Miami Today: Week of Thursday, March 10, 2016

WEEK OF THURSDAY, MARCH 10, 2016

A Singular Voice in an Evolving City

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DOWNTOWN & BRICKELL

First sign of Brickell condo rents trending down, pg. 13 NO PARKING CRITICIZED: As David Beckham and his Miami Beckham United work out details to build a Major League Soccer stadium at 650 NW Eighth St., city officials are voicing concerns about a large sports facility without a parking garage. The plan calls for purchasing about 10 acres of private and county-owned land for a privately-financed 25,000-seat stadium. Mayor Tomás Regalado recently criticized the plan for not providing parking, saying it’s too far to walk from the Culmer Metrorail station. On March 2, city Off-Street Parking Board member Stephen Nostrand suggested to staff that the authority get involved in talks related to the stadium. He said if Miami Beckham United builds a major sports venue with zero parking it would be a “disaster.”

New 520-room Brickell hotel seeks parking waivers, pg. 14

THE ACHIEVER

BY SUSAN DANSEYAR

NEW KIND OF SHRINE: Los Angeles-based Crystal Cruises, which opened a Miami branch office last year in the Omni, plans a sales headquarters and showroom in the nearby Boulevard Shops to market 48 top-deck residences on each of its Exclusive Class ships. Crystal was purchased last year by the Hong Kong branch of the Genting casino conglomerate, which earlier under another subsidiary had purchased the former Omni Mall and the 20,000-square-foot Boulevard Shops in preparation for a massive casino on the nearby former Miami Herald site. Edie Rodriguez, Crystal president and CEO, is to unveil designs of the plans for the Art Deco-style building at 1401-1417 Biscayne Blvd., which from 1930 to 1943 was home to the Mahi Shrine on its second floor. An invitation to the unveiling says the building, designed by Robert Law Weed, will feature “a chic dining experience, a bistro café, cigar bar” as well as the sales floor for shipboard residences that have been designed at up to 4,000 square feet apiece.

ENERGY EFFICIENCY FOR ALL: Just before county commissioners unanimously approved legislation Tuesday that makes the Property Assessed Clean Energy (PACE) program available to property owners in unincorporated Miami-Dade, Chairman Jean Monestime said it was a great item that’s long overdue. PACE is a voluntary program available in many cities across the nation that provides municipal government financing to participating homeowners for energy efficiency upgrades or renewable energy installations such as solar panels and improved insulation. Homeowners are then assessed annually through their property tax bills for the improvements. This legislation has additional disclosure requirements, according to the county attorney’s office, to protect property owners.

Photo by Marlene Quaroni

Juan Perez

New Miami-Dade police director targets kids and guns The profile is on Page 4

State vows to maintain historic Miami Circle

BY JOHN CHARLES ROBBINS

The Florida Department of State has agreed to pay to clean and maintain the historic Miami Circle site at the mouth of the Miami River in Brickell.

The new agreement was announced Monday at the monthly meeting of the Miami River Commission by Vice Chairman Jay Carmichael.

The new agreement is for four months, after which the state and river commission will review maintenance procedures and needs of the site.

In the meantime, state department officials have begun discussing long-term plans for the site, which could include stations for dog waste bags and disposal, landscaping, new grass, a three-dimensional interpretive display to highlight the buried circle, and other possibilities, according to the river commission.

The site is home to a 2,000-year-old Native American circular artifact, uncovered in 1998 during a pre-construction survey, later designated a National Historic Landmark and now reburied. The Florida Inland Navigation Dis-

AGENDA

Taxi-Uber battle lines re-drawn

trict allocated more than a half-million dollars to shoreline stabilization at the site as part of the 2008 agreement, with the department of state to take care of the sensitive area.

The new agreement calls for the department of state to reimburse the river commission for costs associated with keeping the site clean and the grass mowed. The river commission has hired a company to pick up trash and dog feces three days a week, and another company to mow and trim edges every two weeks.

River commission members were pleased to learn of some movement on keeping the site maintained.

Mr. Carmichael said there’s a “new team” at the department of state, and that change resulted in the new agreement and looking to future plans for the site.

Late last year and early this year, local officials reported that the park-like property had become a mess, from loads of trash accumulating regularly to illegal parking and a lack of maintenance.

At the Jan. 4 river commission meeting a Florida Inland Navigation District representative reported the “sad situation” at the Miami

Circle and unanswered inquires it had made to the state department.

The navigation district was demanding that the state meet its obligations or risk an action to recover the hefty grant.

The river commission agreed to draft a resolution detailing its costs to maintain the site and urge the state to assess the condition of the Miami Circle and, consistent with its agreement with the navigation district, to maintain the property.

In the 2008 agreement the navigation district provided the department of state with a $548,808.86 grant for the Miami Circle Shoreline Stabilization Project.

The matter was brought to the Miami City Commission meeting Jan. 14 and commissioners approved a resolution urging Gov. Rick Scott and the department of state to honor the 2008 agreement “in order to maintain the Project to the standards established in the Agreement, thereby ensuring the Miami Circle is clean and free of debris and garbage and inviting to the public.”

The resolution was authored by City Commissioner Frank Carollo, who serves on the river commission.

County commissioners are taking extraordinary steps to treat equally all vehicle-for-hire services while ensuring users’ safety.

On Tuesday they shelved their rules and set May 3 aside solely to vote on even-handed guidelines for all vehicles for hire.

A Feb. 25 commission workshop discussed seven ordinances to set or reduce regulations fairly for all: taxis, limousines, passenger motor carriers and companies like Uber and Lyft.

On Tuesday, Transit & Mobility Committee Chairman Esteban Bovo Jr. proposed suspending rules requiring that the ordinances go to committee first, instead sending them directly to the full commission for final votes.

There has long been tension between the taxi industry and Uber. Cab drivers claim they can’t compete with drivers not subject to the same regulations.

Uber threatened in January to pull out of Miami-Dade when legislation was proposed to screen drivers and order the same 24-hour insurance coverage required of cabbies.

On Feb. 25 and in prior meetings, Mr. Bovo said he empathizes with struggling cab drivers but hopes they’ll see proposed legislation as a road for the industry to improve standards and embrace change so that it can compete with new technologies and methods.

For his part, Mr. Bovo said, he’s more comfortable taking taxis, but that’s only because it’s what he’s used to. Yet the world is changing, he said, and all must face up to that in order to survive and prosper.

Currently, taxi drivers aren’t fingerprinted in background checks but taxi medallion owners, who often don’t drive cabs, undergo the scrutiny. Commissioners agreed Feb. 25 that if medallion owners are fingerprinted and proposed legislation would require it of Uber and Lyft drivers, it should be required for all ride service operators.

TRANSPORTATION PLANNERS MAY BRING MAYOR IN ...

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RISING RENTS NUDGING BUSINESSES TO BUY OFFICES ...

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VIEWPOINT: REVERSIBLE TRAFFIC LANES A WISE TRY ...

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BRICKELL RETAIL SMOKING, RENTS DOUBLE IN YEAR ...

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PORTMIAMI RECORDS A BLAZING 8% CARGO GROWTH ...

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LONG STUDY BRINGS COUNTY POLICE BODY CAMERAS ...

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64-STORY BRICKELL TOWER ENTERING CONDO RACE ...

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TO PROBE GROWING WATSON ISLAND PARKING NEED...

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MIAMI TODAY

VIEWPOINT

WEEK OF THURSDAY, MARCH 10, 2016

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

Reversible traffic lanes a wise route to reduce congestion Miami-Dade is on a promising road in a multipronged attack on congestion: we’re realizing we can’t soon build our way out of the traffic quagmire so we must use far more e f f i c i e n t l y Michael Lewis what we’ve already built.

That efficiency drive is already optimizing traffic signals to flow the most cars through intersections rapidly yet safely. Now another promising route is being plotted to create lanes that would reverse flows based on the volume of cars.

Our reversible lanes history is limited.

They’re used at Sun Life Stadium when fans flow in and then out. They also helped during rebuilding of bridges linking the mainland with Key Biscayne.

But governments are now wisely scrutinizing regular rather than sporadic use of reversible lanes to maximize flows during peak periods.

First, the Metropolitan Planning Organization at the request of member Rebeca Sosa just agreed to choose by Sept. 30 two experimental sites for reversible lanes.

Second, this week Miami-Dade Commissioner Jose “Pepe” Diaz was asking the county to coordinate reversible lane use with Doral and to try similar deals with other cities too.

Those are smart calls. Areas globally use reversible lanes – some have for more than 50 years. Now, as congestion peaks, we’ve discovered the need to join in.

Road Zipper moves barricades to shift lane configurations on the Golden Gate Bridge.

Reversible lanes to speed traffic offer benefits.

First, they use capacity we often waste.

We build roadways for maximum use – or maximum estimated future use – which means that when most cars are bunched up going one direction we’re wasting lots of capacity the other way.

Second, costs are far less than buildfrom-scratch highways even if we had the land. Denver recently said it could put reversible lanes on 13 miles of roads for $22.2 million plus $710,000 a year to switch lane directions back and forth.

San Francisco put machine-movable lane barriers on the 1.7-mile-long Golden Gate Bridge for $30 million, including the giant machine, labor and training.

Third, as Ms. Sosa told the planning organization, we can make lanes reversible quickly. In Texas, planners say it’s a one-year job.

But while maximizing resources and doing the job quickly and affordably, using reversible lanes to cut congestion raises other issues.

A vital concern is safety. Will pedestrians unfamiliar with the road – in Miami, think tourists – know what to do? Will

motorists accustomed to one road pattern be focused enough to realize that the pattern differs mornings from evenings?

Is signage clear and intelligible quickly?

The US Department of Transportation has a long list of markings for the pavement of reversible-flow lanes and another for overhead markings. But would overhead signs get installed when neighbors call them ugly even if they save lives? In Washington, DC, beauty won out over safety – yet studies found the reversible lanes there still safer than average.

Safety is one of three ways researchers evaluate a reversible lanes decision.

The second, of course, is use of capacity to get maximum traffic flows in minimum time.

But there’s also a third criterion: how would reversible lanes affect land use and economic development? Because reversible lanes aim to get cars going faster, would they reduce traffic to businesses en route?

National research on those economic criteria is minimal, but businesses know when they’re cut off from the traffic flowing by – or not flowing at all. Ask

merchants along Miami Beach’s Alton Road what hit them during lane closures as reconstruction fixed drainage. Plaints were frequent.

No national standard – that is, no cookie-cutter approach – details reversing traffic flow. It depends on whether work is in dense cities or suburbs, or on bridges or roads, or whether parallel routes are available during creation of reversible lanes or during their operation.

Also, no standard dictates how to shift lanes’ directions. San Francisco manually shifted plastic cones on the Golden Gate Bridge. Then it bought a giant “zipper” machine that lifts concrete barriers and moves them from one lane to another.

Some communities rely on road markings and signs – no barriers – to get motorists going a different direction on a stretch of road mornings and evenings.

Chicago’s pneumatically operated bollards rose from below ground to cut off lanes from one directional flow and add them to another on Lake Shore Drive.

But that long-time mode ended when fierce winters made bollard operations unreliable. Miami wouldn’t face that danger.

We haven’t heard proponents cite another plus for reversible lanes in Miami: in hurricanes, officials could quickly change traffic flows to speed evacuations. That’s a use we’d rather not try, but it could become vital.

Regardless of tests’ results, it’s refreshing to see leaders plan traffic upgrades that don’t rely on billion-dollar construction. Even though we will need far more to end congestion, it’s always wise to seek quick fixes that depend more on efficiency than on merely throwing money at the problem.

Encourage our policy-makers to elevate teaching profession My grandmother is a former high school teacher. She lived in Asia for five years, and says taxi drivers would shake her hand if she said she was a teacher. It is a highly respected position. In the United States, my Aaron Bos-Lun grandmother never received such a handshake.

One commonality in countries with high performing education systems, such as in Finland or South Korea, is the reverence given to teachers. This not only helps recruit and retain the best educators, but also sets an example for students that an educator is to be respected and that education matters.

America’s education system can certainly learn from this example.

In February we saw a national campaign, TeachStrong, launch. This broad coalition of the major US education organizations aims to make modernizing and elevating the teaching profession our country’s number one education policy issue.

While there is a lot of divisive talk around what our education system needs, I think most can agree that our schools, especially those in low-income communities, need more great teachers. In our

The Writer Aaron Bos-Lun, M.S. Ed, who can be reached at aaron.boslun@gmail.com, is an instructional coach at Homestead Senior High School. country, 50% of teachers leave the profession within the first five years, and sadly many motivated and passionate educators who care deeply about our kids leave because they don’t feel valued or treated with the tremendous respect they deserve.

TeachStrong features nine commonsense principles to achieve these ends that have the potential to elevate the field of education. Among these are opportunities for growth, diverse career pathways, recognition of professional contributions and accomplishments, higher standards for licensure, and tenure as a meaningful display of career accomplishment.

I started my career in education as a teacher with Miami-Dade County Public Schools through Teach For America and am now an instructional coach. I often think about how we can recruit greater numbers of talented and diverse teachers to our schools, and what we can do to retain these leaders in education, working to ensure that all students have access to an excellent education and the teachers and mentors they need to achieve

their potential.

I know firsthand that the way to attract more committed leaders into our classrooms is to make teaching a profession that people can see themselves having a deep impact in, growing professionally through, and being supported in by our communities and through highquality preparation programs and competitive pay. I believe Teach Strong has the potential to put our nation on a path to building this reality.

Teachers are expected to do more than ever before, which makes sense. Educating young people is the most important work that there is.

There are many divergent voices in education policy today, but I am encouraged by the diversity of the TeachStrong coalition. The unity of purpose from organizations that have not always seen eye to eye shows the strength of these ideas.

I encourage you to get involved by learning more about TeachStrong and encouraging our local, state and national policy-makers and candidates to prioritize elevating the teaching profession and support bold changes to teacher recruitment, preparation, support and compensation, ensuring that Miami and cities and towns across our country can attract and retain talented teachers in every classroom.

And if you’re up for the wonderful

challenge, I hope you’ll explore your own path to a career in education, whether through Teach For America or another pathway. Your advocacy is critical for students and teachers in Miami’s highest-need classrooms.

The handshakes my grandma received represented an affirmation of educators.

I believe we are headed toward a new and better education system in this country, but one that can only work if we all extend a hand and support, respect and empower the people who lead our classrooms every day.

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WEEK OF THURSDAY, MARCH 10, 2016

TODAY’S NEWS

MIAMI TODAY

7

PortMiami tallies 8% cargo growth in blazing four months

BY SUSAN D ANSEYAR

PortMiami is off to a strong start for the first four months of fiscal 2015-2016, its officials report, with an 8% growth in cargo compared with last year and a recent designation of the thirdfastest growing US seaport in 2015 by the industry’s top maritime and trade news service.

In January alone, the port’s cargo increased 19.9%, according to Director Juan Kuryla.

Additionally, he told Miami Today last week, the number of cruise passengers traveling to and from this city is increasing and the port may very well hit the 5 million passenger mark in 2016, primarily because the MSC Divina will now be staying here year-round.

According to maritime import/export reporting service Piers, PortMiami handled roughly 409,346 import Twenty-Foot Equivalent Units (TEUs) – a measurement the industry uses to describe the capacity of container ships and terminals – in 2015, an 18.86% increase year-over-year. That, along with other data, was cited for Miami ranking the third fastest-growing import seaport in the nation, handling more than 50,000 20-foot-equivalent units,

by Piers, a reporting service Mr. Kuryla said is favorably viewed by the industry, The Feb. 1 report states, “while other US East Coast ports have said West Coast diversions are fading, Miami says it’s confident the Asian volume it gained will stay. “Coupled with expected Latin America volume growth, the port has a vision of itself as a new major gateway for cargo headed into the US Southeast and perhaps even as far north as Chicago.”

This vision, Piers reports, is “emboldened” by Miami’s newly achieved draft of 50 to 52 feet, allowing the port to handle the larger container ships able to pass through the expanded Panama Canal in mid-2016.

“Doubts and questions remain, despite the port’s confidence,” the report states. “Import strength dipped and spiked over the past year, and that doesn’t reveal if Miami is retaining West Coast diversions,

Photo by Marlene Quaroni

To handle larger ships when the Panama Canal expands, the port got massive cranes from China in 2013.

if it’s attracting cargo bound for outside the state, if Florida demand is building, or some combination of the three.”

Mr. Kuryla defended his optimism for the port’s future in 2016 and beyond, notwithstanding some financial experts cautioning that the slowdown and rebalancing of the Chinese economy, lower commodity prices and strains in some large emerging market economies will continue to weigh on growth prospects in 2016-17.

Over the past few months, global growth for major markets has been down. By most media accounts, that results in decreased global trade, which means fewer container ships are needed.

However, Mr. Kuryla said, PortMiami has been able to continue on a good course during the slowdown in China’s growth because its trading regions are well diversified.

“Our top 10 trading countries are diversified,” he said. “Fifty percent of our trade is with Latin America and the Caribbean; we also go to Asia and Europe.”

Mr. Kuryla attributes the port’s cargo import growth in large part to work officials have been doing over the past five years that is now finished and “bearing fruit.”

Last year, he said, the port fine-tuned a program whereby the more volume brought in, the higher the rebate through a discount on tariffs.

“We wanted to keep our existing business and lure new business,” Mr. Kuryla said, adding that the port has lured three of the four largest shipping alliances through this competitive rebate program.

Proficiency, productivity and professionalism of those working at the port all contribute to its import growth, he said.

PortMiami’s staff is small but ‘Our top 10 trading Mr. Kuryla said it’s the best countries are diversified. he’s ever seen. In particular, he Fifty percent of our trade said, this seaport offers excellent customer service. Staff is with Latin America delivers information for any and the Caribbean; we question on any level, he said, also go to Asia and and is in direct touch with customers on a constant basis.

Europe.’

“We solicit customers, talk Juan Kuryla to the lines for this type of business, visit with shippers and

freight forwarders,” Mr. Kuryla said. “You always need to be doing outreach and can never visit the customer enough.”

This business is built on relationships, he said. In fact, as Mr. Kuryla was speaking last week, he said at that very moment the port had someone in Phoenix visiting a shipping company, just one of many outreach trips.

In addition to administrative staff, Mr. Kuryla said the port

offers tremendous efficiency at the yards and on container terminals.

“They move boxes quickly; they load and unload the vessels quickly.”

Any port can be potential competition, Mr. Kuryla said. For Miami, it can sometimes be Savannah or other Florida ports.

That’s why PortMiami is continually striving to create new programs, incentives and accom-

modations for customers, he said.

Mr. Kuryla described a service the port just started for a company in Mexico that previously moved goods via trucks.

Now, he said, the company’s exports leave Mexico’s port, arrive in Miami and are then transported by rail to Jacksonville, going to the final destination at a distribution center.

Finally, he said, PortMiami’s superior infrastructure is behind the growth in import cargo, stressing his deep appreciation to support he’s received from the county commission and Mayor Carlos Gimenez.

“That’s where it starts,” Mr. Kuryla said. “I can execute but need the mayor’s support.”

In the past four years, several projects were started that are now complete: the port tunnel from Watson Island, on dock rail, and the acquisition of super post Panamax cranes that are capable of working the largest vessels when the Panama Canal is expanded.

And, of course, there was the completion of the dredging to 50 to 52 feet deep, which Mr. Kuryla said has “captured the attention from all the shipping lines.”

That’s what he calls the game changer. “There’s no other port up the eastern coast until Virginia capable of handling that depth.”

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TODAY’S NEWS

MIAMI TODAY

WEEK OF THURSDAY, MARCH 10, 2016

After ‘no’votes, end of free Metromover goes to next stop

BY SUSAN DANSEYAR

Something unusual happened Tuesday when Miami-Dade Commissioners Bruno Barreiro, Javier Souto and Xavier Suarez voted against an ordinance on first reading that would ask voters to eliminate fare-free service on Metromover.

It’s common practice for commissioners to pass measures on first reading without discussion yet orally vote “Yes, for now� to indicate they’re not fully supportive or will seek additional information after the legislation goes to committee, where it’s thoroughly discussed and, if recommended, comes back to the full commission for final approval.

Given that there’s ample opportunity to express disagreement, an initial vote against an ordinance is a strong statement to constituents or other commissioners.

Prime-sponsored by Barbara Jordan and co-sponsored by Sally Heyman, the legislation

Photo by Maxine Usdan

It could be the end of the line for free rides on Metromover if commissioners let voters decide in fall.

would amend by a two-thirds vote, subject to voter approval in the general election Nov. 8, free service on the Metromover

The 4.4-mile electricallyand allow commissioners to set a fare consistent with other powered Metromover, which modes of transportation pro- connects with Metrorail at Government Center and Brickell stavided by the county.

Don’t let this unwanted guest get under your skin.

Protect yourself from mosquito bites and the diseases they may carry. Stop mosquitoes from living and multiplying around your home or business.

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www.miamidade.gov/mosquito or call 311

tions and Metrobus at various downtown locations, wasn’t always free. The fare was 25 cents but was eliminated after voters approved the half-penny dedicated sales tax in 2002 that county leaders said would go toward transit projects.

The legislation is scheduled for a public hearing before the commission’s Transit & Mobility Services Committee on April 13.

Also on Tuesday, Ms. Jordan and Audrey Edmonson voted on first reading against a proposed ordinance by Juan Zapata co-sponsored by Daniella Levine Cava that would provide reporting requirements for county and municipal elected officers and candidates regarding soliciting contributions for organizations exempt from taxes and political parties as well as penalties for failure to report.

That legislation is scheduled for a public hearing before the Strategic Planning & Government Operations Committee on April 12.

In new budget, films get scraps of old incentives

BY CATHERINE LACKNER

For the fourth consecutive year, it looks as though no new funds will be added to Florida’s tax credit program to lure film, television and digital media projects here.

Last week, Republicans in the Legislature soundly defeated Gov. Rick Scott’s proposed budget, which included $250 million for the Florida Enterprise Fund, which is aimed at creating new jobs. Sen. Jack Latvala had inserted provisions for film incentives by way of Senate Bill 1646, but they died along with the budget. “It’s not over until Friday,� the day the session is slated to end, said Michelle Hillery, president of the Film Florida advocacy group, on Tuesday. “I’m an optimist; anything can happen. But things are not going in a way that is conducive to incentives that would bring new dollars into Florida.�

As it stands now, the best hope of attracting projects to Florida is a move to create an April 1 deadline for new projects to be certified, she said, a process that is the first step in getting a tax credit.

Those credits are based on the scope of the production, number of local people hired, the season in which filming occurs and several other variables.

The production must first spend money for qualified expenses, then prove those expenditures, then apply for the credits, a long process.

If a project doesn’t get produced or doesn’t spend the required amount, the anticipated tax credits are returned to the fund, which was the case when several South Florida television productions were cancelled or not renewed a few years ago.

Ms. Hillery estimated $100 million in tax incentives remain

Film incentives were tied to Gov. Rick Scott’s plans, which failed.

of the $300 million put into the program six years ago. Some will be used for tax incentives to productions filming here now, but probably $15 million to $20 million of that $100 million will not be spoken for. “If we could take the unused money and recycle it to generate new business for the state, that would be a better way to give away money,� she said. “It’s not a fix-all. We still wouldn’t have programs like Georgia, Louisiana and New York do, but it would allow us to keep productions here and maybe recruit new projects.�

According to the state’s film office, during the current program 227 projects have been filmed in Florida and $166 million in tax credits issued as of 2015, Ms. Hillery said last year.

Those projects have resulted in $743 million in spending, $495 million of which was for wages.

But because Florida doesn’t have a personal income tax, the state doesn’t recognize a tax benefit from those salaries, which makes it hard to prove fiscal benefit.

That has led conservative legislators to brand film incentives a “corporate giveaway to Hollywood,� despite the ancillary spending they generate in the communities that host the productions.

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Downtown & Brickell Brokers see first signs of Brickell condo rent trending down

BY SUSAN DANSEYAR

With more ultra-luxury condo units than ever before coming to Brickell all at the same time, brokers specializing in the market are seeing the first signs of rents trending down as supply starts exceeding demand.

This cycle is looking at 14 new towers, four of which are already complete, according to Nayla Benitez, vice president and managing broker for EWM Realty International’s Brickell office. Judging from these four – Nine, Brickell House, My Brickell and 1100 Millecento – she said a lot of the buyers in this cycle weren’t intending to live in the condos, given that almost a third of these units have come back on the market as rentals and about 10% as re-sales.

Of its 382 units, Millecento has 20% listed for rent; Brickell House has 30%; My Brickell initially had about 50% of its units for rent/resale and currently has about 15% rentals; and Nine has about 20% units for re-sale/rentals, according to Ms. Benitez’s research.

“Most units were bought by investors so we are going to see more coming back as re-sales or rentals as sellers realize they will have to hold the units for a longer period than expected if the goal was to flip them when they initially purchased them,” Ms. Benitez said.

Condo rental prices have been steadily rising in Brickell since 2010, Ms. Benitez said: $2.25

Photo by Maxine Usdan

Many condo buyers in this cycle didn’t intend to live in their units, said Nayla Benitez. Nine is behind her.

per square foot in 2013, $2.35 in 2014, $2.50 in 2015 and $2.60 in 2016.

In new buildings, she said, the price per square foot for the first quarter of 2015 was $3.30 per square foot versus the first quarter of 2016, when the asking price was $3.10 but rented units closed at $2.70 per square foot.

The difference in price, Ms. Benitez said, is mostly due to the new inventory that has come onto the market, giving renters more options for new condos.

Inventory is up 35% from the first quarter of 2015, Ms. Benitez said, currently at 3.1 months of inventory on rentals.

Ten additional condo towers

are expected in Brickell between 2016 and 2018. Scheduled for completion in 2016, according to data Ms. Benitez provided, are 1010 Brickell with 50 floors and 387 units; Brickell City Centre Reach and Brickell City Centre Rise, each with 43 floors and 390 units; The Bond on Brickell, 44 floors, 328 units; and SLS

Brickell Residences, 52 floors, 453 units.

Scheduled for completion in 2017 are Brickell Heights West, with 47 floors, 332 units; Echo Brickell, 57 floors, 180 units; and SLS, with 58 floors and 450 units.

Brickell Flatiron is scheduled for completion in 2018, with 64 floors and 548 units.

These new, ultra-luxury condo units are being built with a high level of construction, aesthetics and amenities that Brickell has never seen before, Ms. Benitez said. “In the last cycle, units were in lower price ranges and buildings like The Club had basic finishes,” she said. “But now we have over-the-top luxury and unusual amenities like the organic garden and first-level cycle gym at Brickell Heights.”

That’s certainly going to be popular and make home-life more interesting and special for Brickell residents, Ms. Benitez said, It’s probably not as good for the investors who bought the units for a quick flip and might not find the profits they anticipated, or, at least, not as soon as they’d planned.

No one expected so many condo units would come to the market all at once, Ms. Benitez said. “By 2018, there will be more than Brickell has ever seen, and we believe the rents will go down, maybe not as low as in 2013, but will drop when there’s more inventory than demand.”

Brickell offices becoming less of a boom-and-bust market

BY CATHERINE LACKNER

Other than about 129,000 square feet at Two Brickell City Centre, no new class A office space is in the works for the Brickell area, and that has boosted rental rates and kept some tenants where they are, observers say.

“Downtown and Brickell landlords have begun exhibiting signs of a shift in attitudes toward pricing; however, and while growth in these submarkets’ direct average asking rates remains robust on a year-on-year basis (up 4.8%), quarteron-quarter rates remained relatively stable in the fourth quarter,” said a fourthquarter 2015 market report from JLL. The market has a vacancy rate of around 13% for class A space, and asking prices per square foot hover around $46.

Where are the new buildings? Many factors contribute to the scarcity of space built on speculation, said Steven Hurwitz, principal of CREC. “As property becomes available for development, it is usually reserved for residential uses or with residential pricing in mind. Also, the cost of construction is prohibitive, given our curPhoto by Maxine Usdan rent rental structure. Office doesn’t drive 600 Brickell rose in the last spurt of offices. the same rental value as residential.”

This is happening not only in Brickell but in other markets, too, he added. “It’s hard to pencil it out, because we do not have a significant preleasing market.”

While some large companies have signed on to be lead tenants in spec buildings, “smaller tenants are not typically in the market that far in advance,” given that an office building may take two to three years from the planning stage until completion, he said. Office tenants in South Florida tend to be small to medium space users, Mr. Hurwitz said.

“At the same time, demand is very strong. From a more macro level, the economy is strong in Miami,” Mr. Hurwitz said. “The demand base has been significantly diversified from what it was,” particularly with the arrival of tech companies, financial services firms and logistics companies set to handle cargo that is expected to flow through a widened Panama Canal and deepened PortMiami channel.

“We used to be a rob-Peter-to-pay Paul market, but you’re seeing a much larger variety of tenants now. There are lots of growing pains, but it’s becoming much less of a boom-and-bust market.”

Because of the scarcity of space, land-

lords are not offering creative financial incentives to lure tenants, said Matthew Goodman, managing director at JLL in South Florida.

“There’s not a lot of available space in Brickell, and the impact of a tightening market is increases in rents. For tenants already in Brickell and looking to remain, it’s really a stagnating market. There are no financial incentives to relocate.”

Some firms will choose to move anyway and pay the higher rents, particularly if they have design issues with their space or other crucial reasons to relocate.

Many Brickell tenants are professional service firms, which are especially vulnerable to pricing pressures, Mr. Goodman said. “You’re going to find tenants who will kick the can down the road and sign up for a shorter-term extension, but if it costs more to move, they will probably stay.”

In recent years, as several class A buildings opened – including 1450 Brickell, 600 Brickell and Wells Fargo Center Miami – landlords were competitive, but that is all but over, he said. “Landlords are more interested in long-term asset preservation rather than just filling the space,” he explained. “They are not trying to incentivize as they have in the past.”

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DOWNTOWN & BRICKELL

MIAMI TODAY

WEEK OF THURSDAY, MARCH 10, 2016

First City Centre offices open, hotel to take bookings soon

BY CATHERINE LACKNER

Years of construction are finally drawing to a close as the $1.05 billion first phase of Brickell City Centre steams toward completion.

Three Brickell City Centre, a class-A office tower, held its ribbon-cutting last week and its lead tenant, the Akerman law firm, has moved in, taking nearly all of the building’s 135,000 square feet. A companion building, Two Brickell City Centre, which comprises 129,338 square feet, does not have a set completion date. “But it is expected to receive its temporary certificate of occupancy soon,” said Katrina Perez, a Brickell City Centre representative “Availability for leasing remains.”

Swire’s East, Miami hotel, with 352 keys, will begin taking reservations May 9, “although [developer] Swire Properties

estimates the building will be completed before then,” she said.

Both of the project’s condominium towers – Reach and Rise, which each have 390 units – are also set to be completed within a few weeks or one month, Ms. Perez said. “Reach is 88% sold and Rise is 40% sold.”

Though some parcels have been set aside for further development, the opening of the shopping center this fall is to complete Brickell City Centre’s first phase.

“Tenants will soon be outfitting their individual storefronts,” Ms. Perez said. They include luxury brands Valentino, Stuart Weitzman, Coach and Chopard, contemporary brands Lululemon, Harmont & Blaine, Cole Haan, Illesteva and OndadeMar, and restaurants and coffee shops including Pubbelly Sushi, Pasión del Cielo, Quinto The first phase of Swire’s Brickell City Centre has two office buildings, a hotel and a shopping center.

La Huella and Sugar.

44-story, 520-room Galwan Hotel seeks parking waivers

BY JOHN CHARLES ROBBINS

A new hotel is rising in the heart of Brickell, across the street from Mary Brickell Village and the Metrorail and less than a block from a Metromover station.

GW Brickell LLC plans to build the 520-room Galwan Hotel at 78 SW 10th St., at the corner of Southwest First Avenue.

The city’s Urban Development Review Board recently recommended approval of the project.

The hotel is to be 44 stories and include about 18,072 square feet of conference rooms, 8,900 square feet of retail uses and parking for 223 vehicles.

The mixed-use project is seeking waivers including permission to allow vehicle entry from the principal frontage, allowing parking into the second layer, a 10% increase in allowable lot coverage and a 30% reduction Colored panels mix with white as the façade of the garage, which serves as the podium of the hotel. in required parking. ordinance, allows a reduction in to public transit. showing renderings of the hoMiami 21, the city’s zoning parking for projects built close Attorney Melissa Tapanes tel.

The neighborhood surroundLlahues represented the developer and said the hotel is planned ing this infill site is quite develfor a vacant site of about one- oped, he said.

The design of the hotel is half acre.

The hotel’s “unique and mod- “very pure,” offering a series of ern” design is the work of panels as skin onto the façade, Mr. Fort-Brescia said.

Arquitectonica, she said.

“It plays with the geometry,” Arquitectonica founding principal Bernardo Fort-Brescia had he said.

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panels as the façade of the garage area, which serves as the podium of the hotel. The parking levels are louvered to allow air circulation, he said.

“There is almost a basket weave undulation on the skin,” said Mr. Fort-Brescia.

The ground floor is designed with a lobby and will include space for a restaurant.

“I want to commend the architect for again bringing a highquality project to the Brickell area,” said board member Fidel Perez.

“I think you have a beautiful building,” he said. Mr. Perez did suggest using a different material to the pedestal, beyond paint and stucco. He suggested some aluminum panels.

“I appreciate your effort on this project,” said board member Neil Hall.

Board member Dean Lewis said the ground floor corner could be more exciting. “Your marquee is somewhat modest.

It could be much more exciting,” he said.

Mr. Fort-Brescia said the location is very small and tight site, and it was a challenge to design the ramps and parking levels.

“It’s a great project for your client,” said board chair Robert Behar.

GW Brickell LLC is managed

by Jose Luis Galveas Loureiro.

16

MIAMI TODAY

DOWNTOWN & BRICKELL

WEEK OF THURSDAY, MARCH 10, 2016

37-story, 513-condo arts area tower reported 58% sold as work begins

BY JOHN CHARLES ROBBINS

NR Investments has begun work on a mixed-use project designed to bring renewed life to a long-barren section of Miami.

A groundbreaking was held in February for CANVAS, 513 condominiums in the heart of the city’s fledging arts and entertainment district.

The company, which says it’s bringing affordable luxury to the area, recently announced that the 37-story CANVAS is 58% sold with $120 million in sales.

Work has commenced at the 1600 NE First Ave. site.

The neighborhood, for the most part, has remained stagnant for the last half-dozen years and city officials hope this project can lead the way to further growth.

The property is bounded by Northeast Miami Place, Northeast First Avenue, Northeast 16th Interest in CANVAS is high as condo market cools, developer says. Street and Northeast 17th Street.

It is just a few blocks from the Adrienne Arsht Center for the Performing Arts.

CANVAS gained the backing of the Omni Community Redevelopment Agency in June 2014.

The following month, the city commission approved a partial alley closure that cleared the way for work to begin.

Pieter A. Bockweg, CRA executive director, said then that work might begin by June 2015, with a targeted opening sometime in 2017.

The developer adjusted its schedule based on sales, and with a Feb. 15 start the company now anticipates delivery of units in March 2018, according to Nir Shoshani, co-principal of NR Investments.

He said the project has a 24month construction schedule.

Asked why groundbreaking was delayed, Mr. Shoshani said, “We set very ambitious pre-sale

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goals from the onset, and until those benchmarks were met -– and they were – we adjusted our groundbreaking timeline accordingly.”

He also said CANVAS went through a 12-month pre-construction period.

“We do not see ourselves as a luxury condo – rather, an affordable luxury one,” said Mr. Shoshani. “As such, although the market has cooled off, we do expect sales to continue at a steady pace, up to the selling-out of all units.

“Although there is a cooling of the market, we are experiencing a higher level of interest and movement within the project and sales center since the beginning of the year,” he added.

With prices starting in the mid $300,000s to the $550,000s, the company says CANVAS will introduce affordable luxury to the area and will complement the neighborhood’s existing 81-unit loft building, Filling Station Lofts.

Mr. Shoshani said the initial plan for CANVAS has not changed.

It is to include 513 residential units, 10,000 square feet of ground floor retail and about 5,000 square feet devoted to rooftop commercial uses, he said.

Mr. Shoshani also mentioned a “three-concept food and beverage” entity named Otabe, put together by a partnership between Kevin Aoki, Roman Jones and NR Investments. The three concepts will consist of a Japanese grill (Teppanyaki), noodle bar and a compressed juice bar concept, he said.

CANVAS is designed with neutral tones so that residents can customize their home based on their personal style. Residents will have the option of five floor plans ranging from 620 to 1,150 square feet, along with amenities such as gardens, children’s playrooms, and fitness and business centers.

The building stands to fill a void for young professionals seeking a sense of community, easy access to public transportation, mixed-use retail and affordable residential options, the company says.

Helmed by its two principals, Ron Gottesman and Mr. Shoshani, NRI has acquired more than 5,000 commercial and residential units since its inception and currently has about 1 million square feet of rental and converted office condominium product on the market.

In the essence of not only creating a building but creating a community for residents and neighbors, CANVAS has been host to numerous cultural events in the past year and a half. NR Investments works with area officials and cultural partners to host seasonal programming and events – including the Miami Flea, acoustic performances, live art sessions and more.

The company sees the area as a burgeoning walkable and bikeable “urban village” in downtown Miami, bordered by popular neighborhoods including Wynwood, the Design District and Brickell.

WEEK OF THURSDAY, MARCH 10, 2016

TODAY’S NEWS

MIAMI TODAY

23

Authority looks to growing Watson Island parking needs

BY JOHN CHARLES ROBBINS

With more people expected to make Watson Island a destination, the Miami Parking Authority is looking at the parking needs for all of those visitors.

The authority, doing business as the city’s Off-Street Parking Board, oversees two existing surface parking lots on the cityowned island between Miami Beach and the mainland.

At its March meeting the parking board approved spending up to $50,000 for a parking study on Watson Island.

Four shareholders on the island chipped in to help fund half the cost of the study, according to Rolando G. Tapanes, director of planning and development for the authority.

The authority has had discussions with the stakeholders on the island in regard to parking over the past two years, he said.

With all the recent activity on the island, staff determined it was time to move so “our position” is in the forefront of meeting parking needs on the developing island, Mr. Tapanes told the board.

He said the authority received a cost estimate for a full parking study and sought financial contributions from the main users on the island to pay for half of the study. The authority will pay up to $25,000, he said.

Mr. Tapanes said the parking agency has received commitments from four stakeholders to help fund the study.

The Flagstone group, developer of the large mixed-use residential, retail and marina project Island Gardens, has promised to contribute $15,000, he said. The seaplane operator will pay $5,000.

The heliport operator will pay $2,500. And Jungle Island rounds up the tally with $2,500, Mr. Tapanes said.

The study will examine current parking usage on the island and anticipated future needs.

“There’s a lot of activity on that little island,” said Mr. Tapanes.

“The time is right for a robust study, to be prepared to meet all those needs.”

Mr. Tapanes told the board the authority wants an independent,

Don’t ‘expect us’ to pay for parking they need, said Stephen Nostrand.

Plans for Island Gardens include a parking garage. The project won approval in 2001 and is barely begun.

professional and substantive parking study of the island, so the agency can share it with the stakeholders and show them “this is your true need.”

Parking exists on the island now but it’s a mess.

“There are literally cars parked everywhere,” said authority CEO Art Noriega.

Board member Stephen Nostrand said he didn’t want any of the stakeholders to “expect us” to build and provide parking for their ventures.

Mr. Tapanes responded that some stakeholders realize there isn’t enough parking and there’s no expectation among them that the added parking facilities would be free.

In a background memo dated March 2, Mr. Noriega wrote: “Given the continued expansion of development on Watson Island, MPA staff recently met with stakeholders on Watson Island in order to discuss current and future parking needs. The conversation was an active one and it was clear that more information regarding current and future construction projects on that island needs to be obtained in order to properly plan and serve that area.

“Given the importance of this project and the need to start the study as soon as possible, we are seeking the board’s approval to select the most responsive proposal from one of our selected and qualified parking consultants with a limit of $50,000,” Mr. Noriega wrote.

According to the city, there are two existing municipal parking areas on the island.

The South Side Parking Lot is adjacent to the Miami Children’s Museum and Chalk’s Airlines. This surface parking lot has 340 spaces.

The Public Boat Ramp Parking Lot was completed in the summer of 2003. This lot provides 50 oversized parking spaces for ve‘Given the importance hicles with trailers after launching their marine vessel on one of the of this project and the public boat ramp docks and need to start the study as three 30 standard-size parking spaces. soon as possible, we are The parking authority built and maintains both facilities. seeking the board’s The city’s website has a thorough approval to select the description of the current and fumost responsive ture uses on Watson Island. They proposal... with a limit of include: Aviation and Regional Visi$50,000.’ tors Center: The Aviation Center Arthur Noriega provides a dual service that includes the Miami Heliport and the

Miami Seaplane Base. The Miami Heliport is currently in the process of being relocated adjacent to the property occupied by Chalk’s Miami Seaplane Base. The heliport is to operate as a public heliport. The future intent of this facility will be to provide corporate and tourism services. The City of Miami partnered with Miami Sports and Exhibition Authority to develop an aviation center that will house both the heliport and the seaplane base.

Island Gardens: The multimillion dollar waterfront project is being developed as a public-private partnership between the city and Flagstone Properties LLC. The project was selected through a competitive proposal process that commenced in February 2001 with the issuance of a request for proposals and concluded in No-

vember 2001 with approval by the voters through a referendum. The mixed-use development is to combine two luxury hotels with a combined 500 rooms, 152,000 square feet of retail, 61,000 square of dining, with entertainment, cultural facilities and civic art in a village setting facing a mega-yacht marina. Early and current site plans show a parking garage as part of Island Gardens.

Ichimura Miami – Japanese Garden: The city and landscape architect Lester Collins Pancoast and architect Thorn Grafton worked cooperatively with the Japanese consul general and The Friends of the Japanese Garden to redesign and reconstruct the garden park.

Miami Children’s Museum: The museum opened on Watson Island in 2003. The 56,500-square

foot facility includes 10 galleries, classrooms, birthday party rooms, parent/teacher resource center, educational gift shop, 200-seat auditorium and dining area. The museum offers interactive exhibits, daily programs, classes and learning materials related to arts, culture, community and communication.

Miami Outboard Club was founded in April 1938. Since 1946, the club has maintained a facility on the island.

Miami Yacht Club is an informal group on the island just north of Government Cut. Jungle Island: Formerly known as Parrot Jungle, Jungle Island officially opened its $47 million facility on Watson Island on June 28, 2003. Their facilities include tropical gardens, exotic animals, educational exhibits and a variety of shows. The park also features the Treetop Ballroom and other meeting facilities that overlook PortMiami. Other amenities include Lakeside Café, the Garden Outpost with picnic and birthday pavilions and a private beach.

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NEWORLD FINANCIAL CORP., AND BLADE BENJAMIN, PRESIDENT Administrative Proceeding Docket No. 56616 Neworld Financial Corp., and Blade Benjamin, President 990 Biscayne Blvd., Suite 501 Miami, Florida 33132 YOU ARE HEREBY NOTIFIED that an Administrative Complaint (with Notice of Rights) has been filed against you by the State of Florida, Office of Financial Regulation, for failure to comply with certain requirements of Chapter 494, Florida Statutes. As such, your written defenses, if any, must be received at the address provided below by 5:00pm ET, on March 28, 2016.

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24

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WEEK OF THURSDAY, MARCH 10, 2016

June 2 A Unique Supplement Our most highly sought after issue that showcases those who are working to make this city greater through innovation and their drive to continue to develop and improve our community.

Advertise in this supplement to be a part of progress.

Join with us as we highlight the best Miami has to offer.

As always, this issue will be a staple at the Greater Miami Chamber of Commerce’s Goals Conference.

For reservation, call us at 305-358-1008.

MIAMITODAY A Singular Voice in an Evolving City