WEEK OF THURSDAY, APRIL 23, 2015
A Singular Voice in an Evolving City
WWW.MIAMITODAYNEWS.COM $4.00
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With better economy, filings for bankruptcy tumble, pg. 16 SUCCESSION PLANNING: Miami-Dade County staff is to list senior employment positions within the county government that will be vacated over the next three years. The report is to include information on the county’s succession planning – how the county plans to fill the vacated positions. The report’s scope will be on staff positions that will be vacated because of retirements and on positions that are under the mayor’s purview. The Strategic Planning & Government Operations Committee last week voted in favor of a resolution calling for the report. Approval doesn’t become final until the full county commission signs off on the item seeking the report. Commissioner Juan Zapata sponsored the resolution.
Strong dollar’s housing impact still an economic teaser, pg. 17
THE ACHIEVER
BY JOHN CHARLES ROBBINS
FLYING HIGH: Miami International Airport is posting its best quarterly passenger growth since 2012, up 4.62% in the first quarter of 2015 to 10.9 million travelers. This is equal to more than 5,000 added passengers daily when compared to the same period last year. Domestic travelers led the way with 5.04% year-over-year growth and a total of 5.6 million, while the number of international travelers grew 4.18% to 5.3 million. Total air freight at MIA increased 2.3% to more than 524,000 tons through the first quarter. The growth was spurred by gains in international freight, which increased 3.2% through March. MOUNTED PATROL, TOURIST CRIME: The Miami-Dade County Metropolitan Services Committee postponed voting on two resolutions last week. One called for a study of whether the county could have a police patrol that’s mounted on horseback. Miami-Dade disbanded its horseback patrol in 2009. The other item called for a plan to develop a police unit charged with dealing with crimes against tourists. Commissioner Javier Souto sponsored both. He was absent from last week’s meeting. A SIGN OF THE TIMES: Historic neighborhoods and other special districts will be allowed to display gateway signs under a proposed amendment OK’d on first reading April 9 by Miami commissioners. The legislation would clarify the definition of a gateway sign, and exempt gateway signs from certain requirements. A resolution says gateway signs marking the entrance to cultural specialty districts and historic districts identify the area, mark a historic destination for visitors and reinforce the neighborhood’s character as a destination for art, culture, dining and entertainment.
Stuart Chase
Photo by Marlene Quaroni
CEO planning to upgrade HistoryMiami visibility The profile is on Page 4
City board clears a track for All Aboard Florida BY JOHN CHARLES ROBBINS
All Aboard Florida is moving ahead with the northwestern portion of its MiamiCentral plan, which will bring a new grocer to the urban core. The project, 3 MiamiCentral, is planned for a block hugged by Northwest Sixth and Seventh streets and Northwest First Court and Second Avenue. The city’s Urban Development Review Board on April 15 recommended approval of the project. The plan calls for a 12-story building to house a grocer at about 29,000 square feet on the ground floor, nearly 97,000 square feet of Class A offices, 33,161 square feet of commercial/retail space, and a garage to park 1,096 vehicles. It’s perhaps the smallest piece of All Aboard Florida’s development vision for downtown, which will see a major rail station, MiamiCentral, become a transportation hub connecting All Aboard Florida passenger trains, the Metrorail and Metromover, county buses, city trolleys and taxis and possibly link with TriRail. MiamiCentral’s major portion is about 9 acres west of Northwest First Avenue. A
AGENDA
Wynwood’s arts district set to grow
collection of parking lots has been cleared and prepped to start building the transportation hub, which some city leaders call a “grand central station.” The transportation hub will include mixeduse development with residential, office, commercial and a retail concourse. This smaller site of nearly 2 acres in Overtown is being built to support and enhance the transportation hub, the company said. The land is near Metrorail, Metromover, the Lyric Theater and planned mega development Miami Worldcenter. Its neighbor to the east is the Miami-Dade County Administration Building. The design team includes AECOM, Design2Form and Kimley-Horn and Associates Inc. AECOM’s Michael Kerwin said the podium will be wrapped in perforated metal skin, with holes of varying size to illustrate a “subtle” image of a mangrove forest. It’s dual purpose: an artistic feature and a “breathing skin” for the garage, he said. Other portions of the structure will showcase African fabric patterns in silkscreen on metal, in part to pay homage to the African-American neighborhood. In addition, the company has hired artist
Robert McKnight to design a 12- by 120foot mural for the Second Avenue side, Mr. Kerwin said. “This is a good building,” said board member Fidel Perez. Boardmember Neil Hall said he was pleased by the attention to art on the building and the commitment to bring a local artist onboard. The project will be quite an improvement for the area, said board member Jesus A. Permuy. The recommended approval came with conditions, including that All Aboard Florida agree to maintain the appearance of the artwork; prepare and file a tree mitigation plan; and consider altering the design of the garage to show more of an internal double helix, the result of twisting traffic lanes carrying cars to and from floors. All Aboard Florida is an intercity passenger rail project being developed by Coral Gables-based Florida East Coast Industries Inc. The privately-owned and operated service is to connect Miami to Orlando with stations in Fort Lauderdale and West Palm Beach. Details: www.AllAboardFlorida.com
One of the first projects to bring hotel rooms to the bustling Wynwood Arts District is planned by Goldman Properties, a key player in the area’s metamorphosis. And, no surprise, the project will showcase plenty of art. G40 Wynwood aims to mix 72 residences, 68 hotel rooms, about 11,000 square feet of ground floor retail and 47,000 square feet of offices. The eight-story structure is to have underground parking for about 100 cars, with more parking offsite at a Goldman facility now in design. The city’s Urban Development Review Board recommended approval April 15 after giving designers high marks for attention to art. The parcel is long and narrow, at 2700 NW Second Ave., 235 and 257 NW 27th St., 252, 268 and 276 NW 27th terrace. The land was already rezoned for increased density. “Our fingerprints are all over the neighborhood,” said Goldman Properties’ CEO Jessica Goldman Srebnick. “We lead by example.” The company is responsible for Wynwood Walls, bringing street art to a new level and helping fuel the area’s transformation – the adaptive reuse of acres of warehouses. “We want to create a center for the creative class,” said Ms. Goldman Srebnick. She said the company is striving to marry art and architecture with G40 Wynwood. Architect Arturo Vasquez said the site is in the heart of Wynwood and “it is important for us to be sensitive to the concept of Wynwood.” The façade becomes “surfaces that can be curated for art.” “Art is at the core of the neighborhood… We wanted to create interest on all sides of the building,” said Ms. Goldman Srebnick. “We like to do the unexpected.” Mr. Vasquez pointed to opportunities for seating outside and areas that promote pedestrian activity. Said board member Fidel Perez, “Congratulations on a nice project – very well designed.”
TRANSPORTATION PLANNERS BATTLING TALLAHASSEE ...
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GABLESTAGE IN CENTURY-LONG PLAYHOUSE BOOKING ...
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AFTER A SPEAKER FLOOD, UBER-X ORDINANCE X’D OUT ...
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WITH $37 MILLION, GABLES MAYOR TARGETS 97 GOALS ... 11
VIEWPOINT: RULE TO HELP BUSINESS WOULD HARM ALL ...
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CITY AIMS TO SEEK OPERATOR FOR RESTORED STADIUM ... 12
COUNTY SEEKS COMPETITION IN FUNDING NONPROFITS ...
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REALTORS PUSH FOR MORE CONDO FINANCING OPTIONS ... 15
TODAY’S NEWS
WEEK OF THURSDAY, APRIL 23, 2015
MIAMI TODAY
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After outpouring of speakers, UberX ordinance X’d out BY L IDIA DINKOVA
The Miami-Dade County Commission deferred voting Tuesday on an ordinance that would have legalized peer-topeer transportation services that are based on smartphone apps. The ordinance would have legalized these services and would have established rules under which these companies and their drivers could operate in the county. Among the regulations the ordinance would have set is that companies like UberX and Lyft would have to obtain a license from Miami-Dade government in order to operate in the county. Transportation providers like UberX and Lyft have been operating in MiamiDade illegally for months. The issue has prompted varying responses from the community for months. While some have embraced these transportation options, the taxi industry has said that these companies have an unfair competitive advantage over taxicab drivers. Both of these sentiments were evident
at Tuesday’s meeting. “Half of your visitors are international,” William D. Talbert III, CEO of the Greater Miami Convention & Visitors Bureau, told commissioners. “These are the choices people have around the world,” he said, referring to the app-based transportation companies like UberX. “We need to be competitive. We need to give our customers options.” Taxicab drivers and other taxi industry stakeholders also turned out at the meeting to voice their concerns. “I know that Uber and Lyft is illegal but to regulate them, it should be a different way. Not this [ordinance],” Mercedes Gonzalez told commissioners. “The taxi industry, we have medallions, we have property rights. We bought them, it was not given for free. I worked for 50 years to have what I have.... This will kill the taxi industry.” To operate a cab in Miami-Dade, a driver or a company must purchase a medallion from the county. Generally, the medallions are bought by companies, which then make a lease agreement with a driver who is essentially
renting the cab for a fee. There are 2,121 taxis that operate in the county and 43 taxi companies. The industry has raised issue with the peer-to-peer transportation companies, saying that UberX and Lyft get to set their own fees unlike cab drivers, whose fees are set by the county. Raymond Francois is an administrator of the New Vision Drivers of Florida, which he said represents taxicab drivers as well as UberX and Lyft drivers. Mr. Francois has told Miami Today that a trip from South Beach to Miami International Airport could cost about $14 on UberX or Lyft, much lower than the about $32 a taxicab would charge for the same trip. “The proposer [of the ordinance] didn’t provide anything to regulate the fare,” Mr. Francois told commissioners Tuesday. “If this proposal is passed, can you please tell me how the taxi industry and the limos will survive?... I would like to see the transportation network to be legalized but I don’t want to see them given a blank check to do what they want.” The ordinance that was deferred didn’t
outline exact amounts for fees that peerto-peer transportation companies are to charge for trips. Among other things, the ordinance would have required these companies to obtain a license from county government and allowed for county staff to deny granting a license if a company didn’t meet various conditions. In addition, the ordinance would have established requirements drivers would have to meet, and called for the peer-to-peer transportation companies to do background checks on their drivers. County Commissioner Esteban L. Bovo Jr. sponsored the ordinance but deferred it to another meeting. “I understand the anxiety,” he said shortly before he moved to defer the item. The ordinance was up for first reading, which means that any approval would have been tentative until it also goes through a public hearing at a committee meeting and then through another vote by the commission. Commissioners deferred the item but set no date to hear it again.
Paid internships give Talent Development Network a boost BY CATHERINE LACKNER
The Talent Development Network, a two-year program One Community One Goal (OCOG) created this year, got its first major boost last week when 14 local organizations agreed to fund 200 paid internships for high school and college students. American Airlines, Baptist Health South Florida, the Greater Miami Convention & Visitors Bureau, the Audrey Ross team of EWM International Realty, MiamiDade County’s office of management and budget, Perry Ellis International and T.D. Bank are among the larger entities that have agreed to participate. The network aims to launch students into the business community with internships, coaching, contacts and the tools they will need to start or go the next level
in their careers. Along the way, it’s anticipated that interns will form their own bonds. “If it’s done right, networking and mentoring among members of the cohort may well be the biggest contributor to its success,” said Matt Haggman, Miami program director for the Knight Foundation, in February. Mr. Haggman co-chairs OCOG with Nelson Lazo, who is CEO of Doctors Hospital. “Building relationships with others is critical and a very exciting component of this.” Miami-Dade County has the seventhlargest number of college students in the nation, Mr. Haggman said then, so there’s no lack of young people who are pursuing educations. But employers lament that they can’t find qualified people to fill positions. “We want to end that disconnect.”
It might be of particular value to youths from underprivileged economic backgrounds, Mr. Lazo said then. “It’s a way in, an introduction that they may not have had before.” Florida International University (FIU) will play a prominent role in the launch, but all local universities have gotten involved, Mr. Haggman said then. The program is an outgrowth of the Academic Leaders Council, an initiative that joins the presidents of Barry University, FIU, Florida Memorial University, Miami Dade College, St. Thomas University and the University of Miami, along with Alberto Carvalho, superintendent of Miami-Dade County Public Schools. “As Miami deepens its identity as a startup city, we are proud to apply an entrepreneurial mindset to addressing the issues of talent preparation and retention,” said Mark
B. Rosenberg, FIU president and chair of the educators’ group. “Through this program, we want to guarantee that the students graduating from our institutions are the best prepared to address the needs of South Florida businesses.” Mr. Lazo, who previously headed OCOG’s life sciences and healthcare task force, has said he hopes many of the internships will be in technology and medical fields, which will help keep skilled people here. “This initiative ensures that local talent stays in our community, helps businesses fill jobs with local candidates and makes Miami-Dade County even greater,” said Larry Williams, president and CEO of the Beacon Council economic development group, last week. Details: www.tdnmiami.com.
“Experience and market knowledge are our best assets.”
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MIAMI TODAY
TODAY’S NEWS
WEEK OF THURSDAY, APRIL 23, 2015
WEEK OF THURSDAY, APRIL 23, 2015
TODAY’S NEWS
MIAMI TODAY
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Miami aims to seek operator for restored marine stadium...
...as it works to create adjacent flex park for boat show use
By John Charles Robbins
longer use for boat show activity is that 2016 will be the first time the city hosts the show on Virginia Key, and much of how it will play out has yet to be seen. Ms. Bravo also pointed out that no artificial turf now exists there. The turf surface will not get its first rolling out until after the 2016 boat show, she said. Mr. Sarnoff said he was concerned that the boat show’s presence would keep others from using the flex park for months. Mr. Sarnoff said the boat show organizers ought to be able to dismantle the site in 30 days. “It can be done,” said Commissioner Francis Suarez. Ms. Bravo said they preferred 73 days to set up the area for the 2016 boat show, saying that would be ample time to “work out the kinks.” “In the second year, we’ll probably need less time,” said Ms. Bravo. “This lets us learn the timeline, and gives us experience for the second year of the show,” she said. “I understand… This year, she has a point,” Mr. Sarnoff said. He suggested he could support the boat show use if all boat show property and equipment is removed within 30 days of the end of the show. “I implore you, keep a very tonight leash on this show,” Mr. Sarnoff told administrators. The commission approved a
Miami administrators are working on a request for proposals to attract an operator to handle a restored and reopened Miami Marine Stadium. City commissioners could be asked to vote on an operations plan May 14. Meanwhile, plans are moving ahead to breathe new life into the iconic concrete waterfront stadium on Virginia Key, idled and deteriorating since Hurricane Andrew in 1992. At the commission’s meeting April 9, Don Worth, a long-time advocate for restoration of the stadium, said he was pleased to hear that the city manager’s office is working to secure an operator for the venue. “The sooner you get a [request for proposals] out for an operator, things will be a lot simpler and other funding opportunities will open up,” Mr. Worth told commissioners. Deputy City Manager Alice Bravo told commissioners that on May 14 the administration will have “a very good [request for proposals] in hand,” and a proposed governing structure for all of Marine Stadium Park. The city is working to build a flex park adjacent to the stadium to host the Miami International Boat Show and other activities. The nature and extent of those other activities have been the sub-
Photos by John Charles Robbins
The boat show would be staged on a massive parking area adjacent to dormant Miami Marine Stadium.
ject of debate, and led to a lawsuit against the city by the Village of Key Biscayne. Village leaders fear over-use of the stadium and grounds, leading to a crippling addition of traffic on Rickenbacker Causeway, the only road in and out of Key Biscayne. Even city commissioners have argued about the extent of development on Virginia Key, while all strongly support restoring marine stadium. Earlier this year, City Manager Daniel Alfonso said the city always planned to develop Marine Stadium Park, “and now we have a partner to help.” The partner he refers to is the National Marine Manufacturers Association, the group that puts on the popular boat show each February. On Jan. 8, city commissioners approved a license with the association to host the boat show
on land and water surrounding marine stadium. Commissioners also approved spending up to $16 million to improve the site, to be paid for by a bond sale, although it directed the city manager to explore other funding sources and report back. In exchange, the association is to pay the city $1.1 million a year and 50% of food and beverage sales income at the show. Renovation of the stadium is not part of those improvements. There is a separate program to renovate the stadium. The license is not for a fixed term, and may be terminated or revoked by the city at-will. Although there is no binding longterm agreement between the city and the association, the city can review the license after five years. In 2007, city officials began a years-long process of writing, amending and finally adopting a
master plan for the development of Virginia Key in 2010. By securing the boat show, the master plan for the Key is back in play. This has led to officials and commissioners talking about other uses for the property that surrounds the abandoned stadium, including soccer fields for youth and adult leagues. The latest plans and renderings show the large aging parking lot southeast of the stadium replaced by a wide-open green area, covered with artificial turf. Plans for the area around the stadium include improved water and sewer structures, drainage and lighting, and strengthening the surface areas as green space able to stage activities and special events. The boat show would use temporary event structures – large tents – with elaborate layouts,
wood floors, air conditioning and more. The plan also calls for temporary docks in the basin. Mr. Worth said April 9 he thinks getting an operator for the stadium would “ease tensions” between the city and Key Biscayne officials. “Key Biscayne could be a partner in the recreational fields,” he suggested. The latest issue raised about the work on Virginia Key was the amount of time needed or allotted to the boat show, and it caused Commissioner Marc Sarnoff to threaten to pull his support of the flex park plan. On April 9, when an amended license was presented showing 160 days were sought for use of the city’s property for the boat show, Mr. Sarnoff objected. “This is where I’m getting off the bus,” he told fellow commissioners. Holding up a rendering showing the area next to the stadium as four green soccer fields, Mr. Sarnoff said, “This park was attractive to me.” However, with a prolonged period of use of the land for the set-up and takedown of the boat show and the event itself, he was not happy with the proposed schedule. The flex park was going to be a great opportunity for kids and adults, he said, “and I no longer think that’s the true intent of the administration.” Ms. Bravo said the reason for
A poster at the marine stadium shows how it might be used in future.
modified license with the association, which spells out an arrangement for the addition of electric utilities to the property estimated at $3,306,000, to be equally funded by association and the city. A condition of the vote was a requirement that the association be clear of the property within 30 days of the close of the boat show. Ms. Bravo promised commissioners that the new soccer fields will be in place within 31 days of the close of the boat show. At the April 9 meeting, commissioners also reviewed other funding options to come up with
the $16 million for improvements to Marine Stadium Park. Mr. Alfonso’s staff prepared a memo showing other possible ways to finance the improvements. “These are a few alternatives – none particularly palatable,” said Chris Rose, budget director. Labeled Alternative 2, “Reprogram Parks Impact Fees,” it reads: Of the $34.8 million of Parks Impact Fees that were budgeted in the current year, $1.2 million is currently under contract. The remaining $33.6 million could be reprogrammed away from their current projects and toward the Marine Stadium
[Park]. Staff has run projections of impact fees in the current year and does not anticipate that there will be additional impact fees above the amounts budgeted in the current year. For clarity, this would mean that certain parks projects would be delayed into future years rather than started in the current year. Labeled Alternative 3, “Last Year Fund Balance,” it reads: The city has ended FY 2013-14 with an estimated fund balance higher than the threshold of $103.6 million required by the city’s financial integrity principles. We could recognize approximately $5 million in the current year and program these funds toward the Marine Stadium [Park]. These funds were to be used to maintain a fund balance in future years above the principles. If these funds are used for the [flex park] and not maintained in the fund balance, then it is likely that the city will be required to budget more than $5 million of reserves just to remain in compliance with the principles. Labeled Alternative 4, “New Revenues in the Current Year,” it reads: There are two revenues that were not budgeted in the current year, but have been received since October 1, 2014. There is $1.4 million from a settlement with a waste hauler as presented to the commission during the December 11, 2014, City Commission Meeting. Also, as part of
the Skyrise/Bayside agreement, the city was to receive $3.75 million when Bayside refinanced its current debt obligations. This occurred in December 2014. The city received the funds on December 23, 2014, and deposited thereafter. These two funds were anticipated to be recommended for additional services such as additional fire apparatus purchases in the mid-year budget amendment. After reviewing these alternatives, Mr. Rose said it was the administration’s recommendation to continue with the plan as presented in January. Funding would come from special obligation bonds with a repayment schedule of 15 to 20 years, and with funds pledged from available non-ad valorem revenues in the General Fund. Mr. Alfonso pointed out the $16 million is for the flex park improvements and does not include money for restoration of the stadium itself. Also related to the stadium, Mayor Tomás Regalado succeeded in gaining a promise from Miami-Dade County to allow the city to retain about $3 million to be used only for restoration of the stadium. An extension was sought of a 2010 county allocation. It was clarified and stressed at the April 9 commission meeting that none of the county finds would go toward the flex park.
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MIAMI TODAY
FINANCIAL TRENDS
WEEK OF THURSDAY, APRIL 23, 2015
With economy on rise, business bankruptcy filings nosedive BY SUSAN DANSEYAR
Business bankruptcy filings are down in South Florida, attributable say industry experts, to an improving economy led by a solid real estate market and low interest rates. Some analysts expect bankruptcies to continue declining but see possible hurdles with the strong dollar’s potential to slow foreign investment and inevitable increase in the federal funds rate. “For the near term, the economy in South Florida will continue to improve and I don’t see anything that will slow it down,” said Jordi Guso, partner at Berger Singerman and chairman of its business reorganization team. Generally, he said, restructuring and business bankruptcy filings are down now that the market has rebounded well and a lot of capital is coming into South Florida. Mr. Guso said the main drivers of South Florida’s economy are the hospitality industry and real estate. “Holders of foreign capital feel Miami is a safe bet compared with the uncertainty that exists in other places,” he said. “The low-interest rate environment has helped tremendously, increasing purchasing power, and Miami is seen as a hot place.” According to statistical reports published by the US Bankruptcy Court for the Southern District of Florida, there were 59 filings for Chapter 11 in the first quarter of 2015 compared with 87 in the first quarter of
Jordi Guso: “holders of foreign capital feel Miami is a safe bet...”
2014. During the worst years of the recession, between 20082010, filings for the first quarter averaged 91. Chapter 11 bankruptcy, with no limit regarding the amount of money owed by the debtor, was originally only intended for large corporations, but individuals can now file Chapter 11 as well. In addition to the low-interest rate and strong real estate market in South Florida that could
help reduce filings, Mr. Guso said stakeholders in a troubled company are more keenly focused on trying to find an outof-court solution as opposed to an in-court restructuring through a bankruptcy filing. “Lenders, in particular, are exploring less costly and more efficient alternatives to a Chapter 11 restructuring,” he said. The only likely catalyst for change in business health that Mr. Guso sees is the raising of interest rates. When the corporate cost of borrowing goes up, he said, there’s less cash to run a business. Moreover, Mr. Guso said, some voices in the industry express caution about the strengthening US dollar and how it will affect foreign markets. There’s concern, he said, about how much real estate prices have gone up and if the rise is sustainable. Timing is everything in the real estate market and developers need to know when to get out, said Joseph Luzinski, senior vice president of Development Specialists
Developers need to know when to exit the market: Joseph Luzinski.
Additionally, Mr. Luzinski said, a lot of lenders did not want to address problems and let some businesses “limp along.” He suspects that for the last few years a lot of businesses had loans keyed to the prime rate, which allowed them, even if not financially healthy, to keep going. “The increase [in interest rates] will kick those loans up,” Mr. Luzinski said. “That will precipitate another wave of businesses seeking liquidation or restructuring.” Not every market analyst sees a coming increase in interest rates as a definite roadblock to South Florida’s robust economy, however. Developer Avra Jain, a former Wall Street executive, said even if the Federal Reserve Bank does raise rates modestly, the spread is wide enough between current loan rates and the federal funds rate to adequately absorb the shock. Right now, Mr. Guso said, there’s nothing by way of pending legislation for the bankruptcy code. The last time it was amended was in 2005 to accelerate the pace of restricting. The American Bankruptcy Institute commissioned a study for what people in the bankruptcy business would like to see changed, which sparked a discussion that “may or may not make its way to an amendment in the law,” but Mr. Guso does not foresee any bankruptcy reform on the horizon in the near future.
Inc. Right now, he said, the market is healthy but real estate – historically on a rollercoaster in South Florida – ebbs and flows, so it’s difficult to say how long the boom will last. Mr. Luzinski said business bankruptcy filings have been trending down for several years, a fact he attributes in part to a lot of “businesses on the fringe Details: http:// getting cleaned out in the great www.flsb.uscourts.gov recession.”
Banks see more opportunities for job growth, observers say BY JOHN CHARLES ROBBINS
Bank consolidations have really done a number on the ranks of financial sector jobs, say industry observers, but the future employment prospects are looking better. Improvements in the overall economy bode well for financial services employment. “With the significant improvement in the South Florida economy since last year, I think banks will see more opportunities for growth this year,” said Manuel Lasaga, president of StratInfo, an economics and finance consulting firm in Miami. Ken Thomas, a Miami-based bank consultant and economist, said he is cautiously optimistic about the employment outlook for the financial sector. “The good news is that the banking and finance industries in Florida and South Florida grow along with the economy, which is highly dependent on real estate, which continues to show consistent gains,” said Mr. Thomas. Employment in financial activities edged up in March, adding 8,000 jobs nationwide, according to the US Bureau of Labor Statistics. Since the financial crisis and recession in 2008, the financial services industry has been lagging behind other sectors of the
Ken Thomas: rising with economy.
economy, according to Dr. Lasaga. “During the crisis and real estate crash, a large number of banks nationwide either failed or were acquired by other banks. There has also been consolidation as banks seek to improve earnings by stretching their overhead over a wider market area as well as developing new growth opportunities,” he said. Dr. Lasaga said that during the past five years employment in the banking industry has been flat, mostly as a result of consolidation. Technology has also reduced the demand for back office employees, he said, while new banking legislation has increased the compliance burden for banks. Record low interest rates have also com-
pressed bank margins. “A number of banks have also been focusing on raising more capital following the financial problems from the real estate meltdown. This has meant that they have been applying more of their profits to building up capital rather than growing the bank,” he said. As financial service jobs grow steadily, Dr. Lasaga sees areas of need. “I think more hiring will materialize in business development, lending and compliance,” he said. A strong growing economy, locally and nationally, is something Mr. Thomas expects for the country. “We expect continuing strong local, statewide and national economies for the rest of 2015 and 2016, at least until the November elections next year,” he said. “The bad news is that the increasing consolidation and lack of [new bank] charters means fewer banks,” Mr. Thomas said. “Every time there is a merger of two banks there is one less CEO, CFO, CLO, etc. There are many ex-bankers working in other industries in South Florida.” To keep things in perspective, said Mr. Thomas, consider that Florida lost more than 100 banks since times got tough
Manuel Lasaga: growth is likely.
beginning in 2007 – from 376 to 267 banks. “Without any new banks during that period, this means roughly 100 fewer CEOs, CFOs, CLOs, CCOs and so on,” he said. With an improving economy and better job prospects for the financial sector, Mr. Thomas sees two key areas where job candidates are in demand: compliance and technology. In the compliance arena it will require expertise in the Bank Secrecy Act of 1970, otherwise known as the Currency and Foreign Transactions Reporting Act, which requires financial institutions in the US to assist federal agencies to detect and prevent money laundering, he said. The financial sector jobs focused on technology will
be banks and other institutions wrestling with cyber security issues, Mr. Thomas said. “Both of these are hot-button issues for the regulators, not just here in South Florida but nationwide. We have some of the best-trained [anti money laundering] experts here in South Florida, since so many of our banks have been under extra regulatory scrutiny in recent years,” he said. Mr. Thomas said that as an economist he always looks at the “demand for” and “supply of” labor in banking. Currently, the demand is very strong in the two areas just mentioned, compliance and cyber security, but also general loan production/servicing jobs, as the economy and loan demand improves, and customer service areas, he said. “The supply is not as strong as in the past since banking, unfortunately, is not the favored profession it once was for college grads and others looking for work,” said Mr. Thomas. He said this is due to many factors including: all of the failed banks during the crisis; new and very tough regulations since the crisis; lack of new bank charters since the crisis; and the view held by many that banking and finance and Wall Street in general were primarily re-
WEEK OF THURSDAY, APRIL 23, 2015
FINANCIAL TRENDS
MIAMI TODAY
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Strong dollar’s impact on residential market still a question BY SUSAN DANSEYAR
The jury is still out on whether South Florida’s residential market will be affected by the US dollar strengthening against most currencies. There’s a lag between completed sales and the current value of the dollar so we don’t know for certain where trends are leading, said Marc Shuster, a partner with Berger Singerman and comanager of its business, finance and tax team. “There’s a jitter as to what might happen,” he said. “With a currency squeeze, buyers from other countries may not fare as well with less purchasing power in South Florida.” However, Mr. Shuster said, residential real estate in South Florida is still a safe haven for international buyers. With interest rates essentially zero [.25%], he said in many instances a foreign investor who loses funds via the exchange rate can still catch up by borrowing at a lower rate. Moreover, rates may stay low for a while longer. Mr. Shuster referenced an article published in the Wall Street Journal last week reporting that a run of weakerthan-expected economic data is creating uncertainty within the Federal Reserve on whether to start raising short-term interest rates, dimming the chances of a move at the June meeting. Some analysts now believe the Fed will not begin raising rates until 2016. For the most part, though, Mr. Shuster said a large number of international buyers coming to South Florida often don’t have currency issues. “The strengthening dollar does not dissuade international buyers who think of the US as a bank,” he said. “Political strife and life issues mean they still want to pledge funds here.” Mr. Shuster said there’s a continual view by international buyers to see Miami real estate as their bank. And what others may view as expensive – such as homes selling on South Beach for $3,000 per square foot – is all relative. Mr. Shuster pointed out residential real estate on Park Avenue in New York City is selling for $5,000 per square
Photo by Maxine Usdan
Strengthening of dollar may be affecting foreign investors in Miami residences, said Jeannett Slesnick.
foot or more. Sales slowed in December, according to Jeannett Slesnick, broker and owner of Slesnick & Jochem LLP. She concentrates
on the Coral Gables market but said brokers she knows from all over the county had the same experience with both international and domestic buyers.
Often, sales drop a bit in December, Ms. Slesnick, said, because of the holidays and tourist season when people are not necessarily visiting South Florida to
buy homes. She said the strengthening US dollar might be affecting sales a bit for international investors looking to buy for investment purposes in a county they feel is “safe.” However, she said, Russians who were bidding over the asking price for waterfront properties are not buying in the same way or pace. Additionally, Ms. Slesnick said, buyers from Venezuela are also slowing down a bit. She attributes the slight change more to the increasing prices in South Florida than to the strengthening of the dollar. “Foreign buyers looking for investment property used to view Miami as a real bargain,” Ms. Slesnick said. “Prices have increased between 18% and 20% in the last year.” Ironically, the more expensive homes are still selling well in Coral Gables in the price range of $2 million. Ms. Slesnick said homes priced at $700,000 and under are remaining on the market longer.
INFRASTRUCTURE
may 7
special section
A community is only as good as its underpinnings, the elements that make it work. They’re branded infrastructure. Mostly they’re physical, like roads, bridges, railways, sewers, water systems, traffic signals and housing. Sometimes they’re intangibles like the human beings who inhabit a community – what is termed human capital. Their skills and educational levels are the human side of infrastructure. A special Miami Today section on May 7 will examine Miami’s Infrastructure. Whether you deal with construction or education, engineering or workforce housing, you’ll want your message in this exciting new section.
‘The strengthening dollar does not dissuade international buyers who think of the US as a bank. Political strife and life issues mean they still want to pledge funds here.’ Marc Shuster
Allow your ad to become an integral part of this special section by contacting our Advertising Department at 305-358-1008. Deadline is Tuesday, May 5, at Noon.
A Singular Voice in an Evolving City www.miamitodaynews.com
22
WEEK OF THURSDAY, APRIL 23, 2015
MIAMI TODAY
calendar of events SPECIAL EVENTS
tails: http://huongwarpiece.org.
clude “Poetry in the Park,” “Manual Cinema,” “Cease & Exist,” “Secret Sonnets” and “Powers to the People.” Through April 30. Times and locations vary. Details: www.omiami.org.
SYLVESTER ANNUAL GALA
cont.—
Friday 4/24 ENERGY FORUM
Florida International University hosts Recycling Energy Forum, a business expo and educational conference that will bring together business professionals, educational institutions, government and students. Kovens Conference Center at FIU, 3000 NE 151st St., North Miami. Details: info@dreamingreen.org. GOOD MOURING, VIETNAM
The Peace Mural Foundation Community Newspapers presents “Good Mourning, Vietnam,” a war testimony 40 years after the chaos that was Vietnam. The art documentary American war history, by Huong, tells of the sorrows she endured during her first 25 years. The event will feature a meet and greet with the artist. 7-10 p.m. Peace Mural Gallery, 1606 Washington Ave., Miami Beach. De-
Saturday 4/25 The Sylvester Comprehensive Cancer Center hosts its 2015 gala. The evening will feature a celebrity performance, dinner, a silent auction and an after party. JW Marriott Marquis Miami, 255 Biscayne Blvd. Way, downtown Miami. Details: (305) 243-2628 or KRepici@Med .Miami.edu.
Sunday 4/26 FESTIVALS OF SPEED
Museum Park hosts “Festivals of Speed.” Guests will experience a display of vintage and contemporary automobiles, custom created motorcycles, high performance boats and the finest luxury lifestyle product displays. The festival will also host a “Prestigious Pooch Award Ceremony” for dog owners in the downtown Miami area. The contest is free and owners will receive two free general admission tickets to the festival. Owners are encouraged to dress up their dogs and even themselves, in matching automotive or high fashion apparel. Judges will choose winners
based on creativity, originality and overall presentation. 10 a.m.-4 p.m. Museum Park, 1075 Biscayne Blvd., Miami. Details: (352) 385-9450 or joe@festivalsofspeed.com or www.festivalsofspeed.com. JUBANOJAZZ
Children’s Survival Network, Maestro Kula and the Klezmer Company Orchestra present “JubanoJazz! Concert.” The concert fuses traditional Klezmer music, Latin Jazz with distinct spicy Caribbean overtones and South American Dance rhythms. 3 p.m. Julius Littman Performing Arts Theater, 17011 NE 19th Ave., North Miami Beach. Details: (305)-4584900 or jubanojazzconcert.event brite.com or www.childrenssurvival network.org or www.klezmer companyorchestra.com. JAZZ ERA RETURNS
The Orchestra Miami and the Historic Preservation Association of Coral Gables present a celebration the City of Coral Gables’ 90th anniversary with an orchestral concert bringing the Jazz Era back. The concert will feature a private tasting during intermission of the Facundo Rum collection of grand reserve rums donated by Bacardi USA and an exclusive post-concert reception with the principal artists on the Granada Ballroom Terrace. 4 p.m. The Biltmore Hotel, 1200 Anastasia Ave., Coral Gables. $150 VIP. Details: (954) 701-5263 or info@historiccoral gables.org or www.historiccoral gables.org.
SPORTS
include a pregame “Happy Hour” at the Budweiser Bow Tie Bar, “Mardi Gras Night” benefitting Marlins Charity Partners, Marlins “Add-A-Cap Thursday” group offer and a “Fireworks Friday” postgame fireworks show presented by Budweiser. 7:10 p.m. Marlins Park, 501 Marlins Way, Miami. $15-$235. Details: (305) 4801300 or www.miami.marlins.mlb .com.
Saturday 4/25 MIAMI MARLINS
The Miami Marlins take on the Washington Nationals. Promotions include “All You Can Eat Seats,” “Clevelander Beerfest,” “Fellowship Day,” “Global Youth Service Day,” “Jackie Robinson Day” and a “Saturday Spectacular” postgame party on the West Plaza. 4:10 p.m. Marlins Park, 501 Marlins Way, Miami. $15-$235. Details: (305) 480-1300 or www.miami.marlins .mlb.com.
Sunday 4/26 MIAMI MARLINS
The Miami Marlins take on the Washington Nationals. Promotions include “Autism Awareness Day,” “Christian Yelich Replica Gold Glove Trophy” for the first 10,000 fans, a postgame “Diamond Dash” for the kids, “Pepsi 4-for-$74,” “Selfie Sunday” with photos with a player pregame and “Sunday Funday.” 1:10 p.m. Marlins Park, 501 Marlins Way, Miami. $15-$235. Details: (305) 4801300 or www.miami.marlins.mlb .com.
Friday 4/24
Monday 4/27
MIAMI MARLINS
MIAMI MARLINS
The Miami Marlins take on the Washington Nationals. Promotions
The Miami Marlins take on the New York Mets. Promotions include
“Monday Madness” group offer, “South Florida Heroes Monday” and “All You Can Eat Seats.” 7:10 p.m. Marlins Park, 501 Marlins Way, Miami. $15-$235. Details: (305) 4801300 or www.miami.marlins.mlb .com.
Tuesday 4/28 MIAMI MARLINS
The Miami Marlins take on the New York Mets. Promotions include “Miami Herald Half Price Tuesday” and “Social Media Night.” 7:10 p.m. Marlins Park, 501 Marlins Way, Miami. $15-$235. Details: (305) 4801300 or www.miami.marlins.mlb .com.
Wednesday 4/29 MIAMI MARLINS
The Miami Marlins take on the New York Mets. Promotions include “Crazy 8’s Wednesday” and “Kids Eat Free Wednesday Night.” 7:10 p.m. Marlins Park, 501 Marlins Way, Miami. $15-$235. Details: (305) 4801300 or www.miami.marlins.mlb .com.
THEA TER THEATER Friday 4/24 WOMEN PLAYING HAMLET
New Theatre presents “Woman Playing Hamlet” by William Missouri Downs. The production, with an all-female cast, follows a flawed actress who wrangles with being cast as the archetype role of Hamlet. 8:30 p.m. Additional performances through April 26. South Miami-Dade Cultural Arts Center, 10950 SW 211th St., Cutler Bay. $26 advance. $31 on site. Details: (305) 443-5909 or www. new-theatre.org.
For $10 million-up home sales, Miami Beach nears the top BY SUSAN D ANSEYAR
Miami Beach is in impressive company among the nation’s top cities for luxury home sales, third highest for sales of $10 million and over. Miami and the Beach have high rankings in The Previews Luxury Market Report for 2015, released by Coldwell Banker on Tuesday, which lists the top 20 US cities’ property listings and sales in three price points: beginning at $1 million, $5 million and over and $10 million. In 2014, Miami had 967 closed sales for properties $1 million and over, ninth on the list just behind San Diego (976 sales) and above cities including Santa Barbara (673 sales), Newport Beach (611 sales) and Honolulu (591 sales). Miami Beach, number 14 in this category, had 704 sales. For properties $5 million and over, Miami Beach was fourth with 89 sales compared to New York City (182 sales) at the top of the list and and above San Francisco (64 sales) and Malibu (48 sales). There were 26 sales in Miami Beach for properties $10 million and over, behind Beverly Hills (35 sales) and New York (56 sales). Miami Beach, third on the list, had more sales in this category than Los Angeles (26), Malibu (14) and San Francisco (7). North Miami Beach, in zip code 33169, had the third highest number of active home listings for $1 million and over (460), behind New York’s zip code 10022 (465) and Park City’s zip code 84060 (611). Miami Beach’s zip code 33139 was fifth in this category with 355 listings.
This home at 5446 North Bay Road in Miami Beach is now on the market with a $37 million asking price.
For properties $5 million and over, Miami Beach’s zip code 33139 had 115 compared with 143 in Park City’s 84060, top of the list, and above Vail’s 81657 (69) and Beverly Hills’ 90210 (68). In the highest category of $10 million and over, Miami Beach in zip code 33139 was ninth on the list (44 listings) compared with New York’s zip code 10023 at 84, top of the list,
and Malibu’s zip code 90265 at 26, bottom of the list. According to the report, the demographics are changing in the luxury housing market. “Many wealthy homebuyers have historically looked to leisure-rich spots like Hawaii, Florida and Arizona for second homes, or waited until they were finished working to make a move,” the report states.”That’s changing, with recent trends
suggesting that younger homebuyers are not waiting until they retire to put down roots in places where they would love to live.” Technology and ease of travel are rapidly transforming the workplace for wealthy professionals, the report states, creating flexibility in terms of work locations and the ability to choose where they want to live. “Millennials have come of age
in this kind of environment and are accustomed to the idea of striking a work-life balance that meets their personal needs. As they achieve more wealth, their live-anywhere attitudes are likely to become more of a force in luxury real estate.” According to the Previews Luxury Institute millionaire survey, 73% of those under 35 say that they expect to buy a home in the next 12 months, compared to 49% of 35- to 44-yearolds and 26% of 45- to 64-yearolds. Just 11% of millionaires 65 and over say that they’re planning a purchase. The report cites homebuyer surveys and the accounts of local realtors, stating they confirm ultra high-net worth individuals are highly mobile and flocking in growing numbers to areas once pegged as resort or second-home markets, as advances in technology, transportation and communication enable a “live anywhere” working-age population. Florida, the report states, has a favorable tax environment that’s attracting live-anywhere high net-worth homebuyers, particularly those coming from the Northeast. “The taxes on inheritance and estates are very high in some states, like New Jersey,” said Clark Toole, president of Coldwell Banker Residential Real Estate in Florida. “Florida is one of the most attractive places to live from a tax perspective, so we get quite a few people who decide to live here for at least six months and a day each year. People are saying ‘I want this money to go to my kids instead of to pay taxes.’”
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MIAMI TODAY
WEEK OF THURSDAY, APRIL 23, 2015
! L A unique supplement
June 4
M 2015
Miami
Miami Today is a driving force behind our city and proud of it! Become a part of progress and advertise with us as we highlight the best Miami has to offer in our most awaited annual supplement. Showcase your business as we spotlight those who are laying the foundation for the future. Join us as we navigate the ins and outs of our city to bring much deserved attention to those who spearhead the development and growth of this community. Our reporters ask experts to handpick some of the best in order to encourage others to follow in their footsteps.
We Believe in Miami As always, this issue will be a staple at the Greater Miami Chamber of Commerce’s GOALS conference June 4 and 5. For reservations, contact our Advertising Department at 305-358-1008. Artwork deadline June 2 at 12 p.m.
MIAMITODAY A Singular Voice in an Evolving City
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