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North Miami CRA amends developer agreement, rescinds $500,000 restaurant allocation after Palm 78 exits
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Summary
The CRA approved a first amendment reducing a $1,250,000 award by $500,000 originally restricted for Palm 78’s build-out; staff said Palm 78 will not be a tenant, the grantee says it will not sign the amendment but will comply with the existing contract, and roughly $560,000 of the restaurant-related allocation had already been paid.
The North Miami CRA on a voice vote approved a first amendment to a previously authorized tax‑increment recapture incentive and infrastructure grant with 11 25 Real Estate Investments LLC that reduces the original $1,250,000 award by $500,000 tied to the build‑out of Palm 78 restaurant.
Staff told the board the original award allocated $750,000 for the project portion and $500,000 was restricted under section 5 of the agreement specifically for the Palm 78 build‑out. Staff said Palm 78 will no longer be a tenant, so the $500,000 allocation should be removed via the amendment. Executive Director/Staff recommended approval of the amendment.
During discussion a board member asked how much had already been paid; staff reported approximately $560,000 of the $750,000 project allocation has been paid and that 20% ($190,000) is being held as retainage. The CRA attorney explained that grant awards are reimbursement-based and that final funds (including retainage) are released only after required documentation and contractor waivers are submitted. The attorney further explained an amendment must be fully executed to take effect; the grantee’s attorney asked to read a letter into the record and later, according to board discussion, communicated that the grantee will comply with the existing contract but would not sign the amended contract.
Board members raised equity and outreach concerns: one member said he had expected some restaurant slots to be Haitian‑owned and described the lack of Haitian representation in the tenant mix as “very disrespectful” to the community. Staff said the CRA will withhold funds tied to the Palm 78 condition if the condition is not met; the amendment was approved by the board.
The board directed staff and the CRA attorney to provide the letter from the grantee’s counsel to all board members and to continue contract discussions; staff will report back on the executed amendment and any remaining disbursement obligations.
