Miami Today: Week of Thursday, October 8, 2015 by Miami Today

WEEK OF THURSDAY, OCTOBER 8, 2015

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Ruble’s decline gives buyers of real estate cold feet, pg. 15 EDGEWATER DIGS: A new residential tower planned for Edgewater called The Vine won an affirmative vote from the city’s Urban Development Review Board. The site is at 420 NE 35th St. The planned 32-story tower is to have about 124 units, with a typical floor housing five units, and penthouses on the top two floors. The project includes a five-story garage. The amenity floor is to include a large swimming pool and extensive garden area, gym, day care center and clubhouse. The design board recommended approval while suggesting designers work with city staff to reconsider the north façade and the size of the balconies.

Few retailers meet deadline for chip credit cards, pg. 17

THE ACHIEVER

BY CARLA VIANNA

ONE DOWN, 52 TO GO: Only one of the 53 parcels that were declared surplus by the Miami-Dade County Commission in May has been put up for auction. The minimum bid amount for the property, a 3,500-squarefoot lot west of 3763 Thomas Ave., was $32,813 and it sold for $62,300 to CharityHousing. There were 110 bidders. The county is in the process of closing on the sale of this property. According to Internal Services Department spokesperson Salomee Peters, the county will be auctioning off the rest of the properties in coming months. CHAMBER WELCOMES CHINA CONSUL: Consul General of China Li Qiangmin, who is based in Houston, traveled to Miami to meet with county officials at the Greater Miami Chamber of Commerce. “Starting the morning with a discussion on strengthening #Miami #China business relations with Honorable Li Qiangmin,” the chamber tweeted Monday. In attendance were Miami-Dade Mayor Carlos Gimenez; director and CEO of the county’s aviation department Emilio González; and PortMiami Director Juan Kuryla; said Hernando Gomez, head of the chamber’s Americas Linkage committee, who was also there. “He was trying to get more involved with what’s happening here in Miami,” Mr. Gomez said. “It’s a good start.” LIVING WAGE OK’D: Miami-Dade’s living wage ordinance is legal and final. At the county commission meeting Tuesday, Barbara Jordan called for a shout-out to assistant county attorneys David Murray and Eric Rodriguez for their work defending the county in the 11th US Circuit Court of Appeals. The court sided with Miami-Dade in a lawsuit filed by Amerijet International. The cargo airline company challenged the living wage ordinance, approved in 1999, which requires government contractors and some businesses that use Miami International Airport to pay workers more than minimum wage, claiming the requirements should not apply to them. A three-judge panel of the appeals court upheld a district judge’s ruling in favor of the county.

Özgür Altan

Photo by Marlene Quaroni

Turkish consul general creates links for trade, culture The profile is on Page 4

37,700 drivers get 30% expressway toll rebate BY CATHERINE LACKNER

The Miami-Dade Expressway Authority will return $2.2 million, nearly one-third of tolls paid from Jan. 1 to June 30, to drivers who belong to its cash-back program, it announced last week. The first-ever rebate checks, which could reach $75, will be mailed in December. “With this program, the MDX board provides an opportunity for our users to directly benefit from the efficiencies of the authority,” said Javier Rodriguez, authority executive director. “Ultimately, the goal is to further make all users of the MDX system shareholders, because they are the ones that fund the operations and improvements. Our focus as a government agency is to be efficient, effective and accountable to our customers.” “We are thrilled that our cash-rebate program has connected with the community,” Board Chair Louis Martinez said in a statement. “The board of directors will return 30% of the cost of tolls paid on MDX expressways this year to members of the program. Of the more than 82,000 SunPass

AGENDA

Busier port unloads its widest ship

transponders registered in the program, 46% qualify for a rebate, which results in lower tolls rates for those members.” To be eligible for what the authority says is the first rebate program of its kind in the US, drivers must be SunPass customers, drive a two-axle vehicle, pay a minimum of $100 in tolls on authority roadways annually and have their transponders registered. The program had closed to new applicants in April. In June, the authority reopened it until Aug. 31. During that time, about 50,000 added drivers registered. The authority had come under criticism because last year it installed toll-taking lasers on gantries along the entire length of its five expressways to capture more tolls. Before that, drivers could enter and exit at strategic points to avoid tolls and only 25% of drivers actually paid them, Mr. Rodriguez has said. The toll-rebate probate program wasn’t supposed to launch until fiscal 2016, but revenues began climbing after the gantry installation was complete, said Mario Diaz, authority spokesperson. Authority directors decided to roll it out in 2015 and make the rebate retroactive to

The widest vessel ever worked at PortMiami floated through its deepened channel last week. Carrying 9,400 containers, Panamaregistered MSC Giselle sailed through the 50- to 52-foot channel, which now can welcome 14,000-container ships, far above the 5,700 limit before. “It’s a sign of the future,” said Port Director Juan Kuryla, alluding to a recently completed $220 million dredging project. The port is now post-Panama Canal expansion ready. Mr. Kuryla said three of the world’s four major shipping alliances – 2M, Ocean 3 and G6 – are already here. The fourth is CKYHE (Cosco, K Line, Yang Ming, Hanjin Shipping and Evergreen Line). The port is “working very diligently to bring some of those services to Miami,” Mr. Kuryla said. Members of that alliance have already inquired about PortMiami’s draft and crane capabilities, he said. The port’s container traffic grew 14% to 15% in the year ended Sept. 30. China holds steady as the port’s No. 1 trading partner, while Guatemala, Honduras, Colombia and Peru were close behind. Another 15% to 16% of trade is with Northern Europe. The port has its eyes set on Mexico and Africa as future partners, Mr., Kuryla said. “We feel that Mexico will become an important trading partner in the maritime sense,” he said. “[Africa is] a huge emerging market that we are going to look at tapping into.” A few port officials are traveling to China next week with the Florida East Coast Railway to promote the port and its on-dock rail facility at the TransPacific Maritime Asia Conference. The port has invested more than $1 billion in infrastructure to accommodate the industry’s largest vessels, which will be turning their bows toward the Panama Canal once expansion ends next April.

January. “They said, ‘We’ve become more efficient, and we’re making more money, so let’s give some back.’ If everything stays the same, the rebate could be $4.4 million next year, because it will be for the full 12 months,” he said. At the end of each fiscal year, the authority’s Budget and Finance Committee evaluates how well the expressway system has done, after it has satisfied its obligations, including operating expenses and debt repayments. It then decides the percentage of the dividend. “By participating in this program and using MDX expressways, members are going to see lower overall toll rates,” last week’s statement by Mr. Martinez continued. “We wanted to ensure that those who have invested their toll dollars to pay for the cost of improvements on our expressways – our frequent users – are the direct beneficiaries of this program. On average, more than 80% of the qualified members in the program will receive cash back.” Expecting boom, officials check Details: (305) 637-3277.

out Panama Canal’s status, pg. 10

AIRPORT ORDERED TO SET UP ‘PLASTIC WRAP POLICE’ ...

CITY MAY EASE RULES ON PRIVATE PROPERTY PARKING ...

TRANSIT TRUST DUMPS COOKIE-CUTTER ROUTE PLANS ...

WHEN CHURCH BECOMES A GROCERY-CONDO COMPLEX ...

VIEWPOINT: NOW 60-STORY TOWERS BECOME ROUTINE ...

POLICE TARGET WYNWOOD FOOD TRUCK TRAFFIC JAM ...

COULD ADDED INCENTIVES LURE POVERTY-AREA JOBS? ...

BULGARIAN WATER EXPERTS VISIT TO SEEK TRADE TIES ... 14

MIAMI TODAY

VIEWPOINT

WEEK OF THURSDAY, OCTOBER 8, 2015

MIAMITODAY Miami Today is an independent voice of the community, published weekly at 2000 S. Dixie Highway, Suite 100, Miami, Florida 33133. Telephone (305) 358-2663

Miami’s new skyline due to tower over the great unknown In 32-plus years of detailing development in Miami we’ve had far too much to report on. For d e c a d e s we’ve said that our state bird ought to be the construction crane. But this is ridiculous. Michael Lewis In the past month we covered nine major high-rise projects either under way or announced – and that doesn’t count dozens of tall or bulky residential towers rising or planned around town. Nor does it include low-rises like the Miami Wilds amusement area near the zoo and the Miami Ocean Studios film complex. Even the title “major project” has escalated. Twenty or 30 stories doesn’t make the big-time cut today. What we used to call office towers on Brickell now are being sold as teardowns for really big buildings. Take 444 Brickell, where this paper first had its home more than three decades ago. It’s a teardown, along with a far smaller building, to be home for One Brickell’s three towers, the tallest about 80 stories. A more recent site where Miami Today spent 20 years at 710 Brickell is already razed, opening land for a 1,000-

foot-plus tower of about 83 stories. These days nobody bats an eye at announcements of 800-plus-foot or 80plus-story towers. That’s the new normal – though the tallest of our county’s 300-plus high-rises today is still the 13year-old, 64-story Four Seasons, at 789 feet Florida’s highest. So either we’re going to suddenly get a whole outcropping of buildings as tall as anything we have today or some of what’s being announced in bunches is going to shrink or sit on the sidelines awhile. Probably some of each. One of the nine mega-projects we covered last month, for example, is Flagstone’s Island Gardens, a mixeduse Watson Island project centered on a mega-yacht marina on city land. The lease was signed more than 14 years ago and work is still scratching the surface. The other eight, not all towering but all major projects, include All Aboard Florida’s multi-tower rail complex on downtown’s west side; Brickell City Centre, with occupancy in parts of the first phase due this year; 25-block Miami Worldcenter by a host of separate developers just north of downtown; a so-farunapproved hotel, convention site and more on PortMiami land; Related’s One Miami at 444 Brickell; Related’s Auberge Residences & Spa, towers of 59, 59 and 48 stories across from the Arsht Center; the Skyrise recreation tower at Bayside; residential project Miami River, four tow-

ers rising 58 to 60 stories each; and two 60-story residential towers rising beside three already on the river. These projects will add thousands of residences, and we’re not even listing 30- to 40-story residential sites planned everywhere. They used to seem major. Now there are just too many to even watch carefully. Nobody questions the viability of most of these projects. But as a group, is there enough need? The last near collapse left 20,000 unsold condos, though all sold in a few years. Why would another downturn differ? New circumstances today include altered economic positions in lands like China and Brazil, from which buyers were relied on in planning this new flood of construction. Other new variables might be meager local job growth, lack of investment in transportation and the now-strong US dollar. But each announced major project is unique, relying on different needs and opportunities. Some are clearly solid, others iffier. Timing will be vital. A long-time reader brought that point home. He just dropped off a scrapbook of Miami newspaper clippings from the late 1950s of big announced developments. For many, the depth of the newspaper page trumpeting the plan was as tall as the tower ever got. There was the Miami city hall planned across the street from the Dade County

Courthouse. The raft of buildings proposed in Bal Harbour that never rose. The tallest apartment tower in Miami Beach and more that were never built. But the scrapbook also shows an aerial photo of Brickell Avenue with a single low-rise office building and a thought that the business world downtown could actually cross the river into Brickell. In other words, vast overstatement mixed with vast understatement. The 1950s unbuilt developments don’t necessarily translate to today. Everything changes. Nor does the vast open area of Miami Worldcenter necessarily translate into a new Brickell. In all cases, time will tell. But one thing is certain: developers are eternal optimists. They see opportunity again and again. The question is, how much of that is real right now? We asked that a decade ago and, as more and more really, really big projects are planned, we have to ask it again. Unfortunately, nobody has the answer until long after the fact. Look at those plans 60 years ago that imploded. On the other hand, compare the Brickell skyline then with what actually happened. Who would have predicted that magnitude of growth? Despite all the heady announcements, tomorrow’s growth is still the great unknown.

Latin America’s outlook rests on Asia, technology, security You don’t need to be an IMF economist to conclude that Florida’s top trading partner, Brazil, is going through a very difficult time. Just visit malls at Aventura, Dadeland and Sawgrass Mills and you will note a lot less Portuguese Jerry Haar being spoken. Fewer visitors and investors from Brazil and less US exports destined for that nation are bad news for South Florida. Mired in debt, inflation, corruption, a continuing decline in both its currency and demand for its commodity exports from a slowing Chinese economy, Brazil is on the ropes. As for the rest of Latin America, their economic performance has been underwhelming. Economic growth was a mere 1% in 2014 and will drop to 0.9% this year, with 2% the estimated target for 2016. The Miami Customs District, accustomed to yearly upticks in trade, has witnessed declines for the last 30 months, and 2016 will probably see a slight drop as well. This is especially disturbing since the overwhelming majority of our trade is north-south – no European countries are among our top trading partners. Not everything is gloom-and-doom, of course. There are bright spots in the region as well, such as Mexico, Colombia and Panama. Additionally, for doing business in and with the region, conditions at the sector, industry and firm level are far more important than the macro economy. Returning to the Brazil example, world-

The Writer Jerry Haar is a professor of business at Florida International University and a Research Affiliate of Harvard University’s David Rockefeller Center for Latin American Studies. class multinationals like Embraer, Odebrecht, Weg, Marco Polo and Natura will successfully overcome even the most challenging conditions. As 2015 comes to a close, it behooves us to keep an eye on a number of important issues that impact or will impact the Latin American region: 1. Competitiveness. The region continues to be saddled by red tape, poor infrastructure, poor education, and a scarcity of affordable credit and efficient and transparent legal and administrative systems. These conditions severely hamper both domestic and export-oriented businesses and shave one percentage point or more off growth rates. 2. Technology. The increasing accessibility and affordability of technology is improving the industrial competitiveness of selected industries and firms, helping them cope with, if not overcome, the barriers cited above. This trend is also benefitting small businesses, creating a cadre of tech savvy young people, fueling hundreds of start-ups. 3. Asia (mainly China). China’s trade with Latin America ballooned 20 fold from $12 billion in 2000 to $264 billion in 2014, mainly via the region’s commodity exports. The resulting currency appreciation boosted consumer spending and added to government coffers but severely hurt the region’s manu-

facturing sector. China’s two-year economic contraction will continue to damper Latin America’s commodity exports, but Chinese infrastructure projects in the region will continue, and the trade and investment relationship will remain strong. 4. The middle class. The engine of consumer-driven growth, the burgeoning members of the middle class are bold and aggressive in using their credit cards for purchasing goods and services, be they retail, services, travel or aspirational purchases – often beyond their means to service consumer debt. 5. Governance. Political tensions and in some cases strife characterize Brazil, Argentina and Venezuela. In addition to issues of stability, the middle class is increasingly frustrated with poor public services, bad governance, and corruption. Last year’s demonstrations in big cities in Brazil are a case in point. The middle class, with their economic needs having been met, are demanding more – namely, good government. 6. Security. Crime continues to plague the region, mainly in Central America and in the big cities in Mexico and South America. Much of this is drug-related and involves inter-gang warfare. Police forces are poorly trained and poorly

equipped and fall prey to corruption. 7. Investment in the U.S. Whether seeking opportunity or security (economic or personal), inbound investment is increasing. South Florida continues to be the destination of choice, be it a second or third home or investment in commercial real estate and small businesses and start-ups. This will continue unabated, with Brazil, Argentina, Colombia, Venezuela and Mexico being the prime investors. As with most emerging markets, the inverse of Sir Isaac Newton’s Third Law of Motion holds true: whatever goes down must come back up. Geography, culture, economics and destiny, in fact, join South Florida at the hip to our neighbors to the South. Keeping an eye on the key trends indicated above will allow us to prepare for the tough times and benefit from the good times.

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Editor and Publisher / Michael Lewis Vice President / Carmen Betancourt-Lewis

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TODAY’S NEWS

WEEK OF THURSDAY, OCTOBER 8, 2015

MIAMI TODAY

Church may become grocery, with 352 residential units too BY JOHN CHARLES ROBBINS

An historic Miami church built in 1926 in neoclassical design could end up with a fresh produce aisle and a deli counter under a plan to redevelop the site with a companion residential tower. Fifteen 1836 Biscayne LLC, owner of the property, gained approval of city review boards in September to proceed with its plan to reuse the First Church of Christ Scientist for commercial uses, topped by a large garage next door to a brand new 38story residential tower. The city’s Historic & Environmental Preservation Board in September granted a request from the developer for local historic designation of the church as an individual historic site within the city as part of a new development project at 1836 Biscayne Blvd. And at its September meeting, the city’s Urban Development Review Board recommended approval of the redevelopment plan. The church is on the southwest corner of Biscayne Boulevard and Northeast 19th Street. Plan calls for maintaining the church structure and topping it with a multi-layered garage large enough to hold about 637 cars. That new structure would be attached to a 38-story tower with 352 “residential or condo” units, according to Haven Peaden, an architect with ADD Inc. – Stantec. The project would have more than 20,000 square feet of ground level retail space. The project went before the preservation board this spring and the board directed the applicant to find ways to reduce the “disproportional massing of the proposed parking garage” on the existing National Register-listed historic structure. The First Church of Christ Scientist was designed in 1925 by architect August Geiger. C.A. Taylor was the builder. A staff review of the site stated, “The structure is an outstanding example of Neoclassical Revival architecture style; its structural system is comprised of terracotta tile and poured concrete, the exterior walls are clad in Indiana

Photo by Maxine Usdan

Two City of Miami boards have approved using the former First Church Christ Scientist at 1836 Biscayne Boulevard for commercial uses topped by a large garage with a 38-story residential tower beside it.

limestone, with the foundation and entrance steps constructed of Mt. Airy granite.” The church was listed in the National Register of Historic Places in 1988. The staff review also stated: “The First Church of Christ, Scientist has significance as it relates to the historic heritage of Miami and possesses integrity of setting, materials, feeling, design, and location.” It said the property is eligible for designation as a historic site under criteria set in the city code. Attorney Ryan Bailine, representing Fifteen 1836 Biscayne LLC before the design board Sept. 16, called the project a “historic intervention with a residential component.” Mr. Bailine said the plans presented to the design board represented 15 months of work by the architects. Design board member Jesus A. Permuy congratulated the developer and designers for saving “such an amazing building.” He called the church grand and classic. He was, however, critical of the large parking structure above the church, saying he didn’t see much of a connection with the rest of the project. Mr. Permuy described it as

Ross Report on Real Estate by Audrey Ross Design Trend: Fabric Ceilings Give A Room A Facelift The latest in design, incorporating textiles onto your ceilings. It can give a space a facelift that transforms any room overnight! Fabric ceilings were first applied by the Ancient Romans and used throughout Europe during the 17th and 18th centuries. Common in Armenia, textile enhanced ceilings have recently been rediscovered by interior designers in the US. Printed fabric is akin to wallpaper turning a dreary or cold space into a warm and inviting room. It is also a great way to work with color.

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finish a room without overpowering it. It’s an easy way to quickly transform any space. Fabric ceilings are gaining popularity as a way to create a wallpaper or “fresco” effect, updated for the 21st Century and functionality.

“parking in the air,” and while he said he understands the need for parking, “it could have been much better.” Ms. Peaden said the look of the parking structure was “unadorned by design,” so as not to draw attention away from the historic church. When design board members

began to suggest changes to the plan, Mr. Bailine said they were somewhat limited in what could be done because the specific site plan was approved at a public hearing before the preservation board. Design board member Anthony E. Tzamtzis also expressed disfavor for the proposed el-

evated garage, referring to it as “that box of parking.” The parking structure is 11 levels – 104 feet in height. “It’s too plain,” Mr. Tzamtzis said. “The [preservation] board intentionally asked us to make it plain,” Ms. Peaden responded. Design board member Dean B. Lewis, serving as chair of the September meeting, said the design board has to “respect the will” of the preservation board. The preservation board also approved a resolution for a special certificate of appropriateness for restoration, new construction and several waivers. This will allow for restoration and new construction. The waivers include a 20% reduction in the ground level setback along Northeast Second Court, from 10 feet to 8; a 20% reduction in the setback above the eighth floor along Northeast Second Court, from 20 feet to 16; to allow an increase in the podium height from 123 feet to 168 feet, 2 inches; to allow trucks serving the development to back into the loading area from Northeast Second Court, at 256 NE 19th St. and 1836 Biscayne Blvd. Asked about the interior of the historic church, Ms. Peaden said it could be a grocer or “another retailer.”

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TODAY’S NEWS

MIAMI TODAY

WEEK OF THURSDAY, OCTOBER 8, 2015

Bulgarian water, wastewater experts seek Miami trade ties B Y C ARLA V IANNA

A Bulgarian delegation made a pit stop in Miami before returning home to explore the county’s water and wastewater treatment system as the nation seeks to upgrade its own. The delegates, made up of more than ten water and wastewater experts belonging to the public or private sector, were hosted by the Greater Miami Chamber of Commerce, where they met with potential business partners. “As a direct result of the business meetings, a Florida-based company with interest in Eastern Europe will be visiting Bulgaria later this month to meet with local water experts and evaluate

the potential to appoint a representative in the market,” Milko Minev, an outreach coordinator with the US Commercial Service in Sofia, Bulgaria, told Miami Today. That Florida business is Eco Global Sales, headquartered in Plantation, said Daniel Jacobson, a partner with Akerman and chair of the chamber’s International Business Group, which hosted the delegates. The company has developed a patent-pending product called eco-tabs, which are tablets engineered to oxygenate wastewater, among other things, according to the company’s website. Eco Global Sales could not be immediately reached.

Mr. Minev told business professionals last week that Bulgaria, like Miami, is a gateway to its surrounding regions. He described it as the backdoor or entrance to the Middle East, Turkey and Russia. Ivanka Videnova, director of water supply and sewage at Bulgaria’s public works department, said her department is looking for potential bidders and new technology to upgrade the country’s aging pipe systems. “One of the challenges we have is related to losses we have in the network because of the age of the pipes,” she said. She explained $2.3 billion of European Union funding is available over

the next five years for such projects. “Any company is eligible to apply for this money,” Ms. Videnova said. Meanwhile, the county has its own multi-year plan to upgrade thousands of miles of its pipes, and water and wastewater treatment plants. The delegates also toured MiamiDade County’s John E. Preston Water Treatment Plant, where they met with representatives from the county’s Economic Development and International Trade office, Mr. Minev said. “The delegates were very interested in the facility and the different technology used,” he said, “and had questions regarding the treatment of the water and maintenance.”

River interests vet city swap plan for riverfront headquarters BY JOHN CHARLES ROBBINS

The City of Miami’s administrative office building sits on a choice piece of property on the Miami River, right next door to an open green space with three boat slips. City officials are considering a sale or swap of the sites as they look for a new home for the growing city government. The Miami River Commission reviewed the plans Monday and on an 8-2 vote strongly urged the city to keep the small triangular parcel and develop it as a public open park space, recognizing the city’s need for more park land. Those voting no were Manny Prieguez and Bruno Barreiro. Mr. Prieguez said the matter is in such an early stage it isn’t even embryonic yet, and suggested taking a “wait and see” stance. Mr. Barreiro, a Miami-Dade County commissioner, had wanted the motion to recommend that the city require any new developer to keep the same amount of open space – about 49,438 square feet – somewhere on the two parcels. Last month, City Manager Daniel Alfonso met with the river commission’s Urban Infill and Greenways Subcommittees

Photo by Maxine Usdan

Miami officials are looking at swapping the city’s Riverside Center and lands for a bigger headquarters.

and discussed the possible future for city-owned land at 444 SW Second Ave., home to the administrative building, and the adjacent 460 SW Second Ave. Mr. Alfonso said land along the river has become very valuable, therefore the city’s Miami Riverside Center office building is not the “highest and best use” of the site, which with the public benefit program could hold

up to an 80-story building. He said the city staff is working on a request for proposals to “swap” the existing office building for a new building designed and constructed to meet the needs of the City of Miami administration. Mr. Alfonso stated the new building must be south of Northwest 20th Street and east of LeJeune Road. He said if there is a difference in value after the building swap, the difference would be paid to the City of Miami. The deal, he said, would have to be approved at referendum by the voters. The river committee members acknowledged the City of Miami and its employees as a wonderful part of the Miami River District but understood if the city sees the financial opportunity in a sale of what has become a very valuable riverfront office building. The office building features ample parking in the site’s 4story parking garage and adjacent public parking lots beneath I-95. The adjacent site is a publicly accessible 1.3-acre riverfront public open green space, featuring the public riverwalk and three boat slips. Mr. Alfonso noted the site is not zoned for Parks and Recreation. River Commission Director Brett Bibeau agreed, but noted it

serves like a public park featuring the public riverwalk, and the slips are important to the city. Robert Weinreb of the city manager’s office attended Monday’s meeting of the full river commission and spoke about the matter. “The building is too small for a growing city and we do need more space,” he said of the office building at 444 SW Second Ave., north of the river. Mr. Weinreb said although it’s still in the very early stages, the city manager did come up with the idea of selling the land and using the proceeds to buy a new site where a new administrative office building of “proper size” could be built, or some sort of swap. He noted the city-owned land on the river is very valuable. According to the Miami-Dade County Tax Appraiser’s Office, 444 SW Second Ave. – the building and land – has a market value of more than $22.2 million. The parcel at 460 SW Second Ave. has a market value of more than $9.8 million. Jay Carmichael, chairing the river commission meeting Monday, detailed the review of the matter by Urban Infill Chairman Jim Murley. Mr. Carmichael said Mr. Murley suggested the river commission recommend that the city maintain ownership of 460 SW Second Ave. or provide

covenants and guarantees that any future owner will maintain its current use, which serves as an undeveloped public park with a public riverwalk and three valuable waterfront slips that could generate re-occurring revenue to fund maintenance of the park and riverwalk. Mr. Murley also suggested the river commission recommend that the city increase its riverfront public park space and green space and host a public planning process on how the reserved park space might be better integrated into the public Miami River Greenway, Mr. Carmichael said. Mr. Carmichael pointed out the level of growth and development in the city and its growing population, yet said Miami has the least park space among comparable US cities. The river commission ultimately followed the lead of Mr. Murley, sending the message to the city commission that the 460 SW Second Ave. parcel ought to remain open to the public. “I support that. It’s in the best interest of the public,” said commission member Sandy Batchelor. Commission member Ernie Martin agreed. He said the idea that the city might profit from selling the upland parcel at 444 SW Second Ave. making way for a new tower “is of little interest to me – we’ve got enough towers.” However, it’s vital that they fight to maintain access to the waterfront and the public open space, he said. Mr. Prieguez countered that it was far too early to vote on the matter. “A referendum would have to be held at the end of the day,” he said. A sale or lease of the cityowned property may require voter approval. Mr. Prieguez suggested there may be an opportunity for a public-private partnership involving both parcels. “I urge a wait-and-see attitude,” he said. River commissioner Sallye Jude, who’s consistently fought for public parks and open space, said the land at 460 SW Second Ave. needs to be kept open for the public. When it comes to parks, she said, “We are underserved.”

WEEK OF THURSDAY, OCTOBER 8, 2015

MIAMI TODAY

Ruble’s decline moves would-be buyers back off the fence BY SUSAN D ANSEYAR

Industry watchers haven’t seen a significant decrease in Russians buying property since the ruble’s decline against the dollar but have noticed that those who were unsure about moving ahead with a purchase in South Florida have decided against doing so for now. Irina Kim Sang, broker associate for Coldwell Banker Miami Beach who said her specialty is Russian-speaking luxury buyers interested in residential and commercial real estate, is still selling high-end, oneof-a-kind residences to Russians but said she received more inquiries from new-to-market prospective homeowners before the ruble’s decline in value. “I continue to receive inquires from Russians wanting to rent but am seeing less interest from those who started looking when the ruble decreased considerably,” she said. “These firsttime homebuyers in South Florida decided not to move forward, with the main reason being they make their money in rubles and would have doubly high carry costs for a second home.” So there are definitely Russians who are in a “holding pattern,” Ms. Sang believes, either because of the instability of their currency or political concerns, given the uncertainty about relations between the US and Rus-

Photo by Maxine Usdan

Russian-speaking luxury buyers aren’t backing off, but fewer new-to-market inquiries are coming in, said Irina Kim Sanger of Coldwell Banker, who’s seen on Sunny Isles Beach, dubbed the Russian Riviera.

sia and whether there might be changes in visa issue procedures. The ruble has decreased dramatically in value against the dollar in the last year, albeit with some fluctuations, due to the price of oil plummeting, one of Russia’s main exports, and Western sanctions put on the

country because of its Ukraine policy. Yet a number of Russians are still buying property, mainly those who have already purchased here and are changing their behaviors, Ms. Sang said. She is seeing several categories of these Russian buyers: those shifting from a condo to single-

family home where they appreciate the privacy; families moving to other communities in South Florida because they believe the schools there are better for their children; and affluent buyers able to purchase properties in the price range of $5 million and above. These buyers don’t have particular wor-

ries, Ms. Sang said, but want a trophy, unique home. Previously, she said, these buyers didn’t have as many choices but are now able to look into new, luxury construction properties such as Jade Ocean Condos or the Chateaux, where they can have ocean views and unique layouts. Yet another group of Russian-speaking buyers, Ms. Sang, are coming from Canada, New York and New Jersey. She sees stable interest among these potential homeowners. The Miami Association of Realtors reported Russians were the fourth largest group of foreign buyers searching its website for residential properties. In January last year Russia didn’t make it to the top 10 countries for this online traffic. “If focused solely on the depreciation of the ruble, one would expect that real estate investments in Miami would be less attractive to Russian buyers,” said Robert Cruz, chairman of the business school at Miami Dade College. “But the steady drop in the ruble is more likely to be perceived as a sign of continuing weakness in the Russian economy and additional future depreciation of the ruble.” Mr. Cruz said investors will be looking for a safe haven to protect their wealth, and Miami real estate continues to be viewed as a very good option.

As economy grows stronger, business bankruptcies fewer BY SUSAN D ANSEYAR

Business bankruptcy filings have declined significantly over the past year in South Florida, a direction financial analysts say will continue as the economy keeps strengthening. According to the United States Courts website, there were 178 Chapter 11 bankruptcy filings in South Florida during the 12 months ending June 30, compared with 222 for the same period the previous year. That 20% reduction is a big drop in one year, said Ken Thomas, independent bank consultant and economist. He attributes the meaningful decline to the health of South Florida’s economy. With an improving economy locally, statewide and nationally, people are working so there’s more disposable spending, which affects our businesses, Mr. Thomas said. “Businesses are dependent on the state of consumers,” he said. “Many small businesses which may have been on the edge over the past year or so have had the opportunity to turn around.”

Our economy, both in South Florida and across the state, is so dependent on tourism and the real estate market, which are both robust, Mr. Thomas said. “There’s no state in the country which is more dependent on the housing market than Florida,” he said. “We’ve seen a strong recovery in both the residential and commercial markets beginning around 2011.”

According to the US Bankruptcy Court for the Southern District of Florida, the highest number of Chapter 11 bankruptcy filings in South Florida over the past seven years was 399 in 2010. That was the peak year of bank failures, Mr. Thomas said, but the economic tide started rising in 2011 and continued that trajectory. Mr. Thomas said data show

how the housing crisis directly affected businesses in South Florida. The total of Chapter 11 bankruptcy filings in South Florida was 295 in 2008, 280 in 2009 and 399 in 2010, when the banking crisis peaked. Numbers then started to decline with 343 filings in 2011, 295 in 2012, 292 in 2013 and 257 in 2014. For the first quarter of 2015, there were 59 Chap-

‘The rising tide benefits everybody, including the government. When the economy gets better, businesses thrive, people pay their taxes and crime goes down.’ Ken Thomas ter 11 bankruptcy filings compared with 87 in 2014. “The rising tide benefits everybody, including the government,” Mr. Thomas said. “When the economy gets better, businesses thrive, people pay their taxes and crime goes down.”

WEEK OF THURSDAY, OCTOBER 8, 2015

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MIAMI TODAY

Few merchants make deadline to accept chip credit cards B Y C ARLA V IANNA

The deadline for merchants to switch over to payment systems that accept chip credit cards has come and gone, yet the pool of business owners who have installed the new credit card readers remains small. Oct. 1 was the deadline for merchants to accept EMV chip cards, which come embedded with a computer chip. Rather than swiping the card’s magnetic strip, consumers with chip cards now dip the card into a thin slot within the cardreader and wait a few seconds before removing it. Although the consumer’s purchasing experience won’t change much, the chip technology makes point-of-sale transactions safer than the swipe. The dynamic component chip that cards carry makes counterfeiting the cards impossible. It helps protect both cardholder and business owner from fraud, experts say. Prior to Oct. 1, fraudulent transactions at the point-ofsale were covered by the bank that issued the credit card. Now the liability has shifted from bank to merchant, unless that merchant accepts chip cards. “A fraudulent transaction 60 days ago that happened at the point-of-sale within a

Chips make point-of-sale transactions safer than credit card swipes.

merchant’s business – [the] bank would cover that fraud,” said Douglas Mearkle, senior VP and head of US Merchant Services at TD Bank. In today’s environment, if the fraud occurs at a business

without the proper chip card reader, he said, the merchant is fully liable for that transaction. But the government won’t come running after the business owners who didn’t make

the switch, nor will the merchants be fined. What the Oct. 1 deadline represented was a permanent shift in liability. “This is not a mandate,” said Eldred Garcia, director of security solutions at Bluefin Payment Systems, a provider of secure payment technology. “There are no fines associated with this date. Merchants can continue to use magnetic stripe cards when they’re presented. Cards that don’t have the chip can still be used with the magnetic stripe. Cards whose chips are not working – those transactions will fall back to the magnetic stripe.” The point Mr. Garcia made was there will be no loss of transactions. There’s currently no sunset date for the magnetic stripe, he said. As the chip technology picks up, cards will be equipped with both stripe and chip. EMV is a series of specifications defining a more secure method of card payment developed jointly by Europay, MasterCard and Visa in the mid-1990s. The technology has debuted and become standard in various European and Latin American countries. In 2014, the adoption rate of chip cards was 83% in Europe and 60% in Latin America, Mr. Garcia said. “Implantation of chip [cards] in other countries around the world has dramatically reduced

counterfeit cards,” he said. Fewer than 10% of business owners – especially small business owners – are ready to accept chip cards, Mr. Mearkle estimated. Mr. Garcia said about 20% to 25% of merchants complied by the October deadline. “It’s going to take time,” Mr. Mearkle said. He foresees most businesses making the shift as more consumers become accustomed to using chip cards. “Ultimately, it’s the merchant’s responsibility to become compliant,” Mr. Mearkle said. “Their financial institution also has the obligation to be talking to them.” He advised business owners to: Discuss with their bank all options for installing some sort of payment processing device. Train employees on what it means to accept chip cards at the point-of-sale. Be ready to educate consumers on how to actually pay with a chip card. Mr. Garcia warned that the EMV technology won’t completely stop fraudulent activity. “All it will do is prevent counterfeit cards from being created and being used at the point-of-sale,” he said, “but it will absolutely not do anything for data breaches.”

Outside banks continue to show interest in South Florida B Y S USAN D ANSEYAR

Corporate banks continue to expand their presence in the state and show particular interest in South Florida, a trend that industry experts say speaks to the overall economic growth and increasing wealth in this area. In May, New Jersey-headquartered Valley National Bankcorp bought CNL Banschares in Orlando. A year before, Valley National made its initial entry into Florida with the purchase of 1st United Bancorp in Boca Raton. The acquisition of CNL Bancshares further demonstrates Valley National’s “commitment to prudently deploy” its resources to “supplement the recent organic growth” in its Florida market, said Gerald H. Lipkin, chairman, president and CEO, in a statement announcing the sale. He added that Valley National’s outlook for Florida “remains very positive” and that the bank is “focused on supporting growth in that footprint through other acquisitions.” Last week, Esquire Bank

Esquire Bank’s Florida office ‘reflects the exciting growth opportunities we see in the marketplace’ Andrew C. Sagliocca

opened a branch in Palm Beach Gardens. Headquartered in Garden City, NY, the bank specializes in providing financial services to the legal community. Esquire Bank’s new Florida office “reflects the exciting growth opportunities we see in the marketplace,” said Andrew C. Sagliocca, president and CEO, in a written statement. Florida’s population is the third largest in the nation and the fourth largest in bank deposits, according to Ken Thomas, independent bank consultant and economist. “We’re a deposit-rich state and continue to be a banking colony,” he said. “The only states that are bigger than us are California, Texas and New York.” The most recent data from the Federal Deposit Insurance Corp. show bank deposits in Florida equal $502 billion. South Florida represents 40% of those deposits, or $207 billion, Mr. Thomas said. “Banks see overall economic growth in South Florida [Miami-Dade, Broward and Palm Beach counties],” he said. “Out of 67 counties, our three represent a large percentage of the state’s bank deposits.” Over the past year and a half, a number of large corporate banks have opened more branches in South Florida, including TD Bank, BankUnited and JP Morgan Chase. Mr. Thomas said Miami, in particular, appeals to corpo-

rate banks because “it’s a city and nation. “We have a large population of the future.” He said this is a diverse community, unlike from Latin American counother cities around the state tries, and banks realize that’s

a wealthy market,” Mr. Thomas said. “They see more diversity, growth, increasing wealth and opportunities here.”

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