MB RDA MINUTES DECEMBER 5, 1984 MIAMI BEACH REDEVELOPMENT AGENCY MEETING
December 5, 1984 - 9:00 A.M.
CITY HALL COMMISSION CHAMBERS
INDEX TO MINUTES OF MEETING
RESOLUTION PAGE
NO.
NO.
NONE
1. Roll Call - Meeting called to order at 9:17 A.M. 1
Members present at roll call: Chairman Fromberg, Vice
Chairman Grenald, Messrs. Arkin, Daoud, Singer, and
Weisburd. Mr. Shockett arrived at 9:25 A.M.
2. Acceptance of Minutes of November 21, 1984 meeting 1
3. Report of Executive Director 1-2
Executive Director gave brief oral status reports on
six matters:
1) Status of the Coast Guard Property,
2) Cheezem Development Agreement,
3) Newman Contract,
4) Development of Regional Impact Issues,
5. South Pointe Park,
6) Corridor Studies.
(Copy of report filed with records of meeting. )
4. Old Business
a. Financial Statement - (for information only) 26
b. Corridor Studies Team Selection 2-26
Selection Committee's recommendation accepted.
Contracts to he negotiated with Halcyon Ltd. , Land
Design Associates, and Goodkin Research, contract-
contents to he approved by Agency Attorney.
Agency members requested that, in the future, if a
member of the Agency's selection team has had any
direct relationship with a firm/group being
reviewed, disclosure should be made. Agency's
Attorney to confer with Freilich, Leitner, &
Carlisle, P.C. , and to then submit recommendation
as to whether corridor studies should be conducted
under subcontract with Freilich, Leitner, &
Carlisle, P.C. , or whether under contract directly
with the City.
5. New Business
a. External Auditor Ranking 26-29
Redevelopment Agency Memorandum No. 84-18
Agency ranked three firms (as recommended by
External Audit Committee) in following order:
Peat, Marwick, Mitchell & Co. , Deloitte Haskins &
Sells, and Alexander Grant & Company.
Administration to negotiate contract to cover
annual audit for FY 1983-84 and FY 1984-85, with
options for following three years. Final contract
to come back for action by Agency.
6. Report of Agency Attorney - none 29
7. Adjournment - 11:37 A.M. (all members present) 30
Next meeting: Wed. , December 19, 1984, 9:00 A.M.
60 000383
MINUTES
MIAMI BEACH REDEVELOPMENT AGENCY
December 5, 1984
Regular meeting of the Miami Beach Redevelopment Agency was held in the City
Commission Chambers, City Hall, 1700 Convention Center Drive, Miami Beach,
Florida, on Wednesday, December 5, 1984, with the following members of the
Redevelopment Agency present:
Chairman Malcolm Fromberg
Vice Chairman Ben Z. Grenald
Stanley H. Arkin
Alex Daoud
William E. Shockett (arrived at 9:25 A.M.)
Bruce Singer
Sidney Weisburd
Also Present: Rob W. Parkins, Executive Director
Arnold M. Weiner. , General Counsel
Elaine M. Baker, Secretary
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
(The Chairman called the meeting to order at 9:17 A.M.)
FROMBERG: Good morning, ladies and gentlemen. Welcome. We're going to
start the meeting of the Redevelopment Agency. Mrs. Baker, please call the
roll. (AGENDA ITEM 1.)
BARER: Mr. Fromberg Here
Mr. Grenald Here
Mr. Arkin Here
Mr. Daoud Here
Mr. Shockett Absent
Mr. Singer Here
Mr. Weisburd Here.
You have the minutes of the November 21, 1984, meeting, which were
distributed to you yesterday, for acceptance. (ITEM 2.)
FROMBERG: Okay, a motion to accept the minutes of November 21st . . .
WEISBURD: I'll move it.
FROMBERG: Moved by Mr. Weisburd, seconded by Mr. Singer. Any discussion?
All in favor, signify by saying "aye". (AYE) Any opposed? It passes
unanimously. (6-0, Mr. Shockett absent)
Mr. Executive Director.
PARKINS: Good morning, Mr. Chairman and members of the Agency board. I have
a six item status report which I'll go through very quickly. (ITEM 3.)
On the Coast Guard Property - We've been communicating with the
Congressional delegation who is requesting assistance from the GSA Oversight
Committee on the House side. We have also requested from the General
Services Administration (GSA) a copy of the detemination by the Department of
Interior that the property is inappropriate for park use. Our Tallahassee
representative has made inquiries to the State as to the possibility of State
assistance in acquisition. We will information provide additional information at the
next meeting.
Cheezem Development Agrement - Cheezem continues to indicate they intend
to break ground during the early part of January 1985. It may be necessary
to make an arrangement with Cheezem to permit them to enter onto the site for
M.B.REDEVELOPMENT AGENCY - 12/5/84 Page 1
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PARKINS (continued) : Phase One involving part of Collins Avenue prior to the
actual closing on the entire parcel of property. That's currently targeted
for May 1985.
Newman Contract - the proposed audio visual concept has been approved by
the South Pointe Subcommittee of the Economic Development Council and we are
underway to complete the audio/visual by early January 1985. We are
contacting Specialty Restaurants in order to assist them through the Newman
Agreement with a groundbreaking possibly in December 1984. Base material for
the developer kit is currently being prepared. Mailing lists have been
assembled for a targeted Developer Conference to be held in Miami Beach
during mid-February 1985. Agency members were provided under separate cover
with copies of the news releases that were generated by the groundbreaking at
South Pointe Park. The Marina held, as you know, a promotional event over
the Thanksgiving weekend and provided Mr. Newman with a series of photo
opportunities which will be incorporated into the audio/visual material.
The DRI Issue (Development of Regional Impact) - Freilich and Leitner,
together with the City Attorney's office are preparing a response to the
Department of Community Affairs requesting a vacation of the previously
adopted Development Order. We're targeting Agency action for that at the
December 19th meeting.
South Pointe Park - That project is on schedule and within budget.
The Corridor Studies, which you will be dealing with today . . . We have
two scope of services drafts included within your agenda package from firms
that have been selected and approved by the Commission. One firm, Jack Gould
Associates, from Washington, had been recommended for inclusion by members of
the EDC, however, in discussions with Mr. Gould he indicated that the type of
retailing that is proposed in South Pointe is outside of his area of
expertise. As requested by the Agency members, each of the firms selected
will be available today to present their qualifications and to discuss with
you the additions or changes that you might wish to make to the scope of
services. Again, I refer you to that which is attached to your agenda
package. After review by Agency members, we'll return with a finalized
contract for approval which will permit us to be well underway with the
Corridor Studies prior to the targeted Developer Conference scheduled for
mid-February 1985. In addition, this time track will provide the needed
input to the selected engineering firm who will be designing the
infrastructure for South Pointe based upon that $9.8 million bond issue.
That completes the report this morning, Mr. Chairman. Mr. Fosmoen has
some comments he'd like to add.
FROMBERG: Mr. Fosmoen.
RICHARD FOSMOEN: With regard to the last item, the consulting team is here
and are prepared to make a presentation to you, discuss with you the scope of
services, and the preparation of materials that will occur over the next
several months, if you wish. (ITEM 4.b.) We've distributed to you those
scopes. Lew Goodkin is also here today and those of you in the development
field know Mr. Goodkin is preeminent in the field of housing.
FROMBERG: You are mumbling a little bit . . .
FOSMOEN: I'm sorry.
FROMBERG: . . . or else my hearing isn't . . .
FOSMOEN: Sorry about that. I won't go through it all. The consultant . . .
FROMBERG: No, right. I caught the gist of i t.
FOSMOEN: The consultant team is here. We've distributed to you the scopes
of services. If you'd like, they are available for presentations on their
creditials and on what their participation will be in this effort.
FROMBERG: I'd like to hear from them as long as they're here.
WEISBURD: I agree.
FROMBERG: Let's call them up.
M.B.REDEVELOPMENT AGENCY - 12/5/84 Page 2
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FOSMOEN: Okay. Let me introduce Marty Leitner. The team that is assembled
consists of Halcyon Ltd. out of Hartford, Connecticut, Lew Goodkin, who is
out of Ft. Lauderdale, and Land Design Research out of Columbia. We, along
with Marty Leitner, and Stu Rogel, evaluated all of the firms that submitted
letters of interest and because this team has worked together before, because
of Halcyon's knowledge of South Pointe, we've recommended to you that this
team be retained.
As some of you know, I spent some time working with Halcyon as a
consultant, prior to coming to the City, and I'm familiar with their work,
and feel that they, along with other members of the team, can produce the
kind of product we're looking for.
WEISBURD: Are you saying that you have brought one firm here, not for us to
make a decision on one or two or three options?
FOSMOEN: You'll recall, sir, at the last Agency meeting, we presented you
with a list of those firms that had been reviewed and the Agency told us to
bring in the top team to be prepared to discuss their scope of services.
That was your action at the last meeting.
WEISBURD: I thought we wanted to speak to all of them.
FOSMOEN: No, sir, you asked us to bring in the team that we were
recommending so that we can move this process ahead. Now, we're targeting
for February of 1985 and there is, in my opinion, no way that we can meet
that date if we bring in three full teams. In fact, we'd have to bring in,
basically, all 12 of the companies that we contacted because each of them has
a specialty and then try and sit down and negotiate a contract. We had
worked this process through, with you, to this point.
WEISBURD: In other words, if we okay the team now, you're going to be my
partner in watching to see that they do a good job, right?
FOSMOEN: Absolutely.
FROMBERG: You're going to supervise construction. (laughter)
DAOUD: Mr. Chairman.
FROMBERG: Mr. Daoud.
DAOUD: Mr. Fosmoen, this is the first time I've heard, on the record, from
you, that you worked with this company before. This has come up. I wanted
to ask you, in what capacity did you work with these gentlemen before?
FOSMOEN: Before I came to the City of Miami Beach, after leaving the City of
Miami, I had my own private company, Mr. Daoud, and I had a variety of
clients. Halcyon was one of them.
DAOUD: Were you involved in getting contracts for this company?
FOSMOEN: Sure. Yes. And I also worked on specific jobs for them during
that period of time.
DAOUD: Let me ask a question of you on this contract. Why is it that we're
subcontracting to these individuals through Freilich and Leitner?
FOSMOEN: Through Freilich & Leitner?
DAOUD: Yes. Why aren't we directly contracting with these individuals?
FOSMOEN: We have an umbrella contract, an on-going relationship with
Freilich & Leitner who prepared the overall Redevelopment Plan, as you'll
recall, and this is the same procedure that was used in hiring Post, Buckley
for the preparation of the Redevelopment Plan that was adopted last year.
DAOUD: I just . . . myself, don't feel that subcontracting through someone is
the way to go ahead and do business. Let me ask a question of you. Is it
due to the factor that this did not go out to bids? Can we directly go into
contractual agreements with these people?
M.B.REDEVELOPMENT AGENCY - 12/5/84 Page 3
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(Mr. Shockett entered the meeting at 9:25 A.M.)
FOSMOEN: We asked about 12 firms to submit letters of interest, basically
the same procedure that is used by the City when they bring in consulting
teams. We then reviewed those and have recommended this team to you.
SHOCKETT: Excuse me. Mr. Chairman, I had asked that the meeting not start
until I returned. I had to go over and take care of some personal business.
I would like to know . . . And I wanted to be here for the full meeting. I'd
like to know what has transpired since we started.
FROMBERG: We had a roll call, accepted the minutes, had a report of the
Executive Director, which is basically in conformity with what's in your
agenda package. We are involved in a report now with Mr. Fosmoen who has
announced that he has . . . the people who were selected, I guess, to start
negotiations for the corridor studies and he wanted to know whether we wanted
to hear from them. I said "yes". Mr. Fosmoen made a brief introduction,
during which he reacquainted some of us with the fact that he had been
involved in Halcyon, who is one of the people here before us and Mr. Daoud
is now questioning Mr. Fosmoen as to, I guess, his concerns over that
relationship.
SHOCKETT: I'm not familiar with the fact that Halcyon was before us before.
Would you mind repeating what you stated?
FOSMOEN: Halcyon was part of the original team that prepared the
Redevelopment Plan for South Pointe. It was Freilich & Leitner, Post,
Buckley . . . Halcyon prepared some market analysis and financial data. As a
matter of fact, one of the people with that firm has been before this
Commission when that presentation was made. What I indicated, on the record,
is that, prior to coming to the City of Miami Beach, I had my own private
consulting firm and Halcyon was a client.
DAOUD: Can I sum up, too, which was brought up to . . . If I can, to bring you
up to date, Billy. Okay. What was brought up is that Mr. Fosmoen, at least
for the first time on the record, said that he had an association with this
company. I asked him whether he had been involved in getting contracts for
the company before. He said, "Yes". If I'm wrong, stop me. If I'm saying
something that's incorrect, please correct what I'm saying.
FOSMOEN: I will.
DAOU1): My concern is that we're subcontracting this through Freilich &
Leitner. It has not gone out to bids.
FOSMOEN: That's incorrect, Commissioner.
DAOUD: I'm sorry. It has gone out to bids?
FOSMOEN: I indicated to you that we asked for letters of interest from
approximately 12 firms across the country . ..
DAOUD: Yes, but I mean that the actual . . .
FOSMOEN: . . . and they all responded and we reviewed their qualifications.
For professional services, you don't seek bids, you seek qualifications, and
then you negotiate the (unclear, overlap)
DAOUD: Well, as I recall, maybe I'm incorrect, but as I recall, Mr. Fosmoen,
what came forward at the last, when this was selected, was really one name
and your recommendation, which I can review the record, what you said we had
to move on this expeditiously due to the factor of time limitation, because I
was under the concepts of exactly what Sidney had mentioned with the factor
that we were going to look at two or three other people at the concept. It
might have been my mistake. And, goodness knows when it comes through . . .
I'll tell you what concerns me, and I have to share this with you, I don't
like subcontracting through someone to do a situation like this, number one,
and, number two, I'm concerned about the fact that you worked for them before
and this is the first time that you brought this to our attention and you
worked in the area of getting contracts.
M.B.REDEVELOPMENT AGENCY - 12/5/84 Page 4
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FOSMOEN: Commissioner, when the Redevelopment Plan was presented to this
body, and I believe you were sitting on the Commission at that time, I stood
at this microphone and made part of that presentation representing Halcyon.
FROMBERG: He was part of the Halcyon team that came before us to make the
presentation.
DAOUD: Malcolm, with all due respect, there's a lot of teams that came in
front of the Redevelopment Agency. I think it would have been much better,
had, when it first come up, there been a mention of it . . . myself . .. for my
own recommendation, just on the factor of my memory, unfortunately, isn't as
good as some of the younger men on the Commission, like Sidney Weisburd, and
Ben Grenald. So, I would've appreciated it had it been able to go ahead and
been brought out in public this way. And, I'm very concerned . . .
FROMBERG: The main thing is there's no concealing of any information. I had
no, . . . when you say, we didn't know, I knew of his relationship from that
point forward. But, I don't want to make it appear that there's anything
that's under cover here. Let's get it out on the table and get on with it,
okay?
FOSMOEN: I've had 30-40 clients during that 21-year period. Some of them
have appeared before this Commission on zoning issues. I don't understand
what your concern is.
DAOUD: My concern is this. If it does happen again, you have another
client, I, for one, would appreciate it if you're involved in at least the
recommendation of the client. That way I'm forewarned that you've had some
association with them. That's all I'm asking of you.
FOSMOEN: I'm not sure where you're going with that, Commissioner.
DAOUD: All I'm asking you is . . . I'm not going anywhere. All I'm saying to
you is that when a recommmendation comes from the Administration, I would
appreciate it, as an individual sitting on here, if you would say, gee, I've
worked with this company before. I've known them before, or whoever on the
staff has, for my own benefit.
FOSMOEN: Is that specifically me, or are you suggesting that everyone in the
City . . .
DAOUD: I said the whole administration. If there's someone else on the
staff that comes and has worked with them in the private sector, I would
appreciate i t.
SINGER: Mr. Chairman, maybe I'm missing something here. What was the
selection process? What was the selection team?
FOSMOEN: Myself, Marty Leitner, and Stu Rogel.
SINGER: All right, because I'm a little concerned that . . . I mean we
consider dozens and dozens of different contractors at all times and
obviously there are going to be people in the Administration at some point in
time that may have worked with someone, but if there's a selection team . . .
If your statement is, Alex, that if there is someone on the selection team
that has a potential conflict and has worked with them once before, I think
that may, in fact, be relevant. But if there's somebody in the
Administration that was associated with somebody at some time, I don't think
that's relevant if the selection committee has reviewed their qualifications
and thinks they're the best choice. So, if you're limiting your statement to
the team, then I'll be in full agreement with you.
DAOUD: I, myself, I think . . . Well, number one, of course, Mr. Fosmoen did
serve on the selection commmittee. So that brings it up to the point that
went ahead. I agree with you. I, just for my own edification, for anyone
that was involved on the selection . . . I think your point is well-taken . . .
It should come out, at least at this table, for the information. That's my
only concern.
M.B.REDEVELOPMENT AGENCY - 12/5/84 Page 5
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FOSMOEN: Just one other comment perhaps. Out of the 12 groups that were
reviewed by us, over my professional career, which spans 20 years,
Commissioner, I had an association with nearly all of them. I either worked
with them on other consulting projects, they worked for me in a variety of
capacities when I was with the City of Miami or in Grand Rapids. So, I've
had association with nearly all of the teams that were presented.
FROMBERG: Okay, I think that the point has been established, and I think
it's a good point and that's that . . .
DAOUD: Let me just ask one more question.
FROMBERG: . . . somebody should not be a member of a selection team that has
any direct relationship with one of the groups being reviewed.
SINGER: Or, it should be disclosed, don't you think?
FROMBERG: Or it should be disclosed at the time of the decision. (EMB or
FH: Should this be on our index page? PP)
DAOUD: Mr. Chairman, I just want to say one thing. I would have felt a lot
more comfortable if the selection committee had not had somebody on it that
had been related. You know, I would have taken it better had Mr. Fosmoen
been an advisor to the selection committee, or if Mr. Fosmoen had offered
consent, you know, just as we up here have certain things that we have to
discuss when we have an issue that comes up, I think that's the way it should
have been handled. Again, that's my own opinion and I think, at the last
minute, that's the way I'd like to see it done in the future.
FROMBERG: Okay, what do we do from this point forward? Is there any
objection to the process, or do we go forward? Are you suggesting, Mr.
Daoud, that we do anything differently from this point forward, or should we
just go forward with the process?
DAOUD: Well, my suggestion is, I would like to hear from one or two of the
other people that applied. I'd like to hear from one or two of the other
ones besides Halcyon and then make my own decision. I think the factor that
on this Commission we usually have a presentation from two or three different
individuals, that has always been the procedure. That's what I, myself,
would like to see. I'm concerned about the bidding process and I'm
concerned, Mr. Chairman, quite honestly, of the way this was handled. I,
myself, would like to have seen it handled a little bit better. I'd like to
see one or two other presentations before we make a decision and I'll put it
in the form of a motion.
FROMBERG: Okay. Let us understand, first, where we're at, okay? We had a
number of groups that were presented to the City as part of the team that
would be hired under the contract of Freilich & Leitner to do the corridor
studies, you said somewhere around 12 teams.
FOSMOEN: Approximately 12.
FROMBERG: Okay. Now, how did we get down to one? Was there a narrowing
process?
FOSMOEN: We evaluated the responses that we received and they were sent out
through Freilich & Leitner's office with a scope of services developed by
them. We evaluated the responses we received. It was our belief on that
review team that this group could prepare for you the kind of material in the
best fashion, and at the last meeting we indicated to you that process. And,
as a matter of fact, if memory serves me correctly, it was Mr. Daoud's motion
that we bring these three teams in, they make a presentation to you, that we
distribute a draft contract so that you would have an opportunity . . . . or a
draft scope of services, so you would have an opportunity to review that and
you could add to that scope or subtract from it as you wish today and then we
would negotiate a final contract and bring it back to you on the 19th. So,
we had gotten through the process and we had decided at the last meeting that
we would invite the three consultants here today to make that presentation to
you.
M.B.REDEVELOPMENT AGENCY - 12/5/84 Page 6
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FROMBERG: Then you have the three firms here today?
FOSMOEN: There are three firms who are all part of a team. We have a
landscape architect/design firm, we have a market research/financial firm,
and we have a housing market analysis firm.
SINGER: Did they submit their original bid in the form of three together or
did you end up negotiating all three together?
FOSMOEN: We indicated, when we sent out the letters of interest, that we
would put the team together. There's not one company that has all of those
skills. We would select a design firm. We would select a market research
firm. We would select a financial firm.
SINGER: All right. And, those three firms are who?
FOSMOEN: Halcyon, Land Design Research, and Goodkin.
SINGER: I remember that discussion.
FOSMOEN: And, under the umbrella contract, with Freilich & Leitner, we would
prepare the necessary materials in order to move ahead with . . .
SINGER: And what is the legal basis for subcontracting under Freilich &
Leitner rather than doing it directly through the Agency?
FOSMOEN: I'm not an attorney.
SINGER: I know, I'll turn to our . . . because I haven't heard that response
yet.
FOSMOEN: I would also remind the Agency that it's the same process that was
used in preparing the Redevelopment Plan for South Pointe (unclear, overlap) .
SINGER: The question came up and I'd like to hear the legal answer.
WEINER: Well, these documents were submitted to me for the first time in
this package so I, quite frankly, .. .
FROMBERG: I'm sure Mr. Leitner can answer the question and he . . .
SINGER: Okay. I wanted to hear from our Agency Attorney, but if he's not
prepared to answer, let me hear from Mr. Leitner.
DAOUD: Wait a second. Point of information before you start. Why wasn't
this given to our Agency Attorney before? This document? Why didn't our
Agency Attorney, with all due respects to Mr. Leitner, and everything else,
why didn't our Agency Attorney get a chance to look at this beforehand?
FROMBERG: I'm sure she did, when she was here. You know, Mr. Weiner is new
on board here. There isn't anything that's happened . . . There's a natural
transition. But why don't you . . .
SINGER: Let's find out from Mr. Leitner if that process is (unclear,
overlap)
DAOUD: Mr. Weiner has been here since September.
FROMBERG: Maybe he just hasn't had a chance to review it. It isn't that
it's been hidden from him. I mean, that's .. .
SINGER: Mr. Leitner, please response.
PARKINS: I'd like to address that, if I may. The documents themselves, just
very quickly, came in November 30th, so you only would have had a short
period of time to review, as did we.
SINGER: Okay. Mr. Leitner.
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LEITNER: We have a legal services agreement with the City, which, as you
know, we've had for two years. When we first entered that agreement with the
City, it made specific provision for us to subcontract with any experts,
planning, engineering, or otherwise, that we felt might be needed to carry
out some of the tasks that were necessary for the redevelopment project. One
of the first things that we did was to hire Post, Buckley to do . .. and
Halcyon was part of that team, and that's what Dick was referring to. We
hired them to subcontract with us to do the Redevelopment Plan which was
ultimately adopted by the City. Now, we're continuing to . . .
SINGER: My question is, what do we gain, or what is the reason for doing it
under you versus through the City besides having the contractual agreement
with you? Is there some basis? Is there some benefit?
LEITNER: We have responsibilities under our agreement for carrying out the
redevelopment project and many of the aspects of it, so if these people are
reporting directly to us, we can administer those contracts with them and we
can assure ourselves that they, the team that we put together along with our
firm, can do all of the tasks that are necessary.
SINGER: Is there any disadvantage to the Agency to the fact that they're
contracting directly with Freilich & Leitner? Or is that . . . Anybody have
any comments on that?
PARKINS: From an administrative standpoint, we see no disadvantage. We see
an advantage in that we have Freilich & Leitner, who are attorneys/planners,
supervising this work.
SINGER: Okay.
FROMBERG: But, again, I don't think that there's any pride of authorship on
the part of Freilich & Leitner. If you want to take the responsibility and
turn it over to the City Attorney, and have the City Attorney take care of
this and get them out and have the City contract directly with these people,
other than through them, we'd be happy to do i t.
LEITNER: We don't benefit in any way from doing it this way, if that's the
question.
FROMBERG: So, what, I think, the original purpose was of those who had
designed the entire zoning plan and carried it through the various agencies
for South Pointe, would be in the best position to oversee the work of those
who are performing services within that area. Now, if anybody wants to
change that, we can do it and I don't think we'll have any resistance
whatsoever from Mr. Leitner.
LEITNER: No, you'll not.
GRENALD: I thought we agreed, when we hired Mr. Weiner, that we would do as
much in-house as we possibly could and I would like for him to have a full,
thorough knowledge, and not at the last moment, of all contracts, because
ultimately that's where we look to for our legal opinions and I would urge
that we do include him in that process, or give him the full responsibility
at the point of negotiation.
SINGER: I'd just like to say I see two things here that we have to deal
with. Number one is whether or not we feel the matter should be deferred in
order to give our own legal counsel an opportunity to review the documents.
And a second issue is the issue that deals with whether or not we feel that
we should be reviewing more of the applicants than the Halcyon team.
DAOUD: Mr. Chairman.
FROMBERG: Okay, let me make a suggestion. Why don't we have the City
Attorney review this contract; sit down with Mr. Leitner and Mr. Fosmoen and
report back to us with his recommendation as to how he would like this
handled in terms of the relationship between us and whoever does the corridor
studies as a starting point.
M.B.REDEVELOPI'IENT AGENCY - 12/5/84 Page 8
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DAOUD: Mr. Chairman, if you like I will put that in the form of a motion as
you stated it, and I want to . . . I couldn't agree more with Bruce. I think
Bruce has hit upon an issue, and Sidney and Ben have hit upon and issue. You
know, I have to tell you this. I'm really surprised when our General
Counsel, who I have total confidence in, says he gets these documents two
days before the contract and then it goes ahead. He's really the one that we
have to look upon and hopefully, you know, with all due respects to counsel
that's present, Mr. Leitner, he is the one that's involved in the City
process, that this reflects on the entire community. I would like to see, at
least, the Attorney get the documents ahead of time and given a chance to
review it so we can get the opinion of the Agency Attorney. So, it's in the
form of a motion.
FROMBERG: Okay.
FOSMOEN: Mr. Chairman.
FROMBERG: Yes, Mr. Fosmoen.
FOSMOEN: Just for the record, documents that are before you, as I indicated,
are draft documents. We're not asking you to take an action on those
documents today. Obviously, the Agency Attorney and the City Attorney is
going to have an opportunity to review those documents before we bring them
to you in final form.
DAOUD: Mr. Chairman, can I say something in response to that? That's the
exact point why they should have gone to the Agency Attorney. They're in a
form of a draft. If we were going to make changes, if we were going to have
any suggestions here at the table, where we only meet twice a month, our
Agency Attorney could have saved us time, the information could have been
put in, his legal advice could have been followed, and then we could have
gone ahead and made the changes at the table, and then gone ahead and gotten
the final draft secondly. That's the exact point why he should have been
informed, Mr. Chairman.
PARKINS: What Mr. Fosmoen is suggesting to you, sir, is that you have before
you, really, what is a conceptual design of a draft. It's not in any way a
final document. Certainly, that process you just described has to be
involved before the final documents come back to this body.
FROMBERG: Okay, we weren't going to take any action on the approval of the
documents . . .
PARKINS: That's correct.
FROMBERG: . . . today anyway. Let's . . . Okay, there's a motion been made.
WEISBURD: I' ll second it, but I'd like to add or do you want have a separate
motion?
FROMBERG: Well, let's . . . no, no.
DAOUD: Let's hear your addition . . .
SINGER: That has to do with the teams.
DAOUD: Oh, okay.
FROMBERG: No, no.
WEISBURD: To have more than one firm come before us.
FROMBERG: That will be Phase two, okay?
WEISBURD: Okay.
FROMBERG: Phase one is . . . a motion's been made that the matter, with regard
to the contracts and whether or not the corridor studies should be under the
subcontract with Freilich & Leitner or whether it should be on a contract
M.B.REDEVELOPMENT AGENCY - 12/5/84 Page 9
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FROMBERG (continued) : directly with the City, that this matter be referred
to the Agency Attorney in consultation with Freilich & Leitner and the City
administration and for the Agency Attorney to report back to us with his
recommendation as to how he would like to see us handle it. It's been moved
by Mr. Daoud, seconded by Mr. Weisburd. Any discussion? All in favor
signify by saying "aye". (AYE) Any opposed? It passes unanimously. (7-0)
The second motion by Mr. Weisburd is that with regard to those groups
that have indicated a desire to be a part of the corridor studies in the
three categories named, that the Administration narrowed down to what? --
three of each category -- and to report back to the Agency . . . In order to
save some time, because we did find out that the whole process is dependent
upon these corridor studies and that is the process of putting out various
parcels for bid, could we make it so that .. . And I think that the selection
team, from what I hear Mr. Daoud saying, should be recomposed so that there's
no member of the selection team that has any former business relationships
with any of these people, if you can find some, . . . And that the selection
team, I think, bring before the next Agency meeting, the three people from
the three categories if they're able to come. You're going to have nine
people. Is that . . . And that we will make a selection at that time? Is that
what your motion is, Mr. Weisburd?
WEISBURD: Yes.
GRENALD: Does he have a second on that?
FROMBERG: Is there a second to that?
DAOUD: I'll second it.
FROMBERG: Seconded by Mr. Daoud.
GRENALD: Let me speak to the point on that. Number. one, you have these
three teams available here today. Number two is, I feel that while this has
been a fluke, I don't think there's been anything sinister or clandestine and
I feel that I would like to hold this motion until we get a recommendation
from the legal department, after they've had an opportunity. At the same
time, while these gentlemen are here, I would like to hear the three teams
they put together, who, obviously, the Administration, Mr. Tae i the r, and Mr.
Fosmoen, have chosen the three to work together and I would like to hear them
while they're here and then, based upon what Mr. Weiner tells us, we can
either at that time, say, if we're not satisfied, bring in the other two sets
of teams or proceed with the three that have been chosen.
FROMBERG: Let me make a suggestion that's possibly . . . I understand where
you're coming from, but let me make a possible compromise proposal. It
really is only Halcyon that has been the subject of the conversation.
They're the marketing research phase of this team. Is that right?
FOSMOEN: That is correct.
FROMBERG: Why not have the presentations by the design group and what was
. . . The third category was what? There was design, market research, and what
was the .. .
FOSMOEN: Housing research, housing market analysis.
FROMBERG: Market research and housing market analysis, that's Mr. Goodkin.
FOSMOEN: That's correct.
FROMBERG: Why not have the presentations by the design team and the housing
market analysis group, Mr. Goodkin, and have, at the next meeting, the three,
two others in addition to Halcyon, on the market research aspect, come back.
WEISBURD: In other words, you're not changing the procedure, you're just
starting it sooner.
FROMBERG: No. Rather than have three people in the design group, three
people in the the market research, three groups in the housing market area
M.B.REDEVELOPMENT AGENCY - 12/5/84 Page 10
FROMBERG (continued) : come back, that's nine people, why don't we accept the
recommendation with regard to the design and the housing and hear from them
today and if there's any reason why we don't want to go forward with them,
then we can make that comment, if we . . .
WEISBURD: Yes, but we have no comparison if we only listen to . . .
FROMBERG: That's true, but in the selection process, you're dealing with
services. I mean, Mr. Goodkin is out there. He's been a national advisor on
housing throughout the United States and one of the principal figures in this
area. I would say to you that, in the final analysis, in that area, you're
going to wind up with three experts that are going to have to fly in, at
great expense, if they care to, to make a presentation here.
SINGER: Mr. Chairman, the point is that we had a selection process and I
don't see anything that was wrong with the selection process. A question has
arisen regarding a potential conflict on one of them. No, no, I'm saying "a
question has arisen". You can't question me on that. The question has come
up, okay, that's what my statement is. And if that, in fact, be the issue
then we should go ahead with the other two. Where I differ a little bit from
Sidney is that I don't believe that I can sit up here and spend the hours and
hours of time necessary to evaluate every single professional contractor and
subcontractor that ever comes before the City. That's why you have selection
committees and there's no way that I could really do justice to that process
compared to what two or three professionals who know what they're doing, more
than I do, spending hours and hours on this process. So, I would make that
in the form of a motion for you as far as the other two, the design and the
housing, to be able to hear them after we take a break and get to a few other
matters that we have to take this morning.
WEISBURD: No, I still would like to stay with my motion.
FROMBERG: Okay. Then -- it's a motion and second and that includes all nine
being presented to us.
WEISBURD: With adequate information prior to the meeting.
FROMBERG: Okay. The alternative that I am suggesting, and I'm going to vote
against this because I really feel that, at this point, it's too cumbersome
and . . .
SINGER: Just vote on it, Mr. Chairman.
FROMBERG: But I wanted to point out to you that if you vote against this, I
would make the motion that we bring back the three finalists in market
research for the next meeting and hear the design and housing market anaylsis
groups this morning. Okay. Mr. Fosmoen, did you have something to say?
SHOCKETT: Mr. Chairman, are we followig our rules? There's two motions on
the floor at the same time.
SINGER: No there's not. There's only one and it's Sidney's.
SHOCKETT: Bruce, will you wait a minute. There was a motion to send this
back to the screening committee. That was one motion. The second motion is
Sidney's motion. He read two motions.
FROMBERG: No, (unclear, several speak at once.) We passed a motion with
regard to the contract itself and that was to have the Agency Attorney report
back to us with regard to whether he wants . . .
SHOCKETT: That was passed.
FROMBERG: Okay, there's only one motion on the floor .. .
SHOCKETT: Well, you stated it then as two motions because you made it in two
parts because I have a comment on what I understood the first part was.
M.B.REDEVELOPMENT AGENCY - 12/5/84 Page 11
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00
FROMBERG: Okay, the only motion that's on the floor right now is
Mr. Weisburd's motion that we bring back all, the three finalists . ..
WEISBURD: Bring them back? Bring them for the first time.
FROMBERG: . .. bring before the next Agency meeting, the design group, market
group and the three finalists in the design, marketing research and
housing market analysis groups.
SHOCKETT: My comment is that Mr. Fosmoen stated that the make-up of the
screening committee was Mr. Freilich, Mr. Fosmoen and Mr. Rogel. I would
like to see some participation on that selection committee by members of the
Economic Development Council, someone outside the (unclear)
FROMBERG: Okay, what we had suggested also, as part of the motion, was that
the selection team be revised with regard to the other two . ..
SHOCKETT: Right.
FROMBERG: . . . so as not to create any possible conflict.
LEITNER: Mr. Chairman, can I respond to something that Mr. Shockett
mentioned? (FROMBERG: Yes.) One thing i s, even though there were only
three of us on the selection committee, we undertook a very detailed analysis
of all of the proposals that we received. We prepared an evaluation form
modeled after some of the evaluation forms that have been used by the City in
other processes to hire consultants. We filled out those forms very
carefully and then we assembled the information and gave our recommendations.
So, we went through a very careful process to do that. Secondly, this was
taken before the Economic Development Committee and they approved of this
particular group that was recommended. They had access to all of the
information that we had access to.
SHOCKETT: Let me say this . . .
FOSMOEN: And also the South Pointe Subcommittee.
SHOCKETT: Let me say this, then, perhaps some of the feedback I've been
getting is inaccurate . I'm not saying that the Administration doesn't
consult with individuals who make up the Economic Development Council, but
I've heard that their advice and expertise is not often sought after and this
is a resource available to the City, which was never here before you got
here, Mr. Fosmoen. These are people now, who have come out and want to help
the City and have something to offer and I'm very concerned that when you
follow procedures that have been followed in the past by the City, and you
make a careful analysis, I don't doubt the sincerity or that everybody used
their best efforts in this particular process, but there are some areas,
possibly, that people who have expertise in fields which you don't, might be
able to lend their advice and that's why I want to see every advantage taken
from these people who are part of the Economic Development Council and also
the Rediscover Miami Beach Committee. I bring that out, not to be critical
of anything you've done, but to make sure that these people are being used.
FROMBERG: Okay. Gentlemen, we have a number of people that we have to get
released immediately so let's finish this and let me get . . .
WEISBURD: I have a motion on the floor.
FROMBERG: Okay. The motion's been made and seconded. Mrs. Baker.
BAKER: Mr. Arkin No
Mr. Daoud Yes
Mr. Fromberg No
Mr. Grenald No
Mr. Shockett No
Mr. Singer No
Mr. Weisburd Yes
Motion fails, 2 in favor, 5 opposed.
M.B.REDEVELOPMENT AGENCY - 12/5/84 Page 12
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FROMBERG: Okay, I will entertain a motion now that we hear today from the
design group and the housing market analysis group and that the recomposed
selection committee bring us two other groups in the market research area
that will be represented back to the Agency at the next meeting. And, we can
hear from Halcyon if you want, today, since they're here.
FOSMOEN: Mr. Chairman.
FROMBERG: Yes.
FOSMOEN: I wonder if I might comment? Apparently, the concern is that I had
a professional association with Halcyon and, therefore, you are setting them
aside and you are going to want to hear from two other groups in addition to
them. You know, there was no intent, and if anyone on this Agency thinks
that there is a continued association with them, I wish that they would speak
up. I judged them, and the other members of that committee judged them,
based on their knowledge of South Pointe, and the fact that they were
involved in the original redevelopment plan, the fact that they have worked
with Land Design Research and have produced successful products before. Now,
if there is any feeling on the part of the Commission that somehow my
participation in that process added additional credence to Halcyon, I'd like
that brought out because I think we're creating an impression that is totally
erroneous and we are now setting aside that group because some year and a
half ago I had a professional association with that group in South Florida.
SHOCKETT: I think we ought to address that comment to the Agency Attorney.
Is there a conflict of interest problem here? I know that we have a conflict
of interest statute.
WEINER: The first thing, and I don' t know, and maybe Mr. Fosmoen and I can
discuss it when we discuss the contract review that was the subject of the
first motion, but I'm not sure what a professional association is and I don't
know whether this is the forum to he discussing it. The question is, is he a
paid employee, does he still have a continuing . . .
FOSMOEN: I was a consultant to them and I have no continued involvement.
SHOCKETT: He said he doesn't. I mean he . . .
ARKIN: Mr. Chairman, I move that we accept the three components of the
Freilich & Leitner team.
GRENALD: There's another motion on the floor.
ARKIN: No there isn't.
FROMBERG: There's no motion.
GRENALD: Oh, there isn't.
FROMBERG: Okay.
GRENALD: Is that subject to Mr. Weiner's clarification and knowledge of the
contract?
FROMBERG: No.
GRENALD: Okay. I will second that.
FROMBERG: Let me . . .
DAOUD: Mr. Chairman, point of information.
FROMBERG: Just a second. What the motion made is, is that we go forward
with hearing today the three components of the selection process and make a
decision on that, and this does not in any way conflict with any potential
decision as to with whom they will contract.
M.B.REDEVELOPMENT AGENCY - 12/5/84 Page 13
O 000::t96
DAOUD: What is the motion exactly? Let me hear correctly what the motion
is, please, Mr. Chairman.
FROMBERG: The motion is that we go foward and hear the three components of
the corridor study group and make a decision as to whether we wish to accept
them.
DAOUD: Point of information, if I could.
FROMBERG: Yes.
DAOUD: As my memory was being refreshed on this issue, I recall that I did
support this and I voted for it. One of the things that was brought out, and
I believe it was done very astutely by Mr. Shockett, was that he requested
some background information to be put in the packet and some other items to
be brought out, exactly, I believe with the principals and everything else.
And, as I recall, . . . Now, if I'm doing this wrong, Billy, I apologise
because I don't remember exactly. I remember that there were some comments
that you put on the record of information that you wanted that I thought was
excellent, on the background, when the contract came up. I was just
wondering what happened to that information and . . .
FROMBERG: What's that got to do with this motion?
DAOUD: What it has to do directly with this motion, Mr. Chairman, is it's
going to go ahead and they're going to be heard now. Now, if we're going to
hear them, which we' re going to go ahead and do, I just would have liked to
have seen if that information had been given or if it's available. That's
what it has to do with it.
GRENALD: You know something? Let me say something. Something has to be
said here, right now. Perhaps the process hasn't been as purified as we want
to get it, and that's fine, and I'm 100% for that, but I'm going to tellY ou
something. I've watched Mr. Fosmoen work for a year. I am satisfied that he
is both competent, honorable, dedicated, knowledgeable, and that he's doing a
great job for the City and I'm willing, personally, to hear the three people
subject to Mr. Weiner checking the contract of the association, to see
whether that should be directly under the City or through a subcontractor
with the other firm.
FROMBERG: Gentlemen, I think that . . .
GRENALD: And I think we're just belaboring something that . . .
FROMBERG: We've been on this . . .
GRENALD: . . , by experts.
FROMBERG: We've been on this for about 45 minutes now. Let me just say that
all of you recall that the Halcyon group participated in the essential phase
of the rezoning of South Pointe. They came before us. Their studies were
voluminous. We all had a part of that process. Certainly they're a
qualified group. The question is, are you going to nullify this process
because of the fact that some year and a half ago, when Mr. Fosmoen was in
private practice, this group was one of many clients that he had, the same as
an attorney could have many clients. That's where you're at. And, as Mr.
Grenald said, very eloquently, I think, sure it would have been better if he
was not a part of the team, because then we wouldn't be discussing it at all,
but we learn for the future and we can make changes from now on.
WEISBURD: Mr. Chairman. The reason I made the motion is not because of what
you just said because I also have the greatest regard for Mr. Fosmoen. My
concern is, why are we sitting here and we're going to listen to three . . .
well, it's one firm at the end . . . and no comparison with any other firm. If
we have the confidence in the team that has already selected them, rubber
stamp it and let it go. I thought the buck stops at this table and we should
review applicants for this kind of a corridor study. If it's just a simple
matter of listening to them, I have no comparison. All I can say is, yes or
no, and if I say no, I don't even know why I'm saying no -- because I don't
like the way they comb their hair.
M.B.REDEVELOPMENT AGENCY - 12/5/84 Page 14
0 000397
FROMBERG: I'm going to cut off the discussion right now. Let's just take a
vote. Okay? The motion's been made by Mr. Arkin and it's been seconded by
Mr. Grenald. Any further discussion? Mrs. Baker, let's take a roll call on
it.
BAKER: Mr. Daoud No
Mr. Fromberg Yes
Mr. Grenald Yes
Mr. Shockett Yes
Mr. Singer Yes
Mr. Weisburd No
Mr. Arkin Yes.
Five in favor, two opposed. Motion carries.
FROMBERG: All right. We'll hear them in a minutes. I just want to take a
break and make a presentation. First of all, we' ll have Father Allen. Are
you here? Welcome. Would you come up, please. Father Allen is with St.
Joseph's and we're delighted to have him and he's going to present the
invocation.
(The meeting was recessed at 10:03 A.M. and was reconvened at 10:35 A.M.
with all Agency members present.)
FROMBERG: We are now back into the Redevelopment Agency agenda. Mr. Fosmoen
do you want to present the various components of this team?
FOSMOEN: No, let me have Mr. Leitner present them to you.
LEITNER: I'd just like to say that this part of the redevelopment process, I
think, this particular project, the corridor studies, is really a very
important part of this process. I think it represents in some ways a real
turning point for the redevelopment project because up until now, we have
seen most of the activities and most of the action that's been taken has been
on the public sector side of it. Through that process, we've tried to lay a
good foundation for what's going to come next. We have adopted the
Redevelopment Plan, we have adopted the zoning for South Pointe, and the City
has committed some very substantial amounts of money to public improvement in
South Pointe, through the South Pointe Park as well as the $9.8 million bond
issue and the Marina and other activities that have been taken there.
Now what we're trying to do is something that I think you've all
probably been waiting for, very expectantly, for these last two years, and
that is to try to get the private sector more heavily involved and to
identify some specific parcels of property in South Pointe that would be
appropriate for RFP's to go out for bids for development and redevelopment
very quickly. And, the specific product that we hope will come out of this
project and that we desire,is that we will have very detailed development
plans for specific parcels of property and they'll be done in such a way that
they will be available to go out for RFP immediately. That is, it will
identify what the economics of development will be on those parcels and what
the financing will be, how the property can be aggregated, if it's not
already aggregated, what the specific land uses will be, the specific
intensity, the urban design criteria and everything that is needed for it to
go out for RFP immediately. And, it's with that particular purpose in mind
that we brought together this particular group of consultants because they
all have very substantial expertise in these fields and they also all have
very great contact with the private sector. One of the secondary benefits
that we hope to get out of this is that these people all have a lot of
developer, private developer, contacts and clients and we hope they can bring
to the table as part of this process. And, one of the tasks specifically
identifies this, to bring prospective developers forward who would be
interested in specific office or residential or commercial aspects of South
Pointe redevelopment. So, I know that you're anxious to meet the people that
are here. There are three groups . . . .
WEISBURD: I'd like to ask a question before you go on because I was really
concerned about having an additional consultant to a consultant,
subcontractor, or whatever. And, going over this Phase I and looking at the
plans that were proposed, given to us, I guess, a year ago, the South Shore
Revitalization package, I felt that there was some dupliction here, or what
M.B.REDEVELOPMENT AGENCY - 12/5/84 Page 15
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WEISBURD (continued) : we're doing in corridor studies, unless I'm wrong,
we're dividing up the property and we're going to say, whoever the team ends
up being, that we have a parcel of land here, a corner of the redevelopment
area, and that is prime property, and all of a sudden, those people in that
area are going to have high expectations that that property is going to be
worth a helluva lot more than it really is. And, my concern is, that
expectation won't be met, similar to the previous redevelopment plan where we
had a problem and it went down the drain. I'm concerned about this additonal
piece of work at this time, and I don't have a good feeling. I feel like
we're doing too much. All we're doing is putting a lot of plans, a lot of
committees, a lot of things in motion, but nothing happens, and I think that
was the failure of the redevelopment plan. No action, only talk, spending
money and getting nothing done and I'd like to have an answer on this
possible high expectation of a corridor study where some people might feel
that their property is worth more because the corridor study says, hey,
that's a good place to start building.
LEITNER: First of all, I think that there has been a lot done over the last
two years and there's been a lot of progress made that has set the stage now
for what we want to do next. I think the Marina, the South Pointe Park, the
Cheezem development, the adoption of the plan, the adoption of the zoning,
the reinstatement of tax increment financing, are all very substantial
achievements that have occurred in the last two years. And, those are all
necessary before we could get to this point in the process. Now, we want to
work very hard to get the private sector interested in specific developments
on specific parcels of property in South Pointe. Now we have a
redevelopmment plan which provides an overall concept in a general plan for
development. What we need now are the specifics, the development economics,
the development financing, how you can leverage public and private funds to
make it work, what kinds of write-downs you might need, what the specific
intensities ought to be to make it work financially for a developer, and also
the timing is very critical and which elements ought to go first, whether you
start with an office project or a commercial project or what type of a
residential project (unclear, overlap)
WEISBURD: But wasn't that in the South Shore Revitalization Plan? It said
these streets should be a corridor for stores and shopping, this should be
for high-rises, this should be for hotels. I thought that's what we had
already. Why are we doing it again?
FOSMOEN: You' re right, Mr. Weisburd. Let me put it this way. If this was a
hot real estate market, if this was Broward County or West Palm Beach and it
was vacant property, the development community would be, in fact, doing the
thing that we're doing. They would begin testing the market. They would
begin putting packages together and, in fact, proceeding on toward
construction. This is not a hot real estate market. What we're doing . . .
WEISBURD: (unclear)
FORMOEN: Well, we may believe that, you may believe that, but I can tell you
that the development community does not believe that because they're not
investing their dollars in this area. What we're doing is really the
developer's work with a team of national consultants, so when we go to those
developers, we can say Halcyon, LDR, and Lew Goodkin have told us that they
believe this could happen. Their credibility and the package that we present
them is really their preliminary work, and now we've got them interested. So
that's the distinction.
WEISBURD: You know, I believe what you're saying. Dick, I believe exactly
what you say, but I' ll tell you something. It's the old story. If our own
people that have the wherewithal would invest and build on Miami Beach, that
would tell the world that "come on down". Just studies doesn't tell anybody
to come and invest.
FOSMOEN: Again, Commissioner, you're right, if our people would do it. But,
they're not doing it and we are, again, doing the pre-developer work
necessary to interest that development community. They're not going to spend
these kinds of dollars in this real estate market. We're going to have to do
it and make them believers.
M.B.REDEVELOPMENT AGENCY - 12/5/84 Page 16
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•
WEISBURD: All right. I just wanted to get it on record that I was disturbed
about the additional subcontracting, not the dollars involved so much but
what I felt we're duplicating and that's why I wanted to listen to all three
firms. It was not a stall, but let's see what the rest of the world has and
it had nothing to do with the previous comments. So, t guess you can go
along with the presentation.
LEITNER: Okay. I'd to introduce first Michael Buckley and Jerry Rappaport,
who are from Halcyon. Mr.. Buckleyis the going
president of Halcyon and he's going
to make a presentation and then he will be followed by Cy Paumier and Kim Way
of Land Design Research and then Lewis Goodkin of Goodkin and Associates.
WEISBURD: Okay. Welcome. State your name for the record.
MICHAEL P. BUCKLEY: Thank you. I'm Michael Buckley, president of Halcyon,
probably the man on the hot seat considering the other comments that went on
this morning.
Let me tell you something about our firm. We're a development
consulting firm with offices in Hartford, Connecticut, and Washington, D. C. ,
and San Francisco, California, and recently in Miami, as of two months ago.
We have basically three areas of expertise and it is precisely those three
areas of expertise that we bring together on any one assignment. I think
that is the strongest extra, additional, amount that we bring to each case.
For example, in mixed-use development it's always hard to say these things
about yourself, but I think we invented the game of consulting on mixed-use
projects starting with Citicorp Center in New York City, which was done in
1978 when, I think everybody whose got a memory for the fiscal circumstances
of the City of New York in 1978, it was really on its rear. This was the
first major structure being erected by a corporate enterprise and they had an
unusual challenge given to them by the community, that is to make the office
building come alive. The result is the International Market at Citicorp
Center. Twenty thousand people a day tour the building. It is even more
crowded on Saturdays and it exists as an active, viable, city space even in
the evenings.
That kind of consultancy we've done on 50 other projects across the
country. A brochure is being handed out to you that chronicles some of that
work.
In financial analysis, the second area of our firm. We serve as the
national technical advisor to the Urban Development Action Grant program
throughout the United States. Incidentally, we were hired under Carter,
survived Stockman, and rehired under Reagan, so it's been an interesting
experience with that program. As you are all probably aware, that's the only
Federal program directly involved in financing urban development of the kind
that Miami Beach would want to entertain. That gives, in fact, conflict of
interest, as you can imagine to us, in enormous amounts of ways, especially
in circumstances where we might have been involved befre on a UDAG
application. However, it does not harm you at all from having us work for
you. It just works in the reverse for us.
We've also advised Merrill Lynch and a number of other private
developers and financial houses. We wrote the underwriting specifications
for the new housing UDAG program on a direct sole-source with HUD and we have
been privately consulting in that new program. As you know, that was a one-
time shot prior to election time. Hopefully it will be revived. We've
advised the State of Louisiana through E. F. Hutton on a major state housing
agency issue and they secured all of their housing UDAG applications.
So, the second part of the firm, in addition to a sort of mixed-use
consulting is this financial and market economic analysis, which is what
we're here to do for Miami Beach.
The third element of the firm is development management. We have
actually been involved in project and construction management. We do
selective leasing and we operate properties. We think that gives us a better
access to the concerns of developer owners and the concerns of management and
in that regard we have an agreement with Dade County to serve as their
advisor for the entire Dade County Government Center. That project is now
staffed and, in some respects, while it's a separate situation, that means
that work that we do here we cannot comfortably retire to Connecticut and
consider the consequences. It'll he right here in our backyard.
We've also worked with Burdines Department Store in creating the
prototype, The Market Place that you see in Downtown Miami, that was in space
M.B.REDEVELOPMENT AGENCY - 12/5/84 Page 17
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BUCKLEY (continued) : that was vacant for 15 years. We had hoped that we
would be rehired to do that in everyone of their regional malls, but that
dream did not come to pass.
In district planning, and that's what this exercise is all about, it's a
district plan, our experience includes the Dallas Arts District in which the
City of Dallas decided to spend money, much as you are, to convince the
development sector to flow behind several city investments, the new Symphony
Hall, the new Dallas Museum of Fine Arts. The idea was if a plan could be
created, the growth of downtown Dallas could somehow be shunted to that
quadrant of the city and that, through a series of development controls, they
could not only create value, but they could create a kind of environment in
which the citizens of the city of Dallas could enjoy the infrastructure
already proposed by the City. In that case it's all voluntary. However, the
City will contribute a massive amount of public infrastructure. Although
there are no benefits they can extend in the city of Dallas, you can build
almost anything you want. It's simply market-driven. So, that was an
unusual assignment.
For the Dallas Cowboys organization, we're working on a $250 million
project, again, creating value out of nothing in a way around their new
headquarters facility. I had hoped to receive the concession to watch the
cheerleaders practice, which would send my children to college, but they
wouldn't give me that.
We are working on seven blocks of downtown Austin, Texas, for a
developer who has much of this property under control. Again, it's a
district plan where he's attempting to create a long-term land-play that
involves sophisticated cross subsidies with the City of Austin, Texas. The
same developer has also recently filed, with our assistance, for building the
new city hall, which is a very interesting experiment the City of Austin,
Texas, is about. That's creating value and I think that's what this district
plan here is all about.
What do you really want besides development? You want a responsive
environment that will contribute back something to the citizens of this city.
Our Florida experience, I think I should point out. Mr. Fosmoen was a
consultant to us and he did secure two assignments. One was Tampa, how to
advise that city on how to re-use Union Station, which had been nearly
abandoned for a number of years, a fine historic structure. Unfortunately, a
little off the edge of development. Dick was able to secure for us exciting
contracts like that, that we. lost money on, and has a difficult development
outcome, but we wanted it because it was historic preservation on the outside
shot that if there ever was a bullet train, it would arrive right there at
that station.
The second assignment that Dick was able to secure for us was an
assignment that we also lost money on, (laughter) which was an assignment for
Coconut Grove Playhouse Theater, property owned by the State of Florida,
transferring that property back to the City of Miami, using a development
scheme for the parking lot next door to support that theater and to hopefully
eradicate permanently the continuing support that the State of Florida has to
give to that enterprise. A very exciting assignment.
We are currently underway with about six blocks of downtown Orlando. the
new duPont Center project named after William duPont IV, so he's got some
opportunity, and we have planned and it's currently under construction a new
waterfront center called Sarasota Quay, which is directly on the water in
Sarasota with offices and specialty retail.
I would like to end my comments by saying that, hopefully, we bring some
access to the development community. I am a professor at M.I.T. 's new Center
for Real Estate Development in Cambridge and left there last night to come
down here to talk to you this morning. I'm also a member of the Commercial
Retail Development Council at the Urban Land Institute, which is, of course,
exactly the kind of development community that you wish to speak to. Thank
you very much for the opportunity to present.
FROMBERG: Let me just ask one question of you and maybe the other people can
address it, too, if it's not in your field. What concerns me is -- I mean I
don't know that we can avoid it -- that once we define these corridors, the
land value within that area is going to become even more out of sight or more
unreasonable than some of the people value their land at the present time.
Is there some mechanism by which we can establish the values of the property
in the area before we announce that we're going to put out a specific area
for bid?
M.B.REDEVELOPMENT AGENCY - 12/5/84 Page 18
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BUCKLEY: Let me just . . . I'm going to let Jerry Rappaport, who ---- I'm
supposed to run things and he's supposed to think creatively and financially,
so it's more his skill, but there are some techniques by which -- I mean,
land can only bear so much value before which the development community will
not move anyway. So, there is sort of a natural equilibrium level and why
don't you talk about it.
JEROME L. RAPPAPORT, JR. : One of the major things we're going to do is have
an acquisition strategy, implementation strategy, by which you can figure out
how much the development can support and where that money can come from so
that if prices do go out of sight, the developer wouldn't work and they
wouldn't get that amount of money that you think the prices would go up to.
So, there's really a mechanism in the development community that they
couldn't afford to pay, the prices, if they escalated just out of theory or
out of speculation.
FROMBERG: Well, if you could somehow establish what the value is before the
announcement, by either contacting some people in the area or getting
brokerage, putting out brokerage contracts where properties are listed for
sale within that area so that you could compare that before and after, you
may be able to establish that the increase was due to total speculation.
What I think that we are encountering is that because of the good work of
this Commission really, and the hard work of a lot of volunteers in the
community, things are moving forward, and already in that area it's been
reported to me that people have inflated ideas of what their property is
worth.
BUCKLEY: I can imagine that that's true. On the other hand, there are
density restraints and there are a number of market factors that simply will
serve to push those values down. It is not Fifth Avenue. The FAR ratios are
not 30. People think of real estate in terms of what the highest and best
use they can ever imagine, they always think about those kinds of values and
I think there's a more reasonable level, but I don't know how you would treat
the (unclear, overlap)
SHOCKETT: I have a question about this area. We're not talking about
condemnation?
BUCKLEY: No, we're talking about . .
SHOCKETT: We're talking about private developers coming in and we're
identifying a corridor for them so . . .
BUCKLEY: That's correct.
SHOCKETT: . . . it's the supply of the market place.
BUCKLEY: That's correct.
SHOCKETT: One of the key factors of office buildings on Miami Beach, and as
an attorney having practiced on the Beach and in town, I think that the
location of the Beach is as good or better than any in the County for access
to Broward, South Dade, Central Dade, Downtown. You can't beat it. But, the
key factor is that you can build a comparable building to Brickell Avenue
with so much less land cost that your rentals are substantially less than
Brickell Avenue and that's the advantage you have.
BUCKLEY: That's correct.
SHOCKETT: If the market goes up or if these people demand these prices,
where the land is going to cost you to rent comparable to Brickell Avenue,
you haven't accomplished anything.
BUCKLEY: That's correct, but on the other hand, the market's going to say
something about whether the density demand is there for anything near like
the Brickell Avenue corridor.
SHOCKETT: But, I can't . . .
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BUCKLEY: But, you're right, if the land price inflates out of suspicioned
greed, then you drive the competitive advantage down.
SHOCKETT: Nobody's going to buy it.
BUCKLEY: That's correct.
SHOCKETT: Nobody's going to buy it. I think it's a concern but I don't
really think it's a valid concern. You may have people, you have them right
now, that people are asking exorbitant prices for properties. They're not
moving.
BUCKLEY: Yes, but if they ain't getting it, then it's a different story.
SHOCKETT: They're not moving.
BUCKLEY: That's right.
SHOCKETT: Exactly, so I think . . .
BUCKLEY: The market has a way of leveling out those expectations. It's a
little painful over the short term, but it has a way of balancing.
SHOCKETT: I want to see the study done and I want to see the results that
Mayor Fromberg is concerned about happening. Actually, I want to see people
come in and pay top-dollar for property. That means it's worth something.
FROMBERG: You were going to say something, Mr. Leitner?
LEITNER: Mr. Chairman, I was just going to comment that the zoning on the
property is in place now and that's one of the things that we accomplished,
so the parameters of what you can build on that property have already been
set and they should have a substantial effect in determining the value of
property because they determine the intensity of use of those properties and
what's going to be done now is to identify the specific uses on those
properties, but they'll still operate within the parameters of the zoning
that's in place.
SHOCKETT: You know, I recall, I think you can see an example of it now, if
you look at the Omni complex, there was one house that the person was holding
out for an astronomical amount of money and what they did was, they just
built around the house and that house is still there and it's worthless. I
think if you're going to have some holdouts, you'll have holdouts, but the
overall concept and what we're headed for is, I think, in the correct
direction and timing is ripe right now.
FOSMOEN: Another part of the answer, I think, is . . .
SHOCKETT: Except, Mr. Fosmoen, (FOSMOEN: Yes, sir.) I heard that the two
jobs that you secured for Halcyon, were losers. What do you do, make this up
in volume? (laughter)
FOSMOEN: (laughing) No, we're going to see if we can get them to lose money
on this job, too.
SHOCKETT: No, you're not going to.
FOSMOEN: The other part of that answer, Mr. Chairman, is (FROMBERG: You're
a tough negotiator, right?) that we will then have some hard figures to go to
those property owners with and try to convince them that, in fact, the land
is not worth $110 a square foot and we'll be able to demonstrate that to
their brokers as well.
FROMBERG: Okay. Mr. Leitner, continue, please.
LEITNER: I was just going to introduce the second member of the consulting
team and that's Cy Paumier of Land Design Research.
M.B.REDEVELOPMENT AGENCY - 12/5/84 Page 20
60 0130403
CYRIL P11UMIER: It's a pleasure to he here. I would like, if I could, just
to take about two minutes and talk a little bit about process because
building on some things that were said earlier it seems to us that the
general development plan or redevelopment plan that was prepared and approved
by this Commission was, in fact, the most important first step. What I think
is now being discussed, and is essentially needed, is to look more
specifically at key development parcels, some of which the City already owns
and controls and to make, what I call, more site specific development
proposals that a developer can, in fact, react to, because much of the
previous plan, in my opinion, has a lot of generality about it, if you will.
There are development corridors, but site-specific development is very
critical to this kind of improvement.
With that in mind, I would like to just share about five minutes of
material with you that has to do with some projects that are similar, not
certainly the same, which represent our ability to help get key development
parcels rebuilt in several urban areas. (Clerk's Note: Beginning of
narration of slide presentation. ) The first development that I would like to
discuss, very briefly, is our involvement, there have been a number of key
players obviously, in the rebuilding of the Inner Harbor in Baltimore and I'm
sure many of you have seen or heard about it. We have been involved very
much in this project over a period since 1976 and the entire area was a slum,
certainly, probably, in much worse condition than the South Shore in Miami
Beach. The City prepared a very definitive development plan for the area and
the redevelopment agency, in this case Charles Center Inner Harbor, went
about taking each key project or each key piece of development and working to
get private interests involved in the rebuilding of that area. A master plan
was a key part of the process. Without such a plan, obviously, you can't
move ahead. Residential was a key part of that plan. You can see the lower
left basically is the entire residential neighborhood in which no one lived.
There was not a single resident in that entire area. Again, much, much worse
off than your situation where you do have many residents in the area today.
Much of what was done was very similar to what you, the City, have done in
the past year of helping to make commitments to put infrastructure in place.
In this case, the City hired us to put in, in some cases, notermanent- park
p
but 12 acres of waterfront land area which had been filled and secured and
this was all put into grass and trees so that people would, in fact, have
some amenity to come to.
But, there was tremendous amount of vacant, underutilized land that
nobody seemed to want to build on in the Inner Harbor, and people were very
depressed about this and many plans had been done over the years and all of a
sudden, when we began to do site specific development plans, we got major
developers to come in. This was not all high-rise construction, even though
the land was very valuable, we tried to encourage the development of a lot of
medium density housing, densities of 25 to 35 units per acre. This was a
site that had been vacant for years and we did, again, a whole series of what
we call pre-development packages and then went out and sought key developers
to come in and build new housing where these vacant sites existed and that's
the same exact view that you saw a minute ago.
Here was a street that was totally run down, no one living in the area.
Again, we did an analysis of what that corridor could look like and today it
has been totally reborn, rebuilt, new housing going in and just as you have a
zoning ordinance which allows low density, basically low to medium density in
the middle of the South Pointe area, as you can see on the edge, a site that
was held back is now being developed at a very high density adjacent to the
water. Again, there were many old buildings in the area, some of which we
felt were worthy of recycling. This was an old church, which now is a very
high quality four-unit condominium, which you can see on the left, and all of
the housing on the right has also been built. There's site after site of
vacant land that has now been developed into very high quality housing right
in the middle of the downtown.
This is a similar project. This happens to be in Pensacola. Again, a
waterfront that was totally unutilized. A series of very specific
development plans prepared by the community redevelopment agency in the city
of Pensacola and today they are moving forward with a whole series of key
development projects followed on by public investment in helping to get the
marinas in place and the boardwalks and the promenades. This first project
started about a year ago and we now have about 150 new dwelling units going
up on a piece of vacant land that had been, again, vacant for years.
M.B.REDEVELOPMENT AGENCY - 12/5/84 Page 21
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PAUMIER (continued) : This is a very high density project. It happens to be
in Caracas, but, again, it shows the importance of one of the problems in
this area is very little, what we call "good open space". Many times, open
space can in fact be secured through the development requirements which the
Leitner organization has put in where if you're going to build this kind of
density, you've got to have adequate open space and outdoor plazas so that,
in fact, when the project is all built out that everybody isn't living wall-
to-wall and that there are, in fact, places, whether they be created with
private dollars or public dollars, that there is provision for these kinds of
public areas that people can have some light in there and sunlight in their
living environment.
This is another major project on a waterfront. This happens to be in
Montreal. It's called Nun's Island. It's a project we've been working on
since 1965. There are about 5,000 dwelling units that have been built on
this waterfront. Also, another mixed use project which might be more
comparable to certain small pieces of the South Shore . . . again, the
importance of having a site specific development plan. This is a project
that both Halcyon and our firms have been jointly involved in over the years
and we're very proud of it. We think it shows the ability on the left as a
residential tower and in the middle is basically restaurants in common
facilities, in hotels, and on the right are actually office buildings.
We've had a lot of this kind of experience. We think that a lot of the
opportunties on the South Pointe area will, in fact, come alive and we
honestly believe that the future of that area lies not in high, high density,
but what we would call medium density housing because we think there are many
people in the Miami area, particularly working in the center city, who might
really choose to live in this area, if, in fact, there was good housing, high
quality, housing available, so that we were able to have a broader spread of
age and families and young people all living together on the Miami Beach
south shore. Thank you.
LEITNER: The final member of the consultant team is probably someone who is
very well-known to all of you, Lewis Goodkin, of Goodkin Associates. He's
probably the foremost residential market analyst in Florida.
FROMBERG: Mr. Goodkin, nice to see you again, welcome.
LEWIS M. GOODKIN: It's nice to see you, Mayor. I have brochures for each
of the people.
FROMBERG: Mr. Goodkin also appeared before what was the beginning of the
formation of the Economic Development Council to give his views, kind of off
the cuff at that time, with regard to the future planning of this area. I
was very impressed at that time. We're glad to have you back.
GOODKIN: Thank you very much, Mayor. I haven't done work for the
governmental sector since I've been in Florida, probably because I hear that
you lose money sometimes on the (unclear, overlap)
FROMBERG: Excuse me, let me gather you a better audience here. Could you
get back in here? And if you can get Mr. Daoud from outside, with the public
out there, is he, and tell him that we're back to business here. Please.
Okay, you can go ahead. Mr. Weisburd's back here.
GOODKIN: Our focus is on housing and 80% of the work of our firm is in the
state of Florida. Of the 20 largest developers in Florida, residential
developers, 17 of them are clients of our firm, and our focus is really on
the private sector which has to work hand-in-hand with government in terms of
the development of a community. We're excited about working on Miami Beach
because I really am a believer, as the other consultants, that there's a
substantial potential, particularly with the growth of the downtown Miami and
the Brickell corridor and the airport west area. The absence of growing,
shortage of good residential development land, which is forcing increased
growth activity into the south Broward County. Consumer research that we
have done has indicated that there could be an attractive base for housing in
Miami Beach of young people working in the downtown sector in addition to
those people that have already responded to our area. This is what the
intention of the analysis would be, is to document the housing demand, who
makes up the market, how do we capture that market, and, I think, when we
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GOODKIN (continued) : have done that, the job of bringing in the developer to
respond to that opportunity is an easy one. Developers are anxious to search
out opportunities and quite often we deal with their prejudices and
perceptions on an area and I think what the studies will help do is document
the demand in a convincing manner, not only to the community, but to the
outside developers that would be interested in responding to the opportunity.
FROMBERG: Thank you, Mr. Goodkin. I have a question. You're expertise is
in identifying the marketing area and what type of housing would best respond
to what the demand is. Is that it?
GOODKIN: Correct. We certainly do all residential as well as non-
residential research, but our focus, as far as the residential, which is the
dominant portion of our business, is specifically to identify who makes up
the housing market, not just in our area. In looking at Miami Beach, we have
to really look at, who is Miami Beach competing with in attracting potential
residents. And we look at it in a much broader picture and then discuss the
specific types of housing product that that market will be responsive to from
the design element point-of-view, from the pricing, rental ranges, and things
of that nature.
FROMBERG: How does that . . . Are you doing this on a . . . This corridor study
is limited to South Pointe?
GOODKIN: Correct.
FROMBERG: Okay, are you going to then . . . How does it get converted to, once
the market is established, and demand, how does that get converted into a
request for proposals? How do we then identify the land that we're going to
be using and discussing it with the . . . or is that where he takes over?
RAPPAPORT: What we do is we then take what the concepts are and what the
actual product type is and identify sites that it would be appropriate on,
come up with whether the financial feasibility of that which would then, he
would then have to refit into the kind of product that he talked about.
FROMBERG: Okay, what is your name?
RAPPAPORT: ,Terry Rappaport from Halcyon. So we will come up with the
financing alternatives as far as trying to make sure that, along with the
product, that we can afford the acquisition that developers know and can be
confident that not only is there a market out there but that there are sites
available, that it is a financially feasible project, and outline the
specific steps that the Miami Beach government might take to enhance that so
that then you have a development environment that is ripe to attract the
developers.
FROMBERG: So, Mr. Goodkin is stage one?
RAPPAPORT: Yes. We will be . . .
FROMBERG: And he gets you off the ground . . . a booster rocket.
RAPPAPORT: We will simultaneously be doing office and retail market analysis
to see what kind of office development is appropriate here and what kind of
community or specialty retail would work.
FROMBERG: When do we see this converted into you coming back to us with a
specific proposal for the aggregation of property in a particular area?
FOSMOEN: It's expected that there will be a series of monthly reports to the
Agency. Of course, the three teams, along with Freilich & Leitner and the
City's staff, will be working over the next two to three months to put these
packages in place. Our target date for some preliminary conclusions is that
February 15 developer conference and then we would take that back and refine
it and get it out.
M.B..REDEVELOPMENT AGENCY - 12/5/84 Page 23
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FROMBERG: Is that . . . do you anticipate it going to he a housing
presentation?
FOSMOEN: We'll be looking at three alternative development packages, if you
will, and one of those probably will be housing, one might be a mixed-use
project, and the other one taking a look at the Biscayne Street corridor.
FROMBERG: But, not only stating the demand, but also designating certain
areas as the most feasible for these types of projects.
FOSMOEN: That's correct. It's that pre-developer work that we're doing
because the market isn't hot enough to entice a developer to do it.
FROMBERG: Okay. Anyone have any questions?
WEISBURD: Yes. You know, I'm looking through Phase One and there's a lot of
interaction with the staff and, I guess, with Freilich & Leitner, but not
with the City Commmission, on Phase One. Is that done purposely?
FOSMOEN: No, Commmissioner.
WEISBURD: Or is that an error?
FOSMOEN: We presented to you a draft scope of services. You know, there's a
motion before you to accept the team and we'll go back and negotiate a
contract. We have not . . . We've got three very busy groups here. They're
obviously not all sitting around waitingfor work. We haveput y
to together a
task and time frame. We'll build in the Agency and the Commission for review
of the process as we go through it. We wanted to make sure that we've got a
viable team beforeyou will
put together the task . . .
WEISBURD: But, I mean, periodically they will pass some information to us.
FOSMOEN: Oh, absolutely.
SHOCKETT: Mr. Fosmoen, I'd like to make one comment. I've been up here a
little over a year now and not too many things shock me, but I am telling you
I am very impressed with the three firms that have made their presentations
this morning. To me, it's a compliment to the City and the Administration to
have firms of this quality here, telling us that we have something to offer.
I couldn't be more excited about that. The last was the development
agreement with Cheezem, and to have people like Mr. Goodkin and have the
company that I think did one of the finest projects in the world, Harbor
Place in Baltimore, I'm overwhelmed, and I think that this is veryP ositive
and I don't know where you could go out and get more qualified people in the
areas that you're talking about and I'm impressed and I like what I see.
PARKINS: Thank you.
WEISBURD: I'm reading through this book very quickly and I'm enjoying the
quotes in here. Of course, the last one, which makes all the sense in the
world, "When you don't know where you're going, it doesn't matter what road
you take." I like it. I like it.
GRENALD: Mr. Chairman, I might tell you how you can innocently get involved.
I'm looking through this folder from Halcyon, first time I've ever seen it.
And, I must tell you that I've had more exposure to Halcyon indirectly than
you have, because my kid brother, who is one of the finest lighting engineers
in the world and is not looking for any jobs here, is the gentleman on
Pennsylvania Avenue redevelopment, the lighting and shrubbery. He's the
gentleman who did the work on the Urban Development Action Grant in
Washington, D.C. and also in downtown Philadelphia. So, when I see this,
gentlemen, whoever it is, my kid brother has worked on three of these
projects and I didn't know anything about it until I looked in the folder and
I commend you because they're great projects, and also Baltimore, by the way.
My brother did the lighting in the Baltimore Harbor.
FROMBERG: Let me say that this was run through. This whole project was not
only started by Freilich & Leitner and the City Administration, but run
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FROMBERG (continued) : through the E.D.C. , Economic Development Council, and
approved by them and that's how it got to this stage. Any further
discussion? Okay. As I recall . . .
ARKIN: I made a motion.
FROMBERG: . . . Mrs. Baker, a motion was made, and seconded, that we accept
the recommendations of the selection team, listen to the presentations, and
then go forward and instruct the Executive Director to negotiate with these
three teams. Was that what was moved, seconded and voted on?
BAKER: Yes, sir, to accept the teams as comprised of the Freilich & Leitner
and to hear their presentations and accept the teams and contracts, subject
to the Agency's attorney, and to hear their presentations. And that was a
motion that has already been passed five to two.
FROMBERG: Okay, then there's nothing further. Let's reaffirm it, okay?
Let's make sure that that's what we voted on. It was moved by Mr. Arkin and
seconded by Mr. Grenald that we approve the selection of this group as the
first consolidated team and instruct the Executive Director to negotiate a
contract with them.
BAKER: Subject to the Agency Attorney . . .
FROMBERG: Is that the proper terminology for this?
BAKER: . . . the Agency Attorney's approval.
FROMBERG: Okay, in terms of with whom they contract, that'll be decided
later. We're just negotiating the contract. That's what Mr. Weiner is going
to be discussing and reporting back to us.
WEISBURD: Point of information.
FROMBERG: Yes.
WEISBURD: Are we also agreeing subsequent to the Agency Attorney's okay, the
subcontract agreement which indicates the amount of dollars that are
allocated to this?
FROMBERG: No, they're going to negotiate a . . . We're just instructing the
Executive Director to negotiate a contract with them and to report back to
us.
WEISBURD: Okay, so I don't have to . . .
FROMBERG: Is that right?
PARKINS: That's correct. The subcontracting relationship is what the Agency
Attorney and I will review together.
FROMBERG: Now, what we previously approved was the fact we were asking Mr.
Weiner to get together with Mr. Leitner and Mr. Fosmoen and to report back to
us as to who should be the agency or the vehicle that's going to be
negotiating with this team, whether it should be through the Freilich &
Leitner contract or whether it should be direct with the Agency or direct
with the City. Okay?
PARKINS: That's correct.
WEISBURD: What I'm saying is, I'm concerned about the dollars that are
currently in the subcontract agreement.
PARKINS: Dollars are irrelevant at this stage.
WEISBURD: This is going to come back to us?
PARKINS: That's correct.
M.B.REDEVELOPMENT AGENCY - 12/5/84 Page 25
60 000408
WEISBURD: Okay, so we can discuss it then.
PARKINS: The dollars will be part of the function of negotiation.
WEISBURD: Okay.
FROMBERG: Okay, it's been moved and seconded. Mrs. Baker.
BAKER: Mr. Fromberg Yes
Mr. Grenald Yes
Mr. Shockett Yes
Mr. Singer Yes
Mr. Weisburd I'll have to vote for it, because they're the
only ones that came before us so they're the
best.
Mr. Arkin Yes
Mr. Daoud No
Six in favor, one opposed, motion carries.
PARKINS: Thank you, gentlemen.
FROMBERG: Thank you, gentlemen, we look forward to a great product . . . if
you overcome the negotiating contract hurdle. Any Old Business?
PARKINS: Mr. Chairman, you have the bi-weekly financial statement (Item
4.a.) for information only and that's the only item of Old Business we have.
We do have one item . . .
FROMBERG: Would you ask Mr. Leitner to stay here for just a minute, P lease.
Okay, any other New Business?
PARKINS: Under New Business, we have a recommendation of the External Audit
Committee (Item 5.a.) , Mr. Chairman for the audit of the Agency that's
9 Y
required by State law as well as, of course, our own interests. You will
recall that we had five firms who submitted proposals. The interviews were
conducted and three are recommended to you to be rank ordered for contract
negotiations. Those three are, in alphabetical order, Deloitte Haskins &
Sells, Alexander Grant & Company, and Peat, Marwick, Mitchell & Co. You have
also in your agenda the makeup of the committee members. I believe I've been
able to discuss that with each of you.
FROMBERG: Which of the committee members actually attended the meetings?
All of them or . . .
PARKINS: My impression is that all attended.
WEISBURD: No. Lou Freeman did not.
PARKINS: One moment, please. Mr. Freeman, Mr. Sher, and Mr. Jolkoff were in
attendance, the remainder were not able to make it.
FROMBERG: Okay, gentlemen, do I hear a motion with regard to this?
PARKINS: Just to remind you, Mr. Chairman, we do need them rank ordered in
order to negotiate.
FROMBERG: Well, in order to rank order them, don't we have to have a motion?
PARKINS: Yes, sir.
WEISBURD: I'll make a motion.
FROMBERG: Mr. Weisburd, what is the motion?
WEISBURD: Motion is that we, this Commission, rank order the three firms
that were submitted as a recommendation from the Administration and the
External Audit Committee.
FROMBERG: What is the ranking that you want to propose?
M.B.REDEVELOPMENT AGENCY - 12/5/84 Page 26
60 000409
WEISBURD: Three, two, one. I mean, there are three firms.
FROMBERG: No, there were five firms, they selected it down to three.
(W'EISBURD: Right.) Now what's the order that you want to negotiate in?
PARKINS: You're suggesting a ballot process, is that correct, sir?
WEISBURD: I think so.
PARKINS: Oh.
WEISBURD: I mean, otherwise, it may not work.
FROMBERG: Okay, the three firms that were selected were . . .
PARKINS: In alphabetical order: Deloitte Haskins & Sells, Alexander Grant &
Company, and Peat, Marwick, Mitchell & Co.
SINGER: Mr. Chairman, it's always been my understanding that sometimes if we
inquire further of the Administration, that sometimes there was, in fact, one
that was ranked above the other and if, in fact, that was done on a point
system or whatever basis, I'd like to know about it at this time. I'd be
interested in the input of the committee rather than just an alphabetical.
PARKINS: The Committee advises me that the three that they recommended they
felt were equally competent to perform the task. They didp rovide a
numerical difference that, I must candidly tell you, was fairly slight
ht
ranking Alexander Grant, Peat, Marwick, and Deloitte Haskins in that order.
FROMBREG: What was the point system?
PARKINS: Alexander Grant, Peat, Marwick, Deloitee Haskins.
FROMBERG: No, I mean . . . when you say rather slight, did they use a point
basis?
PARKINS: My impression was that it was by ballot and that the difference
between the top two was very close and I don't . . . I'll get you the numbers.
SINGER: From now on, I think that's very relevant. If someome wants to turn
around and ask that question, you should have that information available.
PARKINS: I'm getting that for you.
FROMBERG: Has any . . .
PARKINS: There was only one point difference between number one, number two,
and number three. In other words, number one was one point ahead of the
other two.
FROMBERG: Okay, they were separated by one point. Have all of these three
done previous work for the City?
PARKINS: Let's see, Peat, Marwick, T know, has done work for municipalities.
I don't believe they've done for this city. Alexander Grant has for this
city. Deloitte Haskins has not for the City, they have done other municipal
work.
SINGER:
(unclear, microphone not on)
FROMBERG: That's what I was feeling, that maybe we ought to bring somebody
new in and spread it around. Apparently Alexander Grant has done work for
this city, Deloitte Haskins has not, Peat, Marwick, Mitchell has not.
PARKINS: That's correct. Peat, Marwick, you may recall, did submit and was
ranked number one for the City at one time several years ago. They have done
municipality work and so has Deloitte Haskins, but not this municipality.
M.B.REDEVELOPMENT AGENCY - 12/5/84 Page 27
60 000410
FROMBERG: Okay, you have a ballot. You'll put down three, two, one. Three
votes for your first choice, two votes for your second choice, one vote for
your third choice. The one with the most votes gets it.
HUSS: Mr. Singer Peat, Marwick, 3
Deloitte, 2
Alexander Grant, 1
Mr. Shockett Peat, Marwick, 3
Deloitee, 2
Alexander Grant, 1
Mr. Daoud Alexander Grant, 3
Deloitte, 2
Peat, Marwick, 1
Mr. Fromberg Peat, Marwick, 3
Deloitte, 2
Alexander Grant, 1
Mr. Weisburd Peat, Marwick, 3
Alexander Grant, 2
Deloitte, 1
Mr. Arkin Peat, Marwick, 3
Deloitte, 2
Alexander Grant, 1
Mr. Grenald Deloitte, 3
Alexander Grant, 2
Peat, Marwick, 1
BAKER: Peat, Marwick 17; Deloitte Haskins & Sells 14; Alexander Grant 11.
FROMBERG: Okay, thank you. Let me just announce that the Convention Center
Contract, C-5B, on the Commission Agenda, which was separated, I know there
are people here, I don't see how the Commission can get to that this morning.
Now, we have Commissioner Arkin who will not be here . .. Will you he able to
return later this afternoon? (ARKIN: 7:30 or 8:00) Mr. Grenald has a very
important meeting out of town that is essential that he attend. He will be
leaving at what, at six? He will be leaving here at six. Okay, now,, . . .
DAOUD: Malcolm, I've got to break about 12:20. I've got an appointment at
12 . . .
FROMBERG: St. Francis . . . BAKER: Mr. Chairman.
WEISBURD: No, I have to go somewhere.
BAKER: Mr. Chairman, Mrs. Green indicated that if it couldn't be . . . if
Mr. Cassel couldn't get there, they would be willing for it to go to the next
agenda. Now, I don't know whether that's the Administration's . . .
SEVERAL SPEAK AT ONCE
WEISBURD: You can skip it, I'm going. I've got somewhere to go. I'm not
going out of town . . .
FROMBERG: Well, I think, frankly, that a matter of this significance really
should have the full Commission here. You're talking about an award that's
probably one of the most significant in the City's recent history. You're
going to be awarding the concession to this contract and maybe giving
somebody an opportunity for the eventual contract. If we put this over . . .
Let me say this. As to those who are not going to be here, if you request a
continuance, that this matter be deferred, then I'll do it. If you feel that
you want us to go forward without you, then I won't be presumptive enough to
.. . It would have to be this afternoon and I would say it would probably have
to be late this afternoon. It would have to be somewhere around five o'clock
or so. I really think that . . .
SHOCKETT: Mr. Chairman. (FROMBERG: Yes.) We are on a time schedule with
this and we do have the present concessionaire whose lease is expiring and we
do not want to extend it for a minute and we did have this whole schedule.
M.B.REDEVELOPMENT AGENCY - 12/5/84 Page 28
60 000411
SINGER: What's the schedule this morning? What else are we doing. We've
got Sammy's East Side, what else?
FROMBERG: Well we have to get the appointments to the VCA, too, which are up
today.
DAOUD: Mr. Chairman, why don't we take Sammy's East Side? We have so many
people.
FROMBERG: When is that . . .
SHOCKETT: Well, I can appreciate we have a lot of people from Sammy's East
Side, but this concession contract is of the greatest importance to the
economic vitality of the Convention Center. The people that are here on
Sammy's East haven't had the experiences that we elected officials have, of
our users constantly complaining about the services and the food and the
quality that they're going away from this Convention Center, and I think it's
critical that we consider that as well as Sammy's East.
FROMBERG: Okay, let me . . .
PARKINS: Mr. Chairman, am I correct that we've adjourned the Agency meeting?
4
FROMBERG: No, we have not adjourned the Agency. I'm just trying to . . .
WEISBURD: I move the adjournment.
FROMBERG: No, we still have a couple of matters just to finish it.
WEISBURD: Nothing on the agenda; we're finished.
DAOUD: Mr. Chairman, why don't we defer the Agencyand
go ahead and take
these other two matters if we can, quickly.
FROMBERG: We're almost finished with the Agency. Let's go back to the
Agency. Is there any New Business? (Item 5.)
WEISBURD: We finished. FROMBERG: No, we did not.
PARKINS: The only New Business was the selection of the the External
Auditors, sir, and we've accomplished that. You have a Report of Agency
Attorney, (Item 6.) if any, and then the Financial Statement, (Item 4.a.)
which . . .
FROMBERG: Is there any report . . . under New Business, I just want to say
that the work of Freilich & Leitner has trulybeen
outstanding and they
guided us through a maze of complexities which I don't reallywant to rehash,
,
but we got through the zoning, we got through an interim zoning control
ordinance, and finally a permanent zoning ordinance, the isolation of the
Marina, the Park, and a maze of problems, and we're almost on the road to
coming out from under a tremendous set of adverse circumstances. However,
the new zoning is in place and we do have a new City Attorney who has
expertise in condemnation. Our Planning Department has truly been upgraded,
with individuals who have the background and experience to work in the area
of urban development and I think that we ought to be heading in the direction
of trying to do as much of the future work in-house as we can and I think
that part of your discussions with Mr. Leitner should be kind of trying to
sever the umbilical cord as rapidly as we can, and become self-sufficient
which I'm sure is where they wanted us to head all along. It's kind of like
bringing up a youngster and then finally, if you've done everything right,
there comes a time to say goodbye, you're on your own, and hopefully you've
got enough now -- backbone and courage and ability -- to stand up to the rest
of the world, and so I'd like you to include that in your discussions.
PARKINS: I might comment, if I could, Mr. Chairman, very quickly, that in
each of the three contracts that we've been involved with Freilich, Leitner
and Carlisle, they have come in under the contracted amount in each case.
FROMBERG: Okay. Motion to adjourn?
M.B.REDEVELOPMENT AGENCY - 12/5/84 Page 29
40 00041
•
GRENALD and WEISBURD: I'll move i t.
FROMBERG: Moved by Mr. Grenald, seconded by Mr. Weisburd. All in favor,
signify by saying "aye". (AYE) Any opposed? We stand adjourned as the
Redevelopment Agency.
(Clerk's note: All members were present. Time 11:37 A.M.)
BAKER: Excuse me, Mr. Chairman, Mr. Daoud was pointing out that there was no
motion . . .
DAOUD: Mr. Chairman, we did not vote on these bills, to accept these bills.
BAKER: . . . to approve the bills.
DAOUD: You adjourned the Agency, so . . . I have several comments and rather
than take up the time now, I will reserve my comments on the bills,
themselves, when you bring it up (unclear, overlap)
FROMBERG: Well, why don't you meet with Mr. Leitner? Whose bills are they?
They're Freilich & Leitner's bills, Mr. Chairman, . . .
FROMBERG: Well, why don't you meet with Mr. Leitner during . . .
DAOUD: . . . the ones that are listed for $92,000 +.
WEISBURD: That's a balance.
FROMBERG: That's a summary of a history.
DAOUD: I know it's a summary of the history. What I have, the balance
forwarded to seventy-three and what's standing is $18,000. I wasoing to
mention it.
g
FROMBERG: Well, why don't you discuss it with him rather than discuss it
with all of us, unless . . . and see if you can get your answer.
DAOUD (not using microphone) : I (unclear) discuss it with (unclear) . I just
wanted to point out we didn't vote to accept the bills (unclear) minutes, and
let me discuss it (unclear)
FROMBERG: Are those current bills?
PARKINS: Yes, sir, they're current bills and this is for information
purposes, not authorization to pay. You authorize to pay under a contract,
if you recall.
FROMBERG: Okay, you'll meet with Mr. Leitner and see ifY ou can't be
satisfied with regard to your questions and at the next Agency meeting you
can bring up whatever problems you still have.
(Clerk's note: The Agency business having been completed, discussion
returned to the City Commission agenda.)
(Memo: See City Commission minutes, 12/5/84, Item C-5C, and Action
Summary, Item R-9D, for additional remarks concerning Redevelopment
Agency.)
Cha irm4n
Secretary
M.B.REDEVELOPMENT AGENCY - 12/5/84 Page 30
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