Miami Today: Week of Thursday, November 17, 2016

WEEK OF THURSDAY, NOVEMBER 17, 2016

A Singular Voice in an Evolving City

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DESIGN DISTRICT

Affluent neighborhoods feed shoppers into district, pg. 13 MAKING A GOOD ENTRANCE: North Bay Village officials want to beautify and maintain part of the 79th Street Causeway but need to annex the right-of-way to make that happen. Miami city commissioners are onboard with their approval of a resolution supporting the municipal boundary change application to Miami-Dade County by North Bay Village. The annexation is of the 79th Street Causeway right-of-way up to the mean high tide mark, from the current westernmost boundary of North Bay Village to Pelican Harbor Drive, Pelican Island. The land would be annexed out of the City of Miami into North Bay Village. The resolution says the annexation won’t cut into Miami’s tax revenue. Village leaders told the city they plan to turn the area into a grand entrance by making improvements including landscaping and lighting.

Institute of Contemporary Art has new home on way, pg. 15

The Achiever

By Susan Danseyar

CHARTER REVIEW: County Commissioner Daniella Levine Cava’s proposed legislation creating a charter review task force was tabled Nov. 10 when the Economic Prosperity Committee adjourned without voting on the measure. Ms. Levine Cava said this week she intends to bring the item back once she has a Sunshine meeting with committee Chair Xavier Suarez. Her proposed legislation would fulfill the commission’s obligation to review the county charter every five years by creating a community panel that would recommend changes.

QUIET NEGOTIATIONS: Viacom, the principal tenant at the Screens Gems/EUE studio at 50 NW 14th St., has quietly put out the word that it is seeking to renegotiate some of its local contracts and is holding an invitation-only event Nov. 21. Only 25 spots exist, Viacom said in a release that went out on the letterhead of the Omni Community Redevelopment Agency, which owns the studio.

LET THE RIVER FLOW: The City of Miami has agreed to a new contract with Water Management Technologies Inc. to help clean waterways. The Miami-based company employs its Scavenger 2000 Decontamination Boat to remove trash and debris from the Miami River and parts of Biscayne Bay. The city commission has determined the company to be the sole source provider for the continued clean-up, approving a new $250,000 one-year contract with an option to extend for two added one-year periods, funded from the Public Works Operations Budget. The movable arms of the company’s Y-shape decontamination vessels open to corral trash and debris in the water and direct it to a collection machine in the boat’s belly.

Nearly daily clean-up runs have collected debris that includes foam cups, automobile tires, plastic jugs and grass clippings.

Photo by Marlene Quaroni

Daniella Levine Cava

Targeting more economic opportunity, accountability The profile is on Page 4

Study douses city bid to run Virginia Key marina $45 million in stadium bonds on table, pg. 12 commissioners voted 3 to 2 to throw out all proposals and seek new ones.

The City of Miami should not develop Marina work may raise seagrass issue, pg. 12 Immediately after that, the commission

By John Charles Robbins

and run a marina on Virginia Key but instead have a private company do so, says a report that examined the possibility of the city taking over the marina.

The idea to have the city develop and manage what’s known as Rickenbacker Marina arose from the dust of a bidding war that entangled three private developers and the city for months.

The new report is part of a discussion item on today’s (11/17) city commission agenda regarding requirements for leasing the city-owned property.

CBRE Valuation & Advisory Services analyzed the potential redevelopment of Rickenbacker and Marine Stadium marinas by either the city or the private sector.

The firm’s conclusion: “In our opinion, there is a very high risk of financial loss to the city associated with hidden costs and a very lengthy permitting process associated with the redevelopment of the south basin and the development of the north basin.

Based on these risk factors alone, it is our opinion that the city should not undertake

Agenda

On county land gifts, clock ticks

the risks and unknown costs associated with attempting to develop and operate the subject. Rather, the private sector is better suited to redevelop based upon their marina specific experience and expertise.”

The conclusion is rooted in the potential high cost of dredging and mitigation as part of redeveloping both the larger marina and smaller Marine Stadium Marina.

A private firm operates the marina that fills the basin northwest of the abandoned Marine Stadium. The city has worked for years to line up a new operator.

In June 2015, the city requested proposals to build and operate two marinas, dry storage, wet slips, at least one restaurant and more.

Three companies offered proposals. After evaluation by a selection committee, Virginia Key LLC, also known as RCI Group, was chosen. The second and third place bidders filed protests.

After several long, contentious meetings, the battle culminated July 20 when

voted unanimously to direct the city manager to study whether the city’s Marinas Division should operate, develop and manage a new city marina on Virginia Key. The city is already in the marina business, managing the largest wet slip marine facility in Florida, 582-slip Dinner Key Marina, and an adjacent 225-vessel mooring facility in Biscayne Bay. The city also operates Miamarina at Bayside and Marine Stadium Marina.

CBRE’s conclusion is backed up by Lambert Advisory in its peer review of CBRE’s report.

In its review, Lambert Advisory says, in part: “While we are more agnostic than CBRE as to who develops the marina (private lessee vs. city) considering there are arguments on both approaches as long as the city is able to treat its marina operation as an enterprise function of the city, in this particular case we strongly lean towards the private lessee model given the inherent high risk associated with permitting and unknowns associated with seagrass and dredging costs.”

Non-profits receiving MiamiDade County property must use it or lose it.

Commissioners unanimously agreed Tuesday to remove two properties from the Public Health Trust, classify them surplus and convey them to the Haitian Senior Stars Solidarity Group Inc. for $10 each. However, the resolution by Chairman Jean Monestime was amended to require finishing construction on the properties within five years or both revert to the county.

The unanimous amendment came after Commissioner Audrey Edmonson said she’s seen county-owned properties given to non-profits often sit way too long unfinished or severely dilapidated.

This problem goes further than the two sites at hand, said Jose “Pepe” Diaz, who advised he’ll bring legislation to help clear things up.

“Plans are brought into effect and it takes time for the plans to take effect,” he said. “The person may be sure of everything but still had to go into a long delay.” Such delays cost money, Mr. Diaz said, so he’ll work with the state to revamp the system toward curbing holdups.

Of course, Mr. Diaz said, once a plan has been approved, it must be moved on. “You can’t keep coming back every time you have a new idea,” he said. “Once there’s approval, that’s it and you start the process of getting it done.”

The not-for-profit Haitian Senior Stars Solidarity will receive now-abandoned facilities once run by the Public Health Trust at 480 NW 123rd St. and 11 NW 135th St. Rebeca Sosa was originally concerned that the commission was considering “giving out land that belongs to the people without asking the people.” She said it would be much better to lease the property to protect the public.

Mr. Monestime pointed out the properties are abandoned and unlivable, plus the commission previously approved conveying properties to non-profits when it sped benefit to the general public.

WITH LAND IN HAND, ARSHT GARAGE PLANS UNCLEAR ...

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SOUTH AFRICA, ARGENTINA MISSIONS TARGET TRADE ...

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GROVE, WITH ZERO CASES, GEARS FOR ZIKA RECOVERY ...

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TEAM PAVING WAYS TO ALTER EXPRESSWAY AGENCY ...

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VIEWPOINT: LEAP OF FAITH AS DOWNTOWN ROARS BACK ...

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44 FLORIDA FIRMS GO TO GERMAN MEDICAL TRADE FAIR ...

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GABLES ADDS TIFFANY VET AS ITS RETAIL RECRUITER ...

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RIVER TEAM FEARS RUSE IN CAPTAIN’S QUARTERS PLAN...

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TODAY’S NEWS

WEEK OF THURSDAY, NOVEMBER 17, 2016

MIAMI TODAY

9

State’s South Africa, Argentina missions aim to grow trade

By Camila Cepero

Economic development agency Enterprise Florida aims to help Florida companies expand into foreign economies by way of trade missions to South Africa and Argentina early next year.

The first of the missions is heading to South Africa from Feb. 24-March 4.

“Africa is a relatively small market for Florida still, but it’s a market that I think has enormous potential for Florida in the years to come,” said Manny Mencia, Coral Gables-based senior vice president of international trade and development for Enterprise Florida.

“Africa sits on the largest concentration of unexploited mineral wealth left in the world, and it’s beginning to realize some of its potential, as the African economy grows faster than the world economy,” Mr. Mencia said. “South Africa is the largest African trading partner of our state... and it’s considered to be one of the big emerging markets of the world.”

South Africa’s population is about 54 million – a small chunk of the billion people living in the continent – and geographically, Florida is the closest US state to South Africa.

“We have great geographic positions and we have a business community [and] we have a trading community that has acquired great expertise in the developing world, in parts of Central America and the Caribbean, and while Africa is very different, some of the lessons you learn in developing economies can be applied very well in Africa,” Mr. Mencia said.

“Africa also has tremendous infrastructure – ports and airports – so we feel that there is a great opportunity to help position South Africa as a growing market to Florida,” he said. “We have been working in Africa for many years... so we see long-term potential. We feel we’re ripe for growing ties with Africa.”

According to Enterprise Florida, leading sectors for Florida exports to South Africa include aerospace, agricultural, automotive specialty equipment, electrical power systems, franchising, green building technologies, healthcare, information technology, medical devices, mining equipment, pollution control equipment, port and maritime infrastructure, and rail infrastructure.

The agency also sees South Africa’s economy as having a lowentry threshold due to location

Photo by Maxine Usdan

“We feel there is a great opportunity to help position South Africa as a growing market to Florida,” said Manny Mencia, the senior vice president of international trade and development for Enterprise Florida.

options, logistics infrastructure, the English language and benign legal processes.

Additionally, South Africa is a business incubator for new-tomarket ideas, according to the agency. As the middle class in Africa grows, the agency says, business models launched in and from South Africa will find easier acceptance in other sub-Saharan African markets.

Enterprise Florida along with the US Department of Commerce is preparing a full trade mission agenda that includes qualified business appointments, in-depth briefings and a wide range of networking events, the event brochure states.

Participants will be able to interact with high-level government officials and business decision-makers in a variety of industry sectors.

The trade mission is in line with Florida’s African Trade Expansion Program, which fosters and promotes bilateral trade opportunities in the African market for Florida businesses.

Less than two months after the South Africa trade mission, the agency will head to Buenos Aires for an export trade mission from April 23-27.

“In the case of Argentina, it is one of the largest economies in the Americas, but it has been somewhat of a restricted market for many years,” Mr. Mencia said.

“The Argentine economy has been in very bad states for a period of time, and frankly, the previous Argentine government was very adversarial to us.”

Last year, Mauricio Macri took office, becoming Argentina’s first democratically elected non-

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Radical or Peronist President since 1916.

“Macri is a market economy advocate and he is taking measures to open the Argentine economy to foreign business,” Mr. Mencia said. “The projections are that later next year, the Argentine economy is going to resume growth after being flat or negative for several years.”

“And of course, Argentine companies and businesses prefer to do business with Florida more than with any other state because of the proximity and because they know Florida has multicultural and multi-language capabilities.”

Argentina has a population of 41.5 million and a GDP of about $609 billion, Enterprise Florida notes.

The US is Argentina’s thirdlargest trading partner. US goods and services trade with Argentina totaled $22.4 billion in 2015, making Argentina the country’s 28th largest goods export market that year. Argentina is also Florida’s fourth-largest export destination with $3.3 billion in exports in 2015.

According to Enterprise Florida, leading sectors for Florida exports to Argentina include medical technology, information and communication technology, telecommunication equipment, transportation infrastructure equipment and services, electronic security equipment, food processing equipment, and agricultural machinery and parts.

Like the participants of the South Africa mission, participants of the Argentina mission will enjoy business appointments, briefing sessions, networking

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OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY PLEASE ALL TAKE NOTICE that a Board of Commissioners Meeting of the Omni Redevelopment District Community Redevelopment Agency is scheduled to take place on Tuesday, November 22, 2016 at 5:00 p.m. at CHAPMAN Partnership, 1550 N. Miami Avenue, Miami, FL 33136.

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All interested persons are invited to attend. For more information please contact the OMNI CRA office at (305) 679-6868.

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events, and be able to interact with government officials and business decision-makers in a variety of industry sectors.

Prices per person range from $650 to $1,000 for the South Africa mission and from $650 to $1,760 for Argentina, with multiple package options.

Registration deadline for the most inclusive packages are Dec. 5 for South Africa and Dec. 16 for Argentina; other packages have later deadlines.

Grants for select companies meeting specific requirements

vary by mission and require a separate application process.

Enterprise Florida will offer a limited number of Gold Key Matchmaking one-on-one appointments through the US Commercial Service for participating Florida companies.

For the South Africa mission, the price of this service is $1,000 and for the Argentina mission $1,760. However, small and midsized Florida manufacturers, distributors and professional service providers may qualify for a Gold Key Grant, which will offset the full matchmaking registration fee for the first company representative.

The grants available for the South Africa mission are less limited than for the Argentina mission, Mr. Mencia said.

“Grant appointment is based on whether the company or business is new to the particular market,” he said. “If you’re new to the market and you have not done business there or you have done limited business, the grant enables you to offset the cost of matchmaking.”

The agency expects to take a “sizeable delegation” on each mission, he said, roughly 10 to 20 companies on each.

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Jason Walker, Executive Director Omni Redevelopment District Community Redevelopment Agency

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MIAMI TODAY

TODAY’S NEWS

WEEK OF THURSDAY, NOVEMBER 17, 2016

New viaduct helping alleviate traffic and move cargo faster

By Marilyn Bowden

The Northwest 25th Street viaduct, completed inAugust, is getting good reviews from users.

The viaduct, built to alleviate traffic congestion in one of the county's busiest industrial areas, separates commuter traffic from cargo trucks going to and from Miami International Airport's West Cargo Area on Northwest 82nd Avenue. For most of its length it runs along the north side of Northwest 25th Street, going over the expressway and touching down just east of Northwest 82nd.

“Feedback has been positive from users,” said Ivette Ruiz-Paz, a spokesperson for the Florida Department of Transportation, “including the City of Doral and Miami-Dade Aviation Department.”

By using the viaduct instead of the Northwest 25th Street roadway, she said, trucks traveling to and from MIA's cargo facility bypass six traffic signals and an active railroad crossing inset, which should cut travel time in half.

Photo by Marlene Quaroni

Signage gives directions to the new Northwest 25th Street viaduct, which was completed in August.

“The viaduct,” she said, “provides drivers with a more consistent route to and from the airport in terms of time.”

With many trucks diverted to the

viaduct, Ms. Ruiz-Paz said, “field observations indicate that travel time along the Northwest 25th Street roadway within the project limits has been reduced. The improved travel

OMNI REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY NOTICE OF PUBLIC HEARING The Board of Commissioners (“Board”) of the Omni Redevelopment District Community Redevelopment Agency (“CRA”) will hold a Public Hearing on Tuesday, November 22, 2016 at 5:00 p.m., to consider the allocation of aid, and award of grants originating from tax increment funds (“TIF”), and in accordance with, the Board’s 2009 Redevelopment Plan (“Plan”), to the following legal entities authorized to transact business/render services in the State of Florida: 1.

2.

3.

4.

5.

Chapman Partnership, Inc. – One-time funding contribution in an amount not to exceed $60,000, in support of the physical improvements necessary to the façade of the not-for-profit organization’s Chapman Partnership Building located at 1550 North Miami Avenue, Miami FL. Camillus House, Inc. – One-time partial funding contribution in an amount not to exceed $175,000 in support of the not-for-profit organization’s “Miami Shelter Program Services”.

Rebuilding Together Miami-Dade, Inc. - Partial funding contribution in an amount not to exceed $700,000 in support of the not-for-profit organization’s “Home Improvement Façade Program Services” and rehabilitation services for residential homes, for a period of one (1) year.

Legido Management Services, Inc. – Funding in support of the organization’s administrative and management services necessary in the implementation and accomplishment of the CRA’s “Building Rehabilitation Grant Program” Plan objectives.

Urban Implementation, LLC – Partial funding in support of the organization’s design, development, and management services necessary in the implementation and creation of temporary urban park projects on seven (7) acres of Florida Department of Transportation owned land, within the CRA, and in accordance with Plan objectives.

In addition, the Board will consider the award of a professional services agreement to: Mr. Miguel A. Valentin, CPA for the provision of fiscal support, consulting, and general accounting services to the CRA, for a one (1) year initial term, effective retroactively on July 23, 2016, and expiring on July 22, 2017, with three (3) one (1) year renewal options, at an annual contract amount not to exceed $47,800, subject to availability of funds, at the CRA’s sole discretion.

Inquiries regarding this notice may be addressed to Jason Walker, Executive Director, OMNI CRA, at (305) 679-6868.

This action is being considered pursuant to Sections 18-85 (a) and 18-86 of the Code of the City of Miami, Florida as amended (“Code”). The recommendations and findings to be considered in this matter are set forth in the respective proposed resolutions and in Code Sections 18-85 (a) and 18-86, which are deemed to be incorporated by reference herein, and are available as with the scheduled CRA Board meeting of November 22, 2016 at the Chapman Partnership Building, 1550 North Miami Avenue, Miami, FL. The CRA Board requests all interested parties be present or represented at the meeting, and may be heard with respect to any proposition before the CRA Board, in which the Board may take action.

Should any person desire to appeal any decision of the Board with respect to any matter considered at this meeting, that person shall ensure that a verbatim record of the proceedings is made, including all testimony and evidence upon which any appeal may be based (F.S. 286.0105).

In accordance with the Americans with Disabilities Act of 1990, persons needing special accommodations to participate in this proceeding may contact the Office of the City Clerk at (305) 250-5361 (Voice), not later than five (5) business days prior to the proceeding. TTY users may call (305) 250-5472, not later than five (5) business days prior to the proceeding.

times are a combination of added capacity, improved signalization, additional and improved turning lanes, and increased turning radii at major intersections.”

“We're in constant interaction with our cargo carriers, freight forwarders and truckers,” said Joseph Napoli, chief of staff for MiamiDade Aviation Department, “and all have indicated improvements in time and predictability of the route.

Everyone is telling us that equates to savings.

“Margins are very small in air cargo, and we're looking at anything we can do to make it more attractive for these companies to use Miami.”

“The viaduct is helping with the flow of traffic within Doral,” said Luis Perez-Codina, vice president of marketing & commercialization for Liaison CAN/US Logistics, a Canadian company that opened US headquarters in Miami last spring.

“We move pharmaceuticals and local produce as well as perishables coming in fresh at controlled temperatures from Latin America,” Mr. Perez-Codina said, “and that means we have that time component. So the viaduct is big for us. We are trying to focus our drivers to avoid 25th Street by jumping on the viaduct and onto the Palmetto if they're going north.

“It's a great solution, and we

would love to see it in more parts of the county where there is truck traffic.”

MIA, Mr. Napoli said, is the largest international freight airport in the US and 10th largest in the world, “but our cargo has been relatively flat for the past seven to 10 years.

So we are looking heavily at infrastructure improvements to remain competitive.”

The department, he said, is beginning execution of its Cargo Optimization, Redevelopment & Expansion Plan, known as CORE, developed over the past year and a half. “We envision this plan will help us double our capacity for cargo,” Mr. Napoli said.

The first phase – optimization – will add more ramp space for parking planes. Most of the funding for that phase, he said, comes from grants from the Federal Aviation Administration and the Florida Department of Transportation.

Two to three years from now, Mr. Napoli said, the redevelopment phase will probably kick in. “We are looking at some facilities to tear down,” he said, “and replace with more efficient vertical rather than single-story structures. “We are also looking at areas for expansion. But that would be way off in the future.”

In addition to infrastructure improvements, Mr. Napoli said, MIA is undertaking three initiatives in hopes of increasing its competitive edge as an air-freight leader. “We have been named a pharmaceutical hub,” he said, “which should increase our pharmaceutical volume by helping shippers feel comfortable here at MIA. “We were recently approved by the county commission to apply to become a foreign trade zone. We think we will get approval by early next year” at the federal level.

“Third,” Mr. Napoli said, “we plan to launch Florida's first oceanto-air transshipment program by the end of the year.”

The ocean-to-air program allows perishable products shipped to Miami by sea to be transferred to air transport without having to go through customs.

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WEEK OF THURSDAY, NOVEMBER 17, 2016

TODAY’S NEWS

MIAMI TODAY

11

As football stadium renovation continues, bonds rated BBB

About $372 million spent on work so far

Football League, football’s ity” and the stable fan base of percentage of collateral is con- advertising and sponsorships, player contract through 2020 the Dolphins. tractually obligated and con- concessions, annual stadium that “provides for a lengthy Also cited as strengths for sists of luxury suite revenues, rent, parking and other revBonds that funded past devel- period of labor relations stabil- bondholders are that “a high club seat revenues, stadium enues.” opment and redevelopment at what is now Hard Rock Stadium in Miami Gardens have been affirmed at a BBB rating with a stable outlook by Fitch Ratings, whose bond ratings are paid for by the bond issuers.

The ratings cover $120.9 million in taxable Miami-Dade County Industrial Development Authority revenue bonds issued in 2006 and 2007 and $76.3 million in tax-exempt Industrial Development Authority revenue bonds issued in 1985.

Fitch notes that the bonds were issued by the Industrial Development Authority on behalf of the Miami Dolphins football stadium’s owner South Florida Stadium LLC, which is obligated for all payments on the bonds. South Florida Stadium also issued $100 million in bonds through the Industrial Development Authority in 2015 as part of the current stadium renewal funding, but Fitch does not rate those bonds.

The current renovation, Fitch says, has spent about $372 million of its $500 million capitalization on the first two phases.

The first phase includes a sales and data center, bowl area renovations on the stadium, full seat replacement, construction of five new clubs in the club area, general admission concourse improvements and service level improvement, Fitch says.

Projects completed in the second phase, Fitch says, include construction of a shade canopy over the football field, four new high-definition video boards and production controls, new LED lighting, a broadcast video production area and equipment, general admission concourse flooring restoration.

The third phase next year is to include additional suite and club area renovations.

Of the $500 million expected to be spent on the whole renovation, Fitch says, $350 million is to come from owners, $100 million from the 2015 bond issue and $50 million from the National Football League. “To the extent that there are costs above $500 million, Fitch expects additional ownership equity to fund projects,” the ratings firm writes.

In looking at the credit of the stadium ownership, Fitch notes that in the fiscal year that ended March 31, stadium-related revenues grew about 11%, “”driven by luxury suite premiums and club seats, while signage and sponsorships declined.” Total Smart thermostats have been proven to save, on average, 450 kWh per year, revenues also declined for the fiscal year, Fitch said, “reflector about $50 annually. Find even more smart ways to help you save money ing fewer other events includand lower your bill when you take FPL’s Online Home Energy Survey. Go to ing other sporting events and FPL.com/EasyToSave to see how you can save up to $250 a year. concerts, due to the ongoing construction during the [football league’s] off-season.” To offset the decline, Fitch said, expenses were cut 7%.

In citing factors underlying its bond ratings, Fitch cites “Hard Rock Stadium’s status as a premier venue in South Florida,” the strength of the National

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12

MIAMI TODAY

TODAY’S NEWS

WEEK OF THURSDAY, NOVEMBER 17, 2016

$45 million bonding to restore marine stadium back on table

By John Charles Robbins

Weathered and worn, Miami Marine Stadium begs for a rebirth.

The City of Miami’s elected officials have affection for the aging concrete monolith on Virginia Key and each supports its restoration.

But deciding how to pay for the expensive salvage operation, and how the historic stadium would be used, have been major stumbling blocks.

The city shuttered the waterfront venue in 1992 in the wake of Hurricane Andrew. For nearly 25 years the stadium has remained closed, gathering grime and graffiti.

At a meeting today (11/17), city commissioners are to discuss a $45 million bond proposal to borrow money to fund stadium renovation and improvements, among other work on the barrier island, most of which is owned by the city.

The resolution, prepared by the Photo by Carmen Betancourt-Lewis Office of Management and Budget, Visitors to the Miami International Boat Show in February directly viewed the crumbling marine stadium. declares the official intent of the City of Miami to issue $45 million in tax exempt and taxable special obligation bonds to reimburse itself from the proceeds for city funds advanced for expenses incurred with capital improvement projects at the Miami Marine Stadium and the associated Welcome Center and Museum Complex.

In a background memo on the proposal, City Manager Daniel Alfonso notes the long-held desire of city leaders to restore the iconic stadium.

Mr. Alfonso said his staff has prepared a preliminary scope of work and cost estimate including renovating the form, materials, features and character of the stadium as it appeared in its original likeness during the 1960s; potential removal of inconsistent or unsafe structural features; structural repairs or replacement of the upper-structure and substructure; incorporation of new electrical, mechanical, lighting, sound and plumbing systems; Photo by Maxine Usdan Americans with Disabilities Act The Miami Marine Stadium has shown years of graffiti throughout the structure as it stood abandoned. accessibility; restoration or re-

‘Staff would expect the bonds to have a repayment schedule of 15 to 20 years...’

Danny Alfonso placement of the seating; removal of asbestos as necessary, and construction of a Welcome Center and Museum.

“We are requesting approval to begin the process of issuing a Non-Ad Valorem Special Obligation Bond (or similar financing mechanism) including both taxable and tax exempt financing as appropriate, in the amount not to exceed $45 million,” wrote Mr. Alfonso.

“Staff would expect the bond to have a repayment schedule of 15 to 20 years and pledge funds from any available Non-Ad Valorem sources (such as the Local Government Half-cent Sales Tax Program) with a covenant to budget and appropriate to repay the debt service from the General Fund,” according to the city manager.

City commissioners may also discuss a staff analysis of all revenues and expenses on Virginia Key. The new Virginia Key Advisory Board recently recommended the $45 million bond proposal and requested that plans to spend those funds for restoration of the stadium and the development of the surrounding areas be brought before the advisory board for recommendations by it and the public.

Virginia Key marinas work may raise dredging, seagrass issues

By John Charles Robbins

The redevelopment of public marinas on Virginia Key would probably entail substantial dredging and the mitigation of seagrasses in several areas adjacent to the barrier island, according to a new report from CBRE Valuation & Advisory Services.

Potential redevelopment of the marinas on the island is detailed in the 60-page report from CBRE. The firm concluded the city should not undertake the risks and unknown costs associated with redeveloping and managing the marinas, saying the private sector is better suited to handle that.

In its study of the issue, CBRE examined many aspects, including the history of the city-owned waterfront property, the Virginia Key Master Plan, the scope of the city’s last request for proposals, zoning, submerged land depths, marina market studies, vessel registration analysis and more.

It also explores the feasibility of wet slip expansion on the key, including an unpopular plan to develop additional wet slips in the larger basin.

Proponents of restoring historic Miami Marine Stadium, and others wishing to protect the barrier island, say it would be a disaster to allow wet slips into the main basin. This group includes folks who aren’t happy about the city leasing portions of the

island for the staging of the Miami International Boat Show.

As city commissioners are today (11/17) set to discuss the fate of the marinas on the island, they have before them the CBRE report, a companion peer review of that report and a new proposed request for proposals.

On a split vote of 3 to 2, commissioners in July rejected marina development proposals from all three bidders and decided to seek new proposals. They also directed City Manager Daniel Alfonso to study the feasibility of the city itself redeveloping and managing the larger marina on the key. A private company has managed the marina there for years.

A staff memo on the latest request for proposals says, “The goal of this RFP is to create a vibrant recreational marina and restaurant destination with an ancillary ship’s store facility for residents and tourists alike and to help implement major components of the Virginia Key Master Plan.”

The draft request for proposals has a section for additional wet slips but does not say how many or where they might be located.

At this point in the draft regarding new wet slips, it includes highlighted words in brackets: [Potential inclusion of countyowned submerged land?].

When the possibility of wet slips in the large basin emerged earlier this year and was met with strong opposition from the

public and some elected officials, the newly formed Virginia Key Advisory Board discussed establishing new wet slips west of the smaller basin, along county-owned and control submerged land running parallel to the Rickenbacker Causeway.

The CBRE report speaks to the feasibility of developing at least 300 additional wet slips in what it calls the north basin, or the larger basin extending out from the stadium site.

“The north basin as identified in the RFP contains 26.25 acres and is currently unimproved. According to the [2015] RFP, this 26.25 acre submerged land parcel is proposed for at least 300 additional wet slips …. Dredging down to a uniform depth of 8 or 9 feet, which is consistent with the approach depth from the west would also be warranted. However, there is an abundance of sea grasses in this area,” it says.

The CBRE report continues, “Due to the heavy concentrations of seagrasses in the existing south basin [the smaller basin], the submerged area west of the south basin and in the north basin, it is our opinion that public outcry will make permitting in these areas very difficult. Environmental issues are very contentious and can stall or kill a new development.

“Based on the number of public hearings that have already been held, any potential developer can expect significant opposition

to any sea grass disturbance. In addition to long delays in permitting, especially in the north basin, the risk of extremely high dredging and mitigation costs suggest that development of the north basin may not be permittable or financially feasible,” the report says.

The CBRE report touched on potential cost overruns in redeveloping the main marina.

“One example of a potentially significant cost overrun combined with the very real probability of permit denial, is the development of the north basin,” the report says.

“Based on very little data, we have learned that the mitigation cost for the 26+/- acre north basin could cost between $26,250,000 up to $39,375,000. We would not suggest that the city incur the risk of this potential downside risk.”

CBRE concluded that the three companies that submitted bid proposals based on the city’s 2015 request “are all very experienced marina developer/operators.”

CBRE said the quantities of improvements, capital costs and revenues within the three proposals varied significantly because of the competitive nature of the bidding process.

In the end, CBRE Valuation & Advisory Services is recommending that the city reissue an amended request for proposals and limit participation to those three bidders.

MIAMI TODAY

WEEK OF THURSDAY, NOVEMBER 17, 2016

13

Design District Neighboring areas have distinctive characters

By Catherine Lackner

Photos by Maxine Usdan

Landmarks in the shopping area are the Le Corbusier bust and the Fly’s Eye Dome by Buckminster Fuller.

Nearby affluent neighborhoods feed shoppers to Design District luxuries

By Catherine Lackner

The Design District is mainly about retail, observers say, and it is perfectly positioned for that use.

Many affluent neighborhoods with year-round residents – including Edgewater, Bay Point, Morningside, the Upper East Side, Belle Meade, Miami Beach and Miami Shores – are nearby, said David Siddons, industry analyst and broker with EWM Realty International. The Design District is home to many of the same kinds of luxury stores as Bal Harbour Shops but is closer, he added.

In addition, the district and surrounding neighborhoods, including Wynwood, have become a mecca for “foodies,” he said. “There are lots of great restaurants.”

The only cloud on the horizon for the Design District is competition, both in luxury retail stores and trendy restaurants, from Brickell City Centre, Mr. Siddons said. That mega-property will be a

magnet for young professionals living in Brickell, downtown, Coconut Grove and other areas south of the Design District, he explained.

“I believe there’s a lot of room for the Design District to grow, but retailers have to get creative,” said Michael T. Fay, Avison Young principal and managing director for Miami.

Craig Robins and DACRA have steered the Design District’s growth in very controlled phases, which is good for the district’s cohesive identity, he said. That has led to the placement of “service retail” in nearby Midtown Miami to the south, which is inhabited mostly by young professionals who may shop or dine in the Design District but who also need Target and Marshalls, he said.

As the more and more stores in the district open and the area becomes more popular, Mr. Fay predicts that luxury and boutique hotels will open their doors in the surrounding neighborhoods. “They would have to be something really special,” he said, “but they would be very successful.”

Shoppers in Miami’s Design District encounter well-known luxury brand names and wide open spaces.

As a zone that was developed primarily for shopping and dining, the Design District proper’s residential offerings are extremely limited, but surrounding neighborhoods have their own unique character, observers say.

“Generally speaking, the Design District hugs the area west of Biscayne Boulevard, east of I-95, and north of I-195,” said Ryan Dosen, vice president of the Jack Coden Group, which has been the No. 1 Keller Williams team in Miami since 2010.

“It is north of Wynwood and south of Little Haiti,” he said via email. “The heart of the Design District is east of North Miami Avenue, but it could be said that the area is expanding, with people who are looking to be in the Design District settling in west of North Miami Avenue,” he said.

“The Design District is a charming, patchwork neighborhood of pre-World War II historic homes,” Mr. Dosen said. “It is one of Miami's oldest neighborhoods, with few zoning restrictions. As a result, you can have homes next to each other which vary greatly in size.”

When these homes were being built, he explained, what would have been considered a mansion (3,500 square feet or more) often was built next to an arts-and-crafts cottage that could be as small at 600 square feet. Architectural styles vary greatly, and include Spanish Mediterranean, Craftsman, Art Deco and others. The average lot size is 6,000 square feet.

Considering the latitude in zoning, the area would seem to be a magnet for aggressive residential development, but that hasn’t happened, Mr. Dosen said.

“People are generally respecting the charm and architecture of the neighborhood and not tearing homes down to build McMansions; even building an addition on one of these homes is not very common,” he said.

Prices range from $85,000 to $1.3 million. There are about 60 homes for sale, he said. In the past six months, 37 homes have been sold at prices ranging from $85,000 to $690,000.

“The residents of the Design District are of all ages and educational levels,” Mr. Dosen said.

“However, there is a trend of younger people and married couples with children moving into the Design District. Many of the young people moving in are professionals who work in downtown Miami and Brickell. Many are looking for shorter commutes and the chance to live in a trendy, up-and-coming neighborhood.”

That description would fit Frank Martinez, an accountant who is acting as his own broker to sell his

Michael Fay identifies eight zones.

family’s home in Buena Vista East, a neighborhood immediately north of the Design District shopping and entertainment complex. The area is designated as historic; its tree-lined streets feature mostly single-family homes, though there are a few small apartment buildings.

His office is three blocks away, Mr. Martinez said, and his wife’s office is downtown, so the neighborhood’s close-in location was a big draw.

The gracious two-story home on Northeast 43rd Street east of Northeast First Avenue is offered at $1.25 million. “We really don’t have to sell,” Mr. Martinez said.

“We’re just testing the waters.

Values in this neighborhood have gone up a lot in the past 18 to 24 months, and that has put us in a great position, because there is very little inventory right now for this type of home.”

The scarcity of land will push the Design District’s residential boundaries outward, said Michael T. Fay, principal and managing director for Miami for Avison Young.

“West of the Design District, there are pockets of residential or commercial land that could be repurposed,” he said. South of Northwest 36th Street, west of Biscayne Boulevard but east of North Miami Avenue, lies a neighborhood mostly made up of older apartment buildings, he said.

Allapattah, west of Wynwood, south and west of Midtown, and north of the Miami River, might also be a candidate for redevelopment, he said. One day, he said, there could be connections across I-95 between Wynwood and Allapattah, even pedestrian connections. “But that will be later,” Mr. Fay said.

He theorizes that surging neighborhoods can be broken down into eight zones, or “boroughs” in New York City parlance: Brickell City Centre, downtown, Miami Worldcenter/art district, the Health District, Wynwood, Edgewater, the Design District, and the Midcentury Modern district in the Upper East Side.

“If you look at what’s happening, and the money that’s being spent in all of these areas,” he said, “it’s kind of cool.”

WEEK OF THURSDAY, NOVEMBER 17, 2016

DESIGN DISTRICT

MIAMI TODAY

15

As new home awaits, art museum plans final ‘outside’ show

By Camila Cepero

Although it’s only been one year since groundbreaking, the Institute of Contemporary Art Miami’s new permanent 37,500-squarefoot Design District home is about to start seeing the end of construction as the museum prepares for the opening of a final exhibition in its temporary space.

The museum’s main structural components were finished over the summer, meaning that the building’s foundation, walls and most exterior structures have been completed.

Since then, contractors have continued to work on the exterior façades as well as the smaller but essential components of the building like wiring and plumbing, said Ellen Salpeter, director of the Institute of Contemporary Art Miami.

The southern façade, which will serve as the main entrance to the museum, will feature a geometric design of interlocking metal triangles and color-changing lighting panels. The northern façade contrasts the entrance with windows that will bring natural light into the museum.

The museum’s 15,000-squarefoot sculpture garden is also wrapping up.

The new building is to feature more than 20,000 square feet of exhibition galleries, which are being framed in the internal space right now, Ms. Salpeter said.

“We are opening to the public in about a year,” she said, “but we haven’t announced a firm date or opening program.”

The new building’s highlights include exhibition space and the sculpture garden on Northeast 41st Street. Inside the building will be multi-purpose areas along with gallery spaces, all of which are to feature state-of-the-art acoustic and lighting technologies.

The building’s design was the first US project for Spanish architecture firm Aranguren & Gallegos Arquitectos, which

This is the northern glass façade of the Institute of Contemporary Art Miami rising in the Design District.

worked in collaboration with local and the sculpture garden, which firm Wolfberg Alvarez & Partners. will have the feeling of flowing Visitors inside the museum will into the ground-level galleries.

The design, construction and have views of the Design District

land acquisition have been entirely funded by a major capital gift from Irma and Norman Braman, the auto dealership magnate.

Photo by Maxine Usdan

During construction, Institute of Contemporary Art Miami has focused in a site at 4040 NE Second Ave.

Throughout the construction of the new building, the Institute of Contemporary Art Miami has focused its operations in its temporary location in the Moore Building at 4040 NE Second Ave. Now, as the end of construction nears, the museum prepares for the opening of its final exhibition at the temporary space to coincide with Miami Art Week.

“One Day on Success Street,” a collection of work by German artist Thomas Bayrle, will open Nov. 29. It will be the first American museum presentation dedicated to the artist.

According to the museum, the exhibition traces Bayrle’s profound observations of human civilization – particularly through developments in technology and our environments – over the course of his nearly 50-year career and across a range of mediums.

A centerpiece of the exhibition will be Wire Madonna, a newly commissioned site-specific installation created for the Institute of Contemporary Art Miami’s Atrium Gallery in the Moore Building that sees the artist interpreting the icon of Madonna and Child in steel, marking the artist’s largest sculpture to date.

That last exhibition will run through early spring and close in late March, at which point the museum “will go dark,” Ms. Salpeter said.

Although the museum will keep running most of its other programming, such as its educational and outreach programming and its recently launched Art + Research Center, anything on the exhibition front will end with the closing of the Bayrle show.

The museum will remain free to the public – just as it is now – when it moves into the new building, Ms. Salpeter said.

“We’re excited to move into our permanent home,” she said.

“We’re excited to be built into the fabric of the community.”

District’s limited commercial space requires creativity

By Catherine Lackner

Commercial real estate in the Design District has a bright future, but limited space will force entrants into the area to be creative, observers say.

Michael T. Fay, Avison Young principal and managing director

Gradual melding of nearby areas will lift values up: David Siddons.

for Miami, recalls an era when the district was teeming with furniture showrooms that catered to the decorating trade. “This was in the early ’80s, before the Design Center of the Americas in Broward County was built,” said Mr. Fay, who was born and raised here. “Soon, there were so many foreclosures taking place that you could pick up properties in the Design District and on Biscayne Boulevard for pennies on the dollar.

“Fast forward to the resurgence we’re having now. Craig Robins came in and transformed it. Real dollars are being invested in the Design District.”

The area’s rebirth took years, and coincided with the boom in Wynwood, Mr. Fay said. “The two areas feed off each other.”

The Design District commands high prices across the board, he said, and because there isn’t room for many new buildings, structures in the surrounding neighborhoods will be torn down and rebuilt or otherwise repurposed.

“A lot has taken place, and in my opinion there are great opportunities here,” Mr. Fay said. “There

have to be new ideas about how to assemble properties.”

“It’s become extremely expensive to rent space in this area,” said David Siddons, industry analyst and broker with EWM Realty International. “In the beginning, we saw tenants moving from Miami Beach to the Design District, but then they decided they couldn’t afford to be here. Only the Tom Fords of the world can.”

What will keep commercial values high – and people filling the cafes, sidewalks and shops – will be the gradual melding of the Design District, Midtown and Wynwood, said Mr. Siddons, who recently researched and produced a 62-page analysis called the 2016 Miami Complete Residential Real Estate Report.

“When the three become a seamless walk, then you will have

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that urban continuity that is so important,” he said. “Miami tends to have extreme pockets, because development happens all at once,” and not necessarily in relation to the surrounding neighborhood, he said.

“Over time, the pieces of the chain are going to come together,” Mr. Siddons continued. “You will have that urban familiarity. This is the same trajectory New York followed. It happens in any big city.”

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WEEK OF THURSDAY, NOVEMBER 17, 2016

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