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HomeMy WebLinkAboutSubmittal-Commissioner Ken Russell-Coalition Against Causeway ChaosCoalitiol i gainst causenvayc Naos Commissioner Wilfredo Gort Commissioner Ken Russell Commissioner Frank Carollo Commissioner Francis Suarez Commissioner Keon Hardemon CC: Mayor Tomas Regalado The City of Miami 3500 Pan American Drive Miami, Florida 33133 Via Email «i%--%v.cause« aychaos.0rg S,ibmitted into the' publi�,r, � r(,Co;( f sr it n(s)_tel May 26, 2017 on �� City Clerk SUBJECT: The City Should Not Treat Flagstone as an "Innocent Victim." At the upcoming Commission hearing on May 30, we anticipate Flagstone will once again blame others and once again seek the City's indulgence for its failure to meet its obligations. Of course, the most recently and significant is the developer's clear failure to meet the May 1, 2017 deadline to start construction of the retail and parking components of the project. We summarize here, in reverse chronological order, the myriad reasons this Commission should reject Flagstone's pitch that it's an "innocent victim." We realize the attached list is long: as every Commissioner has observed over the years, this project has a long history. It has been over 15 years since the original approval, with precious little progress over the next decade and a half. The problems identified on the attached list fall into the following general categories. They have occurred often enough to constitute a pattern: ■ Acceptance by the City of multiple, sheer unexplained delays by the applicant ■ Multiple approvals by the City not allowed by law ■ Continuing changes to modify various elements of previously approved MUSPs ■ City staff acquiescence in improper or unjustified requests ■ Approvals by City staff where contractual conditions precedent were not satisfied ■ Failure of officials to enforce clear procedural and substantive legal requirements Respectfully, Roger M. Craver, President 1200 Anastasia Avenue, Suite 300 Causewaychaos2015@gmail.com Coral Gables, FL 33134 105) 357-9004 Submitted into the public„ record f r ite z(s) _ on 5 3 1 City Clerk Causeway Chaos ATTACHMENT May 26, 2017 LIST OF ISSUES AFFECTING WATSON ISLAND PROJECT Immediate -- The most immediate smokescreen being offered up is the "right of way utility permit" cited by Aldo Bustamante. The fact is that even this poor excuse for a "permit" was not issued until May 4, 2017, and there has been no actual construction of the utilities on the site. The "phased foundation permit" cited by Bustamante was issued September 1, 2016 and expired on February_28, 2017. No construction occurred under that permit either. Neither of these "permits" meets the requirement that "all material plans and permits are approved and issued," even if there had been actual construction under them. May 22, 2017 After journalist reports that Flagstone is delinquent on over $767,000 in County taxes, Flagstone pays bill. City did nothing to enforce Flagstone's obligation other than sending one after the bill was due, on April 18, 2017. May 10, 2017 — Required traffic study not submitted until May 10, although required by P&Z as a condition of the MUSP modification on October 16, 2016. Without a traffic study, there could be no MUSP modification, thus no building permit, thus no possible way that "ALL material plans and permits are approved and issued." Further, the study did not follow FDOT and County requirements, violating State law. MU 5, 2017 -- Flagstone files a revised MUSP modification application which, like the previous six submissions, proposes to build parking and hotel service areas on Tract C where such uses are expressly prohibited by Code. City staff has failed for three years to notice. In 2007, this area was mostly Open Space. March 29, 2017 — As reported by David Smiley of the Herald and Al Crespo, the State of Florida rescinds the license for Flagstone's restaurant, the "Deck" and issues a six page Food Service Inspection Report of health violations. March 13, 2017 — After challenge by CACC, Flagstone files a new MUSP modification without the previously hidden 136,140 sf of retail which it had filed in January. January -February 2017 — FDOT rejects City's request to allow Flagstone to rely on 2004 traffic study and specifies methodology. October 16, 2016 — P&Z recommends Flagstone's MUSP be approved as a warrant. Generates a multitude of challenges by CACC, some of which subsequently led to further changes in the application. Submitted into thepubli, record fr ite i(s)Q, on cJ City Clerk September 14, 2016 — Flagstone files a new MUSP Modification application including some 140,000 sf of unapproved new retail space. August 31, 2016— The City executes a "Retail/Parking Component Amended and Restated Ground Lease" without evidence that Flagstone closed its construction loan and had obtained required "initial equity" sufficient to complete this phase. Other conditions precedent not met: construction plans and specifications, a development team, an operating team, construction contracts, construction budget, construction schedule, and bonds/letters of credit. There is no evidence of any written waiver by the City Manager. June 28, 2016 — Flagstone requests a Warrant Notification Letter without actual plans: "Planning would like to see the plans you will submit as part of the Warrant Application." February 26, 2016 — City Manager Alfonso notifies City of Miami Beach that Flagstone's January 14, 2015 MUSP modification application was incomplete, "and that incompleteness has not been addressed in the interim time." November 3, 2015 — City grants an 8 month extension for Flagstone to start construction based on Tropical Storm Erika. The deadline is extended from September 1, 2016 to May 1, 2017. Tropical Storm Erika did not approach Miami. May 5, 2015 — Judge Thomas Rebull enters an order to the City to "show cause" it should not be held in contempt for violating court order when it withheld the dredging permit that should have been issued before June 2, 2014. December 2014 — In response to Miami Herald inquiries about Flagstone's latest MUSP application, Flagstone claims "a mistake in their calculations" and files a new MUSP amendment with less parking, but still concealing unapproved new retail for general public. November 2014 —Flagstone begins a series of six MUSP Modification applications through May 5, 2017. November 2014 — Aldo Bustamante, in deposition in the public records case, states under oath that the City had produced all public records about the project. The statement was false because the August 15 public works permit had never been provided to the requester and didn't materialize for another four months. August 20, 2014 — After being sued for public records violations, the City Attorney's Office admits it had been in possession of emails dating back to May 5, 2014, which included critical correspondence about aspects of the City's violating the charter and allowing Flagstone to violate its agreement. July 2014 — Assistant City Manager Alice Bravo and Assistant State Attorney Robin Jones Jackson falsely inform the Commission that Flagstone had met the June 2 deadline for marina Submitted into the public record frit��ei(s) on _ s� X 111 City Clerk construction commencement despite absence of any physical construction or permit. When the permit was produced under a second court order, the permit date was August 15. June 2, 2014 — When questioned by the media, the City Attorney stated that Flagstone met the marina construction commencement deadline by having divers photograph sea grasses that would be moved as part of the "mitigation process." May 13, 2014 — State Cabinet approves new Partial Modification of Deed Restriction to re- authorize Flagstone project. DCM Alice Bravo cites October 2013 traffic study that she never saw until the morning of the Cabinet meeting, telling the Cabinet that the study "showed a favorable outcome." That study had not been reviewed by any City official and actually failed to satisfy state requirements. The study had never been provided in response to numerous specific public records requests for traffic studies. May 8, 2014 — City Commission votes 4-1 to re -approve the project despite appraisals showing the Fair Market Rent of the Project has increased from $2 million to $7 million, violating Section 29-B of the City Charter. City Legal Department informs the Commission that despite Charter violations, failure to approve would result in a lawsuit by Flagstone with potential liability of $58 million. Commissioners Suarez and Gort say they are relying on the Legal Department. That matter remains before the Commission on Ethics after the Commission reopened an earlier decision. The Assistant City Attorney filed suit to block the Ethics Commission from reopening its own case based on its own employee's questionable performance. Court case is pending. City legal department had up-to-date appraisals on the rent, but did not share that information with the Commission. Ap :12014 — Flagstone retains Governor Scott's friend and Governor overrules the Department of Environmental Protection after two years of DEP's rejecting the City and Flagstone's attempt to modify the deed because of Flagstone's defaults. Feb -March 2014. DEP refuses City request to DEP to administratively reinstate Partial Deed Modification. At the time, Flagstone still had not paid all of the outstanding judgments. September 2013 -April 2014 -- City asks State Department of Environmental Protection (DEP) to reinstate the Modification, and DEP refuses. July/August_ 2013 — Information obtained from a public records lawsuit forces City to disclose evidence of back -room deals with Flagstone, the Related Group, Miami officials, and State agencies to allow 300,000 square feet of additional retail without new traffic, environmental, or other impact studies. The City of Miami Beach Mayor and Commission vote unanimously to oppose and Related withdraws. Submitted into the public record f r life s_) on __7) , 1-1 . City Clerk June 2013 — City extends deadline to start construction from September 1, 2013 to June 2, 2014 so Related Group can conduct "due diligence" before investing in Flagstone. Extension remains in place, despite Related Group's withdrawal in August, 2013. July/Au usg_t 2012 — With unsettled claims against Flagstone not satisfied, the State Cabinet does not act on City request to execute a new Partial Modification of the Deed Restriction. January 2012 — Flagstone fails to satisfy over $2 million in outstanding judgments as required by the State Partial Deed Modification, terminating Flagstone's right to develop on Watson Island. August 2011— At the City's request, due to the substantial changes in the project, State Cabinet approves the 2010 City -Flagstone amendment, and issues a new Partial Modification of Deed Restriction to allow private development on Watson Island. January, March, April, May, September 2010 — City gives continuous extensions while demanding Flagstone pay its past due amounts. On September 23rd, Commission passes major amendment allowing development in phases, extending deadline to start to September 1, 2013 and other items. No new appraisals conducted. All commissioners expressed frustration with Flagstone's delays and insisted that the terms of the new agreement, including deadlines, be strictly enforced. December 2009 — Flagstone refused to pay any of the pre -construction rent due and owes $415,000, prompting resolution to terminate Flagstone due to "lack of performance, continued failures to discharge or transfer to bond the liens against the City's property, and continued defaults in payments to the City." July 2008 — Four years after MUSP issued construction had not started and the City had not been paid. City imposes pre -construction rent of $83,000 per month beginning August 1, 2009. August 2005 — Zoning litigation terminates in favor of City and Flagstone. 2001-2004 -- Flagstone project approved by Commission and in referendum promising minimum annual rent of $2 million. Major Use Special Permit (MUSP) approved in July 2004 and deadline to start construction is extended three times, through Feb. 1, 2010. Flagstone pays nothing to the City under the agreements.