|
Boondoggle of Billions
Opposition mounts against government’s ‘illegal’
use of community redevelopment money
By Cynthia Archbold
.JPG) |
|
The Carnival
Center for the Performing Arts. |
Miami Mayor Manny Diaz had convinced
almost everyone that his $2.9 billion downtown redevelopment
plan was a good idea. Now a
Miami
auto magnate, two major cruise lines and several elected
officials are battling the mayor’s “grand vision.”
In about a
week, Diaz persuaded both the Miami City Commission and the
Miami-Dade County Commission that
Miami
needed a new Marlins baseball stadium, a soccer stadium, a
6,000-car parking garage, a truck tunnel to the
Port of Miami
and landscaping for Museum Park to attract thousands of jobs and
“revitalize the urban core.” He convinced them that the city
could pay off the county’s construction debt for the
Adrienne
Arsht
Center
for the Performing Arts. He promised that the city would expand
its Community Redevelopment Area to pay for it.
Both boards
agreed to a “global agreement” in December — by a 9-4 vote of
the County Commission and a 4-1 vote of the City Commission —
and drafted a Memorandum of Understanding Jan. 9 to move forward
with the plan.
Then came
Norman Braman, a 75-year-old auto dealer, art collector and
philanthropist who’s convinced that the proposal is a ploy to
“stiff the poor” and hoodwink taxpayers into shelling out for
more poorly planned and unnecessary public works projects.
Braman launched a radio attack against the plan in January,
buying 175 spots on English- and Spanish-language radio stations
and calling the agreement a “downtown double cross.” Then he
filed the first of many promised lawsuits in Miami-Dade Circuit
Court last week to block the local governments from using tax
dollars meant for building affordable housing and encouraging
economic growth in Miami’s blighted redevelopment districts on
the mega-project.
“It’s wrong to
do that without going to the taxpayers for approval,” Braman
said in a phone interview, adding that the city-county financial
arrangements cited in his initial lawsuit “are direct violations
of the law.” He plans to file another lawsuit “soon” to stop the
expansion of the CRA to pay for projects that have nothing to do
with creating low-income housing in the neighborhoods for which
they were originally established.
Now, some
elected officials are questioning the plan, too.
District 10
County Commissioner Javier Souto, one of four county
commissioners who voted against the global agreement, supports
Braman’s sentiments and also believes that the massive public
works project should be decided by voter referendum.
“It’s just not
right,” he said during a telephone interview. “It will be a big
flop. So you know who’s going to foot the bill? You and I,” he
said.
Souto wants
hard proof that there is “slum and blight,” as required by state
law, in the proposed CRA expansion areas, which include
increasingly developed and valuable land surrounding the
Performing Arts Center, Bicentennial Park and on Watson Island.
“I would like
to receive all the evidence and basis for declaring these areas
that you added to these two Community Redevelopment Areas as
slum or blighted areas,” Souto wrote in a letter to County
Manager George Burgess.
“Absent clear
and convincing evidence that supports the expansion of the CRA
boundaries for the direct benefit of the poor communities in
Overtown and the Omni area, this is just another scandal similar
to the Empowerment Zone, whereby Miami-Dade County becomes an
active participant and accomplice in defrauding the
African-American community out of dollars meant to tackle
poverty and create opportunities for the African-American
community,” he wrote.
As chair of the
Recreation and Cultural Affairs Committee, which is charged with
reviewing the part of the proposal concerned with $550 million
Museum Park, Souto can block the plan from moving forward to a
County
Commission
vote. And he vows to do exactly that if County Manager Burgess
doesn’t answer his many questions.
“I asked the
county manager, why are you trying to rush this through?” Souto
said. “They bring the item in front of us without telling
everybody about it.” Most of the negotiating, he said, was done
in backdoor deals without public input.
“They want to
hide it from the community, and there are billions and billions
of dollars involved,” Souto said.
The city of
Miami, Miami-Dade County, the Miami Sports and Exhibition
Authority, the
Miami
Science
Museum
and the
Miami Art Museum signed a Memorandum of Understanding Jan. 9 to
transform
Bicentennial
Park
into
Museum Park. But the conditions in that agreement have Souto and
others riled up.
On Jan. 18,
leaders of the
Miami
Science
Museum
and the
Miami Art Museum asked the Recreation and Cultural Affairs
Committee for $3.3 million and $235,000 respectively, the first
installment of the general obligation bond funds that voters
approved in a 2004 referendum. But Souto found so many legal
problems with the MOU that he instead canceled the meeting and
put the issue “on hold.” In fact, Souto vowed not to release the
museum construction funds until the county manager answers his
questions.
“It’s
convoluted,” he said. “The lawyers complicate things and try to
hide things. The people don’t like that. It might be legal, but
the people don’t want that, and it’s the people who pay the
bills.”
In a memo to
County Manager Burgess, Souto attacked “anomalies” in the terms
of the MOU agreement. The document, not yet reviewed by the city
and county commissions, sets the legal framework of ownership
and fiscal responsibility for developing Museum Park on public
waterfront park land in Bicentennial Park.
Souto argued
that it is illegal to build the museums on waterfront park land
protected from development by the city’s Joe Carollo amendment
(named after Miami's former mayor), which requires voters to
approve any such proposals by referendum.
“This
convoluted deal seeks to avoid a referendum by the residents of
the city of Miami,” Souto wrote in the letter. Instead of
leasing the land to the museums directly, he wrote, the MOU
calls for the city to lease land in Bicentennial Park to another
entity — the Miami Sports and Exhibition Authority, which, in
turn, would sublease the land to the museums for 99 years.
Another problem
is that the museums are asking for a waiver of the county
general obligation bond rules requiring that the museums have
“control of the land” to receive taxpayer money, which they
would not under the terms of the proposed deal.
Ownership of
the buildings is another issue.
“Another
anomaly with this deal is that the museums and their boards will
be given ownership of the museum buildings, although they are
constructed on public lands using public money,” Souto wrote.
All other museums that were constructed with county funds,
including Vizcaya, are owned by the public.
Burgess plans
to respond to these concerns at the Feb. 11 Recreation and
Cultural Affairs Committee meeting, but Souto said he would not
allow anyone to rush him into making a decision.
“We need time
to review the report and analyze it before we make any
decisions,” Souto said on the phone.
Mayor Diaz and
County Manager Burgess did not return repeated calls and e-mails
for comment.
However, Diaz,
the mega-deal’s chief architect, and Braman squared off on the
Channel 4 Sunday morning program hosted by Eliott Rodriguez.
“We want to
build the kind of a city we want,” Diaz said. “We’re going
through a time of economic downturn. The construction business
has slowed down a lot, a lot of people are looking for jobs and
this is a way to hopefully keep those people gainfully
employed.”
He insisted
that the deal “is a valid use of community redevelopment money,”
even though those funds are designated under state law for
affordable housing.
“Just because
there have been some failures in the past doesn’t mean this
isn’t the right plan and this is the right thing to do for
downtown Miami and really for the region,” Diaz said, referring
to the over-budget $141 million performing arts center.
Braman said he
was “disappointed” that Diaz wouldn’t debate the issue with him
side by side.
“The plan Diaz
has presented was concocted in secret,” said Braman, owner of
Braman Motors and former owner of the Philadelphia Eagles. “It
was never brought to the public at all, or the city at all.
“This plan, I
believe, is illegal,” he added. “This plan is morally wrong, and
I believe this plan makes no sense from a business standpoint at
all. It could bankrupt this entire community.”
Now Carnival
and Royal Caribbean cruise lines are joining forces to fight the
$1 billion tunnel — the most expensive item in the mega-deal.
“Does anyone have confidence that we can accomplish this
incredible engineering feat despite our history with major
construction?” Terry Dale, president of Cruise Lines
International Association, wrote in a letter to the editor
published in the Miami Herald Monday. “It strains
credibility to suggest that there will be no safety or cost
problems.”
Dale said the
tunnel could make traffic even worse, by backing up more trucks
waiting to get through security barriers. “We support actions to
deal with excessive truck traffic,” he wrote. “The traffic
situation can be resolved through alternative routing at a cost
lower than that of building a tunnel.”
Still, museum
leaders remain unfazed by both the lawsuit and Souto’s
objections, even though they are depending on the county and the
city for their first installment of cash from general obligation
bond funds. In total, the Science Museum will receive $175
million, while MAM will receive $100 million from taxpayers.
“It’s just a
temporary hiccup,” said Miami Science Museum Executive Director
Gillian Thomas. “[Souto’s] entitled to his opinion.”
Could he stall
the project indefinitely? “I doubt that very much — I think
that’s very much not the case,” she said. Thomas plans to
complete museum construction by 2011-2012.
Miami Art
Museum Director Terence Riley said that no matter what happens,
he plans to break ground by December and open by 2011 or 2012.
“We are not going to wait,” he said, since the art museum had
long foreseen and planned for obstacles and delays in getting
public funding.
“We are going
to keep our project going based on private funding, and we are
going to let the city and the county work all these things out.
We know it is going to take a long time — we know it’s going to
take longer than we thought. And so we have arranged our
financing so we are less dependent on the public funds.” The
museum’s board of directors has raised $35 million in pledges so
far, but, Riley said, “we absolutely need the county to come
through with $100 million” to complete the construction.
“We have been
working on this for 10 years and we have done very well in terms
of raising money,” MAM board Chair Aaron Podhurst said in a
telephone interview from a ski vacation in
Aspen.
He described the “global agreement” as the “global fight,”
adding that politics should not be allowed to detain
Museum Park.
“CRA money is
irrelevant to what we’re doing,” he said. “We will deliver the
museum on time and on budget.”
Comments? E-mail
letters@miamisunpost.com |