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HomeMy WebLinkAboutOMNI CRA 2019-10-30 MinutesCity of Miami 3500 Pan American Drive Miami, FL 33133 www.miamigov.com lir IIIKw Omni C R A Meeting Minutes Wednesday, October 30, 2019 5:00 PM Dorsey Memorial Library 100 NW 17th Street Miami, FL 33136 OMNI Community Redevelopment Agency Ken Russell, Chair, District Two Keon Hardemon, Vice Chair, District Five 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, 2nd Floor, Miami 33136 Phone: (305) 679-6868 www.miamicra.com OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 CALL TO ORDER Present: Chair Russell, Vice Chair Hardemon, and Commissioner Gort Absent: Commissioner Carollo and Commissioner Reyes On the 30th day of October 2019, the Board of Commissioners of the OMNI Community Redevelopment Agency of the City of Miami met in regular session at Dorsey Memorial Library located at 100 Northwest 17th Street, Miami, Florida. The meeting was called to order by Chair Russell at 5:02 pan., and was adjourned at 6:33 p.m. ALSO PRESENT: Jason Walker, Executive Director, CRA lsiaa Jones, Chief Legal Officer, CRA Xavier Albkn, Assistant City Attorney, CRA Todd B. Hannon, Clerk of the Board Chair Russell: Good evening, everybody. How's everybody doing? Thank you for coming and joining, and for your advocacy. We are here as the Board of the Omni Community Redevelopment Agency; Commissioner Wifredo Gort, in his potentially last meeting with us as the Omni CRA (Community Development Agency), and Commissioner Hardemon, also here on my right. We do have a quorum. PUBLIC COMMENT ON AGENDA ITEMS Chair Russell: We have nine items to take up, but before we do, I would like to open up the floor for public comment on any of the items before us today. If you're here to speak on anything that the CRA is dealing with -- let me make sure we've got a microphone here for you to speak. Over there in the corner; is that where they would go? That's fine. So if there's anyone here who'd like to speak on any of the items, we'll open for public comment now. Thank you. And if you could, just state your name, which item you'd like to speak on, and we'll give each person two minutes. Linda Joseph: Hi. My name is Linda Joseph. I live at 1717 North Bayshore Drive, and I'll be speaking on Item 9 on the agenda. Chair Russell: Please, feel free to speak. Ms. Joseph: Oh, no. I'll wait until -- Chair Russell: No. This is the time, actually. Unidentified Speaker: This is the (UNINTELLIGIBLE). Board Member Gort: Get your notes. Get your notes. Chair Russell: Yeah. Anyone else, feel free. You can just line right up, and we'll speak on all of the items. Ms. Joseph: Good evening. My name is Linda Joseph, as I said, and I've been in the Omni District for many years. For the last three and a half years, I've been the President of the Miami Woman's Club. We, along with the Coconut Grove Woman's Club, is the -- OMNI Community Redevelopment Agency Page 1 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 has the distinction to share the -- and be the first Woman's Clubs that are established in the City of Miami. I've lived and contributed to the Omni CRA since its inception. I lived through the problems of our Omni area that necessitated a CRA, and I want to thank you, honestly, for all the changes and positive impact that this CRA has brought to my neighborhood and to our greater communities. I'm also proud that when you look at the Community Redevelopment Plan, number one on that plan of items -- the five items that they have -- are supposed to take care of is historic reservation [sic]. It's not at the bottom of the list; it's the very top of the list. Tonight we're here to ask you to release a declaration of restrictive covenant that ties our hands and makes the Miami Woman's Club forever bound to say, `Mother, may 1?" as we carry out our mission and do good for our hometown. As you know, on November 18, the CRA approved a grant to the -- our club for the amount of one -- of 3.75 million, and it was paid in two installments from 2008 and 2009 budgets. Those funds paid for our building's 40-year recertification. In consideration of that grant, the City of Miami took title to a 23-foot ribbon of the Club's priceless bayfront property, where a beautiful baywalk was constructed, and it was dedicated just a few weeks ago. The grant agreement stipulated that the CRA grant would be paid back entirely if the property were ever sold. Let me be clear. Besides it being in our original covenant that we cannot sell the property, the Club has no intention of ever selling this property. Six months later, and to the utter surprise of -- the City demanded that the Club execute a declaration of restrictive covenant. The necessity for that instrument remains a mystery. But the Club was told it would not receive its final funding unless that Club -- that instrument was executed and recorded. One clause prohibits the Club from transferring its interest in its property to a third party, such as the transfer for TDDs (Transfer Development Densities). The Club would, however, like the opportunity to explore such a transaction; the proceeds of which would allow the Club to do even more good throughout all of our City Jroits diverse communities. Perhaps, this covenant seemed necessary back in 2009, because at that time, we were struggling as an organization, and perhaps the City mistakenly underestimated what a group of women could do on their own as volunteers for a cause, but it was, after all, a group of women who, on their own, raised the money in 1926 to build that building. It's taken 10 years of my life, and a lot of others, to put together a plan to save our historic building on Biscayne Bay. In the end, we parted with another -- partnered with another long-time Omni resident, who is putting more than $13 million into the completion and restoration of our historic home. They, in turn, are bringing in two world -class restaurants to our building, who will be adding another $10 million each to their respective spaces. We found a way to keep this historic building safe and sound in our neighborhood, and to put it on the tax rolls to generate more funds for the Omni CRA. Our Club has been growing by 10 to 15 percent each year, since we began the restoration, and we've been able to donate thousands of dollars to many small organizations in the Miami area to help many others. We ask that you approve the item that will be before you to help us continue our work. Thank you. Chair Russell: Thank you for your comments. Hello. Metris Coley: Hello. Good afternoon. My name is Metris Batts Coley. I live at 1885 Northeast 121st Street. I'm a member of the Miami Women's [sic] Club. I'm the second Vice President. I've been a member since 2008. We need the restrictions lifted off the club so we can leverage our resources to do what the Club's mission was to do, which is to be involved and be engaged in the community. The landscape of this area has changed, so not many non-profit organizations are still on the corridor. With the resources that we would have available that allow -- would allow us to leverage the finances and work that we do to support other organizations. Most of the women who are in the Women's [sic] Club are members of other organizations, and for the past 10 years, we've uniquely positioned ourselves to support other organizations and to be actively involved in the community. So if the restrictions were removed, it would give us an opportunity to right the wrongs of everybody's past, and step into the future with an OMNI Community Redevelopment Agency Page 2 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 opportunity for everyone to benefit from the resource that we have in the City of Miami. Thank you. Chair Russell: Thank you for your comments. Good evening. Javier Fernandez: Mr. Chair, good evening; members of the Commission. Javier Fernandez, for the record, with Berger Singerman, law offices at 1450 Brickell Avenue, here on behalf of NR Investments, in Items 6 and 7. Mr. Chair, I don 't know if you want to have a presentation prior to that item being heard, or if you'd just like me to put some comments into the record now. What would be your preference, sir? Chair Russell: No. Oh, is there a presentation to show? Mr. Fernandez: Just a quick summary of what we're requesting. If you'd like -- We don't have anything formal in terms of graphics, but can happily put the comments in, if you 'd like. Chair Russell: No. If it's just verbal, I mean, that's fine. Thank you. Mr. Fernandez: Thank you for the time again. I'm joined today by the -- one of the principals of NR Investments, Nir Shoshani, and members of his team; Terry Wellons and Kris Nelson. This is the end of a, hopefully, seven-year conversation we've been having with leadership of this agency. NR Investments has been a lot -- now a long-term stakeholder in the Omni area. You all are probably familiar with their first two projects in the area, which are both the Filling Station Lofts and the Canvas Condominium Tower; both very successful projects in their own right. Beyond the physical buildings that NR has invested -- and they've really been trying to take -- attempt to build a holistic community by investing very heavily in branding the community and also events that help, as Nir would say, create happiness. This is a $2 million investment in local activities, such as farmer's markets, community festivals, movie nights, to help brand and kind of create a sense of place, which has often been lacking in this portion of the redevelopment area. Those efforts really have led to, I think, one conclusion and one opportunity we see in this marketplace, which is to, if we want to have a fully inclusive community, that requires creating some opportunity for folks at a variety of income levels in today's Miami. We, as a community, are struggling to retain our young talent, and this project and this proposal that we have before you today in Items 6 and 7 is intended to create some workforce housing opportunities for young professionals, our first responders who are entering the market, teachers, and others who are similarly situated. That support that we're requesting will basically help us, without any further subsidy, to try to offer units, a total of 252 units, that'll be fully capped at workforce housing rents, ranging from as low as $899 a month to as high as $2,200 in the upper tiers. This is a project that's being undertaken by Mr. Shoshani, without recourse to any other subsidy program in marked contrast to other projects you've probably seen before you in the past. And so, if you saw our -- at the close of our presentation, we are asking specifically under one item .for a six -and -a -half -million -dollar upfront grant, and then a back -end TIF (Tax Increment Fund), which means that we would basically take the proceeds the project generates and (UNINTELLIGIBLE) the CRA and use that to help subsidize the rents as well, which losses we estimate at about $20 million -- just under $20 million. The total present value of the request that we're making is about $10.4 million, and that's a combination of the six -and -a -half -million -dollar grant, plus the discounted value of the eight and a half million dollars that would be -- come to the project under the proposal, via the tax increment portion. That's also on the agenda today. So we think that this is a project that will help significantly advance the City's goals with respect to workforce housing in the urban core. We believe it's consistent with your redevelopment plan in many of those aspects, and we hope that you will give a favorable consideration this evening. And we look forward to answering your questions. Thank you. OMNI Community Redevelopment Agency Page 3 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 Chair Russell: Thank you. And just one question I have while I've got you, Javi, is just to clarify the breakdown. So of those 252 units, my understanding is, 25 of them will be at 60 percent AMI (Average Median Income), 13 of them at 80 percent AMI, another 13 at 100 AMI, 75 units at 120 AMI, and then 125 units at the 140 AMI portion. Mr. Fernandez: That's correct, sir. That's, I think, 26 in the first year, is the exact number. Chair Russell: Got it. And that is the entire breadth of the units in the building. There will be none that'll be at market rate? Mr. Fernandez: That -- they all will be restricted at those (UNINTELLIGIBLE) levels, sir. Chair Russell: So about half of them at the workforce rate, and then the rest at -- the other half at a blend of affordable and extremely low income? Mr. Fernandez: That's correct. Well, not extremely low income; at the -- just above the low income tier -- Chair Russell: 60 -- Mr. Fernandez: -- which is 60 percent. Chair Russell: -- AMI? Thank you very much. Mr. Fernandez: Correct. Chair Russell: Thank you for correcting. Yep. All right. Thank you. Mr. Fernandez: Thank you. Vice Chair Hardemon: Those -- the units that you're offering are all -- Chair Russell: Is your mike on? Vice Chair Hardemon: I don't know. Chair Russell: Yes, it is. Vice Chair Hardemon: The units that you're offering, they're all either studio or one bedrooms for the discounted rates? Mr. Fernandez: Yes, sir. They're all -- these are all the rents that we would be allowed to charge under the State schedule for any other affordable project for a unit that's either a studio or a one bedroom. So depending on the unit size, there is a different rent; and obviously, that's, to be clear, the maximum rent, because it's the lower of either the person -- 30 percent of the person's income or that maximum rent. So it would -- in some cases, you might have someone at the 30 per -- 60 percent tier, for example -- or 60 to 80 percent tier who would be charged less than the 889 [sic] maximum rent. Vice Chair Hardemon: But you're not offering two- and three -bedroom units to those individuals who will fit under that qualification? Mr. Fernandez: We are not. I think very few -- Vice Chair Hardemon: Families. OMNI Community Redevelopment Agency Page 4 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 Mr. Fernandez: No. This is, again, intended to be for -- entry-level product for really young professionals corning into the marketplace; your teachers, firefighters, nurses; you know, upper -end hospitality workers. Vice Chair Hardemon: And what about younger teachers, police officers, hospital workers, et cetera, that have families? Mr. Fernandez: We don't have a product solution for that that would frankly work within the financing that we've requested, sir. Vice Chair Hardemon: Okay. Chair Russell: So we have two items here that are before us on this, which are Items 5 and 6. I just want to ask the City Attorney a couple of questions before we take this up. Vice Chair Hardemon: I believe it's 6 and 7. Chair Russell:: Oh, I'm sorry; it's 6 and 7. Thank you. Board Member Gort: You're getting them confused. Chair Russell: Yeah. Item 6, though, is a four -fifths, which is the actual financial portion. Mr. City Attorney, can we take up one of these items without the other, as we only have a three -fifths quorum here? Xavier Alban (Assistant City Attorney): Yes. They're individual items, so I'm sure you can take up 7. But 6, because it requires a four -fifths, you would not be able to take that up. So you can defer it or -- Chair Russell: Thank you. Well -- and a question, and if it's not for today, it's for the future. 1 can't remember the last time we've had four or more of our board members here, and we have so much important work to do as a CRA. Is there a precedent -- or are there examples where we can amend the _four fifths requirement to four fifths of those present, so that if three Commissioners are regularly here, it would be a unanimous vote of those present to get to the four -fifths of those present? Is that an amendment to the bylaws of the CRA that we could adopt for future --? Because otherwise, we simply will not be able to do four -fifths items, and that's not the spirit of why that protection was put in place. Mr. Alban: The four --fifths that we're getting -- that we come up with usually comes from the Procurement Code. Chair Russell: Yes. Mr. Alban: So we would have to do an amendment to the Procurement Code, and the City would do that amendment to the Procurement Code. Chair Russell: So it would be from the City, because we adopted these -- Mr. Alban: Yes. Chair Russell: -- measures at the CRA level. It wasn't -- Mr. Alban: Yeah. You adopted Chapter 18 of the City Code to apply to the CRAs, so you would have to amend the City's Code. And I believe the way the CRA statute was amended was that you have to adopt the Procurement Code -- OMNI Community Redevelopment Agency Page 5 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 Chair Russell: Of the City. Mr. Alban: -- of the governing body. Right. Chair Russell: Okay. We'll talk more about that offline, because I would like to prepare something with regard to that so that we can get the business of the CRA done; also having good oversight. So we can't take up Item 7; at least, unless another Commissioner comes. All right. Thank you, Xavier, unless anyone has other questions for you. Is there anyone else here who would like to speak on any of the items on this agenda, Items 1 through 9? None? All right. 1 will close public comment, and 1'll just go through them one at a time very quickly, please. OMNI CRA RESOLUTION(S) 1. OMNI CRA RESOLUTION 6721 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("CRA") ALLOCATING $750,000.00 TO A BUSINESS GRANT PROGRAM FOR THE PURPOSES OF BUSINESS DEVELOPMENT IN THE OMNI REDEVELOPMENT AREA FROM ACCOUNT NO. 10040.920501.883000; AUTHORIZING THE EXECUTIVE DIRECTOR TO DISBURSE FUNDS SOLELY IN HIS DISCRETION AS A GRANT, A LOAN TO BUSINESS ENTITIES, ON A REIMBURSEMENT BASIS TO BUSINESS ENTITIES, OR DIRECTLY TO VENDORS UPON PRESENTATION OF INVOICES AND/OR SATISFACTORY DOCUMENTATION TO QUALIFYING BUSINESSES IN ORDER TO DISBURSE FUNDS AS STATED HEREIN SUBJECT TO THE AVAILABILITY OF FUNDS; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE ANY AND ALL NECESSARY DOCUMENTS, ALL IN A FORM ACCEPTABLE TO THE GENERAL COUNSEL, FOR THE PURPOSES STATED HEREIN. ENACTMENT NUMBER: CRA-R-19-0041 MOTION TO: Adopt RESULT: ADOPTED MOVER: Wifredo (Willy) Gort, Board Member, District One SECONDER: Kean Hardemon, Board Member, District Five AYES: Russell, Hardemon, Gort ABSENT: Carollo, Reyes Chair Russell: Item number 1. This is for a series of business grants. Is there a motion on Item Number 1? Board Member Gort: I'll move it for discussion. Chair Russell: Thank you. It's been moved -- Vice Chair Hardemon: Second. Chair Russell: -- seconded by Commissioner Hardemon. Open for discussion on the dais. OMNI Community Redevelopment Agency Page 6 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 Board Member Gort: 1 have a question for the Executive Director, to come up with some --1 don't know if this has been approved in the past, and we utilized this in the past. And I want to see some of the results that they -- have taken place in the past, how successful it's been. Jason Walker (Executive Director/Omni Community Redevelopment Agency): Yes, sir. We are preparing what you asked for yesterday, which is a list of all the businesses, which we have, which we didn't bring, but we're preparing more pictures, so you can see the inside of the locations. We have produced several videos that we'll be sending to your offices, with a couple of the businesses that we've opened. And to your point in our briefing and to Commissioner Hardemon's point in our last meeting at City Hall, last year alone, this program created 85 jobs within the Omni district, and we have a printout of those 85 jobs, and the yellow outline are the, folks that actually live in either the Overtown CRA (Community Redevelopment Agency) or the Omni CRA. And so, we're gathering that information for you, to get to you as soon as possible. Chair Russell: And this is amongst 15 grants that were given to 15 different small businesses, correct? Mr. Walker: Yes, sir. Board Member Gort: Okay. Thank you. You better pay attention to your secretary. Chair Russell: Big hug. Thank you. There is a motion and a second. Further discussion on the business grants, $750,000? Any further discussion? All in favor, say "aye." The Board (Collectively): Aye. Chair Russell: Any opposed? Motion passes. Thank you on Item 1. OMNI Community Redevelopment Agency Page 7 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 2. OMNI CRA RESOLUTION 6722 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING THE ISSUANCE OF A GRANT FROM 2019-2020 OMNI TAX INCREMENT BUDGET LINE ITEM 26 PAGE 5 IN AN AMOUNT NOT TO EXCEED $375,000.00 TO THE DOWNTOWN DEVELOPMENT AUTHORITY OF THE CITY OF MIAMI, FLORIDA TO EXPAND 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 TO EFFECTUATE THE PROGRAM, ALL IN A FORM ACCEPTABLE TO THE GENERAL COUNSEL. ENACTMENT NUMBER: CRA-R-19-0042 MOTION TO: Adopt RESULT: ADOPTED MOVER: Wifredo (Willy) Gort, Board Member, District One SECONDER: Keon Hardemon, Board Member, District Five AYES: Russell, Hardemon, Gort ABSENT: Carollo, Reyes Chair Russell: Item Number 2 is the expansion of our homeless employment program for beautification; otherwise known as the "Purple Shirts" here. We have been working with Chapman and their homeless population -- their formerly homeless population with employment. This expansion, if I'm not mistaken, would double the budget, Mr. Executive Director? Jason Walker (Executive Director/Omni Community Redevelopment Agency): Yes, sir. Chair Russell: And allow us to also start working together with Lotus House for employment opportunities within beautification throughout the CRA (Community Redevelopment Agency) district. Is there a motion on -- Board Member Gort: Move it. Chair Russell: -- Item 2? It's moved -- Vice Chair Hardemon: Second. Chair Russell: -- seconded by Commissioner Hardemon. Any further discussion from the dais? All in favor, say "aye." The Board (Collectively): Aye. Chair Russell: Any opposed? Motion passes. This is an excellent program. It started in the Downtown Development Authority, it is expanding through the CRA, and I'd love to see it go further citywide. OMNI Community Redevelopment Agency Page 8 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 3. OMNI CRA RESOLUTION 6715 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("OMNI CRA") AUTHORIZING THE ISSUANCE OF A GRANT IN AN AMOUNT NOT TO EXCEED NINE HUNDRED SEVENTY FIVE THOUSAND DOLLARS ($975,000.00) TO THE CITY OF MIAMI ("CITY") FOR COSTS ASSOCIATED WITH THE CAPITAL IMPROVEMENT OF THE TRAFFIC CIRCLE AT NORTH BAYSHORE DRIVE ("PROJECT") LOCATED WITHIN THE BOUNDARIES OF THE OMNI REDEVELOPMENT AREA WITH ALL WORK TO BE PERFORMED THROUGH THE CITY'S OFFICE OF CAPITAL IMPROVEMENTS; AUTHORIZING THE EXECUTIVE DIRECTOR TO APPOINT A REPRESENTATIVE FROM THE OMNI CRA TO BE ADVISED ON ALL PLANS AND PROPOSALS FOR THE PROJECT; AUTHORIZING THE EXECUTIVE DIRECTOR TO DISBURSE FUNDS ON A REIMBURSEMENT BASIS OR DIRECTLY TO VENDORS, AT THE EXECUTIVE DIRECTOR'S SOLE DISCRETION, UPON THE PRESENTATION OF SATISFACTORY INVOICES AND DOCUMENTATION; AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE ANY AND ALL DOCUMENTS NECESSARY FOR SAID PURPOSE, ALL IN A FORM ACCEPTABLE TO GENERAL COUNSEL; ALLOCATING FUNDS FROM 2019-2020 OMNI BUDGET LINE ITEM 31. ENACTMENT NUMBER: CRA-R-19-0043 MOTION TO: Adopt RESULT: ADOPTED MOVER: Keon Hardemon, Board Member, District Five SECONDER: Wifredo (Willy) Gort, Board Member, District One AYES: Russell, Hardemon, Gort ABSENT: Carollo, Reyes Chair Russell: Number -- Item Number 3 has to do with capital improvement to an area of the Omni, which involves a traffic circle long -advocated for by residents of the area; a difficult traffic spot. Vice Chair Hardemon: So moved. Chair Russell: It's been moved by Commissioner Hardemon -- Board Member Gort: Second. Chair Russell: -- seconded by Commissioner Gort. Any further discussion on Item Number 3? Hearing none, all in favor, say "aye." The Board (Collectively): Aye. Chair Russell: Any opposed? Motion passes on 3. Thank you. OMNI Community Redevelopment Agency Page 9 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 4. OMNI CRA RESOLUTION 6716 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("CRA") AUTHORIZING THE ISSUANCE OF A GRANT IN AN AMOUNT NOT TO EXCEED SIX HUNDRED NINETY THREE THOUSAND DOLLARS ($693,000.00) TO THE CITY OF MIAMI FOR COSTS ASSOCIATED WITH THE CAPITAL IMPROVEMENT OF NE 4TH AVE CRESCENT PARK ("PROJECT"), LOCATED WITHIN THE REDEVELOPMENT AREA, WITH ALL WORK TO BE PERFORMED THROUGH THE CITY OF MIAMI'S OFFICE OF CAPITAL IMPROVEMENTS; AUTHORIZING THE EXECUTIVE DIRECTOR TO APPOINT A REPRESENTATIVE FROM THE CRA TO BE ADVISED ON ALL PLANS AND PROPOSALS FOR THE PROJECT; AUTHORIZING THE EXECUTIVE DIRECTOR TO DISBURSE FUNDS ON A REIMBURSEMENT BASIS OR DIRECTLY TO VENDORS, SOLELY WITHIN THE EXECUTIVE DIRECTOR'S DISCRETION, UPON THE PRESENTATION OF SATISFACTORY INVOICES AND DOCUMENTATION; AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE ANY AND ALL DOCUMENTS NECESSARY FOR SAID PURPOSE, ALL IN A FORM ACCEPTABLE TO GENERAL COUNSEL; ALLOCATING FUNDS FROM 2019-2020 OMNI CRA BUDGET PAGE 5, LINE 31 ($25K), PAGE 5, LINE 27 ($356,937), AND THE REMAINDER FROM PAGE 4, LINE 13 ($311,063). ENACTMENT NUMBER: CRA-R-19-0044 MOTION TO: Adopt RESULT: ADOPTED MOVER: Keon Hardemon, Board Member, District Five SECONDER: Wifredo (Willy) Gort, Board Member, District One AYES: Russell, Hardemon, Gort ABSENT: Carollo, Reyes Chair Russell: Item Number 4 is a blighted area west of Margaret Pace Parks -- Margaret Pace Park. It's an area that we would like to improve for park improvements, and we call them the "crescent parks. " They're undeveloped blighted areas just abutting Biscayne Boulevard, which the CRA (Community Redevelopment Agency) would like to invest in; work together with the City to improve that space for beautification and public access. That's $693,000. Is there a motion on Item 4? Vice Chair Hardemon: So moved. Chair Russell: Moved by Commissioner Hardemon. Board Member Gort: This is located on 4th Avenue and what street? Chair Russell: This is on 18th Street Northeast, and the street bifurcates the two pieces of the crescent. Board Member Gort.. Second. Chair Russell.• Seconded by Commissioner Gort. Any further discussion? All in favor, say "aye." The Board (Collectively): Aye. Chair Russell: Any opposed? Motion passes on Item 4. OMNI Community Redevelopment Agency Page 10 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 5. OMNI CRA RESOLUTION 6723 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 FINDING THAT COMPETITIVE NEGOTIATION METHODS AND PROCEDURES ARE NOT PRACTICABLE OR ADVANTAGEOUS PURSUANT TO SECTION 18-85(A) OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, AS ADOPTED BY THE CRA; WAIVING THE REQUIREMENTS FOR SAID PROCEDURES; AUTHORIZING THE ALLOCATION OF GRANT FUNDS FROM OMNI CRA TIF REVENUE 2019-2020 BUDGET RESERVE IN AN AMOUNT NOT TO EXCEED $100,000.00 TO THE SUNDARI FOUNDATION INC., D/B/A LOTUS HOUSE ("LOTUS HOUSE") TO UNDERWRITE A PORTION OF COSTS ASSOCIATED WITH THE "LOTUS HOUSE PROGRAM" ("PROGRAM"); AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE ANY AND ALL DOCUMENTS NECESSARY TO EFFECTUATE THE PROGRAM, ALL IN A FORM ACCEPTABLE TO THE GENERAL COUNSEL. ENACTMENT NUMBER: CRA-R-19-0045 MOTION TO: Adopt with Modification(s) RESULT: ADOPTED WITH MODIFICATION(S) MOVER: Wifredo (Willy) Gort, Board Member, District One SECONDER: Keon Hardemon, Board Member, District Five AYES: Russell, Hardemon, Gort ABSENT: Carollo, Reyes Chair Russell: Item 5 is a four -fifths, $100,000 grant to Lotus House, which we will -- I'll seek a motion to deftr this item to the next -- or continue this item to the next meeting, please, or open for discussion, either way. Vice Chair Hardemon: You know, I mean, I was thinking the motion to defer would be on 5, 6, and 7 and 8, as well; it a four -fifths. Board Member Gort: Yeah, $100, 000, that shouldn't be four -fifths. Unidentified Speaker: 7 was not a four -fifths. Chair Russell:: Let's start with Number 5, Xavi. Vice Chair Hardemon: Yeah, but 7 is related. Chair Russell: It is related, but let's start with Number 5 just to -- Vice Chair Hardemon: So moved for the deferral. Chair Russell: And question for the City Attorney. Is there any requirement for four -fifths based on the amount, or is it strictly by the procurement? Board Member Gort: Procurement. OMNI Community Redevelopment Agency Page 11 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 Xavier Alban (Assistant City Attorney): Yeah, it's procurement, and there's an amount on there as well, because of the (UNINTELLIGIBLE). It's similar to -- for example, like the API (Anti -Poverty Initiative) funds, where you have about 50 -- we have to -- well, actually, maybe 25, as well, depending on the item. Yeah. Chair Russell: Got it. So there's a motion to defer Item Number 5 or continue to the next meeting. Board Member Gort: Question. Chair Russell: Yes. Vice Chair Hardemon: Continue (UNINTELLIGIBLE). Board Member Gort: How 'bout if you make a motion, 50,000? Mr. Alban: I apologize. Where I stated 50, I think that that would be API funds, because the API funds actually have a specific line item for exemption in the procurement code, under 1872, so it would be 25,000. Chair Russell: 25,000 would be the limit before we would need a four fifths vote of' this board; is that --? Mr. Alban: Yes. Chair Russell: I would open -- I'm certainly open to -- Vice Chair Hardemon: (UNINTELLIGIBLE) million -dollar organization (UNINTELLIGIBLE). Board Member Gort: I make a motion on 25. Chair Russell: All right. It's been moved by Commissioner Gort to move the item with an amendment, bringing it down to $25, 000 grant, which would bring it down to a three -fifths. Is there a second on that? Vice Chair Hardemon: Would you like a second? Chair Russell: Yes, please, sir. Vice Chair Hardemon: Second. Chair Russell: Thank you very much. Any further discussion? And they actually didn't -- they were prepared to come today, but we didn't expect we would be able to vote on it, but I appreciate Commissioner Gort's amendment, so they can at least get started. This will be supplying for additional beds and support that Lotus is seeking. Any further discussion from the dais? Hearing none, all in favor, say "aye." The Board (Collectively): Aye. Chair Russell: Any opposed? Motion passes, as amended. And that's Item Number 5. OMNI Community Redevelopment Agency Page 12 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 6. OMNI CRA RESOLUTION 6717 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 WITH SUPPORTING DOCUMENTS ALLOCATING GRANT FUNDS OF $6,500,000.00 FOR A MIXED -USE PROJECT DEVELOPMENT OF PROPERTIES LOCATED AT 70 NE 17TH STREET, 90 NE 17TH STREET, AND 1642 NE 1ST AVENUE, MIAMI, FLORIDA, ALL LOCATED IN THE REDEVELOPMENT AREA, TO NR INVESTMENTS 11, LLC, SUBJECT TO THE CRA BEING ABLE TO SUCCESSFULLY SECURE FUNDING FROM A FINANCIAL INSTITUTION AND SUBJECT TO THE AVAILABILITY OF FUNDS; AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE ANY AND ALL DOCUMENTS, ALL IN A FORM ACCEPTABLE TO THE GENERAL COUNSEL, FOR THE PURPOSES STATED HEREIN. MOTION TO: Continue RESULT: CONTINUED MOVER: Wifredo (Willy) Gort, Board Member, District One SECONDER: Kean Hardemon, Board Member, District Five AYES: Russell, Hardemon, Gort ABSENT: Carollo, Reyes Note for the Record: Item 6 was continued to the next scheduled OMNI Community Redevelopment Agency (CRA) Meeting. Chair Russell: I would like to set the intention on Item Number 7, if we can; although, without Item Number 6, it doesn't have very far to go. So if there's a motion to defer Item 6 and then a motion to pass Item 7, I think that would definitely set the intention of where we're trying to get with these affordable and workforce units in the Omni, and then we need to work toward how we get to that four --fifths, either through quorum or adjustment of quorum rules, one of the two. Is there a motion to continue Item 6, please? Board Member Gort: Move it. Chair Russell: Moved. Vice Chair Hardemon: Second. Chair Russell: Seconded by Commissioner Hardemon. Any further discussion? All in favor, say "aye." The Board (Collectively): Aye. Chair Russell: Motion passes on Item 6 for (UNINTELLIGIBLE). OMNI Community Redevelopment Agency Page 13 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 Board Member Gort: Let me ask a question on this item. My understanding is, it's two existing -- three existing buildings that have been built within the same conditions. Jason Walker (Executive Director/Omni Community Redevelopment Agency): Well, this would be a -- this is a new building. This is -- Board Member Gort: No, I understand it's a new building, but I mean, the facility or the people that go to these buildings that we have built before, the people there, they're utilizing the rents, and they move into the building, because one of the discussion we have for this is that new entrepreneurs or new (UNINTELLIGIBLE) -- IT (Innovation and Technology). In other words, what are the example of the existing building that we have , for sale? Who lives in it, who does (UNINTELLIGIBLE), what's the mix, and so on? Chair Russell.: Would you like to -- the applicant to address it, Commissioner? Board Member Gort. Sure. Javier Fernandez: Sure. I'll do my best. Thank you, Mr. Chairman. I believe we have other buildings that have rent restrictions up to 140 percent of AMI (area median income) in the Omni, but none that actually have restrictions as to minimum units in the lower tiers from 60 to 80, 80 to 100, 80 to 120. And I believe in some of the zoning items the City's passed in the past, they have granted density increases, but allowed the rents to be all up to 140 percent of MIL So our building would be, I think, the first in that regard. Chair Russell: So just to clarify for the public, it's -- they weren't density increases, but rather, FLR (floor/lot ratio) increases -- Mr. Fernandez: Sony; correct. Chair Russell: -- to meet -- be able to open up the density that is currently available. This is the T6-24B legislation of inclusionary zoning. Prior to the legislation passing as a zoning transect, a few of the non -affordable local developers worked on a zoning change that would basically become the template for that T6-24B; of which, NR Investments was one. And so, they received additional FLR, and they created a covenant providing the 14 percent workforce housing amongst the units. This is a little different in that this a new development. Inclusionary zoning is a zoning technique to create affordable housing. In this case, we're doing an incentive program from the CRA (Community Redevelopment Agency) to fluid it. Item 6, which we're not able to pass, was an actual grant, and Item 7 is a tax incentive in order to accomplish this. But this goes much deeper than the affordable covenant within the inclusionary zoning, as this is going well below workforce, and it is the entire project, not just 14 percent, and that's why the Management, as well as myself, are in support of this concept. I believe it could spur the right type of growth, and then we're incentivizing non -affordable developers to become affordable developers, and this is new territory for us, because I think it'll help solve our crisis. OMNI Community Redevelopment Agency Page 14 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 7. OMNI CRA RESOLUTION 6720 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("CRA") AUTHORIZING THE CRA TO REBATE TO NR INVESTMENTS 11, LLC ("GRANTEE") THE TAX INCREMENT FINANCE ("TIF") REVENUES GENERATED ONLY FROM THE DEVELOPMENT BY THE GRANTEE OF THE 17TH STREET APARTMENT PROJECT ("PROJECT") IN AN AMOUNT NOT TO EXCEED 95% OF THE TIF COLLECTED FROM THE PROJECT ANNUALLY OR $420,000.00 ANNUALLY, WHICHEVER IS LESS, PER YEAR UNTIL 2030, OR UNTIL 2047 IF THE LIFE OF THE CRA IS EXTENDED TO 2047, FOR A TOTAL AMOUNT NOT TO EXCEED $8,471,238.00, PAYMENT TO BEGIN UPON SUBSTANTIAL COMPLETION AND THE PROJECT RECEIVING A CERTIFICATE OF OCCUPANCY, SUBJECT TO THE RENTS BEING RESTRICTED UNTIL 2038, OR UNTIL 2047 IF THE LIFE OF THE CRA IS EXTENDED TO 2047; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO FURTHER NEGOTIATE AND EXECUTE ANY AND ALL DOCUMENTS NECESSARY FOR SAID PURPOSE, ALL IN A FORM ACCEPTABLE TO GENERAL COUNSEL. ENACTMENT NUMBER: CRA-R-19-0046 MOTION TO: Adopt RESULT: ADOPTED MOVER: Wifredo (Willy) Gort, Board Member, District One SECONDER: Ken Russell, Board Member, District Two AYES: Russell, Gort NAYS: Hardemon ABSENT: Carollo, Reyes Chair Russell: So this -- the Item Number 7 is specifically about that tax increment financing. Did that answer your question, Commissioner Gort? Because this is -- Board Member Gort: Yeah. Chair Russell: -- new construction, non (UNINTELLIGIBLE). Board Member Gort: No, I understand that. I understand it's new construction. Chair Russell: Any further questions or discussion on Item Number 7? Vice Chair Hardemon: I just don't -- I don't see -- the issue that I have with Number 7 is that we need Number 6. Number 6 is a grant to assist with building out this project. Number 7 is a TIF (Tax Increment Funds) revenue stream that is used in conjunction with Number 6 to help construct the project; 95 percent TIF revenue. 1 don't think that's anything -- I certainly haven't been a part of a 95 percent TIF revenue scheme [sic] before. So that is a tremendous amount of -- Javier Fernandez: Mr. Chair, If I could just clarify something on that -- Vice Chair Hardemon: -- TIF revenue. Mr. Fernandez: -- point, if I may? Remember, under your interlocal, unlike the Omni CRA (Community Redevelopment Agency), I think 35 percent of the revenues that are collected are actually sent back to the County under the clawback, so it's 95 percent of 65 percent, so we're on a slightly different basis. OMNI Community Redevelopment Agency Page 15 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 Vice Chair Hardemon: Right. So you have the sharing agreement -- Mr. Fernandez: Correct. Vice Chair Hardemon: -- that reduces the amount that this Omni CRA has left. Mr. Fernandez: Substantially, yeah. Vice Chair Hardemon: Same thing they do in the Southeast Overtown/Park West CRA. Mr. Fernandez: Not on all the parcels, as we know. Vice Chair Hardemon: Not at all of them, correct; not all the same. And so -- Chair Russell: His point is, it's a very generous -- Vice Chair Hardemon: It is -- I think it is generous, one. That's first. Second, you know, part of my worry will be granting a TIF where you also require a grant on the front end from the CRA, as well. What if,' eventually, all that you get is a granting of the TIF? That means that you'll have to go out and find the additional revenue to meet the development. Furthermore, the question becomes, does that then loosen the restrictions that we've allowed you to take upon because of the 95 percent? Because the way that even this item is start -- is stated, it makes reference to that initial -- Chair Russell: Grant. Vice Chair Hardemon: -- grant. And so, you know -- and part of the housing crisis is not just in attracting new residents to Miami and to these areas, residents that require housing at affordable rates, but what I find with the smaller units when you have flats or one -bedrooms, those individuals have a bit more flexibility, because they don't have the. families, so housing becomes extremely unaffordable for those of us who have one child or two children, or even, you know, two parents and one child. And so, you know, the question is, are we putting enough money into the right product? Should we reconsider exactly how we have it structured? Because maybe we can help -- you know, is it worth helping more complete families than it is helping individuals in trying to find housing options in South Florida? Because typically, people who are conning in at those rates, they have roommates. And I can look across the room and I can probably guess how many of us had a roommate at some time in our life, especially when we were starting our career. Some of you probably still have roommates in Tallahassee. Unidentified Speaker: Yeah. Vice Chair Hardemon: So -- Chair Russell: That's a good point, and I'd like to direct the question to Mr. Alban at the City Attorney office. Do these two items live independently or can they only survive together? For example, if we pass one, are they able to --? First of all, does the covenant of affordability attach to both items, or just one? And perhaps that's a question for the Executive Director. Isiaa Jones (Chief Legal Officer, Omni Community Redevelopment Agency): And I think this is a question we probably have asked the developer to clarify for us before, and I believe the last conversation we had was that we would -- I know that's a significant -- if we should pass one and not the other -- that's a significant gap that OMNI Community Redevelopment Agency Page 16 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 will not be financed for this project, and I'm sure that we may -- the benefits that we are being offered now will probably be tailored accordingly, and that'll give the developer a chance to answer that question for us. Chair Russell: Well, the intention is not to tailor the requirements, but rather to get the other half passed (UNINTELLIGIBLE). So the question is -- I mean, we don't want to do this halfway. This is an amazing potential project of complete of ordability throughout the project, workforce and affordability throughout the project. So the goal is to get both -- and that's probably why Commissioner Hardemon was looking to pass both of them together, or not at all, at this time. So, really, it's trying to find the fitill understanding of what it means to pass one without the other at this point. So my question is, does the affordability covenant attach to Item 7 or Item 6? Mr. Fernandez: I think -- Mr. Chair, if I can help my colleagues here. I think we haven't -- we've negotiated terms. We haven't negotiated an agreement, but I would imagine that it would be an exhibit to the tax increment .finance agreement, and likely, an exhibit to the grant agreement, as well, so it'd be a companion to both. Chair Russell: Let me just check here. Yes, I do see it on Item 7 in the TIF agreement that it is clear there. So even with just that alone, at the 95 percent TIP, the All 252-unit breakdown is still a requirement. Of course, financially, it doesn't work out until you fill that other gap, one way or the other, so we need to pass this other item for you to enact it. So -- Mr. Fernandez: That's correct. Chair Russell: -- it doesn't -- Mr. Fernandez: Mr. Chair, I think -- if I could just say this for the record, and for the benefit of the members of the board we had less engagement with on this issue. I think, from our perspective, we've been having this conversation for a good while, and I think we'd like to see at least that first step taken with respect to the second agreement, understanding that we have a lot of work to do still to address the issue of the six -and -a -half -million -dollar grant. If that's the board's pleasure, and you're willing to take it up, we certainly would appreciate at least an indication of the board's support for the TIF agreement. Chair Russell: Would -- Xavi, would -- Alban, would passing this constitute a vested right we are giving to them of value that would not be able to be rescinded if we never get a quorum or we --? Vice Chair Hardemon: This is a TIF, or you'll fight for it at least, as you should. I mean, as -- you represent this entity that was promised 95 percent of TIF revenue. I mean, I would fight for it. Chair Russell: Based on their obligation and ability to create 252 units of affordability, though. Mr. Fernandez: Yeah, I think that's the key issue, Commissioner. Mr. Chairman, you hit it on point. We'd have to deliver the full balance of the units in order to demand that benefit, and I don't think we currently, as we understand the financing, could make that work without the grant, so. Chair Russell: So what I'd like to make sure, if we're going to pass this on its own, that it becomes contingent upon that, not as a prerequisite, and I'm sure it's worded - - I would assume it's worded that way to do so; that only once they create the units OMNI Community Redevelopment Agency Page 17 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 and the affordability is created is the TIF then granted. Okay. With that in mind, I'm fine passing 7 as we are. And then, 1 believe, to me, that creates the momentum and pressure to get the other half here. And hopefully, you'll have luck getting another Commissioner to hear, as well, because it certainly benefits your project to make sure we've got the buy -in of four out of five Commissioners for such a large grant. So with that being stated, are there any --? I mean, Commissioner Hardemon, you've expressed concerns with regard to the family breakdown of the unit size. Is there any -- are you seeking any changes or amendment, or suggestions? Vice Chair Hardemon: I mean, I'm not seeking a change right here on the floor. I think that we have -- it's obvious that we have more time to consider this project. I'm sure you want us to commit to one part of it, but I don't think that's the smartest thing for us to -- as a board to do. I think that they should move together, because that's our bargaining authority, right? I mean, 95 percent of the TIF revenue is a significant amount of TIF revenue, and it's at the top end of our ability to kind of bargain with you. So 95 percent of the TIF revenue, which is a cash grant, and then another cash grant on top of -- Unidentified Speaker: (UNINTELLIGIBLE). Vice Chair Hardemon: No, no, it's -- I understand; it's a rebate, but it amounts to money. It's cash money. And so, when you take that along with the grant -- this is a significant grant, which is good, because you're providing a product that is obviously needed; workforce housing. We all believe in workforce housing, but -- Nir Shoshani: Commissioner; if I may? Vice Chair Hardemon: Mm-hmm. Mr. Shoshani: Nir Shoshani. I disagree that it's significant. I think that when you look at the numbers, you find that this is a $75 million project. I know that it's a lot of money that we're asking for, but this mitigates half of our losses, or projected losses in case that the life of the CRA is extended until 2047; if it's not, then our losses increase. So I understand that it's a lot of money. I understand that the grant that we're asking is not something that happens every day. We've been working on it for three years with Director Walker and with his staff. I think this is an opportunity to make a statement in the Omni CRA that we are all about workforce. You asked about studios and one -bedrooms. We have another project that we've been looking after, 14th Street, which is exactly to attend one- and two -bedroom apartments for families. We have to start someplace. Land here has become very expensive. We started out at Filling Station at $100 a foot; we're now at $350 a foot. You can't expect within the Central Business District to have a true affordable product, because it's very unlikely; it doesn't make financial sense. And the grant that we'd ask the City for will be extremely high. So I think -- Vice Chair Hardemon: (UNINTELLIGIBLE). Mr. Shoshani: -- we've balanced it out between the product and between the assistance that we're requesting to form a unique product for young professionals and civil servants in our community. Vice Chair Hardemon: So the -- this CRA has already been generous, I would say, to your organizations in some buildings that you've completed in the Omni CRA area. We've had restrictions. We've had agreements that have been amended over time. You've been working on this for three years or so with the Executive Director, but I think all of that, it should be considered when we're considering making OMNI Community Redevelopment Agency Page 18 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 another grant to someone where there have been some agreements that have been made where we don't know -- quite frankly, in front of everyone, we don't know if you've met those commitments in the past. Now, this is another commitment that you're going to make to us, without regard to previous commitments. And in this commitment, you're saying that you're going to provide a certain level of affordability to us for the life of the CRA, if it is extended, as well. So from -- today we're in 2019. The first date is 2038, which is right around the corner, and then, if extended, some more years. We've been having some problems with extensions. Mr. Shoshani: Well, the life -- yes -- is until 2030 currently, and we voluntarily extended our commitment and 100 percent restriction to 2038. So we've extended -- Vice Chair Hardemon: And then -- Mr. Shoshani: -- that eight years more. Vice Chair Hardemon: And I don't expect the building to be there just 10 years. I would expect the building's going to be there 50, 60, 70 years. Mr. Shoshani: So do we. Vice Chair Hardemon: So we're not talking about this in the life of you; we're talking about your children, your grandchildren. Mr. Shoshani: (UNINTELLIGIBLE) there. Vice Chair Hardemon: Exactly. So this is a deal that is much bigger, I would say, than what we're talking about. Mr. Shoshani: But only if we start -- Vice Chair Hardemon: And I think that's what you mean by when you say the grant amount isn't necessarily significant, because over time -- Mr. Shoshani: Commissioner, we need to start restricting buildings. If we don't restrict buildings, then everything you see here will become market. And when it becomes a market and when it trades hands, and it goes on to other developers and other potential funds that will buy all these units, those rents which are now market rents will become absurd. Vice Chair Hardemon: But the rents will always increase, because they're going to be a formula of the area median income. If you have in your building, for instance, in Canvass -- Mr. Shoshani: Yes. Vice Chair Hardemon: -- and in the -- what is it? The Filling Station? Mr. Shoshani: Yes. Vice Chair Hardemon: Right? What's the average rent there? Mr. Shoshani: Too high. Vice Chair Hardemon: Okay. Would you like to give us a number? Mr. Shoshani: I'm sorry? OMNI Community Redevelopment Agency Page 19 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 Vice Chair Hardemon: Would you like to give us a number? Mr. Shoshani: About 250 a foot. Vice Chair Hardemon: And what does that mean for a normal square foot apartment? Mr. Shoshani: That means Brickell prices. Unidentified Speaker: 3,000. Vice Chair Hardemon: Can you give me an average --? Mr. Shoshani: 3,000. Unidentified Speaker: 3,000 a month for an average apartment. Mr. Shoshani: Yes. Vice Chair Hardemon: Okay. So an average -- Mr. Shoshani: Between 2,500 and 3,200. Unidentified Speaker: The cheapest you'll see is 22 to 2,500. Vice Chair Hardemon: Okay. Mr. Shoshani: There's nothing in the market within the $900 range -- Vice Chair Hardemon: So -- but my -- Mr. Shoshani: -- that we're proposing. Vice Chair Hardemon: -- point is, those are the units that make money. They make sense, right? Mr. Shoshani: Yes. Vice Chair Hardemon: Other than that, you need a -- some sort of grant to make it work. And so, my point to you is, as long as you have new buildings that are being built in the Omni area, which will continue to be built at a market rate, it's going to affect our area median income. The area median income is the function that we use to provide affordable housing. Mr. Shoshani: Correct. Vice Chair Hardemon: And so, what is affordable will always be a function of the average rents in the area. Mr. Shoshani: Agreed. Vice Chair Hardemon: And then what we're talking about still is rent and not necessarily homeownership. So, you know, I'm a big proponent of finding affordable rents, but of course, we also need to find affordable homeownership, and that could be through condominiums or whatever it may be. But -- so, you know, the conversation about affordability and the rents, I think it's a conversation that we're OMNI Community Redevelopment Agency Page 20 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 kicking down the road, and it's going to be worse and even worse and even worse, unless there's a better function. Mr. Shoshani: Commissioner, we've proposed 30 units at Canvass to do just that, by the way. Chair Russell: Ownership. Yes, that's another program for potential ownership. Mr. Shoshani: Yes. Chair Russell: And certainly, we're not able to solve the entire issue in one project. I think this does take a really good step in the right direction. I do respect very much Commissioner Hardemon's points and advice on this. He's done a lot more TIF deals and affordable deals in the Overtown CRA than we've been able to accomplish in the Omni, and I want to get it right. But if I understand correctly, between the grant and the tax increment financing, we're looking at about $16 million in subsidy, more or less, if I'm not mistaken. Mr. Shoshani: If there's an extension of life until (UNINTELLIGIBLE). Chair Russell: If there's an extension of life. Board Member Gort: (UNINTELLIGIBLE) extension. My understanding was about $9 million. Unidentified Speaker: It's 10.4 (UNINTELLIGIBLE). Mr. Shoshani: Go ahead. Board Member Gort: That's what I was told. Mr. Fernandez: If I could just clam just again, today's dollars, it's about $10 million. Chair Russell: 10 million, right. But over time, it says the maximum could be 8. Mr. Fernandez: Eight and a half would be the gross -- Chair Russell: The gross. Mr. Fernandez: -- on the TIF deal. Chair Russell: Correct. Mr. Fernandez: So it's about $15 million between the grant -- Chair Russell: Got it. Mr. Fernandez: -- and the TIF. Chair Russell: And so, at -- even at that amount, at 252 units, this CRA would be investing about 50,000 a unit to get 28 years of workforce rates and below -- Mr. Fernandez: That's $41,000 in today's dollars. Chair Russell: -- which, to me, seems like a pretty good investment. OMNI Community Redevelopment Agency Page 21 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 Mr. Fernandez: It's -- and to give you some perspective, it's about a sixth of what you would invest in a typical affordable housing deal. Chair Russell: Min-hmm. Mr. Fernandez: So typically in a -- some of the other deals you've seen, you've seen about $240, 000 of subsidy on a per -unit basis. Chair Russell: I'm happy with the efficiency, of the financing. I want to make sure we're getting the product that serves the community best. Mr. Fernandez: Sure. Chair Russell: Commissioner Hardemon, did you want to dive deeper on this over the next couple weeks to work on a recommendation for them with regard to the breakdown of the units versus the subsidy that's being given? Vice Chair Hardemon: I at least want to have a conversation about it. So I mean, it's something that I want to further consider, because after all, you need four votes. Board Member Gort: Yeah. Vice Chair Hardemon: Today, you may have two. That's a long way from four, but, you know, I could count, so. I might not be able to count as well as you all with the 2,200, Brickell prices, you know. I'm a little kid from Liberty City, but -- Chair Russell: Commissioner Gort. Board Member Gort: I understand Commissioner Hardemon. I've been with him for quite a while (UNINTELLIGIBLE) a lot of with this tax increment, but let me tell you all something. With second place in our neighborhoods, land gets more expensive every day. And in order to really build affordable housing and workforce housing, the Government has to step up and give a lot of incentives, not -- Let's face it; people in business to make money, so if we don't create incentive, and we don't give them the opportunity, nothing's going to happen, because what happens -- if they don't get to build there, somebody's going to come and going to offer twice what he paid for the land, and they're going to build something else. So this is something we have to look into it, because we all want affordable housing, workforce houses, but we have to give the incentives. If we don't have the incentives, the private sector's not going to do it. Chair Russell: Yeah. Mr. Executive Director. Mr. Walker: Mr. Chairman, if you decide to talk about this a little more, I think there's some time restrictions on this that the developer may want to bring to the table. Chair Russell: Of course. Mr. Walker: So I think we have a meeting -- a special meeting scheduled for City Commission on the 12th, and I think the next regularly, scheduled Commission meeting is on the 21 st. So if we can be able to get on one of those meetings, that would be good. Chair Russell: I'd be open to that. We could schedule it either before or after the special meeting on the 12th. We would certainly have a quorum of four at a meeting such as that, and that would give a few days for Commissioner Hardemon to weigh OMNI Community Redevelopment Agency Page 22 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 in and study this a little better, to see -- And, you know, this may be a good idea as well, because if we come up with a better adjustment to the housing mix and the rental price mix, or the configuration of the units, we would have to change both of them. We'd have to go back and change 7 later. So -- Mr. Shoshani: Which -- Chairman, we would be very ha -- gladly do. I think that what we're looking for here to do today is to take the first step. I think it's been a long time in the process. I think we've discussed it quite a lot, and at least from our standpoint, to have a direction, because this is -- this land is within the opportunity zone. We're going against time. This is a project that we've been working on for at least a year and a half only on this. If we could have a direction knowing that the CRA sees eye to eye with us on this issue, then -- and we can vote on 7 without voting on 6, we'd be very happy with that. Vice Chair Hardemon: What's your potential savings in the opportunity zone for a project like this? Mr. Shoshani: Savings, sir? Chair Russell: Incentive. Mr. Shoshani: You're talking about ordinary income? You're talking about keeping the project for five years. I believe it's at 10 percent? Unidentified Speaker: 10 years. Mr. Shoshani: 10 percent -- Unidentified Speaker: 10 years. Mr. Shoshani: -- discount. 10 plus 5. 10 plus 5? Vice Chair Hardemon: I thought it was more than that after a certain amount of years. Terry Wellons: So to be clear -- Todd B. Hannon (Clerk of the Board): Chair? Chair Russell: If you could come to the mike, please; introduce yourself. Mr. Wellons: Teriy Wellons, NR Investments. To be clear, the opportunity zone -- I think you all attended the summit; at least I know Commissioner Russell did. So the rules are, you have to own the property for five years, and you can obtain a 10 percent discount on your current tax bill. If you hold it for seven, it goes up to 15. And then there's an additional benefit for holding it 10 years or longer, and that's a good thing -- Vice Chair Hardemon: And what's the -- Mr. Wellons: -- because we're actually long-term holders here, so it's beneficial to us, as well. Vice Chair Hardemon: -- benefit of 10 years or longer? Mr. Wellons: The benefit at the end is if you make a gain in the end, you don't have to pay capital gains at the end. If you lose, there's no benefit. OMNI Community Redevelopment Agency Page 23 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 Vice Chair Hardemon: Right. We're going to win. Mr. Shoshani: But (UNINTELLIGIBLE) restrict (UNINTELLIGIBLE) 2047, Commissioner. Vice Chair Hardemon: But the point is that past 10 years, there's a 100 percent capital gains tax. Mr. Wellons: 1 haven't seen those statistics, so I don't know. Mr. Shoshani: We're not considering that, because the plan is to have the extension of life and to restrict it until 2047. Vice Chair Hardemon: What's your son's name? Is that your son? Unidentified Speaker: Gila (phonetic). Vice Chair Hardemon: When you sell it, you won't pay capital gains tax. Unidentified Speaker: When I sell it? Mr. Wellons: That's not true, because -- Vice Chair Hardemon: No, no, no. Mr. Wellons: That's not true. That benefit goes away in like 2045. Vice Chair Hardemon: Okay. Mr. Wellons: So you have to sell it by then and pay the tax. Vice Chair Hardemon: Or not pay the -- sell it before and not pay the tax. Mr. Wellons: Sell it before and not pay the tax -- Vice Chair Hardemon: Okay. Mr. Wellons: -- if you make a gain. Vice Chair Hardemon: If you make a gain. Mr. Wellons: And don't forget; our gains will be less, because we've restricted those rents. Vice Chair Hardemon: For the short term. For -- during the (UNINTELLIGIBLE). Mr. Wellons: (UNINTELLIGIBLE) the time that we need to sell it. Vice Chair Hardemon: During the time (UNINTELLIGIBLE). Mr. Wellons: During the time that we need to sell it -- Vice Chair Hardemon: Because after that -- Mr. Wellons: -- (UNINTELLIGIBLE) benefit that you're talking about. OMNI Community Redevelopment Agency Page 24 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 Vice Chair Hardemon: -- the gains will be there. I'm not -- see, the thing about it is this, I'm not trying to be smart. I want -- I'm just trying to be honest. 1 want things to be open. Mr. Wellons: As we are. Vice Chair Hardemon: So when we talk about the fact that, you know, there's not little -- there's not much profit in it, there's not this, there's not that. Well, there is a profit. Mr. Wellons: We're in this for profit. Vice Chair Hardemon: And then after that -- and then after the time of affordability, there will be a much greater profit. And any financial analysis that you look at will have that captured -- right? -- so that when you do sell it, you do have -- you will have capital gains and you won't have to pay a tax. And then that's also considered a part of the money that you made. That's what makes this financially viable. Chair Russell: So if we were to pass Item 7, and anything were to change between now and the next meeting with regard to 6, we would have to amend Item 7. We'd have to bring it back and reconsider it; is that correct, Xavi? And so, you're open to that? Mr, Shoshani: Yes, sir. Chair Russell: So you're -- what you're looking for is support on 7 to start the ball rolling, to create the momentum, to show the intention of this board -- Mr. Shoshani: I think it's important. Chair Russell: -- to move forward. Mr. Shoshani: I think it's important, Commissioner. Chair Russell: You may get a 2-1. Mr. Shoshani: (UNINTELLIGIBLE). Hopefully -- Vice Chair Hardemon: But you'll have 7. Mr. Shoshani: -- you're convinced. Vice Chair Hardemon: But you'll have 7. Mr. Shoshani: Don 't forget that I know your mother, Commissioner. Chair Russell: All right. Is there any further discussion on Item Number 7? Hearing none, all in favor of the item, say "aye." Board Member Gort: Aye. Chair Russell: Aye. Any opposed? Vice Chair Hardemon: Against. Chair Russell: Motion passes. And I believe we've already continued Item Number 6; is that correct? OMNI Community Redevelopment Agency Page 25 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 Vice Chair Hardemon: Correct. Chair Russell: Thank you. 8. OMNI CRA RESOLUTION 6724 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; ALLOCATING GRANT FUNDS IN THE NOT TO EXCEED TOTAL AMOUNT OF $696,000.00 FOR THE REHABILITATION OF THE PROPERTY LOCATED AT 1815 NW 1ST COURT, LOCATED IN THE CRA REDEVELOPMENT AREA TO CASA MIA APARTMENTS LLC, SUBJECT TO THE AVAILABILITY OF FUNDS; AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE ANY AND ALL DOCUMENTS NECESSARY, ALL IN A FORM ACCEPTABLE TO THE GENERAL COUNSEL. MOTION TO: Continue RESULT: CONTINUED MOVER: Kean Hardemon, Board Member, District Five SECONDER: Wifredo (Willy) Gort, Board Member, District One AYES: Russell, Hardemon, Gort ABSENT: Carollo, Reyes Note for the Record: Item 8 was continued to the next scheduled OMNI Community Redevelopment Agency (CRA) Meeting. Chair Russell: Item Number 8. Vice Chair Hardemon: Move to continue. Chair Russell: This is a four fifths. Move to continue Item Number 8. Is there a second, Commissioner Gort? Board Member Gort: Move it. Chair Russell: Moved and seconded. All in favor, say "aye." The Board (Collectively): Aye. Chair Russell: Any opposed? Motion passes. OMNI Community Redevelopment Agency Page 26 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 9. OMNI CRA RESOLUTION 6726 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("CRA") AUTHORIZING THE RELEASE OF THE DECLARATION OF RESTRICTIVE COVENANTS RUNNING WITH THE LAND REGARDING THE MIAMI WOMEN'S CLUB LOCATED AT 1737 NORTH BAYSHORE DRIVE, MIAMI, FLORIDA, EXECUTED IN FAVOR OF THE CRA, AND RECORDED AT BOOK 27102 AND PAGE 4686, ATTACHED AND INCORPORATED AS EXHIBIT "A"; AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE ANY AND ALL NECESSARY DOCUMENTS, ALL IN A FORM ACCEPTABLE TO THE GENERAL COUNSEL, FOR THE PURPOSES STATED HEREIN. MOTION TO: Continue RESULT: CONTINUED MOVER: Keon Hardemon, Board Member, District Five SECONDER: Ken Russell, Board Member, District Two AYES: Russell, Hardemon NAYS: Gort ABSENT: Carollo, Reyes Note for the Record: Item 9 was continued to the next scheduled OMNI Community Redevelopment Agency (CRA) Meeting. Chair Russell: And we'll take up the final item of the evening, which is the Women's Club restrictive covenant. I'd like to start with a discussion of this item on the dais. This was done before my, time, if not our time -- Board Member Gort: My time, too. Chair Russell: -- as members of this board of the CRA (Community Redevelopment Agency). A grant was given of $3.75 million for historic preservation, which is in the mission of this CRA, and we're doing it on other buildings. In fact, the building you're standing in is a recipient of CRA funds, in addition to Commission Ands, district funds, for historic preservation. And I'd like to thank Commissioner Hardemon -- we're in his district right now -- which received very little investment from the CRA prior because the border of our Commission districts don't line up with the border of the CRAs. But this was a very successful project of historic preservation dollars of the CRA, but it is City -owned, and there are other owned properties of either the CRA and/or the City we're working on, but I haven't had to deal with yet a private entity approaching us for historic preservation dollars, and I have to wonder what we would require or ask of them today. If someone came to us and said, "We're looking for $3.75 million of historic preservation funds," certainly we'd be in favor of doing it if it saved a historic structure. But what strings would we attach, or what would we ask in return that benefits the community even further in order for this financial benefit that the recipient would be receiving? And I haven't dealt with that before. But there was a contract put in place at this time that was signed by -- years ago that it would have to be reimbursed if any transfer of interest took place; if the building were sold, and further interpretations of that, the transfer -- the air rights were sold, and things like that. And it's hard for me to go back and understand what the spirit of that was and why that was done, but I don't believe that that's the way I would have structured it today. What requirements I would have asked for, I don't know at this point. And I'm certainly not trying to restrict the sale of your air rights, which would give you more historic preservation OMNI Community Redevelopment Agency Page 27 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 dollars. 1 think all of your air rights combined don't reimburse this grant. So I'm looking for something that serves the community beyond, because if we were to get the money back, we could roll it into other historic preservation items, but that's not what -- the business that we're in. That's not the way we normally work, but normally, I -- and if someone were to approach me today, I would be looking for a jobs program of some sort to encourage -- because certainly, once it's improved and they get tenants and they do subleases or they sell a portion, or whatever it is, they would be creating new jobs in the area through the restaurant that's coming, through whatever other tenants you get. And so, that was something I wanted to have a conversation about, and I know we haven't had a chance to do that up to now, but that's something Pm interested in. Is there something that we could do that would benefit the community in that sense? Because we have such a need for that. As we develop workforce housing, we need jobs in the area, and certainly, this could be a certain tenant. Would you like to address on the microphone? Metris Batts Coley: (UNINTELLIGIBLE). Chair Russell: Yes, of course. We can't capture the emphatic nodding in the minutes. Ms. Coley: Again, my name is Metris Batts Coley. I live at 1885 Northeast 121st Street. I'm a member of the Miami Women's Club. I've been a member since 2008. The Miami Women's Club is a nonprofit organization. Its mission is to be philanthropic and support the community. It is one of the few organizations that's left on this corridor. Catalyst (phonetic) Miami s getting ready to move; Parks .for Self:Employment is getting ready to move; the Peace Foundation building is closed. Allowing us to have full access to our resources allows us to again take the money and support the communities. I've been involved since 2008. We are finally, in a position with a new board in place who understands nonprofit, who understands service to be able to leverage the resources that we have, to support smaller organizations. Yes, we do do grants to small nonprofits, but having venue would allow us to help other organizations during their fund development. It would allow us to have internships. It would allow us to use our infrastructure and experience that we've had over the last 10 years to really help all of the organizations in South Florida. So when you talk about economic development, housing is important, but social services is also important. The organizations that we support financially and in -kind through volunteering are the very same organizations that are helping with training, job skills, clothing, and opportunities. We need the opportunity to use every resource that we have and the expertise, and learning from our experience to take that opportunity to partner and collaborate with the infrastructure. Now, if you need a written plan of how we're going to do that strategically, 1 can give you a written plan. The nonprofit industry is a $900 billion industry. We are a 501 (c)(3) that is positioned to use its influence and resources to really support social services. So you can have all the houses, you can have all the jobs, but if we're not allowed to use our resources to support the local organizations, it does a disservice to our mission. And why have the money if you can't do good in a community? Chair Russell.: Understood. Commissioner Gort. Board Member Gort: I think mainly what we're asking for is give us the numbers, who you've been helping in the past, who you're going to help in the future, because right now, both CRAs have a lot of programs where they're training people for the hospitality. I mean, you can also (UNINTELLIGIBLE) your people are going to rent the -- they're going to make the investment to employ individuals from the neighborhood. We have a lot of individuals that's taking those courses that qualify, and they need to start working. OMNI Community Redevelopment Agency Page 28 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 Ms. Coley: So, I understand that. So let me -- my background is economic development/social services. Board Member Gort: Good. Ms. Coley: I have worked for the biggest, best organizations in Dade County; Catalyst (phonetic) Miami, the Village South. So I understand the communities that's being served, but if an organization that has the resources that we have is not in position to support those other organizations that are preparing for economic development, we're not using our true benefit. So there is -- over this past year, we've probably given money to about 12 organizations that are local grassroots organizations. We have a recipient here. We have some others that came. I've called everybody, and said, "Come and show them what we've been doing quietly behind the scenes." So I do understand that we have a past, but going forward, if you need a strategic plan or a blueprint, or some documentation on how to leverage that, the board of directors and our members, we gladly can show you the numbers. Board Member Gort. I think that's what the board is looking for. We're going to give you certain benefits. You already have received some of the benefits from us. What are we going to give to the public; not to us, but to the public itself? Linda Joseph: I understand everything you're saying, but I wanted to bring to your attention that what you got for that $3.75 million was the bay walk, which was just dedicated about two weeks ago. So that was our prime property. If you're not on the water, you're not considered Bayfront property anymore. So we gave that to the City as a part of partnering with the City and trying to keep everything in that area moving, and everybody loves the bay walk. What we also know is that the tenant that we have already has a program that I think you were talking about that works with workforce housing and brings them in, and trains kids in restaurants, and trains kids in the hotel, and how to get jobs and how to do things like that. So I know that there will be more programs like that set up just with our tenant. Also, we're going to have a huge area that's going to be open to a lot of different organizations, which is what we did before. We were always open to let any clubs or any organizations that were doing good and were a 501(c)(3) to come in, have their meetings, have their workshops, and things like that, that they could do in that space. So that's what we do mostly, is we partner with other groups. We don't do as much as getting out and doing it our self [sic_, because we don't have the workforce to do that, but we do have the fiends, so we're able to partner with other organizations that do it. Chair Russell: Thank you. 1'd like to ask a little bit about the bay walk portion, because it's my understanding that within our Code, you would have already been responsible post -construction to dedicate the bay walk, to dedicate that 50 feet to the public. Was there something different in this agreement back then where you transferred title of the land to the City? Ms. Joseph: There was no construction planned at that time for the building so that would have all been in the future, and we had no way of looking down the future and seeing that that's what was going to happen with the building. Chair Russell: Right. So you allowed the City to do the construction (UNINTELLIGIBLE), but did you transfer the title of that portion of the land to the City? Does the City own that piece of bay walk (UNINTELLIGIBLE)? Ms. Joseph: They have an easement to it. Chair Russell: Okay. OMNI Community Redevelopment Agency Page 29 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 Ms. Joseph: That's what they have, is the 25 -- 23-foot easement. Chair Russell: Right. And Mr. Alban, under the City Code, this -- the 40-year recertification that the CRA paid for, that construction would have triggered the bay walk responsibility regardless, would it not? Xavier Alban (Assistant City Attorney): If you just give me a second, I'll look it up right now, but I'm not completely sure about that. Chair Russell: It's nay understanding that any vertical construction on anything T5 and up, we would -- it has the bay walk requirement already baked into it. So I got to just -- I just want to make sure we're very clear on the amount that -- because we could valuate what that land on waterfront is. And certainly, if it were given to the City or sold to the City in exchange for the grant, that would certainly be a fair trade, if you were, but if we're already within your responsibility upon redevelopment to give the easement already, I don't know that it's apples to apples. Mrs. Joseph: I can't say that what we're doing is a redevelopment. All we're doing is preserving what's there. Chair Russell: Sure. Ms. Joseph: We're not changing anything on the outside of that building. Chair Russell: So -- and you may be right. Ms. Joseph: So what we're doing -- yeah. Chair Russell: You may be right that that would not have triggered the bay walk responsibility. Ms. Joseph: 1 don't think it would have. Chair Russell: But opening up -- opening it up early, even though it's taken us this long to get it constructed, and the CRA was involved in that, as well, is certainly helpful. So we certainly -- we do appreciate that and recognize. I'm just trying to quantify the transaction here -- Ms. Joseph: Right. Chair Russell: -- because we weren't around back then to know exactly what was done. Commissioner Gort. Board Member Gort: Let me tell you, I'm all for it. I think that's a beautiful building, and I'm the one that passed an ordinance creating the rights .for the historical sites to go ahead and sell the air rights to maintain itself and so on, but I think you're talking about the agency you're helping. I think you have the members of the -- the Chairmen [sic] of the -- these CRAs, they know the agencies they're working with; they know people that already been trained; they've been qualified, and we want to make sure that your individuals -- I personally would like to see the restaurant people to do the job -- (UNINTELLIGIBLE) job fair for the people in this district, in the district of the CRA, where a lot of work is being put in this most need it. And we have a lot of people that have been trained and they've been qualified, and they should be hired. Chair Russell: Here's an idea, in the spirit of what Commissioner Gort is saying. And I'm glad to see Constance is here from Lotus. You weren't here for your item, OMNI Community Redevelopment Agency Page 30 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 but it passed what we were able to pass with a three -fifths majority, which is a 20,000 -- 25? Mr. Alban: 25. Chair Russell: -- $25, 000 grant to Lotus House, which, you know, gets women back on the first rung of the ladder and empowers them toward employment, and we're certainly -- through a CRA and the other grants, we're doing -- we're working at employing the formerly homeless, especially through Lotus House and Chapman within beautification, but I would really like to see us go even further for real jobs, you know, and not just necessarily beautification or sanitation jobs, but something that -- where they can really get a track to a -- a faster track to a stronger future, so a -- something within -- because obviously, you're not employing a lot ofpeople as a Women's Club; and so, I'm not trying to create a burden on you financially. What I'm trying to do is, as you are empowering others to create jobs through the leases with your tenants that you create a requirement within your tenant lease, your sublease to create -- to work together in this job creation program; not just a jobs fair for the local area, but to actually participate in training and empowering, and I know that your current tenant is engaged in that. I don't know in their current operation with your building, but they're doing it elsewhere. Ms. Joseph: They will be. Chair Russell: So how could we memorialize that? Because I don't believe that would create any burden to you. In fact, it would help you fulfill your mission of empowering women if it were focused on that way, and you've got a very willing partner, I would bet, in Lotus House in helping you identf local potential applicants for those jobs. Ms. Joseph: I appreciate it. And the problem is that we already have those leases in, you know, black and white, everything signed, and it has been for a long time on what we require of our tenant. We can only offer the space that we have. We have the third floor, so that's going to be -- and we can't demand that -- as I said, they're world -class restaurants. There's one coming from London that's going to be there, and one that's very well known in the Miami area and everyone knows, I'm sure, but we really can't demand who they hire, no more than the City of Miami can demand one of the leases that they have with a restaurant hire who they say they have to hire. So -- Board Member Gort: We do. Chair Russell: We do. Ms. Joseph: We do? Okay. Chair Russell: When we're providing a subsidy or using our land, we certainly, do have the ability to make those sorts of requests. Ms. Joseph: Okay. Hold on. Dusty Melton: So my name is Dusty Melton, formerly with Coconut Grove, District 2 -- Chair Russell: The mike. Mr. Melton: Oh, sorry, about that. OMNI Community Redevelopment Agency Page 31 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 Chair Russell: Just want to make sure you (UNINTELLIGIBLE). Mr. Melton: -- So I'm the consultant to the Miami Women's Club. As the President said, the lease agreements are in place, but I think it would be appropriate for the Club leadership to commit to this CRA board that it will go back to its partner who's doing the redevelopment, who's going to be building out the restaurants, and communicate the sentiments of this board and -- because they do have an excellent working relationship -- and bring your message and your desires, and your aspirement to the developer; and not revisit the lease instruments, but revisit the relationship, and impress upon them the huge importance of focusing on job opportunities and job training programs. And knowing them as I do, I think they're going to be very receptive of'that message, and I think the Club could commit tonight to carrying the message and doing its utmost to effect the desires that the board has expressed tonight. Ms. Joseph: Yeah, we could do that. Yes. I think that's no problem. (UNINTELLIGIBLE) the mike down. No problem. I think that we could do that with no problem at all, and try everything that we can to work on any programs that you have to offer. Also, that's the whole thing that -- what we do cis a Women's Club is the same thing that you do as CRA. We just try, to help people who need it. So that's what we're here for. Chair Russell: And we want to get you there, as well, because I certainly have no interest in being an overseer of who you transfer your interests to, who you lease to; it's none of our business. Our business was historic preservation; mission accomplished. And I just want to make sure that we're being good stewards of the CRA's money, and that its going toward the purposes in any way we can, and historic preservation is one of those, but certainly, job creation in the district and in this way -- Board Member Gort: Is very important. Chair Russell: -- has always been incredibiv important to us. So any opportunity we have, especially if there's a way we can work together with you, to get there. It doesn 't seem like it would be a burden on your club. It seems like it would fall a little bit on the shoulders of the tenants; and so, we would need to sort of hear their commitment on this. Ms. Joseph: We'd be happy to offer our space, and hopefully, be able to work with the tenants -- Chair Russell: For the -- Ms. Joseph: -- to be able to do something. Chair Russell: -- training and for the -- Ms. Joseph: Yes, training. Chair Russell: Yes. Board Member Gort: I'll make the motion. Ms. Joseph: Okay. Thank you. Board Member Gort: But we need some commitment from you all, and make sure the -- you get together, because I might not be here, but they're going to be here, and OMNI Community Redevelopment Agency Page 32 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 they're going to be asking a lot of questions. And if it's coming back again, make sure we get a runoff -- Ms. Joseph: Okay. Board Member Gort: -- so I can be at the meeting. Chair Russell: Did you have something else you wanted to say? Ms. Joseph: So again, I got involved with the Miami Women's Club because of the work that I do in the community. I met the Miami Women's Club through the Women's Fund at a domestic violence workshop, and they asked, after the workshop, to continue the work. Maurene (phonetic) Timoney volunteered at the Women's Club. I didn't know who they were. I said, "I would coordinate and mobilize women to come." They gave their space to me, an employee of the Village South, to host workshops and trainings to discuss domestic violence. This was in 2008. My background is economic development. I have enhanced and dedicated 10 years of my life to really help the Women's Club come into a place in time where we are diverse and we're getting into programming. Unlike a regular social service organization, we don't run programs. So the best thing that we could do is leverage our support. So I can say, "Yes, we can help our tenants coordinate and put all that in place without any problem," because that's how I've been engaging the community for the last 20 years. Chair Russell: I like that, and I appreciate it. We just don't have a way to guarantee they're going to do it, right? Ms. Coley: But you -- in the spirit of this, you want the training to be done. Chair Russell: Yes. Ms. Coley: We can coordinate that. So if you're asking us to give you something in writing -- Is that what you're asking us? Chair Russell: Yes. Ms. Joseph: Yes. Chair Russell: It's basically a way that gives us the commitment here, because what we're releasing -- even though this isn't generating new funds for you to And anything; this is really just releasing of a potential liability you would have that would limit your future ability, and that -- and we do want -- you can see the will here -- we haven't heart from Commissioner Hardemon -- but the will here is to try to create flexibility in this, because I do see a bit of an onerous restriction here that's keeping you from being able to fulfill your mission. We have a mission, as well, to fulfill, and it's partially fulfilled in doing the historic preservation, but we have many jobs as a CRA. So really just trying to get this memorialized in some official way, and even a proffer on the record here would be sufficient to that, even without -- Ms. Joseph: It's on the record. Chair Russell: -- you have to submit something in writing. But what does that exactly quanta, though? So it's space for training, and the encouragement to your tenants to take up a jobs program that they're not obligated to do, right? I don't -- and I don't mean to be negative about it. I just want to be realistic. Ms. Coley: I think the opportunity -- OMNI Community Redevelopment Agency Page 33 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 Unidentified Speaker: (UNINTELLIGIBLE) say yes. Ms. Coley: Yes. Chair Russell: Because that's -- Ms. Coley: Yes. Chair Russell: -- exactly what we're talking about, right? Ms. Coley: Yes. Chair Russell.: Constance, did you want to comment? I saw you signed in. Constance Collins: Yeah. Well, first, I just want to say "thank you" for the 25, 000; deeply appreciated. I also want to mention that for not only the Women's' Club, but any other employers who might be in here, Lotus House has three really important job training programs. One is the Hospital Institute that's embedded within Lotus House and provides real -world experience within our Village. The other is, we have a culinary program where our women become State -certified, State food handlers, and work in our commercial kitchens so that they are ready to be employed in restaurants in the hospitality industry. And thirdly, we support training in the security industry so that our women come through with security licenses. So we're always looking .for job opportunities, and we have a lot of amazing women who, yes, are temporarily experiencing homelessness; typically, because of domestic violence issues or other kinds of trauma histories. And we are hopeful that the community will reach out to us. If you have job opportunities, we would love to fill them. Chair Russell: Well, it sounds like we have potential ones right here. Ms. Joseph: Yes. Chair Russell: So if you're open to partnering with them in the space that they're offering, in addition to what space you have at Lotus -- Ms. Joseph: And I think we have partnered with them before. We also gave -- they were the recipient of $1,000 outreach donation that we gave to them about 18 months ago, 1 think. So we -- Chair Russell: So could you create a -- Ms. Joseph: -- recognize that they are doing a lot of good things. Chair Russell: -- partnership with Lotus with regard to this hospitality, training? Ms. Joseph: We're happy to partnership with anybody that's willing to show us that they have a need, yes. Chair Russell: Yes. Vice Chair Hardemon: Help me understand. The grant for just under $4 million, it was utilized to renovate the space. Ms. Joseph: Yes, it was. It was the 40-year recertification that had to be done that was -- all the windows and doors had to be hurricane; there had to be an alarm system -- a fire alarm system put in, and for structural problems. OMNI Community Redevelopment Agency Page 34 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 Vice Chair Hardemon: Right. 1 mean, it's -- those types of recertifications -- we see it in other areas -- they can be devastating to an organization that doesn't have the money to do it. Ms. Joseph: Yes. Vice Chair Hardemon: So the space was renovated. And the idea of the covenant was saying, "Look, we'll pay for the renovation, as long as you don't sell the property," because 1 would assume, if you were going to sell the property, they would want to be reimbursed the monies for selling the property. Isiaa Jones (Chief Legal Officer, Omni Community Redevelopment Agency): Or transfer any interest. Vice Chair Hardemon: But the way -- Right. So -- but the -- now the difference now is that this -- the line that says, "transfer any interest in the property,- that is in the ground, the physical structure, and then we're considering air rights. And so, these covenants, they don't have to be necessarily just eliminated. I mean, they can be -- Chair Russell: As a hybrid. Vice Chair Hardemon: Right. I mean, you can amend them, you know, to make certain considerations. There are a number of things you can do. And so, in the City of Miami, we have a history of getting into these covenant agreements, and then individuals coming back in . fairly short years to eliminate the covenant, because they've gotten what they've asked for. And so, they try to move on to something else. And so, I think, you know, the board tries to find at least some reason for us to eliminate this covenant, because the Omni CRA is out $3.7 million. We have a renovated structure, which I think is good, but certainly, you know, we made an agreement with an organization that is outside of this body. And we look at other agreements that we've made that give grants. They're typically given to facilities to make them historic, et cetera, but they're a 501(c)(3) arm, and there's a relationship that continues on in the, future. And so, I think that's what we're trying to find. Now, if it just takes a little bit more time to figure that out, I think we should use it, because, certainly, eliminating -- if, for instance, tomorrow, you told me, in all honesty, "We have no plans to sell the property, " and then tomorrow, you decide -- well, someone approaches you and you say, "Well, you know" -- I mean, someone -- it could happen. Someone could offer you -- hear me -- $25 million Jrothe property, and they could also offer you to build you another site so that you're comfortable. 1 mean, these things are not -- they are not not happening in the City of Miami; they happen. They happened with the -- I believe it's the -- what (UNINTELLIGIBLE) -- the archdiocese, but at least one part of the church that I know in the -- off of 36th Street, so it happens. And they're building a new facility and more rooms, et cetera, to help them with their mission. And so, then it's only $3.7 million, but we're out of it, and we're out of the mission that the Miami Women 's Club had at that particular location. And we may have the structure there, but maybe it doesn't amount to what we thought it would be. Ms. Joseph: Okay. Mr. Melton: So I don't want to belabor this, Commissioner Hardemon. Chair Russell: Just a moment. Commissioner Gort. OMNI Community Redevelopment Agency Page 35 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 Commissioner Gort: I'm not an attorney, but 1 think you can have a motion where you can have a request to waive certain of the rights that they wanted to be utilized but maintain settlement of the property. Chair Russell: So that would be a hybrid version of -- Board Member Gort: A hybrid version of the covenant. Chair Russell: -- where we amend the restrictive covenant so that the restriction remains on a complete sale of the property -- Board Member Gort: Right. Chair Russell: -- but it would allow to open up the sale of air rights. Mr. Melton: So without belaboring it, members of the board, the original grant agreement in 2008 had, has, and continue and will continue to have a requirement that if the property is ever sold, the $3.75 million grant, in its totality, is refunded to the CRA. Chair Russell: That's outside the restrictive covenant. Mr. Melton: That is the original grant agreement adopted by the CRA -- the former CRA board in 2008. There was an addendum in 2009 -- Chair Russell: Just a moment. Board Member Gort: The problem that you have, you have a different opinion from you and the Executive Director (UNINTELLIGIBLE). Mr. Melton: I'm just stating the -- with all respect, I'm stating the facts. The original grant agreement has, at paragraph 9, that the entire grant agreement -- the grant will be refunded if the building were ever sold. The addendum in 2009, which authorized the final 1.8 million, was approved in 2009, June of 2009. Six months later, six long months later, in December of 2009, this restrictive deed, which is a free-floating instrument -- I call it a mean -spirited instrument -- that restricted the close -ability of the transfer interest in the property, such as TDDs (Transfer Development Densities), was presented at the Club, and they were forced to sign it. The instrument that we're talking about today that the Club is asking to be eliminated is neither the grant agreement original, nor the addendum to the grant agreement. So the CRA's investment of $3.75 million, even with the elimination, total elimination of this restrictive covenant, it continues to be protected. And if the building were -- the property were ever sold, the $3.75 million would be due and owing to the CRA. So I just want to make sure the 3 -- Vice Chair Hardemon: You might be right. Mr. Melton: Well,, I can give you -- Vice Chair Hardemon: All I have in front of me is a declaration of restrictive covenant. Ms. Jones: Commissioner, that's not in the grant agreement. Chair Russell: So just a minute. Let's -- OMNI Community Redevelopment Agency Page 36 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 Mr. Melton: But -- which is -- we're in alignment. It's not in the grant agreement. There are three pieces of paper: The grant agreement, which requires a refund if the property is ever sold; the addendum that authorizes the final $1.8 million to be paid of the grant; and then this free-floating instrument -- Chair Russell: The restrictive covenant. Mr. Melton: -- that materialized six months later, for reasons that we cannot fathom, that has this restriction, which impinges on our ability to explore the sale of TDDs to enlarge our treasury to do job training on our floor, and that's the instrument that we'd like to be eliminated in its entirety; not disturbing the grant agreement or its addendum. Chair Russell: If what you 're saying is correct and -- then you 'd probably be finding some willingness of this board, but I'm hearing from my staff, which I'd like to give some time on the floor now, that the interpretation might not be exactly that. So can you walk us through what's in the original grant agreement? And if this restrictive covenant were lifted, what would still be iron clad in the grant agreement? Ms. Jones: So Commissioners, we have the grant agreement, which is for $1.8 million. There has been additional monies that have been granted to the Women's Club, amounting to 3.8 in total. That restriction that was mentioned by Mr. Melton earlier is not in the grant agreement itself.' The protection the CRA has for this grant money is within the covenant that is on the property, restricting any sale or any transfer of any interests in the property. And I think the Administration right now, we wanted to do an amendment and not a full out removal of that covenant. Chair Russell: Do you have recommended language for that amendment? Vice Chair Hardemon: And if you sell the TDDs -- aren't the TDDs -- they can only be used to help renovate the property, though. Ms. Jones: Within the property. Vice Chair Hardemon: Right? Ms. Jones: The TDDs. Unidentified Speaker: (UNINTELLIGIBLE). Ms. Jones: Yes. Vice Chair Hardemon: They can't be used for a training program. That's what I understand. Mr. Melton: May I approach? Chair Russell: Yes. Mr. Melton: These are the three documents that I'm talking about here. This is the original grant agreement, November 21, 2008. This is the addendum for the final 1.8 million on June 2008. This is the mysterious -- Vice Chair Hardemon: That run -- Mr. Melton: -- (UNINTELLIGIBLE). OMNI Community Redevelopment Agency Page 37 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 Vice Chair Hardemon: -- that runs with the land. Chair Russell: That one, we've got in our backup. Mr. Melton: Right, (UNINTELLIGIBLE). Chair Russell: The restrictive covenant is in our backup. The original grant -- Mr. Melton: I believe it's in para -- I think it's in paragraph 9 that the full 3.75 million is returned if the property were ever to be sold. Ms. Jones: We do not have that agreement. Mr. Walker: The Clerk's Office doesn't have the (UNINTELLIGIBLE). Ms. Jones: We don't have it. Mr. Melton: That came from (UNINTELLIGIBLE). Ms. Joseph: It came from the City. Ms. Jones: No, that document -- we do not have that document. Chair Russell: For this original grant? Ms. Jones: We do not have that document. Mr. Melton: Why wouldn't you? Ms. Jones: And we followed up with the -- And that's a good question, because we've had a very hard time at the CRA following through with a number of documents that did not make it to our board -- Chair Russell: Right. Ms. Jones: -- or at the Clerk's Office. Mr. Melton: (UNINTELLIGIBLE). Chair Russell: There is no one in this staff who was here during this transaction, and so we're going back, looking through the documents. Mr. Melton: (UNINTELLIGIBLE)? Chair Russell.: Correct. So I'm looking -- I don't see paragraph 9. If you could help me, Mr. Melton. Mr. Melton: My (UNINTELLIGIBLE), but if you let me -- Chair Russell: Sure. Mr. Melton: -- (UNINTELLIGIBLE) for just a moment, I'll point it out to you. Chair Russell: Sure. And then I would need to understand from Legal that this survives the removal of the restrictive covenant. If Staff has an amendment recommendation, I'm certainly open to hearing what that -- OMNI Community Redevelopment Agency Page 38 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 Vice Chair Hardemon: Well, that's why 1 rec -- 1 meant that we should hear it at another time. At least we should -- Mr. Melton: (UNINTELLIGIBLE). Vice Chair Hardemon: -- get all the information and review it. Chair Russell: "The Club shall record a restrictive covenant on its property, in which the Club covenants to refund the entire grant in the event the entire property is sold." Doesn't that refer to the future restrictive covenant that was --? Mr. Melton: No. Ms. Joseph: No. Mr. Melton: No, it doesn't refer (UNINTELLIGIBLE). Chair Russell: So by signing this as written, you believe it makes the commitment in itself? Mr. Melton: That's the 2008 -- Chair Russell: Yes. Mr. Melton: -- the original grant -- Chair Russell: If you come to the microphone, it just helps capture it in the record. Mr. Melton: That's the original grant agreement in which the CRA agreed to do the 40-year recertification grant of $3.75 million in two tranches. The, first portion -- first half, roughly, in the 2008/9 budget. The Club made a presentation in 2009 on its progress, and asked for the release of the final 1.8 million. That's the second document, which is the addendum to the grant agreement, which is dated June of 2009. And six months later, the instrument that is on the agenda today -- to be eliminated with the punitive language that was never part of any discussions or negotiations between the Club and the CRA -- materialized. Vice Chair Hardemon: So why wasn't it objected to then -- Mr. Melton: It was. Vice Chair Hardemon: -- before you received -- Mr. Melton: It was. Ms. Joseph: It was. (UNINTELLIGIBLE). Mr. Melton: It was. And the Club was told, `If you don't execute this and record it, we will not" -- "we will deny you access to your million -eight" -- "the final half of your grant." And those are the facts. Vice Chair Hardemon: From what he -- I haven't read this document; I'm not going to read it right now. But from what the Chairman read, it does make reference to a restriction -- a restrictive covenant that's going to be signed in the future, and it was tied to the sale of the property. And so, you know, I'm at a loss as to how you perceive it. But it was a different time, there were different people, and perhaps you know something that don't know. OMNI Community Redevelopment Agency Page 39 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 Mr. Melton: But a sale of the property -- which are the words in the instrument -- are different from transferring and conveying, which is in the malicious instrument -- Vice Chair Hardemon: No, and I can understand. Mr. Melton: -- which goes to TDCs [sic]. Vice Chair Hardemon: And if there are, for instance, minutes from that meeting -- Mr. Melton: Would you like the minutes, also? Vice Chair Hardemon: I would love all the (UNINTELLIGIBLE). Mr. Melton: I'm sorry? Vice Chair Hardemon: No. I think those -- all those things are important, but those are the things that lwant to -- Mr. Melton: I can provide them for you, if you like. Vice Chair Hardemon: -- be able to consider -- Mr. Melton: Right. Vice Chair Hardemon: -- you know, when I'm making this decision moving forward, because then I'll understand exactly what happened, because you may be correct. I may agree with you -- Mr. Melton: The grant -- Vice Chair Hardemon: -- but at least need the opportunity to read the information. Mr. Melton: Well, it -- I think it's less complicated than this conversation has made it to be. There's a grant agreement from 2008 that says, "If the property were ever sold, the CRA gets its investment back." And that original grant agreement also gave the 23 foot ribbon of Bayfront property for the bay walk, which is (UNINTELLIGIBLE). We have this instru -- this malicious instrument that impinges on the Club's ability to even explore the sale of its air rights to enlarge its treasury to do job training -- Chair Russell: Understood. Mr. Melton: -- and that's what we would like to go away, with all due respect. And frankly, that is the agenda item recommended by your staff that's before you at this moment. Ms. Jones: I beg to disagree. And let's not forget that the lease that the Women's Club have entered into is a 90-year lease that we have not consented to, also, on this property, which is essentially a sale of that property. And I'd say, let's do this, but as -- we can defer the item, or we can modify the item right now in front of us so that they are allowed to do the programmatic mission of the Women's Club that they -- but with a plan. And we will -- we'd like to empower them to do the work, because we believe in, you know, the jobs program that has to be done, but completely removing this covenant does not give us the guarantee that that will be done. So I -- we have recommended to the Women's Club -- and we've discussed in office -- to amend the covenant instead of completely removing it. OMNI Community Redevelopment Agency Page 40 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 Chair Russell: So here's my recommendation, because I feel this conversation actually has been very fruitful, because it's brought out a lot of the history and it helps us to understand. We're actually -- looks like we're heading in the same direction here, because what you're suggesting that the original grant already says seems to be where Commissioner Gort's recommendation was already heading. And so, it seems like there's a meeting of the minds; we just need to make sure it's legally enforceable and that it all makes sense. And so, what 1'll be asking for is, that interpretation on the bay walk, was their requirement to transfer it triggered by the 40-year recertification? Because if not, it truly is a gift that they are giving to the City, that we now have access to this bay walk that they otherwise would not have had to do, unless they did truly vertical redevelopment. I'd just like clarification within the Code for that, because I don't want to look that gift horse in the mouth. If that was a substantive proffer at the time, a transaction, grant in exchange for the bay walk that otherwise wouldn't have been owed, there is value to that, and I certainly recognize that. The jobs program, it sounds like we're on the same page there, and I think you've got a willing partner in Lotus House, and you have the space. We definitely do want clarification for you, though, that TDDs, once sold -- or TDRs, once sold, have their limitations, so they may not be able to be used for the jobs program. Where you're seeing additional funding is your ability to finance and fund, and transfer parts of your asset without triggering this $3.75 million debt. In that way, you're going to have freedom to access funds that will be programmatic for you to accomplish your mission. But I want to make sure that we are meeting the legal and -- the legal requirements of our mission, and make sure everything's by the letter. So I'm going to ask for our staff to put this together: A recommended amendment if you disagree with their interpretation, because I think, in spirit, we're trying to get to the same place. A recommended amendment either to the original grant or to the restrictive covenant that gets us there, and I think we can bring that up at the very next meeting in just a few days, and bring this all to a close. Please don't be discouraged. Ms. Joseph: 1 am. Chair Russell: Well, you shouldn't be. You shouldn't be. Ms. Joseph: (UNINTELLIGIBLE) years. Chair Russell: Yes, but -- Mr. Melton: Look at her. Chair Russell: -- you certainly receive nearly $4 million to renovate your property, and that got you on the way to where you are now with even being able to entertain this restaurant lease for 99 years. Mr. Melton: Exactly, which is the CRA's mission. Chair Russell.: And -- Mr. Melton: One final request -- and we appreciate moving forward in the spirit of getting there, and we're confident that we will get there -- but if the Administration, the CRA could resend that communication about amending the restrictive covenant, as opposed to eliminating it, to the Club tomorrow? Because we can't seem to put our hands on it. So we'd like it resent tomorrow. Chair Russell: Was that in a meeting or was that --? OMNI Community Redevelopment Agency Page 41 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 Jason Walker (Executive Director/Omni Community Redevelopment Agency): It wasn't a direct communication. It was meetings and (UNINTELLIGIBLE) -- Ms. Jones: Several meetings. Mr. Walker: -- several meetings over the past -- and three years with other presidents, and not you (UNINTELLIGIBLE). Mr. Melton: I'm sorry. I was under the impression it was like a specific -- Chair Russell: Understood. Mr. Melton: -- length -- specific language (UNINTELLIGIBLE) amendment. Chair Russell: So there's no written proffer but I think we can start there now. So we'll put that recommendation or suggestion together to you. And I'm glad to get together for any meetings between now and the next meeting, even though it's in the near future -- Board Member Gort: I think you will have to, yeah. Chair Russell: -- to get us there, because I really think we're on the same page here. I really think we're trying to help you enjoy this structure to its fullest, enjoy the dollars that we've spent getting it historically preserved. We're not trying to restrict your ability to be financially fruitful there, and I think we're all in the same direction here. So just -- I know you'd just love to see a blind 'yes" today, but there are some unanswered questions we need some legal clarification on, and I think we'll get there. So I'd welcome a motion to continue this to the next like meeting, whenever that may be; if it's on the 12th or the (UNINTELLIGIBLE). Vice Chair Hardemon: So moved. Chair Russell: Moved by Commissioner Hardemon; seconded by the Chair. All in favor, say "aye." Vice Chair Hardemon: Ave. Chair Russell: Any opposed? Board Member Gort: Nay. Chair Russell: Motion passes. Thank you. And for -- I apologize for -- Todd B. Hannon (City Clerk): And Chair, I just want to make sure; it's 2-1? Chair Russell: It is 2-1. Procedurally, there was a motion earlier by Commissioner Gort -- Mr. Hannon: Right, that failed, for lack of a second. Chair Russell: -- it failed for lack of a second, yes. Mr. Hannon: So 2-1; "no, " Commissioner Gort. Chair Russell: Thank you. OMNI Community Redevelopment Agency Page 42 Printed on 12/9/2019 OMNI Community Redevelopment Agency Meeting Minutes October 30, 2019 OMNI CRA NON -AGENDA ITEM(S) 1. OMNI CRA DISCUSSION 6774 SPECIAL RECOGNITION BY OMNI CRA BOARD AND STAFF TO BOARD MEMBER WIFREDO "WILLY" GORT FOR HIS LEADERSHIP AND SERVICE DURING HIS TENURE AS A MEMBER OF THE OMNI CRA BOARD. ADJOURNMENT RESULT: PRESENTED Chair Russell: Is there any further business of the hoard? Yes, there absolutely is, there absolutely is, in his potentially last meeting with us, which may not be at this point now, because if we have another one during the special meeting, Commissioner Gort will very much be with us, but -- Board Member Gort: (UNINTELLIGIBLE). Chair Russell: -- 1 certainly want to say it's been an honor working with Commissioner Gort here at the CRA (Community Redevelopment Agency). His dedication to -- first of all, let's just say, quorum -- being here, being here. He would never miss a CRA meeting. However, his feelings on the items on the issues or what we need to discuss or get through, he has been dedicated to this CRA to make sure this community is shepherded well. And his advice has been well taken on this board, and his vote's very much appreciated. So I would like to extend this to the Honorable Commissioner Wifredo "Willy" Gort in appreciation for his outstanding service as board member of the Omni CRA. (Applause) Board Member Gort: Thank you. I'm not going too far; don't worry. Chair Russell: Thank you, everyone. We are adjourned. The meeting adjourned at 6:33 p.m. OMNI Community Redevelopment Agency Page 43 Printed on 12/9/2019