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HomeMy WebLinkAboutSEOPW OMNI CRA 2009-03-12 MinutesCity of Miami City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com CPI • IN Q9P 99 1i? ▪ I1JYD Meeting Minutes Thursday, March 12, 2009 10:00 AM This meeting was rescheduled due to lack of quorum at the March 5, 2009 meeting. CITY OF MIAMI CITY HALL 3500 PAN AMERICAN DRIVE MIAMI, FL. 33133 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 March 12, 2009 Present: Commissioner Gonzalez, Commissioner Sanchez, Commissioner Regalado, Chair Spence -Jones and Vice Chair Sarnoff On the 12th day of March 2009, 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 special session at Miami City Hall, 3500 Pan American Drive, Miami, Florida. The meeting was called to order by Chair Michelle Spence -Jones at 11: 46 a.m. and was adjourned at 1: 02 p.m. ALSO PRESENT: James H Villacorta, Interim Executive Director, CRA Clarence Woods, Assistant Executive Director, CRA Pedro G. Hernandez, City Manager Julie O. Brit, General Counsel, CRA Gail A. Dotson, Assistant General Counsel, CRA Priscilla A. Thompson, Clerk of the Board Pamela E. Burns, Assistant Clerk of the Board RESOLUTIONS 1. 09-00245 CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY, WITH ATTACHMENT(S), ACCEPTING THE FINDING OF NECESSITY REPORT, ATTACHED AS EXHIBIT "A," FOR THE AREA PROPOSED TO BE INCLUDED IN THE SOUTHEAST OVERTOWN/PARK WEST REDEVELOPMENT AREA ("STUDY AREA"), MORE PARTICULARLY DESCRIBED IN EXHIBIT "B;" FINDING THAT THE REBUILDING, REHABILITATION, CONSERVATION, AND REDEVELOPMENT OF THE STUDY AREA IS NECESSARY IN THE INTEREST OF THE PUBLIC HEALTH, SAFETY, MORALS, AND WELFARE OF THE RESIDENTS OF THE CITY OF MIAMI AND MIAMI-DADE COUNTY; FINDING THAT THE STUDY AREA CONSTITUTES A SLUM OR BLIGHTED AREA AS DEFINED IN SECTION 163.340, FLORIDA STATUTES; DIRECTING THE EXECUTIVE DIRECTOR TO TRANSMIT A COPY OF THE FINDING OF NECESSITY REPORT TO THE CITY MANAGER FOR REVIEW AND CONSIDERATION. Cover memo.pdf Legislation.pdf Motion by Chair Spence -Jones, seconded by Commissioner Gonzalez, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 5 - Vice Chair Sarnoff, Chair Spence -Jones, Commissioner Gonzalez, Commissioner Regalado and Commissioner Sanchez CRA-R-09-0014 Chair Spence -Jones: Good afternoon. I'd like to officially call the meeting for the CRA (Community Redevelopment Agency) to order for March 12, at the historic City Hall. We have joining us all of the City Commissioners for these items. Let me first start by saying, first of all, good morning to -- or good afternoon to my fellow Commissioners. I want to continue to thank them or thank them for their continued support for the Park West/Overtown area. The first thing that we're actually going to be addressing today is the finding study, and I believe that we have City of Miami Page 2 Printed on 3/26,2009 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes March 12, 2009 the consultant here. I don't know if he wants to officially put something on record. I'd greatly appreciate that before we get started. Guillermo Olmedillo: Thank you, Madam Chair, members of the Board Guillermo Olmedillo, 1450 Madruga Avenue, Suite 407, Coral Gables, Florida. What you have in your packets, Madam Chair and Commissioners, is the support documents that evidences the finding of slum and blight that you have to make not only as a CRA, but as the City Commission, and then forward it to the County Commission to make their own finding of necessity. The document speaks for itself The evidence is quite evident, not only visual but all the social numbers -- and the social and economic report that you have inside of this packet points out to you that the area that was analyzed which is from Northwest 22nd Street to about Northwest 5th Street, and from 7th Avenue Northwest to 3rd Avenue, it's an area which is in distress, and it is -- it meets the definition of Chapter 163 for slum and blight. If you have any questions, obviously, I'm available for any questions. Like I said, the report, it speaks for itself but I can point out any issues that you may bring to the table. Thank you very much, and I'll be here. Chair Spence -Jones: Thank you, sir. I just want to mention two things. First, being we did have a community workshop that took place, I believe, last week to make sure that the residents of Overtown and the surrounding area of Park West had the opportunity to at least come out and hear about the study and about the two items that we're going to be discussing, so we're not going to be having a public hearing on this -- on these -- both item -- both of these items. But I would like Madam City Attorney to just make sure, for the record, I want to be clear as far as the study is concerned or the finding is concerned that a public hearing is not necessary. Julie O. Bru (General Counsel, Community Redevelopment Agency): It is not at this time, no. Chair Spence -Jones: Okay. And when is the -- when does the actual public hearing process takes place regarding this finding? Ms. Bru: Well, I believe that it would take place at the County, when it goes to the County. Chair Spence -Jones: Okay. Ms. Bru: But -- Chair Spence -Jones: Just for the record, so that my fellow Commissioners -- Ms. Bru: Right. Chair Spence -Jones: -- understand and the audience here knows what the next steps would be after this -- after we vote on it now. Ms. Bru: Okay. This would have to be now voted upon by the City Commission and then it would go to the County Commission. Vice Chair Sarnoff Does this --? At the City -- there's a vote today as well with the City Commission -- Chair Spence -Jones: Yes. Vice Chair Sarnoff -- am I correct? Is there a public hearing at that one? Chair Spence -Jones: No. That's what she -- Ms. Bru: No. It's a resolution. It's not advertised as a public hearing. City of Miami Page 3 Printed on 3/26/2009 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes March 12, 2009 Chair Spence -Jones: So we just want to be clear. It'll go from here to -- from here -- from the CRA to City Commission, which we'll vote on today, to Miami -Dade County for them to basically vote on it there, but there will be a public hearing that will take place there at County Hall. So I just wanted to make sure that we were clear on it. And just for clarity before we close out on this item, the boundaries, if you can again put those back on the record. Mr. Olmedillo: Yes. They're generally defined as Northwest 22nd Street, Northwest 5th Street on the south, and it goes under the I-95 Expressway up to 3rd Street, and then it goes on the west side to 7th Avenue, which is the traditional boundary of the Overtown area, and Northwest 3rd Avenue on the east. Chair Spence -Jones: Okay. Wonderful. Commissioner Regalado: Madam Chair. Chair Spence -Jones: Sure. Commissioner Regalado: Could you find out if we are off the air? Chair Spence -Jones: Are we on the air -- on air? One second. Commissioner Regalado: This is -- Chair Spence -Jones: They're checking. No problem. Commissioner Regalado: -- supposed to be broadcast. Chair Spence -Jones: No problem. Commissioner Regalado: Can I --? Chair Spence -Jones: I think he's stating -- Solar [sic] is stating that they're not on air. We are on air. Yes, we are on air. Commissioner Regalado: Oh, okay. Chair Spence -Jones: Yes. You're recognized -- Commissioner Regalado: I'm just -- Chair Spence -Jones: -- Commissioner Regalado. Commissioner Regalado: Thank you. Mr. Olmedillo, how many CRAs we have in Dade County? Mr. Olmedillo: I don't have that number. I know that there's three in the City, but I don't know how many the County has adopted. Commissioner Regalado: Seventeen, I think. North Miami -- Mr. Olmedillo: North Miami has one. Perrine -- the Perrine area has one. Commissioner Regalado: Was it a movement a few -- because you know the County, how it works -- for the County to try to abolish CRAB so they can get the tax base back to the County? City of Miami Page 4 Printed on 3/26/2009 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes March 12, 2009 Mr. Olmedillo: I'm not aware. As -- Commissioner Regalado: Okay. Mr. Olmedillo: -- you know, I was the Planning & Zoning director for the County for -- Commissioner Regalado: No. Mr. Olmedillo: -- many years, but -- Commissioner Regalado: The reason I'm asking -- Mr. Olmedillo: (UNINTELLIGIBLE) in the financial -- Commissioner Regalado: -- is because what we're doing here -- the only thing we're doing here is sending this to the County for them to approve. We cannot approve the expansion. That's my question. Mr. Olmedillo: That is correct. You have to make a finding of necessity. The three steps is -- Commissioner Regalado: Right. Mr. Olmedillo: -- you make a finding of necessity, forward it to the City Commission, and then the City Commission to the County Commission. Commissioner Regalado: No, but what I'm saying, we don't have the power to extend the CRA boundaries or longevity, right? Mr. Olmedillo: But you are the first step on that process. Commissioner Regalado: I understand that. Mr. Olmedillo: Not the final, but you're -- Commissioner Regalado: No. I understand that, and we agree that we needed to do the finding of necessity, and we paid for -- the CRA and all that, so that's what I want to understand or set the record straight that it will be up to the County Commission to extend the life and extend the boundaries of the CRA. The other issue -- the other question, you have finished the other study about the Omni CRA? Mr. Olmedillo: We have drafted a report, which is being reviewed by both the CRA and the City. It's a draft of the report. As you know, these reports go through a number of revisions. Every time that we find something that is not either consistent within the report itself or consistent with some of the information that we have, then we go back -- and this -- Madam Chair, I'm responding directly to the Commissioner, but -- ifI may. Commissioner Regalado: When do we expect a vote in the County? James H. Villacorta (Interim Executive Director, Community Redevelopment Agency): I think we should have the Omni finding of necessity study completed within the next ten days. We're awaiting for some additional data from the City to incorporate into the finding to show the elements of slum and blight. Commissioner Regalado: Okay. Thank you, Madam Chair. City of Miami Page 5 Printed on 3/26/2009 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes March 12, 2009 Chair Spence -Jones: No problem. Okay. Any other comments before we take the item up? From the consultant, any other comments that you want to make? Mr. Olmedillo: Not at this time, Madam Chair. Thank you. Chair Spence -Jones: First of all, once again, I want to thank my fellow board members of the CRA and Commission for their support for the Overtown/Park West area. For the first time in a very long time in the CRA area, they finally see something happening in the area, and a lot of that is due to my fellow colleagues that have truly made a difference in the lives of individuals that live there and the people that are in need. We can just ride down 3rdAvenue and look at some of the units that have been restored, and it has come from the leadership of this Board. So I just want to at least publicly acknowledge you for your continued support to make that happen. Again, the purpose of today's item is to extend the life and to expand the boundaries of the CRA. And the whole idea is to pick up key projects that we know -- or key areas that certain projects will be attached to or attached in to really make sure that we're able to do some great things in the Overtown/Park West area. Because of this expansion, now we're able to support projects like the University of Miami biomedical project that's happening off of 7th Avenue; Camillus House, which is also off 7th Avenue and about 18th Street, and of course, our local eateries, like People's Barbecue -- if you haven't been there, it's a great establishment in the heart of Overtown -- and of course, all of the major infrastructure that will be needed in the Park West area. So it is a pleasure to be able to, at least, finally move this item to the next level. I do want to say this publicly because there's so many rumors floating around Spence -Jones and her comments regarding several issues, and especially in the media about Spence -Jones making demands or unnecessary demands. And I just want to be very clear that the only thing that I've always asked for and I have asked for regarding this issue is just to make sure that the commitment that we made to the residents stays intact. I didn't ask for anything new. This is nothing different. This was a part of the overall agreement that was voted on and approved by the City and the County. And I just wanted to make sure that that actually happened before we moved ahead on other commitments. So I just wanted to, at least for my fellow colleague -- 'cause we don't have an opportunity to speak outside of being on the dais -- really make sure that everyone understands that that was my only intention, was to make sure that whatever commitment was made, we kept it. And that was the whole purpose of the discussion around the boundaries. Now I have to, at least, say this out publicly -- and staff knows this. Over the last year or so, I've been pushing very hard behind the scenes with staff to make sure that we get this study completed and to get this -- these items done, before I even brought it up as an issue while I was out on maternity leave. So this is nothing new also for staff because I've been saying over and over again, from the City's perspective and from the County's perspective, where are we with the Overtown expansion of boundaries. And you know, constantly asking the same questions over and over again and not getting a response. So what you've heard from me while I was on maternity leave was really the feeling of frustration of you know, working on something for almost a year, year and a half, and not seeing it move or go anywhere, and that's exactly what happened. So I just wanted to be very clear about that issue. So by adopting these findings, we are recognizing that we're all -- what we already know, which is the area that we're expanding to is full of slum and blight. And hopefully, as we expand the boundaries, we will begin to address these serious problems that are confronted in the Overtown/Park West area. More importantly, what -- the statement that this particular board is making, which I think is extremely important to state, is that the CRA, the City, and the County are committed to making sure that Overtown and the Park West area will involve -- evolve into the best work -- place to work, live, and play, and that's been the point of every person that's sitting up here, as far as the City and the CRA Board is concerned, is that we really wanted to make sure that whatever revenue that has been created in the overall CRA area actually gets to the people that are in most need. And I think that this first step is the first step, only the first step to doing that. And I just wanted to make sure that I publicly, at least, acknowledged that fact before we actually moved on with the item. So with that being said, I'm actually going to pass the gavel because I am so extremely excited to see City of Miami Page 6 Printed on 3/26/2009 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes March 12, 2009 finally something happening in Overtown regarding the expansion of the boundaries, which is my original intent from day one. So with that being said, I'm going to pass the gavel to Commissioner Sanchez, and I'd like to actually move this item. Commissioner Sanchez: All right. There is a motion on RE.12 [sic], which is a resolution. Is there a second? Commissioner Gonzalez: Second. Commissioner Sanchez: Second has been made by Commissioner Gonzalez. Discussion. Vice Chair Sarnoff Yes, sir. Commissioner Sanchez: Commissioner Sarnoff, you're recognized for discussion. Vice Chair Sarnoff I want to understand something 'cause I'm looking at your February 27, 2009 release, Commissioner, and I went to the CRA workshop, which I thought was going to be a CRA meeting, and I read paragraph three, it says, "authorize a half billion -dollar bond issuance to fund the redevelopment of historic Overtown community, " and I don't see Park West mentioned. And I -- you know, as the district Commissioner for Park West, first and foremost, I want to point out a couple things about it. The Biscayne Boulevard corridor, where you'll find the Marquis, 900 Biscayne, is really the TIF (Tax Increment Fund) generator that is being redistributed west and certainly north. If you don't backfill the backsides of those buildings, those buildings are, even in a good economy, would be problematic; in a bad economy, will certainly be problematic and may not generate the TIF revenue, certainly, that Larry Spring, our CFO (Chief Financial Officer), has indicated that it will. I suspect his computations will be significantly off, as all of us are very well aware of the fact that condominiums that were anticipated to sell for as much as 750 to over a million dollars are now selling in the 2 to 300 range. That right away should demonstrate to you that the appraised value and then the, of course, real estate revenue derived from that are going to be significantly less than projections. Equally, some of the projections made by Larry indicated some projects that we know are not going to go forward and will not be going forward So his projections of I think, a 4.8 percent increase per year are simply not accurate projections based on this economy, and they certainly don't reflect what I suppose is going to be a 20- to 40-percent reduction in real estate values over the next two years in the City of Miami. But the only way to stabilize your TIF generator is to put back some ability to help those buildings along as the backsides of those buildings to be the TIF generator for where you want to go west and north. And my other concern is, by going west and north, whether you're going to generate more TIF or distribute the TIF revenue a little further out -- because my understanding is the biomed facilities that want to come in are asking for their TIF revenue back, so they would be TIF neutral. What that means is they would not be shouldering the burden of any of the increase in revenues to the Southeast Overtown/Park West. What they're essentially asking for is to entice me to come to this district, give me back my taxes and I'll come. And I think that should be clear to everyone that that's at least their conversation right now. So while I am prepared to support this, I'm doing so with a cautioning that Park West has got to be a part of this plan and, before I go any further with this, I actually want to see the plan. And the reason I want to see the plan is you can't be very impressed on how we spent the last $22 million of Southeast Overtown/Park West. I have the list in front of me, and I wouldn't say it's the most impressive list. And I'm not here to criticize anyone 'cause I'll tell you this. Commissioner Spence -Jones inherited a lot of those projects and was not particularly responsible for it, but I think you need a master plan in going forward You need to know where this money's going to be spent. You need to project your money to go towards jobs because I don't care who you are or what you are or how you are, you need a job. You need to get up in the morning with a sense of purpose, and we need to generate jobs in that community, and those jobs need to come within that community. And anything else, whether it's any other economic stimulus package, it must have a job. A man or a woman must get up in the morning with a City of Miami Page 7 Printed on 3/26/2009 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes March 12, 2009 sense of purpose, a sense of dignity and want to go up and do something. So -- Chair Spence -Jones: Okay, Commissioner Sarnoff. If you don't mind, Mr. Chairman, I want to just be very clear. I want to be very clear on this issue. First of all, we're not focused on the -- I think you're speaking of the second item, which I guess we're going to address the issue of the TIF, so we're going to deal with that. Right now we're dealing with the study right now. That is the thing that we need to try to get approved now. It is very clear, from me and also the other Commissioners that sit up here -- and I just mentioned in my opening statement that Park West would be a part of it. So, you know, I just want to be clear, you know, that there's no intention of keeping Park West out of it and not including it. And I know that you definitely want to include Overtown because you're also a Commissioner for the Overtown area as well. So the reality is right now we're voting on one particular item first, and then these issues that you're bringing up now, I think, can be addressed in the second item. Vice Chair Sarnoff Yeah, and I just -- you know, the only reason I brought it up was I'm reading a press release issued by you and it only talks about historic Overtown community. And while I do support Overtown and I have a small part of it, I want everybody to understand that the actual generator of the TIF has got to be supported to generate more TIF revenue -- Chair Spence -Jones: Right. Vice Chair Sarnoff -- and there's got to be that understanding. Chair Spence -Jones: Right. I think that it's very clear, and I made that in the beginning part of my statement that definitely Park West would be included in that. And as a matter of fact, my statement included making sure that the major infrastructure that's needed in the Park West area would be included But we also can agree -- and I'm sure you've ridden in your own district in certain parts of Overtown -- that -- and not only in your part that you represent, but in general, that the most needed area at this point -- I don't care if it's just improving the streets and assisting with affordable housing -- is Overtown, and there's no doubt about that. And that's the whole purpose of a CRA is to be able to remove slum and blight in the area. And I'm not saying that we cannot, you know, support or we should not support infrastructure in the area of Park West. Of course, we need to be able to do that so that we can generate more TIF, but I know that you're not sitting up here telling me in no way and in no shape and form that the people of Overtown right now cannot -- need and deserve to have better than what they have, and that's what this is about. Vice Chair Sarnoff No. I think you're misconstruing what I'm saying. Chair Spence -Jones: Well, actually -- Vice Chair Sarnoff What I'm saying -- Chair Spence -Jones: -- I'm not -- Vice Chair Sarnoff -- I'm reading from your text -- Chair Spence -Jones: Right. And I'm not -- and I want to be very clear with you. I am not going to debate with you 'cause obviously you came here with the purpose of debating me on the issue, to pull a press release out. I've already stated in my beginning part of my statement that definitely the infrastructure in the Park West area -- so that should address your concerns that you see in the press release that you have -- Vice Chair Sarnoff Okay. City of Miami Page 8 Printed on 3/26/2009 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes March 12, 2009 Chair Spence -Jones: -- but obviously, you want to make this an issue. Vice Chair Sarnoff No. I want to make sure that what I'm reading that you've written is now going to be modified to at least allow Park West its modicum of some TIF revenue to help -- Chair Spence -Jones: Right. And I think -- Vice Chair Sarnoff -- continue to generate as a resource to Overtown. Chair Spence -Jones: -- Commissioner Sarnoff, I answered that in the beginning of my statement as I opened up. That clearly stated that the major infrastructure in the area will be addressed in the Park West area. That is not -- that was very clear. So if we start pulling press releases of things that you sent out, I'm sure I'll have a lot of issues and concerns that you have regarding things that are happening in my overall district too. But right now we're here to address the issue that we're here to discuss, which is the issue of the expanding of the boundaries. So if we can take a vote on that, that would be greatly appreciated. And if there's any issues regarding the TIF revenue or the bonds, or whatever issues you may have that you want to bring up, you know, we can deal with that then. But I think that right now the focus should be addressing the current issue. Commissioner Sanchez: If may just -- since I'm chairing this -- ifI could just state on this -- the issue that's in front of us is the finding of necessity. That's the only issue that's in front of us; item number 1, not RE.13, which we will take up when we have the Commission meeting. Let me just say that this is something that's not new. This has been -- if I recall, it was maybe 204 [sic] that we addressed this issue as to the expansion of the CRA. Mr. Villacorta: In -- actually, beginning in 2002 -- Commissioner Sanchez: Okay. Mr. Villacorta: -- we prepared a finding of necessity study and a redevelopment plan and transmitted those to the County in 2004, and it sat at the County -- Chair Spence -Jones: And that -- Mr. Villacorta: -- until the global agreement, where it was -- where we were advised that that should be updated before the County would consider it. And in the process, we added some more properties to the area, Town Park, for instance, so that we could reach that area to help those homeowners. Commissioner Sanchez: And in order to accomplish this under Florida Statute 163, we need to have a finding of necessity of slight [sic] and blight -- Mr. Villacorta: That's -- Commissioner Sanchez: -- slum and blight. Mr. Villacorta: -- the first step. Commissioner Sanchez: That's the first step that we take here. Now let's explain the process. The CRA will approve it, the City of Miami will approve it, and then the County will approve it. But once again, this is a commitment that the CRA Board made, this Commission has made, and we got to live up to that commitment. It's that simple, folks. Mr. Villacorta: Correct. City of Miami Page Printed on 3/26/2009 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes March 12, 2009 Commissioner Sanchez: All right. Chair Spence -Jones: And Mr. Chairman, again -- and I don't want to belabor the issue because, I mean, no one in this room could even doubt the fact that, you know, the Overtown area definitely needs the resources in order to help rebuild in the Overtown area. And I don't have to talk about the history of what has happened in Overtown to many of the residents in the area. That should be obvious, you know. But the reality is, you know, if we start pulling up documents, you know -- the meeting we had on December 13, 2007, it was your statement that says I'm here to support this because it extends the life of the Southeast Overtown/Park West area and provides them with $600 million to use in the area, and that's what we're here to talk about. So if we can at least address the first issue, it will be greatly appreciated. And again, as the Chairman has stated -- or the -- or Commissioner Sanchez has stated earlier, you know, this is something that was around longer than I was; 2001, 2002 is when they started discussing it. You know, when I came on board, when Commissioner Winton was here, my whole push was to try to get this study completed and it just -- it never moved. And I wanted to make sure when we voted on the global agreement, right here in the midst of this Commission meeting, I wanted to make sure that the County's level of commitment -- because we had been having issues with the County around getting the information moved on the County side that it actually happened. So I just don't want to see museums, stadiums, port tunnels and all these other things that we, you know, find to be so important, which, again, I'm not taking anything away from them 'cause they do provide the jobs and some sort of stability, but the people also need support just as well, so, you know -- and that is my point of making sure that these items actually get pulled -- actually get pushed and moved to the County Commission so that we can actually have some progress happen for the residents of Overtown and Park West. Commissioner Sanchez: All right. We're on item 1 of the CRA. Any further discussion on this item? Commissioner Regalado? Commissioner Regalado: Thank you. Madam Chair, I supported the study, and I will support the issue of sending the study to the County. I do think -- and the questions that I was asking is because I was trying to understand the climate in the County Commission for this to be approved. And I don't know if the executive director or the City or anybody has done any lobbying or -- in the County. Chair Spence -Jones: Yes. We have spoken to the chairman, Chairman Moss, regarding this issue. He fully supports it. And then also several Commissioners have been also spoken to regarding this issue, and also, I've had a discussion with Mayor Alvarez to make sure that once we vote and approve it on this side, that it actually gets pushed. But also, I'm also encouraging all the residents that are sitting in front of me to also call their local officials to make sure that the item gets pushed. We just want to show that we're doing our part, and that's what this is all about because one person is saying, okay, the City has not moved ahead, so we can't do anything, so we need to do our part. Our part is to make sure that we approve it, we move it on to the County, and then we push it from there. And that's what's been communicated. Commissioner Regalado: And my point was -- my only point was that we have done our part. And we have done our part because, to my knowledge, we have sent already two checks to Miami -Dade County government to pay for -- Chair Spence -Jones: The PAC (Performing Arts Center). Commissioner Regalado: -- the -- well, I'm trying to understand what are we paying at the Performing Arts Center with this money. But the minute that you all approve the global agreement, we sign on a debt with the County to help the PAC. And the CRA has been sending that check. My recollection is that that was part of the same agreement that said that the CRAs City of Miami Page 10 Printed on 3/26/2009 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes March 12, 2009 will be expanded and extended, and it has been now -- how much, two years since that was approved? December 14, 2007 -- Mr. Villacorta: Correct. Commissioner Regalado: -- that was approved. That was the global agreement who [sic] was approved by the County. We have done our part. We have sent two checks, right, Jim? Mr. Villacorta: The second check is due by March 31. Commissioner Regalado: It's in the mail. Mr. Villacorta: It's in the mail. Commissioner Regalado: It's in the mail. And it's $6 million. Mr. Villacorta: Six point four million dollars. Commissioner Regalado: Six point four. Mr. Villacorta: But from the Omni -- Commissioner Regalado: The first check -- Mr. Villacorta: -- CRA, though. Commissioner Regalado: No. I understand that. But I'm referring to the global agreement. Mr. Villacorta: Yes. Commissioner Regalado: I'm referring to the global agreement. So the point is that I am just curious to see how would the County react after we send the study [sic] of necessity because we have done our part. The residents of Miami have participated in the bailout of the Performing Arts Center at the tune, next March 31, of almost $12 million, right? Mr. Villacorta: Correct. Commissioner Regalado: So that was my point. My point is that -- I mean, it's not a big thing. It's been two years in the making, and the City and the CRAs have done their part. We have complied with what they request. Chair Spence -Jones: Right. And let me just add to you, Commissioner Regalado. You're absolutely correct, and you're correct froin the standpoint, as Jim has stated. From the Omni's perspective, they have done their part. That was a part of the overall global agreement. My issue and my concern right now is, you know, we've been pushing, you know, for a couple of years to at least get the findings completed. And at this point, the County's saying, we can't do anything until you at least get it approved froin the City's side and the CRA side. And that's what I want to have accomplished. I just want to make sure that we remain committed to what we said we were going to do, and this is the first step of us doing that. This is the first step of what we said we would do as a part of the global agreement, and it hasn't happened yet. So today is the day for us to make that happen. Commissioner Sanchez: All right. Any further discussion? If not, there has been a motion and a second. We are on item number 1, which is the -- accepting the finding of necessity. All in favor, say "aye." City of Miami Page 11 Printed on 3/26/2009 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes March 12, 2009 The Commissioners (Collectively): Aye. Commissioner Sanchez: Anyone in opposition, having the same right, say "nay." Hearing none, Madam Clerk, it passes, 5-0. We move on to the next item on the CRA agenda. Applause. 2. 09-00246 CRA RESOLUTION A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("CRA") DIRECTING THE EXECUTIVE DIRECTOR TO WORK WITH THE CITY OF MIAMI TO MOVE FORWARD WITH THE PROCESS FOR ISSUANCE OF BONDS FOR IMPROVEMENTS WITHIN THE REDEVELOPMENT AREA, IN AN AMOUNT NOT TO EXCEED $500,000,000, BACKED BY THE TAX INCREMENT FUNDS RECEIVED BY THE CRA. Cover Memo.pdf Legislation.pdf Motion by Chair Spence -Jones, seconded by Commissioner Gonzalez, that this matter be ADOPTED WITH MODIFICATIONS PASSED by the following vote. Votes: Ayes: 5 - Vice Chair Sarnoff, Chair Spence -Jones, Commissioner Gonzalez, Commissioner Regalado and Commissioner Sanchez CRA-R-09-0015 Commissioner Sanchez: Item number 2. James H. Villacorta (Interim Executive Director, Community Redevelopment Agency): Item number 2 is a resolution of the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency directing the executive director to work with the City of Miami to move forward with the process for issuance of bonds for improvements within the redevelopment area, in an amount not to exceed $500, 000 -- $500 million, backed by tax increment Binds received by the CRA (Community Redevelopment Agency). Commissioner Sanchez: All right. And the word there is "not to exceed $500 million," which now when we have a motion and a second, I think we have an opportunity by some here to clarify a lot of misinformation that's out there in this, okay. So we need a motion and a second. Is there a motion? Chair Spence -Jones: So moved. Commissioner Sanchez: Moved by the Chair. Commissioner Gonzalez: Before I second -- Chair Spence -Jones: Second for discussion. Commissioner Sanchez: Second for the -- Commissioner Gonzalez: -- or second for discussion. Commissioner Sanchez: All right. There's a second for the purpose of discussion. At this time, Commissioner Gonzalez, you're recognized for the purpose of discussion. City of Miami Page 12 Printed on 3/26,2009 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes March 12, 2009 Commissioner Gonzalez: Yeah. I'm willing to support this item, but there is a condition. In addition to "not to exceed $500 million, " it should also be amended to say that "according to capacity" -- or "bondable capacity." Because, you know, I mean, we can tell the people that we're going to give them $3 billion, but if we don't have them, you know, it's just a promise that we're not going to, you know, give. So it should be -- people should understand that the bonding is going to be according to the capacity, okay, to issue the bonds. If we don't have capacity for - - if we only have capacity for $5 million, it's going to be $5 million. It isn't going to be $500 million, and that needs to be clear because what was put out there by some of the press -- and I have to agree with Commissioner Spence -Jones -- a lot of the media called me for two consecutive days because they claimed that the Commissioner was conditioning her support of the stadium on Overtown getting $500 million, and they wanted to have my comment. I said, well, you know, I don't have a comment. I will not support that, okay. And I agreed a hundred percent that Overtown has been neglected forever. I'm not going to say for years. I'm going to say forever -- Chair Spence -Jones: Forever. Commissioner Gonzalez: -- okay, and it is about time that Overtown be treated fairly and at the same level that other areas of the City of Miami. But also, I don't want to be voting on making promises that we are not going to be able to keep. And I'm not going to be here, you know, lying to these people and people looking through the cameras that, yeah, we're going to give you $500 million tomorrow. No. That is not true, okay. It might be one million, it might be three million, it might be five. It might be twenty, but it's going to be according to capacity, and if you are willing to accept the amendment, I will -- you know, I will keep my second. If not, I will, you know -- Chair Spence -Jones: No. I'm willing to accept that. Commissioner Gonzalez: All right. Vice Chair Spence -Jones: As long as, you know -- again, I just want the City Attorney to clarify exactly -- will this be the CRA counsel or either Jim -- it doesn't matter -- to at least make sure you state that on the record based upon capacity. Can you at least repeat it so that we're clear? Mr. Villacorta: Right. I think that was the intention of saying "not to exceed, " is that we don't know -- Commissioner Gonzalez: No. Mr. Villacorta: -- I mean, and -- Commissioner Gonzalez: It's not the same thing. Mr. Villacorta: Right. Well, that may have been -- Commissioner Sanchez: Could I --? Mr. Villacorta: -- what we were striving for. But, of course, the CRA cannot bond out more than its revenues will allow it to, whatever capacity -- bonding capacity that stream of revenues will generate. And in this changing economic times, that'll have to be reviewed, and that's part of this process of meeting with the financial advisors and seeing what we could -- bond out what we could sell, and we don't want to unreasonably raise expectations. Commissioner Sanchez: And that's the whole purpose here. City of Miami Page 13 Printed on 3/26/2009 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes March 12, 2009 Mr. Villacorta: Yes. Commissioner Sanchez: The whole purpose is not to raise expectations of what it's -- Mr. Villacorta: Right. Commissioner Sanchez: But the language, as it states right now, not to exceed $500 million -- but I think that we -- if we proffer a language that says whatever the bonding capacity the revenue source can support, whether it is ten million, fifty million, a hundred million, five hundred million, whatever it could be based on -- Mr. Villacorta: Sure. Commissioner Sanchez: -- the capacity. That's the whole issue here, as to see how much can the capacity bring in. Commissioner Gonzalez: And if I can add that, you know, on the same topic, I agreed with the Commissioner -- well, with the Chair Spence -Jones that this was approved back when we deal with the -- Chair Spence -Jones: Global. Commissioner Gonzalez: -- global agreement. I mean, I don't know why all of this time has elapsed and nothing has been done about it and no effort have been made to issue any bonds, even if it is for $100. But you know, if we agree to do something, I mean, why the delay? Why not take action on, you know, doing what we promised the people that we were going to do? That's what brings these type of situations, okay. That's something that should have been done. Chair Spence -Jones: And if I could just add so that I'm very clear because somehow your words get twisted, you know, regarding what's your original intent. For me, the whole purpose -- and I have copies of the transcript, and I'm going to share it with you guys, but I know what we -- what was said actually on that dais that day. I know what was committed on that dais that day, not just between the City, but also the City and the County. I'm not crazy. It's in writing. It's right here. And the level -- the whole idea of saying to the Overtown/Park West community that, you know, the original amount, I believe -- Larry, I don't know where you are, Larry. Where are you, Larry? -- was over $600 million that was expected to be generated from the area. And I do understand Commissioner Sarnoffs point regarding the issue of how the market and how things have changed, but the same things that we're looking at doing now for the Overtown/Park West CRA is the same bond market or market we're going to go to for the stadium or for the Museum Park, you know, to get those projects done. And we may not be able to get, you know, the $500 million, you know, tomorrow. We may not be able to get a hundred fifty million tomorrow, but the reality is is that we want to send a very clear message to the -- at least the folks of the Overtown area and the Park West area that we are committed to the rebuilding of it, and that the resources that are committed and earned from that particular CRA actually goes back into investing in those areas to assist with better roads, to assist with better housing, to assist the businesses in the area, to assist with the parks in the area. And the whole idea is to send that message to the community that, yes, you may not have trusted government in the past for whatever reason -- and I-95 came through and did destroy the whole community. We all understand that. Every single Commissioner sitting up here understands the woes that Overtown has experienced over the many, many years, so that's not even an issue. I don't think anyone is not saying that, but the whole purpose of this particular resolution is to say that we are committed to rebuilding it. And of course, we understand that if we cannot bond out at $500 million, which we know we can't right now, the issue is that there's a commitment to at least put those dollars -- just like it was originally stated in the global agreement -- to assist with the City of Miami Page 14 Printed on 3/26/2009 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes March 12, 2009 rebuilding of the area. And that's the only thing that I really wanted to make sure that was very clear. And I don't know, Larry, if you want to officially put something on the record, but I would greatly appreciate it to clear up any of the confusion regarding the issue of the item. Larry Spring: Larry Spring, City of Miami's chief financial officer. Commissioners, at the workshop a few days ago, I think -- and I apologize, our financial advisor for Southwest Services could not be here today. They had to leave for a flight. But on that day, there was a lot of discussion about forecast and where they were and the assumptions and the projects and so on and so forth. I think on that evening, I tried to make very crystal clear two things. One, those were forecasts that were old that needed to be updated and assumptions needed to be talked through with everyone. And two -- and I'm glad for the amendment -- we only can bond what we have the capacity to bond We don't bond on Larry Spring's forecast. We bond on what's in the account, the market conditions at the time we go forward, and that's what we will be seeking to do. I know we're passing this resolution in 1 directing the City Manager to do the same. So just wanted to make that clear. We will -- we continue to work on the forecasts. It is a onerous process. Like Commissioner Sarnoffput on the record earlier -- andl think we've all had this debate and we've said it and we've acknowledged it -- there are projects on that old list that aren't going to get done. There are projects on that list that are already done. So there was a clear balance -- and it's a forecast. It is what it is. Chair Spence -Jones: And projects that weren't included at all. Mr. Spring: And that were projects that are not included at all. To your point, Park West, Miami Worldcenter, not in my numbers. This Commission -- or the City Commission, I should say, approved a development agreement for that project. I know at one point it was estimated it could be over a billion dollars. Vice Chair Sarnoff Larry, I hate to disappoint you, but they are in your numbers; $1, 015,349,249 in the year 2014. Mr. Spring: They are -- I can assure you, Commissioner -- Vice Chair Sarnoff I have 'em in my hand. Mr. Spring: -- for the record -- I don't know what you have there. When we did our assumptions Vice Chair Sarnoff It's your December 2007 forecast. Mr. Spring: They're not in my numbers. That project is not in my numbers. Look at the global agreement. It is not in our numbers. Commissioner Sanchez: All right. Could -- Madam Chair, could I --? Chair Spence -Jones: Sure. I just wanted to say -- and just in closing on this issue, you know, I think that, you know, the reality is -- again, I just wanted to make sure, if nothing else was said or stated on the record, is that we want to show that -- to the Overtown/Park West community that there is a serious commitment to rebuild it, and that was the whole purpose of me supporting the global from day one. And just want to also be very clear. My community understands that, you know -- that was the whole purpose of also having the workshop -- that, you know, if we cannot bond out all of the dollars at this particular point -- you know, $100 million, $200 million goes a long way in the heart of Overtown. We've never had those kind of dollars at all. So, you know, I mean, the reality is, at least show the businesses, the residents, the people of the community that there's a commitment there. You know, if the dollars are there, they're not going to be shifted, for whatever reason, to support any other project but the areas that it should be City of Miami Page 15 Printed on 3/26/2009 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes March 12, 2009 supporting. And that's -- you know, I won't be here; you won't be here. We all -- most of us won't be here when the dollars are actually going to be made available for some of these projects, but we want to make sure that we do leave a legacy -- at least a legacy to the Overtown residents showing that we cared enough about them to rebuild the overall area. And again, I just want to be clear because I don't want anyone to take my words and misuse them -- and that includes the Park West area. So I just want to be very clear that I appreciate the support that I am receiving on the dais regarding this item, and I think that the residents of the community definitely appreciate it and it's long overdue, and that's the whole purpose of this item. Commissioner Sanchez: Madam Chair, I think it's important, once again, that we get back to the commitment that we made, which was a commitment that was made -- I guess all the Commissioners were at that meeting -- I don't know if Commissioner Sarnoff was at the meeting - - but the commitment -- the whole expansion of the CRA is something you need to take into consideration as how we came about the expansion of the CRA. At first, it was to be expanded because, in the long term, it affords you the opportunity to bring in more TIF (Tax Increment Fund) and the numbers continue to increase. But at first, the intent was, of course, to help the museums and some other projects along Watson Island and to expand the boundaries of the CRA. The biggest concern was -- that you need to take into consideration, at first, you're spending money to make money. You plan on making that money a long-term investment when that money comes back into the community, and that was a concern that the residents had of Overtown. They said, well, that money that could be used today for us is being invested in the future. And the whole concern was, well, if we're willing to do that, then let's sit down with those that are affected the most and come to an agreement on how we're going to be able to benefit the people who were there before the development, before the growth of Miami. So we got together - - as a matter of fact, we even broke it down into certain percentages -- Chair Spence -Jones: Sure did. Commissioner Sanchez: -- where the money was going to be spent into the area, and that was it was based on a percentage going to housing -- Chair Spence -Jones: Yep. Commissioner Sanchez: -- a percentage going into infrastructure, a -- Chair Spence -Jones: Historic -- Commissioner Sanchez: -- percentage going into historic preservation, a percentage going into quality of life. So that money was committed verbally to getting this done and getting it passed to the County. Now I did not attend the CRA workshop, but I did have staff representation there. I don't know who Mr. Washington was, but he was there. Sir, we were very impressed with your comments, and it came back to me that you spoke very elegantly -- Chair Spence -Jones: Eloquently. Commissioner Sanchez: -- eloquently and it came from the heart as to where you stand on the issue of this. We have a great opportunity here to have a win -win situation for everyone. We have to follow that process to make sure that that process is well-defined with all the legalities that fall into place as us approving it here at the CRA, the County -- the City of Miami Commission and then the County. But once again, it boils down to two things that I want clear. One was there may be -- been a misunderstanding as to where -- there's a statement that all of that money is going into Overtown. No. All of that money is not going into Overtown. All of that money is going into Southeast Overtown/Park West, but there's been a commitment to Overtown to make sure that they are not left out. The other issue is that has been brought forth by Commissioner Gonzalez is based on the bonding capacity. For me to sit here and tell you City of Miami Page 16 Printed on 3/26/2009 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes March 12, 2009 that you're going to get $500 million, I would be lying to you. And there's no way that we could ever come -- I don't think the bonding capacity is there for that money. I'm not an expert at it, but I listen to the advice of our experts, the CEO [sic] (Chief Executive Officer). I listen to the Administration. If don't trust them or ifI don't take their advisement, then I should have the responsibility here, as being your representative, to be making a motion to fire the City Manager, which I have confidence in his administration and I have confidence in the CFO telling us that whatever it may be, our bonding capacity, which, if it's amended by the language that I proffer or anyone can proffer here, I think it makes it more of a solid agreement as to based on the capacity. Because you know what. No one here could guarantee you that you're going to get maybe 10 million, 50 million, 100 million, 200 million. But at the end of the day, if you do get 100 million going into Overtown/Park West, that is a significant amount of money that's going into improving the quality of life and making sure that your community is much better off today than it will be if we don't make that commitment. So I think it's important for us to clear those things and basically put our differences aside and put our whatever aside and just do what's right. And at the end of the day (UNINTELLIGIBLE), is it good for this City and is it good for the residents and Park West and all those that are affected in that area? I think it is. This is a win -win situation for the City. It's got nothing to do -- and I know some people here may want to take into the baseball aspect of it. I don't think it is. I think it's an investment in Overtown, an investment in Park West, and I think it's an investment in the future of the City of Miami. So having said that, I don't know if anyone wants to add to this, or we're prepared to vote on the issue, and then we're going to bring up the votes in the City. Commissioner Regalado: Mr. -- Chair Spence -Jones: If you don't mind, I just want to be very clear on an issue. Again, I want to be very clear. The $500 million that we're speaking of -- and I'm going to ask my -- Madam City Attorney, so that we're real clear, this is nothing new. This came from the actual meeting we had right here in City Hall regarding the issue of what would be identified for the overall area, and it was stated on the record, it's a part of the overall agreement. And the idea is to make sure that the community knows that there is a commitment to invest these type of dollars, if they are available, whether or not it be 140 today, or whether or not it be 100 million the next ten years or whatever. The idea is to make sure that we ident those dollars, put those dollars into the overall area to help redevelop them. But I want to ask, before I turn it over to Commissioner Regalado for -- 'cause I want to just be clear 'cause this is all stuff that was on the record. Madam City Attorney, can you please, just for me, on page 33, just clear up these issues. If you can go through the minute -- the meetings on the minutes regarding this issue so that I'm clear. Commissioner Gonzalez: Madam Chair, may I ask a question? Chair Spence -Jones: Sure. Commissioner Gonzalez: But I under -- I also understand that when these monies were approved, they were approved for certain purposes, right, like economic development, infrastructure -- Chair Spence -Jones: Housing -- Commissioner Gonzalez: -- housing? Chair Spence -Jones: -- and infrastructure were the two things. Commissioner Gonzalez: Right. So I want to make sure that that's the commitment. Chair Spence -Jones: It's -- that's what the interlocal agreement says with the -- City of Miami Page 17 Printed on 3/26/2009 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes March 12, 2009 Commissioner Gonzalez: All right. Chair Spence -Jones: -- County. Commissioner Gonzalez: Very good. Chair Spence -Jones: But I would like to have at least my City Attorney at least read these things that were actually stated on the record by myself by George Burgess, regarding the issue of the $600 million, regarding the issues of those dollars in the County being committed to make sure they stay in the heart of Overtown/Park West area. Again, I just want to be clear on -- if you can at least verbally put it on the record for me, I'd greatly appreciate it, starting with page 33. Julie O. Bru (General Counsel, Community Redevelopment Agency): Okay. Madam Vice Chair, we have the minutes from the December 13 City Commission meeting wherein the Commission approved what's being called now the global agreement, the interlocal agreement. And some of the comments that were made in the deliberations that led up to the vote on that agreement -- and I've been given a copy of the transcripts, you know, from the City Clerk. On page 33 of the transcripts, we have Commissioner Sarnoff speaking about his support "because it extends the life of the Southeast Overtown/Park West area and provides them 600 million to use in that area." Chair Spence -Jones: Page 43. Ms. Bru: Page 43, we have the Vice Chair saying, "There's going to be one amendment. I'm just waiting for the City Manager and the City" -- excuse me. "-- the County Manager on this issue, " and that is soliciting some input from County Manager George Burgess as -- with respect to the issue. The City Manager stated, "Mr. Chairman, would you allow me? I would like to be able to address the concern of Commissioner Spence -Jones reference the 326 million. Those are monies that will be coming back to the City, and what I am proposing is that I will work with Commissioner Spence -Jones and all the other Commissioners to develop a plan to be able to use those monies for improvements" -- there's an interruption there. And then Mr. Burgess, the City Manager, says, `Above a base" -- Chair Spence -Jones: If you can, before you do that -- Ms. Bru: Okay. Chair Spence -Jones: -- I want you to -- the part that says, Vice Chair Jones [sic] -- Ms. Bru: Okay. Chair Spence -Jones: Okay, starting from that part. Ms. Bru: The Vice Chair then addresses the Commission and says, "Larry, let me just be clear because I don't want to take a lot of time on this issue. Mr. Burgess, the dollars that are generated from the Southeast Overtown/Park West area along with those particular areas, the monies that are usually collected by the County is collected by the County and given back to the City or CRA for them to continue doing what they need to do to improve the areas, correct?" Mr. Burgess says, "The way the redevelopment district work is that there's an increment right above a base year amount of City millage and countywide millage that goes into a redevelopment trust fund, and those monies would stay and 100 percent of those dollars would stay in the Overtown district through the year, I believe, 2016, if my year is correct -- 17. The proposal then is from 2017 to 2030, 50 percent of the increment would stay in the district, and that's a very large amount -- that's a very large number that the City Manager shared with you earlier. The other half would come back to the City's general fund" City of Miami Page 18 Printed on 3/26/2009 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes March 12, 2009 Chair Spence -Jones: Okay. So I just want to be very clear. I know I wasn't crazy. We actually had this discussion around this money. And I know the only reason why I supported the port tunnel, the stadium, the PAC (Performing Arts Center) and any of that is because part of the communication and part of the agreement was that it would stay in the Overtown/Park West area. So for me, I mean, this is nothing new. And I just want to make sure that that level of commitment remains there for the folks that, you know, really need it the most. And I just -- and that's my only -- that was my only point from my statement. And for me, I think that whatever the proposed recommendation that Commissioner Gonzalez has proffered, I'm fine with, as long as we can at least keep the commitment, the number up there. I believe, if Jim can just repeat it, to make sure we're on the same page, exactly what the overall commitment is. Mr. Villacorta: To issue bonds in an amount not to exceed 500 million, subject to capacity of the CRA to -- subject to capacity. You know, backed by the tax increment funds received by the CRA subject to the capacity. Vice Chair Sarnoff Madam Chair. Chair Spence -Jones: Okay. And then last -- this is my last question. And Larry, if you can -- 'cause one of the things I've been asking Larry for -- for Larry to do for me is to at least kind of give us some sort of projections based upon what we know is there now. And I know that you've been working on those numbers over the last 48 hours trying to address my concerns and my issues. Can you at least give me a sense of what we're looking at from a numbers standpoint now? Mr. Spring: Well, what -- Commissioner, again, Larry Spring, chief financial officer, City of Miami. In order just to have a discussion -- something to discuss around what I did was probably go to the other extreme or to the other spectrum, and I basically took out every single project except for 10 Museum, the projects that are delivered. I think I had one project, which is the Marquis West, which is a second phase of Marquis, and that's out in 2015. Based on doing that -- I kept my growth assumption the same, Commissioner Sarnoff, but we'll talk about that later -- based on making those changes, the total tax increment that would be generated, assuming, you know, millage rates and so on and so forth, would be about 723 million starting in what was 2008 fiscal year through 2030. And I updated our numbers so that we reflected in 2008 and 2009 the actual TIF numbers that are in the budget of Southeast Overtown/Park West. The 50 percent utilization number yields 457 million for that same time period, and bonding capacity, depending on interest rates -- and we did a net present valuing of that cash flow -- ranged from 106 million to 140 million. Commissioner Sanchez: Based on the -- what number was it again? Mr. Spring: Based on the new level -- the new cash flow level. Commissioner Sanchez: Which was? Mr. Spring: It -- well -- Vice Chair Sarnoff A hundred and six million to a hundred and forty million. Mr. Spring: Yeah, starting now at -- starting -- well, this fiscal year, at 7 million and growing over time, only including the four condo projects that have -- they've already been built; they're already there. And that -- we estimate that a cost value of about a billion dollars, so that's the general assumptions that we used. Vice Chair Sarnoff Madam Chair. City of Miami Page 19 Printed on 3/26/2009 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes March 12, 2009 Chair Spence -Jones: Sure. Vice Chair Sarnoff Just so everybody understands -- and I absolutely support putting as much bonding capacity as we possibly can because you know what that requires us to do? Have a master plan. And now you all get to see what we're going to spend the money on, versus what we've been doing, and I'm not sure what we've been doing is the healthiest for the environment. I'm not sure it's the healthiest for the way we should have been doing it 'cause we've been giving a lot of money away to, essentially, non -tax -paying organizations. So this will be a great exercise for all of us to know exactly where the money's going to be spent. But I thought you all should understand something about the meeting in December 2007. This was a document that was given to us by our chief financial officer. This isn't my document; this was Larry's. This is what Larry based it upon. Larry based it upon what the City of Miami produces called a large-scale development report. That large-scale development report -- or what we colloquially call MUSPs, Major Use Special Permits, like Marquis, these other big buildings. Larry projected -- and maybe it wasn't inappropriate at the time -- a number of projects which will never get built, and a number of revenue sources that will never be provided TIF revenue. Those amounts are almost $2 billion. Okay, so $2 billion that we were told would be in there in December 2007 won't be in there as we understand it. Now Larry and I have a little bit of a disagreement as to whether the mills will continue to go up or the property will continue to appreciate at 4.8 percent a year. I suggest to all of you -- and I say this very cordially -- mark my words, this year you will see a 20 percent reduction in your property values. The year after that, you'll see a further reduction in your property values. It will take you years to make up the 20 to 40 percent -- where'd you all hear that? That was earlier in the hearing today when Diane [sic] Gomez said we're preparing for a 20- to 40-percent reduction in property values. It will take you years to make up a 30- -- let's go midline -- percent reduction in property values, many, many years. That's why I think his numbers are wrong. And it's a fair and honest debate between Larry and myself. As a matter of fact, we debate all bonding capacities because Larry does not -- I don't think he's considering us to be in a historic event that we're in. And I think the event that we're in isn't over and it will continue to erode our property values. But I just want you to understand, you're only as good as the information that you're provided when you take a vote. So I do support absolutely Southeast Overtown/Park West to bond as much as it possibly can if, for no other reason, we then have to do a master plan and you all get to see where the money's going to be spent. You all get to see transparency in government. You all get to see how and where this money gets spent, and that's good. That's good for the community; it's good for us. You'll also then say, where are the jobs? So I just want you to know and explain myself to a very limited degree. You know, information in is information out. Would I support $326 million? If you had that bonding capacity, I absolutely would. But I don't like ear candy. I don't like people who just say things to make you feel good for a day when they know it's outside the envelope of reality, and that's why I came to the CRA thinking it was going to be a CRA meeting. It's fine; it was a CRA workshop. And I said the bonding capacity of this Southeast Overtown/Park West was probably $100 million. Now Larry says it's 105 million to 140 million. You know, I can beg to differ and disagree with him. I don't think our property values for the next 30 years will go up 4.8 percent. As a matter of fact, I don't think Larry has estimated the decline for the next two or three years. And let me just say one last thing. Come to the next budget workshop that we're going to have in the City of Miami. Make sure you attend to hear how much shortfall we're going to have this budget cycle. Numbers are going to be staggering. Reality -- you know what? You could speak any language you want, but there's one universal language in this world, math. Math doesn't lie. And all I'm trying to say to everybody is just -- I don't want to give you ear candy. I will support as much bonding capacity as possible, but -- Chair Spence -Jones: And that's what -- Vice Chair Sarnoff.- -- the economic -- Let me finish, please. -- realities of today are different than the economic realities of December 2007, and God, I wish it wasn't. I really wish we were City of Miami Page 20 Printed on 3/26/2009 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes March 12, 2009 making the kind of money and we had the revenue sources we had in December 2007, I really do, for your sake as well as everyone's, but we don't. And those that don't face reality will be forced to do it. And all I'm saying -- I'm trying to soften a blow and not talk ear candy. That's why I keep on saying to everybody I support as much bonding capacity as possible, but don't anticipate $500 million. Mr. Spring: Madam Chair, if I -- Chair Spence -Jones: Sure. But I don't know -- Commissioner Regalado, did you have a point you want to make? Commissioner Regalado: I -- very briefly, if Larry -- if you allow. I heard that there were differences in this Board. I don't think that there are differences in this Board. This Board is all on board to support Overtown/Park West. This Board approved the study, approved the funding for the study; now just approved sending the study to the County. I think that what every member of this Board is trying to say in their own way is that the figures that had been proffer are not correct, and that the projections on 207 [sic] on the global plan or, as they call it, the global agreement, were too optimistic, and the projection that you are hearing now are too optimistic. And I'll tell you why. For the first time in the last 65 years, we have an elected property appraiser. Mr. Garcia will be, starting next month, sending his people out to appraise the properties in Miami -Dade County. One of the method that he will use on the commercial is income, which is an allowed method, been used forever in Broward County. You know, the fact that we didn't use it here is because they didn't want to use it, but it's a method that state statutes allow. So there are a lot of properties in Overtown and Park West that are commercial, apartment for rents, warehouses and all that. Those property may be appraised by income, and I think Commissioner Sarnoff has been conservative in terms of the property value. Property values are going to go down, and the projections are -- more than probably 20 percent in some cases. In other cases, they will probably stay the same. Maybe in two years, the residential market will come up, but the point here is that we cannot send another wrong message to the residents of Overtown/Park West, that they may think that they would probably will get millions and millions of dollar for the CRA in the next few month, even in the next year so we can start doing what we need to do as CRA board members. I think that everybody is ready to support any bonding capacity, but I will tell you, Larry and Jim, you mentioned -- I think you described the situation a few minutes ago as changing economic times. That was very diplomatic of your part. You should be in the United Nations because it is -- to describe the situation today as changing economic times is very kind of you. We are going to have the next two or three years of a recession that will start -- we will start recuperating, and I think that it is important to understand that we will probably not be able to even bond the figure that you said, Larry, because of decreasing property values. And you know, the only thing I think that we're trying to state here is for the residents to understand that this is not coming, you know -- falling from the skies, millions and millions of dollars. I mean -- and for the media to understand that this is not a $500 million deal, although it says here on the paper. I think that it's important because Overtown has been the area where hopes have been postponed for so many years and promises have not been kept for so many governments. So I will support this. I think it's important what Commissioner Gonzalez did in terms of capacity. But I still think that the figure of $500 million is misleading, and I think that the Chair is doing the right thing in at least making the County follow through on what they promise in exchange for what the City gave already. The only question that I have is if we were to approve this bonding capacity, it has to be approve also by the County? Mr. Villacorta: Yes. Under the interlocal agreements (UNINTELLIGIBLE) CRA. Mr. Spring: Well, not only that. They'd have to actually approve the actual bonding authorization at the end of the day. You're not -- this item is not authorizing $500 million worth of bonds. City of Miami Page21 Printed on 3/26/2009 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes March 12, 2009 Commissioner Regalado: I understand that. But I just wanted -- Mr. Spring: Okay. Commissioner Regalado: -- to be clear on that. So both items that we're voting here have to be approved by the County Commission. Mr. Spring: Eventually. Commissioner Regalado: Eventually. Mr. Spring: They don't have to approve this resolution. This resolution -- Commissioner Regalado: No. I understand that. Mr. Spring: -- just tells us to go do work. Commissioner Regalado: This resolution is for us to start the process. Mr. Spring: Right. Commissioner Regalado: But they do have to approve the bonding -- Mr. Spring: Yes, they do. Commissioner Regalado: -- action. Mr. Spring: Yes. Commissioner Regalado: Okay. Chair Spence -Jones: You finished, Commissioner Regalado? Commissioner Regalado: Yes. Chair Spence -Jones: Okay. Larry, we're going to -- Mr. Spring: Madam Chair, I just -- Chair Spence -Jones: -- close out on this issue. Mr. Spring: All due deference to all the Commissioners, I'm just going to say this one more time. We do not bond on projections; it's on actual capacity. Yes, me and Commissioner Sarnoff will - - have debated, we'll continue to debate, but we will eventually come to a happy medium on the numbers. There's one statement that was made that I have to correct. Finance Director Diana Gomez did not say we're expecting a drop in our residential values of 20 to 40 percent. Vice Chair Sarnoff She said that we could withstand a 20 -- Mr. Spring: No. She said we could withstand that from the standpoint of issuing our limited ad valorem -- Vice Chair Sarnoff Right. City of Miami Page22 Printed on 3/26/2009 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes March 12, 2009 Mr. Spring: -- bond. I don't want anybody to walk out of here saying that was the forecast that the City's finance group issued. We are -- we will be working on it. It will be coming forth. These are projections. Projections change every day, every month, every week, every minute. And you know, it is not a static number. It's not meant to be static. It is a -- it's a working document number, so -- Commissioner Sanchez: All right. Call the question. I'm acting as Chair. Chair Spence -Jones: Okay. We're going to call the question, but I just want to -- in closing -- because the item has just become -- gone on and on and on. I just want to be clear. The whole purpose of this particular item is to send a loud message that's loud and clear to the residents of the CRA area that the City is making a commitment to support -- if the capacity's there -- I just want to be clear on the actual resolution. The idea was to make sure that we provided support up to $500 million based upon its capacity. That's basically what we're asking for. And I want to be also extremely clear the whole purpose of me even making this statement was based upon the overall agreement that we had from the global perspective. And these are not numbers that I pulled out of the sky. They didn't just jump out of the sky. These are numbers that were presented to us a year or so ago regarding all of the projects that we supported as part of the global agreement. And the only reason why Spence -Jones even thought about supporting it was because there was a certain amount of revenue that was going to go to the CRA area, and I still stand by that. That's the only reason why I will support any of the projects that are being attached to it; that that certain level of dollars are being committed to the Overtown area. That's extremely important. So whether or not we're able to reach it in 10 years, 20 years, 15 years, or whatever it is, I just want to make sure that this Board that's sitting up here right now is committed. If the dollars are there -- that's the real question. If the dollars are there, is this Board willing to support that? And if that is yes, then that's exactly what this resolution is about. You know, we're not saying that when it comes to all these other mega projects that are taking place in the City. Why is it an issue when it comes to the people? You know, I just -- it really -- Applause. Chair Spence -Jones: -- it's really -- I'm going to be honest with you -- disheartening to sit up here and hear all of the reasons why there's an issue on this and that, you know, Spence -Jones, you know -- you don't want to say the name -- but Spence -Jones is pulling $500 million out of the sky. Where is this coming from? We're misleading the people. We're not misleading the people because guess what? All these other mega projects that you're speaking of in the City of Miami, guess what? They have to go out to market as well. It's no difference. How are all these projects going to get done? We're not saying it for these projects. Applause. Chair Spence -Jones: So -- and you're right. Let's -- I don't want you guys to clap on it. The point that I'm trying to make is the same level of commitment that we put into the PAC, the same level that we put into -- if there is going to be a port tunnel, the same level of commitment that we put into any of these mega projects -- we don't know whether or not the market's going to support it, but guess what? We're sending a message loud and clear to the residents of the City of Miami that these -- we think these things are important enough for us to support them. And I'm just saying to you, here's a community that basically that has been there for God knows how long, that has been forgotten over and over again, and we can't send a message loud and clear to them that we support them? And that's my point. It's not -- we know that, you know, if the revenue is not there for us to bond out, the people are smart enough to know that if the money's not available to bond out, that it's not going to happen. That's not what the question is. The question is, if the revenue is available, is there a commitment to support the overall area. That's what this is about. All these other major projects that we're speaking on, they got the same issues, no different. The difference with this is that we're talking about people. We're talking City of Miami Page23 Printed on 3/26/2009 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes March 12, 2009 about people, people that have waited. And I'm going to say this. I truly appreciate Commissioner Gonzalez in this whole issue 'cause he has been a stand-up person regarding the issue of my district and making sure that the folks in Overtown -- even with all the major redevelopment stuff that we've been working on trying to make happen. But a lot of this stuff, there's going to be shortfalls, and we're going to need the revenue to make sure that it happens because of the market. I happen to believe in our President that we have, Barack Obama, and I know Commissioner Sarnoff has to believe in him too because every opportunity he has to speak about him, he does, you know. So if we're believing in the President that we -- like we say we do, I believe, in the next four years, the next six years, if he gets it, then well get out of the situation that we're in and we're able to provide the support that's necessary in order to rebuild these communities that have been neglected over the many, many years. So I just don't want to sit up here and hear over and over again ear candy or issues of making these, you know, assumptions that no one's smart enough to know that -- we're not asking for people to do something we can't do. We're saying that if the capacity's there, is your commitment there to the people that live there; that people that have businesses in that district, is your commitment there? If your commitment's there, we don't have to have a discussion. Applause. Chair Spence -Jones: That's all I'm saying. That's the only statement I'm trying to make out of all of this. When I voted on the global, when I voted on the interlocal, many of those projects are in your district, Commissioner Sarnoff, many of them. They're in your district. Commissioner Sanchez: All right. Chair Spence -Jones: You know, and I understand that, and I supported it because I knew in the end at least the people that always are left last, are on the last of list of everything will at least get something out of this. Beyond my tenure here as a Commissioner, I want to be able to look back and say we did leave a legacy of something. A stadium, a tunnel, a museum, all these things that got built, that's great and that's wonderful, but guess what? We rebuilt a community, quite frankly, that the community that lives in it now feel like -- feels as though the government destroyed it. So here's our commitment to say that we're going to do something, and that's what this has been about for me all the long. So to turn it into something, to me, that states in any way or any manner that we're misleading the people or that we're giving them ear candy or anything of that sort is wrong. All I'm asking for my fellow Commissioners to do that sit on the dais with me that I respect, all of them that I respect, is to at least make sure we send a loud message to the County, which, to me, I think this is extremely important, and to the City Administration that this is important. This is extremely important that those dollars that we agreed on, that we voted on, if they are here, we're still committed to the people that are there. That's all this is about. Guys, let's not make it any more than what it is. That's all it is. Commissioner Sanchez: Let's vote on the issue. All right, there is a motion and a second. It has been amended to reflect -- I think we're adding the language "subject to capacity." Unidentified Speaker: Correct. Commissioner Sanchez: Okay. All in favor, say "aye." The Commissioners (Collectively): Aye. Commissioner Sanchez: Anyone in opposition, having the same right, say "nay." Motion carries, Madam Clerk, 5-0. That concludes -- Applause. City of Miami Page24 Printed on 3/26/2009 SEOPW and OMNI Community Redevelopment Agencies Meeting Minutes March 12, 2009 Motion to Adjourn Commissioner Sanchez: All right, all right. A motion was made by Vice Chair Sarnoff, seconded by Chair Spence -Jones, and was passed unanimously, to adjourn today's meeting. Commissioner Sanchez: That concludes the CRA meeting. Motion to adjourn. We need to adjourn the CRA meeting. Vice Chair Sarnoff.- So move. Chair Spence -Jones: I'd like to -- yeah -- officially adjourn the meeting. Commissioner Sanchez: There's a motion by Commissioner Sarnoff, second by the Chair. Chair Spence -Jones: Thank you. Commissioner Sanchez: All in favor, say "aye." The Commissioners (Collectively): Aye. Commissioner Sanchez: Anyone in opposition, having the same right, say "nay." Motion carries. So, officially, we have closed the CRA meeting. City of Miami Page25 Printed on 3/26/2009