WEEK OF THURSDAY, MARCH 26, 2015
A Singular Voice in an Evolving City
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MIAMI BEACH
As room total grows, convention center hotel called pivotal, pg. 15 NEW LINKS TAKING WING: Twice-weekly Aerolineas Argentinas flights linking Miami and Córdoba, Argentina’s second-largest city, are among a cluster of new flights planned through Miami International Airport. The new service on Saturdays and Sundays begins July 4. Other new flights include service by both Aeromexico and American Airlines to Monterrey, Mexico, to begin soon; Thomas Cook Airlines direct service linking Miami and Manchester, England, starting in May; American Airlines flights to Frankfurt, Germany, starting in May; and links between Miami and Vienna via Austrian Airlines starting in October.
Sky’s the limit in South Beach, but it’s not for everyone, pg. 17
THE ACHIEVER
BY SUSAN DANSEYAR
RECREATION ON KEY: A new recreation business is opening on Virginia Key after Miami commissioners approved a five-year lease of a city-owned site at 3801 Rickenbacker Causeway. Virginia Key Outdoor Center LLC was deemed the top proposer for the recreational support facility. Minimum rent the first year is $750 a month and 5% of gross revenues up to $500,000 and 10% of gross revenues in excess of $500,000. For the second year, the monthly rent rises to $1,000 and 10% of gross revenues up to 500,000 and 12% of gross revenues in excess of $500,000. Operations are to include bicycles, canoes, kayaks, paddleboard with instruction, equipment rentals and guided tours. Ancillary uses may include support services, sales of related merchandise, and snacks and refreshments. Prohibited are motorized boats, motor bikes, jet skis and jet packs. The city is providing two prefabricated buildings joined by an elevated deck totaling 2,056 square feet and an outdoor storage area, and an area for parking. A NEW CRA? The Miami River Commission is considering asking Miami-Dade County to include river improvements as a beneficiary of a proposed Orange Sports Complex Community Redevelopment Agency, or CRA. County commissioners have deferred action calling for a study of the new CRA, bounded by the river, Flagler Street and Northwest 22nd Avenue. County officials floated the idea of a CRA as a way to fund land buys for a soccer stadium for David Beckham’s Major League Soccer team and the University of Miami, adjacent to Marlins stadium in Little Havana. The idea included CRA funding to extend the Metromover from downtown west toward the ballpark. River commission officials may want to get a share of funding from the proposed CRA for such river improvement projects as the public riverwalk.
Photo by Marlene Quaroni
Stephanie Berman-Eisenberg
Leads Carrfour in aiding to house the underserved The profile is on Page 4
As travel rises, room rates and revenue lead US BY SUSAN D ANSEYAR
Record February demand for travel to Miami-Dade marked the second straight month at the highest track record in the top 25 US markets, as rated by Smith Travel Research, for revenue per available room, average daily room rate and hotel room occupancy. This follows unprecedented success last year. For 2014, the Greater Miami Convention & Visitors Bureau reports a record 14.5 million overnight visitors; a record $23.5 billion spent by visitors on lodging, food, shopping, transportation and entertainment; and a record $200.5 million in tourist-related tax collections. February’s average daily room rate was $259.07 compared with $232.59 a year earlier (up 11.4%); average daily occupancy was 87.6% compared with 86.4% a year ago (up 1.4%); and revenue per available room was $226.88 compared with $200.95 a year ago (up 12.9%). “We continually ask ourselves how we can sustain these records,” said Rolando Aedo, executive vice president and chief marketing officer for the Greater Miami
AGENDA
Consumer price creep good news
Convention & Visitors Bureau. He attributes the tourism spurt to factors including Miami’s connectivity to Latin America and Europe, given that 96% of visitors come here by plane, the cruise industry drawing more people, this year’s Miami Beach centennial and the county’s varied, interesting neighborhoods. “There are a lot of places with good weather and nice beaches, but research shows people are looking for authentic destinations,” Mr. Aedo said. To that end, the bureau opened a visitor’s center in Overtown last month, and from December to February was “very aggressive” in a campaign to showcase all that Miami has to offer in cultural events and varied neighborhoods. The bureau aggressively markets through a number of campaigns each year. The marketing team worked with the MiamiDade Gay and Lesbian Chamber of Commerce to augment Miami Romance Month in February, which Mr. Aedo said nicely coincided with legislation allowing samesex marriages; and the bureau partnered with the Biltmore Hotel on more desirable rates for the winter’s weather-triggered
campaign in Chicago and New York to draw people away from the cold to Miami. New accommodations such as 1 Hotel South Beach, which opened this week, provide more space for visitors. “We’ve been adding hotel rooms for a while, which speaks volumes to the strength of the industry as we are still raising occupancy and room rates,” Mr. Aedo said. Within a few years, he said, we’ll have an additional 7,000 or 8,000 hotel rooms. The dollar is getting stronger because the US economy is gaining strength, Mr. Aedo said. “Our European markets were up 17% when we closed out 2014, and we’re also seeing an increase in our domestic travel.” Looking ahead, Mr. Aedo says he believes the county will see sustained tourism growth. “We have a ways to go as it’s only March,” he said. “But based on research, our outlook for hotels in 2015 will be even stronger with additional increases in room rates, which we believe will grow by another 5% and vacancy falling 1% or 2%, bringing the revenue per available room to grow 7%.”
Miami and Fort Lauderdale consumer prices rose 0.3% for January and February but just 0.4% over the past 12 months, a US Bureau of Labor Statistics report Tuesday shows. That’s similar to consumer prices for the entire nation year over year and good news for consumers, said Manuel Lasaga, president and co-founder of Strategic Information Analysis Inc. and clinical professor at Florida International’s business school. He said living cost has been flat for some time and now consumers gain the added benefit of a much stronger dollar, so they spend less for foreign goods. What’s driving costs down is the dive in oil prices since November, Mr. Lasaga said. “Gas and fuel are very important components in pricing increases,” he said. “Year over year, other items increase in price but that is offset by the decrease in price for crude oil.” The report states in 12 months the South Florida price index for all items less food and energy rose 2.3%, reflecting a 3.7% price increase for shelter and 7.5% for other goods and services. Yet the energy index fell 19.4%, predominantly due to a 37.7% drop in motor fuel costs. Prices fell over the year for both electricity (-0.7%) and piped gas service (-4.7%). Mr. Lasaga said some in Congress worry that every consumer prices decline indicates deflation. He disagrees. “This is a very good thing to have a reduction in the cost of living.” The Federal Reserve’s goal, he said, is to maintain sustainable economic growth with a 2% inflation rate. An oil price rise, he said, might be a condition under which the Fed will raise interest rates. “Everything that goes down, goes up,” he said. “We don’t know how much our oil prices will rise.” Mr. Lasaga sees oil rising moderately. March consumer prices are due out April 17.
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DEVELOPMENT AUTHORITY DEVELOPS ITS ‘SANTA LIST’ ...
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MIAMI TODAY
TODAY’S NEWS
WEEK OF THURSDAY, MARCH 26, 2015
THE INSIDER DOCTORS STAYING IN FLORIDA: When this year’s University of Miami Miller School of Medicine graduates, 31% are staying at Jackson Memorial Hospital for their residences, up from 25% in 2014 and 23% in 2013. About 40% of the nearly 200 senior medical students are staying in the state for training, up from 34% in 2014. Roughly 41% are interested in primary care fields, up from 32% in 2014. For the Miller School’s first class of M.D./master of public health students, 48% chose primary care fields as their specialty. GROWING NUMBERS: Miami Parking Authority’s PayByPhone program continues to grow. “They’re very good,” CEO Art Noriega says of the numbers showing usage of the online application continues to rise. The total number of parking customers registered has topped 336,000, said COO Alejandra Argudin, including more than 19,000 new customers since Oct. 1. Transactions using the PayByPhone app on smartphones are averaging 272,000 a month, she said. Revenues keep growing as well, including $491,238 in October, Art Noriega $501,250 in November, $536,789 in December and $588,574 in January. PayByPhone revenue accounts for 42.6% of the parking agency’s total revenue from on-street parking. GETTING TO CORAL WAY: Miami commissioners have accepted $1,002,362 contributed by the Florida Department of Transportation to help offset operating costs for the Coral Way Trolley service. It’s part of a joint participation agreement with the state, and an agreement with Miami-Dade County, to provide public transportation. This action help fund operations of the Coral Way service. The required 50% matching funds are to be allocated from the city’s shares of the 1% transit sales surtax. The Coral Way extension is designed to connect Downtown Miami, PortMiami and residential areas along Francis Suarez Coral Way. Commissioner Francis Suarez said the Coral Way route “connects Brickell to Ponce [de Leon Boulevard]” and is a big success. LIVING IN OVERTOWN: Miami officials joined with the Southeast Overtown / Park West Community Redevelopment Agency, Atlantic Pacific Communities and Palmetto Homes of Miami at a groundbreaking March 18 for Island Living Apartments, being built in Overtown at 1201 NW Third Ave. CRA Board Chairman and city commission Vice Chairman Keon Hardemon was on hand. Upon completion, Island Living Apartments will be an eight-story building with 70 affordable rental units of one, two and three bedrooms. The development will also have 5,000 square feet of commercial space on the ground floor, walkways and a playground. The CRA invested $9 million in the project, which is also getting funding from Wells Fargo Bank, the City of Miami and MiamiDade County. DREDGING DOLLARS: Miami city commissioners have OK’d requesting a $700,000 grant from the Florida Inland Navigation District Waterways Assistance Program for the dredging of the Seybold Canal. Commissioners directed the city manager to apply for the reimbursement grant, which requires a 50% local match. The grant is 50% of the total estimated $1.4 million project for this phase of the Seybold Canal dredging and disposal of hazardous sediments at the base of the canal from Northwest 11th Street to where it connects with the Miami River. This is part of an overall pollution clean-up and dredging of Seybold Canal and Wagner Creek, expected to cost $23 million REACH TOPS OFF: Swire Properties topped off Brickell City Centre’s REACH, the second of two luxury condominium towers at the $1.05 billion master-planned, 5.4-million-square-foot mixed-use development. REACH, comprised of 390 luxury condo units, is scheduled for completion at year’s end. Buyer deposits are 20% at contract with a second deposit of 15% due 120 days after execution. The tower is nearly 80% sold. RISE, the development’s second residential tower and also 390 luxury units, topped off in January. Swire recently launched sales for it with prices starting at $595,000. MOUNT SINAI EXPANDS: Mount Sinai Primary & Specialty Care Sunny Isles Beach will open an office at 323 Sunny Isles Blvd. in April. Mount Sinai Medical Center’s fifth satellite physician office will offer primary care as well as cardiology, urology and endocrinology. HOUSING MULTIPLIES: The Coral Gables-South Miami multifamily market remains one of the most active and desirable in the US, according to a CBRE update. In 2014, the 27 apartment building sales totaled $62 million – $205,396 per unit or $209 per square foot. This is the second-most multifamily sales within Coral Gables in the past 10 years. Buyers fall into three categories: local, national (predominantly from New York) and international (Latin America, Canada, Europe and the Middle East). CBRE analysts anticipate a slight dip in occupancies to 96.5% in 2015 as new apartment units hit the market. As new apartments are scheduled to be available over the next five years, the firm forecasts, occupancies will remain at 96% to 96.5%. SNACKS ON THE CONCOURSE: Mediterranean Kitchen opened in Miami International Airport’s North Terminal Marketplace near Gate D-26. The location marks the second MIA venture from the team behind the Ice Box Café, which expanded to Concourse D in 2010. The Mediterranean Kitchen is the latest local small business to open in MIA’s multi-cultural, Miamithemed North Terminal Marketplace. Located between gates D-26 and D-29, it joins Cuban Crafters cigars and a Miami Marlins merchandise store. CORRECTION: The Miami-Dade County Commission voted 10-2 against an ordinance that would have allowed a fare on the Metromover. A brief last week misstated the vote count. CORRECTION: The people page on March 12 incorrectly stated to the tenure of Newmark Grubb Knight Frank Vice Chairman of Brokerage Greg Katz, who recently joined the firm. It also had an incorrect reference to Carlyle Coffin; he is a managing director.
Photo by Maxine Usdan
The Design District’s footprint now includes this area between 42nd and 43rd streets, almost two acres.
Design District expands north BY JOHN CHARLES ROBBINS
Miami’s Design District continues to grow its drawing appeal and now its boundaries. City commissioners recently gave final approval to three zoning matters that green light expansion of the Design District to the north. Residents of the adjacent Brentwood and Buena Vista residential neighborhoods welcomed the change, in large part because it will bring more parking and green space to the area. A firm called 4201 NE 2nd Avenue LLC joined Miami Design District Associates LLC in requesting that the footprint of the Design District be expanded to the north. Commissioners who approved the expansion applauded the expansive work to redevelop the blocks north of I-195 into a luxury retail destination. Keon Hardemon, vice chair of the commission, said he appreciates all the work to bring “positive” change to the area. “I appreciate what’s happening there,” he said. The commission approved three resolutions to: amend the future land use designation of the added property; amend the original Special Area Plan under the Miami 21 zoning code for the district; and approve a new development agreement for the area. This amends the previously approved “Miami Design District Retail Street Special Area Plan” by adding properties at approximately 220 NE 43rd St. The block was home to a church for decades. The purpose of a Special Area Plan is to allow parcels greater than nine abutting acres to be master planned to provide greater integration of public and private improvements and infrastructure, and “greater flexibility so as to result in higher or specialized quality building and Streetscape design.” City commissioners approved the original Special Area Plan for the district in July 2012, with general boundaries of Northeast 43rd Street to the north, North Federal Highway and Biscayne Boulevard to the east, Northeast 38th Street to the south and
Commissioner Keon Hardemon: “I appreciate what’s happening.”
Northeast Miami Court and North Miami Avenue to the west. The addition of the two new properties will increase total proposed residential units, and the amount of retail space and open space in the overall Design District. Approval of the expansion will: Add 80,976 square feet (1.86 acres) split among two added parcels for a total combined lot area of 995,668 square feet (22.92 acres). Increase the commercial space by 70,000 square feet for a total of 1,444,689. Add 82 residential units for a total of 643. Increase the parking spaces by 304 spaces above ground and below grade to total 4,056. Increase civic space by 4,049 square feet to total 45,784 square feet. Increase open space by 5,264 square feet to total 46,830. Planning Director Francisco Garcia told commissioners the applicants had a dialog with neighboring property owners and deserved to be commended for reaching out to the community. “They worked closely with the Brentwood neighborhood immediately the north, with Buena Vista East, as well as Design District stakeholders,” said Mr. Garcia. The Planning and Zoning Department recommended the changes. A staff analysis said the expansion would benefit the area by creating an enhanced program of residential units, commercial uses, as well as civic and open space for the public, “generating public benefits within the development, resulting in higher
or specialized quality building and streetscape design.” The expansion keeps the intent to provide mixed-use, pedestrian-oriented retail uses within an urban development, meeting the Miami 21 development concept in the interaction with the surrounding areas of Miami, the analysis says. The project was deemed “critically important” to the economic revitalization and enhancement of the Design District, staff said, and consequently a positive impact to the city in general by creating recurring and nonrecurring financial benefits as well as temporary and permanent jobs. Javier E. Fernandez, an attorney representing both applicants, said the planned public space will provide abutting neighbors with a needed recreational amenity and complement linear park improvements proposed by Miami Design District Associates for portions of Northeast 42nd Street. Mr. Fernandez said all the added improvements “will provide a rational terminus of the commercial district and an appropriate transition to the abutting residential neighborhoods to the north and guard against future commercial encroachment.”
WEEK OF THURSDAY, MARCH 26, 2015
TODAY’S NEWS
MIAMI TODAY
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Commission stalls contract to buy 64 60-foot-long buses BY LIDIA DINKOVA
The Miami-Dade County Commission has stalled a contract to buy more than 60 buses to add to the county’s fleet. Recently, elected officials and residents have pushed for more mass transit options to alleviate road congestion. While commissioners too have been onboard with that push, some on the dais raised concerns with the buses in line for purchase. A contract pending approval would allow the county to buy 64 articulated buses, far larger than the standard transit buses seen on most county arteries. Specifically, articulated buses are the same type of bus as the Kendall Cruiser that runs on Southwest 88th Street and the I95 Express buses connecting Miami-Dade and Broward counties. These 60-foot long buses can carry 100 passengers, 60 of them seated. Some commissioners said these buses are too big, add to traffic congestion, and travel empty during off-peak hours. “These buses are scary,” said Xavier Suarez. “In my district, you would not want to have any of those big articulated buses.” Supporters of the bus purchase had a different take. They said the buses in line for purchase are the result of a past commission vote that directed staff to do exactly what it’s doing – seek out a contract to buy larger buses. “This dais… actually directed you and your predecessor to start looking at less vehicles for mass transit on heavy routes and this was the option – to get a bigger bus so you have one less bus instead of six [buses] following along on critical areas,” Sally Heyman told Miami-Dade Transit Director Ysela Llort at a
Photo by Maxine Usdan
Articulated buses that can carry 100 passengers and seat 60 are the same type as this Kendall Cruiser.
‘These buses are scary. In my district you would not want to have any of those big articulated buses.’ Xavier Suarez recent public meeting. In addition, the county commission, sitting as the majority of the Miami-Dade Metropolitan Planning Organization, recently
voted to prioritize three thoroughfares for bus rapid transit: Kendall Drive; an east-west corridor, including the Dolphin Expressway; and Northwest 27th Avenue. The 64 buses up for purchase are to service bus rapid transit specifically on Northwest 27th Avenue, one of the corridors the MPO prioritized, as well as on Biscayne Boulevard and the busway in South Miami-Dade. Ms. Llort told the commission that the buses are needed because ridership in those corridors is so high that sometimes buses leave riders at the bus stop because they’re full. In addition, she added, bigger buses make more financial sense. Not only is their collective long-term cost less than buying smaller buses, but the county is in line to get state funding to buy the big buses. The county commission in the past has approved an agreement between the county and the state department of transportation that provides for state funds to buy
‘We can’t tell administration “we’re going to go this route” and at the last second switch it out again.’ Jose ‘Pepe’ Diaz the buses, Deputy Mayor Alina Hudak told commissioners. “Those buses that have already been funded through the [joint participation agreement]
that we already have in place, it would really be a shame that we don’t have that capability,” Ms. Hudak told the commission. “Obviously, the decision to buy these types of buses is done by the professionals. Clearly, they believe that there’s a need for, and ridership figures indicate that there is a need for these particular corridors.” The 64 buses would cost about $71.4 million over five years, according to a staff memo to the commission. State money would fund half the cost of 62 of the buses, with the other half funded by the county via a countywide half-percent sales surtax that funds the People’s Transportation Plan. A federal grant would purchase the other two buses. Ms. Llort said operating and maintenance costs for these buses is about 30% less per seat than for the standard-size buses because the cost of labor is lower for the articulated buses. “I don’t buy the math that Ysela [Llort] gave us because the math assumes that the seats are being used,” Commissioners Suarez responded. “If the buses cost less per seat, that doesn’t really mean anything if they’re empty.” Mr. Suarez argued that riders prefer smaller buses such as the municipally run trolleys in Miami, Miami Beach and Coral Gables. The commission deferred the bus purchase March 3. At its following meeting March 17, staff deferred the legislation seeking the contract authorization to no date certain. Some commissioners said they understand their colleagues’ concerns about the bigger buses. Then again, said Jose “Pepe” Diaz, “We can’t tell administration, ‘We’re going to go this route’ and at the last second switch it out again.”
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WEEK OF THURSDAY, MARCH 26, 2015
TODAY’S NEWS
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Development authority drafts ‘Santa list’ to tap city bonds BY CATHERINE LACKNER
Spurred by a report that the City of Miami is in the process of initiating a general obligation bond issue, directors of Miami’s Downtown Development Authority drew up a wish list of projects they would like to see at least partially funded. “This is the Santa list,” Alyce Robertson, authority executive director, said at Friday’s authority board meeting. The rationale: “downtown has grown exponentially over the past decade, and now boasts 80,000 residents and a daytime population of 220,000, with thousands of additional residents, workers and visitors projected in the years ahead,” according to authority documents. Among the priorities: Flagler Street improvements from the Dade County Courthouse to the Miami River. This is the second phase of renovations; the first phase, improving the street from the courthouse to Biscayne Boulevard, is to kick off soon. Biscayne Green, creation of a “grand promenade” from Northeast Fifth Street to Biscayne Boulevard Way. The project includes a “road diet,” which reduces driving lanes while adding medians, landscaping, seating, and other amenities.
Photo by Maxine Usdan
Miami’s Downtown Development Authority wants Museum Park land to be a community-oriented park.
Baywalk and Riverwalk, along the eastern and southern edge of downtown. Part of Miami 21, the plan creates “a scenic multimodal path that expands mobility options for pedestrians and bicyclists,” according to authority documents. Improvements to South Miami Avenue. An attempt to con-
Development authority adds $500,000 to its signs project BY CATHERINE LACKNER
Directors of Miami’s Downtown Development Authority voted to allocate up to $500,000 more to get the authority’s longawaited signage and wayfinding project into the ground. “The board had approved $1 million, but it turns out that might not be enough,” said board member Jerome Hollo, who is vice president of Florida East Coast Realty. “The city is evaluating the bids, and we don’t know where they will come in.” The authority has a promise of a $1 million grant from the Florida Department of Transportation, he said. The Miami Parking Authority and the community redevelopment agencies of Omni/Midtown and Southeast Overtown/Park West have also pledged to chip in. The additional funding “is kind of a chicken-and-egg thing,” said Alyce Robertson, authority executive director, at the group’s meeting Friday. “We have to commit to the money before the city can award the bid.” The wayfinding system – designed to unify a maze of more than 2,000 signs downtown and make it easier for visitors to find their way around – is to extend from the Brickell area to the Adrienne Arsht Center. It’s to include gateway signs for city entrances and various districts; directional signs to landmarks, attractions and parking; informational kiosks with “you are here” map icons; and pedestrian and bicycle trail signs, all with a consistent visual theme. The designers, Pennsylvania-based Gannet Fleming and MERJE, cre-
ated the signage for the City of Miami Beach. Certain areas, like jewelry district and historic parts of Flagler Street, are to have their own themes. Part of the project seeks to limit the jumble of private advertising signs, including those on pay telephones and newspaper boxes. It’s a particular problem where sidewalks are narrow and pedestrians have to step out into the street to avoid a pay telephone or newspaper box. After physical signs are installed, the downtown agency hopes to move into electronic media, using smartphone applications to direct drivers to public or private parking, and to help them get around the city. In November, bids for the project were received from Allied Environmental Signage and Architectural Graphics Inc., but city officials asked for more proof that both bidders’ credentials were in order. The request for bids was reissued. Both of those entities bid again in January, along with Creative Mailbox Designs LCC. The new bids are $1.4 million each from Allied Environmental Signage and Creative Mailbox Designs, and $1.8 million from Architectural Graphics Inc. After the city commission approves a bid, the process will take 90 to 120 days, and fabricating the signs is expected to take several months, explained Eric Riel Jr., authority team leader for planning, design and transportation, when discussing the project late last year. “We’ll keep a watchful eye during the fabrication process.”
nect Flagler Street, the Miami River and Brickell, dubbed “Reconnecting the River,” would widen sidewalks, enhance safety with crosswalks and add street trees and lighting. Citywide urban parks. The authority aims to convert vacant lots to pocket parks or dog parks. Streetscape improvements
and green infrastructure. The authority seeks to add seating, trees and other improvements to create target “iconic streets and grand entrances.” Museum Park upgrades. These would turn land in the former Bicentennial Park beside two new museums into a community-oriented park.
The Underline. The authority supports a public-private partnership to turn land under the Metrorail line from the Dadeland South station north to the Miami River into a linear park, with drinking fountains, street furniture and landscaping. Pedestrian priority zone. This project would lower speed limits, lengthen walk times at crosswalks and add traffic-calming devices to improve pedestrian safety. Miami Streetcar. The authority supports a streetcar to run along Miami Avenue and surrounding streets. Baylink Light Rail. This project would link Miami and Miami Beach by rail via the MacArthur Causeway. Downtown bike commuter centers. The aim is to provide storage lockers for bikes, as well as showers and lockers for those who want to bike to work. Tri-Rail Coastal Link. The authority wants to help secure funding for rail service into downtown from points north, including Broward and Palm Beach counties. Waterborne public transportation. This initiative supports construction of a central docking station downtown for a water taxi or similar service to connect Miami and Miami Beach.
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WEEK OF THURSDAY, MARCH 26, 2015
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Iconic film, video images of Miami Beach to keep sparkling B Y C ATHERINE L ACKNER
Miami Beach has served as a backdrop for films, television shows, modeling shoots, videos and other forms of entertainment for almost its entire history, and that trend shows no signs of diminishing, observers say. “People can’t get enough of Miami Beach,” said Leah Sokolowsky, location manager and former Film Florida president. Ms. Sokolowsky worked as location manager for the HBO series “Ballers,” which just completed filming its first season, a lot of which was shot on Miami Beach. “The support and cooperation we had from everyone – from the top levels of City Hall, the mayor, the manager, the commissioners, to the businesses and the residents – was incredible. They did everything they could to help us,” she said. She reserves particular kudos for Graham Winick, the city’s film and event production manager. “He moved mountains,” she said. “He is
City film manager Graham Winick.
deserving of a lot of praise,” and his expertise has helped the city achieve an enviable status as a film mecca, she added. Beautiful beaches, picturesque Art Deco architecture, lush foliage and a stylish vibe are factors, of course, she said. “It’s fun, it’s colorful, it’s vibrant, it’s international. It’s a great place to film.” “I think Miami Beach will always be a great location for filming commercials, TV, and movies,” said Jimmy Morales, its city manager. “In fact, I think the focus on art and design will make it even more interesting for such purposes. “I would love to see the growth in the creative class on Miami Beach and regionally contribute to the development of more production and re- A postcard distributed for 1972’s Democratic National Convention is labeled “Fabulous Miami Beach.” lated activity in South Florida,” he added. “There is tremendous talent here and it could be harnessed to make sure Miami Beach is not only in front of the cameras, but also driving what happens behind them.” “It’s actually a great version of ‘catch-22.’ Miami Beach has been and continues to be an indemand location for photo, movie, digital media and television-show shoots,” said Sandy Lighterman, Miami-Dade County film commissioner. “And with that comes continuous beautiful images splashed on big and small screens, free advertising which in turn attracts even more production that in turn entices more of the entertainment-media-filmPhoto by Maxine Usdan fashion world. It’s a fantastic cycle – rinse and repeat.” A colorful entryway to Miami Beach’s 41st Street from the mainland is a frequent backdrop seen globally.
Mayor’s image of future: a center for creative collaboration BY CATHERINE LACKNER
Miami Beach Mayor Philip Levine not only has visions for his city, but also the roadmap to realize them. “For the next decade, my vision for Miami Beach is to truly make it a center for creative collaboration, where people from all over the world come to visit and to live, to be around like-minded folks, in an idyllic setting.” The renovation of Miami Beach Convention Center is a step toward that goal, he said. “It will be a wonderful place for folks to gather.” His plans address many lifestyle issues, including transportation. “The city needs more public transportation between North Beach and South Beach,” he said. A free trolley has been a great success, he said. “Ridership has
been huge.” The city is in the process of launching a streetcar service from South Beach north to the convention center, he added. Baylink is also a priority, he said, and would run along the south shoulder of MacArthur Causeway, if the county’s Metropolitan Planning Organization, which some see as obstructive, will move the project forward. The city, he said, will shortly launch a water taxi that will travel between the Sunset Harbor Pier and somewhere near Bayside. “We think it’s a great thing and can be done fairly soon.” Mr. Levine is rallying the mayors of coastal cities from Fort Lauderdale to Miami Beach to create a bike path and enlarging his city’s beachfront boardwalk.
Philip Levine seeks green space.
“Another great objective is green space,” Mr. Levine said. “We’ve taken two major strides there.” A large parking lot across from the convention center is being transformed into a massive park with a veterans’ memorial, because the reconfigured building will have a rooftop garage. Part of the defunct Miami Beach Golf Course is also being
converted into a park, he added. The city’s most detailed action plan by far combats sealevel rise. “This is like World War II; we don’t have a choice,” Mr. Levine said. “We have to survive and win.” The city has put together an immediate plan that will cost $300 million to $400 million and take several years, and has longer-term goals as well, he said. The underground drainage pipes beneath the areas where the city floods most, on the western edge of the island, including West Avenue and Sunset Harbor, had been a problem for years. When the city’s engineers investigated, they discovered that valves that were supposed to pump storm water into Biscayne Bay weren’t working and some had fallen off completely, allowing bay water to
flow back into the city’s pipes. Replacing the valves and pipes has already gone a long way toward alleviating what had been a long-standing flooding problem. “Last fall, during the king tides, we had the meteorological world descend upon us. Sunset Harbor was dry as the Sahara; that showed our hypothesis works,” the mayor said. “We would never declare victory, but this was one step in the war.” New construction, including road construction, will be built higher, and seawalls strengthened, he added. “Miami Beach is resilient,” Mr. Levine said. “As a community, we have undertaken this and we are going to move forward. People were unnerved, but now they have been given a sense of confidence.”
MIAMI BEACH
WEEK OF THURSDAY, MARCH 26, 2015
MIAMI TODAY
15
As room total grows, convention center hotel called pivotal BY SUSAN D ANSEYAR
Even as Miami Beach joyously celebrates its centennial this week, business leaders and officials are busy preparing for the next 100 years. The Beach continues to be a star with a lot of luster to it, said Jerry Libbin, president and CEO of the Miami Beach Chamber of Commerce. Tourism is strong, he said, and more than half of the beach’s condos and homes belong to international buyers who “perceive the prices as good value when compared with real estate in their own counties.” Yet there’s work to be done, Mr. Libbin said. “In the short term, I feel very positive but have concerns for the long term,” he said. “Looking at how to deal with rising sea levels is an extremely important issue.” All coastal communities in the state must be aware of the dangers rising sea levels will bring, Mr. Libbin said. “This summer, there will be 19% increases in flood insurance premiums.” In addition to finding solutions for climate change, Mr. Libbin said an issue of particular importance for Miami Beach is building a hotel for the convention center. “We’re the last of the 30 major cities we compete with for conventions to have a hotel [to accompany the convention center],” he said. “I have an extremely strong outlook for our tourism and believe we will be the new ‘it’ once we have the new convention center and hotel.” Mr. Libbin said the Beach is a tremendous draw for business conventions and visitors. “Once we have that center and hotel, there’s a strong likelihood people will choose coming here over other cities.” Visitor dynamics are changing almost daily, said Brian Vujnovic, vice president and director of operations for Robert Finvarb Companies, a Miami-based private real estate and investment and development company. “We have seen the leisure international traveler market grow exponentially, with a heavy concentration from Europe and Latin American in recent years,” Mr. Vujnovic said. “Currently, with the strengthening of the US dollar, I feel that domestic travel will proportionally increase while international travel will level off for our local market.” Mr. Vujnovic said the international travelers still view their annual vacation as being critical to their well being and he thinks they will continue to visit Miami Beach despite their lessening purchase power. “Additional [hotel] supply currently being added to the Miami Beach market is significant at 7% growth over the next two years,” he said. “But when compared to other markets like New York City, for example, I think our market will absorb the supply growth while still growing revenue per available room
Photos by Maxine Usdan
Lincoln Road is a focal point where visitors join residents in strolls on Miami Beach pedestrian corridor.
The visitor industry is on constant display in Miami Beach, where tours attract thousands of visitors.
on an annual basis.” Mr. Vujnovic said a 7% supply growth isn’t an astronomical figure and with Miami Beach continuing to gain “global noto-
riety as a premier destination with the best beaches, dining and nightlife to offer, the future looks bright for us.” Earlier this year, Greater Mi-
ami Convention & Visitors Bureau chairman Bruce Orosz, whose firm created the entertainment elements of the Beach centennial celebration, said Mi-
ami Beach will continue to be the epicenter for tourism and conventions, in large part because the city is planning to build a new convention center. “Not only will conventions flock here like never before, but the tourist will be equally surprised to see what evolves,” he said. Looking forward, Mr. Orosz said the Beach is evolving in so many ways that the neighborhoods gaining popularity in Miami-Dade will add to its popularity, not subtract from it. “We embrace the arts,” he said. “What will happen is [we’ll see] new groups and new organizations. Whether it becomes more high tech here on the Beach in certain areas, I think that the influence, the shifting sands and all of the things that are happening in either side of the bay only add to the experience here and make it that much more of a dynamic city.” Mr. Libbin said having a hotel as part of it is vital to a successful convention center. “I know that because having been on the Miami Beach Commission for eight years, people told us that,” he said. City Commissioner Jonah Wolfson was the only one who didn’t fully believe that, Mr. Libbin said, and now the hotel will be a separate project for voters to approve. In December, the commission voted 6-1, with Mr. Wolfson opposing, to let voters decide in November whether to approve a possible lease of city land for an 800-room hotel behind the Fillmore Miami Beach at the Jackie Gleason Theater. This requires a 60% majority vote, Mr. Libbin said. “I’m optimistic the public will support it,” he said early this week. “Without a hotel, it calls into question spending half a billion dollars for the convention center.” Mr. Libbin said the chamber will be educating the public about the importance of a hotel as part of the convention center.
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WEEK OF THURSDAY, MARCH 26, 2015
MIAMI BEACH
MIAMI TODAY
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‘Sky’s the limit’ in South Beach, but everyone can’t reach it BY SUSAN DANSEYAR
By all accounts, South Beach is teeming with tourists, shoppers and happily-situated condo owners from all over the world, but the robust economy in this part of Miami also brings traffic, crowds and rising prices that don’t suit everyone’s needs. All the markets of Greater Miami are creating their own identities and South Beach – once known as a hip, fun place to go on vacation – has transitioned “from a party place to a community where people want to live,” said Daniel de la Vega, a resident and president for ONE Sotheby’s International Realty. “In many ways, South Beach is like a small European community with a marina, luxurious condos, beautiful parks, restaurants and walkability,” he said. “People are calling it the Monaco of the US.” Consequently, the population is very international, Mr. de la Vega said, with buyers coming from South America and Europe. South Beach has some of the most expensive condo real estate in all of Miami-Dade and prices seem to be going up, Mr. de la Vega said. “The sky’s the limit,” he said, adding he doesn’t see this trend ending any time soon. “When we had the downturn, South Beach was the last to go down in prices and recovered the fastest,” he said. “Fluctuations in price are the least here. There’s nothing else like it.” When Miami was named last year for the second year in a row by Christie’s International Real Estate report as one of the top 10 luxury housing markets in the world, brokers pointed out that homebuyers get more for their money here. The city’s average square foot price for luxury homes was $559 in 2013 compared with $4,683 in London (the highest on the list) and $829 in San Francisco (the lowest of the 10 markets profiled). Mr. de la Vega said prices for South Beach condos were factored into the average price per square foot and remain favorable compared with other metropolitan cities in the world. South Beach is known for its luxury retail, particularly on Lincoln Road, which residents and tourists support. But the transformation to a shopper’s paradise has left its mark, with some long-established organizations saying the rent is too high for them to remain in South Beach. Rising prices for condos and retail rents work together, so it’s difficult to say one caused the other, said Andrea Heuson, professor of finance at the University of Miami, whose areas of expertise include real estate and international finance. A resident of South Florida, she remembers when Lincoln Road was a quiet spot for little shops and South Beach was much less crowded. “The season [for tourists] used to be between New Year’s and Easter,” Ms. Heuson said. “Now, with events like Art Basel and so many more condos and shopping opportunities, we have people coming from Thanksgiving to Memorial Day.”
Photos by Maxine Usdan
“In many ways, South Beach is like a small European community,” says area realtor Daniel de la Vega.
“For the audience we get, Lincoln Road does not seem to be the best environment now”: Maria Del Valle.
Ms. Heuson said the retail landscape began its big change about 10 years ago when leasing agent and developer Michael Comras had a vision to transform Lincoln Road from a street with privatelyowned little shops into a retail destination with national and international stores. “He and his partners succeeded
beyond their wildest dreams,” Ms. Heuson said. Yet, she believes, it’s a matter of opinion whether the transformation was a success. With rents so high, a number of stores have been priced out and moved away from the pedestrian mall and onto nearby streets like Alton Road.
It’s a changing landscape, Ms. Heuson said, with questions remaining as to how high prices can climb. ArtCenter South Florida, established by ceramist Ellie Schneiderman, celebrated its grand opening on Lincoln Road in 1984 to address workspace and community needs of visual
The Lincoln Theatre, designed in 1936 by Robert E. Collins, has been converted into an H&M retail store.
artists. With Community Development Block Grant funds from the City of Miami Beach, ArtCenter artists took up residence in 21 storefronts on what was then a nearly abandoned and dilapidated Lincoln Road. Some say Ms. Schneiderman ushered in a movement that eventually brought performing arts entertainment to Lincoln Road including the New World Symphony, the Miami City Ballet and numerous art galleries, cafes and clubs. Today, the much-loved Van Dyke Café, which served food downstairs and held live jazz each night upstairs, is closed. David’s Café II and Zeke’s Roadhouse are gone as well. ArtCenter South Florida sold one of its two remaining buildings and is looking for a larger one. Although the organization has not ruled out South Beach, it’s not likely it will find a space there that’s affordable and suitable, said Executive Director Maria Del Valle. She said ArtCenter South Florida sold for $88 million its building at 800 Lincoln Road, which it purchased 30 years ago for $700,000, and will be basing all of its operations in its smaller building at 924 Lincoln Road in May. Currently, Ms. Del Valle, said Art Center’s facility committee is evaluating options. But she has not seen any buildings that are suitable for the organization’s needs, which include between 40,000 and 50,000 square feet for exhibition space, a print shop and studios for artists, as well as having parking for visitors. “People [headed for ArtCenter] don’t go to Lincoln Road on the weekends because of the crowds and difficulty finding a parking space,” Ms. Del Valle said. “For the audience we get, Lincoln Road does not seem to be the best environment now.” Ms. Del Valle said ArtCenter is blessed to own property and might be able to use proceeds from the sale that remain after purchasing another building to build its endowment to help its artists and programming. In the three years she’s been executive director of ArtCenter, Ms. Del Valle said, she’s seen a number of changes on Lincoln Road. In addition to the small shops moving out, she said some national chains have also been priced out of the market. ArtCenter owned a third building, which it sold some 19 years ago, where subsequent tenants such as Pottery Barn just left after the rents became too high. “We’re defining our program needs because that will have an effect on what kind of building we will buy,” Ms. Del Valle said. “We’re looking at our best option, but the prices here are crazy.” Ms. Heuson said it’s unlikely retail prices and rents will continue to rise. “A rising tide lifts the boats, but there are a lot of boats out there,” she said. “In the next two years, a lot of new luxury retail is coming online and no one knows what that will do to the landscape.”
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MIAMI TODAY
MIAMI BEACH
WEEK OF THURSDAY, MARCH 26, 2015
Proposals due April 9 for convention center developing contractor BY SUSAN D ANSEYAR
Photo by Maxine Usdan
Those leaving Cruise Shipping Miami last week saw signs noting the next show will be in Fort Lauderdale.
Major convention users in question as center building brings departures BY JOHN CHARLES ROBBINS
Last week at the cavernous Miami Beach Convention Center, Cruise Shipping Miami – a four-day conference with global pull – folded the tables and chairs and dismantled the acres of displays as it put the finishing touches on another successful event. But in 2016 the premier annual event of the worldwide cruise industry is taking the show and its more than 900 exhibiting companies to Fort Lauderdale. That’s because the convention center is getting a long overdue rebuild. How that massive renovation will impact long-time exhibitors like Cruise Shipping Miami and the Miami International Boat Show is clear in the short-term, but less clear for the long-term future. The events calendar for the Miami Beach Convention Center is peppered with shows and conferences and conventions through the first weeks of December when Art Basel 2015 unfolds. The grid of months is void of any events after that, as the city is expected to dive into the million-dollar facelift in a major way with the start of 2016. The Miami International Boat Show is arguably one of the biggest exhibitors to lease the convention center. The boat show and the convention center have been partners for more than 45 years, but next February when the annual show opens it will be on Virginia Key, on the land and water adjacent to iconic Miami Marine Stadium. With knowledge of the major rebuild of the convention center, the group that puts on the boat show, the National Marine Manufacturers’ Association, began looking elsewhere for a main staging area. And they need a lot of room – more than 1 million square feet, in fact. The boat show is internationally famous and draws 100,000 attendees to the Miami area every year. The Virginia Key site is owned by the City of Miami. City commissioners approved a license to the manufacturers’ associa-
tion to host the show there and agreed to spend up to $16 million to develop a flex park next to the closed concrete stadium. The agreement allows the association to use the site for the 2016 boat show and leaves the door open for future shows there. “I have great faith in the City of Miami’s administration, who wholeheartedly supported this move,” said boat show manager Cathy Rick-Joule. “They’re providing a strong infrastructure we can tap into.” Ms. Rick-Joule said she’s confident the boat show will be at Virginia Key for at least two years. Beyond that, the future gets murky. Will the boat show ever return to the convention center? “It really depends on what type of space they create. That’s a big question for us,” said Ms. Rick-Joule. The boat show began in 1941, owned by a different entity. The very first show was held under a big tent on Dinner Key, and moved to other area locations for many years. The boat show has been at the Miami Beach Convention Center since 1969. The manufacturers’ association purchased the show in 1984. “It’s been a great experience,” Ms. Rick-Joule said of the years of working with the city and convention center staff. Like a home show or auto show, the boat show is a major player and considered the “bread and butter” of any convention facility, she explained. The association has had a very good working relationship with the convention center for years, being considerate of each other’s needs and striving to maintain open communication, she said. The convention center staff was quick to keep the association involved in any changes, including a major renovation in the mid-1980s. “The convention center was very mindful of us as a partner,” she said. “They considered our needs on the extension. We worked hand-in-hand.” The rebuilding was phased out over about five years, and the convention center worked with the association to figure
out the new configurations needed to house the exhibits while major portions of the structure were being worked on, she said. “Before every important piece of business we were included… We had a great relationship with them,” Ms. Rick-Joule said. “We did move around. But we worked around it and we never missed a year.” Leading up to the coming renovation, the association continued to have a voice in planning, Ms. Rick-Joule said. The initial plan was to see the renovation phased in over a number of years, she said. The association was working in tandem with architects on what space was needed. Those talks and plans were held under the administration of former Miami Beach Mayor Matti Herrera Bower. The focus was on renovating the center in phases with the goal of not losing any business, Ms. Rick-Joule said. A change in administration occurred and the plan switched to reducing the length of reconstruction to two years. “Of course that impacts the viability of a lot of businesses (as) there’s no space for them,” she said. In order to keep the boat show at the center for 2016 and 2017, the association would have had to downsize the event by more than 70%, she said. Talk about a challenge. She noted that the boat show typically uses all three levels of the center. “We literally use almost every square foot of the convention center,” she said. The boat show has always been a multi-venue event and will continue to have boats at the Sea Isle Marina near the Venetian Causeway and at Miamarina at Bayside. “We’re not sure how things will play out. Up to now, they considered us a real partner, they solicited our opinion and advice. We hope that continues,” she said. “They’re keeping us in the plans,” said Ms. Rick-Joule, noting that boat show officials have been able to meet with architects. “We’ve talked door sizes and access points. We still have an on-going dialog.”
bination of the revitalized convention center, coupled with a new headquarter hotel, will enable the center to attract new events that will maximize the impact of the center on the local economy.” The hotel is no longer part of the overall convention center project. Rather, the voters will decide in November whether to approve a possible lease of city land for a privately-developed 800-room hotel behind the Fillmore Miami Beach at the Jackie Gleason Theater. This requires a 60% majority vote. Assuming it passes referendum in November, the hotel project would break ground in early 2017 and take about two years to complete, Ms. Hernandez said. Progress has been ongoing in fits and starts for the robust project on a 52-acre parcel near City Hall. It at one time included an 800-room hotel, expansion of the convention center with a retail and residential component, Ms. Hernandez said. The city requested proposals and, on July 17, 2013, selected South Beach ACE as master developer for the mixed-use project. Over time, however, concerns arose over the size and price of the project proposed by ACE. Soon after Mayor Philip Levine was elected, Ms. Hernandez said, the commission decided to start over and find a construction manager atrisk. The convention center, built as a single 100,000-square-foot hall in 1957, has had additions over the years: a 130,000square-foot hall in 1968; a large wing on the west side in 1975; and the center doubled to 1.2 million square feet between 1986 and 1987. City leaders say the new 1.4million-square-foot, LEED-certified convention center will generate an economic impact of $2.5 billion over 30 years, and create about 5,000 temporary jobs and 1,600 permanent jobs supported by the ongoing spending of future convention guests. Home to Art Basel Miami Beach and national sporting events, the convention center is one of the region’s largest visitor draws for South Florida. According to the city’s website, the convention center will be designed with a strong emphasis on the natural environment, utilizing solar energy and sun-shading design concepts and using 60% natural lighting for the interior, leading to a 20% energy reduction. Visitors are also to experience a new six-acre public green space, replacing an asphalt parking lot in front of the new center and adjacent to the existing Miami Beach Botanical Garden and Holocaust Memorial.
If all goes according to plan, work will begin on a total ground-up restoration of the Miami Beach Convention Center when Art Basel ends in December. The $592 million project is to include adding a 60,000square-foot ballroom to the new 1,466,000-square-foot center, building a public park, renovating Convention Center Drive, restoring a 3.8-acre park to the north of the project and renovating the 5,000-square foot Carl Fisher Clubhouse, the oldest public building in Miami Beach. Once ground is broken, the anticipated completions dates are December 2017 for the convention center building and mid2018 for all related projects, according to Maria Hernandez, project director for the convention center district. All that’s now missing for this project is a contractor. “That’s the last part of our team,” said Ms. Hernandez, explaining that Fentress Architects will complete drawings for the project while the city puts a construction management atrisk contract out to bid. Construction manager at-risk entails a commitment by the construction manager to deliver the project at no more than a guaranteed maximum price. The construction manager acts as a consultant to the owner in the development and design phases (known as preconstruction services), and as a general contractor during construction. When a construction manager is bound to a guaranteed maximum, the fundamental character of the relationship is changed. In addition to acting in the owner’s interest, the construction manager must control construction costs to stay within the guaranteed maximum. According to Ms. Hernandez, if the project costs exceed the guaranteed maximum provided by the construction manager at-risk, the contractor is responsible for the excess. The budget for the entire project is $592 million, including $500 million for the convention center itself, according to Ms. Hernandez. The project is being funded by a combination of county general obligation bonds, 1% resort tax bonds, redevelopment authority bonds and parking bonds. Ms. Hernandez said a request issued March 2 has proposals due April 9. A committee is to interview developers who respond and the finalist will be chosen April 29, with a contract to go to the city commission May 20. The center is being designed as a state-of-the-art facility that is to accommodate international and national events as well as Details: regional and local customers, www.miamibeachfl.gov Ms. Hernandez said. “The com-