, you can see that I've stuck another $500, 000 in the business grant program for the Overtown area; the one that originally was 200, we now got it to 250, and we're also -- we're trying to get a program started both in Southeast Overtown and in Omni that deals with infrastructure and private public projects that developers are having to go forward with and are having problems with infrastructure items or impact fees or that type of thing that we may be able to assist them so those projects can take place, and in the Overtown area, we had enough money to put $950,000 in that project. We added considerably more in the Omni side, but that's just the result of the TIF that's come in, and one of the items you're going to hear tonight deals with that very topic of this kind of problem that they're running into. Commissioner Sanchez: Which item is that, 5? Mr. Rollason: Yes, that's 5. Commissioner Regalado: Madam Chairman. Commissioner Haskins: I had a couple questions. Frank, I -- in the revenue side, the 2.1 million in Southeast Overtown/Park West revenue, that's the estimated revenues from Bayview Towers for next year; is that correct? City of Miami Page 5 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 Mr. Rollason: That's on the bottom -- Commissioner Haskins: In the revenues. Mr. Rollason: Yes. There's a 2.1 million from -- it's due, I think, in April or May. Commissioner Haskins: OK. Miguel Valentin (Chief Financial Officer, Community Redevelopment Agency): April 2007. Mr. Rollason: April 2007. Commissioner Haskins: OK. That answers my -- the rest of my question because in the budget - - and I think this is, you know, really the smart thing to do -- there is a budget reserve of 2.7 million, a lot of that is taken up by the Bayview Towers. You've got a little bit left over, so it's -- until we get the money, it's a good idea not to appropriate it, so that was -- Mr. Rollason: Right. We just -- Commissioner Haskins: -- really good, and one other question, though. On page 8, the schedule that we were just going through, the Southeast Overtown/Park West restricted CIP monies. The new CRA office, I didn't show -- see this showing up anywhere in the budget and there was some information on that. Mr. Rollason: It's not in the budget. That money, which is growing -- started out at 2 million -- is part of the proceeds from the bond issue on the MRC (Miami Riverside Center) building, and at that time, Chairman Teele -- I don't know if he was chairman of the CRA at the time, but anyway, at that time, Commissioner Teele, when that deal was being done on the MRC building with the City, he was able to work out a portion of that funds to be set aside particularly for office space in the CRA. That money has now grown to two point -- it's about 2.7 now, isn't it? About 2.7, and the idea being is that we would -- instead of going out and building an office building for the CRA -- partner with somebody that is doing some type of structure that make sense for us to partner with and use the money as an incentive or a help for that project and incorporate that money into that project, of which we would end up with office space out of that project, and there's been several different projects that have come to discuss, and there's one we're discussing now, and -- with Chairman Spence -Jones, but that money sits in an account over in -- Commissioner Haskins: In the City. Mr. Rollason: -- City Finance. Mr. Valentin: The City. Mr. Rollason: We -- Commissioner Haskins: The City fund balances. Mr. Rollason: Yes. Commissioner Haskins: I just -- yeah, and -- so that is money -- Mr. Rollason: But we show it, but -- City of Miami Page 6 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 Commissioner Haskins: -- at some point in time that we can tap into because the City has the funds, and if we find that project that we want -- Mr. Rollason: Right. Commissioner Haskins: -- to help and have the -- get the offices at the same time, we can tap into it. Mr. Rollason: We just don't show it in our budget because it's really not ours to get into. Chair Spence -Jones: And I think that we have -- I think we mentioned in -- not this meeting, but the past meeting, when Commissioner Winton was on board, we talked about a potential project because I thought -- I think that Commissioner Regalado even mentioned that we might need to find a better use for the monies for the new CRA office, and I think we were looking at doing something, perhaps, attached to the Lyric Theater's project, but we had not fully decided that that's what we were going to do, then officially have a presentation from them in order to make that decision. Commissioner Haskins: OK, and then I -- just one last -- can -- if I can indulge -- Mr. Rollason: Sure. Commissioner Haskins: -- everybody and just ask one last question? The capital projects, have that -- have all of these gone through the capital -- Chair Spence -Jones: Improvement. Commissioner Haskins: -- plan that's being put together, or --? Mr. Rollason: They are all listed on that -- in that -- Commissioner Haskins: OK. Mr. Rollason: -- and the question will come at the end as to -- we've got two different sets of projects. These projects are projects that we're taking cash in hand, as TIF money comes every year to do the project, so that we don't have money that's piling up, and maybe somebody's saying, why is this money piling up, and they're good projects to do, and they're fairly straightforward. As we're working with the committee -- that the Chair is chair of that committee -- dealing with the future sale of bonds, the projects are larger and more extensive, and are really different or extensions -- some of them are extensions of these, bigger than that. For instance, when we get into the Omni side, the one with the Woman's Club. We have some money in this year's budget earmarked for the Woman's Club, but when we talk about the bond issue, we have considerably more in there for the historic preservation of the Woman's Club, but these projects are -- other than making the committee aware that these projects are existing, these aren't the ones they're concentrating on to come up with the plan. These are ones we're looking next year to spend money and do these projects. Chair Spence -Jones: But let me also add -- I do think that while -- and hopefully, I can ask Commissioner Haskins to assist with this. I know prior to you officially coming on board, you were already working with kind of pulling all of them together, the CRA, DDA (Downtown Development Authority), and I guess, the parking piece of it. I'd like to see whether or not you can continue that effort because I know that you have the expertise on how to deal with this issue of the bond, so is there -- is that something that you'd be willing to continue to support us on making sure that we stay on the right track to meet the deadlines? City of Miami Page 7 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 Commissioner Haskins: Absolutely, and I'd also like to -- I know that you're heading up the capital improvement committee and -- are those meetings noticed, the capital improvement --? Mr. Rollason: Oh, yeah. They're Sunshine meetings. Commissioner Haskins: So I would be able to attend those meetings? Mr. Rollason: Sure. Chair Spence -Jones: Yes. Commissioner Haskins: OK. Chair Spence -Jones: We'd love for you to be there. Commissioner Haskins: If you could invite me, I'd like to do that because -- Mr. Rollason: What we'll do in -- Commissioner Haskins: -- that'll help me in the bond plan. Mr. Rollason: -- the notices, we'll have to add something that two of the board members may -- that has not been in the notice, but we can add that in the notice. That's -- Commissioner Haskins: Thanks. Mr. Rollason: -- not a big deal. Chair Spence -Jones: OK. Commissioner Regalado: One -- Chair Spence -Jones: Sure. Commissioner Regalado: I was going to ask also about the office -- the new CRA office to be located within CRA boundaries, and Linda asked the question that I was asking, well, why it's not in the budget, but the other issue is what do we know about the future of the CRA in terms of the County? And I'm asking this because of this money and because of future plans, and because, you know what? This money can be leveraged with (UNINTELLIGIBLE) with the County in terms of building a state-of-the-art sort of community center/meeting place/office that, you know, County and City could share, which has a meeting room open and free to the community, and that could be a leverage, Madam Chairman, because, you know, we can plan whatever we want, but then the big boys do whatever they want, so I think that we could really define -- we should define, you know -- we should think a little more about this project with the money that we have now and take this as part of the lobbying effort on behalf of the CRA in the County, and I'm sure that you can do it because they will listen to you. It's your area and it is important, and it's something, you know, that you can -- it's an offer you cannot refuse, if you -- so, it's a lot of money. You know, some people may wish to think that we could use this to enhance the area and you dissolve this chunk of money, and that will take away your leverage with the County, and that's all I -- Mr. Rollason: Well, that -- this piece of money has restrictions on it exactly what it -- through the bond issue -- exactly what it's to be used for, and you also have to keep in mind is that whenever the CRAs go away, which eventually they will, all of the assets of the City (UNINTELLIGIBLE) -- the CRA go to the City, so if there is some phase or some office complex City of Miami Page 8 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 built with a meeting room or whatever, it reverts to the City proper when the CRA goes away. It's not like we invest the money and then we lose that capital investment. Chair Spence -Jones: OK. Any other questions before we move on? I do want to just add real fast -- Commissioner Sanchez: Madam -- Chair Spence -Jones: -- just adding onto Commissioner Haskins' comment, and our capital improvement -- some of our members are actually here tonight. We will make sure that we consider all the projects -- and that was the reason why I asked Frank if there was any way we can defer this until July because there's clearly some projects on here that, you know, I feel that - - you know, and the community feels that we might need to make some adjustments on, but I was - - it was communicated to me that we needed to pass it in June, and whatever changes that we may need to make, we can make them in July. Mr. Rollason: No. You could -- we can just discuss it tonight and -- Chair Spence -Jones: Well, I don't want to -- Commissioner Sanchez: Madam -- Chair Spence -Jones: -- discuss it tonight. I would rather -- Commissioner Sanchez: -- Chair, if I -- Chair Spence -Jones: Yes. Commissioner Sanchez: -- may on the issue? Chair Spence -Jones: Um -hum. Commissioner Sanchez: Mr. Executive Director, one of the biggest responsibilities that we have as the legislative body of the CRA is -- one of them is to approve a budget that's going to be approved by the City Commission. Now, I've glanced through it and I've had -- I've done some research with my staff, and I can honestly tell you that everything seems to be in order. However, I do like the process because we shouldn't hurry. We got plenty of time now for you to give us a presentation maybe later on. We still have -- we usually -- the City will usually -- in September is when we vote on to approve all the budgets -- Mr. Rollason: Right. Commissioner Sanchez: -- so we do have plenty of time to get with you, and if we may have some questions and stuff as to what's going on, so I do like the process. I'm comfortable better now with the process instead of in the past, where we used to approve it and take it to the Commission. Now I think the process is more smoother. As we continue to grow and more projects are in the CRA, we have -- for you to give us a presentation like you've done and we have an opportunity to, under the Sunshine, address the concerns that have been brought forth by some of my colleagues here, to address those issues, but I still think that we should not pass it today. We should, you know, get with you later on on some of the issues. I know I have some more questions. I'd like to sit down with you, and then possibly later on, maybe in July, bring it back the next meeting; we approve it, giving it time to go to the Commission, as other agencies are doing. Mr. Rollason: No, that's good. That's why we had that one -month play. The -- I have to get it to City of Miami Page 9 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 you by June, then if you -- I mean, we have passed them in June before. One time we passed one in June and held the other one 'til July, and then we can bring it back in July; we finalize it, and then it will be transferred to the Commission during -- to the City during June to get on the September agenda with the other budgets. Commissioner Sanchez: And I could tell you the biggest concern that I'm going to have is to make sure that all the capital improvement projects that are set forth are budgeted, and I've always been a stickler to three things: every project has to be time certain, cost certain, and project certain because, at the end of the day, Mr. Executive Director, you're the band leader here, and you know, we're the orchestra. Mr. Rollason: I understand, and that's why we do it this way now, and this money, once it is budgeted, I don't do projects out of this like a pot. It sits there until the money's appropriated, unless you all make a decision that I don't want to use that extra million dollars for the 3rd Avenue streetscape, I want to do something else with it, but anything that comes before this Board, you know, over the past few years, is fully budgeted, identified, the money's set aside. It is encumbered, and it doesn't get counted again and used for something else. It's locked up; once you all appropriate it, that's where it is. Commissioner Sanchez: Thank you. Chair Spence -Jones: So, Commissioner Sanchez, are you saying that we should just go ahead and -- is it your thought to maybe -- Commissioner Sanchez: My -- Chair Spence -Jones: -- just wait until July? Commissioner Sanchez: -- recommendation -- and I think the executive director agrees with me, it gives us an opportunity now to review the agenda. If we do have any questions, we could contact him or his staff pertaining to the agenda. We've got plenty of time. You know, come back in July. In July, we'll approve it, giving it plenty of time to go in front of the Commission before the end of the fiscal year, and I mean, I just don't want to rush through -- Chair Spence -Jones: And -- Commissioner Sanchez: -- the agenda. Although, Frank, once again, let me take this opportunity to praise you and your staff. I, as a board member, feel much comfortable coming here with the new process and the budget as it is because, you know, I could honestly tell you that, in the past, it was a shell game, and that really left me uncomfortable at times. Having seen the new process and see how line items are put forth and the agenda is more transparent, more understanding, you could -- you know, it's not confusing, so I'm much comfortable with the agenda now, but it's -- I just don't see the urgency for us to approve it today when we got plenty of time to review -- Mr. Rollason: It's fine. Commissioner Sanchez: -- some of the issues. Chair Spence -Jones: So we're going to defer this until the next -- Mr. Rollason: We'll just continue it and -- Commissioner Sanchez: Yeah. Just -- City of Miami Page 10 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 Mr. Rollason: -- I'll bring it back in July. Just we discussed it, no action taken. Chair Spence -Jones: No problem. Commissioner Sanchez: And of course, that would be both items, both -- Mr. Rollason: Right, and I -- Commissioner Sanchez: -- budgets. Mr. Rollason: -- that's number 3. Chair Spence -Jones: 2 and 3. 3 06-00918 CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("CRA"), WITH ATTACHMENT(S), APPROVING AND ADOPTING THE CRA'S PROPOSED GENERAL OPERATING BUDGET AND TAX INCREMENT FUND BUDGET FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2006 AND ENDING SEPTEMBER 30, 2007; AND DIRECTING THE EXECUTIVE DIRECTOR TO TRANSMIT A COPY OF EACH BUDGET TO THE CITY OF MIAMI AND MIAMI-DADE COUNTY. 06-00918 Cover Memo.pdf 06-00918 Back-up.pdf 06-00918 Legislation.pdf DISCUSSED Frank Rollason (Executive Director, Community Redevelopment Agency): But number 3, I just want to hit a couple of issues and make you aware of -- again, with the Omni, if you go to the last page of the Omni budget, you'll see a similar sheet with the projects, and the first one is an interesting one that I have been trying to make happen for a couple of years now, and this is the waterline -- sewer line upgrades in the Omni CRA (Community Redevelopment Agency) -- Commissioner Sanchez: WASA (Water and Sewer Authority). Mr. Rollason: With WASA. Commissioner Sanchez: Through WASA. Mr. Rollason: -- working from the west side going east, so that the west side, where the poorest side of what we're dealing with with the Omni, we start to improve those waterlines, which will help with the development that's going to happen on the west side, so if you look at that first item, you'll see there's $3.5 million there that was already appropriated in 2007 -- Commissioner Sanchez: Seven. Mr. Rollason: -- so we've got three five sitting there now. What I'm recommending in this year's budget is to put another half a million dollars with that to bring it to four. The item that's coming before you tonight on the Omni project is the 3.5 million that's already appropriated for me to be able to go forward with that. If it turns out that we need more money -- we've got it in the budget -- I'll come back to you, and I'll say we need to increase that 3.5 by 300,000 or 200, 000, or maybe the full 500, 000. We don't know yet, but by putting this 500,000 in the budget, it just tags some money, sits it there until we come back to you to get your authorization. City of Miami Page 11 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 Tonight, when you vote on the Omni water project, you're going to allow me to enter into a JPA (Joint Participation Agreement) with WASA to actually -- we start doing the project; negotiate the deal, and then -- in fact, we're going to bring the JPA back to the Board, too, right? James Villacorta (Assistant General Counsel, Community Redevelopment Agency): Yes. Mr. Rollason: So you're going to have another hearing on that after we do the deal on that with WASA -- Commissioner Sanchez: All right. Mr. Rollason: -- so there's that project. When you look at the 14th Street Corridor, the streetscape project, this is a extension of the super block project that we're doing around the PAC (Performing Arts Center) right now. That's a $4.5 million project. We want to continue that project west on 14th Street into the Omni Entertainment District, then south along Miami Avenue, eventually getting into the Southeast Overtown area, and along 11 th Street and all that, but I don't have the money to do -- Commissioner Sanchez: Right. Mr. Rollason: -- all of it, so what I'm doing this time is we're adding another million dollars to the million and a half that -- if you look, you'll see the million and a half was already approved before. The -- CIP (Capital Improvements Program) is doing this project in the City, and they've already hired the design team to start the work on that, and that's coming out of the 1.5, but I already know, from meeting with Mary, that the 1.5 is not going to get it done, so I'm sticking another million dollars in there -- or proposing to the Board that we put another million dollars in in this year's budget, and then -- Commissioner Regalado: But why? Why it's not going to make it 1.5? Mr. Rollason: Because it's not enough. I think it's -- the last estimate I've got, which -- Commissioner Regalado: OK, but who came up with the figures in the first place? Chair Spence -Jones: Yeah. Mr. Rollason: Well, let me explain how that works. When we get these projects going, sometimes I have to work backwards and I look at how much I've got available in the pot, and knowing that 14th Street was going to be more than a million and a half dollars, but I had a million and a half dollars that I could put towards it, and we can get the project going with design work and start the initial environmentals and all that type of stuff. Now that CIP has taken a strong look at it, they're coming back with a figure of a little bit over $6 million, and I'm -- personally, I'm choking on that, so I need to meet with them and see how those numbers massage out because if we're doing all around the PAC for 4.5, and I'm going to go down one street for six -something, I need to understand what that is, but I know that the million and a half isn't going to get it done, and the only difference is going to be, when you commit to a project like this, is are we going to pay it out of the TIF as it comes annually, or are we going to stick this on the -- Chair Spence -Jones: Capital -- Mr. Rollason: -- bond and we'll say we need another $4 million for 14th Street to finish 14th Street? So there are other projects besides these, especially in Southeast Overtown/Park West, that we don't have the cash flow coming in, but we will when we sell the bond, so we want to do 11 th Street and we want to do 9th Street. Those will be bond projects that we would identify. City of Miami Page 12 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 Commissioner Regalado: Just don't tell them that we're going to sell bonds because then the 14th Street will be like $9 million, you know. Mr. Rollason: No, I -- Commissioner Sanchez: Frank -- Mr. Rollason: -- understand. Commissioner Regalado: Because, I mean, from one point -- Chair Spence -Jones: I know, to six. Commissioner Regalado: -- to six is -- I mean, Frank, that's -- Mr. Rollason: No, no, I -- listen, I'm right there with you. Chair Spence -Jones: So is it -- that -- and part of your concern, too, Frank, at one time was that you no longer -- or the CRA no longer handles your capital improvement projects. Mr. Rollason: Well, I mean -- Chair Spence -Jones: Is the cost inflated because of the additional cost from the consultant standpoint? I mean, how did we go from -- how did we jump from -- Commissioner Regalado: Of course. Chair Spence -Jones: -- one to six? Mr. Rollason: I mean -- Commissioner Regalado: Of course. Chair Spence -Jones: I'm just asking. Commissioner Regalado: Of course, consultant. Mr. Rollason: You know, we had -- yeah, but in fairness to the City CIP side is we didn't have the number of projects going that we're trying to get going now, and very quickly, if I had one consultant on board like we did with HJRoss, they're going to become overwhelmed being able to keep up, just like the City gets overwhelmed even with the number of consultants they have, but you know, the one thing that continues to bother me in the -- dealing with the City side is the administrative fee that we get hit with -- Chair Spence -Jones: That's what -- well, that's -- Mr. Rollason: -- taking it out of the TIF. In other words, I look at that and say all of these capital projects that we do are improvements to the City's infrastructure. The CRA doesn't own anything. We come and we do this, and I got to believe that if a private outfit came, a bank came, or a company came and said, hey, listen, I'll give you $6 million to redo this street, but just don't charge any administrative fees, that the City would say to them, "No. We don't want your $6 million if you don't pay the administrative fees," so I think there's some give and take. Some of these things that we do would not happen if we didn't put this funding forward to do it, but that's not a huge side. The big side seems to be the rapidly increasing cost of construction and City of Miami Page 13 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 materials, which are growing. I mean, even to get light poles now, additional light poles, the figure's almost double on the light poles that we got for the PAC, so there are legitimate cost increase, but I want to see the cost per foot and I want to see what kind of distance we have there because I am having a tough time of looking at the PAC at 4.5 and looking at 14th Street at six point something. It's -- doesn't seem right to me. Commissioner Regalado: But if I may? Chair Spence -Jones: Sure. Commissioner Regalado: You know, 14th Street, it's very close to the Performing Arts Center, right? Mr. Rollason: That is correct. Commissioner Regalado: OK, so that is one of the priority of the County, of the City, civic leaders because you can't have 14th Street all messed up and open the Performing Arts Center. I mean, you know, the people with tuxedos and all that and long gowns and all that will be walking on the potholes. Why should the CRA take all the brunt? Because this is a regional project. Mr. Rollason: I understand, but that's sort of at the level where you all sit to deal with -- Commissioner Regalado: Yeah. Well, you know, I'm just saying. Mr. Rollason: -- the County. Commissioner Regalado: Look, I'm just saying -- Mr. Rollason: No, I hear you. Commissioner Regalado: -- the little kid always -- in this case, it's the CRA. Oh, they have money; let them pay. Pay the consultants, pay everything, and this has to stop because 14th Street is not the only street. Mr. Rollason: No. Commissioner Regalado: You got 15th Street; you got 16th Street or 13, or 12, but 14 happens to be right next to the Performing Arts Center. Mr. Rollason: No. Well, we have identified major thoroughfares through each of the CRAs, and 14th Street and 17th Street in the Omni, 17th Terrace are main drags that cut through -- Commissioner Regalado: Absolutely. Mr. Rollason: -- and we also have to keep in mind is that we're doing, on these streets, way above what the standard is for redoing a street. It's not coming in and milling a street and redoing a sidewalk. We're making these outstanding roadways, and we're doing it around the PAC, and it was a pilot project with the whole idea that the whole entertainment districts, all three of them, are going to be tied together with the PAC so that when you're on one of those streets, you know you're in an area that's just as important as the PAC is to us in the City, so it's important to me, in the concept of the overall project, that we don't stop just going around the PAC; that we do 14th Street, we eventually do 11 th Street, and we do 2nd Avenue from the Lyric up so we can get the Blues and Jazz District included, too. It's just when the money comes. City of Miami Page 14 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 Chair Spence -Jones: Any other questions on this so we can move on this item? Commissioner Sanchez: Just -- Chair Spence -Jones: Sure. Commissioner Sanchez: -- since we're on the budget -- and I want to focus on the budget. I don't want to steer away from the budget. On the strategic and planning aspect of it, Frank, the worst thing that we want to do is ever to fund a project to fail. In other words, whatever we put today for a project that's a million dollars, if you wait six months, four months -- six months, it's going to be 1.2, 1.3, 1.4, because of the growing number of construction costs that continues to increase. Mr. Rollason: Now on the issue of bond -- the bond board, I think it's important for the bond board, and I don't know if they met already or they're going to start meeting, to determine what is going to be the priority as to the strategic and planning aspect of it. In other words, we're going to do this project and we have the amount of money to get it done today, let's get it done. Whatever we don't have the money for, we could say, well, that's how we're going to do when we bond it out, and when we do get the money, we focus -- because if it's one thing that we cannot do in the CRA is to start projects and then not complete them because we really end up losing the faith of the people that are affected, and those are the business and the people who live in the CRA and the residents, long-term residents that live there, so we have to be very careful, and the only thing that I ask of you, as the executive director here, is to make sure that we do have a good strategic and planning process in place to assure that those projects get done and they get done well. Mr. Rollason: I agree. Commissioner Sanchez: OK. 4 06-00919 CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("CRA") AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AN AGREEMENT, IN A FORM ACCEPTABLE TO GENERAL COUNSEL, WITH MIAMI-DADE COUNTY FOR THE DESIGN AND INSTALLATION OF UPGRADES TO WATER AND SEWER FACILITIES IN A PORTION OF THE OMNI REDEVELOPMENT AREA; DIRECTING THE EXECUTIVE DIRECTOR TO PRESENT THE AGREEMENT TO THE CRA BOARD OF COMMISSIONERS FOR APPROVAL; ALLOCATING FUNDS, IN AN AMOUNT NOT TO EXCEED $3,500,000, FROM OMNI TAX INCREMENT FUND, "CONSTRUCTION IN PROGRESS," ACCOUNT CODE NO. 686001.590320.6.860. 06-00919 Cover Memo.pdf Financial Form.pdf Back-up.pdf Legislation.pdf Motion by Commissioner Sanchez, seconded by Vice Chair Gonzalez, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 5 - Vice Chair Gonzalez, Commissioner Sanchez, Commissioner Regalado, Chair Spence -Jones and Commissioner Haskins City ofMiami Page 15 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 CRA-R-06-0020 Direction by Chair Spence Jones to the Executive Director of the CRA to commission a study for the Southeast Overtown/Park West CRA regarding water and sewer upgrades. Chair Spence -Jones: OK We're going to -- Vice Chair Gonzalez: All right. Chair Spence -Jones: -- go ahead and move on to item -- Frank Rollason (Executive Director, Community Redevelopment Agency): Item number 4. Chair Spence -Jones: -- number 4. Vice Chair Gonzalez: Number 4. Mr. Rollason: All right. Item number 4 is one of these strategic projects that we just talked about in the budget. This is a resolution authorizing me to negotiate a grant agreement with WASA (Water and Sewer Authority) or Water and Sewer Department now, not the authority, to do this project in the Omni CRA (Community Redevelopment Agency). There's a map in the -- in your packet that delineates pretty much what the final will be. We're still working on exactly what some of the piping that has to be replaced, but this project will be turnkey with WASA. We will enter into a grant agreement with them and they will take care of the design aspects, whether they do it in-house or they do it with their consultant, however they decide to do that, and they will do the construction with their own labor, and to do that, they're going to have to go before the County Commission to get approval to use their own labor, and in an effort to assist them in getting that approved, what I wanted to do tonight was to get the approval or the appropriation of the money, the 3.5; that way, when they go to the County Commission, they can say we have a resolution from the CRA Board that nails down this $3.5 million for us to go forward. Vice Chair Gonzalez: And the project is funding -- is funded? Mr. Rollason: And the project is funded. This one -- the $3.5 million has already been approved by this board. It's just now authorizing me to -- Commissioner Sanchez: And I love it -- Mr. Rollason: -- cut the deaL Commissioner Sanchez: -- when it has an account number right next to it. Mr. Rollason: Right. It's nailed down; this money is there. You get -- in every one of our projects that we give you, there's a financial information form, and it gives you that account number, and it tells you it's there, and I sign it and the financial officer signs it that that money is locked up. Commissioner Sanchez: So move the item. Vice Chair Gonzalez: I'll second the item, Madam Chair. Commissioner Regalado: Comment, question. Chair Spence -Jones: Sure. City of Miami Page 16 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 Commissioner Regalado: Frank, the waterlines -- Mr. Rollason: Yes, sir. Commissioner Regalado: -- in the map -- Mr. Rollason: Yes, sir. Commissioner Regalado: -- it's almost all over, right? Mr. Rollason: Well, it's within the Omni CRA, which is -- Commissioner Regalado: No, I understand. Mr. Rollason: -- the gold boundaries, and it is almost all over, but -- and I'm not a hundred percent convinced, even though they assure me they think they're going to get it all done for this amount of money, but you know when they get in the ground, they're going to find things that they hadn't figured on, but we're going to work from the west and we're going to go towards the east, and we're going to pick up some key projects that are already over on the west side that have to pull this out of their pocket to do, and we may run out of money when we get over to Northeast 2 or whatever, but as we get closer to the boulevard, I'm not as concerned about -- to be, you know, quite honest with you -- helping the person putting in a 40-story high-rise as I am with somebody that's trying to put together a small project or a restaurant, like in Eugene's case, that will help with the Performing Arts Center that looks at a $250,000 bill to get a waterline a couple of blocks down the street, so we're helping those people from the west, heading towards the east. Commissioner Regalado: I think that this is -- I was -- I would think the main purpose of the CRA. Mr. Rollason: It's -- Commissioner Sanchez: Yeah. Mr. Rollason: -- right up there. Commissioner Regalado: You know, waterlines, infrastructure, that's it, but one question. If you look at the map, you see plans to install waterlines all over 14th Street; are they going to break it again? Mr. Rollason: No. We're going to do that before we do 14th Street. In other words, being that I'm able to know that this project's going on and 14th Street's project is going on, you know, I'm not going to let it get to where the street gets paved and we come and tear up 14th Street. The County -- and there's a -- one of their engineers is here tonight; Howard Fallon is in the audience, if he wants to speak to it, but we're going to identf the priority projects, which will be a part of the grant agreement that we bring back, and once we get those projects up on 17th Street, where there's a project getting ready to come out of the ground, and the ones on 14th Street, which are waiting for this waterline to come for that restaurant, then we're going to continue to go easterly. If we see that we're getting ready to go -- and you notice on 14th Street, in particular, there's lines that come that dead-end against 14th Street, but there aren't any on 14th Street. Well, there's one missing on 14th Street, and that's the one that's down by Eugene's place that we're going to have to do, and those are the first two projects that would (UNINTELLIGIBLE) -- we would have done and get out of the way, but you're right. We've got a project over on 1st, I think it is, by the steel fortress, the (UNINTELLIGIBLE) building that's City of Miami Page 17 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 going to come out of the ground, and we're going to want to make sure that we get that waterline in for that project, so -- and the other thing you need to be aware of or should be aware of is that as businesses come and hook up to these lines, we get paid our portion of the money back. Commissioner Sanchez: Right. Mr. Rollason: The -- as WASA collects the money, it comes back to the CRA, so the problem with the businesses or the developers coming in is not the fact that they had to pay the money -- although, they'd love not to have to pay the money, don't get me wrong -- it's the time, so if the water's already there and they go to WASA and WASA says your piece is $125, 000, they pay and WASA cuts a check to the CRA, so we'll get our money back, except for the intersections; we'll eat those, and then any of those that may come to you that you decide you may want to waive, you know, give a credit to for -- it might be an affordable housing project, and you might say, well, we'll, you know, eat that water main. We won't make them pay for that. Commissioner Regalado: No. I -- Vice Chair Gonzalez: Frank. Commissioner Sanchez: This -- Commissioner Regalado: -- think that this is the best spent money that we can do infrastructure, but -- Commissioner Sanchez: But this resolution -- Commissioner Regalado: -- my question -- Commissioner Sanchez: -- all it does is allow you to negotiate, that's it -- Mr. Rollason: Right. It allows me to -- Commissioner Sanchez: -- and then it has to come back -- Mr. Rollason: -- negotiate the grant -- Commissioner Sanchez: -- to this Board. Mr. Rollason: -- and then I'll bring the grant -- Vice Chair Gonzalez: I have a question. Mr. Rollason: -- agreement back to -- so that you can approve it. Commissioner Haskins: And you'll -- Commissioner Regalado: Yeah. Commissioner Haskins: -- bring it back with the specific priorities, then, as well? Mr. Rollason: That's the -- and that's what we're working on with WASA now, to ident fy exactly what are the priorities to go forward with first, and that's going to be -- Commissioner Haskins: Because what -- City of Miami Page 18 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 Mr. Rollason: -- part of the package. Commissioner Haskins: -- in this snap, it just seemed like $3.5 million couldn't do all of this -- Commissioner Regalado: Of course not. Commissioner Haskins: -- and -- Mr. Rollason: Well -- Commissioner Haskins: -- that -- there's like just pockets of sewer upgrades. I wasn't sure -- Mr. Rollason: There's only like three small areas -- Commissioner Haskins: That's the only (UNINTELLIGIBLE) -- Mr. Rollason: -- in red. Commissioner Haskins: -- places that we need -- Mr. Rollason: That's what they -- Commissioner Haskins: -- in the whole area that need sewer upgrades? Mr. Rollason: That's right. Commissioner Haskins: That's great. Mr. Rollason: Omni's in good shape. Where we run into the sewer problem is in Southeast Overtown/Park West. Commissioner Spence -Jones: And that was going to be my question, but I want to yield to Commissioner Gonzalez, and then I have a question on it. Vice Chair Gonzalez: Frank, is this project, in any way, going to increase capacity of water -- Mr. Rollason: Yes. Vice Chair Gonzalez: -- in these areas? They're going to increase capacity? Mr. Rollason: Right. In other words, what we did was we met with WASA, and through the Planning Department, we brought -- and part of Miami 21 -- what is the future capacity or zoning allowable heights and types of construction that we can do in this area, and then we put the water in that would allow that to happen and without tearing the streets up, so in some places, we've got 12-inch mains in that maybe for ten years won't need a 12-inch main, but when they go to do it, you're not going to come and have to tear the street up again and put in a 12-inch main. There -- the water grid is being designed for what the future capacity is that we anticipate to happen. Vice Chair Gonzalez: All right. That's very important because with the amount of projects that are planned for this area, it's critical that not only that you have new lines, but you have -- increase the capacity of the lines -- Mr. Rollason: Yes. City of Miami Page 19 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 Vice Chair Gonzalez: -- because then whenever these developers are going to start their projects, they won't be able to do it because they won't have enough capacity, so -- you know, it happened to me in Allapattah with one project, and it cost the agency over $500,000 to increase the -- Mr. Rollason: Right. Vice Chair Gonzalez: -- water capacity to affordable housing projects, so they don't -- Chair Spence -Jones: Wow. Vice Chair Gonzalez: -- believe in affordable housing; they don't believe in anything. They only believe -- Mr. Rollason: No. Vice Chair Gonzalez: -- in cash. Mr. Rollason: That's right. Vice Chair Gonzalez: Miami -Dade Water and Sewer and County, they only believe in cash. They don't care if it is for the poor, for the needy -- Commissioner Sanchez: For the money. Vice Chair Gonzalez: -- it's for the money, OK, so -- Mr. Rollason: No, you're right, and that's why -- that's the whole idea of this upgrade is that some of these water mains in here are 6-inch, 4-inch, 8-inch, and the minimum we'll have in here is 12-inch, and there's -- Vice Chair Gonzalez: Twelve -inch. Mr. Rollason: -- going to be some 16's put in, so -- Vice Chair Gonzalez: Right. Chair Spence -Jones: Frank, I -- Vice Chair Gonzalez: OK. Chair Spence -Jones: Thank you, Commissioner Gonzalez. I have a quick question, and then we're going to move on to the next item. Regarding this item, I see most of the projects that are happening within that particular area, there are a lot of projects already moving, which is great, and I'm glad that we do finally have something happening in that area to upgrade, but one of the concerns I would like to address, or at least have you come back and bring to me, is I know that you did a study originally for that particular area on what the upgrades -- the upgrades that were needed. Has that same thing been done on the Overtown -- Southeast Overtown/Park West? Mr. Rollason: I think there was the initial -- Howard, bail me out here a little bit, man. I think we -- didn't we do some working -- Chair Spence -Jones: Bail him out, Howard. City of Miami Page 20 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 Mr. Rollason: -- didn't we look at the Southeast Overtown area and that's when we discovered there was so much more sewer work that had to be done? I'm talking south of 395 now in the Overtown area. Do you recall? Howard Fallon: No, Frank. I'm Howard Fallon from the Miami -Dade Water and Sewer Department. We have not studied that other area to this point. We just studied the CRA Omni area. Mr. Rollason: I know there was a map, when I went out there one day, that was up on the wall that we looked at, and it showed some huge sewer deficiencies in the Overtown area; maybe not a part of a study like this, but something that's already been done. Chair Spence -Jones: I -- and the only reason I'm mentioning this is, you know, while there (UNINTELLIGIBLE) -- we know we do have a bunch of lots that are vacant, and there's a lot of things that need to happen in the Overtown area. I would like to not have the projects start to move, like Commissioner Gonzalez had stated, and then we're playing catch-up. Vice Chair Gonzalez: Um -hum. Chair Spence -Jones: To me, I would like to know now, or at least if there isn't a physical study, to at least commission one to be done so that we can know what needs to happen on the Southeast Overtown/Park West side, too, so that we can begin to prepare, especially if we're talking about capital improvement dollars. I was assuming that this was already done. If we did it for one side of the CRA, we should have been doing both, so -- Mr. Rollason: Well, we only had the money on the Omni side; that was the problem. Chair Spence -Jones: For the study? Mr. Rollason: For the study, for exactly what we did here. I didn't have the money in looking at how we prioritize projects on the Southeast Overtown because what I was concerned about is exactly what Commissioner Sanchez said. I was going to do this study on the Overtown side, not have the money to go forward, and then there would be other projects that we could actually do in Overtown that were cheaper -- Chair Spence -Jones: Yeah -- Mr. Rollason: -- and then we -- Chair Spence -Jones: -- but I think -- Mr. Rollason: -- would have nothing done, except another study. Chair Spence -Jones: Mr. Rollason, I'm not disa -- but the issue is we need to know what we're going to -- Mr. Rollason: I agree. Chair Spence -Jones: -- so I would -- I mean, I appreciate Commissioner Sanchez has stated that, but for me, I would like to know what we're getting into, so I would like to at least have or at least make the suggestion that we do have a study done, so that at least we have a sense of what the needs are and it's not, you know -- Mr. Rollason: All right. City of Miami Page 21 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 Chair Spence -Jones: -- an imaginary -- Mr. Rollason: I agree. Chair Spence -Jones: -- number -- Mr. Rollason: I will -- Chair Spence -Jones: -- especially if we have WASA standing right here, and they're -- you know, you're saying that there might have been a study and he's saying that there's not, so I would like to at least know so that Southeast Overtown/Park West also has an understanding of what needs to happen there too. Mr. Rollason: I understand. Mr. Fallon: Yeah. We can go ahead with that study, to let you know. Mr. Rollason: See, Howard's going to help us. Chair Spence -Jones: We appreciate it. Commissioner Regalado: Hey, you -- Mr. Fallon: You're welcome. Commissioner Regalado: I mean, you should. You're going to make a lot of money out of us -- Unidentified Speaker: Well, that's a fact. Commissioner Regalado: -- with that study, so it's worth doing it. Vice Chair Gonzalez: You got to take a vote on 4 because (UNINTELLIGIBLE) -- a motion and a second. Commissioner Regalado: I move item 4. Vice Chair Gonzalez: No, it was already move and second. Commissioner Sanchez: It was already moved and second. Commissioner Haskins: It was already moved and second. Commissioner Regalado: Oh, OK. Vice Chair Gonzalez: We need to take a vote. Commissioner Sanchez: So -- Vice Chair Gonzalez: Call the question. Commissioner Sanchez: Call the question. Chair Spence -Jones: Call the question. Vice Chair Gonzalez: All in -- City of Miami Page 22 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 Chair Spence -Jones: All in favor -- Vice Chair Gonzalez: Say "aye." Chair Spence -Jones: -- say "aye." The Commission (Collectively): Aye. Vice Chair Gonzalez: All opposed have the same right. Chair Spence -Jones: All opposed have the same right. 5 06-00921 CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("CRA") AUTHORIZING A GRANT, IN AN AMOUNT NOT TO EXCEED $850,000, TO FILLING STATION LOFTS, LLC, FOR INFRASTRUCTURE IMPROVEMENTS IN THE PUBLIC RIGHT-OF-WAY OR UTILITY EASEMENTS, CONSISTING OF STORM WATER WELLS, SIDEWALKS, UTILITY CONNECTIONS, ELECTRIC DUCT BANKS, RELOCATION OF POWER POLES, REMOVAL OF PHONE LINES, AND STREET IMPROVEMENTS REQUIRED FOR CONSTRUCTION OF THE FILLING STATION LOFTS AT 1657 NORTH MIAMI AVENUE; AUTHORIZING THE EXECUTIVE DIRECTOR, AT HIS DISCRETION, TO DISBURSE THE GRANT ON A REIMBURSEMENT BASIS FOR COMPLETED AND APPROVED WORK, OR DIRECTLY TO CONTRACTORS UPON RECEIPT OF INVOICES AND SATISFACTORY DOCUMENTATION; FUNDS TO BE ALLOCATED FROM OMNI TAX INCREMENT FUND, "OTHER GRANT AND AIDS," ACCOUNT CODE NO. 686001.590320.6.940. Cover Memo.pdf Financial Form.pdf Back-up.pdf Legislation.pdf Motion by Vice Chair Gonzalez, seconded by Commissioner Sanchez, that this matter be ADOPTED WITH MODIFICATIONS PASSED by the following vote. Votes: Ayes: 5 - Vice Chair Gonzalez, Commissioner Sanchez, Commissioner Regalado, Chair Spence -Jones and Commissioner Haskins CRA-R-06-0021 Vice Chair Gonzalez: S. Frank Rollason (Executive Director, Community Redevelopment Agency): All right. Item number S. Item number 5 is really the pilot project of what we're talking about in the two budgets where you look and see the one point something in the Southeast Overtown/Park West and 3 million in Omni is to be coming in and putting infrastructure and improvements into the public right-of-way so that these projects can get off the ground, and here with us tonight is Mr. Henry Harper, who is -- just recently completed the Parc Lofts project on 17th Street, and he has a brief PowerPoint that, hopefully, is going to take place. We've had some technical problems here and -- City ofMiami Page 23 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 Vice Chair Gonzalez: Frank, is this an affordable housing project? Chair Spence -Jones: No. Vice Chair Gonzalez: It's not? Mr. Rollason: No, it's not an affordable hous -- Vice Chair Gonzalez: It's a market value project. Henry Harper: Market price. This presentation is the same one -- Mr. Rollason: You got -- Henry, you got to be with a mike. You can go up -- Mr. Harper: OK. Mr. Rollason: -- to the -- Chair Spence -Jones: It's over there. The mike is -- Mr. Rollason: -- you can take the portable mike off of there, and -- Mr. Harper: This presentation I'm going to show is the same one that's in your packages that I believe you got last week, so -- Mr. Rollason: They're not in the packet -- they're not in the agenda package. They're in the package that I dropped off at the agenda review -- Mr. Harper: OK -- Mr. Rollason: -- with the different Commissioners. Mr. Harper: -- because I see a couple on the desk. Mr. Rollason: Right, brought them with them. Mr. Harper: I see one, two, three there. Mr. Rollason: Right. I don't know, for whatever reason, we can't seem to make this work. The technology is -- Mr. Harper: If you don't mind, I'll just -- Mr. Rollason: -- beyond that of mortal man. Mr. Harper: Frank, I can go verbal with it -- Mr. Rollason: That's fine. Mr. Harper: -- and -- Chair Spence -Jones: I think we have packages, right? Mr. Harper: Exactly. They're the ones with the red and the black -- this one, Mr. Commissioner, and I believe I see three more there. City of Miami Page 24 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 Mr. Rollason: We only went through this presentation -- Mr. Harper: Excuse me. Mr. Rollason: -- I don't know how many times. It's Murphy's Law. Mr. Harper: No. This technology -- please excuse us. Frank has -- well, let me introduce myself. Henry Harper, from Intrepid Real Estate. Thank you, members of the Board, for having me here. Frank has warned me to keep it to six minutes or less, so if someone can tell me after five minutes that I'm getting close, that'd be greatly appreciated. Perhaps, instead of going through the whole presentation in excruciating detail, I'll try to summarize my experience with the project, my situation, and why I'm here today. You won't see my name, Henry Harper, or that of my company, Intrepid Real Estate, posted around Miami around any of the large high-rises, projects in Coral Gables, on Miami Beach, or anywhere on the water. In fact, the only projects that we are doing are projects -- and the only investments, in fact, that we are doing in Miami are projects in the Omni CRA (Community Redevelopment Agency). To give you, hopefully, a less than two -minute background on why I'm here was, about five years ago, when I was looking in Miami to make investments, I saw what was happening in the downtown of Miami, and I saw a tremendous, tremendous opportunity in and around the area of the Performing Arts Center. Having done quite a lot of travel and seeing cities like New York and Buenos Aires, in Chicago, Baltimore, Barcelona, and seeing what places like the Performing Arts Center can do and what urban infill development could do to cities, I thought there could be no better place than Miami and Miami's downtown to bring urban infill -- high -quality urban infill, and specifically, industrial lofts to Miami. About four years ago, we started a project called Parc Lofts, which is now a 72-unit industrial loft building in the northwest corner of the Omni CRA. I believe that that is considered probably one of the most blighted areas of the CRA. After going through sort of the period of you know, exuberance about the idea of transforming a neighborhood and delivering a product that no one had seen in South Florida, the realities of the project kind of set in. You know, it was extremely, extremely difficult to convince people, partners, people that live in the neighborhood, contractors and subcontractors to work on the project, banks to finance the project, and people, in general, to believe in the project. After about three years and a lot of sweat and a lot of toil, it was definitely worth it. We invested around $25 million into Parc Lofts, but it was by no means easy. After that, we said, you know what? After that experience, you know, I'm sure it can be easier. Let's continue and let's, you know, try to bring some critical mass to this neighborhood and give people something to believe in, and we began -- we bought the land, which was a former site of a gas station; did the environmental cleanup, which is the site of the Filling Station today. We said let's develop a project that will truly, truly bring the spotlight to this northwest corner of the Omni CRA. That project was called the Filling Station. Today, it is a project that has not broken ground. It is made up of retail and a very exciting retail street level mix, and 18-foot ceiling, industrial loft warehouse -style apartments. There are 73 of them in the building, of which the majority are presold. Between then and now, though, the economic realities of both Parc Lofts have come to light and that of the area, and that is basically that developing in and around that area of the Omni CRA doesn't pencil. There is a reason why Parc Lofts today stands alone, surrounded by, you know, a lot of the things that you can see in the presentation, and why there are high-rises and cranes all over the city, along the water and the downtown, and it's because it is very, very difficult to make a true economic profit in the area. The profit, I believe, ends up being tremendous for the people that get to enjoy the units or -- and/or the people that will benefit from the improvements in the future, but for private sector developers, it really doesn't make any sense, so -- at which point, I've had to turn around and say, OK, you know, should we continue? Should we move with the Filling Station and our sort of -- our strategy in Miami, or should we abandon it? To be honest with this Board, we have decided to, you know, absolutely continue to invest in Miami, to continue to invest in the CRA, and to move forward with the Filling Station and other projects, but at the same time, we -- because of the economic realities, we realize that City of Miami Page 25 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 we had to form a public and private partnership between the City, the CRA, as well as the private sector investors, like the local lenders that have been supporting our efforts. In the specific case of the Filling Station, our request is for a grant that pays for most of our infrastructure that is absolutely key to make the Filling Station work, and it actually is a requirement of the City. That includes sidewalks, swales, FP&L (Florida Power & Light) underground, water pipes, and transformers. For a project of our size, which is what I would call a small to medium project, it is an extremely, extremely expensive endeavor to put in a $150, 000 water main. For a $200 million or $500 million or $100 million high-rise, that same water main costs $150, 000 and is a very, very small percentage of their budget, so if the City of Miami and the population of Miami wants to see entrepreneurs bring small- and medium-sized projects to the neighborhood, the cost of those infrastructure projects, like the water project that Frank Rollason is talking about funding, make it possible for small- and medium -size entrepreneurs to come in and make an impact. If not, the only way to go in there and make the economics work is to approach it from a mega project perspective and do some -- you know, what I would call something called a, you know, Disney -style project, of which -- all of which always go -- are a lot wiser than us small entrepreneurs and go to the City and the State and the County and get all sorts of interesting packages and incentives, of which we have no idea how to even, you know, approach doing that, you know. One thing that also is important about our grant, I think, is that it's sustainable, meaning that it is low risk, high reward. The CRA is going to get every cent of that money back, probably within three to four years, and there is a multiplier effect by putting this building in the northwest corner of the Omni CRA. This is a very high -quality building with -- of which it has units that provide living for people at all different sorts of income levels. There's no affordable housing in the building, but there are units in -- you know, that go down to, let's say, 275,000 up to -- into the high numbers, but the fact that somebody is willing to go in there -- it's like an icebreaker ship breaking through the ice, you know, and take the hits from the hull is what allows other entrepreneurs to go into local banks and point to our projects and say those people were able to do it; we can do it as well, and there is no way, there is no way to come into those neighborhoods -- and I can tell you this. I've done it and I'm doing it every day -- to do it without the support of the City, and meaning more than verbal support, the financial support. When we go to City and we apply for our permits, we pay the same impact fees, we go through the same red tape, if not worse than the large developers that are building the high luxury product, of which makes no sense. Because I've become so enthralled, almost by accident, with this whole urban infill and redeveloping neighborhoods, I've started to travel around the US (United States) and see if I can do some of these transformed projects in other cities. The incentive packages that they offer you around the US to come into neighborhoods similar to the Omni CRA are tremendous, and in Miami, in the case of my first project, Parc Lofts, I had to duke it out with everyone else, just like everyone else, and in many times, taking a second and third place position when, in fact, I was doing something that I would think would be an enormous benefit to the downtown of Miami and to the future residents, and members of the Performing Arts Center and the people in the area that come to enjoy the music, giving that we're three or four blocks away. Mr. Rollason: Time. Mr. Harper: I'm out of time. Chair Spence -Jones: Thank you, Mr. Harper. I want to bring it back to at least the Board. Does anybody have any questions regarding this project? Vice Chair Gonzalez: Yeah. I would like to know what is the price range on these units? Mr. Harper: The units range -- they go down to about 800 square feet. They range from -- anywhere from a little under $300, 000 to $920, 000, and you can combine multiple units. Vice Chair Gonzalez: And how many units are you building? City of Miami Page 26 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 Mr. Harper: Seventy-three. Chair Spence -Jones: And I just have a quick question on the Parc Lofts ones that you've already done. How many units were in those? Mr. Harper: Seventy-two. Chair Spence -Jones: Seventy-two. Mr. Harper: Correct. Chair Spence -Jones: Are they all full now? Mr. Harper: We -- as the developer, I own only two units left -- Chair Spence -Jones: Oh. Mr. Harper: -- so, essentially, I've sold the majority of the units in the building, correct. Commissioner Sanchez: All right. Is there a motion on the item so we could discuss it, or --? Vice Chair Gonzalez: I'll move it -- Commissioner Sanchez: All right. Vice Chair Gonzalez: -- for discussion. Commissioner Sanchez: I'll second it for the purpose of discussion. Chair Spence -Jones: I just -- I had, actually, the City Attorney to step out for a minute because I need him to make sure that he verifies -- he's calling Maria Chiaro on another issue just to make sure that there's no questions around the item, so -- Mr. Rollason: Oh, I see. OK, I'm with you. Chair Spence -Jones: Yeah, please. Mr. Rollason: I'm with you. Commissioner Sanchez: All right. On the discussion, and you know, the CRA has a responsibility to work with the private sector to remove blight and slum in the area. I'm all for that, and one of the things that I like about this, that a lot of the public infrastructure improvements are sidewalks and stuff that is going to benefit you, but it's also going to benefit the revitalization of the area, but I'll tell you the thing that I like -- and I want to make it very clear because if somebody who reads this -- and well, it's a grant of $838, 000. We're not giving this money out. It says it here, "Every dollar of the grant should --" and I'd like to change the "should" to "shall" -- Chair Spence -Jones: Shall. Chairman Gonzalez: To "shall." Commissioner Sanchez: -- "be repaid to the CRA/City through tax revenue." We all know that, and I think that, just like you said, it's rewarding when you're able to build something and then it City of Miami Page 27 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 comes back in TIF money, and then we could use that money for other types of improvements, so I want to make it just very clear that this grant is not just giving you, a developer, who's selling units for 300,000 to $800, 000 price range, a unforgivable grant of $838, 000, so having put that on the record, I think that the CRA's responsibility and its goal is -- this is a perfect example of what we should be doing. Commissioner Regalado: OK. Question. Chair Spence -Jones: Sure. Commissioner Regalado. Commissioner Regalado: Why do you need the money? Mr. Harper: One of the misconceptions is if you have a $400,000 unit that somehow -- or a million dollar unit or 2 million -- that this is a profitable unit. That $400,000 unit might have cost you $600, 000 to build. Speaking frankly, our hard cost numbers for construction, when we first took the project out to bid, came in at the level of our sales, meaning that does not take into account the cost of the site, the soft cost, the financing or anything. In other words, we would have lost close to 30 percent of our money, so it wasn't even close to breaking even, so you know, we, since that time, have cobbled together all sorts of different contingency plans and ways to save money here and save money there, and this is one of the crucial key pieces for us to make it so that -- and speaking frankly, not so that I gain materially from this project because I'm probably not going to, but at least so I can pay back my lenders and offer some basic economic reward to my partners, of which I have one only, and at the end of the day, you know, that's what we're trying to do. I'm a young guy. I have my whole career ahead of me, and I'm not looking to give -- you know, make -- become a billionaire tomorrow. I'm looking to grow my reputation, and in Miami, to leave a high watermark and a high standard for what quality urban infill development should be and can be, you know, what the dream can be, and that's what I want to do, and that's what motivates me, and that's why I'm still here, and that's why I'm holding this microphone. Commissioner Regalado: And you will do the project anyways? Mr. Harper: My partner, as one of the conditions for him to stay on -- and he's a capital partner, if you want to call that -- he doesn't run the deal -- was that we would have a minimum of $800, 000 grant from the City, along with a number of other requirements, and you know, it's possible that we could do the project. It's also possible that we would have to cancel the project, you know, speaking frankly. Commissioner Regalado: Thank you. Vice Chair Gonzalez: OK, so he says that the project depends on this grant and other conditions. When will this grant trigger, at the end of the project? Because we don't want to be investing -- Mr. Rollason: No, no, you're right. Vice Chair Gonzalez: -- $800, 000 in a project that then won't -- Mr. Rollason: Goes up. Vice Chair Gonzalez: -- materialize -- Mr. Rollason: All right. Vice Chair Gonzalez: -- OK -- City of Miami Page 28 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 Mr. Rollason: First of all -- Commissioner Sanchez: So it'll be subject to -- Mr. Rollason: -- he does -- Vice Chair Gonzalez: -- so we got to be -- Mr. Rollason: -- not receive -- Vice Chair Gonzalez: -- you got to be subject to some -- Mr. Rollason: Right. He does -- Vice Chair Gonzalez: -- subject to -- Mr. Rollason: -- not receive the money. Commissioner Sanchez: OK. Mr. Rollason: The way it -- Vice Chair Gonzalez: All right. Mr. Rollason: -- works is I either pay the vendors directly as this infrastructure goes in, or he pays them and gives me a receipt, cancelled check, so that we ascertain that this has been done; Florida Power & Light has signed off -- Vice Chair Gonzalez: Yeah, but -- Mr. Rollason: -- that these items are -- Vice Chair Gonzalez: -- I -- Mr. Rollason: -- because they're here -- but, Commissioner -- Vice Chair Gonzalez: Yeah, but, if -- Mr. Rollason: -- they're here -- Vice Chair Gonzalez: -- you allow me. Mr. Rollason: Oh, go ahead. Vice Chair Gonzalez: If you allow me. I think this -- that needs to be condition to the construction -- start of the construction. You know, once we see something going on relative to construction begin, you know. We need to see foundations being built. We need to see some -- at least that's the only way that I'm going to vote on this item -- Mr. Rollason: Well, some of the -- Vice Chair Gonzalez: -- that I see that there is some actual construction happening on the site before we invest a penny on it. City of Miami Page 29 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 Mr. Rollason: Well, Henry, I mean, you can speak to it when these things come and which order. I know some of them are very early on before you start to do some of the things, and some of them can come a little bit later, but for instance -- Vice Chair Gonzalez: Well -- Mr. Rollason: -- like the temporary power pole relocations, for that 36,000. Those poles need to be moved off -site, across the street, around the block, for OSHA (Occupational Safety and Health Administration) to even allow them to start work on the site. Vice Chair Gonzalez: Well, Frank -- but let me tell you, if you're going to go on a project that is going to cost -- I don't know, $20 million, you mentioned? Mr. Harper: The whole project is going to end up costing around $26 million. Vice Chair Gonzalez: -- $26 million, and you don't have $100, 000 to pay for the removal of a light pole, then you have a serious problem. Commissioner Sanchez: You shouldn't be doing the project. Vice Chair Gonzalez: Then you have a serious problem. Then you can't afford to do a $26 million project when you don't have $100, 000 to remove a pole, and let me tell you. I've been involved in development. I've been constructing apartments for quite some time, and I know what's involved. I know what's involved on increasing capacity of water, on removing poles that are in your way, you know, so I mean -- Mr. Harper: We -- Vice Chair Gonzalez: -- you know, let's not kid each other here. Mr. Harper: Yeah. One of the things that I mentioned was that the grant is low risk, high reward. If you -- if the grant monies come in, we're absolutely building the building, and we are fronting the money. We're -- Frank is refunding us, so -- Vice Chair Gonzalez: All right. Mr. Harper: -- you know, the building's going to go up. We'll have -- Ocean Bank is financing the project. You don't have to worry about -- you can make that as a condition. We are fronting the money anyway. I just need to show my partner that this -- Vice Chair Gonzalez: Listen, I don't -- Mr. Harper: -- money will be refunded. Vice Chair Gonzalez: -- have a problem -- at least my vote don't have a problem on issuing the grant, you know -- not even you paying for the expense and then getting reimbursed. I will be willing to vote to give you a grant, but I need to see a construction starting on the site before putting a penny into that construction. Commissioner Haskins: Would it --? Vice Chair Gonzalez: That's what I'm talking about. Commissioner Haskins: I think Commissioner Gonzalez has an excellent point with this. It doesn't kill your project, by any stretch of the imagination, if we said we will do this on a City of Miami Page 30 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 reimbursement basis, but not until the project is 50 percent complete. Mr. Harper: I mean, we could do the 50 percent, if it's -- that's no problem, and I -- if I was sitting in Mr. -- Commissioner Gonzalez's position, I would say the same thing he's saying because, you know, it's important that the things that the CRA uses its limited resources are sure bets -- Commissioner Sanchez: So we're -- Mr. Harper: -- so I agree. Commissioner Sanchez: -- all on the same sheet of music on the issue. All right, and -- Commissioner Regalado: OK. Well, one -- Commissioner Sanchez: -- the maker -- Mr. Rollason: So we can -- Commissioner Sanchez: -- of the -- Mr. Rollason: -- mod fy it. Chair Spence -Jones: I -- Commissioner Regalado: Madam Chairman. Chair Spence -Jones: Yes. Commissioner Regalado: OK. Frank just mentioned that you're going to -- first, what you have to do first is move the light poles across the street. Mr. Rollason: Right. In other words, there's some poles that are too close and not high enough for where you have to do work, and OSHA and Florida Power & Light have a requirement that those poles -- Chair Spence -Jones: But he said he -- Mr. Rollason: -- have to be -- Chair Spence -Jones: -- would handle that. Mr. Rollason: No, that's right, but he's saying -- Commissioner Regalado: No, no, no, no -- Mr. Rollason: -- is that first. Commissioner Regalado: -- no, but I'm talking beyond this project and in behalf of the CRA. How much does it cost to move the pole and how much does it cost to have underground cables? Mr. Rollason: Well, the underground is in this project. What's happening is is that the 36,000 you see in item number 4 is -- Commissioner Regalado: Right. City of Miami Page 31 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 Mr. Rollason: -- the temporary relocation. Now you see the electric duct bank by Florida Power & Light for $245,000. That power is being put underneath with transformers that will allow the next person coming down past Henry's project to hook in, and we start to get this power -- the poles off of the ground -- Commissioner Regalado: So -- Mr. Rollason: -- off the sidewalks. Commissioner Regalado: -- the underground cables are included -- Mr. Rollason: Right. Commissioner Regalado: -- in this project. Mr. Harper: Yes, sir. Commissioner Regalado: OK. Chair Spence -Jones: OK. We're going to go ahead and move on on this item, but before that, I wanted Mr. City Attorney to make sure that we don't have any issues of conflicts or anything I want to just make sure I don't have any issues later on. Jim Villacorta (Assistant General Counsel, CRA): Right. The Commissioner was concerned that Mr. Harper serves on an advisory committee to the CRA regarding the potential use of bond funds, and whether that might create a conflict, but there is no conflict, since he's not a member of this agency or board -- Chair Spence -Jones: OK Mr. Villacorta: -- in your giving him a grant. Chair Spence -Jones: All right. I just wanted to make sure that Henry was OK, and I was OK, and we were all OK -- Vice Chair Gonzalez: Right. Chair Spence -Jones: -- and I -- just real fast, before we close out on the issue -- I lost my thought. That's OK. Do you have any issue? Commissioner Sanchez: As amended. Mr. Rollason: As amended, with the 50 -- Commissioner Sanchez: As amended. Mr. Rollason: -- percent threshold -- Commissioner Sanchez: Yes. Mr. Rollason: -- for the payments to go out. Commissioner Sanchez: Call the question. City of Miami Page 32 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 Commissioner Haskins: (UNINTELLIGIBLE) we have a vote. Chair Spence -Jones: Call the question. Commissioner Sanchez: All in favor. Vice Chair Gonzalez: All in favor. Chair Spence -Jones: All in favor. The Commission (Collectively): Aye. Chair Spence -Jones: All opposed. OK, it carries. Let's go. 6 06-00914 CRA RESOLUTION A JOINT RESOLUTION OF THE BOARDS OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST AND OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCIES ("CRAS") DIRECTING THE EXECUTIVE DIRECTOR TO REQUEST THAT THE CITY OF MIAMI CITY MANAGER DIRECT CITY STAFF TO PREPARE AN ORDINANCE AMENDING CHAPTER 4/SECTION 4-11 OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, ENTITLED "ALCOHOLIC BEVERAGES/EXCEPTIONS TO DISTANCE REQUIREMENTS," TO: (1) MODIFY THE BOUNDARIES OF THE PARK WEST, OVERTOWN, AND MEDIA ENTERTAINMENT SPECIALTY DISTRICTS; AND (2) EXPAND THE PERMISSIBLE USES WITHIN THE PARK WEST ENTERTAINMENT SPECIALTY DISTRICT TO ALLOW FOR A LIMITED NUMBER OF ADULT ENTERTAINMENT ESTABLISHMENTS; AND REQUEST TO THAT THE ORDINANCE BE PLACED BEFORE THE MIAMI CITY COMMISSION FOR ITS CONSIDERATION. Cover Memo.pdf Back-up.pdf Legislation.pdf DEFERRED Commissioner Sanchez: Aren't there any items that are going to be pulled? Chair Spence -Jones: Yeah. There's one item that's going to be pulled, but 1'll guess we'll pull -- you want to pull it after that, Frank, or you going to go ahead and pull it now? Frank Rollason (Executive Director, Community Redevelopment Agency): I mean, I -- you were going to look to defer them from the Chair or --? Chair Spence -Jones: Well, I actually -- that's what I just mentioned to you. I said, when we first started, that wanted to defer -- Mr. Rollason: Item 6. Chair Spence -Jones: -- number 6. Yeah, item 6, so item number 6 will not -- we will not be addressing that today. Commissioner Sanchez: All right. City ofMiami Page 33 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 7 06-00944 CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY RATIFYING THE EXECUTIVE DIRECTOR'S ISSUANCE OF GRANTS UNDER THE OVERTOWN SMALL BUSINESS GRANT INITIATIVE TO: CHINA TEE RESTAURANT, INC., 1300 NORTHWEST 3RD AVENUE, IN THE AMOUNT OF $21,937; IBO'S MARKET, INC., 1034 NORTHWEST 2ND AVENUE, IN THE AMOUNT OF $25,000; MS. CREOLA WILLIAMS D/B/A JUST RIGHT BEAUTY SALON, 1131 NORTHWEST 3RD AVENUE, IN THE AMOUNT OF $3,960.95; AND MS. CORINE BRADLEY D/B/A BRADLEY'S GROCERY, 1141 NORTHWEST 2ND AVENUE, IN THE AMOUNT OF $11,838.53; FUNDS, IN AN AGGREGATE AMOUNT NOT TO EXCEED $62,736.48, TO BE ALLOCATED FROM SEOPW TAX INCREMENT FUND, "OTHER GRANTS AND AIDS," ACCOUNT CODE NO. 689001.550108.6.940. Cover Memo.pdf Back-up.pdf Legislation.pdf Motion by Commissioner Sanchez, seconded by Vice Chair Gonzalez, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 5 - Vice Chair Gonzalez, Commissioner Sanchez, Commissioner Regalado, Chair Spence -Jones and Commissioner Haskins CRA-R-06-0022 Note for the Record: Chair Spence -Jones requested that the businesses receiving monies be provided the necessary support and training, including participation in workshops and developing business plans. Chair Spence -Jones: The next one is item number -- item 6, we deferred. We're going to go to item number 7. Frank Rollason (Executive Director, Community Redevelopment Agency): Item number 7 is a ratification of action that I've already taken. If you recall, this is the Overtown Small Business -- Overtown 3rd Avenue Corridor Small Business Grant. Commissioner Sanchez: So move. Commissioner Haskins: So move. Vice Chair Gonzalez: Second. Chair Spence -Jones: Great. I just want to put something on the record. I have a little, small discussion on it. Please, Frank, one of the things I want to make sure that, as we move ahead regarding all of these grants that we're giving out to these businesses -- all of this stuff kind of took place before I got here. I want to make sure, as we move ahead in the area of providing these grants, I don't want us to just shell out money to these businesses without providing them the necessary support or training. Commissioner Sanchez: Amen. Chair Spence -Jones: Every one of the other businesses that have gotten support for the -- once I got on board, part of their responsibility is to, you know, participate in workshops and trainings City ofMiami Page 34 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 with some of the local colleges, and also to make sure they put business plans together. I just don't want to fund them now and then -- Mr. Rollason: I understand. Chair Spence -Jones: -- six months later, I'm dealing with the same situation. I want to -- Mr. Rollason: (UNINTELLIGIBLE). Chair Spence -Jones: -- put it on the record that they need -- Mr. Rollason: All right. Chair Spence -Jones: -- to participate in those workshops and they need to make sure that they have a business plan in place. Mr. Rollason: We can pick that up in the next go -round of the additional money that we're funding for '07 with the 500, 000. We can take a portion of that because we'll have to, you know, bring a consultant or somebody on board to help them do that. Chair Spence -Jones: Yeah. I just think it's important. Mr. Rollason: OK. Chair Spence -Jones: OK, so we can move on to item number -- Vice Chair Gonzalez: All in favor, say "aye." Mr. Rollason: No. We got to take -- Chair Spence -Jones: All in favor. The Commission (Collectively): Aye. Chair Spence -Jones: All opposed. 8 06-01032 CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING A GRANT, IN AN AMOUNT NOT TO EXCEED $10,000, TO HEATHER MANAGEMENT CORPORATION D/B/A MANHATTAN CAFE & MARKET, 251 NORTHEAST 14TH STREET, MIAMI, FLORIDA; FUNDS TO BE ALLOCATED FROM OMNI TAX INCREMENT FUND, "OTHER GRANT AND AIDS," ACCOUNT CODE NO. 686001.590320.6.940. Cover Memo.pdf Financial Form.pdf Back-up.pdf Legislation.pdf Motion by Vice Chair Gonzalez, seconded by Commissioner Sanchez, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 5 - Vice Chair Gonzalez, Commissioner Sanchez, Commissioner Regalado, Chair Spence -Jones and Commissioner Haskins City ofMiami Page 35 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 C RA-R-06-0023 Vice Chair Gonzalez: I'll move Item 8. Chair Spence -Jones: OK. I think that is it on all the items, is that correct? Frank Rollason (Executive Director, Community Redevelopment Agency): Item 8 is the last item, and it deals with a -- Commissioner Sanchez: We got to vote on it. Mr. Rollason: -- financial grant to -- Vice Chair Gonzalez: All right. Mr. Rollason: -- assist the Manhattan -- Vice Chair Gonzalez: I'll move it and -- Mr. Rollason: -- Cafe. Vice Chair Gonzalez: -- we need a second. Commissioner Sanchez: I second it. Vice Chair Gonzalez: And we -- Chair Spence -Jones: OK Vice Chair Gonzalez: -- have a second. Chair Spence -Jones: Commissioner Sanchez seconds it. Vice Chair Gonzalez: All in favor, say "aye." Chair Spence -Jones: All in favor, say "aye." The Commission (Collectively): Aye. Chair Spence -Jones: All opposed. NON -AGENDA ITEMS NA.1 06-01187 CRA DISCUSSION Swearing in of Commissioner Linda Haskins as a member of the Southeast Overtown/Park West and Omni Community Redevelopment Agencies by Assistant Clerk of the Board Pamela E. Burns. DISCUSSED Chair Spence -Jones: OK The meeting has officially started, but I'd like to also welcome to the dais -- or to the meeting -- a new Commissioner that we have for those that don't know, so if we can at least officially welcome Commissioner Linda Haskins to the dais. Let's give her a hand. Applause. City of Miami Page 36 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 Chair Spence -Jones: OK There are a couple of items -- at least one of the items, Frank, that we want to defer off of -- Frank Rollason (Executive Director, Community Redevelopment Agency): But before we go -- Chair Spence -Jones: Sure. Mr. Rollason: -- forward, I think the new board member has to be sworn in, and the -- Chair Spence -Jones: Oh. Mr. Rollason: -- Clerk's Office will take care of that. Chair Spence -Jones: OK, no problem. Note for the Record: Commissioner Linda M. Haskins was sworn in as a member of the Southeast Overtown/Park West and Omni Community Redevelopment Agencies by Assistant Clerk of the Board Pamela E. Burns. NA.2 06-01186 CRA DISCUSSION Discussion regarding roof repairs to Greater Bethel AME Church as a result of last year's damage caused by Hurricane Wilma. MOTION A motion was made by Commissioner Sanchez, seconded by Commissioner Haskins, and was passed unanimously, to direct the Executive Director of the CRA to expeditiously meet with Don Patterson, president/CEO of BAME Development Corporation of South Florida, to address concerns regarding the permitting process and the financial aspect of repairing the roof of Greater Bethel AME Church on an emergency basis, in an amount not to exceed $100, 000, to be brought back to the CRA Board for ratification. Chair Spence -Jones: OK. I just have one quick -- before we close out, I do want to provide the public with an opportunity to at least make a statement. I believe BAME (Bethel African Methodist Episcopal) is here. I just want to address this issue, if you don't mind, my colleagues; just give me a moment. This is a very important issue. It's the oldest black church that we do have in Overtown it's having some real issues from Wilma. Don Patterson: Yeah, Wilma again. Good evening, Commissioners, Frank Rollason. My name's Don Patterson. I'm president/CEO (Chief Executive Officer) of BAME Development Corporation of South Florida. As the Commissioner mentioned, BAME is, in fact, the oldest black church in Miami, celebrating 110 years just this past March. I'm here before you as an emergency. As you all know, this past weekend, the South Florida region -- or the southeastern Florida region was inundated with a tremendous amount of rain. This weekend we found ourselves in Greater Bethel AME (African Methodist Episcopal) shuffling buckets from one end of the church to the other. We have been dealing with this crisis since last year, as a result of Hurricane Wilma, and just this morning, I was approached by the pastor and asked to determine if there are any opportunities for assistance via the City of Miami, and particularly, the CRA, to assist in matters of repair and restoration of the church's roof. I'm here before you today to ask that you, in fact, consider assisting this historic black church. Chair Spence -Jones: Thank you, Don. Only thing I would like to do -- I'm going to wait until Frank finishes. Again, this is one of the projects -- and we actually had it on the capital improvements list already as one of the historic sites. Yes, Commissioner. City of Miami Page 37 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 Commissioner Regalado: Madam Chairman. Chair Spence -Jones: Sure. Commissioner Regalado: On our way here, we went by Overtown and passed through the church. It's a sad sight to see the blue roof still, seven or eight months after Wilma, but the worst part is the rain -- Chair Spence -Jones: Yeah. Commissioner Regalado: -- and what the rains are doing to the blue roof it's -- blue roof are caving in and more damage is being done, and the worst is that we just had -- this storm would have been a tropical storm had not been disorganized, so we're in for a season that is not good. Even if you drive over I-95, you can see -- Mr. Patterson: Absolutely. Commissioner Regalado: -- the blue roof -- Mr. Patterson: Blue roof. Commissioner Regalado: -- of the church, and churches not only are for praying on Sundays. Churches are for the community. Mr. Patterson: Absolutely. Commissioner Regalado: Churches go out and do outreach. Churches could be used for shelters during a hurricane, and I think it's part of the responsibility of this body to help you, and the reason I think that is because if we director -- direct you to FEMA (Federal Emergency Management Agency) or, you know, your insurance and the roofers would not be able to do it, not only, Madam Chairman, I think that the CRA should get involved, but the CRA should get involved in the permitting process because if you don't do this in the next 30 to 45 day -- Mr. Patterson: Absolutely. Commissioner Regalado: -- then you will have no church -- Mr. Patterson: You're right. Commissioner Regalado: -- and so, you know, it -- you work house -by -house, block -by -block, but this is a major issue that I think you did the right thing in bringing this because government not only have responsibility of redevelopment and all that, but specific issues and icons of the community, signature places, and this is one of those, and I really support any help that we can give this church. Chair Spence -Jones: OK. I just want -- thank you, Commissioner Regalado. I do know that everyone's ready to go, but I do want to just direct Frank Rollason to -- Commissioner Sanchez: Hallelujah. Chair Spence -Jones: -- get with the -- BAME, Mr. Patterson, to see what we need to work out. Mr. Patterson: Appreciate that -- Chair Spence -Jones: They did have -- City of Miami Page 38 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 Mr. Patterson: -- Commissioner. Chair Spence -Jones: -- insurance, but it was not enough assurance -- insurance -- Commissioner Sanchez: But -- Chair Spence -Jones: -- to cover the issue -- Mr. Patterson: Right. Chair Spence -Jones: -- and it is really, really bad in there, so if we -- Commissioner Sanchez: Let's do it officially. Commissioner Haskins: Yeah, I make a motion. Commissioner Sanchez: Let's have a motion, and I will present the motion -- Chair Spence -Jones: OK Commissioner Sanchez: -- directing the executive director to expeditiously meet with you, sir -- Mr. Patterson: Appreciate it, San -- Commissioner Sanchez: -- to try to -- Mr. Patterson: -- Commissioner Sanchez. Commissioner Sanchez: -- address the concern that you have -- Mr. Patterson: Absolutely. Commissioner Sanchez: -- through the permitting process and through the financial aspect to bring back to this legislative body for our approval to assist you because when the Lord calls, CRA must cometh. Chair Spence -Jones: Now, my -- Reverend Sanchez, can I just say this to you real fast? Commissioner Sanchez: Can I hear a "Amen?" Audience (Collectively): Amen. Mr. Patterson: Amen. Commissioner Haskins: I will second that. Chair Spence -Jones: OK Well -- Commissioner Sanchez: Thank you very much. Chair Spence -Jones: -- wait, wait. The only issue is we cannot wait until the other Commission meeting, Frank -- Commissioner Regalado: Right. City of Miami Page 39 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 Chair Spence -Jones: -- because by then, they would have lost everything on the inside of the church -- Commissioner Regalado: We need -- Commissioner Haskins: I would propose -- Chair Spence -Jones: -- Reverend Sanchez. Commissioner Haskins: -- an amendment to do it on an emergency basis and bring it back to the CRA Board for ratification -- Vice Chair Gonzalez: Exactly. Commissioner Haskins: -- next time. Commissioner Sanchez: Maker of the motion accepts. Mr. Rollason: With -- Commissioner Regalado: No, no, but he needs to -- Mr. Rollason: -- an amount? Commissioner Regalado: -- know -- Chair Spence -Jones: Yeah. Commissioner Regalado: -- some figures. Mr. Rollason: How much? Commissioner Regalado: He needs to know how much, and how much, you know, the -- your coverage, the insurance coverage, and whatever. You have the deductible and you have some, probably, issues. I would -- having been on the Homeless Trust in the County and for a regular 1,000 square foot home, it would cost $17,000, I think that you need at least the support of 50 to $70, 000 from the CRA. I don't know if that is enough or if there is much. I don't know how much the insurance cover. Mr. Patterson: Fifty thousand was roughly the deductible. I'm a little uncomfortable giving a number at this time. Chair Spence -Jones: Can we just put a cap on it, and then at that point, at least get you started? Because one of the things I don't want to have happen -- at least, we need to get somebody out there handling it -- Mr. Patterson: Sure. Chair Spence -Jones: -- so can we -- can I get support from my colleagues that we maybe put a - - just a cap on it of a hundred at this point, and then you come back to ratify it at that point? Mr. Patterson: Once we get -- Mr. Rollason: Sure. City of Miami Page 40 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 Mr. Patterson: -- a better idea of what the estimates are. Vice Chair Gonzalez: May I ask -- Chair Spence -Jones: Sure. Vice Chair Gonzalez: -- a question? Mr. Patterson: Sure. Vice Chair Gonzalez: What kind of a roof are we talking about? It's the tile roof or --? Commissioner Sanchez: No, shingle roof. Mr. Patterson: It's a shingle roof right now. Vice Chair Gonzalez: It's a shingle roof. Mr. Patterson: Yes. Vice Chair Gonzalez: OK. What we need to do is to approve a certain amount of money so they can at least do the first layer of paper on the roof and seal it with the hot coat, and -- Mr. Patterson: There you go. Vice Chair Gonzalez: -- then if we need to, you know, put in more money to complete the permitting and the balance of the roof then we'll do it -- Mr. Rollason: Right. You're talking about -- Vice Chair Gonzalez: -- but at least cover -- Mr. Rollason: -- getting it dried in. Vice Chair Gonzalez: -- the roof. Mr. Rollason: Getting it -- Chair Spence -Jones: Yes. Mr. Rollason: -- dried in. Vice Chair Gonzalez: Exactly Mr. Rollason: The issue's going to be, as they go to tear the dry in and tear off what's there, I don't know what we're going to find underneath with the extent of the damage that has to be replaced, but I think if we have some kind of a cap -- and the idea is to -- Chair Spence -Jones: Let's do a hundred now. Mr. Patterson: Yeah, I think -- Mr. Rollason: -- dry it in. City of Miami Page 41 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 Mr. Patterson: Yeah. Mr. Rollason: If I can't finish it for the hundred, is to get it dried in -- Commissioner Regalado: Well, but they got -- Mr. Rollason: -- and then come back. Commissioner Regalado: -- insurance, too. They got some -- Mr. Rollason: Right, but I mean -- Commissioner Regalado: -- kind of insurance. Mr. Rollason: -- I don't know what these -- I mean, this is the first I'm hearing what numbers -- Vice Chair Gonzalez: I'll -- if the maker of the motion accept my amendment, I will move for $50, 000. Commissioner Regalado: No, $100, 000. Vice Chair Gonzalez: A hundred thousand? Commissioner Sanchez: I would be -- Chair Spence -Jones: Yes. Commissioner Regalado: A hundred thousand dollars. Vice Chair Gonzalez: OK, $100, 000. Commissioner Sanchez: As the maker of the motion, I would feel comfortable with $100,000, and then, Frank, you could always come back to us if there's -- Vice Chair Gonzalez: Exactly. Commissioner Sanchez: -- as on a base need -- Mr. Rollason: I agree. Commissioner Sanchez: All right, so -- Vice Chair Gonzalez: At least they can tear the old roof -- Mr. Rollason: No, no, you're right. Vice Chair Gonzalez: -- and you know, and put -- Mr. Rollason: I would hope we -- Vice Chair Gonzalez: -- new paper on it. Mr. Rollason: -- could get a lot done for -- Vice Chair Gonzalez: Exactly. City of Miami Page 42 Printed on 7/6/2006 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes June 26, 2006 Mr. Rollason: -- $100,000. Chair Spence -Jones: All in favor. The Commission (Collectively): Aye. Chair Spence -Jones: All opposed. Commissioner Sanchez: Congratulations. Vice Chair Gonzalez: Motion to adjourn. Chair Spence -Jones: Motion to adjourn. Mr. Patterson: Thank you, Commissioners. God bless. City of Miami Page 43 Printed on 7/6/2006