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HomeMy WebLinkAboutSEOPW OMNI CRA 2008-05-19 MinutesCity of Miami City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Meeting Minutes Monday, May 19, 2008 5:00 PM The Adrienne Arsht Center for The Performing Arts In the Peacock Foundation, Inc. Studio 1300 Biscayne Blvd. Miami, Florida 33132 SEOPW and OMNI Community Redevelopment Agencies Michelle Spence -Jones, Chair Marc David Sarnoff, Vice Chair Angel Gonzalez, 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 May 19, 2008 Minutes are transcribed verbatim. Periodically, agenda items are revisited during a meeting. "[Later...]" refers to discussions that were interrupted and later continued. Present: Commissioner Gonzalez, Commissioner Regalado, Chair Spence -Jones and Vice Chair Sarnoff Absent: Commissioner Sanchez On the 19th day of May 2008, 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 Adrienne Arsht Center for the Performing Arts, Miami, Florida. The meeting was called to order by Chair Michelle Spence -Jones at 5: 02 p.m. and was adjourned at 6: 55 p.m. ALSO PRESENT: James H. Villacorta, Interim Executive Director, CRA Clarence Woods, Assistant Executive Director, CRA Gail A. Dotson, Assistant General Counsel, CRA William R. Bloom, Special Counsel, CRA Pedro G. Hernandez, City Manager, City of Miami Priscilla A. Thompson, Clerk of the Board ORDER OF THE DAY Chair Spence -Jones: Okay. I am going to try to get the meeting moving, and there's a few things that I want to remove off today's agenda, if you don't mind. So if we -- for discussion item number 8, Commissioner Sanchez -- I know Trinity is here, but Commissioner Sanchez has graciously asked for us to wait 'til he attends this meeting, so we're moving that so that we will not get into that today -- tonight. Is --? We're continuing that. We have -- is the Downtown Miami LLC (Limited Liability Company) Group here? Okay. We must hear them. This is like the fourth time that we've -- Commissioner Sarnoff -- we kind -- they wanted to wait 'til you got here, so we will deal with that today. And the only thing I want to make an adjustment on is the Hospitality Institute, which is Mrs. Grimes is here now from the Hospitality Institute and also the partner in the Doubletree, which has been sponsoring and supporting this whole initiative. She's asked that she at least -- we at least hear her presentation first because she has a award that she's accepting on behalf of all of the stuff that's happening, so -- with the Hospitality Institute. FINANCIALS 1. 08-00547 CRA REPORT FINANCIAL SUMMARY THROUGH MONTH ENDING APRIL 30, 2008. Financial Summary.pdf DISCUSSED Direction by Vice Chair Sarnoff to the Interim Executive Director to provide to the Board the name of the utility vendor that conducted survey work on the 3rd Avenue street project and who is to be held accountable for the placement of the fresh water line. Direction by Chair Spence -Jones to the Interim Executive Director to ensure that a staff member from the Capital Improvements Program (CIP) Department is present at the next Community Redevelopment Agency (CRA) meeting to answer CIP-related questions. Direction by Commissioner Gonzalez to the Interim Executive Director to provide his office with a report regarding the amount of funds in the change orders that were issued as a result of the mistake made on water line in the survey; further, to include the name of the company that City of Miami Page 2 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 completed the survey and the engineering firm that was used on the project. Direction by Chair Spence -Jones to the Interim Executive Director to brief the Commissioners on all outstanding issues on projects during agenda briefings so that the CRA Board is aware of upcoming changes to projects. Chair Spence -Jones: Good evening. I'd like to officially call the meeting for the CRA (Community Redevelopment Agency) for Monday, May 19, at the Performing Arts Center -- I'd like to officially welcome everyone to the Performing Arts Center for the first time. We're going to go ahead and get started with the meeting. In about less than an hour, I'm going to turn, actually, the meeting over to our -- Commissioner -- Vice Chair Sarnoff.- Vice Chair. Chair Spence -Jones: -- Vice Chair Sarnoff to continue the meeting. So we're going to go ahead and get started with the first item being the financial report. Miguel Valentin: Good evening, Commissioners. My name is Miguel Valentin. I am the CRA financial officer. I'm going to present the combined statement of financial position as of April 30, 2008. As item number one cash unrestricted under Southeast Overtown/Park West, we're disclosing the amount of 115, 000, and under Omni, we are disclosing the amount of $493, 060. Then pertaining to the rehabilitation and construction of low-income affordable workforce housing project in Overtown, as of today, we have budgeted the amount of 4, 519, 693. Of this amount, 2,386,269 has been encumbered, and $1, 047,565 have -- has been expended, leaving an available balance of 2,133,424. As far as the reportable conditions are concerned, there is nothing to report to the Board. And I will be more than happy to answer any questions that you might have. Chair Spence -Jones: Any questions from --? Commissioner Gonzalez: I do have a question. You said there were $4 million for affordable housing? Mr. Valentin: Yes, sir. Chair Spence -Jones: For rehab. Commissioner Gonzalez: And you said that a million has been spent? Mr. Valentin: Yes, sir. Commissioner Gonzalez: On what? Mr. Valentin: One -- nine hundred thousand were expended in the purchase of the land pertaining to the Jazz Village -- Commissioner Gonzalez: Okay. Mr. Valentin: -- and also, we have expended 48,000 for a painting that took place at the St. John -- Chair Spence -Jones: He's on the rehab projects. Commissioner Gonzalez: All right. City of Miami Page 3 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 Mr. Valentin: Rehab projects -- and there were some minor projects that we have done. Commissioner Gonzalez: Okay. Very good. Thank you. James H. Villacorta (Interim Executive Director, Community Redevelopment Agency): There's also 160,000 that's encumbered for the Jint property that's currently in rehabilitation and we expect to have it completed beginning of June, and we have some more -- Mr. Valentin: And Killen. Mr. Villacorta: -- projects -- and the Killens property that was approved at the last meeting. Chair Spence -Jones: And Jim, just so that the other Commissioners know, we have -- can you at least give us a sense of how many low-income rentals that we're rehabbing in the heart of Overtown out of these dollars also that's also online? Mr. Villacorta: We have 158 units under -- in the pipeline coming along and they'll be brought before you. We're bringing 24 units before you tonight. Commissioner Gonzalez: Very good. Chair Spence -Jones: So we're basically at least saving some of the units that we already have in Overtown. I think and some of those units, Commissioner Regalado, you and I visited, and we'll be doing, hopefully, a ground breaking on one of those buildings in the next two weeks, you and I. Commissioner Regalado: I have a question, Chair. Chair Spence -Jones: Sure. Mr. Villacorta: A ribbon -cutting, we'll be -- Chair Spence -Jones: Ribbon -cutting, yeah. We'll be finishing it. Commissioner Regalado: The school we went for the CRA meeting the other day -- Chair Spence -Jones: Douglass. Commissioner Regalado: -- there was a construction going on in front and on the side. Is that a CRA project? Mr. Villacorta: Along 3rd Avenue is -- in front of it -- yes, that is our project. And to the extent they were going down 11 th, that -- Commissioner Regalado: Right. Mr. Villacorta: -- would have been part of ours. Commissioner Regalado: Was there a change order for that project? Chair Spence -Jones: No. There's not -- Mr. Villacorta: There is a change order, when we started the project, to add the waterline. Originally -- City of Miami Page 4 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 Chair Spence -Jones: Oh, yeah. Mr. Villacorta: -- the waterline wasn't contemplated. They also -- my understanding is the designers added -- we also added the electric that you requested so that we could light up the trees during holidays. We added an electric conduit, and we have a change order for additional French drains, and there was a problem with some of the waterline got put in and had to come back out and be put back in, so we haven't gotten that number yet, but we expect there'll be a change order for that. The first three items were requested after the original design. Commissioner Regalado: So it's coming on the budget from Capital Improvement [sicJ? I mean, are we paying the City or directly to the contractor? Mr. Villacorta: We are paying the City. Capital Improvements is managing that project for us. They charge us a 15 percent fee. Where the problem was that resulted in that -- in a portion of that line going in and having to come back out and being replaced will either be with the designers, the firms that did the soft digs to locate the utilities. The problem was it was too close to an FPL (Florida Power & Light) line along a section of the street. Or -- well, we're working with CIP (Capital Improvements Program), I guess is the short answer, to find out where the fault lies. Commissioner Regalado: Yeah. Okay. That's what I thought. That's the reason I'm asking because we're paying CRA money to CIP, but my understanding that it was -- there was a mistake and it's costing several hundred thousand dollars. Mr. Villacorta: I think it's going to be in that range, yes. Chair Spence -Jones: Can I ask something, Jim? Whenever those kind of issues come up -- I mean, and this is something that's going on, then regardless of whether or not it's going to CIP, I think that you still should bring it perhaps to this Board so at least that we're aware of it. Have we gone beyond our budget regarding the 3rd Avenue streetscape project? Mr. Villacorta: We had a contingency amount built in there. We haven't received the formal pricing from the contractor to know -- I mean, the contractor put the line where he was told to put it. We haven't received the formal pricing to remove that piece of line and put it back in. We're working with that and to ascertain which party should bear the cost of it. Commissioner Gonzalez: But who okay the line to go in? Because -- Commissioner Regalado: CIP. Commissioner Gonzalez: -- when you're going to do something like that -- Commissioner Regalado: CIP. That's what I'm saying. Commissioner Gonzalez: -- you need to do a utility survey to ident where you have your -- all of your utility lines. So was it a consultant company? Was it -- who was it? Because whoever it was should be held responsible for this mistake. I mean, I don't know how you can make a mistake like that, if you do your -- if you follow the steps that you need to follow in order to do something like that, you shouldn't have a mistake. You need to do a survey. Mr. Villacorta: Yeah. You may recall, we allocated an extra $30, 000 to do additional soft digs and the project was another month or so in starting because we allocated those additional funds and dug hundreds more test sites up and down the street to locate the lines. This line is 22 feet deep, encased in concrete, and you know, underwater. Somebody missed it, and again, we're performing the work to get the street -- the new line is already in in the correct place, in an City of Miami Page 5 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 acceptable place to FPL, and we'll -- we have a meeting tomorrow to discuss how this came about and who will bear the cost of it. Commissioner Gonzalez: All right. Vice Chair Sarnoff Jim, does the City -- does the C -- I imagine the CRA follows the City in terms of having a performance contract, their performance bond? Mr. Villacorta: Well, these contracts were issued through CIP -- Commissioner Sarnoff Right. Mr. Villacorta: -- with their JOC (Job Order Contract) contractor, so that should -- yeah, a performance and payment bond should be in place. Vice Chair Sarnoff So if, in fact, it was determined that there was an error, wouldn't the performance bond pay for the error? Mr. Villacorta: I think, from what we've seen so far, is if it's the contractor with the performance and payment bond, he didn't -- he put the line exactly where he was told to put it. It would be -- Vice Chair Sarnoff Okay. Who -- Mr. Villacorta: -- a matter of insurance -- Vice Chair Sarnoff -- would have told him to put it there? Who's that person? Just give us a title. Commissioner Gonzalez: That was my question. Vice Chair Sarnoff Yeah. I know what you mean. Mr. Villacorta: Well, there was a designer, but the designer is working off of the utility survey prepared by another vendor, and that -- Vice Chair Sarnoff Inevitably, we'll -- Mr. Villacorta: -- vendor -- Vice Chair Sarnoff -- get to the person. Who's the utility vendor? Mr. Villacorta: I don't recall at the moment. Vice Chair Sarnoff Would you bring that back to us -- Mr. Villacorta: Sure. Vice Chair Sarnoff -- so that we can trace the steps as to who the person --? 'Cause my understanding is that -- and I learned this -- the sewer line went on top of an FP&L line, which should probably not -- Mr. Villacorta: Well, it was a freshwater line. Vice Chair Sarnoff Fresh -- right. City of Miami Page 6 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 Mr. Villacorta: But it was within two feet, horizontally, of the FPL line. The waterline is about - - up to four feet under -- Vice Chair Sarnoff Point -- Mr. Villacorta: -- the road surface, and the FPL -- Vice Chair Sarnoff -- being that it's not a good thing to do 'cause if there's a leak, obviously, we'll have some sort of problem. But the question I think that the Commissioners want to know, and you know, certainly, I do, who do we hold responsible for this 'cause the City doesn't do very much without performance bonds. We make sure that everybody is licensed. We make sure that everybody has insurance. At some point, somebody made a decision. They had either seen enough test sites and they said this line is not here and this is a safe way to proceed and that person either gets held accountable, doesn't get held accountable, but the citizens lose unless we at least do every effort we can, through the City Attorneys Office, to hold them accountable. Mr. Villacorta: Whether it would be the performance bond of a -- I mean, I don't believe it's going to be the contractor, but again, we're investigating that, or whether it would be the insurance policies that were required from the designers, you know, where the claim would lie. It's what we'll discuss. Vice Chair Sarnoff Yeah. It would either be an error or omission -- Mr. Villacorta: Exactly. Vice Chair Sarnoff Right -- which some -- we require error and omissions policy from all of our vendors, don't we? Mr. Villacorta: Yes. Vice Chair Sarnoff So either -- it will either be an error or omissions policy from a designer or it will be a contractor's performance bond, but somebody, theoretically, should be available to pay for this, and more importantly, it won't be the corporation; it will be the insurance carrier, in theory. Mr. Villacorta: Yeah, if there's coverage. Yes. Vice Chair Sarnoff If there's coverage. Well -- and that brings up a good point because if we are paying so much extra to get people with all this insurance coverage, shouldn't we do our due diligence and see what insurance coverage they're providing? Mr. Villacorta: Yes. This has come up at a number of the meetings, and we are very strict about the coverages we require. We run our contracts through Risk Management. This was being handled by CIP. They have put the designers that they have on call and the contractors that they use through that JOC contracting process through those -- Chair Spence -Jones: Is anybody here from CIP tonight? Mr. Villacorta: I don't think so. Chair Spence -Jones: I think -- Mr. Villacorta: They were at the last meeting. Chair Spence -Jones: -- we should have them at the next meeting -- City of Miami Page 7 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 Mr. Villacorta: Okay. Chair Spence -Jones: -- for them to fully understand 'cause we have other roads that we need to repair. I know, at least in the heart of Overtown, that need to repaired, that have not been repaired period in many, many years, so we need to make sure, as we move on to various projects, not just in the Overtown area, but in any area without -- throughout the CRA, we're addressing these questions -- Mr. Villacorta: Yes. Chair Spence -Jones: -- these questions are being addressed. Mr. Villacorta: Yeah. As I said, we have a meeting with the director of CIP and a number of their staff people tomorrow to discuss -- Chair Spence -Jones: But we need to have -- Mr. Villacorta: -- these issues. Chair Spence -Jones: -- 'em here, though. Mr. Villacorta: Yes, yes. Chair Spence -Jones: We'd like to have them here at the next meeting so that when this comes up -- especially if we were talking about the rebuild of Northwest 2nd Avenue, which is also on the agenda tonight, it would have been nice to have them here too. Mr. Villacorta: Yes. Commissioner Regalado: But the reason I asked the question, Madam Chair -- Chair Spence -Jones: Yes. Commissioner Regalado: -- is because you're right. There are many streets that needs to be repair, but if you spend all the money in change orders -- Chair Spence -Jones: Yeah. Commissioner Regalado: -- you don't have anymore money to repair more streets. Chair Spence -Jones: No, I agree. Commissioner Regalado: So that's was the question. I think the change order was like 1.4 or something. Mr. Villacorta: I haven't heard from CIP, but I did hear from someone in Public Works that they thought the change order would be in the neighborhood of 1.2 million, but a portion of that is the additional work we requested, the -- Commissioner Regalado: The $30,000. Mr. Villacorta: Well -- no. The -- well, the additional soft digs, the additional electrical conduits, increased trench drains along the sidewalks. That was increased from something like 400 feet to close to a thousand feet. The cost of -- and it's anticipated that will, you know, relieve City of Miami Page 8 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 flooding or ensure that there's no flooding problems. The waterline that we added to begin with and then the contractor is going to ask for a change order to take that waterline that he installed out and put it back in two feet over. And what portion of that is attributable to moving the line, I haven't had a chance to sit with CIP. Again, that's what we're doing tomorrow, andl will have them at the next meeting with an explanation. Commissioner Gonzalez: I would like to ask you that you provide my office, as soon as possible, with a report -- Chair Spence -Jones: And -- Commissioner Gonzalez: -- giving me information about how much of the change work order was due to the mistake -- Chair Spence -Jones: Expanded service. Commissioner Gonzalez: -- on the waterline, on the survey. Chair Spence -Jones: And I -- Commissioner Gonzalez: I also would like to know who was the company that did the survey and the engineering company that we used for that. Mr. Villacorta: Okay. Commissioner Gonzalez: Okay. Chair Spence -Jones: I just want to add to this because I think you're bringing up a very good point. Commissioner Regalado brought this up, I'm assuming, because he's been briefed to the change orders. I know I'm at least -- Commissioner Regalado: No, I have not been brief. Chair Spence -Jones: You haven't? Commissioner Regalado: No. Chair Spence -Jones: So how did --? Commissioner Regalado: I just investigate. Chair Spence -Jones: Okay. Well, that's a -- that brings us to an even better point. Jim, I think it's extremely important -- I'm in Overtown, or at least in the CRA, at least twice a week in and out, and this is the first time that we've had a discussion about this period, first time. So I'm going to suggest that you please -- any time any issues like this come up -- not just with me, but when you're briefing us on the agenda and on key items that are taking place, that you communicate all these issues to all of us as board members so that we're not caught off guard and not knowing that the changes are happening because I think that if this is happening, then we need to be having a conversation with CIP. They should be here to address the issue. I mean, I -- Mr. Villacorta: Yes, Commissioner. I mean, we're in the process of figuring out what the allocation is of -- Chair Spence -Jones: I know, but any change orders that have taken place. I mean, you just City of Miami Page 9 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 mentioned two or three right now, you know, and I think that -- not just from my perspective as the chairperson, but every single person that's sitting up here, this is -- these are the kind of things that you should be briefing us on when you come to brief us about the agenda. Mr. Villacorta: True. Chair Spence -Jones: That's really it, but, please, by all means, if you can have CIP here to explain the changes and why. And I do know, once they got inside and start digging on 3rd Avenue, that they realized that it was a lot more -- there are a lot more issues there, but we needed to -- we need to at least know what does that do to the bottom -line number, and it should not be come -- come from our wonderful investigator over here, which I'm glad he's a wonderful investigator, but you should be telling us and we should not be -- Commissioner Regalado: That's pro bono. Chair Spence -Jones: -- digging. Commissioner Regalado: That's pro bono. Chair Spence -Jones: All right. So anything else on the budget before we move on? Unidentified Speaker: No. Commissioner Regalado: No. [Later..] Commissioner Gonzalez: Any reportable conditions? Chair Spence -Jones: He said -- Mr. Valentin: No, sir. Commissioner Gonzalez: No. Mr. Valentin: There is nothing to report to the Board. Commissioner Gonzalez: All right. [Later..] Chair Spence -Jones: Ola, please. Commissioner Regalado had a question around the cost overruns. Commissioner Regalado: I didn't got -- I didn't had a question. I had information. I just asked because the Chair was asking, well, you know, we need more streets, and I said that project in front of the elementary school that we were meeting at the CRA had a change order, and that's -- this is what happened and it's less money to do other streets, and that was just it. And there were some questions about what happened -- what prompted the change orders. According to Jim, there were some mistakes that were made in the design and all that, and you know, that was an issue, and they promised that they will come back with the information, but now that you're here Ola Aluko (Director, Capital Improvements Program): First of all, Commissioners, let me apologize for not being here at that time. I came to actually discuss item number 6, which we City of Miami Page 10 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 just discussed not knowing that Northwest 3rd Avenue would come up in your financials. But nevertheless, though, I'm here to address that if you need. The mistakes that the Director may have mentioned -- in our industry, we call it unforeseen conditions, and two, design error and omission. I'll address the design error and omission first and foremost. There was an FP&L duct bank at a particular juncture on Northwest 3rd, in which the proposed line ran very, very close to. This duct bank was not addressed on the plans, and currently, as we speak, I have staff investigating with the AE designer, the architect/engineer designer, to see if that survey was provided to the architect/engineer from the onset. If the survey was not provided, then unfortunately, we cannot hold the architect accountable for that under the errors and omissions clause. It will be considered then an unforeseen condition. However, if the survey was provided and he just failed to -- he or she just failed to include that into the drawings, then after a certain limit of errors and omissions, we can actually go after his or her errors and omission insurance to recoup our funds back, so that addresses the FP&L duct bank. A waterline cannot come within certain distance of an FP&L duct bank due to the -- well, you know what happens when you mix water and electricity. They just don't mix. The other item, which really is the crust of the change order -- I believe the change order that was originally submitted to us was in the amount of 1.6 -- $1.5 million, and that was due to what I will call a owner change. The Miami -Dade Water and Sewer apparently had wanted to increase the capacity of the proposed six-inch waterline in that area. That was what was originally designed, and that was what the architect was asked to design. However, in anticipation of growth in the particular area, in the Overtown area, WASA (Water and Sewer Authority) requested that we upgrade the line so we can accommodate future growth, which is a wise thing to do. Unfortunately, that occurred after the contract was bid. As a matter of fact, that particular issue almost delayed the beginning of the project, so we went ahead -- in order to move the project forward, we went ahead and directed a contractor to move forward, hopefully, giving pressure on WASA to make up their mind as to whether they would like to increase the line from six inches to twelve inches. So when WASA did note that we were moving forward, they gave us the go-ahead to increase the line from six to twelve. Of course, we asked the contractor for a price proposal, and he gave us a change order, which is inclusive of the unforeseen conflicts that we have with FP&L. So the $1.6 million change order that was issued, which we have not agreed to yet, does consist of the upgrade in waterline, the conflict, and other associated soft costs around that conflict. I have a very, very diligent team. It's my understanding that we are negotiating that cost down considerably. Right now, we are roughly at 1.3 million in negotiations. That's not good enough, so we've asked them to go back to go sharpen their pencils even more. And even with all this being said, construction is ongoing, and that's usually atypical with typical contractors. They usually wait until they get paid before they move forward, but this contractor is very cooperative, and he's working with us. So, again, the only thing I guess I can come back to you with is whether the survey actually showed the FP&L duct bank, and if it did, then we will pursue design A&E errors. Commissioner Gonzalez: If you remember -- I'm sorry. Vice Chair Sarnoff.. Go ahead. Commissioner Gonzalez: -- that was my comment in reference to the proper survey of the utilities. So that -- basically, my concern was that, you know, if the right survey was done and the right survey was submitted, then whoever did it is responsible. In reference to the water main extension, that I have gone through in two of my projects and I know what it costs, and I know what it entails, so on that aspect, I have no questions andl have no comments. Vice Chair Sarnoff Well, let me ask you, Ola, 'cause I'm not clear on something. Let me -- and maybe I don't understand building, especially roads. At a certain point in time, the City contracts with somebody to do some sort of survey to let us know don't build here, be careful here, there's something here. You know, you guys know the name of that; I don't care to know the name of that. That person does a survey, correct? City of Miami Page 11 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 Mr. Aluko: That's correct. Vice Chair Sarnoff You don't tell them where to survey, right? Commissioner Gonzalez: No. Vice Chair Sarnoff You say use your best professional judgments and survey, correct? Mr. Aluko: That's correct. Vice Chair Sarnoff: So you told us a moment ago that if that person didn't survey and then the architect doesn't design, it's not the architect's fault. I got that. You're not going to go against that architect's error and remission [sic] -- Mr. Aluko: No, we will not. Vice Chair Sarnoff -- or professional negligence policy. Mr. Aluko: We will not. Vice Chair Sarnoff But step backwards one step. The surveyor, is he not an engineer? Mr. Aluko: That's correct. The surveyors are. Vice Chair Sarnoff Okay. Now if the surveyor chose -- or the surveyor makes a mistake, whether it's through an error or an omission, which means he just didn't do it, didn't see it correctly, or he chose not to look where he should have been looking, could we not go after his, again, E&O (Errors & Omissions) or professional negligence policy? Mr. Aluko: Yes and no. I'll tell you the -- Vice Chair Sarnoff What's the "no part. I got the -- Mr. Aluko: Okay. Vice Chair Sarnoff -- "yes" part. Mr. Aluko: Okay. The "no part is, oftentimes, whenever surveyors or even contractors go out to the field to survey, there is -- they actually call all local agencies -- there is a list of local agencies which they call to come and locate their utilities. Oftentimes, several agencies do not locate their utilities, so that means the surveyor may not have gotten wind of any particular FP&L utility in that area. This happens a lot, especially in downtown. We have Level 3 -- not that I'm saying Level 3's involved here -- but there's Level 3, there's WASA, there's FP&L, there's Southern Bell, BellSouth, whatever. So if FP&L did not come out at that time and locate their survey -- meaning did not bring it to the surveyor's attention, then the surveyor obviously would not have seen it. Now there are some instances where the surveyor also has to do his own due diligence, which is he has to inquire -- not just by making the phone calls, but actually have to use equipment to actually locate this information, but not all the times are they held to that. That's what I'll have to look at in the contract. And secondly, this survey could have been done years ago, in the sense that maybe the duct bank was never identified; it was never -- well, maybe it hadn't even been installed prior to the survey being done, so we, being the department, could have given the architect an old survey, which he used to -- I'm sorry, not the architect, but the engineer -- design his road. So there are a multitude of factors which has to start with the surveyor then moving forward City of Miami Page 12 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 Vice Chair Sarnoff Well, could you bring back to all of us --? 'Cause number one, if the City used an old survey, shame on us. Number two, if FP&L didn't identyY something, I'm not so sure it's just shame on us. It may be that they're liable. I don't know the law well enough to know whether you can hold a -- Mr. Villacorta: Public utility. Vice Chair Sarnoff -- public utility, which is essentially a monopoly, liable for their in -- you know, for their failure to do what I guess they're obligated to do. But I think we need to know, as Commissioners, you know, who is at fault for this, and is it our lack of due diligence. Is it the non -- or the lack of due diligence of people we've been hiring? And we need to weed them out. Mr. Aluko: Right. Vice Chair Sarnoff I don't think any Commissioner wants to sit up here and hear about a change order because we had to, you know, remove roadwork that was almost done and because we put a -- essentially, a waterline on top of electricity. Mr. Aluko: That's correct. Vice Chair Sarnoff I mean, that's what the paper's going to write. That's what the Miami Herald's going to write; you know, Commissioners approve water on top of electricity. Mr. Aluko: We can do that. It's just the distance -- the depth has to be a certain distance. Vice Chair Sarnoff It's never going to be defined very well, and the Commissioners who sit up here only look as good as the due diligence that the Administration performs. Mr. Aluko: That's correct. Vice Chair Sarnoff So Commissioner Regalado has identified a particular area because we went to the school -- or he went to the school the last CRA meeting, and I think he just wants to dig deep, both figuratively and actually, and find out how did that line get built directly on top of -- or within two feet of a waterline. Mr. Aluko: What caused the conflict. Vice Chair Sarnoff Right. Mr. Aluko: Most definitely. Just to apprise you -- a briefing on how the errors and omissions insurance work. Usually, a professional will take out an errors and omission insurance policy in which their actual amount of errors and omission has to total to a certain amount. Once it reaches that threshold, then the owner can go after the insurance company to recoup any damages. So meaning that if this -- assuming it was the surveyor's fault and he had a $3 million errors and omission policy, however, his threshold of errors was maybe $200,000 and the actual error in which he made was only $10, 000, unfortunately -- Vice Chair Sarnoff Yeah. You got to go through his deductible. I understand. Mr. Aluko: Well, actually, we can't go through anything. We have to hit -- actually hit the threshold. Vice Chair Sarnoff Right. You have to go through the surveyor and he may be collectable and he may not be -- City of Miami Page 13 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 Mr. Aluko: Exactly. Vice Chair Sarnoff. -- collectable. I understand that. Mr. Aluko: But all that information, I'll bring back at the next meeting. Vice Chair Sarnoff. Okay. Anybody else want any further discussion on this? Commissioner Gonzalez: Nope. RESOLUTIONS 2. 08-00548 CRA RESOLUTION A JOINT RESOLUTION OF THE BOARDS OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST AND OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCIES, AUTHORIZING THE PURCHASE OF INSURANCE COVERAGE FOR THE CRAS' OFFICES FOR THE PERIOD COMMENCING JUNE 24, 2008 AND ENDING JUNE 23, 2009, AT AN ANNUAL COST NOT TO EXCEED $6,500; ALLOCATING FUNDS FROM GENERAL OPERATING FUND, "INSURANCE," ACCOUNT CODE NO. 10030.920101.545000.0000.00000. Cover Memo.pdf Financial Form.pdf Back-up.pdf Legislation.pdf Motion by Commissioner Gonzalez, seconded by Commissioner Regalado, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 4 - Vice Chair Sarnoff, Commissioner Gonzalez, Chair Spence -Jones and Commissioner Regalado Absent: 1 - Commissioner Sanchez CRA-R-08-0027 Chair Spence -Jones: Let -- can we get item number 2 out of the way, which is the --? Commissioner Gonzalez: Move it. Chair Spence -Jones: I have a motion. This is in reference -- Commissioner Regalado: Second. Chair Spence -Jones: -- to the office insurance. There's any question? Commissioner Regalado: Second. Chair Spence -Jones: All in favor? The Commissioners (Collectively): Aye. Chair Spence -Jones: Okay. We need office insurance. Okay. 3. 08-00550 CRA RESOLUTION City of Miami Page 14 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ACCEPTING THE EXECUTIVE DIRECTORS RECOMMENDATION OF THE CURTIS GROUP TEAM TO PROVIDE PROFESSIONAL SERVICES FOR IMPLEMENTATION OF INCREMENT III OF THE CRA'S MASTER DEVELOPMENT ORDER AS A DEVELOPMENT OF REGIONAL IMPACT; DIRECTING THE EXECUTIVE DIRECTOR TO ATTEMPT TO NEGOTIATE A PROFESSIONAL SERVICES AGREEMENT WITH THE RECOMMENDED RESPONDENT; FURTHER DIRECTING THE EXECUTIVE DIRECTOR TO PRESENT ANY PROPOSED AGREEMENT TO THE BOARD FOR ITS CONSIDERATION AND, IF SATISFACTORY, APPROVAL AND AWARD; CLARIFYING THAT THIS RESOLUTION IS NOT INTENDED TO BE AN AWARD OR TO OTHERWISE CREATE ANY RIGHTS WHATSOEVER IN THE RECOMMENDED RESPONDENT. Cover Memo.pdf Back-up.pdf Legislation.pdf Motion by Commissioner Gonzalez, seconded by Commissioner Regalado, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 4 - Vice Chair Sarnoff, Commissioner Gonzalez, Chair Spence -Jones and Commissioner Regalado Absent: 1 - Commissioner Sanchez CRA-R-08-0028 Chair Spence -Jones: We're going to move on to number 3, which is DRI (Development of Regional Impact), the approval of that. I think we have the Curtis Group. Jim, can you at least put something on the record regarding this, though? James H. Villacorta (Interim Executive Director, Community Redevelopment Agency): Yes. Item number 3 is a resolution of the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency accepting the executive director's recommendation of the Curtis Group team to provide professional services for implementation of Increment III of the CRA's (Community Redevelopment Agency's) master development order; and authorizing the director to attempt to negotiate a professional services agreement with the recommended respondent. The agreement would be brought back before the Board for approval. Commissioner Gonzalez: Motion. Chair Spence -Jones: I have a motion. Commissioner Regalado: Second. Chair Spence -Jones: All in favor? Vice Chair Sarnoff. Wait, wait, wait. Just -- I have a question -- Chair Spence -Jones: So you got a question. Vice Chair Sarnoff. -- Jim. Who is the committee that decided that this was the winning team? Mr. Villacorta: There were three members of the committee that reviewed the proposal and recommended them. There was Clarence Woods, the assistant director of the CRA, Rogelio City of Miami Page 15 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 Madan of the Planning Department, and Chelsa Arscott of the CRA. Vice Chair Sarnoff. And what was the middle person's name? Mr. Villacorta: Rogelio Madan. Vice Chair Sarnoff. Did you review this? Mr. Villacorta: Yes. Vice Chair Sarnoff. You recommend it? Mr. Villacorta: Yes. Vice Chair Sarnoff. Okay. Chair Spence -Jones: So we had a motion; we had a second. All in favor? The Commissioners (Collectively): Aye. 4. 08-00551 CRA RESOLUTION A JOINT RESOLUTION OF THE BOARDS OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST AND OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCIES AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE AN AGREEMENT, IN A FORM ACCEPTABLE TO GENERAL COUNSEL, WITH DOUG BRUCE AND ASSOCIATES FOR GOVERNMENTAL REPRESENTATION AND LOBBYING SERVICES IN TALLAHASSEE, FLORIDA, FOR A TWO-YEAR PERIOD, COMMENCING JULY 1, 2008, IN AN ANNUAL AMOUNT NOT TO EXCEED $57,600 PLUS APPROVED EXPENSES NOT TO EXCEED $5,000, FOR A TWO-YEAR TOTAL NOT TO EXCEED $125,200; ALLOCATING FUNDS AS FOLLOWS: $7,825 EACH FROM FY 2008 SEOPW TIF FUND, "PROFESSIONAL SERVICES - OTHER," ACCOUNT CODE NO. 10050.920101.531000.0000.00000, AND OMNI TIF FUND, "PROFESSIONAL SERVICES - OTHER," ACCOUNT CODE NO. 10040.920101.531000.0000.00000; $31,300 EACH FROM FY 2009 SEOPW TIF FUND, "PROFESSIONAL SERVICES - OTHER," ACCOUNT CODE NO. 10050.920101.531000.0000.00000, AND OMNI TIF FUND, "PROFESSIONAL SERVICES - OTHER," ACCOUNT CODE NO. 10040.920101.531000.0000.00000; AND $23,475 EACH FROM FY 2010 SEOPW TIF FUND, "PROFESSIONAL SERVICES - OTHER," ACCOUNT CODE NO. 10050.920101.531000.0000.00000, AND OMNI TIF FUND, "PROFESSIONAL SERVICES - OTHER," ACCOUNT CODE NO. 10040.920101.531000.0000.00000. Cover Memo.pdf Financial Form.pdf Back-up.pdf Legislation.pdf Motion by Commissioner Gonzalez, seconded by Vice Chair Sarnoff, that this matter be ADOPTED PASSED by the following vote. City of Miami Page 16 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 Votes: Ayes: 4 - Vice Chair Sarnoff, Commissioner Gonzalez, Chair Spence -Jones and Commissioner Regalado Absent: 1 - Commissioner Sanchez CRA-R-08-0029 Chair Spence -Jones: We're going to move on to Mr. Bruce, in reference to -- James H. Villacorta (Interim Executive Director, Community Redevelopment Agency): Item number -- Chair Spence -Jones: -- item number 4. Mr. Villacorta: -- 4 is a joint resolution of the Boards of Commissioners of the Southeast Overtown/Park West and Omni Redevelopment District Community Redevelopment Agencies authorizing the executive director to execute an agreement, in a form acceptable to General Counsel, with Doug Bruce and Associates for governmental representation and lobbying services in Tallahassee, for a two-year period, commencing July 1, 2008, in an annual amount not to exceed $57, 600 plus approved expenses. Chair Spence -Jones: Any comments on this item? Vice Chair Sarnoff Is Doug here? Chair Spence -Jones: Mr. Bruce. Mr. Villacorta: Yeah. I believe he's here. Chair Spence -Jones: Bringing us any money from Tallahassee? Doug Bruce: Well, it's up to the Governor. Chair Spence -Jones: Put your name on the record, please. Mr. Bruce: I'm Doug Bruce, and I'm honored to represent the CRA (Community Redevelopment Agency) in Tallahassee. Yeah. We were successful at the Delegation, where (UNINTELLIGIBLE) Senator Bullard, in particular, got $100,000 appropriated for the North Bayshore rebuild, where we had that flooding. As you know, we did the tour last year with Senator Bullard, and she dedicated herself to get the money, and it's there. The Governor doesn't have the budget yet, but we've been working with staff to review it and got the Water Management District and people talking to the Governor. Hopefully, (UNINTELLIGIBLE) staff -- hopefully, it'll pass muster. Last year, if you recall, we got $750,000 and the Governor did veto. He was new and had new staffing, and so he didn't know any better, so hopefully he'll treat us a little better this year. Chair Spence -Jones: Any comments from the --? Vice Chair Sarnoff Doug, you said you got $100,000? Mr. Bruce: Hundred thousand, yes. Chair Spence -Jones: In the budget. Vice Chair Sarnoff And that's for the North Bayshore? City of Miami Page 17 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 Mr. Bruce: Yes, sir. Vice Chair Sarnoff That's the one directly in front of the condos? Mr. Bruce: Yes. Remember when we were there last year and we couldn't -- really couldn't get through because of the flooding -- Vice Chair Sarnoff Right. Mr. Bruce: -- that was -- Chair Spence -Jones: I think you did that tour, right? Vice Chair Sarnoff No. I -- I did. Mr. Bruce: That was a project that was on the City's list, and we looked into it with the Water Management District, and they said, yeah, this is -- they have a plan to address it, but it was down the road so we were -- hopefully, they're able to accelerate it now with this additional money. Commissioner Regalado: What happened to the proposal to change the whole rules --? Mr. Bruce: There were a number of proposals relating to CRA regulation governance; none of them passed. Commissioner Regalado: On the Senate or on the House? Mr. Bruce: There were -- Senator Storms (phonetic) had one, which was just a general reporting and limiting of the CRAs. It was negative in terms of -- it was discouraging of CRAB. There was a proposal in the House in a growth management bill which would have limited what CRAs could do in terms of long-term projects, in terms of dedicating CRA revenue, and that -- both those measures failed to pass. Commissioner Regalado: Okay. But it did -- it went to the full House -- it passed -- Mr. Bruce: It was -- Commissioner Regalado: -- in the full House, but it failed in the Senate, right? Mr. Bruce: It did not -- that was in the growth management bill, and I don't think the House (UNINTELLIGIBLE) -- ever took it up and passed it down to -- it passed on second reading -- Commissioner Regalado: Right. Mr. Bruce: -- and it sat there on third reading until time gave out. Commissioner Regalado: Okay. Chair Spence -Jones: Commissioner Gonzalez, you have any question --? Commissioner Gonzalez: No. Chair Spence -Jones: Okay. Did we have a motion and a second? Commissioner Gonzalez: My only comment is that -- City of Miami Page 18 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 Chair Spence -Jones: Sure. Commissioner Gonzalez: -- the Governor eventually is going to betting bids on his own budget, so you know, don't hold your hopes. Vice Chair Sarnoff How long does he have to veto, by the way? When does he have --? Mr. Bruce: He'll have 15 days from the day that he gets it. He doesn't have it yet as of a couple of hours ago, so -- I have heard that he was going to get it early and try to act on the entire budget by Memorial Day, which is, you know, next Monday, so a lot has got to happen quickly for that to happen. The other thing I would add on affordable housing -- and I'll send you an in-depth report on the session, but it's unfortunate -- the Mike Davis grant program, which is actually a pilot project for affordable housing -- for workforce housing -- was a victim of the budget restraint, so it was 50 million -- excuse me, $40 million there that didn't get reappropriated this year, so we'll just have to try to get that back in there when things get better. Vice Chair Sarnoff Is there any outlook or chance on freeing up the Sadowski money? Mr. Bruce: I'm sorry. I didn't understand. Vice Chair Sarnoff Is there any outlook or chance on freeing up the Sadowski trust fund? Commissioner Gonzalez: I don't think so because they're using that money for the general budget. Vice Chair Sarnoff.- That's what I heard too. Commissioner Gonzalez: Okay. You know, we have been fighting for that for the longest, and they're not going to do it. They're taking that money for their general budget. Chair Spence -Jones: I think we had -- did we have a motion? Do we have a motion on this item? Commissioner Gonzalez: No, but I'm willing to make a motion. Chair Spence -Jones: Have a motion. Vice Chair Sarnoff Second. Chair Spence -Jones: All in favor? The Commissioners (Collectively): Aye. Chair Spence -Jones: All right. This item passes. Thank you, Mr. Bruce. Mr. Bruce: Thank you very much. 5. 08-00549 CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING THE ISSUANCE OF A GRANT, IN AN AMOUNT NOT TO EXCEED $475,000, TO JINT HOLDINGS, LLC TO REHABILITATE TWENTY-FOUR (24) RESIDENTIAL RENTAL UNITS AT 149 NW 11th City of Miami Page 19 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 STREET, MIAMI, FLORIDA; AUTHORIZING THE EXECUTIVE DIRECTOR, AT HIS DISCRETION, TO DISBURSE THE GRANT FUNDS ON A REIMBURSEMENT BASIS, OR DIRECTLY TO VENDORS, UPON PRESENTATION OF INVOICES AND SATISFACTORY DOCUMENTATION; AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE ALL DOCUMENTS NECESSARY FOR SAID PURPOSE; ALLOCATING FUNDS FROM SEOPW TAX INCREMENT FUND, ENTITLED "CONSTRUCTION IN PROGRESS," ACCOUNT CODE NO. 10050.920101.670000.0000.00000. Motion by Commissioner Gonzalez, seconded by Commissioner Regalado, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 4 - Vice Chair Sarnoff, Commissioner Gonzalez, Chair Spence -Jones and Commissioner Regalado Absent: 1 - Commissioner Sanchez CRA-R-08-0030 Direction by Commissioner Gonzalez to the Interim Executive Director to provide the Board with a report at the next Community Redevelopment Agency (CRA) meeting of all built and rehabilitated housing and infrastructure projects in the Southeast Overtown CRA area from 2001 through 2008. Chair Spence -Jones: I'd like to move on to item number 5. We did have -- Commissioner Gonzalez: I'll move item number 5, without any hesitation. Chair Spence -Jones: We have a motion. You want to read anything into the record or --? James H. Villacorta (Interim Executive Director, Community Redevelopment Agency): Yeah. Item number 5 is a resolution of the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency authorizing the issuance of a grant, in an amount not to exceed $475, 000, to Jint Holdings, LLC (Limited Liability Company) to rehabilitate a 24-unit residential apartment building at 149 Northwest 11 th Street; authorizing the director, at his discretion, to disburse the grant funds on a reimbursement basis or directly to the vendors, upon presentation of satisfactory invoices and documentation; authorizing the executive director to execute all documents necessary for said purpose. Chair Spence -Jones: We had a motion on the item. I -- Commissioner Gonzalez: Move it. Chair Spence -Jones: Do we have a second on it? Commissioner Regalado: Second. Commissioner Gonzalez: And while on the subject, I would like you to provide me with a full report of every affordable housing, rental or homeownership, that has been built in Overtown from 2001, when I was elected, to 2008. Also, I would like to know -- Chair Spence -Jones: You said rehab too, right? Commissioner Gonzalez: Pardon me? Chair Spence -Jones: You want rehabbed also in there, right? City of Miami Page 20 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 Commissioner Gonzalez: Yeah, rehab also. Also, I would like to know every single project that we have done in infrastructure in the area of Overtown because those are the two -- to me, those are the two most important subjects in reference to Overtown; provide quality of life for the residents and provide affordable housing and job opportunity, so I would like to have a full report on those two items. Mr. Villacorta: And that would be within the Southeast Overtown -- Commissioner Gonzalez: Within Southeast Overtown/Park West because -- Mr. Villacorta: -- boundary, not the entire -- Commissioner Gonzalez: -- in Omni, we know what's going on and we know what had happened, but -- Mr. Villacorta: Just Overtown encompasses a larger area than the portion that's in the CRA, but Chair Spence -Jones: Well, he's -- Mr. Villacorta: -- we'll -- Chair Spence -Jones: -- what he's -- Mr. Villacorta: -- limit it to the CRA area. Chair Spence -Jones: Yeah. He definitely wants to know in the CRA. We had a motion. Did we have a second on this item? Priscilla A. Thompson (Clerk of the Board): Yes. Commissioner Regalado: Yes. Chair Spence -Jones: Okay. You had a question? Vice Chair Sarnoff. I do. Chair Spence -Jones: I do, too, but I'll let -- I'll yield to you first. Vice Chair Sarnoff Okay. This project is total -- what's the total expenditure for this project? Mr. Villacorta: Right now we have construction bids of $375, 000; those were issued in December. The -- we've also asked that the kitchens be completely torn out and remodeled, which was -- they were just being repaired in the original bid, so there is a contingency figure in there. The contractor has made some noise about having to hold his price. If he refuses to do so, well bid it out again. Vice Chair Sarnoff So your anticipation is the total amount is at about a half a million dollars? Mr. Villacorta: I expect it to come in under the 475 number. Vice Chair Sarnoff Four seventy-five, okay. Mr. Villacorta: Again, this is in the City's Section 8 program, so everybody in that building is on a Section 8 voucher. They inspect it for quality. They also forced the landlord to maintain the City of Miami Page 21 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 rents at an affordable rate, and he's agreed to a deed restriction or a restrictive covenant holding it to seven years. Commissioner Gonzalez: Is that going to include bathrooms also -- Mr. Villacorta: Yes. The -- Commissioner Gonzalez: -- new bathrooms? Mr. Villacorta: -- bathrooms were already -- Commissioner Gonzalez: Yeah, because -- Mr. Villacorta: -- included. Commissioner Gonzalez: -- I mean, on a rehab, you need to do kitchens and bathrooms completely, full -- Mr. Villacorta: Right. Commissioner Gonzalez: -- brand-new. Mr. Villacorta: Yes. The original bid contemplated completely gutting the bathrooms and replacing them, as we're doing in another project, the one that will be ready June 1. The -- we asked that they go further and include the kitchens as well. Commissioner Gonzalez: What about electrical wiring and all that? Mr. Villacorta: Yeah. All the outlets and -- Commissioner Gonzalez: Updating the panel box. Mr. Villacorta: -- are being updated to the extent it's required by Code. If it's not already breakers, it's being updated. Chair Spence -Jones: The one thing that I wanted to add -- Jint Properties is here, right? Mr. Villacorta: Yeah. Chair Spence -Jones: Okay. Mr. Villacorta: Mr. Vahnish (phonetic) is here. Chair Spence -Jones: Okay. The one thing that I really wanted to add -- and I'm glad you put it on the record regarding the fact that, you know, the rents will be stabilized so that the folks that are living there can continue to live there. And then I know that Jint owns several different buildings within the Overtown area and the CRA area, and these are all Section 8-based properties that are this partnership -- or at least the contract with the City regarding the Section 8. I just want to be very clear on the relocation 'cause I know that in order for us to totally gut rehab these units that we want to make sure that we're not placing or moving families around that don't have a place to go, so I'm assuming that all this is being addressed as a part of the rehab of the units. Mr. Villacorta: Yes. We've been working with the owner. He's got a staging planned to -- it's a three-story apartment building. He'll do the three apartments vertically, and he has right now City of Miami Page 22 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 empty apartments in that manner. As those apartments are finished, he'll move the next three over into the new re -- newly remodeled apartment and do the three vertically and proceed that way. So this building may take a little longer than the building that's currently under construction, which was nine units, but the building was completely vacant and we've been able to have that proceed on about a 60-day -- Chair Spence -Jones: Okay. Mr. Villacorta: -- rehab. Chair Spence -Jones: I just wanted to make sure that we definitely handled that as a part of the rehab of the units. And I just want to say to Clarence Woods -- Mr. Woods, the assistant director, I know that we have identified several other buildings outside of the Jint properties because, you know, if nothing else, we know that it takes time to put fresh, new buildings up, you know, in the neighborhood. It takes time to do that, but there's no reason in the world that we have property owners that have been in Overtown and in the community for 20, 30, 40 years that have just had issues with, you know, just struggling trying to keep their doors open or keeping their buildings, you know, running at a certain level. So, hopefully, because of these dollars that we do have available regarding the issue of rehab and bringing them up to certain standards, that we have identified additional buildings so that -- I have a lot of seniors that live in a lot of these buildings, and you should see the conditions that they're living in. It's horrible. So if we can take some of these CRA dollars to really upgrade these units so that they can live in de -- in a decent, clean environment, that's what we should be doing. And then when the new buildings come aboard, the new developments that are happening in the area, that's wonderful. But the 200, $300 rental rates, you know, quite frankly, some -- that's -- some of our seniors can only afford that in Overtown, so we just want to make sure that they're at least living in a decent environment. I just wanted the assistant director to at least let me know if we have any updates on new buildings that he's identified that we will be able to also rehab and do the same thing with. Clarence Woods (Assistant Executive Director, Community Redevelopment Agency): Yes, we have, Commissioner. There are at least an additional three rooming houses that we've identified, and I've been working with the owners of these particular establishments and getting contractors to come out and bid on what it would take in order to bring them back -- licensed contractors, you know, to do bids for rehabbing these units per Code, you know, without going over the tipping point that would threaten their ability to operate under their current status. So there are 23 units in one building; there's another building that has about 12 units; another building that has about 25 units that I'm working pretty much everyday with these owners in order to get some bids, some pricing and to understand exactly what needs to happen, you know, legally in order to put that investment into these properties. Chair Spence -Jones: Okay. I just think that -- I think -- I thought it was important for you to officially put that on the record because when I tell you guys, you know -- and I go through Overtown all the time and knock on many doors. When I see 80-, 90-year-old seniors, 70-year-old seniors -- you know, it's just shameful, you know, that they're struggling, you know, to survive and they can only afford to live, you know, in those conditions, and I think that if we have the resources to upgrade them, then we should. If nothing else, the streets in Overtown and those units should be rehabbed so that people can live in a decent, clean environment, so I just wanted to make sure that we're still moving on those; not to say that we're not trying to build new things. We need new things too, but there are people that have been in Overtown for 30, 40, 50, 60 years that really need to also remain there. So thank you very much. We had a motion and a second on that item. All in favor? The Commissioners (Collectively): Aye. City of Miami Page 23 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 Chair Spence -Jones: All right. That item passes. And the -- Trinity, we already said we're not going to deal with. DISCUSSION ITEMS 6. 08-00567 CRA DISCUSSION DISCUSSION REGARDING THE REBUILD OF N.W. 2ND AVENUE. Cover Memo.pdf Back-up.pdf DISCUSSED Direction by Chair Spence -Jones to the Interim Executive Director to come back to the Board at the next Community Redevelopment Agency (CRA) meeting with a recommendation regarding Dr. Dorothy Jenkins Fields' request regarding the landlocked parcel located in front of the Lyric Theater. Direction by Chair Spence -Jones to the Interim Executive Director to meet with the International Longshoreman's Association regarding the future street improvements on Northwest 2nd Avenue in the Southeast Overtown/Park West Community Redevelopment Agency area. Chair Spence -Jones: So item number 6 is just really a discussion item, and Mr. Ola Aluko -- and it's great to see the City Man -- I guess we need to come to the Performing Arts Center more 'cause we'll see the City Manager. We have our City Manager joining us, Mr. Pete Hernandez. Is there an item you had on here also, or you're just joining us? No. You're just joining us today. Pedro G. Hernandez (City Manager): I'm just joining you. Chair Spence -Jones: Okay. No problem. Vice Chair Sarnoff You're going to the presentation later, right? Chair Spence -Jones: Okay. CIP (Capital Improvements Program). Ola, I really thank you for being here. There was a question that came up -- and I just want to just mention -- I've asked for the item -- the rebuild of Northwest 2nd Avenue to actually be placed on the agenda as a discussion item. I -- as we know, we're almost finished with 3rd Avenue. We probably have about another four more months to go on 3rd Avenue. It's going to be beautiful when we finish with it. Many of the businesses are going to really benefit from having, you know, clean, upgraded streetscape happening on that street. I just did not want us to complete this street and not be prepared for the next street, which is Northwest 2nd Avenue, and that actually runs in front of many of our historic buildings, like the Longshoremen, the Lyric Theater, and other buildings, Clyde Killens building. I think this will be the first place in Overtown we're looking at putting a traffic circle, so we just wanted to make sure that we were going to be moving in the direction, and I wanted to have a discussion around us preparing for the next street in the heart of Overtown, which would be Northwest 2nd Avenue, which is another main street that many of the downtown folks, or at least County employees, take going back and forth to get on and off the expressway. Any questions -- or does anybody have, first of all, about the rebuild of Northwest 2nd Avenue? If not, I'd like to also now open it up to Commissioner Regalado and Commissioner Gonzalez. They had questions about CIP and some of the cost overruns, but does anybody have an issue with Northwest 2nd Avenue and that being the next --? Commissioner Regalado: I have a question, Chair. Chair Spence -Jones: Sure. City of Miami Page 24 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 Commissioner Regalado: It's the impact of the work on the Lyric Theater, and maybe we would understand because it is at its main corridor for the theater, so can you -- do you have any idea, Ola? Ola Aluko: Ola Aluko, director of Capital Improvements Department, City of Miami. Commissioner, the CRA (Community Redevelopment Agency) director and I discussed this project really in passing at our last Commission meeting. And of course, after today's meeting, we were planning on sitting down and looking at the details. But in direct response to your question, no doubt, if we are going to rebuild the street, there will be impact. What we will have to do, as a department, is to mitigate or -- yeah, mitigate the impact caused. That is a well -traveled corridor. There are various means of traffic methodologies that we can implement to reduce the amount of impact as possible. And also, of course, we'll get together with not only the Lyric Theater but also the Longshoremen and -- or any other active business in that corridor to ensure that we do not infringe too terribly on their business activities. Commissioner Regalado: Right. It's just because there are seasons -- and Dr. Fields is here. Chair Spence -Jones: And I think, if I'm not mistaken, the Lyric is also going -- should be going - - is it going black or going -- Dorothy Jenkins Fields: Dark. Chair Spence -Jones: -- dark, I'm sorry -- black, dark -- soon, right? Is that correct? Commissioner Regalado: Yeah, but it's important because we know that there are seasons and there are plans. I mean, theaters plans [sic] a year ahead. Ms. Jenkins Fields: Yes, in advance. Commissioner Regalado: So I just want to understand Ms. Jenkins Fields: Well, yes. We are very -- Dorothy Jenkins Fields, Black Archives, Lyric Theater. Thank you for the opportunity to ask a question about timetable. As soon as we saw this as a discussion item, we wanted to be here to ask about the timetable because one of the issues that we have now is the expansion of the Lyric Theater. And while we had expected to get Block 36 to expand to the east, while the property 36 is in litigation, we have the opportunity to expand the Lyric Theater to the north, and that would be the parts that the -- the buildings that would help make the theater operational so that we would have a gift shop and we will have the building -- the Center for the Black Archives. We would have more dressing rooms and community rooms and things that would really bring the traffic in. And in order to do that, we have already gone to permitting, and we are -- we thought that we owned all three parcels immediately in front of the Lyric Theater because the CRA had agreed some time ago, several years ago, to, in fact, make the parcel that is -- if you can imagine it, right in front of the front door. We had worked with Frank Rollason because every time it rained that was the part that would flood, so we know that the CRA was aware of it, and we talked about it, and we had moved on it. We were very surprised when we got to permitting and they said, oh, you only own two; the third parcel was never facilitated And so we are at a standstill until that is done. Once that is done, we would expect it would take about 90 days for us -- or 60 days, I guess, to complete the paperwork, and then we would be ready for construction. So we're looking at construction beginning in September, and it certainly should coincide with what you're doing with the rebuilding of 2nd Avenue, which is a wonderful idea. Commissioners, we have seen -- or CRA board members -- we have been bumping around on 3rd Avenue, but the results are just amazing, and the streetscape, it is really all coming together, better than we had ever imagined. And so we are anxious to get started on 2nd Avenue, but we do ask, one, that you coordinate it City of Miami Page 25 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 with our schedule; and number two, that, in fact, parcel in front of the Lyric Theater, which we have landlocked because we own the north of it and we own the south of it, but if anybody wants to put a hotdog stand right in the middle, that could be done. We understand that it has to be advertised but today we are asking you for a letter of intent that we can take to the County and we can continue with the processing or permitting. Chair Spence -Jones: Okay. Let me just -- Thank you, Dr. Fields. I wanted -- first of all, I want to just clear up one thing on the rebuild of -- 'cause we were really only addressing the Northwest 2nd Avenue. I want to be clear on that with the board members sitting here now. You -- at this point, the Lyric and Black Archives does not have an issue with Northwest 2nd Avenue being the next street for the streetscape, correct? Ms. Jenkins Fields: We don't have any issue with it, but we would certainly need to -- for you to work with us -- Chair Spence -Jones: Oh, no, by all means. Ms. Jenkins Fields: -- on the impact. Chair Spence -Jones: That was -- today's item was merely a discussion item to say that we thought that it was important for that to be the next street and for staff to come back at the next meeting at least bringing some sort of recommendation or resolution on how we get started next, if that is going to be the case. And again, still -- Miguel still needs to look to see whether or not we even have the resources to even start on it. I just don't want 3rd Avenue to finish or be completed and then we wait another two years -- Ms. Jenkins Fields: Sure. Chair Spence -Jones: -- before we see 2nd Avenue getting started. We would never do anything on Northwest 2nd Avenue without making sure that all of the key stakeholders on 2nd Avenue are very much involved, but I just wanted to at least get the support of the board members sitting up here that they're comfortable and okay with Jim bringing it back as the next main street in Overtown that we get done, so I just want to be clear that you are comfortable with that. Ms. Jenkins Fields: Yes. And the longshoremen are here too. Mr. Canty's here. Chair Spence -Jones: Mr. Canty, you guys are okay with Northwest 2nd Avenue being the next main street in Overtown? Priscilla A. Thompson (City Clerk): I'm sorry. But you -- Chair Spence -Jones: Okay. You can't -- Ms. Thompson: -- have to come to the mike. Chair Spence -Jones: -- talk -- yeah. Ellis Canty: Good evening. My name is Ellis Canty. I'm with International Longshoremen. Of course. We've been asking for trashcans for two years, and we ain't get them. There's a lot of things there that we could really just work with you. Chair Spence -Jones: Okay. Wonderful, so -- Mr. Canty: We're willing for y'all to come 'cause we want it to be a street that's outstanding. City of Miami Page 26 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 Chair Spence -Jones: Not a problem. And we'll -- Mr. Canty: Thank you. Chair Spence -Jones: -- work on getting you your trashcans there, sir, okay? Mr. Canty: Okay. Chair Spence -Jones: No problem. So any other discussion item at least on Northwest 2nd Avenue? Any other questions on that? Okay. So we're going to -- are you -- are we okay with directing Jim to at least come back with --? James H. Villacorta (Interim Executive Director, Community Redevelopment Agency): Well, again, this was going to be part of the meeting that we're going to have with Capital Improvements tomorrow -- Chair Spence -Jones: Okay. Mr. Villacorta: -- to discuss upcoming projects and what their recommendations would be. Once you get beyond 11th, Northwest 2nd jogs to Northwest 1st Place, which fork in the road to take and what the extent of the upgrade should be in the area. So I'd be happy to bring that back at the next meeting and authorize -- hopefully, have a resolution authorizing funding for the design work. Commissioner Regalado: Yeah, but -- Chair Spence -Jones: Okay, and -- Commissioner Regalado: -- what the -- Chair Spence -Jones: I'm not finished. Commissioner Regalado: -- Doctor is asking -- Chair Spence -Jones: Yeah. I was going to add on to that. Commissioner Regalado: -- is not to see the plan. She's asking for a letter of intent so she can go and get the permits on the three lots, and as a matter of fact, it make sense because if you're going to rebuild the whole 2nd Avenue and you are going to have another construction going on, they might work together in terms of infrastructure, sidewalks, and sewers, and this and that. So I'm just saying -- I don't know the details of it, but I'm just saying that it makes -- Chair Spence -Jones: I was just -- Commissioner Regalado: -- sense to have the same timeline for construction. Mr. Villacorta: I believe -- Chair Spence -Jones: I was going to actually recommend that you come back with some sort of recommendation regarding Dr. Fields' -- Mr. Villacorta: Lots and the -- Chair Spence -Jones: Yes, regard -- because, clearly -- I'm going to tell you, Doc, that I didn't get a clear understanding until I came in today because we were -- when this communication City of Miami Page 27 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 was given to me, it was about Block 36, and I'm like, we can't talk about Block 36, until Jim just did a little diagram for me -- and I think he did one for you too -- kind of -- Ms. Jenkins Fields: Yes. We included the diagram. Chair Spence -Jones: -- explaining what it was, so this is the first time that -- and I just don't want to do anything half. I would prefer for you to come back at the next meeting -- Mr. Villacorta: Sure. Chair Spence -Jones: -- but make sure that, you know, you come back on the next meeting with Dr. Fields involved in that process so that we can be clear 'cause this, for me, is -- I have some concerns about what I see, but I don't want to deal with it ten minutes before the meeting. Mr. Villacorta: Sure. Chair Spence -Jones: Have you --? I don't know if you guys have seen any of this. Have you --? Right, so for the next -- Mr. Villacorta: I'd be happy to come back at the next meeting with a recommendation as to the slot and where to begin, hopefully, with a resolution on the design for -- Commissioner Gonzalez: I do have a -- Mr. Villacorta: -- 2nd -- Commissioner Gonzalez: -- question. Do you have a design on 2nd Avenue yet? Mr. Villacorta: No -- Chair Spence -Jones: No. Mr. Villacorta: -- we do not. Chair Spence -Jones: We're just talking. Commissioner Gonzalez: All right. I believe that's a big mistake. In my district, as I'm working on one street, I'm getting the people designing and getting a proposal on the budget of the follow -- Is that correct, Mr. Aluko? And it has functioned -- Mr. Aluko: Yes, that is correct. There was a bit more planning on your -- in your district, Commissioner. Commissioner Gonzalez: Exactly, you know. Chair Spence -Jones: And that's the reason why I wanted to bring this now as -- Mr. Villacorta: Sure. Chair Spence -Jones: -- a discussion so that when they come back, they can make that kind of recommendation that, from a design standpoint, this is what's next, and from a construction stand -- I just didn't want this project to be completed and then we don't see another street being done in Overtown for another five years. Commissioner Gonzalez: That's exactly what will happen -- City of Miami Page 28 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 Chair Spence -Jones: So -- Commissioner Gonzalez: -- to you; that they will complete one project and then -- Mr. Villacorta: Stop. Commissioner Gonzalez: -- they will start designing the next project, bidding the next project, and it will take you two years before you commence construction on the second project. So that should be automatically; as you're doing one project, you should be working on the next project, design, cost analysis, survey, whatever you need to do, but you need to be able to not even complete one project. You need to -- when you're almost completing one project, you should be able to start the next project. That way you have a sequence. Chair Spence -Jones: And I think that is the overall purpose. From now on, we need -- Mr. Villacorta: Right. Chair Spence -Jones: -- to make sure that that happens, and I'm not really sure -- I think the first -- the street that we're working on now, at least in the Omni area, is North Bayshore Drive; that will be the next street. Mr. Villacorta: We have North Bayshore Drive north, North Bayshore Drive south; we have 14th Street. We have four more months left on 3rd Avenue, and this is that process of beginning the design work for Northwest 2nd, which would not -- it's not contemplated to be -- it has an extreme -- an upgraded -- you can see certain portions of the street look fine, and then you get a little further up -- Chair Spence -Jones: No. It's bad. Mr. Villacorta: -- and there's more -- there's areas that need to be reworked. The -- and I believe we're in that process now, starting the design of the next phase as we're closing out. Chair Spence -Jones: Okay. So you've gotten the recommendations to come back with -- Mr. Villacorta: A recommendation as to the lots and to -- Chair Spence -Jones: Northeast -- Northwest 2nd Avenue. Mr. Villacorta: Northeast -- Northwest 2nd Avenue. Chair Spence -Jones: Northwest 2nd Avenue. Okay. Can -- so we finished that issue. Can we deal with --? There was a concern that came up, Ola, regarding this current project, which is 3rd Avenue. Doc, is there --? He's going to come back at the next meeting re -- with -- Ms. Jenkins Fields: I didn't -- I heard two things, but I didn't hear the -- Chair Spence -Jones: He said the lots -- Ms. Jenkins Fields: Yes. Chair Spence -Jones: -- which would be the Lyric lots -- the lots in front of the Lyric -- Ms. Jenkins Fields: Yes. City of Miami Page 29 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 Chair Spence -Jones: -- and the other part of it would be Northwest 2nd Avenue. He'll come to the next CRA meeting with some sort of recommendation. Jim. Ms. Jenkins Fields: All right. And it's understood where the lot is because, again -- Chair Spence -Jones: Yes. We just -- Ms. Jenkins Fields: -- we are -- Chair Spence -Jones: -- understood it ten minutes before the meeting -- Ms. Jenkins Fields: Okay. Chair Spence -Jones: -- started. Ms. Jenkins Fields: What has happened in the past is that -- in February of last year, for instance, we submitted a letter to the CRA. We appeared before the CRA, and the intent for 50 feet on Block 36 was approved, and it was -- and we still didn't get that. I mean, we went through -- even I have letters to show that November -- from February to November, we were still asking for a resolution and we didn't get it, so -- Chair Spence -Jones: Right. I think -- Ms. Jenkins Fields: -- I am just -- Chair Spence -Jones: -- and again on that, Dr. Fields, I think we -- the whole conversation was centered around Block 36 and the litigation that's going on with that, and that's the reason why that portion is not moving. Mr. Villacorta: Right. We had discussed it. I think the Board was in favor of doing that. We had gone to Plat and Street Committee about vacating the alley. However -- Chair Spence -Jones: Okay. Mr. Villacorta: -- to make that officially happen required a completion of the replat. In the interim, the blocks were reverted by the County, and as I explained to Dr. Fields when she came to our office, that we no longer had the title to be able to replat those blocks, and that may be the impetus for moving her project to this new location. Chair Spence -Jones: Okay. Well -- Ms. Jenkins Fields: Thank you. Chair Spence -Jones: -- we're going to address it in the next meeting, Doc. Ms. Jenkins Fields: All right. Chair Spence -Jones: We promise. Ms. Jenkins Fields: Thank you. Chair Spence -Jones: Okay. We're going to stay on -- Mr. Canty, we're going to stay -- definitely, we're going to stay focused on what we need to have -- handle. I need to address this issue. I'm going to let you -- definitely, you know I'm going to respect you and let you speak -- City of Miami Page 30 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 Mr. Canty: Okay. Chair Spence -Jones: -- but I wanted to make sure that we stay on task for the agenda. And this item, quite frankly, wasn't an item on the agenda today, but we addressed it because -- out of respect for Dr. Fields. It will be on the next agenda, and we will address it at the next July -- June meeting, so that will be handled. Mr. Canty: Okay. Chair Spence -Jones: Okay? Mr. Canty: Well, that wasn't what I wanted to speak on. Chair Spence -Jones: Well, that is the only thing that we're speaking on -- Mr. Canty: No. I was speaking on what you were saying about 2nd Avenue. Chair Spence -Jones: Oh. Mr. Canty: As the Commissioner spoke up earlier about a design, you know, you can -- Chair Spence -Jones: Can you say your name for the record again for the Clerk? Mr. Canty: Ellis Canty, C-A-N-T-Y. You was [sic] talking about the designs and what have you. Say, for instance, once you put that on the streets, we got a lot of individuals that come there, even our building. Our building, the way it's looking, you can put the streets -- you can clean the shoes up, but what's in front of the building is not there. We haven't really talked to no one, and I was just hoping, in your planning stage, that y'all can sit down and talk with us -- Chair Spence -Jones: Yes. We'll -- Mr. Canty: -- before the next meeting. Chair Spence -Jones: -- we will definitely direct the director to sit down with the longshoremen to get your input on what needs to happen on Northwest 2nd Avenue. Mr. Canty: Okay. Thank you. 7. 08-00568 CRA REPORT UPDATE ON THE HOSPITALITY INSTITUTE. Cover Memo.pdf Back-up.pdf DISCUSSED Chair Spence -Jones: So I'm going to ask that we please just jump to -- if we can -- Ms. Grimes, we'll go ahead and take you for the next ten minutes -- I don't know if we have any other people from the Hospitality Institute -- and then we'll go ahead and deal with the business of the CRA (Community Redevelopment Agency). Julie Grimes: Thank you, Commissioners. Good evening. I just wanted to update you on the activities of the Hospitality Institute Program. I'm here on behalf of the advisory board and all our partners that are working with us in this great effort. If you recall, about a year ago we were in front of you discussing a program we wanted to launch in the inner city where we could create a bridge of job opportunities in the local hospitality industry with individuals living in the City of Miami Page 31 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 inner cities. So what we've done is we've gone out and we've actually started up an office right in the heart of Overtown, on 8th Street, the Greater Bethel Church, and we're conducting training sessions there on basically every -- bi-monthly or every month, we go out and we present customer service training. We work in conjunction with Miami Dade College. We brought in also the Convention and Visitors Bureau are with us. They are -- they have their 'Miami Begins with Me" program that they brought into the sessions. And also, we are working with a lot of hoteliers and different companies within our area to try to engage the business community with the inner city, with the CRA communities that have been long neglected. And this program has really had a lot of great successes. We ran several pilots through last summer before we even had the office officially opened, and we had at least 30 people employed through that process, and now we've been able -- since we've hired a director, Ms. Jean Westfall (phonetic). I don't know if all of you know her; you should by now. She's an icon in the tourism industry here in Miami, and she was formerly with the Miami Chamber of Commerce and accepted a position as director with this program, and she's coordinating the efforts of you know, hundreds -- not hundreds ofpe -- there's hundreds of people involved, but with all the outreach programs we work with -- we're working with Lotus House, Camillus House, Veterans Employment Transition Services, Carrfour Housing -- every organization that you know is working in the inner city, that's who we are bringing in. The people that go through those programs, we want to have job opportunities and educational opportunities available to them when they come out of these programs. So Jean organizes and coordinates all these efforts so that after the training is completed, if they don't receive a job right away -- because we run a mini job fair after two days of training right in the church, and we follow up with all the people that have participated, both the business side of the organization and the people themselves, to try to make sure they either follow up with the employers to do their best to get a job, or with Miami Dade College, they've offered scholarships into training at the college. We're also working with the VIK (Very Important Kids) program at the Convention Bureau, which offers scholarships as well, and there's many that are just, you know, learning about getting a GED (General Education Diploma), and we're assisting them in that process as well. So it's really been an exciting effort. I've never seen -- I'm sure you see it often here at the CRA, but to see the community come together the way they are and the business community responding to this cry for help; that finally we're trying to really engage what's happening in the business community to try to improve the conditions within our inner city here in Miami. Chair Spence -Jones: Well, first of all, I want to applaud you, Ms. Grimes, for all of your work, along with -- I don't see Charles Cutler, the Veterans association that has been working along with you, and Camillus House. I mean, literally, this started out as a pilot project. And I don't know if you guys have had a chance to at least go to some of the training and workshops that they've been doing, and they've been -- Julie and her whole team has really been just volunteering their time from the Doubletree, just really involved in this. Just to see the number of people going through these workshops in the basement of the church -- I mean, I went there and I was just astonished to see 70, 80 people showing up to go through these workshops and then be placed on jobs. And that's what this is all about. And this really started from an article that ran in the Miami Herald a few -- almost a year ago, where they were talking about sending - - actually getting employees from the Philippines and other places outside of the US (United States), and this whole idea came or sparked from that. Why are we sending for employees from other places when people right here in the heart of the City need jobs. And so, I just want to commend you for all of your work and your commitment to making that happen. And of the challenges I know that we're seeing now is that many of these people that get placed need support services to go along with that to make sure they stay on the jobs, so that's something that we're going to be looking at, I know, in the second phase of the project; but I want to at least yield to my colleagues, if they have any questions or comments about the Hospitality Institute. Any questions? Ms. Grimes: Just a point I didn't mention. But there was a lot of media interest in this story from a national standpoint, especially -- the Herald did run an article on the Institute, which was City of Miami Page 32 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 great. We had a lot of local response to that, but you know, we've had other communities coming to us to see how they could set up something similar, and Broward is looking at getting something like that going, among other cities, so I think -- you know, it is something that seems like -- well, we should have done this already but we haven't, so I would encourage, please, anybody that's interested to come and see what's going on over there at the church. In fact, this week we have a training program going on, so we're out there, and we have -- already 110 people that are interested in coming. I think we'll have a overflow at the church -- Chair Spence -Jones: Good Ms. Grimes: -- this week. Chair Spence -Jones: And with tourism being the number -one industry, it only makes sense for us to train and prepare people for these type of jobs. Commissioner Regalado, you're recognized. Commissioner Regalado: Thank you. I just want to say that what you done is extraordinary, and also with a vision. The only industry that is surviving in the state of Florida is the hospitality industry. Disney World is up in revenues in 30 percent, and our hotels are booming, as you know. Ms. Grimes: Yes. Commissioner Regalado: And yet, everything else is like down. It is because, as you know, the Euro and the dollar and the disparity between our dollar and other currencies, and this is not going to happen in the next -- change in the next three or four years, so the only thing that we can hope for and hold on to it is the hospitality industry, and the way you're running this, I think it's extraordinary because we have the climate; we have the sights. We just need the people to feel other people comfortable, and the training is what it's all about. So I think it's a great idea, and I think we should support it as much as we can because it's a lifesaver of the community. That's the reality. Ms. Grimes: Well, we're saying it's connecting communities through hospitality, and hospitality is what Miami's all about, so we'd like to see the people here flourish the way this City has. Chair Spence -Jones: Well -- Ms. Grimes: Any questions? Chair Spence -Jones: -- thank you, Commissioner Regalado. Any other questions or comments to Ms. -- Commissioner Regalado: No. Chair Spence -Jones: -- Grimes? Ms. Grimes: Thank you. Chair Spence -Jones: Okay. I just want to add, just as a part of one of the missions that we've, at least in the last two years, focused our energies on, is creating training programs for the individuals that live in the community. We think it's extremely important. We have the Hospitality Institute that's up and running. We have the landscape institute with Dr. Dunn that's doing real well in the area teaching individuals about landscaping. We soon will be launching a, hopefully, construction institute with FDOT (Florida Department of Transportation) with all of the plans that they have going on. So the idea is to -- you know, we can't -- you know, we have City of Miami Page 33 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 to train people so that they're prepared for the future, so all of these inistututes are very important. And so we're glad to have Hospitality Institute kicked off and doing so well. Thank you so much -- Ms. Grimes: Thank you. Chair Spence -Jones: -- Mrs. Grimes. You must have heard us say CIP (Capital Improvements Program). Commissioner Sarnoff Yeah. You noticed? Chair Spence -Jones: Did you hear your name or something? Oh, okay. Were you scheduled to be here tonight? Ola Aluko (Director, Capital Improvements Program): It's a CRA meeting. I just decided -- Chair Spence -Jones: Oh, wow. Well, we won't put you on the -- we just were talking about you for 15, 20 minutes before you got here, but because we know that you will go a little -- your conversation will be a little longer, I just want to cover some of these issues real fast, okay? 8. 08-00569 CRA PRESENTATION PRESENTATION BY TRINITY EPISCOPAL CATHEDRAL, INC. REGARDING REPAIRS TO THE CATHEDRAL. Cover Memo.pdf Back-up.pdf CONTINUED 9. 08-00372 CRA PRESENTATION PRESENTATION BY DOWNTOWN MIAMI MALL, LLC REGARDING RENOVATION OF THE OMNI MALL. Cover Memo.pdf Backup.pdf Cover Memo.pdf Cover Memo.pdf PRESENTED A motion was made by Commissioner Gonzalez, seconded by Commissioner Regalado, and was passed unanimously, with Chair Spence -Jones and Commissioner Sanchez absent, to direct the Interim Executive Director to negotiate an agreement with the developer and bring said agreement back at the Community Redevelopment Agency meeting currently scheduled for June 30, 2008 for approval. Vice Chair Sarnoff Okay. We have one last item, item number 9, which is the CRA (Community Redevelopment Agency) presentation by Downtown Miami Mall, LLC (Limited Liability Company), regarding the renovation of the Omni Mall. Okay. Seeing they're not here, we're done. Just kidding. This is continued? James H. Villacorta (Executive Director, Community Redevelopment Agency): No. Vice Chair Sarnoff Number 9 is continued? Priscilla A. Thompson (Clerk of the Board): No. City of Miami Page 34 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 Commissioner Regalado: No. Mr. Villacorta: No. It was -- this is the one that she wanted to hear because it had been rolled so many times. Vice Chair Sarnoff.- Who's providing me that bad information? Commissioner Regalado: No. Mr. Villacorta: The surveyor. Commissioner Regalado: What she said is that this has been continued -- Vice Chair Sarnoff.- I know. Commissioner Regalado: -- like ten times. Vice Chair Sarnoff Well, they're here. Mr. Dotson's going to be ecstatic. Al Dotson: I will be brief as a matter of fact. You know that won't happen. First, for the record Al Dotson, with Bilzin Sumberg, offices at 200 South Biscayne Boulevard. I'm joined here by my partner, Vicky Garcia -Toledo and my associate, Steve Wernick. The item on the agenda relates to our client's redevelopment of the Omni, and we've had the pleasure of working with your staffs to come up with an incentive -- an economic incentive plan that is 100 percent performance based. We've looked at the redevelopment of the Omni over the years, and we've gone through some of the zoning approvals. We've talked to our client about their redevelopment of the project and their investment in the project and the opportunity for the CRA to partner in this redevelopment plan. And through that, we've had a chance to present to you a $142 million investment that's about to take place, some of it is underway, that includes an office component, a retail component, the hospitality component, which is the hotel, the Hilton that's being continually remodeled, then there are construction jobs and Omni management jobs. The key part here is that this particular redevelopment project hits many objectives of the Omni CRA, including the investment itself and the jobs that will be created through the office retail and hospitality components. While there will be some jobs created by the construction, temporary jobs, 500 to 600, we expect, the most important part of what we're here to present to you are the permanent jobs that will be created by this development. And we're estimating in the office component about a thousand jobs; on the retail side, between 290 and 350 jobs, for a total of between 1,800 to 2,000 jobs, and that includes both the permanent and the temporary jobs at this site. We are asking that the CRA invest in this redevelopment only on a performance -based basis; no upfront money. We're saying that we're looking to invest 142 million or more in this site to redevelop and create these jobs. If we do that, we're asking that the CRA invest 65 percent of our increased tax paid to the CRA. In other words, if we don't perform, we get zero. If we don't construct, we get zero. If the assessed value doesn't go up, we get zero. But if we perform -- and only to the extent we perform -- there would be a percentage of 65 percent that would come back to the developer to help offset some of the development costs and the job creation opportunities that we are providing. Thirty-five percent of the incentive -- 35 percent of the increased tax would remain with the CRA. Thirty-five percent of the increased tax base would remain with the CRA, and 100 percent of the current base would remain with the CRA. So, if we invest, we'll increase the tax increment; we will increase the payments to the CRA, and we're asking for a 65 percent incentive. Now we've had the chance to brief the staff extensively on this. I can go through the presentation. I know that time is limited. We will take your lead -- or follow your lead with respect to the extensiveness that we go through each of these slides. Commissioner Gonzalez: That 65 percent reduced to dollars, how much are we talking about? City of Miami Page 35 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 Mr. Dotson: We did -- we have an estimate. What we did is we looked at a hundred million dollars because it's easy to compute to give you an idea of what it would look like on today's millages. Commissioner Gonzalez: I'm going to make it very simple, you know. You're saying that you're going to invest a hundred and how much? Mr. Dotson: Hundred and forty-two million. Commissioner Gonzalez: A hundred and forty-two million dollars. My question is, how much are you looking for us to invest on your project? Dollars; 20 million, 40 million, 60 million? Mr. Dotson: It would be -- let's say at 142 million, we're talking roughly $7 million. Commissioner Gonzalez: So you're looking for us to invest $7 million? Mr. Dotson: Only if we perform up to 142 million in assessed value and we pay the taxes, then yes, the 65 percent is roughly about $7 million -- Commissioner Gonzalez: All right. Mr. Dotson: -- over a ten-year period of time. Vice Chair Sarnoff When do you start your TIF (Tax Increment Fund) increase? Does your TIF increase start from the time you build, or are you going all the way back? Mr. Dotson: We're not going all the way back. And in fact, we're -- we've already began some of the investment. As you know, this application has been pending for about a year, year and a half. That's really our starting point. Vice Chair Sarnoff So '07? Mr. Dotson: '07. Commissioner Regalado: Chair. Vice Chair Sarnoff Yes, sir. You're recognized. Commissioner Regalado: Thank you. There was a time when Biscayne Boulevard was thriving, and it is not now. It was back when the Omni was at its best. Actually, it has Les Violins next to it and the small cinema that we all went, and let me tell you. There has been a debate about why the CRA should invest four hundred and some million dollars in this beautiful (UNINTELLIGIBLE) hall, and it's all about bringing people. It's all about anchor, an anchor project, and yet, we have sort of a empty building that could become the biggest anchor for progress in the Omni area and throughout downtown area because this place brings beautiful people and people that do love the arts. But I remember the Omni and I remember my Sundays when my children [sic] were eight and nine years old, that we went, have lunch, take them to the carousel, went to the movies, went to the stores, and left like 7 or 8 at night, after having the car parked a few steps from the stores and all that. So what I'm saying is that I think that we should -- I will support this investment. It's a no-brainer. It's an investment that will guarantee that all kind of people, poor and rich and from the Grove or Aventura, will come to this area to buy, to play, to work, so you know, I think that if we all were so enthusiastic about investing in this anchor, the Performing Art [sic], I think that we should also support that. I just hope that you all can bring back the Omni to life because it brings memories to many people, and it brings us -- City of Miami Page 36 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 Commissioner Gonzalez: Ready? Commissioner Regalado: -- so let me rewind. I would hope -- Mr. Dotson: Memories to many people. Commissioner Regalado: -- I just hope that you bring back the Omni to life, I really do. I think you have a lot of courage that you are betting on Miami, that you are betting on the Omni area. And so, I don't know what is next. Mr. Chair, it's your area, but I will tell you, I'm biased about the Omni because I have very, very good memories, and I just hope that the Omni could be what it was. If it's half of what it was in the future, I will tell you that many people will be happy. Thank you. Vice Chair Sarnoff Go ahead. You're recognized. Commissioner Gonzalez: I don't have any problem -- well, I don't have any problem voting on this item, but I would love to have a full board voting on this item, especially the Chair should be here and the other board member should also be here. But let me tell you -- and I'm going to be quite honest with you. Once again, you know, I'm going to keep insisting and saying it, and my term might expire and I might not see any changes in the CRA, but we seems [sic] to be debating -- every time I get this agenda, and that's why I get so frustrated -- every time I get the CRA agenda in my office, I really get sick because it's 4 million here, 10 million over there, 44 million in the other, 6 million -- and I don't see the interest and I don't see the agenda of really improving Overtown. I don't see it. I haven't seen it. I haven't seen it with your administration. I haven't seen it with the prior director or the other director. I haven't seen it with any of the directors of the CRA for as long as I've been Commissioner, and maybe a little bit longer, when I was not a Commissioner and I was already going to City Hall to the meetings, but you know, I guess if the rest of the Board feels comfortable with this situation and feel comfortable with this happening, hey, listen, you know, I'm just one vote. I'm just one simple vote on this Board, just another member, just one member. But let me tell you, it really frustrates me. It really makes me sick to see that this community that has been neglected for so many, many, many years, as my community ofAllapattah was, still don't receive what they deserve and still don't see the same progress and the same advances that every other area in the City of Miami has seen, and I feel very bad for them. And I hope eventually this one day will change. Like I said, I'm going to repeat to you, I don't have any problems with this item, but I would like to have a full board before approving this item. And it's not because I care about the Miami Herald because the Miami Herald is ten -- you know, it's about to disappear sooner than later, so I don't care what they write, okay? They wrote a very negative article about the water park in Grapeland, and you know what? We had 18,000 people attended that park on the weekend. Tell me where in the City of Miami you have any park or any other attraction where you have 18,000 people in two days. So -- as a matter of fact, I'm planning to take pictures next weekend to send them to the Miami Herald to see if they finally, you know, decide to admit that the City of Miami has done something fabulous. Commissioner Regalado: But I -- I understand your frustration. Everybody, I think, shares your frustration. But this is about the Omni CRA, which is the one supporting this, this same building. Commissioner Gonzalez: Yeah. Commissioner Regalado: Not the Southwest [sic] Overtown CRA. Commissioner Gonzalez: But that doesn't mean that I supported this building because I didn't. Commissioner Regalado: No, no, no. I understand that, but what I'm saying is that we're acting City of Miami Page 37 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 as two separate entities because what people may not probably understand is that the money cannot be used past the border or allocated to other -- and I do respect that all board members should be here. Actually, we waited for the Chair -- Vice Chair Sarnoff to come so they can have the presentation and I think -- I just hope that we can do something at least tonight because progress shouldn't wait to accommodate people that have other schedules. I don't know the ideas and the input of the residents of the Omni, and that is for Commissioner Sarnoff, who is the area Commissioner, to say, and people like Fred to make us understand. I'm just saying to you that I think that the building is there and if somebody wants to take a chance, I think that we should support it because if that plan is -- I'm not sure about the fiscal return and all that. I'm focusing on mixed use, a Hilton, a -- stores, offices, restaurants, which, by the way, is what it had before, and the hotel, you know. Let me remind you that probably -- since we are on this history trip -- that hotel banquet hall have seen several presidents of the United States, several presidents of the world that have come to that hotel because that was the in thing, you know. It's either that or the Radisson by 72nd Avenue. So I'm just -- I just hope to hear the Chair, the area Commissioner -- but I'm telling you I think that we should not pass this opportunity. Commissioner Gonzalez: I -- let me add that -- you got my support, but all I'm asking is that, you know, maybe at the next meeting, the first item on the agenda be this item. If there needs to be any discussion then -- but then we vote. We all vote on the item. Vice Chair Sarnoff No. I -- Commissioner Gonzalez: But you have my full support on it. Vice Chair Sarnoff -- agree. Let me just make a couple of observations. The Omni CRA is obviously the more affluent CRA, and it obviously is the CRA that has promoted a significant amount of growth and has a significant amount of TIF. And to me, the Omni CRA needs to be a catalyst for jobs because if it's not a catalyst for jobs, then really, what's its point? What's its purpose? I mean, there are going to be and there need to be some roads that still need to be improvement, some infrastructure that needs to be redeveloped, but the one thing I -- that I will make an observation of since I've been Commissioner is probably -- and I'm certainly a Cub Scout compared to you guys in terms of length of time -- is that we don't do enough to attract jobs, and we don't do enough in the City of Miami to create jobs. And I'll make an observation to my fellow Commissioners. You know, when I was a kid, first you got a job, then you got a car, and then you got a house. In the City of Miami, first you get a car, then you get a house, and then only if you need to do you get a job. And it seems like there's a sense of entitlement in the City of Miami. Let me just finish. I -- Commissioner Regalado: I just going to say you get a car without insurance and a house in foreclosure. Vice Chair Sarnoff And then -- you got it right. So I think the one thing we need to do is not give fish, but provide a fishing hook; you know, not give time and time and time again economic benefits to people, but create an opportunity for them, and they may fail, or they may succeed. We had some people here earlier today in the hospitality industry telling us of a success, and there will be failures. And for those failures, so be it. Some people really don't want to work. You know, there -- I always say there's two kinds of people in Miami: those that work and those that talk about working. And you need to start finding out who are the people that only want to talk about working versus those that really want to work. And that's something, as a City Commission, as a CRA, we need to be tougher on. Now let me be tough on you 'cause I thought this is where the -- Commissioner Gonzalez was going. I don't care about your temporary jobs, truthfully, no disrespect. I do care about your permanent jobs. The way I calculated it, it's about 1,300 permanent jobs is what you're telling us. Of 1,300 permanent jobs -- and l couldn't do the math quick enough -- and you are getting $7 million, what is -- what are we paying for those jobs? How much? City of Miami Page 38 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 Mr. Dotson: First of all, let me just make sure you're clear on the number of jobs. These are all new jobs. I'm not counting any of the existing jobs at the site, so the investment only goes to the new jobs. Second I want to clam another point, that we've also included in here an incentive for the employers to hire people who live in the Overtown CRA district, the Southeast Overtown/Park West CRA district, the Enterprise Zone, and the Empowerment Zone. Many areas that Commissioner Gonzalez was talking about that may not get the benefit of some of these incentives, we've added an incentive here. And quite frankly, that was the result of working with many of your staffs who recognized this was an opportunity to do just that. Now the cost per job. It's difficult to answer that question for two reasons. We may create all of these jobs but may not have to invest 142 million. We're -- we have a box that exists. We have retail space that we're going to be renovating, and we have a hotel that we're rehabbing. The hotel's going forward. The retail space -- that's part of the plan, and we may end up with all these jobs and may not spend as much. It's a fluid formula, quite frankly, because it's all based on performance and the assessed value going up and down over time. So I can't give you a number at this time (UNINTELLIGIBLE) -- Vice Chair Sarnoff Well, we're not voting on it tonight 'cause out of respect for the Chair, she should have her say, and Commissioner Sanchez should have his say, and I -- we will vote on this next time, but I think you should come in with a range. I think before any Commissioner votes, he should have an understanding -- and I'll go back and do the math myself but I would suspect you're going to be doing that for us and selling it to us, but I want to know the range of what it is you want from us, what we can expect and what that will be per job. I don't think any Commissioner up here is intending on giving out 20, $30, 000 for a $14, 000 a year job. I don't think that's our intention. Retail, we know, doesn't pay quite as well as we would hope. Hospitality, oftentimes, doesn't either, but I'll say this. Twenty-two or twenty-three thousand dollars a year is a whole lot better than nothing. And we're at that stage, I think, in Miami where a lot of people are just not earning anything. On the other hand, you do -- I know -- and I've seen your presentation, and there are some jobs that are going to be very well paid jobs. I just think we need to have an understanding, and you should be able to present to us what is the cost, what is the range 'cause I don't think we ask those questions all too often enough. In other words, what can we expect to get for our TIF revenue. And the one thing I think everybody's comfortable with here, Mr. Dotson, is that if you don't create the job, you don't get the TIF, and that's a nice place to be, which is on the back end versus the front end. 'Cause the front end -- we're always asked to go for the ride. We're always asked, give us 10, $20 million, and the next thing we know, my observation from 18 months, the first thing we know, I need a motion to continue this, and then from that motion to continue, I need an extension of time, and then by the third extension, it comes back to us, I need another $5 million, and it almost seems like, for whatever it is. So the nice part of your presentation is we're on the back end; first you pay your TIF or you pay your taxes, and then you come back to us, you say but I've created, I don't know, 200 jobs, 300 jobs, and for that I will get so much TIF revenue back. That's the comfortable part, but to make a good, informed decision, for us to do our due diligence, I think we need to know the range of the jobs that we're expected to pay for. Mr. Dotson: Okay. You do see in front of you, I believe, the chart that gives you the range -- the salary range of the jobs that we're going to be creating, starting at the top, and again, these are the permanent jobs; the management -- and these are all new jobs -- ranging from 30,000 to 150,000 a year; the big -box retail, between 20,000 and 75,000 a year, that's 250 to 300 jobs; and the small- to mid -level retail, 40 to 50 jobs, between 20 and 75,000 a year. And we've also included what Miami and the County's medium household income is so you can get an idea. Partly because one of the issues was that some of the incentive programs and some of the incentives that counties and cities have given out in the past have not gone to increase the opportunity for people to get good -paying jobs, and in this particular opportunity with a mixed use, with office and hospitality and construction and retail, you have the opportunity to create jobs from 20,000 all the way up to 150, 000, depending on the type of job, and that's why the City of Miami Page 39 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 price per job -- I can give you a number. We can just average the numbers out. We can definitely do that, but there are different types of jobs, and every job is not going to pay the same amount. So you can't look at this and say it's going to be 20,000 per job to create a $14, 000 job when you may have a $100, 000 job on the other end of the spectrum. But we're happy to do that math, but I wanted to put it in context with the range of jobs we're creating and the range of salaries we expect from those jobs. Commissioner Gonzalez: Mr. Chairman. Vice Chair Sarnoff Yeah. Go ahead. Commissioner Gonzalez: All that data that the gentleman is presenting to us now, we should have it in our backup document, and I don't have it so -- Mr. Villacorta: Mr. -- Commissioner Gonzalez: -- I hope that you submit it to me for the next meeting. Mr. Villacorta: You have the term sheets behind -- Commissioner Gonzalez: Yeah, but not the quality of jobs -- Mr. Villacorta: Sure. Commissioner Gonzalez: -- and the job creation. I don't have any of that in the term sheet. Mr. Villacorta: Sure. Well, the idea -- this was going to be a discussion -- Vice Chair Sarnoff Right. Mr. Villacorta: -- to see if you wanted to proceed with this item. There's also issues of funding. I mean, I think this is a good way to fund projects because it's performance based; you don't get the TIF if you don't do anything. However, to pledge the TIF for multiple years will probably require approval by the County. That results from our interlocal agreements. Vice Chair Sarnoff Would that mean a full -- would that be a full-blown presentation to the County at the County Commission? Mr. Villacorta: Typically, what happens is to pledge the TIF beyond one year or to take on debt, the CRAs include that in their budget for the year and -- Vice Chair Sarnoff So when the -- Mr. Villacorta: -- the budget committee approves it, and the Commission -- the County Commission takes up your budget and approves it and it's done in that manner. If we were to do it in between a budget year, it might have to go as its own item before the County Commission. Also, this talks about 65 percent of the ad valorem taxes generated but we only get 95 percent of the total, so there's some things that need to be tweaked in here; the 35 percent that remains is what would be skimmed off the top for the PAC (Performing Arts Center). This has bonuses of two percent for every five percent employee hires that are outside the CRA up to a ten percent max. That would -- to pay that bonus would be taking TIF from other properties. The -- in the Omni CRA, it's a -- this sort of financing is a little more possible. In Overtown, the buildings along Biscayne Boulevard are what's driving the funding to rebuild Overtown, so it's harder to engage in this sort of incentive in the Overtown CRA. And that's also a reason why Overtown has been slow to see the benefits is that those buildings have been much longer in coming than City of Miami Page 40 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 was first contemplated when the CRA was created and when the old arena was built, and it was thought that that would spark the revitalization. You know, we are concerned about the slow development of Overtown. I think in the last year -- I mean, with the 3rd Avenue project, with the facade program along 3rd Avenue, with the support for the businesses under the previous administration, there's been $8 million committed to the Overtown CRA, which has gone mainly into the Overtown side, not Park West. The area is starting to see some of the benefits, but there was a time when the TIF generated by the Overtown CRA dropped. There's -- the leg that was added to the CRA has never generated any money, any TIF increment because the office building that was in that leg was converted to a courthouse and came off the tax rolls. The federal courthouse came into that area. So it is frustrating, and I understand your frustration, and we are trying to do these sort of incentives to some apartment developers to come into the Overtown CRA. The Crosswinds project was a major effort so -- Commissioner Gonzalez: I think that's exactly what you need to start doing or to begin doing, you know, start looking for investors and start promoting the area and try to get people to come in and invest, you know, and even if we have to match contributions for new development, but you know, we need to start moving the Overtown area. Mr. Villacorta: Yes. Vice Chair Sarnoff Well, let me -- 'cause you're answering Commissioner Gonzalez's question regarding -- I think you're feeling a little wounded when you were answering his question -- Mr. Villacorta: I'm trying to. Vice Chair Sarnoff -- regarding Overtown. Mr. Villacorta: Yes. Vice Chair Sarnoff And I think -- Mr. Villacorta: Well -- Vice Chair Sarnoff -- it's better suited for you -- no disrespect, Jim, and I know you're trying to defend yourself -- but to do that privately with him 'cause -- Mr. Villacorta: Sure. Vice Chair Sarnoff -- but I understand your desire -- Mr. Villacorta: No. Well, I was explaining the difference why we can do this in Omni where we may not be able to do it in Overtown, and -- Vice Chair Sarnoff Understood. Mr. Villacorta: -- again, this is going -- this will probably require approval of the County Commission as well -- Vice Chair Sarnoff Let me -- Mr. Villacorta: -- and there's some tweaking that needs to be done -- Vice Chair Sarnoff Okay. Mr. Villacorta: -- but we could bring a proposed agreement back to the Board. City of Miami Page 41 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 Commissioner Gonzalez: But let me tell you. I was very clear when I said that it wasn't personal with him. Mr. Villacorta: No. Commissioner Gonzalez: It was with the prior executive director and the prior executive director, you know. I mean, it has been the trend of Overtown ever since I'm a Commissioner and long before I became a Commissioner, so -- Mr. Dotson: Mr. Chairman, may I beg your indulgence on two points real quick? One, I had the math done for me 'cause I'm a lawyer and not a mathematician. Vice Chair Sarnoff You suffer from the same infirmity that I do. Mr. Dotson: That's right. Fifty-four hundred dollars per job, if we end up at the 1,300 job range and we fully perform at $7 million and get back 7 million. And also, we took into account the 90 percent that the executive director is mentioning in calculating that 65 percent back, so we did take that into account in these estimates that we're putting out to you. Vice Chair Sarnoff Let me just tell my fellow -- 'cause this is just a discussion item and just to tell you what I'm inclined. I'm not inclined to include construction jobs. I don't mean that disrespectfully, but construction comes, construction goes. I'm interested in permanent jobs that remain here in the City of Miami. I'm not very big on bonuses. I would like to see you still do it. I understand your desire for a bonus, but I'm just giving you maybe a contemplation of where my vote will come from. Mr. Dotson: Okay. Vice Chair Sarnoff All right. Anybody -- Commissioner Gonzalez: All right. Vice Chair Sarnoff -- further discussion on this? Commissioner Gonzalez: I'm ready to make a motion to continue for the next CRA Board meeting. Commissioner Regalado: Second. Mr. Villacorta: And -- Commissioner Regalado: The motion will be -- I'll second it. -- to bring back a -- Mr. Villacorta: Proposed agreement. Commissioner Regalado: -- full report where we can vote so they can proceed, and if they have to go to the County, they have to go to the County, but at least that they get -- in the next meeting, that they get a vote whether or not they should move on with the -- all the issues that they have. Vice Chair Sarnoff And with the understanding, I would hope, that each Commissioner would get a briefing -- Commissioner Gonzalez: Yeah. City of Miami Page 42 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 Vice Chair Sarnoff -- beforehand, and I mean a full briefing, and hopefully, with a good hard look at some of the things that were suggested here today. Mr. Dotson: We do appreciate your input, and we've been trying to respond to the input as we've received it. We will continue to do that. I just want to get a point of clarification on the next meeting. When -- what is coming back to the next meeting? Is it --? Vice Chair Sarnoff The vote. Commissioner Regalado: What I hope that it would be coming back is the approval of the project with the incentive, with the -- you know, what you proposed, what the CRA proposed. What I was hoping is that the full board could, in the next meeting, be voting yes or no -- Commissioner Gonzalez: Exactly. Commissioner Regalado: -- in which -- you know, in that case, you can start developing or look for another building because -- Mr. Dotson: That's -- thank you very -- Commissioner Gonzalez: Well, actually, according to Mr. Villacorta, even if we voted yes, they will have to go to the County and then -- Vice Chair Sarnoff Right. Commissioner Gonzalez: -- that will be another issue. Commissioner Regalado: Yeah. But they won't be able to go to the County until we vote -- Commissioner Gonzalez: Oh, yeah. Commissioner Regalado: -- yes or not on the project, and -- Commissioner Gonzalez: I agree. Commissioner Regalado: -- it's -- so I think it's important for them and it's important also that we send the message to the County that the CRA Board supports the project, if we were to support the project. I -- personally, I support the project. I think that if we're looking at catalyst for development, not even for jobs -- and I understand -- Commissioner Sarnoff have been very clear always since day one that creation of jobs is the paramount concern that he has, and I think that this is what the CRA should do, but this is not only about creation of job, which we will be very forceful on that (UNINTELLIGIBLE), it's about bringing people to the Omni area. I just don't -- just don't make me talk because, you know, people that will come to one place and leave immediately, but in that -- if everything is going to be like that, it will be, you know, guys, people working, people buying, people eating, people attending parties and weddings and sweet 16s and conventions and everything that we can offer in downtown. And frankly, if they do okay, this will do better because the people in the hotels, the concierge, will be offering tickets so they can fill the empty places here, but we -- I think we should decide and that's it in the next board. And that's all -- that would be my second to your motion that we bring everything, we vote yes or no, vote it down, vote it up, and then they can move on and go -- Commissioner Gonzalez: On the creation of jobs and bringing people back, it's also important that we try to do the same thing for the Miami River in my district. It's very important that we have the same mentality and the same desire to create new jobs and to bring people back to that City of Miami Page 43 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 community. William R. Bloom (Special Counsel, Community Redevelopment Agency): Again, to clam the resolution, it's to negotiate an agreement with the developer and with -- Commissioner Regalado: And bring it back -- Mr. Bloom: -- executive director -- Commissioner Regalado: -- for a vote -- Mr. Bloom: -- and bring it back to the Board for consideration -- Commissioner Regalado: -- of the Board -- Commissioner Gonzalez: Correct. Mr. Bloom: -- at the next meeting. Commissioner Regalado: -- so they can proceed or suspend the project. Vice Chair Sarnoff All right. We have a motion; we have a second. All in favor, please say aye. The Board Members (Collectively): Aye. Vice Chair Sarnoff Any further -- Commissioner Gonzalez: And motion to adjourn. Vice Chair Sarnoff Yeah. I don't see any further business. Motion to adjourn. Do we have a second? Commissioner Gonzalez: Sec -- motion to adjourn. Vice Chair Sarnoff All in favor, please say "aye. The Commission (Collectively): Aye. Commissioner Regalado: No second, so we cannot adjourn. Vice Chair Sarnoff That was fun. NON -AGENDA ITEMS NA.1 08-00591 CRA DISCUSSION CHAIR SPENCE-JONES THANKED THE ADRIENNE ARSHT CENTER FOR THE PERFORMING ARTS FOR DONATING SPACE FOR TONIGHT'S COMMUNITY REDEVELOPMENT AGENCY (CRA) MEETING. DISCUSSED Commissioner Regalado: I just have one -- Chair Spence -Jones: Sure. City of Miami Page 44 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 Commissioner Regalado: -- small economic question. Jim, are we paying for the rent of this hall? James H. Villacorta (Interim Executive Director, Community Redevelopment Agency): No. The Performing Arts Center graciously let us use it without a charge. Chair Spence -Jones: Wow. Is the Performing Arts Center here? Mr. Villacorta: Other than for the food. Chair Spence -Jones: Thank you so much for donating your space. Commissioner Regalado: Well, thank you. But -- Chair Spence -Jones: This is Commissioner Regalado's first time in the building. Commissioner Regalado: Exactly, exactly. Chair Spence -Jones: I thought he was going to melt when he walked in. Commissioner Regalado: I know. I said -- I was surprised when I heard that -- 'cause if it's free, how come we didn't meet before here and we pay rent for other halls? Chair Spence -Jones: I'm not really sure. All I know is -- I said to -- in the staff meeting, I said I think that it's important if we're, you know, funding projects and things are taking place within all of the CRAs, that we need to be able to go to all these facilities. So I just actually requested this in one of the staff meetings 'cause I thought it was important for us to at least come at least once. I don't think we pay at Frederick Douglass. We pay there? Mr. Villacorta: No. Unidentified Speaker: No. Chair Spence -Jones: Okay. All right. Mr. Villacorta: And actually, even the Doubletree doesn't charge us for the room if we buy the food Chair Spence -Jones: We had to pay for the food, though, today, right? Mr. Villacorta: Yes. Chair Spence -Jones: Okay. We had to pay for the food, Commissioner Regalado. Commissioner Regalado: Here? Chair Spence -Jones: Yeah. Have you had some yet? Commissioner Regalado: Huh? Chair Spence -Jones: You're going to eat it? Commissioner Regalado: Well, I will because it's about $5 million in food here. City of Miami Page 45 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 Chair Spence -Jones: You could take some home with you, okay? Or to the homeless people; they need it. But thank you, Performing Arts District [sic], for hosting us. Val -- I see her. You can raise your hand and be seen. Valerie Riles -Robinson: Our pleasure. Chair Spence -Jones: We really appreciate it. And now that we know it's free, we'll come more often. Ms. Riles -Robinson: Anytime. NA.2 08-00592 CRA DISCUSSION BRIEF DISCUSSION REGARDING THE IMPACT OF TWO CONSTITUTIONAL AMENDMENTS ON THE COMMUNITY REDEVELOPMENT AGENCY (CRA) BUDGET. DISCUSSED Direction by Commissioner Regaldo to the Interim Executive Director to provide a report to the Community Redevelopment Agency (CRA) Board regarding the impact that two Constitutional amendments will have on the CRA budgets. Commissioner Regalado: If I may. Chair Spence -Jones: Sure. Yes, sir. Commissioner Regalado: Now that we're in the issue of Tallahassee, I think it's important now to start working on a report for the board members of what impact the two Constitutional amendment [sic] that are in the ballot for November will have on the CRA budget. One, I guess, not much because it's School Board money, right? James H. Villacorta (Interim Executive Director, Community Redevelopment Agency): Right. Commissioner Regalado: But the other one is property -- waterfront property that would be appraised and taxed by income, not by future land use or any other method. So -- Chair Spence -Jones: So you're asking for Jim to come back -- Commissioner Regalado: -- all these buildings, waterfront, will be impacted or just public building because that's not very clear? Mr. Villacorta: I'd have to review it. The Overtown CRA (Community Redevelopment Agency) doesn't have any waterfront property. We stop at the western edge of -- Commissioner Regalado: Yeah, but -- Mr. Villacorta: -- Biscayne Boulevard. Chair Spence -Jones: He's talking about the other one. Mr. Villacorta: And Omni, the -- I mean, a large portion of Omni -- we only go up to 20th -- from 395 to 20th, and a large portion is Margaret Pace Park. The -- Commissioner Regalado: Right. But I don't know if it's government or all property. City of Miami Page 46 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 Chair Spence -Jones: Can you bring a report back -- Mr. Villacorta: Yeah. 171 be -- Chair Spence -Jones: -- for the next -- Mr. Villacorta: -- happy to take a look at it. Chair Spence -Jones: -- CRA meeting on what kind of impact that's going to be? Mr. Villacorta: Sure. Commissioner Regalado: Because if it's all properties, then there's a huge impact. Vice Chair Sarnoff I thought that was restricted to marine use. Mr. Villacorta: Okay. Vice Chair Sarnoff So I don't -- you know, but you'll look into it. Mr. Villacorta: Yeah. Vice Chair Sarnoff We actually had that on the dais with us for the last meeting, so I think it's restricted to marine use, but I have some of that information in my office, if you want it. Mr. Villacorta: And -- Commissioner Regalado: No. I have it too, but marine use are docks -- Vice Chair Sarnoff Correct. Commissioner Regalado: -- which behind these two hotels -- I mean, the hotels and the condo. Vice Chair Sarnoff.- I don't think -- the docks are doing well, so I don't think that the economic analysis approach is going to lower the TIF (Tax Increment Fund). Actually, I think it would either -- Commissioner Regalado: But I don't know if it covers the whole property. That's -- Vice Chair Sarnoff Well, that's a good point. Commissioner Regalado: Okay. Mr. Villacorta: Okay. Chair Spence -Jones: Please make sure you -- Mr. Villacorta: Yes. Chair Spence -Jones: -- bring, for the next CRA -- Mr. Villacorta: Definitely. Chair Spence -Jones: -- meeting, an update for him -- for Commissioner Regalado. City of Miami Page 47 Printed on 6/6/2008 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes May 19, 2008 Motion to Adjourn A motion was made by Commissioner Gonzalez, seconded by Commissioner Regalado, and was passed unanimously, with Chair Spence -Jones and Commissioner Sanchez absent, to adjourn today's meeting. City of Miami Page 48 Printed on 6/6/2008