Miami Today: Week of Thursday, February 12, 2015

WEEK OF THURSDAY, FEBRUARY 12, 2015

A Singular Voice in an Evolving City

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Rising office demand finds little added space, raising rates, pg. 15 BONDS FOR THE STADIUM: The MiamiDade County Commission has approved issuance of $100 million in taxable industrial revenues bonds to fund part of the reconstruction of Sun Life Stadium in Miami Gardens. Sun Life Stadium, home to the Miami Dolphins, is to undergo a $425 million reconstruction. Of that, $275 million is to be covered by the stadium’s owners, and another $50 million is to be covered through a commercial loan program. The Miami-Dade County Industrial Development Authority (IDA) is an entity separate from county government that issues bonds on behalf of projects deemed economically feasible. Neither IDA nor the county is liable to pay off the bonds. The MiamiDade County Commission has to approve the issuance as a check on IDA. Reconstruction at the stadium is to be finished in 2017.

Innovative re-design at complex prevents future problems, pg. 16

THE ACHIEVER

BY CATHERINE LACKNER

NO TO WAL-MART, THEME PARK: The Pinecrest Village Council has voted to oppose development in an area in South Miami-Dade County that’s home to pine rockland. Pine rockland harbors endangered plant and animal species. The targeted area is near Zoo Miami and is officially the Richmond Pineland complex. Two developments have been proposed for the area: Coral Reef Commons, which is to include a WalMart, and Miami Wilds, a theme park to include water rides. The developer behind Coral Reef Commons, Ram Real Estate, has put certain plans on hold to negotiate with federal authorities, according to county records. The county has also retained the authority to pull any county permit to Ram. In addition, county and federal officials are negotiating the logistics of the Miami Wilds development to make sure the theme park wouldn’t harm the environmental site.

BIKE RACKS REMOVED: After a flurry of complaints from Brickell residents, Miami city commissioners ordered removal of new bikesharing stations from Brickell Bay Drive and 25th Road. The Citi Bike program operated by Decobike LLC is Miami’s bike sharing and rental system. Citi Bike is intended to provide an additional transportation option. Working with city staff, the rental islands were placed in nearly 50 locations throughout the city late last year. Complaints were lodged immediately by condo dwellers in Brickell, saying the Citi Bike stations were taking up valuable parking spaces and impacting the view of Biscayne Bay. Racks at these locations were ordered removed: 801, 1408 and 1440 Brickell Bay Drive and at 25th Road and Brickell Avenue. The motion commissioners approved said those racks are to be “repositioned” in accordance with the commission’s District Two office, and the advice and consent of adjacent property owners will be sought.

Photo by Marlene Quaroni

Jose Antonio Hernandez-Solaun

Easton Group president takes on community roles The profile is on Page 4

County flyspecking might sink boat show plan

BY JOHN CHARLES ROBBINS

Concerned about the City of Miami’s intentions for Virginia Key, Miami-Dade Mayor Carlos Gimenez is looking into deed restrictions that might impact city plans to bring the Miami International Boat Show and other events to the barrier island.

That’s the word from Deputy Mayor Alina Hudak, who met with worried Key Biscayne Village Council members Friday.

When it comes to the city’s intent to spend $16 million to create a “flex” park around Marine Stadium in a bid to bring the boat show to the Key, “Our mayor has very real concerns about the possible excessive nature of the improvements and footprints being discussed,” Ms. Hudak said.

“The mayor is concerned about the implications” of these planned changes on Rickenbacker Causeway, Virginia Key and Key Biscayne, she said.

Ms. Hudak said the mayor asked her to speak with county attorneys to research deed issues. The county deeded the island to the city in 1963 with stipulations that it be used for the marine stadium.

AGENDA

Congested boulevard may shrink

The iconic concrete stadium has rotted unused for more than two decades after Hurricane Andrew hit the area in 1992.

In January, city commissioners approved a license with the National Marine Manufacturers Association to host the 2016 boat show on Virginia Key. The association is to pay the city $1.1 million a year and 50% of food and beverage sales income. The city’s $16 million in improvements don’t include restoration of the stadium.

County Commissioner Xavier Suarez, who represents the area and spoke at the village council meeting, said his reading of the deed shows the city is restricted to using the property for marine stadium and “allied uses.”

He said he views that to mean ancillary or related uses to the stadium.

Word that county officials are investigating the legality of the city’s actions coincides with the Village of Key Biscayne suing the city, basically to force Miami into formal dispute resolution over the use of Virginia Key and the stadium.

Village leaders say they’re concerned about the adverse impact of high-traffic events like the boat show choking off the only access to

their homes. They are also upset because they feel Miami administrators ignored their concerns about uses of Virginia Key. At Friday’s meeting: Mr. Suarez said he has long opposed commercial development on Virginia Key, dating to his years as Miami mayor.

He has offered to mediate the dispute between Miami and Key Biscayne.

Key Biscayne’s elected officials called for creation of a Rickenbacker Causeway Authority, funded by tolls motorists pay on the route.

Village leaders proposed a toll on the more than 125,000 cyclists who ride the causeway yearly.

County commissioners may consider raising the toll motorists pay on the causeway by 25 cents to make the roadway and bridges safer, attendees learned.

Key Biscayne Mayor Mayra Peña Lindsay suggested a design competition on the best uses for Virginia Key and the causeway.

In his support of controlling uses on Virginia Key, Mr. Suarez said, “We obviously have to control the number of people using the causeway.”

DOWNTOWN RAIL LINE’S WINDOW TIGHT, CASH SHORT ...

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VIEWPOINT: HANDHELD DEVICES AT POWER LUNCHES ...

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TEAM TAKES STEPS TO PEDESTRIAN-FRIENDLY GABLES ...

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MIAMI AT THE WHEEL FOR LUXURY CAR SALES FIGURES ... 11

Newly christened Biscayne Green is moving ahead in an ambitious project to narrow a stretch of congested Biscayne Boulevard downtown from Northeast Eighth Street south to Biscayne Boulevard Way. “The Miami DDA is in the process of building a three-dimension model that should be ready in the next two to three weeks,” Eric Riel Jr., team leader of planning, design and transportation for Miami’s Downtown Development Authority, said Friday.

It will be used, he said, for meetings with state officials “with the goal of securing buyin and support to move this project forward.”

Last April, authority directors voted to reduce driving lanes from eight to four or six to make way for grass, trees and pedestrians. The plan shaves parking spaces from 388 to 187, costing the Miami Parking Authority $1.2 million a year revenue.

The plan would replace a shared bicycle lane with a dedicated lane and widen sidewalks.

Cost for medians is $24 million.

“We have an opportunity to create a grand promenade. There are not many other areas where this could be done,” said authority board member Jerome Hollo in April. “This will be something great.” Fewer lanes, he said, will slow traffic, making pedestrians safer.

A city study concluded that traffic impact would be minimal once lanes were closed, authority documents say.

For the project to advance, the Florida Department of Transportation must agree to reduce lanes and the parking authority must trim parking spaces and reconfigure what’s left. The plan calls for some parking at offpeak times only.

The development authority must enlist Miami-Dade County to redesign intersections, develop a phasing plan, then submit construction documents to relevant agencies. It’s the authority’s task to find funds for it all.

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MIAMI TODAY

TODAY’S NEWS

WEEK OF THURSDAY, FEBRUARY 12, 2015

THE INSIDER TAXPAYER FUND REQUEST: Rosal Westview LLC, which wants to build a business park on the now-vacant site of the former Westview Country Club, has requested $9.5 million in taxpayer funding for its project. Miami-Dade County elected officials are to vote on the request today (2/12) at the Economic Prosperity Committee meeting. The developer has requested the money from a county program whereby bonds are issued to reimburse the infrastructure costs for pre-approved projects.

The bond debt is paid off by taxpayers. Originally, Rosal Westview had applied for $14 million in financing for infrastructure but after talks with the county, it lowered its request to $9.5 million. Today’s vote is preliminary.

NEW BANK HEADQUARTERS: Eastern National Bank, one of the oldest community banks in Miami-Dade, will relocate its headquarters from Brickell to Dadeland @ 9700, an 11-story, 67,142-square-foot building at 9700 S Dixie Highway (US 1). The bank sold its current headquarters building at 799 Brickell Plaza, where it has rePhoto by Maxine Usdan mained, to Swire Properties in 2011 for $13.1 million. Tri-Rail’s Jack Stephens says “It scares me to death” that the agency must get $69 million in two months.

That site is part of the now-rising Brickell City Centre project. The 21,492-square-foot lease in Dadeland was brokered by Avison Young principal and managDonna Abood ing director Donna Abood and leasing team members Joe Abood and Ericka Witkowski. The building now has 100% occupancy.

CONVERGENCE: At the request of residents of Freeman Street, the Miami City Commission approved cutting off vehicle access to the street at Tigertail Avenue. The resolution authorizes installation of a barricade there at an estimated cost of $25,000. Property owners in the residential neighborhood along Freeman Street had expressed concern about the unsafe five-way intersection at Tigertail Avenue, Southwest 22nd Avenue and Freeman Street, city staff said. The Miami-Dade County Public Works/Waste Management Department didn’t object to the request.

BOOM-BOOM: The city’s development boom might lead to a code amendment by Miami commissioners. They preliminarily approved an amendment to the noise ordinance to allow City Manager Daniel Alfonso to select someone who can also authorize construction noise waivers.

City code prohibits the use of certain construction equipment between 6 p.m. and 8 the following morning. But use of construction equipment during the prohibited hours “may be necessary to eliminate or reduce any dangerous or hazardous condition which endangers life or property,” so the code grants the city manager authority to permit use of construction equipment during those periods. A staff memo on the change says the city has seen increased construction in recent years and, as a result, more requests for noise waivers.

FLOWER POWER: Miami International Airport handles more than 90% of all flowers imported to the US so it’s not a surprise that the week leading up to Valentine’s Day is a busy one. During this time of the year, daily flower shipments quadruple to 22 million flowers per day. More than 209,000 tons of flowers valued at more than $900 million flow through MIA annually.

STREAMLINING TRAFFIC: Coral Gables Commissioner Frank Quesada proposed on Tuesday adding a member of the city’s Traffic Advisory Board to the downtown Streetscape steering committee or, should it be too late in the process to bring in another member, sending the final Streetscape design recommendation to the board before it comes before the commission.

Given that traffic is the focal point everyone is thinking about, he said, he’d like greater input on the Streetscape project for Miracle Mile and Giralda Avenue from experts who can advise on the best Frank Quesada situation during the build-out and beyond. Commissioners ultimately decided that appointing a member of the Traffic Advisory Board might lead to requests from other boards to have a seat on the steering committee. Rather, city staff is to provide regular briefings on the steering committee’s progress to the Traffic Advisory Board. (See step-by-step design progress, page 9.)

ILLUMINATION: To demonstrate the power of lighting to create and define a public space, Friends of the Underline, with funding by The Miami Foundation, will light up Vizcaya Metrorail Station a different color nightly from Feb. 14 to 21. “The Underline: In Lights” is a winner of The Miami Foundation’s 2014 Public Space Challenge, a community-wide ideas contest funding projects improving, activating and creating public spaces in Miami-Dade County. Viewers can tweet about this public transit light project using #underlinelights, #lovetheunderline @theunderlinemia. The Underline is the planned transformation of the 10-mile M-Path beneath the Metrorail from the Miami River to Dadeland South into a linear park to enhance connectivity, mobility and biking safety. Details: www.theunderline.org A FRESH APPROACH: Bayside Marketplace is hard at work on its major redevelopment plan, says Pam Weller, senior general manager at Bayside. The 27-year-old retail, restaurant and entertainment complex is north of Bayfront Park, on about 17 acres of city-owned waterfront leased to Bayside Marketplace LLC. Last year city commissioners and city voters OK’d lease extensions that require the company to make $27 million to $35 million in renovations to the dual-level open-air market. The deal includes adding about 17,000 square feet of retail and expanding the parking Pam Weller garages. Ms. Weller said this week they are diligently working toward the final redevelopment design and remerchandising. The work is to include a complete rebuilding of the food court.

LIKE A ROCK: The Allen Morris Co. has been selected as tenant representative for luxury European jeweler ALO diamonds and the company’s US expansion initiative. The luxury brand will add to its portfolio of 12 locations internationally.

Tri-Rail’s ‘only shot’ at downtown has months to go, $69 million gap

BY L IDIA DINKOVA

Plans to expand a passenger train’s service area to downtown Miami depend on obtaining $69 million in public funding within two months.

The South Florida Regional Transportation Authority (SFRTA), the public agency that runs Tri-Rail passengers trains, wants to expand Tri-Rail service to downtown Miami.

The issue: The expansion would cost about $69 million.

The authority, which says it doesn’t have the money, has about two months at the most to solidify funding options. If plans don’t pan out, the authority says it would have missed the one-time opportunity to provide service to downtown Miami.

“It scares me to death,” said Jack Stephens, authority executive director.

“I don’t know what we do if we fail in this effort,” he added.

“I don’t see another way to get into downtown Miami other than in the same spot that All Aboard Florida has determined we can share with them at our expense.”

All Aboard Florida, a subsidiary of Coral Gables-based Florida East Coast Industries, plans to run an express passenger train to link Miami and Orlando. All Aboard is building a major train station, Miami Central, in downtown Miami.

It has said it can accommodate Tri-Rail trains at that station. But public funding is needed to cover the $69 million cost.

Of the $69 million infrastructure cost, about $20 million is needed specifically for rail infrastructure, or to cover the cost of work on the actual tracks. That includes upgrades at crossings, warning signals and dispatch upgrades. Another $1 million of the $69 million overall cost is needed to allow SFRTA to use the Florida East Coast Railway corridor, meaning the same FEC tracks All Aboard Florida will use in Miami-Dade County.

Mr. Stephens said that the authority is to seek this $21 million funding from the Florida Department of Transportation (FDOT).

“We think that’s a legitimate

role for FDOT to assume,” Mr. Stephens said.

What’s left? About $48 million needed specifically for infrastructure upgrades at Miami Central station. The upgrades are needed in order for Tri-Rail trains to pull into the station.

So far, the most feasible option has been tax-increment financing from the Southeast Overtown/ Park West Community Redevelopment Agency.

The CRA includes the area where Miami Central is to be built. Under tax-increment financing, future property tax yields, which are expected to increase once the Miami Central station rises in downtown, would be dedicated to reimbursing the infrastructure cost for accommodating Tri-Rail trains at All Aboard’s station.

Mr. Stephens said that All Aboard Florida could build the infrastructure needed for TriRail trains at Miami Central and then be reimbursed over time.

Infrastructure Tri-Rail needs in order for trains to stop at Miami Central includes escalators, walls, ceilings, ticket booths, and a platform designated just for Tri-Rail trains.

Mr. Stephens said he has been meeting with Miami-Dade County, City of Miami and CRA voting officials to discuss funding options.

“In terms of understanding the vision and what we’re trying to accomplish, almost all of them were able to see the value,” Mr. Stephens said. “The problem is when we start carving up resources. The issue is this is a one-time good deal.”

Miami City Commissioner Keon Hardemon, who is also the Southeast Overtown/Park West CRA board chair, didn’t return a call from Miami Today requesting comment on the issue.

The push to expand Tri-Rail service began recently, perhaps as a result of a state-funded track upgrade. The upgrade allows trains running on CSX tracks in West Miami-Dade to switch onto FEC tracks that run in the eastern part of the county. The switch would occur at Northwest 71st Street.

While CSX and FEC tracks meet there, only recently was the infrastructure added that would allow a train to switch from one

set of tracks onto the other.

In Miami-Dade County, TriRail trains currently run on CSX tracks in the western part of the county.

Supporters of the initiative to bring Tri-Rail trains to downtown Miami say that it would provide passengers a one-seat ride from as far north as Palm Beach County to downtown Miami. In addition, they say the $69 million cost is much less than what would be needed if SFRTA were doing the expansion on its own, as SFRTA doesn’t have to acquire land for this expansion.

If plans pan out, the authority would divert about every second train toward downtown Miami.

If he had to put a deadline for obtaining the $49 million needed for the Tri-Rail expansion, Mr. Stephens said it’s between six and eight weeks.

“And I’m government. I’m not used to moving this fast,” he said.

At some point, he added, All Aboard Florida is “going to have to make a decision and either have a level of comfort that all these partners will provide the funding or they’re going to have to take care of their investment.

They can’t hold off forever.”

TODAY’S NEWS

WEEK OF THURSDAY, FEBRUARY 12, 2015

MIAMI TODAY

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With US outreach to Cuba, Gables mayor became celebrity

BY SUSAN DANSEYAR

In his own quiet way, Coral Gables’ own Mayor Jim Cason is a media celebrity now that he’s receiving calls at a fast and furious pace to hear his views on the US ending a five-decade Cuban embargo.

“The phone started to ring on Dec. 17,” he told Miami Today in reference to President Obama’s announcement of wanting to reunify ties with the island country from which a number of Miami residents have emigrated over the years.

“Having served for three years in Cuba [as chief of the US

Interests Section in Havana from Sept. 10, 2002, to Sept. 10, 2005], I’m a local source who can talk about issues that are being discussed here,” Mr. Cason said.

Unlike those in the state department who might be limited in what they can say as it’s so early in the process, Mayor Cason is free to join the debate.

He’s fluent in Spanish and said people often refer to him as the only “American Cuban in Florida.”

So far, Mayor Cason has been interviewed for local Spanish television and radio shows, National Public Radio (twice), Al

Mayor Jim Cason, who headed US operations in Cuba for years, has become global media expert.

Jazeera America, the New York Times, the Washington Post and a number of Florida newspapers. On his schedule are ap-

pearances before the John Hopkins University alumni club in Miami and the Dartmouth College alumni club in New Hampshire in May. “At last count, it was 35,” Mr. Cason said this week of the interviews he’s conducted since December.

It’s no surprise to him that the calls and requests to speak keep coming in.

“Everyone knows my background [in Cuba] through Google,” Mr. Cason said. In addition, he serves as president of the Center for a Free Cuba, an independent, non-partisan institution established in November

1997 and dedicated to promoting human rights and a transition to democracy on the island. The center gathers and disseminates information about Cuba and Cubans to the media, non-government organizations and the international community.

Just as important is Mr. Cason’s relationship with Cubans here.

“The Cuban community here knows me and the issues being discussed are ones they know I’m familiar with,” he said.

“When I walk around MiamiDade, Cubans always come up to me and say ‘Thank you for what you did for me in Cuba.’”

Four-tier jump in Miami’s bond ratings a seal of approval

BY JOHN CHARLES ROBBINS

It pays to save.

Standard and Poor’s Ratings Services has upgraded the City of Miami’s primary bond rating four rating tiers from BBB to A+ due to the city’s improved management score reflecting adherence to robust policies and practices as well as improved budgetary flexibility.

The agency cited building up cash reserves as one of several smart moves.

The agency also revised its rating on the city’s general obligation, non ad valorem, and limited tax debt, bonds from BBB- to A. Among reasons Standard and Poor’s gave for the improved outlook are: a strong economy in the region, strong budgetary flexibility and performance with increasing reserves for the past few years, a structurally balanced 2015 budget, very strong liquidity and very strong cash levels to cover both debt service and operating expenditures, and a strong institutional framework.

“This is outstanding news from S&P,” said Mayor Tomás Regalado on Monday.

“The steps taken by the city commis-

sion during the financial downturn and the city management’s steps since are now having the effects for which we had hoped and expected,” he said.

“We are very pleased about this ratings upgrade,” said City Manager Daniel Alfonso. “The ratings increase will reduce the city’s future costs by strengthening the city’s position on potential future financings, other financial contract negotiations, and future public-private partnerships.”

S&P revised Miami’s management Tomás Regalado score to adequate from weak reflecting its view of the city’s conservative budgeting practices, robust planning documents and progress toward meeting its three-pronged reserve policy.

The agency further noted that the professionals currently in top financial management roles have considerable experience and the city’s financial operations have improved in recent years.

Like many municipalities, Miami has emerged from a period of severe dis-

tress associated with the housing and market crashes at the end of the past decade, the agency said. After four consecutive years of dwindling reserves, Miami has added to those reserves in the last several years.

Last November, city officials announced they had exceeded their own projections in achieving a healthy fund balance – a requirement built into the city’s own financial priorities ordinance.

When the books were officially closed on fis- Daniel Alfonso cal 2013-14, the city had a balance of about $28.4 million. That amount, coupled with reserves from recent years, took the overall balance to $103.9 million.

“We’re above the threshold,” Christopher Rose, Office of Management and Budget director, told commissioners in November.

It was a financial milestone a long time coming, accomplished by growing reserves for five years in a row, city officials said.

The most dramatic growth has been

in the past few years. Consider that the city’s general fund reserve amounted to just $13.4 million in fiscal 2010.

For several years officials have been working to build a more comfortable budget surplus, after periods of concern that cash reserves were dangerously low.

This saving trend follows an ordinance that was enacted after the city came close to bankruptcy in the 1990s.

The danger got bad enough that the governor created an oversight board, and when that board left, an ordinance remained requiring reserves at set levels so the city wouldn’t face the same peril again.

The city’s Financial Integrity Ordinance requires a reserve of 20% of operating revenues in the general fund.

Based on the most recent forecast last year, the city wasn’t expecting to reach the 20% threshold until fiscal 2017.

Concerns noted in the S&P report included turnover in key management and finance positions, weak debt and contingent liabilities (pension and other post-employment benefit liabilities), continuing labor negotiations, and legal proceedings against the city.

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TODAY’S NEWS

MIAMI TODAY

WEEK OF THURSDAY, FEBRUARY 12, 2015

Adjacent landowners to split up 313 unused Miami alleys

BY JOHN CHARLES ROBBINS

More than 300 unused public alleys in the City of Miami are being closed and vacated, with the land reverting to the abutting property owners.

City commissioners voted 4 to 1 in approving the final ordinance vacating the unused alleys. Commissioner Keon Hardemon cast the lone no vote. He had worked to make it easier for abutting property owners to opt out of the change or appeal the closures.

The ordinance is effective March 23.

The change passed on first reading in May 2014. What followed was work on the list of impacted alleys and the wording of the appeals process, and workshops with affected property owners through work of the Public Works Department and the City Attorney’s Office.

Eduardo Santamaria, public works director, told the commission how staff went through the “painstaking process” of identifying, listing and publishing the 313 unused alleys. All property owners affected by the change were notified, and workshops were held to explain the process, he said.

Many of the identified unused alleys were alleys “only on paper,” and have never been improved, developed or used as traditional public alleys, said Mr. Santamaria.

Numerous public alleys within the city haven’t been paved and aren’t used for any access, including public service and emergency vehicles, a staff analysis states. “These alleys may present a security and illegal dumping problem for abutting property owners and are difficult to properly maintain by city forces,” it says.

Adoption of the ordinance hands “ownership, maintenance and liability” for these alleys to the abutting property owners, “thereby enabling owners to secure their property and maintain the alley as part of their yards,” the analysis states.

The shift in ownership will also increase the size of the abutting property and possibly its appraised value. Any established easement will be automatically reserved in the vacated alleys for installation, maintenance and operation of existing and future utilities.

Grady Muhammad, a community advocate, praised vacating these unpaved and unused alleys, calling it a “great thing

to do.” Many of these narrow strips of land had become “havens for crack addicts” and “dumping grounds” for trash.

The move was a “life quality, safety issue,” he told the commissioners.

Some adjacent property owners objected to the alley closures, fearing it would cut off access to the backend of businesses.

That issue came up quite a bit, but the outcome is that the land will be divided and revert to the original owners, that being the abutting land owners, said Mr. Santamaria.

In most cases, it will mean a higher property tax bill, he said. A property appraisal official with Miami-Dade County estimates the average impact on tax bills will be less than $150 a year, according to Mr. Santamaria. A few people who happen to own several lots on unused alleys might see a higher property tax bill as a result of gaining new land, up to $800 in some cases, he said.

Commission Chairman Wifredo “Willy” Gort favored the measure, noting a big problem in his district with illegal dumping in these out-of-the way, unused alleys over the years.

To those continuing to complain the move would shut them off from the alleyways, Mr. Gort said the property was being given back to the adjoining owners for their use, asking Mr. Santamaria to back him up on his declaration.

“Yes, it can be used by the [abutting owners],” responded Mr. Santamaria.

Commissioner Francis Suarez supported the move, saying it is one more tool for city officials to combat illegal dumping, crime and drug use.

Mayor Tomás Regalado said the entire discussion on the vacating of these unused alleys should be about the safety of the public. He mentioned that in one Shenandoah neighborhood five houses abutting an unused alley had been burglarized from the alley. Investigating police found evidence of drug use in the alley, the mayor said. These property owners can now improve the land or work to close off that back access, he said.

The ordinance has an appeal process, with the city’s Planning, Zoning and Appeals Board hearing any appeals. As part of an appeal, the board may consider proof of financial hardship.

Miami stays at the top in luxury vehicle sales

No stopping, it seems, for foreign cash inflow

BY SUSAN DANSEYAR

BY SUSAN D ANSEYAR

Luxury car sales in Miami remain hot along with the city’s reputation as one of the country’s top automotive markets, dealers say.

“The fast-paced lifestyle, the culture and the year-round tropical weather all play a role in consistently ranking Miami at the top,” said Christy Cartaya, director of marketing and communications for Coral Gables-headquartered dealership The Collection.

For her company, 2014 was a record-breaking year, according to Ms. Cartaya. In fact, she told Miami Today it was the most successful year in The Collection’s history with almost 5,000 new and pre-owned cars sold.

“That means that the bar is set very high for 2015,” Ms. Cartaya said. Thanks in large part to a loyal customer base, she said, 2015 is off to a strong start.

So far this year, the top-selling cars at The Collection are Audi A3 (starting at $29,900), Porsche Macan S (starting at $49,900), Porsche 911 (starting at $84,300) Maserati Ghibli (starting at $69,800) and Ferrari California T (starting at $219,000).

Ed Williamson, chairman and CEO of Williamson CadillacBuick-GMC in Miami, said his dealership has waiting lists right now for the Cadillac Escalade (listed for about $63,745) and GMC Yukon Denali (listed for about $64,520).

Those were the “hottest” cars at Williamson for 2014, he said.

“Demand was greater than our supply and still is,” Mr. Williamson said.

The market segment for luxury cars – with some prices more than $100,000 – is pretty narrow, Mr. Williamson said. “Anything north of that [price], the atmosphere gets pretty thin.”

“Demand was greater than our supply and still is”: Ed Williamson.

He believes the population buying such expensive cars is not usually affected by the overall economy. Mr. Williamson said with the economy in a healthy condition right now, most car manufacturers reported in February that January 2015 sales were up double digits, year over year.

A total of 2,950 luxury cars were sold countywide in the fourth quarter of 2014, up from 2,628 during the third quarter, according to Cross-Sell Reports, a division of Dominion Dealer Solutions, a Virginia-based firm that tracks auto dealership sales nationwide. The makes included The Mercedes 350S Series, Audi S8 and Jaguar XJ. The number of specialty cars sold in Miami-Dade between Oct. 14 and Dec. 14 was 780, virtually the same compared with 781 between April 14 and June 14. The makes included Audi TT, Bentley GTC V8 and Porsche 911.

Both markets were dominated by imports including BMW, Mercedes-Benz, Lexus, Audi and Infiniti.

Dominion’s Cross-Sell Report lists top sellers, which include local dealerships Braman Motors with 1,108 sales in the fourth quarter, Kendall Toyota with 1,250, South Motors Co. of Dade with 1,504 and Braman Honda with 939.

Mr. Williamson said there wasn’t a noticeable difference in total sales between the third (647 cars) and fourth (672) quarters of 2014.

He said in the luxury car business, “the only difference between the two quarters was the availability of some really hot vehicles.”

Miami-Dade continues to see important inflow of foreign capital from Latin America as well as Europe and Asia, and business insiders believe the trend will carry on for the foreseeable future.

The money, which comes in primarily through wire transfer, is fairly steady from Latin America, according to David Schwartz, president and CEO of the Florida International Bankers Association. Miami, he said, attracts capital from Latin America for a number of reasons, including the demographics of this city.

The Latin American countries are all represented in Miami, said Ezra Katz, chairman of Aztec Group Inc. “They like the familiarity, that their language is widely spoken here,” he said.

“Here, we look at foreign investors as a norm and they’re welcome, treated well.”

For the past two decades, Miami has been an important area for foreign exchange, Mr. Katz said. In addition to South Americans, he said European, Canadian and now some Chinese investors have been drawn to the city.

Miami is seeing continued inflow of capital from all over the world for income-producing properties, second homes and homes they can rent that they hope will gain value in the future, said Harvey Hernandez, chairman and managing director of Newgard Development Group.

“The perception is that there is no better place right now than the US and South Florida, in particular, is even better because we are undervalued in comparison with other metropolitan cities like New York,” he said. Some foreign investors, Mr. Hernandez said, are receiving a 5% return on their

investment.

During the economic downfall when real estate values plummeted, Mr. Schwartz said, Miami was attractive to any number of people coming from overseas who wanted to buy a second home. That interest continues.

“We’re starting to see some foreign capital coming from Asia, with China and Hong Kong as the principal drivers, and there have been more inquiries from Asia,” he said. “Miami is a gateway to Latin America and, with the Asian interest in Latin American investment, it makes sense to be in the jumping off point.”

South Florida has grown as a financial center, Mr. Schwartz said, second only to New York City nationally and in the top 10 global financial centers. With that designation, he sees foreign capital flow into the city continuing.

The Miami market has been impacted positively for the past five years by foreign investors, Mr. Katz said. “We’re a United Nations,” he said.

The strong dollar has impact on investments, Mr. Katz said, but it’s too speculative to gage influence right now.

“We will always be a money center where foreign investors will use the banks or other options to invest in business or real estate,” he said.

The euro has devaluated and is expected to devaluate even more, Mr. Hernandez said. “The perception is that the dollar will strengthen even more, so many people feel they should jump at the chance to invest here,” he said. And it’s not just the euro and Russian ruble that are sinking, Mr. Hernandez said, pointing out the Colombian peso devalued 20% in 120 days or less. “[Foreign investors] feel the must get their money out before it’s devalued even more.”

WEEK OF THURSDAY, FEBRUARY 12, 2015

TODAY’S NEWS

MIAMI TODAY

11

A redevelopment area to kick goal for soccer, UM’s football in play

BY L IDIA DINKOVA

About a year after the MiamiDade County Commission decided a Major League Soccer stadium is not to open at PortMiami, a county commissioner is now nudging discussions toward a different site.

Miami Beckham United, a group led by British former professional soccer player David Beckham, wants to open a Major League Soccer franchise in Greater Miami. Among other sites, the organization was considering PortMiami, which is county owned. But the county commission eliminated that as an option after mounting opposition from an alliance led by Royal Caribbean Cruises, which has its headquarters at the port.

Now, County Commissioner Bruno Barreiro has brought up another possible site, this one landlocked and adjacent to the existing Marlins Park.

The site is the location of the former Orange Bowl Stadium.

This isn’t the first time this location has been brought up as a proposed future Major League Soccer stadium site. Major League Soccer scouted the site years ago. Discussions for building an MLS stadium there were floated again last spring.

At the time, representatives for Miami Beckham United didn’t express much enthusiasm for the location, and a representative called it “spiritually tainted,” in reference to the deal struck to build Marlins Park that ultimately left taxpayers to foot a chunk of the bill.

But this time, Miami Beckham United offered what appears to be a milder response to the proposal.

“Miami Beckham United appreciates the support put forth

by Commissioner Barreiro and his fellow commissioners.…

While the prospect of building a stadium near the site of the former Orange Bowl is of interest, a number of viable options are on the table. In the end, our goal is to identify a stadium site that meets the needs of our fans, our club and the league,” read a statement released by a Miami Beckham United spokesman.

David Beckham told the BBC this week that an announcement on the project will come within “the next couple of months” and conceded that the delays have been “frustrating.”

Mr. Barreiro’s resolution directs the county administration to “negotiate and finalize the terms of agreements” for the development of an MLS soccer stadium at the former site of the Orange Bowl Stadium.

A Miami-Dade County Commission committee, the Economic Prosperity Committee, is to vote on the legislation today (2/12).

The vote is considered preliminary and is more of a recommendation to the full county commission, which has final say.

According to the proposed

legislation, the agreements are to spell out that the county won’t be on the hook to fund stadium construction costs and that the developer is responsible for funding the facility.

Yet a proposed piece of legislation also sponsored by Commissioner Barreiro lays the groundwork for a future Community Redevelopment Agency (CRA) district to be formed in the same area where Marlins Park and the proposed site for a future MLS soccer stadium are located. The resolution, also on today’s commission committee agenda, calls for the county to select a consultant who’s to prepare a finding of necessity study, a step forward in creating a CRA. It goes so far as to say that the consultant should look into

Photo by Maxine Usdan

Part of the former Orange Bowl Stadium land beside Marlins Park is envisioned for a pro soccer stadium.

whether the CRA could fund land acquisition for the construction of a dual-purpose stadium that’s to accommodate MLS soccer and University of Miami football. It would also look at using the CRA funds to extend the Metromover transit system to the stadium site.

Generally, governments would designate an area as a CRA as a way to redevelop ar-

eas determined to be ‘slum or blighted.’

The CRA that Mr. Barreiro’s legislation might create would be aptly named the ‘Orange Sports Complex Community Redevelopment Agency.’

If the CRA is created, it would sunset once the sports stadium for UM football and MLS soccer was fully funded.

Mr. Barreiro’s resolutions are

the latest MLS soccer stadium items to be brought up on the Miami-Dade County Commission dais in recent weeks. Just last week, the full commission approved a resolution that called for a stadium at Florida International University to serve as a temporary MLS stadium until a permanent location is secured.

Commissioner Juan Zapata sponsored that item.

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WEEK OF THURSDAY, FEBRUARY 12, 2015

MIAMI TODAY

17

Restoring tax incentives called key to reviving film industry

BY CATHERINE LACKNER

F ILMING IN M IAMI These film permits were issued last week by the Miami-Dade County Mayor’s Office of Film & Entertainment, (305) 375-3288; the Miami Mayor’s Office of Film, Arts & Entertainment, (305) 8603823; and the Miami Beach Office of Arts, Culture and Entertainment-Film and Print Division, (305) 673-7070.

BRENT SPECTOR USA INC. Miami. Renault. Dade County Courthouse, Rickenbacker Causeway, countywide, Miami Beach citywide.

SOAH FILMS LLC. Coral Gables. ITT Tech Grad 2015.

Sunset Park.

TELEMUNDO STUDIOS/NBC UNIVERSAL MEDIA LLC. Miami. Dueños del Paraiso. Swale Parking.

TELEMUNDO STUDIOS/NBC UNIVERSAL MEDIA LLC. Miami. Tierra de Reyes. Swale Parking.

TELEMUNDO STUDIOS/NBC UNIVERSAL MEDIA LLC. Miami. El Jardinero. Unincorporated Miami-Dade County.

D&J PRODUCTIONS LP. LA. The Calling. City of Miami Gardens.

44 BLUE PRODUCTIONS INC. California. Tentatively Rock and a Hard Place. Turner Guilford Knight Correctional Center.

LIMO MIAMI LLC. Miami. Limo Miami TV. Mylander Park, The Gardens.

TRAP WORLD. Miami. The Trap. South Florida Evaluation Center.

FLAMA MEDIA NETWORK LLC. NY. Left Unattended.

Miami Beach citywide.

BEAUFORT 9 FILMS LLC. NY. Teen Vogue Strictly Ballet. Countywide, Miami Beach citywide.

PARAGON PRODUCTIONS SERVICES. Miami Beach.

Stills for 3 People. Miami Beach citywide.

FIRST OPTION PRODUCTIONS INC. Miami Beach. Stills for Winners Canada. Countywide.

STILLMAX. Miami. Stills for Penningtons. Countywide, Miami Beach citywide.

PAZIT INC. Coconut Grove. Stills for Sandmar.

Countywide, Matheson Hammock Park, Miami Beach citywide.

PRO ONE PRODUCTIONS INC. Miami Beach. Stills for Fashion Spring. Countywide, Miami Beach citywide.

PRO ONE PRODUCTIONS INC. Miami Beach. Stills for Fashion House 2. Countywide, Miami Beach citywide.

SPIKE PRODUCTIONS CORP. Biscayne Park. Stills for Madeleine. Brickell Bay Dr., Collins Ave. Between 161st St. and 175th St., Hobie Beach, Miami Beach citywide.

TROPICAL PRODUCTIONS MIAMI. Wellington. Stills for Catalog #1. Countywide, Miami Beach citywide.

SELECT SERVICES INC. Miami. Stills for French Vogue.

Countywide, Miami Beach citywide.

BRODER PRODUCTIONS. Miami Beach. Stills for Old Navy. Crandon Park Beach, Miami Beach citywide.

SHOOTERZ. Michigan. Stills for Lincoln MKX 2016. Port of Miami – Old Port Bridge, William Powell Bridge Turnaround.

MOBILE ARTS INC/MOBILE ARTS PROD SERVICE. Miami Beach. Stills for Andre Wethers. Countywide, Miami Beach citywide.

MAHER AND MAHER. Atlantic Beach. Stills for Chrysler.

Haulover Beach Park, Haulover Park Marina, Port of Miami.

N HOUSE PRODUCTIONS. Miami. Stills for Decathlon.

Countywide, Haulover Beach Park, Key Biscayne, Miami Beach citywide, Rickenbacker Causeway Beaches.

HG PRODUCERS INC. Miami Beach. Stills for HG. Crandon Park Beach.

Photo by Marlene Quaroni

A team of industry leaders will lobby for incentives, said Bruce Orosz.

In 2010, a Jobs for Florida bill designated $242 million over five years for tax credits for film studios and other production companies. By March 2011, $227 million of the credits had been committed, with the ma-

jority going to so-called high impact television shows like “Magic City,” “The Glades” and “Burn Notice,” all of which have since ended. Some of the earmarked incentive monies went back into the program, but not

marketing and tourism, is working with the office of county Mayor Carlos Gimenez and Graham Winick, Miami Beach film and event production manager, to craft a strategy. The Visit Florida tourism organization, which is now aligned with the Film Florida advocacy group, has also taken a role.

“We’ve got great supporters,” Mr. Orosz said.

There might eventually be local incentives, and some other things that could be done independent of Tallahassee, he added. Miami Beach at one time offered a discount card to productions so that they could buy needed goods more economically. “It said, ‘We want you here.’ It sent a message and built goodwill,” Mr. Orosz said.

“We are pushing hard on this piece of business,” he said. “We recognize not only the short-, but also the long-term effects on this community. We need to educate people on how this affects everyone and benefits the tax base.”

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Restoring Florida’s moribund tax incentive program is key to expanding Miami’s film industry, said Bruce Orosz, CEO of ACT Productions and new chairman of the Greater Miami Convention & Visitors Bureau, which has hatched an action plan.

“We have been spending a lot of time, effort and energy putting together a lobbying group of industry leaders and people who have been impacted” by the Legislature’s failure to revive the incentive program for the past two years, he said.

That group includes not only directors and stakeholders who work on productions, but also hoteliers and other businesspeople who benefitted from the television shows and films that were drawn to South Florida several years ago, when incentives were robust.

Demand for Miami and South Florida remains strong, Mr. Orosz said. “We just got back from Sundance [Film Festival] and spoke to people who would love to film here. We have the beaches, the Everglades. Thematically we have it all.”

But “without the incentives, we have lost seven potential TV shows,” he said. “They have gone to Georgia and even Michigan. There’s a show about Miami that’s being filmed in San Diego. It’s crazy. These are incentive tax credits, not taxpayer dollars.”

enough to revive it.

The state’s film incentives come in the form of tax credits based on the scope of the production, number of local people hired, the season in which filming occurs and several other variables. The credits can be sold at the end of the term if the production doesn’t need the equivalent tax relief. Forty states offer incentives, and some of their programs – particularly those in Louisiana, North Carolina and Georgia – are wellfunded and aggressive.

“We want to create a stronger voice, because this is a vital industry that is a very important segment not just on its own, but also for tourism,” Mr. Orosz said.

Because productions can get bonuses for filming off-season, many owners of boutique hotels were able to fill rooms during times when demand is historically low, he added.

Rolando Aedo, the visitors bureau senior vice president for

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Upon what was the award based:

Honoree Contact name: Address of honoree: Phone:

Fax:

Email: (Honoree cannot be employed by or be a subsidiary of the honoring organization. Gold Medal winners from 2013 and 2014 are not eligible.)

If you have questions, call Janel Allen at Miami Today at (786) 515-0394

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