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HomeMy WebLinkAboutCC 2014-06-12 MinutesCity of Miami City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Meeting Minutes Thursday, June 12, 2014 9:00 AM REGULAR City Hall Commission Chambers City Commission Tomas Regalado, Mayor Wifredo (Willy) Gort, Chair Keon Hardemon, Vice Chair Marc David Sarnoff, Commissioner District Two Frank Carollo, Commissioner District Three Francis Suarez, Commissioner District Four Daniel J. Alfonso, City Manager Victoria Mendez, City Attorney Todd B. Hannon, City Clerk City Commission Meeting Minutes June 12, 2014 CONTENTS PR - PRESENTATIONS AND PROCLAMATIONS AM -APPROVING MINUTES MV - MAYORAL VETOES CA - CONSENT AGENDA PH - PUBLIC HEARING SR - SECOND READING ORDINANCES RE - RESOLUTIONS BC - BOARDS AND COMMITTEES DI - DISCUSSION ITEMS PART B PZ - PLANNING AND ZONING ITEM(S) MAYOR AND COMMISSIONERS' ITEMS M - MAYOR'S ITEMS D1 - DISTRICT 1 ITEMS D2 - DISTRICT 2 ITEMS D3 - DISTRICT 3 ITEMS D4 - DISTRICT 4 ITEMS D5 - DISTRICT 5 ITEMS City ofMiami Page 2 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 9:00 A.M. INVOCATION AND PLEDGE OF ALLEGIANCE Present: Chair Gort, Commissioner Sarnoff, Commissioner Carollo, Commissioner Suarez and Vice Chair Hardemon On the 12th day of June 2014, the City Commission of the City ofMiami, Florida, met at its regular meeting place in City Hall, 3500 Pan American Drive, Miami, Florida, in regular session. The Commission Meeting was called to order by Chair Gort at 9: 04 a.m., recessed at 1: 20 p. m., reconvened at 3: 09 p.m, recessed at 4: 43 p. m., reconvened at 5: 05 p.m and adjourned at 6: 04 p.m. Note for the Record: Commissioner Sarnoff entered the Commission chambers at 9: 05 a.m., Commissioner Suarez entered the Commission chambers at 9: 07 a.m., Commissioner Hardemon entered the Commission chambers at 9:18 a.m., and Commissioner Carollo entered the Commission chambers at 9:22 a.m. ALSO PRESENT: Victoria Mendez, City Attorney Daniel J. Alfonso, City Manager ToddB. Hannon, City Clerk Chair Gort: Welcome to June 12 meeting of the City ofMiami Commission at these historic chambers. The members of the City Commission are: Frank Carollo; Francis Suarez; Marc Sarnoff, Keon Hardemon, Vice Chairman; myself W fredo Gort, the Chairperson. Also on the dais are: Daniel Alfonso, the City Manager; Victoria Mendez, City Attorney; and Todd Hannon, City Clerk. The meeting will be opened by a prayer by myself and the pledge of allegiance by the Mayor, Mayor Regalado. Can we please stand? Invocation and pledge of allegiance delivered. PRESENTATIONS AND PROCLAMATIONS PR.1 14-00535 PRESENTATION Honoree Presenter Protocol Item Maria de Cardenas Mayor Regalado Certificate of and Chair Gort Appreciation (Retirement) Lilia Varas Chair Gort Certificate of Appreciation (Retirement) Fermin Alvarez Commissioner Certificate of Sarnoff Appreciation (Retirement) John Dato Mayor Regalado Certificate of Appreciation (Retirement) Miami Northwestern Vice Chair Certificate of City ofMiami Page 3 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Senior High School Hardemon Honor Girls Track & Field 14-00535 Protocol Item.pdf PRESENTED 1) Mayor Regalado and Chair Gort presented a Certificate of Appreciation to Maria de Cardenas recognizing her 28 years of service as a career employee with the City ofMiami; furthermore applauding her use of special skills and knowledge to elevate the quality of life of the people ofMiami through outstanding commitment to work assignments in the Parks & Recreation Department. 2) Chair Gort presented a Certificate of Appreciation to Lilia Varas recognizing her 28 years of service as a career employee with the City ofMiami; moreover applauding her use of special skills and knowledge to elevate the quality of life of the people ofMiami through outstanding commitment to work assignments in the Public Facilities Department. 3) Commissioner Sarnoff presented a Certificate of Appreciation to Fermin Alvarez, paying tribute to his outstanding leadership and dedication to excellence as a Beach Operations Supervisor and Parks Operations Coordinator in the Parks & Recreation Department; acknowledging his thoughtful job performance, professionalism, and courteousness with constituents. 4) Mayor Regalado presented a Certificate of Appreciation to John Dato recognizing his 32 years of service as a career employee with the City ofMiami; additionally applauding her use of special skills and knowledge to elevate the quality of life of the people ofMiami through outstanding commitment to work assignments in the Parks & Recreation Department. 5) Vice Chair Hardemon presented a Certificate of Honor to Miami Northwestern Senior High School Girls Track & Field Team, paying tribute to their sixth consecutive state championship title; valuing their dedication, discipline, perseverance and fine qualities as distinguished athletes. Chair Gort: At this time we'll have the proclamations. Presentations made. Later... Chair Gort: Mr. Mayor, you're recognized. Unidentified Speaker: (UNINTELLIGIBLE). Chair Gort: You have it? Unidentified Speaker: Yeah. Chair Gort: Okay, great. We have one more. Presentation made. APPROVING THE MINUTES OF THE FOLLOWING MEETINGS: Motion by Commissioner Suarez, seconded by Commissioner Sarnoff, to APPROVE PASSED by the following vote. City ofMiami Page 4 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Votes: Ayes: 3 - Commissioner(s) Gort, Sarnoff and Suarez Absent: 2 - Commissioner(s) Carollo and Hardemon Motion by Commissioner Suarez, seconded by Commissioner Sarnoff, to APPROVE PASSED by the following vote. Votes: Ayes: 3 - Commissioner(s) Gort, Sarnoff and Suarez Absent: 2 - Commissioner(s) Carollo and Hardemon MAYORAL VETOES ORDER OF THE DAY Chair Gort: Do we have the minutes to be approved? Todd B. Hannon (City Clerk): Yes, sir. I have for Commission approval the regular meeting minutes from April 10 and May 8. Chair Gort: Okay, we have the quorum at this time. Commissioner -- well, we lost the quorum. They're back. Great. Thanks. Commissioner Suarez: I'm trying to get you a coffee, Mr. Chair. That's -- Chair Gort: Okay, thank you. The minutes. Commissioner Suarez: I move it. Chair Gort: It's been moved by Commissioner Suarez. Is there a second? Commissioner Sarnoff. Second. Chair Gort: Second by Commissioner Sarnoff. Is any discussion? Being none, all in favor, state it by saying "aye." The Commission (Collectively): Aye. END OF APPROVING MINUTES NO MAYORAL VETOES Chair Gort: Mr. Clerk, do we have any Mayor vetoes? ToddB. Hannon (City Clerk): Chair, there are no mayoral vetoes. Chair Gort: I need one more Commissioner so we can have a quorum. In the meantime, Madam Attorney, could you go over the procedures? Victoria Mendez (City Attorney): Thank you, Chairman. We will now begin the regular meeting. Any person who is a lobbyist must register with the City Clerk before appearing before the City Commission. A copy of the Code section about lobbyists is available in the City Clerk's Office. The material for each item on the agenda is available during business hours at the City Clerk's Office and online 24 hours a day at wwwmiamigov. com [sic]. Any person may be heard by the Commission through the Chair for not more than two minutes on any proposition before the City Commission unless modified by the Chair. If the proposition is being continued or rescheduled, the opportunity to be heard may be at such later date before the City Commission takes action on such proposition. Anyone wishing to appeal any decision made by the City Commission for a matter considered at this meeting may need a verbatim record of the item. A video of this meeting may be requested at the Office of Communications or viewed online at wwwmiamigov. com [sic]. No cell phones or other noise -making devices are permitted in the City ofMiami Page 5 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Commission chambers. Please silence those devices now. Any person making offensive remarks or who becomes unruly in the Commission chambers will be barred from further attending Commission meetings and may be subject to arrest. Any person with a disability requiring assistance, auxiliary aids and services for this meeting may notifi, the City Clerk. The lunch recess will begin at the conclusion of deliberation of the agenda item being considered at noon. The meeting will end either at the conclusion of deliberation of the agenda item being considered at 10 p.m. or at the conclusion of the regularly scheduled agenda, whichever occurs first. Please note, Commissioners have generally been briefed by City staff and the City Attorney on items on the agenda today. At this time the Administration or the Clerk will announce which items, if any, are being either withdrawn, deferred, or substituted. Thank you. Chair Gort: Thank you. Later... Commissioner Carollo: RE -- Chair Gort: Yes, sir, you're recognized. Commissioner Carollo: -- 9, 10, 11. Chair Gort: Mr. Torres. Mr. Torre: Yes, Commissioners. Vice Chair Hardemon: Well, before we -- Mr. Torre: I think -- Vice Chair Hardemon: -- move to that, I just wanted to -- something quick. RE.6, I move to continue that to the next -- well, I think I'll just move to continue it. I would like to -- us -- I would like for us to consider that. And what I'll immediately do is just move to pass it. I don't know if you've had enough time to review it, RE. 6. So -- Commissioner Carollo: Do we have to do that before we do --? Vice Chair Hardemon: Okay, we don't have to -- no, we don't have to -- no. Okay. Commissioner Carollo: Yeah. Vice Chair Hardemon: We can move on. All right, so where we are is this. You go ahead, Mr. Torre. Mr. Torre: Okay. Commissioners, I think what has been agreed to is that RE.12, which is the ballot question, will be voted on today. Items RE.9, 10, and 11 will be deferred until the next Commission meeting in June. Vice Chair Hardemon: And so -- in doing so, we give the safeguards for Mr. Berkowitz so he has his agenda item for August. We can also have additional time to sit down with people in the community and other stakeholders to work out the details of the minority participation agreement. Everyone -- every party was amenable to this agreement. It gives us the opportunity to bring forth the best agreements that we can at the next Commission meeting. And so if -- Chair Gort: There's a motion on the floor. City ofMiami Page 6 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Vice Chair Hardemon: Right, so there's a motion on the floor. So in light of this agreement that we've made, I withdraw that emotion -- that motion. Chair Gort: Does the seconder --? Commissioner Carollo: Withdraw -- Commissioner Suarez: Yes. Vice Chair Hardemon: And at this point, what I'd like to do is move to defer RE.9, 10, and 11 to the next Commission meeting. Commissioner Suarez: Second. Chair Gort: Do we have to take one at a time, or we can take all three up? Mr. Hannon: You can defer all three at the same time. Chair Gort: Okay. Vice Chair Hardemon: I moved it. It was second by Commissioner Suarez, I believe. All right. I have no further discussion about it. Chair Gort: Okay, no further discussion. All in favor, state it by saying aye." The Commission (Collectively): Aye. Ms. Mendez: And just to be clear, the dates and time will be, Mr. Clerk, for these deferrals? Mr. Hannon: Did you want to assign them a time certain? Ms. Mendez: At least the date. I just wanted the date to be -- Mr. Hannon. Yes. This will be deferred to June 26, the next Miami City Commission meeting. Chair Gort: July 26. Vice Chair Hardemon: June 26, right? Chair Gort: I mean, June 26. Mr. Hannon: June 26. Chair Gort: Sorry, June 26. Vice Chair Hardemon: June 26. Okay. City ofMiami Page 7 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 CONSENT AGENDA CA.1 RESOLUTION 14-00382 Office of Grants A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Administration ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO ACCEPT A TOTAL AMOUNT NOT TO EXCEED $153,162.00 IN THE FORM OF A REIMBURSEMENT GRANT ("GRANT") FROM THE CHILDREN'S TRUST ("TRUST') TO THE CITY OF MIAMI'S ("CITY'S") DEPARTMENT OF GRANTS ADMINISTRATION'S EDUCATION INITIATIVES (DEPARTMENT), FOR THE FAMILIES FIRST PARENTING PROGRAM ("PROGRAM"), AND AUTHORIZING THE CITY'S IN -KIND SERVICES MATCH INATOTAL AMOUNT NOT TO EXCEED $7,883.84 TO FUND THE PROGRAM ADMINISTERED BY THE DEPARTMENT AT VARIOUS CHILD CARE CENTERS WITHIN THE CITY; ESTABLISHING A NEW SPECIAL REVENUE PROJECT ENTITLED: "THE CHILDREN'S TRUST GRANT FOR EDUCATION INITIATIVES 2014-2015 FAMILIES FIRST PARENTING PROGRAM"; TO ACCEPT THE GRANT, AND APPROPRIATING THE GRANT FUNDING IN AN AMOUNT NOT TO EXCEED $153,162.00, WITH IN -KIND SERVICES TO BE APPROPRIATED BY THE CITY VALUED AT AN AMOUNT NOT TO EXCEED $7,883.84; FURTHER AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND TO EXECUTE A CONTRACT WITH THE TRUST, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, AND TO NEGOTIATE AND EXECUTE ALL OTHER NECESSARY AMENDMENTS, EXTENSIONS, RENEWALS AND MODIFICATIONS, TO IMPLEMENT THE ACCEPTANCE OF AND COMPLIANCE WITH THE GRANTAWARD FOR SAID PURPOSES, FOR THE PERIOD COMMENCING AUGUST 1, 2014 THROUGH JULY 31, 2015, WITH THE OPTIONS TO RENEW FOR UP TO TWO (2) ADDITIONAL SIMILAR PERIODS AT THE SAME NOT -TO -EXCEED AMOUNTS UNDER THE SAME TERMS AND CONDITIONS FOR THE PROGRAM, SUBJECT TO BUDGETARY APPROVAL AT THE TIME OF NEED. 14-00382 Summary Form.pdf 14-00382 Children's Trust Approval.pdf 14-00382 Legislation.pdf 14-00382 Exhibit.pdf This Matter was ADOPTED on the Consent Agenda. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Hardemon R-14-0214 CA.2 RESOLUTION 14-00460 Department of A RESOLUTION OF THE MIAMI CITY COMMISSION ACCEPTING THE BIDS Information RECEIVED ON JANUARY 14, 2014, PURSUANT TO INVITATION FOR BID Technology NO. 391322, FROM MCCI, LLC., THE LOWEST RESPONSIVE AND RESPONSIBLE BIDDER, FOR THE PURCHASE OF DOCUMENT MANAGEMENT SOFTWARE, HARDWARE, AND SERVICES, ON AN AS -NEEDED CONTRACTUAL BASIS, FOR AN INITIAL CONTRACT PERIOD City ofMiami Page 8 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 OF TWO (2) YEARS, WITH OPTIONS TO RENEW FOR THREE (3) ADDITIONAL ONE (1) YEAR PERIODS; AUTHORIZING THE ALLOCATION OF FUNDS FROM THE VARIOUS SOURCES OF FUNDS OF THE USER DEPARTMENT, SUBJECT TO THE AVAILABILITY OF FUNDS AND BUDGETARY APPROVAL AT THE TIME OF NEED. 14-00460 Summary Form.pdf 14-00460 Award Recommendation Form. pdf 14-00460 Bid Tabulation Sheet. pdf 14-00460 Invitation For Bid.pdf 14-00460 Back -Up From Law Dept.pdf 14-00460 Legislation.pdf This Matter was ADOPTED on the Consent Agenda. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Hardemon R-14-0215 CA.3 RESOLUTION 14-00386 District2- A RESOLUTION OF THE MIAMI CITY COMMISSION AUTHORIZING THE Commissioner Marc PLACEMENT OF A PLAZA DESIGNATION, PURSUANT TO SECTION David Sarnoff 54-136(2) OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, IN THE PUBLIC RIGHT-OF-WAY LOCATED AT HIBISCUS STREET AND DAY AVENUE, MIAMI, FLORIDA, TO COMMEMORATE ROBERT "BOBBY" STRINGER; SUBJECT TO ALL APPLICABLE PERMITTING REQUIREMENTS. 14-00386 Back -Up Document.pdf 14-00386 Legislation.pdf This Matter was ADOPTED on the Consent Agenda. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Hardemon R-14-0216 CA.4 RESOLUTION 14-00451 Department of Public A RESOLUTION OF THE MIAMI CITY COMMISSION, DECLARING NO Works OBJECTION AND SUPPORTING MIAMI-DADE COUNTY RESOLUTION NO. 269-14, ADOPTED MARCH 18, 2014, CODESIGNATING NORTHWEST2ND AVENUE FROM NORTHWEST 3RD STREET TO NORTHWEST 14TH STREET, MIAMI, FLORIDA, AS "CLARENCE PITTMAN, JR. WAY;" FURTHER DIRECTING THE CITY CLERK TO TRANSMITA COPY OF THIS RESOLUTION TO THE HEREIN DESIGNATED OFFICES. 14-00451 Summary Form.pdf 14-00451 Back -Up Document.pdf 14-00451 Legislation.pdf This Matter was ADOPTED on the Consent Agenda. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Hardemon City ofMiami Page 9 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 R-14-0217 CA.5 RESOLUTION 14-00427 District4- A RESOLUTION OF THE MIAMI CITY COMMISSION DECLARING NO Commissioner OBJECTION AND SUPPORTING THE CODESIGNATION BY THE FLORIDA Francis Suarez LEGISLATURE, PURSUANT TO SENATE BILL 820, DESIGNATING THAT PORTION WITHIN THE CITY OF MIAMI LIMITS OF UNITED STATES HIGHWAY 41/STATE ROAD 90/TAMIAMI TRAIL/SOUTHWEST 8TH STREET BETWEEN SOUTHWEST 37TH AVENUE AND PONCE DE LEON BOULEVARD, MIAMI, FLORIDA, AS "BETTY PINO WAY;" FURTHER DIRECTING THE CITY CLERK TO TRANSMITA COPY OF THIS RESOLUTION TO THE FLORIDA DEPARTMENT OF TRANSPORTATION, DISTRICT SIX, FOR SIGN INSTALLATION WITHIN THE NEWLY DESIGNATED ROADWAY. 14-00427 Senate Bill 820.pdf 14-00427 Legislation.pdf This Matter was ADOPTED on the Consent Agenda. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Hardemon R-14-0218 Adopted the Consent Agenda Motion by Commissioner Sarnoff, seconded by Commissioner Carollo, including all the preceding items marked as having been adopted on the Consent Agenda. The motion carried by the following vote: Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Hardemon END OF CONSENT AGENDA Chair Gort: Do I have a motion on the consent agenda? Commissioner Sarnoff. So move. Commissioner Carollo: Second. Chair Gort: It's been moved by Commissioner Sarnoff second by Commissioner Carollo. Any discussion? Being none, all in favor, state it by saying "aye." The Commission (Collectively): Aye. PUBLIC HEARING PH.1 RESOLUTION 14-00456 Department of Public A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Facilities ATTACHMENT(S), BY A FOUR -FIFTHS (4/5THS) AFFIRMATIVE VOTE, AFTER AN ADVERTISED PUBLIC HEARING, RATIFYING, APPROVING AND CONFIRMING THE CITY MANAGERS RECOMMENDATION AND FINDINGS, City ofMiami Page 10 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 PURSUANT TO SECTION 18-85(A) OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED ("CITY CODE"), WAIVING THE REQUIREMENTS FOR COMPETITIVE SEALED BIDDING PROCEDURES AS NOT BEING PRACTICABLE OR ADVANTAGEOUS TO THE CITY OF MIAMI ("CITY") FOR THE BRICKELL CITY CENTRE SPECIAL AREA PLAN, FOR IMPROVEMENTS AND ENHANCEMENTS TO PORTIONS OF CITY -OWNED PUBLIC RIGHTS -OF -WAY ALONG SOUTHWEST/SOUTHEAST 6TH STREET AND SOUTH MIAMI AVENUE, MIAMI, FLORIDA; FURTHER AUTHORIZING BY A FOUR -FIFTHS (4/5THS) AFFIRMATIVE VOTE, PURSUANT TO SECTION 255.20, FLORIDA STATUTES, THE CITY MANAGER TO NEGOTIATE AND EXECUTE A DEVELOPMENT MANAGEMENT AGREEMENT, IN SUBSTANTIALLY THE ATTACHED FORM, BETWEEN THE CITY AND BCC ROAD IMPROVEMENT LLC, A FLORIDA LIMITED LIABILITY CORPORATION, TO PROVIDE ALL MANAGEMENT, SUPERVISION, MANPOWER, EQUIPMENT, TOOLS AND ALL OTHER NECESSARY GOODS AND SERVICES FOR THE DESIGN AND CONSTRUCTION AND MAINTENANCE OF THE RIGHT-OF-WAY IMPROVEMENTS BASED UPON THE CRITERIA AND PROCEDURES SET FORTH IN SECTION 18-85(A) AND OTHER SECTIONS OF THE CITY CODE, AND THE CITY MANAGERS WRITTEN FINDINGS, ATTACHED AND INCORPORATED, IN AN AMOUNT NOT TO EXCEED ONE MILLION SIX HUNDRED TWO THOUSAND TWO HUNDRED FOURTEEN DOLLARS ($1,602,214.00); ALLOCATING FUNDS FROM DEVELOPMENTS OF REGIONAL IMPACT TRANSPORTATION FEES FOR SAID PURPOSE AND PROVIDING FORA REVERTER CLAUSE. 14-00456 Summary Form.pdf 14-00456 Notice to the Public.pdf 14-00456 Memo - Bid Waiver.pdf 14-00456 Legislation.pdf 14-00456 Exhibit.pdf Motion by Commissioner Sarnoff, seconded by Commissioner Suarez, that this matter be ADOPTED WITH MODIFICATIONS PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Hardemon R-14-0219 Chair Gort: PH.1. Henry Torre: Good morning, Commissioners. Henry Torre, director of Public Facilities. PH.1 is a resolution of the Miami City Commission, with attachments, by a four fifths affirmative vote, waiving the requirements for competitive sealed bidding procedures as not being practical or advantageous for the City for improvements and enhancements to portions of City -owned public right-of-way along Southwest/Southeast 6th Street; authorizing by a four fifths affirmative vote. Chair Gort: It's a public hearing; it's open to the public. Yes, sir, you're recognized. Mariano Cruz: Sure. Mariano Cruz, 1227 Northwest 26th Street. I read this, 'cause, you know, this money is going to be used for that, right? Mr. Torre: Perfect. Mr. Cruz: Is Swire paying something on that later on, or they don't put it; it's just everything go City ofMiami Page 11 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 to the Brickell City Centre, all that, because that is not yet on the pipeline. I mean, it's not contribute to anything to the tax assessor yet, right? Brickell -- BCC (Brickell City Centre), Florida Limited Liability Corporation, because I see many time -- I know that neighborhood, because 6th in there used to be -- they call it now "Tobacco Road," but for many years were the (UNINTELLIGIBLE). I used to go there andl used to cross the street, use the barbershop, and people -- I know the neighborhood, and it's a lot of money that going to be spend there, andl wish, I wish, too, that they use people that live in the City to work, because, I tell you, we paying a lot of money, and then the people from my neighborhood have to go to a contact, another city, to find work when they could walk to the Design District and get work, and we paying for that, Coastal, all these other companies. How come? If you go -- Go to a job site and find out how many people from Miami are working there. Most of the -- especially like construction people, they bring it from the outside and, you know -- I don't know. And also, when I see in the "not to exceed" 1, 602, 214, what does it mean; that it goes over? Who got to pay the excess over that? We pay them? We have to pay that? Chair Gort: We'll get your answers. Mr. Cruz: Okay. Well, we'll see. But, you know, it's a lot of money there, because the other day, I saw something there, four and six million dollar, all that on the same properties. Andl know it's a little bit of street there; it's not acres and acres; just a little portion there, but somebody is getting the benefit, and we paying. But -- Chair Gort: Thankyou, sir. Mr. Cruz: -- I am paying some of the transportation, because I don't pay City tax, but I pay transportation fee, andl pay gas tax and all that. Thankyou. Chair Gort: Thankyou, sir. Mr. Torre: Commissioner, to answer his question -- Chair Gort: Would you go into the whole transaction that's taking place, and what is happening in the improvement in that 6th Street? Mr. Torre: Sure. I'd like to introduce Spencer Crowley, here representing Swire Properties. Commissioner, before I pass it along, I do want to read in that we have added a reverter clause that states: "Substantial completion of the project shall occur on or before August 1, 2017. Upon written notice by Swire to the City, the City Manager may authorize two extensions of two years each." Chair Gort: Thankyou. Yes, sir. Spencer Crowley: Good morning, Commissioners. Spencer Crowley, 1 Southeast 3rdAvenue. You all will remember that we were here last Commission meeting for the donation of money to purchase the property; the City's acquisition of the property from the State and the City's transfer of the property to Swire. Today, we're talking about specifically a development agreement which obligates Swire to now use its money to build this traffic improvement on this site. The financing is relatively simple and set forth as follows: We believe this project is going to cost in the vicinity of $4.8 million. The $1.6 million that Mr. Cruz referenced that is in the item is all coming from DRI (Development of Regional Impact) transportation fees that Swire has paid to the City as a result of this project. So the balance of the project, whatever it is, is going to be paid for by Swire. So if it's $10 million, if it's $15 million, they pay the balance; they're obligated to do that. We think it's a great deal, because it basically leverages this $1.6 million of City fees with additional money coming in from Swire to make a much better project. So we're here obviously in support. And yesterday, the Cabinet aides in Tallahassee recommended approval of this. City ofMiami Page 12 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 We're going to the Governor and Cabinet next Tuesday up in Tallahassee for their final approval of the sale, so we hope you all will approve it today. Thankyou. And I'm here to -- Chair Gort: Thank you. My understanding -- Mr. Crowley: -- answer any other questions you may have. Thanks. Chair Gort: Thankyou. My understanding, this is going to extend 6th Street so people could be able to travel directly, and before, they would have to turn right into the Miami Avenue going into downtown. This way, they'll be able to go in through Southwest 8th Street. Mr. Torre: Correct. Chair Gort: Any further discussion? Anyone else from the public would like to address this issue? Seeing none, being none -- Commissioner Sarnoff. Mr. Chair. Chair Gort: -- discussions. Yes, sir. Commissioner Sarnoff. Make a motion and point out very clearly that these are called "impact fees, " not taxes. It's supposed to be spent where the impact is felt. Chair Gort: Thankyou. Any further discussion? Being none, all in favor, state it by saying "aye." ToddB. Hannon (City Clerk): Excuse me, Chair. I have a motion but not a second. Commissioner Suarez: Second. Chair Gort: It's been second by Commissioner Suarez; motion by Commissioner Sarnoff. All in favor, state it by saying "aye." The Commission (Collectively): Aye. Mr. Hannon: As amended. END OF PUBLIC HEARING SECOND READING ORDINANCES SR.1 ORDINANCE Second Reading 14-00377 Civil Service Board AN ORDINANCE OF THE MIAMI CITY COMMISSION AMENDING CHAPTER 40, ARTICLE III, OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, ENTITLED "PERSONNEL/CIVIL SERVICE RULES AND REGULATIONS", MORE PARTICULARLY BY AMENDING SECTION 40-113(A), TO REQUIRE THAT LEAVES FOR MILITARY TRAINING DURING AN ANNUAL PERIOD BE IN COMPLIANCE WITH FLORIDA STATUTE 115.07, AS AMENDED; CONTAINING A SEVERABILITY CLAUSE AND PROVIDING FOR AN EFFECTIVE DATE. City ofMiami Page 13 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 14-00377 Summary Form SR.pdf 14-00377 Memo - City Manager FR/SR.pdf 14-00377 Memo - Civil Service FR/SR.pdf 14-00377 Back -Up Documents FR/SR.pdf 14-00377 Legislation FR/SR.pdf Motion by Commissioner Carollo, seconded by Commissioner Suarez, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Hardemon 13466 Chair Gort: SR.1. Daniell Alfonso (City Manager): Commissioner, SR.1 is a ordinance to change the City Code to include statutory language that would allow for leaves for military training during annual periods to be in compliance with the statute. Chair Gort: Okay. Is there a motion? Commissioner Carollo: Move it. Commissioner Suarez: Second. Chair Gort: It's been moved by Commissioner Carollo; second by Commissioner Suarez. It's a public hearing. Is anyone in the public would like to address this issue? Hearing none, seeing none, public hearing is closed. Any discussion? Roll call. Mr. Alfonso: We got to read -- Chair Gort: Read it. The Ordinance was read by title into the public record by the City Manager. ToddB. Hannon (City Clerk): Roll call on item SR.1. A roll call was taken, the result of which is stated above. Mr. Hannon: The ordinance passes on second reading, 5-0. SR.2 ORDINANCE Second Reading 14-00344 Department of Public AN ORDINANCE OF THE MIAMI CITY COMMISSION AMENDING CHAPTER Works 54 OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, ENTITLED "STREETS AND SIDEWALKS"; AND CHAPTER 55 OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, ENTITLED "SUBDIVISION REGULATIONS", TO UPDATE REFERENCES TO AND COMPLIANCE WITH CURRENT CITY OF MIAMI AND STATE OF FLORIDA RULES AND REGULATIONS, TO DELETE OBSOLETE REGULATIONS, TO CORRECT ERRATA, TO CREATE A NEW SECTION 55-16, ENTITLED "CONSIDERATION OF EASEMENTS AND ALLEYS WHEN ALLEGED TO BE ABANDONED AS A MATTER OF LAW', TO ADDRESS THE CONSIDERATION OF EASEMENTS AND ALLEYS WHEN ALLEGED TO BE ABANDONED AS A MATTER OF LAW, AND TO ALLOW ENCROACHMENTS INTO SOUTHEAST City ofMiami Page 14 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 3RD STREET AND SOUTHEAST3RDAVENUE, MIAMI, FLORIDA; CONTAINING A SEVERABILITY CLAUSE AND PROVIDING FOR AN EFFECTIVE DATE. 14-00344 Summary Form SR.pdf 14-00344 Notice to the Public SR.pdf 14-00344 Notice to the Public FR.pdf 14-00344 Legislation SR.pdf Motion by Commissioner Sarnoff, seconded by Commissioner Suarez, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 4 - Commissioner(s) Gort, Sarnoff, Suarez and Hardemon Absent: 1 - Commissioner(s) Carollo 13467 Chair Gort: SR. 2. Daniell Alfonso (City Manager): Commissioner, as a point of privilege, on SR.2. we'd like to introduce our new Public Works director. Since we promoted Nzeribe Ihekwaba to Assistant City Manager, we have a new Public Works director -- Eduardo Santamaria (Director/Public Works): Good morning. Mr. Alfonso: -- Mr. Santamaria. I'm sorry. Mr. Santamaria: Good morning, Commissioners. Ed Santamaria, director of Public Works. SR. 2 is an ordinance amending Chapters 54 and 55 of the City Code to update references and compliance with City ofMiami and State of Florida rules and regulations, to delete obsolete regulations and correct printing errors. It also creates Section 55.16 to address alleys and easements deemed to have been abandoned, and it codifies the mediated agreement with Met Square for encroachment in the public right-of-way that preserves findings of archeological significance. Chair Gort: Thank you. It's a public. Is anyone in the public would like to address? Al Crespo: Good morning. Chair Gort: Yes, sir, you're recognized. Mr. Crespo: Al Crespo. So I'm just here to ask a question. I came before you all -- was it last meeting or the meeting before last? -- about the fees that were being used, you know, the process fees. At the time it was $2 a square foot. Does that impact on this ordinance? And what -- 'cause somebody was supposed to get back with a clarification of you know, when that fee was initially imposed and whether it could be increased. Chair Gort: Any other question, Mr. Crespo? Mr. Crespo: No, that's it. Chair Gort: Okay. The question is, "Is the impact fee is going to change?" That was the question that was asked the last meeting. Yes, sir. Nzeribe Ihekwaba: Good morning. Zerry Ihekwaba, Assistant City Manager. That fee is not part of this ordinance. The fee in reference is in regards to public hearings and is being managed in Chapter 62 of the City Code, which is under the purview of Planning & Zoning Department, and it has to do with the process for filing the ordinance before the Office of City ofMiami Page 15 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 RE.1 14-00435 Department of NET Administration Hearing Boards. It has nothing to do with this Chapter 54. Chair Gort: Thankyou, sir. Anyone else in the public? Seeing none, hearing none, close the public hearings. Discussion? Read it. Todd B. Hannon (City Clerk): Chair, I do not have a motion. Commissioner Sarnoff.. So move. Commissioner Suarez: Second. Chair Gort: Been moved by Commissioner Sarnoff, second by Commissioner Suarez. The Ordinance was read by title into the public record by the City Attorney. Mr. Hannon: Roll call on item SR.2. A roll call was taken, the result of which is stated above. The ordinance passes on second reading, 4-0. Chair Gort: Thankyou. END OF SECOND READING ORDINANCES RESOLUTIONS RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO ACCEPT REIMBURSEMENT GRANT IN A TOTAL AMOUNT NOT TO EXCEED $150,000.00 ("GRANT") FROM THE MIAMI-DADE COUNTY HOMELESS TRUST ("TRUST"); ESTABLISHING A SPECIAL REVENUE PROJECT ENTITLED:" 2014 CASH MATCH FOR THE EMERGENCY SOLUTION GRANT -OUTREACH PROGRAM" AND APPROPRIATING GRANT FUNDS, IN AN AMOUNT NOT TO EXCEED $150,000.00 TO PROVIDE OUTREACH, HOUSING PLACEMENT AND OTHER SERVICES TO HOMELESS INDIVIDUALS IN MIAMI-DADE COUNTY; AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A GRANT CONTRACT, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, BETWEEN THE CITY OF MIAMI AND MIAMI-DADE COUNTY AND ANY OTHER NECESSARY DOCUMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, IN ORDER TO IMPLEMENT THE ACCEPTANCE AND ADMINISTRATION OF SAID GRANTAWARD. 14-00435 Summary Form.pdf 14-00435 Legislation.pdf 14-00435 Exhibit.pdf Motion by Commissioner Sarnoff, seconded by Commissioner Suarez, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 4 - Commissioner(s) Gort, Sarnoff, Suarez and Hardemon Absent: 1 - Commissioner(s) Carollo City ofMiami Page 16 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 RE.2 14-00448 Department of Capital Improvements Program R-14-0220 Chair Gort: RE.1. Sergio Torres (Homeless Program Administrator): Good morning, Commissioners. Sergio Torres, City ofMiami Homeless Program. RE.1 is a resolution authorizing the City Manager to accept a grant from the Miami -Dade County Homeless Trust for $150, 000. That was for operation, general operation (UNINTELLIGIBLE) and other program cost. Chair Gort: Okay. Do I have a motion? Commissioner Sarnoff. So move. Commissioner Suarez: Second. Chair Gort: Moved by Commissioner Sarnoff, second by Commissioner Suarez. Anyone in the public would like to address? Seeing none, hearing none, close the public hearings. Mr. Torres: Thank you. Chair Gort: Discussion. Being none, all in favor, state it by saying "aye. The Commission (Collectively): Aye. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), ACCEPTING THE BID RECEIVEDAPRIL7, 2014, PURSUANT TO INVITATION TO BID ("ITB") 13-14-009, FROM WEST CONSTRUCTION, INC., THE LOWEST RESPONSIVE AND RESPONSIBLE BIDDER, FOR THE WEST END PARK NEW COMMUNITY BUILDING PROJECT NOS. B-30690 AND B-30690S, IN THE AMOUNT OF $2,252,191.00 FOR THE SCOPE OF WORK, PLUS AN OWNER CONTINGENCY OF $140,000.00 FOR A TOTAL NOT TO EXCEED AWARD VALUE OF $2,392,191.00; ALLOCATING FUNDS IN THE AMOUNT OF $2,392,191.00 FROM CAPITAL IMPROVEMENT PROJECT NOS. B-30690 AND B-30690S; AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT, IN SUBSTANTIALLY THE ATTACHED FORM, CONSISTING OF THE ITB DOCUMENTS AND ATTACHMENTS, FOR SAID PURPOSE. 14-00448 Summary Form.pdf 14-00448 Back -Up from Law Dept.pdf 14-00448 Legislation.pdf 14-00448 Exhibit.pdf Motion by Commissioner Suarez, seconded by Commissioner Sarnoff, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Hardemon R-14-0221 Chair Gort: RE. 2. Mark Spanioli: Good Commissioners. Mark Spanioli, director of Capital Improvements & Transportation. RE.2 is a contract award for the new community building at West End Park. City ofMiami Page 17 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 This is to West Construction in an amount not to exceed of $2, 392,191. West Construction was the lowest responsive and responsible bidder on this project, and we intend on breaking ground on July 7. Commissioner Suarez: Move it for discussion. Chair Gort: Okay, being moved by Commissioner Suarez. Commissioner Sarnoff. Second. Chair Gort: Second by Commissioner Sarnoff. Commissioner Suarez: Thank you, Mr. Chair. Just want to briefly thank again the chairman -- chairwoman of the County Commission, Rebecca Sosa, whose grant made this project possible. I want to thank the City Administration for working to get this bond money activated -- this County bond money activated and get this project going and started. It'll be -- I'm pretty sure, once Bryant is finished, it'll be the last park that had -- that will get a new facility in District 4, so every single park -- every single major park -- actually, every single park in District 4 will have a new facility. And the facility in West End is in very, very bad condition. It's very, very old. It's probably over 40 years old, andl think the residents of that area deserve a new project, just like the ones in Coral Gate and others. Thankyou. Chair Gort: Okay, thank you. Yes, sir, you're recognized. Al Crespo: Al Crespo. So I've written four stories and appeared before you last December about the northeast entrance to Simpson Park, and the fact that it's not been repaired. I did a story last week about it. When I was here in December, it was going to be repaired and it was supposed to be part of a Public Works project, and here we are in June, nothing's been done, it's even worse. If you're not going to repair it, if you don't want to have an entrance there, why don't you at least remove the -- all the rotted wood and all, 'cause that's a liability hazard. Even though you have yellow tape up there, nobody pays attention to the yellow tape. So either/or; are you going to fix it or not fix it? If you are, why haven't you? And if you're not, why don't you just lock it up and take those --flooring out of there. Chair Gort: Thankyou, sir. Anyone else? Okay, public hearing is closed. Any further discussion? Hearing none, all in favor, state it by saying "aye." The Commission (Collectively): Aye. Mr. Spanioli: Thankyou. RE.3 RESOLUTION 14-00459 Department of Police A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), PURSUANT TO SECTION 18-72(B)(15) OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, AUTHORIZING THE CITY MANAGER TO EXECUTE A MAINTENANCE AND SUPPORT AGREEMENT ("AGREEMENT"), IN SUBSTANTIALLY THE ATTACHED FORM, WITH MOTOROLA SOLUTIONS, INC., FORA TERM OF ONE (1) YEAR, WITH THE OPTION TO RENEW FOR FOUR (4) ADDITIONAL ONE (1) YEAR PERIODS, FOR THE MAINTENANCE AND SUPPORT OF THE DEPARTMENT OF POLICE COMPUTER AIDED DISPATCH SYSTEM, COMPOSED OF THE INFOTRAK, PREMIERCAD, PREMIERMDC SOFTWARE AND OTHER COMPONENTS, IN AN AMOUNT NOT TO EXCEED $453,360.00 FOR THE City ofMiami Page 18 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 RE.4 14-00299 FIRST YEAR, SUBJECT TO ANNUAL INCREASES AS SPECIFIED IN SECTION 5, EXHIBIT A, OF THE PROFESSIONAL SERVICES AGREEMENT; ALLOCATING FUNDS FROM THE DEPARTMENT OF POLICE ACCOUNT NO. 50001.251000.546000; FURTHER AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ALL OTHER NECESSARY AMENDMENTS, EXTENSIONS, AND MODIFICATIONS TO THE AGREEMENT, AFTER CONSULTATION WITH THE CITY ATTORNEY. 14-00459 Summary Form.pdf 14-00459 Pre-Legislation.pdf 14-00459 Back -Up From Law Dept.pdf 14-00459 Legislation.pdf 14-00459 Exhibit.pdf Motion by Commissioner Suarez, seconded by Commissioner Sarnoff, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Hardemon R-14-0222 Chair Gort: RE. 3. Luis Cabrera: Good morning, Commissioners. Deputy Chief Luis Cabrera, City ofMiami Police Department. RE.3 is a maintenance agreement for the computer -aid dispatch system in the Communications Department. This equipment is over 10 years old and this maintenance agreement will assist us with any issues we may have with it. Commissioner Suarez: Move it. Commissioner Sarnoff. Second. Chair Gort: Okay, it's been moved by Commissioner Suarez -- Commissioner Sarnoff. Second. Chair Gort: -- second by Commissioner Sarnoff. Any discussion? Seeing none, hearing none, all in favor, state it by saying "aye." The Commission (Collectively): Aye. RESOLUTION District 2- A RESOLUTION OF THE MIAMI CITY COMMISSION AMENDING THE Commissioner Marc GREEN CORRIDOR PACE DISTRICT TO EXPAND ELIGIBILITY FOR David Sarnoff FINANCING OF QUALIFYING IMPROVEMENTS TO SINGLE FAMILY AND DUPLEX RESIDENTIAL PROPERTIES LOCATED IN CITY OF MIAMI COMMISSION DISTRICTS 2 AND 4. 14-00299 House Bill 7179.pdf 14-00299 State Statute 163.08.pdf 14-00299 Pre-Legislation.pdf 14-00299 Legislation (Version 2).pdf Motion by Commissioner Suarez, seconded by Commissioner Sarnoff, that this matter be DEFERRED PASSED by the following vote. City ofMiami Page 19 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Hardemon Note for the Record: Item RE.4 was deferred to the June 26, 2014 Planning and Zoning Commission Meeting. Chair Gort: RE. 4. Commissioner Sarnoff. Mr. Chair. Chair Gort: Yes, sir. Commissioner Sarnoff. This is essentially the Ygrene PACE (Property Assessed Clean Energy) Program that we have approved for commercial. This program, the way I best describe it is a lot of people in the City ofMiami have access to a Visa card, a MasterCard, and that ordinarily means 18 percent money. This program affords them the opportunity to do improvements to their homes now, and with those improvements, it would be -- I call them "Green initiatives." I think everybody else refers to them like that, as well. But it allows you to harden your windows; hurricane proof windows; it allows you to put hot water heaters, solar. It affords you a lot of unique opportunities, and you then gain access to what is approximately 6 to 7 percent money, and what happens, as you know, Mr. Chair, it goes directly onto your tax bill. I know there are those up here uncomfortable with that, because they feel like if people don't pay their tax bill, well, then, they could lose their home. But nothing we do today changes that. If you don't pay your tax bill, well, you could lose your home. I think this affords Miamians a unique opportunity to gain access to money that a lot of people don't have access to at that unique rate, and I'm prepared -- well, I'm prepared for the debate on it. I think it's something that we said we would visit. Cities such as Coral Gables as well as about 11 other cities in our jurisdiction, so to speak, have approved something along these lines or have approved this exact ordinance. We've tried it for a number of months or years, I should say, as a commercial establishment, and before I get into too much detail on a debate, I'd like to hear what the debate would or would not be. Commissioner Suarez: Well, are you making the motion? Commissioner Sarnoff. I am making the motion. Commissioner Suarez: And I'll second the motion. Again, I don't want to just repeat everything that you said. I think we did say we were going to take a look at this. I am a big believer in this program, because I feel that it makes it very easy for people to make retrofits that are energy -efficient for their home. But putting the green aspect of it aside, just the home improvement fixes that you can make -- reroofing, windows -- I mean, in a hurricane -based environment, giving our residents the ability to be able to take advantage of this, for me, it's a tremendous benefit. I've heard all of the supposed reasons why it shouldn't be done; I'm not concerned with them, to be honest with you. I come from a real estate world, so I'm involved in lending transactions every single day -- first mortgages, second mortgages, lines of credit. I mean, all kind of things. Andl think what see oftentimes from clients is a frustration with financial institutions and not having the ability to lend, and not having the freedom of capital, and not being able to do some things for their home that they want to do, or making it so onerous and so difficult and so complicated that they give up. So, I mean, I think this is just another tool that our residents can use, you know, to make fixes to their home that happen to be energy -efficient, and also, I think would be -- there's a cost component, too. You know, when you make your house energy -efficient, it is a lot less expensive to pay electricity bills, because you're better insulated, you're better protected from the outside elements; not to mention the fact that you have an actual physical protection, which I can tell you, I have impact windows, I have a hurricane door -- I have hurricane doors, you know, and it gives me a great sense of comfort. I also have a home alarm, in case anybody's out there watching, but it gives me a great sense of comfort to know, with my young child in there, my wife, that we are pretty much a bunker, you know, as far as our home is concerned, you know. And being a victim of a home invasion City ofMiami Page 20 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 robbery when I was younger, that, to me, is a main -- major concern for me as a, you know, husband and a father. So, you know, I wholly support the program andl really urge and hope my colleagues do, as well. Chair Gort: Any further discussion? Commissioner Carollo: Mr. Chairman. Chair Gort: Yes, sir. Commissioner Carollo: Commissioner Sarnoff, in all fairness, I still haven't gotten over Fannie Mae and Freddie Mac not supporting this, so that's where I'm still -- I still haven't gotten over that hump with that, you know, and not to mention, you know, we've had the lawsuit with predator loaning and so forth, so I just -- you know, I represent an area that could be taken or could be -- let's just say it could be detrimental to that area if there is not your so-called professional people reaching out to them and offering something that may be a little different from what the reality is, and then they can get into some type of situation where it may not be good for them; not to mention that, you know, when Fannie Mae is saying that they will not honor or repurchase a loan that has this type of a lien on it, it's very difficult for me to support it. Chair Gort: Okay, anyone else? Commissioner Sarnoff. I'm going to defer to Commissioner Suarez to give the debate with regard to Fannie Mae and Freddie -- Commissioner Suarez: Yeah. Commissioner Sarnoff. -- but I do have something worth saying after that. Commissioner Suarez: And listen, I'm willing to defer this item, if we need to defer it, for a couple of weeks, you know, to have the Commissioner feel comfortable, but here's my issue with Fannie and Freddie: So when you borrow money, you have -- they're backed by an insurance, which is essentially Freddie Mac. It's a government program. And when you -- first of all, when you get a PACE loan, they cannot accelerate the mortgage on the basis of the PACE loan, so that's one issue that oftentimes is a big worry. Many people don't know this, but if you have -- if you get married after you buy a property and you put your wife or your husband on the property without notifying the bank, technically, that's a cause for acceleration in a mortgage. So I think the State statute deals with that issue, which is a big issue. In terms of Fannie and Freddie, the issue of refinancing, I think, is what it came out of and when you refinance a property, most times the bank is going to require you to pay off whatever is outstanding. So it's not that, you know, Fannie and Freddie won't refinance your house if you have a PACE mortgage; they're just going to demand that you pay it, just like if it was any other second mortgage. So I mean, to me, that's why the concern is not -- you can get a Fannie Mae loan, a refinance; they're just going to require that it be paid at closing, most likely. I don't know that they will subordinate themselves, but that's the same issue with any sort of second mortgage. If you had a second mortgage, you know, it's very likely that the bank will require you to pay off the second mortgage if they're going to, you know, be a first -- in a first position, unless the second mortgagee subordinates themselves to the first mortgage. So I mean, it's -- I think it's a little bit of a red herring, me, personally, but, you know, if you don't understand lending in that -- to that level of detail, I can understand why it can be very, very (UNINTET,TIGIBT,F). I had very big discussions with the City Attorney on it, and, you know, I felt comfortable that -- but if you need more time to look at it, you know, I have no problem deferring it and giving you a couple more weeks to look at it. Chair Gort: As you all recall, when we made the motion about a year ago, a year and a half -- I don't know how long ago -- I personally didn't like the program, the way it was, andl went along City ofMiami Page 21 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 with doing it with commercial; let's try it with commercial for a year. I don't know if you guys have been reading the minutes of their meetings. They are not being very successful, to my knowledge, okay? At the same time, I don't know if you guys have looked at the contract that the property owner has to look at and sign, and we all know how things works here in Miami. At the same time, the base lien is the lien superior to the mortgage. The lien creates the financing of legal priority with County taxes. Property owners are required by law to notify the bank and the lender. We all know that. The failure to repay the financing could result in tax deed sale; tax deed sale, okay? PACE is -- are responsible for the work done by the individual, by the contractor, the installation of the improvement just financed by them. So if the people -- we've had a lot of programs in our neighborhoods where the City helps people, and we have funding from CDBG (Community Development Block Grant) funds to help those individuals, and you all get the calls and the complaints that you get from the individual when the contractor does not finish the job and so on. Now, who is responsible for this? So I do have a lot of problem with going residential. I don't mind letting them staying in commercial, the same -- I mean, we have a lot of commercial properties within the City ofMiami, lots of them that could use this program, benefit from this program, so -- and that's the main reasons. I have many others in here, and you should go through the contract. You should read the minutes of all the process, and you'll ask a lot more questions. Commissioner Sarnoff. So, Mr. Chair, maybe what -- I don't know if Commissioner Suarez is willing to do this, but I know I would do a pilot project in District 2. I don't know if he wants to join me in doing a pilot project in District 4, and maybe let this -- take a relook at this in about 18 months' time. I mean, there have been about 18 businesses that have benefit -- or will benefit from this program. I hear what the concerns are. Commissioner Suarez: By the way -- Commissioner Sarnoff. Predatory lending will never go away, but the beauty of being concerned about predatory lending is you have to be comfortable with Ygrene, 'cause Ygrene is the provider and is the gatekeeper to make sure that predatory lending doesn't occur. Andl mean the concept of predatory lending. So we have approved Ygrene to do the commercial. Obviously, we have a certain amount of trust and respect for them. I think they would be -- do extremely well with residential. I think everybody -- Mr. Chair, maybe you'd be more comfortable; maybe Commissioner Carollo would be more comfortable just taking a look in 18 months to see how District 2 and dis -- and if District 4 would like to join -- District 4 have done with the program. Maybe nobody uses it and you say, "You know what? I don't have a significant interest." Maybe 30 or 40 people use it, and you might say, "That's enough to pique my interest." Commissioner Suarez: And let me just say off that, Mr. Chair, ifI may? Chair Gort: Yes, sir. Commissioner Suarez: You know, you're absolutely right; we're filing a suit of discriminatory lending, because of the practices that the banks have engaged in. We want banks to lend money to people in our communities, in our City, andl think the irony of it is -- the reason why it's called "reverse red -lining, " the litigation that we're in, is because before, it was called "red -lining, " and red -lining was when you would draw a red line and not lend in underprivileged communities; that was red -lining. Reverse red -lining is when you lend in those communities under worse terms than you lend in the other communities, so you're taking advantage of people. So, certainly, the ability to sue for discriminatory lending practice is always something that we have if any lender tries to take advantage of our residents. What you described as the issues related to what the loan -- what kind of priority the loan has and all that, that's our taxes, essentially, and it's actually somewhat beneficial to our residents, and I'll tell you why. If you don't pay your mortgage one month, they can foreclose on you the, you know, next day. And with taxes, it actually takes three years for your tax certificate to become a tax City ofMiami Page 22 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 deed, so you have three years to actually get your act together, or whatever the case may be, and actually pay it back, which is an interesting grace period; although nowadays, with the foreclosure dockets as they are, it takes a year and a half or two to foreclose. I think they're trying to work that down, but -- so I think interestingly, in a way, the borrower has more protections if it's included in your tax bill than they would if it was a regular second mortgage, for example. If you don't pay your second mortgage, they can accelerate the next month, and they can start the foreclosure process right away; whereas, if it's in your tax bill, it would take them three years to actually -- and by the way, after the three years -- Commissioner Sarnoff. And you have one -- Commissioner Suarez: It's a process. Commissioner Sarnoff. -- and then you have one year of redemption rights, which -- Commissioner Suarez: Right, you can redeem at any time -- Commissioner Sarnoff. Right. Commissioner Suarez: -- in that period So, you know, whereas, in a foreclosure, you can only redeem up to the foreclosure sale, which could be, you know, months. Chair Gort: We all understand that, but who's going to be responsible to make sure the work is being done correctly? And if it's not done correctly, who's responsible for it? Commissioner Suarez: I mean, I don't know if they want to address that issue. Chair Gort: Sure. Joseph Spector: Sure, yeah, we can address that. Commissioner Sarnoff. State your name for the record. Mr. Spector: Sorry. My name is Joe Spector. I'm the vice president of operations for Ygrene. We actually serve as a performance bond. The PACE program actually serves as a performance bond. We do not pay the contractor until the work has actually been inspected by the City, so it really reduces the chance for fraud. There isn't a 50 percent deposit at the start of work. There isn't a 30 percent payment on delivery of materials. The contractor, if he walks away from this deal without finishing the work, never gets paid, and the property owner doesn't owe a cent. So it has to be inspected by the City before the contractor actually gets paid. So we ensure that. We check every step of the process before that payment is sent to the contractor, and, obviously, before the property owner is billed. Commissioner Suarez: Andl will say this: When we first discussed this, they were very open and transparent about the fact that this program, its main success would be for residential homes, you know. Their -- they were fine, I guess, with having the ability to do it in commercial properties, but that was -- I don't think that was ever really the gist of what they wanted to accomplish. And I'll be honest with you. I mean, I'm thinking of redoing my roof you know. It's -- it would be an interesting tool to have to be able to, you know, redo your own, you know, personal things. I mean, it's something that -- and maybe it's -- maybe it has to do with the demographics of the district; I'm not sure, andl can understand that. But, yeah, I would be willing to do it on a pilot basis. I'd like to defer it, if you don't mind, to take a look at what the legislation would look like, and bring it back in two weeks, and then -- and we'll, you know, take a look at it then. City ofMiami Page 23 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Chair Gort: Okay, there's a motion. Commissioner Suarez: Yeah. I'll rescind my -- I think was the second. Was I the second or the mover? Commissioner Sarnoff. Second. ToddB. Hannon (City Clerk): You were the second. Commissioner Suarez: All right. Okay, so I'll move to defer it for two weeks with legislation that would create a pilot program in my district, andl think Commissioner Sarnoff? Commissioner Sarnoff. Yeah, I'll second, but I know Commissioner Hardemon want (UNINTELLIGIBLE). Chair Gort: Vice Chairman, you're recognized. Vice Chair Hardemon: The only thing that I think about when we talk about the pilot programs, I think the pilot programs are a good way if you want it in your particular districts to work, so that would be a way of appeasing all people. But at the end of the day, I think that our districts, in many ways sometimes, are very different, and in our constituents -- Chair Gort: Yep. Vice Chair Hardemon: -- and how they are able to handle certain type of contracts, I think, and their probability of actually being victimized sometimes are greater in other districts than they are -- than maybe in the condos, in -- I call it the condo district. I just made that up. Commissioner Carollo: That's what I was trying to say, Commissioner; just the words weren't coming out but -- Vice Chair Hardemon: Right, right, right. Commissioner Carollo: -- yes. Vice Chair Hardemon: But -- so -- and that's the only thing I think about. But if we move to defer it so that you can have your -- this program in your districts for the time being, I think that may be a good idea. Commissioner Suarez: Okay, cool. Thank you, guys. Chair Gort: Any further discussion? Being none, all in favor, state it by saying "aye. " The Commission (Collectively): Aye. Chair Gort: Thank you. Daniel J. Alfonso (City Manager): Mr. Chairman. Chair Gort: Yes, sir. Mr. Alfonso: I just want to make a clarification. When they talk about inspections, we're talking about the permit process, the Building Department inspection, et cetera, correct? Mr. Spector: That's correct; everything has to be permitted; everything has to be inspected. We City ofMiami Page 24 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 RE.5 14-00512 Department of Information Technology check the license numbers on the contracts to make sure they match who we're paying, everything. Mr. Alfonso: Thank you very much. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO ACCEPT DONATION, IN THE AMOUNT OF $100,000.00 FROM MICROSOFT, INC., TIED TO THE MICROSOFT OFFICE 365 VOLUME LICENSING AGREEMENT ("AGREEMENT"), TO PROVIDE CONSULTING AND PRODUCT TECHNICAL SERVICES AND ASSISTANCE FOR THE DEPLOYMENT AND ENHANCED PRODUCTIVITY OF THE MICROSOFT VOLUME LICENSED PRODUCTS; FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE AGREEMENT, IN SUBSTANTIALLY THE ATTACHED FORM, AND ANY OTHER NECESSARY DOCUMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, TO IMPLEMENT THE ACCEPTANCE OF SAID DONATION. 14-00512 Summary Form.pdf 14-00512 Memo - City Manager.pdf 14-00512 Back -Up - Microsoft Proposal.pdf 14-000512 Back -Up - Amendments.pdf 14-00512 Legislation.pdf 14-00512 Exhibit.pdf Motion by Commissioner Sarnoff, seconded by Commissioner Carollo, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Hardemon R-14-0223 Commissioner Sarnoff.. RE.5. Daniel J. Alfonso (City Manager): RE.5. Conrad Cross: Good morning, Commissioners. Conrad Cross, IT (Information Technology) director. This is a resolution of the Miami City Commission, with attachments, authorizing the City Manager to accept a donation, in the amount of $100, 000, from Microsoft, Inc., tied to the Microsoft Office 365 Volume License and Agreement; and to provide consulting and product technical services and assistance for the deployment and enhanced productivity of the Microsoft Volume License product; further authorizing the City Manager to execute an amendment to the agreement, in substantially the attached form and any other necessary documents, in a form acceptable to the City Attorney, to implement the acceptance of said donations. Chair Gort: Thank you. Commissioner Sarnoff.. So move. Commissioner Suarez: Second. Chair Gort: Moved by Commissioner Sarnoff, second by Commissioner Carollo. Any discussion? Seeing none, hearing none, all in favor, state it by saying "aye." City ofMiami Page 25 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 RE.6 14-00468 City Manager's Office (RE.6) 14-00468 The Commission (Collectively): Aye. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERLOCALAGREEMENT, IN SUBSTANTIALLY THE ATTACHED FORM, WITH THE FLORIDA DEVELOPMENT FINANCE CORPORATION, A PUBLIC BODY CORPORATE AND POLITIC ESTABLISHED PURSUANT TO THE FLORIDA DEVELOPMENT CORPORATION FINANCE ACT OF 1993 ("FDFC"), IN CONNECTION WITH THE ISSUANCE BY FDFC OF ITS NOT TO EXCEED $30,000,000.00 EDUCATIONAL FACILITIES REVENUE BONDS (MIAMI ARTS CHARTER SCHOOL PROJECT), SERIES 2014 ("FDFC BONDS") THE PROCEEDS OF WHICH ARE TO BE LOANED BY FDFC TO MIAMI ARTS, INC., MIAMI ARTS WYNWOOD, LLC, AND ONE OR MORE AFFILIATES THEREOF (COLLECTIVELY, "BORROWER") FOR THE FINANCING, REFINANCING, ACQUISITION, CONSTRUCTION, RENOVATION, AND EQUIPPING OF AN APPROXIMATELY 200,000 SQUARE FOOT FACILITY TO BE OWNED BY BORROWERS AND OPERATED AS A CHARTER SCHOOL KNOWN AS MIAMI ARTS CHARTER SCHOOL LOCATED AT 95 NORTHWEST 23RD STREET, MIAMI, FLORIDA 33127 (COLLECTIVELY, "PROJECT"); FURTHER AUTHORIZING AND DIRECTING THE CITY MANAGER AND ALL OTHER NECESSARY CITY OFFICIALS TO UNDERTAKE THE NECESSARY RELATED PROCEDURES AND TO NEGOTIATE AND EXECUTE ANY OTHER NECESSARY DOCUMENTS AND AGREEMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, WITH FDFC FOR THE INTERLOCALAGREEMENT FOR THE PROJECT; PROVIDING FOR CERTAIN OTHER MATTERS IN CONNECTION THEREWITH. 14-00468 Summary Form.pdf 14-00468 Back -Up - FDFC Staff Memo.pdf 14-00468 Legislation.pdf 14-00468 Exhibit SUB.pdf Motion by Vice Chair Hardemon, seconded by Commissioner Carollo, that this matter be DEFERRED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Hardemon R-14-0228 Note for the Record: Item RE.6 was deferred to the June 26, 2014 Planning and Zoning Commission Meeting. Motion by Vice Chair Hardemon, seconded by Commissioner Suarez, that this matter be RECONSIDERED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Hardemon RESOLUTION City ofMiami Page 26 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 City Manager's Office A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERLOCALAGREEMENT, IN SUBSTANTIALLY THE ATTACHED FORM, WITH THE FLORIDA DEVELOPMENT FINANCE CORPORATION, A PUBLIC BODY CORPORATE AND POLITIC ESTABLISHED PURSUANT TO THE FLORIDA DEVELOPMENT CORPORATION FINANCE ACT OF 1993 ("FDFC"), IN CONNECTION WITH THE ISSUANCE BY FDFC OF ITS NOT TO EXCEED $30,000,000.00 EDUCATIONAL FACILITIES REVENUE BONDS (MIAMI ARTS CHARTER SCHOOL PROJECT), SERIES 2014 ("FDFC BONDS") THE PROCEEDS OF WHICH ARE TO BE LOANED BY FDFC TO MIAMI ARTS, INC., MIAMI ARTS WYNWOOD, LLC, AND ONE OR MORE AFFILIATES THEREOF (COLLECTIVELY, "BORROWERS") FOR THE FINANCING, REFINANCING, ACQUISITION, CONSTRUCTION, RENOVATION, AND EQUIPPING OF AN APPROXIMATELY 200,000 SQUARE FOOT FACILITY TO BE OWNED BY BORROWERS AND OPERATED AS A CHARTER SCHOOL KNOWN AS MIAMI ARTS CHARTER SCHOOL LOCATED AT 95 NORTHWEST 23RD STREET, MIAMI, FLORIDA 33127 (COLLECTIVELY, "PROJECT"); FURTHER AUTHORIZING AND DIRECTING THE CITY MANAGER AND ALL OTHER NECESSARY CITY OFFICIALS TO UNDERTAKE THE NECESSARY RELATED PROCEDURES AND TO NEGOTIATE AND EXECUTE ANY OTHER NECESSARY DOCUMENTS AND AGREEMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, WITH FDFC FOR THE INTERLOCALAGREEMENT FOR THE PROJECT; PROVIDING FOR CERTAIN OTHER MATTERS IN CONNECTION THEREWITH, INCLUDING THE REIMBURSEMENT BY THE BORROWERS OF THE CITY'S REASONABLE COSTS AND EXPENSES. 14-00468 Summary Form.pdf 14-00468 Back -Up - FDFC Staff Memo.pdf 14-00468 Legislation.pdf 14-00468 Exhibit SUB.pdf Motion by Vice Chair Hardemon, seconded by Commissioner Carollo, that this matter be ADOPTED WITH MODIFICATIONS PASSED by the following vote. Votes: Ayes: 4 - Commissioner(s) Gort, Carollo, Suarez and Hardemon Absent: 1 - Commissioner(s) Sarnoff R-14-0228 Chair Gort: Mr. Manager, do you have any items you'd like to defer, continue? Daniell Alfonso (City Manager): No, Mr. Chair, there are no items to defer. Chair Gort: Does anyone in the Commission wish to defer, continue any item? Vice Chair Hardemon: Yes, Mr. Chairman. Chair Gort: Yes, sir. Vice Chair Hardemon: I would like to continue to the next agenda RE. 6. Chair Gort: Continue to the next one? Vice Chair Hardemon: Yes. So I move that we continue it. City ofMiami Page 27 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Chair Gort: Okay. Commissioner Carollo: Second. Chair Gort: It's been moved. Is there a second? Any discussion? Being none, all in favor, state it by saying "aye." The Commission (Collectively): Aye. Chair Gort: Any other Commissioner? Later... Vice Chair Hardemon: And Mr. Chairman. Chair Gort: Yes, sir. Vice Chair Hardemon: Just -- I just wanted to make sure I take care of RE.6. So what I'd like to do at this time is move to reconsider the motion for continuance. Chair Gort: Okay, there's -- Commissioner Suarez: Second. Chair Gort: -- a motion to reconsider. Commissioner Suarez: Yeah, second. Chair Gort: It's been move and second. Any further discussion? Being none, all in favor, state it -- Commissioner Carollo: No. Whoa, whoa, whoa, whoa. Yeah, yeah, yeah. I'm sorry; I do have discussion with this. Chair Gort: Wait a -- we're not -- Commissioner Carollo: Huh? Vice Chair Hardemon: This is the (UNINTET,TIGIBLE). Commissioner Carollo: Oh, this is reconsideration. Vice Chair Hardemon: Yeah. Chair Gort: Reconsideration, yes. Chair Gort: All in favor, state it by saying aye." The Commission (Collectively): Aye. Vice Chair Hardemon: Motion passes. Chair Gort: Okay. Vice Chair Hardemon: So is there something you wanted to ask about the item? City ofMiami Page 28 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Commissioner Carollo: Yeah. Are we going to take up RE.6 then? Vice Chair Hardemon: Yes. Commissioner Carollo: My issue with this, Commissioner, is why is the City acting as a conduit, you know? And again, you know, that does take up resources, and we're not charging a fee, so -- And again, I don't know if there's liability behind it or not, but we're talking, what, $30 million? So it's like wait a second; why are we a pass -through? Why are we obtaining --? You understand? Fernando Casamayor: Yes, Commissioner. Fernando Casamayor, your CFO (Chief Financial Officer). This -- it is a conduit financing deal. It is authorized by 159 of the Florida Statutes. We are not loaning any of our collateral. There's no collateral for the City. We're not backing any of these bonds. It is just the way that the financing deal is written so that the bonds that are issued for this project could be tax exempt. The Florida Development Finance Corporation are the ones that are issuing these bonds, and this is a standard conduit financing deal that many other governments around the State of Florida have already done. This is the first one that we've gotten as the City of Miami. I understand your point that some of our staff time has been used in order to put this here, and we shall take a look and see what kind of fees we could charge, if we have to, for the next time that we get this. Vice Chair Hardemon: Well, is there --? Mr. Chairman. Chair Gort: Yes, sir. Vice Chair Hardemon: Is there any way that we could --? Because this is a resolution that we passed on to an entity within the State so that the borrower can complete this project, but is there any way from the legislation or the resolution, as we have it before us, that we can include that -- the fee or the -- whatever costs that were incurred by the City or passed on to the developer? Victoria Mendez (City Attorney): Yes. As part of this resolution, we can determine what our costs time between the staffs office at the Manager's office and the staff with the City Attorney's Office, and we can give an amount, and they would have to pay for it as part of this resolution. Vice Chair Hardemon: Well -- Ms. Mendez: So there could be a clause, a "whereas, " or a section that says if the cost -- reasonable costs will be recouped. Chair Gort: The question is -- Mr. Casamayor: Borne by the borrower. Ms. Mendez: Hmm? Mr. Casamayor: Borne by the borrower. Ms. Mendez: Well, we're not going to pay -- Mr. Casamayor: No, by the borrower. Ms. Mendez: Right, for them to pay. Mr. Casamayor: (UNINTELLIGIBLE) be clear. City ofMiami Page 29 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Chair Gort: Excuse me. My understanding is, we have been in conduit before for Mercy Hospital and all -- hospital locations and a charge has been provided. We -- I think what Commissioner Carollo's worrying, that we don't set up a precedent that anybody comes and wants the same thing, okay? Commissioner Carollo: Right, because -- listen, we're -- the City's going to now, to a certain degree -- andl won't say "inherit" -- but take up extra work, you know. We definitely have to do something. I don't think we couldjust be a pass -through without, at the very least, having some Administration looking at the documents or -- Daniell Alfonso (City Manager): Commissioner, we're not opposed to saying -- Vice Chair Hardemon: I agree with you. Mr. Alfonso: -- if there's 20 hours of staff time that was taken and we cost $80 an hour, that's a $1, 600 fee. Commissioner Carollo: Yeah. Vice Chair Hardemon: Well -- and I'll put it this way. What we can do now is -- so I would like -- I move to amend this resolution to include a "whereas" clause that states that reasonable attorney's -- reasonable costs that were borne -- well, reasonable costs that are -- Ms. Mendez: Reasonable costs spent -- expended by the City and -- Vice Chair Hardemon: Right, there we go. Reasonable -- Commissioner Carollo: Or associated with our -- Ms. Mendez: With this item. Right. Vice Chair Hardemon: So reasonable costs that are associated -- reasonable costs that were created or -- I can't think of the word -- expended. Reasonable cost -- Ms. Mendez: Right, expended by City staff. That's it. Vice Chair Hardemon: In relation to this item shall be due to -- Ms. Mendez: Shall be paid by the borrower. Vice Chair Hardemon: By the borrower to the City ofMiami. Chair Gort: And that could be part of the cost of the issuance. Vice Chair Hardemon: Right. Chair Gort: Right? Vice Chair Hardemon: Okay. Chair Gort: Okay. Vice Chair Hardemon: So that's my motion. It wasn't pretty, but -- City ofMiami Page 30 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 RE.7 14-00519 Department of Planning and Zoning Chair Gort: Okay. Vice Chair Hardemon: -- it's done. Chair Gort: There's a motion. Is there a second? Any further discussion? Being none, all in -- Vice Chair Hardemon: Okay, is there a second? (UNINTELLIGIBLE) second. Commissioner Carollo: Second. Chair Gort: Second. Commissioner Carollo: Second as amended. Chair Gort: Any further discussion? Being none, all in favor, state it by saying aye." The Commission (Collectively): Aye. ToddB. Hannon (City Clerk): As amended. Vice Chair Hardemon: I think -- Commissioner Carollo: As amended. Chair Gort: As amended. Vice Chair Hardemon: So it passed totally as amended? Commissioner Carollo: Yes. Vice Chair Hardemon: Okay. Commissioner Carollo: I think we're pretty much done. Chair Gort: Thank you. Commissioner Carollo: Same issue we had; we need a 5-5 for our BCs (Boards & Committees), so -- I think we're done. RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), URGING THE UNITED STATES SECRETARY OF TRANSPORTATION AND THE FEDERAL AVIATION ADMINISTRATION TO PROVIDE NOTICE TO LOCAL AGENCIES AND STAKEHOLDERS INCLUDING THE CITY OF MIAMI AND TO ALLOW COMMENT ON RULEMAKING DECISIONS BEFORE IMPLEMENTING CERTAIN POLICIES RELATING TO THE OBSTRUCTION EVALUATION AERONAUTICAL STUDIES, AND TO RESPECT THE ZONE CLASSIFICATION DISTRICTS AND THE HEIGHT LIMITATIONS AS ESTABLISHED IN THE MIAMI-DADE COUNTY CODE OF ORDINANCES, ARTICLE XXXVII, ENTITLED "MIAMI INTERNATIONAL AIRPORT (WILCOX FIELD) ZONING"; DIRECTING THE CITY CLERK TO TRANSMIT A COPY OF THIS RESOLUTION TO THE OFFICIALS DESIGNATED HEREIN. City ofMiami Page 31 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 14-00519 Summary Form.pdf 14-00519 Legislation.pdf 14-00519 ExhibitA.pdf Motion by Commissioner Carollo, seconded by Commissioner Suarez, that this matter be ADOPTED WITH MODIFICATIONS PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Hardemon R-14-0224 Chair Gort: RE. 6 continued. RE.7. Daniel J. Alfonso (City Manager): RE.7. Francisco Garcia: Yes, sir. For the record, Francisco Garcia, Planning & Zoning director. RE.7 is a resolution addressed to the Federal Transportation Department as well as the FAA (Federal Aviation Administration), and this is essentially requesting that the height related to the Miami International Airport takeoff and landing pathways, the heights for buildings to be developed in areas in proximity to the airport be left as they are presently. It is an agreement that has been in place for approximately the last 15 years, and everyone has lived well by it; or alternatively, if those heights are going to be changed or modified to any extent that there be a public input process so that we can all understand what the repercussions might be. That's all have by way of presentation. I'll answer any questions. Victoria Mendez (City Attorney): Mr. Chairman. Chair Gort: Yes. Ms. Mendez: I just wanted to read the new resolution title. It was -- it's the same thing, but just to make everything a little clearer, if I could read that into the record? Chair Gort: Please do. Ms. Mendez: A resolution of the Miami City Commission, with attachments, urging the United States Secretary of Transportation and the Federal Aviation Administration to provide notice to local agencies and stakeholders, including the City ofMiami, and to allow comments on rule -making decisions before implementing certain policies relating to the obstruction, evaluation, aeronautical studies, and to respect the zone classification districts and the height limitations as established in the Miami -Dade County Code of Ordinances, Article 37, entitled "Miami International Airport/Wilcox Field Zoning"; directing the City Clerk to transmit a copy of this resolution to the officials designated hearing. Thank you. Chair Gort: Thank you. Commissioner Carollo: So move. Commissioner Suarez: Second. Commissioner Sarnoff. Second. Chair Gort: Moved by Commissioner Carollo; second by -- Commissioner Suarez: Second. Chair Gort: -- Commissioner Suarez. Any further discussion? Yes, sir, you're recognized. City ofMiami Page 32 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Al Crespo: Al Crespo. I support this. Like that? Commissioner Suarez: I do, very much. Mr. Crespo: Say it, say it. Commissioner Suarez: I like it. Mr. Crespo: And the reason I support it is I don't know if any of you all ever read the FAA approval for the sky rise. There was a very subjective comment in there about how this was best for the City when, really, that wasn't the purview of the FAA to make that decision. The decision that the FAA had to make was strictly on the height, but they got into the subjectiveness of -- it was a good deal for the City. So I think that if you have public hearings, then that's a better way to deal with these kinds of things. So I definitely approve of this. Chair Gort: Thank you, sir. Anyone else? Seeing none, hearing none -- yes. Commissioner Sarnoff. You know, Mr. Chair, this is actually more important than we're -- Chair Gort: Yes. Commissioner Sarnoff. -- giving it the short trip that it is, 'cause -- and let me just -- and everybody else comment, too. If this rule -making were to be done the manner it appears to be going, which is a non-public forum, this could bring the height of buildings down to 400 feet. A 400-foot building is probably a 60 percent reduction -- Commissioner Carollo: Understood. Commissioner Sarnoff. -- of every building that we are building in the City ofMiami. I mean, it looks a lot more like Colorado Springs and a lot less like the City ofMiami. We've been dealing with this at the DDA (Downtown Development Authority) in my district office for the better part of five years. We thought we had this resolved two years ago. I think all of our elected officials from Joe Garcia to I believe Marco Rubio has piped in on this, andl believe Bill Nelson has, as well, but it seems to still be heading down the track of a non-public -- I think it's called a comment period -- without a public hearing, and if this is implemented, it will change the skyline ofMiami forever. Commissioner Carollo: Absolutely. Chair Gort: I agree. Andl remember about 20, 25 years ago, there was some study, an analysis done by the FAA of the noise being created by the new jets and all that, and how our neighborhoods were going to be protected, and they were going to provide funding to be able to change some of the windows. And whatever happened to that? Mr. Garcia: You have a good memory, Commissioner Gort, of course. I happen to have been involved with that at the time, and the short answer to your question is two things happened. There were programs put in place to assist single-family residential property owners to help insulate residences. The rules preventing additional development of single-family residences in areas near the airport were strengthened, but I think most importantly, technology got better, and airplanes got less loud, and as a result of that, a significant amount of the noise intrusion that was caused by Miami International Airport has now subsided to some extent. Chair Gort: No, no, I still hear a lot of complaints, even here on Brickell. Mr. Garcia: Of course. And what was -- and wanted to add as well -- never actually City ofMiami Page 33 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 accomplished was a significant change to the takeoff procedures, which were originally intended to significantly mitigate the noise; that was never accomplished. Chair Gort: But I remember we had a lot of public hearings -- Mr. Garcia: Absolutely: Chair Gort: -- for that purpose. Mr. Garcia: Yes, sir. Chair Gort: Okay, thank you. Any further discussion? Commissioner Sarnoff. By the way, I didn't know Miami International Airport was once called Wilcox Field. Anybody else know that? Is that the name of it, Wilcox Field? Mr. Garcia: Originally it was, yes, sir. Chair Gort: When was that, in 1902? Mr. Garcia: Before living memory. Chair Gort: 'Cause I don't remember that one. Commissioner Sarnoff. Well, there's our historian. If he doesn't remember it, it wasn't there. Chair Gort: Okay, any further discussion? Being none, all in favor, state it by saying "aye. The Commission (Collectively): Aye. ToddB. Hannon (City Clerk): As amended. Chair Gort: As amended. RE.8 RESOLUTION 14-00476a District3- A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Commissioner Frank ATTACHMENT(S), APPROVING, SETTING FORTH AND SUBMITTING TO Carollo THE ELECTORATE A PROPOSED CHARTER AMENDMENT, AMENDING THE CHARTER OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, KNOWN AS CHARTER AMENDMENT NO. 2; AMENDING SECTION 29-B, ENTITLED "CITY -OWNED PROPERTY SALE OR LEASE -GENERALLY", TO REQUIRE ADDITIONAL VOTER REFERENDUM APPROVAL FOR A DEVELOPMENT ON CITY -OWNED PROPERTY WHERE THE DEVELOPER HAS NOT OBTAINED THE NECESSARY BUILDING PERMITS WITHIN FOUR (4) YEARS AND HAS NOT COMPLETED TWENTY (20%) PERCENT OF THE CONSTRUCTION WITHIN FIVE (5) YEARS OF THE EFFECTIVE DATE OF THE LEASE; CALLING FOR AND PROVIDING THAT CHARTER AMENDMENT NO. 2 WILL BE SUBMITTED TO THE ELECTORATE AT THE SPECIAL ELECTION TO BE HELD ON AUGUST 26, 2014; DESIGNATING AND APPOINTING THE CITY CLERK AS THE OFFICIAL REPRESENTATIVE OF THE CITY COMMISSION WITH RESPECT TO THE USE OF VOTER REGISTRATION BOOKS AND RECORDS; FURTHER DIRECTING THE CITY CLERK TO CAUSE A CERTIFIED COPY OF THE HEREIN RESOLUTION TO BE DELIVERED TO City ofMiami Page 34 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 (RE.8) 14-00476a THE SUPERVISOR OF ELECTIONS OF MIAMI-DADE COUNTY, FLORIDA, NOT LESS THAN 45 DAYS PRIOR TO THE DATE OF SUCH SPECIAL ELECTION; PROVIDING AN IMMEDIATE EFFECTIVE DATE FOR THIS RESOLUTION. 14-00476a Legislation (Version 2).pdf 14-00476a Exhibit.pdf Motion by Commissioner Carollo, seconded by Commissioner Sarnoff, that this matter be ADOPTED WITH MODIFICATIONS PASSED by the following vote. Votes: Ayes: 3 - Commissioner(s) Gort, Sarnoff and Carollo Absent: 2 - Commissioner(s) Suarez and Hardemon R-14-0225 Motion by Commissioner Sarnoff, seconded by Commissioner Carollo, that this matter be RECONSIDERED PASSED by the following vote. Votes: Ayes: 4 - Commissioner(s) Gort, Sarnoff, Carollo and Suarez Absent: 1 - Commissioner(s) Hardemon RESOLUTION District3- A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Commissioner Frank ATTACHMENT(S), APPROVING, SETTING FORTH AND SUBMITTING TO Carollo THE ELECTORATE A PROPOSED CHARTER AMENDMENT, AMENDING THE CHARTER OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, KNOWN AS CHARTER AMENDMENT NO. 2; AMENDING SECTION 29-B, ENTITLED "CITY -OWNED PROPERTY SALE OR LEASE -GENERALLY", TO REQUIRE ADDITIONAL VOTER REFERENDUM APPROVAL FOR A DEVELOPMENT ON CITY -OWNED PROPERTY WHERE THE DEVELOPER HAS NOT OBTAINED THE NECESSARY BUILDING PERMITS WITHIN FOUR (4) YEARS OF THE EFFECTIVE DATE OF THE LEASE WITH FORCE MAJEURE AND LITIGATION EXCEPTIONS; CALLING FOR AND PROVIDING THAT CHARTER AMENDMENT NO. 2 WILL BE SUBMITTED TO THE ELECTORATE AT THE SPECIAL ELECTION TO BE HELD ON AUGUST 26, 2014; DESIGNATING AND APPOINTING THE CITY CLERK AS THE OFFICIAL REPRESENTATIVE OF THE CITY COMMISSION WITH RESPECT TO THE USE OF VOTER REGISTRATION BOOKS AND RECORDS; FURTHER DIRECTING THE CITY CLERK TO CAUSE A CERTIFIED COPY OF THE HEREIN RESOLUTION TO BE DELIVERED TO THE SUPERVISOR OF ELECTIONS OF MIAMI-DADE COUNTY, FLORIDA, NOT LESS THAN 45 DAYS PRIOR TO THE DATE OF SUCH SPECIAL ELECTION; PROVIDING AN IMMEDIATE EFFECTIVE DATE FOR THIS RESOLUTION. 14-00476a Legislation (Version 2).pdf 14-00476a Exhibit.pdf Motion by Commissioner Carollo, seconded by Commissioner Sarnoff, that this matter be ADOPTED WITH MODIFICATIONS PASSED by the following vote. Votes: Ayes: 4 - Commissioner(s) Gort, Sarnoff, Carollo and Suarez Absent: 1 - Commissioner(s) Hardemon R-14-0225 City ofMiami Page 35 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Chair Gort: RE. 8. Commissioner Carollo: Mr. Chairman. Chair Gort: Yes. Commissioner Carollo: Thank you, Commissioner. Commissioner, this is nothing new. I originally brought this resolution back in July 12 of 2012, and in essence, what I'm trying to do here is ask the voters for their feedback with regards to projects that have been voter -approved and do not commence within four years. And the perfect example is Flagstone that got voter approval, but that voter approval doesn't mean you have an unlimited amount of time in order to get the project started and completed. In the meantime, with Watson Island, we didn't maximize our revenues. We didn't even use it for green space, you know, and there's so much talk about green space. We never used that parcel for green space. And the bottom line is that, listen, even though you get voter approval, you don't have an unlimited amount of time in order to fulfill the promises that you gave to the voters for that approval. So what I'm doing is that within four years, the developer needs to obtain all permits, and within the fifth year, they need to complete at least 20 percent of the work. Almost two years ago, I brought this to you all. I've been working diligently to address all of your concerns; for example, the force majeure and other issues, andl, you know, hope to gain your support and let the people decide, you know, if their voices need to be heard and respected. Thank you. Commissioner Suarez: Mr. Chair. Chair Gort: Thank you. Discussion. Commissioner Carollo: So I move. Chair Gort: It's been moved by Commissioner Carollo. Is there a second? Commissioner Suarez: Can I -- can we discuss it before that, please? Chair Gort: Go ahead. Commissioner Suarez: I mean, unless somebody wants to second it. I can't second it in its current form. I have to discuss it. Commissioner Sarnoff. No, andl agree. I was going to discuss it, as well. Commissioner Suarez: Okay. Commissioner Sarnoff. Do you mind ifI --? Commissioner Suarez: No, no, go ahead. Commissioner Sarnoff. Okay. You know, sometimes, I feel like I'm your protagonist up here, but let me -- because I think the debate's a good debate. However, I asked the City Attorney to look into every one of these RFPs (Requests for Proposals) to see have they resulted in litigation; can't find one that hasn't. Commissioner Suarez: Right. Commissioner Sarnoff. So you go through your process, you get approved by the Commission, you go out to referendum to the voters, you get your voter approval, and then what happens is you get a lawsuit; pretty much, it's happened throughout. Happened with Mr. Herbits, with the City ofMiami Page 36 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Flagstone; to my -- I was going to say "surprise" -- I guess I am surprised -- that case is still going on. They have -- the City's going to have to file a writ of mandamus. We had a -- we were all party to a pretty significant referendum for the Grove Bay site, and there are still -- well, one case was opened October 28, 2013; another case was filed September 26, 2013; another case was filed October 15, 2013. I'm told another case will be opened, and I'm here to tell you, Commissioner Carollo, I think a really bad lawyer -- that means a guy that has $404 in his pocket, no office -- or lady -- could probably hold you offfor 18 months easily. I'm telling you a pretty good lawyer probably hold you offfor 36 months and a very talented lawyer could probably hold you offfor five years. Commissioner Suarez: Or more. Commissioner Sarnoff Or more, 'cause he could file a writ of razzmatazz and -- Commissioner Suarez: For the Wechsler -- how long did the CRA (Community Redevelopment Agency) lawsuit last that tied up that property; 14 years? Commissioner Sarnoff Yeah. I -- yeah. I sort of can -- I'm giving you what I think are reasonable -- Commissioner Suarez: Right. Commissioner Sarnoff -- issues. So there's also a case called Battaglia, the Battaglia decision, andl think everybody files under the Battaglia decision. Battaglia just happens to be, I think, a Fifth DCA (District Court of Appeal) case, so somewhere north of here, and you'll see a picture of a crane going through a home that was built and destroyed by order of the court, because a lot of people think that they then can tell the developer that we have approved at this Commission; that the citizens have gone out for referendum and approved; that if they can get a court to side with them and these people start to build, that a crane will go through their buildings and tear them down. So what most develop -- what that means for the people who are the winners of the RFP, who are the winners of the referendum, they're not going to build until they actually have finalized the litigation and -- you know, for instance, the Museum of Science; let's use that as an example. That lawsuit was open November 9, 2010, and the City Attorney just got a summary judgment on May 2014. Now, I know you were at the Perez Art Museum opening. I think you'll probably go to the Museum of Science Art Museum -- museum opening -- and they took a risk. They risked the fact that they would win the litigation, and that they were going to build, and you have to admit, with a lot of public money. Commissioner Suarez: Well, I was going to say that's a -- makes a huge difference. Commissioner Carollo: And -- Commissioner Sarnoff I'm not sure it is a difference, because you're saying it's a difference in that a court is less likely to rule that somebody using public money would have to then tear down the property based on the merits of a lawsuit. Commissioner Suarez: No, what I'm saying is that in the case of a publicly financed bond issuance, there's a different pledge of security. Commissioner Sarnoff Oh, okay. Commissioner Suarez: So the bondholder is not as concerned about the lawsuit, because they have whatever pledge of security there is versus -- Commissioner Sarnoff You're right. I -- City ofMiami Page 37 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Commissioner Suarez: -- private financing. Commissioner Sarnoff. Right. And in the next analysis, I needed to say to Commissioner Carollo is he's right. I didn't get what he was saying. I didn't mean to say "he"; Commissioner Suarez. Commissioner Suarez: Yeah. Commissioner Sarnoff. So what he's essentially saying is they took the risk because their financing was in place. Commissioner Suarez: Right. Commissioner Sarnoff. So what Commissioner Suarez I think is saying -- and he's going to do a much better job of explaining this than I am -- who's going to finance you during the pendency of a litigation with the Battaglia decision out there? And that is what people base these lawsuits on. Andl won't say any more, Commissioner; let me just finish. So my concern is the amount of time you've created. My concern equally is there could be different ways of attacking this where you come back to Commission, a juridic body here, and we could make a decision, you know, that with some elements of excuse, please provide on the record why it is you were not able to accomplish these benchmarks that you set. And we, as a juridic body, could then make the determination as to whether we think there is a proper excuse, improper excuse. I could certainly throw out there their -- Hurricane Suarez comes, you know, in 2017, and we are down as a city for seven or eight months, as -- force majeure, et cetera. So I think your intent is great. In a commercial context, which I certainly will yield to Commissioner Suarez, who understands the financing better than me, I just don't know that what you've really put here is an impediment to allow somebody to fulfill the RFP and the referendum win. Commissioner Suarez: Let -- may I, Mr. Chair? Chair Gort: Yes. Commissioner Suarez: Let me just say a couple things. Okay, so first of all, I wholeheartedly -- andl think I've said this last year when you proposed it and this year when we first talked about it -- I wholeheartedly support what you're trying to do, 100 percent; I think it makes all the sense in the world. In fairness -- andl have to say this, Commissioner, you know, even though this is the second time it's before us in terms of two different years. In reality, I think the last time, we got it right before we had to make the decision, and, you know, five days before, but it's a Charter change. And then this one, we've gotten it, you know, two meetings before if you want to put it on the August ballot, and then with changes to this one. My -- so from a process perspective -- andl said this to you before -- I don't think it's the best process on how we should decide to put a Charter amendment, because as well-intentioned as it is, as a lawyer, there's the law of unintended consequences. You put something in there; you think it has -- it's foolproof or it's simple, and it ends up being very, very complicated. So that's just my process issue. But getting to the actual like language of it, I'm fine -- I'm almost better with it the way that it was before in the last Commission meeting, because, again, the concern that I have is I'm okay with not getting the, you know, building permits within the first four years, because I agree with you; if we lease something out and they don't start construction in four years, then in concept, I'm okay with that, and then they're not going to get a construction loan. There's not going to be a lending issue there, because the construction loan will not be funded until construction begins, so I'm okay with that. I'm concerned about the completing 20 percent within the fifth year because of a construction loan. I'm concerned about it because I don't know that 20 percent -- you know, if they do 19, if they do 18, if -- so I'm concerned about that. The second thing I'm concerned about is what Commissioner Sarnoff kind of articulated which is force majeure is -- City ofMiami Page 38 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 definitely makes sense to have as an excusable delay, obviously. I think that's well reasoned. But there are potentially other excusable delays, and when I had my briefing with the City Attorney, I said, 'Look, you know, I want to support this. You know, I want to help the Commissioner. I think this is good common sense legislation, but don't want to feel rushed, you know, andl don't want to feel like we're missing something that could be detrimental to a potential project in the future. So, you know, for me, I think there's got to be at least -- I don't know how to -- the thing is -- that's the thing. Since we have so much -- limited in time, I don't know how to -- I can't -- I don't want to draft it here on the dais in terms of there being, you know, some pending litigation or something; some other reasons that are -- and Commissioner Sarnoff is right, andl didn't even think about it from the way that he articulated it, which is every single Charter -- every single ballot question is -- ends up in litigation, every single one. If we put one on the ballot today, I have no doubt that those will as well. So, you know, you have to have some sort of an incorporation for that, andl don't know that four years necessarily without carving out an exception for that is enough time. And as I just -- I was going to say that the museums aren't a great example, because they are based on public financing and that financing is pledged to other probably non ad valorem revenue, you know, from the County which ensures payment, in essence. So the bondholders, all they care about is getting paid at the end of the day. They don't care whether you build it, whether you don't build it; as long as we get paid. So, you know, I think for private financing, it's much, much different. Commissioner Carollo: Mr. Chairman -- Chair Gort: Vice -- Commissioner Carollo: -- couldl --? Chair Gort: -- Chairman Hardemon wants to -- then I guess we're back to you. Yes, sir; you're recognized, sir. Vice Chair Hardemon: In spirit, I definitely agree with what Commissioner Carollo is doing here, because we obviously have a problem. We have a problem where we have projects that aren't completed or substantially even initiated, and more particularly, everyone thinks about one in -- one project, but, however, one of the things that I find to be very serious is making changes to the Charter or any type of Constitution; things of that nature. I don't think that you use the Charter or the Constitution to make changes that really could be policy decisions that you could implement in other ways. So -- and what I mean by that is when I look at the ordinance, how it would read, what happens if a developer does get the building permit within four years? If he does get the development [sic] within four years, but then he doesn't get 20 percent of the construction completed within five years? Because the way it's written, it's in conjunction; you have to do one and the other. So, I mean, there could be problems in this -- because it's coded in the Charter, it gives us some problems; whereas, because we understand what we're trying to do here, maybe in every single one of these development agreements we can include language that is -- that basically does what we need this to do, and that's kind of what my problem was -- is with it, so I'm just not moved to make a Charter amendment that is so definite, where there's so many obscurities that could come years down the line. I want something that's going to really stand the test of time, andl don't know -- and it's nothing about what, Commissioner Carollo, what you put here; it's just a matter of the way that business is. I don't know that this will meet that threshold, and that's my only issue. Commissioner Carollo: Mr. Chairman. Chair Gort: Yes, sir. Commissioner Carollo: Thank you. Let me address all the issues, and with regards to putting it in the language, have you seen the contract for SkyRise Miami? It's pretty thick, so there's a lot City ofMiami Page 39 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 of things to check, so it's usually an oversight, and the perfect example is with the Watson Island. Look at Watson Island; that was way before you got here, way before I got here, and they -- I've heard they stipulated they finally broke ground, but, you know, they've taken more time than all of our complete terms that we could have up here. Now, let me take one by one the issues. With regards to litigation, listen, I think there was litigation with the museums; they were built. There was litigation with the Marlins Stadium; it was built. Commissioner Suarez: Also publicly financed. Commissioner Carollo: Okay. There's litigation with Grove Harbor. Commissioner Sarnoff. And you don't see it moving, do you? Commissioner Carollo: Yeah, but what you don't see is that they are working diligently, pulling all the permits -- Commissioner Sarnoff. There's -- Commissioner Carollo: -- because they have to do it by a certain time. So while you actually don't see that they took possession, they know their time span and they're actually pulling all the permits. Commissioner Sarnoff. Can I just address that real quick with you? Commissioner Carollo: Sure. Commissioner Sarnoff. Can I just have a debate with him; is that okay? Chair Gort: Go ahead. Commissioner Carollo: And here's the thing, Commissioner: I have a fiduciary duty to the City. So who's going to bear the risk, you know? I mean, who's going to bear the risk? Are we going to have them -- property there just sitting and sitting? You understand what I'm saying? I think Commissioner Sarnoff. But you -- Commissioner Carollo: -- when you get into this project -- when you get in a project like this, the developer needs to know, hey, there's a certain level of risk. Commissioner Sarnoff. They know there's a risk, Commissioner. Commissioner Carollo: Right. Commissioner Sarnoff. But if you add this risk to it, you may do away -- and if that's your intention, that's okay, because you may get what you intend -- you will do away with the development or redevelopment of what is existing there. And my point is they should do everything they can do in parallel course until there's a point in time, as you know, you're going to break ground. And think Suarez will tell you before you break ground, you have your private financing in place. Commissioner Suarez: Can I just say one thing? Chair Gort: Go ahead. City ofMiami Page 40 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Commissioner Carollo: But with the financing, I think we're clear that it's not really an issue. Commissioner Suarez: No, it is. Commissioner Sarnoff. Oh, it is. Commissioner Suarez: On this second provision, it is, because I would have said last Commission meeting that it wasn't because -- andl commended you, because you changed it from last year to this year. And last year it was -- it had to be built within a certain period of time. Now, it had to commence, you know, by getting a building permit, which I think was a very intelligent change. I think the issue now is you have to have 20 percent of construction by the fifth year, and if you haven't gotten a construction loan because you have pending litigation, you're not going to be able to have 20 percent of the construction built. Now, one of the reasons why I think Scotty's is -- the Scotty's RFP -- you have a very responsible person. And why? Because we built an RFP that required someone to put up 50 percent of the money in cash, okay? So that was intelligent on our part. And by the way, that's -- goes back to my first point at the beginning of the day, which was we were consulted as a policy -making body on how we wanted to do that going forward. So -- and we made comments to that effect in our Commission meetings. So, you know, I think it's great that those -- that that company is already pulling permits and is already getting started, but they're not going to put 100 percent of it in cash. They're going to finance the other 50 percent. And they certainly not going to put 100 percent of it in cash with a pending lawsuit. I don't even think they would do that, even if they had the money. But you're not going to -- you're going to get 50 percent of it financed, and no bank is going to finance the construction of a project with a pending lawsuit; with a lis pendens. It's a title defect. I mean, you can't insure the $8 million in remaining -- you can't insure -- you can't get insurance for that; it's not insurable. So, I mean -- Commissioner Carollo: So what you're saying is that you're okay with the four years -- Commissioner Suarez: I am. Commissioner Carollo: -- which I have checked, obviously, with our director of -- Commissioner Suarez: Yes. Commissioner Carollo: -- Building and with, I guess -- Commissioner Suarez: Yeah. Commissioner Carollo: -- development, environment and they're okay with that; it's reasonable, four years, to obtain the warrants. I mean, the tunnel was built in four years, and you're talking a $1.2 billion project. Commissioner Suarez: It's publicly financed, too. Commissioner Sarnoff. But again, stay apples to apples. Commissioner Suarez: Right. Commissioner Sarnoff. He corrected me. Commissioner Suarez: Right. Commissioner Sarnoff. Pick an RFP on the waterfront, as you're doing, that is not a public project that is private, so it's public private partnership -- City ofMiami Page 41 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Commissioner Suarez: Right. Commissioner Sarnoff. -- that is going to use -- Commissioner Suarez: Right. Commissioner Sarnoff. -- a more conventional financing arm, such as bank financing. Commissioner Suarez: Right. Commissioner Sarnoff. There is no way, Commissioner, even in four years -- I have a slight suggestion for you; I don't think you'll take it, but I'm going to throw it out there: Instead of making it a Charter amendment, do an ordinance that it comes back before this Commission so this Commission could at least receive information. Sir, what was the reason, or madam, what was the reason for this delay? Well, I had a death in the family. I don't think that's going to compel you; however, we had Hurricane Wilma, we had Hurricane Francis, we had Hurricane Katrina, and as you know, Commissioners, Miami was out of commission for the better part of three of those four years. You might say force majeure. Commissioner Carollo: Commissioner, Commissioner -- Commissioner Suarez: Yeah, that is force majeure. Commissioner Carollo: -- in all fairness -- andl definitely do not want to insult anybody. What about Hurricane Lobbyist? Because let me tell you something, it seems like they really come up with great excuses. I mean, they -- I mean -- Commissioner Sarnoff. Yeah, but -- Commissioner Carollo: Listen, listen, we saw it in Watson Island. We saw it in Watson Island. I mean, from two -- 9-11, yeah. But from 9-11 to now, we had the biggest real estate boom in the history of the City ofMiami, and they still didn't build it. Commissioner Sarnoff. Well -- Commissioner Carollo: They still didn't get financed Commissioner Sarnoff. Whoa, whoa, whoa, 'cause from 9-11 to -- let's just go -- 2005, 2006, wherever you want to call the boom over -- they had a three-year piece of litigation, okay, which Commissioner Suarez: But -- Look, I don't want to get bogged down -- Chair Gort: I think the main point is the 20 percent, five years. Commissioner Suarez: And let me tell you, I don't think it benefits anyone to necessarily re -litigate Flagstone in this discussion, I'm going to be honest with you, because I don't think that's going to get us anywhere closer to the finish line here, to be honest with you, 'cause we both have their different perspectives; we voted differently on it, so let's not re -litigate it. My issue is I think your approach -- I think your idea is a good idea; let's start there. What concerns me is a little bit of what Keon said, what Commissioner Hardemon said, and a little bit what Commissioner Sarnoff said. Commissioner Hardemon said, `If you're going to amend the Charter, it has to be done very deliberately, very carefully, and under kind of" -- not unusual circumstances, but it's an unusually robust step that you're taking. So to have one Commission City ofMiami Page 42 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 meeting with one language, another Commission meeting with another language, I'm not sure that's enough time to go through legally all the issues; that's just my perspective. I'm trying, I'm trying, because I understand how much this means to you, andl understand that this is good common sense; this is a good common sense idea. So I'm really trying to work through this. I would have preferred that you brought it to me in January, and we could have debated it from January all the way to July and then made the decision. I -- that's just my personal preference; it doesn't matter. It's not -- it didn't happen, so, okay. So anyhow, so my issues to look at the language specifically is the part after 'four years." It says, "And has not completed 20 percent of the construction within five years of the effective date of the lease." I have an issue with that because of construction financing. And then the second one where it says -- or the second sentence where it says, "Such section shall not be applicable when delay in the performance or any obligations is as a result of force majeure." I think that's correct. I just think we may need to add something else to it, whether it's litigation -- I don't know. I don't know exactly what has to go in that box, but there has to be -- because of the fact that this is going to be a Charter change, as Commissioner Hardemon said, and we're confining ourselves to this construct after the voters vote on it, if they approve it, we better make sure that we think ahead of all the possible things that can happen so that we don't put ourselves in a box. Commissioner Carollo: Mr. Chairman. Chair Gort: Yes, sir. Commissioner Carollo: I'll address the five year -- the fifth year afterwards. Let's discuss about the more time and so forth. Yeah, andl wish I had an additional two or three weeks or additional month for SkyRise Miami, you know? And I'll be honest with you; you talk about rush. Well, let's talk about four years ago when I first became a Commissioner, and Flagstone popped up, andl was given a yea thick agreement at 8: 30 in the morning to make a decision at 9 a.m. at City Commission meeting. Commissioner Suarez: Right but -- Commissioner Carollo: Which is -- and hence why the five-day rule came about. Talk about rush, let's talk about the emergency ordinance that was advertised even before the first reading was approved with regarding [sic] to the Media Tower. I mean, not to mention -- I don't know -- we're in a little bit of a crunch now with regard to SkyRise Miami, you know? So -- Commissioner Suarez: But I -- Commissioner Carollo: And by the way, all we're doing here is saying, "Hey, let's go to another referendum and let the voters decide whether" -- that's all we're doing. Commissioner Suarez: I know that, I know that. Commissioner Carollo: Now, let's say -- Commissioner Suarez: We have a responsibility. Commissioner Carollo: -- that, you know what? We don't get it right. There's something -- there's some little niche here that we don't get right. Guess what? We could put it back to the voters. Don't get SkyRise Miami right and we have a 99-year lease that we cannot break, okay? So when you're talking about the process and the timing and all this, you know, I think we're being hypercritical when, in reality, we've made much more important decisions with a lot less time, andl just mentioned a few of them. Commissioner Suarez: Well, I think the fact -- andl think you're right; that all those decisions City ofMiami Page 43 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 were made with -- you know, like you said, kind of at the 11 th hour, and you were uncomfortable with them. So it surprises me that you would put us in the same uncomfortable position. Commissioner Carollo: I don't think so. I followed the process. I mean, it's been two years. I mean, July 12, 2012 is when I first brought this up. Commissioner Suarez: I know, but you brought up a different Charter change; it's a different language. Commissioner Carollo: No, no, no. There is some changes in the language, you know. Commissioner Suarez: It's different. Commissioner Carollo: Well, the reason why is because I addressed the issues that you all brought up. I mean -- Commissioner Suarez: Agreed. Commissioner Carollo: -- that's really what I did. I addressed -- Chair Gort: Gentlemen, I have the (UNINTELLIGIBLE) Vice Chair asking for the floor. Go ahead, Mr. -- Commissioner Carollo: Yeah, the thing is that I still haven't addressed all the issues that have been thrown at me. Chair Gort: Go ahead, finish. Vice Chair Hardemon: Yeah, but, Commissioner Carollo, I completely agree with you when you talking about rushing. I think that when I -- when we consider how a Commission actually operates, people create incidences or emergencies for us to consider at times and, you know -- andl haven't been here very long, butt don't like your emergency to become my emergency for something that I had nothing to do with. So there are occasions where things will be put on the agenda, and you say, "Well, you have to vote for it this time because if not, then X ' 'Y, ' and 'Z, "' and since I've been here, I mean, we've had to have at least three times that that's happened. Commissioner Carollo: Hence, the five-day rule. Vice Chair Hardemon: Andl completely -- so, you know, I think that might be a part of my discussion today with one of our agenda items. So, you know, I agree with you with that. Yet and still, I personally believe -- it is my belief that maybe we can achieve this in an ordinance rather than in a Charter amendment. Now, this is something that we can continue to talk about, but that's just how I feel about this, because a Charter amendment is not something that you can just change all the time. Commissioner Carollo: Understood. Vice Chair Hardemon: I mean, this is something that -- this is -- it has to go to a referendum. A referendum is going to cost you in excess of a million dollars. I mean, it's -- this is a major decision to be made, and to have a continual financial impact if there are hiccups in the building process; and not to mention, I mean, imagine what type of -- imagine how developers will feel or if they're willing to actually invest where they invest in the infrastructure, they invest in the architecture, they invest in the research and the permitting process and things of that nature, and they work very hard, and they spend millions of dollars to do the project in three and four years. And then when it hits this item and it's put before the voting body, and the voting body votes, City ofMiami Page 44 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 "Hey, well, we don't want you to be able to continue it." They lose all of that investment. I mean, who's going to be willing to put in a significant investment if there's a potential that by a simple vote, by a change of the wind, by the movement or the influx of new residents, that that project is no longer going to be something that they want to continue just because they read -- andl read -- like for instance, when we looked at the Miami Herald in relation to the soccer stadium and things like that in relation to Beckham, there were so many different statistics thatl said to myself "Well, if you present this question this way, you know you're going to get a vote in this fashion. If you present a question in the way that says" -- Commissioner Carollo: Right. Vice Chair Hardemon: -- "that this thing has not been built in four years and, per the Charter, if it hasn't been (UNINTELLIGIBLE) in four years, do you think it should continue to be built?" Someone is probably going to say, "No, let's do it again, let's find something else." So I just don't agree with the way that a Charter amendment kind of tackles this issue; that's just me personally. Commissioner Carollo: Mr. Chairman. Chair Gort: Go ahead, finish. Commissioner Carollo: Mr. Chairman -- and thank you. And, look, Commissioner, I may not be able to persuade you to change your mind; however, I can tell you that -- You're saying it's unfair to the developer. What about unfair to the City? What about unfair to the City that we have, you know, precious land just sitting there? And it's not like -- with this, it's not like we're hiding anything from anybody. We're telling -- we're letting them know, "Hey, you got four years." Four years, a $1.2 billion project was built, which was the tunnel. And less than that, you know, the Marlins Stadium was built in two and a half years. I mean, these are major projects that were built with litigation, you know, so it's doable. And like I said, I reached out; four years is definitely more than a reasonable amount of times. Commissioner Sarnoff But again, you -- but again, Commissioner, you're citing projects of public money. Commissioner Carollo: Well, I cited the Grove, 'cause of litigation; they're going through the process, they're getting their permits. Commissioner Sarnoff But they will not break ground until the litigation is resolved. They have not taken possession -- Commissioner Carollo: Okay. Commissioner Sarnoff -- and that possession has costed [sic] the taxpayers $360, 000. Commissioner Carollo: So what you're telling me is that you're -- that the big issue here is the fifth year; that's what you're telling? That's what I'm hearing; that the fifth year; that you're okay that within four years, they obtained all permits needed; however, in the fifth year, that's where you're -- have hesitation, because that's actually when the financing comes into play. Commissioner Suarez: I prefer it that way, which is -- which -- you know, that was changed from the last Commission meeting to this one. I thought you made a good change based on some of my concerns from last year to this year, which was changing the trigger point, so that's a concern. And the second concern is simply, you know, there are things that are out of the control of the person who has won the -- you know, that should be taken into consideration, because, in effect, what you are concerned about is the guy who wins and does nothing or the guy who City ofMiami Page 45 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 makes these promises and doesn't keep them, and that's a perfectly legitimate concern. I -- in fact, I don't have a problem putting it in the Charter, I really don't, andl told you that last year. Andl toldyou last year that would work with you on it, you know, andl have, and I'm trying, you know, to get it done, because I do think that, just like we put in the Charter that it should go to referendum, that's a Charter -- you know, a Charter -based change because of the uniqueness of the land and almost having a lack of trust in our own elected officials. I mean, that's really the bottom line when it -- what it comes down to at the end of the day. I don't have a problem saying, `Listen, if you're, you know, not diligently in starting, we're going to take away that decision from the policymakers, because the lobbyists or whatever the case may be, someone who has a persuasive argument, whatever the case may be -- that makes sense to me from a policy perspective. What I'm concerned about is making such a broad and permanent change, and it's not forever, ever. I mean, you can have -- like you said, you can have another referendum, you know, that's got its own issues, but it takes time and all that stuff. We're not going to be able to have it from one day to the next, so there's a problem. That's just me. I don't know; maybe it's the lawyer in all of us that kind of get irked with doing a fundamental change to the founding document of something quickly, andl think that may be a little bit of that, because we -- you draft contracts -- just to give you an example -- and it's funny, because you get better at drafting contracts, the more problems that you encounter. That's how you gain experience as a lawyer, as, "Oh, this happened to me. Now I'm going to put this version in the contract next time. Oh, this happened to me. I'm going to put this provision in the contract next time." That's how you -- your contracts kind of evolve over time. And then what happens is eventually, you realize you have too big of a contract; it enriches way too many things, and it's just basically superfluous. But anyhow, yeah, I have an issue with that section, andl think we need to put something else in for litigation or something -- you know, that's the only fear that I have. Commissioner Carollo: Well, let me ask you something. Yesterday in the CRA (Community Redevelopment Agency) meeting, you approved a contract, an agreement. Commissioner Suarez: Mm-hmm. Commissioner Carollo: I didn't hear the part about litigation there, andl saw you put a timetable on the project starting and commencing -- Commissioner Suarez: Yeah. Commissioner Carollo: -- and actually completing. And if not, there would be repercussion to that developer. Commissioner Suarez: Absolutely. Commissioner Carollo: So why is that different from what I'm trying to do? You know, they could be sued, and they may not be able to meet that timeline because of litigation. Commissioner Sarnoff Well, you're in a -- Commissioner Carollo: So, I mean, in all fairness, if they're sued, how could they meet that timeline? Commissioner Suarez: Can I answer that? 'Cause I voted on that. Commissioner Sarnoff Sure, go ahead. Commissioner Suarez: I got to jump in on that. Okay, that's a TIF (Tax Increment Fund) agreement which talks about you're not going to get funding if you don't do something by a certain period of time. So it's a totally different situation than the one that we're talking about. City ofMiami Page 46 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 We're talking about a lease, and we're talking about construction loan, and we're talking about getting something built. Commissioner Carollo: And we're talking about valuable City property. Commissioner Suarez: I agree, andl don't -- again, I don't -- Commissioner Carollo: We're talking about valuable City property that -- listen, you're not going to lend, bank, our City property for "X" number of years. Commissioner Suarez: Commissioner, I agree, but that's -- here -- andl don't want to -- again, I don't want to re -litigate Flagstone, but Flagstone was Virginia Key, was the Miami Marine Stadium. It was a piece of land It was inactive. We weren't getting any money for it. So, you know, you can say that it was land -banked for a decade and a half, or you can say the City of Miami actually got money for it for a decade and a half which it wasn't getting before, which before, it was just a graveyard. So I'm not -- again, I don't want to re -litigate Flagstone, because we voted differently on it, we all did, and there's just no point in, you know, doing that. I think your -- what your point is is -- again, I'm getting back to the positive stuff -- you have a good point. Your good point is well taken that, you know, if we give a big right like this through a referendum, that right should not be forever. That right should come back to the City in a certain period of time if this person is, for lack of a better word, a deadbeat developer. So if the person doesn't have the financing, they don't have no money, it should come back to the City; let the voters decide again, you know, what the project -- that makes all the sense in the world. We just want to make sure we don't put anything unintended in there, from my perspective; that's just my concern. Commissioner Carollo: Understood. So with that said, ifI work on the five years -- because we still have a long meeting. IfI table this and work on the five years -- Commissioner Suarez: Yes. Commissioner Carollo: -- with regards to litigation, like I said, I'm seeing Grove Harbor, or whatever their exact name is, they're still getting the permits and so forth, but would -- Madam City Attorney, do you see any issues with putting something with regards to litigation there ? What's your opinion on this? Victoria Mendez (City Attorney): With regard to litigation, it could get a little sticky, because you technically can have litigation that could come up just to delay something. So I don't -- and I mean on a developer side, there could be litigation; a bankruptcy litigation or something that might delay things, and then how do you --? Commissioner Suarez: Differentiate. Ms. Mendez: Right. So that's why the -- Commissioner Suarez: That's a good point. Ms. Mendez: -- litigation part was not a part of this, because there -- and then there could be other litigations that delay, and then we can't really -- Commissioner Sarnoff Or -- Commissioner Suarez: And let me just say -- Commissioner Sarnoff Or -- City ofMiami Page 47 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Commissioner Suarez: No, no. Let me just say something. Chair Gort: Excuse me, excuse me. Commissioner Suarez: Let me just -- the bankruptcy one is with -- Chair Gort: Excuse me. Hold it, hold it. Commissioner Suarez: Right. Commissioner Carollo: Let me -- Chair Gort: Go ahead. Commissioner Sarnoff. Or we could put or litigation that questions the validity of the vote or the Commission action to place the question for referendum. Now you've tailored it to the actual scenario of which the developer or the RFP winner fears. I still would suggest one thing to you, andl know -- it's sort of like hitting -- it's like hitting you on your most passionate point, so let me take my shot. I still think you could -- look, I want to try to help you accomplish what you want -- what your goal is, and your goal is a deadbeat developer. Nobody here wants to approve anything to or for a deadbeat developer. I -- Commissioner Carollo: By the way, Commissioner, to add to it -- Commissioner Sarnoff. Go ahead. Commissioner Carollo: -- yes, but at the same time, that has not respected the wishes of the voters and has not completed the promises made to that voter when he went out to referendum. Does he or she or -- Commissioner Sarnoff. That's why I labeled him a deadbeat developer. So -- Commissioner Suarez: Right, right. Commissioner Sarnoff. Okay. So I want to help you achieve that purpose and that point, but what -- but think you go about it, with all due respect, with a butter knife, and I'm trying to create a scalpel. Now, you said something -- I said something earlier, which is, you know, why don't we do this by ordinance? And you're saying, "Well, I don't want to be lobbied" or `7 don't want lobbyists surrounding City Hall." I ultra -agree with you on that. So I've seen lobbyists around this City, as well, but at the end of the day, it's your judgment, and your judgment is yours. And as a juridic body, like we're doing now, we're trying to fashion a consensus, andl mean, I don't care who the lobbyist is or isn't. He may -- he or she may bring up a good point; may not. It's the nature -- it's sort of like saying to a surgeon -- a surgeon says, "You know, I love being a surgeon; I just hate blood " You might have got in the wrong profession. Or a plumber saying, "You know, I love being a plumber; I just hate dirty water. " You might have got in the wrong profession. Or an elected official saying, `7 love making policy, but I really hate lobbyists." You might have got in the wrong profession. It's the nature of what we do. The nature of what we do is we make decisions and exercise our discretion. Every time we take that away from ourselves, it's a -- you're saying, "I lack the ability to exercise my discretion." And you could say, "Look, past practices have shown" whatever it is you're trying to show. I guess what I'm most -- best articulating to you is I agree, nobody wants a deadbeat developer, but make the deadbeat developer come back to this Commission. Make them have a public hearing. I'm sure you feel like some public hearings haven't gone the way you wanted to. There's been a public hearing that absolutely has gone the way I didn't want it to, but that's the nature of what we do, and the nature of what we do is we try to convince each other, as we're doing now. I still City ofMiami Page 48 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 think it'd be better suited as an ordinance. I still think the mechanism should be to come back to this Commission with a detailed explanation as to why it is you didn't make your four-year window. I could live with your four-year window, but then I can exercise -- or the guy or the girl sitting in this seat after me can then make the decision that's a valid point, that's an invalid point. Commissioner Carollo: Mr. Chairman. Chair Gort: Yes, sir. Commissioner Carollo: Now, the reason why I want it to go back to the voters is because it wasn't solely our decision. You're going back to the people that made that decision, which was the voters. And then I don't want to take that decision away from the voters and allow it to continue and continue and continue, promises that are being not met. So that's why I believe it should go back to the original body that actually gave that permission, which were the voters, and that's why I think it should go to referendum. And, listen, I mean, it's not like it's a big, big deal. All we're doing is allowing the voters -- I mean, you have term limits. We all do. Andl don't mean term limits as far as eight years or two-year. I'm saying as far as you have a term. We have four-year terms. In four years, we have to go back to the voters. A11I'm saying is, listen, if you don't get all the documents that you need -- and by the way, talking to the industry, it's definitely a reasonable amount of time; it's more than reasonable. A11I'm saying is go back to the people that originally gave you the approval. Commissioner Suarez: Mr. Chair. Chair Gort: Yes. Commissioner Suarez: Let me tell you why I like it, let me tell you why I like it: Because what happens inevitably in that four-year period is the developer will come back to us and say, "We spent 'X' number of dollars on this project. If you don't give us more time, we're going to sue you and you could be on the hook, liability -wise, for" -- in the case of -- sorry to bring up Flagstone, because I saidl wasn't -- but in the case of Flagstone, it was like $50 million. That was the threat always, like "We're going to get" -- "We're going to sue you for $50 million, and you're going to be on the hook for $50 million." What like about the Charter amendment is that it very clearly on the onset says, "You have 'X' number of time. If you don't come" -- `If you don't" -- so it takes the pressure off really all of us, not just -- it's not about decision -making, but if somebody comes to you and says, "We're going to sue you for $50 million," that's a tough decision. It's not about lobbyists. Forget about lobbyists. That is a tough decision to make, because do you risk it and say, "You know what? Their lawsuit has no credibility." But they have spent $50 million in hard money; you know what I mean? And do you risk your city being subject to a $50 million lawsuit, or do you -- you know what I'm saying? So it's that -- in that sense, there's a certainty of it, which I like, which is you come in, you know you have `X" number of time -- and by the way, that decision is taken away from the body, it's taken away from the lawyers, to be honest, which will tell us, "Oh, the sky is falling; we're going to get sued for $50 million." That's what's going to happen, and that's what does happen. And let me -- just to your point, everybody's a lobbyist here. Everybody is a lobbyist; some get paid, some don't get paid. Everyone is, 'cause everyone is trying to convince you of something. So, you know -- even the lawyers, they're trying to convince us, `Zook, don't make this decision 'cause you're going to get sued, and we're going to have to pay 50" -- "Look, we only have $60 million in reserves. This is going to deplete our reserves; we're going to go bankrupt." Chair Gort: Commissioner -- Commissioner Suarez: Doomsday. Chair Gort: -- why don't you make it five years changes and bring it back. City ofMiami Page 49 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Commissioner Carollo: I'll table it, do the changes with the -- Chair Gort: Bring it back and we'll get it done. Commissioner Carollo: Okay, I'll -- and we'll do it in the afternoon, perfect. And by the way, what you mentioned is addressed with the way it's written. They -- well, what you mentioned -- andl would say what you mentioned is not that we've had any conversations, but I saw in the newspaper, in the Miami Today what you mentioned. With that said, I'll table the item and we'll bring it back in the afternoon and work on it but -- and Commissioner Sarnoff, well, Commissioner Suarez is correct, and we're telling the developer up front, so it's not like we're hiding anything. We're saying it -- Commissioner Sarnoff. And just so you know, that piece of that debate affected me. As you would say, I didn't come up here with -- I came up here with an opinion; that opinion's been moved; your needle's been moved. Commissioner Suarez: You're welcome. Commissioner Sarnoff. He just convinced me that -- Chair Gort: Gentlemen, we can discuss it more. Yes, sir, you're recognized. Al Crespo: Al Crespo. You know what this discussion has revealed? Far more important than the specifics of this particular issue is that you all are part-time Commissioners, and you all got to start spending a lot more time doing your job, because if all you do is discuss these every two weeks, you know -- these are the kinds of issues that require sunshine meetings, that require some more in-depth thoughtful analysis and discussion amongst all of you or those of you that are interested and citizens who'd like to have some opportunity to speak about these issues. Commissioner Suarez: Good point. Mr. Crespo: I think this is a really important issue that's been raised here, but also, there are a lot of times when it's been pointed out in this discussion: you all are rushed, you all don't have enough time, you're basically put under a gun and said, "You've got to do this now, " right? And I think that there has to be some way that -- you know, there are a lot of City Commissions or whatever -- The County has committees and have committee meetings so that some of these issues are discussed at a committee level before they are brought to the entire Commission, andl think you all need to explore this as a possible way to try to, you know, improve the legislative process and the discussion on these issues. Andl would say, sir, you might consider maybe making this a November referendum instead of an August referendum, if that's a problem with process, and maybe change it to five years, like you just discussed, instead of four years. But agree there should be some cut-off date. So thank you. Commissioner Suarez: Mr. Chair, ifI may? Chair Gort: Thank you, sir. Commissioner Suarez: Yeah, I agree with you. Since you voted in my favor today, I agree with you. No, I really do. No, I think -- when I proposed the -- I don't know if you all remember; I'm sure you do. When I proposed the strong Mayor amendment, we had a sunshine meeting. Andl said at the last Commission meeting that what we're seeing happen with our discussion items, which oftentimes are very, very important issues, and this is one of them -- this was a discussion item at one point -- is we're leaving them to the end. We're tired; you know, we don't want to deal with it. So we really, really should think about having an additional -- I don't know if it's City ofMiami Page 50 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 maybe when we do CRA's, or whatever the case may be, but we should have an additional time where we're fresh to be able to discuss these matters, because they are very important, and they do require our attention and the Administration's attention. Chair Gort: Thankyou. Yes, sir, you're recognized. Albio Castillo: Good morning, gentlemen. My name is Albio L. Castillo. I lives [sic] in 2235 Southwest 16th Terrace. I have an idea that maybe could help you guys: Do a five-year statute of limitation unless it's in the litigation, and that would help you. If it's in litigation, there's nothing you could do. After the five years, it'll go back to the City and you (UNINTET,T IGIBT,F) to do an ROP. Chair Gort: Thankyou sir. Mr. Castillo: You're welcome. Chair Gort: Appreciate it. Thankyou. Okay, we'll table those. Commissioner Carollo: Table it. Chair Gort: We'll bring them back this afternoon. Later... Commissioner Carollo: Mr. Chairman. Chair Gort: Yes, sir. Commissioner Carollo: Real quickly, if you will indulge me, I would like to bring backRE.8 real quick. Chair Gort: Yes, sir. Commissioner Carollo: Over lunch, I worked in good faith with the City Attorney. We made adjustments in order to reach a consensus with my colleagues in order for the voters to, once again, be able to decide whether they want to further voice their opinion on a project with a deadbeat landlord. We e-mailed you the changes, andl took all of your suggestions with a healthy discussion, andl feel that with that healthy discussion, we always work as a team. And, yes, Commissioner Sarnoff, even though some would want to believe that you andl are always at odds and so forth, I appreciate that you suggested language to the City Attorney, and you're showing that we do and we can work as a team. So I, you know, listened to all of my colleagues, andl believe that the adjustments we did will satisfy all the issues that were raised. Chair Gort: Yes, sir. Commissioner Sarnoff. You know, I guess for your discussion and something Suarez said as well, sort of a light went off which is you get into this knowing you have four years to do something. You may get a different kind of person in here, and I think it takes care of the issue you want, which is you don't want -- let's just call him a deadbeat developer, all right, or someone that's brokering a deal, I think it's -- Commissioner Carollo: Absolutely, absolutely. Commissioner Sarnoff. Okay. City ofMiami Page 51 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Commissioner Carollo: So, with that said, I move. Commissioner Sarnoff. I second. Chair Gort: It's been moved and second. Is the -- ordinance. No, it's a resolution. Any further discussion? Being none, all in favor, state it by saying iiye. " The Commission (Collectively): Aye. Todd B. Hannon (City Clerk): As amended. And Madam City Attorney, did you want to put anything else on the record? Chair Gort: You want to read it? Victoria Mendez (City Attorney): Yes. Basically, as the discussion said, the question will now be: Shall the Miami Charter, Section 29-B, be amended to require additional voter referendum approval for a development on City -owned property where the developer has not obtained the necessary building permits within four years of the effective date of the lease?" Commissioner Sarnoff. Can I ask a question then? Because I guess I assumed something as my vote, but how then is the force majeure and then how then is the litigation -- Ms. Mendez: Provision -- Commissioner Sarnoff. -- concern addressed? Yes. Ms. Mendez: Right. The question is whether we're asking for an additional voter referendum. That's the true question. What we did in the language -- if you see the underlined language, it says the force majeure and the litigation provisions. So the underlined is -- and I'll read that for the record. "Any lease for the development of improvements of City -owned property, which has been approved by voter referendum, shall require additional voter referendum approval for development on City -owned property where the developer has not obtained the necessary building permits within four years of the effective date of the lease. Such section shall not be applicable when the delay in the performance of any obligation is as a result of force majeure or litigation that questions the validity of the vote or the City Commission action to place the question per referendum. Then the performance of such obligation shall be extended by the length of the delay." Commissioner Sarnoff. So -- Is it all right, Mr. Chair? Vice Chair Gort: Yes, sir. Commissioner Sarnoff. So the effect of a voter voting for -- "Shall Charter Section 29 be amended to require additional voter referendum approval for the development on City -owned property where the developer has not obtained the necessary building permits within the four years of the affected date of the lease?" is the official ballot language that the voter will vote for and yet, that voter will not be noted of a force majeure clause or of a litigation clause? Ms. Mendez: We don't think that it is necessary to put that. However, if you want to add 'force majeure" or "litigation," it could be easily added in two more -- two to three more words, which would be -- Commissioner Sarnoff. I -- City ofMiami Page 52 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Ms. Mendez: Yes. Commissioner Sarnoff. -- think it helps, Commissioner Carollo. I think it's going to help a sophisticated voter vote for this. Commissioner Carollo: If you feel, you know, hey, I'm willing to be -- Ms. Mendez: We have -- Commissioner Carollo: -- flexible with it. Now, at the same time, there's been lots of language that have gone to the voters and not everything specified, because unfortunately, it's just too long. Commissioner Sarnoff. Yeah, you have a certain number of words -- Commissioner Carollo: Right, 75 words. Now, this is a very simple question, you know, read by the City Attorney. It's a very simple question. I don't know how many words it actually is, but it's a very simple question. So if you really feel that we should put it in there -- Commissioner Sarnoff. I'm not saying I feel, but -- Commissioner Carollo: I don't know how in Spanish and that would -- this would have to be translated and that's the County's job on how you say 'force majeure, " so that's where -- Ms. Mendez: Right. There's -- the way that we could just amend it very easily, and it explains it, would be: "Shall the Miami Charter Section 29-B be amended to require additional voter referendum approval for a development on City -owned property where the developer has not obtained the necessary building permits within four years of the effective dates of the lease with force majeure and litigation exceptions?" Commissioner Sarnoff. Yeah, that -- Commissioner Carollo: Okay. Commissioner Sarnoff. -- at least a person sees there is a -- there could be -- Commissioner Carollo: Understood. Commissioner Sarnoff. -- valid business reasons. Commissioner Carollo: Understood, understood. Chair Gort: The maker of the motion accept the amendments. Commissioner Carollo: Right. Since -- well, since we voted already, do we now --? Commissioner Sarnoff. Do I need to do a motion for reconsideration, Mr. --? Mr. Hannon: The item was amended, andl think there's, you know, consent here from the Commission. I know that Commissioner Suarez was absent during the vote. If we would like, you can do a motion to reconsider. We'll -- Chair Gort: Yeah. Commissioner Sarnoff. I'm going to move to reconsider. City ofMiami Page 53 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Commissioner Carollo: Second. Chair Gort: Okay. Commissioner Suarez: Got to vote on it. Chair Gort: (UNINTELLIGIBLE) second. All in favor, state it by saying aye." The Commission (Collectively): Aye. Chair Gort: The new motion. Commissioner Sarnoff. Your motion. Commissioner Carollo: I make the motion to pass RE.9 with the amendments that was stipulated by the City Attorney. Now, should -- why don't you read it into the record so we're clear. Ms. Mendez: Yes. And just so we're clear, this is RE -- Commissioner Carollo: 8. Ms. Mendez: -- 8, okay. And the Charter question will be: "Shall the Miami Charter Section 29-B be amended to require additional voter referendum approval for a development on City -owned property where the developer has not obtained the necessary building permits within four years of the effective date of the lease with force majeure and litigation exceptions?" Commissioner Carollo: I -- well, I moved it. Commissioner Sarnoff. Second. Commissioner Suarez: Yeah. Chair Gort: It's been moved and second. Discussion. Commissioner Suarez: Yes, I -- two things. One, I'm going to vote in favor of it, because I think there was a sincere attempt to really incorporate my concerns, in particular. I really don't like the process, to be honest with you, andl think I'm kind of -- going to kind of put like a little bit of an objection on it. I'm going to vote in favor of it. I really, you know, think that -- andl hope -- andl -- you know, we obviously tried to make this work, andl think it's going to work, andl don't think -- from what I can see, I don't think we're doing anything that's going to have an unintended consequence, but then again, that's the whole purpose behind an unintended; it's not intended. You don't see it at the moment. So, you know, I think this is a good common sense, you know, legislation. I just was a little bit kind of bothered by the process and -- You know, we're going to have a Charter review board, andl certainly want to discuss some things on that, because I think that'll give us an opportunity to keep doing these type of things. Commissioner Sarnoff. And you're going to be my nominee to that board. Commissioner Suarez: Oh, thank you. I appreciate that. I would like to be on it. Commissioner Sarnoff. You guys love to nominate me for all boards. Commissioner Suarez: That's the one board thatl wouldn't mind being on, to be honest with you. City ofMiami Page 54 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Chair Gort: I will nominate all the (UNINTET,T IGIBT ,F). Okay, any further discussion? Being none, all in favor, state it by saying aye." The Commission (Collectively): Aye. RE.9 RESOLUTION 14-00523 Department of Public A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Facilities ATTACHMENT(S), BY A FOUR -FIFTHS (4/5THS) AFFIRMATIVE VOTE, AUTHORIZING THE CITY MANAGER TO EXECUTE A SECOND AMENDMENT TO THE MINORITY PARTICIPATION AGREEMENT ("AGREEMENT"), BETWEEN THE CITY OF MIAMI ("CITY") AND BAYSIDE MARKETPLACE, LLC, A DELAWARE LIMITED LIABILITY COMPANY, SUCCESSOR BY MERGER TO BAYSIDE CENTER LIMITED PARTNERSHIP, IN SUBSTANTIALLY THE ATTACHED FORM, TO MODIFY THE ANNUAL FOUNDATION CONTRIBUTION FROM THE GREATER OF TEN PERCENT (10%) OF THE "NET INCOME AVAILABLE FOR DISTRIBUTION", AS DEFINED IN THE RETAIL LEASE WITH BAYSIDE MARKETPLACE, LLC, OR $100,000.00 TO AN ANNUAL AMOUNT OF $350,000.00, WITH TWO PERCENT (2%) ANNUAL INCREASES FOR THE REMAINDER OF THE AGREEMENT. 14-00523 Summary Form.pdf 14-00523 Back -Up Documentation.pdf 14-00523 Legislation.pdf 14-00523 Exhibit.pdf 14-00523-Submittal-AI Crespo.pdf 14-00523-PowerPoint Presentation -Sky Rise Miami.pdf Motion by Vice Chair Hardemon, seconded by Commissioner Suarez, that this matter be DEFERRED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Hardemon Note for the Record: Item RE.9 was deferred to the June 26, 2014 Planning and Zoning Commission Meeting. RE.10 RESOLUTION 14-00524 Department of Public A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Facilities ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, A FOURTH AMENDMENT TO THE AMENDED AND RESTATED LEASE AGREEMENT, RETAIL PARCEL ("AMENDMENT"), BETWEEN THE CITY OF MIAMI ("CITY") AND BAYSIDE MARKETPLACE, LLC, A DELAWARE LIMITED LIABILITY COMPANY, SUCCESSOR BY MERGER TO BAYSIDE CENTER LIMITED PARTNERSHIP ("DEVELOPER"), IN SUBSTANTIALLY THE ATTACHED FORM, FOR CITY -OWNED PROPERTY LOCATED AT 401 BISCAYNE BOULEVARD, MIAMI, FLORIDA, TO MODIFY CERTAIN PROVISIONS OF THE LEASE AND RECOGNIZE THE SUB -GROUND LEASE TO THE SKYRISE MIAMI, LLC ("SKYRISE") TOWER SUBLEASE, AS STATED HEREIN, TO INCLUDE THE EXTENSION OF THE CURRENT LEASE TERM, PROVIDED ALL RENEWAL OPTIONS ARE VALIDLY EXERCISED, BY City ofMiami Page 55 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 FIFTY-THREE (53) YEARS; AMENDING THE RENTAL PAYMENTS AND TO INCLUDE THE TOWER RENT AND TOWER PERCENTAGE RENT AS DEFINED IN THE AMENDMENT; ESTABLISHING THE MINIMUM BASE RENT PAYMENTS ON THE EFFECTIVE DATE; REQUIRING RENT ADJUSTMENTS BASED ON APPRAISALS CONDUCTED EVERY TEN (10) YEARS FROM THE EFFECTIVE DATE FOR SKYRISE AND UPON THE FIRST RENEWAL TERM FOR DEVELOPER; ESTABLISHING A TRANSFER FEE FROM THE DEVELOPER AND SKYRISE; SUBJECT TO APPROVAL OF THE AMENDMENT BY REFERENDUM; WITH ADDITIONAL TERMS AND CONDITIONS AS MORE PARTICULARLY SET FORTH IN THE AMENDMENT, WHICH TERMS MAY BE AMENDED BY THE CITY MANAGER AND THE CITY ATTORNEY AS MAY BE NECESSARY IN ORDER TO MEET THE BEST INTERESTS OF THE CITY. 14-00524 Summary Form.pdf 14-00524 Back -Up Documentation.pdf 14-00524 Legislation.pdf 14-00524 Exhibit.pdf 14-00524-Submittal-AI Crespo.pdf 14-00524-PowerPoint Presentation -Sky Rise Miami.pdf Motion by Vice Chair Hardemon, seconded by Commissioner Suarez, that this matter be DEFERRED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Hardemon Note for the Record: Item RE.10 was deferred to the June 26, 2014 Planning and Zoning Commission Meeting. RE.11 RESOLUTION 14-00525 Department of Public A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Facilities ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, A FOURTH AMENDMENT TO THE LEASE AGREEMENT, GARAGE PARCEL ("AMENDMENT"), BETWEEN THE CITY OF MIAMI ("CITY") AND BAYSIDE MARKETPLACE, LLC., A DELAWARE LIMITED LIABILITY COMPANY, SUCCESSOR BY MERGER TO BAYSIDE CENTER LIMITED PARTNERSHIP ("DEVELOPER"), IN SUBSTANTIALLY THE ATTACHED FORM, FOR CITY -OWNED PROPERTY LOCATED AT 401 BISCAYNE BOULEVARD, MIAMI, FLORIDA, TO MODIFY CERTAIN PROVISIONS OF THE LEASE, AS STATED HEREIN, TO INCLUDE THE EXTENSION OF THE CURRENT LEASE TERM, PROVIDED ALL RENEWAL OPTIONS ARE VALIDLY EXERCISED, BY FIFTY-THREE (53) YEARS; AMENDING THE RENTAL PAYMENTS; INCREASING THE ALLOWABLE NUMBER OF PARKING SPACES IN THE GARAGE; ALLOWING THE ADDITION OF A RETAIL LINER TO THE GARAGE; REQUIRING RENT ADJUSTMENTS BASED ON APPRAISALS CONDUCTED UPON THE FIRST RENEWAL TERM FOR THE EXISTING SQUARE FOOTAGE; ESTABLISHING A TRANSFER FEE FROM THE DEVELOPER, SUBJECT TO APPROVAL OF THE AMENDMENT BY REFERENDUM, WITH ADDITIONAL TERMS AND CONDITIONS AS MORE PARTICULARLY SET FORTH IN THE AMENDMENT, WHICH TERMS MAY BE AMENDED BY THE CITY MANAGER AND THE CITY ATTORNEY AS MAY BE NECESSARY IN ORDER TO MEET THE BEST INTERESTS OF THE CITY. City ofMiami Page 56 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 14-00525 Summary Form.pdf 14-00525 Back -Up Documentation.pdf 14-00525 Legislation.pdf 14-00525 Exhibit.pdf 14-00525-Submittal-AI Crespo.pdf 14-00525-PowerPoint Presentation -Sky Rise Miami.pdf Motion by Vice Chair Hardemon, seconded by Commissioner Suarez, that this matter be DEFERRED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Hardemon Note for the Record: Item RE.11 was deferred to the June 26, 2014 Planning and Zoning Commission Meeting. RE.12 RESOLUTION 14-00526 Department of Public A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH Facilities ATTACHMENT(S), CALLING FORA REFERENDUM SPECIAL ELECTION TO BE HELD ON AUGUST 26, 2014, FOR THE PURPOSE OF SUBMITTING TO THE QUALIFIED ELECTORS OF THE CITY OF MIAMI ("CITY"), FOR THEIR APPROVAL OR DISAPPROVAL OF THE FOLLOWING REFERENDUM BALLOT QUESTION, "SHOULD THE CITY EXTEND THE EXISTING LEASES FROM FORTY-SIX (46) TO NINETY-NINE (99) YEARS WITH BAYSIDE MARKETPLACE LLC. ON THE 16.85 ACRES OF WATERFRONT LAND (BAYSIDE MARKETPLACE) CONDITIONED ON THE CITY RECEIVING: UPFRONT PAYMENT OF $10,000,000.00; MINIMUM GUARANTEED YEARLY RENT OF APPROXIMATELY $3,516,002.00 (WHICH ESCALATES); PERCENTAGE RENT; MINIMUM $27,000,000.00 IMPROVEMENTS TO BAYSIDE MARKETPLACE INCLUDING ADDITIONAL PARKING; INCREASED CONTRIBUTION TO MIAMI BAYSIDE FOUNDATION; AND DEVELOPMENT OF A $400,000,000.00 PRIVATELY FUNDED 1,000 FOOT OBSERVATION AND ENTERTAINMENT TOWER (SKYRISE MIAMI); DESIGNATING AND APPOINTING THE CITY CLERK AS THE OFFICIAL REPRESENTATIVE OF THE CITY COMMISSION WITH THE RESPECT TO THE USE OF VOTER REGISTRATION BOOKS AND RECORDS; FURTHER, DIRECTING THE CITY CLERK TO CAUSE A CERTIFIED COPY OF THIS RESOLUTION TO BE DELIVERED TO THE SUPERVISOR OF ELECTIONS OF MIAMI-DADE COUNTY, FLORIDA, NOT LESS THAN FORTY-FIVE (45) DAYS PRIOR TO THE DATE OF SUCH REFERENDUM SPECIAL ELECTION. 14-00526 Summary Form.pdf 14-00526 Legislation.pdf 14-00526 Exhibit.pdf 14-00526-Submittal-Javier Betancourt.pdf 14-00526-PowerPoint Presentation -Sky Rise Miami.pdf Motion by Vice Chair Hardemon, seconded by Commissioner Suarez, that this matter be ADOPTED WITH MODIFICATIONS PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Hardemon R-14-0227 Chair Gort: At this time we have a time certain at 11 o'clock. We're a little behind, and the time certain, the way -- my understanding, the Clerk recommend it to be heard, it'd be RE.12, RE.10, City ofMiami Page 57 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 RE.11 and RE.9, beginning with RE.12. Vice Chair Hardemon: May I be recognized first, after he introduces it?. Chair Gort: Excuse me? Vice Chair Hardemon: May I be recognized first? Chair Gort: Sure, you're recognized. Vice Chair Hardemon: Well after you -- you have to introduce it? Henry Torre: Yes. Good morning again, Commissioners. Henry Torre, director of Public Facilities. RE.12 is a resolution making provisions for a municipal election on January 26, 2014 [sic], for the purpose of submitting to the electorate at said election a ballot question and designating and appointing the City Clerk as the official representative of the Miami City Commission with respect to use of such registration books and records; authorizing and directing the City Clerk to publish notice of the adoption of this resolution and provisions thereof pursuant to applicable laws. One minor change we do have, Commissioners, on this question is the minimum improvement contribution of 22 million has now been changed to 27 million. Vice Chair Hardemon: Say that again please. Mr. Torre: The 22 million dollar renovation number has been changed to 27 million. Vice Chair Hardemon: Okay. Chair Gort: Okay. Let me tell you, this public hearing is going to be open for all the items that I read -- RE.12, RE.10, RE.11 and RE.9. Yes, sir, you're recognized, Vice Chairman. Vice Chair Hardemon: Thank you very much, Mr. Chairman. I'd like to start this out by reading minutes from 1985, and this was in relation to the Bayside Project Minority Participation 4/5ths Amendment. Fifty percent of all jobs to minorities within Miami -Dade County; appointing a five -member member to inspect and supervise the minority participation placed in the agreement. So this -- I'm sorry -- this is 1984, this is 1984; just before we made it to '95. And Commissioner Carollo, you might appreciate this, 'cause I'm reading from Commissioner Carollo at that time. "Mr. Mayor, I haven't had the time to go over the package that we have to approve here today. I think this contract is one of the most important contracts the City ofMiami will be entering. I for one am not ready to vote upon this rushed. I'm in favor of it, yes, but I want to make sure that every line is read carefully so that if there are any areas that we need -- that we still need to try to make some changes in that we can go ahead and bring those out in the open. I am not ready to make a vote upon this today, andl would like to ask my colleagues to defer this to the next Commission meeting." Just -- I open with that, because that is the spirit in which -- thatl am bringing this discussion about this agreement that we're looking upon today. It's interesting, because as I go through this -- I'm going to read you other excerpts from here -- the City ofMiami, the Administration did an excellent job negotiating the lease agreements. I'm so happy to have -- we have people that are here that actually signed -- Ms. Dougherty, you signed. She was one of the participants; she was a City Attorney at the time when this occurred, so I think she remembers this event. Lucia Dougherty: The amendment. Vice Chair Hardemon: The amendment, the amendment; I apologize. But -- so here we are with an agreement where we have a lease agreement that was significantly I think -- that we have significant benefits in; it's no question about that. Also, in the parking agreement, there's City ofMiami Page 58 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 significant benefits. And then you have the sky high deal with the SkyRise, and there are some benefits there also. But the one thing thatl think was left out of this whole thing was the minority participation agreement, andl remember -- I mean there's discussion, because some parts of the Administration believed that the minority participation agreement had nothing to do with the Commission. So basically, this was an agreement between the Bayside -- the Foundation and then also with the Bayside Company. Andl completely disagree with that, and that's why we are here. We're here to discuss these different items and why that item was kind of -- I want to say "left out in the cold"; why that participation agreement wasn't something that was significantly drafted in a way that's going to benefit the people of this community. And when they say "minority," they didn't mean just black people. I mean at the time that it was written, it was written for Latinos; it was written for blacks and it was particularly written for women, so it was an all-inclusive endeavor. And one of the things that stressed me and troubled me about this entire situation is thatl remember discussions where people say, "Well, at the time that this Bayside agreement was written, we were trying to give away land at Bayside." This was -- I mean Bayside wasn't a place where people wanted to be. Downtown wasn't a place people wanted to be. But when you read through the minutes, that's not what it sounds like. I'll read to you something that Commissioner Dawkins said at the time -- I'm skipping ahead a little bit. "This agreement means this minority participation agreement as the same may be modified or amended from time to time. Either we have a minority participation agreement or we don't. So now you have to explain to me if we have a minority participation packet, what makes it necessary to amend it from time to time?" So this starts a discussion about why is it that we need a four fifths agreement? Why is it that it's important that four fifths of us agree that this must be amended to change the way these benefits are given out? Not to mention, that vote in and of itself was unanimous, was unanimous -- Mayor Ferre, Commissioner Carollo, Commissioner Plummer, Commissioner Dawkins and Vice -Mayor Perez, Jr. at that time. At the time, you had a -- Commissioner Dawkins saying, "At this" -- he was referring to a section regarding construction -- "This section is fine. This section is beautiful, but unless we in the minority community get some of the money in construction, we will have no money to be tenants in the development. So right now, my concern is not when you get it developed and who are you going to put in it after you build it. My concern is how those of us who are not employed now in the minority communities are going to go to work and earn some money to eat and be here to participate when you complete it." At the time, you had Commissioners that had the foresight to realize that the money was also in the development; not in just being able to establish a business at Bayside. Mr. Dawkins goes on later, and he reads or he states, `7 have a borrow" -- no -- `7 have to borrow to a" -- `I have to borrow a page from the Mayor's book. That's my opinion. Now, let's go to 'B.' 'B' must read: 'Fifty percent of all construction jobs under construction, contracts to be filled by minorities living in Dade County. We're not going to have a contractor bring in his minorities in here from another country, county, state or something, and putting them to work and tell me that he met his minority participation. I'm not going to have that. " As I read through them -- and these are the same issues that we're dealing with today. We're dealing with the minority participation agreements. We're dealing with the weekly change in the CSBE, CSB, however you want to pronounce it or say it; we have those different type of things. But Commissioner Carollo agreed, which is all -- he said, "Which is already happening in this particular project." So Mr. Dawkins says: `Mr. Mayor, I'm going to make another motion that on Article 2.1(b), 50 percent of all construction jobs under the construction contracts be filled by minorities living in Dade County." There was a vote. It was unanimously decided in that. I'm saying this to say I feel like this contract that we're in right now, this amendment, it starts -- it -- we're losing the spirit -- money is important -- but we're losing the spirit of what was happening at that time; why this was one of the most important agreements that there was besides the lease agreement, besides the parking structure. They go on to when they actually created the foundation, which was created to administer -- and this is Mr. Weaver, so I'm assuming Mr. Weaver was a part of the business -- so Mr. Weaver says, "Which was to create and administer a loan guarantee program for venture capital loans to minority business enterprise and to create a vocational, educational scholarship fund for minorities, and to provide technical assistance." And then it goes into the actual physical makeup of that committee. And Mayor Ferre says -- City ofMiami Page 59 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 that's something else -- the more important -- "The important committee is the foundation, 'cause that's where the money is going to be." I want to read you one more thing in this packet that I have of minutes. Mr. Perez says, `I would like to have -- and also about minority committee that Commissioner Plummer mentioned today, I think that Mr. Weaver mentioned" -- you know how we talk sometimes -- "that is not an important committee, but I think that it's important that we have a strong participation of this Commission. I would like to propose a" -- "to appoint another committee to inspect the supervisor's contract about minority participation. This minority committee mentioned at the end of the developer agreement would maintain the minutes of the committee meeting at his office in the City ofMiami, available for inspection by the City and the members of the committee. I think it would be healthy to appoint committee by the City ofMiami Commission a committee of five members in order that we have the proper information about minority participation on the issue. I want to make that a formal motion." That was approved. Mr. Chairman, I just ask that you would indulge me for a few more minutes. Thank you, sir. In another meeting -- it is the next scheduled meeting -- Commissioner Carollo says, "Under discussion. Mr. Mayor, Mr. Mayor, I fully expect that the previous resolution that we passed be incorporated as a part of this contract and that the" -- I can't pronounce it correctly -- "but if the Rouse company" -- Rouse, pronounced it -- "if the Rouse Company does not come back to this City Commission with concrete plans and concrete evidence that they, together with whomever, cannot provide the capital, the access to the capital that minorities are going to need to participate in, this -- in particularly black communities -- that this deal, this contract is off. " Commissioner Dawkins follows up and says, "Under discussion. I would like to also" -- `I would like" -- `I would also like to say that in the event that this comes back, if it is not amended to show that 17.5 percent of the total dollars will go to Latins, 17.5 percent of the total construction dollars go to blacks and that 65 percent will go to local trade unions, then I will be voting with Commissioner Carollo against it." Andl read that to you to say that this contract was made on the backs of a minority participation agreement. Now, today, the way that the law spells it out for us is different. The way that we have to construct how it is that minorities or communities of minority people will receive a benefit from a contract as such, they're different. However, what I'm seeing here is that the minority participation agreement wasn't the least of it; it was the most of it. It was something that the people in the community; it was something that the Commissioners -- and I'm sure there are people here that'll talk to the historical significance of it all, but there seems that the Commissioners had in front of them and said, "This has to be done this way. This has to be done this way." But when I see it today, when I see the order of it being placed -- of the minority participation agreement being placed at the end of it all, I think that we've gotten awayfrom the spirit of this deal. We've gotten awayfrom the spirit of what's happening. What does the minority committee -- what does that committee have to say about how the dollars have been used? What does that committee have to say about the participation agreements? What does the committee have to say about the black businesses that are there today or that were there? We don't know. And so I go back to Commissioner Carollo when he says, `I haven't had the time to go over the package that we have had to approve here today. I think this contract is one of the most important contracts the City ofMiami will be entering." Andl echo what he's saying, because I know that there are some amendments that I personally want to make. I think that $350, 000 of a guarantee, for instance -- for instance for that foundation with a two percent increase, I think it's not enough; me, personally, andl haven't had an opportunity to talk with people who are actually mentioned in this agreement like the Greater Miami Chamber, I haven't had a chance to talk with them about this whole issue, and they're stakeholders in this whole matter. But when I look at it; me, personally -- and this is just my looking at it -- I mean, I think it is better suited to have language that is somewhat reflective of the new lease agreement, but also the old minority agreement. And what does that look like? And I've always been skeptical about putting out the numbers, butl'll say this: I think a guarantee, a minimum guarantee of $700, 000 with a two percent increase every year, or the greater of the $700, 000, or the greater of -- maybe a percentage, like a five percent percentage of the gross revenue stream; the same way that it is structured with the City as far as the lease agreement. I think that that's fair. That guarantees that there's either going to be enough money to give the businesses that that -- that this organization held itself out to help in the very City ofMiami Page 60 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 beginning when they acquired this land, I think that that's fair. I think additionally that with the Sky High, because we having additional dollars to come inside, I think the Sky High should have a $100,00 guarantee -- that's my belief -- with maybe a 2.5 percent -- the greater of the two of the 2.5 percent past their break-even point on a gross revenue scale, the same way that it is structured that the City ofMiami do their due diligence in establishing. And what does that mean? That means that -- in addition, that means something else I thought about -- a reduction of the committee from 15 members to nine, because now you have nine with the same type of selection -- City ofMiami, one third; the organization, one third; and then one third of it is elected by that body -- so that now you have to convince fewer people that there are businesses out there that need some type of assistance from this organization. I think that with all these things being considered that today is too soon to vote on this matter, andl really and truly urge all of my Commissioners that are here to be in favor -- 'cause I will move -- be in favor of continuing this item to the next agenda; doesn't mean that this is going to die. It means that it gives us an opportunity to really look over the contracts. It gives us an opportunity to really discuss with the community what it means to have a minority participation agreement that was the guiding light, the North Star to the establishment of Bayside. It shouldn't be treated like it's a backseat passenger, because it was not at that time. Andl mean -- and that's just frankly how I feel about it. Thank you. Chair Gort: Thank you. Let me ask you a question for the benefit which I ask you 'cause this is a major contract we have to look at -- Mr. Torre: Correct. Chair Gort: -- and we are making some amendments to this contract, andl requested that you give us the differences that are taking place and the changes that are being made from the original contract. Mr. Torre: Okay. Chair Gort: Would you go over that again, please. Mr. Torre: Sure. Commissioner, when the original agreement was written -- and one of the problems with the existing current Bayside lease, one of the reasons why we're trying to modin, it is the funding of this foundation is based on a percentage of net revenue rather than gross. You know, one thingl do want to go over that is right now, I think the foundation has average a payment somewhere around $300, 000 a year over the last five years. It is my opinion that the reason why it's been that amount is because Bayside has been unable to place additional funding on the property, and they have not been able to place additional financing on the property, because there's been certain cap limitations on financing right now, and the City did not deliver, sign estoppel agreements, because there was some concern over that. My other concern is after you consider the entire -- the deal we're bringing forward today, the amendment allows Bayside to place additional debt on the property. The City is getting paid for that; some of which is the ten million dollar upfront payment, and the remainder is a three percent over -- three percent of proceeds up to $125 million. Once that debt is placed on the property, the Minority Foundation as it is written now would run the risk of their payment substantially decreasing. So some of the conversations we had with Bayside is that we wanted -- from the City's perspective is that we wanted to make sure that the foundation was protected. Andl understand that they brought this matter before the board, and the board, as you said, is selected by the City Commission; City Commission appoints five of those board members. So this matter was brought before the Minority Foundation I believe on two occasions, andl believe it -- this $350, 000 payment was approved unanimously on both occasions. I can bring in -- I think Pam Weller is here or Nathan Kurland who are members of that foundation. Vice Chair Hardemon: Mr. Chairman, may I say something? (UNINTELLIGIBLE). City ofMiami Page 61 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Chair Gort: Yes. Vice Chair Hardemon: Right. And who wouldn't, if you had a foundation that was guaranteed $350, 000? I mean, of course, they would agree to it. But we have to keep in mind who the foundation is. Mr. Torre: Right. Vice Chair Hardemon: The foundation was actually created as a -- it was a -- they are the benefits of the minority participation agreement, because it was the agreement that really gave the life Mr. Torre; Right. Vice Chair Hardemon: -- to the foundation. And the foundation never had an opportunity to hear that they -- possibly, we can get more. Maybe we can have $700,000. Maybe we can have five. Maybe we can have -- whatever it may be. They were presented with an option that was better than what they were receiving -- Mr. Torre: Right. Vice Chair Hardemon: -- previously, and they jumped on it. And that's okay. Mr. Torre: Right. Vice Chair Hardemon: I can understand that type of support. What I'm talking about now is more than just the dollars, because the dollars are important, yes. Mr. Torre: Right. Vice Chair Hardemon: Andl want to make sure that they get their fair share, because we all know that there's going to be tremendous profit to be made at -- with this agreement. What I'm talking about is making sure that the contract is reflective of today, the same way as the new lease agreement is reflective of the standards of today and the profits that they will be making. And l just don't think that the way it currently is, is reflective of what they should be getting today. But then also, having an opportunity to discuss the minority partnership agreement with the stakeholders who were at the time some of the most important people in moving this thing forward. I mean what you heard in just there, there were to Commissioners that basically said, "This deal is dead if you don't meet these agreements." And so I don't see how you go from a time where you say, "Well, this deal is dead" to now, "This is the last thing that we just have to, you know, throw some money in it" -- Mr. Torre: Right. Vice Chair Hardemon: -- "and we move forward." And that's part of my concerns. No one wants to hurt any organization that wants to invest within the City ofMiami, but here we are with an opportunity to make the deal better for our constituents, and that's what my job is to do. And I just believe that when it comes to the minority participation agreement that we haven't given it the due diligence that it deserves, and the only way that we can do that is by invoking the spirit of Commissioner Carollo so long ago. Mr. Torre: Commissioner, at this point, I will tell you one of the options we have is to go forward. The language, the ballot question says, `Increase contribution to the Bayside Minority Foundation." I don't know if there's someone from Bayside who wishes to speak or from the City ofMiami Page 62 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 foundation. Vice Chair Hardemon: And Commissioner -- Mr. Chairman, the only reason that I want to move forward with that is because if you consider it, yes; it does give you the general sense that you can move forward and have the increase. But it doesn't necessarily address this, if there are any type of changes that need to be made to the minority participation agreement that would be more detailed than just that. It may be another sentence there that we need to add to include some of those changes; and not only that, but then I'm sure there are Commissioners that want to look into -- for instance, the Sky High, the SkyRise deal; the tower. I mean, part of the things that I read in there, one of the things that saw was that there was an allowance for electronic billboards, andl was surprised to see that. And when I read the allowance for electronic billboards in some ways, I said, "Wait a minute, this is going to be one of the most beautiful structures, 1,000 feet high, you can see this, you can see that, but you can also look up and see an advertisement. Mr. Torre: Commissioner, let me interrupt you, andl apologize. There is no -- Commissioner Carollo: Mr. Chairman. Chair Gort: Excuse me, wait a minute. Commissioner Carollo: HI may. Chair Gort: Go ahead. Commissioner Carollo: In the warrant process, it specifically stipulates that no LED (light -emitting diode) sign, andl don't have the exact language, butt specifically looked into that. In the warrant process, it stipulates no -- andl don't know exactly the wording, but it stipulates no LED or signage, so that is in the warrant process. Mr. Torre: Mr. Chairman, I think had you asked me to go over the major part of the deal, please? Chair Gort: Yes, go ahead. What would like to do, the Clerk suggested we go to this first. Maybe we should go back and let's make a presentation from the Bayside people and so on. Mr. Torre: Okay. Chair Gort: And listen to the public and then we'll go back to -- Mr. Torre: Okay. Commissioner, I'm going to go over item RE.10. Chair Gort: Andl want you to go in specific the changes. Mr. Torre: Absolutely, Commissioner. RE.10 is a resolution authorizing the City Manager to execute in a form acceptable to the City Attorney a fourth amendment of the amended and restated lease agreement retail parcel between the City ofMiami and Bayside Marketplace in substantially the attached form for City -owned property located at 401 Biscayne Boulevard to modify certain provisions of the lease and recognize sub -lease, sub -ground lease to SkyRise Miami to include the extension of the current lease term provided all renewal options are validly exercised. I do want to make a -- you know -- make a couple of comments on the financial aspects of the deal, andl will then introduce Bayside, who has a short presentation, and so does SkyRise Miami. This deal, Commissioners, as many of you know, has -- is a current lease which has a 46-year remaining term. Some of the attractive parts of this deal that make it very attractive for the City ofMiami is there is, amongst other things, an upfront ten million dollar City ofMiami Page 63 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 payment to the City ofMiami which also includes on top of that three percent of financing proceeds up to 125 million. There is going to be 5,000 square feet of City ofMiami space located within the SkyRise Tower. That 5,000 square feet will house current marina facilities for the Miamarina facilities that the City owns and operates next door, and we will also have some space for fire facilities. The SkyRise has agreed to pay for the build -out of that space, which is over a million dollars, and they've agreed to provide us free rent for the entire term of the lease, which is a value towards -- for the City ofMiami in excess of $25 million over the life of the lease. Some of the other things I just want to briefly go over, and I'm sure we'll have further discussions later. You know, as I -- I look at the deal and one of the things that sticks to me is to try to use logic, and logic -- and we'll speak about appraisals later -- but the most logical thing on this scale is if we don't make an amendment now, we run the risk of staying with the current lease terms, which we all agree are not favorable to the City ofMiami, for the remainder of the next 46 years. This is not a new deal; this is not an RFP. There is an existing lease for the remainder of the 30 -- 46 years. If we are able to move this item along and get it to the people for a referendum, the City ofMiami just alone on the next 46 years will receive an increase in minimum guaranteed rents of over $202 million a year, just over these 46 years, above and beyond what we will receive if we stay with the current lease. In addition to that, we project increases in ad valorem taxes; the City's share of 72 million and 19 million in additional ticket surcharge revenue. So, Commissioners, that is $293 million that we will be receiving if we can move this along, other than staying with our current lease structure. Andl want to stress that $293 million does not include six percent of percentage rent for the very valuable valet spaces that will be located under SkyRise Tower. It does not include any percentage rent associated to the percentage rent schedules which have changed from net -- andl know, Commissioner Carollo, you've always had a lot of heartache over net percentage rent. This goes over to gross sales over natural breakpoint. This also doesn't include market rent adjustments via appraisals that will be done every 10 years on the SkyRise space that will have a 10 percent cap, but are substantial. This also doesn't include -- we've added in a transactional rent, so if either one of these leases, which are going to be highly marketable, are sold or transferred at any time during the lease, the City will receive an additionally, possibly, potentially, based on current capitalization rates, based on the NOI (net operating income) and our projections could be in excess of $22 million. Obviously, Mr. Berkowitz will also stand here before you and tell you about the additional jobs that will be created. Essentially, Commissioners, my opinion, this is a fantastic deal for the City ofMiami. You know, if we do this deal, it is for the remainder of the 46 years, we are looking at improvements of over $300 million for the City ofMiami. I now want to take the time and introduce John Charters, who is senior vice president for General Growth Properties, the presentation. John Charters: Mr. Chairman, John Charters, 401 Biscayne Boulevard, representing General Growth Properties and Bayside Marketplace. Mr. Torre, thank you very much for a complete summary of whatl think is a very comprehensive and complicated deal that we worked on for a long time. Mr. Chairman, before we get too far in the presentations, I'd really like just to take a moment to thank the City Administration, all the City officials, the Commissioners, certainly, the Mayor for the time and effort and all the work everybody's put into this. Certainly, the City Manager's Office, and Mr. Torre, and Ms. Bravo have spent a ton of time working with us nights and weekends with everybody to try to put together an arrangement that we believe is going to benefit certainly the City, the residents, Bayside, all the folks involved in this property -- in this project. Bayside's been operating in the City for over 25 years, and we hope you feel we've been a good partner. You know, we've worked closely with a lot of businesses. I think you're going to hear today from a lot of folks that we 've worked with along the way. We certainly appreciate the guidance and support we've received from the City over the years. It's our intention clearly to continue to work with all of you to make sure that we provide and improve the offering at Bayside to keep our customers, the residents, tenants and tourists, millions and millions of visitors for decades to come. And so the bottom line is we really appreciate your support. I know a lot of people are here to hear about the tower and talk about that very exciting project that we obviously greatly support and appreciate your consideration of but we also know that it City ofMiami Page 64 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 is important to a lot of folks what we plan to do with Bayside in terms of improving. Mr. Torre talked about what we've committed to do. There is a process -- if we're fortunate to get through this vote, and then we're fortunate to get through a referendum vote on all this -- there's a process that we've worked out that we would present plans through the City Manager's Office for approval and make sure it ties to the agreements and the renderings that are in your package, and then we'd have to go for permits and construct, and there's some time frames in the agreements to make sure that we perform appropriately, and all that's been worked out with the City Administration's office -- City Administrator's office. So having said that I -- if you would allow, we'd like to have Bernard Zyscovich step up with me for just a moment, spend a few minutes, walk you through the renderings that are in your package, talking generally and briefly about what it is that we envision doing. Again, this is preliminary; we would need to develop plans, submit them to the City Manager for consideration and approval. So if that's acceptable, sir, we'd ask Bernard to do that for a few moments. Chair Gort: Go ahead. Mr. Torre: Commissioner, just while they're setting up, I do want to mention a couple of housecleaning items. On the retail amendment, the Exhibit "C" renovation work, as I explained earlier, the number originally in your packet was a minimum of $22 million. That has been adjusted to include from a minimum of $27 to a cap of $35 million, attributable mostly to retail storefront, which we know is a very important component of the renovation plan. In addition to that, SkyRise Miami has agreed to pay six percent of gross revenue, all gross revenue attributable to the very valuable valet parking spaces that will be located under the SkyRise Miami. Jeff Berkowitz: Mr. Chairman, Mr. Talbert, the president of the Visitors Convention Bureau has to leave, and so if you would indulge me, may I allow him to speak for a moment? Chair Gort: And you are? Mr. Berkowitz: My name is Jeff Berkowitz, with offices at 2665 South Bayshore Drive, City of Miami. Bill Talbert: Thank you very much. I'm going to be brief. I just come from Miami International Airport kicking off World Cup Soccer. Miami is the 13th city in the World Cup Soccer; there's 12 in Brazil and there's one here. Andl apologize, I have to go to another meeting. But obviously the -- this project will be a signature project for this City, just like the Eel Tower is. It's going to provide jobs. I think if anybody can do this, Jeff Berkowitz can. I'm a City resident, City taxpayer, our offices are here, so we are supporting this project, signature project. I was here when Bayside started years ago, and I'm confident that at the end of the day, I can assure you, Jeff Berkowitz will do the right thing and this is an important project for our City. Thank you very much. Chair Gort: Thank you. Yes, sir. Victoria Mendez (City Attorney): Mr. Chairman. Chair Gort: Yes, ma'am. Ms. Mendez: While we're waiting for the setup, I just wanted to point out since we are having a public hearing for all the items for RE.12, in Section 2 of the resolution, I just have to change that little section for it to say that it's in accordance with the provisions of 29(b) of the Charter and 30(3). And then I'm going to strike Section 2-112 of the City Code. I just -- it's a housekeeping item, but I just wanted to put it on the record so that it's clear. Chair Gort: Section 3, what's that again? City ofMiami Page 65 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Ms. Mendez: I'm sorry, Mr. Chairman? Chair Gort: What was that? Ms. Mendez: That in Section 2, which is just page 2 of 5, in RE.12, page 2 of 5, reporting that it is in accordance with Sections 29(b) of the Charter of the City ofMiami, Florida and Section 30 (3) of the Charter of the City ofMiami. So we're fixing that, instead of Section 2-12. And also, as Mr. Torre mentioned that the minimum in the title, minimum improvements of 22 million will now be -- Mr. Torre: Twenty-seven million. Ms. Mendez: -- twenty-seven million. Chair Gort: Okay. Yes, sir. Ms. Mendez: Thank you. Note for the Record: At this time, a PowerPoint presentation was made. Bernard Zyscovich: Thank you very much. My name is Bernard Zyscovich. I am the principal of Zyscovich Architects, 100 North Biscayne Boulevard, City ofMiami. I'm very happy here to be representing General Growth in this Bayside repositioning, renovation and new construction. I have before you some quick slides just because there has been conversation about what will Bayside be doing besides what will Berkowitz be doing with SkyRise, so I'd like to speak about that just for a few moments. One of the things -- and if you heard my address, I'm right across the street -- one of the things about Bayside is that from its inception, it was always conceptually something that was happening during the times that Commissioner Hardemon was speaking of; downtown not really very highly invested, not a lot going on, so one of the major moves of this new proposal will be to create new retails space and a really fabulous environment on this side of the street, which never really got a lot of attention back then. So this slide shows you there'll be 17,000 square feet of new retail that'll be right on the street. We're going to be relocating and redesigning a lot of the signage, a lot of the lighting. We're going to be adding additional parking spaces in addition to the existing parking structure, and we also will be making major changes to the look and feel of Bayside through a lot of the textures, the colors, the materials, the landscaping, the public space. The next slide shows you currently there's a lot of elements that have grown over the years in the lawn in front of the central marketplace. What we're going to be doing is refurbishing that area, changing the hedges in lieu offences, and basically redesigning the surface of the marketplace building. We will also be changing out the roofing of it, putting in new painting, putting in new canvas, and establishing a whole new look for that central space. This is a rendering that shows you the entry point as it was conceptualized right in the very beginning with the SkyRise Tower basically on access on -- in the distance where we will be in general changing a lot of the materials of the flooring. We're keeping the historic oak trees, and we're basically respecting the very long and mature landscaping that's there at Bayside. Here you see an image of the central core. This is where I think most people will notice the most difference. We're going to be changing out all the awnings; we're going to be changing the color; we're going to be totally refurbishing stairways, railings, all of the elements related to the specifics of Bayside to really bring it back to a unified and refreshed look, which it does need, and that ownership is very happy to be making. And then finally, this shows you the slide that would indicate new flooring, new signage, new lighting. We're going to be literally repairing and -- almost like a ship that gets painted over and over again, there's a lot of steel at Bayside, and we're going to be spending a significant amount of time restoring the steel, refinishing it and repainting it; and with that, I conclude the presentation. Thank you. Mr. Torre: Thank you, Bernard. Commission -- City ofMiami Page 66 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Chair Gort: That's the Bayside portion? Mr. Torre: Sony? Chair Gort: That's the Bayside portion? Mr. Torre: Correct. Now I would like to introduce Jeff Berkowitz, who has a presentation on SkyRise Miami. Mr. Berkowitz: Good morning. My name is Jeff Berkowitz. If you71 bear with us for just a minute, we're going to plug in our presentation. I have offices at 2665 South Bayshore Drive, directly across the street, andl have been in that location almost 30 years. It gives me great pleasure to introduce SkyRise Miami. I believe SkyRise Miami is a once -in -a -lifetime historic opportunity for the City ofMiami. Chair Gort: IT (Information Technology), come on. Mr. Berkowitz: This is my son, Andrew Berkowitz. Note for the Record: At this time, a PowerPoint presentation was made. Ms. Berkowitz: I apologize. SkyRise Miami is a game -changing project which will bring a breathtaking, monumental icon to forever enhance the skyline ofMiami. It's an opportunity for each of you to leave a legacy for generations to come. Miami is on the verge of a coming-out party beyond that of any community in the world. Our immediate, prospects, as you well know, are dazzling. Miami is a world -class community. SkyRise Miami will enhance Miami's claim to its rightful place on the world stage as the finest place to live on this planet. Soaring a thousand feet in the air, a beacon of the new Miami, the iconic SkyRise Miami will redefine Miami's skyline. Let's talk about the location, and I'm going to try to make this as short as I can. This is the pier at Bayside. It's been leased to Bayside by the City ofMiami for the next 46 years. It consists of 131 parking spaces. If you look at the arrow, those are 42 spaces that are dedicated for use of the marina, which will be absorbed into the garage below the tower at no cost to the City. The balance of the pier -- the balance of this asphalt surface parking lot consists of 89 spaces. The City will get -- if they do not approve this transaction, will continue to get some portion of the revenue generated from 89 parking spaces. We've calculated that. I'll show that to you in a later slide. This is a unique situation. This is a situation where the City owns a property but has no rights to it for the next 46 years. This is a situation where Bayside has the rights to it for the next 46 years but does not have the right to approve the redevelopment. Bayside andl have executed a sublease agreement, subject to this Commission's approval and ultimately to the approval of the voters, but the bottom line is the choice today is, ultimately, do we leave one of the finest pieces of property in Miami as an asphalt surface parking place or do we create a game -changing world -class attraction that creates tens of thousands of jobs, and as I will describe later, produces over the course of the remain -- of the lease term over a billion -- that is a B'L- dollars in income for the City ofMiami? It's a building like no other. It's designed to withstand wind speeds of up to 186 miles an hour. It's a thousand feet high. It will be the tallest building in the State of Florida. It will be the tallest building on the eastern seaboard of the United States south of New York. We will be driving 130 piles 150 feet deep. As I tell the Chinese when I'm over there raising money, we're -- our pilings are approaching China. A hundred thousand cubic yards of concrete, that's the equivalent of a four foot side -- four-foot-wide sidewalk from Miami to Tallahassee. You all know better than anybody else what's going on in Miami. The growth is dazzling; the prospects are amazing. SkyRise, based on our consultants' reports, are predicting 3.2 million annual visitors; approximately 2.8 of those will be paying visitors; the others will be visiting restaurants and ballrooms, et cetera, and will not be a charge in admission fee. Pier Park. This is our vision of what now is a parking lot will look like after we convert it into what we call "Pier Park." The baywalk will be continued at our City ofMiami Page 67 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 expense around the entire pier. The things that you see here are actually a cascading amphitheater. This is a rendering of what Pier Park will look like; what the walk along Miami's waterfront will look like after we complete our project. This is the base of the tower, and everything you see here is public. There's a public amphitheater, the public baywalk going around it. You can see there is a circular drive that will allow people to valet or drop off their vehicles and to enter SkyRise. This is the view. This is the artist's conceptual rendering of the upper premium observation deck. It looks a little bit like a ship; although you will be able to see this view. This is a shot from a helicopter of what a thousand feet looks like. We have a fabulous city, and the people are going to be pleased to enjoy it. The view will extend for 40 miles; will take us almost to Boca Raton, well into the Everglades; almost to Bimini, and down into the Keys. But this is not merely three observation decks and a rest -- and a fine dining restaurant, and a ballroom, and a nightclub. It's also an entertainment facility that will help us attract and keep tourists in town, and we have some exceptional opportunities. Again, I have visited a dozen towers all around the world. There is not one that comes close to surpassing what we believe we will have the opportunity to offer to Miami and to its residents. This is the upper observation deck. Again, it's conceptual at this stage. These are the main observation decks. This is indoor and outdoor, and people will be able to walk around the perimeter indoors and then extend up outdoors to enjoy Miami's fabulous views. So, in addition to the visiting opportunities -- and there will be an interactive exhibit center and a pedestal which will include interactive exhibits with original artifacts and props from movies, such as Star Wars, Harry Potter, Indiana Jones, that will be rotated on a periodic basis. We have three major attractions that the City and its visitors will have the opportunity to enjoy. We have Sky Plunge, which is a controlled bungee jump where people -- and I'm taking reservations now if anybody's interested -- will have the opportunity to jump inside of the building from a height of 570 feet, reaching speeds as high as 55 miles an hour, and landing in the middle of an outdoor cafe facing the beautiful bay and the beautiful Miami Marina. And if that isn't enough -- notice they're smiling, and they'll come back. Any takers? Reservations? Then we have the SkyRise Drop, and you can see -- you can follow the ride going up the north phase of the building with views looking north over Biscayne Bay. The 650-foot drop will be the tallest or longest in the entire world. It will seat 12 passengers, and it will reach or exceed speeds of 100 miles an hour on the way down. These are actual videos of people who are riding the rides, made by the same manufacturer who we're negotiating with. Again, notice they're all smiling. I would not be smiling. Today, this is the world's tallest. We will exceed it by more than 100 feet -- by more than 200 feet and by at least 10 miles an hour. SkyRise Theater. The most popular ride at Epcot and at Disney World is a ride called Soarin. We have engaged the manufacturer of Soarin to bring Soarin to the tower. Soarin is a 72-seat, 6-minute-long hang gliding experience. If you go to Epcot, believe it or not, Disney showcases a film of California and has people flying through the California landscape under the Golden Gate Bridge. We will be producing a Miami film. We will highlight the best there is about Miami and Dade County at a cost of several million dollars for the people who are visiting our fine theater to enjoy. Here, you're looking at what hope is an Everglades shot. This is what the flying theater looks like. As you dive beneath the reef you'll be splashed. As you fly over the bay or the ocean, you're going to see sailfish leaping. As you fly over the beaches, you'll see what you see at the beaches. Miami has so much to showcase; the most difficult portion of the film will probably be how do we choose what to feature, but I can assure you that with the assistance of the Chamber and the Visitors and Convention Bureau and the DDA (Downtown Development Authority) and the Beacon Council, we're going to produce first-class film. So based on our projections, SkyRise Miami will be the fifth largest tourist attraction in Florida. There are no comparable attractions in South Florida. These are your largest attractions. You got the Metro Zoo with 850,000 visitors. If you'll pay attention to the little check mark under each of the attractions, each of our major attractions, those were all built with public financial support. SkyRise Miami is not looking for one nickel, not one penny of City of Miami's support. If you take all of the attractions, all of the major attractions in Miami and you stack them on top of each other, this is what it looks like next to SkyRise. I said it will be a game -changing opportunity for the City ofMiami. It's been termed "Miami's Eel Tower." There are observation towers that are being built all over the world, and they're successful, and they're a City ofMiami Page 68 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 proven concept, and we visited a number of them. There are 55 million annual visitors visiting 41 towers in 21 countries over 5 continents. These towers have various shapes. They all go up to a point, because it's a lot less expensive to design them and to build them from a wind -load perspective. You'll notice the SkyRise is not the tallest in the world, but you'll notice that it's the most distinctive in terms of its iconic design. These are some of the more recent major towers. The Tokyo Sky Tree just opened a year ago to 6 and a half million visitors. We visited it. It's nothing compared to what we're proposing for Miami. More iconic. You can recognize the city that most of these are located in just by looking at the design. You will recognize Miami merely by looking at the design. This is a page out of the Downtown Development Authority's goals and objectives. One of the specific goals was to create an iconic waterfront element. They wanted it at Flagler Street and Biscayne Bay, but I'm guessing Commissioner Carollo wouldn't want to see it in Bayfront Park, so we've located it right next door. And what do they use as an example? They used the Eiffel Tower. Well, we're going to go with Miami's Eel Tower, and it's a goal of the DDA and it's been shared by the Greater Miami Chamber of Commerce. So these are images that you'll all recognize. You will come to recognize Miami by seeing the SkyRise. You recognized the Eiffel Tower. You recognize the Statute [sic] of liberty, the Washington Monument. We're talking about creating additional and branding for the City of Miami and for Miami as a community. We're going to compete for that global recognition and we're going to win. What's the Eel Tower worth to Paris? According to one study, $576 billion. Aside from the beauty; aside from the fact that we're providing an attraction like no other in South Florida; aside from the fact that we're occupying a 1.85-acre surface parking lot in the middle of a marketplace environment that's going to be vastly improved as a result of this project, SkyRise Miami is an enormous economic engine for the City ofMiami. Washington Economic Group. SkyRise will be a game -changing asset of the entertainment and visitor industry. Its presence will enhance the State and Miami -Dade County's global brand as a top leisure industry. Here are the numbers. And by the way, these numbers were reviewed by the Beacon Council's economist. They were vetted by them; andl will let Steve Beatus, from the Beacon Council, address these numbers. Direct jobs. Let's just talk about direct jobs, 'cause there are additional induced and indirect jobs. Direct jobs during construction: 3, 200 jobs. This is, arguably, one of the biggest Public Works project without a public work -- without a public price tag in the history of Dade County. It will produce total economic impact on -- just on the direct jobs of 418 million; total impacts, over 650 million. Now, let's go to operation. Direct jobs: 10,222 jobs. If you add the indirect and induced, the total impacts are over 13,000 jobs annually. The labor income to the community: 433 million. The addition to the GDP (Gross Domestic Product) -- and this is only in the City -- $656 million. Total economic impact has been estimated at over $1 billion. Okay, benefits to the City, other benefits. We're paying -- and this is just to SkyRise -- $1, 059, 082, which is the full amount of the appraised value as a base rent with an annual CPI (Consumer Price Index) increase, subject to a 3 percent cap. Plus, we agreed to have the property re -appraised every 10 years and to allow a second adjustment to the rent, subject to a 10 percent cap. We're paying 6 percent of the gross parking revenues for the spaces located underneath the tower, which we're building at our expense; City's portion of the real estate taxes on tower improvements are estimated -- starting at $1.4 million, and you will see a slide or a graph showing the projected income or new revenues for the City, and those numbers are based on a 1 percent escalation of that $1.4 million. Additional surtax -- surcharge revenues as well. You get the 5, 000 jobs during construction. We expect to have to hire 900 people at SkyRise. That will make us probably the largest private employer within the City ofMiami. I'm guessing that we will be a top 20 employer in Dade County. The total annual economic impact during operation, as I mentioned, was over a billion dollars. We expect -- or estimate $5 million in permit and building fees upfront. We've agreed to a transfer fee upon sale or transfer, 3 percent of the gross selling price for the first 5 years; 2 percent, years 6 through 10; and one and a half percent thereafter. And I'm ready to make the commitment thatl will not move this tower to another city. We're providing the City 5,400 square feet of marina and fire department substation space, rent fee for the entire lease term. At the end of this lease, this belongs to the City ofMiami. We fully reimburse the City for any revenues lost during the construction period. We've staged the construction so that we can keep the marina operational, and there will be City ofMiami Page 69 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 millions of dollars of free marketing for the City, 'cause we have a very substantial marketing budget, and this is at zero investment by the City ofMiami. Grove Bay, you're building them a parking garage. You have numerous projects. We're -- Parrot Jungle. The City's helped out. We're not asking the City for a nickel, andl might add, parenthetically, City hasn't offered. Okay, this is just SkyRise, okay. If you look at the lower level, this is -- the dark blue, that's the property taxes we're projecting with a 1 percent annual increase, just our portion, just based on the improvements. In the green, it's the tower rent escalating over a period of time. We took a very conservative escalation estimate there. And then you have the percentage rent we're projecting with conservative escalation I believe of 2 percent on our operating revenue projections. And over the 96-year period -- it's a 96 year period because it's going to take us over three years to build it, assuming there are no hurricanes, or glitches or lawsuits. The total that SkyRise alone will generate out of that asphalt surface parking lot of 89 spaces is $781.5 million. Now, let's add Bayside to the equation. Okay, we've added -- we've made the same projections with Bayside, combined it with the SkyRise income. The benefit to the City, the payments we project rationally, reasonably to the City ofMiami over the 99-year lease term is $1.78 billion -- that is with a B"- 1.78. Now, I'm going to add one other feature to this. Let us assume you do not approve this today, and I'm going to make it really clear. I had intended to be under construction by now. There was a decision made by the City Attorney that subjected this project to a referendum. And while I'm very happy to take it to the voters, we have been significantly delayed. We've got people. We've got the superintendent, who built the World Trade Center on payroll right now. We want the best of the best building this project. I can't promise you that I can keep this together, andl can't promise this community this project ifI have to wait in November for a green light to go forward. And then you can have your original minority participation agreement. You can have your income on the pier from the existing 89 parking spaces, and the City will have lost a monumental, once -in -a -lifetime opportunity. We have FAA (Federal Aviation Administration) considerations in terms of the approved type. And I'm going to draw one more line. This is what the pier income looks like, if you fail to approve this. Look at the red line. Look at the difference between -- and yes, it is only 46 years, because the City, at the end of the term, will take it back and you can build a hotel there, you can build residences there. You're probably going to have to go back to the voters who probably don't want to see a hotel or residences and probably want to see entertainment in a project of this nature there, but it may be too late. The difference just on the SkyRise revenue, on the 96 years between the pier income from the parking and what we respectfully suggest is -- likely is $717 million dollars to the City or an average, on an annual basis, of almost 7 and a half million dollars. And this isn't something that we're talking about -- we're not talking about a deadbeat developer, and we're not talking about a scenario where we're talking way off in the future, all right. We've driven piles, and hopefully, they're sufficient to preserve our FAA permit. But if the voters approve this on August 26, we will be in the ground in October. Now Arquitectonica is here. We have made significant progress on construction drawings. We will be ready to go in October 2014 and start one year's worth of extensive foundation work on this project, utility relocation and marina relocation. And with some luck, we're open for Christmas 2017. We've got an incomparable group of firms that are involved in this project. These are just some of the buildings -- Coastal Tishman representatives are here today. These are just some of the buildings that they're involved in. Our structural engineers have designed a tower for the Saudis. It's going to be a kilometer [sic] high, which is -- will be, by far, the tallest building in the world. So we've got the best of the best lined up to give Miami the best in the entire world. We've got very serious widespread community support. I'm going to, with your indulgence, invite some of the individuals who are here from some of our community organizations who are listed in here as supporting it. You've heard from Mr. Talbert, or Visitor Convention Bureau. Mr. Johnson, would you like to say anthing (UNINTELLIGIBLE)? Barry Johnson, the president of the Greater Miami Chamber of Commerce. Chair Gort: My understanding, let me tell you, I have a long list of people that want to open the public hearings. What I'd like to do -- I understand some of the people cannot stay, andl will like to ask those individuals that cannot stay to go ahead and speak now, but I'm afraid we're not City ofMiami Page 70 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 going -- we're going to have to continue after lunch. Mr. Torre: Commissioner, can I ask a question? Chair Gort: Yes. Mr. Torre: Did you -- shouldl be -- shouldl readRE.11, which is the garage component, as well, so that they can all be together? Chair Gort: Read them all so the people can discuss it. Mr. Torre: Okay. Commissioners, RE.11 is a resolution authorizing the City Manager to negotiate and execute, in a form acceptable to the City Attorney, a fourth amendment of the lease agreement, garage parcel, between the City ofMiami and Bayside Marketplace, LLC (Limited Liability Company), successor by merger to Bayside Center Limited Partnership, in substantially the attached form, for City -owned property located at 401 Biscayne Boulevard, to modify certain provisions of the lease term, to include the extension of the current lease term, provided all renewal options are validly exercised by 53 years. Thankyou, Commissioners. Chair Gort: Thankyou. Ms. Mendez: And just for the record, we had opened everything, all four items, for public hearing, but it's good that he read it into the recordl think. Thankyou. Chair Gort: Thankyou. Mr. Johnson. Barry Johnson: Thank you very much. Good afternoon. My name is Barry Johnson, president and CEO (Chief Executive Officer) of Greater Miami Chamber of Commerce, 1601 Biscayne Boulevard, andl bring greetings and support from the Chamber for this project, which we believe is certainly transformational for the City ofMiami. You heard Jeff's presentation on the economic impact that it's going to have not only for the City but for our entire community. But more than that, we really think this is going to be a game -changer in terms of redefining the world's view ofMiami and really putting us on the map in a way that we've not yet made that leap. It is going to be certainly an iconic structure, not unlike the Eel Tower, the Gateway Arch in St. Louis, which now defines that community, but moreover, this provides so much more for our city. So on behalf of the Chamber, we put our support behind this, and we congratulate Jeff for his efforts to help Miami take the next step into the future. Thank you. Chair Gort: Thankyou. Mr. Berkowitz: Steve Beatus of the Beacon Council. Stephen Beatus: Andl thank you for your time. I appreciate it. Steve Beatus, Miami -Dade Beacon Council, 80 Southwest 8th Street. As Miami -Dade County's official economic development partnership, the Beacon Council is charged with bringing new job -generating investments to our community. A comprehensive economic impact analysis of the SkyRise Miami tower project forecasts the creation of well over 10,000 new jobs for the residents ofMiami-Dade County and our community, and an investment of over $390 million in new capital investment in the area. This expansive new job creation, coupled with the potential for significant new public sector revenues that will be generated by the project, makes SkyRise Miami tower project economically compelling. It is very encouraging to us at the Beacon Council to support a project with such enormous potential to stimulate job creation and economic growth in not only the City ofMiami, but the community overall. Thankyou. Chair Gort: Thankyou. City ofMiami Page 71 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Mr. Berkowitz: Javi. Javier Betancourt: Good afternoon. Javier Betancourt with the Miami Downtown Development Authority at 200 South Biscayne Boulevard. Like to enter into the record at this time Resolution Number 05-2014 of the Miami DDA board of directors, expressing the DDA's support for the SkyRise Miami project at Bayside Marketplace. More specifically, as Jeff had mentioned, the DDA found that the project is consistent with and furthers the 2025 downtown Miami's Master Plan's call for an iconic waterfront element along Biscayne Bay. That action item is included as Exhibit 1 of that resolution. This project will activate the waterfront. It will serve as an iconic beacon for downtown; add to our beautiful skyline and attract millions of visitors to Miami, and we urge your support. Thankyou. Chair Gort: Thankyou. Mr. Berkowitz: And in conclusion, I would ask the Commission to add SkyRise Miami to its legacy, andl appreciate you helping me elevate Miami to new heights. That concludes my presentation. Chair Gort: Thankyou. At this time, I think we have to break for lunch. We need to come back -- or you guys want to continue and finish with all the public hearings? Commissioner Carollo: What time do we come back? Chair Gort: Go ahead. Vice Chair Hardemon: Mr. Chairman. Chair Gort: Yes. Commissioner Carollo: I -- Chair Gort: 'Cause this is a long-time discussion. This is not going to be -- Vice Chair Hardemon: No, no, no, andl understand this will take a -- take some time to discuss. But I believe that if there -- you said earlier if there's anyone who has to leave, that they would have an opportunity to speak. Chair Gort: Right. Vice Chair Hardemon: So if there's anyone that has to leave, they can allow them to speak, but if there's -- or there are people who can wait (UNINTELLIGIBLE). Chair Gort: That's what I'm asking. Anybody has to leave, cannot be here this afternoon? Renita Holmes: There are -- IfI may, through the Chair? There are several -- Chair Gort: Go right ahead. You're recognized. Ms. Holmes: Yes. But I believe that there's a certain order, so I'm going to respect that. But I can't wait for another disorder. Thankyou. Chair Gort: You have the order there? Commissioner Carollo: Mr. Chairman. City ofMiami Page 72 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Chair Gort: Yes, sir. Commissioner Carollo: The only thing that 1 request is if we're going to hear the people speak now that we do not take a vote; if we're going to take a vote -- Chair Gort: No. Commissioner Carollo: -- till after lunch. Chair Gort: No, no. Commissioner Carollo: It gives us some time to -- Chair Gort: Right. Commissioner Carollo: -- digest what everyone's saying. Thank you. Chair Gort: But according to the list, I got to call Al Crespo. There you go. Al Crespo: All right, anybody want to give me two minutes that ain't going to speak? 'Cause I'm going to probably need about four. Number one, Commissioner, you just came here. You can ask Commissioner Carollo, if you want to invoke the five-day rule, all you have to do is say these words: 1"m invoking the five-day rule. "There is no vote on that. A Commissioner's entitled to invoke a five-day rule, and that's the end of the discussion and the hearing on that item for today. I sat in this chamber and watched that Commissioner do it. So that's what you do with a five-day rule. If you want to invoke it, you can say it right now, and we'll come back in two weeks. Secondly, I didn't hear the word kambling'Inentioned one time in the presentation. Last night 1 e-mailed (electronic) all of you a portion of the sublease between SkyRise and Bayside, which clearly stipulates that if statewide gambling is approved, there's the opportunity here for a private gambling club to be put in this tower. I think all of you have, at one time or another, spoken on a fact that none of you wants to approve or support gambling on City -owned property. You know, all of you -- Commissioner Suarez, Commissioner Carollo, Commissioner Gort, and Commissioner Sarnoff -- are not going to be here in two or three years from now, before this tower is even completed. And the one thing that we know in Miami is we have an unlimited number of people who could come in here and replace you that would make you all look like choir boys, okay? And they could do wondrous things. That provision should not be in that sublease contract if you really believe that there should be no gambling. Secondly, there are a lot of numbers here tossed about in all these projections. Mr. Berkowitz paid for those numbers. If you pay a company to put out a report, they tend to give you the numbers that you want. I mean, so that's number three. One last thing: I am amazed. I have never -- since I've been doing this -- and I don't think any of you have ever heard this, where one of your representatives comes up here and says, The City got the best of this deal. "The City has never gotten the best of any deal. The Mayor of Miami -- Mr. Regalado there -- famously said "In Miami every deal is a bad deal, " okay? And for your employee to come up here and essentially threaten you with a gun to your head saying, "You have to vote on this today, because if you don't, then this entire thing is going to go away and you're going to be left with a 46-year lease and that's it" is nonsense, all right? Chair Gort: Sir. Mr. Crespo: You could be -- Chair Gort: Thank you. In conclusion. City ofMiami Page 73 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Mr. Crespo: Anybody want to give me two minutes? Chair Gort: Nobody wants to offer two minutes. Mr. Crespo: Okay. Chair Gort: Thankyou. Mr. Crespo: All right. Well, I wrote about it; most of you read it, so -- Chair Gort: Thankyou. Mr. Crespo: Okay. Chair Gort: Appreciate it. What a country. Anthony Napoli [sic]. Anthony Napoltello: Hi. My name's Anthony Napoltello, Mr. Chairman, Commissioners, my -- I've been a business owner at Bayside for -- since I was 21 years old. My first job was at Bayside when I was 15 years old. I've been there 26 years. I'm also a resident of downtown Miami, 325 South Biscayne Boulevard, so I'm here as a business owner and as a resident and a property owner of downtown Miami. I employ probably a hundred employees, probably 90 percent of which are minorities -- Latinos, blacks, and other minorities. This will allow me to employ more people. It'll help the City ofMiami. I am eager to hire more employees. I think the SkyRise will be a great, great, great benefit to the City. I think it'll help us out considerably. Bayside Marketplace has always been home for me. I've spent all my personal capital, my life capital in this project. I speak very passionately about this project. I know GGP (General Growth Properties) is a great organization. They've been great with us. They're a great corporate partner. They -- if you allow them to have this extra time to have a land lease, I know that they'll make the best of it. I've invested my life in it. Andl tell you with complete confidence, I give all my encouragement to this project ofMr. Berkowitz and GGP. And in closing, in a way, it offended me when LeBron James said he was going to bring his talents to South Beach. The Miami Heat is not South Beach. The Miami Heat's the City of Miami. This project and Bayside will bring more people to Miami and realize that this is Miami, not Miami Beach. So the next superstar that comes here, hopefully, they realize it's the City ofMiami, andl think that this project, along with Bayside, will let people know that. Thank you for your time. Chair Gort: Thankyou, sir. Stephen Young. Stephen Young: Good afternoon. My name's Stephen Young; also working with Tony. Bayside was actually our very first venture into fast-food for my parent's company. Basically, we started with Bayside and we have actually grown to over 200 units. Bayside has a lot of historical significance to us. And, you know, other than just being the first, you know, we set tremendous records there in terms of business just opening and just watching it grow and develop. I believe that this project will greatly benefit Bayside, as well as Miami, and, you know, really, we'd love to see this happen. And thank you for your time. Vice Chair Hardemon: Thank you very much. Ms. Kathleen Murphy. Kathleen Murphy: Good afternoon. Kathleen Murphy, Miami Bayside Foundation, 25 Southeast 2ndAvenue, Miami. As you mentioned earlier, the board of directors of the Miami Bayside Foundation met twice last week and put a resolution forth, and I'm sorry; I didn't realize I was getting up so quickly. And it states, corporate resolution number 14-02, "Whereas the board of directors of the Miami Bayside Foundation, Inc., at a duly held corporate meeting on June 4, 2014, voted to support the proposed revision to the minority participation agreement between the City ofMiami and GGP Bayside Marketplace, specifically -- City ofMiami Page 74 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Commissioner Sarnoff. You need to speak into the mike. Ms. Murphy: -- that Section 5.3 of the minority participation agreement be revised to set GGP Bayside Marketplace's annual contribution to the Miami Bayside Foundation, Inc. at 350, 000, with a fixed 2 percent annual increase; said provision to take effect concurrently with the signing of the new minority participation agreement between the City ofMiami and GGP Bayside Marketplace. The new minority participation agreement between the City ofMiami and GGP Bayside Marketplace, including the requirement for the annual contribution to Miami Bayside Foundation, Inc., should continue to remain in effect regardless of any change in ownership of Bayside Marketplace; and whereas, on June 9, 2014, at a duly noticed emergency meeting of the board of directors of the Miami Bayside Foundation, Inc., the board met to reconsider and discuss a decision of the board made on June 4, 2014; and whereas, following discussion of the board, it was then again voted to support the proposed revision to the minority participation agreement with a request that Paragraph 13, entitled "Foundation Contribution," be amended to read that the developer shall pay a Foundation contribution in the amount of 350,000 in one annual lump sum payment in March of every year instead of quarterly; and whereas, the board also discussed the proposed SkyRise tower project and have voted to emphasize that this resolution in no way should be seen as endorsing or opposing said project. Dated this 9th day of June 2014." Commissioner Sarnoff. Couldl ask a question? Vice Chair Hardemon: Thank you very much. You'd like a question? Yes. Commissioner, you're recognized. Commissioner Sarnoff. So you are supporting or not supporting the SkyRise? But you want the money? Ms. Murphy: Yes. Commissioner Sarnoff. Is that called sitting on the fence? Ms. Murphy: That's what the vote -- the board of the Foundation voted on. Commissioner Sarnoff. Okay. Vice Chair Hardemon: It's clear they want additional money. Ms. Murphy: We always -- Vice Chair Hardemon: That's the only money that was presented to them. Commissioner Sarnoff. They don't want to support the project. Vice Chair Hardemon: Right, right. Ms. Murphy: We have many good things that we're doing as you know, so additional money is always good. Vice Chair Hardemon: Thank you very much. Ms. Renita Holmes. Ms. Holmes: Good afternoon. Thank you for the opportunity. I'm quite often -- my name is Renita Holmes. In regards to the cartel -- putting the cartel before the -- I beg your pardon -- putting the cart before the house -- the horse, I'm quite a believer in due process and due City ofMiami Page 75 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 diligence, and besides having the great presentation or the facade projections, Igo a little bit more deeper. I'm a resident of downtown and Overtown and represent many of the residents there, homeowners association, small business association. I don't see my cultural competence projected, because when I look out of my window, which I very seldom do because of the smog of the expressway that comes in that way, I happen to stay on 8th Street now I'm very concerned about environmental. Quite often, things we put above the ground look great. But heard Mr. Crespo talk about cop, andl broke that down to mean that "Community Oriented Protection" of our environmental resources. And our decrease in knowledge of actual factual impact reports -- independent impact reports. I'm understanding that the guidelines of public land trust and public land processes have been a little bit devoid of what I saw the State put in place. And as a concerned citizen, I don't know what happened to 30 years of comprehensive master planning, now all of a sudden that we're changing the whole waterfront. Fifty-three years from now is great when you have a European dream for European children; for the children of Overtown, I don't see it. I don't see the community benefit as it stands, because there are a lot of data that has not been provided. And ifI may, Mr. Chair, request maybe a extra couple of seconds, because we have four items here and I'm about to complete it. I tried to say it in two minutes. I'm almost finished, ifI may. The community benefits versus the endangerment of the view of the waterfront is quite priceless, but I know something that tall has -- it has an impact on clean air, clean water, and still this data is not provided quite often later on, on the end. I'll close now with saying that I was one of those persons that help build Bayside. I was one of those women in constructions and subcontractors, and to this day -- andl heard people tell me about jobs. Listen, I got 15 hours a week for about six months, so I don't like when people say this is a economic impact for me, that it's a community benefit for me. And then when I find I can't breathe, get clean air, and my children won't in the next 40 years, I like to not go through items R.12 [sic], come back to R.9 [sic], R.10 [sic], and then have to do that every year for the next 50 years, because to me, that's not sunshine and that is not -- Chair Gort: In conclusion. Ms. Holmes: And in conclusion, I guess we'll never have our conclusion, 'cause it'll always be an open opportunity for developers, but I'm okay with that. I want my answers to questions about clean air, clean water, and my nice eastside view. Chair Gort: Thank you. Ms. Holmes: Thank you. Chair Gort: Very well. Grady Muhammad. Mr. Muhammad: Mr. Chairman, Vice Chairman, Commissioners. Grady Muhammad, CEO of Miami -Dade First, 54 -- 5658 Northwest 7th Avenue, Miami. Two things: We in favor of SkyRise, but the question is we're already doing the piling work to beat the FAA. We don't have an agreement with the voters. There's no lease agreement. So how is anybody doing any work prior to any of this happening? Because that's the first thing that has to happen. We're doing the piling work to try to beat the FAA regulation that will reduce it. Leases -- not leases -- permits and all those other things should have gotten done, but there was no lease with SkyRise Miami. There's no lease currently. That's what we're discussing. We're discussing it should -- goes to the voters first. Those was the issues that should have happened first, not we're doing this backwards. Other than that, the minority Bayside Foundation is -- they're doing a great job with what they're doing; must be commended. The other folks messed it up, but they're doing a great job. But we still got to ask, how many loans they've given to small black businesses? Humbly and respectfully, a Cuban business is a majority business. It's not a minority business. It wouldn't qualin, under the minority. That's what this is for. Twenty five million dollars of CDBG (Community Development Block Grant) dollars built Bayside, poor people's money. How many tenants of black or color, African American reside in there? Not one. They can't afford the City ofMiami Page 76 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 lease. That's what the Bayside Foundation was supposed to be for, to ensure monies can come to help those businesses to get there. Three hundred and fifty thousand dollars is a joke. It should be on gross revenue, not net revenue; and likewise, SkyRise Miami should have to contribute to a community benefit trust, because the lease that they're giving is subleased with Bayside. But they should likewise have to contribute more dollars to the Bayside Foundation, and we should include Miami -Dade College, as well as FIU (Florida International University), Florida Memorial College. We should include Miami -Dade College, especially the (UNINTET,T IGIBT ,F) entrepreneurial. If we're talking about entreprenes -- because everybody don't want -- I haven't -- in conclusion, Mr. Chair. Chair Gort: Yes. Mr. Muhammad: I have never -- I've worked -- been self-employed for the last 21 years; I ain't looking for a job. Most people at the entrepreneurial need to have business. When we talk jobs, they come from businesses, corporations, companies. They don't come from out of the sky. They come by people. And unless black contractors that own companies that does this, Mr. Chair, your people, Vice Chairman Hardemon, is not going to get those jobs. I'm concluding. Chair Gort: Thankyou. Mr. Muhammad: That's what we must have; ownership of companies, corporations, firms that we can be able to hire those -- Chair Gort: Thankyou. Mr. Muhammad: -- people that we're talking about. Chair Gort: Thankyou. Mr. Muhammad: Thank you, Mr. Chair. Chair Gort: Josie Correra. Josie Correra: Josie Correra, 22 East Flagler Street, and I'm here as a board member of the Miami Bayside Foundation, just to speak obviously in favor of item number 9; let you know all the great work that the organization has been doing over the past three years. I've been on the board since the board was reconstructed three years ago, and we have done an incredible job of giving out scholarships, loans to all types of minority businesses in all five districts of the City of Miami, and we'd like to continue that work. We did have, at length, a discussion about the 350, 000. And if you look at the 2 percent that's going to be added to that, in just 10 years it's going to go up to about 450, 000, so we're happy with that, and we'd like to obviously get your support for item number 9. Vice Chair Hardemon: Mr. Chairman, may I ask --? Chair Gort: Yes, sir. Vice Chair Hardemon: Feel like I'm in the Twilight Zone. Now, I know that the Miami Bayside Foundation was created by the Bayside organization as the -- Ms. Correra: It was created by the City ofMiami and Rouse. Vice Chair Hardemon: Okay, we have the ordinance -- I mean, we came with the agreement. We drafted the language. But really, I mean, that group -- the money's being given from the Bayside -- I mean, they're related in that sense. I mean -- so what I'm saying is this: I'm perplexed that City ofMiami Page 77 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 the Miami Bayside Foundation is not commenting on the statement thatl made earlier about $700,000 coming in -- seven hundred -- the greater of $700, 000 or some function of the gross revenues. I'm perplexed that you won't be commenting on an additional of 100, 000 coming in from Skyhigh -- or SkyRise with some gross revenue breakdown. I'm perplexed that you stand silent to those things and only come to me and only come to this Commission and make comments about the mere $350,000, which is maybe $100,000 more than the average you've been getting over the last five years. I can't understand how, if you were supposed to be giving these loans out to people in the community, where you wouldn't stand as an advocate for those change by saying, Listen, we're" -- "we have presented" -- Ms. Correra: We did have those discussions. Vice Chair Hardemon: May I finish, please? Chair Gort: Excuse me. Vice Chair Hardemon: We -- you couldn't have had a discussion about $700, 000 because today was the first day that I ever mentioned anything like that. So what I'm saying to you is that if you have an opportunity to have more, to do better, to have a minority agreement that makes more sense for the people today, why wouldn't you encourage that conversation? Don't present me with a cost or a revenue stream mechanism from $350, 000 and tell me, "Hey, by the end of this agreement, we will receive this many million dollars or a billion dollars and it's great," when I'm telling you that you can have more than a 100 percent more than what you're presenting me. You -- either you're in the pocket of this organization, either you are representing this organization's interest -- I'm not saying that you are, so no one's being -- Ms. Correra: That is ridiculous. Vice Chair Hardemon: No one -- do not -- Let me explain something to you. There is something called a protocol. There's a protocol. And any time you come before the Miami City Commission, you have to address us in that protocol. There are things that people say to me that I think are utterly ridiculous, andl have an opportunity to respect what they have said and then make a comment on it, but do not, I do not call the things that they say "ridiculous." I may make a comment on the merits of what I'm discussing, because I'm discussing thing on the merits. But what I'm not going to do is be ridiculed by anyone before this Commission by making my comments to be ridiculous. What I find to be utterly ridiculous is that someone would turn down an opportunity to bring more money into their organization. To me, that is ridiculous. That is utterly ridiculous. So the fact that you would come to say that the comments that I have to make about getting more money into your pockets, to your dollars to do more good in this community is ridiculous, that, ma'am, is laughable, okay? So what I'm going to ask you to do is to step away because your two minutes are over, through the Chair. Chair Gort: Thank you. I'll call you at the right time. Nathan Kurland: This is the right time, Commissioner. Chair Gort: Sign up. Mr. Kurland: I have signed up. My form is in there. Chair Gort: I don't have it here. Nathan, go ahead. Mr. Kurland: Nathan Kurland -- Chair Gort: Name and address. City ofMiami Page 78 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Mr. Kurland: -- 3132 Day Avenue. I have the privilege to serve -- let me repeat that -- the privilege to serve as the chair of the Miami Bayside Foundation. The Miami Bayside Foundation was not -- let me repeat -- was not made party to the negotiations regarding our contribution from GGP in any way, shape, or form. I'm sorry that Commissioner Hardemon is not here right now. Yes, the Miami Bayside Foundation would love to have more money. Yes, when we were told that the contribution was going to be $350, 000 and 2 percent, many members of our Foundation -- we had a meeting. We requested an emergency meeting, because we wanted to know why we were being just given this amount with no contribution to the reason why it was the number that it was. Andl had spoke with Mr. Torre on two occasions, stating that I felt that the contribution should be larger. I called Mr. Charters. And let me point this out as well. It has been a pleasure to deal with GGP, with their general manager, Pam Weller, with Mr. Charters, andl said `7 believe that that contribution should be higher. " But we were told that we had no place in this negotiation, so it was our decision -- and you had asked, Commissioner Sarnoff, and a good question was, Were we on the fence?'No. This is the kind -- this is the choice we had: "You can stay with a guaranteed contribution of $100,000 or 10 percent of the net line," and whenever anyone talks to you about the net line, you get a little nervous, especially when along with the statement about the net line, we were told that GGP would probably be taking on additional debt as they went forward to mortgage. They would probably be taking on additional debt when they took their 10 million -- when they paid the $10 million upfront to the City. So in a way, we were told -- and I'll wrap this up, but -- Chair Gort: Please. Mr. Kurland: -- I wanted to make -- I'm really sorry that Commissioner Hardemon is not here to hear this. We asked why we were not party to the negotiations, since it was obvious that the City Commission, when they created the Miami Bayside Foundation, made us an integral part of this lease. Chair Gort: Thank you, Nate. Mr. Torre: Commissioner, ifI can address just one thing to Mr. -- Chair Gort: Excuse me (UNINTET,TIGIBT,F). Mr. Torre: -- Mr. Kurland? Chair Gort: Write all the -- Mr. Torre: Okay. Chair Gort: -- questions down and you get an answer. Yes, sir. Darryl Holsendolph: Good afternoon. My name is Darryl Holsendolph. I am the economic development chair for the Miami -Dade branch of the NAACP (National Association for the Advancement of Colored People) and the National Action Network where Bishop Curry is our president. We're here today to find out why are we rushing this thing? You all forgot; this Bayside management agreement was built off the backs of a riot, the 1980 riots, when Overtown/downtown Miami burnt up. These things in here were put in here for a reason, and here we are talking about rushing through an agreement for the purpose of building a project that the goals here have not been met, and we need time to review this document to come up with a better agreement. Commissioner Hardemon, you know why they couldn't answer you? 'Cause Bayside Foundation has failed our community. This is the governance. So, Commissioner Gort, you asked them to come back with some data. Ask them about the 25-year history of minorities with leases in the property, ask them about the number of loans they've given to minorities, and City ofMiami Page 79 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 ask them how many African Americans are in there now. Probably zero. So I ask that you all not rush through this, but there's a lot of documents we must go to. And then SkyRise: Why isn't there a request for a minority participation agreement for SkyRise? When you all say "minorities" in this community, you talk about Hispanics, you talk about African Americans, but it seems like there's only one population that really benefited. That's the Hispanic community. Look at the African American data that came out of this 25-year agreement. That's the reason fire -- -- for it: the 1980 riots. So, again, I hope that each of you will delay this to November; give us all some time to sit down the parties at hand to come up with a better agreement, 'cause this is the basis on which that property was built, and we want to make sure that anything moving forward, all these issues are addressed. And let me be the first to tell you all -- 'cause I told Mr. Talbert, who's left, andl told Barry, this was based off of a riot. But right now, the African -American community and several women groups are talking about a boycott Dade County and Miami. Why? We represent 19 percent of the population, and we get less than 1 percent of the work, 1 percent of the jobs. We're tired of projects being built in our community where we sit down and watch them develop; and after they're developed, we can't even get a job. Like she said, 15 hours; that's not economic development, and that's what we're seeking. Thank you for your time. Chair Gort: Thankyou. Grace Solares. Grace Solares. Monty Trainer. Monty Trainer: Very silent of a group here. Monty Trainer, 2649 South Bayshore Drive, Coconut Grove. IfI only have two minutes, I can't get through all of the introductions. Marc, do I get a -- do I get some time to go a little bit further? No. If -- I was asked to speak for Bayside, but if Jeffrey Berkowitz would ask me to speak, I would have crawled down here. Jeffrey has done for more for this town accidentally than most people do on purpose. Just go look at the Children's Museum; what he's done out there. But anyway, Bayside -- and quickly, I don't want to be the town historian, but when Jim Rouse came to town, that was a blighted area, a real gambler. So I went back up to Boston, and I've seen what he's done up there, andl watched what he was doing up there. Then I went to New York Seaport, andl was a guest of Rouse to see what they've done, and their vision -- what they did in New York is fantastic, and then Baltimore, of course. But what they've done in Miami is absolutely fantastic. And what Pam Weller and General Growth have done with a new, new feeling. Pam is so involved in this community. She absolutely helped us with the Big Orange. She almost saved that. Bayside is now a very integral part of that. And another thing, I remember years ago when they first started, Carol Ann, Carol Ann Thompson started her little business, minority program. Chair Gort: Karen Taylor. Commissioner Carollo: Karen -- Mr. Trainer: Carole Ann Taylor. Commissioner Carollo: -- Taylor. Mr. Trainer: Yes, I'm sorry. Andl remember Dewey and Bill Perry with Chili's. Now look what they've done. And it all with the incubator was Bayside. So Bayside's got a great history in this community, as far as I -- from me, from my standpoint, what I'm seeing as far as minority. I don't want to disagree with anybody. Andl see the Mayor here. Mayor, thank you for all you've done. I had to say that to him. But I really support Bayside, really, in what they've done and what they continue to do. And what Nathan and them have done with the Foundation, I think is very admirable. It all starts with Bayside, and they're a very integral part of our community. Twenty-two million tourists, you can't beat that. And what Jeffrey wants to do -- Chair Gort: Thankyou. City ofMiami Page 80 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Mr. Trainer: Let's compete with Disney. How we going to compete? We always want to compete. Now we have an opportunity. Thankyou. Chair Gort: Thankyou. Ken Jett. Ken Jett: Ken Jett, 8320 East Dixie Highway. I'm here today representing myself. I'd ask that you slow this process a bit. As a person with two master's degrees, working on a dissertation for a Ph.D, as I sort through this mess, I need your assistance as a Commission to help me understand as the commoner what's going on. From the subleasing, from Mr. Berkowitz standing up here saying that he's not a deadbeat, but yet, at the last Commission meeting, we gave him the hold harmless agreement so that he could avoid losing his building permit, which probably means that you took some time to do it. Also, I thought that we said years ago -- I've only been in Miami for five years. I thought years ago, historically, we said "no" to Disney. The audacity for someone to stand up here and put the Eel Tower and St. Louis Arch, where I've lived most of my adult life, next to this amusement park ride is embarrassing. I cannot take a roller coaster over the St. Louis Arch. I cannot hang glide from the Statue of liberty. I cannot bungee jump from the Eel Tower. I've been to all of them. They're on state or city land. None of them are owned by individual companies that will be making money. The architecture, if you want Miami known by its giant phallus, I say go ahead; great idea. I'm concerned that the public, when they see a shiny new building and ooh, we're making two and a half times what we're making now, we'll jump at it. I need you guys to help me sort through it so that we know more about it before it gets to that point, so I ask that you do that for us. Thank you. Chair Gort: Thankyou. Linda Carol. Peter Ehrlich. Christine King. Christine King: Good afternoon, Commissioners. Christine King, the Martin Luther King Economic Development Corporation, 6114 Northwest 7th Avenue. I am asking that this Commission take some time to take up these matters. Two minutes is not enough time for me to articulate the concerns of the community. I believe that RE.12 should be held until you resolve RE.9, RE.10, RE.11. What is the rush? If you are concerned about citizen input and really having voters decide on this issue, you will consider making this ballot issue for November, where we all know voter turnout will be greater. But again, I'd like to voice my concerns that two minutes is hardly enough time for me to express my concerns with respect to RE.10, the minority participation, as well as the lease and the garage deal. Please consider slowing this down and allowing the community to have some meaningful input on what this is going to do for the community. Thankyou. Chair Gort: Thankyou, ma'am. Nelson Hincapie. Nelson Hincapie: Good afternoon. Nelson Hincapie, 601 Northwest 1st Court, Miami, Florida 33136. I'm the president and CEO of Voices for Children Foundation; and those of you who don't know, it's the organization that represents and helps the guardian ad litem program. The guardian ad litem program is for kids who have been abandoned, abused, and neglected and find themselves in court proceedings; 55 percent of them, African American; 45 percent of them, Hispanic. We don't care whether you're Hispanic, African American; we'll represent you with a guardian ad litem, because we believe that children are the most important thing in this community. Now, I'm here to tell you that Jeff Berkowitz has been instrumental for neglected, abandoned, and abused children. What does that have to do with SkyRise Miami? Maybe nothing. But it has a lot to do with the kids that I represent. I see their pain day in and day out. And if it weren't for Jeff Berkowitz, they would have nowhere to go, nowhere to be, no stability. He has done more for this community than a lot of us sitting in this room. So that's why I support, wholeheartedly, SkyRise Miami. Thanks to the support of Jeff Berkowitz, we have 15 kids, 15 -- 80 percent of them African American -- attending college right now at FAMU (Florida Agricultural and Mechanical University), FIU (Florida International University), Miami -Dade College; and we're able to pay for their housing, their meals, and their books. Nobody else -- the City ofMiami Page 81 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 State isn't coming forth, local governments aren't coming forth; yet, Jeff Berkowitz is coming forth to support it. That's why I wholeheartedly support this. I can bring the kids here. I can take them to your offices. You can meet them. You can hear their stories for yourselves so that you can see that what Jeff Berkowitz has done for this town is a great deal and it's not a bad deal, and this is not a bad deal. Thankyou. Chair Gort: Thankyou. Last speaker is Alberto Machado. Alberto Machado: Good afternoon, members, Commissioners, Mr. Regalado, and the press. And the reason that I want to talk is congratulate Mr. Regalado for his oppose to the stadium in that location. There are other good locations west of Biscayne Boulevard that could be built for the people who live in that area, who are good basketball players. I use this -- live in Palm Island 45 years, andl know the problem was traffic, how it will become. It's in this moment very important the tourists and traffic, and therefore, I think got congratulate for the good decision that Tomas Regalado did. That's it. Chair Gort: Thankyou, sir. Thankyou. I appreciate it. Mr. Machado: Welcome. Chair Gort: Eric Noles. Eric Noles: Good afternoon, Mr. Chairman, Commissioners. Eric Noles, president and CEO of the Miami -Dade Chamber of Commerce; in my fourth week in that position. I come before you only learning about this a couple days ago. I do not have a resolution from my board, so I do not speak on behalf of my board in reference to this item. But I would ask that this item be deferred. I would like to have the opportunity for my board and myself and my constituents and the members that I serve to understand what has happened with the Foundation in the last 25 years. I understand that the new Foundation is in place, and they've been doing great things. I understand that the scholarships, I understand that there are loans, but what are those loans in the last 25 years? What are those scholarships in the last 25 years? Andl also listened to Commissioner Hardemon in reference to the dollar amounts that are being offered in this process. August is around the corner. November is not too late. I ask that you defer this item. Chair Gort: Thankyou. At this time I'll -- we'll close the public hearings, and we'll come back at 3 o'clock. Some of the questions that have been asked, I hope the Administration have taken -- those questions you written them down so when we come back, you'll be able to answer and then we'll discuss further. Thank you all. We'll see you at 3 o'clock. Chair Gort: Okay, let's get back. Mr. Torre: Commissioner, I think where we left it, we had closed the public meeting for RE.10, 11 and 12. Chair Gort: Yes, sir. Mr. Torre: You had asked me to be prepared to discuss some of the questions that had come up during the public discussion. Chair Gort: Correct. Mr. Torre: I think our City Attorney is going to discuss the gaming provision that was discussed. Ms. Mendez: The original 1985 lease has provisions with regard to gambling that, basically, the developer may not use the improvements or any portion of the leased property for casino gambling without prior consent of the City, so it does allow, if contemplated for the future, to be City ofMiami Page 82 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 able to allow it, but however, the City would be this Commission, which has been always the way that we have interpreted when you see the "City," not the Manager, not designee, but this Commission. And then the sublease also has a provision that would allow for gambling and gaming devices and bookmaking establishments, et cetera, but also would require the prior written approval of the prime landlord, which again is the City and this Commission. And lastly, there was -- and most important, actually. I believe it was Commissioner Sarnoff that had an interest in the legislation that was passed in 2013 having to do with gambling on City property -- City-owned property, and there it says that "The City Commission is prohibited from favorably considering any leases or proposed amendments of any existing lease of City -owned property if the lease or lease amendment does not contain language prohibiting gambling or other games of chance." But nothing in this section shall be construed as altering or impairing existing leases of City -owned property that contain language contemplating the possibility of future gambling on leased property. This Commission was -- you know, had the foresight and knowledge to understand that we had old leases that had these type of provisions, so if this Commission approves those provisions, then it is allowed. Commissioner Sarnoff. Mr. Chair. Chair Gort: Yes, sir. Commissioner Sarnoff. So do you mind, Madam City Attorney, ifI get Bayside up here for a second? Mr. Charters. Mr. Charters: Yes, sir. Commissioner Sarnoff. I'm reasonably confident that you're reasonably confident that you would want to voluntarily say that you would comport yourself with municipal code 2-780 of the City of Miami and you would not be asking for -- from this Commission today or in the future -- for gambling on the premise. Mr. Charters: In the future, if the City allows it, we would want to have the ability to do that. If the City Commission doesn't approve it, then we can't do. It's -- sort of as a layman, my understanding is we can't do casin -- it's a prohibited use under our lease. Ms. Mendez: At this time it's prohibited until or if this Commission would vote on something like that, and it has to be negotiated and all that. That is not something that you have to do now or needs to be addressed now. Commissioner Sarnoff. Well, let me phrase it differently for you. Mr. Charters: Okay. Commissioner Sarnoff. Let's try it this way. I'm sure that you want to abide by the laws of the City ofMiami now existing, and that pursuant to Florida Section -- pursuant to City ofMiami Section 2-780, that you would agree that your lease would conform to that until and unless that's changed by the City ofMiami? Mr. Charters: Yes. Commissioner Sarnoff. Very good answer. Thank you. Chair Gort: Okay. Mr. Torre: Commissioner, there was one other item that needed clarification; was in regards to SkyRise Miami starting work under the -- with the piling work. Again, this was heard at the City ofMiami Page 83 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 prior Commission in which there was a hold harmless agreement that was brought forward to this Commission and approved, and we are holding, the City ofMiami, currently right now $500, 000 as a deposit. Chair Gort: Okay. Mr. Torre: That's the only items I had noted from the public hearing that required comments. Ms. Mendez: I needed to address one more thing on RE.12. I had previously advised the Commission on Section 2 of the "whereas" clause on page 2 of 5 that it had to be in accordance with the provisions of 29-B. I thinkl said "and." I put -- it's "or." Or 3(f)(iii), as applicable. I just wanted to put that on the record. I think might have said ifnd. "IfI did or -- okay, 8r'=- Commissioner Sarnoff. You said 8r. " Ms. Mendez: -- I just wanted to make sure that I've said that correctly. And then I believe -- and I don't know if this was done -- I think the Bayside Minority Foundation is really Miami Bayside Foundation. I don't know if any of those things were talked about, but something that -- Mr. Torre: No, they weren't. Ms. Mendez: -- needs to be addressed as well. Mr. Torre: Okay. Ms. Mendez: Okay. Thank you. Chair Gort: I'd like for you, one more time, to go over the existing contract that we had and the amendments that being recommended and the amendments that can be changed. Mr. Torre: Okay. The current -- did you want me to go over the financial benefits or just the terms of --? Chair Gort: We'll go both, but let's go with the changes we have made in the existing contract. Mr. Torre: Okay. RE. 10, Commissioners, is for the retail lease amendments that we're bringing forward which include modifications of the lease to recognize the subground lease to SkyRise Miami, LLC. RE.11 deals with the garage modifications which deal with a term extension, provided all renewal terms are validly exercised by 53 years. And RE. 12, Commissioners, was the ballot question. AndRE.9, obviously, is a minority agreement as well. Chair Gort: Okay. Now, go into the economic impact in those amendments that have been made. Mr. Torre: Okay. Overall, Commissioners, as we've discussed here before you, there is 46 years remaining an on existing lease. What we are proposing is to make modifications that would allow for additional development within the existing footprint of that lease. Mr. Berkowitz had a presentation before that showed you exactly where he proposes to build his tower and what is there currently, which are only simply the 42 parking spaces for the marina and 89 additional spaces. In addition, what we're doing here is trying to modift not only the height limitation to allow for SkyRise, but there's also a square foot restriction that we're also looking to modify to allow for the SkyRise and the additional parking that is so important. As far as the financial terms, I touched on them briefly. What excites us about this opportunity is if we do -- we have an opportunity here only on the next 46years to improve an existing lease with the same footprint, an improvement of over $293 million that will go to the City ofMiami over the next 46years. Again, that does not include percentage rent of 6 percent, a very valuable valet space for the City ofMiami Page 84 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 parking spaces underneath the SkyRise Miami. It also does not include -- and again, this increase was based on a very conservative CPI increase of 2 percent per year. Over the last 25 years, there has been several years in which that CPI has been higher. This doesn't also include a transactional rent -- a transactional fee that the City ofMiami would get in the event that either SkyRise or Bayside decide to transfer and/or sell their lease based on NOI (Net Operating Income) projections and reasonable cap rate. The City could enjoy in excess of $20 million additionally at any point during these next 46 years, as well. Let me see what else I have here. And again, we've discussed the $10 million upfront payment, which the City would be receiving, in addition to 3 percent of the net proceeds of any financing which could take this to over $13 million. Chair Gort: Let's go back. Mr. Torre: Okay. Chair Gort: Talk -- what are we receiving at this time? Mr. Torre: Commissioner -- Chair Gort: In making certain amendments, what are we going to be receiving in each of the transaction with a total at the end monthly. Mr. Torre: Okay. Commissioner -- Chair Gort: Start with the monthly. Mr. Torre: Okay. For the monthly, what we currently receive from the Bayside retail is $1 million minimum guaranteed rent. There is a percentage rent schedule included in the current lease that deals with the net rather than the gross. The amount we have received in that percentage rent under that schedule has been zero, so the likelihood of us ever receiving any percentage rent for the retail portion of that lease remains to be nonexistent. What that is being modified to is a minimum guaranteed rent adjustment to $1, 540, 000 a year. That is $540, 000 variance, positive for the City ofMiami, starting from day one. What the retail lease also allows us to do is to receive a percentage rent of gross revenues over a natural breakpoint. As you know, natural breakpoints are figured based on a percentage of your overall rent. So any material growth in sales, the City's going to have an opportunity to enjoy that. The rent for the existing parking is $10, 000 base rent. The parking sublease -- the parking -- excuse me. The original parking lease does have a different kind of percentage rent schedule. While it is included as a net number, those proceeds would go substantially lower once Bayside would ever plan to put any kind of debt on the property, so that's important for us as well to understand. The average we've received in rent for the parking for percentage and base over the last five years has been $530, 000 a year. Bayside has agreed to increase that minimum amount to guaranteed rent of $675, 000. In addition to that, they have agreed to pay 15 percent of gross revenues over a natural breakpoint as well. So it's almost -- one could consider that we're getting 30 percent of gross revenues related to parking, because there's also an existence -- since the City ofMiami is the landlord, there is an existing parking surcharge that we get to enjoy. The new parking -- the associated new parking of 488 spaces, Bayside has agreed to pay a minimum guaranteed rent of $241,920. That is attributable to a base rent factoring $3, 600, I believe it was, or $4,000 in annual sales per parking space. They've also agreed to pay 15 percent over a natural breakpoint of that 241, 000. So there's really realistic opportunity here that we're going to really be able to enjoy a lot more benefits on the garage side once you consider the additional traffic that SkyRise Miami's going to be bringing in. Not to mention once these improvements to Bayside are completed, we're confident that this is going to bring -- attract a lot of people -- a lot more people to a redeveloped facility. See what else here. The addition -- the other -- the final piece of this, Commissioners, is the Skyrise Miami. SkyRise City ofMiami Page 85 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Miami has agreed to pay 100 -- $1, 059, 000 a year. On top of that, we will get 6 percent of all gross revenues for the valet underground parking spaces, which are extremely valuable. In addition to that, we get 1 percent of gross sales over a $55 million breakpoint. In addition, Commissioners, it's important to understand that all components of the minimum base rent receive a annual CPI increase, which is capped at 3 percent. This is not in the existing leases right now. We've been paying -- receiving a million dollars a year for the retail for "X" amount of years, and that is not scheduled to go up. In addition, SkyRise Miami will be reappraised -- their market rent will be adjusted every ten years by an appraisal, which we have agreed to cap at 10 percent. So for SkyRise Miami alone, they're looking at, you know, potentially 40 percent in increase in minimum guaranteed rent every 10 years, which we're pretty excited about. I think I've covered some of the -- Chair Gort: Total revenues to the City ofMiami, if this is approved, will be how much a year to begin with? Mr. Torre: Once the project is completed, minimum guaranteed rent, Commissioner, would be -- and this includes adjustments made for, you know, real estate taxes and parking surcharge. We believe that number to be $6.2 million a year. What we are currently receiving, including real estate taxes and parking surcharge, is $2.8 million a year. So this is a positive variance on an annual basis of over $3.3 million, Commissioner. And again, that's just minimum guaranteed rents; does not include the percentage rents, does not include CPI increases, does not include the recalculation of fair market rent every 10 years. Commissioner Suarez: Mr. Chair, does that include the $13 million upfront payment? Mr. Torre: No, it does not, Commissioner. And in addition -- and thank you very much -- it's $10 million guaranteed upfront, an additional 3 percent towards $125 million. Alice Bravo (Deputy City Manager/Chief of Infrastructure): And through the Chair, our Budget director did a quick calculation that that 13.75 million basically has a net effect of guaranteed rent of -- an equivalent value of $658, 000 a year at a modest investment rate. Commissioner Suarez: Four percent. Ms. Bravo: Four percent. Chair Gort: Okay. Ms. Mendez: And ifI may, just a couple of legal points. One, the -- this renegotiation was able to take out some indemnity provisions that were in favor of Bayside and not the City. We were somehow indemniingBayside for things, so that was removed. And also, the -- Bayside agreed to increase their own insurance coverage for future subtenants, which that is also something that's good for the City. And the last thing -- I think it was mentioned before, but just in case, if it was not -- 27 million in repairs, not 22 million as it says in RE.12, is what's going to be done, so that is another increase. Mr. Torre: Yeah, it's between 27 million and capped at 35 million. Commissioner, there's a couple of other benefits I wanted to talk to you about as well. Again, we've talked about the 5,000 square feet of City facilities that will be going into the SkyRise. SkyRise Miami has generously agreed to pay for the build out of that amount, which is valued at over a million dollars, and we will be receiving that space rent free, which translates to anywhere from 25 to $30 million over the life of the lease for -- as additional concessions to the City ofMiami. Chair Gort: Okay, thank you. Questions. City ofMiami Page 86 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Vice Chair Hardemon: May I? Chair Gort: You're recognized. Vice Chair Hardemon: I just want to clarify two -- Sky High, LLC is the organization that is bringing forth SkyRise. SkyRise is the name of the project. I'm correct in that, right? Mr. Berkowitz: SkyRise, LLC. Vice Chair Hardemon: Okay, 'cause I -- we have a lot of -- is it -- we have documentation that says this is an agreement between Bayside Marketplace, T,T C and Sky High Miami. So I've read many things that say "Sky High," but then I hear -- we keep referring to "SkyRise." So I assume that Sky High is producing SkyRise. Mr. Berkowitz: When we negotiated the sublease, the name of the entity was Sky High Miami. I decided to change it to SkyRise. Vice Chair Hardemon: Okay. Mr. Berkowitz: One other clarification. When I started these negotiations with Bayside and with the City, I was 6 feet, 7 inches tall. Vice Chair Hardemon: Ah, man. So where I'm going is this: When I -- when we first opened up this discussion, I talked about needing additional time. I think that what we have before us in the end can be a wonderful addition to the City ofMiami. I think the City Manager and the staff has done a tremendous job in negotiating the lease agreements. I think the City has done a great job negotiating the garage agreement, and the City ofMiami has done a great job in trying to be inclusive of SkyRise. What do believe that the City did not do its due diligence in, though, is negotiating the minority participation agreement, andl know so not only because I can read it myself, but I know so also because of the response that I had when I first brought it up, and the City didn't believe that this was an agreement or anything that the City had anything to do with, and that's what led me to actually going back to 1984/85 to see what the Commission at that time thought about. And the one thing about history that I appreciate is that sometimes you can really realize how much we repeat ourselves. The same discussion that we're having today about gambling, they had it with Bayside then. The same responses the City Attorney had then is what the City Attorney said today. Other Commissioners wanted to be more restrictive in the language, in the gambling agreement. It's like we're repeating ourselves. But the one thing that we haven't had the decency to repeat is a decent -- andl'm not asking for what was there, because what -- I think what was there before was trailblazing, but a decent minority participation agreement. And we've heard from stakeholders in the community, from certain organizations -- andl'm sure there are more that would love to participate within this discussion about what does it mean to have a minority participation agreement. Someone said that -- I don't remember if he said Cuban, but at least of Latino descent, they are majorities and not minorities. That's a matter of -- I guess of art, if you want to put it there, a minority or majority -- majority/minority. But nontheless, during the time where you were developing this, Bayside, when it was Bayfront -- or Bayfront Park -- there was a need to be inclusive of the community. There was a need to be more strategic than just saying that we have jobs that are coming, but to say that we have things that are going to benefit certain groups of people in a certain type of way and -- I mean, there are even names that have been mentioned forward today as far as being success stories from the Bayside. And to be honest with you, from the stories that I've heard about participation within Bayside and where it led minority businesses is not -- I don't think it's the greatest history. However, here we are today. And so I understand that this is a part of the package. I understand that this part of the package has been greatly neglected. What I'm asking for from my fellow Commissioners is to treat this part of the agreement with as much respect as we treated the other parts. I don't think that even when we come to the conclusion of what the City ofMiami Page 87 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 final participation agreement will look like, that it will be anything that Bayside nor SkyRise would say, "this is just too much," because no one's trying to squeeze too much from anyone. We're all just trying to do the best that we can for the people who reside and the businesses that are here in the City ofMiami. So what I'm asking is for a continuance so that we can address the concerns of the community, especially those who are of minority descent, which I believe the majority of the people on this Commission -- the vast majority represent many people of minority descent -- so that we can have a discussion about what needs to be in a minority participation agreement, because the participation agreement was more than about dollars. It was about participation. And so to throw an extra $30, 000 a year above the average of the last five years at this organization, the Foundation, and they're supposed to be happy with that -- with the small growth that it has -- but they're supposed to be happy with that; for the duration of this transformation of Bayside, I think, is irresponsible. I think it's wrong. I think it's against the spirit of the agreement that we originally had with Bayside. And to be honest with you, the original Bayside negotiation was just as contentious as anything, and this is not something that Bayside wanted to just do, and when you read through the minutes, you get a true sense of that. And here we are finding ourselves again back at the time where we have an opportunity to actually make an impact for the people and the businesses in this community. So I don't think that the project will die because we wait an additional -- what; is it, two weeks, to address the concern? I don't think the project will die if it goes from a August referendum to a November referendum. And when I think about what Mr. Berkowitz said in regards to not having the ability to move forward, if it was in August -- I mean, if it was in November rather than August -- I mean, we took a giant leap out there as a Commission and said that we will allow you to dig at our waterfronts before we had referendum approval. We had -- yes, we had a hold harmless agreement, but I think all of us probably cringed a little bit on the inside when we were considering that decision, but we did it. So I don't think that it's much to ask -- to say, `7 need two weeks." So at this time, what I'd like to do is to move to continue RE.9, 10, 11 and 12 to the next scheduled Commission meeting. Chair Gort: There's a motion. Is there a second? Commissioner Suarez: I'll second it. Commissioner Carollo: For discussion. Chair Gort: Second by Commissioner Carollo [sic]. Discussion. Commissioner Carollo: I -- Ms. Bravo: Through the Chair? Chair Gort: Yes. Ms. Bravo: We -- just as a suggested alternative, perhaps, we could move on three of the items today and still meet the election office requirements and bring this fourth item back for consideration. Vice Chair Hardemon: May I, Mr. Chairman? Chair Gort: Yes, sir. Vice Chair Hardemon: That takes away -- remember the line that I read to you from the minutes that talked about that if -- let me read it to you. And this is Commissioner Carollo. Mr. Mayor, Mr. Mayor, I fully expect that the previous resolution that we passed be incorporated as a part of this contract, and if the Rouse Company does not come back to this City with concrete plans and concrete evidence that they, together with whomever, cannot provide the capital, access to the City ofMiami Page 88 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 capital that minorities are going to need to participate in this, and particularly, black minorities, that this deal, this contract is off. "Then Commissioner Dawkins responds: "Under discussion. I would also like to" -- and he goes into his percentages when he says that "Then I will be voting with Commissioner Carollo against it. "Andl say that to say, don't put the cart before the horse. Don't treat this agreement like it's the last thing that needs to be done. I think that if we move on everything first, this'll never get done. It'll stay just like it is. It'll stay just like it is, because there is no requirement to change it. The only leeway that we have to make some changes to that minority participation agreement is by having the entirety of the agreement to talk about. Once the rest of it is discussed and it's passed the minority participation agreement will be just as weak or -- I'm sorry -- it'll be significantly more weakened than what it is today, because Bayside would have been allowed to, one, create -- use the net income structure; using debt, that they can pay off some of their debt. And so, what we'll be reduced to is $100,000 in payments, not even the 330 that it's been receiving, so I wouldn't agree to that. Chair Gort: Okay. Mr. Berkowitz: May I address -- Chair Gort: You're recognized. Mr. Berkowitz: -- the Board? Commissioner Hardemon's correct; if you don't approve it today, it'll stay just the way it is. It'll stay 89 parking spaces for the next 46 years. I cannot sustain this and wait for a November ballot. Now, let me address your concerns, because I think they're legitimate. And I've not been a part of the minority discussions, butt have a pedigree. I've been in this community 40 years. My dearest friend in the world and my law partner was a fellow by the name of Jesse James McCrary, Jr. When Jesse was nominated as Secretary of State by Governor Askew, I took over his civil rights practice. I litigated in federal court on behalf of a black Miami -- City ofMiami police officer by the name ofJoe Cook who, while working undercover for the Miami Police Department, was beaten by three white police officers. I served at the request of the chief judge of Dade County, Florida, as the first founding executive director of the Independent Review Panel immediately following the riots from 1980. My charitable track record in this community is indisputable. You heard Nelson Hincapie, who came here without my request or not at my invitation, to talk about what my wife andl do for Voices for Children and how the kids who are supported by the guardian ad litem program are largely from the black community. The Miami Children's Museum, which I saved from extinction five years ago, has a charter school, and that charter school -- 30 percent of that charter school is African American. Almost all of them get free lunches. We run an after -school program at Liberty City Elementary for 60 kids. Miami Children's Museum employs 27African Americans. When I met with your chief of staff and all of you, I handed out something called "The Economic Impact to the City of Miami." It's a -- questions and answers. Now, nobody asked me to do this, but the question that's in here and the answer reads as follows: "Will residents of the City ofMiami receive priority hiring status from SkyRise Miami?" We're going to hire up to 900 people. The answer: "Yes, especially those residents of Overtown, Little Havana, and Allapattah." That's my pedigree. That's in my DNA (Deoxyribonucleic Acid) to take care of everybody I can. And we are going to create 17,000 jobs during operations, 5, 000 jobs during construction. And I'm happy to sit with you and talk to you at any time about coming up with an equitable means of addressing whatl would otherwise address on a voluntary basis, because I believe that everybody in this community needs to be served equally. But if SkyRise is not on that ballot, you've killed it, Commissioner. Vice Chair Hardemon: Mr. Chairman. Chair Gort: Yes, sir. Vice Chair Hardemon: No one ever objected to the kind things that were said about who you City ofMiami Page 89 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 are, but this isn't about who you are. I think that -- you know that when I make a decision, I pay deference to the people who came before me. I pay deference to history. I pay deference to the people that actually laid the foundation for me to be able to sit in this seat that I'm sitting right now. And what we're talking about, the participation agreement, one, it didn't have anything to do with you when it was done. Mr. Berkowitz: Nor was I involved in any discussions; I understand that. But ultimately, I'm going to be the ultimate victim. Vice Chair Hardemon: And what -- so what I'm saying to you is that this minority participation agreement was codified, and it was codified for a reason, because people tend to forget. Feelings change. Leadership changes. But the one thing that doesn't change is the ink that has dried upon a piece of paper that gets stored away in the halls of the City ofMiami so that 30 years later, a Commissioner, he can look back and see what the feelings were of that Commission at that time when that agreement was put into place. And here we are making a major investment back into this area, to this project, but we treat this part of it, was that -- which was at that time one of the greatest of it as it's the least. I personally don't think that you have a problem getting this passed, not through referendum. I mean, through referendum, I don't think you have a problem, especially when it all comes together. No one wants to kill the project. I don't believe, though, that the project will die if it's not on the August ballot. Now -- and will say that when it was brought to our attention that there was -- that you wanted to put the -- I'm going to call them as power lines -- where you wanted to dig into the -- Mr. Berkowitz: Caissons, pilings. Vice Chair Hardemon: Right. When you wanted to do that, that was a tough pill to swallow, but we did it. We did it because there was another impending timeline that needed to be met, and we all know what happened with that money through the State. So if you -- Mr. Berkowitz: That had nothing to do -- Chair Gort: Excuse me. Mr. Berkowitz: I'm so sorry. Chair Gort: Let him finish and then I'll recognize you. Vice Chair Hardemon: So I don't -- I think -- at -- where we are right now with the timeline, I think this thing is going the way that it should. If it would be on the August agenda, that would be something that this Commission decides. But think that, like I said before, it would be irresponsible for this Commission to allow the minority participation agreement to exist the way it is without any community input, after the major of the entities that are even named in the document have said to us they've had two days' notice about this. They've known about this for two days. So I'm respectfully requesting a continuance. Chair Gort: You're recognized, Commissioner Sarnoff. Commissioner Sarnoff. So, Mr. Chair, I won't be joining you in the continuance or anyone else on the dais, and let me just try to explain why. Two reasons: First off I've come to know Mr. Berkowitz -- I think knew him a little bit before being Commissioner. I've gotten to know him a little better as Commissioner. You have to make a decision that what he's saying to you is honest and forthright, that he will drop the issue from here on out, if it's going to go for -- not for the August referendum. You either have to believe him or disbelieve him. So you are potentially taking away the voters' ability to vote themselves -- I think the delta, Mr. Torre, for -- hard is about 3.5 million, and then it goes all the way up to about 6 million in potential additional City ofMiami Page 90 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 revenue. Mr. Torre: Correct. Commissioner Sarnoff. Everything) see in life as a Commissioner here is that's 35 or 60 cops that we can afford for our citizens, and that's how I'm going to base my decision. One, I believe Mr. Berkowitz could and would walk away from this situation, so there is nothing to decide in a November election. And my second issue -- and you all may remember this, 'cause I think it was the first year you were on the dais with me. I appointed somebody to a Commission that I actually made a mistake, and it was Bob Powers, and it was to this particular Bayside Foundation. Andl want to be clear: The present board that I'm speaking of is not the board that I'm speaking of right now. However, as far as I know, there is between 800,000 and $1.2 million of Bayside Foundation money which is still unaccounted for and -- well, that's the last report I've ever received. And my understanding is that there's been a number of investigations, and I've never seen the completion of any of those investigations. I know Ms. Rundle got involved. And, you know, I would like to know exactly what this board has done over the past 25 years. I know what they've pretty much done over the past three to four years, but I don't know what this board has done over the past 25 years, and) don't know if anybody's ever seen a report on what they've done over the 25 years. Commissioner Suarez: Mr. Chair, ifI may? Chair Gort: Yes, sir. Commissioner Suarez: Thank you. I'm a little bit -- I guess I'm a little bit confused as to what the big deal is about going between the August and the November referendum. I don't know why that necessarily is a deal killer, but maybe you can explain that. Mr. Berkowitz: Commissioner, I'd be delighted to. I've been in China twice in the last six months. We've been in Latin America. The bulk of our financing is coming through the EB-5 program. City now has a regional center. We have a regional center. And the most important thing to the -- to these people who are looking to make an investment in the United States in exchange for commitment to create as minimum amount of jobs is certainty in terms of the immigration process. We are out there competing with numerous other projects. And as soon as we -- we've already sustained a delay with respect to the change in position that we are now required to go to a referendum. But if we add to that the fact that we're now moving this another few months without any certainty, all of the people we have been working with, all of the immigration brokers are going to take all of their customers elsewhere, sets us back a month and -- I've got plans being worked on, millions of dollars I would have to spend without any kind of assurance that I have any kind of a deal. I spent a half a million dollars to put those pilings in to preserve this option. I can tell you that my pockets are not unlimited, and) can tell you that I'm totally prepared to drop this ifI'm not on the August referendum. I'm looking every one of you in the eye: It's over. I've had it. I have a very good life, okay? My wife has, you know, seen the kind of issues, stress we've dealt with in these negotiations over the last couple of months. She said, Why do you need this? "I live very well. Andl can go to my home in Maine and enjoy the summer or I can come back here and campaign for a referendum which I believe we will win. Now, the issue that's on the table and that's holding us up today is an issue between the City and the Bayside Foundation, which has nothing to do with SkyRise. And as my friend Jesse J. McCrary used to say, "The shade of a toothpick is better than the hot broiling sun." So a hundred percent of nothing is a whole lot less than some percentage of what you're getting now. And I'm looking at you in the face and making you a commitment that I will sit down with you next Monday, and we will craft a minority participation agreement for SkyRise that) will give gladly as I have my entire life, which has been based -- and I'll put dollars on the table and you can pick the charitable recipient, and we can talk about employment goals, because we're going to hire 900 people, and we can bring my contractor, who's here today, Coastal, and we can talk City ofMiami Page 91 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 about hiring -- our minority hiring goals during construction, and we can make a meaningful difference, but keep me alive. Ms. Mendez: IfI may, it's been twice said already that there was a change in position from the City Attorney's Office, and there was no change in position that ever said whether or not you had to go to referendum or not. There were preliminary discussions with the former City Attorney, which I confirmed were only preliminary discussions. There was nothing in writing, and last time I checked, no one invests millions of dollars without having something in writing. Thank you. Chair Gort: Further discussion. Vice Chair Hardemon: Now -- Chair Gort: Commissioner. Vice Chair Hardemon: -- Mr. Berkowitz, when the initial $500, 000 that you were speaking of that you invested into the pilings -- Mr. Berkowitz: Yes, sir. Vice Chair Hardemon: -- that was a gamble. You did it because we wanted to gamble on the State -- Mr. Berkowitz: Yes. Vice Chair Hardemon: -- giving us $2 million to help finance this project, and it did not. Mr. Berkowitz: No, it had nothing to do with the State. Vice Chair Hardemon: I'm sorry. I apologize. Well, it was a gamble. You can clam exactly what it was for. But we know that it was a gamble. Mr. Berkowitz: Yes, sir. Vice Chair Hardemon: I remember -- you speak of Attorney Jesse James McCrary, and you had the luxury of working with him and seeing him in action when he was healthy; I did not. But one of the things that I did hear him say as he discussed the issue of the 95 going through Overtown, and one of the things that he said was that the black community wasn't on its `P's" and "Q's. " We weren't in the halls that were making the decision about how this was going to be carried out, and because of that, that's how they began to suffer. And he described it as, first they cut off the finger, then they cut off the hand, then they cut off the arm, and eventually, you have no -- no longer that community; not saying that this is that. What I'm saying to you is that I am here and I feel like I have a responsibility of trying to ensure the best for the constituents that we represent, so -- I mean, I'm ready to vote on the matter, if there are no other Commissioners that have further discussion. Chair Gort: Any further discussion? Commissioner Carollo: Mr. Chairman. Chair Gort: Yes, sir. Commissioner Carollo: Thank you. I have additional questions, if possible. City ofMiami Page 92 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Mr. Torre: Ready, Commissioner. Commissioner Carollo: Thanks. I'm going to address some of the, I guess, issues or questions thatl have. Excuse me for being a little bit over the board. It's just that we didn't have too much time to review and -- review and read and keep reading. There was -- there's mention of the four hundred and forty -something parking spaces additional. Mr. Torre: Four hundred and forty-eight parking spaces. Commissioner Carollo: Right, but there's also an additional 296 that, at the discretion of the developer, could be also, I guess -- Mr. Torre: Correct. They could be developed in the future. And let me add, those 296 spaces will be subject to 15 percent of all gross revenue. Commissioner Carollo: Okay. And minimum guarantee for those, or has any of that been discussed or put into the document? Mr. Torre: No, Commissioner. There will be no minimum guaranteed rent. The City's position has always been we wanted them to build the maximum amount of parking spaces. However, during our negotiations, we agreed that as long as the City was able to receive -- obviously not contribute to any of the development costs pertaining to those parking spaces -- as long as we were able to enjoy the 15 percent of gross revenues attributable to those spaces that we were comfortable with it. Commissioner Carollo: But we're doing that with a minimum guarantee on the ones -- the additional ones, anyways. Mr. Torre: Correct, Commissioner. Commissioner Carollo: But -- Mr. Torre: But there are some that we're -- sir, there are some that have been required a minimum guarantee. Commissioner Carollo: Right. So why is this not required? Mr. Torre: Commissioner, we -- again, negotiations -- Commissioner Carollo: But I mean, if we're negotiating and every time they build additional, there's a minimum guarantee for the existing and -- Mr. Torre: Correct. Commissioner Carollo: -- any additional, why not --? I mean, in essence -- Mr. Torre: Yeah, I understand. Commissioner Carollo: -- you're giving them a free 300 in the future. Mr. Torre: It's not free, Commissioner. Again, they're going to be paying us 15 percent of those gross revenues. And the additional 448 that are required by the development warrant agreement, they are paying a minimum guaranteed rent for it. Commissioner Carollo: Understood. I'm just saying that we should get some type of minimum City ofMiami Page 93 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 guarantee for those 296, because it -- I'm not thinking about now, which they could possibly be built in the next few years, but I'm thinking about 10 years, 20 years, 30 years down the road. I mean, they should be tied into something. Mr. Torre: Right. Commissioner Carollo: Andl understand, you know, the 15 percent of gross, but still, we should -- just like the others, I don't see why we couldn't have gotten a minimum guarantee for those. Mr. Torre: Commissioner, again, I'm going to say that, you know, we tried to incentivize them to build this. Originally, again, as Mr. Berkowitz has referenced, these have been very long and hard negotiations. I feel, overall, this deal -- allow me to finish, please, Commissioner. But, you know, we felt that we wanted to incentivize them, entice them to build additional parking. Again, this is parking that the City ofMiami is not paying for, that the City ofMiami will receive 15 percent of gross revenue on; that the City ofMiami, in addition to that 15 percent of gross revenue, will receive 15 percent of ticket surcharge revenue; 30 percent of revenue, in essence. Chair Gort: Wait a minute. Mr. Torre: Yes. Chair Gort: Is this required parking or excess of required parking? Mr. Torre: This is excess of the required parking. Chair Gort: Okay. Commissioner Carollo: Andl understand Mr. Berkowitz -- andl don't want to put words into his mouth. I don't know if you have or not. But the bottom line is I know that it's been long, arduous negotiations, but you think reading all this took an hour? So -- I mean, at the same time, I think it's fair to start, you know, asking questions about this. Mr. Torre: Commissioner, I'm here to answer any questions that you have. Commissioner Carollo: By the way, you speak about Berkowitz, but I don't -- who is the developer to create the parking spaces? I don't think it's Berkowitz. I think it's -- Mr. Torre: No. It's -- Mr. Berkowitz is going to be developing -- Commissioner Carollo: Right. Mr. Torre: -- this -- the parking spaces underneath his garage. Commissioner Carollo: Right. Mr. Torre: In the development warrant -- again, this is for the same lease -- Bayside is the developer for the -- Commissioner Carollo: So it's not Mr. Berkowitz; it's Bayside. So for these additional 296 -- Mr. Torre: The additional 296 is contemplated to be built by Bayside. Commissioner Carollo: Exactly, so it's not Berkowitz. So, you know, and -- that was part of my frustration when I first spoke to the Manager, that we've -- I don't know if "comingled" is the right word, but we -- City ofMiami Page 94 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Daniell Alfonso (City Manager): Commissioner, but the issue is the additional parking spaces aren't required unless you have the tower. So the additional parking spaces, the four hundred and whatever, are required because of the tower. Commissioner Carollo: Right. Mr. Alfonso: If there's no tower, there's no need for additional parking, at all. Commissioner Carollo: Understood, understood. But at the same time, aside from those 440-something parking spaces, there's language in there, and would have to think there's a reason why there's language in there, 'cause -- Mr. Torre: Commissioner, I think -- Commissioner Carollo: -- you know, that at the discretion of the developer, which is Bayside, they can construct an additional 296 to the 440 -- Mr. Torre: Commissioner, originally, when we started these negotiations -- and again, we've spent an extraordinary amount of time together -- the City's position was to try to have them maximize build. I think it was 700 and something spaces. It is in the City's best interest to acquire parking, especially when we don't pay for it, and especially when we will give no concessions for it, and especially when we will receive 15 percent of gross revenues associated to that; on top of that, the tickets are charged at 15 percent, so -- and do want to add that the existing of spaces that they are have -- in the parking garage, that the minimum guaranteed right now is $10, 000. They have agreed to bump that up to a minimum of 675, 000, Commissioner. So there's a lot of -- there's been a lot of give and take, and as you -- as your director of real estate, I will tell you that I'm -- I understand your concerns and we've thought those through, and again, we wanted to incentivize them to build that additional parking. We still -- we would love to see them build that parking in the future. Chair Gort: Okay. Mr. Torre: But I do understand your questions. Commissioner Carollo: We're just turning around in circles, so let me just continue. Let me -- and just -- we'll go to SkyRise Miami or Berkowitz. With regards to naming rights, I haven't read anything with regards to naming rights. If in the future, there are naming rights, or you sell the naming rights or -- and I don't mean changing the name of SkyRise, but -- Mr. Berkowitz: I'm delighted to ask [sic] that question, because the definition of "gross revenues" specifically includes naming rights and advertising revenues. The City will get its share. Commissioner Carollo: What's the share of the -- that the City would --? Mr. Berkowitz: That's the part of our gross revenues that would be the 1 percent over the 55 million, which, effectively, is one and a half percent. Mr. Torre: Commissioner, you know what? Can I just interject for a second? I think that it's important that you understand some of the other parameters. The City ofMiami is receiving, as part of a renegotiation of the sublease, 1 percent of gross sales over 55 million. Bayside -- attributable to SkyRise -- Bayside is receiving one and a half percent over 125 million. The City ofMiami will receive the first 7, $800, 000 worth of percentage rent regards to SkyRise. Mr. -- Mr. Berkowitz: And ifI hit my projections, the City will get percentage rent year one. City ofMiami Page 95 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Commissioner Carollo: And what's the minimum guarantee that they're going to be receiving of rent from --? Mr. Torre: The minimum base rent, Mr. Charters, correct me if I'm wrong, is 1.7 million. Commissioner Carollo: One point seven. What's the City getting? Mr. Torre: A million fifty-nine. Commissioner Carollo: Okay, so there's the difference right there. Mr. Torre: Commissioner, you know, we've thought this through. The original agreement -- Commissioner Carollo: By the way, I prefer the minimum guarantee of 1.7 and switch with -- Mr. Torre: Well, Commissioner, you know, again, I'm going to tell you that this was vetted through several times. The original agreement called for a payment of rent payable to Bayside, which a percentage of that -- a portion of that would have been paid to the City. We started out at 1.3 million to be shared between Bayside and the City ofMiami and a different breakpoint schedule. What was important for us was to get minimum guaranteed rent, and at the same time, ensure that our partners, Bayside, LLC, enjoyed some of this as well. This is their property. And again, Commissioner, I understand your concerns. And what kept popping into my mind -- Commissioner Carollo: I'll -- Mr. Torre: Could I finish this for a second, Commissioner? Just for a second. What -- I've said this several times today, and I'm probably going to end up saying it several more times. What kept popping into my mind over the last several months of -- as Mr. Berkowitz said -- brutal negotiations was that we have 46 years, Commissioner, we have 46 years remaining on an existing lease. We are not extending the footprint of this existing lease, and I think we have done a very good job in positioning ourselves to improve upon this deal. And, Commissioner, may I also add that the one million fifty-nine that we are getting paid was based on an appraisal that was completed based on a per -square -foot price. So was there more money on the table, guaranteed money? Yes. We wanted to make sure that we would be true partners as well with SkyRise and, you know -- again, I'm comfortable with the financial terms of this deal, very comfortable. Commissioner Carollo: I think we could do a lot better and -- quite honestly. And again, not to go around in circles, I want to address another issue. Something with -- actually, I want to wait for Commissioner Sarnoff, 'cause I think -- Commissioner, I want to make sure you're listening to this because, to a certain degree, I'm going to yield to you with this a little bit. And by the way, yes, I am the chairman of Bayfront Park Management Trust, and we are neighbors. And let me just say for the record, it's been a great experience working with Pam Weller. It really has. And I think, you know, we've been good neighbors to one another. With that said, it hasn't gone unnoticed the maintenance and repairs that Bayside needs. I understand that they're going to be contributing 22, $27 million? Commissioner Sarnoff. Minimum, 27. Commissioner Carollo: I saw some of the black and white, you know, drawings in the back or, you know -- and what they're actually going to be doing. That's why I'm yielding more to you to make sure that it's honored. However, what about the future? I mean, that's going to be good for the next, let's say -- let me be generous -- the next ten years, but what about 30 years from now? Is there a capital plan? And who's going to -- Because what I don't want is the same thing City ofMiami Page 96 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 that you've experienced, same thing that I've experienced and I've been quiet about, doesn't happen 20 years, 25 yearsfrom now, 30 yearsfrom now to whoever is sitting up here. So is there like a capital plan or some type of --? Mr. Torre: Commissioner -- Commissioner Carollo: Again, this is a 99-year lease, so I want to make sure that we learn from our experiences and we're able to somehow make sure that future Commissioners have an easier time with regards to what needs to be done to City -owned property. Mr. Torre: Commissioner, I can add that -- answer that question. Not only in the Exhibit "C" agreement does it reference maintaining the property in a first-class manner; we've also made changes to the existing lease in which we reference a property in the northeast that, as a base point, for maintenance; and it's reiterated again that the property needs to be maintained in a first-class manner. So it'll be more so the City of Miami's job to continue to monitor this property and make sure that it is maintained as for the lease. Commissioner Sarnoff. And -- you know what? I'll be frank. You might have hit something of the Achilles' heel 'cause your concern is, All right, great; we got this thing up to snuff for 12 years." Commissioner Carollo: You understand. Commissioner Sarnoff. I do, I do. What in this lease, what in this agreement, what in this meeting of the minds is there to ensure that Bayside reinvest in itself so as it -- 'cause in 2070 -- Commissioner Carollo: Um-hm. Commissioner Sarnoff. There you go. Who knows if we'll have flying cars by then. In 2070 Bayside looks -- I'm going to use the word "modern" or "upkeep," and there is a specification, in that it's supposed to be kept in a first-class condition. I think your question is, what is the -- I don't want to use "guarantee." What is the reasonable way the City will enforce first-class condition? And I'm going to defer to you on that. What -- in 2070, how do we say to Commissioner -- his grandson, Commissioner Carollo, who's sitting there, how do we say to him that his great grand -- no -- I guess his grandfather took care of this? Commissioner Suarez: Great grandfather. Mr. Torre: Commissioner, it -- Commissioner Carollo: And just think of -- Commissioner Sarnoff. I think can -- Commissioner Carollo: -- what you've experienced now. What -- I've experienced it. And by the way, even though I did read some of the old language, andl was looking at more, is it really a 46-year lease or not? Andl noticed that there's two 15-year additions. However, all they had to do is just give us notice that they want to -- so anyways -- so I didn't look into it, but just think about what language is there now, what have you experienced, and is it similar to what we have now, or we can -- can we make it better? Is there some other type of commitment? Mr. Torre: I can answer that, andl think Bayside is willing to answer that was well. Commissioner, the instrument now has been put in place within the lease with discussions of first-class facility. It is -- it will be the City's job 15, 20 years from now to make sure that they are diligent and they are monitoring that. It wasn't done in the past. Well, you know, whoever's City ofMiami Page 97 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 in that position will make sure to do so. And there's also an obligation on General Growth Property and whomever is the property owner at that time to adhere to the release. Commissioner Carollo: I'm not an attorney, but do you feel -- Commissioner Sarnoff. No, I -- Commissioner Carollo: Do you feel comfortable with that, Commissioner Sarnoff? Commissioner Sarnoff. No, I -- Commissioner Carollo: Do you feel comfortable with that, Commissioner Suarez? Commissioner Sarnoff. -- think it's the way the private sector would act, but we're a little bigger and badder [sic], as you'd say, than the private sector. So let me ask -- let me refine his question. Commissioner Suarez: I'd like to handle it a little differently -- Commissioner Sarnoff. So you're saying -- Commissioner Suarez: -- but, yeah. Commissioner Sarnoff. -- that in the event this is not maintained in -- as Commissioner Carollo would say, "I'm not a real estate guy; I don't know what 'first-class' is." I know what 'first-class" is for my family, but I don't know in your industry what 'first-class" is. Mr. Torre: Right. Commissioner Sarnoff. Is it -- first of all, is that a term of art that you're comfortable with? Mr. Torre: Yes, I am. Commissioner Sarnoff. All right. So now it's a term of art. How does Commissioner Carollo's grandson enforce that in 2070? What's his mechanism? Mr. Torre: Again, the City ofMiami, whoever the asset manager is at that time or the Administration -- Commissioner Suarez: Your grandson. Mr. Torre: I'm sorry? Commissioner Suarez: Your grandson. Mr. Torre: My grandson. Commissioner Suarez: Right. Mr. Torre: He'll be -- probably be -- I'm not -- I was going to say (UNINTET,T IGIBT ,F). Commissioner Suarez: Forget about it. Commissioner Sarnoff. But wait. I hope I got the ages right. Grandson, great grandson. City ofMiami Page 98 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Commissioner Suarez: Right. Commissioner Sarnoff. But you get my point. Mr. Torre: Well, Commissioner, what -- again, the City has an instrument in the lease now that requires that the property owner at that time maintain the facility in a certain manner. Commissioner Sarnoff. All right. So then you put them on notice -- Mr. Torre: And they have default -- this is a defaultable [sic] right and it's something that the City can pursue legal action on. Commissioner Sarnoff. So then the -- let me help you with this. So the direct answer to Commissioner Carollo, there is no cap plan in this; it's left to the sound discretion of the tenant. But the tenant must maintain a certain specification -- what you're saying is a term of art -- first-class condition -- Mr. Torre: Correct. Commissioner Sarnoff. -- the legal mechanism and enforcement of which is Madam City Attorney. Mr. Torre: Correct. And, you know, there's -- so there's language throughout the lease -- then I'll let the City Attorney answer that. But if there are disputes within the lease, there are measures for whether it's mediation, arbitration, or stuff like that, so. Commissioner Sarnoff. I think it -- by the way, I think it has sub -- by the way, I think that would be subject to what I read of the lease of arbitration. So you would just get an arbitration from two real estate people, who then select a third real estate person, the mechanics of which, Commissioner, probably take -- should be a three-month process, as opposed to a long, drawn out court proceeding. Chair Gort: Excuse me a minute. Do we -- we have codes within the City ofMiami. There's a minimum maintenance that have to be maintained within City buildings. Mr. Torre: Correct. Chair Gort: Don't we? Mr. Alfonso: Yes, there are safety codes and -- yes, yes. Chair Gort: Okay. Thanks. Commissioner Carollo: Okay. Listen, I know Mr. Berkowitz is a great optimist, but let's say if the financing doesn't occur -- especially that window he's got of 180 days. It's not the easiest, but let's say the financing doesn't occur; SkyRise Miami doesn't happen. Where does that leave us with Bayside? Do they still have to construct the parking spaces? Do -- where are we with that? Mr. Torre: I'll leave that -- a legal question. Commissioner Carollo: Not to mention the additional revenues from those parking spaces and from the retail, blah, blah, blah, blah, blah. Mr. Torre: Let me be clear before -- City ofMiami Page 99 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Commissioner Sarnoff. So the scenario you're setting up is we pass it -- referendum passes; Berkowitz defaults. Commissioner Carollo: That's a financing -- Commissioner Sarnoff. Right. Commissioner Carollo: -- or so forth. Mr. Torre: Commissioner, I want to add that part of this agreement is and will be that SkyRise Miami cannot go vertical until the City ofMiami has received the proof that he can complete his project. Commissioner Carollo: Understood. Mr. Torre: Andl understand what your question is. Commissioner Carollo: Different -- Mr. Torre: It's more of a legal question of Victoria. Commissioner Carollo: Understood. Different question. My question is, that aside, what happens with Bayside in the City ofMiami? Commissioner Sarnoff. Here's the legal question, Madam City Attorney. We, at some point, pass this -- referendum passes; Berkowitz commences; Berkowitz does not complete 'cause he has an inability to do so. What is left of Bayside? That scenario. Commissioner Carollo: In other words, do they still have to build the parking? Do they still have to provide us that revenue? Do they still give us the additional retail revenue? And that's two separate parts, the parking separate from the retail. But where are we with all that? Do they still have to contribute the $27 million. Do they still -- where are we with that then? Ms. Mendez: They have to pay the absolute, the minimum. Commissioner Carollo: The ten million? Ms. Mendez: Right. Commissioner Carollo: Right. Ms. Mendez: And then the percentage comes in when you have the tenant. That is my understanding. Mr. Torre: Correct. The increase on the percentage rent is when you have the tenant. Commissioner Sarnoff. I think his question -- Commissioner Carollo: So -- Commissioner Sarnoff. -- is towards Bayside. Mr. Torre: I think he's asking -- City ofMiami Page 100 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Ms. Mendez: If this is a number's question, you know that I'm a little soft on numbers, so -- Commissioner Sarnoff. No, but his question, I think, is -- Ms. Mendez: -- that (UNINTELLIGIBLE). Commissioner Carollo: This is a mix. This is a mixture. This is a hybrid. Because it's really a legal question that deals with how much revenues the City is going to obtain, and what are we bound by? In other words, do we -- did we just give them a 99-year lease and they don't have to build the additional retail? They do not have to build the additional parking; meaning, we don't get the additional revenues? Ms. Mendez: That was not how it was contemplated, because they have to do the 27 million in improvements to the -- Commissioner Carollo: Regardless of SkyRise? Ms. Mendez: Yes, that's regardless. Commissioner Carollo: Regardless of SkyRise. Mr. Torre: And we got that -- Chair Gort: Ten million. Mr. Torre: -- the 10 million is upfront, regardless. Commissioner Carollo: Understood about the 10 million. Ten million aside. But this is not just about $10 million. Commissioner Sarnoff. Here's his question. SkyRise is three-quarters built, but he has the inability to go any further. Are Bayside's obligations fixed and established in this lease? Say it verbally. Somebody needs to tell him. Ms. Mendez: Yes. In -- the retail lease lays out the rights and responsibilities of Bayside. It's clear the things that they need to do. And if Bayside wants to jump up and say otherwise, but we -- that's how we envisioned it and drafted it. Mr. Torre: Commissioner, also just so expand a little bit further, let's say SkyRise -- and that's one of the reasons why we wanted to ensure that we received the higher guaranteed rent. SkyRise, while we were all very confident will be extremely successful. In the unlikely event that, let's say, 10 years down the road SkyRise of Miami fails, and goes out of business and goes dark, Bayside is responsible for the minimum guaranteed rent to the City ofMiami until they find a replacement tenant. Commissioner Sarnoff. That's -- Commissioner Suarez: What if it doesn't get built? Commissioner Carollo: I think Commissioner Suarez mentioned the question, which is, in essence, the same question I had: If he doesn't have the financing and SkyRise Miami does not get built, do they -- does Bayside still have to build the additional parking space, do they still have to do the additional retail, do they still have to pay us the one and a half million dollars per year for the retail, the additional -- whatever it is for the parking? Are they contractually obligated to pay that to the City and to construct what they constructed -- not to mention, invest City ofMiami Page 101 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 the additional 25, $27 million dollars of capital improvement? Ms. Mendez: Yes, but -- Commissioner Carollo: Regardless of SkyRise being built or not. Ms. Mendez: Right. Now, remember, they are a subtenant of Bayside. So let's say that some of these rights and responsibilities are not -- does not occur with regard to SkyRise -- unforeseen circumstances; SkyRise goes belly up -- they have to assume and find a new tenant, pay the minimums, et cetera. But we also do have a Bayside representative here, and a lot of these questions can also -- any, you know, discreet issues we can also ask of them as well. But that is how we have drafted this contract. Commissioner Carollo: Mr. Chairman, could we have the Bayside representative address this? I would like -- Chair Gort: Sure. Commissioner Carollo: -- to hear from them. Mr. Charters: I think one of the questions you asked is, if it gets three-quarters of the way built Commissioner Carollo: Before we get that -- Mr. Charters: Okay. Commissioner Carollo: -- if it doesn't even get built, if -- and again, I'm not trying to be pessimist. I'm just, you know -- again, I know you're the ultimate optimist. And let's say that it does get built and we want it to get built because that's where -- you know, we'll make sure we maximize our revenues. Now, with that said -- Listen, I've been waiting for 13 years, as well as all the residents of the City of Miami, for something to be built in Watson Island, and it didn't occur. So anyways, with that said, if it doesn't get built, all the other stipulations in the contract regarding Bayside building the additional parking space, Bayside building the additional retail, the minimum guarantees to the City, would that stay the same? Mr. Charters: If the tower -- if the referendum passes and the tower doesn't get built, I believe the obligation for SkyRise to start paying the rent is when they open. Okay. Commissioner Carollo: That's not my question. Mr. Charters: Okay. Commissioner Carollo: My question is, since this is a two -for -one and it's sort of comingled -- we have Bayside and we have SkyRise, right? Mr. Charters: Um-hm. Commissioner Carollo: Were there --? Okay. The parking is not going to be constructed by SkyRise; is not going to pay us, other than those 42 or whatever spaces -- it's not going to be paid to the City ofMiami by SkyRise. It's going to be paid by, you know, GGP, General Growth Properties. Now, are you still going to construct those parking spaces? Are you still going to give us the minimum guarantee of $675, 000? Are you still going to construct the additional retail? Are you still going to pay the City $1.5 million minimum guarantee for the rent? City ofMiami Page 102 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Mr. Charters: IfI could have a minute to check the document to see -- to confirm what the City Attorney's telling you? Commissioner Carollo: Sure. Mr. Charters: Okay. Commissioner Carollo: I mean, I'm not trying to put anyone on the spot here. Mr. Charters: Yeah. Commissioner Carollo: I just know that I've read a lot of these documents and these are things that -- Mr. Charters: Part of that -- Chair Gort: My -- Commissioner Carollo: -- I didn't have -- find and -- Mr. Charters: Some of it -- Commissioner Carollo: --I have questions. (UNINTET ,T IGIBT,F) Mr. Charters: Yeah. Let me just double check one point. Chair Gort: My understanding is, if you get an additional -- you extend your lease, you have to comply with all that, 'cause you get -- that's what you pay for the extension of the lease. I mean, that's my understanding is, the way I interpret. Commissioner Carollo: I just want the attorneys to tell me -- to tell us that, Commissioner. I just want to make sure -- I just want to have some assurance. Commissioner Sarnoff. I want to see Greenberg Traurig get up there and say that. Where's Greenberg? Mr. Torre: Commissioner, while we wait, do you have any other questions for me? Commissioner Suarez: Let me just say, Mr. Chair. Chair Gort: Yes. Commissioner Suarez: Since we actually are talking about the specifics of the deal. I think -- first of all, it's never -- it's not usually -- I've been here for four years. It's not usually a good idea to assume that a deal of this complexity can be done in one Commission meeting. It usually doesn't happen. Now, you know, we -- I know I have the utmost respect for Mr. Berkowitz, and I believe him when he tells me that he has financing that's contingent on this, and that's, to me, problematic, because, you know, this is a deal that would provide a tremendous amount to the City ofMiami, I mean, any way you look at it. I mean -- andl have absolutely no qualms with going through the minutia of it, you know, point by point, 'cause I think, you know, it's going to happen. Commissioners are going to have questions. They're going to have, you know -- you know, and then the fact that, you know, the minority participation aspect of it, you know, it just bewilders me that we could -- can be at this point without having, you know, a resolution to that. It's -- to me, it's unbelievable, but, you know, it's somewhat not surprising. You know, I'm hopeful that we can reconcile these differences that we have. If we can't, you know, we can't, but City ofMiami Page 103 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Commissioner Carollo: And let me be clear, let me be clear. Andl think I've said this in the past, andl would like to think that my colleagues believe me, andl think you do, 'cause you showed it today when, as a team, we passed a resolution for an amendment to go to the ballot. I'm doing this out of good faith. I'm not trying to kill this project. I'm not trying to -- what really am doing is just -- I need to justi the way I vote. And in order to do that, I need to have some of these questions answered; if not the majority. Andl understand very well that this is different than what, in the past, I have advocated where it's just waterfront property. I think I've been a loud voice with regards to waterfront property. Andl understand, even though this is waterfront property, there is a current lease there that's for 46 years. So I understand the difference very well. But there's still questions that need to be answered. And I'm telling you, I'm doing this in good faith andl need to have some of these answers before I can take a vote. Chair Gort: Yes, sir. Mr. Charters: Mr. Chairman. Chair Gort: You're recognized. Mr. Charters: I just -- I had to check one thing. Yes to the $10 million. Yes to the renovation. Yes to the transfer fee. Yes to all of our other minimums, all our construction, the 3.75 on the first 125 million. You understand that issue. Commissioner Carollo: Um-hm. Mr. Charters: We would -- until the tower opens, the minimum rent for the tower doesn't get paid. When the tower opens, that gets paid If he -- sorry. If it's partially constructed it's bonded, it gets finished, operated by somebody else, that gets paid But the tower minimum rent occurs when the subtenant opens for bus -- which would be -- Commissioner Carollo: Thank you for that answer, and it was short but very concise. Andl just want to make sure from our attorneys now that they agree with that. And just to paraphrase what you said, everything that's been promised from the Bayside's side or from GGP -- Commissioner Suarez: Stays in -- Commissioner Carollo: -- will be honored. The only part that will not be honored is the tower, until it is built. Once the tower is built, then also you would be responsible for everything that SkyRise Miami has promised. Correct? Mr. Charters: Yes. Commissioner Carollo: In essence. Now, I need to hear from our City Attorney and make sure that, from the City side, they agree with what you said. Ms. Mendez: Yes. That's -- on opening day, which is on page 4 of the contract, we start getting the 1,059,082 -- $59, 082 per year. Now, if there is no opening day for the first four years, on the fourth year, they're supposed to start paying that minimum. Mr. Torre: Or the fifth year, if there's a force majeure met. Commissioner Carollo: Understood. That's with the tower. What about all the other Bayside City ofMiami Page 104 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Mr. Torre: Bayside's increase of the parking that go -- of the retail that goes from one million to one million five hundred and forty is from the effective date of this lease. The increase from the parking of 10,000 to $675,000 is based upon from the effective date of this lease. Commissioner Carollo: So it will not be based on anything with SkyRise? It will be (UNINTELLIGIBLE)? Ms. Mendez: Right. Mr. Torre: Correct. Ms. Mendez: The -- and remember that if -- Commissioner Carollo: So you're agreeing with what he said? Ms. Mendez: Yes. Commissioner Carollo: Okay. Ms. Mendez: Yes. Commissioner Carollo: Okay. And l just needed to hear that from our side. I still do have a few more questions. I -- they are minor in nature, and I'm just -- I'm going to, you know, recapture my thoughts for a few minutes before I ask, because obviously, there's quite a few and it's some long hours, a lot of reading and stuff like that, so, you know, however, I do understand what you're saying, that -- andl do understand the difference between this agreement and what we've done before on waterfront property, because there is an existing lease, and if we don't do anything, we stay with exactly what we have. Commissioner Sarnoff And Commissioner Carollo, I don't know if you heard it; you might not have. It was kind of -- not a throw away, but it wasn't said as clearly as it could have been. Bayside is going to require a bond -- Commissioner Carollo: Understood. Commissioner Sarnoff -- for the -- so that we now know that if the building is not completed, a bonding company will require that it will be built. Commissioner Carollo: Understood. Commissioner Suarez: For? Commissioner Sarnoff For the tower. Commissioner Sarnoff Okay. Commissioner Carollo: For the tower. And -- Commissioner Sarnoff So I know to you, that's important. Commissioner Carollo: And then G -- General Growth Properties will be responsible for paying the City what SkyRise had promised, until they get another tenant, or -- they will be responsible to pay us; us, meaning the City. Commissioner Sarnoff I think the mechanics of it is GGP then -- City ofMiami Page 105 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Commissioner Suarez: (UNINTELLIGIBLE). Commissioner Sarnoff. -- (UNINTELLIGIBLE) performance by the bond, and then they have a fully functional building, and then they obtain a tenant for it and then that's opening day. Commissioner Carollo: Yeah. The important piece to me is that the City gets paid Commissioner Sarnoff. And we heard what it gets paid up until, except for one payment. Commissioner Carollo: Right. Commissioner Sarnoff. And now you have con -- I didn't have that confidence, by the way, until I learned that there's a bond -- there's going to be required a bond so that they're ensured a performance. Commissioner Suarez: And let me just -- can I make one quick point, which is -- I think it goes to Commissioner Carollo's -- one of his points, which is banks will lend -- very rarely will banks lend when you have a lease, unless it's a very, very long-term lease. That's why I think they make it a 99-year lease, so that they can capitalize the cost. It's almost like ownership. They -- you know, in real estate law, a 99-year lease is almost the equivalent of ownership. Mr. Torre: Right. Commissioner Suarez: So what suspect has to happen is after the capital improvements are done, the $27 million, to keep it in a first-rate rate facility, they're going to have to come out of the pocket in the future. They're not going to be able -- you know, unless another Commission gives them another 99-year lease and says, "go refinance." So -- I mean, I think, you know, that's what's going to end up happening there. Commissioner Carollo: I don't have any further questions for now. Again, I'll stand by what I said. Do I think this could be better? Yes, absolutely. As a matter of fact, just as I started with the parking -- the additional 296 parking spaces and so forth, but I also understand that it is better than what we currently have. Chair Gort: Okay. There's a motion on the floor. Is there any further discussion on this motion? Commissioner Carollo: Can we repeat what the motion is and --? Commissioner Suarez: To defer. It's a deferral motion, yeah. Mr. Hannon: Excuse me, Chair. The motion currently on the floor is to defer items RE.9 -- Vice Chair Hardemon: Continue. Commissioner Suarez: I think it's deferral. No? Vice Chair Hardemon: No, it was to continue. Commissioner Suarez: Continue is two meetings. Vice Chair Hardemon: No, continue is one. Next -- Commissioner Carollo: No. Continue is the same -like meeting. "Continue" means to the City ofMiami Page 106 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 same -like meeting. Vice Chair Hardemon: That will be in -- Commissioner Carollo: Two meetings. Vice Chair Hardemon: June 27, right? Commissioner Suarez: Yeah. Commissioner Carollo: Yes. Vice Chair Hardemon: Do we have a meeting before June 22? Mr. Hannon: The next -- Chair Gort: Twenty-six. Mr. Hannon: -- meeting is June 26. Chair Gort: Twenty-six. Vice Chair Hardemon: That's what I meant. Vice Chair Hardemon: That's what I meant, that day. Chair Gort: June 26. Vice Chair Hardemon: So that will be to defer -- Mr. Hannon: It will be a deferral to the June 26 Commission meeting. Vice Chair Hardemon: Okay. Mr. Hannon: And the items to be deferred are RE.9, RE.10, RE.11, and RE.12. Commissioner Carollo: Before we take a vote, I'd like to reach out to my colleague and say, is there a way that this could be tabled and somehow be -- Commissioner Suarez: Rated Commissioner Carollo: -- spoken to or --? Commissioner Suarez: Yeah. Commissioner Carollo: I mean, you have all the parties here. Is it possible for us to table this and for you to reach out to them or them reach out to you and see how it could be worked out in a way that it could be sufficed? And, listen, you're talking to the Commissioner that doesn't get rattled very easily or spooked when someone comes and lets them know, "Hey, if this" -- "if you don't vote for this now, it's off the table." But at the same time, I've seen a lot of negotiations not just from now, even from before, with regards to the museums and the LED (Light -Emitting Diode) and stuff like that and -- You know, I believe that there is a possibility that if this doesn't go now, that it could be off the table. So, again, I'm just throwing it out there, you know, trying to find some consensus, trying to see if we could have some negotiations, so to speak. I mean, it's 4: 30. There's still a little time. And -- City ofMiami Page 107 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Mr. Berkowitz: Make I make a suggestion? Vice Chair Hardemon: Wait, wait. Chair Gort: Wait. Excuse me. Wait a minute. Commissioner Carollo: And by the way, what I'm really saying -- and I'm saying to everybody and also to Mr. Berkowitz, with all due respect, and everyone from General Growth Properties, with all due respect, I do believe in the collegiate teamwork that we have up here. Andl could tell you, when one of my colleagues has reservations, you know, I really try as hard as I can to make sure that, you know, everyone in here has a voice and we can speak and so forth, and we saw it earlier this morning where -- even with the Administration, you know, andl brought it to my colleagues, and that's why I want everything to come before us so we can discuss. So when one of my colleagues has reservations, I definitely want to see if there's an opportunity to find some consensus, so with that said. Chair Gort: Okay. Vice Chair Hardemon: Mr. Chairman. Chair Gort: Yes, sir. Vice Chair Hardemon: I believe that the writing's on the wall as to how this vote would go. We can have this vote or not have this vote. But if we were talking about what would make me feel better about this matter, I can tell you that I'm aware -- no one likes to step on the toes of other Commissioners, but I'm aware that have the right to for a five-day rule ifI requested so. I'm aware that what that would do is would hurt Mr. Berkowitz, as you stated yourself, and maybe even the deal, because the City ofMiami would not be able to generate as much revenue from this as we anticipate. I can tell you that I have no intention, whatsoever, to hurt the business that you are in, but we have to understand how important this participation agreement is to this City. So no matter how this vote goes, I know the -- also, the power that I have to make it go the way that believe is best. But what believe will make me feel a little better is if we can -- if -- yeah, I think we can come up with at least something at the moment to at least move us forward, andl can go back to when I initially started this conversation, andl said that if we wanted to really make some type of matter -- or put something on the table that think will be best, it would look like -- and this is how I would put it, 'cause a motion is still on the floor, butl will -- in this unreadiness, I will say this. The greater of $700, 000 as a minimal or a percentage of the gross income as the City has calculated in all of its lease agreements for Bayside, the garage, and everything of that nature, the greater of a -- I want a 5 percent -- 'cause it currently is 10 percent. Break it down to a 5 percent, since it's going to be gross. Mr. Torre: I'm sorry. You said -- what was the percentage you were looking for? Vice Chair Hardemon: The percentage is 5 percent of the gross -- Mr. Torre: So you're looking for the greater of $700,000 or 5 percent --? Vice Chair Hardemon: Five percent of the gross -- that gross revenue formula that you have that you spent a long time -- Mr. Torre: Right. Vice Chair Hardemon: -- working out for the City, gross -- 5 percent of that and -- City ofMiami Page 108 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Mr. Torre: For what components of the property? Vice Chair Hardemon: No, as it currently -- so as it currently stands, the reason we have some revenue -- well, not "we," but the Foundation has some revenue is because it involves the garage and it also involves the lease -- Mr. Torre: No. I believe -- Vice Chair Hardemon: -- for the structure. Mr. Torre: It is just the retail component. Mr. Alfonso: Commissioner, are you looking for the word the "breakpoint?" Is it -- Vice Chair Hardemon: Well, I know -- I'm talking about the breakpoint, yes. Mr. Torre: 'Cause I think we need to be clear there. We could work off -- the existing agreement is just for the retail component. Commissioner Carollo: Why don't we table this -- Commissioner Suarez: And you can -- Commissioner Carollo: -- and -- Right. Commissioner Suarez: -- have discussions with them. Vice Chair Hardemon: IfI can -- yeah, I can have the discussions with them (UNINTELLIGIBLE). Mr. Torre: Commissioner, my concern on that is -- there's different percentage schedules on the retail. We get 1 percent of garage parking underneath; you know, 6 percent of the additional retail over a gross -- over a natural breakpoint as well. I'm willing to sit with you and -- Vice Chair Hardemon: If you want -- Mr. Torre: -- everyone involved. Vice Chair Hardemon: -- to take -- Mr. Torre: Whatever needs to -- Vice Chair Hardemon: -- (UNINTELLIGIBLE) me or to sit with me for -- Commissioner Suarez: Yeah. Vice Chair Hardemon: -- a few, that'd be fine. Commissioner Carollo: Yeah. The -- Chair Gort: Let me give you a suggestion. Commissioner Carollo: -- only thing is -- Chair Gort: When Bayside originally begin, they come up with a plan and -- where they gave City ofMiami Page 109 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 the abilities to some small owners, small minority owners of businesses to establish business, and I understand it's going to be quite a few new retail stores open that maybe that could be a component where that could be offered to minority business people to be part of that. 'Cause we have the experience in the past of quite a few people went through that process and they have became very successful. Commissioner Carollo: Right. Chair Gort: And this is one way that we can really help the minority business people. And the other request that we have, the -- I think the new Bayfront Park Foundation has been doing a great job in giving loans to small businesses within the area; at the same time, providing scholarship. What he's looking for is additional funding to even be able to give more loans and give more scholarships, more or less. Okay. Commissioner Carollo: Mr. Chairman. Vice Chair Hardemon: If we want to break for 10 minutes to go out and have a discussion, we can do that. Commissioner Carollo: Absolutely. And Mr. Chairman, the only thing is that in your discussions, what don't want to happen is that the City's portion is reduced. Vice Chair Hardemon: No, not going to the City's portion. Commissioner Carollo: Okay. I -- Mr. Torre: We're clear on that, Commissioner. Commissioner Carollo: You under --? Mr. Torre: We're clear. Vice Chair Hardemon: Yeah. Commissioner Suarez: Good luck. Chair Gort: Take a 10-minute break. Ten minutes. Later... Vice Chair Hardemon: Now that we've taken care of that business, I move to approve RE.12. Commissioner Suarez: Second. Commissioner Sarnoff. Second. Chair Gort: It's a motion and a second. Any further discussion? Mr. Hannon: Excuse me, Chair. Chair Gort: Yes. Mr. Hannon: Who is the second? Vice Chair Hardemon: Let me -- City ofMiami Page 110 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 BC.1 14-00466 Commissioner Sarnoff. I yield to the more distinguished better -looking Commissioner. Chair Gort: Commissioner Suarez seconded. Mr. Torre: Commissioners, ifI may, just to reiterate, the item -- the ballot question was changed from 22 million to a minimum of 27 million. Commissioner Carollo: So as amended. Vice Chair Hardemon: As amended. Mr. Torre: As amended. Chair Gort: Any further discussion? Okay. Ms. Mendez: And also taking into account the previous amendments that have all been incorporated in the record on RE.12, but most importantly was the 27 million that he said, but all the other ones that I stated on the record. Thank you. Commissioner Suarez: Let's go. Chair Gort: Okay. Any further discussion? Being none, all in favor, state it by saying aye." The Commission (Collectively): Aye. Mr. Hannon: As amended. Chair Gort: As amended. Okay. END OF RESOLUTIONS BOARDS AND COMMITTEES RESOLUTION Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING A Clerk CERTAIN INDIVIDUAL AS A MEMBER OF THE ARTS AND ENTERTAINMENT COUNCIL FORATERM AS DESIGNATED HEREIN. APPOINTEE: NOMINATED BY: Haydee Wheeler Commissioner Marc David Sarnoff 14-00466 Arts CCMemo.pdf 14-00466 Arts Current_Board_Members.pdf Motion by Commissioner Carollo, seconded by Commissioner Sarnoff, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 3 - Commissioner(s) Gort, Sarnoff and Carollo Absent: 2 - Commissioner(s) Suarez and Hardemon R-14-0229 City ofMiami Page 111 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Commissioner Carollo: Some of the noncontroversial ones. Chair Gort: Let's get it out of the way. Commissioner Sarnoff. I wasn't supposed to be here. Chair Gort: What we got left is board appointments. Commissioner Carollo: Can we go to the ones that are non -five -five? Let's do the ones that are not, so we -- Chair Gort: What discussion item we have? Commissioner Carollo: Could we do board appointments or something that's noncontroversial? Commissioner Sarnoff. (UNINTET,T IGIBT,F) BC (Board and Committees). Commissioner Carollo: Yeah. Commissioner Sarnoff. (UNINTET,T IGIBT ,F) board appointment. Chair Gort: Okay. Commissioner Carollo: Yeah, let's do it. Chair Gort: What he say, he want to wait for board appointments. Commissioner Carollo: Let's do it, BC.1. Nicole N. Ewan (Assistant City Clerk): Good evening, Chair and Commissioners. BC.1, Arts and Entertainment Council, Commissioner Sarnoff will be appointing Haydee Wheeler. Commissioner Carollo: So moved. Chair Gort: It's a motion. Is there a second? Commissioner Sarnoff. Second. Chair Gort: Moved and second. Any further discussion? Being none, all in favor, state it by saying iiye. " The Commission (Collectively): Aye. BC.2 RESOLUTION 14-00302 Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING Clerk CERTAIN INDIVIDUALS AS MEMBERS OF THE AUDIT ADVISORY COMMITTEE FOR TERMS AS DESIGNATED HEREIN. APPOINTEES: NOMINATED BY: Chair Wifredo (Willy) Gort Commissioner Marc David Sarnoff City ofMiami Page 112 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 BC.3 14-00467 Office of the City Clerk 14-00302 Audit CCMemo.pdf 14-00302 Audit Current_Board_Members. pdf NO ACTION TAKEN RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING A CERTAIN INDIVIDUAL AS A MEMBER OF THE BAYFRONT PARK MANAGEMENT TRUST FOR A TERM AS DESIGNATED HEREIN. APPOINTEE: NOMINATED BY: Jeanie Hernandez Commission -At -Large 14-00467 Bayfront CCMemo.pdf 14-00467 Bayfront Current_Board_Members.pdf Motion by Commissioner Carollo, seconded by Commissioner Sarnoff, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 3 - Commissioner(s) Gort, Sarnoff and Carollo Absent: 2 - Commissioner(s) Suarez and Hardemon R-14-0230 Nicole N. Ewan (Assistant City Clerk): BC.3, Bayfront Park Management Trust. There is one at -large appointment to be made at this time. Commissioner Carollo will be reappointing Marlene Avalo to the at -large seat. Commissioner Carollo: Is it that one or is it Jeanie Hernandez? Ms. Ewan: I'm sorry. Jeanie Hernandez. Commissioner Carollo: So move. Commissioner Sarnoff. Second. Chair Gort: It's been moved and second. Is there further discussion? Being none, all in favor, state it by saying iiye. " The Commission (Collectively): Aye. BC.4 RESOLUTION 14-00465 Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING A Clerk CERTAIN INDIVIDUAL AS A MEMBER OF THE CIVIL SERVICE BOARD FOR ATERM AS DESIGNATED HEREIN. APPOINTEE: NOMINATED BY: City ofMiami Page 113 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Lillie Harris Commission -At -Large 14-00605 Civil Service CCMemo.pdf 14-00605 Civil Service Current_Board_Members.pdf Motion by Commissioner Carollo, seconded by Commissioner Sarnoff, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 3 - Commissioner(s) Gort, Sarnoff and Carollo Absent: 2 - Commissioner(s) Suarez and Hardemon R-14-0231 Nicole N. Ewan (Assistant City Clerk): BC.4, Civil Service Board. There is one at -large vacancy on the board. Vice Chair Hardemon will be appointing Lillie Harris. Commissioner Carollo: So move. Commissioner Sarnoff. Second. Chair Gort: It's been moved and second. Any further discussion? Being none, all in favor, state it by saying iiye. " The Commission (Collectively): Aye. Ms. Ewan: That completes the board and committees at this time. The rest, I need a four fifth and five five term waiver. Commissioner Carollo: Mr. Chairman. Chair Gort: Yes. Commissioner Carollo: I'm seeing here BC.5, which is the Civilian Investigative Panel. Have we reached out to the committee that we appointed and see when they can meet and give them the task and --? I mean, I think we -- on the record, we pretty much said what we needed them to do and stuff. Chair Gort: Sixty days. ToddB. Hannon (City Clerk): Commissioners, yes, sir. The CIP, Independent Review Committee, actually had their first meeting on June 6. We have another meeting scheduled for June 23. Commissioner Carollo: Thank you. Mr. Hannon: You're welcome, sir. Commissioner Carollo: And please keep us informed with what's occurring and what's going only with regard to that. Mr. Hannon: Yes, sir. Commissioner Carollo: Thank you. Is there anything else that we could take up? Chair Gort: BC. 6. No. City ofMiami Page 114 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Commissioner Sarnoff. BC.6. What's BC. 6? Commissioner Carollo: Discussion items. Chair Gort: Code Enforcement. Commissioner Sarnoff. I think have -- I think there is a discussion item on alcohol ordinance. It's not worth bringing it up now. Commissioner Carollo: No. Commissioner Sarnoff. It's -- BC.5 RESOLUTION 14-00392 Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION CONFIRMING THE Clerk APPOINTMENT OF CERTAIN INDIVIDUALS AS MEMBERS OF THE CIVILIAN INVESTIGATIVE PANEL FOR TERMS AS DESIGNATED HEREIN. BC.6 14-00304 APPOINTEES: 14-00392 CIP CCMemo.pdf 14-00392 CIP Current_Board_Members.pdf NO ACTION TAKEN RESOLUTION NOMINATED BY: Civilian Investigative Panel Civilian Investigative Panel Civilian Investigative Panel Civilian Investigative Panel Civilian Investigative Panel Civilian Investigative Panel Civilian Investigative Panel Civilian Investigative Panel Civilian Investigative Panel Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING Clerk CERTAIN INDIVIDUALS AS MEMBERS OF THE CODE ENFORCEMENT BOARD FOR TERMS AS DESIGNATED HEREIN. APPOINTEES: NOMINATED BY: City ofMiami Page 115 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 BC.7 14-00305 (Alternate Member) (Alternate Member) NO ACTION TAKEN RESOLUTION Commission -At -Large Commission -At -Large Commission -At -Large Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING Clerk CERTAIN INDIVIDUALS AS MEMBERS OF THE COMMUNITY RELATIONS BOARD FOR TERMS AS DESIGNATED HEREIN. BC.8 14-00393 APPOINTEES: 14-00305 CRB CCMemo.pdf 14-00305 CRB Current_Board_Members.pdf 14-00305 CRB Memo and Resumes.pdf NO ACTION TAKEN RESOLUTION NOMINATED BY: Mayor Tomas Regalado Vice Chair Keon Hardemon Commissioner Marc David Sarnoff Commissioner Francis Suarez Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING Clerk CERTAIN INDIVIDUALS AS MEMBERS OF THE COMMISSION ON THE STATUS OF WOMEN FOR TERMS AS DESIGNATED HEREIN. BC.9 14-00394 APPOINTEES: NO ACTION TAKEN RESOLUTION NOMINATED BY: Commissioner Marc David Sarnoff Commissioner Marc David Sarnoff Commissioner Frank Carollo City ofMiami Page 116 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING Clerk CERTAIN INDIVIDUALS AS MEMBERS OF THE EDUCATION ADVISORY BOARD FOR TERMS AS DESIGNATED HEREIN. APPOINTEES: (Ex-Officio Non Voting Member) (Ex-Officio Non Voting Youth Member) NO ACTION TAKEN BC.10 RESOLUTION 14-00469 NOMINATED BY: City Manager Daniel J. Alfonso City Manager Daniel J. Alfonso Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING CERTAIN Clerk INDIVIDUALS AS MEMBERS OF THE EQUAL OPPORTUNITY ADVISORY BOARD FOR TERMS AS DESIGNATED HEREIN. BC.11 14-00308 APPOINTEES: NOMINATED BY: Chair Wifredo (Willy) Gort Commissioner Marc David Sarnoff Commissioner Marc David Sarnoff Commissioner Frank Carollo Commissioner Frank Carollo Commissioner Francis Suarez AFSCME 871 IAFF FOP 14-00469 EOAB CCMemo.pdf 14-00469 EOAB Current_Board_Members.pdf NO ACTION TAKEN RESOLUTION City ofMiami Page 117 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING Clerk CERTAIN INDIVIDUALS AS MEMBERS OF THE FINANCE COMMITTEE FOR TERMS AS DESIGNATED HEREIN. APPOINTEES: NOMINATED BY: Vice Chair Keon Hardemon Commissioner Marc David Sarnoff 14-00308 Finance CCMemo.pdf 14-00308 Finance Current_Board_Members.pdf NO ACTION TAKEN BC.12 RESOLUTION 14-00470 Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING Clerk CERTAIN INDIVIDUALS AS MEMBERS OF THE HOMELAND DEFENSE/NEIGHBORHOOD IMPROVEMENT BOND PROGRAM OVERSIGHT BOARD FOR TERMS AS DESIGNATED HEREIN. APPOINTEES: NOMINATED BY: Chair Wifredo (Willy) Gort Vice Chair Keon Hardemon Commissioner Marc David Sarnoff Commissioner Marc David Sarnoff Commissioner Frank Carollo Commissioner Frank Carollo 14-00470 Homeland CCMemo.pdf 14-00470 Homeland Current_Board_Members.pdf NO ACTION TAKEN BC.13 RESOLUTION 14-00471 Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING Clerk CERTAIN INDIVIDUALS AS MEMBERS OF THE LIBERTY CITY COMMUNITY REVITALIZATION TRUST FOR TERMS AS DESIGNATED HEREIN. APPOINTEES: NOMINATED BY: Vice Chair Keon Hardemon City ofMiami Page 118 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Vice Chair Keon Hardemon Vice Chair Keon Hardemon Vice Chair Keon Hardemon City Manager Daniel J. Alfonso NO ACTION TAKEN BC.14 RESOLUTION 14-00310 Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING Clerk CERTAIN INDIVIDUALS AS MEMBERS OF THE MAYOR'S INTERNATIONAL COUNCIL FOR TERMS AS DESIGNATED HEREIN. APPOINTEES: 14-00310 MIC CCMemo.pdf 14-00310 MIC Current_Board_Members.pdf 14-00310 MIC Resume.pdf NO ACTION TAKEN BC.15 RESOLUTION 14-00396 NOMINATED BY: Chair Wifredo (Willy) Gort Commissioner Frank Carollo Commission -At -Large Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING Clerk CERTAIN INDIVIDUALS AS MEMBERS OF THE MIAMI SPORTS AND EXHIBITION AUTHORITY FOR TERMS AS DESIGNATED HEREIN. BC.16 14-00313 APPOINTEES: NO ACTION TAKEN RESOLUTION NOMINATED BY: Commissioner Marc David Sarnoff Commissioner Marc David Sarnoff Commissioner Frank Carollo Commissioner Frank Carollo City ofMiami Page 119 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING Clerk CERTAIN INDIVIDUALS AS MEMBERS OF THE URBAN DEVELOPMENT REVIEW BOARD (UDRB) FOR TERMS AS DESIGNATED HEREIN. APPOINTEES: NO ACTION TAKEN BC.17 RESOLUTION 14-00398 NOMINATED BY: Chair Wifredo (Willy) Gort Commissioner Marc David Sarnoff Commissioner Marc David Sarnoff Commissioner Frank Carollo Commissioner Frank Carollo Commissioner Francis Suarez Office of the City A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING Clerk CERTAIN INDIVIDUALS AS MEMBERS OF THE VIRGINIA KEY BEACH PARK TRUST FOR TERMS AS DESIGNATED HEREIN. BC.18 14-00315 Office of the City Clerk APPOINTEES: NOMINATED BY: Mayor Tomas Regalado Chair Wifredo (Willy) Gort Commissioner Marc David Sarnoff Commissioner Frank Carollo 14-00398 VKBPT CCMemo.pdf 14-00398 VKBPT Current_Board_Members.pdf NO ACTION TAKEN RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION APPOINTING CERTAIN INDIVIDUALS AS MEMBERS OF THE WATERFRONT ADVISORY BOARD FOR TERMS AS DESIGNATED HEREIN. APPOINTEES: NOMINATED BY: Mayor Tomas Regalado City ofMiami Page 120 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 DI.1 14-00339 City Commission Chair Wifredo (Willy) Gort Vice Chair Keon Hardemon Vice Chair Keon Hardemon Commissioner Marc David Sarnoff Commissioner Marc David Sarnoff Commissioner Frank Carollo Commissioner Frank Carollo Commissioner Francis Suarez 14-00315 WAB CCMemo.pdf 14-00315 WAB Current_Board_Members.pdf NO ACTION TAKEN END OF BOARDS AND COMMITTEES DISCUSSION ITEMS DISCUSSION ITEM STATUS OF HIRING POLICE OFFICERS. 14-00339 Cover Page.pdf 14-00339-Submittal-City Manager Memo -Police Department Hiring and Staffing Update.pdf DISCUSSED Chair Gort: What else? Commissioner Sarnoff. We're done? Anything else? Oh, didn't we have Police? We have Police? Commissioner Carollo: Let's do Police. Commissioner Sarnoff. Police. Deputy ChiefLuis Cabrera: Good afternoon. Deputy ChiefLuis Cabrera, City ofMiami Police Department. I'm here to provide you a hiring status for the month of June. So far, we've hired 30 officers from May 6 to June 9; 7 officers are currently awaiting medical clearance. We have processed a total of 370 applicants; of those, we still have 65 remaining that are currently undergoing their polygraph testing. We have 50 sworn vacancies. Our next orientation is going to be July 9 -- I'm sorry -- July 2014. We expect to have over 400 applications. Our next police academy will be June 30, and it's scheduled for approximately 40 applicants. We have two detention officer openings that we are currently filling. We have 23 applicants currently being processed for the emergency dispatchers. We have three vacancies in that area. Commissioner Sarnoff. Chief are you saying to this Commission that patrol, as you define it, you have 619 patrol officers? City ofMiami Page 121 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Mr. Cabrera: We have a total of 619 patrol office [sic] that include the beats, people that are -- and people that are in specialized units. In patrol, we actually have 420 officers. Commissioner Sarnoff. Okay. So here's my question, 'cause I'm going to -- I guess we don't need that. So I suspect you're going to get this -- I think, Mr. Chair, you're going to get the same number of people coming this year as you had last year, and I'm just gauging by when we had the meeting -- I think it was July or September, so we had about 1,100 cops, and we have been able to demonstrate to them the ability to hire 29 more officers. I don't think we're going to get a lot of very high grades from the community when they see that -- I'm assuming by -- let me ask you this question: By July of 2014, how many actual hires, people that you call police officers, do you project to have? So you just take your main number and project it forward two more months. Mr. Cabrera: We calculate about 60 to 70. Commissioner Sarnoff. Six oh to seven oh more? Mr. Cabrera: Yes, year to date. Commissioner Sarnoff. Okay, slow down. So going back to July of '09, which I think is when you had the meeting, you had 1,109 cops. You think you're going to be able to show in July of '14 that you're going to have 1,200 cops or just short of that? Armando Aguilar: Armando Aguilar, executive assistant to the Chief of Police. We have -- we've made, year-to-date, 52 sworn hires. I believe that by July, we should be at around 60 or 70. Commissioner Sarnoff. Well, it's okay to say you have sworn hires. It's a game in numbers. You've also had people leave. Mr. Aguilar: Correct. Commissioner Sarnoff. So your 60 is reduced by the number of people who left, correct? Mr. Aguilar: Yes. Commissioner Sarnoff. So net cops are how many? Net new cops, let's call them. Mr. Aguilar: I'll get you that figure right now. For 2014 year-to-date, we've hired 52 and lost 29. Commissioner Sarnoff. Okay. And just so you know, you made a commitment that you could show 100 more police officers on the street, and the best can tell the community, you're approaching 30. Chair Gort: Twenty-three. Commissioner Sarnoff. Thirty-three? Okay. Chair Gort: Twenty-three. Commissioner Sarnoff. Twenty-three. I'm just telling you, this is not going to go down well for the Administration. They're coming. And -- I mean, I've asked this question time and time and time again: What can this Commission do to help you hire people? City ofMiami Page 122 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Mr. Aguilar: Commissioner, we hired 110 last year. We expect to hire more than that this year, at least 120. As far as separations, attrition is going to happen for a number of reasons. We have -- Commissioner Sarnoff. So stop right there. I don't think Commissioner Gort, I suspect the other Commissioners to my right, don't really care that you're doing a great job of hiring. I think they're looking for net new. That is, subject to a reduction, we know we have a great big bubble comes towards us of people that are in the DROP (Deferred Retirement Option Plans) and yet, you could be at record pace of hiring, but you'd have to be at like world -record pace of hiring to offset your losses. And you made commitments, your Chief did, to the citizens ofMiami that they could actually see 100 new cops. Unless I can't do numbers -- and I'm not going to say I'm Commissioner Carollo, but I think could read this stuff. We're going to go back to them and say it's 23, 25, 27? We've done a quarter of what we said we'd achieve? And when I say fl e'L- I shouldn't be saying {-ire. "I try to be as cooperative with this Administration as I can. The end of the day is it's you guys. We keep budgeting and allocating -- I think we're budgeted and allocated for 1,179 cops. We are 50 police officers away from what the graces of this Commission gave you, and don't mean to say "graces," but you get what I'm saying. So -- I mean, I've been at this for, what, three and a half years with you guys? Mr. Aguilar: Roughly, yes, sir. Commissioner Sarnoff. Every poll number of any poll I've seen, you know what the number -one concern of the citizens are? Crime. Whether it's perceived or whether, you know, Mr. Cabrera can convince me the numbers are down, whatever it is. The perception is that we're not there and --I mean, I'm --I was asked not to bring this up at every Commission meeting, andl certainly acquiesce to the Chair. But if we're going to come up with 29 net new cops or 23 net new cops, it's a quarter of what we said we'd be able to do. Mr. Aguilar: Well, again, that is year-to-date. Last year, for the entire year, we lost 40. We've lost 29 for this year. And we have 5 -- no -- 8, I believe, I'm sorry, that have to leave due to the DROP this year. We don't expect -- barring anything unforeseen, we don't expect to lose a lot more than 40, and we do expect to hire the 120. So it would be a net 80. Commissioner Sarnoff. So that's a net 80. So a net 80 for this year -- when do you think you're going to have the net 80? What date? What time frame? Mr. Aguilar: By the end of the calendar year, so December. Commissioner Sarnoff. December. Okay, so you're going to have to tell that room, we were just off by a couple months, five, six months, right? Daniell Alfonso (City Manager): Commissioner, this is Danny, the Manager over here. I'm sorry. I also want to add that some of the additional positions that are actually in the street were not true adds. I mean, these are people that were taken out from behind the desk. Commissioner Sarnoff. Correct. Mr. Alfonso: So just looking at the net increase maybe doesn't show that story. So how many of the people that were planned -- Commissioner Sarnoff. How many desk jobs became -- Mr. Alfonso: Right. City ofMiami Page 123 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Commissioner Sarnoff.. -- outside jobs? Mr. Alfonso: That actually have gone out. Mr. Aguilar: Right. Those are -- those were 20. And with the exception of 6 of those positions, the remaining 14 have already been sent out. Commissioner Sarnoff.. Six of those positions remain -- Mr. Alfonso: So 14 of the 20 have gone out; 6 are still behind a desk. Commissioner Sarnoff.. Okay. So now, if Commissioner Gort's numbers are right, andl assume he is, 23 plus 14, so you've done a little over a third of what you said you'd do. Mr. Aguilar: Year-to-date, yes, sir. Chair Gort: Well, wait a minute. Let's get from the beginning. Two years ago, how many have we hired and how many have we DROP'd? 'Cause you said last year you hired 80 -- Mr. Aguilar: Since 2011, we have a net gain of 51, andl can go year by year, if you'd like. Mr. Alfonso: And excuse me. I'm sorry to interrupt. This -- over here again. The net gain of 51 is actually officers. Mr. Aguilar: Actual hires. Mr. Alfonso: Ifyou take then the 16 that are from behind the desk in terms of putting those in the street, then that's what I'm trying to get at. Because when we say that we were talking about -- and I don't think it was quite a hundred, but it was close. I think it was like 90. Commissioner Sarnoff.. It was 93. Mr. Alfonso: Right. It included taking people from behind the desk and those kinds of things. Commissioner Sarnoff.. But all -- but remember, that was from the moment they were at the Commission meeting. Mr. Alfonso: Yes, yes. Commissioner Sarnoff.. And all I'm saying is, I think we're going to get to 30 -- Mr. Alfonso: It is going slower than anticipated, yes. Commissioner Sarnoff.. You better have a reason. I mean, you better have an explanation, or I hope you do, because in that explanation, you should have a solution. I mean, every year we go through this, every year. It's no longer -- it can't be this Commission any longer. We allocate the money, but it's -- something is still stopped up in your drain. I don't know what it is. Mr. Aguilar: We'll take another look at it, Commissioner, and we'll definitely come back with a plan to fix whatever step necessary. Commissioner Suarez: Mr. Chair. Chair Gort: Look -- yes, go ahead. City ofMiami Page 124 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Commissioner Suarez: I think this Commission is doing everything it can do, and I've said it before time and time again. And if -- I don't know what's going to happen with Bayside, what we're going to do with Bayside, but if we decide to put this to a referendum and it passes, that's -- you put it in the context of more police officers, so the delta in revenue is almost 100 police officers. I mean, it's not a hundred police officers, but it's 75, let's say, okay. So that's additional revenue, nontax revenue, by the way, that would fund potentially, if our Commission wanted it to fund, a significant amount of officers. Andl think what we have said as a policy -making board is that the additional revenue that comes into this government will go, aside from taking care of our own current employees, which we obviously have an obligation to do, will go to hiring new police officers. I mean, I think we've been very clear that that's what we're striving for, but we keep coming back to the same point and it's -- Chair Gort: Okay. Commissioner Suarez: Are we reaching out, let's say, to like universities like FIU (Florida International University) and UM (University ofMiami) and --? I mean, there's people that are graduating with criminal jusfice (UNINTELLIGIBLE). Chair Gort: Let -- look, the problem is the process. How many people graduates from our academy at the City ofMiami? Mr. Aguilar: We put through, I believe, five (UNINTELLIGIBLE) academy. Chair Gort: Talking about total. Mr. Aguilar: So it's -- Chair Gort: People that go to school there. Mr. Aguilar: I would estimate about 150 per year. Chair Gort: A hundred fifty per year. Mr. Aguilar: Yes, sir. Chair Gort: Those people, once they finish, they're certified police officers? Mr. Aguilar: Yes, they are. Chair Gort: And we cannot hire them? Mr. Aguilar: We've hired many of them. Chair Gort: But I understand we have a lot of problem hiring them, because they don't comply with our minimum requirement, although they're -- Mr. Aguilar: Correct. The requirements to graduate from the self -sponsored academy where they pay their own way is the minimum State requirements for certification as a law enforcement officer, and our entry-level requirements are more stringent, so not everybody that graduates from our academy gets hired as a police officer by us. Mr. Alfonso: I also wanted to add that not everybody that comes to our academy is ready to work with us, because some of them are actually from other police departments. Chair Gort: I understand that. But I have known now many individuals that have paid their City ofMiami Page 125 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 $10, 000, they have gone to the academy, and they not have been able to be hired. Commissioner Suarez: And would echo that, and what would say is it should be the opposite. We should be prescreening. There should be like a prescreening where you pay $500 instead of $5, 000, and they prescreen you, and if you -- you know, maybe that's not refundable. But if you don't pass the prescreening, then, you know, you don't have to pay the $5, 000. But my issue is -- Mr. Manager, the issue is people spending $5, 000 or 10,000 or whatever the amount is and then not being eligible to be hired. I know -- Mr. Alfonso: Well -- Commissioner Suarez: -- that exists, 'cause I know people that have -- Mr. Alfonso: No, I know. Commissioner Suarez: -- gone through that. Mr. Alfonso: Commissioner, butl think that the service that we offer in the academy, it's open to anyone. We certainly put our own applicants that meet the qualifications, if they're not certified through the academy as well, and they don't have to pay a penny. But if I'm a regular civilian, maybe I don't meet the qualifications of the City ofMiami Police Department, but want to pay out of my own pocket to educate myself as a police officer -- Commissioner Suarez: Understood. Mr. Alfonso: --I come to this academy. Commissioner Suarez: But I think we should offer a service to applicants out of -- I think it's the right thing to do. If somebody comes to you and says, "We would rather do" -- "We want to do a prescreening for $500," let's say. I don't know. I don't know what it's going to cost, you know. "We want you to do our psych; we want you to do, you know, our history, our background or whatever," and then all of a sudden, that's done and they tell you, "Listen, you're in the wrong profession, " you know? Chair Gort: Right. Mr. Alfonso: You may not meet the qualifications ofMiami Police Department, but maybe you can work for the Miccosukee Police Department or you can work for another city police department because you are certified. Chair Gort: My question is anyone can sign up, pay their $10, 000 -- Commissioner Suarez: Right. Mr. Alfonso: That's correct. Chair Gort: -- and become certified without having any -- Commissioner Suarez: Right. Chair Gort: -- requirement -- Commissioner Suarez: Exactly. Chair Gort: -- or any investigation; they can go in the academy with no problem, at all. City ofMiami Page 126 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Mr. Alfonso: I'm not -- Chair Gort: (UNINTELLIGIBLE). Mr. Alfonso: -- sure -- I'm sure that there's some prescreening process, Commissioner. Chair Gort: Okay. Mr. Alfonso: But it is like going to college. I mean, this is -- they go through the academy. There's a process that they go through, but what we're saying is that our process requires a higher level of qualification. Chair Gort: Do they do background check before they go in the academy? Mr. Cabrera: Commissioner -- Chair Gort: Do they do a background check before they go in the academy? Mr. Cabrera: Commissioner, the applicants that apply for the Miami Police College for their academy, besides paying the amount, go through a less restrictive background, polygraph, and testing. Once they graduate, they have the opportunity, just like anybody else in the public or that's certified, to apply and register with the City ofMiami. At that time, they begin the entire process with us. Just because these applicants were qualified to go to the academy and pass their process, our process is a lot more stringent. And there's -- in many cases, they do not qualify. Commissioner Suarez: Andl would just say -- andl know this is kind of getting off the topic, because -- but I think it should be backwards. I think we should tell our applicants -- at least, if they want to pay a nonrefundable fee, because I know this has happened. We should tell our applicants, "Listen, you are" -- "You're not hirable by the City ofMiami. If you want to keep going and pay the $5, 000 and then you want to go apply for another department, then that's fine." I think we should do that. That's just my opinion. That's a whole 'nother issue. The issue that I'm seeing here is, based on what you guys are saying, is that we don't seem to have enough qualified people, right? So my question is: Are we going to colleges that have students that are -- have students that are applying for -- you know, that are studying criminal jusfice and saying, "Hey, we are open for business." You know, what I mean? "We need good applicants and people need good jobs and" -- Mr. Cabrera: Commissioner, to answer your question. Our background units, our recruitment unit goes out to universities, to the military, and they put advertisements throughout. We go to the radio stations and we announce it, so we're out there letting the people know that we're interested and we want them to apply. Commissioner Sarnoff. Couldl take a shot at this? And tell me if I'm wrong, and maybe this will explain why the process is the way the process is. So you advertise by June 30 of this year -- or you would have advertised, let's say, in March that the City ofMiami is going to be accepting qualified applicants. So you obviously have to wait until June 30 to get that net of people. Fair enough? Mr. Cabrera: Correct. Commissioner Sarnoff. Then you have to stay within that net of people. You then screen them, right? City ofMiami Page 127 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Mr. Cabrera: Correct. Commissioner Sarnoff. You can't go outside of that net, correct? Otherwise, we're hiring somebody's -- right. So this net has to be exhausted, right? Mr. Cabrera: Correct. Commissioner Sarnoff. So of the thousand applicants -- I'm just going to ballpark this -- 150 are qualified, some number like that, all right, and you have to then go through a screening of these thousand people to disqualin, 850 people. Mr. Cabrera: Yes. Commissioner Sarnoff. Okay. Andl can see why this is laborious and takes a long time. So the Chief had two or three people two or three years ago that were going and looking and making these calls as to whether somebody's qualified. He's increased that to six people now. Mr. Cabrera: More -- Commissioner Sarnoff. How many people? Okay, good. You know what, I'm just -- Unidentified Speaker: Twenty-one. Mr. Cabrera: Twenty-one people -- Commissioner Sarnoff. Twenty-one -- Mr. Cabrera: -- in the background unit. Commissioner Sarnoff. Now 21 people are making calls to see as quickly as they can, or whatever they do, the due diligence they do to make sure that this list is then reduced. Andl take it that's -- that list now -- is -- this thousand, does that include already certified police officers? Mr. Cabrera: Certified and noncertified, yes, sir. Commissioner Sarnoff. And uncertified, okay. And it's that list that keeps us -- we're hostage to the list until we exhaust the list. Mr. Cabrera: Correct. And then once the list is exhausted, we begin a new list. Commissioner Sarnoff. Is it --? Mr. Alfonso: Or until a year passes and -- Commissioner Sarnoff. Is it -- until a year -- okay. Mr. Alfonso: Yes. Commissioner Sarnoff. Wow, it takes us a year to go through a list. Mr. Alfonso: No, no, no, no. If the list is a year old, we can -- Commissioner Sarnoff. Right. Mr. Alfonso: -- advertise again. City ofMiami Page 128 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Commissioner Sarnoff. Right. So -- Chair Gort: You can re -advertise again, but it takes a year. - Commissioner Sarnoff. -- there is no way of doing a second list, right? You have to go through the first list. Mr. Alfonso: Correct. Commissioner Sarnoff. 'Cause otherwise, that's creating a discrimination claim of some sort, right? Mr. Cabrera: Correct. Commissioner, I want to clam something. Earlier you asked me -- and I didn't have the number in front of me -- how many people do we have on patrol, andl want to make sure I give you an accurate number. That's something that's important. We currently have 364 police officers working in patrol. That's not including rookies that are in FTO (Field Training Officer). I wanted you -- to make sure that I provided you that -- Commissioner Carollo: Why does that not include rookies that are in FTO? It's a two -man unit, right? Mr. Cabrera: Well, I'm -- the number I'm giving you is the actual police officer that's working in patrol; the rookies being trained by the police officer, if we want to include the rookies -- Commissioner Carollo: But he's still a sworn law enforcement officer, right? Mr. Cabrera: Yes, sir. Commissioner Carollo: And he still could make an arrest? Mr. Cabrera: Yes, sir. Commissioner Carollo: So why are you not including that? If you have a two -man call, doesn't that unit, both of them, the rookie and the FTO, go? Mr. Cabrera: Yes. Commissioner Carollo: So he should be counted. Mr. Cabrera: Commissioner, while he's on FTO, we don't count them as part of our numbers in patrol. Commissioner Carollo: Why not? He's still a sworn law enforcement officer that can do anything that any other law enforcement officer can do. He should be counted. Mr. Aguilar: Commissioner, the -- Commissioner Carollo: They handle two -man calls, right? Mr. Aguilar: Some do. Commissioner Carollo: If a burglary alarm goes off you send that two -man unit, right? Mr. Aguilar: Some do; it depends. For example, somebody on their first month of FTO may not City ofMiami Page 129 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 be sent as a two -officer unit. Remember that that's -- a person who's in their first month of field training just got out of the academy and has no practical experience in police work. Some of the -- as that new officer progresses, the field training officer may make the determination, "Okay, you know, you're ready to handle a two -man call without getting another officer." The reason we don't count the rookies as part of our staffing is because that's not somebody that we count on to meet our minimum staffing for that particular area because of the reason that I said, especially with the newer officers. Mr. Alfonso: Nontheless, there are 35 officers on that status, Commissioner. Commissioner Carollo: By the way, I disagree, I disagree. I respectfully disagree. Aren't they wearing the same uniform that you're wearing, except they have a silver badge? Mr. Aguilar: Yes, sir. Commissioner Carollo: Can't they make an arrest? Mr. Aguilar: Yes, they can. Commissioner Carollo: Can't they give tickets? Mr. Aguilar: Yes, they can. Commissioner Carollo: I mean, you have police presence right there. I mean, they can do anything that any other officer can do. Mr. Alfonso: So if we include those 35, we got 399 men on patrol. Commissioner Carollo: I -- and -- Mr. Alfonso: Except 35 of them are doubled up. Commissioner Carollo: And by the way, I say that you do include them because that's a two -man unit. They're riding with an FTO, and if they have an alarm call -- I mean, I could go on with, you know, two -man unit calls. You know what I'm speaking about. Yeah, you have two police officers there, and for argument sake, the presence is there, and they can do anything that a police officer can do. I mean, if we were talking PSAs (Public Service Aides), then I tell you, okay, that's different, but, no, I think they should be counted. Mr. Cabrera: Okay. If we count the rookies that are in FTO right now, then we're at 399. By the way, just as a point of reference, we currently put an additional 12 officers on the street from specialized units so we can enhance our patrol during the summer months. I've had some discussions with the Manager that's going to help cover beats, certain beats in certain areas and beef up our problem -solving teams. Commissioner Carollo: Now, I will say, though, out of -- what's the total amount that we got, a thousand -- how many officers? Mr. Cabrera: A thousand one hundred twenty-nine. Commissioner Carollo: A thousand -- I'm sorry. Say that again. Mr. Cabrera: One thousand one hundred and twenty-nine. Commissioner Carollo: Out of the 1,129 only roughly 400 are in patrol? City ofMiami Page 130 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Mr. Cabrera: Yes. Mr. Alfonso: But then to that, you have to add the problem solving teams, the NROs (Neighborhood Resource Officers) -- Unidentified Speaker: Beats. Commissioner Carollo: Well -- Mr. Alfonso: -- beats. Commissioner Carollo: -- then, we need to define what patrol is. We need to define what "patrol" is. Because if the NRO is wearing the same uniform, they're uniformed officers, they're driving a marked unit, they're handling calls or at least, you know, there's a presence there, I think we need to then define what `patrol" is, because I think they could be counted also. Mr. Alfonso: Well, you would count them as uniform -- Commissioner Carollo: Yeah, exactly. Mr. Alfonso: Commissioner, the question had been asked before, how many uniformed officers are out there, and the number is in excess of 600 -- Mr. Cabrera: Six hundred and twenty five, I believe. Mr. Alfonso: Seven hundred and thirty-eight total uniform right now -- Chair Gort: My understanding -- Mr. Alfonso: -- of your eleven hundred and twenty. Commissioner Suarez: But you got to define that, too, because there's three people in uniform right here, so -- I mean -- Unidentified Speaker: No. Mr. Alfonso: No, Commissioner. These executive officers here are not in that 738 count. Commissioner Suarez: No, I -- and that's my point, but they're uniform -- I mean, they wear a uniform, so -- Commissioner Carollo: Right. Commissioner Suarez: -- I mean -- Commissioner Carollo: But they're not -- Commissioner Suarez: Right, right. I know. I get it. Mr. Alfonso: They are in the support column, if you look at that report that was given to you. Commissioner Suarez: I get it, but I understand what he's trying -- the point he's trying to make too, which is -- I agree, andl think an NRO should be counted as a patrol officer. City ofMiami Page 131 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Commissioner Carollo: Absolutely. Commissioner Suarez: Because I know for a fact that my two NROs, the NRO for Shenandoah and the NRO for slightly west are out there, they're beating the streets, they're arresting people constantly -- Commissioner Carollo: Absolutely. Commissioner Suarez: -- so -- Mr. Alfonso: NROs includes --I mean, I'm sorry -- the 738 includes the officers that are in the street, your sergeants, your lieutenants, the -- Unidentified Speaker: K-9, mounted. Mr. Alfonso: -- K-9, mounted, motors; you know, all the guys that are out in the street. Commissioner Suarez: It's important. That's important. That's the right number, I think. Commissioner Sarnoff. Well -- and if you look at the 619 they claim as patrol and then you got up and said it's 364, but it doesn't include -- I don't know. I mean, I'm not an expert in this. I'm asking a question because -- the next question I would ask: Of the 364 that we think are patrol officers, that does not include -- go ahead. Mr. Aguilar: The 364 that we count as patrol officers are the officers assigned to the NET (Neighborhood Enhancement Team) areas that handle calls for service and that are subject to the Department's minimum staffing requirements to where we say no matter what happens on this area, on this shift, no less than five police officers will be assigned to that shift. That's the 364, your calls for service patrol officers -- Commissioner Sarnoff. So that -- Mr. Aguilar: -- plus the 35 which we can count with the 364, because those are the officers on FTO that -- they work in that assignment. Commissioner Sarnoff. So the Delta between -- let's just get it up to 400. So the Delta between the 400 and the 619 are? Mr. Aguilar: Beat officers -- Unidentified Speaker: Specialized unit. Mr. Aguilar: -- problem -solving teams, those are the -- neighborhood resource officers -- those are the uniform personnel that are assigned to the NETs. Commissioner Sarnoff. Okay. Chair Gort: My understanding is, we're budget for 1,179. Mr. Alfonso: We are budgeted for 1,179; some of those partial. Chair Gort: We -- presently, according to what you're telling me, we have 1,129. So we're 50 -- Mr. Alfonso: Correct. City ofMiami Page 132 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 DI.2 14-00438 City Commission DI.3 14-00492 Office of the Mayor Chair Gort: -- to the goal. Mr. Alfonso: Correct. Chair Gort: Okay. All right. Commissioner Sarnoff.. And ironically, this Commission historically has budgeted 1,144 cops -- the day you guys walked in here, it was 1,144 cops. We have never even hit the budgeted number. Commissioner Carollo: By the way, Commissioner Sarnoff, that was part of my argument when Commissioner Sarnoff.. I know. Commissioner Carollo: -- you wanted to budget it for more, andl was saying, "Listen, we've never hit the number. We're budgeting for more. In essence, we're going to have a surplus at the end of the year, because they're not going to reach that number." Chair Gort: Process takes a year. Commissioner Sarnoff.. Sorry? Chair Gort: The process takes a year to hire an officer. Commissioner Sarnoff.. I hope you're wrong, Commissioner, 'cause we've been at this for three years. Chair Gort: Thankyou. Any other questions? Thankyou. DISCUSSION ITEM DISCUSSION REGARDING FLORIDA POWER & LIGHT (FPL) EASEMENTS. 14-00438 Cover Page.pdf 14-00438 Back -Up From Law Dept.pdf NO ACTION TAKEN DISCUSSION ITEM DISCUSSION REGARDING THE CREATION OF A CHARTER REVIEW COMMITTEE. 14-00492 E-Mail - Discussion Item.pdf DISCUSSED Commissioner Carollo: I think we're back to RE.9, 10, 11, and 12. I think. Chair Gort: RE 12, 9, 10, 11. Commissioner Suarez: Just for -- I have to leave at 6:15, so just want to let you know that. Commissioner Carollo: Yeah. I'm seeing everyone coming back, so I would hope we could take up RE.9, 10, 11, and 12, which is -- City ofMiami Page 133 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Commissioner Suarez: I hope so. Commissioner Carollo: I'm shortly behind you. Commissioner Suarez: Did we do the PZ (Planning & Zoning)? Did we do that PZ? Commissioner Carollo: Yeah, we did the PZ. Commissioner Sarnoff. Well, there's a pending motion for continuance, right? Commissioner Carollo: Yes. Chair Gort: That's where we're at at this time, unless the maker of the motion takes that motion out and then -- Commissioner Carollo: Right. Could you give us an update, Mr. Torre, where we are at? Mr. Torre: Yes. Commissioners, good afternoon. Henry Torre, director of Public Facilities. We have come up with an agreement. I think the Commissioner will be out in a few minutes to let us know. Commissioner Carollo: Should we take a five-minute break or -- Oh, there he is. Mayor Tomas Regalado: Chairman, if I may, and now that you're here -- Chair Gort: Go ahead. Mayor Regalado: Oh. Chair Gort: You're recognized, Mr. Mayor. Mayor Regalado: Okay. I had to place a discussion item in today's agenda about a Charter Review Committee, and don't expect any discussions or any action, but I just wanted to remind you guys that the last Charter Review Committee that we had was in May of 2003, and it had a provision of sunset for a year. And then in 2011, a motion or resolution was presented, but it was deferred -- Commissioner Carollo: Indefinitely. Mayor Regalado: -- indefinitely. And, you know, we all heard the discussion this morning. By the way, I just signed the resolution, so they can have it. The City Clerk was really on time. And so tomorrow is the deadline for this item. I just want to tell you that I really believe, as you all do, that we do need, like every 10 years, somehow, some Charter review. Andl remember the last time in 2003, the three items went to the ballot, and the three items passed in terms of Charter reform, and that we have opportunities -- not on August, of course, not in November, of course -- but we do have elections in November 2015 in some districts of the City ofMiami, or we could use the presidential primary ofMarch of 2016, which -- at no cost to the City. Just to remind the Commission, in 2003 the way that the Commission crafted this -- andl was here -- it was seven members, one -- the Chairman of the City Commission would -- was designated by resolution the Chair of this committee, and then each Commissioner appointed someone who had to be a City resident and elector in the City ofMiami, and the Mayor appointed two. The proposal brought in 2011, I think it's more flexible, because it gives five Commissioners the possibility of being in the committee, if they want to, and appoint somebody else; that the Mayor can appoint a person and himself. It will be a total of 12 members. Andl would just suggest, if City ofMiami Page 134 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 this is your desire, to add a new member for the Manager to have a person or the Manager itself, because I think it's important, but -- you know, the sunset in 2000 and 2003 was one year, and so it's still plenty of time to consider, but I just wanted you to just keep it on your mind in the future days so we can more discuss amongst you and the Administration the way that the committee will function. Commissioner Carollo: Mr. Chairman. Chair Gort: Yes, sir. Commissioner Carollo: I just want to verin, for my colleagues, no one is looking at doing this for this year's November election, correct? Mayor Regalado: No, of course. Chair Gort: No. Mayor Regalado: No. There's no type -- Commissioner Carollo: It'll be for next year's November election. Mayor Regalado: No. Commissioner Carollo: So there's time to discuss and -- Commissioner Suarez: Yeah. Commissioner Carollo: -- be able to -- Commissioner Suarez: I -- look, I think any sort of Charter -- I've never been a huge committee person, personally. Commissioner Carollo: I hear you. Commissioner Suarez: But I do think -- and I -- and here's where I agree with the Mayor. I do think we need to -- I don't like being rushed either, particularly not for a Charter. And it's good to have outside input from people who are attorneys or who are -- you know, have a legal expertise. You know, as you know, I've advanced Charter amendments, you know. I wanted to do it in a way that was transparent, that gave the Commissioners -- 'cause it was a significant one and it takes -- you know, it had a lot of minor components to it that can get lost in the shuffle. So, you know, I'm open to it, Mayor. I'm open to it. And, you know, I think, if our Commission wants to do that, then, you know, I would like -- I would love to do it. Mayor Regalado: Right. And just to think, just for your planning in terms of discussion and -- we have in August of '15, a County election, I believe. Let's see. But the most important, I think, because November of '15 in the City ofMiami, it's only district, so it -- we will incur in expenses. So I will suggest to you to consider the presidential primary of early 2016 where you have a lot of people going out to vote, or the 2016 general election, and you have plenty of time to look at the Charter review, and you can even extend the committee in case that the Commission feels that they need to do more work. So no action. Commissioner Carollo: Thank you, Mr. Mayor. Chair Gort: Thank you. Andl think we'll bring it up and give some suggestions. One suggestion I'd like to give is the Labor Relation Committee that we have to make sure that you City ofMiami Page 135 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 DI.4 14-00436 Department of Planning and Zoning address that with the directors of the departments and the unions and so on to try to come up with some ideas, some other changes that will be necessary, okay? Daniell Alfonso (City Manager): Yes, Commissioner. And what -- in light of this recommendation, what we will be doing, we will be withdrawing that item that we had that was coming -- about changing -- Chair Gort: Right. Mr. Alfonso: -- so we're not going to be changing from the Administration right now any of the Civil Service rules. We're just going to go with the process. Chair Gort: Right. Thank you. Later... Vice Chair Hardemon: Mr. Chairman, may I? Chair Gort: Yes, sir. Vice Chair Hardemon: RE (Resolution) -- Mayor Regalado: Mr. Chairman -- Vice Chair Hardemon: One moment. RE -- Mayor Regalado: -- just for the information, the City Clerk will be drafting officially this resolution, andl will sign it so they can take it to the Elections Department tomorrow. Vice Chair Hardemon: Okay. Mayor Regalado: So we will wait for the City Clerk. DISCUSSION ITEM DISCUSSION REGARDING THE PROPOSED ALCOHOL ORDINANCE. 14-00436 Summary Form.pdf 14-00436 Proposed Draft Ord..pdf NO ACTION TAKEN Chair Gort: Go ahead. Commissioner Sarnoff.. You were there. Francisco Garcia (Director, Planning & Zoning): Yes. Commissioner Sarnoff.. You were there. Chair Gort: You were fast. Go ahead. Mr. Garcia: Commissioners, just to bring to your attention -- and again, it is -- if it is your pleasure to consider a couple of remaining discussion items, in particular, DI.4, which is before you, the draft alcoholic beverage ordinance. City ofMiami Page 136 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Commissioner Carollo: I -- when we were here, Commissioner Sarnoff mentioned that -- andl think he wanted to be present -- there was no sense, you know, with just three Commissioners, and I think that's what you have again. Mr. Garcia: Fair enough. Commissioner Carollo: So I think it's going to be deferred. Mr. Garcia: I appreciate it. And let me just say then that it has been submitted as a draft to you for your consideration, and we stand by to receive any feedback from you. Thank you, sir. Commissioner Carollo: We got motion to adjourn. Chair Gort: Thankyou. Y'all have a good one. Go Heat. END OF DISCUSSION ITEMS PART B: PLANNING AND ZONING ITEM(S) Daniell Alfonso (City Manager): There is a PZ (Planning & Zoning) item. I don't know if you want to take that one. Commissioner Sarnoff. Yeah, let's do that. Commissioner Carollo: Let's do the PZ. Todd B. Hannon (City Clerk): Excuse me. Commissioners, before you begin, the City Attorney does have a statement he needs to read into the record, then I need to administer the oath. Barnaby Min (Zoning Administrator): Thankyou, Mr. Clerk. We will now begin the Planning & Zoning items. PZ items shall proceed according to Section 7.1.4, the Miami 21 Zoning Code. Before any PZ item is heard, all those wishing to speak will be sworn in by the City Clerk. Please note, Commissioners have generally been briefed by City staff and the City Attorney on items on today's agenda. The members of the City Commission shall disclose any ex parte communications to remove the presumption of prejudice pursuant to Florida Statute Section 286.0115 and Section 7.1.4.5 of the Miami 21 Zoning Code. Staff will briefly present each item to be heard. The appellant or petitioner will then present their application or request to the City Commission, if the applicant agrees with the staff recommendation and no one from the audience wishes to speak for or against the item. They may also waive the right to an evidentiary hearing. The order of presentation shall be as described in the City Code, in the Miami 21 Code. Members of the public will be permitted to speak through the Chair for not more than two minutes, unless modified by the Chair. The City ofMiami requires that anyone requesting action by the City Commission must disclose before the hearing anything provided to anyone for agreement to support or withhold objection to the requested action, pursuant to City Section 2-8. Any documents offered to the City Commissioners that have not been provided seven days before the meeting as part of the agenda materials will be entered into the record by the City -- at the City Commission's discretion. Thankyou. Mr. Hannon: Good evening, ladies and gentlemen. Anyone speaking on tonight's Planning and Zoning item, may I please have you stand and raise your right hand? The City Clerk administered the oath required under City Code Section 62-1 to those persons giving testimony on zoning issues. Mr. Hannon: Thankyou, Commissioners. City ofMiami Page 137 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 PZ.1 RESOLUTION 13-01416mu A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING WITH CONDITIONS, A MAJOR USE SPECIAL PERMIT PURSUANT TO ARTICLE 2, SECTION 2.2.1.1 AND APPENDIX C, SECTION 627.1.3.2 OF THE MIAMI 21 CODE, AS AMENDED, FOR THE HYDE MIDTOWN PROJECT, TO BE LOCATED AT APPROXIMATELY 3401 NORTHEAST 1ST AVENUE, MIAMI, FLORIDA, TO CONSTRUCT AN APPROXIMATE 347-FOOT, 32-STORY HIGH MIXED -USE STRUCTURE, TO BE COMPRISED OF APPROXIMATELY 400 TOTAL MULTIFAMILY RESIDENTIAL UNITS WITH RECREATIONAL AMENITIES, APPROXIMATELY 80 LODGING UNITS, APPROXIMATELY 21,745 SQUARE FEET OF RETAIL SPACE, AND APPROXIMATELY 526 TOTAL PARKING SPACES; PROVIDING FOR CERTAIN FLOOR AREA RATIO BONUSES; MAKING FINDINGS OF FACT AND STATING CONCLUSIONS OF LAW; PROVIDING FOR BINDING EFFECT; CONTAINING A SEVERABILITY CLAUSE AND PROVIDING FOR AN EFFECTIVE DATE. 13-01416mu PZAB 06-04-14 Supporting Documents.pdf 13-01416mu Fact Sheet.pdf 13-01416mu Analysis, Maps and PZAB Reso.pdf 13-01416mu Legislation (Version 7).pdf 13-01416mu Application and Supporting Documentation.pdf LOCATION: Approximately 3401 NE 1st Avenue [Commissioner Marc David Sarnoff District 2] APPLICANT(S): Iris Escarra, Esquire, on behalf of PRH Midtown 3 LLC FINDING(S): PLANNING AND ZONING DEPARTMENT: Recommended approval with conditions*. PLANNING, ZONING AND APPEALS BOARD: Recommended approval with conditions* to City Commission on February 19, 2014 by a vote of 11-0. *See supporting documentation. PURPOSE: This will allow the development of the Hyde Midtown project. Motion by Commissioner Sarnoff, seconded by Commissioner Carollo, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 3 - Commissioner(s) Gort, Sarnoff and Carollo Absent: 2 - Commissioner(s) Suarez and Hardemon R-14-0226 Chair Gort: Yes, sir. Francisco Garcia (Director, Planning & Zoning): Thank you, Mr. Chair, Commissioners. Francis Garcia, Planning & Zoning director. Item PZ.1 is before you as a resolution. It is a resolution to approve the development of a mixed -use building in the Midtown area. It is located at approximately 3401 Northeast 1 stAvenue. Andl know the applicants have a presentation they'd like to make. I will certainly stand by to answer any questions. I'd like to also put into the City ofMiami Page 138 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 record that the Planning & Zoning Department is recommending approval with conditions, as did the Planning, Zoning & Appeals Board recommend to you approval with conditions in their unanimous vote, 11-0. The conditions are in the -- on the record. I'm happy to address any items you may have. Commissioner Sarnoff. So move. Commissioner Carollo: Second. Vice Chair Gort: It's been moved by Commissioner Sarnoff been seconded by Commissioner Carollo. It is a public meetings. Anyone like to come forward? Seeing none, showing none, public hearing is closed. Any further discussion? All in favor, state it by saying aye." The Commission (Collectively): Aye. Lucia Dougherty: Thank you. Chair Gort: Good presentation. Ms. Dougherty: Thanks very much. Best presentation ever. Commissioner Sarnoff. Do you get paid the same? END OF PLANNING AND ZONING ITEM(S) MAYOR AND COMMISSIONERS' ITEMS CITYWIDE HONORABLE MAYOR TOMAS REGALADO END OF CITYWIDE ITEMS DISTRICT 1 CHAIR WIFREDO (WILLY) GORT END OF DISTRICT 1 DISTRICT 2 COMMISSIONER MARC DAVID SARNOFF END OF DISTRICT 2 DISTRICT 3 COMMISSIONER FRANK CAROLLO END OF DISTRICT 3 DISTRICT 4 COMMISSIONER FRANCIS SUAREZ City ofMiami Page 139 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 D4.1 14-00277 D4.2 14-00426 DISCUSSION ITEM DISCUSSION REGARDING SELECTION OF NEXT POLICE CHIEF. 14-00277 E-mail - Discussion Item.pdf NO ACTION TAKEN Chair Gort: Yes, sir. Commissioner Suarez: Thank you, Mr. Chair. I have -- I'll try to be quick. First, I have three discussion items. One of them is -- I've had rolled over many times. I don't mind rolling it over to the next Commission meeting, but I would just ask that it be at a time certain, which is 4.1, the selection of the new Police Chief. Commissioner Carollo: Your call. Chair Gort: (UNINTELLIGIBLE). Commissioner Carollo: I think -- we could -- I'll hear it now if -- I'll stay and I'll hear it now. Commissioner Suarez: No, I -- Commissioner Carollo: It's your call. Commissioner Suarez: -- don't mind rolling it over, at all. It's just -- Commissioner Carollo: It's your call. Commissioner Suarez: Just if we can roll over to a time certain in the next meeting, discussion of the next Police Chief 4.1. DISCUSSION ITEM DISCUSSION REGARDING PARK FEES. 14-00426 E-Mail - Discussion Item.pdf DISCUSSED Commissioner Suarez: The other two are park fees and then trolley service. The park fee is really simple. I mean, I don't know if you guys have been getting them; I've been getting the calls for months on why are we charging -- it seems like we're nickel and diming our residents to death on park fees, and don't get it. I mean, the parks are a service. We have -- as we've all noticed and discussed here today on a multitude of occasions, we are not a wealthy city, and most of our districts are not full of wealthy people. And the parks -- the services that we provide at parks, in many cases, our residents wouldn't be able to afford in any other context. They wouldn't be able to go to pools. They don't have pools. They wouldn't be able to play tennis. They wouldn't be able to play golf, you know, things that we do for the needy in our community, and l just don't get it. I can't imagine that the revenue that we generate from the park fees is sufficient to warrant, you know, the kind of grief that it causes our residents. I've, you know -- Chair Gort: My understanding, the calls that receive, the e-mails (electronic) that receive, people were complaining; people don't live within the City ofMiami, that they had to pay the fee. City ofMiami Page 140 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Now my understanding is, the Parks Department has the recognition that those individuals that cannot pay the fee, they can waive the fee and they can do that. My understanding, there's a program, andl will let the Parks Department answer that. Now, Coral Gables, any other city, if you don't live in the city, they'll charge you. Commissioner Suarez: Right. Chair Gort: If you're not a City resident. But my understanding is, we have a program to help those people that cannot financial -- pay for it. Stanley Motley (Director/Parks & Recreation): At the current time we have about -- good example is we have about -- Chair Gort: Excuse me; you are? Mr. Motley: I'm sorry. I'm Stan Motley, director of Parks and Recreation. At the current time, we have about 2,500 children registered in our summer program. The majority of those are on a reduced program, as far as scholarships. And we work very close with many partners in the community, the Optimist, the PALs (Police Athletic League), with football and baseball, and all of them have a good scholarship program. So we are very concerned. And the last thing we ever want to do is to eliminate anybody from our programs. Commissioner Suarez: And let me tell you that the scholarship program was created, in part, because of complaints that we received, and we brought it to -- I think you were the budget director when we started that. Daniell Alfonso (City Manager): Well, I think that that was started long before, but -- The scholarship program? Commissioner Suarez: No. Mr. Alfonso: Two thousand ten, so that was before I got here. Commissioner Suarez: That's what I'm saying. We started it, because I remember bringing this when Mr. Pascual was the director. I remember when we first instituted these fees, the wave of complaints was like overwhelming, and then we created the scholarship program, but -- you know, and -- I just continually getting them. I mean, I think they're from City residents. If they're not from City residents, you know, I ask -- I'll make sure that I ask, but I think they are from City residents that are complaining about the park fees. You know, I just think we should do an analysis of it and we should -- go ahead. Mr. Alfonso: Yeah. I was going to say, Commissioner, perhaps, as we prepare to finalize the next year's budget, we'll take a look at how much revenue it is total that we're talking about. Commissioner Suarez: Exactly. Mr. Alfonso: And if there's a possibility to provide that service at no charge, we'll bring it to the Commission for -- you do understand why that was done in 2010. Commissioner Suarez: I don't agree with it. I didn't even agree with it in 2010, to be honest with you. I don't. 'Cause I think there are some things -- and parks for me is one of them that -- you know, it just -- to me, it doesn't make sense. Mr. Alfonso: We'll take a look at it, Commissioner. City ofMiami Page 141 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Commissioner Suarez: My second discussion item, very quickly, has to do with the potential expansion of -- Chair Gort: Before you go into something else, my understanding is, I had individual coming to me, they were interested in sponsor programs on name righting in our Parks Department. IfI recall, in 2011, Pascual wrote the different levels of sponsorship that could be done in the Parks Department. If we can get that done again, I think it be important, that document -- I'll try to look for it, but I know I received it. It should be somewhere in the Parks Department's office. If not, we need to create -- there's people that willing to sponsor programs, to sponsor -- so if you can come back with a program, that will be very helpful too. And this began with the swimming program. Mr. Motley: We can do that. Commissioner Suarez: No, no. D4.3 DISCUSSION ITEM 14-00473 DISCUSSION REGARDING THE EXPANSION OF TROLLEY SERVICE TO SW 8TH STREET. 14-00473 E-Mail - Discussion Item.pdf DISCUSSED Chair Gort: I'm sorry. Your next item. Commissioner Suarez: Yes. My next item, it has to do with potential trolley expansion. And, you know, Commissioner andl don't have a chance to talk about these things, so, you know, this is the only opportunity that we have about the possibility of having a Coral Way trolley which goes up and down Coral Way, the western bound lane, potentially cross to 8th Street and come down the eastern bound on 37th Avenue, which is part of my district, 37th Avenue to 27th and the 27th to 17th or -- I mean, it starts on Brickell actually in Coral Way, so my -- crosses back into your district. Potentially for it to come down either 12th Avenue or Brickell or whatever and do like a big loop. I know that you said that that would require potentially adding trolleys. So just something to look at, because I think -- you know, it's hard to do east/west on 8th Street, because the western street is the backside. So it might just make sense to do a loop so people who are on the street can at least get down the corridor. I know it's been super successful in Coral Way. And, you know, it just kind of what we did with the Marlins stadium, where we had one of our -- you know, one of our trolley systems kind of shoot out the health district going to the, you know -- and you don't have a continuous line in your district, so just something to think about. Maybe you can provide us with that. I don't know if FDOT (Florida Department of Transportation) would be willing to potentially give us more grants for trolleys, but something definitely worth exploring. Chair Gort: Well, while you're thinking about it, also look at the Northwest 17th Avenue, which is 20th Street/Allapattah. We are working on creating the little Santa Domingo in there, that area, and that can connect with -- The good thing about this trolley is, a lot people don't realize, we're able to connect our neighborhoods with downtown, Biscayne, and it's working. It's becoming very efficient. And as I understand, the problem with the increase in public transportation is we have to create the demand before the County thinks of putting more buses or putting additional public transportation. So in the meantime, we got to take care of our residents. Thank you. Anything else? Do I have a meeting [sic] to adjourn? Commissioner Carollo: Motion to -- City ofMiami Page 142 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 NA.1 14-00551 (NA.1) 14-00551a City Commission Chair Gort: Wait a minute. Hold it, hold it, hold it, hold it. Yes, sir. Not yet, not yet. END OF DISTRICT 4 DISTRICT 5 VICE CHAIR KEON HARDEMON END OF DISTRICT 5 NON AGENDA ITEM(S) DISCUSSION ITEM DISCUSSION BY COMMISSIONER CAROLLO REGARDING THE PROCESS USED BY THE ADMINISTRATION FOR NEGOTIATIONS AND POLICY MAKING DECISIONS INVOLVING PROJECTS WITHIN THE CITY OF MIAMI. DISCUSSED RESOLUTION A RESOLUTION OF THE MIAMI CITY COMMISSION FINDING THAT THE CITY OF MIAMI IS A WORLD -CLASS CITY AND SUPPORTS MAJOR LEAGUE SOCCER COMING TO THE CITY OF MIAMI; FINDING THAT DAVID BECKHAM AND MIAMI BECKHAM UNITED, LLC SHOULD SPEARHEAD THE EFFORTS OF BRINGING MAJOR LEAGUE SOCCER TO THE CITY OF MIAMI; DIRECTING THE CITY CLERK TO TRANSMITA COPY OF THIS RESOLUTION AS STATED HEREIN. Motion by Commissioner Carollo, seconded by Commissioner Sarnoff, that this matter be ADOPTED PASSED by the following vote. Votes: Ayes: 5 - Commissioner(s) Gort, Sarnoff, Carollo, Suarez and Hardemon R-14-0232 Commissioner Carollo: Mr. Chairman? Chair Gort: Yes, sir. Commissioner Carollo: I respectfully request a point of privilege. Chair Gort: Yes, sir. Commissioner Carollo: Thank you. I wanted to address an issue that happened recently, andl think we should have a -- doesn't have to be a long conversation on it, but I think we should have a conversation on it, and it's regarding the process that we have here in the City ofMiami. About two or three weeks ago, there was a site for a possible stadium for soccer that was lauded in the media. Andl don't want to quote anybody or put words into anybody's mouth, but it was even mentioned that the support of the Commission will probably be there or was there, andl could tell you that I was not contacted; I don't know if my colleagues were. Now at the same time -- and listen, I understand we live in a political world, and I've been a student of it long City ofMiami Page 143 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 enough to see how, sometimes, a certain person could cause a ruckus or a problem, and then come back and fix it. I'm not saying that's what occurred, but at the same time, I thinkl need to remind my colleagues, andl will have to -- andl would like to have a frank discussion with my colleagues, because I believe that policymakers in the City ofMiami is the City Commission. And just like two or three weeks ago, I wasn't crazy about anyone speaking for myself and my colleagues without us being able to have a discussion about it, most recently, the site that was lauded two or three weeks ago was once again made a decision, and the Beckham Group was told that it was off the table with once again not going to the policy -making body -- at least wasn't consulted, andl recently read in the paper that another one of my colleagues weren't consulted. And this isn't about the site. This is about the process. And if we're actually going to be transparent, if we're going to be and act professional, I think that we need to have a good dialogue with regards to the process that is being taken, because, like I said, two or three weeks ago, something was -- I'll go as far as saying "was offered," and as far as a couple of days ago, something was taken away. Andl don't remember having any type of discussion or dialogue with my colleagues, which is the policy -making body of the City ofMiami. I have a big problem with that. And again, this isn't about the location, because although I haven't said it publicly, I was not crazy about that location. However, I always come to the City ofMiami and to this dais with an open mind to listen to my colleagues before we make a decision, before I make a decision. That was never offered. And in all fairness, at least in the professional world, there's a way of saying "no," and there's other ways of saying "no." And especially when I don't even know if that offer should have been offered in the first place, at least without -- not -- without speaking to this body. So I want to make sure that have this open dialogue with the Administration, with the Mayor, with my colleagues to make sure that moving forward, this process is transparent and in a way that we follow the Charter, we follow the rules of the City of Miami, and we make it in a professional manner so we all have input and we make our decisions the way we're supposed to make our decisions. With that said, Mr. Manager, I know when you first was going to be involved with the negotiations with the Beckham group, you came to me and we discussed it. And as a matter offact, you andl, as in the past, were pretty much in the same financial page, you know. We discussed it; we clearly stated that we were not going to be giving the property away. And even when you said -- when you called me, you told me, "Hey, discussions have stalled" you didn't see any problem with me. I mean I -- I backed you 100 percent, especially with the amount that they stated. But then, unbeknownst to me, there is another follow-up meeting, and pretty much they have been told that it's off the table. That's what was related to me. And Mr. Manager, would you like to address that? Daniell Alfonso (City Manager): Commissioners, I would not characterize the discussions that took place between the folks from the soccer team and the City as a negotiation. They were very high-level discussions. There were never any documents exchanged. There were no formal offers made of any kind. So the discussions were always very conceptual, so that there weren't really any negotiations, per se. And you are right; I spoke to you as well as I spoke to some of the other elected officials, andl told them, "We're having a discussion where some concepts were exchanged" And in your case in particular, we agreed or you andl were both on the same page, as you stated, that it was a financial situation that didn't seem to make sense. The meeting that we had with the Commission -- I'm sorry -- with Beckham major league soccer folks earlier this week was a discussion that centered across a number of factors that would impact a decision. You know, there were factors related to environmental issues with the site. There were factors related to the investment that the City had made through bond issuances that would have to be repaid. There were factors of how to evaluate the property in terms of its value. And again, no negotiation took place. I think we came to the understanding that given all those factors and the fact that there was some community opposition, this was not the right site. I wouldn't characterize it as saying the Administration said, "This is absolutely off the table." As a matter offact, if they walked in here with a $500 million check, I think would consider selling the site. But that's just me personally. So it wasn't a negotiation. It was a discussion, cordial, where we explained some of the concerns that we had, and in the end, it was a mutual agreement that it seemed like this was not the appropriate site. City ofMiami Page 144 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Commissioner Carollo: So what you're saying, that it's been reported inaccurate that the City of Miami told the Beckham Group that this was off the table. It was actually a mutual agreement, and they agreed that, yes, this shouldn't be or --? Mr. Alfonso: I would characterize it as we both had a good, cordial conversation as to the issues that were in the way of this negotiation going forward, because we were just talking at this point, and it was a mutual agreement that this site was not appropriate, and therefore, it came off the table. Commissioner Carollo: Thank you, Mr. Manager. And it goes back to then what I was saying. You know, before there's all this hoopla, and this is the site that it's going to be, and we'll have the backing of the Commissioners, I think that there needs to be due diligence, you know, because, realistically, the policy -making body had no say in the beginning, had no say at the end, other than you andl discussed and we agreeing we are not going to give that property away, we are not going to get ripped off. Other than that -- and we talk about financial -- you know -- Mr. Alfonso: Commissioner, when you say "hoopla," I don't think that the City Administration created any hoopla. I think that the folks from major league soccer went out and had press conferences talking about what their ideas were. As a matter of fact, when they did the press conference, the City Administration, nor the Mayor or any elected official, to my knowledge, was invited to that press conference. So, I mean, that was at the Intercontinental Hotel where -- Yes, they had talked to us about, "This is what we're thinking" and we thought the concept could be studied; seems to possibly work. But we still have a lot of work to do in terms of determining all the possible obstacles, but it could be possibly feasible. And then there was a press conference, not by the City ofMiami or its Administration, but by the representatives of major league soccer. Chair Gort: My understanding, everybody was talking about this property without talking to the owners of the property -- Commissioner Suarez: Exactly. Chair Gort: -- way before they came to us. Commissioner Suarez: Exactly. Chair Gort: They were talking and they were discussing how they were going to use it, and then they didn't even come and talk to us or the district Commissioner of the Bayfront Park. You're recognized. Commissioner Suarez: Thank you, Mr. Chair. Thank you, Commissioner. Look, I feel like I had the identical experience that Commissioner Carollo had. No one called me to tell me, for example, "We're going to begin discussions with the team." I was never -- I never received that call. No one called me to say, "We're going to discontinue discussions with the team." I did get one call related to the discrepancy in the lease in terms of what the proposed lease payments would be. I think what I was told was that it was -- the City was asking for $15 million, and the team had offered half a million or something to that effect. Other than that, never got a phone call. So -- you know, andl think there was a lot of issues. I agree with Commissioner Carollo. I mean I got call -- I did get calls -- I'll tell you what, I did get calls from -- I got calls from residents of the area. I got calls from property owners in the vicinity who were, you know, obviously, very, very concerned that some of the more pressing issues with regard to their concerns were not being taken into account, like traffic and parking, et cetera. I never had any sort of -- no one ever from the Administration, the Mayor or anyone talked to me about, you know, how that was going to be dealt with or whether it could be dealt with. So I think the City ofMiami Page 145 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 problem is -- andl think it -- you know, we've talked about it in other contexts, and the other context that recall us having extended conversations on on this was in the procurement context. When we're going to go to a big procurement where it's almost a public policy decision, and we're going to lease -- you know, in the case of -- and, you know, we had one RFP (Request for Proposals) that totally fell through and wasted a year of time because the policy -making body wasn't consulted on the front end. We went through the whole process, and it died, and we had to start over again, and when we started over, the policy -making body was consulted, and our -- you know, our perspective and our concerns were incorporated into the process, and then it was a much smoother process. So I think the Commissioner's concern is well founded that if this Board is the board that ultimately makes the decision, we are the ultimate decision -maker as to whether or not we are going to decide to put something like that in that area, then the idea of commencing that discussion or concluding that discussion should come before this Board; whether it be -- I think the preference would be in a public setting -- whether it be by special meeting, you know, whatever the case may be, which we obviously have a right to call with a reasonable amount of notice and, you know -- and certainly, you know, at the very minimum, getting a phone call saying, "Hey, you know, we're thinking of doing this. What do you think?" I mean, it's disappointing that that didn't happen, andl don't think it's a good way of doing business, 'cause I think ultimately, it's going to come back to us. And the day will come -- whether it's the first day, the middle day or the last day -- the day will come that it comes back to us, and then it could make for a lot of uncomfortable and unprofessional, as the Commissioner said, situations. I don't know how anyone could conclude that the Commission was going to be cooperative on something, because I wasn't consulted, so my level of cooperation was never consulted, so, I mean, that's really, you know, all have to say on the matter. I think -- or I hope we learn from this, andl hope that we make adjustments, and matters of this magnitude are not handled in this fashion going forward. Chair Gort: Yes, sir; you're recognized. Commissioner Sarnoff. You know, I guess I was -- I thinkl was involved as the district Commissioner, just like Commissioner Carollo, significantly involved with the Marlins Stadium; actually got written into the agreement as being the district Commissioner that would be involved in the Marlins Stadium. You know, for me, as a -- I was asked to be one of the proponents of this issue. I did attend a meeting with the Mayor. I did attend a meeting with Mr. Alfonso, our City Manager. Mr. Alfonso viewed things very differently than I did; perhaps as differently than the Mayor did. He was looking for a financial return, andl was looking at a threshold issue: Is this the right place to put a soccer stadium on that facility? What I did do, Commissioner Carollo, was work with the architect to see the best possible stadium that could be put there in terms of the most discrete stadium that could be put there to see whether I could support this. When they gave me or provided to the Mayor and myself the actual views, if you will -- we didn't actually see the stadium, but we saw what the views would be -- it wasn't satisfactory to me. I'm not going to speak for the Mayor, but I'm pretty confident it wasn't satisfactory to the Mayor, andl think Mr. Alfonso made a couple of statements that were -- it would be okay with him. Let me leave it at that. But he was looking for the financial terms. To be candid with you, they could have offered us the $15 million andl still wasn't going to be supportive of a soccer stadium at that venue. Andl think what we have to recollect a little bit, sometimes, how this got thrust upon us is worth a conversation, at least in part, Mr. Chair, for two minutes. This was supposed to be at -- or this was proposed to be at the Port ofMiami on the southwest corner. We all know RCL (Royal Caribbean Lines) and the Beach got together and opposed it for whatever reasons they deemed appropriate. There was never a debate; there was never a debate whether that was a good site or a bad site. In the words of Michael Putney, "When are we going to talk about the facts?" And then I didn't want this to happen to us. I didn't want us to do this, at least. I didn't want it to look like the County Commission and put an un-agendaed [sic] item on the City Commission, and then turn around and take a vote that would, I think, foreclose soccer. Now, if soccer -- andl do hope they stay, andl think they will stay, and I think they'll take other looks. Commissioner Carollo, I think they're going to take a City ofMiami Page 146 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 very hard look at something in your district, andl absolutely think you should be the person who should be well versed on whatever it is that they might propose. Andl think, in a practical sense, that is how this process does work. And then this juridic body can be contacted earlier, it could be contacted -- however the strategy plays out -- and an informed decision is made by the Commission. So, you know, I want to at least say how the process played out. There was never going to be a soccer stadium that was going to satisfy me at the FEC (Florida East Coast) corridor; the terms and condition of that were not something that on a threshold issue were going to help me support that. I couldn't make that decision, though, until actually saw some diagrams -- it's ones you saw in the Herald -- what that would look like, the views that that would create. You know, Parcel "B, " I shouldn't say this on the record, but I consider that fool's gold. The reason I say it's fool's gold is I don't think any -- I think -- and I'll go on the record today. I don't think Parcel "B" will be a natural park the way we think of a natural park, andl think to turn around and go after that four, five or six acres -- I don't remember what it was -- it's never really going to be a park like you andl think of a park. It may get greener, it may -- but it's not really going to be a park. So having said that, I was really going to say nothing, but I think as a threshold issue, I just want you to know, Commissioner Carollo, I was asked to do something, andl wanted to tell them directly, andl don't think was in the media a whole lot; got to sort of acknowledge that. I wanted to be -- I always get myself in trouble when I come up with these old sayings -- I was going to say, I wanted to be a man and go to a man and say, `7 can't do what you asked me to do." I wanted to tell them directly. So that's how it played out. I got sick in the middle of it. I didn't attend every meeting. I know the Mayor, I think, probably attended every meeting, andl don't want to speak for the Mayor. But I expected to -- I expect that there'll be a strategy that will play out that the District 3 Commissioner is going to have to play a significant role. Commissioner Carollo: Mr. Chairman. Chair Gort: Yes, sir. Commissioner Carollo: Thank you. Let me start off by saying that I'm probably the hybrid. I was looking at the finances, and that's what spoke to Danny about, but at the same time -- andl think I've already shown enough -- I do believe about green space, and walling off Biscayne Boulevard was not something thatl was excited about; let's just put it that way. So I was actually being as reasonable as possible and as open as possible, but at the same time, I wasn't looking just at one or the other. I was actually being a hybrid and looking at both. With regards to what you said Michael Putney said, yeah, I was waiting for that, "When are we going to talk about the facts?" As a matter of fact, ifI don't respectfully request for this point of privilege, I don't know what you're thinking, you know, other than maybe reading something in the paper or some news channel, but we don't know what each other is thinking, so this is healthy. And you will admit that in business negotiations, there's a way of doing things, and there's a way not to do things, because it gives off the wrong feeling or the wrong impression. For instance, something to the effect of Beckham gets, you know, shut down twice by the City ofMiami. You know, it shouldn't be that way. It should be two sites that we were looking upon are not working; we're looking at another site. You know, it should be something more to that degree, andl don't believe it should be, you know, someone -- some foreigners are coming here. They want to steal our waterfront land and blah, blah, blah. It shouldn't be like that, because I think the one consensus that we could reach up here -- andl know I have publicly stated it many times -- Miami is a world -class city, and major league soccer should be here. However -- Applause. Chair Gort: Wait a minute, wait a minute. Hold it, hold it. Excuse me. Commissioner Carollo: -- the way we go about our negotiations, our process, our transparency really could turn someone off you know? So that's why I'm bringing it up to all my colleagues, City ofMiami Page 147 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 so we could discuss it and make sure that whatever negotiations transpire -- which I don't even know where we're at. I don't even know if there's dialogue. I'll be honest with you, Commissioner Sarnoff, one of the hard things that) had to cope with -- and) never have said this -- was that there was very little communications between Marlins Stadium and the Marlins and the City ofMiami, and) had to somehow be a buffer -- remember, we had -- through my tenure, we had to do all that construction. Commissioner Sarnoff. Yeah, I know, and) know you -- Commissioner Carollo: So there was very little communications between the Marlins and the City ofMiami, and) had to place over that buffer, and even to a point that when there was a large issue with the parking of the residents and the Marlins, I had to really stick up for the residents, but at the same time, I always knew that I didn't have the luxury of breaking off communications with them, 'cause ifI broke off communications with them, there'd be no communications, and ultimately, the residents would suffer. So with that said, you know, I don't even know where we are with the communications with the Beckham Group. I don't know if there's talks about other sites or not. I will caution that we pinpoint any one site, because just like -- and Commissioner Sarnoff, we've never had a chance to speak, but just like I know there was issues that may not have been brought up too much, like Parcel "B, " the Heat Group uses Parcel "B. " I don't know if, in all fairness, that could all have been a park, and if -- there may have been issues. So there was -- what I'm saying is that there's additional issues. There's issues with the site that you're speaking about near Marlins Park. I could tell you there might be other sites that have been briefly spoken about. So what I'm saying is I don't want to, once again, have any government group or anyone fall into this specific site; and if it fails, well, you know, strike one, strike two. You know, I think it should be open dialogue, but we, my colleagues, you know, the policy -making body should have a say, and we should be able to discuss it with one another. You know, I don't know if the votes would have been there or not, but the bottom line is that) think we need to be part of the process. Commissioner Sarnoff. And just so you know -- Chair Gort: Wait a minute, wait a minute, let me recognize Commissioner Suarez. Commissioner Suarez: Thank you, Mr. Chair. Look, I think, first of all, it's perfectly appropriate that the district Commissioner is immersed in a negotiation of an item that could tremendously impact their district. I mean, I think that makes all the sense in the world, so that to me doesn't bother me one iota; on the contrary, I think that's exactly the way it should be. The fact of the matter is it takes three bus drivers to drive this bus, so it's -- even though the district Commissioner is the point person, even though that person is immersed in every minutia and every detail, you got to keep the bus drivers informed; otherwise, the bus doesn't keep driving in the correct direction. So I think, you know, there's a difference between being at every single meeting and negotiating every single minor point and keeping the policy -making body, the bus drivers informed, and making sure that they are, in fact, cooperative; making sure that they are -- that their concerns are being included, especially the macro terms so that this thing doesn't get derailed, so that when it comes back to us, all that work that was done, all that time, all that energy that was spent is not spent in vain, and) think that's the key point here. And it didn't happen, and we're here where we are. And hopefully, like I said, we can take it as a learning experience for the next situation or as this process continues. Chair Gort: Commissioner Sarnoff, you're recognized. Commissioner Sarnoff. And Mr. Chair, I'll be brief. Just to sharpen the pencil a little bit, I want to be clear. The terms and conditions of the deal were not something) was -- I don't want to say, "7 wasn't privy to." I was privy to it probably like every other Commissioner -- you know, "We're offering this, we're offering that." It was something that I did not negotiate; I did not City ofMiami Page 148 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 care to negotiate, because that's something that's absolutely coming back to this Commission. What did care about -- andl want Commissioner Suarez to know this -- and maybe you'd say, "Why would you do that?" To me, it was the right thing to do. I wanted to see the best placement of that particular stadium at that site that they could come up with, and what the site lines would look like; again, knowing, Commissioner Carollo -- I think you know it, too -- that what they claim Parcel "B" will be will never be, I don't think, what Parcel "B" will be. So the numbers change. You're going to get net for this, because I don't consider Parcel "B" to be what I think you andl consider a true park. So there was never going to be a net gain of anything, in my humble opinion. Once I looked at that -- I just want to be clear, 'cause I was asked to do something, so I'm sure when Commissioner Suarez is asked to do something or the Chair is asked to do something, I think it's appropriate to go back and say, `I can't do what you want me to do," which is spirit this to this Commission. Now, I want to very -- I want to be very clear. Should this turn out -- andl think it will andl hope it will -- become more of a District 3 site place, I fully expect the District 3 Commissioner, from an aesthetic, from a parking, from a traffic, from a community organization standpoint to be the head of that spear. No doubt, we, as a juridic body, will look at what you have to say -- I think we're very deferential here to that, Commissioner -- and the terms and conditions of the deal, perfectly valid for all of us to say, "good deal, bad deal, could do a little better, " or whatever it is we might say. And l just -- you know, we don't get to talk about this, Commissioner Carollo, andl never got to talk to Commissioner Suarez about it, andl certainly didn't talk to the Chair about this. That's how this evolved, unfolded, andl just want to make sure I'm very clear to you if this becomes a "3" item, I expect you to be in the fore. Commissioner Carollo: Mr. Chairman. Chair Gort: Okay, let me state something. I think it's very important for the soccer fans to hear. When the original -- the baseball stadium study was done, there was a soccer field included in there. The City ofMiami has provided soccer field throughout the City, because we believe the importance of the soccer is needed. I personally believe it's very important to have soccer here. I think it'd be a great tourist attraction; it'll bring a lot of people here, so let's begin from there. What would like to see, Mr. Manager -- one of the problems that have, along with my colleagues, I find out about deals or things within the City ofMiami from outside sources. I need -- I understand your need and your staff needs to -- and for some reason, our -- the communication in the City goes out a lot faster than it comes to us. What would like to see in the future -- andl understand the district Commissioner has to be involved and should be involved, because he's the one that knows his district, he knows his traffic, he knows his people and his residents. Any time -- and I don't think we should be negotiating from up here. I mean, this is something we have discussed before, but any discussion that it takes place, you or your staff should communicate with the Commissioners immediately. Let them know what's going on so they will not be surprised, or if they get a call from someone, or someone from outside comes and make -- "Hey, look, this is what we're doing" -- without getting the information from the Administration. Okay. Commissioner Carollo: Mr. Chairman. Chair Gort: Yes, sir. Commissioner Carollo: Three things andl hope I remember all three. The first one: The way you're speaking, Commissioner Sarnoff, you're implying that, you know, there's going to be a hard look at an area in District 3. I'm sure there will be, but at the same time, I want to leave it open and not just that it's going to just be a hard look at area in District 3. I think there's going to be a hard look in all areas; that's number one. Number two: I view this as -- and if you want to speak about real estate, when a realtor makes an offer for a buyer and the seller says, yea or nay, but counteroffers, the realtor doesn't say, "Okay, we'll take it," or not. The realtor comes back to that buyer and says, "This is where we're at." That did not occur. City ofMiami Page 149 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Commissioner Suarez: That's a great analogy. Commissioner Carollo: That did not occur, okay? The Manager never came to us and say, "Hey, this is where we're at. Do we kill the deal?" That never occurred, and that's where one Commissioner is not sufficient. Andl'll go a step further. Even -- 'cause I don't want to start the practice of them counting numbers. "Oh, we have three Commissioners ready to kill this. Hey, it's off the table." No, no, no, 'cause many times -- andl'll be honest with you -- I come up here with an open mind. I come up here, andl'm willing to listen to my colleagues, and just like my colleagues have convinced me to go one way that originally didn't think would be, I have convinced my colleagues to go a different way than originally they were not going. Andl'll remind everybody, the only time that we used the five-day rule where I couldn't even get a second for a deferral and ultimately, all Commissioners voted in consensus and in harmony which -- with what had said. So I really do come up here with an open mind. So using the analogy of a realtor, the realtor doesn't make the decision; just like the Manager doesn't make the decision. You know, we, as the policymakers, should be making that decision, and what am asking -- and even to the point directing the Manager -- to make sure that before these decisions are made that it does reach the policy -making body, because I'm not so certain -- andl'm saying that because I never expressed how I was going to vote -- that the votes were there or not. And by the way, Commissioner Sarnoff, I say this with all due respect, because in all fairness, I admit, I was the hybrid. I was looking at what you were looking at, andl was also looking at what Danny was looking at. So that is something that I want to make sure that going forward, we are part of the process, and if something is off the table, it is because the policy -making body said it's off the table; not because someone assumed that the policy -making body thought that it was off the table and stated that; that was the second thing. And the last thing want to say is, listen, I didn't write something up and give it to the City Attorney to read or so forth, but I think that we really need to make a statement here, because I don't even know where we are with negotiations or not, but the bottom line is I think we should pass a resolution stipulating that as a world -class city, Miami should have major league soccer. Commissioner Sarnoff Second. Chair Carollo: So I make that motion. Chair Gort: It's been moved and second. Any discussion? Commissioner Carollo: One -- I'd like to add to it, andl'll go a step further. I would like to include thatl believe the Beckham Group or at least David Beckham should be the one spearheading the soccer stadium for the City ofMiami. So that's my motion. Commissioner Sarnoff Seconder accepts. Chair Gort: Discussion. Commissioner Carollo: Now, discussion. Chair Gort: Yes. Commissioner Carollo: I want to be perfectly clear. I want to be perfectly clear. Just because we're making this motion -- andl truly do believe that MLS (major league soccer) should come here to a world -class city like the City ofMiami is becoming -- that does not mean that we're going to give away the land; that does not mean that the City ofMiami's looking to make a bad decision or looking to make a bad deal; however, we are a world -class city, and we should have MLS. City ofMiami Page 150 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 Chair Gort: Thank you. Any further discussion? Being none, all in favor, state it by saying "aye. Commissioner Suarez: Aye. Chair Gort: Now, this resolution, if you will recall, it has to go to the Commission -- to the attorney's office. The attorneys will have to draft it and bring it back to us, okay? Victoria Mendez (City Attorney): Chairman, I can send you a copy and -- if there's a problem, but it doesn't necessarily have to come back. If this is the motion, I can create the resolution coming from it. Chair Gort: Well make sure -- Ms. Mendez: It's a very simple motion. Chair Gort: -- you state the resolution the way it should be and the liability is not for the City, okay? Ms. Mendez: Yes. Thank you, Chairman. Chair Gort: Okeydoke. Commissioner Carollo: Take a vote? Chair Gort: We already did. All in favor, state it by saying "aye." The Commission (Collectively): Aye. NA.2 DISCUSSION ITEM 14-00555 CHAIR GORT REQUESTED THE STATUS OF FLAGSTONES COMPLIANCE WITH A JUNE 2, 2014, DEADLINE FOR THE ACQUISITION OF A CONSTRUCTION PERMIT FOR THE MARINA PORTION OF THE PROJECT. DISCUSSED Chair Gort: I have a gentleman that came in here requesting that the -- he believes that the deadline that were set up for the Watson Island have not been implemented. They're supposed to commence permit of a work request on June 2, and I'd like the Administration to be able to respond -- who's responsible; that June 2 deadline was comply with. Commissioner Suarez: Mr. Chair, I have a couple of discussion items. Chair Gort: Wait a minute. Let me get the answer to this gentleman's here. Alice Bravo (Deputy City Manager/Chief of Infrastructure): All right. Chair Gort: Yes, ma'am. Ms. Bravo: Prior to June 2, Flagstone commenced the environmental mitigation that they have to do for impacts to sea grasses and corals, so they've commenced with that work, which is the first phase of the marina work. Chair Gort: Okay, the chairman's back there; will you talk to him and let him know? City ofMiami Page 151 Printed on 8/14/2014 City Commission Meeting Minutes June 12, 2014 ADJOURNMENT Ms. Bravo: Yes. Chair Gort: Okay, thank you. The meeting adjourned at 6: 04 p.m. City ofMiami Page 152 Printed on 8/14/2014