Loading...
HomeMy WebLinkAboutOMNI CRA 2017-05-25 MinutesCity of Miami 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Meeting Minutes Thursday, May 25, 2017 12:00 PM Commission Chambers 3500 Pan American Drive Miami, FL 33133 OMNI Community Redevelopment Agency Ken Russell, Chair Francis Suarez, Vice Chair Wifredo (Willy) Gort, Board Member, District 1 Frank Carollo, Board Member, District 3 Keon Hardemon, Board Member, District 5 OMNI and MIDTOWN CRA OFFICE ADDRESS: 1401 N. Miami Avenue, 2'd Floor, Miami 33136 Phone: (305) 679-6868 www.miamicra.com OMNI Community Redevelopment Agency Meeting Minutes May 25, 2017 ROLL CALL Present: Chair Russell, Vice Chair Suarez, and Commissioner Gort, Commissioner Carollo and Commissioner Hardemon On the 25th day of May 2017, the Board of Commissioners of the OMNI Community Redevelopment Agency of the City of Miami met in regular session at Miami City Hall located at 3500 Pan American Drive, Miami, Florida. The meeting was called to order by Chair Russell at 2:08 p.m., and was adjourned at 2:33 p.m. ALSO PRESENT: Jason Walker, Executive Director, CRA Isiaa Jones, Chief Legal Officer, CRA Barnaby Min, Deputy General Counsel, CRA Todd B. Hannon, Clerk of the Board DISCUSSION ITEMS 1. OMNI CRA DISCUSSION 2371 DISCUSSION REGARDING UNSOLICITED PROPOSAL FOR MURAL SPACE AT MIAMI ENTERTAINMENT COMPLEX ("MEC"). MOTION TO: Discuss RESULT: DISCUSSED A motion was made by Vice Chair Suarez, seconded by Commissioner Gort, and was passed unanimously, authorizing the Executive Director of the Omni Redevelopment District CRA to proceed with consideration of the unsolicited proposal project for the installation of a mural on the Miami Entertainment Complex ("MEC") located at 50 NW l4th Street, Miami, Florida. Chair Russell: Calling to order the Omni CRA (Community Redevelopment Agency) meeting. Let's do roll call, please. Ken Russell, Chairman. Board Member Hardemon: Keon Hardemon, board member. Vice Chair Suarez: Francis Suarez, board member. Chair Russell: Thank you very much. And before we get started, I just want to comment on the fact that we're meeting at City Hall, which we haven't done as an Omni CRA in a while. Our intention -- and I know that the executive director, Jason's intention is to meet within the community. There was at least one item that was time -sensitive, but relatively administrative today that we wanted to get to. But in the future, Jason, for sure, items of substance on which the community would want to weigh in on, I'd like to have the meetings in the community. Jason Walker (Executive Director/Omni Community Redevelopment Agency): Yes, sir. OMNI Community Redevelopment Agency Page 2 Printed on 6/21/2017 OMNI Community Redevelopment Agency Meeting Minutes May 25, 2017 Chair Russell: So item number 1. Mr. Walker: Item number 1, Commissioners, we received a unsolicited proposal for a mural space at -- for the Miami Entertainment Complex, and I'll call up Ms. Jones to present the item. Item number 1. Isiaa Jones (Chief Legal Officer, Omni Community Redevelopment Agency): Good afternoon. This is a resolution of the Board of Commissioners of the Omni Redevelopment District CRA, by a four fifths -- Mr. Walker: Can you pull the mike closer to your --? Ms. Jones: Sorry. Mr. Walker: Discussion. Ms. Jones: Oh, the discussion item. I'm sorry. Chair Russell: Yes, please. Ms. Jones: This discussion regarding the unsolicited proposal for mural space at the Miami Entertainment Complex. Sorry. Vice Chair Suarez: Do we need a motion? Chair Russell: We don't. This is just a discussion at this point. We want to open it up to see where we want to move forward with this. Obviously, we've already given direction to Jason to study the best use of the structure itself of the movie studio, and in the meantime, we've received a proposal -- an unsolicited proposal to utilize mural -- the mural space, which was provided and already planned for on that building. We have the decision now to either go forward with that and start -- go out -- further solicitations, or we can wait and see what the analysis of the structure is, whether to sell it, keep it, or that sort of thing. We could do them concurrently. Barnaby Min (Deputy General Counsel): Commissioners, the -- this item is before you, because if you recall, in September the board had adopted the City's procurement process as the CRA's procurement process. Chapter 18 of the City Code does have a process for unsolicited proposals, and it requires any unsolicited proposal be brought before the body to determine if it should be entertained and taken to the next step of actually evaluation and further consideration. Board Member Hardemon: The City's unsolicited proposal requirements, though, require a deposit of some sort, right? Like $25,000 deposit. Ms. Jones: Yes. Board Member Hardemon: Will that same process be followed here, where well be accepting a $25,000 cash contribution from this entity that wants to put a mural on the MEC (Miami Entertainment Complexion) building? Ms. Jones: We have received that deposit. We have it. However, before we go forward, we have to have this discussion item to see if it's something that, you know, we want in the Omni CRA. OMNI Community Redevelopment Agency Page 3 Printed on 6/21/2017 OMNI Community Redevelopment Agency Meeting Minutes May 25, 2017 Chair Russell: So we have received the check. It's up to us, though, whether to go through with the process at this point and go out to solicitation, which would be the next step of procurement, or to table it to see whether we want to include it. For example, if the decision is -- the analysis finds that we are best to sell the asset and generate the cash from it, you know, there may be a very good opportunity that an existing tenant or movie studio company might purchase it and continue that business that is there right now; we would then be the beneficiary of having that cash freed up to do what we want. But the fact that it does have the ability to have the murals on there, that is also an asset that can be sold on its own, with a contract in place from a bidding procurement process that we do now, or we could simply sell it as a part of the value of the structure as a whole and say -- calculate a present-day value of the next 15 years, the life of the CRA, of what we would have received from it, and consider that part of the sale. They can then utilize that to make money. Vice Chair Suarez: Mr. Chair, so just two questions. One is, it's within the mural boundaries, correct? Chair Russell: Yes. Ms. Jones: Yes. Vice Chair Suarez: And number two, there's a limited -- a finite amount of mural permits, I think, are issued, and so it's -- would be within the construct of that, as well? Mr. Walker: Yes, sir. Vice Chair Suarez: Yeah. So I don't -- I mean, it would be like anybody else; them having a mural anywhere else, right? Mr. Walker: Yes, sir. Vice Chair Suarez: But it's still limited -- you know, there's still the same limitations Chair Russell: Yes. Vice Chair Suarez: -- that are imposed through -- yeah. Chair Russell: The rights are there and existing. The question is, do we as a CRA want to activate those rights and put the vendor in place, or do we want to -- if we choose to sell the building, sell it, you know, clean without another party attached with this asset? There's another option to actually bifurcate it and maintain the asset of the mural as a revenue stream for the CRA and sell the building separately; not my recommendation. I think simpler is better. Vice Chair Suarez: I'm fine with it, because I'm just me. I mean, because it doesn't expand the number that there are out there. I mean, whether you put it on one building or whether it gets put on another building, I mean, there's still a finite amount that are available. And the question is, who earns the money for those finite amount of spaces that are available? I mean, that's really -- Chair Russell: Right. It was always crafted that the CRA would generate a revenue from it in its original form, so. OMNI Community Redevelopment Agency Page 4 Printed on 6/21/2017 OMNI Community Redevelopment Agency Meeting Minutes May 25, 2017 Vice Chair Suarez: CRA doesn't generate it, somebody else will generate it. That's the point I'm trying to make. In other words, there's a finite amount of these permits within a boundary. Chair Russell: Yes. Vice Chair Suarez: So if the CRA decides not to be the landlord, they'll just find another landlord. Chair Russell: Correct, correct. Board Member Hardemon: What part of the building are they describing that they want to put the mural on? I'm assuming it's the part that you drive by on the expressway. Ms. Jones: Yes. Board Member Hardemon: Not the part that kind of faces Overtown. Ms. Jones: I think there's two different sites that was -- that is being proposed, so. Chair Russell: Yeah. It would only be visible if you were -- Board Member Hardemon: On the expressway. Chair Russell: -- on 395, coming from I-95, and traveling -- Board Member Hardemon: That's where the traffic is. Chair Russell: -- in that direction. Board Member Hardemon: High traffic. Chair Russell: Jason, I'm okay with us letting this play out for now, as long as all parties are very aware that this could end very quickly if the decision to sell the building is what comes through. How are we looking with this analysis on whether or not to --? Mr. Walker: We will have a report to you by the third week in June, our June board meeting. Chair Russell: Commissioner Gort. Board Member Gort: Let me ask a question. My understanding is, if you get a good permit -- if you get a good advertising company there, the value of the building's going to go up automatically, so that could be worked out as an income for us immediately or an income in the future, so we need to analyze that. Chair Russell: Is the value better with a player already attached to it or with an open rights that they can then sell? Is there an analysis of that or -- Board Member Gort: Right. OMNI Community Redevelopment Agency Page 5 Printed on 6/21/2017 OMNI Community Redevelopment Agency Meeting Minutes May 25, 2017 Chair Russell: -- any history estimation of that? Board Member Hardemon: I guess it depends. Not everybody wants to generate money with billboards or wraps on their building. Some people actually like the aesthetic beauty of a building, and they don't want anything on it. They may want to paint something on it. So, you know, you can't assume that because it has a contract for a mural to be on it, and it's revenue -generating, that that's something that people want. They may look at it like a hindrance. You know, you may want to buy a home and they may have a tenant. You might not want the tenant in there. You might, you know, want to use it every once in a while yourself. So it just depends. Chair Russell: Mr. Walker, do you need a direction to move forward with the procurement process? Mr. Min: If the consensus of the body is to entertain the unsolicited proposal, then the Administration can work pursuant to Chapter 18 of the City Code as far as the next process requires publication, consideration of other proposals, and then putting together an evaluation committee, and bringing forth any recommendations to the body, so. Vice Chair Suarez: It's the same thing that we have in our administration building, right? The same sort of -- Chair Russell: Procurement structure. Ms. Jones: Same. Board Member Gort: Then you have to set up an RFP (Request for Proposals). Vice Chair Suarez: No. I'm saying, we have a mural on our administration building right now. One of the 35 permits is on our administration building, right? Chair Russell: Yes. Board Member Hardemon: That's a ugly building. Vice Chair Suarez: With a landlord already. Actually, with a landlord -- Mr. Min: The City of Miami is the landlord. Vice Chair Suarez: Huh? Mr. Min: The City of Miami is the landlord. Vice Chair Suarez: Correct. I'm sorry. Mr. Min: (UNINTELLIGIBLE). Vice Chair Suarez: My apologies. We're -- that's right. We're in (UNINTELLIGIBLE). Board Member Hardemon: The building does not have -- Vice Chair Suarez: -- we're functioning as a board. My apologies. OMNI Community Redevelopment Agency Page 6 Printed on 6/21/2017 OMNI Community Redevelopment Agency Meeting Minutes May 25, 2017 Board Member Hardemon: -- any architectural charm. Chair Russell: So before we get too deep into that -- Vice Chair Suarez: They'll be here, though. They'll be here. Chair Russell: -- I would welcome a motion giving Jason direction to -- Vice Chair Suarez: Moved. So moved. Chair Russell: -- continue with the procurement process. Board Member Gort: Second. Vice Chair Suarez: So moved. Chair Russell: It's been moved and seconded. Any further discussion? Board Member Carollo: Yes. Just to verify, so we're going to go out for an RFP? Mr. Walker: Yes, sir. Ms. Jones: Yes. Vice Chair Suarez: They have to. Yeah, they have to. Board Member Carollo: Okay. Chair Russell: Any comment from the public? Vice Chair Suarez: Come on, guys. Board Member Gort: You'll like it. Peter Ehrlich: Good afternoon, Mr. Chairman, Commissioners. Peter Ehrlich 720 Northeast 69th Street, and I'm a co-founder of Scenic Miami and a member of Citizens for a Scenic Florida. Obviously, we're opposed to visual pollution. We don't call these mural ads; we call them billboards. They're billboards on buildings. And with the City ordinance, they can be up to 10,000 square feet, which is a monstrous size. And in the discussion today, we haven't heard anything about the beauty or the scenic beauty of South Florida and the City of Miami, and that should be vitally concerned -- a concern to the five of you. The visual pollution is a huge problem, and there's already 45 billboards on buildings in Miami. And if you're driving 95, 195 or 395, I mean, it's really getting to be disgusting with these massive billboards facing the highway, facing tourists, and facing residents. And really, the discussion should be just to say "no." There's already far too much, and the City's - - as you heard from the discussion from the Budget officer today, you're looking at a surplus. You don't need the money. It's really -- you should really be concerned with how the City looks, and not try to make every penny and every dime, and try not to pander to the plethora of billboard lobbyists in the room. Thank you very much. Chair Russell: Thank you, Mr. Ehrlich. OMNI Community Redevelopment Agency Page 7 Printed on 6/21/2017 OMNI Community Redevelopment Agency Meeting Minutes May 25, 2017 Nathan Kurland: Nathan Kurland, 3132 Day Avenue. Commissioners, ladies and gentlemen in the audience, to call what we're doing is to put a mural gives a bad name to the word "mural." In Philadelphia, a mural is a beautiful hand -painted side of a building that they actually run tours. Here, what we -- the misnomer we give to a billboard on a wall, a mural again gives a bad name to "mural." As Mr. Ehrlich pointed out, this is about visual pollution. People do not come to Florida to look at billboards on walls. They come to Florida for its natural beauty. Over and over, Peter and I have stood before you over the years. You know, you all smile when you see us whenever you're talking about an addition of LEDs (light emitted diodes) or an addition of advertisements on walls. We urge you not to pass this today; to defer it, and think about whether or not we want an additional two murals in the City of Florida -- the City of Miami. Thank you very much. Vice Chair Suarez: Mr. Chair. Chair Russell: Thank you. Commissioner Suarez. Vice Chair Suarez: Two questions. One is -- and I do very much like and respect both Peter and Nathan, and agree with them on a lot of things. One is -- you know, one thing that Nathan said is, at the end there, Mr. Kurland, is "two additional," and I don't think that these are any additional. These are within the construct of what is approved. So that's one thing. And the second thing that Peter said was -- Mr. Ehrlich -- was that the City has plenty of money, and we don't need the money. This is not for the City. This is money that would come for the Omni CRA to potentially address things like affordable housing, and things that are critical needs in our community, and that is sort of the mission of the CRA. So I just -- just to set the record straight. I understand that -- how you feel about them. My thing is, there will be no more or no less visual pollution based on whether we're the landlord or not the landlord of this particular mural, as -- maybe it's a misnomer to call it a mural -- advertisement or whatever they call it. Chair Russell: Thank you, Commissioner. You know, they bring up a point that needs to be considered, and it comes down to the public opinion sometimes in terms of what's more important. And in this case, as Commissioner Suarez says, this does generate an income for good, but at what expense? And I think that does involve the voice of the community, who are not here today, because we are meeting at City Hall instead of in the community. So I know that we -- this was added on to the agenda, because it's come to us as an unsolicited proposal, but I do want the community to be able to weigh in on this, because there may be a very unanimous voice that says, "That revenue extreme can be for good, and we are okay with that"; or there may be a very unanimous voice that says, "No, we are not in favor of that," and I think that voice needs to be heard, beyond just what the five Commissioners -- or board members here would decide on that. What -- first of all, what is the potential revenue that could be generated from this billboard or mural? Mr. Walker: I mean, it could be -- Chair Russell: There's no estimate yet on that; is that correct? Mr. Walker: There's no estimates, but it could be between 100 and $300,000 a year. Chair Russell: Per year? Mr. Walker: Yes. OMNI Community Redevelopment Agency Page 8 Printed on 6/21/2017 OMNI Community Redevelopment Agency Meeting Minutes May 25, 2017 Chair Russell: So, obviously, it's a decision that carries some weight to it that needs to be considered significantly. Board Member Gort: (UNINTELLIGIBLE). Chair Russell: Timing wise, how are we within the process -- and maybe you can help me here -- once we -- within our procurement process, once we receive the check and the unsolicited proposal, does the clock start ticking? What is the relative urgency here? Ms. Jones: So after we -- if we should get approval from the board to proceed with the due diligence and the notice requirement; then after that, then we send out our solicitation document and everything; then pretty much a month or two before we get an answer, and come back to you with our recommendation for approval. Chair Russell: Before going out to solicitation even? Ms. Jones: No. So once -- after today, if we should move forward, then after that, we -- so send out our solicitation document with the requirements that we may have, (UNINTELLIGIBLE) requirements more than what they've presented, and send it out two weeks, and then we wait for the responses to come in; after that, the responses come in, then it gets evaluated. After the evaluation, then we make a recommendation based on the one we choose or not choose, and then come back to the board again for approval. Chair Russell: Our next meeting is June -- Mr. Walker: The third Wednesday in June. I'm not sure of the date. Chair Russell: The third Wednesday in June. And do you have a venue already selected? Mr. Walker: We are working on a venue, yes. We're working on two separate venues that -- (UNINTELLIGIBLE) De Hostos, and we have to choose between the two. Chair Russell: But both physically are within the CRA itself? Mr. Walker: Both physically within the CRA itself. Chair Russell: Within the boundaries of the CRA. I'd recommend that we defer this then, gentlemen, just to -- I mean, just to get the public input on the item. Because if we approve it now, it'll start the wheels in motion of the full solicitation process, and the neighbors may feel that there's a momentum there that they don't really have a say in. It's the only thing I -- it was really important to me that the only items we bring to City Hall for these meetings be really nonconsequential, non -community - affected decisions. So I don't want to put a finger on the scale of which way this would go at that time. I just think the community needs to be involved in the decision. Mr. Min: Mr. Chairman, obviously, this is a policy decision, but just so you're aware, as Ms. Jones has stated, if the unsolicited proposal is to be retained, there's a procurement process that it has to go through. When that procurement process has OMNI Community Redevelopment Agency Page 9 Printed on 6/21/2017 OMNI Community Redevelopment Agency Meeting Minutes May 25, 2017 concluded, that comes back before the body, and the body can at that point, after consideration of the public input, reject the proposals and no longer entertain it. So simply by taking the next step of considering the unsolicited proposal and opening it up to procurement does not necessarily mean that a mural is going to be put on the building. However, I (UNINTELLIGIBLE). Chair Russell: That, I understand. But what level of momentum is generated by going out for solicitation? And your advice may be spot on, Barnaby, and it's absolutely fine to move forward with this. I just don't want a train started that the community feels that they weren't involved in and don't have the ability to stop. Yes, sir. Jose Felix -Diaz: Jose Felix -Diaz, Akerman LLP, on behalf of Becker Boards. We do feel like this is the infancy of the conversation. And like Commissioner Suarez mentioned, this is an existing permit that's being transferred. This is not a new permit. After you have the solicitation -- and that's why the statute exists -- you have an ability to see what the full panoply of options are. Are there other applicants or other people looking for it? What are they offering? And that's when the community's really going to want to have a voice. You will have a vote at that point, and I think that that would be probably the best time to make a decision. If we're postponing now, all we're doing is, you know, postponing the infancy of the project, which I think is worthwhile, no matter what the community says, to see what your options really are. Because if you postpone till next month, or to June, and the community comes and says, "We don't like it," they have nothing to like or not like. The Florida Statutes have public notice -- I mean, public records exemptions that, you know, keep this confidential, so nothing will be open for them to review, which is why you would want to move it now, so that they would be able to continue the process and have an opinion once they have all the options. Chair Russell: So that it would -- by the time it did get back before them, it would be through the process and then open for discussion. Mr. Felix -Diaz: Correct. Chair Russell: Fair enough. I agree with that. So there is a motion already on the floor, correct? And it was seconded? Any further discussion from the dais? All in favor, say "aye." The Board (Collectively): Aye. Chair Russell: Any opposed? Motion passes. RESOLUTIONS 1. OMNI CRA RESOLUTION 2098 TO BE WITHDRAWN A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("CRA"), BY A FOUR -FIFTHS (4/5THS) AFFIRMATIVE VOTE, AFTER AN ADVERTISED PUBLIC HEARING, RATIFYING, APPROVING, AND CONFIRMING THE EXECUTIVE DIRECTOR'S RECOMMENDATION AND FINDING THAT COMPETITIVE NEGOTIATION METHODS AND PROCEDURES ARE NOT PRACTICABLE OR ADVANTAGEOUS PURSUANT TO SECTIONS 18-85 AND 18-86 OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, AS ADOPTED BY OMNI Community Redevelopment Agency Page 10 Printed on 6/21/2017 OMNI Community Redevelopment Agency Meeting Minutes May 25, 2017 2. THE CRA; WAIVING THE REQUIREMENTS FOR COMPETITIVE SEALED BIDDING AS NOT BEING PRACTICABLE OR ADVANTAGEOUS TO THE CRA; AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH POPLIFE ENTERTAINMENT GROUP, LLC, IN A FORM ACCEPTABLE TO THE GENERAL COUNSEL, FOR THE PROVISION OF PROGRAMMING, MARKETING, AND BRANDING SERVICES RELATED TO APPROXIMATELY SEVEN (7) ACRES OF FLORIDA DEPARTMENT OF TRANSPORTATION OWNED LAND ABUTTING INTERSTATE 395 IN THE OMNI REDEVELOPMENT AREA FOR A CONTRACT PERIOD OF EIGHT (8) MONTHS AT A MONTHLY CONTRACT AMOUNT OF $5,000.00; ALLOCATING FUNDS FROM OMNI INCREMENT FUND, "OTHER GRANTS AND AIDS", ACCOUNT CODE NO. 10040.920101.883000.0000.00000. MOTION TO: RESULT: MOVER: SECONDER: AYES: Withdraw WITHDRAWN Francis Suarez, Vice Chair Frank Carollo, Commissioner Gort, Hardemon, Carollo, Suarez, Russell Chair Russell: Item number 1 was withdrawn; is that correct? Jason Walker (Executive Director/Omni Community Redevelopment Agency): Yes, sir. Chair Russell: Item number 2. Todd B. Hannon (Clerk of the Board): Excuse me, Chair. We do need a motion to withdraw the item officially from the agenda. Vice Chair Suarez: Move it. Board Member Carollo: Second. Chair Russell: It's been moved and seconded. Board Member Carollo: For a withdrawal. Vice Chair Suarez: For a withdrawal. Chair Russell: Any discussion from the public on the withdrawal? Hearing none, I'll close public comment. Any discussion from the dais? All in favor, say "aye." The Board (Collectively): Aye. Chair Russell: Motion passes. OMNI CRA RESOLUTION 2362 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("CRA"), WITH ATTACHMENT(S), DECLARING THE OFFICIAL INTENT OF THE CRA, TO ISSUE TAX INCREMENT FINANCING BONDS IN THE OMNI Community Redevelopment Agency Page 11 Printed on 6/21/2017 OMNI Community Redevelopment Agency Meeting Minutes May 25, 2017 EXPECTED TOTAL MAXIMUM PRINCIPAL AMOUNT NOT TO EXCEED TWENTY-FIVE MILLION DOLLARS ($25,000,000.00) IN ORDER TO, AMONG OTHER THINGS, REIMBURSE THE CRA FROM TAX INCREMENT FINANCING BONDS FOR FUNDS ADVANCED BY THE CRA FOR CERTAIN EXPENSES INCURRED WITH RESPECT TO PROJECTS OF THE CRA, REAL PROPERTY ACQUISITION, AFFORDABLE HOUSING PROJECTS, AND CERTAIN RELATED CAPITAL IMPROVEMENTS PROJECTS; ESTABLISHING CERTAIN RELATED DEFINITIONS OF TERMS; AUTHORIZING CERTAIN FURTHER AND INCIDENTAL ACTIONS BY THE EXECUTIVE DIRECTOR, IN CONSULTATION WITH GENERAL COUNSEL AND BOND COUNSEL, AND SUCH OTHER APPROPRIATE OFFICERS, EMPLOYEES, AND AGENTS OF THE CRA, AS THE EXECUTIVE DIRECTOR DEEMS NECESSARY, ALL AS REQUIRED FOR PURPOSES OF SECTIONS 103 AND 141-150 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO UNDERTAKE THE RELATED AMENDMENTS TO THE CRA'S REDEVELOPMENT PLAN PREVIOUSLY ADOPTED SEPTEMBER 29, 2009 ("AMENDED 2017 PLAN"); DIRECTING THE EXECUTIVE DIRECTOR TO TRANSMIT THE AMENDED 2017 PLAN AND THIS RECOMMENDATION TO THE CITY MANAGER FOR REVIEW AND CONSIDERATION, AND TO REQUEST SUBSEQUENT TRANSMITTAL TO THE MIAMI CITY COMMISSION AND MIAMI-DADE COUNTY COMMISSION FOR LEGISLATIVE ACTION. ENACTMENT NUMBER: CRA-R-17-0032 MOTION TO: RESULT: MOVER: SECONDER: AYES: Adopt ADOPTED Francis Suarez, Vice Chair Wifredo Gort, Commissioner Gort, Hardemon, Carollo, Suarez, Russell Chair Russell: Item number 2. Jason Walker (Executive Director/Omni Community Redevelopment Agency): Item number 2, Commissioners, is a resolution of the Board of Commissioners of the Omni Redevelopment District Redevelopment Agency, with attachments, declaring the official intent of the CRA (Community Redevelopment Agency) to issue tax increment financing bonds, in the expected total amount -- principal amount not to exceed $25 million, in order to, among other things, reimburse the CRA for tax increment financing bonds for funds advanced by the CRA for certain expenses incurred with respect to projects of the CRA, real property acquisition, affordable housing projects, and certain related capital improvement projects; establishing certain related definitions of terms; authorizing certain further and incidental actions by the executive director, in consultation with the general counsel and bond counsel, and such other appropriate officers, employees, and agents of the CRA, as the executive director deems necessary. Basically, we are in the final couple of weeks of closing on a $25 million loan to build some affordable housing projects in the area. There will be some expenses outlaid before the closing. And so, this resolution will allow us to pay ourselves back, once the loan is closed, for any monies that we spend between now and the time that we close the loan. Vice Chair Suarez: Move it. OMNI Community Redevelopment Agency Page 12 Printed on 6/21/2017 OMNI Community Redevelopment Agency Meeting Minutes May 25, 2017 Chair Russell: It's been moved. Is there a second? Board Member Gort: Second. Chair Russell: It's been moved and seconded. Comment from the public on this item? Hearing none, I'll close public comment. Any comments from the dais? Board Member Hardemon: I have a question for the City Attorney. Is this the same process that the Southeast Park West/CRA had to go through when they issued their bond? Because I remember there being a qualifying step that that CRA had to go through, and it caused -- I believe they had to go before a judge and -- Vice Chair Suarez: Validation. Board Member Hardemon: A validation. It was bond validation. Is there a bond validation process in this --? Barnaby Min (Deputy General Counsel): It's a similar process, but it's a different type of financial arrangement that is being worked out. This is a loan and not a bond. Vice Chair Suarez: Mr. Chair. Board Member Hardemon: But when I read the backup on it -- because I was kind of confused about something -- it did state that it was a loan, but then it also stated within the document that was provided by the bank that there was a -- it says, "Facility." The obligation will be in the form of bonds issued by the CRA in an amount not to exceed the series 2017 loan amount. The interest on the obligation shall be tax exempt to the lender." So it appears to be that it is a -- sort of a bond issuance, not a loan. Robin Jones -Jackson: Good afternoon, Mr. Chair and members of the Commission. Robin Jackson, senior Assistant City Attorney. Yes, it's the same process that the City goes through when you declare intent to reimburse yourself. In this situation, there is a bank loan, so it's issuing of a bond -- one of our bonds, but to one holder. In the situation that you were comparing that Southeast Overtown went through a couple of years ago when they were issuing bonds, they were going into the market. Vice Chair Suarez: Public sale. Jones -Jackson: Yes, sir. They were going into the market, so the bonds needed to be validated -- Board Member Hardemon: Did they -- Ms. Jones -Jackson: -- in that process. Board Member Hardemon: -- need to be validated, or was it something that they went through just to show that they had the ability to pay back the debt that was going to be issued? Ms. Jones Jackson: Both. Vice Chair Suarez: And I'll just add -- OMNI Community Redevelopment Agency Page 13 Printed on 6/21/2017 OMNI Community Redevelopment Agency Meeting Minutes May 25, 2017 Ms. Jones -Jackson: Both. Vice Chair Suarez: -- if I may, Mr. Chair? There's two additional issues. One of them was -- that's usually an underwriter requirement. The underwriter requires validation, because they want to make sure that whatever debt you issue is legal, right? But there was apparently -- and I remember all this -- a documentation issue in some of the enabling legislation of the CRA that was creating -- I'll use a real estate term -- like a "cloud on title," if you will -- right? -- which they had to resolve, if I remember correctly. I don't know if you remember that. Ms. Jones -Jackson: And so they went through for both reasons -- Vice Chair Suarez: Right. Ms. Jones -Jackson: -- you're both correct -- to do that, and they were also going into the market, as you would remember, with an underwriting syndicate of investment banks. Board Member Hardemon: So here there won't be -- there's one bank that's going to be underwriting this. Ms. Jones -Jackson: Correct. Board Member Hardemon: And that bank seems to be very comfortable with moving forward with the Omni CRA debt. Ms. Jones -Jackson: That's my understanding. Board Member Hardemon: Okay. Thank you. Ms. Jones -Jackson: And this is very similar to what the City has gone through, too. This is about reimbursing the advances of the funds that the CRA needs to make, and then the actual financing for the issuance of the bond -- Board Member Hardemon: Itself. Ms. Jones -Jackson: -- to the bank will come back to you again with all of the documentation for that. This is only the reimbursement mechanism under the IRS (Internal Revenue Service) Code so that you can set a point in time from today, and it goes backwards 60 days, and it goes forward until you issue the bonds, or three years -- Vice Chair Suarez: Thank you for -- Ms. Jones -Jackson: -- depending upon -- Vice Chair Suarez: -- using a bank we're not suing. I appreciate that. Ms. Jones -Jackson: Thank you very much. Chair Russell: Any further discussion from the dais on this item? Vice Chair Suarez: Let me ask just a question. It's not even a discussion. OMNI Community Redevelopment Agency Page 14 Printed on 6/21/2017 OMNI Community Redevelopment Agency Meeting Minutes May 25, 2017 ADJOURNMENT Chair Russell: Of course. Vice Chair Suarez: It's more of like a question. So obviously, we did something similar in Overtown, and it's turned out, I think, very well for Overtown. And I think the main objective that I see here is a very positive objective, and it's the objective that I think funds the total philosophical shift of Omni -- right? -- in what I consider to be a very positive manner. Is there any TIF (Tax Increment Funds) going to be left after we do this, just out of curiosity? I mean, is there -- or -- this is -- I mean, there's -- if there's future development that will not take up this TIF, or this TIF will also take up future development? Just -- Mr. Walker: We've talked -- sorry -- with our banker, our financial advisor. This is Vice Chair Suarez: Current TIF that we have. This is current TIF that we have or this is future? Mr. Walker: This is current TIF. This is up to 2030, and we still have more capacity beyond this 25 million. Vice Chair Suarez: That's all I wanted to -- But if somebody came in with an idea like we've done in Overtown, for example, where we've structured TIF deals, that could still be done, even though we have this --? Mr. Walker: Yes, sir. Vice Chair Suarez: Okay. Just wanted to make sure. Thank you. Chair Russell: You know, and I think it's very creative and good thinking on Jason's part that has come up with a financial mechanism that will allow us to do significant affordability without relying on Federal dollars. That'll take a lot of the handcuffs off that will allow us to be more flexible with how we direct the affordability and who goes there. So I'm -- I think this is a great thing. Is there any comment from the public on this item? Hearing none, I'll close public comment. Any further comments from the dais? All in favor, say "aye." The Commission (Collectively): Aye. Chair Russell: Motion passes. If there's nothing else, this meeting's adjourned. Thank you. The meeting adjourned at 2:33 p.m. OMNI Community Redevelopment Agency Page 15 Printed on 6/21/2017