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HomeMy WebLinkAboutOMNI CRA 2018-01-17 MinutesCity of Miami 3500 Pan American Dr Miami, FL 33133 www.miamigov.com Meeting Minutes Wednesday, January 17, 2018 5:00 PM Temple Israel of Greater Miami 137 NE 19th Street Miami, FL 33136 OMNI Community Redevelopment Agency Ken Russell, Chair Keon Hardemon, Vice -Chair Wifredo (Willy) Gort, Board Member, District One Joe Carollo, Board Member, District Three Manolo Reyes, Board Member, District Four 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 January 17, 2018 CALL TO ORDER Present: Chair Russell, Vice Chair Hardemon, and Commissioner Gott Absent: Commissioner Carollo and Commissioner Reyes On the 17th day of January 2018, the Board of Commissioners of the OMNI Community Redevelopment Agency of the City of Miami met in regular session at Temple Israel of Greater Miami located at 137 Northeast 19th Street, Miami, Florida. The meeting was called to order by Chair Russell at 5:38 p.m., recessed at 6:43 p.m., reconvened at 6: 50 p.m., and was adjourned at 7:39 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 Chair Russell: All right, everyone, we do have a quorum. Good evening, and welcome to the board meeting of Omni Community Redevelopment Agency. I'm Commissioner Ken Russell, your Chairman. I'm joined here by Commissioner Hardemon and Commissioner Gort. Commissioners Carollo and Reyes have let us know that they will not be able to attend this evening, but we do have a quorum, and we'll be able to get through some good business. Just on a side note, today we did the groundbreaking on the Dorsey -- Historic Dorsey Library, which is a beautiful thing today. It'll be really nice to see that building come back to life in the coming months, and in good part, to the budget of the CRA (Community Redevelopment Agency) for getting in there and saying historic preservation is one of our priorities. Today we have a very packed agenda. We have issues of historic preservation with the bank building. We're going to be trying to free up some money, trying to spend some money, trying to create some affordable housing; a lot of new ideas here. APPROVING THE MINUTES OF THE FOLLOWING MEETING(S): OMNI COMMUNITY REDEVELOPMENT AGENCY - REGULAR MEETING - OCT 3, 2017 5:00 PM MOTION TO: Approve RESULT: APPROVED MOVER: Keon Hardemon, Vice -Chair SECONDER: Ken Russell, Chair AYES: Russell, Hardemon, Gort ABSENT: Carollo, Reyes Chair Russell: We're going to start with approving the minutes of the October 3, 2017 meeting. HI could get a motion, please. Vice Chair Hardemon: So moved. Chair Russell: It's been moved by Commissioner Hardemon; seconded by the Chair. All in favor, say "aye." OMNI Community Redevelopment Agency Page 2 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 The Board (Collectively): Aye. Chair Russell: Motion passes. OMNI CRA DISCUSSION ITEM(S) 1. OMNI CRA DISCUSSION 3480 DISCUSSION REGARDING THE UNSOLICITED PROPOSAL RECEIVED BY THE OMNI CRA FOR THE HISTORIC BANK BUILDING LOCATED AT 1367 NORTH MIAMI AVENUE, MIAMI, FLORIDA. MOTION TO: Discuss RESULT: DISCUSSED Note for the Record: A motion was made by Vice Chair Hardemon, seconded by Commissioner Gort, and was passed unanimously, with Commissioner Carollo and Commissioner Reyes absent, to authorize the Executive Director of the OMNI CRA to issue a Request for Proposals (RFP) for the Historic Bank Building property located at 1367 North Miami Avenue, Miami, Florida. Chair Russell: And we will begin with Discussion Item Number 1, regarding the bank building. Mr. Executive Director. Jason Walker (Executive Director/Omni Community Redevelopment Agency): Thank you, Mr. Chairman. Before I start in on Item Number 1, Commissioner Carollo's Office -- I don't know if you did this; I was talking -- but they wanted to me to put on the record that he was ill and could not be able to make it tonight, as well as Commissioner Reyes, but they specifically asked that I put that on the record. Chair Russell: Thank you. Mr. Walker: Item Number 1 is discussion regarding the historic bank building that we purchased at 1367 North Miami Avenue. We've received an unsolicited proposal to activate that site. As you know, we've adopted the City procurement code, so we have to follow that process for unsolicited proposal offers. And that basically means that we would either accept the proposal, that you want to entertain it, and then go through an RFP (Request for Proposals) process, where we open up for other people to offer their ideas for what to do at that building, and then we come back and we choose the best fit for us. If we decide to reject it, then basically nothing happens until we're ready for it to happen once we've done the renovation and we could do it at that time. Our recommendation is that we accept it; that we move forward with the RFP process, while, simultaneously, working with the Procurement Department to start the renovation on the building. So at whatever point a decision is made -- if the decision, for example, is made eight months from now that we're rejecting all proposals, we're still not sitting on the derelict building eight months later, where we've made some progress. Or the flip side of that, we accept the proposal, we can hand over the building in whatever Jam it's in at that point for a higher price. And we would recommend that the RFP be very broad. Right now the unsolicited proposal looks at a cultural art space with a food and beverage concept, and so we would put that in the RFP or any other uses that anybody may have. Chair Russell: Mr. City Attorney, a question for you. If we receive a bid, how far from the tenets of that bid can we stray within our RFP to go broadly and say -- OMNI Community Redevelopment Agency Page 3 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 because, honestly, I -- you know, our priority is preserving the building and activating it in some sense that's good for the community, but we don't know exactly what that means yet. So once we see this initial proposal, we want to attract who knows what, so we want to have a broad RFP. How far can we stray from what they propose? Barnaby Min (Deputy City Attorney): You are not stuck by the terms of the unsolicited proposal. The CRA (Community Redevelopment Agency) could issue its own RFP, based on whatever criteria and desires that the board and the Administration deem appropriate, and the original proposer can submit a proposal based on that. Chair Russell: All right. And throughout this proposal, we can continue with historic -- the preservation portion, start the -- everything, the clean-up -- Mr. Walker: Yes. Chair Russell: -- pick-up, the rehab? Mr. Walker: Yes. Chair Russell: That won 't hold anything up? Mr. Walker: No. Chair Russell: All right. In that case, I'd he inclined to agree with you. You don't need an action of the board, do you? Mr. Walker: No, sir. Chair Russell: It's open for discussion, if anyone would like to mention anything about it. Mr. Walker: You do? I'm sorry, Commissioner --Mr. Chairman. We do need -- i ice ChairHardemon: He needs an action. Chair Russell: You need an action. You need a direction. Mr. Min: There needs to be some direction from the board for the Administration to know whether to entertain this unsolicited proposal or not. Chair Russell: Understood. Of course. So it's open fbr discussion, gentlemen. there's anyone who'd like to make a motion. Board Member Gort: Let me ask a question. I have had a cold, and I can't hear too well. You tell me, what is it that we're looking at? Chair Russell: So there's a bit of an echo in this room. It is -- Board Member Gort: I just got this yesterday. Chair Russell: -- hard to hear. So this is the big red bank building across the street Board Member Gort: I'm aware. If OMNI Community Redevelopment Agency Page 4 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 Chair Russell: -- which, historically, wasn't red actually, but we've purchased it; we want to activate it. We've received an unsolicited proposal. Board Member Gort: Okay. Chair Russell: We have two choices: One, either reject it or accept it. And even if we accept it, we can go out for RFP to entertain new bids, and that's the executive director's recommendation, is to do exactly that. And in the meantime, get going on the historic preservation. Board Member Gort: Are we following the procurement from the City, or we're following this -- our own? Mr. Min: It is the City's procurement process, which is also consistent with State Statute. Board Member Gort: So my understanding is, they have to put a deposit of $25, 000 so we could do the due diligence -- Mr. Walker: We 've already cashed the check. Board Member Gort: -- and then we go for an RFP. I always thought that wasn't fair, but that's the way it is. Mr. Walker: Yep. Chair Russell: Yeah, they're -- it is certainly a risk on their part -- Board Member Gort: Sure. Chair Russell: -- but it's -- I think their eyes are wide open. You've been very clear with them about how the process works, correct? Mr. Walker: Um-hmm. Chair Russell: And I believe the bidder -- the proposer feels that they have a leg up or an advantage by being the first to be out there, and that's their prerogative. But I think we want to be very clear that we do not know exactly what we want to do with this building; and so, we want to attract as many options and ideas as possible. Board Member Gort: You want to maintain the historical site? Chair Russell: What's that? Board Member Gort: You want to maintain the historical preser --? Chair Russell: One hundred percent. Unidentified Speaker: Absolutely. Chair Russell: One hundred percent. The use, obviously, will change. It's not going to be a bank, but we're going to do something unique and interesting with it, but I think the ideas that come can be better than anything we might dream up on this board So I'm inclined to accept it, and I'll leave it up to the board. ice Chair Hardemon: Does the unsolicited proposal have any requests for public dollars, or is it something that's privately financed to bring about some sort of OMNI Community Redevelopment Agency Page 5 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 product to the neighborhood? Mr. Walker: I believe that there was some mention of historic preservation dollars from the CRA to help with the renovation. Chair Russell: They want us to bring the basic box of the building up to snuff and then they would do the activation portion, whatever goes inside. Mr. Walker: Either/or; either we do it or we give them the money to do it. Board Member Gort: Did they present a plan? Mr. Walker: I have seen their plan, yes, sir, but because of -- we've had a lot of emails about this over the past week, and we referred to counsel. Because it's an unsolicited proposal process, we did not make the proposal public, because then that would be to the disadvantage of the proposer. So we can't discuss the details of their proposal, but, yes, I've read it; I will not be sitting on the Selection Committee. But, yes. So we have read it, and we think we should move forward with accepting it and then going through the RFP process. Board Member Gort: My understanding is, the unsolicited proposal is not going to be identified, it's not going to be shown, it's not going to be part of the public record. Mr. Walker: Yes, sir. Board Member Gort: Am I correct? Okay. Chair Russell: Is there any from -- anyone from the public like to speak on this item with regard to the historic bank building? No. In that case, I'll wait, if there's a motion to accept. Vice Chair Hardemon: So what's the benefit of going through the unsolicited proposal process rather than just issuing an RFP? Mr. Walker: We could do that as well. Chair Russell: Wasn't there a time difference? What's the time difference, if we accept --? Mr. Walker: The time difference is, is that they had submitted their proposal, I think, in November or October or September, so it kind of jumpstart us a little quicker than we would have gone out with the RFP. So they're anxious to get the ball rolling. I mean, would we have started going out with the RFP for the use of the building January, February, March? Probably not. So we're just basically agreeing with them to speed up the timeline to jump -roll that process, with their $25, 000 paying the City of Miami Department of Procurement to go through that process sooner than probably March or April, when we probably would have done it. Chair Russell: Mr. Crespo, you have a comment? Al Crespo: Yeah. So this is an unsolicited proposal, and given the time frame here - - because come November, there could be an election for a new District 2 Commissioner, which could change everything drastically. If y'all want to do something about this, why not go ahead, accept the unsolicited proposal, and follow the process? Yeah. I think everything that this agency does for the remainder of this year has to also focus on the fact that all of this might come to naught if you have a OMNI Community Redevelopment Agency Page 6 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 2. different City Commissioner come in in November with an entirely different agenda. So if you want to follow this agenda, perhaps it's time to jump on the bandwagon and get it done before the next guy comes in, because the next guy could very well be a snake. Vice Chair Hardemon: Well, it depends on the chairmanship. Mr. Crespo: Well, that's true, but then again, the snake took it away from the last -- Vice Chair Hardemon: Got a good memory, don 't you? Mr. Crespo: Hey, I wrote about it. I'm the one who made it public. Thank you. Chair Russell: Thank you, sir. Yes, ma'am. Jasmine Johnson: Hello. I just want to add that for 1367, we do -- my group looks forward to submitting a proposal to you all. That's it. Chair Russell: Thank you. Todd B. Hannon (Clerk of the Board): Ill could just have the speaker's name, sir? Ms. Johnson: Oh. Jasmine Johnson. Good? Chair Russell: All right. There's no further public comment. Vice Chair Hardemon: I'll move to accept it. Chair Russell: It's been moved to accept the unsolicited proposal. Board Member Gort: Second. Chair Russell: It's been second by Commissioner Gort. Any further discussion? All in favor, say "aye." The Board (Collectively): Aye. Chair Russell: Any opposed? Motion passes. OMNI CRA DISCUSSION 3482 DISCUSSION REGARDING THE UPDATED TERMS AND PREVIOUS APPROVAL OF THE OMNI CRA'S BANK LOAN WITH BANK UNITED. MOTION TO: RESULT: Chair Russell: defer. Jason Walker sir. Continue by Unanimous Consent CONTINUED BY UNANIMOUS CONSENT Discussion Item Number 2, I believe it's been requested by Legal to (Executive Director/Omni Community Redevelopment Agency): Yes, Chair Russell: Thank you. OMNI Community Redevelopment Agency Page 7 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 3. OMNI CRA DISCUSSION 3481 DISCUSSION REGARDING THE MIAMI ENTERTAINMENT COMPLEX (MEC) OMNI CRA'S PROPERTY LOCATED AT 50 NW 14TH STREET, MIAMI, FLORIDA. MOTION TO: Discuss RESULT: DISCUSSED Note for the Record: A motion was made by Vice Chair Hardemon, seconded by Commissioner Gort, with Commissioner Carollo and Commissioner Reyes absent, to authorize the Executive Director of the OMNI CRA to place a "For Sale" sign on the Miami Entertainment Complex (MEC) OMNI CRA's property located at 50 NW 14th Street, Miami, Florida. Chair Russell: Discussion Item Number 3. Jason Walker (Executive Director/Omni Community Redevelopment Agency): Discussion Item Number 3. Back in May or June of 2016, we had a board meeting, where the board asked us to go and look at what the possibilities are to sell the Viacom MEC, Miami Entertainment Center, Complex. We've researched by speaking with the City Attorney's Office, going over the lease and the sublease; speaking with outside counsel to discuss what are the options for the agency. We also had an appraisal done of the building. The appraisal came back that the building was appraised about 20 to $25 million. Currently, we have put -- the CRA (Community Redevelopment Agency), Omni CRA, has put in about $18 million into that building, from purchase to buildout. We are -- Isiaa could read the lease agreement as it stands right now, but we're in -- and I think in the third or fourth year of a 19-year lease; a 10-year (UNINTELLIGIBLE) lease with a 1-year -- one 9- year option. We're receiving a base rent of $100,000 a year, with 11 percent over the 750 gross, which comes out to about another $150, 000 a year. We also have to pay insurance on the building. We also have to maintain the building as the building owner. And we think that this is just a losing proposition for us. And then we think that if we can sell it, we can use that money for affordable housing projects in the area. The issue is, we have a partner -- we have a tenant there now, and we have a major company in Viacom that is in their, I think, second or third year of their sublease. So we need to figure out -- and we tried to ask the City Attorney's Office to help us ascertain what are the methods that we need to go by to offer this building for sale. I will tell you that we have received -- I wouldn't call them serious offers; I would just say inquiries -- you know, people calling because they've read about it in the newspaper -- of people that are interested. Actually, I was meeting, and I had a briefing with Commissioner Hardemon just an hour ago, and the people that were sitting in the lobby mentioned, you know, "Hey, tell us about an update on that. We're interested in putting a group together." So there are groups out there that are looking at it to purchase with the lease in place. The lease is public record, so we've handed it out. So, basically, we're coming to look for direction from this board on how to proceed. Currently, we have a lease in place for, I guess, the next 16 years with EUE/Screen Gems. They have a lease right now. They're probably in negotiations with Viacom to renew their lease, since that's probably coining up. But we could use that money. And we need to figure out, from a legal standpoint, what's our exposure in selling this building. We understand that EUE has the first right of refusal, so we make them the first offer, and they have 30 days to respond. And after that, you take it out to the wider world. Board Member Gort: Who has the first right? OMNI Community Redevelopment Agency Page 8 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 Chair Russell: The actual tenant who's currently leasing it from us is EUE/Screen Gems, the film company. Here's the way I look at it. When I first took the chairmanship, I looked at the assets and the land -- the little bit of land that we hold. And this property is pretty significant. This is a movie studio, which is great for the film industry in the area, and I think it's -- you know, I've seen what they produce. It's a good part of the community in that sense, but it's not necessarily the mission of the CRA. For me, any partner we have, any asset we have, either has to be developing money for the CRA or providing good for the community of the CRA in terms of jobs, development, activation. This is losing us money. We're not making money with this. Here's the -- you know, whoever negotiated the terms, it was very friendly to the tenant. And so, it's good that it's -- but it's not providing jobs in the community, it's not providing money for us, it's not activating. I even offered to them -- I said, `Are you" --? "You know, can we do some sort of film industry education for folks in the community? Can we do, you know, something?" And there's really not much interest there for them. They're a very happy tenant. They're paying very little rent. And the way it's written, they have a subtenant, which is Viacom. And if that subtenant makes the highest grossing movie ever made in history next year, we don 't see a dime of it, so this isn't producing anything for the CRA; yet, it's tying up $20 million of the CRA's potential to do good. And so, I -- we, as a board, decided to direct the executive director to explore the potential for a sale, and here we are. I don't want to get in a fight with our lessee. I think they're well -entrenched with this lease. I think, if it gets purchased, it probably should be purchased by someone within the industry. It's a turnkey film studio. So, who knows? They may stay in place with their lease with the new tenant; they may buy it out themselves. I think we should look into that, but I want to have our eyes wide open, Mr. City Attorney. I want us to really study the lease for potential exposure so that we don't take any wrong steps as a CRA that open us up to litigation or problem or any debt to the lessee. But I think selling it with them in place, I believe we're allowed to do that under the lease, right? We're not restricted from selling the property, as long as they get first right of refusal. If they say, -No," we can sell it with them as the tenant. BarnabyMin (Deputy City Attorney): That is correct, sir. Chair Russell: Okay. Vice Chair Hardemon: Mr. Chairman, I'll tell you, although the terms of the lease tend to be favorable to the tenant, I think everyone can admit that. Before this film studio was created, can anyone remember what was going on in the building? Can anyone remember that there was -- You know, we had an active film community there, even though, to me, it's kind of the Ivory Tower in the middle of the neighborhood. I've personally been there, and I've seen that we don't, from the community, have much access to it. I will tell you that now that the redevelopment has occurred, we've invested those dollars, we can get those dollars back by selling it, but also, we're going to then see some of that tax revenue come back into the CRA. So, you know, overall, the quicker that we get rid of it, the quicker we're going to be able to realize some of the tax gains from selling the property. So, you know, sometimes you have to spend money to make money, right? And, certainly, the CRA spent this money, it changed a space, and now we want to get rid of the asset to be able to incur more tax increment. Chair Russell: So you're saying, it accomplished its mission at the moment of eliminating that blight -- T ice Chair Hardemon: I think so. OMNI Community Redevelopment Agency Page 9 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 Chair Russell: -- which was a mission of the CRA? Vice Chair Hardemon: I think so, but I think that the bigger mission is what you described. Now, let's get our money back; find another project to do with that 20, $25 million that we'11 be able to earn, and the additional tax revenue will go towards building more affordable housing or creating other spaces. So I think, just -- I mean, it's the same thing as the bank property; we own it. Well make some renovations to it, eventually, someone will want to buy it. Because the question is, 'Does the CRA want to be in the business of just owning properties and land?" Probably not. You want to create the tax revenue. It depends on the asset. And certainly, the State of -- the City of Miami is not the State of Florida; we don't create tax incentives jar film to come here. We might make things a little bit easier once they're here, but other than that, we eliminated an unsightly building within the community and attracted some major tenants, and I think that's a good thing. Now, if we just can improve upon the neighborhood that's around it, then maybe some of those people who are in the building will spend money outside in the community. Board Member Gort: Not only that, but I think the new owner might bring even more use of the building, and a lot more jobs will be created. Let's face it, the film industry, my understanding is, it was eliminated here because Tallahassee took away the incentives, then they're filming in Georgia and Alabama. My understanding is, they're discussing once again to begin using the incentives to try to bring that industry back. So I think a new owner that really in the business of producing and production could do a lot better than us. That's for sure. Chair Russell: Mr. Crespo, you have a comment? Al Crespo: Yeah. Of all the dirty deals that Commissioner Sarnoff did, this is probably one of the worst. As a member of the film industry in this community for 35 years, I, along with my colleagues, started before the CRA bought the building, saying, "This is a bad deal." We went there and looked at the building. Some of my colleagues wrote a white paper about the lack of good sense in buying that building and converting it to a movie studio. The original cost projected for that building was $11 million. You have spent almost $19 million, okay? It's not a movie studio; it's a post house. There's a big difference. Vice Chair Hardemon: What do you call it? Mr. Crespo: It's a post house. Post production. Chair Russell: Editing. Mr. Crespo: It's an editing facility. Tice Chair Hardemon: They've done some filming, though. I've seen -- Mr. Crespo: Yeah, but not -- Listen -- Board Member Gort: You can use it as a studio though. Mr. Crespo: -- you see kids out here on the street with a video camera, you can say they're doing filming too, but that's not filming. That's not really professional filming. The problem with that building is now even going to become a bigger problem. You got all the trains running along the west track -- the west wall of that building; all the Tri-Rail, all the Brightline. All of those trains are going to be running up and down that building. That's a sound problem. You know, you all forget that 1-395 is going to expand. Part of the deal of that property is you're using OMNI Community Redevelopment Agency Page 10 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 land that belongs to FDOT (Florida Department of Transportation). They're going to take up a chunk of that parking lot of that building. The other lot across the street for parking you don't own; they don't own; Eugene Rodriguez owns. Okay? So that building, over time, is going to be condensed and compacted where it's not going to be a lot -- it's going to be a lot less parking than there is today. Vice ChairHardemon: So you say, sell it now? Chair Russell: You 're not helping with our sales brochure to the movie industry. Mr. Crespo: No. I'm telling you, one, you need to sell it now; and two, you know, the problem that you have with that lease, whose fault is that? That's the fault of the City Attorney's Office. They're the ones who vouched for that lease. They're the ones who wrote that lease. They're the ones who told you all it's a good lease. And that lease screwed you. Right? And let's he honest about it. That's what happened. It was all because Commissioner Sarnoff said, `I want it my way." Okay? He screwed you. He screwed this community. All the talk about, "Oh, it's going to be a place where we're going to have young people coming from the community to work there." What'd you say? They don't want anybody there; of course not. They never did. We all knew that from the beginning that they didn't want -- that that was never going to be the true use of that building. This has all been a hoax, a sham, and a rip- off and you spent a lot more money than you should have, you know. And I'm only sorry that these two Commissioners aren't here, since they didn't know the history of this -- right? -- and they might be convinced by Mr. Sarnoff, who seems to be hanging around them like a -- you know a necktie, that maybe they ought to now pay attention to the crap that he tells them. But it's his fault for this problem -- Chair Russell: Okay, thank you. Mr. Crespo: -- and it's also the City Attorney's Office's fault Pr this problem. Chair Russell: Thank you, sir. Does anyone else have any comments on the movie studio? Stephanie ban Vark: Hello. My name is Stephanie Van Vark. How are you today? Do I need to give my address or anything? I actually have a different opinion. I am not in support of selling this building. I attended Miami -Dade Film School, and just getting back into the industry; so did my husband. He's been working in this industry for 20 years. And the frustration really is, many people who have been working in this industry have not had a chance to work in that building or be -- have access to any opportunities in that building. And why we were excited about the studio coming is because we thought they would be a partner; we'd be able to develop a relationship where they could help to grow a grassroots film industry here. We have talent here. We don't think so, but we do. We have talent here. We have people who are already making movies, i.e. "Moonlight," who --Young people from Liberty City, unfortunately, had to go to California to get the support and investment to come back and film in their backyard. We have talent here; we need to support that. So I do agree with Commissioner Gort that we need to look at opportunities of not only creating jobs, but creating opportunities, access that allows grassroots development and growth in this industry, and lack of incentives can't be the excuse. It just can't. We can't just offer education. We have to offer opportunities for people to have a livelihood here, especially since we have three film schools in this city. That's why I recently -- I did submit a proposal to the City -- to the CRA in hopes of figuring out how we might be able to develop a relationship with the current tenant to see if they'll open their doors and create opportunities for producers, directors, camera people, DP's (directors of photography); all the folks who want to live here, who want to work here, and want to be involved in this industry. So we OMNI Community Redevelopment Agency Page 11 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 hope you will support keeping the studio, but re -looking at the lease and the requirements that -- not necessarily the lease; the agreement -- that you re -look at the agreement of what they need to offer to this community. Chair Russell: Thank you very much. And in respond [sic], ifI could comment. You know, the time when you have that leverage to enforce or demand those sorts of cooperations and agreement was when that lease was negotiated, and I wouldn 't blame the City Attorney. It's a legally sound lease. It's just certainly not favorable to us. And so, we don't have the leverage to renegotiate the lease with them, and I went to them. That was the -- one of the first things I did was tour that studio, and they are there. They're actually -- they have a sound stage. They're producing a lot of MTV (music television) and Nickelodeon Tb' (television) shows for Latin America and otherwise, but it's not doing anything for the community. And I said, "Are you willing to open the doors -- education, local programming; give us some space within the studio?" There's really no interest, because they don't need to. The subsidy that they're getting to help is really just a great lease, so hopefully, they're interested in buying it; in which case, the industry will continue here, but we don't have the leverage to force them to do anything. We are basically a landlord. Ms. I an I ark: We can get involved in negotiations (UNINTELLIGIBLE)? Chair Russell: Honestly, no, we can't. That's -- legally, they're a subtenant. I wish that we could, and that -- Those are all things that could have been negotiated from the very beginning so that their subtenant, we can share in the profitability or benefits of them; none of that was negotiated properly. I think the best thing for us is to direct our executive director to entertain bids with eyes wide open to the legality of the lease and be very careful that we're not harming the business of the existing tenant, but let's entertain some offers. Let's see what's out there. Let's look within the industry, especially. Mr. Mayor, would you like to say anything about this? Mayor Francis Suarez: Yeah. I would just agree with what you're saying, with what Mr. Crespo said, and what the board has said related to this project. When I was a CRA board member; I agreed with sort of the Chairman's perspective -- the City Commission Chairman's perspective that -- and we invested in this. Whether it was a good investment or a bad investment or the right investment, we invested in it. It became a viable production studio for the kinds of programs that it produces, and now I think it's time for it to be sold so that that money can come back into the community to do a variety of other things, like affordable housing, which I think are so sorely needed in the Omni area. Chair Russell: Thank you, Mr. Mayor and former board member of the CRA. Mayor Suarez: Yes. Chair Russell: Is there any further discussion on the item? Board Member Gort: You had leverage in the price. Chair Russell: Say it again. Board Member Gort: You had leverage using the price. Chair Russell: Yeah. Board Member Gort: You can use it. Chair Russell: Thank you. Do you need an action of the board? OMNI Community Redevelopment Agency Page 12 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 Board l=lember Gort: Yeah. Mr. Min: The board wants to give a directive, that's fine. I think it's fairly clear, based on the discussion, but if the Administration needs something to memorialize, you can vote. Vice Chair Hardemon: Well, didn't we give direction at the last -- well, at a previous meeting, and that's why we're having this discussion? Mayor Suarez: I thought we did. Air. Walker: Yes. It was to study the options. Chair Russell: The potential and the options -- 11h. Walker: Potential options. Chair Russell: -- but not direct hina Mr. Walker: But there was not direction to actually put a `for sale" sign on the building. rice Chair Hardemon: So moved. Chair Russell: It's been moved -- Board Member Gort: Second. Chair Russell: -- by Commissioner Hardemon; second by Commissioner Gort. Any f rrther discussion? All in favor, say "aye." The Board Hembers (Collectively): Aye. Chair Russell: Any opposed? Motion passes. So you will investigate the potential to -- you'll entertain bids. You'll entertain offers, is what we're saying. Okay, thank you. OMNI CRA RESOLUTION(S) 1. OMNI CRA RESOLUTION 3483 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 THE CRA; WAIVING THE REQUIREMENTS FOR COMPETITIVE SEALED BIDDING AS NOT BEING PRACTICABLE OR ADVANTAGEOUS TO THE CRA; AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE AN AGREEMENT, IN A FORM ACCEPTABLE TO THE GENERAL COUNSEL, WITH SUPPORTING DOCUMENTS ALLOCATING GRANT FUNDS OF $1,800,000.00 FOR ACQUISITION AND $2,000,000.00 FOR REHABILITATION OF OMNI Community Redevelopment Agency Page 13 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 PROPERTIES LOCATED AT 1541 NW 1ST PLACE, 1535 NW 1ST PLACE, AND 1540 NW 1ST COURT, MIAMI, FLORIDA ("PROPERTIES"), ALL LOCATED WITHIN THE OMNI REDEVELOPMENT AREA, TO 16 CORNER, LLC; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE AN AGREEMENT, IN A FORM ACCEPTABLE TO THE GENERAL COUNSEL, ALLOWING ST. AGNES CHURCH COMMUNITY DEVELOPMENT CORPORATION TO RETAIN A PORTION OF OWNERSHIP OF THE PROPERTIES, ALL SUBJECT TO THE AVAILABILITY OF FUNDS. ENACTMENT NUMBER: CRA-R-18-0008 MOTION TO: Continue RESULT: CONTINUED MOVER: Wifredo (Willy) Gort, Commissioner SECONDER: Ken Russell, Chair AYES: Russell, Hardemon, Gort ABSENT: Carollo, Reyes Chair Russell: I'mgoing to move back to Item Number 1 on the agenda, please. Jason Walker (Executive Director/Omni Community Redevelopment Agency): Yes, sir. A resolution of the Board of Commissioners of the Omni Redevelopment District Redevelopment Agency, by a four fifths 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 City Code of Miami, Florida, as amended, as adopted by the CRA (Community Redevelopment Agency); waiving the requirements for competitive sealed bidding as not being practicable or advantageous to the CRA; authorizing the executive director to execute an agreement with supporting documents allocating grant funds of 1.8 million for acquisition and 2 million for rehabilitation of properties located at 1541 Northwest 1st Place, 1535 Northwest 1st Place, and 1540 Northwest 1st Court, Miami, Florida, all located in the redevelopment area, to 16 Corner, LLC (Limited Liability Corporation), in a form acceptable to the general counsel, subject to the availability of funds. t 'ice Chair Hardemon: Now, is this one of those four -fifths that are four out of the five body, or four -fifths where a unanimous vote for a body of three means that you're hired? You have a fourth -- you know what I'm saying? Chair Russell: Mr. Clerk? t ice Chair Hardemon: Because if you have four fifths that means that you are less than 100 percent of the body but greater than the majority versus a three out of three, which is 100 percent, which can -- considered to be greater than four -fifths. Barnaby Min (Deputy City Attorney): It is four -fifths of the body, not four -fifths of the members present. It's four -fifths of the body. Chair Russell: So even a unanimous vote would not get us there -- Mr. Min: Correct. Chair Russell: -- of the members present? OMNI Community Redevelopment Agency Page 14 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 ice Chair Hardemon: Just asking. Chair Russell: Fair enough, and that's why we have procurement rules. And so, Mr. Executive Director, did you want to make a presentation on the item, though, while we're here? Mr. Walker: I'll ask the board what their pleasure is. The team is here to present what -- This is a time -sensitive matter -- I see your head shaking "no" -- so what I would ask is that, through the Chairman of the Commission, Commissioner Hardemon, if we could put the two four -fifths items on the next City Commission agenda for the lunchtime so that we could take those two items up quickly while a full board? Board Member Gort: My suggestion is that you start doing this meeting at the Commission meeting. Chair Russell: Yes, that's what he 's (UNINTELLIGIBLE). Mr. Walker: Yes, that's what I'm saying. Board Member Gort: I know that's what you 're saying, but 1 think that's the way to do it. Chair Russell: Not on the City Commission agenda, but at the City Commission. Board Member Gort: You want a four fifths vote, that's the only way you're going to be able to do it. Mr. Walker: Yeah, at the Commission meeting. Board Member Gort: Yeah. Mr. Walker: Yeah. Chair Russell: Is that a motion, Mr. Gort -- Commissioner Gort? Board Member Gort: Move it, yeah. Chair Russell: Okay. It's been moved to defer both items -- Mr. Walker: I would defer 1 and 2. Chair Russell: --1 and 2, which are four -fifths. To which date? Mr. Walker: Mr. Clerk, next City -- Todd B. Hannon (Clerk of the Board): Be January 25 or February 8. Mr. Walker: January 25. Chair Russell: Is there a notification issue? A notice issue, I mean. Board Member Gort: Make it February 8, and you'll get a chance to talk to him. Mr. Walker: Let me -- Can we --? Board Member Gort: Let me tell you. I just got this yesterday -- OMNI Community Redevelopment Agency Page 15 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 Mr. Walker: February -- well -- Board Member Gort: -- all this. I haven't had a chance to really read all of it. Chair Russell: Is that true? Board Member Gort: And I don't know about the other Commissioners (UNINTELLIGIBLE). Mr. Walker: I don 't know when he received it; I know when we delivered it and when it was posted online. It was Thursday, I believe. Chair Russell: Thursday? Mr. Walker: Last week. Vice Chair Hardemon: Your issue, probably, is that you haven 't set another date yet; therefore, you can 't move this to a date that you haven 't set, because we don 't really have those -- You know, we pick dates for these meetings. But what you can do is go through the agenda, and you can not necessarily close this agenda, but suspend this to be reopened on the next date, and I think that should satisfy your notice requirement. Yes, no, maybe? Mr. Hannon: We would prefer that it be deferred or some kind of action taken. Mr. Min: If you just want to defer it to the next meeting, and then at -- Chair Russell: Fair enough. Mr. Min: -- the end of the night, you can call for a special meeting. Mr. Walker: That's fair. Chair Russell: There has been a motion to defer Items 1 and 2. We don't -- didn't set a date; we're going to say to the next Omni CRA meeting, and we'll defer the presentation as well, because we'll have to go through it again with the other Commissioners. Mr. Walker: Yes, sir. Chair Russell: So I apologize to those who came to make a presentation, but I think we'll be most efficient by doing it all together with them. Item Number 3. Mr. Hannon: I'm sorry, sir; did we call the question? Chair Russell: I'm. sorry. Yes. All in favor, say "aye." The Board (Collectively): Aye. Chair Russell: Any opposed? Motion passes. 2. OM NI CRA RESOLUTION 3484 TO BE DEFERRED A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("CRA"), BY A FOUR -FIFTHS (4/5THS) OMNI Community Redevelopment Agency Page 16 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 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 THE CRA; WAIVING THE REQUIREMENTS FOR COMPETITIVE SEALED BIDDING AS NOT BEING PRACTICABLE OR ADVANTAGEOUS TO THE CRA; AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE ANY AND ALL NECESSARY AGREEMENTS, IN A FORM ACCEPTABLE TO THE GENERAL COUNSEL; ALLOCATING GRANT FUNDS OF $400,000.00 TO MORGANS 2829, INC. FOR THE REHABILITATION OF THE PROPERTY LOCATED AT 130 NW 14 STREET, MIAMI, FLORIDA, SUBJECT TO THE AVAILABILITY OF FUNDS. MOTION TO: Continue RESULT: CONTINUED MOVER: Wifredo (Willy) Gort, Commissioner SECONDER: Ken Russell, Chair AYES: Russell, Hardemon, Gort ABSENT: Carollo, Reyes Note for the Record: For minutes referencing Item 2, please see Item 1. 3. OMNI CRA RESOLUTION 2973 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("CRA") AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE A NON -BINDING MEMORANDUM OF UNDERSTANDING ("MOU") WITH THE SCHOOL BOARD OF MIAMI-DADE COUNTY, FLORIDA, A BODY CORPORATE AND POLITIC EXISTING UNDER THE LAWS OF THE STATE OF FLORIDA ("SCHOOL BOARD"), IN A FORM ACCEPTABLE TO THE GENERAL COUNSEL, IN ORDER TO FACILITATE THE CRA'S RESPONSIBILITY TO DIMINISH SLUM AND BLIGHT WITHIN ITS BOUNDARIES, SPECIFICALLY BY COLLABORATING WITH THE SCHOOL BOARD REGARDING A MIXED -USE DEVELOPMENT PROJECT INCLUSIVE OF AFFORDABLE AND WORKFORCE HOUSING, A COMMERCIAL AND/OR RETAIL COMPONENT, THE EXPANSION OF THE (PREP SCHOOL TO BE LOCATED AT 150 NORTHEAST 19TH STREET, MIAMI, FLORIDA, THE IMPLEMENTATION OF A PARKING SOLUTION IN THE SURROUNDING AREA, AND FURTHER ENHANCEMENTS TO THE PHILLIS WHEATLEY SCHOOL PROPERTY LOCATED AT 1934 NORTHWEST 1ST COURT, 1801 NORTHWEST 1ST PLACE, AND 1942 NORTHWEST 1ST COURT, MIAMI, FLORIDA, AS MORE PARTICULARLY DESCRIBED IN THE MOU. ENACTMENT NUMBER: CRA-R-18-0001 OMNI Community Redevelopment Agency Page 17 Printed on 3/14/20I8 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 MOTION TO: Adopt RESULT: ADOPTED MOVER: Wifredo (Willy) Gort, Commissioner SECONDER: Keon Hardemon, Vice -Chair AYES: Russell, Hardemon, Gort ABSENT: Carollo, Reyes Chair Russell: Item Number 3, School Board. Adam Old: (Omni Community Redevelopment Agency): Good afternoon -- evening. So this item has come before you guys before; we had a brief discussion about it. The Omni CRA (Community Redevelopment Agency) is trying to work with the School Board of Miami -Dade County to develop their land holdings in the Omni CRA. So Lisa Martinez, from the School Board, is here today to talk, if you want. I can go through it or Lisa can go through it. Mr. Walker: Let Lisa go first, then you come afterwards. Mr. Old: Okay, great. Lisa Martinez: Good afternoon. Lisa Martinez, Miami -Dade County Public Schools. We are very pleased that this item is being contemplated. The elements that are being considered by the board today have also been discussed at the School Board and approved in September of 2017. In essence, what's being brought forth is the notion that we should be authorized to discuss our missions, be able to determine what key priorities we jointly share regarding not only bringing forth revenue to be able to be used within the community, but also to be able to identify key priorities that also address investing in our current schools and contemplating what we need to be able to do to think about the future of the development in educational options, exploring what we could be able to do with the 10 acres that we do own and how we could be able to work as partners with the CRA, and being able to integrate the priorities that are community priorities as well. We have brought forward action from the School Board's perspective to being able to partner with the County on this work. We are interested and eager to be able to say that the Omni CRA is also a partner in developing a plan on how to be able to approach the land that we own and maximize what we can be able to accomplish together. Chair Russell: Thank you, Ms. Martinez. I think this is a great potential partnership. I was glad to speak with Superintendent Carvalho about this early on, and with your help and the executive director and his team, it's so far moving forward very well. To have an assemblage like this near the core of downtown will never be repeated again, and for us to sit on it or bank it or squander it or break it up and sell it would be an absolute shame when it could be developed to the benefit of the community; not only for education, but for all sorts of mixed use, I think it can be tremendous. And if the CRA can bring efficiency and -- to the process, you know, we're glad to help. And if we can bring incentives that attract the right development, we're glad to help. And, you know, our mission of the CRA is not to create schools; that's your job, but if we can help through the elimination of slum and blight in doing partnerships to incentive development here in the right way, I think it's a win/win for all of us. So we're thankful to you for working together with us on this issue. Ms. Martinez: Mr. Chair, and I also want to be able to say this. The conversations that we've already had with your executive director and being able to explore how we work with the business community so that we can maximize moving forward those OMNI Community Redevelopment Agency Page 18 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 key community priorities link to workforce and affordable housing as we bring forward educational investments, as well, it's a win/win from our perspective, but we do -- it's -- the devil's into details, and we have to be able to sort that out, and this item merely brings forward the idea that we can be able to proceed in working out those details and bringing them forth. Chair Russell: Thank you. I'll open the floor for public comment on Item Number 3, a potential MOU (Memorandum of Understanding) between the Omni CRA and the School Board. Any comments from the public? Hearing none, I'll close public comment. Anything else -- Board Member Gort: Move it. Chair Russell: -- from your team? Vice ChairHardemon: Seconded. Mr. Old: So I can talk about this for 20 minutes or I minute. Board Member Gort: No, no. I just made a motion to move it. I mean, all we're doing is -- rice Chair Hardemon: And I seconded it. Unidentified Speaker: Is that a motion? Chair Russell: I'm. sorry; I didn't hear Commissioner Gort's -- It's been moved and seconded. Any further discussion on the dais? Board Member Gort: Well, my understanding, they going to be getting together with the Planning. My understanding is, in reading the -- whatever little I was able to read here, you're going to -- the 10 acres you're talking about is right here, all this building behind us and --? Mr. Walker: Yes, sir. Chair Russell: So behind the -- Board Member Gort: What's going to happen to the facility or the use of those building they have at this time? Mr. Walker: They would be included in the new development. Board Member Gort: They will be included -- part of the new project. It'll be part of the new project. Mr. Walker: Yes, sir. Board Member Gort: New TT" (television) studios and all that? Mr. Walker: Yes, sir. Board Member Gort: They might want to buy the studio; who knows. Ms. Martinez: So we are -- two years ago, the Superintendent brought forth an approach for -- a master plan approach in being able to look at the 10 acres. Some key priorities that we have to be able to make sure that we achieve is relocate -- OMNI Community Redevelopment Agency Page 19 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 making sure that we have offices; not relocating our offices, but making sure that we have office space -- Board Member Gort: Right. Ms. Martinez: -- making sure that we have addressed the parking needs of the community; making sure that we address the parking needs of the Adrienne Arsht Center as a community partner; contemplating and making sure that we keep the educational presence in the downtown area; and then making sure that we maximize what we can be able to earn for the district's mission and how that can be able to be for an endowment. And so, that's the plan that we've been working on; a lot of the pieces to the puzzle, and we think the Omni CRA can be able to really be a good partner within that. Board Member Gort: We can create the incentive to make it even more better. Thank you. Chair Russell: Thank you. It's been moved and seconded. Any further comment? All in favor, say "aye." The Board (Collectively): Aye. Chair Russell: Any oppose? Motion passes. i ery good. 4. OMNI CRA RESOLUTION 3007 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("OMNI CRA") DIRECTING THE EXECUTIVE DIRECTOR TO RENEGOTIATE THE INTERLOCAL AGREEMENT ENTERED INTO ON DECEMBER 31, 2007 BETWEEN MIAMI-DADE COUNTY, THE CITY OF MIAMI, THE SOUTHEAST/OVERTOWN PARK WEST COMMUNITY REDEVELOPMENT AGENCY, AND THE OMNI CRA, SPECIFICALLY TO REMOVE ALL CURRENT AND FUTURE OBLIGATIONS WITH RESPECT TO THE OMNI CRA'S CONTRIBUTION FOR CAPITAL IMPROVEMENTS AT MUSEUM PARK, AS CONTAINED IN SAID AGREEMENT; DIRECTING THE CLERK OF THE BOARD TO SEND A CERTIFIED COPY OF THIS RESOLUTION TO THE OFFICIALS STATED HEREIN. ENACTMENT NUMBER: CRA-R-18-0002 MOTION TO: Adopt RESULT: ADOPTED MOVER: Wifredo (Willy) Gort, Commissioner SECONDER: Keon Hardemon, Vice -Chair AYES: Russell, Hardemon, Gort ABSENT: Carollo, Reyes Jason Walker (Executive Director/Omni Community Redevelopment Agency): Item Number 4, Commissioners, is a resolution of the Board of Commissioners of the Miami Redevelopment District Community Redevelopment Agency, directing the executive director to renegotiate the interlocal agreement entered into on December 31, 2007 between Miami -Dade County, the City of Miami, Southeast/Overtown Park West Redevelopment Agency, and the Omni CRA; specifically to remove all current OMNI Community Redevelopment Agency Page 20 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 and future obligations with respect to the Omni CRA's (Community Redevelopment Agency) contribution for capital improvements at Museum Park, as contained in said agreement; directing the Clerk of Board to send a certified copy of this resolution to officials stated herein. Chair Russell: Thank you, Mr. Executive Director. This is an item we 've been working on with several -- for several months. We had originally talked with Commissioner Carollo about this, because it had to do with Museum Park. And when we released the $2 million, this was meant to go hand in hand; was my original handshake with him. I'd like to see that come to fruition at this point, which, of course, will free up $28 million that we can use toward that affordable housing goal that we just set. Is there anyone from the public that'd like to speak on this item? Hearing none, I'll close public comment. Commissioners, I'll open up for discussion or welcome a motion. Board Member Gort: My understanding, by doing this, we'll he -- the funds that should be used to improve the park, the $2 million already been given in order to improve that part of the park, and then you can -- that could be renegotiated. Who do we renegotiate it with, the County? Chair Russell: The $2 million? Board Member Gort: No, the rest. Chair Russell: This is simply an agreement between the City and the CRA. Board Member Gort: CRA. Chair Russell: We would need to open up the global agreement to amend it with all parties -- Board Member Gort: Okay Chair Russell: -- but it doesn't affect any of the other parties, besides the City and the CRA; am I correct? Mr. Walker: Correct. Board Member Gort: Move it. Chair Russell: It's been moved. V ice Chair Hardemon: Have you ever opened up a box of butterflies? Chair Russell: I think it's more like punching a hive of bees. Vice Chair Hardemon: They sting back, right? I don't think this is going to be as easy as it seems. Chair Russell: Why you got to jinx it? We were just about there. Vice Chair Hardemon: No, no. I'm not talking about the resolution. Chair Russell: I'm kidding. I'm kidding. I know exactly what you're talking about. Vice Chair Hardemon: The resolution -- yeah. And, you know, from my experience -- I was having a conversation earlier today in a meeting, and I described the OMNI Community Redevelopment Agency Page 21 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 capping ordinance that the County unilaterally put on the Southeast Overtown/Park West CRA that basically stated that after a certain year that the CRA would only get a certain level of revenue back, no matter how much revenue it generated. So it was a slap in the face of the Redevelopment Act, in the sense of we created it to get 95 percent of the TIF (Tax Increment Funds) revenue to put money back into the space. And so, it basically says -- I'rn going to pick a number -- after the year 2012, whatever revenue you were generating on that year, jar the life of the CRA, you're only going to get that amount of revenue. So all the extra revenue goes where it was typically going to go. When you couple that with the clawback agreement, what I saw was a deliberate attempt of Miami -Dade County to take revenue from the CRAs to put back into their general fund, and in fact, not allow us to satisfy our redevelopment plan. I don't see how opening up anything with them is going to come to anything that is good for us, because -- There was a -- I don't know if it was an African proverb or a story or something to the -- someone knows it, and they're going to -- and feel free to correct me -- but it was something to the extent of say, a rabbit wanted to get to -- from one side of the river to the other, and so he got on the back of a snake, or something to -- Chair Russell: No; scorpion on the back of a frog. Vice Chair Hardemon: It's a scorpion on the back of a frog? Chair Russell: That's it. ice Chair Hardemon: Right. Okay, so tell the -- so tell it. Chair Russell: That a scorpion will always do what a scorpion does. Vice Chair Hardemon: Said, "I'm a scorpion" -- right? `I'm a snake. I mean, this is what I do." You know, it was naive of us to believe that they would do anything different, because they're just in the position where they need these dollars, and they'll forsake a neighborhood -- I say, "neighborhood," because that's who they're forsaking and not necessarily redevelopment agency, but it's the neighborhood that they're forsaking -- to keep the money that they have. You know, this has been an issue that we've discussed long, long again [sicJ. I admire the fact that we want to create these dollars. And I'll tell you that there are so many interests that are involved in this, and people have a different philosophy about how this money comes about. I do believe that this money is obligated, and the only way that you're going to be able to de -obligate it is going to either be opening this thing up or get the entities that will benefit from it to agree that they're not going to ask for the dollars - - or they wouldn't tvy to -- you know, try to force our hand for us to pay those dollars. Mr. Walker: We can go that way, too. Vice Chair Hardemon: And I -- Chair Russell: But that would hinder us from being able to go for loans on that money, because the debt will still remain outstanding; am I correct? Mr. Walker: Not if we have an instrument to show the bank that there is a -- Chair Russell: They promised us they won't ask JOr it? Mr. Walker: Yeah. And now that there's a new Manager and new Mayor, there may be interest in that way. OMNI Community Redevelopment Agency Page 22 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 Chair Russell: Well, that's news to me. The last I had heard from the City Attorney was that this different method -- what do they call it? A different type of agreement that -- BarnabyMin (Deputy City Attorney): Like a subjugation. Chair Russell: Subjugated agreement. That was it. Mr. Min: Subordination. Chair Russell: Subordinated. That subordinated agreement might achieve the goal, but may not be enforceable down the road; is that --? Vice Chair Hardemon: Well, I think because at any time, someone could choose another direction. It's like having an unenforceable agreement. I mean, we agree -- it's a gentlemen's agreement. And so, I understand what you're saying. Chair Russell: I just want it to hold water. Vice Chair Hardemon: But I also know that we're probably going to -- Since the Omni CRA is considering expanding, I mean, these things are going to come up anyway. Chair Russell: We're going to be talking to the County. Vice Chair Hardemon: They're going to want to open it, so when I consider those two issues together, I mean, I'll support you in doing this. I just know that, you know, we got to -- we have to prepare for what is going to happen, and this battle is not just in this CRA, but it's in other CRAB that -- we're going to have a real uphill battle with trying to manage what damage it is that the County's going to try to do to these agencies -- Mr. Walker: Our -- b ice Chair Hardemon: -- that the State isn't doing itself Mr. Walker: I hear what you're saying, and you said that to me before. And our goal is to make this as narrow a focus as possible and go to the County with this resolution. We've already sent it to a County Commission to sponsor for us,- have the 13 County Commissioners vote on it, vote to say they want this money to go to affordable housing. b 'ice Chair Hardemon: Because if they really want to do affordable housing, they would reduce their sharing agreement, or something to that extent. Mr. Walker: This, I think, is easier -- Vice Chair Hardemon: I know. That's true. Mr. Walker: -- to get done. Chair Russell: By -- yes. By coupling it, as we've done here tonight, with a goal of creating affordable housing and a method for freeing up the funds, since this doesn't affect them directly, the pressure will be on to move forward with it. Mr. Walker: Yes. OMNI Community Redevelopment Agency Page 23 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 Chair Russell: I think we're going to have to work together with them, regardless, for expansion, extension, you name it, and they will have their asks. There will be horse trading that goes on. As long as it's within the mission of the CRA and within the bounds of the CRA, I'm open to discussing, because we're going to need their help to extend and expand, if that's the will of the Commission and this board. t 'ice Chair Hardemon: So you have your second. Chair Russell: Thank you. It has been moved and seconded. Is there any further discussion? Any comment from the public? Hearing none -- Hello, Mr. Crespo. Al Crespo: I only want to make one small point, and I'm going to make this point throughout the year. You're dealing with a scorpion. You all acknowledged, scorpions do what scorpions do. Beware of Commissioner Sarnoff. Vice Chair Hardemon: This is the third time you brought up him. He's going to walk in through the doors. You can't -- Mr. Crespo: I don't care. Lice Chair Hardemon: -- he 's not here to defend himself: Mr. Crespo: I don't care if he's sitting right there. ice Chair Hardemon: But he -- at least he'll be here to defend himself: Mr. Crespo: I didn't have any problem calling him out last Thursday when he was sitting in Commissioner Carollo's office. Vice Chair Hardemon: He needs to defend himself. Mr. Crespo: So I don't have any problem saying he's a snake, you know. He is a snake, and he's a scorpion, and he has intentions on coming back, and he will do whatever he can do to muddy the waters, and do dirty deeds behind people's back. So I'm just letting you know. And I'mgoing to let everybody continue to know, because I think this needs to be reinforced on a regular basis that anything you all do, that snake is going to be somewhere in the background. So just be aware, you know. And quite frankly, Mr. Chairman, you're not -- you've not enamored yourself with the Mayor of Miami -Dade County and his desire that you give CRA money to the Frost Museum, you know. Let's not forget that incident. So, you know, some of these people have long minds and long memories and do like to payback, so beware of messing with the County, because they're bigger; badder [sicJ, and meaner. Lice Chair Hardman: That's the County. Mr. Crespo: At the County., Vice Chair Hardemon: The County. Chair Russell: Thank you, Mr. Crespo. Any other comment from the public? I'll close public comment. All in favor, say "aye." The Board (Collectively): Aye. Chair Russell: Any opposed? Motion passes. OMNI Community Redevelopment Agency Page 24 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 5. OMNI CRA RESOLUTION 3485 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("CRA") SETTING THE GOAL OF ALLOCATING ONE HUNDRED MILLION DOLLARS ($100,000,000.00) OF REVENUE FROM TAX INCREMENT FUNDS ("TIF") AND ANY AND ALL OTHER CRA REVENUES TOWARDS AFFORDABLE HOUSING DURING THE REMAINING LIFE OF THE CRA; DIRECTING THE CLERK OF THE BOARD TO TRANSMIT A CERTIFIED COPY OF THIS RESOLUTION TO THE OFFICIALS STATED HEREIN. ENACTMENT NUMBER: CRA-R-18-0003 MOTION TO: Adopt with Modification(s) RESULT: ADOPTED WITH MODIFICATION(S) MOVER: Wifredo (Willy) Gort, Commissioner SECONDER: Keon Hardemon, Vice -Chair AYES: Russell, Hardemon, Gort ABSENT: Carollo, Reyes Chair Russell: ,\lr. illavor. Mayor Francis Suarez: 1-Ir. Chair. Chair Russell: Is there something you would like to address the board with? Mayor Suarez:: Yes, please. And I'm sorry I wasn't here for the public comment section. I tried to -- Chair Russell: We haven't -- we actually haven't done it. Mayor Suarez: Okay. So then, if you don't mind? Chair Russell: No, please. Mayor Suarez:: Thank you. I just would like to address Omni CRA's (Community Redevelopment Agency) Resolution Number 5, which is a resolution of the Board of the Omni CRA, setting the goal of allocating S100 million of TIF (Tax Increment Funds) revenue for affordable housing. Tr'`e have been discussing at the City Commission and obviously with the -- you know, as a CRA Board, how we deal with this issue, which is one of the most pressing issues in the City of Miami, and I just wanted to come here in support of this resolution. I think it's incredibly well-done. I think this is -- these are real dollars that, if my understanding is correct, do not require an extension of the current CRA. I mean, this is within the current CRA envelope, if I'm not mistaken. And I just wanted to come here -- as a former CRA Board member and now Mayor, I still view my role as someone who can provide input and a perspective on the (RA Board, with your permission, and I just wanted to come here in support of that item. Chair Russell: You miss it, don't you? Mayor Suarez: I sure do, especially when you 're doing something this good. Chair Russell: Thank you very much. And I'd certainly -- I think the credit here OMNI Community Redevelopment Agency Page 25 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 goes to our executive director and his team for really, you know, finding that these funds are accessible. It's not at our fingertips. It's not a slain dunk or a homerun. For example, the sale of the MEC (Miami Entertainment Center), some of the other items on this agenda that would free up money, are crucial for that, and it could be done without an extension, if a lot of those factors fall into place, but it's -- we don't have it existing within our projected TIF right now. It's all spoken fbr for various things. This is the loans we 're going out jor; and if the extension happens, we can go a lot further. But in adopting some of the grand jury report recommendations, this allows us to far exceed 10 percent of our projected revenue as an expenditure on affordable housing; and so, this is a really good thing in that sense. But to put it in perspective, Commissioner Hardemon's amendment to the bond that was passed in November to do $100 million of affordable housing citywide was tremendous. To think that we actually have the power within the CRA to do that within the CRA boundary is tremendous. So -- Mayor Suarez: And with the indulgence of the board, I'd just like to say that I'd like to put this in the 60-day report that the Commission has asked the Administration and the Mayor to prepare, because I think this is part of the whole package of resources that can be brought to bear to deal with this very pressing problem in our city. Chair Russell: Yes. And I think even if these two gentlemen were here, we 've heard them say it already on the dais at Commission, that affordable housing and the crisis of affordable housing is definitely at the top of the list unanimously amongst these Commissioners, and we may all have different ways to look at it, but we're creating the funds necessary to tackle the problem, and I think that's step one. Mayor Suarez: Agreed. Chair Russell: So I -- Jason Walker (Executive Director/Omni Community Redevelopment Agency): Mr. Chairman? Chair Russell: Yes, Mr. Executive Director. Mr. Walker: On this item -- I'm sorry; we're not at the item yet. You gave the (UNINTELLIGIBLE). Chair Russell: I was about to actually open this item up. Since the Mayor's brought it up, we're just going to take it up as the first issue. So, Mr. Executive Director, if you could take up Item Number 5, please. Mr. Walker: Yes. Item Number 5, a resolution of the Board of Commissioners of the Omni Redevelopment District Community Redevelopment Agency, setting the goal of allocating $100 million of revenue from tax increment funds toward affordable housing during the remaining life of the CRA; directing the City Clerk of the Board to transmit a certified copy of this resolution to the officials stated herein. The Administration would like to add an amendment to this resolution; that it say not only TIF funds, but any other CRA funds. Chair Russell: So this is Item Number 5. One, two, three, four -- fifth line down, it says, "$100 million of. revenue from tax increment funding." You'd like to add the sentence to say the phrase -- Mr. Walker: "Other funding sources." OMNI Community Redevelopment Agency Page 26 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 Chair Russell: -- "or other funding sources." Board .11ember Gort: Hove it. Chair Russell: It's been moved by Commissioner Gort. Tice Chair Hardemon: Second. Chair Russell: Seconded by Commissioner Hardenn. You accept the amendment of adding `other funding sources?" Board Member Gort: rTith the amendment -- as amended. Chair Russell: As amended. I'll open the floor for public comment. Anyone? Okay. Applaud? Thank you. Any further discussion on this item? Alt in favor, say "aye." The Board (Collectively): Aye. Chair Russell: Any opposed? .Motion passes. Manor Suarez: Congratulations. Chair Russell: Thank you. (Applause) Board Member Gort: Is that it? Chair Russell: It's only intention so far. Some of the other items we have here are going to help us fee up that money. 6. OMNI CRA RESOLUTION 3486 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("CRA"), WITH ATTACHMENT(S), AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE THE FIFTH AMENDMENT TO THE ECONOMIC INCENTIVE AGREEMENT ("INCENTIVE AGREEMENT"), IN A FORM ACCEPTABLE TO THE GENERAL COUNSEL, WITH NR MAX MIAMI, LLC, A FLORIDA LIMITED LIABILITY COMPANY ("DEVELOPER"), REMOVING THE CONDITION THAT THE DEVELOPER COMPLETE THE COMMUNITY BENEFIT IMPROVEMENTS AS DESCRIBED IN THE ORIGINAL INCENTIVE AGREEMENT ("COMMUNITY IMPROVEMENTS"); INCREASING THE YEARLY CAPACITY OF TAX INCREMENT FUNDS PROVIDED TO THE DEVELOPER FROM $750,000.00 TO $812,500.00 PER YEAR; AND FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO ACCEPT A PAYMENT FROM THE DEVELOPER IN AN AMOUNT NOT TO EXCEED TWO MILLION DOLLARS ($2,000,000.00) FOR THE REMAINING VALUE OF THE COMMUNITY IMPROVEMENTS LESS ANY AMOUNT ALREADY EXPENDED BY THE DEVELOPER PURSUANT TO THE INCENTIVE AGREEMENT WITHIN THIRTY (30) DAYS. ENACTMENT NUMBER: CRA-R-18-0004 OMNI Community Redevelopment Agency Page 27 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 MOTION TO: RESULT: MOVER: SECONDER: AYES: ABSENT: Adopt ADOPTED Keon Hardemon, Vice -Chair Ken Russell, Chair Russell, Hardemon, Gort Carollo, Reyes Chair Russell: Item Number 6. Jason Walker (Executive Director/Omni Community Redevelopment Agency): Item Number 6, a resolution -- sorry -- of the Board of Commissioners of the Omni Redevelopment District Redevelopment Agency, with attachments, authorizing the executive director to execute the fifth amendment to the Economic Incentive Agreement, in a form acceptable to the general counsel, with NR Max Miami, LLC, a Florida Limited Liability Company, removing the condition that developer complete the community benefit improvements as needed [sic] in the original Incentive Agreement; increasing the yearly capacity of tax increment funds provided to the developer from 750,000 to 812,500 per year; and further authorizing the executive director to accept a payment from the developer, in an amount not to exceed $2 million for the remaining value of the community improvements, less any amount already expended by the developer, pursuant to the Incentive Agreement, within 30 days. Chair Russell: Thank you, Mr. Executive Director. Are there any questions from the dais on this item? Board Member Gort: You're going to have to explain it to me; I don't understand it. Chair Russell: Walk us through how we got here, please, in laymen's terms. Board Member Gort: Are we giving money and then they're going to give us back, and they're not going to complete the --? Isiaa Jones (Midtown/Omni Community Redevelopment Agency): So the original agreement contained portions of the CRA (Community Redevelopment Agency) providing an Economic Incentive Agreement to the developer. Board Member Gort: Right. Ms. Jones: They've expended over -- way over a hundred millions of dollars in this project in the CRA, which has contributed to the development of the area. Now, the portion of this item that is on the agenda right now to date deals with the removal of the community benefits portion of the agreement. So they've had a number of problems with the City of Miami and Miami -Dade County in addressing the permitting -- Board Member Gort: Right. Ms. Jones: -- and getting through the plans and permitting phase of that community improvements portion, which is just pretty much -- it was intentional; in the beginning, more of a widening the streetscape, fixing up the sidewalks, widening of the sidewalks, and so on. However, that has been far removed from what, you know, the City and the County's now requesting. So instead of going through that, we're -- the CRA is asking, "Give us the money so we can do other projects that we have pending and more pending on this item instead of the developer completing that OMNI Community Redevelopment Agency Page 28 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 portion of the agreement." Board Member Gort: My understanding in reading this, they're going to get incentive of seven hundred and some -- $700,000, and they're going to go up to $800, 000 for how many years? Ms. Jones: So the other portion of this item also speak to -- So, every year the CRA would reimburse the developer $750,000 up until 2030. However, there have been significant delays in the start of the project; the community streetscape improvements that were to had, and there have been a series of delays; not only from the construction side, but also from the building and just, you know, getting approvals and so on. So in order to give what we initially said we would give -- Board Member Gort: Right. Ms. Jones: -- we have to adjust that number from 750,000 per year to 8 12,500 per year to accommodate what we'd originally said we would do. Mr. Walker: So, basically, by the time it hits 2030 -- and we said we would have given them $7 million, I think, by 2030 -- because they're delayed, if we give them up to the 750 by 2030, they may not get -- they won't get to the 7 million that they were promised. So if you increase the amount from 750 to 812, that would put them on track to get the original amount that was stated, and they were not able to achieve because of the delays. And I will point out that this agreement is a previous agreement to this Administration. Vice Chair Hardemon: So on page 5 of their agreement, there's a commencement and completion of project. The owner acknowledges that the prompt development of the project, as well as the community improvements by the owner, is a material inducement for the CRA to enter into this agreement. In the event that the owner does not commence construction of the project and community improvements by June 30, 2015 and does not substantially complete the project and the community improvements by January 1, 2017, then the maximum amount of incremental TIF that the CRA shall pay to the owner pursuant to Section 3.1.1 shall be reduced by 10 percent for each six-month period that the owner has failed to commence construction or complete construction. For example, if the owner substantially completes the project on August 1, 2017, i.e., seven months after the deadline set forth above, then the total amount of the incremental TIF payable to the owner will be reduced to 22.5 percent of the incremental TIF, i.e., a reduction of 10 percent; furthermore, the owner shall not be entitled to any portion of the incremental TIF until the owner provides the CRA the Certificate of Completion for the community improvements. Community Improvements: The CRA acknowledges that the lack of adequate pedestrian friendly sidewalks and the existence of a street grid that fails to facilitate connectivity with adjoining neighborhoods will substantially inhibit the development of potential of the redevelopment area. The CRA agrees that the completion of this community improvements will serve as a necessary step to revitalizing the development area, subject to the owner completing the community improvements. The CRA will pay to the owner annually a portion of the incremental TIF generated from the project each calendar year as follows: The -- from the very, very beginning -- and, I mean, they signed this. Someone has to be here from them, but they understood -- there was at least a penalty that was built into them and the timeliness of this project. Ms. Jones: I agree. However -- Vice Chair Hardemon: Right. Let me finish. What I'm saying to you is this: What has been described to us is an agreement for us, as the board, to increase their TIF OMNI Community Redevelopment Agency Page 29 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 revenue per year so they can meet the $9 million that they were expecting, because they were not able to complete the community benefits. And, in fact, the project is not where it needs to be at the time that it needed to be, which is directly in the face of what the agreement said. The agreement said that the TIF revenue will be decreased, because that's the incentive. That's the incentive to get the project completed, which was important. But also important in the language -- at least that's written in this agreement -- is that there was a community benefit. Now, I'll be the first to say that the benefit to the community in this is, I mean, minimal, extremely minimal; di minimus, even. And so, I don't understand how we should be expected to accept a $1.5 million payment to alleviate them of their responsibility of creating a community benefit, and then increase their TIF so that they meet -- or receive the amount of TIF that they expect to get at the end of the term. I would think that in this position that they're in that they, one, are due less TIF; two, owe us a community benefit; and thus, puts them in a very bad position to be in, because they're not at least getting the money that they expected. Now, I don't know if $9 million makes a difference to a $100 million project, but do know that 1.5 million compared to 100 million plus that they've invested is not a lot of money. And so, I just don't see how, you know, we're coming to at least the deal that makes sense for us as well. Now, your goal is to create more revenue for affordable housing, so I can understand why you said, "Well, let's try to take some of this money and create the housing that we need to create." Well, then, why are we accepting 1.5? This -- if we're agreeing to something, then maybe we should be accepting $5 million, $6 million; and at the end of the day, let their net TIF revenue come out to, you know, $4 million, $3 million versus 8 or 9, because they could do two things. They could look at this and say, "Okay, we're going to get less revenue, but we'll -- if -- we have to make this improvement that's going to cost then a lot of money, or we'll just take this agreement, take the payment to -- andl haven't discussed this with any of them -- but make the payment to the CRA that it's expecting of more dollars, and we can give them the increased revenue that they're considering, but if you -- Board Member Gort: Excuse me; I'm going to take two minutes. Chair Russell: I'm sorry? Board Member Gort: I need to take a two -minute break. Chair Russell: Of course. We're going to for two minutes, please. Recess for five. Later... Chair Russell: We'll reconvene the meeting; if you could come back to your seats, please. Thank you. Commissioner Hardemon, you were making some comments and suggestions regarding -- Do you have further comment on the issue? t 'ice Chair Hardemon: No. I mean, I think I was -- I think I -- Chair Russell: You were clear? Lice Chair Hardemon: Yes. Chair Russell: Mr. Executive Director -- and I believe that the developer is here. I think the two big questions we have to ask is -- are, why wasn't the community benefit delivered? And why were they late in coming to market? I think the assertion here is that it's not the fault of the developer, and that's why we're taking the money back instead of holding their feet to the fire on the community development; because they simply can't do it? Is that what -- is that my understanding, or has there been a policy change on what we want; that community OMNI Community Redevelopment Agency Page 30 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 development is not -- that community benefit is not relevant anymore, or we want to go a different direction; which is it? Mr. Walker: Well, this -- when this was approved, the original community benefit was a streetscape project; it was widening the sidewalks, landscaping, putting in medians. When they went to the County and to the City to pull permits for that work, it became a Public Works project and not a landscaping project or a streetscape project. And the Public Works project, basically the City and the County said, `If you touch the street, you have to fix the underground pipes." So that cost would soar more than the $2 million in community benefit that they were planning. And if there was anything wrong underneath additional, you know, stuff that needed to be done, the CRA would be on the hook -- we asked the City and the County -- for any cost overruns of anything that may happen, so we decided that it was the best interest. Also, because you have an undeveloped piece of land adjacent to the street that will be developed someday. Chair Russell: That's the land between their project and the cemetery; correct? Mr. Walker: Correct. Chair Russell: That -- all of that large -- Mr. Walker: Correct. Ice Chair Russell: -- undeveloped land? Mr. Walker: Correct. So that project will also be developed someday -- soon, hopefully -- and they would have to go in and do this job also, anyways. Chair Russell: They would tear up the street just to build their own project? Mr. Walker: Yes. So we felt that the money that was going towards this project for the streetscape, the project had ballooned into a Public Works project that was not contemplated by us, the CRA, or the developer; that the best strategy would be to just have the developer write us a check, minus the cost that he's already incurred, and then we could use that $1.5 million in another area for infrastructure projects. Chair Russell: What I'd just like to make sure -- and I think what Commissioner Hardemon is -- Chairman Hardemon's getting at, as well, is that we're not letting someone off the hook of their responsibility, both -- especially financially, when we have a mission to accomplish Mr. Walker: I don't think so. Commissioner Hardemon and I had a brief discussion about this a couple minutes before the meeting. I don't think so. He has -- he thinks that we could possibly get more; and if we want to try that, I guess we can, but, you know, I'll have -- defer to the developer and get your point of view on this, where we are. Nir Shoshani: So my name is Nir Shoshani. I'mthe developer for -- Mr. Walker: Can you pull the mike up to your --? Mr. Shoshani: Sorry? Mr. Walker: Pull the mike up to your -- Mr. Shoshani: Okay. Better? OMNI Community Redevelopment Agency Page 31 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 Board Member Gort: Sounds better. Mr. Shoshani: I'm definitely, not a public speaker. So, Commissioner, this process -- this negotiation started in 2013. When you see the area today, it is not what it was in 2013. This is the only TIF agreement I believe that the CRA -- the Omni CRA put together, or at least a -- until 2016, I believe. It's the only TIF. The TIF is based 50 percent on the construction of Canvas, but we started the TIF negotiation when we purchased the filling station and we started to build the area, the area that we're dubbing the Arts & Entertainment District. The other 50 percent of the TIF was for the beautification of 17th Street. The logic behind that was to connect North Miami Avenue to the Publix on 18th and to sort an avenue very similar to what you have on 14th street, what the CRA developed on 14th Street in 2012. And it took us 18 months to get the permit; 18 months to get the construction permit for Canvas, for the 513-unit building that was part of the 50 -- which was the 50 percent of the TIF agreement. Within those 18 months, when we saw that we couldn't comply with the dates of the agreement, is when we asked for the amendments, and I believe that the second and third amendments are all about the date changes or requests that we made to the CRA, because, beyond our powers, the City did not give us a building permit for 18 months. In addition to that, on the improvement, on the beautification of 17th Street, we worked -- we had three years, which I have here, if you'd like to see -- but we have three years of trying to work with the County and City in order to beautify that street; half of it. Everything that's Northeast 1st to the west is County, and Northeast 1st to the east is City. And we had 49 meetings and 7 plan revisions in order to accommodate what eventually became a Public Works project, so I brought some renderings of what the street is now with what -- and what it was supposed to be after the beautification, but after the seventh revision from the County and from the City, it became a Public Works project. Vice Chair Hardemon: What does that mean, "a Public Works project"? Mr. Shoshani: That means -- Vice Chair Hardemon: Because you're -- Mr. Shoshani: Yes, sir. Vice Chair Hardemon: -- making improvements to the street. That's something that Public Works would typically do for us. So from the beginning, it seemed to me that it would be a Public Works project, so what do you mean by "It is a Public Works project"? Mr. Shoshani: It became all about drains and trenches, and everything beneath the street. This was supposed to be a beautification process -- Chair Russell: Cosmetic. Mr. Shoshani: -- to try -- I'm sorry? Chair Russell: You had assumed it was a cosmetic project, milling and resurfacing at the most; sidewalk widening, trees, that sort of thing. Mr. Shoshani: That was the CRA's request. We built the beautification process as per the CRA specifications. So the specification was to build this avenue that would connect Biscayne and North Miami Avenue. That was the idea behind it. But as per the revisions and as per Public Works, it became more of an infrastructure project, which was not the intent, and that is when we had the conversation, and the OMNI Community Redevelopment Agency Page 32 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 Chairman of the CRA asked if, instead of that -- which would happen in any case when construction will happen -- if we would just pay the remaining of the $2 million to the CRA so it can go to probably better priorities within the area. Chair Russell: The TIF agreement that was originally negotiated with you, that rebate of tax, that incentive that would draw you to the area, was that established as a intended flat rate amount that by the end that you'd get to a concern number, or was it negotiated just as an annual rebate, no matter what that ended up being? Mr. Shoshani: Canvas will generate around $4 million in tax increments, starting this year. The idea was to get the 9 million from the get -go, which was separated between the $2 million in improvement, which was cash money. Chair Russell: The seven. Mr. Shoshani: The 7 million within the life of the CRA. When we saw that the 18 month of the building permit and the improvement took so long, the process was so extensive, that's when we came to the CRA, which had -- which could have told us "no," regarding the $9 million, because it wasn't within, but they did -- I believe, because of our activities in the area, because of everything we've done in the last the Jive years to the Arts & Entertainment District, to the Omni CRA, I believe that that's why they agreed to bill those additional $7 million into the 812,000 instead of the 750. Vice Chair Hardemon: So have you, in fact, built units as such, 512 units, before in the City ofMiami? Mr. Shoshani: Yes, sir. We're delivering in May. Vice Chair Hardemon: No, no. My question is to you, have you ever before this time built any projects that are this size in the City ofMiami? Mr. Shoshani: No, sir; multifamily. Vice Chair Hardemon: Multi -- Mr. Shoshani: Multifamily, but not development; not from ground up. We had a lot of units in Liberty City. We had close to a thousand units in Liberty City, but those were not ground up. Vice Chair Hardemon: How long did you expect the procurement process --? I'm sorry. How long did you take -- did you expect the -- Board Member Gort: Permitting. Vice Chair Hardemon: -- permitting process to take? I hear you're saying it took 18 months, but what's a reasonable amount of time for permitting to take on this sort of structure? Mr. Shoshani: Well, we took a private provider; that at the time, we were told it would take us six months, so that's what we estimated. At the end of the day, the private provider took the same -- it cost another $250, 000, but it takes the exact same amount as the City would. So we were very surprised when we found ourselves with the 18 months, but that was the fact. T Chair Hardemon: Throughout the process, you were getting comments from the City and you were responding to those comments on the permitting process? For OMNI Community Redevelopment Agency Page 33 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 instance, you --I mean, you had a -- Mr. Shoshani: It takes -- Vice Chair Hardemon: -- For a building like this, it's a tremendous amount of plans that you -- Mr. Shoshani: -- time, Commissioner. If -- Vice Chair Hardemon: No, I realize that. Mr. Shoshani: I mean, I think it's a separate conversation, if you'd like, but there is -- there were a lot of issues, and not only comment -based. Vice Chair Hardemon: The reason I'm asking this is because I've seen that when people make comments about the permitting process, although it does take some time, sometimes people have different frames of reference. Some may say from -- I mean, you could have been in design. You could have -- from the moment that you turned in the actual full plans. Like there are a number of different things that kind of come to my mind, but all these are things that I would expect a developer to anticipate that it would take some time to create what you're looking for and to get the approvals before you -- or to actually get the approval, so -- Mr. Shoshani: We might -- Vice Chair Hardemon: -- I'mnot surprised that it -- you know, it took a little bit more time. What I'mmore surprised of is that the benefit was not created, and then the ask of us is to do better than what you contracted for. And so, if the ask is for us to do better than what you contracted for, then why shouldn't the CRA do better than what it had contracted for? Mr. Shoshani: I need that question again. Vice Chair Hardemon: The agreement says that you should get less TIF. The -- not this agreement that we're -- not what we're considering right now. What we're considering right now says that you'll get more TIF than what the agreement that's in place allows for you to have. The agreement that allows -- that's in place right now says that there's a reduction in your TIF because of these delays, because the project was not ready; it's not where it needs to be. And so, what you're asking of us is to give you the whole TIF, despite the fact that the agreement says otherwise. And so, what I'm saying is, since the agreement says otherwise, why isn't that the CRA should get a better benefit so that it can provide more benefits to other people in the neighborhood? Mr. Shoshani: I think we need to -- Vice Chair Hardemon: Because also -- Mr. Shoshani: Yes, sir. Vice Chair Hardemon: -- another thing -- I mean, besides the community improvements, you also had a -- and I can't tell you, you know, you had a first source hiring program agreement; you know, all kinds of things that had different goals that you were supposed to use, commercial -- Mr. Shoshani: Which we met. OMNI Community Redevelopment Agency Page 34 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 T ice Chair Hardemon: -- (UNINTELLIGIBLE) efforts. Mr. Shoshani: Which we met. Vice Chair Hardemon: I mean, I hear what you're saying, but I don't have anything in front of me that really, you know -- Mr. Shoshani: But the CRA does. ice Chair Hardemon: -- tells me that. But what I'm saying to you is that, so there are a number of things that were agreed to for you to get this benefit. Mr. Shoshani: Yeah. Vice Chair Hardemon: And if you're here asking for the benefit, despite having spent so much money, it either means you need the benefit, or it makes sense to ask for it, because it's money on the table. A good businessman doesn 't leave money on the table. Mr. Shoshani: I think, Commissioner that you need to look at the intent of the contract. The intent was that we start building as soon as possible. The intent was to take an area which, when I presented the project at first in 2012 to PZAB (Planning, Zoning and Appeals Board), they asked me where the bomb went off so this area was total blight. And I think that the intent of the agreement was to try and get this project off the ground as soon as possible, and I think that that's exactly what we did. We did -- perhaps, we were optimistic in thinking that within six months, we'd get the building permit, but that was a mistake of ours. At the end of the day, it ended 18 months. We never expected the beautification project to go through 49 different revisions and 7 different plan revisions. So those sort of time issues that weren't considered is why we're here today, but I believe that the intent was to get it off the ground as soon as possible, and that's what we did. Vice Chair Hardemon: I agree. The owner acknowledges that the prompt development of the project, as well as the community improvements by the owner, is a material inducement for the CRA to enter this agreement. Mr. Shoshani: Correct. Vice Chair Hardemon: And -- but it's "as well as." And at the end o f the day, we don't have the benefit. And so, where we don't have the benefit and your contract says you get less money, why should I give you more? Mr. Shoshani: I don't agree that you don't have the benefit, Commissioner. I think you do have the benefit. I think that there were issues of the City and the County that prohibited us to start on time, but I think you have the benefit. The building is there, and the beautification would have started months ago if we wouldn't have -- if it was what it was intentionally -- initially stated as. Because it hasn't, because we had those issues with Public Works, and it became an infrastructure project instead of an avenue that would connect people -- because today, because of Canvas, you had the Mello Project to come up a few months later, and Canvas stimulated more than a thousand units that you have today in the area. Vice Chair Hardemon: Now, I will give you that. Canvas, the project itself is a major improvement to the space, to the area. Mr. Shoshani: Yes. OMNI Community Redevelopment Agency Page 35 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 Vice Chair Hardemon: But it doesn't change what you agreed to; you know what I mean? It -- I mean, I would rather see ownership up to 2 million, $4 million in the space; individual unit ownership for people who live in the redevelopment area to be able to live there. I would rather see, you know, these certain things than just us getting $1.5 million and being tasked with creating affordable housing. They have housing; let's just make it affordable. I mean, I don't know what the agreement is, but I just know that the way that it is -- and I don't want to take up too much more of our time -- but the way that it is spelled out right now, it's just -- it's objectionable. Chair Russell: Well, it probably should have been -- sorry; little close there -- two separate items, because it doesn't seem that they're exactly related, the seven hundred and fifty thou -- I'm sorry, the seven -- the increase in TIF versus the 2 million back. These are two different issues here. One is the pub -- whether or not they met the public benefit and why, and what do we intend to do with that money now? We have more to do than just affordable housing. We're creating green space. We supposed to be creating -- eliminating slum and blight, and that could include streetscape work. We could take this money back and do this ourselves, if that's the policy direction for that street, and if it's the right timing. But from my understanding, what's been presented to me, with all the complications involved with updating the street and with the other developments across the street to come, we don 't need to do this right now. And instead o f just trying to get out of it, he 's giving us the money back. I think that's a fair trade. On the other issue, that's -- I think it -- to look at separately, so -- I mean, if it really was impossible for him to meet the goal of the contract with regard to the community benefit of the streetscape, I wouldn't hold him to a penalty. Now, the fact that he's asking for an increase -- what is that? -- 62/5 per year -- from 750 up to 812/5 in TIF to reach the original goal that they had or negotiated of rebate to them of tax increment funding. When you put therm together, I see why it looks like what Commissioner Hardermon's saying. You didn't meet your goal, and you're not -- only not getting a penalty; you're asking for an increase. But if you look at them separately and say, "Okay, we didn't meet the goal because of many reasons out of your control, and we're looking at the increase to -- If you were to take that out completely and just say, "He's on schedule; and the other benefits he was meant to create, he did create, " should he be penalized because it came to market late, and that cuts into the negotiation that was made with the CRA originally of what the overall TIF they were supposed to receive were? Mr. Shoshani: Commissioner, ifI may? Chair Russell: Yes. Mr. Shoshani: I think that those two issues are together, because that exactly shows the type of relationship that the developer has with the Administration, and I think that's a very good sign. I don't think that's a bad sign. I think that the whole idea behind cooperation of TIF agreements between developers and between CRAs is all about putting these kinds of deals together for the benefit of the area, and I think that that's why it's scoped together, and I think it makes a lot of sense. This relationship is a four-year relationship. We've been working on it almost on a monthly -- or bi- weekly schedule. We went with the Administration to the County to try and convince them. We went with the Administration to the City to try and convince them, and this was a joint effort, and I think that's why the two issues are there together, and I don't see this as a negative thing. Vice Chair Hardemon: So what was it about the Public Works project that caused you such concern that you couldn't get it completed? Mr. Shoshani: I think that the CRA 's conclusion, along with ours, is that that sort of OMNI Community Redevelopment Agency Page 36 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 project will come eventually when the other lands will ask for building permits. Vice Chair Hardemon: So you are saying that they should pay for it; not you? Mr. Shoshani: Well, it's not about me. This money is not mine. This money is the CRA 's. I can either interject into the beautification process, what it was, or we can make out a check. This is not my money. I do what the CRA requests of me to do. So this was a beautification project, which made a lot of sense as the area came up and as the units started to come in, but right now it makes little sense, probably to the CRA, and as it does to us, that if you have a drain and trench project, which will eventually come in, don 't do it now; take the money and put it where it needs to go. I think that's the logic behind it. Chair Russell: Mr. Shoshani, what about Commissioner Hardemon's curve -ball solution of keeping the money in your project but translating it into affordability? Are you sold to capacity? Is this rental or condo? Mr. Shoshani: This is condo. Chair Russell: Are they -- are you fully sold at this point? Mr. Shoshani: We are 90 percent sold. It would be difficult right now. We 've been working with the CRA. We -- I'm very happy that the Mayor came here to talk about affordability. This is something that on the next project we've committed to and we're looking into. I believe that on Canvas, it's a bit late. Lice Chair Hardemon: But what makes it difficult, if you're 90 percent sold -- Chair Russell: So you're saying there's 10 percent. Vice Chair Hardemon: -- 10 percent there -- right? Mr. Shoshani: Yeah, I know. On paper it looks great. Vice Chair Hardemon: And I said, "Keep your money"; rather, I know some people that are within the redevelopment area that want to have home ownership in the redevelopment area. They can't buy into it, because it's way too affordable [sic_, and the CRA has an opportunity to create ownership through your project. Mr. Shoshani: It won't make a dent. It won't make a difference. If you take those million and a half and you translate it into units and you go with the 240,000 workforce or affordable line and you can give them five or six units in a 513-unit building, I don't think it'll make the effect that it's supposed to. On the other project that we're talking -- Chair Russell: It'll make jive very happy families. Lice Chair Hardemon: Very, very, very happy. Chair Russell: I remember visiting one of your projects early on when I first got into office, and they were artists' lofts, but I recognized they weren't starving artists' lofts. It's vet), -- it's high -end -- it's a very high -end market product -- Mr. Shoshani: yes. Chair Russell: -- and I do recognize. When we do work at the CRA, either somebody's supposed to be helping generate the TIF or that we're -- it's a project OMNI Community Redevelopment Agency Page 37 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 where we're expending the TIF for the benefit of the community. Not every project has to do both; create the money and create the, you know, housing stock itself but I think we're on the same idea where we do want to see more and more mixed -income housing. I think that this blend, especially in a community like the Omni area, can be a great example to the rest of the country that you don't have to have a poor door and you don't have to have compartmentalized poverty. You can have a blended, well -adjusted community where you don 't even know who 's paying what in a building, but everybody gets along. I'm -- you know, I'd like to hear more about if you're open to any other option. At the end of the day, I'm happy taking the check back and creating affordability elsewhere as well. I -- you know, I don't -- I'm not opposed to either. I think that the Administration -- I'm sorry; the executive director and his team have worked this out with you, and I'm satisfied with the math and the logic, but if Commissioner Hardemon has some suggestions that might make it better, I'm certainly open, but we have to work together. We have to figure it out. Vice Chair Hardemon: Yeah. You don't have to agree to it right now; you can always come back at another time. I mean, I can imagine, it's difficult to stand before a lectern and talk openly about these types of things, but, I mean, this is the only time I get a chance to do it in front of these gentlemen, so that's why I took advantage of this opportunity. Chair Russell: Well, let's make a decision. If we keep talking, Mr. Crespo's going to come back and say more things. So your inclination is to defer the item or approve in part? Mr. Walker: We would -- Board Member Gort: My understanding, it's selling for 240? Chair Russell: Say it again. Board Member Gort: My understanding is the units are selling for 240? Mr. Walker: No, no, no, no, no; units are not selling for 240. Board Member Gort: 240, 000. Vice Chair Hardemon: how much are they selling for? Mr. Shoshani: I believe the 240,000 is the affordable housing maximum -- yes. Board Member Gort: Right, to get the incentive from the -- Mr. Shoshani: Correct. Board Member Gort: -- City and so on -- Mr. Shoshani: No, the housing and Canvas -- Board Member Gort: -- for the first mortgage. Mr. Shoshani: -- is much more than that. Yes. It's unfortunate -- Chair Russell: This is a high -end market rate. Vice Chair Hardemon: This is nice. This is nice. OMNI Community Redevelopment Agency Page 38 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 Chair Russell: It's a nice place. Mr. Walker: Mr. Chairman, if I can ask the Clerk or the Attorney a question. Is it possible to do what the Commissioner asks, is to bifurcate the resolution so that we can approve --? Because the issue is in order to meet our deadline, he's going to continue spending money on the streetscape project, because he is obligated to do so. So the 1.5 million, every day that goes by, it's going to be less and less. So we need to make a decision on that today so that he could stop spending money. Because it was 2 million; now it's 1.5. If we wait longer, it could be less. Chair Russell: Why are you spending money if we're not going to do the project? Mr. Shoshani: I'm sorry? Chair Russell: The streetscape project, if we're -- Mr. Shoshani: We stopped spending money when the CRA sent us a letter telling us to stop spending money. Mr. Walker: We did that, yes. Vice Chair Hardemon: So the CRA approached you; you didn't approach us? Is that what you're saying? Mr. Shoshani: I think it came together. Mr. Walker: It came together, because we went to the -- Mr. Shoshani: We were in a meeting and it came together. Mr. Walker: -- City and the County together, and we realized together that this wasn't going to work. This was not the initial intention. We were not going to be able to cover the cost of a drainage project, and it just didn't make sense. So I ask a question to the Clerk and to the attorney: Is it possible to bifurcate Item Number 6 by approving the give -back of the 2 million -- or 1.5 -- and deferring the part of the increase in TIF? Chair Russell: Well, the TIF wasn't the point of contention; the TIF increase -- well, I mean, it was brought up for sure, "Why are we increasing the TIF?" But what Commissioner Hardemon is suggesting is what to do with that $2 million or the 1.5, or whatever is left of it. Mr. Walker: Well, we can figure that out on our own. Vice Chair Hardemon: But what are they going to do with the 8, the extra 9 -- well, the total of $9 million? Mr. Shoshani: I'm. sorry? Vice Chair Hardemon: What happens with the $9 million? Mr. Shoshani: What happens with the $9 million? Vice Chair Hardemon: Right. It's part of -- I mean, it improves your bottom line. Mr. Shoshani: It improves the bottom line in the next 20 years, yes. OMNI Community Redevelopment Agency Page 39 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 T ice Chair Hardemon: Yes. Mr. Shoshani: Definitely. Vice Chair Hardemon: Yes. Mr. Shoshani: But that's the idea behind the TIF agreement. Vice Chair Hardemon: Right, but -- I mean, the thing about it is this. The CRA and your organization are both big boys -- right? -- or girls, however you decide to look at it. And the agreement that was written says that if it takes longer than it's supposed to that there's a decrease in the TIF that is not unlike any other TIF structure. There are penalties, because you want to encourage the development, so you don't just sit on it and try to shop it around to different people. I haven't had an opportunity to see the completed site. I'msure it's beautiful. If it's beautiful and improvements are happening in the area, that also means that condominiums are going to be selling at higher prices. I would assume that they're selling now for higher than they sold for initially. Mr. Shoshani: No. Lice Chair Hardemon: No? Mr. Shoshani: No. Vice Chair Hardemon: Oh, then let us put some houses in there, but that's neither here nor there. Mr. Shoshani: There's all sorts of ways to do business. lice Chair Hardemon: But we -- but they're not sold at 240. You're absolutely right. And all I'm saying here is that it'll -- it just appears to be that you're due less TIF than what you initially expected, because of the agreement that you entered into, through no fault of the CRA. This is -- Mr. Shoshani: If you look at the agreement as is, you're definitely right. I think that -- again, if the intent was different, I think that when you work with a team putting together something which is bigger than one building, I think that that's what's behind the Administration's approval of trying to push this ahead. As per the agreement, you're absolutely right. The agreement states that if I don't meet the dates, then I don't -- then I get less money. On the other hand, those dates were already amended and approved, okay, so we need to go back to those amendments and to redo those amendments. But those were amended and approved. So -- but -- Lice Chair Hardemon: So what -- is -- I know -- I understand they were amended and approved. They were subsequent agreements that were made. Where are we? Where are we with what was required of this organization and with what has been delivered? Ms. Jones: So far, the building is set for Certificate of Occupancy, I believe, in June/July to -- Mr. Shoshani: May. Ms. Jones: In May. Mr. Shoshani: Yes. OMNI Community Redevelopment Agency Page 40 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 Ms. Jones: And they will meet that deadline, so they will be entitled to get that portion of their TIF. Mr. Shoshani: Correct. Ms. Jones: The portion of the TIF we're pretty much talking about right now is the community benefits portion of the TIF, the $2 million. So jar, they've expended $462,000 just in the permitting process, traffic studies, and trying to do this major Public Works project that we thought was more of a streetscape project. That is no longer the case. Right now the City and the County is asking them to replace all existing 12-inch storm drainage pipes, and replace them with 15-inch minimum diameter pipes on intersections of Northeast 7th Street. There are a lot of construction going on on both streets right now, and the idea we've had as staff is that there are other projects that are coming online. Chair Russell: We understand. The scope is much greater than we thought. It's better just to not do it or hold it till later; we get that. rice Chair Hardemon: And I get that part. I get that part. This is not what you planned it to be. You sat in the room; you agreed to some terms, because you had an expectation of what you were going to deliver. You had every intention to deliver that term. Mr. Shoshani: Yes. Vice Chair Hardemon: Right? It just didn't work out the way that you thought it would be. Mr. Shoshani: Because of outside forces; because of the City, because of the County; and because the CRA were with us since the first step of the way, they saw it happen, and that's why they approved the amended -- the amendments, because they saw that we couldn't get to where we needed to be. Mr. Walker: And Mr. Chairman, I'd also like to point out -- I have to interject here a little bit. And first of all, I did say that this agreement came prior to any of us being here on this side. We would have done it differently. The next TIF deal that we work out will be different, the next TIF deal. But in the request, we also took into consideration Mr. Shoshani's commitment to the neighborhood in the past couple of years since we've been here. He's -- and I know it's -- you know, a lot of people say it is selfish, and it is selfish, because he's trying to sell condos. But he's initiated four events, I think -- Mr. Shoshani: A month. Mr. Walker: -- a month in this area. Chair Russell: This is the Flea and the -- Mr. Walker: Miami Flea, the -- Chair Russell: -- Arts & Entertainment District; all of the social events to activate the area. Mr. Walker: Yes. Chair Russell: That he's invested in these on his dime, which -- OMNI Community Redevelopment Agency Page 41 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 Mr. Walker: At about a half a million dollars a year. Mr. Shoshani: Yes, sir. Chair Russell: Right, which is a very unique marketing tool for his projects, but it also accomplishes -- Mr. Walker: It also helps us. Chair Russell: -- our goal of activating the area, so. Mr. Walker:: And it's money that we wouldn't have been able to use. We don't have the money to use that to promote the neighborhood. Miami Flea is an awesome event that takes place that brings thousands of people to the area. It's not even held on the site of Canvas. I think it used to be, but now it's not, but -- So we took that into consideration also when this request came in, that he's doing things for the neighborhood that we haven't been able to do as the CRA in granting this request. Mr. Shoshani: In addition, Commissioner, if I may, the third amendment -- I believe it is -- is the bad deal that we put together, which puts all of the $9 million of the TIF agreement as per the CRA's priority. So, if the priority tomorrow changes and the CRA doesn't have any money to give us, then they don't. We came to Mr. Walker, and we asked for himto at least secure us the initial $2 million that we're putting in on the beautification process, and he agreed to that in the amendment, which he shouldn't have, either, and I think that he did because of the sort of work we've been doing together the last three years. Vice Chair Hardemon: Mr. Chairman, I mean, I'll -- I know you want to hear some public comments. I'll follow your lead on this, only because of the improvement, the benefit, it -- from everything I've read, it does appear that it is merely streetscaping, landscaping, irrigation, things of that nature; $2 million worth of it, which is, I think, could or could not be significant, depending on how it -- the costs pan out, but I'll tell you, I just think you can get a little bit more, but, you know, I'll follow your lead. Chair Russell: And I'm trusting in our Administration's math and logic on how we got here as well, so I -- you know, I'm in support of this, but I understand what -- where you're coming from. And anyplace there is an opportunity for us to work together with a developer to achieve our goals, we should take advantage of it. But 1 -- you know, I do believe in our CRA's only TIF deal, which is, you know, another whole story that we've got a partner here that we're working with who is activating the area, who is creating income for us; and to my understanding from the Administration, they've met their goals, the amended goals; they're delivering product, and they're creating revenue for us. If we want to take that 2 million and do streetscaping ourselves somewhere else, rather than -- ti ice Chair Hardemon: 1.5. Chair Russell: 1.5. Vice Chair Hardemon: Maybe 1.3. Chair Russell: The longer we talk, the lower it will get. Vice Chair Hardemon: Yeah. Vice Chair Russell: But I'm, you know -- I'm always interested in looking deeper OMNI Community Redevelopment Agency Page 42 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 and negotiating as much as possible, but for this item, I am -- I'm satisfied with this issue. i ice ChairHardemon: All right. I'll move it. Chair Russell: It's been moved; second by the Chair. Mr. Crespo, would you like to make a comment on the issue? Al Crespo: You know, when I was 25 years old, I wanted to be a rocket scientist. That was my intention. 50 years later, I don't think -- guess I got there, did I? So that's what happens about intentions. You know, you guys spent -- I think it was four and a half, $5 million on 14th Street, doing street improvements; the same thing that's being talked about here. The CRA paid for new pipes for the new widened sidewalks, so -- and they did it five, six years ago, before, I believe, this agreement was reached, or about the same time. So I don't think it -- back then anybody was unaware about what it meant to do street improvements, and that it was going to have to go underground, as well as on the sidewalk. Correct me if I'm wrong; didn't you make an unsolicited proposal for the parking lot where the CRA building is? Didn't you buy the parking lot? Mr. Shoshani: Yes, sir. Mr. Crespo: Yeah. So this gentleman owns your parking lot, and I think next month, you all are going to have to go find someplace else to park, all right? rice Chair Hardemon: Uber everywhere. Mr. Crespo: Huh? Do where? Chair Russell: "Uber," he said. Mr. Crespo: Yeah, yeah. Well, that's -- you might have to. So my interest about all this is these community benefits agreements. You know, they don't seem to work out for the community; not just this one. I mean, the City has engaged in other community benefits. I mean, there's the Milton Community Benefits Program with Pallot Park that never worked out; worked out for the Mayor; he got free rent, you know, but it didn't work out for the community, and I say that with full knowledge that I could go to court tomorrow and prove that our boy didn't pay any rent, you know. So my concern is, this was all done by other people back in the day and you all are left holding the bag, and I don't know if that's good for the community, and I think you ought to think about that before you make any decision. Because the community, for some reason, in Miami, as the former Mayor once said, "Every deal is a bad deal, " and looks like this is another bad deal for the community. So maybe, before you make a decision, you ought to try to make it a good deal for the community. Thank you. Chair Russell: Thank you. And that was certainly one of the questions I asked the executive director when this came up: If we took that money back, would we just go forward and do the project; would we invest in the pipes, and would we take it to further --? Because that is something we have the wherewithal to do, if that was the policy direction, and with the other projects coming on, and the state of the street in the moment, I think we got bigger fish to fry at the moment where we can use this money for the benefit of the community, but that particular benefit, it's true; it didn't get delivered for whatever reason and it won't for some time, so it's not what was originally agreed; it's true. It's been moved and seconded. Is there any further comment from the dais or the public? OMNI Community Redevelopment Agency Page 43 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 Board Member Gort: Call the question. I got (UNINTELLIGIBLE). Chair Russell: All in favor, say "aye." The Board (Collectively): Aye. Chair Russell: Any opposed? .Motion passes. 7. OMNI CRA RESOLUTION 2974 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING THE ISSUANCE OF A GRANT IN AN AMOUNT NOT TO EXCEED FIVE HUNDRED THOUSAND DOLLARS ($500,000.00) TO THE CITY OF MIAMI TO UNDERWRITE COSTS ASSOCIATED WITH AN ENHANCED POLICE PROGRAM WITHIN THE OMNI REDEVELOPMENT AREA; AUTHORIZING THE EXECUTIVE DIRECTOR, AT HIS DISCRETION, TO DISBURSE FUNDS ON A REIMBURSEMENT BASIS OR DIRECTLY TO VENDORS, UPON PRESENTATION OF INVOICES AND SATISFACTORY DOCUMENTATION; AUTHORIZING THE EXECUTION OF ALL DOCUMENTS NECESSARY FOR SAID PURPOSE, IN A FORM ACCEPTABLE TO GENERAL COUNSEL; ALLOCATING FUNDS FROM 2018 TIF REVENUES — 10040.920501.891000 — INTERFUND TRANSFERS. ENACTMENT NUMBER: CRA-R-18-0005 MOTION TO: Adopt RESULT: ADOPTED MOVER: Keon Hardemon, Vice -Chair SECONDER: Wifredo (Willy) Gort, Commissioner AYES: Russell, Hardemon, Gort ABSENT: Carollo, Reyes Chair Russell: Item Number 7. rice ChairHardemon: So moved. Chair Russell: It's been moved. Board Member Gort: Second. Chair Russell: And seconded by Connnissioner Gort. Hr. Executive Director, any comment on the item? Jason Walker (Executive Director/Omni Community Redevelopment Agency): Not unless you want me to. Chair Russell: Nope. We're good here. Any comment from the public on Item Number 7? This is with regard to underwriting cost with regard to Enhance Police Program. Bret Knofler: Hi there. Good evening. Bret Isnofler. I live at 1306 North �lliami Avenue, part owner of a venue named 1306, which is just down the street near the CRA (Community Redevelopment Agency) headquarters. As most people in the OMNI Community Redevelopment Agency Page 44 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 neighborhood know, there's been a major crime wave in the Omni area, specifically West Omni. We were robbed on Christmas Day. They took about $20, 000 worth of sound equipment. The Magic City Bike Collective in Omni Park has been robbed four separate times over the past three months. The wiring was stolen from the air conditioning, the park, et cetera. So there's something that's not working. And basically, what I'm here -- I'm not here to speak against this; I'm here to actually look -- ask that we have some small refinements to what's been going on. I don't know exactly the crux of the agreement, if there's checks and balances. The executive director has control over what this money is spent on, where it goes, what the time of day. I know for a fact that in past years, it's been sort of a blank check just given to the Police Department for a back office. They weren't even translating that into boots on the ground. I believe last year that most of the money was spent on day -time patrols. That's not when our customers' windows get broken into; they get broken into in the evening when we're open. There's only four or five areas in the Omni that are active, and where people go, so it shouldn't be that difficult to focus this a little bit on where the crime is actually taking place and maybe have some preventative mechanisms. So I would just ask that maybe there's some sort of a check and balance or maybe some sort of a quarterly meeting with people in the community that analyzes how this is spent and looks at solutions. My -- of course -- dream would be to see the City of Miami Police Department practice community policing. I don't know if that's going to ever happen in my lifetime, but it's something that's been proven to work since the 1970s, beat cops; people walking around the neighborhood, people interacting with people, business owners, and so on. So, you know, maybe that won't ever happen, but at least we can look at refining this and seeing how the money's spent and analysing it so that we can hopefully get rid of this crime wave and make the area safe for residents and for guests, and visitors. Chair Russell: Thank you very much. Al Crespo: I think I'm going to move the chair up here. Chair Russell: We could just give you a microphone to -- Mr. Crespo: Yeah, I could just pop up, you know -- So, you know, this is a particular issue that I've discussed on a number of times and written about on a number of times. Matter of fact, I was at the City commission meeting last week and discussed witnessing a dope deal go -- occur two feet in front of my car. I recall going to a meeting a couple of years ago where the Omni CRA's Police Department showed up, and they gave a report about all the good things they had done and all. It didn't make any sense; but, of course, you know, because I said it didn't make any sense, everybody said, "Oh, well, that's just Crespo." But it didn't make any sense, you know. And I've never understood why, if you have a Police Department, you have to create a separate little Police Department to patrol a little section of the City, which is relatively a mile in diameter; and there's still as much crime, if not more, going on than before you created that little police force. Now this was created originally by, again, my pal, Commissioner Sarnoff, and this was -- he gave, what, $2 million the first year to the Police Department? You know, "Ah, yeah. Here. We got plenty of money." You know, "Here. Here you go, Chief Orosa. Here's $2 million. Give us a couple of cops; we'll buy their guns, we'll buy their cars. We'll do all that stuff " And it didn 't work, and it's not working now. It's not working in your district either, Commissioner Hardemon. No, it's really not. I mean, if I can see a dope deal at 10:30 in the morning, you know, it ain't working, right? And if we can go -- We can all get in the car now and drive over there to 13th Street and 1st Court, like you said you witnessed dope deals go on -- I bet you, if we sit there for about 10 minutes, we'll probably see four or five dope deals go down. But my big question is -- now that we have a new Police Chief. We do have a new Police Chief. Of course, there OMNI Community Redevelopment Agency Page 45 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 were no interviews for anybody, other than the new Police Chief you know. The new City Manager didn't interview anybody, except had a meeting of the minds with Deputy Chief Colina, and said, "Ah, I like his theory on police, and I'm going to make him Chief right now today," and that's how it happened in the City of Miami today. That's how you got a new Police Chief. But I would hope that you guys would call -- in your capacity as City Commissioners that you would call the Chief of Police to the next Commission meeting and have him stand in front of you all and say, "Hey, what's going on in our city, Chiefv? How come drug deals are going down in the streets, and stupid people like Mr. Crespo show up here and rag on us about it? And why aren't you doing something about it? You're making us look bad." Right? "And we really don 't want to hear him come anymore and wave pictures and all that stuff" you know. This is a real problem. It's a real problem, but it needs to be solved in an intelligent way. I've never seen why you should give extra money to the Police Department when everybody's paying far the cops anyhow. Right? And I support whatever you want to do, but I damn sure wouldn't give any more money to the Police Department. I'd make the Police Department do what their jobs' supposed to do. Chair Russell: Thank you, Mr. Crespo. Mr. Crespo: Thank you. Chair Russell: This half million dollars that we will be using, can we focus that on the drug issue and the night-time burglary issue? Mr. Walker: Yes. Chair Russell: How would we do that? Mr. Walker: We currently, absent this agreement, since October, the police force that we had of the four or five officers, they were rolled back into the regular Miami Police operation. So this $500, 000 would only go for special operations, authorized by the Omni CRA (Community Redevelopment Agency). So, for example, Mr. Knofler got up and talked about the burglaries that he's had. We've had two cops working Friday and Saturday nights, from -- I believe it's 10a -- 10p.rn. to 3a.m. on those nights, because that's when his customers and other customers and property owners have been robbed. So that's been going on for the past several weeks, probably since the end of November. We -- there was a meeting suggested by one of our staff members on how to deal with the drug issue. After watching Mr. Crespo at the Thursday Commission meeting and seeing some deals go down right in front of our office, we thought that when the commander returns -- I think he's at a conference -- that we should sit him down and talk about doing an operation just to focus on the -- Chair Russell: Thank you. Mr. Walker: -- drug transactions within our area. So this money won't go to the officers -- you know, the five officers. This is a targeted operation. For every operation we approve, we tell them where we want them to be, how many officers we want; we get their advice, obviously, and then we write a check for the hours that they worked. Chair Russell: Thank you. I do -- I would like us to have a quarterly crime meeting with the stakeholders and the Police Department so we can start to focus these funds and hear what's going on. I know you hear it on a regular basis, hut I'd like to he in it. We had a good one at least a quarter ago, probably six months ago, honestly, and that opened my eyes to a lot of what's going on, and it's very clear what's going on OMNI Community Redevelopment Agency Page 46 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 right now. So there's been a motion and a second. Is there any further discussion on the dais? All in favor, say "aye." The Board (Collectively): Aye. Chair Russell: Any opposed? .Motion passes. Thank you. 8. OMNI CRA RESOLUTION 3487 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("CRA"), WITH ATTACHMENT(S), RATIFYING THE CRA'S EMPLOYEE HANDBOOK, IN SUBSTANTIALLY THE ATTACHED FORM. ENACTMENT NUMBER: CRA-R-18-0006 MOTION TO: Adopt RESULT: ADOPTED MOVER: Keon Hardemon, Vice -Chair SECONDER: Wifredo (Willy) Gort, Commissioner AYES: Russell, Hardemon, Gort ABSENT: Carollo, Reyes Chair Russell: Item Number 8. We're almost done. Jason it adker (Executive Director Omni Community Redevelopment Agency): Item Number 8. I was waiting for Commissioner Hardemon to move it. Item Number 8 is a resolution of the Board of Commissioners of the Miami Redevelopment District Redevelopment Agency, with attachments, ratifying the CRA 's (Community Redevelopment Agency) Employee Handbook in substantially the attached form. rice Chair Hardemon: So moved. Board Member Gort: Second. Chair Russell: It's been moved and seconded. Any comments from the public? Closing public comment. Any f rrther comments from the dais? All in favor, sav "aye. The Board (Collectively): Aye. Chair Russell: Any opposed? A=lotion passes. 9. OMNI CRA RESOLUTION 3488 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING THE ISSUANCE OF A GRANT FROM ACCOUNT NO. 10040.920501.883000 IN AN AMOUNT NOT TO EXCEED $100,000.00 TO THE DOWNTOWN DEVELOPMENT AUTHORITY OF THE CITY OF MIAMI, FLORIDA TO EXTEND THE DOWNTOWN ENHANCEMENT TEAM INTO THE OMNI REDEVELOPMENT AREA FOR AN ADDITIONAL PERIOD OF ONE (1) YEAR ("PROGRAM"); AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE ANY AND ALL DOCUMENTS NECESSARY OMNI Community Redevelopment Agency Page 47 Printed on 3/14/2018 OMNI Community Redevelopment Agency Meeting Minutes January 17, 2018 ADJOURNMENT TO EFFECTUATE THE PROGRAM, IN A FORM ACCEPTABLE TO THE GENERAL COUNSEL. ENACTMENT NUMBER: CRA-R-18-0007 MOTION TO: Adopt RESULT: ADOPTED MOVER: Wifredo (Willy) Gort, Commissioner SECONDER: Keon Hardemon, Vice -Chair AYES: Russell, Hardemon, Gort ABSENT: Carollo, Reyes Chair Russell: last item of the evening, Item Number 9 -- Board Member Gort: Move it. Chair Russell: -- regarding the DET (Downtown Enhancement Team) Team. i ice Chair Hardemon: Second it. Chair Russell: It's been moved and seconded. And just for your information, the concept here is to actually double our investment in training and employing the homeless to have jobs and get back into society, and help with the beautification of the area. It's been moved and seconded. Is there any comment from the public on this item? All in favor, say "aye." The Board (Collectively): Aye. Chair Russell: Any opposed? Motion passes. Thank you very much for a very, very productive meeting of the Omni CRA (Community Redevelopment Agency). Have a good night, everyone. The meeting adjourned at 7:39 p. m. OMNI Community Redevelopment Agency Page 48 Printed on 3/14/2018